SEC Filing - Acadia Realty Trust

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SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): February 17, 2004 ACADIA REALTY TRUST (Exact name of registrant as specified in its charter) Maryland 1-12002 23-2715194 (State or other (Commission (I.R.S. Employer jurisdiction of incorporation) File Number) Identification No.) 1311 Mamaroneck Avenue Suite 260 White Plains, New York 10605 (Address of principal executive offices) (Zip Code) (914) 288-8100 (Registrant's telephone number, including area code) (Former name or former address, if changed since last report)

ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits (c) Exhibits Exhibit Number Description - ------------------- -------------------------------- 99.1 Financial and Operating Reporting Supplement for the Quarter Ended December 31, 2003 99.2 Press release dated February 17, 2004 ITEM 9. Regulation FD Disclosure On February 17, 2004, the Registrant, Acadia Realty Trust, made available supplemental information concerning the ownership, operations and portfolio of the Registrant as of December 31, 2003. A copy of this supplemental information is furnished as Exhibit 99.1 to this report on Form 8-K. The information contained in Item 9. of this report on Form 8-K, including Exhibit 99.1, shall not be deemed "filed" with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Registrant under the Securities Act of 1933, as amended. ITEM 12. Results of Operations and Financial Condition On February 17, 2004, the Registrant announced its consolidated financial results for the quarter and year ended December 31, 2003. A copy of the Registrant's earnings press release is furnished as Exhibit 99.2 to this report on Form 8-K. The information contained in Item 12. of this report on Form 8-K, including Exhibit 99.2, shall not be deemed "filed" with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Registrant under the Securities Act of 1933, as amended. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ACADIA REALTY TRUST (Registrant) Date: February 17, 2004 By: /s/ Michael Nelsen ------------------------------ Name: Michael Nelsen Title: Sr. Vice President and Chief Financial Officer 2

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Table of Contents Page ---- Section I - Overview Important Notes 2 Company Information 3 Portfolio Snapshot 4 Organizational Chart 5 Management Team 6 Section II - Financial Information Market Capitalization 7 Shareholder Information 8 Operating Statements - Consolidated 9 Operating Statements - Joint Venture Activity 11 Operating Statements - Activity by Source 13 Operating Statements - Current v. Historical 15 Net Operating Income - Same Property Performance 16 Funds from Operations ("FFO"), Adjusted FFO ("AFFO") and and Funds Available for Distribution ("FAD") 17 Capital Expenditures 18 Balance Sheets 19 Selected Operating Ratios 20 Debt Analysis - Summary 21 Debt Analysis - Detail 22 Debt Maturity Schedule 24 Unencumbered Properties 25 Page ---- Section III - Joint Venture - Acadia Strategic Opportunity Fund Overview 26 Joint Venture Properties - Detail 27 Kroger/Safeway Locations 28 Top 10 Joint Venture Tenants 29 Section IV - Portfolio Information Properties - Overview 30 Properties by Region - Summary 33 Properties by State - Summary 34 Properties - Detail 35 Leasing Production 38 Top 10 Tenants - Consolidated 39 Anchor Tenant Detail 40 Anchor Lease Expirations - 2003 through 2005 44 Lease Expirations 45 Property Demographics 51 Residential Properties 52 Visit acadiarealty.com for current news as well as additional property details and financial information 1

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Important Notes _______________ SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained in this Supplementary Disclosure constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, which will, among other things, affect demand for rental space, the availability and creditworthiness of prospective tenants, lease rents and the availability of financing; adverse changes in the Company's real estate markets, including, among other things, competition with other companies; risks of real estate development and acquisition; governmental actions and initiatives; and environmental/safety requirements. The Company also refers you to the documents filed by the Company, from time to time, with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" incorporated by reference therein, for a discussion of such risks and uncertainties. PRESENTATION OF FUNDS FROM OPERATIONS The Company considers funds from operations ("FFO") as defined by the National Association of Real Estate Investment Trusts ("NAREIT") to be an appropriate supplemental disclosure of operating performance for an equity REIT due to its widespread acceptance and use within the REIT and analyst communities. FFO is presented to assist investors in analyzing the performance of the Company. It is helpful as it excludes various items included in net income that are not indicative of the operating performance, such as gains (or losses) from sales of property and depreciation and amortization. However, the Company's method of calculating FFO may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. FFO does not represent cash generated from operations as defined by generally accepted accounting principles ("GAAP") and is not indicative of cash available to fund all cash needs, including distributions. It should not be considered as an alternative to net income for the purpose of evaluating the Company's performance or to cash flows as a measure of liquidity. Consistent with the NAREIT definition, the Company defines FFO as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. The Company historically has added back impairments in real estate in calculating FFO, in accordance with prior NAREIT guidance. However, NAREIT, based on discussions with the SEC, has provided revised guidance that provides that impairments should not be added back to net income in calculating FFO. As such, historical FFO has been restated consistent with this revised guidance. 2

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Company Information ___________________ Acadia Realty Trust, headquartered in White Plains, NY, is a fully integrated and self-managed real estate investment trust which specializes in the acquisition, redevelopment and operation of shopping centers which are anchored by grocery and value-oriented retail. Acadia currently owns (or has interests in) and operates 62 properties totaling approximately 9 million square feet, located in the Northeast, Mid-Atlantic and Midwest United States. All of Acadia's assets are held by, and all its operations are conducted through, Acadia Realty Limited Partnership (and its majority-owned subsidiaries) which is currently 96% controlled by Acadia. Corporate Headquarters 1311 Mamaroneck Avenue Investor Relations Jon Grisham Suite 260 Vice President White Plains, NY 10605 (914) 288-8100 jgrisham@acadiarealty.com New York Stock Exchange Symbol AKR Web Site www.acadiarealty.com Analyst Coverage Cobblestone Research, LLC Citigroup - Smith Barney Paul Adornato, CFA - (212) 586-0797 Jonathan Litt - (212) 816-0231 padornato@cobblestoneresearch.com jonathan.litt@citigroup.com Ross Nussbaum - (212)816-1685 RBC Capital Markets ross.nussbaum@citigroup.com Jay Leupp - (415) 633-8588 David Carlisle - (212) 816-1382 jay.leupp@rbccm.com david.s.carlisle@citigroup.com David Ronco - (415) 633-8566 david.ronco@rbccm.com J.P. Morgan Securities, Inc. Michael W. Mueller, CFA (212) 622-6689 Advest, Inc. michael.w.mueller@jpmorgan.com Sheila McGrath - (908) 598-1180 sheila.mcgrath@advest.com 3

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Executive Management Team ------------------------- Kenneth F. Bernstein Chief Executive Officer and Mr. Bernstein is responsible for strategic planning as well President as overseeing all day to day activities of the Company including operati acquisitions and capital markets. Mr. Bernstein served as the Chief Operating Officer of RD Capital, Inc. from 1990 until the merger RD Capital with Mark Centers Trust in August of 1998, forming Acadia Realty Trust. In such capacity, he was responsible for overseei day-to-day operations of RD Capital and its management companies, Acadia Management Company LLC and Sound View Management LLC. Prior to joining RD Capital, Mr. Bernstein was an associate with the New York law firm of Battle Fowler, LLP, from 1986 to 1990. Mr. received his Bachelor of Arts Degree from the University of Vermont and his Juris Doctorate from Boston University School of Law. Joel Braun Senior Vice President, Mr. Braun is responsible for the sourcing and financial Chief Investment Officer analysis of acquisition properties for Acadia. Previously, Mr. Braun was Dir of Acquisitions and Finance for Rosenshein Associates, a regional shopping center developer based in New Rochelle, New York. During this time, Mr. Braun was instrumental in the initiation and formation of Kranzco Realty Trust, a publicly traded REIT. Mr. B holds a Bachelor's in Business Administration from Boston University and a Master's Degree in Planning from John Hopkins University. Joseph Hogan Senior Vice President, Most recently, Mr. Hogan served as Vice President with Kimco Director of Construction Realty Corporation (NYSE:KIM), where he was responsible for business development and management of all retail and commercial construction projects for Kimco, in addition to outside customers and development companies. Prior to joining Kimco, he was with Konover Construction Company, a subsidiary of Konover & Associates located in West Hartford, Connecticut, where he was responsible for construction projects throughout the eastern half of the United States. Robert Masters, Esq. Senior Vice President, Prior to joining Acadia in December 1994, Mr. Masters was General Counsel, General Counsel for API Asset Management for over five Corporate Secretary years, Senior Vice President Deputy General Counsel for European American Bank from 1985 to 1990, and Vice President and Counsel for National Westminster Bank from 1977 to 1985. Mr. Masters received his Bachelor of Arts from the City University of New York and a J.D. from New York University Law School. Mr. Masters is also a member of the New York Bar. Joseph M. Napolitano, Senior Vice President, Mr. Napolitano is responsible for overseeing the company's CPM Director of Operations internal operations. Previously, he held the position of Senior Vice Pre Director of Property Management. Prior to joining Acadia in 1995, Mr. Napolitano was employed by Rosen Associates Management Corp. as a Senior Property Manager overseeing a national portfolio of community shopping centers, and Roebling Management Co. as a Proper Manager responsible for neighborhood and community shopping centers nationally. Mr. Napolitano holds a Bachelor's in Business Administration from Adelphi University, Garden City, NY; and is a Certified Property Manager by the Institute of Property Managemen (IREM). Mr. Napolitano is also a member of the New York State Association of Realtors (NYSAR) International Council of Shopping C (ICSC), Commercial Investment Real Estate Institute (CIREI), and the Building Owners and Managers Institute (BOMI). Michael Nelsen Senior Vice President, Chief Financial Officer Mr. Nelsen oversees all the financial activities and asset management functions. Mr. Nelsen was most recently President of G. Soros Realty, Inc. and Director of Real Estate for Soros Private Funds Management LLC. His responsibilities included asset/portfolio management of real estate operations, financial reporting, financings, asset acquisitions and dispositions. Previously, he was a partner in the public accounting firm of David Berdon & Co. Mr. Nelsen has been a Certified Public Accountant since 1971. Joseph Povinelli Senior Vice President, Mr. Povinelli joined Acadia in 1999 with 19 years of retail Director of Leasing leasing experience. Since 1987 Mr. Povinelli had served as regional rea representative for Vornado Realty Trust, a New Jersey based Real estate investment trust, and was responsible for the day to day leasing activity of approximately 3 million square feet of the strip shopping center portfolio. Prior to this he served as leasing for Net Properties Management, Great Neck, New York, responsible for leasing of the strip shopping center and office building port of the mid-atlantic and southeast regions of the company. Mr. Povinelli received a Bachelor of Science degree in Finance and Econo from C.W. Post College of Long Island Universty. 4

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Total Market Capitalization (including pro-rata share of joint venture debt) Percent of Percent of Total Market (amounts in thousands) Total Equity Capitalization ____________ ______________ Equity Capitalization Total Common Shares Outstanding 95.6% 27,409 1 Common Operating Partnership ("OP") Units 4.0% 1,139 Combined Common Shares and OP Units 28,548 Market Price at December 31, 2003 $ 12.50 Equity Capitalization - Common Shares and OP Units $ 356,850 Preferred OP Units - at cost 2 0.4% 1,580 ------ -------- Total Equity Capitalization 100.0% 358,430 60.9% ------ -------- ------ Debt Capitalization Company's balance sheet 190,444 32.3% Pro-rata share of joint venture debt 40,140 6.8% -------- ------ Total Debt Capitalization 230,584 39.1% -------- ------ Total Market Capitalization $ 589,014 100.0% -------- ------ Weighted Average Outstanding Common Shares and O.P. Units Common Shares O.P. Units Total - ----------------------------------------------------------------------------------------------------------------------- Quarter ended December 31, 2003 - Basic 27,334,649 1,140,217 28,474,866 Quarter ended December 31, 2003 - Diluted 28,551,778 1,140,217 29,691,995 Year ended December 31, 2003 - Basic 26,589,432 1,868,013 28,457,445 Year ended December 31, 2003 - Diluted 27,496,267 1,868,014 29,364,281 - ----------------------------------------------------------------------------------------------------------------------- Quarter ended December 31, 2002 - Basic 25,173,874 3,246,320 28,420,194 Quarter ended December 31, 2002 - Diluted 25,684,405 3,246,320 28,930,725 Year ended December 31, 2002 - Basic 25,320,631 3,677,065 28,997,696 Year ended December 31, 2002 - Diluted 25,806,035 3,677,065 29,483,100 1 As of December 31, 2003, the Company had purchased 1,922,788 shares (net of reissuance of 131,817 shares) under its Stock Repurchase Program. 2 In connection with the acquisition of the Pacesetter Park Shopping Center in 1999, the Company issued 2,212 Preferred OP Units, of which 632 have been converted to Common OP Units to date. The remaining Preferred OP Units are reflected above at their stated cost of $1,000 per unit. 3 Fixed-rate debt includes $86.7 million of notional principal fixed through interest rate swap transactions and conversely, variable-rate debt excludes this amount. 5

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Shareholder Information (amounts in thousands) 10 Largest Institutional/Non-Retail Shareholders 1 Percent of Out- Common standing Common Shareholder Shares Held Shares ___________ ___________ _______________ Yale University 2 8,826 32.2% Stanford University 2,133 7.8% Wellington Management 1,727 6.3% Cliffwood Partners 1,639 6.0% Urdang Investment Management 833 3.0% Clarion CRA Securities 664 2.4% Vanguard Group 652 2.4% The Vanderbilt University 647 2.4% LaSalle Investment Management 479 1.7% First Manhattan 349 1.3% Total of 10 Largest Institutional Shareholders 17,949 65.5% Total of all Institutional Shareholders 21,704 79.2% Operating Partnership Unit Information Percent of Total O.P. Units ------------------- Institutional O.P. Unit Holders - 0.0% Employee/Trustee O.P. Unit Holders 1,066 93.6% Other O.P. Unit Holders 73 6.4% ------------ ----- Total O.P. Units 1,139 100.0% ------------ ----- Management and Trustee Ownership Common Shares (not including options) 250 O.P. Units (see above) 1,066 ------------ 1,316 ------------ 1 Based on Schedule 13F filings with the U.S. Securities and Exchange Commission 2 The Company and Yale University have established a voting trust whereby all shares that Yale University owns in excess of 30% of the Company's outstanding Common Shares, will be voted in the same proportion (excluding Yale) as all other shares voted. 6

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Statements of Operations - Consolidated 1 Current Quarter and Year-to-Date (in thousands) Year-to-Date Current Quarter Year 3 months ended December 31, ended December 31, 2003 2003 ------------------------------- ---------------------------------- Wholly JV's 2 Total Wholly JV's 2 Total Owned Owned -------- -------- -------- --------- -------- --------- PROPERTY REVENUES Minimum rents $ 49,297 $ 7,261 $ 56,558 $ 12,613 $ 1,683 $ 14,296 Percentage rents 1,012 41 1,053 467 23 490 Expense reimbursements 13,539 2,097 15,636 3,914 629 4,543 Other property income 749 45 794 268 5 273 64,597 9,444 74,041 17,262 2,340 19,602 PROPERTY EXPENSES Property operating 14,605 1,403 16,008 4,218 451 4,669 Real estate taxes 8,799 895 9,694 2,502 234 2,736 23,404 2,298 25,702 6,720 685 7,405 NET OPERATING INCOME - PROPERTIES 41,193 7,146 48,339 10,542 1,655 12,197 OTHER INCOME (EXPENSE) General and administrative (10,435) (14) (10,449) (2,593) (13) (2,606) Option-based compensation expense ("Cashless" exercise) (1,049) - (1,049) (960) - (960) Abandoned project costs - - - - - - Lease termination income - - - - - - Interest income 804 21 825 147 - 147 Asset and property management income 1,955 - 1,955 537 - 537 Property management expense (267) - (267) (62) - (62) Straight-line rent income 871 (57) 814 205 206 411 Straight-line rents written off (298) - (298) (190) - (190) Other income 3 1,218 - 1,218 - - - EBIDTA 33,992 7,096 41,088 7,626 1,848 9,474 Depreciation and amortization 4 (17,909) (2,161) (20,070) (6,632) (565) (7,197) Interest expense (11,231) (2,524) (13,755) (2,818) (649) (3,467) Impairment of real estate - - - - - - Gain on sale of properties 1,187 - 1,187 - - - Income before minority interest 6,039 2,411 8,450 (1,824) 634 (1,190) Minority interest (1,163) (154) (1,317) 18 (25) (7) NET INCOME $ 4,876 $ 2,257 $ 7,133 $ (1,806) $ 609 $ (1,197) 7

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Statements of Operations - Consolidated 1 - ----------------------------------------- Current Quarter and Year-to-Date - ------------------------------------ (in thousands) ---------------------------------------------------------------------------------------- Previous Quarters 3 months 3 months 3 months ended September 30, ended June 30, ended March 31, 2003 2003 2003 ---------------------------------------------------------------------------------------- Wholly JV's 2 Total Wholly JV's 2 Total Wholly JV's 2 Total Owned Owned Owned --------------------------- ---------------------------- ----------------------------- PROPERTY REVENUES Minimum rents $12,439 $1,765 $14,204 $12,389 $2,093 $14,482 $11,856 $1,720 $13,576 Percentage rents 156 17 173 95 (11) 84 294 12 306 Expense reimbursements 3,012 490 3,502 2,896 455 3,351 3,717 523 4,240 Other property income 169 10 179 161 12 173 151 18 169 --------------------------- ---------------------------- ----------------------------- 15,776 2,282 18,058 15,541 2,549 18,090 16,018 2,273 18,291 --------------------------- ---------------------------- ----------------------------- PROPERTY EXPENSES Property operating 2,791 299 3,090 3,330 292 3,622 4,266 361 4,627 Real estate taxes 2,288 231 2,519 1,812 227 2,039 2,197 203 2,400 --------------------------- ---------------------------- ----------------------------- 5,079 530 5,609 5,142 519 5,661 6,463 564 7,027 --------------------------- ---------------------------- ----------------------------- NET OPERATING INCOME - PROPERTIES 10,697 1,752 12,449 10,399 2,030 12,429 9,555 1,709 11,264 OTHER INCOME (EXPENSE) General and administrative (2,704) - (2,704) (2,442) (1) (2,443) (2,696) - (2,696) Option-based compensation expense ("Cashless" exercise) (82) - (82) (7) - (7) - - - Abandoned project costs - - - - - - - - - Lease termination income - - - - - - - - - Interest income 243 1 244 164 - 164 250 20 270 Asset and property management income 489 - 489 531 - 531 398 - 398 Property management expense (58) - (58) (59) - (59) (88) - (88) Straight-line rent income 196 96 292 229 (221) 8 241 (138) 103 Straight-line rents written off (108) - (108) - - - - - - Other income 3 - - - - - - 1,218 - 1,218 --------------------------- ---------------------------- ----------------------------- EBIDTA 8,673 1,849 10,522 8,815 1,808 10,623 8,878 1,591 10,469 Depreciation and amortization 4 (3,788) (561) (4,349) (3,888) (565) (4,453) (3,601) (470) (4,071) Interest expense (2,882) (659) (3,541) (2,805) (648) (3,453) (2,726) (568) (3,294) Impairment of real estate - - - - - - - - - Gain on sale of properties (25) - (25) - - - 1,212 - 1,212 --------------------------- ---------------------------- ----------------------------- Income before minority interest 1,978 629 2,607 2,122 595 2,717 3,763 553 4,316 Minority interest (156) (27) (183) (231) (43) (274) (794) (59) (853) --------------------------- ---------------------------- ----------------------------- NET INCOME $1,822 $602 $2,424 $1,891 $552 $2,443 $2,969 $494 $3,463 =========================== ============================ ============================= 1 Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The Company's equity in the earnings of unconsolidated partnerships is reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items. In total, this agrees with the equity in earnings of unconsolidated partnerships as reported in the Company's Form 10Q's and 10K for the corresponding periods. 2 The Company currently invests in two JV's. The first is a 22% interest in Acadia Strategic Opportunity Fund ("Acadia Acquisition"). The second JV is a 49% interest in a 311,000 square foot shopping center located in White Plains, NY. See "Statement of Operations - Joint Venture Activity" for additional detail. 3 This represents a lump sum additional rent payment received from a tenant in connection with the re-anchoring of the Branch Plaza in Smithtown, NY. 4 Includes the write-off of $2,772 of unamortized tenant improvement costs related to the replacement of GU Markets with a Super Stop and Shop supermarket at the Townline Plaza redevelopment project. 8

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Statements of Operations - Joint Venture Activity 1 - ------------------------------------------------------ Current Quarter and Year-to-Date ------------------------------------ (in thousands) ---------------------------------------------- ---------------------------------------------- Year-to-Date Current Quarter Year 3 months ended December 31, ended December 31, 2003 2003 ---------------------------------------------- ---------------------------------------------- Acadia Pro-rata Pro-rata Pro-rata Acadia Pro-rata Pro-rata Pro-rata Acquisition share Crossroads share Total Acquisition share Crossroads share Total ---------------------------------------------- ---------------------------------------------- PROPERTY REVENUES Minimum rents $20,563 $4,571 $5,490 $2,690 $7,261 $4,512 $1,003 $1,388 $680 $1,683 Percentage rents 149 33 17 8 41 103 23 - - 23 Expense reimbursements 3,510 780 2,687 1,317 2,097 1,075 239 795 390 629 Other property income 102 23 47 22 45 21 5 1 - 5 ---------------------------------------------- ---------------------------------------------- 24,324 5,407 8,241 4,037 9,444 5,711 1,270 2,184 1,070 2,340 ---------------------------------------------- ---------------------------------------------- PROPERTY EXPENSES Property operating 3,944 876 1,075 527 1,403 1,371 305 297 146 451 Real estate taxes 987 219 1,381 676 895 280 62 352 172 234 ---------------------------------------------- ---------------------------------------------- 4,931 1,095 2,456 1,203 2,298 1,651 367 649 318 685 ---------------------------------------------- ---------------------------------------------- NET OPERATING INCOME - PROPERTIES 19,393 4,312 5,785 2,834 7,146 4,060 903 1,535 752 1,655 OTHER INCOME (EXPENSE) General and administrative (68) (14) - - (14) (60) (13) - - (13) Option-based compensation expense ("Cashless" exercise) - - - - - - - - - - Abandoned project costs - - - - - - - - - - Lease termination income - - - - - - - - - - Interest income 95 21 - - 21 2 - - - - Asset and property management income - - - - - - - - - - Asset and property management expense 2 (2,170) - - - - (564) - - - - Straight-line rent income (418) (93) 74 36 (57) 895 199 14 7 206 Straight-line rents written off - - - - - - - - - - Other income - - - - - - - - - - ---------------------------------------------- ---------------------------------------------- EBIDTA 16,832 4,226 5,859 2,870 7,096 4,333 1,089 1,549 759 1,848 Depreciation and amortization 3 (6,696) (1,489) (570) (672) (2,161) (1,778) (395) (146) (170) (565) Interest expense 3 (5,927) (1,311) (2,593) (1,213) (2,524) (1,584) (346) (653) (303) (649) Impairment of real estate - - - - - - - - - - Gain on sale of properties - - - - - - - - - - ---------------------------------------------- ---------------------------------------------- Income before minority interest 4,209 1,426 2,696 985 2,411 971 348 750 286 634 Minority interest - (92) - (62) (154) - (14) - (11) (25) ---------------------------------------------- ---------------------------------------------- NET INCOME $4,209 $1,334 $2,696 $923 $2,257 $971 $334 $750 $275 $609 ============================================== ============================================== 9

