<SUBMISSION>
<ACCESSION-NUMBER>0000950123-05-009901
<TYPE>424B5
<PUBLIC-DOCUMENT-COUNT>1
<FILING-DATE>20050815
<DATE-OF-FILING-DATE-CHANGE>20050812
<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>333-125582
<FILM-NUMBER>051022912
</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>y11369e424b5.htm
<DESCRIPTION>FILED PURSUANT TO RULE 424(B)(5)
<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="right" style="font-size: 10pt;">
 Filed pursuant to Rule&nbsp;424(b)5
</DIV>

<DIV align="right" style="font-size: 10pt;">
Registration No. 333-125582
</DIV>

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

<DIV align="left" style="font-size: 10pt;">
<B>(To prospectus dated June&nbsp;23, 2005)</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>9,000,000&nbsp;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>Common Stock</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 15pt; 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: 15pt; 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 6,000,000&nbsp;shares of our common stock and
Merrill Lynch International, whom we refer to as the forward
purchaser, is, at our request, borrowing from third party market
sources and delivering for sale an aggregate of
3,000,000&nbsp;shares of our common stock in connection with a
forward sale agreement between us and the forward purchaser. If
the forward purchaser does not borrow and deliver for sale to
the underwriters all of the 3,000,000&nbsp;shares of our common
stock, we will sell the shares of our common stock that the
forward purchaser does not borrow and deliver for sale. We will
not initially receive any proceeds from the sale of shares of
our common stock by the forward purchaser.
</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 common stock is listed on the New York Stock Exchange under
the symbol &#147;CDR.&#148; The last reported sale price for the
common stock on August&nbsp;11, 2005 was $14.85&nbsp;per share.
Our next quarterly dividend of $.225&nbsp;per share will be
payable on August&nbsp;22, 2005 to shareholders of record on
August&nbsp;12, 2005. Purchasers in this offering will not
receive this dividend.
</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 our common stock involves risks that are
described in the &#147;Risk Factors&#148; section beginning on
page&nbsp;S-1 of this prospectus supplement and page&nbsp;3 of
the accompanying prospectus.</B>
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 15pt; 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: 15pt; ">

<TR style="font-size: 1pt;">
    <TD width="59%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
</TR>

<TR style="font-size: 8pt;">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Per&nbsp;Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD align="center" nowrap><B>Total</B></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 align="center" nowrap style="border-top: 1pt solid #000000;">&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="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>14.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    $131,400,000</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="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    $6,570,000</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Proceeds, before expenses, to Cedar Shopping
    Centers<SUP style="font-size: 85%; vertical-align: text-top">(1)</SUP></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">$</TD>
    <TD align="right" valign="bottom" nowrap>13.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="bottom">
    $124,830,000</TD>
</TR>

</TABLE>
</CENTER>

<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)&nbsp;</TD>
    <TD align="left">
    We will receive estimated net proceeds, before expenses, of
    $83,220,000 upon settlement of our offering of common stock and
    expect to receive the remaining net proceeds only upon full
    physical settlement of the forward sale agreement, subject to
    the provisions of the forward sale agreement. Settlement of the
    forward sale agreement is expected to occur within approximately
    twelve months of the date of this prospectus supplement. For
    purposes of calculating the aggregate net proceeds, we have
    assumed that the forward sale agreement is physically settled
    based upon the aggregate initial forward sale price of $13.87
    and by delivery of 3,000,000&nbsp;shares of our common stock.
    The forward sale price is subject to adjustment pursuant to the
    forward sale agreement as described herein. See
    &#147;Underwriting&#148; for a description of the forward sale
    agreement.</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 forward purchaser has granted to the underwriters a
30&nbsp;day option to purchase up to 1,350,000 additional shares
of our common stock at the public offering price, less the
underwriting discount, to cover overallotments, which will be
exercisable with respect to the forward sale agreement.
</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 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 shares of common stock will be ready for delivery on or
about August&nbsp;17, 2005.
</DIV>

<DIV align="center" style="font-size: 3pt; margin-top: 15pt; 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: 18pt; margin-top: 15pt; 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: 10pt;">
<I>Sole Book-Runner</I>
</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: 27%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>Raymond James</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: 27%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 18pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B> Banc of America Securities LLC</B>
</DIV>

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

<TR>
    <TD width="25%"></TD>
    <TD width="75%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B> Legg Mason Wood
    Walker&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt;">

<TR>
    <TD width="89%"></TD>
    <TD width="11%"></TD>
</TR>

<TR valign="top">
    <TD align="center">
    <B>&nbsp;Incorporated&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

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

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <B> UBS Investment Bank</B></TD>
</TR>

</TABLE>

<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: 27%; border-top: 1.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
The date of this prospectus supplement is August&nbsp;11, 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'>Risk Factors</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'>The Company</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-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='#103'>Recent Developments</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#104'>Use of Proceeds</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-7</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'>Underwriting</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-9</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#106'>Legal Matters</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-14</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'>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>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#108'>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 valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#109'>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>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    &nbsp;<A HREF='#110'>Forward-Looking Statements</A></DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>S-16</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="91%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&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">
    About this Prospectus</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">
    Incorporation of Certain Documents by Reference</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">
    The Company</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">
    Risk Factors</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">
    Use of Proceeds</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">
    Description of Preferred Stock</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">
    Description of Depository Shares</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">
    Description of Common Stock</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">
    Description of Warrants</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">
    Description of Stock Purchase Contracts</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">
    Description of Units</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">
    Plan of Distribution</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">
    Legal Matters</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Experts</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" bgcolor="#cceeff">
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Where You Can Find More Information</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>24</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</CENTER>

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

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; 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 or
additional information. If anyone provides you with different or
additional 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;">i
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<DIV align="left" style="font-size: 10pt;">
<A name='101'></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>You should carefully review the information contained
elsewhere or incorporated by reference in this prospectus
supplement and the accompanying prospectus and should carefully
consider the following risk factors, as well as the &#147;Risk
Factors&#148; section in the accompanying prospectus.</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>Settlement provisions contained in the forward sale agreement
subject us to certain risks.</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 forward purchaser will have the right to accelerate the
forward sale agreement on a date specified by the forward
purchaser if (a)&nbsp;in its judgment, it is unable to continue
to borrow a number of shares of our common stock equal to the
number of shares to be delivered by us under the forward sale
agreement or the cost of borrowing our common stock has
increased above a specified rate per annum, (b)&nbsp;the average
of the closing bid and offer price or, if available, the closing
sale price of our common stock on the NYSE is less than or equal
to $7.00&nbsp;per share on any trading day or (c)&nbsp;we
declare any dividend on shares of our common stock (except our
regular quarterly dividend of $.225&nbsp;per share of common
stock) and set a record date for payment prior to the maturity
date specified in the forward sale agreement. In the event that
early settlement of the forward sale agreement is based on any
of the foregoing events, we will be required to physically
settle the forward sale agreement by delivering shares of our
common stock. The forward purchaser also will have the right to
accelerate the forward sale agreement and to require us to
either physically settle or net stock settle the forward sale
agreement on a date specified by the forward purchaser if a
nationalization, insolvency, insolvency filing, delisting or
change in law occurs, each as defined in the forward sale
agreement, or if our board of directors votes to approve an
action that, if consummated, would result in a merger or other
takeover event of our company or our operating partnership. The
forward sale agreement is also subject to cancellation and
payment, as defined in the forward sale agreement, upon the
consummation of a merger or other takeover event of our company
or our operating partnership. The forward purchaser&#146;s
decision to exercise its right to require us to settle the
forward sale agreement early will be made irrespective of our
interests, including our need for capital. In the event that we
elect or are required to settle the forward sale agreement with
shares of our common stock, delivery of such shares would result
in dilution to our earnings per share and return on equity. In
no event may we settle the forward sale agreement by delivering
shares of our common stock to the extent that such settlement
would result in the forward purchaser holding in excess of
either (i)&nbsp;9% of our outstanding shares or (ii)&nbsp;shares
in excess of the ownership limit specified in our charter, which
may result in delayed settlement of the forward sale agreement
and corresponding extension of the term in the forward sale
agreement.
</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 under limited circumstances described above, in addition
to physical settlement of the forward sale agreement, we also
have the right to elect cash or net stock settlement under the
forward sale agreement. If we elect cash or net stock
settlement, the forward purchaser or one of its affiliates will
purchase shares of our common stock in compliance with the
volume limitations specified in Rule&nbsp;10b-18 under the
Securities Exchange Act of 1934, as amended, or the Exchange
Act, as if such Rule applied, in secondary market transactions
over a period of time for delivery to stock lenders in order to
unwind its hedge. If the price of our common stock at which the
forward purchaser unwinds its hedge exceeds the forward sale
price, we will pay the forward purchaser an amount in cash equal
to such difference if we elect to cash settle and, if we elect
to net stock settle, we will deliver a number of shares of our
common stock having a market value equal to such difference. Any
such difference could be significant. In addition, the purchases
of our common stock by the forward purchaser to unwind its hedge
could cause the price of our common stock to increase over time,
thereby increasing the number of shares or amount of cash we owe
to the forward purchaser.
</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>Cash settlement of the forward sale agreement would have
uncertain tax consequences, including the possible loss of our
REIT status.</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 federal income tax law regarding cash settlement of the
forward sale agreement is uncertain in some respects. In the
event that we elect cash settlement under the forward sale
agreement and the price at which the forward purchaser unwinds
its hedge is below the forward price, we would receive a
</DIV>

