SEC Filing - Acadia Realty Trust

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a6809305.htm

UNITED STATES

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): July 26, 2011

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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425 )

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On July 26, 2011, Acadia Realty Trust (the "Company") issued a press release announcing its consolidated financial results for the quarter and six months ended June 30, 2011. A copy of this press release is attached to this report on Form 8-K as Exhibit 99.1 and incorporated herein by reference. In addition, on July 26, 2011, the Company made available supplemental information concerning the ownership, operations and portfolio of the Company as of and for the quarter and six months ended June 30, 2011. A copy of this supplemental information is attached to this report on Form 8-K as Exhibit 99.2 and incorporated herein by reference. The information included in this Item 2.02, including the information included in Exhibits 99.1 and 99.2 attached hereto, is intended to be furnished solely pursuant to this Item 2.02, and is not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference into any filing under the Securities Act of 1933, as amended ("Securities Act") or the Exchange Act, or otherwise subject to the liabilities of Sections 11 and 12 (a) (2) of the Securities Act.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number	Description

99.1	Press release of the Company dated July 26, 2011.
99.2	Financial and Operating Reporting Supplement of the Company for the quarter and six months ended June 30, 2011.

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: July 29, 2011	By:	/s/ Michael Nelsen
		Name: Michael Nelsen
		Title: Sr. Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit Number	Description

99.1	Press release of the Company dated July 26, 2011.
99.2	Financial and Operating Reporting Supplement of the Company for the quarter and six months ended June 30, 2011.

a6809305ex99-1.htm

Exhibit 99.1

Acadia Realty Trust Reports Second Quarter 2011 Operating Results

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--July 26, 2011--Acadia Realty Trust (NYSE: AKR) today reported operating results for the quarter ended June 30, 2011. All per share amounts are on a fully diluted basis.

Second Quarter 2011 Highlights

Earnings

Funds from operations (“FFO”) of $0.17 per share for second quarter 2011, which includes a $0.06 non-cash impairment charge for Fund I’s Granville Centre. Excluding this charge, FFO was $0.23 per share

Earnings per share (“EPS”) from continuing operations of $0.04 for second quarter 2011

Core Portfolio Activity

Asset Recycling

Sold the Ledgewood Mall for $37.0 million as part of Acadia’s “asset recycling plus growth initiative”

Chicago Street-Retail Acquisitions – One property acquired during the quarter and a 19-property portfolio under contract for an aggregate purchase price of $109.3 million

Washington D.C. Street-Retail Acquisitions – a 50% interest in a six-property portfolio under contract for a total purchase price of $13.3 million

New York Urban Street-Retail Acquisitions – One property acquired during the quarter and one property under contract for an aggregate purchase price of $13.9 million

Anchor Recycling

Successfully recaptured two former A&P supermarket locations on Long Island and in Westchester County, New York

Commenced re-anchoring activities at the Bloomfield Town Square

Other Core Portfolio Activity

Current occupancy of 89.3% represents a net decrease of 3.5% from first quarter 2011 and year-to-date same store net operating income (“NOI”) decreased 3.2% compared to 2010

The impact of the recapture of the A&P locations and re-anchoring of the Bloomfield Town Square represented a 3.8% portfolio occupancy decrease and a 2.4% NOI decrease

Fund Acquisition Activity

Chicago Street-Retail Acquisition – Acquired a previously announced property for $31.6 million

Mezzanine Portfolio

Received full repayment of principal and accrued interest totaling $54.7 million on a mezzanine investment at a 20% IRR

Balance Sheet

Core portfolio debt, net of cash on hand (“Net Debt”) to EBIDTA ratio of 3.1x at June 30, 2011

Net Debt to Total Market Capitalization of 26% at June 30, 2011

Cash on hand and availability under current credit facilities of $191 million at June 30, 2011

Second Quarter 2011 Operating Results

FFO and Net Income from Continuing Operations for the quarter ended June 30, 2011 were $7.0 million and $1.8 million, respectively, as compared to $17.6 million and $12.4 million, respectively, for the quarter ended June 30, 2010. For the six months ended June 30, 2011, FFO and Net Income from Continuing Operations were $20.6 million and $10.1 million, respectively, compared to $27.8 million and $17.3 million, respectively, for the six months ended June 30, 2010.

Earnings for the quarters and six months ended June 30, 2011 and 2010, on a per share basis, were as follows:


	Quarters ended June 30,			Six Months ended June 30,
	2011	2010	Variance	2011	2010	Variance
FFO per share	$0.17	$0.43	$(0.26)	$0.50	$0.68	$(0.18)
EPS from continuing operations	$0.04	$0.31	$(0.27)	$0.25	$0.43	$(0.18)
EPS	$0.74	$0.32	$0.42	$0.98	$0.45	$ 0.53

The following significant items contributed to the above variance in EPS from continuing operations:

	Variance 2011 v. 2010
	Quarter	Six months
2011 impairment charge, net of noncontrolling interests	$(0.06)	$(0.06)
2011 lower mortgage interest income	(0.05)	(0.06)
2011 gain on extinguishment of debt	--	0.04
Rents from Fund redevelopment projects placed in service
after June 30, 2010	0.01	0.03
2010 non-cash gain on purchase, net of noncontrolling interests	(0.16)	(0.16)
Other items, net	(0.01)	0.03
Total variance	$(0.27)	$(0.18)

EPS from discontinued operations of $0.70 for the second quarter 2011 was primarily attributable to the $28.6 million gain from the sale of the Ledgewood Mall.

During the quarter, Fund I recognized an impairment charge of $6.9 million related to the Granville Centre located in Columbus, Ohio. The Operating Partnership’s share of this non-cash charge was $2.6 million, or $0.06 per share. This property was part of a three-property portfolio acquired during 2002. Two properties were sold during 2007 for an amount which approximated the total purchase price for the entire portfolio. Based on the allocation of the original purchase price, the sale of these two properties generated gains which were reported in 2007. Including the current impairment charge, Fund I has realized a net profit on the portfolio. This non-cash charge has no negative impact on Fund I’s reported 32% IRR, which is based on aggregate distributions in excess of all investor capital and accumulated preferred return.

Core Portfolio Activity

Core Portfolio Disposition of Non-Strategic Enclosed Mall

As previously announced, during May 2011, the Company sold the Ledgewood Mall, a 517,000 square foot, unencumbered enclosed mall located in Ledgewood, New Jersey, for $37.0 million. At disposition, this wholly-owned property was 79% leased and held for redevelopment within the core portfolio.

Core Portfolio Acquisition of Urban/Street Retail Properties

As part of its core portfolio “asset recycling plus growth” strategy, the Company acquired, or has entered into contracts to acquire, 28 urban/street-retail properties totaling $136.5 million, which includes the assumption of $37.3 million of mortgage debt.

Chicago Urban/Street Retail

651-671 West Diversey Parkway (previously announced) – During May 2011, acquired a 44,000 square foot street-retail property located in Lincoln Park’s Clark/Diversey street-retail corridor for $28.4 million. Tenants at this property include Trader Joe’s, Urban Outfitters and Express.

19-property portfolio (under contract) – A 135,000 square foot, 19-property portfolio with locations throughout Chicago’s high-barrier-to-entry street-retail corridors, including Clark/Diversey and Armitage/Halsted in the Lincoln Park neighborhood and Rush/Walton in the Gold Coast neighborhood. The Company expects to acquire the portfolio for $80.9 million, including the assumption of $28.0 million of mortgage debt. The Company anticipates funding approximately $15.0 million of the purchase price with operating partnership units of Acadia Realty Limited Partnership. Tenants at these properties include Intermix, BCBG, Ann Taylor Loft, and Club Monaco.

Georgetown, Washington D.C. Street Retail

Six-property portfolio (under contract) – An expansion of Acadia’s current mezzanine loan position to include a 50% interest in a 28,000 square foot, $26.5 million portfolio. The properties are located primarily on M Street in Georgetown, a premier shopping and dining district in the Washington D.C. metropolitan area. The properties are subject to $18.5 million of total debt, which includes the Company’s existing $8.0 million mezzanine loan. The Company’s mezzanine loan, which currently matures in November 2011, is expected to remain in place through year-end 2011 at a revised interest rate of 8.0% (formerly 9.75%), with an option to extend. Tenants at these properties include Coach, Juicy Couture and Lacoste.

New York Urban/Street Retail

15 Mercer Street – During June 2011, acquired a 6,000 square foot, two-level retail condo occupied by 3x1 Jeans in New York’s Soho neighborhood for $4.8 million.

4401 White Plains Road (under contract) – A stand-alone 13,000 square foot Walgreens drug store located in the Bronx. The contract purchase price for this property is $9.1 million.

The closing of the above transactions that are currently under contract are subject to customary closing conditions, and, as such, no assurance can be given that the Company will successfully complete these transactions.

Additional information on these closed and pending acquisitions, including photos, may be found in the following presentation on the Company’s website under Investor Relations - Presentations.

Core Portfolio Anchor Recycling

Bloomfield Town Square - As previously disclosed, Acadia executed a 50,000 square foot lease with Dick’s Sporting Goods in connection with the re-anchoring of the Bloomfield Town Square located in Bloomfield Hills, Michigan, at a 40% increase in rents over the former tenants, Marshall’s and Petco. During the second quarter, the Company recaptured the space and initiated re-anchoring activities which it expects will be completed during the second half of 2012.

Two A&P supermarket locations - During the quarter the Company successfully recaptured two former A&P supermarket locations at Branch Plaza in Smithtown (Long Island) and Crossroads Shopping Center in White Plains (Westchester County), New York totaling approximately 101,000 square feet and is actively engaged in re-tenanting activities for these locations.

Occupancy and Same-Store NOI

At June 30, 2011, Acadia’s core portfolio occupancy was 89.3%. The 3.5% decrease from the March 31, 2011 occupancy of 92.8% was entirely attributable to the recapture of the two A&P locations and the Bloomfield Town Square re-anchoring activity which accounted for a 3.8% decrease in portfolio occupancy.

Year-to-date through June 30, 2011, core portfolio NOI decreased 3.2% from 2010. The impact of the recapture of the two A&P locations and the Bloomfield Town Square re-anchoring represented a 2.4% decrease in portfolio NOI. For the second quarter 2011, core portfolio NOI decreased 5.6%, of which 4.3% was the result of A&P and Bloomfield Town Square and 1.2% from comparatively greater winter related common area expenses.

Leasing Activity

The Company realized an increase in average rents of 5.7% in its core portfolio on 126,000 square feet of new and renewal leases during the second quarter of 2011. Excluding the effect of the straight-lining of rents, the Company experienced no change in average rents.

Fund Urban/Street Retail Acquisition

As previously announced, during April 2011, Acadia, through Fund III, acquired The Heritage Shops at Millennium Park, a 105,000 square foot street-retail property located in the Chicago Loop for $31.6 million. Tenants at this property include an LA Fitness Signature Club, Ann Taylor Loft, Lane Bryant, McDonald’s and Fifth Third Bank.

Mezzanine Portfolio

During May 2011, one of the Company’s mezzanine investments, which was secured by a retail and residential mixed-use project at 72nd Street and Broadway in New York, was fully repaid. The Company received $54.7 million, representing the original loan of $33.8 million, $13.4 million of accrued interest and a $7.5 million exit fee. Acadia generated a 20% IRR and a 1.7x equity multiple on the investment which was made during 2008.

Balance Sheet

Acadia continues to maintain a solid balance sheet with available liquidity, low leverage and limited interest rate exposure as evidenced by the following:

As of June 30, 2011, total liquidity of $191 million, including $128 million of cash on hand and $63 million available under existing lines of credit, excluding the Funds’ cash and credit facilities

Approximately $200 million of committed and unallocated Fund III investor capital available to fund future acquisitions. Acadia’s pro-rata share of this amounts to approximately $40 million

Core portfolio Net Debt to EBIDTA ratio of 3.1x

Including the Company’s pro-rata share of the Fund debt, a Net Debt to EBITDA ratio of 4.4x

Including the Company’s pro-rata share of the Fund debt, Net Debt to Total Market Capitalization of 26% and Debt to Total Market Capitalization of 35%

Core portfolio fixed-charge coverage ratio of 2.6 to 1

Combined fixed-charge coverage ratio, including core portfolio and Funds, was 2.7 to 1

100% of the Company’s core portfolio debt is fixed at an average interest rate of 6.1%

Including the Company’s pro-rata share of Fund debt, 85% of the Company’s debt is fixed at an average interest rate of 5.3%

Outlook - Earnings Guidance for 2011

The Company reaffirms its previously announced 2011 FFO and EPS forecast range. On a fully diluted basis, the Company forecasts that its 2011 annual FFO will range from $0.94 to $1.05 per share and 2011 EPS from $0.44 to $0.55 per share. However, as a result of the second quarter events as discussed above, the Company currently anticipates results for the year will trend to the lower half of this range.