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Statements of Operations - Joint Venture Activity 1 ------------------------------------------------------------ Current Quarter and Year-to-Date ----------------------------------------- (in thousands) ---------------------------------------------------------------------------------------------- Previous Quarters 3 months 3 months ended September 30, ended June 30, 2003 2003 ---------------------------------------------------------------------------------------------- Acadia Pro-rata Pro-rata Pro-rata Acadia Pro-rata Pro-rataPro-rata Acquisition share Crossroads share Total Acquisition share Crossroads share Total ----------------------------------------------- --------------------------------------------- PROPERTY REVENUES Minimum rents $4,944 $1,099 $1,360 $666 $1,765 $6,372 $1,416 $1,381 $677 $2,093 Percentage rents 41 9 17 8 17 - - (22) (11) (11) Expense reimbursements 797 177 639 313 490 662 147 628 308 455 Other property income 12 3 14 7 10 24 5 15 7 12 ----------------------------------------------- --------------------------------------------- 5,794 1,288 2,030 994 2,282 7,058 1,568 2,002 981 2,549 ----------------------------------------------- --------------------------------------------- PROPERTY EXPENSES Property operating 767 170 264 129 299 856 190 208 102 292 Real estate taxes 264 59 351 172 231 248 55 351 172 227 ----------------------------------------------- --------------------------------------------- 1,031 229 615 301 530 1,104 245 559 274 519 ----------------------------------------------- --------------------------------------------- NET OPERATING INCOME - PROPERTIES 4,763 1,059 1,415 693 1,752 5,954 1,323 1,443 707 2,030 OTHER INCOME (EXPENSE) General and administrative (1) - - - - (6) (1) - - (1) Option-based compensation expense ("Cashless" exercise) - - - - - - - - - - Abandoned project costs - - - - - - - - - - Lease termination income - - - - - - - - - - Interest income 3 1 - - 1 2 - - - - Asset and property management income - - - - - - - - - - Asset and property management expense 2 (562) - - - - (602) - - - - Straight-line rent income 432 96 - - 96 (1,116) (248) 55 27 (221) Straight-line rents written off - - - - - - - - - - Other income - - - - - - - - - - ----------------------------------------------- --------------------------------------------- EBIDTA 4,635 1,156 1,415 693 1,849 4,232 1,074 1,498 734 1,808 Depreciation and amortization 3 (1,771) (394) (140) (167) (561) (1,781) (396) (145) (169) (565) Interest expense 3 (1,584) (352) (654) (307) (659) (1,554) (345) (647) (303) (648) Impairment of real estate - - - - - - - - - - Gain on sale of properties - - - - - - - - - - ----------------------------------------------- --------------------------------------------- Income before minority interest 1,280 410 621 219 629 897 333 706 262 595 Minority interest - (18) - (9) (27) - (24) - (19) (43) ----------------------------------------------- --------------------------------------------- NET INCOME $1,280 $392 $621 $210 $602 $897 $309 $706 $243 $552 =============================================== ============================================= 3 months ended March 31, 2003 -------------------------------------------------------- Acadia Pro-rata Pro-rata Pro-rata Acquisition share Crossroads share Total -------------------------------------------------------- PROPERTY REVENUES Minimum rents $4,735 $1,053 $1,361 $667 $1,720 Percentage rents 5 1 22 11 12 Expense reimbursements 976 217 625 306 523 Other property income 45 10 17 8 18 -------------------------------------------------------- 5,761 1,281 2,025 992 2,273 -------------------------------------------------------- PROPERTY EXPENSES Property operating 950 211 306 150 361 Real estate taxes 195 43 327 160 203 -------------------------------------------------------- 1,145 254 633 310 564 -------------------------------------------------------- NET OPERATING INCOME - PROPERTIES 4,616 1,027 1,392 682 1,709 OTHER INCOME (EXPENSE) General and administrative (1) - - - - Option-based compensation expense ("Cashless" exercise) - - - - - Abandoned project costs - - - - - Lease termination income - - - - - Interest income 88 20 - - 20 Asset and property management income - - - - - Asset and property management expense 2 (442) - - - - Straight-line rent income (629) (140) 5 2 (138) Straight-line rents written off - - - - - Other income - - - - - -------------------------------------------------------- EBIDTA 3,632 907 1,397 684 1,591 Depreciation and amortization 3 (1,366) (304) (139) (166) (470) Interest expense 3 (1,205) (268) (639) (300) (568) Impairment of real estate - - - - - Gain on sale of properties - - - - - -------------------------------------------------------- Income before minority interest 1,061 335 619 218 553 Minority interest - (36) - (23) (59) -------------------------------------------------------- NET INCOME $1,061 $299 $619 $195 $494 ======================================================== 1 Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The Company's equity in the earnings of unconsolidated partnerships is reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items. In total, this agrees with the equity in earnings of unconsolidated partnerships as reported in the Company's Form 10Q's and 10K for the corresponding periods. The Company currently invests in two JV's. The first is a 22% interest in Acadia Strategic Opportunity Fund ("Acadia Acquisition"), which owns, or has an ownership interest in 30 properties totalling approximately 2,044,000 square feet. The second JV investment is a 49% interest in a 311,000 square foot shopping center located in White Plains, NY ("Crossroads"). 2 Acadia Acquisition pays asset management and property management fees to Acadia Realty L.P. As such, the Company does not recognize a pro-rata share of these expenses in its consolidated financial statements. 3 The Company has obtained two interest rate swaps, effectively fixing the interest rate on its pro-rata portion of the mortgage debt from its investment in Crossroads. Acadia's pro-rata share of its interest expense has been adjusted for the effect of these swaps. In addition to its pro-rata share of depreciation, the Company recognizes depreciation on its increased basis in Crossroads. 10

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Statements of Operations - Activity by Source (1) --------------------------------------------------------- (in thousands) -------------------------------------- -------------------------------------- Year-to-Date Current Quarter Year 3 months ended December 31, ended December 31, 2003 2003 -------------------------------------- -------------------------------------- Multi- Multi- Retail Family Corporate Total Retail Family Corporate Total -------------------------------------- -------------------------------------- PROPERTY REVENUES Minimum rents $49,655 $6,903 $- $56,558 $12,499 $1,797 $- $14,296 Percentage rents 1,053 - - 1,053 490 - - 490 Expense reimbursements 15,636 - - 15,636 4,543 - - 4,543 Other property income 379 415 - 794 182 91 - 273 -------------------------------------- -------------------------------------- 66,723 7,318 - 74,041 17,714 1,888 - 19,602 -------------------------------------- -------------------------------------- PROPERTY EXPENSES Property operating 12,328 3,680 - 16,008 3,681 988 - 4,669 Real estate taxes 9,372 322 - 9,694 2,651 85 - 2,736 -------------------------------------- -------------------------------------- 21,700 4,002 - 25,702 6,332 1,073 - 7,405 -------------------------------------- -------------------------------------- NET OPERATING INCOME - PROPERTIES 45,023 3,316 - 48,339 11,382 815 - 12,197 OTHER INCOME (EXPENSE) General and administrative - - (10,449) (10,449) - - (2,606) (2,606) Option-based compensation expense ("Cashless" exercise) - - (1,049) (1,049) - - (960) (960) Abandoned project costs - - - - - - - - Lease termination income - - - - - - - - Interest income - - 825 825 - - 147 147 Asset and property management income - - 1,955 1,955 - - 537 537 Other property management fees (82) (185) - (267) (20) (42) - (62) Straight-line rent income 814 - - 814 411 - - 411 Straight-line rents written off (298) - - (298) (190) - - (190) Other income 1,218 - - 1,218 - - - - -------------------------------------- -------------------------------------- EBIDTA 46,675 3,131 (8,718) 41,088 11,583 773 (2,882) 9,474 Depreciation and amortization (18,413) (1,336) (321) (20,070) (6,763) (348) (86) (7,197) Interest expense (12,225) (1,530) - (13,755) (3,086) (381) - (3,467) Impairment of real estate - - - - - - - - Gain on sale of properties 1,187 - - 1,187 - - - - -------------------------------------- -------------------------------------- Income before minority interest 17,224 265 (9,039) 8,450 1,734 44 (2,968) (1,190) Minority interest (1,863) (24) 570 (1,317) (124) (2) 119 (7) -------------------------------------- -------------------------------------- NET INCOME $15,361 $241 $(8,469) $7,133 $1,610 $42 $(2,849) $(1,197) ====================================== ====================================== -------------------------------------- -------------------------------------- Previous Quarters 3 months 3 months ended September 30, ended June 30, 2003 2003 -------------------------------------- -------------------------------------- Retail Multi- Corporate Total Retail Multi- Corporate Total Family Family -------------------------------------- -------------------------------------- PROPERTY REVENUES Minimum rents $12,480 $1,724 $- $14,204 $12,783 $1,699 $- $14,482 Percentage rents 173 - - 173 84 - - 84 Expense reimbursements 3,502 - - 3,502 3,351 - - 3,351 Other property income 61 118 - 179 85 88 - 173 -------------------------------------- -------------------------------------- 16,216 1,842 - 18,058 16,303 1,787 - 18,090 -------------------------------------- -------------------------------------- PROPERTY EXPENSES Property operating 2,097 993 - 3,090 2,683 939 - 3,622 Real estate taxes 2,440 79 - 2,519 1,957 82 - 2,039 -------------------------------------- -------------------------------------- 4,537 1,072 - 5,609 4,640 1,021 - 5,661 -------------------------------------- -------------------------------------- NET OPERATING INCOME - PROPERTIES 11,679 770 - 12,449 11,663 766 - 12,429 OTHER INCOME (EXPENSE) General and administrative - - (2,704) (2,704) - - (2,443) (2,443) Option-based compensation expense ("Cashless" exercise) - - (82) (82) - - (7) (7) Abandoned project costs - - - - - - - - Lease termination income - - - - - - - - Interest income - - 244 244 - - 164 164 Asset and property management income - - 489 489 - - 531 531 Other property management fees (20) (38) - (58) (21) (38) - (59) Straight-line rent income 292 - - 292 8 - - 8 Straight-line rents written off (108) - - (108) - - - - Other income - - - - - - - - -------------------------------------- -------------------------------------- EBIDTA 11,843 732 (2,053) 10,522 11,650 728 (1,755) 10,623 Depreciation and amortization (3,922) (339) (88) (4,349) (4,049) (328) (76) (4,453) Interest expense (3,159) (382) - (3,541) (3,070) (383) - (3,453) Impairment of real estate - - - - - - - - Gain on sale of properties (25) - - (25) - - - - -------------------------------------- -------------------------------------- Income before minority interest 4,737 11 (2,141) 2,607 4,531 17 (1,831) 2,717 Minority interest (275) - 92 (183) (406) (1) 133 (274) -------------------------------------- -------------------------------------- NET INCOME $4,462 $11 $(2,049) $2,424 $4,125 $16 $(1,698) $2,443 ====================================== ====================================== 11

-------------------------------------- Previous Quarters 3 months ended March 31, 2003 -------------------------------------- Multi- Retail Family Corporate Total -------------------------------------- PROPERTY REVENUES Minimum rents $11,893 $1,683 $- $13,576 Percentage rents 306 - - 306 Expense reimbursements 4,240 - - 4,240 Other property income 51 118 - 169 -------------------------------------- 16,490 1,801 - 18,291 -------------------------------------- PROPERTY EXPENSES Property operating 3,867 760 - 4,627 Real estate taxes 2,324 76 - 2,400 -------------------------------------- 6,191 836 - 7,027 -------------------------------------- NET OPERATING INCOME - PROPERTIES 10,299 965 - 11,264 OTHER INCOME (EXPENSE) General and administrative - - (2,696) (2,696) Option-based compensation expense ("Cashless" exercise) - - - - Abandoned project costs - - - - Lease termination income - - - - Interest income - - 270 270 Asset and property management income - - 398 398 Other property management fees (21) (67) - (88) Straight-line rent income 103 - - 103 Straight-line rents written off - - - - Other income 1,218 - - 1,218 -------------------------------------- EBIDTA 11,599 898 (2,028) 10,469 Depreciation and amortization (3,679) (321) (71) (4,071) Interest expense (2,910) (384) - (3,294) Impairment of real estate - - - - Gain on sale of properties 1,212 - - 1,212 -------------------------------------- Income before minority interest 6,222 193 (2,099) 4,316 Minority interest (1,058) (21) 226 (853) -------------------------------------- NET INCOME $5,164 $172 $(1,873) $3,463 ====================================== (1) Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The Company's equity in the earnings of unconsolidated partnerships is reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items. In total, this agrees with the equity in earnings of unconsolidated partnerships as reported in the Company's Form 10Q's and 10K for the corresponding periods. 12

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Statements of Operations - Current v. Historical 1 ----------------------------------------------------- (in thousands) ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- Current Quarter Historical Quarter 3 months 3 months ended December 31, ended December 31, 2003 2002 ------------------------------------------------- --------------------------------------------- Wholly Owned JV's (2) Discontinued Total Wholly Owned JV's Discontinued Total Operations Operations (3) (3) ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- PROPERTY REVENUES Minimum rents $12,613 $1,683 $- $14,296 $12,116 $845 $52 $13,013 Percentage rents 467 23 - 490 477 10 113 600 Expense reimbursements 3,914 629 - 4,543 3,358 309 48 3,715 Other property income 268 5 - 273 83 15 (5) 93 ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- 17,262 2,340 - 19,602 16,034 1,179 208 17,421 ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- PROPERTY EXPENSES Property operating 4,218 451 - 4,669 4,008 159 31 4,198 Real estate taxes 2,502 234 - 2,736 2,166 180 9 2,355 ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- 6,720 685 - 7,405 6,174 339 40 6,553 ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- NET OPERATING INCOME - PROPERTIES 10,542 1,655 - 12,197 9,860 840 168 10,868 OTHER INCOME (EXPENSE) General and administrative (2,593) (13) - (2,606) (2,604) (14) - (2,618) Option-based compensation expense ("Cashless" exercise) (960) - (960) (282) - - (282) Abandoned project costs - - - - - - - - Lease termination income - - - - - - - - Interest income 147 - - 147 610 - 2 612 Asset and property management income 537 - - 537 357 - - 357 Property management expense (62) - - (62) (53) - - (53) Straight-line rent income (4) 205 206 - 411 476 4 2 482 Straight-line rents written off (190) - - (190) - - - - Other income (5) - - - - 113 - - 113 ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- EBIDTA 7,626 1,848 - 9,474 8,477 830 172 9,479 Depreciation and amortization (6) (6,632) (565) - (7,197) (3,845) (196) (18) (4,059) Interest expense (2,818) (649) - (3,467) (2,810) (331) (3) (3,144) Impairment of real estate - - - - - - - - Gain on sale of properties - - - - - - 6,349 6,349 ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- Income before minority interest (1,824) 634 - (1,190) 1,822 303 6,500 8,625 Minority interest 18 (25) - (7) (619) (34) (742) (1,395) ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- NET INCOME $(1,806) $609 $- $(1,197) $1,203 $269 $5,758 $7,230 ============= ========== ============ =========== ============= ======= ============= ========= ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- Current Year-to-Date Historical Year-to-Date Year Year ended December 31, ended December 31, 2003 2002 ------------------------------------------------- --------------------------------------------- Wholly Owned JV's (2) Discontinued Total Wholly Owned JV's Discontinued Total Operations Operations (3) (3) ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- PROPERTY REVENUES Minimum rents $49,297 $7,261 $- $56,558 $47,359 $2,710 $4,503 $54,572 Percentage rents 1,012 41 - 1,053 1,079 77 418 1,574 Expense reimbursements 13,539 2,097 - 15,636 11,419 993 1,145 13,557 Other property income 749 45 - 794 536 37 210 783 ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- 64,597 9,444 - 74,041 60,393 3,817 6,276 70,486 ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- PROPERTY EXPENSES Property operating 14,605 1,403 - 16,008 12,001 486 1,145 13,632 Real estate taxes 8,799 895 - 9,694 8,447 654 843 9,944 ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- 23,404 2,298 - 25,702 20,448 1,140 1,988 23,576 ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- NET OPERATING INCOME - PROPERTIES 41,193 7,146 - 48,339 39,945 2,677 4,288 46,910 OTHER INCOME (EXPENSE) General and administrative (10,435) (14) - (10,449) (9,891) (17) - (9,908) Option-based compensation expense ("Cashless" exercise) (1,049) - - (1,049) (282) - - (282) Abandoned project costs - - - - (274) - - (274) Lease termination income - - - - 3,945 - - 3,945 Interest income 804 21 - 825 2,062 - 25 2,087 Asset and property management income 1,955 - - 1,955 1,314 - - 1,314 Property management expense (267) - - (267) (173) - - (173) Straight-line rent income (4) 871 (57) - 814 1,129 (42) (6) 1,081 Straight-line rents written off (298) - - (298) (100) - - (100) Other income (5) 1,218 - - 1,218 504 - - 504 ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- EBIDTA 33,992 7,096 - 41,088 38,179 2,618 4,307 45,104 Depreciation and amortization (6) (17,909) (2,161) - (20,070) (14,804) (696) (1,624) (17,124) Interest expense (11,231) (2,524) - (13,755) (11,017) (1,294) (1,518) (13,829) Impairment of real estate - - - - - - (197) (197) Gain on sale of properties 1,187 - - 1,187 1,530 - 8,132 9,662 ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- Income before minority interest 6,039 2,411 - 8,450 13,888 628 9,100 23,616 Minority interest (1,163) (154) - (1,317) (2,922) (77) (1,218) (4,217) ------------- ---------- ------------ ----------- ------------- ------- ------------- --------- NET INCOME $4,876 $2,257 $- $7,133 $10,966 $551 $7,882 $19,399 ============= ========== ============ =========== ============= ======= ============= ========= (1) Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The Company's equity in the earnings of unconsolidated partnerships is reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items. In total, this agrees with the equity in earnings of unconsolidated partnerships as reported in the Company's Form 10Q's and 10K for the corresponding periods. (2) The Company currently invests in two JV's. The first is a 22% interest in Acadia Strategic Opportunity Fund ("Acadia Acquisition"). The second JV is a 49% interest in a 311,000 square foot shopping center located in White Plains, NY. See "Statement of Operations - Joint Venture Activity" for additional detail. (3) Discontinued operations represent the activity related to all properties sold since January 1, 2002. All of these properties were sold prior to January 1, 2003. (4) Straight-line rent income for the quarter and year ended December 31, 2002 includes an adjustment of $288 related to an anchor lease. Current straight-line rent for this lease on an annual basis is approximately $72. (5) The 2003 activity represents a lump sum additional rent payment received from a tenant in connection with the re-anchoring of the Branch Plaza in Smithtown, NY. (6) Includes the write-off of $2,772 of unamortized tenant improvement costs related to the replacement of GU Markets with a Super Stop and Shop supermarket at the Townline Plaza redevelopment project. 13

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Net Operating Income (NOI) - Same Property Performance (1) --------------------------------------------------------------------- (in thousands) Growth in Same Property NOI - Continuing Operations Current Quarter Historical Quarter Favorable (unfavorable) ----------------- ------------------- ----------------------- Reconciliation of total NOI to same property NOI: 3 months ended 3 months ended December 31, December 31, 2003 2002 ----------------- ------------------- NOI - Wholly owned properties $10,542 $10,028 NOI - Joint Ventures (Unconsolidated partnerships) 1,655 840 ----------------- ------------------- Total NOI 12,197 10,868 NOI - Properties Acquired (758) - NOI - Redevelopment Properties (1,156) (623) NOI - Properties Sold / Held for sale ("Discontinued Operations") - (168) ----------------- ------------------- $10,283 $10,077 2.0% ================= =================== ======================= Same property NOI by portfolio component and revenues/expenses: Shopping Center Portfolio Revenues $15,025 $14,611 2.8% Expenses 5,556 5,292 -5.0% ----------------- ------------------- ----------------------- 9,469 9,319 1.6% ----------------- ------------------- ----------------------- Residential Properties (2 properties) Revenues 1,887 1,769 6.7% Expenses 1,073 1,011 -6.1% ----------------- ------------------- ----------------------- 814 758 7.4% ----------------- ------------------- ----------------------- $10,283 $10,077 2.0% ================= =================== ======================= Growth in Same Property NOI - Continuing Operations Current Year Historical Year Favorable (unfavorable) Notes ----------------- ------------------- ----------------------- ---------- Reconciliation of total NOI to same property NOI: Year ended Year ended December 31, December 31, 2003 2002 ----------------- ------------------- NOI - Wholly owned properties $41,193 $44,233 NOI - Joint Ventures (Unconsolidated partnerships) 7,146 2,677 ----------------- ------------------- Total NOI 48,339 46,910 NOI - Properties Acquired (4,351) (195) NOI - Redevelopment Properties (4,430) (1,909) NOI - Properties Sold / Held for sale ("Discontinued Operations") - (4,285) ----------------- ------------------- $39,558 $40,521 -2.4% (2) ================= =================== ======================= Same property NOI by portfolio component and revenues/expenses: Shopping Center Portfolio Revenues $55,801 $54,510 2.4% Expenses 19,549 17,338 -12.8% ----------------- ------------------- ----------------------- 36,252 37,172 -2.5% ----------------- ------------------- ----------------------- Residential Properties (2 properties) Revenues 7,309 6,955 5.1% Expenses 4,003 3,606 -11.0% ----------------- ------------------- ----------------------- 3,306 3,349 -1.3% ----------------- ------------------- ----------------------- $39,558 $40,521 -2.4% ================= =================== ======================= (1) The above amounts includes the pro-rata activity related to the Company's joint ventures. (2) Excluding the effect of the Ames bankruptcy (4 locations) or the loss of $1,631 of revenues from this tenant in 2002, year-over-year same store NOI growth would have been 1.8% for the combined portfolio and 1.6% for the retail portfolio. 14