<P align="center" style="font-size: 10pt;">S-1
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<DIV align="left" style="font-size: 10pt;">
payment in cash from the forward purchaser under the forward
sale agreement. Under Section&nbsp;1032 of the Internal Revenue
Code (the &#147;Code&#148;), most gains and losses realized by a
corporation in dealing in its own shares or options or
securities futures contracts to buy or sell its shares are
non-taxable. There is no authority, however, directly concerning
the income tax consequences to a corporation that cash settles a
forward sale agreement for the sale of its own stock. In the
event that we recognize a significant gain from cash settlement
of the forward sale agreement, we might not be able to satisfy
the gross income requirements applicable to REITs under the
Code. In that case, we would have to rely upon the relief
provisions under the Code in order to avoid the loss of our REIT
status. Even if the relief provisions apply, we would incur a
100% tax on the gross income attributable to the greater of
(1)&nbsp;the amount by which we fail the 75% gross income test,
or (2)&nbsp;the excess of 95% of our gross income over the
amount of gross income attributable to sources that qualify
under the 95% gross income test, multiplied, in either case, by
a fraction intended to reflect our profitability. In the event
that these relief provisions were not available, we could lose
our REIT status under the Code.
</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>Any issuance of shares of our common stock in the future
could have a dilutive effect on your investment.</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 shares of our common stock, or securities
convertible or exchangeable into or exercisable for shares of
our common stock, in the public or private equity markets if and
when conditions are favorable, even if we do not have an
immediate need for capital at that time. We could choose to
issue such shares or securities for a variety of reasons,
including for investment or acquisition purposes. We may also,
either mandatorily or at our option, issue shares upon
settlement of the forward sale agreement. Raising funds by
issuing shares of our common stock, or securities convertible or
exchangeable into or exercisable for shares of our common stock,
will dilute the ownership of our existing stockholders.
Additionally, we may issue equity securities in the future that
have rights, preferences or privileges that are senior to your
rights as a holder of our common stock.
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
<A name='102'></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 in the Northeast, primarily in Pennsylvania. As
of June&nbsp;30, 2005, we owned 58 properties, aggregating
approximately 5.7&nbsp;million square feet of gross leasable
area, or GLA, including 52 wholly owned properties comprising
approximately 5&nbsp;million square feet of GLA and six
properties owned through joint ventures comprising approximately
700,000&nbsp;square feet of GLA. The portfolio was approximately
95% leased as of that date, excluding five 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 our operating partnership, Cedar
Shopping Centers Partnership, L.P., a Delaware limited
partnership. We own approximately a 93.2% 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 South Bayles
Avenue, Port Washington, NY 11050, our telephone number is
(516)&nbsp;767-6492 and our website address is
www.cedarshoppingcenters.com. The information contained on our
website is not 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; 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, unless the context otherwise
requires, the terms &#147;we&#148;, &#147;us&#148; and
&#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;">
<A name='103'></A>
</DIV>

<!-- link1 "RECENT DEVELOPMENTS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>RECENT DEVELOPMENTS</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>Recently Completed Acquisitions</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;
Since January&nbsp;1, 2005, we have completed the acquisitions
of an aggregate of 27&nbsp;properties containing 807,000 square
feet of GLA for total transaction costs of approximately
$97.6&nbsp;million.
</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 most recent acquisitions completed since the beginning of
our second quarter are as follows:
</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>Portfolio from Giltz&nbsp;&#38; Associates.</I> On
April&nbsp;25, 2005, we closed on purchases of 21 of 25
properties included in a portfolio owned by affiliates of
Giltz&nbsp;&#38; Associates consisting primarily of drug store
anchored properties located in Ohio, Pennsylvania, New York and
Connecticut. Ten of the properties are anchored by Discount Drug
Mart and eight of the properties are net-leased to single
tenants, including four CVS Drug Stores, one Staples, one
McDonalds, one Waffle House and one bank. The aggregate
consideration paid for the 21 properties, excluding closing
costs, was approximately $67.9&nbsp;million, consisting of:
(a)&nbsp;approximately $27.6&nbsp;million of new first mortgage
financings at a weighted average interest rate of approximately
5.2%&nbsp;per annum, fixed for a 10-year term; (b)&nbsp;the
assumption of approximately $8.4&nbsp;million of existing
financing at a weighted average interest rate of 7.4%&nbsp;per
annum; (c)&nbsp;approximately $13.8&nbsp;million in newly issued
operating partnership units (convertible into our common stock);
and (d)&nbsp;approximately $18.1&nbsp;million drawn from our
secured revolving credit facility.
</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;
Subsequently, we closed on the purchase of two additional
CVS-anchored properties in Ohio, one Discount Drug Mart-anchored
property in Ohio and one property in Connecticut anchored by
T.J. Maxx, Staples, Olympia Sports and Sleepy&#146;s. The total
consideration paid for the four properties was approximately
$19.4&nbsp;million, excluding closing costs, and also involved a
combination of new first mortgage financings, assumption of
existing financing, issuance of additional operating partnership
units and draws on our secured revolving credit facility.
</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>Pending Acquisitions</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 entered into definitive agreements or letters of intent
for a number of acquisitions. We intend to use any net proceeds
received by us upon settlement of the forward sale agreement to
fund certain of these acquisitions. Although we have entered
into definitive agreements with respect to the
</DIV>

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<DIV align="left" style="font-size: 10pt;">
pending acquisitions discussed below, there is no assurance that
any of these transactions will be consummated or will be
consummated on the specified terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Portfolios in Pennsylvania, Virginia and Michigan</I>
</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;
On May&nbsp;10, 2005, we entered into agreements to purchase:
(a)&nbsp;a portfolio of eight properties anchored by, or leased
entirely to, supermarkets for $94.8&nbsp;million, exclusive of
closing costs and fees, with six of the properties being located
in the Chesapeake region of Virginia, and two of the properties
being located in central Pennsylvania; and (b)&nbsp;a portfolio
of four redevelopment properties for approximately
$24&nbsp;million, exclusive of closing costs and fees, with
three of the properties being located in Michigan and the
remaining property being located in Pennsylvania.
</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 three Pennsylvania properties contain approximately
220,000&nbsp;square feet of GLA and 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">
    Liberty Marketplace in Dubois, Pennsylvania, a Martins
    supermarket-anchored property of approximately
    68,200&nbsp;square feet of GLA;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    The Mechanicsburg Shopping Center in Mechanicsburg,
    Pennsylvania, consisting of a free-standing Giant supermarket of
    approximately 51,000&nbsp;square feet of GLA;&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">
    The Dunmore Shopping Center in Dunmore, Pennsylvania, a
    101,000&nbsp;square foot center anchored by Consolidated Stores
    and Enyon Furniture. The property, which presently has a
    34,000&nbsp;square foot vacancy, is a redevelopment candidate.</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 six Virginia properties are anchored by, or leased entirely
to, Farm Fresh (SuperValu) Supermarkets and contain
approximately 455,000&nbsp;square feet of GLA. They include:
</DIV>