Management Comments

“I am pleased with the progress that our team made during the second quarter with respect to both our existing assets and new investments,” stated Kenneth F. Bernstein, President and CEO of Acadia Realty Trust. “Within our core portfolio, we initiated three long-term-accretive re-anchoring projects and, more significantly, we acquired, or have entered into contracts to acquire, 28 high-quality urban/street-retail properties totaling approximately $137 million. These new acquisitions – located in Chicago, New York, and Georgetown (Washington, D.C.) – are consistent with our high-barrier-to-entry/high-density investment strategy and position our portfolio to continue to meet the needs of our retailers and their shoppers over the long-term. Additionally, along with continued progress stabilizing our Funds’ existing urban development portfolio, Acadia, through Fund III, acquired a street-retail asset in the Chicago Loop and, looking ahead, is well-capitalized to take advantage of additional opportunistic and value-add investments.”

Investor Conference Call

Management will conduct a conference call on Wednesday, July 27, 2011 at 12:00 PM ET to review the Company's earnings and operating results. The live conference call can be accessed by dialing 800-215-2410 (internationally 617-597-5410). The pass code is “Acadia”. 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), and the passcode will be 31887562. The phone replay will be available through Wednesday, August 3, 2011.

About Acadia Realty Trust

Acadia Realty Trust, a fully-integrated equity real estate investment trust, is focused on the ownership, management and redevelopment of high-quality retail properties and urban/infill mixed-use properties with a strong retail component located primarily in high-barrier-to-entry, densely-populated metropolitan areas along the East Coast and in Chicago. Acadia owns, or has an ownership interest in, 84 properties through its core portfolio and three opportunistic/value-add investment funds. Additional information may be found on the Company’s website at www.acadiarealty.com.

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 that 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. These forward-looking statements include statements regarding Acadia’s future financial results and its ability to capitalize on potential opportunities arising from continued economic uncertainty. Factors that could cause the Company’s forward-looking statements to differ from its future results include, but are not limited to, those discussed under the headings “Risk Factors” and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company’s most recent annual report on Form 10-K filed with the SEC on February 28, 2011 (“Form 10-K”) and other periodic reports filed with the SEC, including risks related to: (i) the current global financial environment and its effect on retail tenants; (ii) the Company’s reliance on revenues derived from major tenants; (iii) the Company’s limited control over joint venture investments; (iv) the Company’s partnership structure; (v) real estate and the geographic concentration of our properties; (vi) market interest rates; (vii) leverage; (viii) liability for environmental matters; (ix) the Company’s growth strategy; (x) the Company’s status as a REIT; (xi) uninsured losses and (xii) the loss of key executives. Copies of the Form 10-K and the other periodic reports Acadia files with the SEC are available on the Company’s website at www.acadiarealty.com. Any forward-looking statements in this press release speak only as of the date hereof. 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.

ACADIA REALTY TRUST AND SUBSIDIARIES Financial Highlights 1 For the Quarters and Six Months ended June 30, 2011 and 2010 (dollars and Common Shares in thousands, except per share data)

	For the Quarters ended						For the Six Months ended
	June 30,						June 30,
Revenues	2011			2010			2011			2010

Minimum rents	$	28,971		$	24,560		$	56,200		$	49,134
Percentage rents		45			102			223			211
Mortgage interest income		3,370			5,238			7,908			10,231
Expense reimbursements		5,635			4,574			10,889			10,150
Other property income		495			557			1,183			1,074
Management fee income		288			436			917			836
Total revenues		38,804			35,467			77,320			71,636
Operating expenses
Property operating		7,654			6,302			15,376			13,575
Real estate taxes		4,702			4,144			8,886			8,469
General and administrative		5,699			5,416			11,389			10,535
Depreciation and amortization		8,449			6,472			16,346			15,074
Impairment of asset		6,925			--			6,925			--
Total operating expenses		33,429			22,334			58,922			47,653

Operating income		5,375			13,133			18,398			23,983

Equity in earnings (losses) of unconsolidated affiliates		63			80			(85	)		467
Other interest income		80			153			114			287
Gain from bargain purchase		--			33,805			--			33,805
Interest expense and other finance costs		(8,903	)		(9,502	)		(17,856	)		(19,157	)
(Loss) gain on extinguishment of debt		(102	)		--			1,571			--
(Loss) income from continuing operations before
Income taxes		(3,487	)		37,669			2,142			39,385
Income tax expense		(233	)		(645	)		(495	)		(1,084	)
(Loss) income from continuing operations		(3,720	)		37,024			1,647			38,301

ACADIA REALTY TRUST AND SUBSIDIARIES Financial Highlights 1 For the Quarters and Six Months ended June 30, 2011 and 2010 (dollars and Common Shares in thousands, except per share data)

	For the Quarters ended						For the Six Months ended
	June 30,						June 30,
	2011			2010			2011			2010
Discontinued operations:
Operating income from discontinued operations		185			473			548			703
Gain on sale of property		28,576			--			32,498			--
Income from discontinued operations		28,761			473			33,046			703
Net income		25,041			37,497			34,693			39,004
Loss (income) attributable to noncontrolling interests
in subsidiaries:
Continuing operations		5,525			(24,647	)		8,478			(20,974	)
Discontinued operations		(332	)		(52	)		(3,514	)		(102	)
Net loss (income) attributable to noncontrolling
interests in subsidiaries		5,193			(24,699	)		4,964			(21,076	)

Net income attributable to Common Shareholders	$	30,234		$	12,798		$	39,657		$	17,928

Supplemental Information
Income from continuing operations attributable to
Common Shareholders	$	1,805		$	12,377		$	10,125		$	17,327
Income from discontinued operations attributable to
Common Shareholders		28,429			421			29,532			601
Net income attributable to Common Shareholders	$	30,234		$	12,798		$	39,657		$	17,928

Net income attributable to Common Shareholders per
Common Share – Basic
Net income per Common Share – Continuing
operations	$	0.04		$	0.31		$	0.25		$	0.43
Net income per Common Share – Discontinued
operations		0.71			0.01			0.73			0.02
Net income per Common Share	$	0.75		$	0.32		$	0.98		$	0.45
Weighted average Common Shares		40,334			40,135			40,326			40,058

Net income attributable to Common Shareholders per
Common Share – Diluted 2
Net income per Common Share – Continuing
operations	$	0.04		$	0.31		$	0.25		$	0.43
Net income per Common Share – Discontinued
operations		0.70			0.01			0.73			0.02
Net income per Common Share	$	0.74		$	0.32		$	0.98		$	0.45
Weighted average Common Shares		40,633			40,372			40,607			40,274

ACADIA REALTY TRUST AND SUBSIDIARIES Financial Highlights 1 For the Quarters and Six Months ended June 30, 2011 and 2010 (dollars and Common Shares in thousands, except per share data)
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS 3

	For the Quarters ended					For the Six Months ended
	June 30,					June 30,
	2011			2010		2011			2010


Net income attributable to Common Shareholders	$	30,234		$	12,798	$	39,657		$	17,928

Depreciation of real estate and amortization of leasing costs
(net of noncontrolling interests' share):
Consolidated affiliates		4,597			4,202		9,055			8,790
Unconsolidated affiliates		381			475		734			833
Gain on sale (net of noncontrolling interests' share):
Consolidated affiliates		(28,576	)		--		(29,360	)		--
Unconsolidated affiliates		--			--		--			--
Income attributable to noncontrolling interests’ in
Operating Partnership		362			160		477			246
Distributions – Preferred OP Units		5			5		10			10
Funds from operations	$	7,003		$	17,640	$	20,573		$	27,807
Funds from operations per share – Diluted
Weighted average Common Shares and OP Units 4		41,104			40,844		41,075			40,810
Funds from operations, per share	$	0.17		$	0.43	$	0.50		$	0.68

ACADIA REALTY TRUST AND SUBSIDIARIES Financial Highlights 1 For the Quarters and Six Months ended June 30, 2011 and 2010 (dollars in thousands)
RECONCILIATION OF OPERATING INCOME TO NET PROPERTY OPERATING INCOME (“NOI”) 3

	For the Quarters ended						For the Six Months ended
	June 30,						June 30,
	2011			2010			2011			2010

Operating income	$	5,375		$	13,133		$	18,398		$	23,983

Add back:
General and administrative		5,699			5,416			11,389			10,535
Depreciation and amortization		8,449			6,472			16,346			15,074
Impairment of asset		6,925			--			6,925			--
Less:
Management fee income		(288	)		(436	)		(917	)		(836	)
Mortgage interest income		(3,370	)		(5,238	)		(7,908	)		(10,231	)
Straight line rent and other adjustments		(3,370	)		(792	)		(5,142	)		(1,710	)

Consolidated NOI		19,420			18,555			39,091			36,815

Noncontrolling interest in NOI		(6,100	)		(5,262	)		(12,561	)		(10,565	)
Pro-rata share of NOI	$	13,320		$	13,293		$	26,530		$	26,250

SELECTED BALANCE SHEET INFORMATION

	As of
	June 30, 2011		December 31, 2010


Cash and cash equivalents	$	148,859	$	120,592
Rental property, at cost		1,191,424		1,102,991
Total assets		1,612,867		1,524,806
Notes payable		870,541		854,924
Total liabilities		958,569		937,284

Notes:

1 For additional information and analysis concerning the Company’s results of operations, reference is made to the Company’s Quarterly Supplemental Disclosure furnished on Form 8-K to the SEC and included on the Company’s website at www.acadiarealty.com.

2 Reflects the potential dilution that could occur if securities or other contracts to issue Common Shares were exercised or converted into Common Shares. The effect of the conversion of Common OP Units is not reflected in the above table as they are exchangeable for Common Shares on a one-for-one basis. The income allocable to such units is allocated on this same basis and reflected as noncontrolling interests in the consolidated financial statements. As such, the assumed conversion of these units would have no net impact on the determination of diluted earnings per share.

3 The Company considers funds from operations (“FFO”) as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and net property operating income (“NOI”) to be appropriate supplemental disclosures of operating performance for an equity REIT due to its widespread acceptance and use within the REIT and analyst communities. FFO and NOI are presented to assist investors in analyzing the performance of the Company. They are helpful as they exclude various items included in net income that are not indicative of the operating performance, such as gains (losses) from sales of depreciated property and depreciation and amortization. In addition, NOI excludes interest expense. The Company’s method of calculating FFO and NOI may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. FFO does not represent cash generated from operations as defined by generally accepted accounting principles (“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 (losses) from sales of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.

4 In addition to the weighted average Common Shares outstanding, basic and diluted FFO also assumes full conversion of a weighted average 471 and 472 OP Units into Common Shares for the quarters ended June 30, 2011 and 2010, respectively and 469 and 536 OP Units into Common Shares for the six months ended June 30, 2011 and 2010, respectively. Diluted FFO also includes the assumed conversion of Preferred OP Units into 25 Common Shares for each of the quarters ended June 30, 2011 and 2010, and for each of the six months ended June 30, 2011 and 2010. In addition, diluted FFO also includes the effect of employee share options of 275 and 212 Common Shares for the quarters ended June 30, 2011 and 2010, respectively and 256 and 191 Common Shares for the six months ended June 30, 2011 and 2010, respectively.

CONTACT:

Acadia Realty Trust

Jon Grisham, 914-288-8100

a6809305ex99-2.htm

Exhibit 99.2

ACADIA REALTY TRUST

REPORTING SUPPLEMENT

Table of Contents
Second Quarter 2011



Section I - Financial Information		Section II - Opportunity Fund Information

Company Information	3	Opportunity Fund Overview	23
Total Market Capitalization	4	Opportunity Fund Properties	24
Operating Statements		Opportunity Fund Lease Expirations	25
Pro-rata Consolidation	5	Redevelopment Projects - Operating	28
Opportunity Funds	6	Redevelopment Projects - Construction and Design	29
Funds from Operations ("FFO"), Adjusted FFO ("AFFO")		RCP Venture Investments	30
and Funds Available for Distribution ("FAD")	8	Storage Portfolio	31
EBITDA	9
Same Property Net Operating Income	10
Fee Income	11	Section III - Core Portfolio Information
Balance Sheet - Pro-rata Consolidation	12
Notes Receivable	13	Core Properties	32
Other Information		Core Portfolio by State	34
2011 Guidance	14	Core Top Tenants	35
Net Asset Valuation	15	Core Lease Expirations	36
Selected Financial Ratios	16	Core New and Renewal Rent Spreads	38
Debt Analysis		Core Capital Expenditures	39
Summary	17	Portfolio Demographics	40
Detail	18	Important Notes	42
Maturities with Extension Options	21
Maturities	22



Visit www.acadiarealty.com for additional investor and portfolio information

- 2 -

Company Information

Acadia Realty Trust, a fully-integrated equity real estate investment trust, is focused on the ownership, management and redevelopment of high-quality retail properties and urban/infill mixed-use properties with a strong retail component located primarily in high-barrier-to-entry, densely-populated metropolitan areas along the East Coast and in Chicago. Acadia owns, or has an ownership interest in, 84 properties through its core portfolio and three opportunistic/value-add investment funds. Additional information may be found on the Company’s website at www.acadiarealty.com.