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Funds from Operations ("FFO")( 1) ---------------------------------- (in thousands) 2003 2002 ------------------------------------------------------ ---------------------- ------------ ----------- Current Current Previous Quarters Historic Historic Year-to-Date Quarter Year-to- Quarter Date 3 months 3 months 3 months 3 months Year 3 months Year ended ended ended ended ended ended ended December 31, December September June 30, March 31, December December 31, Funds from operations ("FFO"): Notes 2003 31, 2003 30, 2003 2003 2003 31, 2002 2002 - ----------------------------------- ------------ ----------- --------- --------- --------- --------- ------------ Net Income $7,133 $(1,197) $2,424 $2,443 $3,463 $19,399 $7,230 Add back: Depreciation of real estate and amortization of leasing costs: Wholly owned and consolidated subsidiaries 16,957 6,416 3,571 3,571 3,399 15,305 3,625 Unconsolidated subsidiaries 2,107 550 547 551 459 662 183 Income attributable to Operating Partnership units (2) 717 (41) 117 203 438 2,928 948 Gain on sale of properties (3) - - - - - (8,132) (6,349) ------------ ----------- --------- --------- --------- --------- ------------ 26,914 5,728 6,659 6,768 7,759 30,162 5,637 Less: FFO related to discontinued operations (4) - - - - - (2,743) (168) ------------ ----------- --------- --------- --------- --------- ------------ FFO - Basic - Continuing Operations (6) 26,914 5,728 6,659 6,768 7,759 $27,419 $5,469 ========= ============ Distributions on Preferred OP Units 186 36 50 50 50 ------------ ----------- --------- --------- --------- FFO - Diluted - Continuing Operations $27,100 $5,764 $6,709 $6,818 $7,809 ============ =========== ========= ========= ========= Adjusted Funds from operations ("AFFO"): - ------------------------------------- Diluted FFO $27,100 $5,764 $6,709 $6,818 $7,809 Straight line rent, net (516) (221) (184) (8) (103) Non real-estate depreciation 321 86 88 76 71 Amortization of finance costs 685 154 143 246 142 Tenant improvements (1,201) (521) (174) (160) (346) Leasing commissions (93) (39) - (9) (45) Capital expenditures (4,006) (1,053) (1,325) (882) (746) ------------ ----------- --------- --------- --------- AFFO $22,290 $4,170 $5,257 $6,081 $6,782 ============ =========== ========= ========= ========= Funds Available for Distribution ("FAD") - --------------------------------------- AFFO $22,290 $4,170 $5,257 $6,081 $6,782 Scheduled prinicpal repayments (4,894) (1,248) (1,236) (1,185) (1,225) ------------ ----------- --------- --------- --------- FAD $17,396 $2,922 $4,021 $4,896 $5,557 ============ =========== ========= ========= ========= Total weighted average shares and OP Units: Basic 28,457 28,475 28,463 28,456 28,436 28,998 28,420 ============ =========== ========= ========= ========= ========= ============ Diluted 29,364 29,692 29,528 29,244 28,993 29,483 28,931 ============ =========== ========= ========= ========= ========= ============ FFO per share: FFO per share - Basic FFO per share (5,6) $0.95 $0.20 $0.23 $0.24 $0.27 $1.04 $0.20 ============ =========== ========= ========= ========= ========= ============ FFO per share - Continuing operations (5,6) $0.95 $0.20 $0.23 $0.24 $0.27 $0.95 $0.19 ============ =========== ========= ========= ========= ========= ============ FFO per share - Diluted FFO per share (5,6) $0.92 $0.19 $0.23 $0.23 $0.27 $1.03 $0.20 ============ =========== ========= ========= ========= ========= ============ FFO per share - Continuing operations (5,6) $0.92 $0.19 $0.23 $0.23 $0.27 $0.94 $0.19 ============ =========== ========= ========= ========= ========= ============ AFFO per share - Basic 5,6 $0.78 $0.15 $0.18 $0.21 $0.24 ============ =========== ========= ========= ========= AFFO per share - Diluted (5,6) $0.76 $0.14 $0.18 $0.21 $0.23 ============ =========== ========= ========= ========= FAD per share - Basic (5,6) $0.60 $0.10 $0.14 $0.17 $0.19 ============ =========== ========= ========= ========= FAD per share - Diluted (5,6) $0.59 $0.10 $0.14 $0.17 $0.19 ============ =========== ========= ========= ========= - -------------------------------------------------------------------------------- (1) Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management are necessary for a fair presentation of operating results for the interim periods. (2) Reflects OP Unitholders interest in OP net income. (3) 2002 FFO has been restated to include a $197 impairment of real estate charge and to include the $957 gain from the sale of undepreciated property (net of minority interest of $573). FFO for the year ended December 31, 2003 includes a $659 gain on the sale of undepreciated property. (4) Discontinued operations represent the activity related to all properties sold since January 1, 2001. (5) Assumes full conversion of O.P. Units into Common Shares. Diluted FFO assumes conversion of Preferred O.P. Units as well as assumed exercise of outstanding share options. Quarterly Preferred OP Unit distributions are added back for the purposes of calculating diluted FFO. Refer to "Market Capitalization" for weighted-average basic and diluted shares. (6) FFO for the year ended December 31, 2002 includes $3,800 ($0.13 per share) of lease termination income received during the period. FFO for the year ended December 31, 2003 includes a $1,218 ($0.04 per share) lump sum rent payment in connection with a tenant's assignment of an anchor lease at the Branch Plaza. Work Area: Depreciation of real estate and amortization of leasing costs: for unconsolidated subsidiaries: Crossroads $162 $160 $162 $159 ASOF 152 151 153 103 ASOF - Kroger/Safeway 236 236 236 197 ---------- ----------- --------- ----------- $550 $547 $551 $459 ========== =========== ========= =========== Amortization of finance costs: Acadia 629 128 129 241 131 Crossroads 20 7 7 3 3 ASOF 24 7 7 7 3 To tie - $3k 4Q and $12k FYE 12 12 - (5) 5 --------- ---------- ----------- --------- ----------- $685 $154 $143 $246 $142 ========= ========== =========== ========= =========== 15

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Capital Expenditures -------------------------------------------------------------------------- -------------------------- Year-to-Date Current Previous Quarters Quarter Year 3 months 3 months 3 months 3 months ended ended ended ended ended December 31, December 31, September 30, June 30, March 31, Notes 2003 2003 2003 2003 2003 --------------------------------------------------------------- Leasing Commissions: $93 $39 $- $9 $45 --------------------------------------------------------------- Tenant Improvements: 1,201 521 174 160 346 --------------------------------------------------------------- Capital Expenditures: Retail (1) 2,628 760 937 526 405 Residential 1,378 293 388 356 341 --------------------------------------------------------------- 4,006 1,053 1,325 882 746 --------------------------------------------------------------- Redevelopments (2) 8,665 5,186 1,309 1,094 1,076 --------------------------------------------------------------- Total $13,965 $6,799 $2,808 $2,145 $2,213 =============================================================== Expenditures for real estate and improvements as reported on the Company's Statement of Cash Flows $13,531 $6,541 $2,808 $2,136 $2,046 Expenditures included in deferred leasing (3) 215 39 - 9 167 Accrued construction costs as of year-end 219 219 - - - --------------------------------------------------------------- costs in Statement of Cash Flows $13,965 $6,799 $2,808 $2,145 $2,213 =============================================================== (1) Retail capital expenditures include $543 and $1,836 for the quarter and year ended December 31. 2003, respectively, related to the complete redesign of the facade at the Bloomfield Towne Center. (2) Represents costs (including leasing commissions) exclusively at the Gateway Shopping Center, Elmwood Park Shopping Center and Bartow Avenue development. (3) Includes $122 of leasing commissions related to the Gateway Shopping Center included in the redevelopment line item above. 16

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Consolidated Balance Sheets ------------------------------------------------------ (in thousands) December 31, December 31, 2003 2002 ------------- ------------- ASSETS Real estate Land $ 54,890 $ 54,890 Buildings and improvements 366,879 352,359 Construction in progress 5,859 6,629 ------------- ------------ 427,628 413,878 Less: accumulated depreciation (101,090) (85,062) ------------- ------------ Net real estate 326,538 328,816 Cash and cash equivalents 14,663 45,168 Cash in escrow 3,342 3,447 Investments in unconsolidated partnerships 13,630 6,164 Rents receivable, net of $1,510 and $1,374 allowance, respectively 5,431 2,567 Straight-line rents receivable, net of $910 allowance 4,963 4,392 Notes Receivable 3,586 6,795 Prepaid expenses 3,127 2,042 Due from related parties - - Deferred charges, net 11,173 10,360 Other assets 1,731 1,184 ------------- ------------ $ 388,184 $ 410,935 ============= ============ LIABILITIES AND SHAREHOLDERS' EQUITY Mortgage notes payable $ 190,444 $ 202,361 Accounts payable and accrued expenses 5,955 8,528 Dividends and distributions payable 4,619 3,744 Due to related parties 48 174 Deferred gain on sale of properties - 1,212 Interest rate swap payable 4,044 5,470 Other liabilities 3,806 2,998 ------------- ------------ Total liabilities 208,916 224,487 ------------- ------------ Minority interest in Operating Partnership 7,845 22,746 Minority interests in majority owned partnerships 1,810 2,379 ------------- ------------ Total minority interests 9,655 25,125 ------------- ------------ Shareholders' equity: Common shares 27 25 Additional paid-in capital 177,770 170,851 Accumulated other comprehensive income (5,505) (6,874) Deficit (2,679) (2,679) ------------- ------------ Total shareholders' equity 169,613 161,323 ------------- ------------ $ 388,184 $ 410,935 ============= ============ 17

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Selected Operating Ratios ------------------------------- 3 months ended December 31, Year ended December 31, ------------- ---------- 2003 2002 2003 2002 ------------- ------------ ---------- ------------ Coverage Ratios (1) - ----------------------------------------------- Interest Coverage Ratio EBIDTA (2) $9,474 $9,479 $41,088 $41,159 Divided by Interest expense 3,467 3,144 13,755 13,829 ------------- ------------ ---------- ------------ 2.73 x 3.01 x 2.99 x 2.98 x Fixed Charge Coverage Ratio EBIDTA $9,474 $9,479 $41,088 $41,159 Divided by ( Interest expense 3,467 3,144 13,755 13,829 + Preferred Dividends) (3) 36 50 185 199 ------------- ------------ ---------- ------------ 2.70 x 2.97 x 2.95 x 2.93 x Debt Service Coverage Ratio EBIDTA $9,474 $9,479 $41,088 $41,159 Divided by ( Interest expense 3,467 3,144 13,755 13,829 + Principal Amortization) (4) 1,248 883 4,894 4,038 ------------- ------------ ---------- ------------ 2.01 x 2.35 x 2.20 x 2.30 x Payout Ratios - ----------------------------------------------- FFO Payout Ratio Dividends (Shares) & Distributions (O.P. Units) paid - $0.16 for 4Q03, $0.145 for 1Q-3Q03 and $0.13 for 2002. $4,584 $3,695 $16,992 $14,779 FFO (2) 5,728 5,637 26,914 26,217 ------------- ------------ ---------- ------------ 80% 66% 63% 56% AFFO Payout Ratio Dividends (Shares) & Distributions (O.P. Units) $4,584 $16,992 AFFO 4,134 22,104 ------------- ---------- 111% 77% FAD Payout Ratio Dividends (Shares) & Distributions (O.P. Units) $4,584 $16,992 FAD 2,886 17,210 ------------- ---------- (5) 159% 99% Overhead Ratios - ----------------------------------------------- G&A/Real Estate Revenues General and Administrative expense $2,606 $2,618 $10,449 $9,908 Real Estate Revenues 19,602 17,421 74,041 70,486 ------------- ------------ ---------- ------------ 13% 15% 14% 14% Leverage Ratios - ----------------------------------------------- Debt/Total Market Capitalization (6) Debt $230,584 $222,913 Total Market Capitalization 589,014 436,003 ------------- ------------ 39% 51% Debt + Preferred Equity (Preferred O.P. Units) $232,164 $225,125 Total Market Capitalization 589,014 436,003 ------------- ------------ 39% 52% Notes: (1) Quarterly results for 2003 and 2002 are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The coverage ratios include the Company's pro-rata share of EBIDTA, interest expense and principal amortization related to the Company's joint venture investments in unconsolidated partnerships. (2) EBIDTA and FFO for the nine months ended September 30, 2002 have been adjusted to exclude non-recurring income of $3,945 representing lease termination income received from predominantly one tenant during the period. Gross property revenues already exclude these amounts. The adjustments are as follows: 3 months ended Year ended December 31, 2002 December 31, 2002 ------------------------------------------------------- EBIDTA FFO EBIDTA FFO Gross amounts $9,479 $5,637 $45,104 $30,162 Adjustment for material non-recurring items - - (3,945) (3,945) -------------- ------------ ---------- ------------ As adjusted and used above $9,479 $5,637 $41,159 $26,217 ============== ============ ========== ============ (3) Represents preferred distributions on Preferred Operating partnership Units. (4) Includes the Company's pro-rata share of joint venture principal amortization. $205 of the 2003 quarterly amortization and $820 of the annual amortization is from the self-liquidating amortization related to the Kroger/Safeway portfolio. On the JV level, this consists of $29,528 of debt which self-amortizes over the next six years. (5) Capital expenditures include $543 and $1,836 for the quarter and year ended December 31. 2003, respectively, related to the complete redesign of the facade at the Bloomfield Towne Center. (6) Includes the Company's pro-rata share of joint venture debt. 18

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Portfolio Debt - Consolidated Summary (amounts in thousands) % of Weighted Wholly-Owned % of Avg. Notes and Unconsolidated Wholly-Owned % of Total Outstanding Int. Rate Combined Basis (1) Only Portfolio Balance ------------------------------------------------------------------------------ Consolidated Debt Fixed-Rate Debt (2) 85% 82% 68% $156,433 6.60% Variable-Rate Debt (2) 15% 18% 15% 34,011 2.92% ------------------------------------------------------------------------ Total Consolidated Debt 100% 100% 83% 190,444 5.95% ======================================================================== Unconsolidated Debt (Joint Ventures) Fixed-Rate Debt (1) 16% 38,843 6.72% Variable-Rate Debt (1) 1% 1,297 3.12% --------------------------------------- Total Unconsolidated Debt 17% 40,140 6.61% --------------------------------------- Total Debt (3) 100% $230,584 6.06% ======================================= Notes (1) The Company is not required to, and does not consolidate its share of joint venture activity for the purposes of preparing its consolidated fiancial statemetns under GAAP. This presentation includes a theoretical pro-rata consolidation of the Company's joint venture debt. (2) Fixed-rate debt includes $86,669 of notional principal fixed through swap transactions. Conversely, variable-rate debt excludes this amount. (3) The above balances do not include FAS 141 adjustments totaling $5,275 as of December 31, 2003. 19

ANNUAL SUPPLEMENTAL DISCLOSURE December 31, 2003 Debt Analysis - Consolidated Debt (amounts in thousands) Principal Variable Balance at Rate as of % of December 31, Interest December 31, Maturity Property Lender Porfolio Notes 2003 Rate 2003 Date ---------------------------------------------------------------------------------------------------------------------------- FIXED-RATE DEBT -------------------------------- Merrillville Plaza SunAmerica Life Insurance Co. $13,425 6.46% 7/1/2007 Crescent Plaza Metropolitan Life Insurance Co. 8,516 8.13% 11/1/2010 East End Centre Metropolitan Life Insurance Co. 15,597 8.13% 11/1/2010 GHT Apartments Bank of America, N.A. 10,817 7.55% 1/1/2011 Colony Apartments Bank of America, N.A. 5,409 7.55% 1/1/2011 239 Greenwich Avenue RBS Greenwich Capital 16,000 5.19% 6/1/2013 Interest rate swaps Fleet National Bank (1) 86,669 6.29% Various ------------- -------- TOTAL FIXED-RATE DEBT 82% 156,433 6.60% ------------- -------- VARIABLE-RATE DEBT -------------------------------- Berlin Shopping Center Washington Mutual Bank, F.A. 1,777 L+175 2.94% 4/1/2005 Bradford Towne Center Washington Mutual Bank, F.A. 7,264 L+175 2.94% 4/1/2005 Ledgewood Mall Washington Mutual Bank, F.A. 29,906 L+175 2.94% 4/1/2005 New Louden Center Washington Mutual Bank, F.A. 7,064 L+175 2.94% 4/1/2005 Route 6 Plaza Washington Mutual Bank, F.A. 4,674 L+175 2.94% 4/1/2005 Village Apartments Sun America Life Insurance Co. 9,191 L+173 2.89% 10/1/2005 Abington Towne Center Fleet National Bank (2) L+175 2.92% 1/1/2007 Branch Shopping Center Fleet National Bank (2) 12,009 L+175 2.92% 1/1/2007 Methuen Shopping Center Fleet National Bank (2) L+175 2.92% 1/1/2007 Walnut Hill Plaza Washington Mutual Bank, F.A. (3) 6,775 L+185 3.04% 1/1/2007 Bloomfield Town Square Washington Mutual Bank, F.A. (3) 13,308 L+185 3.04% 1/1/2007 Town Line Plaza Fleet National Bank (4) 4,865 L+175 2.91% 3/15/2007 Gateway Shopping Center Fleet National Bank (5) 6,256 L+175 2.91% 5/1/2007 Village Commons Shopping Center Fleet National Bank 8,992 L+175 2.91% 6/1/2007 Elmwood Park Shopping Center Washington Mutual Bank, F.A. (6) - L+150 - 11/22/2007 Marketplace of Absecon Fleet National Bank (7) - L+150 - 3/1/2008 Soundview Marketplace Fleet National Bank 8 8,599 L+140 2.57% 12/1/2008 ------------ Interest rate swaps Fleet National Bank (86,669) ------------- TOTAL VARIABLE-RATE DEBT 18% 34,011 L+174 2.92% ---------- ------------- ------------ TOTAL PORTFOLIO DEBT 100% $190,444 5.95% ========== ============= ============ - -------------------------------------------------------------------------------- Notes: ------------------ (1) The Company has hedged $86,669 of it's variable-rate debt with five variable to fixed- rate swap agreements with Fleet Bank, N.A. as follows: Notional principal All-in Rate Spread Swap rate Maturity Date ------------------------------------------------------------------- $30,000 6.55% 1.75% 4.80% 4/1/2005 20,000 6.28% 1.75% 4.53% 10/1/2006 15,605 6.17% 1.85% 4.32% 1/1/2007 12,072 5.86% 1.75% 4.11% 1/1/2007 8,992 6.22% 1.75% 4.47% 6/1/2007 ------------------------------------------------------------------- $86,669 6.29% 1.77% 4.52% =================================================================== Subsequent to year-end, the Company has also executed a forward-starting interest rate swap in the notional principle amount of $37,667. The swap as at a 4.345% rate and commences April 1, 2005 with a January 1, 2011 maturity. (2) There is an additional $7,650 currently available under this facility which the Total Debt - Hedged Company is required to fully draw down prior to December 2004. An additional $3,000 (net of a $150 holdback) is available through December 2004 based upon additional lease-up at the collateral properties. (3) There is an additional $5,000 (less certain holdbacks totalling $600) currently available under this facility which the Company is required to fully draw down prior to December 2004. (4) There is an additional $2,000 available under this facility which is also periodically used for standby letters of credit. (5) There is an additional $3,000 available under this facility. (6) This is a revolving facility for up to $20,000 which bears interest at LIBOR plus 150 basis points (3.30% all-in rate floor). (7) This is a revolving facility for up to $7,400 which bears interest at LIBOR plus 150 basis points (175 basis points if the loan to collateral value is > 50%). (8) There is an additional $5,000 available under this facility. 20

ANNUAL SUPPLEMENTAL DISCLOSURE December 31, 2003 Debt Analysis - Unconsolidated Debt (Joint Ventures) Principal Variable Acadia Realty Balance at Acadia's Rate as of Lender/ Trust December 31, Prorata Interest December Maturity FIXED-RATE DEBT Joint Venture Partner Ownership 2003 Share Rate 31, 2003 Date - -------------------------------------------------------------------------------------------------- ---------------------- Crossroads Shopping Center (1)Bank of New York/ 49.0% $32,961 $16,151 7.16% 10/1/2007 Heyman-Greenburgh Associates LLC and RMC Development Company LLC Brandywine Town Center UBS Warburg Real Estate Investments, Inc./ 22.2% 30,000 6,667 4.69% 2/11/2008 Acadia Strategic Opportunity Fund Kroger Portfolio (2) Cortlandt Deposit Corporation/ 22.2% 14,850 2,475 6.62% 2/1/2009 Acadia Strategic Opportunity Fund Safeway Portfolio (2) Cortlandt Deposit Corporation/ 22.2% 14,678 2,446 6.51% 1/15/2009 Acadia Strategic Opportunity Fund Brandywine Town Center UBS Warburg Real Estate Investments, Inc./ 22.2% 21,468 4,771 7.01% 7/11/2012 Acadia Strategic Opportunity Fund Market Square Shopping Center UBS Warburg Real Estate Investments, Inc./ 22.2% 16,287 3,619 7.32% 6/11/2012 Acadia Strategic Opportunity Fund Amherst Marketplace The Ohio National Life Insurance Company/ Acadia Strategic Opportunity Fund 22.2% 4,916 1,092 8.20% 6/1/2022 Sheffield Crossing Canada Life Insurance Company/ Acadia Strategic Opportunity Fund 22.2% 7,299 1,622 8.00% 1/1/2023 -------------------------------- TOTAL/WEIGHTED AVERAGE - FIXED-RATE UNCONSOLIDATED DEBT 142,459 38,843 6.72% -------------------------------- VARIABLE-RATE DEBT - ------------------------------ Granville Center Bank One, NA/ Acadia Strategic L + 200 Opportunity Fund 22.2% 5,835 1,297 3.12% 10/5/2007 ---------------------- ----------- TOTAL/WEIGHTED AVERAGE - ALL UNCONSOLIDATED DEBT $148,294 $40,140 6.61% ====================== =========== Notes: - ------------------------------ (1) Although this is variable debt, Acadia has effectively fixed its pro-rata share of debt through two swap transactions. $5,000 is fixed at 7.53% and the remaining balance is fixed at 6.99%. (2) AmCap, ASOF's joint venture partner on this investment, is allocated 25% of the debt and equity. As such, ASOF's pro- rata share of the above debt is 75% x 22.22%. 21