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

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    <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 General Booth Shopping Center in Virginia Beach, Virginia,
    consisting of approximately 73,320&nbsp;square feet of GLA,
    anchored by a Farm Fresh Supermarket of approximately
    53,600&nbsp;square feet of GLA, plus a dozen small shop tenant
    spaces;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    The Suffolk Plaza Shopping Center in Suffolk, Virginia, anchored
    by a Farm Fresh Supermarket of approximately 67,216&nbsp;square
    feet of GLA (and shadow-anchored by a Belks Department Store and
    other tenants);</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    The Kempsville Shopping Center in Virginia Beach, Virginia,
    consisting of approximately 94,477&nbsp;square feet of GLA,
    anchored by a Farm Fresh Supermarket of approximately
    74,000&nbsp;square feet of GLA, including warehouse and office
    space, plus more than a dozen small stores;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    The Little Creek Shopping Center in Norfolk, Virginia,
    consisting of a free-standing Farm Fresh Supermarket of
    approximately 66,120&nbsp;square feet of GLA and an adjacent
    outparcel net leased to KFC;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    The Smithfield Shopping Center in Smithfield, Virginia, which
    includes a Farm Fresh Supermarket of approximately
    45,544&nbsp;square feet of GLA physically located in the middle
    of a strip center and Peebles, Dollar Tree and a number of small
    shops;&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">
    Coliseum Marketplace in Hampton, Virginia, consisting of
    approximately 104,941&nbsp;square feet of GLA, anchored by a
    Farm Fresh Supermarket of approximately 57,662&nbsp;square feet
    of GLA plus nearly a dozen smaller tenants.</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 three Michigan redevelopment properties include the
following:
</DIV>

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<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 Clyde Park Shopping Center in Wyoming, Michigan, a
    117,000&nbsp;square foot potential redevelopment center anchored
    by an 85,000&nbsp;square foot Value City store, with
    32,000&nbsp;square feet of vacancy;</TD>
</TR>

</TABLE>

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

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

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<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 Stadium Plaza Shopping Center in East Lansing, Michigan, an
    80,000&nbsp;square foot shopping center with a
    54,560&nbsp;square foot newly built, but presently
    &#147;dark&#148;, Borman&#146;s (A&#38;P) supermarket and a
    10,000&nbsp;square foot vacancy;&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">
    Bay City Stadium Plaza in Bay City, Michigan, a
    136,000&nbsp;square foot center anchored by a 64,560&nbsp;square
    foot Kroger supermarket, with a lease extending to 2014
    exclusive of renewal options, and a 12,000&nbsp;square foot
    vacancy together with a vacant development parcel.</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 purchase price for the two portfolios will involve the
assumption of certain existing conduit first mortgage loans at a
weighted average interest rate of 6.0%&nbsp;per annum with
maturities scheduled from 2009 to 2014; the balance of the
purchase price will be drawn down from our existing secured
revolving credit facility.
</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;
Closing of the purchase of the properties is expected to occur
prior to October 2005, except for at least two properties where
additional closing conditions need to be satisfied.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Trexlertown, PA</I>
</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;
On July&nbsp;10, 2005, we entered into an agreement to acquire
the Trexler Mall in Trexlertown, Pennsylvania, a
340,000&nbsp;square foot multi-anchored community shopping
center, anchored, among others, by an 88,000&nbsp;square foot
Kohl&#146;s Department Store, a 62,000&nbsp;square foot Bon-Ton
Department Store and a 56,750&nbsp;square foot Giant Supermarket.
</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 acquisition, which involves an operating lease plus a
purchase option of $2.5&nbsp;million, will include a price of
approximately $5.5&nbsp;million in cash, exclusive of closing
costs, and the assumption of approximately $23&nbsp;million
first mortgage financing at 5.42%&nbsp;per annum due in 2014.
The cash portion of the acquisition price is expected to be
funded by draws on our secured revolving credit facility.
</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 acquisition is subject to our due diligence review, our
board of directors&#146; consent, lender&#146;s consent and
normal closing conditions. The transaction is expected to be
completed in September 2005.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Oakland Mills</I>
</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;
On June&nbsp;20, 2005, we entered into an agreement to acquire
the Oakland Mills Shopping Center in Columbia, Maryland. The
purchase price will be approximately $8&nbsp;million, subject to
closing adjustments, and will be funded initially from our
secured revolving credit facility. The property is also expected
to be included as a collateral property for such credit
facility. Due diligence on the property was completed on
July&nbsp;20, 2005. The acquisition of the property is expected
to be completed in August 2005.
</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;
Oakland Mills is a 58,000&nbsp;square foot community shopping
center anchored by a 43,500&nbsp;square foot Food Lion
supermarket, whose lease extends to 2018, exclusive of options.
Oakland Mills is situated on approximately six acres and is
located near existing elementary, junior high and high schools.
Columbia, Maryland is an established planned urban community,
which was originally developed in the late-1960&#146;s.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>The Shops at Suffolk Downs</I>
</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;
On June&nbsp;2, 2005, we entered into an agreement to acquire a
shopping center known as &#147;The Shops at Suffolk Downs&#148;
located in Revere, Massachusetts. This purchase will mark our
second shopping center acquisition in the greater Boston and
eastern Massachusetts area. Each such acquisition is anchored by
a &#147;Super Stop&nbsp;&#38; Shop&#148; supermarket.
</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 Shops at Suffolk Downs is a newly-developed shopping center
property anchored by a recently completed 75,000&nbsp;square
foot Super Stop&nbsp;&#38; Shop and shadow-anchored by a
123,000&nbsp;square foot Target, located on a separate parcel.
The property also includes a Wendy&#146;s. We expect to build
and lease an additional 36,500&nbsp;square feet of retail space
at the property. When completed, the property will have
123,000&nbsp;square feet of GLA.
</DIV>