Contact Information

	Corporate Headquarters	Investor Relations	New York Stock Exchange
	1311 Mamaroneck Avenue	Jon Grisham	Symbol AKR
	Suite 260	Senior Vice President,
	White Plains, NY 10605	Chief Accounting Officer
	www.acadiarealty.com	(914) 288-8142
		jgrisham@acadiarealty.com


Analyst Coverage

	Banc of America / Merrill Lynch	FBR Capital Markets	Keefe, Bruyette & Woods, Inc.
	Craig Schmidt - (646) 855-3640	Sri Nagarajan - (646) 885-5429	Sheila K. McGrath - (212) 887-7793
	craig_schmidt@ml.com	snagarajan@fbr.com	smcgrath@kbw.com

	Bank of Montreal	Green Street Advisors	KeyBanc Capital Markets, Inc.
	Paul Adornato, CFA - (212) 885-4170	Laura Clark - (949) 640-8780	Todd Thomas - (917) 368-2286
	paul.adornato@bmo.com	lclark@greenst.com	tthomas@keybanccm.com

	Citigroup - Smith Barney	Janney Montgomery Scott	Macquarie Capital (USA)
	Quentin Velleley, CFA - (212) 816-6981	Andrew T. DiZio, CFA - (215) 665-6439	Rob Stevenson - (212) 231-8068
	quentin.velleley@citi.com	adizio@jmsonline.com	rob.stevenson@macquarie.com

	Cowen and Company	J.P. Morgan Securities, Inc.	RBC Capital Markets
	Michael Gorman - (646) 562-1381	Michael W. Mueller, CFA - (212) 622-6689	Rich Moore, CFA - (440) 715-2646
	michael.gorman@cowen.com	michael.w.mueller@jpmorgan.com	rich.moore@rbccm.com

			UBS
			Christy McElroy - (203) 719-7831
			christy.mcelroy@ubs.com

- 3 -

Total Market Capitalization
(including pro-rata share of Opportunity Fund debt, dollars in thousands)

										Capitalization
	Percent of		Total Market Capitalization							based on
	Total Equity		$				%			Net Debt1
Equity Capitalization
Total Common Shares Outstanding		98.7%	$	40,331
Common Operating Partnership ("OP") Units		1.2%		493
Combined Common Shares and OP Units				40,824

Share Price June 30, 2011				20.33

Equity Capitalization - Common Shares and OP Units				829,952
Preferred OP Units				510		2
Total Equity Capitalization				830,462				65	%		74	%

Debt Capitalization
Consolidated debt				870,491
Adjustment to reflect pro-rata share of debt				(432,072	)
Total Debt Capitalization				438,419				35	%		26	%

Total Market Capitalization			$	1,268,881				100	%		100	%

Weighted Average Outstanding Common Shares and OP Units
(in thousands)
	June 30, 2011				June 30, 2010
	Quarter		Year-to-date		Quarter		Year-to-date
Weighted average Common Shares - Basic EPS		40,333		40,326		40,135		40,058
Dilutive potential Common Shares		300		281		237		216
Weighted average Common Shares - Diluted EPS		40,633		40,607		40,372		40,274
OP Units		471		468		472		536
Dilutive potential OP Units		-		-		-		-
Weighted average Common Shares and OP Units - Diluted FFO		41,104		41,075		40,844		40,810


Notes:
1 Reflects debt net of Core Portfolio and pro-rata share of Opportunity Funds cash balance ("Net Debt"). Cash balance as of June 30, 2011 was $139,178
2 Represents 188 Series A Preferred OP Units convertible into 25,067 Common OP units multiplied by the Common Share price at quarter end.
3 Fixed-rate debt includes notional principal fixed through interest rate swap transactions.

- 4 -

Income Statements - Pro-rata Consolidation1

Current Quarter and Year-to-Date

(in thousands)

	Year-to-date ended June 30, 2011																				Three months ended June 30, 2011
	Core Retail												Opportunity Funds					Total			Core Retail												Opportunity Funds					Total
							Total																				Total
	Wholly			Joint			Continuing			Discontinued			Continuing			Discontinued					Wholly			Joint			Continuing			Discontinued			Continuing			Discontinued
	Owned			Ventures 2			Operations			Operations			Operations			Operations					Owned			Ventures 2			Operations			Operations			Operations			Operations
CORE PORTFOLIO AND OPPORTUNITY FUND INCOME

PROPERTY REVENUES
Minimum rents	$	21,426		$	3,254		$	24,680		$	1,259		$	7,063		$	9	$	33,011		$	10,742		$	1,606		$	12,348		$	378		$	3,674		$	-	$	16,400
Percentage rents		224			49			273			37			2			-		312			44			42			86			10			2			-		98
Expense reimbursements - CAM		2,466			379			2,845			289			600			-		3,734			1,213			159			1,372			55			300			-		1,727
Expense reimbursements - Taxes		3,211			477			3,688			172			552			-		4,412			1,627			239			1,866			25			323			-		2,214
Other property income		39			3			42			1			167			-		210			35			1			36			-			87			-		123
Total Property Revenues		27,366			4,162			31,528			1,758			8,384			9		41,679			13,661			2,047			15,708			468			4,386			-		20,562

PROPERTY EXPENSES
Property operating - CAM		3,424			522			3,946			537			769			-		5,252			1,657			215			1,872			175			358			-		2,405
Other property operating (Non-CAM)		1,112			43			1,155			86			1,910			-		3,151			587			16			603			23			990			-		1,616
Real estate taxes		3,999			571			4,570			286			1,032			-		5,888			2,102			287			2,389			84			564			-		3,037
Total Property Expenses		8,535			1,136			9,671			909			3,711			-		14,291			4,346			518			4,864			282			1,912			-		7,058

NET OPERATING INCOME - PROPERTIES		18,831			3,026			21,857			849			4,673			9		27,388			9,315			1,529			10,844			186			2,474			-		13,504

OTHER INCOME (EXPENSE)
Mezzanine interest income		7,289			-			7,289			-			123			-		7,412			3,057			-			3,057			-			62			-		3,119
Other interest income		114			-			114			-			-			-		114			80			-			80			-			-			-		80
Straight-line rent income, net		163			30			193			(1	)		804			-		996			55			20			75			(1	)		465			-		539
Straight-line ground rent expense		-			-			-			-			(44	)		-		(44	)		-			-			-			-			(22	)		-		(22	)
FAS 141 rent, net		(243	)		70			(173	)		-			103			-		(70	)		(105	)		35			(70	)		-			138			-		68
FAS 141 interest expense		10			-			10			-			21			-		31			5			-			5						21			-		26
Interest expense		(8,280	)		(1,851	)		(10,131	)		-			(1,774	)		-		(11,905	)		(4,346	)		(937	)		(5,283	)					(873	)		-		(6,156	)
Amortization of loan costs		(248	)		-			(248	)		-			(313	)		-		(561	)		(124	)		-			(124	)					(148	)		-		(272	)
Asset and property management expense		(25	)		-			(25	)		-			-			-		(25	)		(15	)		-			(15	)		-			-			-		(15	)
Promote expense		-			-			-			-			-			-		-			-			-			-			-			-			-		-
Other income		574			-			574			-			-			-		574			278			-			278			-			-			-		278
Impairment of asset		-			-			-			-			(2,616	)		-		(2,616	)		-			-			-			-			(2,616	)		-		(2,616	)
Equity in earnings of unconsolidated affiliate, net of taxes		-			-			-			-			-			-		-			-			-			-			-			-			-		-
CORE PORTFOLIO AND OPPORTUNITY FUND INCOME		18,185			1,275			19,460			848			977			9		21,294			8,200			647			8,847			185			(499	)		-		8,533

FEE INCOME
Asset and property management fees and priority distributions		6,260			-			6,260			-			37			-		6,297			3,195			-			3,195			-			19			-		3,214
Transactional fees2		3,812			-			3,812			-			-			-		3,812			1,494						1,494			-			-			-		1,494
Provision for income taxes		(888	)		-			(888	)		-			79			-		(809	)		(435	)		-			(435	)		-			37			-		(398	)
FEE INCOME		9,184			-			9,184			-			116			-		9,300			4,254			-			4,254			-			56			-		4,310

PROMOTE, RCP AND OTHER INCOME
Equity in earnings from RCP investments		-			-			-			-			38			-		38			-			-			-			-			(27	)		-		(27	)
Promote income - RCP		-			-			-			-			(28	)		-		(28	)		-			-			-			-			(13	)		-		(13	)
Promote income - Fund capital transactions		-			-			-			-			-			-		-			-			-			-			-			-			-		-
Equity in earnings of unconsolidated properties		-			-			-			-			-			-		-			-			-			-			-			-			-		-
Lease termination income		36			3			39			-			7			-		46			36			3			39			-			-			-		39
Gain (loss) on extinguishment of debt		1,571			-			1,571			-			-			-		1,571			(102	)		-			(102	)		-			-			-		(102	)
Gain from bargain purchase		-			-			-			-			-			-		-			-			-			-			-			-			-		-
Provision for income taxes (RCP)		17			(1	)		16			-			(6	)		-		10			30			-			30			-			(3	)		-		27
Total Promote, RCP and Other Income		1,624			2			1,626			-			11			-		1,637			(36	)		3			(33	)		-			(43	)		-		(76	)

GENERAL AND ADMINISTRATIVE		(11,365	)		(8	)		(11,373	)		-			(189	)		-		(11,562	)		(5,652	)		(3	)		(5,655	)		-			(94	)		-		(5,749	)

Depreciation and amortization		(6,538	)		(746	)		(7,284	)		(343	)		(2,083	)		-		(9,710	)		(3,460	)		(381	)		(3,841	)		-			(1,063	)		-		(4,904	)
FAS 141 amortization		120			-			120			-			(308	)		-		(188	)		87			-			87						(190	)		-		(103	)
Gain on sale of properties		-			-			-			28,576			-			784		29,360			-			-			-			28,576			-			-		28,576
Income before noncontrolling interests		11,210			523			11,733			29,081			(1,476	)		793		40,131			3,393			266			3,659			28,761			(1,833	)		-		30,587

Noncontrolling interest - OP		(486	)		-			(486	)		-			-			-		(486	)		(366	)		-			(366	)		-			-			-		(366	)
Noncontrolling interests		-			-			-			-			12			-		12			-			-			-			-			13			-		13

NET INCOME	$	10,724		$	523		$	11,247		$	29,081		$	(1,464	)	$	793	$	39,657		$	3,027		$	266		$	3,293		$	28,761		$	(1,820	)	$	-	$	30,234

Notes:

1Quarterly 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 investments in consolidated and unconsolidated joint ventures are reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items.

In total, net income agrees with net income as reported in the Company's Form 10Q's and 10K for the corresponding periods.

2The Company has a 22.2% interest in Brandywine Portfolio ("Brandywine") and a 49% interest in the Crossroads Shopping Center ("Crossroads") which are accounted for as unconsolidated investments in the Company's financial statements.

2Consists of development, construction, leasing and legal fees.