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Future Debt Maturities ------------------------------------------ (in thousands) Weighted Average Interest Rate of Maturing Debt ------------------------------------------------- Consolidated Debt Scheduled Year Amortization Maturities Total Total Debt Fixed-Rate Debt Variable-Rate Debt - ---------------------------------------------------------------------- ----------- ---------------- -------------------- 2004 $ 3,580 $ - $ 3,580 n/a n/a n/a 2005 2,775 57,769 60,544 2.93% n/a 2.93% 2006 2,445 - 2,445 n/a n/a n/a 2007 1,396 61,250 62,646 3.68% 6.46% 2.96% 2008 1,168 7,976 9,144 2.57% n/a 2.57% Thereafter 2,975 49,110 52,085 7.12% 7.12% n/a --------------- ------------ -------------- $ 14,339 $ 176,105 $ 190,444 =============== ============ ============== Unconsolidated Debt (Joint Ventures) (1) 2004 1,325 - 1,325 n/a n/a n/a 2005 1,372 - 1,372 n/a n/a n/a 2006 1,418 - 1,418 n/a n/a n/a 2007 1,245 16,033 17,278 6.86% 7.16% 3.12% 2008 1,017 - 1,017 n/a n/a n/a Thereafter 3,620 14,110 17,730 5.98% 5.98% n/a --------------- ------------ -------------- $ 9,997 $ 30,143 $ 40,140 =============== ============ ============== - ---------------------------------------------------------------------- ----------- ---------------- -------------------- Capitalized interest related to the Company's development projects is as follows: (in thousands) 1st Quarter 2003 $ 187 2nd Quarter 2003 76 3rd Quarter 2003 61 4th Quarter 2003 79 --------------- Year-to-Date $ 403 =============== (1) The above amounts represent the Company's pro-rata share of joint venture mortgage debt. 22

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Unencumbered Properties ------------------------------------- Center Location GLA - ------------------------------------- ------------------ ------------- Blackman Plaza Wilkes-Barre, PA 121,341 Greenridge Shopping Center Scranton, PA 198,393 Hobson West Plaza Naperville, IL 99,044 Luzerne Street Shopping Center Scranton, PA 57,988 Mad River Station Dayton, OH 154,325 Mark Plaza Edwardsville, PA 214,036 Pacesetter Park Shopping Center Ramapo, New York 96,252 Pittston Plaza Pittston, PA 79,494 Plaza 422 Lebanon, PA 155,026 ------------- Total GLA of Unencumbered Properties 1,175,899 ============= Total net operating income for the year ended December 31, 2003 associated with unencumbered properties $5,594 ============= 23

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Acadia Strategic Opportunity Fund - Overview - ---------------------------------------------------------------------------------------------------------------------- Item Notes Description - ----------------------------------------------------------------------------------------------------------------------- Date formed September 2001 Properties owned Ohio (1) Amherst Marketplace (1) Granville Centre (1) Sheffield Crossing Delaware (1) Brandywine Town Center (1) Market Square Shopping Center Various (2) 25 Kroger/Safeway locations Partnership structure Equity Contribution: 22.22% - Acadia 77.78% - Four institutional investors (current significant shareholders in Acadia as well) Cash flow distribution: 22.22% - Acadia 77.78% - Four institutional investors Promote: 20% to Acadia once all partners (including Acadia) have received 9% preferred return and return of equity Remaining 80% is distributed to all the partners (including Acadia). Fees to Acadia Asset management fee equal to 1.5% of total committed capital ($70 million which excludes Acadia's $20 million)) Property management fee equal to 4% of gross property revenues Market rate leasing fees Construction/project management fees equal to the lesser of 7.5% of hard costs or allocable costs of Acadia Mortgage Debt (3) $115 million 95% ($109 million) fixed-rate and 5% floating ($6 million) at a total blended rate of 6.2% (1) See details of these properties including occupancy, tenants, expirations and demographics in Section IV of this supplement (2) See enclosed map in this section for these locations (3) See details of this debt in Section II of this supplement 24

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 ASOF Properties - Detail ----------------------------- --------------------------------------------------------------------------------------------------------- Annualized Base Rent Gross Leasable Area Occupancy Annualized Base Rent per Occupied Square Foot --------------------------------------------------------------------------------------------------------- Anchors Shops Total Anchors Shops Total Anchors Shops Total Anchors Shops Total --------------------------------------------------------------------------------------------------------- Midwest - --------------- Ohio - --------------- Amherst Marketplace 76,737 3,200 79,937 100.00%100.00%100.00% $765,711 $33,396 $799,107 $9.98 $10.44 $10.00 Granville Centre 90,047 41,496 131,543 100.00% 62.80% 88.27% 991,612 283,693 1,275,305 11.01 10.89 10.98 Sheffield Crossing 59,159 53,475 112,634 100.00% 88.11% 94.36% 620,578 497,852 1,118,430 10.49 10.57 10.52 --------------------------------------------------------------------------------------------------------- Total - Midwest Region 225,943 98,171 324,114 100.00% 77.80% 93.28% 2,377,901 814,941 3,192,842 10.52 10.67 10.56 --------------------------------------------------------------------------------------------------------- Mid-Atlantic - --------------- Delaware - --------------- Brandywine Town Center (1) 614,289 - 614,289 99.33% - 99.33% 8,651,434 - 8,651,434 14.18 - 14.18 Market Square Shopping Center 31,375 56,385 87,760 100.00%100.00%100.00% 365,712 1,255,001 1,620,713 11.66 22.26 18.47 --------------------------------------------------------------------------------------------------------- Total - Mid- Atlantic 645,664 56,385 702,049 99.36%100.00% 99.41% 9,017,146 1,255,001 10,272,147 14.06 22.26 14.72 --------------------------------------------------------------------------------------------------------- Various - --------------- Kroger/Safeway Portfolio (25 Properties)( 2) 1,018,100 - 1,018,100 100.00% - 100.00% 9,965,897 - 9,965,897 9.79 - 9.79 --------------------------------------------------------------------------------------------------------- Total - Joint Venture Properties 1,889,707 154,556 2,044,263 99.78% 85.90% 98.73%$21,360,944 $2,069,942 $23,430,886 $11.33 $15.59 $11.61 ========================================================================================================= General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced. Tenants who comprise greater than 10% of a center's GLA are considered anchor tenants for the purposes of the above table. (1) Does not include approximately 240,000 square feet of new space in Phase II, which will be paid for by the JV on an "earnout basis" only if, and when it is leased. (2) ASOF has a 75% economic interest in this portfolio of 25 Kroger/Safeway triple-net leases. 25

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Kroger/Safeway Portfolio ------------------------- Kroger locations Safeway locations --------------------------------------------- Cary, NC Atlanta, TX Cincinnati, OH Batesville, AR Conroe, TX Benton, AR Great Bend, KS Carthage, TX Hanrahan, LA Little Rock, AR Indianapolis, IN Longview, WA Irving, TX Mustang, OK Pratt, KS Roswell, NM Roanoke, VA Ruidoso, NM Shreveport, LA San Ramon, CA Wichita, KS (2 stores) Springerville, AZ Tucson, AZ Tulsa, OK General note: As all of these leases are triple- net, Acadia has no property management responsibilities for these locations. 26

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 ACADIA STRATEGIC OPPORTUNITY FUND Top 10 Tenants - Ranked by Annualized Base Rent --------------------------------------------------------------------- Percentage of Total Represented by Tenant --------------------------------------- Number of Stores in Annualized Total JV Total Base Portfolio Annualized Base Ranking Tenant Portfolio GLA Rent (1) GLA( 2) Rent (2) - ------- ----------------------- ----------- ------------ ------------ ---------- ---------------------------- 1 Safeway (3) 13 467,300 $3,743,629 22.9% 17.9% 2 Kroger (4) 12 550,800 3,730,794 26.9% 17.8% 3 Lowe's 1 140,000 1,925,000 6.8% 9.2% 4 Giant Eagle 2 125,396 1,251,154 6.1% 6.0% 5 Bed, Bath & Beyond 1 45,114 868,426 2.2% 4.1% Transunion Settlement 6 (5) 1 39,714 858,930 1.9% 4.1% 7 Regal Cinema 1 65,641 821,825 3.2% 3.9% 8 Target 1 138,000 800,000 6.8% 3.8% 9 Dick's Sporting Goods 1 50,000 725,156 2.4% 3.5% 10 Michaels 1 24,876 547,272 1.2% 2.6% ----------- ------------ ------------ ---------- ---------------------------- Total 34 1,646,841 $15,272,186 80.6% 72.9% =========== ============ ============ ========== ============================ (1) Base rents do not include percentage rents (except where noted), additional rents for property expense reimbursements, and contractual rent escalations due after September 30, 2003. (2) GLA does not include approximately 240,000 square feet of new space in Phase II of the Brandywine Town Center, which will be paid for by the JV on an "earnout basis" only if, and when it is leased. Base rents for the Kroger/Safeway portfolio include 75% of the total rents. The remaining 25% is allocated to AmCap, the joint venture partner in this portfolio. (3) Safeway has sub-leased 7 of these locations to supermarket tenants, 1 location to a non- supermarket tenant and ceased operations at one other location. Safeway is obligated to pay rent through the full term of all these leases which expire in 2009. (4) Kroger has sub-leased 4 of these locations to supermarket tenants, 2 locations to a non-supermarket tenant and ceased operations at one other location. Kroger is obligated to pay rent through the full term of all these leases which expire in 2009. (5) Subsidiary of Transunion 27

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Retail Properties - Summary Listing ----------------------------------- - ---------------------------------------------------------------------------------------------------------------------- Property Totals ----------------------- Grocery Anchor Current Year Lease and Other Anchor Annualized Annualized Constructed(C) Occupancy Option Current Lease and Base Base Shopping Center Location Acquired(A) GLA % Expiraton Option Expiraton Rent Rent psf - ---------------------------------------------------------------------------------------------------------------------- NEW YORK REGION - ----------------- New York Soundview Port King Kullen Clearview Cinema Marketplace Washington 1998 (A) 182,367 92% 2007/2022 2010/2030 $2,633,577 $15.70 Village Commons Shopping Center Smithtown 1998 (A) 87,285 96% Daffy's 2008/2028 2,012,740 23.91 Walgreens 2021/-- Branch Shopping Plaza Smithtown 1998 (A) 125,640 96% Waldbaum's 2,232,624 18.57 (A&P)2013/2028 New Loudon Center Latham 1982 (A) 254,332 75% Price Marshalls 2004/2009 1,526,987 7.95 Chopper Bon Ton Department 2015/2035 Store 2014/2034 Pacesetter Park Pomona Stop & Shop Shopping Center 1999 (A) 96,252 84% (Ahold) 2020/2040 881,762 10.90 New Jersey Elmwood Park Elmwood Park 1998 (A) 149,676 100% Pathmark Walgreen's 2022/2062 3,274,452 21.97 Shopping Center 2017/2052 Marketplace of Absecon 1998 (A) 105,251 93% Acme Eckerd Drug 1,499,872 15.40 Absecon 2015/2055 2020/2040 Berlin Shopping Berlin 1994 (A) 188,717 80% Acme Kmart 2004/2029 802,846 5.33 Center 2005/2015 Ledgewood Mall Ledgewood 1983 (A) 515,980 88% Wal-mart 2019/2049 4,251,099 9.36 Macy's 2005/2025 The Sports' Authority 2007/2037 Circuit City 2020/2040 Marshalls 2007/2027 NEW ENGLAND REGION - ------------------------------ Connecticut Town Line Plaza Rocky Hill 1998 (A) 206,178 100%Stop & Shop Wal-mart (not owned) 1,555,061 14.28 239 Greenwich Greenwich 1998 (A) 16,834 100% Restoration Hardware 1,254,282 74.51 Avenue 2015/2025 Chico's Fashion 2010/2020 Massachusetts Methuen Shopping Methuen 1998 (A) 130,238 100%DeMoulas Wal-mart 2011/2051 828,772 6.36 Center Market 2005/2015 Crescent Plaza Brockton 1984 (A) 218,277 100%Shaw's Home Depot 2021/2056 2012/2042 1,692,015 7.75 Rhode Island Walnut Hill PlazaWoonsocket 1998 (A) 285,773 100% Shaw's Sears 2008/2033 2013/2043 2,231,530 7.81 Vermont The Gateway Burlington 1999 (A) 100,563 84% Shaw's Shopping Center 2024/2053 1,544,422 18.27 MIDWEST REGION - ----------------- Illinois Hobson West PlazaNaperville 1998 (A) 99,044 99% Bobak's Market 1,143,138 11.68 and Restaurant 2007/2032 (specialty grocery) Indiana Merrillville Merrillville 1998 (A) 235,603 100% TJ Maxx 2004/2014 2,590,146 10.99 Plaza JC Penney 2008/2018 OfficeMax 2008/2028 Michigan Bloomfield Town Bloomfield Costco TJ Maxx2009/2014 Square Hills 1998 (A) 217,499 88%(not owned) Marshall's 2011/2026 1,779,608 9.32 Home Goods 2010/2025 Ohio Babies "R" Us Mad River Station Dayton 1999 (A) 154,325 80% 2005/2020 1,487,953 12.03 Office Depot 2005/2010 MID-ATLANTIC REGION - ----------------- Pennsylvania Abington Towne Abington TJ Maxx 2010/2020 Center 1998 (A) 216,542 97% 798,975 14.93 Target (not owned) Blackman Plaza Wilkes-Barre 1968 (C) 121,341 92% Kmart 2004/2049 2 261,504 2.34 Bradford Towne Towanda 1993 (C) 256,939 89% P&C Foods Kmart 2019/2069 1,420,961 6.20 Centre (Penn Traffic) 2014/2024 East End Center Wilkes-Barre 1986 (C) 308,283 52% Price 969,570 6.07 Chopper 2008/2028 Greenridge Plaza Scranton 1986 (C) 198,393 53%Giant Food (Ahold) 2021/2051 668,852 6.37 Luzerne Street Scranton 1983 (A) 57,988 94%Price Eckerd Drug 272,150 4.98 Shopping Center Chopper 2004/2019 2004/2024 3 Mark Plaza Edwardsville 1968 (C) 214,036 91%Redner's Kmart 2004/2054 2 949,127 4.86 Markets 2018/2028 Pittston Plaza Pittston 1994 (C) 79,494 98% Redner's Eckerd Drugs 599,728 7.69 Market 2006/2016 2018/2028 Plaza 422 Lebanon 1972 (C) 155,026 69% Home Depot 2021/2056 444,020 4.14 Route 6 Mall Honesdale 1994 (C) 175,507 99% Weis MarketsKmart 2020/2070 1,062,543 6.11 (not owned) ---------- ----------------------- 5,153,383 $42,670,316 $10.22 ========== ======================= JOINT VENTURE PROPERTIES - ------------------------------ (excludes jont venture owned Kroger/Safeway Portfolio) NEW YORK REGION - ----------------- New York Crossroads White Plains 1998 310,919 99% Waldbaum's Kmart 2012/2037 $5,523,606 $17.99 Shopping Center (A&P) 2007/2032 (49% JV interest) B. Dalton 2012/2022 Pay Half 2018/-- Modell's 2009/2019 MID-ATLANTIC REGION - ----------------- Delaware Brandywine Town Center 1 Wilmington 2003 (A) 614,289 99% 8,651,434 14.18 (22% JV interest) Market Square Wilmington 2003 (A) 87,760 100% Trader Joe'sTJ Maxx 2006/2016 1,620,713 18.47 Shopping Center (specialty grocery) (22% JV interest) 2013/2028 MIDWEST REGION - ----------------- Ohio Amherst Cleveland Giant Eagle Marketplace 2002 (A) 79,937 100% 2021/2041 799,107 10.00 (22% JV interest) Granville Centre Columbus 2002 (A) 131,543 88% Big Bear California Fitness 1,275,305 10.98 (Penn 2017/2027 Traffic) 2020/2050 4 (22% JV interest) Sheffield Cleveland 2002 (A) 112,634 94% Giant Eagle 1,118,430 10.52 Crossing 2022/2042 ---------- ----------------------- (22% JV interest) 1,337,082 $18,988,595 $14.53 ========== ======================= 1 Does not include 240,000 square feet of new space in Phase II of the Brandywine Town Center, which will be paid for by the Company on an "earnout basis" only if, and when it is leased. 2 Kmart has notified the Company of its intention to exercise its option to renew the lease for this space upon the expiration of the current lease term. 3 This tenant has ceased operations at this location, however continues to pay rent pursuant to the lease. 4 This tenant, which is currently operating under Chapter 11 Bankruptcy, has ceased operations at this location and the Company anticipates the tenant will reject the lease. 28

QUARTERLY SUPPLEMENTAL DISCLOSURE SEPTEMBER 30, 2003 Retail Properties by Region ---------------------------- (excludes jont venture owned Kroger/Safeway Portfolio) ----------------------------------------------------------------------------------------------------------- Annualized Base Rent per Occupied Square Gross Leasable Area Occupancy Annualized Base Rent Foot ----------------------------------------------------------------------------------------------------------- Wholly-Owned Properties - ------------- Anchors (1) Shops Total Anchors Shops Total Anchors Shops Total Anchors Shops Totals ----------------------------------------------------------------------------------------------------------- New York Region 1,022,638 682,862 1,705,500 90.58% 83.49%87.74% $9,347,999 $9,767,960 $19,115,959 $10.09 $17.13 $12.77 New England 640,880 316,983 957,863 100.00% 94.94%98.32% 6,124,752 2,981,330 9,106,082 11.27 9.91 10.78 Midwest 305,549 400,922 706,471 100.00% 85.47%91.75% 2,369,451 4,631,394 7,000,845 7.75 13.52 10.80 Mid-Atlantic 1,302,156 481,393 1,783,549 80.78% 77.81%79.98% 4,501,700 2,945,730 7,447,430 5.55 7.86 6.28 ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- Total Wholly- Owned Properties 3,271,223 1,882,160 5,153,383 89.40% 84.39%87.57%$22,343,902 $20,326,414 $42,670,316 $8.64 $12.80 $10.22 ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- Joint Venture Properties - ------------- Midwest (2) 225,943 98,171 324,114 100.00% 77.80%93.28% $2,377,901 $814,941 $3,192,842 $10.52 $10.67 $10.56 Mid-Atlantic (2,3) 645,664 56,385 702,049 99.36%100.00%99.41% 9,017,146 1,255,001 10,272,147 14.06 22.26 14.72 New York Region (4) 191,363 119,556 310,919 100.00% 96.76%98.75% 1,939,927 3,583,679 5,523,606 10.14 30.98 17.99 ----------------------------------------------------------------------------------------------------------- Total Joint Venture Properties 1,062,970 274,112 1,337,082 99.61% 90.64%97.77%$13,334,974 $5,653,621 $18,988,595 $12.59 $22.76 $14.53 =========================================================================================================== General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced. Tenants who comprise greater than 10% of a center's GLA are considered anchor tenants for the purposes of the above table. (1) Anchor GLA includes a total of 254,916 square feet which is not owned by the Company. This square footage has been excluded for calculating annualized base rent per square foot. (2) The Company has a 22% interest in Acadia Strategic Opportunity Fund which owns these properties. (3) Does not include 240,000 square feet of new space in Phase II of the Brandywine Town Center, which will be paid for by the Company on an "earnout basis" only if, and when it is leased. (4) The Company has a 49% interest in two partnerships which, together, own the Crossroads Shopping Center. 29

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Retail Properties by State - Summary --------------------------------------------- (excludes jont venture owned Kroger/Safeway Portfolio) Gross Leasable Area Occupancy ---------------------------------------------------------- Wholly-Owned Properties - ----------------------------- Ownership Percent of Number of % base rent (1)propertiesAnchors (2) Shops Total Anchors Shops Total ------------------------------------------------------------------------------------------- NEW YORK REGION New Jersey 100% 20.3% 4 590,959 368,665 959,624 92.00% 83.46% 88.72% New York 100% 19.2% 5 431,679 314,197 745,876 88.63% 83.53% 86.48% NEW ENGLAND REGION Connecticut 100% 5.8% 2 178,799 44,213 223,012 100.00% 100.00% 100.00% Massachusetts 100% 5.2% 2 276,989 71,526 348,515 100.00% 100.00% 100.00% Rhode Island 100% 4.6% 1 113,092 172,681 285,773 100.00% 100.00% 100.00% Vermont 100% 3.2% 1 72,000 28,563 100,563 100.00% 43.81% 84.04% MIDWEST REGION Illinois 100% 2.4% 1 42,037 57,007 99,044 100.00% 97.88% 98.78% Indiana 100% 5.4% 1 101,357 134,246 235,603 100.00% 100.00% 100.00% Michigan 100% 3.7% 1 103,970 113,529 217,499 100.00% 76.70% 87.84% Ohio 100% 3.1% 1 58,185 96,140 154,325 100.00% 68.18% 80.18% MID-ATLANTIC REGION Pennsylvania 100% 15.4% 10 1,302,156 481,393 1,783,549 80.78% 77.81% 79.98% --------------------------------------------------------------------------------- ---------------------------------------------------------- Total - Wholly-Owned Properties 88.2% 29 3,271,223 1,882,160 5,153,383 89.40% 84.39% 87.57% --------------------------------------------------------------------------------- ---------------------------------------------------------- Joint Venture Properties (3) - ----------------------------- Ohio (4) 22% 1.5% 3 225,943 98,171 324,114 100.00% 77.80% 93.28% Delaware (4,5) 22% 4.7% 2 645,664 56,385 702,049 99.36% 100.00% 99.41% New York (6) 49% 5.6% 1 191,363 119,556 310,919 100.00% 96.76% 98.75% ----------------------- ---------------------------------------------------------- Total Joint Venture Properties 11.8% 6 1,062,970 274,112 1,337,082 99.61% 90.64% 97.77% -----------------------========================================================== 100.0% 35 ======================= --------------------------------- Annualized Base Rent Annualized Base Rent per Occupied Square Foot -------------------------------------------------------------- Wholly-Owned Properties - ----------------------------- Anchors Shops Total Anchors Shops Totals ------------------------------------------------------------- NEW YORK REGION New Jersey $5,380,740 $4,447,529 $9,828,269 $9.90 $14.46 $11.54 New York 3,967,259 5,320,431 9,287,690 10.37 20.27 14.40 NEW ENGLAND REGION Connecticut 2,191,282 618,061 2,809,343 26.89 13.98 22.35 Massachusetts 1,855,550 665,237 2,520,787 6.70 9.30 7.23 Rhode Island 781,920 1,449,610 2,231,530 6.91 8.39 7.81 Vermont 1,296,000 248,422 1,544,422 18.00 19.85 18.27 MIDWEST REGION Illinois 170,000 973,138 1,143,138 4.04 17.44 11.68 Indiana 900,035 1,690,111 2,590,146 8.88 12.59 10.99 Michigan 767,849 1,011,759 1,779,608 7.39 11.62 9.32 Ohio 531,567 956,386 1,487,953 9.14 14.59 12.03 MID-ATLANTIC REGION Pennsylvania 4,501,700 2,945,730 7,447,430 5.55 7.86 6.28 ------------------------------------------------------------- ------------------------------------------------------------- Total - Wholly-Owned Properties 22,343,902 20,326,414 42,670,316 8.64 12.80 10.22 ------------------------------------------------------------- ------------------------------------------------------------- Joint Venture Properties (3) - ----------------------------- Ohio (4) $2,377,901 $814,941 $3,192,842 $10.52 $10.67 $10.56 Delaware (4,5) 9,017,146 1,255,001 10,272,147 14.06 22.26 14.72 New York (6) 1,939,927 3,583,679 5,523,606 10.14 30.98 17.99 ------------------------------------------------------------- Total Joint Venture Properties $13,334,974 $5,653,621 $18,988,595 $12.59 $22.76 $14.53 ============================================================= General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced. Tenants who comprise greater than 10% of a center's GLA are considered anchor tenants for the purposes of the above table. (1) The Company's pro-rata share of base rent from joint venture properties has been included for the purpose of calculating percentage of base rent by state. (2) Anchor GLA includes a total of 254,916 square feet which is not owned by the Company. This square footage has been excluded for calculating annualized base rent per square foot. (3) Does not include approximately 1 million square feet relating to a portfolio of 25 supermarket triple-net leases acquired by ASOF in January of 2003. (4) The Company has a 22% interest in Acadia Strategic Opportunity Fund which owns these properties. (5) Does not include 240,000 square feet of new space in Phase II of the Brandywine Town Center, which will be paid for by the Company on an "earnout basis" only if, and when it is leased. (6) The Company has a 49% interest in two partnerships which, together, own the Crossroads Shopping Center. 30