<P align="center" style="font-size: 10pt;">S-5
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Carlisle, Pennsylvania</I>
</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;
On July&nbsp;25, 2005, we entered into an agreement to acquire
the Point at Carlisle Plaza in Carlisle, Pennsylvania, a 183,000
square foot shopping center anchored by Bon-Ton Department Store
and Office Max. The purchase price is approximately
$11&nbsp;million for this unencumbered center. Closing is
estimated to occur in September 2005.
</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>Letters of Intent</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 entered into letters of intent to purchase various
shopping centers and properties as discussed below. Each of
these transactions is subject to execution and delivery of a
definitive purchase agreement, to our continued due diligence,
to our board of directors&#146; approval, and to normal closing
conditions. There is no assurance that any of these transactions
will be consummated or will be consummated on the specified
terms.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Fredericksburg and Richmond, Virginia</I>
</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 entered into a letter of intent to acquire 15
unencumbered properties located in Fredericksburg and Richmond,
Virginia for an aggregate purchase price of $111.7&nbsp;million,
of which $90&nbsp;million will be paid at closing expected to
occur in September 2005, with the balance to be earned over a
period of time expected to be within six months after closing.
The properties consist of two free standing supermarkets, 12
multi-tenant retail buildings and one free standing retail
building.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>East Pennsboro, Pennsylvania</I>
</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 signed a letter of intent to purchase Pennsylvania
Commons in East Pennsboro, Pennsylvania for a purchase price of
$17.8&nbsp;million. This is a 110,000 square foot unencumbered
center completed in 1999 anchored by a Giant Supermarket.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<I>Shore Mall, New Jersey</I>
</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 signed a letter of intent to acquire The Shore Mall in
Egg Harbor Township, New Jersey for a purchase price of
$2.5&nbsp;million in cash (or at seller&#146;s option a
combination of cash and operating partnership units) and the
assumption of an existing mortgage of $31.3&nbsp;million and
payment obligations to a former owner of approximately
$3.3&nbsp;million. The Shore Mall is an enclosed regional mall
of approximately 620,000 square feet of GLA anchored by a
167,200 square foot Boscov&#146;s, a 144,000 square foot Value
City and an 85,000 square foot Burlington Coat Factory. The
letter of intent is subject to a right of first refusal of a
former owner to acquire this property. We are presently managing
this property. Mr.&nbsp;Leo Ullman, our chairman of the board,
chief executive officer and president, has an 8% ownership
interest in this property. This transaction is subject to the
additional conditions of receipt of a fairness opinion,
appraisals and lender&#146;s consent. We have also entered into
a letter of intent to acquire approximately 50&nbsp;acres of
land adjacent to The Shore Mall from the same owners for a
purchase price of $2&nbsp;million in cash or, at seller&#146;s
option, a combination of cash and operating partnership units.
</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>Future Acquisitions</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 also intend to acquire additional community and neighborhood
shopping centers during 2005 and thereafter and are actively
looking at additional centers, although we have not yet entered
into any binding agreements or letters of intent other than as
described above. We also expect to exercise our option to
purchase six additional properties anchored by Discount Drug
Mart in Ohio from affiliates of Giltz&nbsp;&#38; Associates
during the next two years. There is no assurance that we will
consummate any additional acquisitions or the terms thereof.
</DIV>

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

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<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;
On August&nbsp;2, 2005, our board of directors approved a
dividend of $.225&nbsp;per share with respect to our common
stock as well as an equal distribution per unit on our
outstanding operating partnership units. At the same time, our
board approved a dividend of $.554688&nbsp;per share with
respect to 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
dividends will be paid on August&nbsp;22, 2005 to shareholders
of record on August&nbsp;12, 2005. Purchasers in this offering
will not receive such dividends by virtue of their purchase.
</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>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 from the sale of the common
stock we are offering, after deducting the underwriting discount
and estimated expenses payable by us, will be approximately
$124,730,000. We will not initially receive any proceeds from
the sale of shares of common stock offered by the forward
purchaser. We expect to receive net proceeds of approximately
$41,610,000 (or $60,334,500 if the overallotment option is
exercised in full), subject to the provisions of the forward
sale agreement, only upon full physical settlement of the
forward sale agreement. We expect settlement of the forward sale
agreement will occur within twelve months following the date of
this prospectus supplement. Except under the circumstances
described in the succeeding paragraph, in addition to physical
settlement, we also have the right to elect cash or net stock
settlement of the forward sale agreement, which will impact any
net proceeds received by us upon settlement of the forward sale
agreement and may, instead, require us to deliver cash or common
stock to the forward purchaser. We will contribute the net
proceeds from our offering of common stock and any net proceeds
received from the subsequent settlement of the forward sale
agreement to our operating partnership. Our operating
partnership presently intends to use all the net proceeds from
our offering of common stock to repay amounts outstanding on our
secured revolving credit facility and for general corporate
purposes, including the acquisition of shopping centers that are
complementary to our existing portfolio, and for the development
and redevelopment of properties, and presently intends to settle
forward sales concurrently with the closing of pending or future
acquisitions. As of June&nbsp;30, 2005, we had approximately
$43.4&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&nbsp;basis points, an average rate of 4.81% per
annum as of June&nbsp;30, 2005, subject to increases to a
maximum of 205&nbsp;basis points, depending on our overall
leverage ratio. Affiliates of certain of the underwriters are
lenders under our secured revolving credit facility and will
receive a portion of the repayment of such facility with the net
proceeds of this offering. See &#147;Underwriting&#151;Other
Relationships.&#148; We expect thereafter to 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>

<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 forward purchaser will have the right to accelerate the
forward sale agreement on a date specified by the forward
purchaser if (a)&nbsp;in its judgment, it is unable to continue
to borrow a number of shares of our common stock equal to the
number of shares to be delivered by us under the forward sale
agreement or the cost of borrowing our common stock has
increased above a specified rate per annum, (b)&nbsp;the average
of the closing bid and offer price or, if available, the closing
sale price of our common stock on the NYSE is less than or equal
to $7.00&nbsp;per share on any trading day, or (c)&nbsp;we
declare any dividend (except our regular quarterly dividend of
$.225&nbsp;per share of common stock) on shares of our common
stock and set a record date for payment prior to the maturity
date specified in the forward sale agreement. In the event that
early settlement of the forward sale agreement is based on any
of the foregoing events, we will be required to physically
settle the forward sale agreement by delivering shares of our
common stock. The forward purchaser also will have the right to
accelerate the forward sale agreement and to require us to
either physically settle or net stock settle the forward sale
agreement on a date specified by the forward purchaser if a
nationalization, insolvency, insolvency filing, delisting or
change in law occurs, each as defined in the forward sale
agreement, or if our board of directors votes to approve an
action that, if consummated, would result in a merger or other
takeover event of our company
</DIV>

<P align="center" style="font-size: 10pt;">S-7
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<DIV align="left" style="font-size: 10pt;">
or our operating partnership. The forward sale agreement is also
subject to cancellation and payment, as defined in the forward
sale agreement, upon the consummation of a merger or other
takeover event of our company or our operating partnership. The
forward purchaser&#146;s decision to exercise its right to
require us to settle the forward sale agreement early will be
made irrespective of our interests, including our need for
capital. In the event that we elect or are required to settle
the forward sale agreement with shares of our common stock,
delivery of such shares would result in dilution to our earnings
per share and return on equity. In no event may we settle the
forward sale agreement by delivering shares of our common stock
to the extent that such settlement would result in the forward
purchaser holding in excess of either (i)&nbsp;9% of our
outstanding shares or (ii)&nbsp;shares in excess of the
ownership limit specified in our charter, which may result in
delayed settlement of the forward sale agreement and
corresponding extension of the term in the forward sale
agreement.
</DIV>

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

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<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 the purchase
agreement among us, the forward purchaser and the underwriters,
we have agreed to sell an aggregate of 6,000,000&nbsp;shares of
our common stock and the forward purchaser, which is an
affiliate of one of the underwriters, at our request, is
borrowing and delivering for sale an aggregate of
3,000,000&nbsp;shares of our common stock to the underwriters,
and each underwriter named below has severally agreed to
purchase from us and the forward purchaser, in the proportion
specified in the purchase agreement, the number of shares set
forth opposite such underwriter&#146;s 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>3,960,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Raymond James&nbsp;&#38; Associates, Inc.&nbsp;</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>2,340,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    Banc of America Securities LLC</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>720,000</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>1,260,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left: 10px; text-indent: -10px">
    UBS Securities LLC</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>720,000</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>9,000,000</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 sold
under the purchase agreement if any of the shares 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;
If the forward purchaser is unable to borrow all of the shares
of our common stock to be delivered for sale by it to the
underwriters, the purchase agreement provides that we will issue
and sell under the purchase agreement a number of shares equal
to the number of shares that the forward purchaser does not
borrow and deliver for sale to the underwriters. The forward
purchaser will have no liability to the underwriters or us under
the purchase agreement in the event that it is unable to borrow
and deliver for sale any of the shares of our common stock
referred to above.
</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 shares, 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 shares, 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>Forward Sale 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;
We have entered into a forward sale agreement on the date of
this prospectus supplement with Merrill Lynch International, as
forward purchaser, related to 3,000,000&nbsp;shares of our
common stock (or 4,350,000&nbsp;shares of our common stock if
the underwriters exercise the overallotment option in full). In
connection with the execution of the forward sale agreement and
at our request, the forward purchaser is borrowing and
delivering for sale in this offering 3,000,000&nbsp;shares of
our common stock. In the event that the forward purchaser
borrows and delivers for sale to the underwriters less than
3,000,000&nbsp;shares of our common stock in this offering, the
number of shares of our common stock to be sold under the
forward sale agreement shall be reduced to equal the number of
shares of our common stock borrowed and delivered for sale in
this offering by the forward purchaser and the forward sale
agreement will become effective only for the number of shares
actually borrowed and delivered for sale by the forward
purchaser.
</DIV>