- 5 -

Income Statements - Opportunity Funds1

Year-to-Date

(in thousands)

	Year-to-date ended June 30, 2011
							Continuing																				Continuing			Discontinued											Pro-rata
							Operations																				Operations			Operations											share of
	Fund I			AKR			AKR Pro-						AKR			AKR Pro-			Fund II			Fund II		Fund II			AKR Pro-			AKR Pro-					AKR Pro-						Fund III						AKR Pro-			Total
	Consolidated			Promote			rata share						Promote			rata share			Continuing			Discontinued		Consolidated			rata share			rata share					rata share						unconsolidated			Adjusted			rata share			AKR Pro-
	Operations3			20.00%			22.22%			Mervyns I			20.00%			22.22%			Operations			Operations		Operations			20.00%			20.00%		Mervyns II			20.00%			Fund III			affiliates4			Fund III			19.90%			rata share

PROPERTY REVENUES
Minimum rents	$	1,984		$	397		$	355		$	-		$	-		$	-		$	14,540		$	44	$	14,584		$	2,906		$	9	$	-		$	-		$	13,747		$	3,347		$	17,094		$	3,403		$	7,070
Percentage rents		-			-			-			-			-			-			-			-		-			-			-		-			-			(1	)		13			12			2			2
Expense reimbursements - CAM		130			26			23			-			-			-			1,667			-		1,667			333			-		-			-			649			448			1,097			218			600
Expense reimbursements - Taxes		3			1			1			-			-			-			1,116			-		1,116			223			-		-			-			1,545			103			1,648			328			552
Other property income		-			-			-			-			-			-			165			-		165			33			-		-			-			650			27			677			134			167
Total Property Revenues		2,117			423			378			-			-			-			17,488			44		17,532			3,495			9		-			-			16,590			3,938			20,528			4,085			8,391

PROPERTY EXPENSES
Property operating - CAM		212			42			38			-			-			-			2,280			1		2,281			456			-		-			-			843			324			1,167			232			769
Other property operating (Non-CAM)		515			103			92			-			-			-			2,990			-		2,990			598			-		-			-			3,439			2,175			5,614			1,117			1,910
Real estate taxes		88			18			16			-			-			-			1,977			-		1,977			395			-		-			-			2,761			275			3,036			604			1,032
Total Property Expenses		815			163			145			-			-			-			7,247			1		7,248			1,449			-		-			-			7,043			2,774			9,817			1,953			3,711

NET OPERATING INCOME - PROPERTIES		1,302			260			233			-			-			-			10,241			43		10,284			2,046			9		-			-			9,547			1,164			10,711			2,132			4,680

OTHER INCOME (EXPENSE)
Mezzanine interest income		-			-			-			-			-			-			-			-		-			-			-		-			-			620			-			620			123			123
Other interest income		-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-
Straight-line rent income, net		138			28			25			-			-			-			3,073			-		3,073			614			-		-			-			531			159			690			138			804
Straight-line ground rent		-			-			-			-			-			-			(216	)		-		(216	)		(44	)		-		-			-			-			-			-			-			(44	)
FAS 141 rent, net		-			-			-			-			-			-			(130	)		-		(130	)		(26	)		-		-			-			(298	)		947			649			129			103
FAS 141 interest expense		-			-			-			-			-			-			-			-		-			-			-		-			-			-			108			108			21			21
Interest expense		(80	)		(16	)		(14	)		-			-			-			(5,028	)		-		(5,028	)		(1,005	)		-		-			-			(2,398	)		(1,317	)		(3,715	)		(739	)		(1,774	)
Amortization of loan costs		(18	)		(4	)		(3	)		-			-			-			(1,177	)		-		(1,177	)		(235	)		-		-			-			(361	)		-			(361	)		(72	)		(313	)
Asset and property management expense 2		4			-			-			-			-			-			(2,642	)		-		(2,642	)		-			-		(286	)		-			(4,556	)		(161	)		(4,717	)		-			-
Promote expense2		1,044			-			-			(152	)		-			-			-			-		-			-			-		-			-			-			-			-			-			-
Other income		-			-			-			-			-			-			-			-		-			-			-		-			-			-			2			2			-			-
Impairment of asset		(6,925	)		(1,385	)		(1,231	)		-			-			-			-			-		-			-			-		-			-			-			-			-			-			(2,616	)
Equity in earnings of unconsolidated affiliate, net of taxes		-			-			-			-			-			-			-			-		-			-			-		-			-			(684	)		684			-			-			-
OPPORTUNITY FUND INCOME		(4,535	)		(1,117	)		(990	)		(152	)		-			-			4,121			43		4,164			1,350			9		(286	)		-			2,401			1,586			3,987			1,732			984

FEE INCOME
Asset and property management fees and
priority distributions 2		-			-			-			-			-			-			-			-		-			-			-		-			-			-			189			189			37			37
Transactional fees		-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-
Provision for income taxes		-			-			-			-			-			-			(11	)		-		(11	)		(2	)		-		-			-			408			-			408			81			79
Total Fee Income		-			-			-			-			-			-			(11	)		-		(11	)		(2	)		-		-			-			408			189			597			118			116

PROMOTE, RCP AND OTHER INCOME
Equity in earnings from RCP investments		-			-			-			(133	)		-			(24	)		-			-		-			-			-		310			62			-			-			-			-			38
Promote income - RCP		-			-			-			-			(27	)		-			-			-		-			-			-		-			-			-			-			-			-			(27	)
Promote income - Fund capital transactions		-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-
Equity in earnings of unconsolidated properties		-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-
Lease termination income		-			-			-			-			-			-			-			-		-			-			-		-			-			-			34			34			7			7
Gain on extinguishment of debt		-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-
Gain from bargain purchase		-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-
Provision for income taxes (RCP)		(11	)		(2	)		(2	)		(1	)		(0	)		(0	)		-			-		-			-			-		(4	)		(1	)		-			-			-			-			(6	)
Total Promote, RCP and Other Income		(11	)		(2	)		(2	)		(134	)		(27	)		(24	)		-			-		-			-			-		306			61			-			34			34			7			12

GENERAL AND ADMINISTRATIVE		(69	)		(14	)		(12	)		(4	)		(1	)		(1	)		(355	)		-		(355	)		(71	)		-		(40	)		(8	)		(404	)		(11	)		(415	)		(83	)		(189	)

Depreciation and amortization		(449	)		(90	)		(80	)		-			-			-			(5,118	)		-		(5,118	)		(1,024	)		-		-			-			(3,572	)		(890	)		(4,462	)		(889	)		(2,082	)
FAS 141 amortization		-			-			-			-			-			-			(138	)		-		(138	)		(28	)		-		-			-			(498	)		(908	)		(1,406	)		(280	)		(308	)
Gain on sale of properties		-			-			-			-			-			-			-			3,918		3,918			-			784		-			-			-			-			-			-			784
Income before noncontrolling interest		(5,064	)		(1,222	)		(1,084	)		(290	)		(28	)		(24	)		(1,501	)		3,961		2,460			225			793		(20	)		53			(1,665	)		-			(1,665	)		605			(683	)

Noncontrolling interest - OP		-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-
Noncontrolling interests		-			-			-			-			-			-			6			-		6			1			-		-			-			54			-			54			11			12

NET INCOME	$	(5,064	)	$	(1,222	)	$	(1,084	)	$	(290	)	$	(28	)	$	(24	)	$	(1,495	)	$	3,961	$	2,466		$	226		$	793	$	(20	)	$	53		$	(1,611	)	$	-		$	(1,611	)	$	616		$	(671	)

Notes:

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 investments in consolidated and unconsolidated joint ventures are reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items. In total, net income agrees with net income as reported in the Company's Form 10Q's and 10K for the corresponding periods. The Company currently invests in Funds I. II & III and Mervyn's which are consolidated with the Company's financial statements.

2 Funds I, II & III and the Mervyn's entities pay various fees and promotes to the Company. As it is the recipient of such fees, the Company does not recognize its pro-rata share of these expenses.

3 The 25% noncontrolling interest in the Kroger/Safeway Portfolio has been deducted from each of the income statement line items.

4 Represents Fund III's pro-rata share of the following unconsolidated investments: White City, White Oak, Lincoln Road. and Self-Storage Management.

- 6 -

Income Statements - Opportunity Funds1

Current Quarter

(in thousands)

	Three months ended June 30, 2011
							Continuing																				Continuing			Discontinued											Pro-rata
							Operations																				Operations			Operations											share of
	Fund I			AKR			AKR Pro-						AKR			AKR Pro-			Fund II			Fund II		Fund II			AKR Pro-			AKR Pro-					AKR Pro-						Fund III						AKR Pro-			Total
	Consolidated			Promote			rata share						Promote			rata share			Continuing			Discontinued		Consolidated			rata share			rata share					rata share						unconsolidated			Adjusted			rata share			AKR Pro-
	Operations3			20.00%			22.22%			Mervyns I			20.00%			22.22%			Operations			Operations		Operations			20.00%			20.00%		Mervyns II			20.00%			Fund III			affiliates4			Fund III			19.90%			rata share

PROPERTY REVENUES
Minimum rents	$	979		$	196		$	175		$	-		$	-		$	-		$	7,422		$	-	$	7,422		$	1,483		$	-	$	-		$	-		$	7,265		$	1,879		$	9,144		$	1,820		$	3,674
Percentage rents		-			-			-			-			-			-			-					-			-			-		-			-			1			11			12			2			2
Expense reimbursements - CAM		58			12			10			-			-			-			800					800			160			-		-			-			380			215			595			118			300
Expense reimbursements - Taxes		71			14			13			-			-			-			620					620			124			-		-			-			812			52			864			172			323
Other property income		-			-			-			-			-			-			89			-		89			18			-		-			-			335			14			349			69			87
Total Property Revenues		1,108			222			198			-			-			-			8,931			-		8,931			1,785			-		-			-			8,793			2,171			10,964			2,181			4,386

PROPERTY EXPENSES
Property operating - CAM		102			20			18			-			-			-			1,043			-		1,043			209			-		-			-			453			102			555			110			358
Other property operating (Non-CAM)		285			57			51			-			-			-			1,574			-		1,574			315			-		-			-			1,692			1,158			2,850			567			990
Real estate taxes		117			23			21			-			-			-			1,001			-		1,001			200			-		-			-			1,451			158			1,609			320			564
Total Property Expenses		504			101			90			-			-			-			3,618			-		3,618			724			-		-			-			3,596			1,418			5,014			997			1,912

NET OPERATING INCOME - PROPERTIES		604			121			108			-			-			-			5,313			-		5,313			1,061			-		-			-			5,197			753			5,950			1,184			2,474

OTHER INCOME (EXPENSE)
Mezzanine interest income		-			-			-			-			-			-			-					-			-			-		-			-			314			-			314			62			62
Other interest income		-			-			-			-			-			-			-					-			-			-		-			-			-			-			-			-			-
Straight-line rent income, net		41			8			7			-			-			-			1,691					1,691			338			-		-			-			464			97			561			112			465
Straight-line ground rent		-			-			-			-			-			-			(108	)				(108	)		(22	)		-		-			-			-			-			-			-			(22	)
FAS 141 rent, net		-			-			-			-			-			-			(65	)				(65	)		(13	)		-		-			-			(141	)		901			760			151			138
FAS 141 interest expense		-			-			-			-			-			-			-					-			-			-		-			-			-			108			108			21			21
Interest expense		(39	)		(8	)		(7	)		-			-			-			(2,321	)				(2,321	)		(464	)		-		-			-			(1,203	)		(776	)		(1,979	)		(394	)		(873	)
Amortization of loan costs		(9	)		(2	)		(2	)		-			-			-			(595	)				(595	)		(119	)		-		-			-			(132	)		-			(132	)		(26	)		(148	)
Asset and property management expense2		2			-			-			-			-			-			(1,353	)				(1,353	)		-			-		(143	)		-			(2,472	)		(95	)		(2,567	)		-			-
Promote expense2		1,091			-			-			(166	)		-			-			-					-			-			-		-			-			-			-			-			-			-
Other income		-			-			-			-			-			-			-					-			-			-		-			-			-			1			1			-			-
Impairment of asset		(6,925	)		(1,385	)		(1,231	)		-			-			-			-					-			-			-		-			-			-			-			-			-			(2,616	)
Equity in earnings of unconsolidated affiliate, net of taxes		-			-			-						-			-			-					-			-			-		-			-			9			(9	)		-			-			-
OPPORTUNITY FUND INCOME		(5,235	)		(1,266	)		(1,124	)		(166	)		-			-			2,562			-		2,562			781			-		(143	)		-			2,036			980			3,016			1,110			(499	)

FEE INCOME
Asset and property management fees and
priority distributions		-			-			-			-			-			-			-					-			-			-		-			-			-			97			97			19			19
Transactional fees		-			-			-			-			-			-			-					-			-			-		-			-			-			-			-			-			-
Provision for income taxes		-			-			-			-			-			-			(2	)		-		(2	)		-			-		-			-			185			-			185			37			37
Total Fee Income		-			-			-			-			-			-			(2	)		-		(2	)		-			-		-			-			185			97			282			56			56