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Retail Properties - Detail ----------------------------- ------------------------------------------------------------------------------------------------------------ Annualized Base Rent Gross Leasable Area Occupancy Annualized Base Rent per Occupied Square Foot ------------------------------------------------------------------------------------------------------------ Anchors Shops Total Anchors Shops Total Anchors Shops Total Anchors Shops Total ------------------------------------------------------------------------------------------------------------ WHOLLY-OWNED PROPERTIES: New York Region - -------------- New York - -------------- Soundview Marketplace 73,500 108,867 182,367 100.00% 86.52% 91.95% $1,158,850 $1,474,727 $2,633,577 $15.77 $15.66 $15.70 Village Commons Shopping Center 25,192 62,093 87,285 100.00% 94.98% 96.43% 428,213 1,584,527 2,012,740 17.00 26.87 23.91 Branch Plaza 63,000 62,640 125,640 100.00% 91.40% 95.71% 920,964 1,311,660 2,232,624 14.62 22.91 18.57 New Loudon Center 217,935 36,397 254,332 77.47% 63.63% 75.49% 1,126,097 400,890 1,526,987 6.67 17.31 7.95 Pacesetter Park Shopping Center 52,052 44,200 96,252 100.00% 65.33% 84.08% 333,135 548,627 881,762 6.40 19.00 10.90 ------------------------------------------------------------------------------------------------------------ Total - New York 431,679 314,197 745,876 88.63% 83.53% 86.48% 3,967,259 5,320,431 9,287,690 10.37 20.27 14.40 ------------------------------------------------------------------------------------------------------------ New Jersey - -------------- Elmwood Park Shopping Center 62,610 87,066 149,676 100.00% 99.30% 99.59% 1,390,460 1,883,992 3,274,452 22.21 21.79 21.97 Marketplace of Absecon 58,031 47,220 105,251 100.00% 83.33% 92.52% 927,574 572,298 1,499,872 15.98 14.54 15.40 Berlin Shopping Center 127,850 60,867 188,717 100.00% 37.42% 79.82% 619,400 183,446 802,846 4.84 8.05 5.33 Ledgewood Mall 342,468 173,512 515,980 86.20% 91.69% 88.05% 2,443,306 1,807,793 4,251,099 8.28 11.36 9.36 ------------------------------------------------------------------------------------------------------------ Total - New Jersey 590,959 368,665 959,624 92.00% 83.46% 88.72% 5,380,740 4,447,529 9,828,269 9.90 14.46 11.54 ------------------------------------------------------------------------------------------------------------ Total - New York Region 1,022,638 682,862 1,705,500 90.58% 83.49% 87.74% 9,347,999 9,767,960 19,115,959 10.09 17.13 12.77 ------------------------------------------------------------------------------------------------------------ New England - -------------- Connecticut - -------------- Town Line Plaza( 1) 161,965 44,213 206,178 100.00%100.00%100.00% 937,000 618,061 1,555,061 14.49 13.98 14.28 239 Greenwich Avenue( 2) 16,834 - 16,834 100.00% - 100.00% 1,254,282 - 1,254,282 74.51 - 74.51 ------------------------------------------------------------------------------------------------------------ Total - Connecticut 178,799 44,213 223,012 100.00%100.00%100.00% 2,191,282 618,061 2,809,343 26.89 13.98 22.35 ------------------------------------------------------------------------------------------------------------ Massachusetts - -------------- Methuen Shopping Center 120,004 10,234 130,238 100.00%100.00%100.00% 736,464 92,308 828,772 6.14 9.02 6.36 Crescent Plaza 156,985 61,292 218,277 100.00%100.00%100.00% 1,119,086 572,929 1,692,015 7.13 9.35 7.75 ------------------------------------------------------------------------------------------------------------ Total - Massachusetts 276,989 71,526 348,515 100.00%100.00%100.00% 1,855,550 665,237 2,520,787 6.70 9.30 7.23 ------------------------------------------------------------------------------------------------------------ Rhode Island - -------------- Walnut Hill Plaza 113,092 172,681 285,773 100.00%100.00%100.00% 781,920 1,449,610 2,231,530 6.91 8.39 7.81 ------------------------------------------------------------------------------------------------------------ Vermont - -------------- The Gateway Shopping Center (3) 72,000 28,563 100,563 100.00% 43.81% 84.04% 1,296,000 248,422 1,544,422 18.00 19.85 18.27 ------------------------------------------------------------------------------------------------------------ Total - New England Region 640,880 316,983 957,863 100.00% 94.94% 98.32% 6,124,752 2,981,330 9,106,082 11.27 9.91 10.78 ------------------------------------------------------------------------------------------------------------ General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced. Tenants who comprise greater than 10% of a center's GLA are considered anchor tenants for the purposes of the above table. (1) Anchor GLA includes a 97,300 square foot Wal-Mart store which is not owned by the Company. This square footage has been excluded for calculating annualized base rent per square foot. (2) 239 Greenwich Avenue contains 16,834 square feet of retail GLA and 21 residential units encompassing 14,434 square feet. Residential activities are not included above. (3) The newly built 72,000 square foot Shaw's supermarket opened during the 2nd quarter 2003 at this redevelopment project. The balance of the newly constructed small shop space is in its initial lease-up phase. 31

WHOLLY-OWNED PROPERTIES (continued): Midwest - -------------- Illinois - -------------- Hobson West Plaza 42,037 57,007 99,044 100.00% 97.88% 98.78% $170,000 $973,138 $1,143,138 $4.04 $17.44 $11.68 Indiana - -------------- Merrillville Plaza 101,357 134,246 235,603 100.00%100.00%100.00% 900,035 1,690,111 2,590,146 8.88 12.59 10.99 Michigan - -------------- Bloomfield Towne Square 103,970 113,529 217,499 100.00% 76.70% 87.84% 767,849 1,011,759 1,779,608 7.39 11.62 9.32 Ohio - -------------- Mad River Station (1) 58,185 96,140 154,325 100.00% 68.18% 80.18% 531,567 956,386 1,487,953 9.14 14.59 12.03 ------------------------------------------------------------------------------------------------------------ Total - Midwest Region 305,549 400,922 706,471 100.00% 85.47% 91.75% 2,369,451 4,631,394 7,000,845 7.75 13.52 10.80 ------------------------------------------------------------------------------------------------------------ Mid-Atlantic - -------------- Pennsylvania - -------------- Abington Towne Center (2) 184,616 31,926 216,542 100.00% 83.02% 97.50% 256,500 542,475 798,975 9.50 20.47 14.93 Blackman Plaza 104,956 16,385 121,341 100.00% 42.72% 92.27% 204,664 56,840 261,504 1.95 8.12 2.34 Bradford Towne Centre 146,499 110,440 256,939 100.00% 74.90% 89.21% 887,469 533,492 1,420,961 6.06 6.45 6.20 East End Center 176,200 132,083 308,283 28.38% 83.16% 51.85% 357,500 612,070 969,570 7.15 5.57 6.07 Greenridge Plaza 145,420 52,973 198,393 42.70% 81.07% 52.95% 279,405 389,447 668,852 4.50 9.07 6.37 Luzerne Street Shopping Center( 3) 54,618 3,370 57,988 100.00% - 94.19% 272,150 - 272,150 4.98 - 4.98 Mark Plaza 157,595 56,441 214,036 100.00% 67.02% 91.30% 652,095 297,032 949,127 4.14 7.85 4.86 Pittston Plaza 67,568 11,926 79,494 100.00% 87.39% 98.11% 496,446 103,282 599,728 7.35 9.91 7.69 Plaza 422 145,026 10,000 155,026 71.88% 30.00% 69.18% 407,520 36,500 444,020 3.91 12.17 4.14 Route 6 Plaza 119,658 55,849 175,507 100.00% 97.27% 99.13% 687,951 374,592 1,062,543 5.75 6.90 6.11 ------------------------------------------------------------------------------------------------------------ Total - Pennsylvania 1,302,156 481,393 1,783,549 80.78% 77.81% 79.98% 4,501,700 2,945,730 7,447,430 5.55 7.86 6.28 ------------------------------------------------------------------------------------------------------------ Total - Mid- Atlantic Region 1,302,156 481,393 1,783,549 80.78% 77.81% 79.98% 4,501,700 2,945,730 7,447,430 5.03 7.86 6.28 ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ TOTAL WHOLLY- OWNED PROPERTIES 3,271,223 1,882,160 5,153,383 89.40% 84.39% 87.57%$22,343,902 $20,326,414 $42,670,316 $8.37 $12.80 $10.22 ------------------------------------------------------------------------------------------------------------ General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced. Tenants who comprise greater than 10% of a center's GLA are considered anchor tenants for the purposes of the above table. (1) The GLA for this property includes 28,205 square feet of office space. (2) Anchor GLA includes a 157,616 square foot Target store which is not owned by the Company. This square footage has been excluded for calculating annualized base rent per square foot. (3) The Price Chopper supermarket which leases 40,618 square feet is not operating in the space, but remains obligated under the lease and continues to pay rent. 32

JOINT VENTURE PROPERTIES: (1) Midwest - -------------- Ohio - -------------- Amherst Marketplace (2) 76,737 3,200 79,937 100.00%100.00%100.00% $765,711 $33,396 $799,107 $9.98 $10.44 $10.00 Granville Centre (2) 90,047 41,496 131,543 100.00% 62.80% 88.27% 991,612 283,693 1,275,305 11.01 10.89 10.98 Sheffield Crossing 2 59,159 53,475 112,634 100.00% 88.11% 94.36% 620,578 497,852 1,118,430 10.49 10.57 10.52 ------------------------------------------------------------------------------------------------------------ Total - Midwest Region 225,943 98,171 324,114 100.00% 77.80% 93.28% 2,377,901 814,941 3,192,842 10.52 10.67 10.56 ------------------------------------------------------------------------------------------------------------ Mid-Atlantic - -------------- Delaware - -------------- Brandywine Town Center (2,3) 614,289 - 614,289 99.33% - 99.33% 8,651,434 - 8,651,434 14.18 - 14.18 Market Square Shopping Center (2) 31,375 56,385 87,760 100.00%100.00%100.00% 365,712 1,255,001 1,620,713 11.66 22.26 18.47 ------------------------------------------------------------------------------------------------------------ Total - Mid- Atlantic 645,664 56,385 702,049 99.36%100.00% 99.41% 9,017,146 1,255,001 10,272,147 14.06 22.26 14.72 ------------------------------------------------------------------------------------------------------------ New York Region - -------------- New York - -------------- Crossroads Shopping Center( 4) 191,363 119,556 310,919 100.00% 96.76% 98.75% 1,939,927 3,583,679 5,523,606 10.14 30.98 17.99 ------------------------------------------------------------------------------------------------------------ Total - Joint Venture Properties 1,062,970 274,112 1,337,082 99.61% 90.64% 97.77%$13,334,974 $5,653,621 $18,988,595 $12.59 $22.76 $14.53 ============================================================================================================ General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced. Tenants who comprise greater than 10% of a center's GLA are considered anchor tenants for the purposes of the above table. (1) In January of 2003, the Acadia Strategic Opportunity Fund ("ASOF") acquired approximately 2 million additional square feet in two separate transactions. Approximately 1 million square feet relates to a portfolio of 25 supermarket triple-net leases which is not reflected above. See Section III of this supplement for additional detail on this portfolio. (2) The Company has a 22% interest in ASOF which owns the property. (3) Does not include approximately 240,000 square feet of new space in Phase II, which will be paid for by the JV on an "earnout basis" only if, and when it is leased. (4) The Company has a 49% interest in two partnerships which, together, own the Crossroads Shopping Center. 33

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 ------------------------- Previous Quarters Year 3 months ended 3 months ended 3 months ended 3 months ended Leasing Production Notes: ended December 31, September 30, June 30, 2003 March 31, 2003 December 2003 2003 (4) 31, 2003 - ----------------------------------------------- ------------------------- -------------- -------------- -------------- New leases (1) Number of new leases commencing 32 5 5 7 15 GLA 174,798 77,736 25,921 33,745 37,396 New base rent $10.38 $5.61 $17.22 $8.82 $16.97 Previous base rent (and percentage rent) $8.38 $4.56 $12.30 $7.07 $14.79 Percentage growth in base rent 23.9% 23.0% 40.0% 24.8% 14.7% Average cost per square foot $5.92 $6.36 $10.90 $4.20 $3.12 Renewal leases Number of renewal leases commencing 53 19 16 11 7 GLA 410,193 258,967 93,244 40,456 17,526 Renewal percentage (2) 81% 86% 93% 76% 32% New base rent $9.20 $5.49 $14.51 $17.01 $17.83 Expiring base rent (and percentage rent) $8.80 $5.14 $14.38 $15.76 $17.20 Percentage growth in base rent (5) 4.6% 6.8% 0.9% 7.9% 3.7% Average cost per square foot $0.00 $0.00 $0.00 $0.00 $0.00 Total new and renewal Leases Number of renewal leases commencing 85 24 21 18 22 GLA 584,991 336,703 119,165 74,201 54,922 New base rent $9.56 $5.52 $15.10 $13.29 $17.24 Expiring base rent (and percentage rent) $8.68 $5.01 $13.93 $11.81 $15.56 Percentage growth in base rent (3) 10.1% 10.2% 8.4% 12.5% 10.8% Average cost per square foot $1.77 $1.47 $2.37 $1.91 $2.12 ------------------------- (1) Does not include leased square footage and costs related to first generation space and the Company's major redevelopment projects. (2) 1st Quarter 2003 renenwal percentage was adversely impacted by the closing of a small business which operated at three locations in the Company's portfolio totaling 25,000 square feet. Adjusting for this impact, the renewal percentage 1st Quarter was 78%. 4th Quarter 2003 excludes the Company's termination of a 48,000 square foot lease at the New Loudon redevelopment project for which a prearranged replacement tenant was secured. (3) Rent is presented on a cash basis. Rents have not been averaged over terms. Previous/expiring rent is that as of time of expiration and includes any percentage rent paid as well. New rent is that which is initially paid at commencement. (4) Restated from 1st Quarter 2003 Supplement. (5) Included in the 3rd quarter activity is the renewal of a 19,000 square foot tenant which included a 27% reduction in rent. Excluding the effect from this one tenant, the total percentage growth in base rent for renewal leases would have been 9%. 34

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Top Tenants - Ranked by Annualized Base Rent ------------------------------------------------------------------- (Combined basis - Includes pro-rata share of GLA and rent for JV properties) Wholly-Owned Acadia Strategic Crossroads Shopping Opportunity Fund Center 100% 22% 49% ----------------------------------------------------------------------- Number of stores in Annualized Annualized Annualized Retail combined Total Base Total Base Total Base Ranking Tenant portfolio GLA Rent (1) GLA Rent (1) GLA Rent (1) - ------------------------------------------------------------------------------------------------------------- 1 Shaw's 3 174,617 $2,336,880 - $- - $- 2 Kmart 6 520,221 1,870,484 49,355 277,463 3 T.J. Maxx 9 238,061 1,802,571 6,972 81,269 - - 4 Ahold (Giant, Stop & Shop) 3 178,807 1,549,540 - - - - 5 Wal-Mart 2 210,114 1,515,409 - - - - 6 Price Chopper(4) 3 168,068 1,295,727 - - - - 7 A&P/ Waldbaum's 2 63,000 920,964 - - 18,722 246,960 8 Eckerd Drug( 5) 8 89,620 1,054,296 - - - - 9 Home Depot 2 211,003 1,009,646 - - - - 10 Pathmark 1 47,773 955,460 - - - - 11 Restoration Hardware 1 12,293 929,600 - - - - 12 Acme (Albertson's) 2 76,864 918,664 - - - - 13 Redner's Supermarket 2 111,739 863,432 - - - - 14 Safeway (6) 13 - - 103,834 831,909 - - 15 Kroger( 7) 12 - - 122,388 829,065 - - 16 KB Toys 6 41,025 573,700 4,475 85,027 - - 17 Macy's 1 73,349 610,745 - - - - 18 Clearview Cinema 1 25,400 596,250 - - - - 19 JC Penney 2 72,580 591,747 - - - - 20 Walgreen's 2 23,904 589,088 - - - - -------------------------------------------------------------------------------------- Total 81 2,338,438 $19,984,203 237,669 $1,827,270 68,077 $524,423 ====================================================================================== Percentage of Total Represented by Retail Combined Tenant ----------------------------------------------- Average Annualized Total Annualized Average Gross Retail Total Base Portfolio Base Sales (per sq. Occupancy Ranking Tenant GLA Rent (1) GLA( 2) Rent (2) ft.) Cost (3) - ------------------------------------------------------------------------------------------------ 1 Shaw's 174,617 $2,336,880 3.0% 4.7% $474 * 2.6% 2 Kmart 569,576 2,147,947 9.9% 4.3% 193 3.7% 3 T.J. Maxx 245,033 1,883,840 4.3% 3.8% 277 * 5.8% Ahold (Giant, 4 Stop & Shop) 178,807 1,549,540 3.1% 3.1% 333 3.3% 5 Wal-Mart 210,114 1,515,409 3.6% 3.0% 329 * 3.2% Price Chopper( 6 4) 168,068 1,295,727 2.9% 2.6% 504 2.1% 7 A&P/ Waldbaum's 81,722 1,167,924 1.4% 2.3% 362 * 5.6% 8 Eckerd Drug( 5) 89,620 1,054,296 1.6% 2.1% 431 * 4.0% 9 Home Depot 211,003 1,009,646 3.7% 2.0% - - 10 Pathmark 47,773 955,460 0.8% 1.9% - - Restoration 11 Hardware 12,293 929,600 0.2% 1.9% 242 33.6% Acme 12 (Albertson's) 76,864 918,664 1.3% 1.8% 370 4.4% Redner's 13 Supermarket 111,739 863,432 1.9% 1.7% 249 4.3% 14 Safeway (6) 103,834 831,909 1.8% 1.7% - - 15 Kroger( 7) 122,388 829,065 2.1% 1.7% - - 16 KB Toys 45,500 658,727 0.8% 1.3% 206 9.2% 17 Macy's 73,349 610,745 1.3% 1.2% 208 6.0% 18 Clearview Cinema 25,400 596,250 0.4% 1.2% - - 19 JC Penney 72,580 591,747 1.3% 1.2% 163 6.6% 20 Walgreen's 23,904 589,088 0.4% 1.2% 333 8.1% ----------------------------------------------- Total 2,644,184 $22,335,896 45.9% 44.6% =============================================== (1) Base rents do not include percentage rents (except where noted), additional rents for property expense reimbursements, and contractual rent escalations due after December 31, 2003. (2) Represents total GLA and annualized base rent for the Company's retail properties including its pro-rata share of joint venture properties. (3) Occupancy cost = Gross rents (base rent, percentage rent and expense reimbursements) divided by sales. * indicates not all locations are required to report sales. Amount is left blank if the tenant is not required to report sales at any of the locations. (4) The tenant is currently not operating the store at the Luzerne Street Shopping Center. They are obligated, and continue, to pay annual minimum rent of $177,650 until the lease expires in April 30, 2004. (5) Subsidiary of JC Penney. The store at the Berlin Shopping Center has ceased operating but continues to pay annual rent of $29,129 pursuant to the lease which expires November 30, 2004. The Route 6 Plaza location has been sublet to Advance Auto and expires 2011. (6) Safeway has sub-leased 7 of these locations to supermarket tenants, 1 location to a non-supermarket tenant and ceased operations at one other location. Safeway is obligated to pay rent through the full term of all these leases which expire in 2009. (7) Kroger has sub-leased 4 of these locations to supermarket tenants, 2 locations to a non-supermarket tenant and ceased operations at one other location. Kroger is obligated to pay rent through the full term of all these leases which expire in 2009. 35