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

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<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;
Prior to settlement under the forward sale agreement, the
forward purchaser will utilize the aggregate net proceeds from
the sale of the borrowed shares of our common stock in this
offering as cash collateral for the borrowing of such shares. We
will receive an amount equal to the net proceeds from the sale
of the borrowed shares of our common stock in this offering,
subject to the provisions of the forward sale agreement, from
the forward purchaser upon settlement of the forward sale
agreement if we elect to settle the forward sale agreement
entirely with shares of our common stock, assuming the forward
sale price is the initial forward sale 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;
The forward sale agreement provides for settlement on a
settlement date or dates to be specified at our discretion no
later than twelve months following the date of this prospectus
supplement at an initial forward sale price of $13.87 per share,
which is the public offering price of our shares of common stock
less the underwriting discount. The forward sale agreement
provides that the initial forward sale price will be subject to
increase based on a floating interest factor equal to the
federal funds rate, less a spread and less our regular quarterly
dividends of $.225 per share of common stock. However, because
the aggregate of the spread and such dividends may be greater
than the increase resulting from the federal funds rate for part
or all of the term of the forward sale agreement, the actual
forward sale price at settlement may be less than the initial
forward sale 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;
The forward purchaser will have the right to accelerate the
forward sale agreement on a date specified by the forward
purchaser if (a)&nbsp;in its judgment, it is unable to continue
to borrow a number of shares of our common stock equal to the
number of shares to be delivered by us under the forward sale
agreement or the cost of borrowing our common stock has
increased above a specified rate per annum, (b)&nbsp;the average
of the closing bid and offer price or, if available, the closing
sale price of our common stock on the NYSE is less than or equal
to $7.00&nbsp;per share on any trading day, or (c)&nbsp;we
declare any dividend on shares of our common stock (except our
regular quarterly dividend of $.225 per share of common stock)
and set a record date for payment prior to the maturity date
specified in the forward sale agreement. In the event that early
settlement of the forward sale agreement is based on any of the
foregoing events, we will be required to physically settle the
forward purchase agreement by delivering shares of our common
stock. The forward purchaser also will have the right to
accelerate the forward sale agreement and to require us to
either physically settle or net stock settle the forward sale
agreement on a date specified by the forward purchaser if a
nationalization, insolvency, insolvency filing, delisting or
change in law occurs, each as defined in the forward sale
agreement, or if our board of directors votes to approve an
action that, if consummated, would result in a merger or other
takeover event of our company or our operating partnership. The
forward sale agreement is also subject to cancellation and
payment, as defined in the forward sale agreement, upon the
consummation of a merger or other takeover event of our company
or our operating partnership. The forward purchaser&#146;s
decision to exercise its right to require us to settle the
forward sale agreement early will be made irrespective of our
interests, including our need for capital. In the event that we
elect or are required to settle the forward sale agreement with
shares of our common stock, delivery of such shares would result
in dilution to our earnings per share and return on equity. In
no event may we settle the forward sale agreement by delivering
shares of our common stock to the extent that such settlement
would result in the forward purchaser holding in excess of
either (i)&nbsp;9% of our outstanding shares or (ii)&nbsp;shares
in excess of the ownership limit specified in our charter, which
may result in delayed settlement of the forward sale agreement
and corresponding extension of the term in the forward sale
agreement.
</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 under the circumstances described above, in addition to
physical settlement of the forward purchase agreement, we also
have the right to elect cash or net stock settlement under the
forward sale agreement. Although we expect to settle the forward
sale agreement entirely by the physical delivery of shares of
our common stock, we may elect cash or net stock settlement for
all or a portion of our obligations if we conclude that it is in
our interest to do so. If we elect cash or net stock settlement,
the forward purchaser or one of its affiliates will purchase
shares of our common stock in compliance with the volume
limitations specified in Rule&nbsp;10b-18 under the Exchange
Act, as if such Rule applied, in secondary market transactions
over a period of time for delivery to stock lenders in order to
unwind its hedge. In the event that we elect to cash or net
stock settle the forward sale agreement, if the price of our
common
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
stock at which the forward purchaser unwinds its hedge exceeds
the applicable forward sale price, we will pay the forward
purchaser under the forward sale agreement an amount in cash, if
we cash settle, equal to such difference or deliver a number of
shares of our common stock, if we net stock settle, having a
market value equal to such difference. If the price of our
common stock at which the forward purchaser unwinds its hedge is
below the applicable forward sale price, the forward purchaser
will pay us such difference in cash, if we cash settle, or in
shares of our common stock, if we net stock settle. Under the
forward sale agreement, if we elect cash or net stock
settlement, the price at which the forward purchaser unwinds its
hedge will include a fee to the forward purchaser.
</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;
Before the issuance of our shares of common stock upon
settlement of the forward sale agreement, the forward sale
agreement will be reflected in our diluted earnings per share
calculations using the treasury stock method. Under this method,
the number of shares of our common stock used in calculating
diluted earnings per share is deemed to be increased by the
excess, if any, of the number of shares that would be issued
upon physical settlement of the forward sale agreement over the
number of shares that could be purchased by us in the market
(based on the average market price during the period) using the
proceeds receivable upon settlement (based on the applicable
forward sale price at the end of the reporting period).
Consequently, we anticipate there will be no dilutive effect on
our earnings per share except during periods when the average
market price of our common stock is above the per share
applicable forward sale price, which is initially $13.87 (which
is equal to our per share proceeds, before expenses, as set
forth in the table on the cover of this prospectus supplement),
subject to increase based on a floating interest factor equal to
the federal funds rate, less a spread and less our regular
quarterly dividend of $.225&nbsp;per share 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>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 and the forward purchaser that
they propose initially to offer the shares of common stock to
the public at the initial public offering price specified on the
cover page of this prospectus supplement and to dealers at that
price less a concession not in excess of $.40&nbsp;per share.
The underwriters may allow, and such dealers may reallow, a
discount not in excess of $.10&nbsp;per share to certain other
dealers. After the initial public offering, the public offering
price and other selling terms 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 initial public offering price,
underwriting discount and proceeds before expenses to us. The
information assumes (a)&nbsp;either no exercise or full exercise
by the underwriters of the overallotment option, and
(b)&nbsp;that the forward sale agreement is physically settled
based upon the aggregate initial forward sale price and by the
delivery of shares of our common stock. We expect to receive
proceeds of approximately $41,610,000, net of the underwriting
discount and offering expenses, subject to certain adjustments
as described above, only upon physical settlement of the forward
sale agreement. Settlement is expected to occur within twelve
months following the date of this prospectus supplement. If the
forward sale agreement is net stock settled or cash settled, we
will not receive the full proceeds shown below.
</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="32%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&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>Per Share</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>Without Option</B></TD><TD></TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="center" nowrap><B>With Option</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>
</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>$14.60</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$131,400,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$151,110,000</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>$.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$6,570,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$7,555,500</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<BR>
    Cedar Shopping Centers</DIV>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$13.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$124,830,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD align="right" valign="bottom" nowrap>$143,554,500</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 $100,000 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>Overallotment Option</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;
Merrill Lynch International, as forward purchaser, has granted
an option to the underwriters to purchase up to 1,350,000
additional shares of common stock at the initial public offering
price less the
</DIV>