PROMOTE, RCP AND OTHER INCOME
Equity in earnings from RCP investments		-			-			-			(67	)		-			(12	)		-					-			-			-		(77	)		(15	)		-			-			-			-			(27	)
Promote income - RCP		-			-			-			-			(13	)		-			-					-			-			-		-			-			-			-			-			-			(13	)
Promote income - Fund capital transactions		-			-			-			-			-			-			-					-			-			-		-			-			-			-			-			-			-
Equity in earnings of unconsolidated properties		-			-			-			-			-			-			-					-			-			-		-			-			-			-			-			-			-
Lease termination income		-			-			-			-			-			-			-					-			-			-		-			-			-			-			-			-			-
Gain on extinguishment of debt		-			-			-			-			-			-			-					-			-			-		-			-			-			-			-			-			-
Gain from bargain purchase		-			-			-			-			-			-			-					-			-			-		-			-			-			-			-			-			-
Provision for income taxes (RCP)		(4	)		(1	)		(1	)		(1	)		(0	)		(0	)		-			-		-			-			-		(4	)		(1	)		-			-			-			-			(3	)
Total Promote, RCP and Other Income		(4	)		(1	)		(1	)		(68	)		(14	)		(12	)		-			-		-			-			-		(81	)		(16	)		-			-			-			-			(43	)

GENERAL AND ADMINISTRATIVE		(37	)		(7	)		(7	)		(1	)		(0	)		(0	)		(228	)				(228	)		(46	)		-		(14	)		(3	)		(156	)		-			(156	)		(31	)		(94	)
																				.
Depreciation and amortization		(149	)		(30	)		(26	)		-			-			-			(2,675	)				(2,675	)		(535	)		-		-			-			(1,894	)		(477	)		(2,371	)		(472	)		(1,063	)
FAS 141 amortization		-			-			-			-			-			-			(69	)				(69	)		(14	)		-		-			-			(285	)		(600	)		(885	)		(176	)		(190	)
Gain on sale of properties		-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-
Income before noncontrolling interest		(5,425	)		(1,304	)		(1,158	)		(235	)		(14	)		(12	)		(412	)		-		(412	)		186			-		(238	)		(19	)		(114	)		-			(114	)		487			(1,833	)

Noncontrolling interest - OP		-			-			-			-			-			-			-					-			-			-		-			-			-			-			-			-			-
Noncontrolling interests		-			-			-			-			-			-			39			-		39			8			-		-			-			26			-			26			5			13

NET INCOME	$	(5,425	)	$	(1,304	)	$	(1,158	)	$	(235	)	$	(14	)	$	(12	)	$	(373	)	$	-	$	(373	)	$	194		$	-	$	(238	)	$	(19	)	$	(88	)	$	-		$	(88	)	$	492		$	(1,820	)

Notes:

2 Funds I, II & III and the Mervyn's entities pay various fees to and promotes the Company. As it is the recipient of such fees, the Company does not recognize its pro-rata share of these expenses.

3 The 25% noncontrolling interest in the Kroger/Safeway Portfolio has been deducted from each of the income statement line items.

4 Represents Fund III's pro-rata share of the following unconsolidated investments: White City, White Oak, Lincoln Road. and Self-Storage Management.

- 7 -

Funds from Operations ("FFO") 1

(in thousands)


	2011										2010
	Current				Current			Previous			Historic			Historic
	Year-to-Date				Quarter			Quarter			Year-to-Date			Quarter
	Period ended				3 months ended			3 months ended			Period ended			3 months ended
Funds from operations ("FFO"):	June 30, 2011				June 30, 2011			March 31, 2011			June 30, 2010			June 30, 2010

Net Income	$	39,657			$	30,234		$	9,423		$	17,928		$	12,798
Add back:
Depreciation of real estate and amortization of leasing costs:
(net of noncontrolling interest share)
Consolidated affiliates		9,055				4,597			4,458			8,790			4,202
Unconsolidated affiliates		734				381			353			833			475
Gain on sale of properties (net of noncontrolling interest share)
Consolidated affiliates		(29,360	)			(28,576	)		(784	)		-			-
Income attributable to noncontrolling interests'
share in Operating Partnership		477				362			115			246			160
Distributions on Preferred OP Units		10		2		5			5			10			5
FFO	$	20,573			$	7,003		$	13,570		$	27,807		$	17,640

Adjusted Funds from operations ("AFFO"):
Diluted FFO	$	20,573			$	7,003		$	13,570		$	27,807		$	17,640
Straight line rent, net		(996	)			(539	)		(457	)		(514	)		(221	)
Straight-line ground rent expense		44				22			22			44			22
FAS 141 rent, net		70				(68	)		138			337			158
FAS 141 interest expense		(31	)			(26	)		(5	)		(10	)		(5	)
Impairment of asset		2,616				2,616			-			-			-
Amortization of discount on convertible debt		540				271			269			511			256
Non real estate depreciation		232				116			116			256			114
Amortization of finance costs		561				272			289			578			249
Amortization of cost of management contracts		135				60			75			178			104
Tenant improvements		(3,817	)			(2,580	)		(1,237	)		(1,708	)		(478	)
Leasing commissions		(886	)			(411	)		(475	)		(395	)		(294	)
Capital expenditures		(218	)			-			(218	)		-			-
Gain from bargain purchase		-				-			-			(6,383	)		(6,383	)
(Gain) loss on extinguishment of debt		(1,571	)			102			(1,673	)		-			-
AFFO	$	17,252			$	6,838		$	10,414		$	20,701		$	11,162

Funds Available for Distribution ("FAD")
AFFO	$	17,252			$	6,838		$	10,414		$	20,701		$	11,162
Scheduled principal repayments		(1,299	)			(667	)		(632	)		(1,030	)		(511	)
FAD	$	15,953			$	6,171		$	9,782		$	19,671		$	10,651

Total weighted average shares and OP Units:
Basic		40,794				40,804			40,784			40,594			40,607
Diluted		41,075				41,104			41,046			40,810			40,844

FFO per share:
FFO per share - Basic	$	0.50			$	0.17		$	0.33		$	0.68		$	0.43
FFO per share - Diluted	$	0.50			$	0.17		$	0.33		$	0.68		$	0.43

AFFO per share - Basic	$	0.42			$	0.17		$	0.26		$	0.51		$	0.27
AFFO per share - Diluted	$	0.42			$	0.17		$	0.25		$	0.51		$	0.27

FAD per share - Basic	$	0.39			$	0.15		$	0.24		$	0.48		$	0.26
FAD per share - Diluted	$	0.39			$	0.15		$	0.24		$	0.48		$	0.26

Notes:

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 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.

- 8 -

Income Statements - EBITDA

Current Quarter and Year-to-Date

(in thousands)


	Year-to-Date																				Current Quarter
	Period ended June 30, 2011																				Three months ended June 30, 2011
	Core Retail											Opportunity Funds									Core Retail											Opportunity Funds
						Total									`											Total
	Wholly			Joint		Continuing			Discontinued			Continuing			Discontinued			TOTAL			Wholly			Joint		Continuing			Discontinued			Continuing			Discontinued		TOTAL
	Owned			Ventures		Operations			Operations			Operations			Operations						Owned			Ventures		Operations			Operations			Operations			Operations


NET INCOME	$	10,724		$	523	$	11,247		$	29,081		$	(1,464	)	$	793		$	39,657		$	3,027		$	266	$	3,293		$	28,761		$	(1,820	)	$	-	$	30,234

Add back:
Depreciation and amortization		6,538			746		7,284			343			2,083			-			9,710			3,460			381		3,841			-			1,063			-		4,904
FAS 141 amortization		(120	)		-		(120	)		-			308			-			188			(87	)		-		(87	)		-			190			-		103
Interest expense		8,280			1,851		10,131			-			1,774			-			11,905			4,346			937		5,283			-			873			-		6,156
Amortization of loan costs		248			-		248			-			313			-			561			124			-		124			-			148			-		272
FAS 141 interest expense		(10	)		-		(10	)		-			(21	)		-			(31	)		(5	)		-		(5	)		-			(21	)		-		(26	)
Impairment of asset		-			-		-			-			2,616			-			2,616			-			-		-			-			2,616			-		2,616
Gain on sale of properties		-			-		-			(28,576	)					(784	)		(29,360	)		-			-		-			(28,576	)		-			-		(28,576	)
Provision for income taxes		871			1		872			-			(73	)		-			799			405			-		405			-			(34	)		-		371
Gain on extinguishment of debt		(1,571	)		-		(1,571	)		-			-			-			(1,571	)		102			-		102			-			-			-		102
Noncontrolling interest - OP		486			-		486			-			-			-			486			366			-		366			-			-			-		366
Noncontrolling interests		-			-		-			-			(12	)		-			(12	)		-			-		-			-			(13	)		-		(13	)

EBITDA	$	25,446		$	3,121	$	28,567		$	848		$	5,524		$	9		$	34,948		$	11,738		$	1,584	$	13,322		$	185		$	3,002		$	-	$	16,509

- 9 -

Core Portfolio

Net Operating Income (NOI) - Same Property Performance 1

(in thousands)


	Quarter									Year-to-Date
							Growth in Same									Growth in Same
	Three months ended						Property NOI -			Period ended						Property NOI -
							Continuing Operations									Continuing Operations
	June 30, 2011			June 30, 2010			Favorable (unfavorable)			June 30, 2011			June 30, 2010			Favorable (unfavorable)

Reconciliation of total NOI to same property NOI:

NOI - Retail properties	$	10,844		$	11,353					$	21,857		$	22,442
NOI - Discontinued Operations		186			787						849			1,374

Total NOI		11,030			12,140						22,706			23,816

NOI - Properties in redevelopment		(187	)		(60	)					(201	)		(71	)
NOI - Discontinued Operations		(186	)		(787	)					(849	)		(1,374	)

Total	$	10,657		$	11,293			-5.6	%	$	21,656		$	22,371			-3.2	%


Same property NOI by revenues/expenses:


Revenues	$	15,537		$	15,299			1.6	%	$	31,340		$	31,582			-0.8	%
Expenses		4,879			4,006			-21.8	%		9,683			9,211			-5.1	%

Total Core Portfolio	$	10,658		$	11,293			-5.6	%	$	21,657		$	22,371			-3.2	%


Notes:
1 The above amounts includes the pro-rata activity related to the Company's consolidated and unconsolidated joint ventures.

- 10 -

Income Statements - Fee income by Opportunity Fund
Current Quarter and Year-to-Date
(in thousands)

	Fund I		Fund II		Fund III		Other		Total
Period ended June 30, 2011
Asset and property management fees and priority distributions	$	217	$	2,234	$	3,319	$	508	$	6,278
Transactional fees		90		2,238		1,058		426		3,812
Total management fees and priority distributions	$	307	$	4,472	$	4,377	$	934	$	10,090


	Fund I		Fund II		Fund III		Other		Total
Current Quarter ended June 30, 2011
Asset and property management fees and priority distributions	$	109	$	1,180	$	1,661	$	245	$	3,195
Transactional fees		69		705		678		42		1,494
Total management fees and priority distributions	$	178	$	1,885	$	2,339	$	287	$	4,689


	Fund I		Fund II		Fund III		Other		Total
Prior Quarter ended March 31, 2011
Asset and property management fees and priority distributions	$	108	$	1,054	$	1,658	$	263	$	3,083
Transactional fees		21		1,533		380		384		2,318
Total management fees and priority distributions	$	129	$	2,587	$	2,038	$	647	$	5,401

