Note 4. Investment in Cedar/RioCan Joint Venture

The Company and RioCan have entered into an 80% (RioCan) and 20% (Cedar) joint venture (i) initially for the purchase of seven supermarket-anchored properties previously owned by the Company (completed in May 2010), and (ii) then to acquire additional primarily supermarket-anchored properties in the Company's primary market areas, in the same joint venture format. At December 31, 2011, the joint venture owned 22 properties.

The Company earned fees from the joint venture of approximately $2.8 million and $3.6 million for 2011 and 2010, respectively, representing accounting fees, management fees, acquisition fees and financing fees. Such fees are included in other revenues in the accompanying statements of operations.

In connection with the formation of the joint venture and the agreement to transfer the seven properties which were reclassified as "held for sale", the Company recorded impairment charges of $2.5 million and $23.6 million in 2010 and 2009, respectively. Such charges were based on a comparison of the arms-length negotiated transfer amounts set forth in the contract with the carrying values of the properties transferred. In 2010, the Company incurred fees to its investment advisor as it relates to the Cedar/RioCan joint venture of $2.7 million. The joint venture agreement provides that, any time after December 10, 2012, either the Company or RioCan may initiate a "buy/sell" arrangement pursuant to which the initiating party can designate a value for all the joint venture's properties (in the aggregate), and the other party may then elect either to sell its proportionate ownership interest in the joint venture based on that value or to purchase the initiating party's ownership interest based on such valuation.

The following summarizes certain financial information related to the Company's investment in the Cedar/RioCan unconsolidated joint venture:


Balance Sheets	December 31,
	2011			2010
Assets:
Real estate, net	$	532,071,000		$	524,447,000
Cash and cash equivalents		12,797,000			5,934,000
Restricted cash		3,689,000			4,464,000
Rent and other receivables		2,419,000			2,074,000
Straight-line rent		2,743,000			1,000,000
Deferred charges, net		12,682,000			13,269,000
Other assets		5,549,000			8,514,000
Total assets	$	571,950,000		$	559,702,000

Liabilities and partners' capital:
Mortgage loans payable	$	317,293,000		$	293,400,000
Due to the Company		1,203,000			6,036,000
Unamortized lease liability		22,182,000			24,573,000
Other liabilities		8,248,000			7,738,000
Total liabilities		348,926,000			331,747,000

Preferred stock		97,000			97,000

Accumulated other comprehensive (loss)		(590,000	)		-

Partners' capital:
RioCan		178,774,000			181,239,000
The Company		44,743,000			46,619,000
Total partners' capital		223,517,000			227,858,000
Total liabilities and partners' capital	$	571,950,000		$	559,702,000

The following table summarizes details of the acquisitions of the joint venture during 2011 and 2010:


						Mortgage
		Acquisition		Purchase		Loans	Int.
Property Description	State	date		price		Payable (a)	rate
2011 Acquisition
Northwoods Crossing	MA	4/15/2011	$	23,450,000	$	14,429,000	5.2	%

2010 Acquisitions
Creekview Plaza	PA	9/29/2010		26,240,000		14,432,000	4.8	%
Cross Keys Place	NJ	10/13/2010		26,336,000		14,600,000	5.1	%
Exeter Commons	PA	8/3/2010		53,000,000		30,000,000	5.3	%
Gettysburg Marketplace	PA	10/21/2010		19,850,000		10,918,000	5.0	%
Marlboro Crossroads	MD	10/21/2010		12,500,000		6,875,000	5.1	%
Monroe Marketplace	PA	9/29/2010		41,990,000		23,095,000	4.8	%
Montville Commons	CT	9/29/2010		18,900,000		10,500,000	5.8	%
New River Valley	VA	9/29/2010		27,970,000		15,163,000	4.8	%
Northland Center	PA	10/21/2010		10,248,000		6,298,000	5.0	%
Pitney Road Plaza	PA	9/29/2010		11,060,000		6,083,000	4.8	%
Sunrise Plaza	NJ	9/29/2010		26,460,000		13,728,000	4.8	%
Town Square Plaza	PA	1/26/2010		18,854,000		11,000,000	5.0	%
Towne Crossings	VA	10/21/2010		19,000,000		10,450,000	5.0	%
York Marketplace	PA	10/21/2010		29,200,000		16,060,000	5.0	%

(a) Mortgage loans payable represents the loan amount on the dates of borrowing and/or assumption.

The joint venture's property-specific mortgage loans payable are collateralized by all of the joint venture's real estate, and bear interest at rates ranging from 4.1% to 6.4% per annum, a weighted average of 5.0% per annum.

In June 2011, the joint venture refinanced a $12.3 million, 7.2% fixed-rate mortgage originally due in June 2011. The new $14.8 million fixed-rate mortgage bears interest at 5.0% per annum, with principal and interest payments based on a 30-year amortization schedule, and matures in July 2021.

In August 2011, the joint venture refinanced a $43.3 million, 4.8% fixed-rate mortgage originally due in November 2011. The new $44.0 million fixed-rate mortgage bears interest at 4.1% per annum, with principal and interest payments based on a 30-year amortization schedule, and matures in August 2016.

Scheduled principal payments on mortgage loans payable at December 31, 2011 are as follows:


2012	4,856,000
2013	5,105,000
2014	34,903,000
2015	101,736,000
2016	55,192,000
Thereafter	115,501,000
	317,293,000


Statements of Operations	Years ended December 31,
	2011			2010			2009

Revenues	$	62,500,000		$	30,194,000		$	282,000
Property operating and other expenses		(6,631,000	)		(2,636,000	)		(57,000	)
Management fees to the Company		(2,006,000	)		(973,000	)		(8,000	)
Realestate taxes		(7,214,000	)		(3,286,000	)		(10,000	)
Acquisition transaction costs (a)		(917,000	)		(7,119,000	)		-
General and administrative		(308,000	)		(622,000	)		-
Depreciation and amortization		(20,616,000	)		(9,523,000	)		(71,000	)
Interest and other non-operating expenses, net		(18,078,000	)		(7,903,000	)		-
Net income (loss)	$	6,730,000		$	(1,868,000	)	$	136,000
RioCan		5,384,000			(1,493,000	)		109,000
The Company		1,346,000			(375,000	)		27,000
	$	6,730,000		$	(1,868,000	)	$	136,000

(a) Includes $0.6 and $2.8 million, respectively, paid to former owners of certain acquired properties representing the values assigned for the post-closing leasing of vacant spaces in excess of the fair value amounts estimated at closing.