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<DIV align="left" style="font-size: 10pt;">
underwriting discount which will be exercisable with respect to
the forward sale agreement. The underwriters may exercise this
option for 30&nbsp;days from the date of this prospectus
supplement solely to cover any overallotments. If the
underwriters exercise this option, each will be obligated,
subject to conditions contained in the purchase agreement, to
purchase a number of additional shares proportionate to that
underwriter&#146;s initial amount reflected in the above table.
</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 common stock as of the date of this prospectus
supplement have agreed, with some exceptions, not to sell or
transfer any common stock for 90&nbsp;days after the date of
this prospectus 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 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 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 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 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 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 common
    stock, whether any such swap or transaction is to be settled by
    delivery of 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 shares of common stock and to
securities convertible into or exchangeable or exercisable for
or repayable with shares of common stock. It also applies to
shares of our 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: 6pt; 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, if: (i)&nbsp;during the last
17&nbsp;days of the 90&nbsp;day lockup period, we issue an
earnings release or material news or a material event relating
to us occurs, or (ii)&nbsp;prior to the expiration of the
90&nbsp;day lockup period, we announce that we will release
earnings results or become aware that material news or a
material event will occur during the 16&nbsp;day period
beginning on the last day of the 90 day lockup period, then the
lockup period will continue to apply until the expiration of the
18&nbsp;day period beginning on the issuance of the earnings
release or the occurrence of the material news or material
event, as applicable, unless Merrill Lynch, Pierce,
Fenner&nbsp;&#38; Smith Incorporated waives, in writing, such
extension.
</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 common stock is listed on the NYSE under the symbol
&#147;CDR.&#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 shares of common stock offered
hereby is completed, rules of the SEC may limit the ability of
the underwriters to bid for and purchase our common stock.
However, Merrill Lynch, Pierce, Fenner&nbsp;&#38; Smith
Incorporated may engage in transactions that stabilize the price
of the common 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;
The underwriters may purchase and sell shares of our common
stock in the open market. These transactions may include short
sales, stabilizing transactions and purchases to cover the
positions created by short sales. Short sales involve the sale
by the underwriters of a greater number of shares than they are
required to purchase in this offering. &#147;Covered&#148; short
sales are made in an amount not greater than the
</DIV>

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<DIV align="left" style="font-size: 10pt;">
underwriters&#146; option to purchase additional shares from the
forward purchaser in this offering. The underwriters may close
out any covered short position by either exercising their option
to purchase additional shares or purchasing shares in the open
market. In determining the shares to close out the covered short
positions, the underwriters will consider, among other things,
the price of shares available for purchase in the open market as
compared to the price at which they may purchase the shares
through the overallotment option. &#147;Naked&#148; short sales
are sales in excess of the overallotment option. The
underwriters must close out any naked short position by
purchasing shares in the open market. A naked short position is
more likely to be created if the underwriters are concerned that
there may be downward pressure on the price of our common stock
in the open market after pricing that could adversely affect
investors who purchase in the offering. Stabilizing transactions
consist of various bids for or purchases of our common stock
made by the underwriters in the open market prior to the
completion of this 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;
Similar to other purchase transactions, the underwriters&#146;
purchases to cover syndicate short positions may have the effect
of raising or maintaining the market price of our common stock
or preventing or retarding a decline in the market price of our
common stock. As a result, the price of our common stock may be
higher than the price that would otherwise exist in the open
market.
</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
our common 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>European Economic Area Selling Restrictions</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 relation to each Member State of the European Economic Area
which has implemented the Prospectus Directive (each, a
&#147;Relevant Member State&#148;), each underwriter has
represented and agreed that with effect from and including the
date on which the Prospectus Directive is implemented in that
Relevant Member State (the &#147;Relevant Implementation
Date&#148;) it has not made and will not make an offer of our
common stock to the public in that Relevant Member State prior
to the publication of a prospectus in relation to our common
stock which has been approved by the competent authority in that
Relevant Member State or, where appropriate, approved in another
Relevant Member State and notified to the competent authority in
that Relevant Member State, all in accordance with the
Prospectus Directive, except that it may, with effect from and
including the Relevant Implementation Date, make an offer of our
common stock to the public in that Relevant Member State at any
time:
</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="9%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(a)</TD>
    <TD align="left">
    to legal entities which are authorised or regulated to operate
    in the financial markets or, if not so authorised or regulated,
    whose corporate purpose is solely to invest in securities;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(b)</TD>
    <TD align="left">
    to any legal entity which has two or more of (1)&nbsp;an average
    of at least 250 employees during the last financial year;
    (2)&nbsp;a total balance sheet of more
    than&nbsp;<FONT face="times new roman,times">&#128;</FONT>43,000,000
    and (3)&nbsp;an annual net turnover of more
    than&nbsp;<FONT face="times new roman,times">&#128;</FONT>50,000,000,
    as shown in its last annual or consolidated accounts; or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>(c)</TD>
    <TD align="left">
    in any other circumstances which do not require the publication
    by the Issuer of a prospectus pursuant to Article&nbsp;3 of the
    Prospectus Directive.</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 the purposes of this provision, the expression an
&#147;offer of our common stock to the public&#148; in relation
to our common stock in any Relevant Member State means the
communication in any form and by any means of sufficient
information on the terms of the offer and our common stock to be
offered so as to enable an investor to decide to purchase our
common stock, as the same may be varied in that Member State by
any measure implementing the Prospectus Directive in that Member
State. The expression &#147;Prospectus Directive&#148; means
Directive 2003/71/EC and includes any relevant implementing
measure in each Relevant Member State.
</DIV>

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

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>UK Selling Restrictions</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 underwriter has represented and agreed that: (a)&nbsp;it
has only communicated or caused to be communicated and will only
communicate or cause to be communicated an invitation or
inducement to engage in investment activity (within the meaning
of section&nbsp;21 of the Financial Services and Markets Act of
2000 (the &#147;FSMA&#148;)) received by it in connection with
the issue or sale of our common stock in circumstances in which
section&nbsp;21(1) FSMA does not apply; and (b)&nbsp;it has
complied and will comply with all applicable provisions of the
FSMA with respect to anything done by it in relation to our
common stock in, from or otherwise involving the United Kingdom.
</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 Public Offering Outside the United States</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;
No action has been or will be taken in any jurisdiction (except
in the United States) that would permit a public offering of our
common stock, or the possession, circulation or distribution of
this prospectus supplement or the accompanying prospectus or any
other material relating to us or our common stock in any
jurisdiction where action for that purpose is required.
Accordingly, our common stock may not be offered or sold,
directly or indirectly, and this prospectus supplement, the
accompanying prospectus and any other offering material or
advertisements in connection with our common stock may not be
distributed or published, in or from any country or jurisdiction
except in compliance with any applicable rules and regulations
of any such country or jurisdiction.
</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;
Purchasers of our common stock offered by this prospectus
supplement and the accompanying prospectus may be required to
pay stamp taxes and other charges in accordance with the laws
and practices of the country of purchase in addition to the
public offering price specified on the cover page of this
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>Electronic 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;
Some or all of the underwriters will be facilitating Internet
distribution of this offering to certain of their Internet
subscription customers. The underwriters intend to allocate a
limited number of shares for sale to their online brokerage
customers. An electronic prospectus is available on the Internet
websites maintained by the applicable underwriters. Other than
the prospectus in electronic format, the information on the
websites is not part of this prospectus supplement or
accompanying prospectus.
</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>

<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 discussed above, Merrill Lynch International, an affiliate of
one of the underwriters, has entered into the forward sale
agreement described above under &#147;&#151;&nbsp;Forward Sale
Agreement.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='106'></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&nbsp;York, New&nbsp;York. Sidley Austin Brown&nbsp;&#38;
Wood <FONT style="font-variant:SMALL-CAPS">llp</FONT>,
New&nbsp;York, New&nbsp;York, will act as counsel to the
underwriters.
</DIV>