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Anchor Detail ----------------------------------- (excludes jont venture owned Kroger/Safeway Portfolio) - --------------------------------------------------------------------------------------------------- Annual Annual Property/Tenant Name Square Lease Base Base Rent Options/Required (Type of Center) Footage Expiration Rent PSF Notice - --------------------------------------------------------------------------------------------------- THE COMPANY CONSIDERS THOSE TENANTS WHO COMPRISE GREATER THAN 10% OF A CENTER'S GLA AS ANCHOR TENANTS (The below detail does not include space which is currently leased, but for which rent payment has not yet commenced) Retail Anchor Properties- Wholly Owned - ------------------------------------------ New York Region - ------------------------------------------ New York ----------------------------------------- Soundview Marketplace, Port Washington (7) 5 Year (12 King Kullen 48,100 9/26/2007 $562,600 $11.70 Months) (4) 5 Year (12 Clearview Cinema 25,400 5/31/2010 596,250 23.47 Months) ----------- ------------------- Property total 73,500 1,158,850 15.77 ----------- ------------------- Smithtown Shopping Center, Smithtown (4) 5 Year (12 Daffy's 16,125 1/7/2008 274,125 17.00 Months) Walgreens 9,067 12/31/2021 154,088 16.99 - ----------- ------------------- Property total 25,192 428,213 17.00 ----------- ------------------- The Branch Shopping Center, Smithtown (1) 10 Year & Waldbaum's (A&P) 63,000 11/30/2013 837,240 13.29 (1) 5 Year ----------- ------------------- Property Total: 63,000 920,964 14.62 ----------- ------------------- New Loudon Center, Latham (4) 5 Year (12 Bon Ton 65,365 2/1/2014 261,460 4.00 Months) (1) 5 Year (12 Marshalls (TJX) 26,015 1/31/2004 104,060 4.00 Months) (4) 5 Year (12 Price Chopper 77,450 5/31/2015 760,577 9.82 Months) ----------- ------------------- Property total 168,830 1,126,097 6.67 ----------- ------------------- Pacesetter Park Shopping Center, Pomona Stop & Shop (Ahold) 52,052 8/31/2020 333,135 6.40 (2) 10 Year ----------- ------------------- Property total 52,052 333,135 6.40 ----------- ------------------- New Jersey ----------------------------------------- Elmwood Park Shopping Center, Elmwood Park (8) 5 Year (12 Walgreens 14,837 5/31/2022 435,000 29.32 Months) (7) 5 Year (12 Pathmark 47,773 11/30/2017 955,460 20.00 Months) ----------- ------------------- Property total 62,610 1,390,460 22.21 ----------- ------------------- Marketplace of Absecon, Absecon (4) 5 Year (6 Eckerd Drug (JC Penney) 13,207 8/30/2020 329,310 24.93 Months) (8) 5 Year (12 Acme Markets (Albertson) 44,824 4/30/2015 598,264 13.35 Months) ----------- ------------------- Property total 58,031 927,574 15.98 ----------- ------------------- Berlin Shopping Center, Berlin (2) 5 Year (6 Acme Markets (Albertson) 32,040 4/30/2005 320,400 10.00 Months) (4) 5 Year (6 Kmart 95,810 11/30/2004 299,000 3.12 Months) ----------- ------------------- Property total 127,850 619,400 4.84 ----------- ------------------- Ledgewood Mall, Ledgewood (Enclosed Mall) (4) 5 Year (6 Circuit City 33,294 1/31/2020 449,469 13.50 Months) (4) 5 Year (6 Marshalls (TJX) 27,228 1/31/2007 326,736 12.00 Months) (6) 5 Year (15 The Sports Authority 52,205 5/31/2007 225,000 4.31 Months) Macy's Department Store (Federated) (4) 5 Year (6 (1) 61,900 1/31/2005 553,500 8.94 Months) (6) 5 Year (6 Wal*Mart 120,570 3/31/2019 888,601 7.37 Months) ----------- ------------------- Property total 295,197 2,443,306 8.28 ----------- ------------------- Total: New York Region 926,262 9,347,999 10.09 ----------- ------------------- (1) The tenant has additional expansion space bringing the total space to 74,815 s.f. with total rents of $618,075. Retail Anchor Properties- Wholly Owned (continued) - ----------------------------------------------------- New England - ------------------------------------------ Connecticut ----------------------------------------- Town Line Plaza, Rocky Hill Wal*Mart( 1) 97,300 - $- $- REA Agreement (7) 5 Year (6 Super Stop & Shop (Ahold) 64,665 11/30/2023 937,000 14.49 Months) ----------- ------------------- Property total 161,965 937,000 11.29 ----------- ------------------- 239 Greenwich Ave., Greenwich Chico's Fashion 4,541 1/31/2010 324,682 71.50 (2) 5 Years (2) 5 Years (6 Restoration Hardware 12,293 4/30/2015 929,600 75.62 Months) ----------- ------------------- Property total 16,834 1,254,282 74.51 ----------- ------------------- Massachusetts ----------------------------------------- Methuen Shopping Center, Methuen Demoulas Super Markets 30,460 1/31/2005 109,656 3.60 (2) 5 Year (8) 5 Year (6 Wal*Mart 89,544 10/23/2011 626,808 7.00 Months) ----------- ------------------- Property total 120,004 736,464 6.14 ----------- ------------------- Crescent Plaza, Brockton (7) 5 Year (1 Home Depot 106,760 10/31/2021 602,126 5.64 Year) (6) 5 Year (6 Shaw's (J Sainsbury plc) 50,225 12/31/2012 516,960 10.29 Months) ----------- ------------------- Property total 156,985 1,119,086 7.13 ----------- ------------------- Rhode Island ----------------------------------------- Walnut Hill Plaza, Woonsocket (5) 5 Year (12 Sears 60,700 8/31/2008 258,000 4.25 Months) (6) 5 Year (9 Shaw's (J Sainsbury plc) 52,392 12/31/2013 523,920 10.00 Months) ----------- ------------------- Property total 113,092 781,920 6.91 ----------- ------------------- Vermont ----------------------------------------- Gateway Shopping Center (1) 10 Yr., (3) 5 Yr. & (1) 4 Shaw's (J Sainsbury plc) 72,000 3/31/2024 1,296,000 18.00 Yr. ----------- ------------------- Property total 72,000 1,296,000 18.00 ----------- ------------------- Total : New England 640,880 6,124,752 11.27 ----------- ------------------- Midwest - ------- Illinois ----------------------------------------- Hobson West Plaza, Naperville (5) 5 Year (6 Bobak's Market and Restaurant 42,037 11/30/2007 170,000 4.04 Months) ----------- ------------------- Property total 42,037 170,000 4.04 ----------- ------------------- Indiana ----------------------------------------- Merrillville Plaza, Merrillville (2) 5 Year (12 JC Penney 50,000 1/31/2008 495,000 9.90 Months) (4) 5 Year (6 OfficeMax 26,157 7/31/2008 222,335 8.50 Months) (1) 5 Year (6 TJ Maxx (TJX) 25,200 1/31/2009 182,700 7.25 Months) ----------- ------------------- Property total 101,357 900,035 8.88 ----------- ------------------- Michigan ----------------------------------------- Bloomfield Town Square, Bloomfield Hills HomeGoods (TJX) 39,646 5/31/2010 307,257 7.75 (3) 5 Year (3) 5 Year (6 Marshalls (TJX) 28,324 9/30/2011 226,592 8.00 Months) (1) 5 Year (6 TJ Maxx (TJX) 36,000 1/31/2009 234,000 6.50 Months) ----------- ------------------- Property total 103,970 767,849 7.39 ----------- ------------------- Ohio ------ Mad River Station, Dayton Babies 'R' Us 33,147 2/28/2005 243,630 7.35 (3) 5 Year (1) 5 Year (6 Office Depot 25,038 8/31/2005 287,937 11.50 Months) ----------- ------------------- Property total 58,185 531,567 9.14 ----------- ------------------- Total: Midwest 305,549 2,369,451 7.75 ----------- ------------------- (1) This space is contiguous to the Company's property and is not owned by the Company. Retail Anchor Properties- Wholly Owned (continued) - ----------------------------------------------------- Mid-Atlantic - ------------------------------------------ Pennsylvania ----------------------------------------- Abington Town Center, Abington (2) 5 Year (6 TJ Maxx (TJX) 27,000 11/30/2010 $256,500 $9.50 Months) Condominium Target( 1) 157,616 - - - Agreement ----------- ------------------- Property total 184,616 256,500 9.50 ----------- ------------------- Blackman Plaza, Wilkes-Barre (8) 5 Year (12 Kmart 104,956 10/31/2009 204,664 1.95 Months) ----------- ------------------- Property total 104,956 204,664 1.95 ----------- ------------------- Bradford Towne Centre, Towanda (10) 5 Year (6 Kmart 94,841 3/31/2019 474,205 5.00 Months) (2) 5 Year (6 P & C Foods (Penn Traffic) 51,658 9/30/2014 413,264 8.00 Months) ----------- ------------------- Property total 146,499 887,469 6.06 ----------- ------------------- East End Center, Wilkes-Barre (4) 5 Year (6 Price Chopper 50,000 4/30/2008 357,500 7.15 Months) ----------- ------------------- Property total 50,000 357,500 7.15 ----------- ------------------- Greenridge Plaza, Scranton (6) 5 Year Giant Food Stores (Ahold) 62,090 4/30/2021 279,405 4.50 (Auto) ----------- ------------------- Property total 62,090 279,405 4.50 ----------- ------------------- Luzerne Street Shopping Center, Scranton (2) 5 Year (6 Eckerd Drug (JC Penney) 14,000 4/30/2009 94,500 6.75 Months) (4) 5 Year (12 Price Chopper( 2) 40,618 4/30/2004 177,650 4.37 Months) ----------- ------------------- Property total 54,618 272,150 4.98 ----------- ------------------- Mark Plaza, Edwardsville (9) 5 Year (12 Kmart 104,956 10/31/2009 204,664 1.95 Months) (2) 5 Year (6 Redner's Market 52,639 5/31/2018 447,432 8.50 Months) ----------- ------------------- Property total 157,595 652,096 4.14 ----------- ------------------- Pittston Plaza, Pittston (2) 5 Year (6 Eckerd Drugs 8,468 6/30/2006 80,446 9.50 Months) Redner's Market 59,100 12/31/2018 416,000 7.04 (2) 5 Year ----------- ------------------- Property total 67,568 496,446 7.35 ----------- ------------------- Plaza 422, Lebanon (6) 5 Year (12 Home Depot 104,243 12/31/2028 407,520 3.91 Months) ----------- ------------------- Property total 104,243 407,520 3.91 ----------- ------------------- Route 6 Mall, Honesdale (10) 5 Year Kmart 119,658 4/30/2020 687,950 5.75 (Automatic) ----------- ------------------- Property total 119,658 687,950 5.75 ----------- ------------------- Total : Mid-Atlantic 1,051,843 4,501,700 5.03 ----------- ------------------- Total: Retail Anchor Properties - Wholly Owned Properties 2,924,534 $22,343,902 $8.37 =========== =================== (1) Target owns the portion of the main building (157,616 square feet) that their store is located in. (2) This tenant has ceased operations at this location, however continues to pay rent pursuant to the lease. Joint Venture Properties - ------------------------------------------ New York Region - ------------------------------------------ New York ----------------------------------------- Crossroads Shopping Center, White Plains (5) 5 Year (9 Kmart 100,725 1/31/2012 $566,250 $5.62 Months) (5) 5 Year (9 Waldbaum's (A&P) 38,208 12/31/2007 504,000 13.19 Months) (2) 5 Year (18 B. Dalton (Barnes & Noble) 12,430 5/28/2012 345,927 27.83 Months) Pay Half 15,000 1/31/2018 330,000 22.00 - (2) 5 Year (12 Modell's 25,000 2/28/2009 193,750 7.75 Months) ----------- ------------------- Property total 191,363 1,939,927 10.14 ----------- ------------------- Total : New York Region 191,363 1,939,927 10.14 ----------- ------------------- Mid-Atlantic Region - ------------------------------------------ Delaware ----------------------------------------- Brandywine Town Center (3) 5 Year (9 Annie Sez (Big M) 13,324 1/31/2007 266,500 20.00 Months) (2) 5 Year (9 Kay-Bee Toys (2) 20,138 7/31/2012 382,622 19.00 Months) (3) 5 Year (9 Michaels 24,876 2/28/2011 547,272 22.00 Months) (1) 5 Year (6 Old Navy (The Gap) 24,631 4/30/2011 541,872 22.00 Months) (2) 5 Year Petsmart 23,963 6/30/2017 455,297 19.00 (Automatic) (2) 5 Year (9 Thomasville Furniture 18,893 11/30/2011 458,533 24.27 Months) (3) 5 Year (6 Bed, Bath & Beyond 50,977 1/31/2014 868,426 17.04 Months) (3) 5 Year (6 Dick's Sporting Goods 50,000 5/31/2013 725,156 14.50 Months) (6) 5 Year Lowe's Home Centers 140,000 8/31/2018 1,925,000 13.75 (Automatic) (4) 5 Year (4 Regal Cinemas 65,641 6/1/2017 821,825 12.52 Months) (1) 5 Year (9 Transunion Settlement 39,714 3/31/2013 858,930 21.63 Months) (5) 10 Year (12 Target 138,000 1/31/2018 800,000 5.80 Months) ----------- ------------------- Property total 610,157 8,651,433 14.18 ----------- ------------------- Market Square Shopping Center (2) 5 Year (9 TJ Maxx (TJX) 31,375 1/31/2006 365,713 11.66 Months) ----------- ------------------- Total : Mid-Atlantic Region 641,532 9,017,146 14.06 ----------- ------------------- Midwest Region - ------------------------------------------ Ohio ------ Amherst Marketplace (4) 5 Year (6 Giant Eagle 66,237 9/3/2021 630,576 9.52 Months) (3) 5 Year (6 CVS( 1) 10,500 3/31/2012 135,135 12.87 Months) ----------- ------------------- Property total 76,737 765,711 9.98 ----------- ------------------- Granville Centre Big Bear Supermarket (Penn Traffic) (2) 55,096 1/28/2020 589,527 10.70 (6) 5 Year California Fitness 34,951 1/31/2017 402,085 11.50 (2) 5 Year ----------- ------------------- Property total 90,047 991,612 11.01 ----------- ------------------- Sheffield Crossing (4) 5 Year (6 Giant Eagle 59,159 5/31/2022 620,578 10.49 Months) ----------- ------------------- Property total 59,159 620,578 10.49 ----------- ------------------- Total: Midwest 225,943 2,377,901 10.52 ----------- ------------------- Total: Joint Venture Properties 1,058,838 $13,334,974 $12.59 =========== =================== (1) This lease has been assumed by Giant Eagle which is in the process of expanding their store. (2) This tenant, which is currently operating under Chapter 11 Bankruptcy, has ceased operations at this location and the Company anticipates the tenant will reject the lease. 36

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Anchor Lease Expirations - Next 3 Years ---------------------------------------------------------- - ------------------------- ---------------------- --------- ------------- ----------- -------- ----------- Gross Leased Area Annualized Base Rent ----------------------- -------------------------------- Percent Percent of Average Square of all per Center Anchor footage all anchors Amount anchors Sq. Ft. - ------------------------- ---------------------- --------- ------------- ----------- -------- ----------- 2004 Luzerne Street Shopping Center Price Chopper( 1) 40,618 1.52% $177,650 0.80% 4.37 Berlin Shopping Center K-Mart 95,810 3.59% 299,000 1.34% 3.12 --------- ------------- ----------- -------- ----------- Total 2004 136,428 5.11% 476,650 2.14% 3.49 --------- ------------- ----------- -------- ----------- 2005 Methuen Shopping Center Demoulas Supermarket 30,460 1.14% 109,656 0.49% 3.60 Ledgewood Mall Macy's (2) 61,900 2.32% 553,500 2.48% 8.94 Mad River Shopping Center Babies 'R' Us 33,147 1.24% 243,630 1.09% 7.35 Berlin Shopping Center Acme Markets 32,040 1.20% 320,400 1.43% 10.00 Mad River Shopping Center Office Depot 25,038 0.94% 287,937 1.29% 11.50 --------- ------------- ----------- -------- ----------- Total 2005 182,585 6.84% 1,515,123 6.77% 8.30 --------- ------------- ----------- -------- ----------- 2006 Pittston Plaza Eckerd Drug 8,468 0.32% 80,446 0.36% 9.50 --------- ------------- ----------- -------- ----------- Total - Next 3 Years $327,481 12.27% $2,072,219 9.27% $6.33 ========= ============= =========== ======== =========== (1) This tenant has ceased operations at this location, however continues to pay rent pursuant to the lease. (2) The tenant has additional expansion space bringing the total space to 74,815 s.f. with total rents of $618,075. 37

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Lease Expirations ----------------------------------------- ---------------------------------------------------------------------- Gross Leased Area Annualized Base Rent -------------------- ------------------------------ Number of Percent Percent Average Leases Square of of per Expiring Footage Total Amount Total Sq. Ft. ---------------------------------------------------------------------- Wholly-Owned Propeties Anchor Tenant Expirations 1 104,243 3.90% 407,520 1.82% 2004 2 136,428 5.11% 476,650 2.13% 3.49 2005 5 182,585 6.84% 1,515,123 6.78% 8.30 2006 1 8,468 0.32% 80,446 0.36% 9.50 2007 4 169,570 6.35% 1,284,336 5.75% 7.57 2008 5 202,982 7.60% 1,606,960 7.19% 7.92 2009 5 285,112 10.68% 920,528 4.12% 3.23 2010 4 96,587 3.62% 1,484,688 6.64% 15.37 2011 2 117,868 4.42% 853,400 3.82% 7.24 2012 1 50,225 1.88% 516,960 2.31% 10.29 2013 2 115,392 4.32% 1,444,884 6.47% 12.52 2014 3 143,038 5.36% 778,784 3.49% 5.44 2015 3 134,567 5.04% 2,288,441 10.25% 17.01 2017 2 47,773 1.79% 955,460 4.28% 20.00 2018 2 111,739 4.19% 863,432 3.86% 7.73 2019 2 215,411 8.07% 1,362,806 6.10% 6.33 2020 4 218,211 8.17% 1,799,865 8.06% 8.25 2021 3 177,917 6.66% 1,035,619 4.63% 5.82 2022 1 79,502 2.98% 1,372,000 6.14% 17.26 2024 1 72,000 2.70% 1,296,000 5.80% 18.00 -------------------------------- ------------------------------ Total Occupied 53 2,669,618 100.00% $22,343,902 100.00% $8.37 ------------------------------------------- Anchor GLA Owned by Tenants 254,916 Total Vacant 346,689 ------------ Total Square Feet 3,271,223 ============ ------------------------------------------- 38

---------------------------------------------------------------------- Gross Leased Area Annualized Base Rent -------------------- ------------------------------ Number of Percent Percent Average Leases Square of of per Expiring Footage Total Amount Total Sq. Ft. ---------------------------------------------------------------------- Wholly-Owned Propeties Shop Tenant Expirations Month to Month 11 17,399 1.10% $223,069 1.10% $12.82 2004 52 199,788 12.58% 2,034,610 10.01% 10.18 2005 49 251,729 15.85% 2,887,459 14.21% 11.47 2006 53 190,568 12.00% 2,366,524 11.64% 12.42 2007 52 207,060 13.04% 2,896,401 14.25% 13.99 2008 52 220,749 13.89% 3,087,513 15.18% 13.99 2009 34 174,280 10.97% 2,433,236 11.97% 13.96 2010 15 115,134 7.25% 941,336 4.63% 8.18 2011 16 77,149 4.86% 1,266,372 6.23% 16.41 2012 7 22,549 1.42% 471,259 2.32% 20.90 2013 13 48,654 3.06% 866,940 4.27% 17.82 2014 3 27,498 1.73% 193,148 0.95% 7.02 2015 2 15,616 0.98% 290,532 1.43% 18.60 2020 2 17,945 1.13% 326,120 1.60% 18.17 2022 1 2,205 0.14% 41,895 0.21% 19.00 -------------------------------- ------------------------------ Total Occupied 362 1,588,323 100.00% $20,326,414 100.00% $12.80 ------------------------------------------- Total Vacant 293,837 ------------ Total Square Feet 1,882,160 ============ ------------------------------------------- 39

---------------------------------------------------------------------- Gross Leased Area Annualized Base Rent -------------------- ------------------------------ Number of Percent Percent Average Leases Square of of per Expiring Footage Total Amount Total Sq. Ft. ---------------------------------------------------------------------- Wholly-Owned Propeties Total Tenant Expirations Month to Month 11 17,399 0.41% $223,069 0.52% $12.82 2003 1 104,243 2.45% 407,520 0.96% 3.91 2004 54 336,216 7.90% 2,511,260 5.89% 7.47 2005 54 434,314 10.20% 4,402,582 10.32% 10.14 2006 54 199,036 4.67% 2,446,970 5.73% 12.29 2007 56 376,630 8.85% 4,180,737 9.80% 11.10 2008 57 423,731 9.94% 4,694,473 10.98% 11.08 2009 39 459,392 10.79% 3,353,764 7.86% 7.30 2010 19 211,721 4.97% 2,426,024 5.69% 11.46 2011 18 195,017 4.58% 2,119,772 4.97% 10.87 2012 8 72,774 1.71% 988,219 2.32% 13.58 2013 15 164,046 3.85% 2,311,824 5.42% 14.09 2014 6 170,536 4.01% 971,932 2.28% 5.70 2015 5 150,183 3.53% 2,578,973 6.04% 17.17 2017 2 47,773 1.12% 955,460 2.24% 20.00 2018 2 111,739 2.62% 863,432 2.02% 7.73 2019 2 215,411 5.06% 1,362,806 3.19% 6.33 2020 6 236,156 5.55% 2,125,985 4.98% 9.00 2021 3 177,917 4.18% 1,035,619 2.43% 5.82 2022 2 81,707 1.92% 1,413,895 3.31% 17.30 2024 1 72,000 1.69% 1,296,000 3.04% 18.00 -------------------------------- ------------------------------ Total Occupied 415 4,257,941 100.00% $42,670,316 99.99% $10.22 ------------------------------------------- Anchor GLA Owned by Tenants 254,916 Total Vacant 640,526 ------------ Total Square Feet 5,153,383 ============ ------------------------------------------- 40

---------------------------------------------------------------------- Gross Leased Area Annualized Base Rent -------------------- ------------------------------ Number of Percent Percent Average Leases Square of of per Expiring Footage Total Amount Total Sq. Ft. ---------------------------------------------------------------------- Joint Venture Properties (excludes jont venture owned Kroger/Safeway Portfolio) Anchor Tenant Expirations 2006 1 31,375 2.96% 365,712 2.74% 11.66 2007 2 51,532 4.87% 770,500 5.78% 14.95 2009 1 25,000 2.36% 193,750 1.45% 7.75 2011 3 68,400 6.46% 1,547,677 11.61% 22.63 2012 4 143,793 13.58% 1,429,934 10.72% 9.94 2013 2 89,714 8.47% 1,584,086 11.88% 17.66 2014 2 50,977 4.81% 868,426 6.51% 17.04 2017 3 124,555 11.76% 1,679,208 12.59% 13.48 2018 3 293,000 27.68% 3,055,000 22.92% 10.43 2020 1 55,096 5.20% 589,527 4.42% 10.70 2021 1 66,237 6.26% 630,576 4.73% 9.52 2022 1 59,159 5.59% 620,578 4.65% 10.49 -------------------------------- ------------------------------ Total Occupied 24 1,058,838 100.00% $13,334,974 100.00% $12.59 ------------------------------------------- Total Vacant 4,132 ------------ Total Square Feet 1,062,970 ============ ------------------------------------------- 41