- 11 -

Pro-Rata Consolidated Balance Sheet
(in thousands)
	Consolidated				Noncontrolling			Company's			Pro-Rata
	Balance				Interest in			Interest in			Consolidated
	Sheet				Consolidated			Unconsolidated			Balance
	As Reported 1				Subsidiaries			Subsidiaries			Sheet 2					Notes
ASSETS
Real estate
Land	$	252,039			$	(130,239	)	$	14,482		$	136,282			1	The interim consolidated balance sheet is unaudited, although it reflect all adjustments, which in the
Buildings and improvements		936,514				(458,341	)		60,578			538,751				opinion of management, are necessary for the
Construction in progress		2,871				(908	)		20			1,983				fair presentation of the consolidated balance sheet
		1,191,424				(589,488	)		75,080			677,016				for the interim period.
Less: accumulated depreciation		(199,982	)			56,531			(10,395	)		(153,846	)
Net real estate		991,442				(532,957	)		64,685			523,170			2	The Company currently invests in Funds I, II & III and Mervyns I & II which are consolidated with
																the Company's financial statements. To provide
Net real estate under development		237,373		3		(176,850	)		-			60,523				investors with supplemental information,
												-				the Company's investments in these joint ventures are reflected above on a pro-rata basis
Cash and cash equivalents		148,859				(14,695	)		5,014			139,178				by calculating its ownership percentage for each
Cash in escrow		30,831				(20,324	)		931			11,438				of the above asset and liability line items. Similarly,
Investments in and advances to unconsolidated affiliates		68,523				(52,538	)		(13,716	)		2,270				the above presentation also includes the Company's share of assets and liabilities for
Rents receivable, net		3,937				(1,081	)		(110	)		2,746				unconsolidated investments which are accounted
Straight-line rents receivable, net		17,709				(9,311	)		1,386			9,784				for under the equity method of accounting for
Intercompany		-				-			-			-				the Company's finanical statements.
Notes Receivable		45,457				(8,432	)		-			37,025
Preferred equity investment		-				-			-			-			3	The components of Net real estate under development are as follows:
Deferred charges, net		24,345				(20,755	)		1,081			4,671				Fund II	$	178,432
Prepaid expenses and other assets		23,583				15,550			(1,511	)		37,622		4		Fund III		35,654
Acquired lease intangibles		20,808				(11,611	)		1,390			10,587				Total Opportunity Funds		214,086
Assets of discontinued operations		-				-			-			-				Core Portfolio		23,287
																Total	$	237,373
Total Assets	$	1,612,867			$	(833,004	)	$	59,150		$	839,014
															4	The components of Prepaid expenses and other assets are as follows:
LIABILITIES AND SHAREHOLDERS' EQUITY																Due from Fund Investors	$	28,982
																Prepaid expenses		4,296
Mortgage notes payable	$	831,270			$	(509,341	)	$	77,268		$	399,198				Accrued interest on Notes Receivable		1,755
Notes payable		39,221				-			-			39,221				Income tax receivables		889
Valuation of debt at acquisition, net of amortization		50				(20	)		210			240				Corporate assets		1,201
Acquired lease intangibles		5,867				(2,852	)		1,863			4,878				Other		499
Accounts payable and accrued expenses		36,336				(10,205	)		644			26,775				Total	$	37,622
Dividends and distributions payable		7,506				-			-			7,506
Due to related parties		-				-			-			-
Share of losses in excess of inv. in unconsolidated affiliates		21,356				-			(21,356	)		-
Other liabilities		16,963				(7,500	)		521			9,984
Liabilities of discontinued operations		-				-			-			-
Total liabilities		958,569				(529,918	)		59,150			487,802


Shareholders' equity:
Common shares		40				-			-			40
Additional paid-in capital		303,536				-			-			303,536
Accumulated other comprehensive income		(2,350	)			-			-			(2,350	)
Retained earnings		42,346				-			-			42,346
Total controlling interest		343,572				-			-			343,572
Non-controlling interest in subsidiary		310,726				(303,086	)		-			7,640
Total shareholders' equity		654,298				(303,086	)		-			351,212

Total Liabilities and Shareholders' Equity	$	1,612,867			$	(833,004	)	$	59,150		$	839,014

- 12 -

Notes Receivable 1
(in thousands)

	Balance at					Balance at																Underlying third-party
	March 30, 2011		Second			June 30, 2011						Stated			Effective							first mortgage
			Quarter					Accrued				Interest			Interest			Maturity		Extension
Investment	Principal		Activity			Principal		Interest		Total		Rate			Rate 2			Dates		Options		Amount		Maturity Dates


Georgetown - 5 property portfolio	$	8,000	$	-		$	8,000	$	65	$	8,065		9.75	%		10.23	%		11/2011	1 year			9,410	2012 and 2020

72nd Street		47,000		(47,000	)		-		-		-

First mortgage and other notes		8,854		-			8,854		885		9,739		13.60	%		13.62	%		2011		-		n/a		n/a

Mezzanine notes		18,048		27			18,075		606		18,681		14.34	%		15.12	%	Various			-		272,289	2011 thru 2019

Total notes receivable	$	81,902	$	(46,973	)	$	34,929	$	1,556	$	36,485		13.10	%		13.62	%



Notes:
1 The above activity does not include a $10,000 Fund III first mortgage investment and other non-real estate loans of $528.
2 Inclusive of points and exit fees.

- 13 -

2011 Guidance - Highlights
(in millions except per share amounts, all per share amounts are fully diluted)


	Current
	2011 Guidance			2010 Actual
Overall:

Fully diluted Common Shares and OP Units		41,000			40,876

Full year Funds from Operations ("FFO") per share	$	0.94 to $1.05		$	1.23

Earnings per Share ("EPS")	$	0.44 to $0.55		$	0.74


FFO Components:

Core and pro-rata share of opportunity Fund ("Fund") portfolio income1	$	42.5 to $44.0		$	48.2

Asset and property management fee income, net of TRS taxes	$	11.0 to $11.5		$	10.5

Transactional fee income, net of TRS taxes	$	6.0 to $7.0		$	5.7

Promote, RCP and other income, net of TRS taxes	$	2.0 to $3.0		$	1.9

Gain on bargain purchase		-		$	6.4

General and administrative expense	$	(23.0) to $(22.5	)	$	(22.2	)

Total	$	38.5 to $43.0		$	50.5



1 Includes additional interest on the Company's convertible debt pursuant to
ASC Topic 470-20 "Debt with Conversion and Other Options" as follows:	$	1.1		$	1.0

- 14 -

Net Asset Valuation Information
(in thousands)

	CORE		FUND I					FUND II									FUND III
			Fund Level		AKR pro-rata share			Fund Level				AKR Pro-rata Share					Fund Level				AKR pro-rata share
					%		$	Quarterly		Annualized (x4)		%			$		Quarterly		Annualized (x4)		%				$
Current NOI
Operating properties1	$	10,844		--				$	-	$	-		20.00	%	$	-	$	2,574	$	10,296		19.90	%	$	2,049
Operating properties - Unconsolidated Affiliates									-		-							753		3,012					599
Development Portfolio
Construction complete - Stabilized		-							1,840		7,360					1,472		-		-					-
Construction complete - Pre-stabilized		-							3,277		13,108					2,622		-		-					-
Storage portfolio		-							196		784					157		2,623		10,492					2,088
Total NOI	$	10,844						$	5,313	$	21,252				$	4,250	$	5,950	$	23,800				$	4,736


Cost to Date2
Construction complete (both stabilized and pre-stabilized)										$	402,000				$	80,400			$	-				$	-
Under construction											88,300					17,660				23,500					4,677
In-design											33,900					6,780				22,800					4,537
Storage portfolio											-					-				186,700					37,154


Costs to Complete2
Construction complete (both stabilized and pre-stabilized)										$	19,300				$	3,860			$	-				$	-
Under construction											111,700					22,340				2,100					418
In-design											-					-				-					-


Annual NOI Upon Stabilization (Mid-Point of Range)
Construction complete (both stabilized and pre-stabilized)										$	33,704				$	6,741			$	-				$	-
Storage portfolio											-					-				14,936					2,972
Under construction											16,000					3,200				2,048					408


Debt	$	306,590	$	8,260						$	325,782				$	61,513			$	347,096				$	56,688


Gross asset value1				43,400
Net Asset Value			$	35,140	37.78	%	$ 13,276

Notes:

1It is not recommended to apply a capitalization rate to current Fund I NOI as this NOI declines during 2011 due primarily to the structure of the Kroger/Safeway Portfolio leases.

Fund I value is based on property appraisals. Pro-rata share is 20% (AKR promote) + 22% x 80% ( AKR remaining share after promote) = 37.78%.

Total future promote is approximatly $5,500 ($35,140 x 20% x 77.78%).

2See detail on pages 28 and 29 of this supplement.

- 15 -

Selected Operating Ratios
(in thousands)

	Three months ended June 30,								Six months ended June 30,									Three months ended June 30,				Three months ended March 31,

	2011				2010				2011				2010					2011				2011
COVERAGE RATIOS1																	LEVERAGE RATIOS

EBITDA2	$	16,509			$	18,289			$	34,948			$	35,293			Debt4	$	438,419			$	451,282
Divided by Interest expense		6,156				5,979				11,905				11,926			Total Market Capitalization		1,268,881				1,223,541
Interest Coverage Ratio		2.68		x		3.06		x		2.94		x		2.96		x	Debt/Total Market Capitalization		35	%			37	%

EBITDA	$	16,509			$	18,289			$	34,948			$	35,293			Debt + Preferred Equity (Preferred O.P. Units)	$	438,929			$	451,756
Divided by ( Interest expense		6,156				5,979				11,905				11,926			Total Market Capitalization		1,268,881				1,223,541
Plus: Preferred Dividends)3		5				5				10				10			Debt+Preferred Equity/Total Market Capitalization		35	%			37	%
Fixed Charge Coverage Ratio		2.68		x		3.06		x		2.93		x		2.96		x
																	Debt	$	306,590			$	316,825
EBITDA	$	16,509			$	18,289			$	34,948			$	35,293			EBITDA (Annualized)		57,134				63,632
Divided by ( Interest expense		6,156				5,979				11,905				11,926			Debt/EBITDA - Core Portfolio		5.37		x		4.98		x
Plus: Principal Amortization)		667				511				1,299				1,030
Debt Service Coverage Ratio		2.42		x		2.82		x		2.65		x		2.72		x	Debt5	$	178,608			$	230,678
																	EBITDA (Annualized)		57,134				63,632
Payout Ratios																	Net Debt/EBITDA - Core Portfolio		3.13		x		3.63		x

Dividends (Shares) & Distributions (O.P. Units) paid	$	7,506			$	7,426			$	15,011			$	14,849			Debt	$	438,419			$	451,282
FFO		7,003				17,640				20,573				27,807			EBITDA (Annualized)		68,182				73,755
FFO Payout Ratio		107	%			42	%			73	%			53	%		Debt/EBITDA - Core Portfolio and Opportunity Funds		6.43		x		6.12		x

Dividends (Shares) & Distributions (O.P. Units) paid	$	7,506			$	7,426			$	15,011			$	14,849			Debt6	$	299,241			$	355,115
AFFO		6,838				11,162				17,252				20,701			EBITDA (Annualized)		68,182				73,755
AFFO Payout Ratio		110	%			67	%			87	%			72	%		Net Debt/EBITDA - Core Portfolio and
																	Opportunity Funds		4.39		x		4.81		x
Dividends (Shares) & Distributions (O.P. Units) paid	$	7,506			$	7,426			$	15,011			$	14,849
FAD		6,171				10,651				15,953				19,671			NOI (Annualized)	$	44,120			$	46,704
FAD Payout Ratio		122	%			70	%			94	%			75	%		Debt		306,590				316,825
																	Debt Yield - Core Portfolio		14.4	%			14.7	%

																	NOI (Annualized)	$	44,120			$	46,704
																	Debt5		178,608				230,678
																	Net Debt Yield - Core Portfolio		24.7	%			20.2	%

																	NOI (Annualized)	$	54,016			$	55,528
																	Debt		438,419				451,282
																	Debt Yield - Core Portfolio and Opportunity Funds		12.3	%			12.3	%

																	NOI (Annualized)	$	54,016			$	55,528
																	Debt6		299,241				355,115
																	Net Debt Yield - Core Portfolio and Opportunity Funds		18.1	%			15.6	%

Notes:

1Quarterly results for 2011 and 2010 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 EBITDA, interest expense and principal amortization related to both the Company's consolidated and unconsolidated investments in joint ventures.

2See page 9 for a calculation of EBITDA.

3Represents preferred distributions on Preferred Operating partnership Units.

4Includes the Company's pro-rata share of consolidated and unconsolidated joint venture debt.

5Reflects debt net of the current Core Portfolio cash balance as of June 30, 2011.

6Reflects debt net of the current Core Portfolio and pro-rata share of the Opportunity Funds cash balance as of June 30, 2011.