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

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<DIV align="left" style="font-size: 10pt;">
<A name='107'></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, the statement of
revenues and certain expenses of the Brickyard Shopping Center
for the fiscal year ended June&nbsp;30, 2004 appearing in Cedar
Shopping Centers, Inc.&#146;s Current Report on Form&nbsp;8-K/A
filed February&nbsp;23, 2005, the combined statement of revenues
and certain expenses of those certain properties of
Giltz&nbsp;&#38; Associates, Inc. for the year ended
December&nbsp;31, 2004 appearing in Cedar Shopping Centers,
Inc.&#146;s Current Report on Form&nbsp;8-K/A filed
June&nbsp;24, 2005, and the combined statement of revenues and
certain expenses of those certain properties of RVG Entity
Owners for the year ended December&nbsp;31, 2004 appearing in
Cedar Shopping Centers, Inc.&#146;s Current Report on
Form&nbsp;8-K/A filed August&nbsp;3, 2005, have been audited by
Ernst&nbsp;&#38; Young LLP, independent registered public
accounting firm, as set forth in their 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='108'></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 Exchange Act:
</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;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&#149;</TD>
    <TD align="left">
    Quarterly Reports on Form&nbsp;10-Q for the quarters ended
    March&nbsp;31, 2005 and June&nbsp;30, 2005 and Form&nbsp;10-Q/A
    for the quarter ended June&nbsp;30, 2005;</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 filed April&nbsp;8, 2005,
    April&nbsp;14, 2005, April&nbsp;27, 2005, June&nbsp;2, 2005,
    June&nbsp;29, 2005 and August&nbsp;9, 2005 and Forms&nbsp;8-K/A
    filed February&nbsp;23, 2005, May&nbsp;25, 2005, June&nbsp;24,
    2005 and August&nbsp;3, 2005;&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">
    Definitive proxy statement dated April&nbsp;11, 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 this 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&nbsp;York 11050, Attention: Investor Relations.
</DIV>

<DIV align="left" style="font-size: 10pt;">
<A name='109'></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 100 F Street, NE,
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>

<P align="center" style="font-size: 10pt;">S-15
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<DIV align="left" style="font-size: 10pt;">
<A name='110'></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 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 this prospectus supplement
and the accompanying prospectus and the other information
contained in our publicly available filings with the SEC,
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

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<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>$500,000,000</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 $500,000,000
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 June&nbsp;23, 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 style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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<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 $500,000,000.
</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="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 (SEC
File Number: 0-14510):
</DIV>

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    <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, 2004.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>2.</TD>
    <TD align="left">
    Cedar&#146;s Quarterly Report on Form&nbsp;10-Q for the quarter
    ended March&nbsp;31, 2005.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>3.</TD>
    <TD align="left">
    Current Reports on Form&nbsp;8-K filed April&nbsp;8, 2005,
    April&nbsp;14, 2005, April&nbsp;27, 2005 and June&nbsp;2, 2005
    and Form&nbsp;8-K/ A filed February&nbsp;23, 2005.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>4.</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.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>5.</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 11050-3765
</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

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<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 focus on the ownership, operation, development and
redevelopment of community and neighborhood shopping centers
located primarily in Pennsylvania. As of May&nbsp;15, 2005, we
owned 54 properties, aggregating approximately 5.6&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. As of May&nbsp;15, 2005, we owned
approximately a 93.8% 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 South Bayles
Avenue, Port Washington, NY 11050-3765, our telephone number is
(516)&nbsp;767-6492 and our website address is
www.cedarshoppingcenters.com.
</DIV>

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<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>

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    <TD width="3%"></TD>
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<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 sufficient revenues to meet
operating expenses, future debt service 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, but may not be
limited to, the following:
</DIV>

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    <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 declining demand for
    real estate;</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 real estate taxes,
    insurance premiums and utilities;</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>

<TR>
    <TD style="font-size: 6pt">&nbsp;</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 style="margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

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

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Substantially all of our properties are located in the
    Northeast, primarily in 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 our market
area 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. In addition, the economic
condition of each of our markets may be dependent on one or more
industries. An economic downturn in one of these industry
sectors may result in an increase in tenant vacancies, which may
harm our performance in the affected market. Economic and market
conditions also may impact the ability of our tenants to make
payments required by their leases. If our properties do not
generate sufficient income to meet operating expenses, including
future debt service, income and results of operations would be
significantly harmed.
</DIV>

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

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
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<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>Our properties consist primarily of community shopping and
    convenience 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, competition for tenants with other shopping centers in
our 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>

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

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I>At March&nbsp;31, 2005, we had approximately
    $267.4&nbsp;million of consolidated debt of which our share was
    approximately $231.0&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 March&nbsp;31, 2005, we had
approximately $267.4&nbsp;million of outstanding consolidated
indebtedness of which our share was approximately
$231.0&nbsp;million. Approximately $106.4&nbsp;million of this
consolidated debt bore interest at a variable rate, of which our
share was approximately $104.0&nbsp;million. During 2004, our
LIBOR base rate for our variable debt increased from 1.14% at
December&nbsp;31, 2003 to 2.42% at December&nbsp;31, 2004.
Increases in interest rates may impede our operating performance
and put us at a competitive disadvantage. Required repayments of
debt and related interest can adversely affect our operating
performance.
</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 have in the past
borrowed, and may in the future 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>

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    <TD width="6%"></TD>
    <TD width="7%"></TD>
    <TD width="87%"></TD>
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    <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;&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">
    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.
</DIV>

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    <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 secured revolving
credit facility 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
</DIV>

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

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
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<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 and expect to continue to
experience rapid growth. All of our properties have been
acquired since 2000, and the 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. 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. 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 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 had net income of $7,860,000 in 2004, and net losses of
$147,000, $468,000 and $21,275,000 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 2003 public offering. If
we are unable to maintain profitability, the market price of our
common stock could decrease and our business and operations
could be negatively impacted.
</DIV>

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    <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>

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    <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 or may
succeed in acquiring those properties themselves. In addition,
our potential acquisition targets may find our competitors to be
more attractive suitors for a number of reasons, such as, for
example, 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>

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    <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
</DIV>

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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. Further, the
terms of certain of our joint venture agreements provide for
minimum priority cumulative returns for the joint venture
partners. To the extent these specified minimum returns are not
achieved, our equity interest in these joint ventures may be
negatively affected.
</DIV>

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    <TD>
    <B><I>Since substantially all our revenues are derived from
    rental income, failure of tenants to pay rent 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,
decline to extend a lease upon its expiration, become insolvent
or declare bankruptcy. Any leasing delays, failure to make
rental payments when due or tenant bankruptcies could result in
the termination of the tenant&#146;s lease and material losses
to us and may harm our operating results. In addition, 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.
</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 fails
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 generally 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 affirmed by the tenant
in bankruptcy, all pre-bankruptcy balances due under the lease
generally must be paid to us in full. However, if a lease is
disaffirmed by a tenant in bankruptcy, we would have only a
general unsecured claim for damages, which would be paid
normally only to the extent that funds are available and only in
the same percentage as is paid to all other members of the same
class of unsecured claims. It is possible and indeed likely that
we may recover substantially less than the full value of any
unsecured claims we hold, which may harm our financial condition.
</DIV>

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    <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;
We face competition from similar retail centers within the trade
areas of each of our centers that may affect our ability to
renew leases or re-let space as leases expire. In addition, any
new competitive properties that are developed within the 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
</DIV>

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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>

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    <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 some 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>

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    <TD>
    <B><I>For the year ended December&nbsp;31, 2004 Giant Food and
    Stop&nbsp;&#38; Shop represented approximately 10% 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, 2004, eight of our properties had a Giant
Food supermarket as an anchor tenant and one property had a
Stop&nbsp;&#38; Shop supermarket as an anchor tenant. Ahold
N.V., a Netherlands corporation and the ultimate parent company
of Giant Food and Stop&nbsp;&#38; Shop, generally guarantees the
Giant Food leases.
</DIV>