---------------------------------------------------------------------- Gross Leased Area Annualized Base Rent -------------------- ------------------------------ Number of Percent Percent Average Leases Square of of per Expiring Footage Total Amount Total Sq. Ft. ---------------------------------------------------------------------- Joint Venture Properties Shop Tenant Expirations Month to Month 3 10,200 4.11% $79,874 1.41% $7.83 2004 11 55,238 22.23% 1,474,422 26.10% 26.69 2005 7 20,555 8.27% 511,542 9.05% 24.89 2006 8 20,444 8.23% 394,048 6.97% 19.27 2007 10 26,369 10.61% 687,286 12.16% 26.06 2008 11 37,705 15.18% 927,378 16.40% 24.60 2009 3 5,362 2.16% 172,102 3.04% 32.10 2011 2 4,265 1.72% 97,787 1.73% 22.93 2012 3 15,750 6.34% 322,073 5.70% 20.45 2013 5 27,745 11.17% 423,082 7.48% 15.25 2014 1 8,250 3.32% 284,625 5.03% 34.50 2018 1 6,957 2.80% 50,004 0.88% 7.19 2019 1 3,141 1.26% 42,000 0.74% 13.37 2022 1 6,462 2.60% 187,398 3.31% 29.00 -------------------------------- ------------------------------ Total Occupied 67 248,443 100.00% $5,653,621 100.00% $22.76 ------------------------------------------- Total Vacant 25,669 ------------ Total Square Feet 274,112 ============ ------------------------------------------- 42

---------------------------------------------------------------------- Gross Leased Area Annualized Base Rent -------------------- ------------------------------ Number of Percent Percent Average Leases Square of of per Expiring Footage Total Amount Total Sq. Ft. ---------------------------------------------------------------------- Joint Venture Properties Total Tenant Expirations Month to Month 3 10,200 0.78% $79,874 0.42% $7.83 2004 11 55,238 4.23% 1,474,422 7.76% 26.69 2005 7 20,555 1.57% 511,542 2.69% 24.89 2006 9 51,819 3.96% 759,760 4.00% 14.66 2007 12 77,901 5.96% 1,457,786 7.68% 18.71 2008 11 37,705 2.88% 927,378 4.88% 24.60 2009 4 30,362 2.32% 365,852 1.93% 12.05 2011 5 72,665 5.56% 1,645,464 8.67% 22.64 2012 7 159,543 12.20% 1,752,007 9.23% 10.98 2013 7 117,459 8.98% 2,007,168 10.57% 17.09 2014 3 59,227 4.53% 1,153,051 6.07% 19.47 2017 3 124,555 9.53% 1,679,208 8.84% 13.48 2018 4 299,957 22.96% 3,105,004 16.36% 10.35 2019 1 3,141 0.24% 42,000 0.22% 13.37 2020 1 55,096 4.21% 589,527 3.10% 10.70 2021 1 66,237 5.07% 630,576 3.32% 9.52 2022 2 65,621 5.02% 807,976 4.26% 12.31 -------------------------------- ------------------------------ Total Occupied 91 1,307,281 100.00% $18,988,595 100.00% $14.53 ------------------------------------------- Total Vacant 29,801 ------------ Total Square Feet 1,337,082 ============ 43

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Property Demographics - ---------------------------------------------------------------------- - ---------------------------------------------------------------------- Trade Total Area Base Total Property / JV Ownership % City State (Miles) Rent GLA - ----------------------------------------------------------------------------------------------- Brandywine Town Center & Mkt Sq./22.22% Wilmington DE 3 10,272,147 702,049 Elmwood Park Shopping Ctr. Elmwood Park NJ 3 3,274,452 149,676 Abington Towne Center Abington PA 3 798,975 216,542 Granville Center / 22.22% Columbus OH 3 1,275,305 131,543 Hobson West Plaza Naperville IL 3 1,143,138 99,044 Methuen Shopping Ctr. Methuen MA 5 828,772 130,238 Crossroads Shopping Ctr. / 49% White Plains NY 3 5,523,606 310,919 The Branch Plaza Smithtown NY 3 2,232,624 125,640 Village Commons Shopping Ctr. Smithtown NY 3 2,012,740 87,285 Bloomfield Town Square Bloomfield Hills MI 5 1,779,608 217,499 Crescent Plaza Brockton MA 3 1,692,015 218,277 239 Greenwich Avenue Greenwich CT 5 1,254,282 16,834 Soundview Marketplace Port Washington NY 3 2,633,577 182,367 Town Line Plaza Rocky Hill CT 3 1,555,061 206,178 New Loudon Center Latham NY 5 1,526,987 254,332 Pacesetter Park Shopping Ctr. Pomona NY 3 881,762 96,252 Mad River Station Dayton OH 5 1,487,953 154,325 Greenridge Plaza Scranton PA 3 668,852 198,393 Mark Plaza Edwardsville PA 5 949,127 214,036 Luzerne Street Shopping Ctr. Scranton PA 3 272,150 57,988 East End Center Wilkes-Barre PA 5 969,570 308,283 Blackman Plaza Wilkes-Barre PA 5 261,504 121,341 Sheffield Crossing / 22.22% Sheffield OH 3 1,118,430 112,634 Amherst Marketplace / 22.22% Amherst OH 3 799,107 79,937 Walnut Hill Plaza Woonsocket RI 5 2,231,530 285,773 Ledgewood Mall Ledgewood NJ 5 4,251,099 515,980 Berlin Shopping Ctr. Berlin NJ 3 802,846 188,717 Merrillville Plaza Hobart IN 5 2,590,146 235,603 The Gateway Shopping Ctr. So. Burlington VT 3 1,544,422 100,563 Marketplace of Absecon Absecon NJ 3 1,499,872 105,251 Pittston Plaza Pittston PA 3 599,728 79,494 Plaza 422 Lebanon PA 3 444,020 155,026 Route 6 Plaza Honesdale PA 5 1,062,543 175,507 Bradford Towne Centre Towanda PA 10 1,420,961 256,939 - ----------------------------------------------------------------------------------------------- 61,658,911 6,490,465 --------------------- 3-Mile Radius ------------------------------------------------ # Total Households Median HH Avg. HH Property / JV Ownership % Pop. ("HH") Income Income - -------------------------------------------------------------------------------------------- Brandywine Town Center & Mkt Sq./22.22% 44,176 17,490 $81,775 $102,045 Elmwood Park Shopping Ctr. 259,975 86,557 $51,206 $61,319 Abington Towne Center 93,360 36,608 $65,173 $80,281 Granville Center / 22.22% 114,683 51,558 $46,830 $54,096 Hobson West Plaza 94,003 32,812 $96,226 $111,843 Methuen Shopping Ctr. 91,936 33,202 $40,495 $50,182 Crossroads Shopping Ctr. / 49% 104,435 40,046 $76,844 $97,936 The Branch Plaza 67,386 22,781 $86,500 $98,961 Village Commons Shopping Ctr. 67,862 22,859 $87,048 $99,163 Bloomfield Town Square 62,541 24,356 $72,545 $102,892 Crescent Plaza 99,840 35,462 $45,142 $52,972 239 Greenwich Avenue 66,867 25,228 $94,987 $147,352 Soundview Marketplace 46,380 16,462 $113,631 $167,275 Town Line Plaza 45,242 19,007 $74,547 $64,079 New Loudon Center 41,508 16,246 $55,189 $65,561 Pacesetter Park Shopping Ctr. 25,894 8,469 $88,331 $107,734 Mad River Station 59,585 26,299 $56,285 $67,437 Greenridge Plaza 88,472 37,357 $32,243 $41,495 Mark Plaza 89,240 38,696 $31,389 $39,511 Luzerne Street Shopping Ctr. 66,687 27,708 $30,436 $39,697 East End Center 46,209 19,469 $32,717 $41,505 Blackman Plaza 61,029 26,168 $30,784 $39,130 Sheffield Crossing / 22.22% 35,452 14,048 $45,762 $54,608 Amherst Marketplace / 22.22% 52,542 21,012 $44,259 $53,044 Walnut Hill Plaza 59,961 24,256 $41,751 $49,362 Ledgewood Mall 34,631 12,915 $77,309 $88,598 Berlin Shopping Ctr. 31,313 11,105 $63,424 $74,188 Merrillville Plaza 18,924 7,566 $54,952 $62,686 The Gateway Shopping Ctr. 46,105 19,252 $43,524 $53,733 Marketplace of Absecon 30,277 10,476 $51,028 $60,415 Pittston Plaza 40,640 17,537 $36,785 $45,214 Plaza 422 44,416 18,047 $36,458 $43,830 Route 6 Plaza 7,395 3,155 $32,818 $42,657 Bradford Towne Centre 5,506 2,344 $38,141 $46,212 - ------------------------------------------------------------------------------------------ ------------------------------------------------ 59,520 23,082 $59,329 $72,273 ------------------------------------------------ ------------------------------------------------ 68,567 25,372 $64,712 $79,614 ------------------------------------------------ 5-Mile Radius ----------------------------------------------- Total # Median HH Avg. HH Property / JV Ownership % Pop. HH Income Income - ------------------------------------------------------------------------------------------ Brandywine Town Center & Mkt Sq./22.22% 174,614 70,565 $58,573 $76,159 Elmwood Park Shopping Ctr. 612,593 212,140 $56,661 $68,670 Abington Towne Center 306,979 120,242 $58,804 $71,480 Granville Center / 22.22% 267,818 116,119 $52,178 $61,015 Hobson West Plaza 264,472 93,258 $83,440 $96,333 Methuen Shopping Ctr. 198,133 73,801 $46,809 $56,761 Crossroads Shopping Ctr. / 49% 203,644 75,012 $91,027 $122,223 The Branch Plaza 198,575 64,367 $78,576 $90,006 Village Commons Shopping Ctr. 197,398 63,981 $79,019 $90,486 Bloomfield Town Square 166,366 63,987 $77,660 $106,428 Crescent Plaza 168,024 60,373 $50,116 $58,235 239 Greenwich Avenue 141,499 51,663 $92,448 $141,180 Soundview Marketplace 143,395 52,155 $97,968 $139,340 Town Line Plaza 151,760 60,763 $56,343 $66,119 New Loudon Center 152,497 63,018 $46,569 $56,589 Pacesetter Park Shopping Ctr. 128,097 37,540 $71,637 $88,824 Mad River Station 130,304 55,583 $58,803 $72,512 Greenridge Plaza 126,562 53,080 $34,803 $44,679 Mark Plaza 124,722 53,562 $34,002 $42,614 Luzerne Street Shopping Ctr. 120,838 50,392 $34,650 $44,561 East End Center 114,991 49,565 $33,939 $42,506 Blackman Plaza 116,682 50,274 $33,089 $41,383 Sheffield Crossing / 22.22% 121,322 47,230 $45,775 $54,558 Amherst Marketplace / 22.22% 97,181 38,366 $40,461 $49,765 Walnut Hill Plaza 94,203 37,077 $48,793 $57,263 Ledgewood Mall 105,973 38,609 $75,159 $86,345 Berlin Shopping Ctr. 94,688 34,457 $60,908 $70,450 Merrillville Plaza 84,180 31,820 $52,697 $60,610 The Gateway Shopping Ctr. 68,034 27,816 $45,474 $56,025 Marketplace of Absecon 68,488 23,943 $50,386 $59,385 Pittston Plaza 72,326 31,010 $38,049 $46,790 Plaza 422 61,325 24,358 $40,383 $48,126 Route 6 Plaza 11,704 4,849 $33,779 $43,036 Bradford Towne Centre 8,813 3,627 $38,371 $46,994 - ----------------------------------------------------------------------------------------- ----------------------------------------------- 147,934 56,885 $56,384 $69,765 ----------------------------------------------- ----------------------------------------------- 169,089 62,189 $62,400 $77,620 ----------------------------------------------- 10-Mile Radius ----------------------------------------------- Total # Median HH Avg. HH Property / JV Ownership % Pop. HH Income Income - ------------------------------------------------------------------------------------------ Brandywine Town Center & Mkt Sq./22.22% - - $- $- Elmwood Park Shopping Ctr. - - - - Abington Towne Center - - - - Granville Center / 22.22% - - - - Hobson West Plaza - - - - Methuen Shopping Ctr. - - - - Crossroads Shopping Ctr. / 49% - - - - The Branch Plaza - - - - Village Commons Shopping Ctr. - - - - Bloomfield Town Square - - - - Crescent Plaza - - - - 239 Greenwich Avenue - - - - Soundview Marketplace - - - - Town Line Plaza - - - - New Loudon Center - - - - Pacesetter Park Shopping Ctr. - - - - Mad River Station - - - - Greenridge Plaza - - - - Mark Plaza - - - - Luzerne Street Shopping Ctr. - - - - East End Center - - - - Blackman Plaza - - - - Sheffield Crossing / 22.22% - - - - Amherst Marketplace / 22.22% - - - - Walnut Hill Plaza - - - - Ledgewood Mall 278,307 100,409 $84,897 $99,923 Berlin Shopping Ctr. - - - - Merrillville Plaza 344,569 130,349 $48,747 $57,323 The Gateway Shopping Ctr. - - - - Marketplace of Absecon - - - - Pittston Plaza - - - - Plaza 422 - - - - Route 6 Plaza - - - - Bradford Towne Centre 17,398 6,799 $38,245 $46,336 - ----------------------------------------------------------------------------------------- ----------------------------------------------- 227,315 83,555 $64,566 $76,319 ----------------------------------------------- ----------------------------------------------- 254,208 93,696 $65,541 $77,352 ----------------------------------------------- Property / JV Ownership % County MSA - ------------------------------------------------------------------------------------------------- Brandywine Town Center & Mkt Sq./22.22% Bergen Wilmington-Newark, DE Elmwood Park Shopping Ctr. Bergen Bergen-Passaic, NJ Abington Towne Center Bucks Philadelphia, PA Granville Center / 22.22% Franklin Columbus, OH Hobson West Plaza DuPage Chicago, IL Methuen Shopping Ctr. Essex Boston, MA-NH Crossroads Shopping Ctr. / 49% Westchester New York, NY The Branch Plaza Suffolk Nassau-Suffolk, NY Village Commons Shopping Ctr. Suffolk Nassau-Suffolk, NY Bloomfield Town Square Oakland Detroit, MI Crescent Plaza Plymouth Boston, MA-NH 239 Greenwich Avenue Fairfield New Haven-Meriden, CT Soundview Marketplace Nassau Nassau-Suffolk, NY Town Line Plaza Hartford Hartford, CT New Loudon Center Albany Albany-Schenectady-Troy, NY Pacesetter Park Shopping Ctr. Rockland New York, NY Mad River Station Montgomery Dayton-Springfield, OH Greenridge Plaza Lackawanna Scranton-Wilkes Barre-Hazelton, PA Mark Plaza Luzerne Scranton-Wilkes Barre-Hazelton, PA Luzerne Street Shopping Ctr. Lackawanna Scranton-Wilkes Barre-Hazelton, PA East End Center Luzerne Scranton-Wilkes Barre-Hazelton, PA Blackman Plaza Luzerne Scranton-Wilkes Barre-Hazelton, PA Sheffield Crossing / 22.22% Lorain Cleveland-Lorain-Elyria Amherst Marketplace / 22.22% Lorain Cleveland-Lorain-Elyria Walnut Hill Plaza Providence Providence-Fall River, RI Ledgewood Mall Morris Newark, NJ Berlin Shopping Ctr. Burlington Philadelphia, PA, NJ Merrillville Plaza Lake Gary, IN The Gateway Shopping Ctr. Chittenden Burlington, VT Marketplace of Absecon Atlantic Atlantic City-Cape May, NJ Pittston Plaza Luzerne Scranton-Wilkes Barre-Hazelton, PA Plaza 422 Lebanon Harrisburg-Lebanon-Carlisle, PA Route 6 Plaza Wayne N/A Bradford Towne Centre Bradford N/A - ------------------------------------------------------------------------------------------------- 44

ANNUAL SUPPLEMENTAL DISCLOSURE DECEMBER 31, 2003 Residential (Multi-family) Properties ----------------------------------------- --------------- % Occupied % Occupied December 31, September 30, Property Location Square Feet Units 2003 2003 Occupied - ------------------------------------------------------------------------------------------------------------------------ Mid-Atlantic North Carolina - ----------------------------------------- Village Apartments Winston Salem 578,606 600 89% 89% 531 Mid-West Missouri - ----------------------------------------- Gate House, Holiday House, Tiger Village, Columbia 628,891 874 98% 97% 857 -------------------------------------------------- Colony Apartments (1) Totals 1,207,497 1,474 94% 94% 1,388 ================================================== --------------- (1) As this property has tenants associated with the University of Missouri, occupancy trends are correlated to semester sessions 45

           Acadia Realty Trust Announces Fourth Quarter and
                   Year-End 2003 Operating Results;

2003 Earnings Driven by Strong External Growth and Solid Portfolio Performance


    NEW YORK--(BUSINESS WIRE)--Feb. 17, 2004--Acadia Realty Trust
(NYSE: AKR - "Acadia" or the "Company"), a real estate investment
trust ("REIT") and owner and operator of shopping centers anchored by
grocery and value-oriented retail, today reported operating results
for the quarter and year ended December 31, 2003. All per share
amounts are on a diluted basis.

    2003 Highlights

    Quarter and year-end earnings on track

    --  Funds from operations ("FFO") per share for the quarter of
        $0.19 included charges totaling $0.04 for a non-cash charge
        associated with the redevelopment of the Town Line Plaza and
        share option-based compensation. FFO before these charges was
        consistent with guidance and represented a 20% increase over
        2002 FFO from continuing operations

    --  FFO per share for the year were $0.92, which, before the above
        charges exceeded 2003 guidance by $0.01

    --  Earnings per share for the quarter and year were $(0.04) and
        $0.27, respectively

    Portfolio occupancy up 1.3% with 10.1% rent spreads

    --  Executed new and renewal leases totaling 568,000 square feet,
        or 8% of the portfolio

    --  Town Line Plaza added to redevelopment pipeline

    --  Two former Ames centers re-anchored at average 62% base rent
        increase

    Balance sheet ratios remain strong - Dividend increased

    --  39% debt to total market capitalization

    --  3.0 to 1 fixed-charge coverage

    --  85% of debt is fixed-rate

    --  Dividend increased by 10% for fourth quarter 2003

    --  Maintained conservative dividend payout ratio for 2003 of 63%
        of FFO

    2003 earnings fueled by $0.095 FFO accretion from two portfolio
acquisitions - Future growth opportunities enhanced with new venture

    --  Brandywine Portfolio; one-million square foot value-based
        retail portfolio

    --  Kroger/Safeway Portfolio; one-million square foot supermarket
        portfolio of 25 Kroger and Safeway supermarkets

    --  Formation of new venture in 2004 with Klaff Realty, L.P. and
        Lubert-Adler Management, Inc. for investments in surplus and
        underutilized properties

    Fourth Quarter and Year-End Operating Results - In-Line with
Guidance

    Fourth quarter FFO was $5.7 million, or $0.19 per share. These
results include a charge of $1.0 million for option-based compensation
as well as a non-cash charge of approximately $200,000 as a result of
the straight-line rent write-off related to the buyout and termination
of the former anchor lease at the Company's Town Line Plaza
redevelopment project. A new lease has been executed for a Super Stop
& Shop supermarket at a 33% increase in total rent over the former
anchor with no interruption in rent payments. Before these charges,
fourth quarter FFO was $6.9 million, or $0.23 per share, which was
in-line with Acadia's 2003 earnings guidance and represented a 20 %
increase over 2002 FFO from continuing operations of $0.19 per share.
    FFO for the year was $26.9 million, or $0.92 per share. Before the
above charges, FFO was $28.1 million, or $0.96 per share, which was
$0.01 per share above the upper range of Acadia's 2003 earnings
guidance. For comparative purposes, 2003 FFO also included $1.2
million, or $0.04 per share of additional rents received during the
first quarter related to the assignment of an anchor lease, while 2002
FFO from continuing operations of $27.4 million, or $0.94 per share,
included $3.8 million, or $0.13 of lease termination income received
from a single former tenant.
    Net loss for the fourth quarter 2003 was $1.2 million, or $0.04
per share on a fully diluted basis. This included the above charges as
well as an additional non-cash write-off of $2.7 million of
unamortized tenant improvement costs related to the buyout and
termination of the former anchor at the Town Line Plaza redevelopment
project. This compares with fourth quarter 2002 net income of $7.2
million, or $0.28 per share, which included income of $5.8 million, or
$0.22 per share from discontinued operations. Net income for the year
ended December 31, 2003 was $7.1 million, or $0.27 per share compared
to 2002 net income of $19.4 million or $0.76 per share. Included in
2002 net income was $7.9 million in income from discontinued
operations, totaling $0.31 per share.

    Redevelopment Activity - New Project Added to Redevelopment
Pipeline - New Anchors Now Open in Former Ames Locations

    As previously announced, Acadia added an additional project to its
redevelopment pipeline during the quarter. The Company's three
existing projects progressed on time and on budget during 2003:

    Super Stop & Shop to Replace GU Markets at the Town Line Plaza

    Acadia is re-anchoring the center with a new Super Stop & Shop
supermarket, replacing a former GU Markets at the Town Line Plaza,
located in Rocky Hill, Connecticut. The existing building is being
demolished and will be replaced with a 66,000 square foot Super Stop &
Shop. The new supermarket anchor is paying total rent at a 33%
increase over that of the former tenant with no interruption in rent
payments. It is anticipated this project will be completed during the
first quarter of 2005.

    Home Depot Replaces Ames at the Plaza 422

    Home Depot held its grand opening during the quarter at the Plaza
422 redevelopment project located in Lebanon, Pennsylvania. The
expansion of the former 83,000 square foot Ames space to a 104,000
square feet Home Depot included the recapture and demolition of the
formerly enclosed portion of the center. Acadia is now collecting
double the base rent of that which was paid by Ames. In connection
with the redevelopment project, Acadia also recaptured another 48,000
square feet of space, for which re-leasing is underway.