- 16 -

Portfolio Debt - Summary
Reconciliation from Pro-Rata Share of Debt to GAAP Debt per Financial Statement
(in thousands)

	Acadia Pro-Rata Share of Debt 2																			Reconciliation to Consolidated Debt as Reported
																				Add:		Less:			Acadia
	Core Portfolio						Opportunity Funds					Total								Noncontrolling		Pro-rata Share of			Consolidated
	Principal			Interest			Principal		Interest			Principal		Interest			Fixed vs			Interest Share of		Unconsolidated			Debt
Mortgage Notes Payable	Balance			Rate			Balance		Rate			Balance		Rate			Variable			Consolidated Debt 3		Debt 4			As Reported

Fixed-Rate Debt 1	$	340,641			5.6	%	$	30,383		5.7	%	$	371,024		5.6	%		85	%	$	94,835	$	(70,628	)	$	395,231
Variable-Rate Debt 1		(34,051	)		1.5	%		101,446		2.4	%		67,395		3.5	%		15	%		414,505		(6,640	)		475,260

Total	$	306,590			6.1	%	$	131,829		3.5	%	$	438,419		5.3	%		100	%	$	509,341	$	(77,268	)		870,491

FAS 141 purchase price debt allocation																										50
Total debt as reported																									$	870,541

Notes

1 Fixed-rate debt includes notional principal fixed through swap transactions.

2 Represents the Company's pro-rata share of debt based on its percent ownership.

3 Represents the noncontrolling Interest pro-rata share of consolidated partnership debt based on its percent ownership.

4 Represents the Company's pro-rata share of unconsolidated partnership debt based on percent ownership.

- 17 -

Debt Analysis
(in thousands)

		Principal Balance at			Acadia's Pro-rata Share						Interest			Maturity	Extension
Property	Entity	June 30, 2011			Percent			Amount			Rate			Date	Options

CORE PORTFOLIO

Fixed-Rate Debt
Acadia Realty Trust7	Acadia	$	39,220			100.0	%	$	39,220			6.03	%	12/20/2011	None
Clark Diversey	Acadia		4,559			100.0	%		4,559			6.35	%	7/1/2014	None
New Loudon Center	Acadia		14,002			100.0	%		14,002			5.64	%	9/6/2014	None
Crossroads Shopping Center	Crossroads JV		60,877			49.0	%		29,829			5.37	%	12/1/2014	None
Crescent Plaza	Acadia		17,413			100.0	%		17,413			4.98	%	9/6/2015	None
Pacesetter Park Shopping Center	Acadia		12,037			100.0	%		12,037			5.12	%	11/6/2015	None
Elmwood Park Shopping Center	Acadia		33,969			100.0	%		33,969			5.53	%	1/1/2016	None
Gateway Shopping Center	Acadia		20,438			100.0	%		20,438			5.44	%	3/1/2016	None
Acadia Brandywine	Brandywine JV		166,200			22.2	%		36,933			5.99	%	7/1/2016	None
Walnut Hill Plaza	Acadia		23,500			100.0	%		23,500			6.06	%	10/1/2016	None
239 Greenwich Avenue	Acadia		26,000			75.0	%		19,500			5.42	%	2/11/2017	None
Merrillville Plaza	Acadia		26,250			100.0	%		26,250			5.88	%	8/1/2017	None
Boonton	Acadia		7,954			60.0	%		4,772			6.40	%	11/1/2032	None
Interest rate swaps1	Acadia		58,219			100.0	%		58,219			5.21	%	Various

Sub-Total Fixed-Rate Debt			510,638						340,641			5.61	%

Variable-Rate Debt

Various2	Acadia		1,000			100.0	%		1,000		Libor + 125			12/1/2011	1 x 12 mos.
Branch Plaza	Acadia		13,808			100.0	%		13,808		Libor + 130			12/1/2011	1 x 12 mos.
Village Commons Shopping Center	Acadia		9,360			100.0	%		9,360		Libor + 140			6/30/2018
Interest rate swaps1	Acadia		(58,219	)		100.0	%		(58,219	)

Sub-Total Variable-Rate Debt			(34,051	)					(34,051	)	Libor + 134

Total Core Portfolio Debt		$	476,587					$	306,590			6.07	%

- 18 -

Debt Analysis (continued)
(in thousands)

		Principal Balance at			Acadia's Pro-rata Share						Interest			Maturity	Extension
Property	Entity	June 30, 2011			Percent			Amount			Rate			Date	Options

OPPORTUNITY FUNDS

Fixed-Rate Debt
Storage Post - Various4	Fund III	$	41,500			18.9	%	$	7,846			5.30	%	7/31/2011	2 x 12 mos.
Lincoln Road9	Fund III		20,446			18.9	%		3,866			6.14	%	8/11/2014	None
CityPoint	Fund II		20,000			18.8	%		3,766			7.25	%	11/1/2014	None
216th Street3	Fund II		25,500			19.8	%		5,054			5.80	%	10/1/2017	None
Atlantic Avenue	Fund II		11,540			13.3	%		1,539			7.34	%	1/1/2020	None
Interest rate swaps1	Funds I, II & III		42,911			19.4	%		8,312			4.83	%	Various

Sub-Total Fixed-Rate Debt			161,897						30,383			5.71	%

Variable-Rate Debt
Liberty Avenue	Fund II		9,950			19.8	%		1,972		Libor + 325			9/1/2011	1 x 12 mos.
Acadia Strategic Opportunity Fund III, LLC6	Fund III		195,439			19.9	%		38,892		Libor + 60			10/9/2011	None
Tarrytown Shopping Center	Fund I		8,260			37.8	%		3,121		Libor + 165			10/30/2011	1 x 12 mos.
Canarsie Plaza	Fund II		49,880			15.9	%		7,909		Libor + 400			1/12/2012	1 x 36 mos.
Fordham Plaza3	Fund II		85,362			19.8	%		16,918		Libor + 350			9/30/2012	None
161st Street3	Fund II		28,900			19.8	%		5,728		Libor + 550			4/1/2013	None
CityPoint	Fund II		20,650			18.8	%		3,888		Libor + 250			8/12/2013	2 x 12 mos.
Pelham Manor3	Fund II		34,000			19.8	%		6,739		Libor + 275			12/1/2013	None
Acadia Strategic Opportunity Fund II, LLC5	Fund II		40,000			20.0	%		8,000		Libor + 290			12/22/2014	None
Cortlandt Towne Center	Fund III		50,000			19.9	%		9,950		Libor + 190			10/26/2015	None
White City Shopping Center8	Fund III		39,711			16.7	%		6,640		Libor + 260			12/23/2017	1 x 36 mos.
Interest rate swaps1	Funds I, II & III		(42,911	)		19.4	%		(8,312	)

Sub-Total Variable-Rate Debt			519,241						101,446		Libor + 220

Total Opportunity Funds Portfolio Debt		$	681,138					$	131,828			3.47	%

- 19 -

Debt Analysis - Notes
(in thousands)


1The Company has hedged a portion of it's variable-rate debt with variable to fixed-rate swap agreements as follows:

	Notional					Average						Maturity
	principal		Spread			Swap rate			All-in Rate			Date

Core Portfolio	$	10,424		1.34	%		4.90	%		6.24	%	10/1/2011
		7,795		1.34	%		5.14	%		6.48	%	3/1/2012
		15,000		1.34	%		3.79	%		5.13	%	11/30/2012
		15,000		1.34	%		3.41	%		4.75	%	11/30/2012
		10,000		1.34	%		2.65	%		3.99	%	11/30/2012
	$	58,219		1.34	%		3.87	%		5.21	%

Opportunity Funds	$	4,130		1.65	%		0.42	%		2.07	%	10/28/2011
		9,000		3.25	%		0.50	%		3.75	%	9/1/2011
		19,854		2.60	%		2.90	%		5.50	%	12/26/2017
		9,927		2.60	%		3.02	%		5.62	%	12/26/2017
	$	42,911		2.64	%		2.19	%		4.83	%

Total Core Portfolio and Opportunity Funds	$	101,130		1.89	%		3.16	%		5.05	%

2This is a revolving facility for up to $64,498 and is collateralized by Bloomfield Town Square, Hobson West Plaza, Marketplace of Absecon,
Abington Towne Center, Methuen Shopping Center and Town Line Plaza.
3Fund II is a 99.1% joint venture partner on this investment. As such, Acadia's pro-rata share of the above debt is 99.1% x 20%, or 19.8%.
4The loan is collateralized by Storage Post locations - Linden, Webster Avenue, Jersey City, Fordham Road and Lawrence.
5This is a line of credit for up to $40,000.
6This is a line of credit with no additional capacity.
7Convertible note balance pursuant to ASC Topic 470-20. The actual face amount of the convertible notes at June 30, 2011 is $39,743.
While the interest rate on the convertible notes is 3.75%, the effective fair value interest rate is 6.03%.
8Fund III is an 84.0% joint venture partner on this investment. As such, Acadia's pro-rata share of the above debt is 84.0% x 19.9%, or 16.7%.
9Fund III is a 95.0% joint venture partner on this investment. As such, Acadia's pro-rata share of the above debt is 95.0% x 19.9%, or 18.9%.

- 20 -

Future Debt Maturities - Including Extension Options
(in thousands)

Core Portfolio
	Total Debt Maturities								Acadia's Pro-rata Share							Weighted Average Interest Rate of Maturing Debt
	Scheduled								Scheduled
Year	Amortization		Maturities		Total				Amortization		Maturities		Total			Total Debt			Fixed-Rate Debt			Variable-Rate Debt

2011	$	1,594	$	39,743	$	41,337			$	1,310	$	39,743	$	41,053			3.75	%		3.75	%		n/a
2012		3,581		14,458		18,039				2,990		14,458		17,448			1.48	%		n/a			1.48	%
2013		3,754		-		3,754				3,124		-		3,124			n/a			n/a			n/a
2014		3,786		74,405		78,191				3,120		45,280		48,400			5.54	%		5.54	%		n/a
2015		2,348		27,363		29,711				2,266		27,363		29,629			5.04	%		5.04	%		n/a
Thereafter		7,818		298,260		306,078				5,230		162,229		167,459			5.54	%		5.75	%		1.59	%
Total	$	22,881	$	454,229	$	477,110			$	18,040	$	289,073	$	307,113

Less: additional convertible notes balance						(523	)	1						(523	)
Balance per Portfolio Debt Detail					$	476,587							$	306,590

Opportunity Funds
	Total Debt Maturities								Acadia's Pro-rata Share							Weighted Average Interest Rate of Maturing Debt
	Scheduled								Scheduled
Year	Amortization		Maturities		Total				Amortization		Maturities		Total			Total Debt			Fixed-Rate Debt			Variable-Rate Debt

2011	$	1,098	$	236,939	$	238,037			$	206	$	46,738	$	46,944			1.54	%		5.30	%		0.79	%
2012		2,225		101,869		104,094				410		21,684		22,094			4.40	%		n/a			4.40	%
2013		1,294		77,421		78,715				234		15,372		15,606			3.99	%		n/a			3.99	%
2014		849		64,180		65,029				147		12,393		12,540			5.24	%		6.14	%		4.87	%
2015		626		120,530		121,156				103		21,747		21,850			3.80	%		2.69	%		4.04	%
Thereafter		3,131		70,976		74,107				515		12,279		12,794			4.58	%		6.15	%		2.79	%
Total	$	9,223	$	671,915	$	681,138			$	1,615	$	130,213	$	131,828


Notes:
1Includes additional convertible notes balance of $523 maturing in 2011.

- 21 -

Future Debt Maturities - Not Including Extension Options
(in thousands)

Core Portfolio
	Total Debt Maturities								Acadia's Pro-rata Share							Weighted Average Interest Rate of Maturing Debt
	Scheduled								Scheduled
Year	Amortization		Maturities		Total				Amortization		Maturities		Total			Total Debt			Fixed-Rate Debt			Variable-Rate Debt

2011	$	1,574	$	54,448	$	56,022			$	1,290	$	54,448	$	55,738			3.14	%		3.75	%		1.48	%
2012		3,354		-		3,354				2,763		-		2,763			n/a			n/a			n/a
2013		3,754		-		3,754				3,124		-		3,124			n/a			n/a			n/a
2014		3,786		74,405		78,191				3,120		45,280		48,400			5.47	%		5.47	%		n/a
2015		2,348		27,363		29,711				2,266		27,363		29,629			5.04	%		5.04	%		n/a
Thereafter		7,818		298,260		306,078				5,230		162,229		167,459			5.74	%		5.86	%		1.59	%
Total	$	22,634	$	454,476	$	477,110			$	17,793	$	289,320	$	307,113

Less: additional convertible notes balance						(523	)	1						(523	)
Balance per Portfolio Debt Detail					$	476,587							$	306,590


Opportunity Funds
	Total Debt Maturities								Acadia's Pro-rata Share							Weighted Average Interest Rate of Maturing Debt
	Scheduled								Scheduled
Year	Amortization		Maturities		Total				Amortization		Maturities		Total			Total Debt			Fixed-Rate Debt			Variable-Rate Debt
2011	$	1,073	$	255,111	$	256,184			$	201	$	51,824	$	52,025			1.66	%		5.30	%		0.95	%
2012		2,111		133,716		135,827				397		24,525		24,922			5.58	%		6.00	%		5.56	%
2013		1,294		98,071		99,365				234		19,260		19,494			3.72	%		2.69	%		3.99	%
2014		849		64,180		65,029				147		12,393		12,540			5.30	%		6.14	%		4.94	%
2015		626		50,000		50,626				103		9,950		10,053			2.09	%		n/a			2.09	%
Thereafter		1,401		72,706		74,107				226		12,568		12,794			4.55	%		6.27	%		2.79	%
Total	$	7,354	$	673,784	$	681,138			$	1,309	$	130,519	$	131,828


Notes:
1Includes additional convertible notes balance of $523 maturing in 2011.