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    <TD>
    <B><I>Development and redevelopment activities may be delayed or
    otherwise may not perform as expected.</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 in the process of developing and redeveloping certain of
our properties and expect to redevelop or develop other
properties in the future. In this connection, 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 develop or redevelop a center. In case of an
unsuccessful project, our loss could exceed our investment in
the project.
</DIV>

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    <TD></TD>
    <TD>
    <B><I>Potential losses may not be covered by insurance.</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 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 war, nuclear accidents and
nuclear, biological and chemical occurrences from terrorist
acts. Some of our policies, such as those covering losses due to
terrorism, floods and earthquakes, are subject to limitations
involving large deductibles or co-payments and policy limits
that may not be sufficient to cover losses. Additionally,
certain tenants have termination rights in respect of certain
casualties. If we receive casualty proceeds, we may not be able
to reinvest such proceeds profitably or at all, and we may be
forced to recognize taxable gain on the affected property. 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>

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    <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
</DIV>

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through damage, destruction, loss or increased security costs,
and the availability of insurance for such acts may be limited
or may cost more. 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.
</DIV>

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    <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 will be subject to increases in real estate and
other tax rates, utility costs, insurance costs, repairs,
maintenance and other operating expenses, and administrative
expenses. Rising operating expenses could reduce our cash flow
and funds available for future distributions. Our properties and
any properties we acquire in the future are and will be subject
to operating risks common to real estate in general, any or all
of which may have a negative affect. 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 to stabilize that property&#146;s
operating expenses.
</DIV>

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    <TD></TD>
    <TD>
    <B><I>We could incur significant costs related to government
    regulation and 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
other contaminants 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 as 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>

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    <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. Our properties are also
subject to various federal, state and local regulatory
requirements, such as state and local fire and life safety
requirements. Although we believe that our properties materially
comply with present requirements of the ADA and other
regulations, 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 any such laws,
then we would be required to incur additional costs to bring the
property into compliance. 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. If we fail to comply with these
various requirements, we might incur governmental fines or
private damage awards. We do not know whether 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>

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    <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
</DIV>

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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>

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    <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>

<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;.
</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-
</DIV>

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<DIV align="left" style="font-size: 10pt;">
term or long-term basis to meet the 90% distribution requirement
of the Code. Certain of our assets generate substantial
differences between taxable income and income recognized in
accordance with generally accepted accounting principles. Such
assets include operating real estate that has been acquired
through structures that may limit or completely eliminate the
depreciation deduction that would otherwise be available for
income tax purposes. As a result, the requirement to distribute
a substantial portion of our net taxable income could cause us
to: (a)&nbsp;distribute amounts that would otherwise be invested
in future acquisitions, capital expenditures or repayment of
debt, (b)&nbsp;borrow on unfavorable terms, (c)&nbsp;sell assets
in adverse market conditions or (d)&nbsp;default in covenants
under our loan agreements.
</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 than
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, whose continued service is not guaranteed. The loss
of services of key personnel could materially and adversely
affect our operations because of diminished relationships with
lenders, sources of equity capital and existing and prospective
tenants.
</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 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
</DIV>

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<DIV align="left" style="font-size: 10pt;">
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="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="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>Authorized and Outstanding</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. 3,550,000&nbsp;shares of
Series&nbsp;A Preferred Stock are issued and outstanding.
</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>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 Series&nbsp;A Preferred Stock bears cumulative cash
dividends at the rate of
8<FONT style="font-size: 70%"><SUP>7</SUP></FONT>/<FONT style="font-size: 60%">8</FONT>%&nbsp;per
annum of the $25.00&nbsp;per share liquidation preference (equal
to $2.21875&nbsp;per annum per share). The Series&nbsp;A
Preferred Stock is redeemable at our option on and after
July&nbsp;28, 2009 at $25.00&nbsp;per share, plus accrued and
unpaid dividends. The Series&nbsp;A Preferred Stock has a
liquidation preference of $25.00&nbsp;per share, plus a premium
of between 1% and 5% if liquidation occurs before July&nbsp;28,
2009. The holders of Series&nbsp;A Preferred Stock generally do
not have any voting rights; however, the affirmative vote of at
least two-thirds is required to create capital shares ranking
senior to the Series&nbsp;A Preferred Stock or to amend our
Articles of Incorporation that materially and adversely affects
their rights. The 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>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;
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 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>

<P align="center" style="font-size: 10pt;">11

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&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;&nbsp;&nbsp;&nbsp;&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;&nbsp;&nbsp;&nbsp;&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;&nbsp;&nbsp;&nbsp;&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;&nbsp;&nbsp;&nbsp;&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;&nbsp;&nbsp;&nbsp;&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;&nbsp;&nbsp;&nbsp;&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;&nbsp;&nbsp;&nbsp;&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;&nbsp;&nbsp;&nbsp;&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="6%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&nbsp; (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>&nbsp; (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>&nbsp; (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>&nbsp; (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>&nbsp; (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;&nbsp;and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD>&nbsp; (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>

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

</TABLE>

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<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>(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;&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;
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 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
</DIV>

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

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<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 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

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<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. The
Registrar and Transfer Agent for the Series&nbsp;A Preferred
Stock is American Stock Transfer&nbsp;&#38; Trust Company.
</DIV>

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<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>

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<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

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<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>

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<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="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 May&nbsp;15, 2005, there were
22,340,981&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 capital shares 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="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>

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<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="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

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<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="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="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

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<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;
Underwriters or agents in any distribution, including a
distribution that takes the form of an at-the-market offering,
may include UBS Securities LLC. To the extent that we make sales
to or through one or more of the named underwriters or agents in
at-the-market offerings, we will do so pursuant to the terms of
a distribution agreement between us and the underwriters or
agents. If we engage in at-the-market sales pursuant to a
distribution agreement, we will issue and sell shares of our
common stock to or through one or more of the named underwriters
or agents, which may act on an agency basis or on a principal
basis. During the term of any such agreement, we may sell shares
on a daily basis in exchange transactions or otherwise as we
agree with the underwriters or agents. The distribution
agreement will provide that any shares of our common stock sold
will be sold at prices related to the then prevailing market
prices for our securities. Therefore, exact figures regarding
proceeds that will be raised or commissions to be paid are
impossible to determine and will be described in a prospectus
supplement. Pursuant to the terms of the distribution agreement,
we also may agree to sell, and the relevant underwriters or
dealers may agree to solicit offers to purchase, blocks of our
common stock. The terms of each such distribution agreement will
be set forth in more detail in a prospectus supplement to this
prospectus. To the extent that any named underwriter or agent
acts as principal pursuant to the terms of a distribution
agreement, or if we offer to sell shares of our common stock
through another broker-dealer acting as underwriter, then such
named underwriter may engage in certain transactions that
stabilize, maintain or otherwise affect the price of our common
stock. We will describe any such activities in the prospectus
supplement relating to the transaction. To the extent that any
named broker dealer or agent acts as agent on a best efforts
basis pursuant to the terms of a distribution agreement, such
broker dealer or agent will not engage in any such stabilization
transactions.
</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>

<P align="center" style="font-size: 10pt;">23

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<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="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, incorporated by reference 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="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;">24
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<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>9,000,000&nbsp;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>Common Stock</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: 77pt; 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 James</B>
</DIV>

<DIV align="center" style="font-size: 16pt;">
<B>Banc of America Securities LLC</B>
</DIV>

<DIV align="center" style="font-size: 16pt;">
<B>Legg Mason Wood Walker</B>
</DIV>

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

<DIV align="center" style="font-size: 16pt;">
<B>UBS Investment Bank</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 5pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>August&nbsp;11, 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>

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<DIV style="width: 100%; border-top: 2.0pt solid black; font-size: 1pt">&nbsp;</DIV>
</DIV>
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