    Bon Ton Department Store Replaces Ames at the New Loudon Center

    The Bon Ton Department Store also opened for business during the
quarter as part of the redevelopment of the New Loudon Center located
in Latham, New York. Occupying 66,000 square feet formerly occupied by
an Ames department store, Bon Ton is paying base rent at a 15%
increase over that of Ames. In addition, Acadia has now leased the
balance of the former Ames space to Marshall's, an existing tenant at
the center, which will be expanding its current 26,000 square foot
store to 37,000 square feet. The Company will also install a new
49,000 square foot Raymour and Flanigan Furniture store at this
center. Following the completion of this project in mid-2004, this
community shopping center will be 100% occupied.

    Gateway Shopping Center

    During 2003, Acadia completed the de-malling and re-anchoring of
the Gateway Shopping Center located in South Burlington, VT. The
project, formerly a partially enclosed mini-mall with an undersized
Grand Union, was converted into a new open-air community shopping
center with a 72,000 square foot Shaw's supermarket which opened
during the year.

    Portfolio Activity - Portfolio Occupancy up 1.3%

    On a year-over-year basis, Acadia increased its portfolio
occupancy by 1.3%. Year-end 2003 occupancy was 87.6% compared to 86.3%
at year-end 2002. The 2003 occupancy gains resulted primarily from the
re-tenanting of two former Ames locations; Home Depot at the Plaza 422
and Bon Ton Department Store at the New Loudon Center. Current
occupancy still reflects the temporary effect of two other former Ames
locations for which leasing is still underway. These locations
represent 166,000 square feet, or 3.2% of the total retail portfolio
GLA. On a sequential basis, year-end 2003 occupancy decreased 20 basis
points from that of third quarter 2003. This was primarily a result of
the Company recapturing 48,000 square feet at the New Loudon Center
redevelopment project which has already been re-leased to a Raymour
and Flanigan Furniture store which is expected to open mid-2004.
    During 2003, Acadia executed new and renewal leases totaling
568,000 square feet, or 8% of the portfolio (including joint venture
properties), at an average increase of 10.1% over the previous base
rents on a cash basis. Average in-place rents were $10.22 per square
foot at year-end which represents a 6.7% increase over 2002 in-place
rents on a same property basis.
    Same property net operating income ("NOI") increased 2.0% for
fourth quarter 2003 over 2002. Excluding the temporary $1.6 million
effect from the four former Ames locations (two of which have now been
re-anchored at an average 62% increase over the former Ames base
rent), NOI was up 1.6% year over year. Including the impact from these
closings, NOI declined $1.0 million, or 2.4%.

    Balance Sheet - Solid Platform for Growth

    For 2003, the strength of Acadia's balance sheet was evidenced by
positive trends in its financial ratios as well as sufficient working
capital to fund all of its foreseeable internal and external capital
requirements. All financial ratios include the Company's pro-rata
share of unconsolidated joint venture debt and interest expense:

    --  Debt to total market capitalization at year-end was 39%
        compared with 49% for 2002

    --  For 2003, 85% of the Company's total mortgage debt, inclusive
        of the effect of interest rate swaps, was fixed-rate. This
        contrasts with 74% as of the end of 2002. This was
        accomplished while maintaining a blended cost of debt of 6.1%

    --  Fixed-charge ratio was 3.0 times (EBITDA / interest expense
        plus preferred distributions)

    --  Dividend payout ratio for 2003 was 63% of FFO

    --  $50 million currently available under existing credit
        facilities to fund anticipated capital requirements

    Dividend Increase - 10% Increase for Fourth Quarter 2003 - Follows
11.5% Increase in First Quarter 2003 and 8% Increase in 2002

    During the fourth quarter, Acadia's Board of Trustees approved an
increase in Acadia's quarterly dividend to $0.16 per share, which
represents a 10% increase over the $0.145 quarterly dividend paid by
Acadia for the first three quarters of 2003. This increase was
effective for the dividend paid January 15, 2004 to shareholders of
record as of December 31, 2003. On an annualized basis, the dividend
will increase $0.06 resulting in an annual dividend of $0.64. Acadia
has now increased its dividend by more than 30% over the last two
years. Even after the recent dividend increase, Acadia expects to
maintain a conservative payout ratio of approximately 65% in 2004.

    External Growth Initiatives - Formation of New Venture Follows
2003 Acquisitions totaling $135 million

    Existing Joint Venture - Two Portfolio Acquisitions in 2003
contribute $0.095 FFO with Initial 15% Yields

    Acadia, through Acadia Strategic Opportunity Fund ("ASOF"),
acquired two portfolios totaling approximately 2.0 million square feet
for $135 million during 2003. The first, the Kroger/Safeway Portfolio,
is a one million square foot supermarket portfolio consisting of
twenty-five anchor-only leases with either Kroger or Safeway
supermarkets. The second is the Brandywine Portfolio, which totals one
million square feet, consisting of two open-air, value-based shopping
centers. Tenants at these properties include Target, Lowe's, TJ Maxx,
Bed Bath & Beyond, Dick's Sporting Goods and Trader Joe's gourmet
grocery. Both portfolios, which contributed a total of $0.095
incremental FFO in 2003, are performing ahead of their initial
underwriting with leveraged yields in excess of 15%.

    New Retail Venture - Additional Pipeline for External Growth

    As announced in January 2004, Acadia has formed a venture (the
"Venture") with Klaff Realty, L.P. ("Klaff") and its long-time capital
partner Lubert-Adler Management, Inc. ("Lubert-Adler") for the purpose
of making investments in surplus or underutilized properties owned or
controlled by retailers. The goal of the Venture will be to invest
approximately $300 million in equity over the next three years. Acadia
and its current acquisition fund, ASOF, as well as possible subsequent
Acadia funds, anticipate investing $60 million, or 20%, of the equity
of the Venture. This investment will be in addition to Acadia's
current external growth initiatives.
    As an additional component to the transaction with Klaff, Acadia
has also acquired Klaff's rights to provide asset management, leasing,
disposition, development and construction services for an existing
portfolio of retail properties and/or leasehold interests comprised of
approximately 10 million square feet of retail space located
throughout the United States (the "Klaff Portfolio"). The acquisition
involves only Klaff's rights associated with operating the Klaff
Portfolio and does not include equity interests in assets owned by
Klaff or Lubert-Adler. The Klaff Portfolio consists of 144 properties,
including 90 former Service Merchandise stores acquired out of
bankruptcy, 35 Levitz Home Furnishing stores acquired through a
sale-leaseback transaction and approximately 2 million square feet of
other retail assets acquired by Klaff over the past 10 years.
    For the first two years, Acadia will jointly operate the Klaff
Portfolio with Klaff's existing organization, ensuring the best
possible management structure and a continuity of operations for
current ownership. Thereafter, Acadia will assume responsibility for
the operations of the majority of the Klaff Portfolio.

    Outlook - Earnings Guidance for 2004

    On a fully diluted basis, the Company currently forecasts its 2004
FFO will range from $0.95 to $1.00 per share. 2004 earnings per
diluted share is expected to range from $0.40 to $0.45 per share.
Acadia's 2004 earnings guidance is based on the following assumptions:

    --  Same Property Occupancy and NOI

    The Company's same property portfolio (including joint venture
properties on a pro-rata basis) is expected to experience stable
growth of approximately 1% to 2% for 2004 with expected portfolio
occupancy increasing approximately 1% over 2003. Revenue growth will
be driven by redevelopment projects that came on-line in late 2003 as
well as anticipated commencements during 2004. This may be partially
offset by the potential impact of general tenant credit issues.
Expense growth is anticipated to increase moderately from 2003 to
2004, primarily as a result of inflation.

    --  Acquisitions

    Acadia is currently forecasting an incremental external earnings
contribution of $0.02 to $0.04 per share through its acquisition joint
venture primarily in the second half of 2004.

    --  Interest Expense

    The Company's interest expense forecast assumes a 2% increase in
LIBOR during 2004.

    --  General and Administrative

    2004 general and administrative expense is expected to be
consistent with 2003, as inflationary increases for 2004 are
anticipated to be offset by cost saving measures.

    --  Merchant Development and Lease Termination Income

    There is no projected income in 2004 from these activities.

    The following is a reconciliation of the calculation of FFO per
diluted share and earnings per diluted share:


Guidance Range for 2004                                    Low   High
- -----------------------                                    ----  ----
Earnings per diluted share                                $0.40 $0.45
Depreciation of real estate and amortization of leasing
 costs:
   Wholly owned and consolidated partnerships              0.48  0.48
   Unconsolidated  partnerships                            0.07  0.07
                                                           ----- -----
Funds from operations                                     $0.95 $1.00
                                                           ===== =====

    Management Comments

    Commenting on the results for the quarter, Kenneth Bernstein,
President and CEO, stated, "In 2003, our team was successful in
driving the three key components of our business plan. First, we
continued to enhance the value of our core portfolio with the
launching of three profitable redevelopments which are expected to
provide $0.02 to $0.03 of additional FFO in 2004. Second, we
maintained and enhanced the strength and flexibility of our balance
sheet. At year end our debt to total market cap was 39% and our
fixed-charge coverage ratio was 3.0 times. Our dividend payout ratio
for the year was one of the most conservative in our sector at 63%
even after raising our dividend 30% over two years. Third, we
continued our highly opportunistic but disciplined acquisition program
adding two important portfolio acquisitions that were consistent with
our value-added focus. Looking ahead, the fundamentals of our business
plan remain sound and compelling. The potential for internal growth
through redevelopments and occupancy gains, coupled with an exciting
external growth platform -- further enhanced by our recently announced
venture with the Klaff Organization -- should enable us to continue to
create strong shareholder value going forward."

    Investor Conference Call

    Kenneth Bernstein, President and CEO, and Michael Nelsen, Sr. Vice
President and CFO, will conduct a conference call February 18, 2004 at
12 Noon EST to review the Company's earnings and operating results.
The live conference call can be accessed by dialing 888-339-2688
(internationally 617-847-3007). No passcode is required.
    The call will also be webcast and can be accessed in a listen-only
mode at Acadia's Web site at www.acadiarealty.com.
    If you are unable to participate during the live webcast, the call
will be archived and available on Acadia's website. Alternatively, to
access the replay by phone, dial 888-286-8010 (internationally
617-801-6888). The passcode will be 57909940. The phone replay will be
available through Wednesday, February 25, 2004.

    Acadia Realty Trust, headquartered in White Plains, NY, is a fully
integrated and self-managed real estate investment trust which
specializes in the acquisition, redevelopment and operation of
shopping centers which are anchored by grocery and value-oriented
retail. Acadia currently owns (or has interests in) and operates 62
properties totaling approximately nine million square feet, located
primarily in the Eastern United States.

    Certain matters in this press release may constitute
forward-looking statements within the meaning of federal securities
law and as such may involve known and unknown risk, uncertainties and
other factors which may cause the actual results, performances or
achievements of Acadia to be materially different from any future
results, performances or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements speak only
as of the date of this document. Acadia expressly disclaims any
obligation or undertaking to release publicly any updates or revisions
to any forward-looking statements contained herein to reflect any
change in Acadia's expectations with regard thereto or change in
events, conditions or circumstances on which any such statement is
based. The Company also refers you to the documents filed by the
Company, from time to time, with the Securities and Exchange
Commission, including without limitation the Company's Annual Report
on Form 10-K and the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" incorporated by
reference therein, for a discussion of such risks and uncertainties.
    The Company considers funds from operations ("FFO") as defined by
the National Association of Real Estate Investment Trusts ("NAREIT")
to be an appropriate supplemental disclosure of operating performance
for an equity REIT due to its widespread acceptance and use within the
REIT and analyst communities. FFO is presented to assist investors in
analyzing the performance of the Company. It is helpful as it excludes
various items included in net income that are not indicative of the
operating performance, such as gains (or losses) from sales of
property and depreciation and amortization. However, the Company's
method of calculating FFO may be different from methods used by other
REITs and, accordingly, may not be comparable to such other REITs. FFO
does not represent cash generated from operations as defined by
generally accepted accounting principles ("GAAP") and is not
indicative of cash available to fund all cash needs, including
distributions. It should not be considered as an alternative to net
income for the purpose of evaluating the Company's performance or to
cash flows as a measure of liquidity. Consistent with the NAREIT
definition, the Company defines FFO as net income (computed in
accordance with GAAP), excluding gains (or losses) from sales of
depreciated property, plus depreciation and amortization, and after
adjustments for unconsolidated partnerships and joint ventures. The
Company historically has added back impairments in real estate in
calculating FFO, in accordance with prior NAREIT guidance. However,
NAREIT, based on discussions with the SEC, has provided revised
guidance that provides that impairments should not be added back to
net income in calculating FFO. As such, historical FFO has been
restated consistent with this revised guidance.

    For more information visit Acadia Realty Trust's Web site at
www.acadiarealty.com.


                 ACADIA REALTY TRUST AND SUBSIDIARIES
                         Financial Highlights
      For the Quarters and Years ended December 31, 2003 and 2002
             (dollars in thousands, except per share data)

                         STATEMENTS OF INCOME

                                For the quarters     For the years
                                ended December 31,  ended December 31,
           Revenues                 2003    2002        2003     2002
                                  ------- -------    -------- --------
Minimum rents                    $12,818 $12,592    $ 50,168 $ 48,488
Percentage rents                     467     477       1,012    1,079
Expense reimbursements             3,914   3,358      13,539   11,419
Lease termination income              --      --          --    3,945
Other property income                268      83         749      536
Other                                684   1,080       3,977    3,880
                                  ------- -------    -------- --------
     Total revenues               18,151  17,590      69,445   69,347
                                  ------- -------    -------- --------
      Operating expenses
Property operating                 4,470   4,061      15,170   12,274
Real estate taxes                  2,502   2,166       8,799    8,447
General and administrative         3,553   2,886      11,484   10,173
Depreciation and amortization      6,632   3,845      17,909   14,804
Abandoned project costs               --      --          --      274
                                  ------- -------    -------- --------
     Total operating expenses     17,157  12,958      53,362   45,972
                                  ------- -------    -------- --------
Operating income                     994   4,632      16,083   23,375
Equity in earnings of
 unconsolidated partnerships         634     303       2,411      628
Interest expense                  (2,818) (2,810)    (11,231) (11,017)
Gain on sale                          --      --       1,187    1,530
Minority interest                     (7)   (653)     (1,317)  (2,999)
                                  ------- -------    -------- --------
Income (loss) from continuing
 operations                       (1,197)  1,472       7,133   11,517
                                  ------- -------    -------- --------

    Additional financial and portfolio information is available at
Acadia Realty Trust's web site at www.acadiarealty.com. Refer to the
Year-End 2003 Financial and Operating Reporting Supplement on the
Financial Reports page under the Investor Relations section of
Acadia's web site.



                 ACADIA REALTY TRUST AND SUBSIDIARIES
                         Financial Highlights
      For the Quarters and Years ended December 31, 2003 and 2002
             (dollars in thousands, except per share data)

                   STATEMENTS OF INCOME (continued)

                                For the quarters      For the years
                                ended December 31,  ended December 31,
                                    2003    2002         2003    2002
                                  ------- -------      ------- -------
Discontinued operations:

Operating income from
 discontinued operations         $    -- $   151      $    -- $ 1,165
Impairment of real estate             --      --           --    (197)
Gain on sale of properties            --   6,349           --   8,132
Minority interest                     --    (742)          --  (1,218)
                                  ------- -------      ------- -------
Income from discontinued
 operations                           --   5,758           --   7,882
                                  ------- -------      ------- -------
Net income (loss)                $(1,197)$ 7,230      $ 7,133 $19,399
                                  ======= =======      ======= =======
 Net income (loss) per Common
  Share - Basic
Net income (loss) per Common
 Share - Continuing operations   $  (.04)$   .06      $   .27 $   .46
Net income (loss) per Common
 Share - Discontinued
 operations                           --     .23           --     .31
                                  ------- -------      ------- -------
Net income (loss) per Common
 Share                           $  (.04)$   .29      $   .27 $   .77
                                  ======= =======      ======= =======
Weighted average Common Shares    27,335  25,174       26,589  25,321
                                  ======= =======      ======= =======
 Net income (loss) per Common
  Share - Diluted (a)

Net income (loss) per Common
 Share - Continuing operations       n/a $   .06      $   .27 $   .45
Net income (loss) per Common
 Share - Discontinued
 operations                          n/a     .22           --     .31
                                  ------- -------      ------- -------
Net income (loss) per Common
 Share                               n/a $   .28      $   .27 $   .76
                                  ------- -------      ------- -------
Weighted average Common Shares       n/a  25,684       27,496  25,806
                                  ======= =======      ======= =======

    Additional financial and portfolio information is available at
Acadia Realty Trust's web site at www.acadiarealty.com. Refer to the
Year-End 2003 Financial and Operating Reporting Supplement on the
Financial Reports page under the Investor Relations section of
Acadia's web site.


                 ACADIA REALTY TRUST AND SUBSIDIARIES
                         Financial Highlights
      For the Quarters and Years ended December 31, 2003 and 2002
             (dollars in thousands, except per share data)

      RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS (b)

                                For the quarters      For the years
                                ended December 31,  ended December 31,
                                    2003    2002         2003    2002
                                  ------- -------      ------- -------
Net income (loss)                $(1,197)$ 7,230      $ 7,133 $19,399
Depreciation of real estate and
 amortization of leasing costs:
   Wholly owned and
    consolidated partnerships      6,416   3,625       16,957  15,305
   Unconsolidated  partnerships      550     183        2,107     662
Income attributable to minority
 interest in Operating
 Partnership                         (41)    948          717   2,928
Gain on sale of properties (b)        --  (6,349)          --  (8,132)
                                  ------- -------      ------- -------
Funds from operations              5,728   5,637       26,914  30,162
Funds from operations -
 Discontinued operations              --    (168)          --  (2,743)
                                  ------- -------      ------- -------
Funds from operations -
 Continuing operations           $ 5,728 $ 5,469      $26,914 $27,419
                                  ======= =======      ======= =======
Funds from operations per share
 - Basic
Weighted average Common Shares
 and OP Units (c)                 28,475  28,420       28,457  28,998
                                  ======= =======      ======= =======
Funds from operations per share
 - Continuing operations         $   .20 $   .19      $   .95 $   .95
Funds from operations per share
 - Discontinued operations            --     .01           --     .09
                                  ------- -------      ------- -------
Funds from operations per share  $   .20 $   .20      $   .95 $  1.04
                                  ======= =======      ======= =======
Funds from operations per share
 - Diluted
Weighted average Common Shares
 and OP Units  (c)                29,692  28,931       29,364  29,483
                                  ======= =======      ======= =======
Funds from operations per share
 - Continuing operations         $   .19 $   .19      $   .92 $   .94
Funds from operations per share
 - Discontinued operations            --     .01           --     .09
                                  ======= =======      ======= =======
Funds from operations per share  $   .19 $   .20      $   .92 $  1.03
                                  ======= =======      ======= =======


    Additional financial and portfolio information is available at
Acadia Realty Trust's web site at www.acadiarealty.com. Refer to the
Year-End 2003 Financial and Operating Reporting Supplement on the
Financial Reports page under the Investor Relations section of
Acadia's web site.


                 ACADIA REALTY TRUST AND SUBSIDIARIES
                         Financial Highlights
                   As of December 31, 2003 and 2002
             (dollars in thousands, except per share data)

                  SELECTED BALANCE SHEET INFORMATION
                                            December         December
                                            31, 2003         31, 2002
                                            --------         --------

Cash and cash equivalents              $     14,663      $     45,168
Rental property, at cost                    427,628           413,878
Total assets                                388,184           410,935
Mortgage notes payable                      190,444           202,361
Total liabilities                           208,916           224,487
     Fixed rate debt: (d)                   156,433           145,236
       % of outstanding debt                     82%               72%
       Weighted average interest rate           6.6%              6.8%
     Variable rate debt                $     34,011      $     57,125
       % of outstanding debt                     18%               28%
       Weighted average interest rate           2.9%              3.3%
Total weighted average interest rate            5.9%              5.8%

    Notes:

    (a) Reflects the potential impact if certain Preferred OP Units
and Common Share options were converted to Common Shares at the
beginning of the period. Assuming such conversion, net income would be
increased by $36 and $50 for the quarters ended December 31, 2003 and
2002, respectively, and $185 and $199 for the years then ended.
    (b) The Company considers funds from operations ("FFO") as defined
by the National Association of Real Estate Investment Trusts
("NAREIT") to be an appropriate supplemental disclosure of operating
performance for an equity REIT due to its widespread acceptance and
use within the REIT and analyst communities. FFO is presented to
assist investors in analyzing the performance of the Company. It is
helpful as it excludes various items included in net income that are
not indicative of the operating performance, such as gains (or losses)
from sales of property and depreciation and amortization. However, the
Company's method of calculating FFO may be different from methods used
by other REITs and, accordingly, may not be comparable to such other
REITs. FFO does not represent cash generated from operations as
defined by generally accepted accounting principles ("GAAP") and is
not indicative of cash available to fund all cash needs, including
distributions. It should not be considered as an alternative to net
income for the purpose of evaluating the Company's performance or to
cash flows as a measure of liquidity. Consistent with the NAREIT
definition, the Company defines FFO as net income (computed in
accordance with GAAP), excluding gains (or losses) from sales of
depreciated property, plus depreciation and amortization, and after
adjustments for unconsolidated partnerships and joint ventures. The
Company historically has added back impairments in real estate in
calculating FFO, in accordance with prior NAREIT guidance. However,
NAREIT, based on discussions with the SEC, has provided revised
guidance that provides that impairments should not be added back to
net income in calculating FFO. As such, historical FFO has been
restated consistent with this revised guidance.
    Included in FFO for the years ended December 31, 2003 and 2002 are
gains from the sale of land of $659 and $957, respectively (amounts
are net of minority interests).
    (c) In addition to the weighted average Common Shares outstanding
for the period, diluted FFO also assumes full conversion of a weighted
average 1,140 and 3,246 OP Units into Common Shares for the quarters
ended December 31, 2003 and 2002, and 1,868 and 3,677 OP Units into
Common Shares for the years then ended.
    (d) Fixed-rate debt includes $86,669 of notional principal fixed
through swap transactions. Conversely, variable-rate debt excludes
this amount.

    Additional financial and portfolio information is available at
Acadia Realty Trust's web site at www.acadiarealty.com. Refer to the
Year-End 2003 Financial and Operating Reporting Supplement on the
Financial Reports page under the Investor Relations section of
Acadia's web site.

    CONTACT: Acadia Realty Trust
             Investor Relations:
             Jon Grisham, 914-288-8142