- 22 -

Overview of Acadia Strategic Opportunity Funds

Item

FUND I

FUND II

FUND III

Date formed

September 2001

June 2004

May 2007

Capital commitment

$90 million

$300 million

$503 million

Funding

Fully funded

$273.2 million funded through June 30, 2011

$143.0 million funded through June 30, 2011

Partnership structure

Equity Contribution:

22.22% - Acadia

20% - Acadia

77.78% - Four institutional investors

80% - Six institutional investors

80% - 14 institutional investors

Cash flow distribution:

22.22% - Acadia

20% - Acadia

77.78% - Four institutional investors

80% - Six institutional investors

80% - 14 institutional investors

Promote:

20% to Acadia once all partners (including

Acadia) have received 9% preferred return and

Acadia) have received 8% preferred return and

Acadia) have received 6% preferred return and

return of equity

Remaining 80% is distributed to all the partners

(including Acadia).

All original capital and accumulated preference

All unfunded capital is anticipated to be used to

The Fund is currently in acquisition phase

has been paid. Acadia is entitled to a Promote

complete existing projects

through June 2012.

on all future distributions.

Fees to Acadia

Priority distribution fee equal to 1.5% of implied

Asset management fee equal to 1.5% of total

capital

committed capital

Priority distribution fee equal to 4% of gross

Property management fee equal to 4% of gross

property revenues

Market rate leasing fees

Market rate construction/project management fees

Development fee equal to 3% of total project cost

- 23 -

Opportunity Fund Retail Properties - Detail

			Ownership			Gross Leasable Area						Occupancy									Annualized Base Rent
	Anchors		%			Anchors		Shops		Total		Anchors			Shops			Total			Anchors		Shops		Total		Anchors		Shops		Per Sq. Ft.
Fund I Portfolio Detail:

MIDWEST

Ohio
Granville Centre	Lifestyle Family Fitness, Inc.			100	%		90,047		44,950		134,997		38.81	%		28.92	%		35.52	%	$	450,336	$	142,686	$	593,022		12.88		10.98	$	12.37

NEW YORK

New York
Tarrytown Shopping Center	Walgreen's			100	%		15,497		19,482		34,979		100.00	%		70.58	%		83.61	%		475,000		430,634		905,634		30.65		31.32		30.96

VARIOUS

Kroger/Safeway Portfolio (18 Properties)	Kroger/Safeway			75	%		709,978		4,798		714,776		90.14	%		100.00	%		90.21	%		3,169,795		75,390		3,245,185		4.95		15.71		5.03

Grand Total - Fund I							815,522		69,230		884,752		84.66	%		45.57	%		81.60	%	$	4,095,131	$	648,710	$	4,743,841	$	5.93	$	20.56	$	6.57

Fund II Portfolio Detail 2

NEW YORK

New York
Pelham Manor Shopping Plaza	BJ's Wholesale Club, PetSmart, Storage Post			99.1	%		169,512		59,009		228,521		100.00	%		65.07	%		90.98	%		4,287,282		1,337,610		5,624,892		25.29		34.84		27.05
Fordham Place	Walgreens, Best Buy, 24 Hour Fitness, Sears			99.1	%		74,899		44,547		119,446		100.00	%		100.00	%		100.00	%		2,873,228		2,646,532		5,519,760		38.36		59.41		46.21
Liberty Avenue	CVS, Storage Post			99.1	%		10,880		15,245		26,125		100.00	%		100.00	%		100.00	%		394,944		449,361		844,305		36.30		29.48		32.32
Canarsie	BJ's Wholesale Club, Planet Fitness, PetSmart			79.3	%		177,135		96,401		273,536		100.00	%		35.53	%		77.28	%		5,100,000		1,045,440		6,145,440		28.79		30.52		29.07
216th Street	NYC Human Resources Administration			99.1	%		60,000		-		60,000		100.00	%		0.00	%		100.00	%		2,340,000		120,000		2,460,000		39.00		-		41.00
161st Street1	Various New York City & State agencies			99.1	%		128,690		101,591		230,281		100.00	%		61.73	%		83.12	%		3,127,173		1,323,486		4,450,659		24.30		21.10		23.25

Grand Total - Fund II							621,116		316,793		937,909		100.00	%		61.60	%		87.03	%		18,122,627		6,922,429		25,045,056		29.18		35.47		30.68

Fund III Portfolio Detail 2

NEW YORK

New York
Cortlandt Towne Center	Wal-Mart, Best Buy, A&P			100.0	%		472,901		168,310		641,211		91.50	%		91.16	%		91.41	%	$	5,846,672	$	3,503,583	$	9,350,255	$	13.51	$	22.83		15.95

NEW ENGLAND

Massachusetts
White City Shopping Center	Shaw's (Supervalue), Michaels			84.0	%		131,618		123,898		255,516		100.00	%		78.89	%		89.76	%		1,914,804		2,849,016		4,763,820	$	14.55	$	29.15		20.77

MID-ATLANTIC

Maryland
White Oak	Super Fresh (A&P)			90.0	%		64,626		-		64,626		100.00	%		-			100.00	%		874,416		-		874,416	$	13.53	$	-		13.53

SOUTHEAST

Florida
Lincoln Road		-		95.0	%		-		61,443		61,443		-			54.25	%		54.25	%		-		2,981,340		2,981,340	$	-	$	89.45	$	89.45

MIDWEST
Illinois
Heritage Shops	LA Fitness			100.0	%		49,878		55,571		105,449		100.00	%		54.52	%		76.03	%		1,077,752		1,502,653		2,580,405	$	21.61	$	49.60	$	32.18

Grand Total - Fund III							719,023		409,222		1,128,245		94.41	%		76.93	%		88.07	%	$	9,713,644	$	10,836,592	$	20,550,236	$	14.31	$	34.42	$	20.68

Notes:
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.

The following Fund II and Fund III properties are currently undergoing construction or are in the design phase as further detailed under Redevelopment Projects.
Property	Ownership %
Sherman Avenue		99.1	%
CityPoint		94.2	%
Sheepshead Bay		100.0	%
125 Main Street, Westport, CT.		100.0	%

1Currently operating, but redevelopment activities have commenced.

2Fund II and Fund III portfolio detail does not include the Storage Portfolio. Storage Portfolio property detail is reported separately on page 31 of this supplement.

- 24 -

Opportunity Funds Lease Expirations

	No. of Leases		Gross Leased Area					Annual Base Rent
FUND I:	Expiring		Square Footage		Percent of Total			Amount		Percent of Total			Avg. per Sq. Ft.

Anchor Tenants
2014		14		548,078		79.38	%	$	2,743,795		67.00	%	$	5.01
2017		1		34,951		5.06	%		450,336		11.00	%		12.88
2019		2		91,900		13.31	%		426,000		10.40	%		4.64
2080		1		15,497		2.24	%		475,000		11.60	%		30.65
Total		18		690,426		100.00	%	$	4,095,131		100.00	%	$	5.93

Total Vacant				125,096
Total Square Feet				815,522

Shop Tenants
Month to Month		2		7,200		25.45	%	$	56,522		8.71	%	$	7.85
2011		1		1,955		6.91	%		27,370		4.22	%		14.00
2012		2		2,920		10.32	%		64,002		9.87	%		21.92
2014		3		4,871		17.22	%		132,715		20.46	%		27.25
2015		2		2,524		8.92	%		35,700		5.50	%		14.14
2018		1		1,761		6.22	%		54,996		8.48	%		31.23
2019		1		1,904		6.73	%		30,000		4.62	%		15.76
2020		3		5,157		18.23	%		247,405		38.14	%		47.97
Total		15		28,292		100.00	%	$	648,710		100.00	%	$	22.93

Total Vacant				40,938
Total Square Feet				69,230

Total Anchor and Shop Tenants
Month to Month		2		7,200		1.00	%	$	56,522		1.19	%	$	7.85
2011		15		550,033		76.52	%		2,771,165		58.42	%		5.04
2012		2		2,920		0.41	%		64,002		1.35	%		21.92
2014		3		4,871		0.68	%		132,715		2.80	%		27.25
2015		2		2,524		0.35	%		35,700		0.75	%		14.14
2017		1		34,951		4.86	%		450,336		9.49	%		12.88
2018		1		1,761		0.25	%		54,996		1.16	%		31.23
2019		3		93,804		13.05	%		456,000		9.61	%		4.86
2020		3		5,157		0.72	%		247,405		5.22	%		47.97
2080		1		15,497		2.16	%		475,000		10.01	%		30.65
Total		33		718,718		100.00	%	$	4,743,841		100.00	%	$	6.60

Total Vacant				166,034
Total Square Feet				884,752

- 25 -

	No. of Leases		Gross Leased Area					Annual Base Rent
FUND II:	Expiring		Square Footage		Percent of Total			Amount		Percent of Total			Avg. per Sq. Ft.

Anchor Tenants
2011		1		128,690		20.72	%	$	3,127,173		17.26	%	$	24.30
2013		1		20,149		3.24	%		564,172		3.11	%		28.00
2019		1		39,705		6.39	%		1,747,020		9.64	%		44.00
2021		1		19,958		3.21	%		423,110		2.33	%		21.20
2023		1		35,194		5.67	%		1,126,208		6.21	%		32.00
2027		1		60,000		9.66	%		2,340,000		12.91	%		39.00
2030		1		177,135		28.52	%		5,100,000		28.14	%		28.79
2032		1		10,880		1.75	%		394,944		2.18	%		36.30
2033		1		129,405		20.83	%		3,300,000		18.21	%		25.50
Total		9		621,116		100.00	%	$	18,122,627		100.00	%	$	29.18

Total Vacant				-
Total Square Feet				621,116

Shop Tenants
Month to Month		1		9,967		5.11	%	$	99,670		1.44	%	$	10.00
2011		3		24,065		12.33	%		584,774		8.45	%		24.30
2012		3		27,365		14.04	%		573,208		8.28	%		20.95
2014		1		5,081		2.60	%		193,078		2.79	%		38.00
2016		2		6,462		3.31	%		197,550		2.85	%		30.57
2018		2		3,600		1.84	%		156,600		2.26	%		43.50
2019		4		9,318		4.77	%		515,177		7.44	%		55.29
2020		2		16,309		8.36	%		547,183		7.90	%		33.55
2021		1		10,993		5.63	%		329,002		4.75	%		29.93
2022		1		-		0.00	%		120,000		1.73	%		-
2023		1		31,417		16.10	%		1,131,012		16.34	%		36.00
2027		1		6,208		3.18	%		217,901		3.15	%		35.10
2031		2		34,365		17.61	%		1,057,275		15.27	%		30.77
2048		1		10,000		5.12	%		1,200,000		17.33	%		120.00
Total		25		195,150		100.00	%	$	6,922,430		100.00	%	$	35.47

Total Vacant				121,643
Total Square Feet				316,793

Total Anchor and Shop Tenants
Month to Month		1		9,967		1.22	%	$	99,670		0.40	%	$	10.00
2011		4		152,755		18.72	%		3,711,947		14.83	%		24.30
2012		3		27,365		3.35	%		573,208		2.29	%		20.95
2013		1		20,149		2.47	%		564,172		2.25	%		28.00
2014		1		5,081		0.62	%		193,078		0.77	%		38.00
2016		2		6,462		0.79	%		197,550		0.79	%		30.57
2018		2		3,600		0.44	%		156,600		0.63	%		43.50
2019		5		49,023		6.01	%		2,262,197		9.03	%		46.15
2020		2		16,309		2.00	%		547,183		2.18	%		33.55
2021		2		30,951		3.79	%		752,112		3.00	%		24.30
2022		1		-		0.00	%		120,000		0.48	%		-
2023		2		66,611		8.16	%		2,257,220		9.01	%		33.89
2027		2		66,208		8.11	%		2,557,901		10.21	%		38.63
2030		1		177,135		21.70	%		5,100,000		20.36	%		28.79
2031		2		34,365		4.21	%		1,057,275		4.22	%		30.77
2032		1		10,880		1.33	%		394,944		1.58	%		36.30
2033		1		129,405		15.85	%		3,300,000		13.18	%		25.50
2048		1		10,000		1.23	%		1,200,000		4.79	%		120.00
Total		34		816,266		100.00	%	$	25,045,057		100.00	%	$	30.68

Total Vacant				121,643
Total Square Feet				937,909

- 26 -

	No. of Leases		Gross Leased Area					Annual Base Rent
FUND III:	Expiring		Square Footage		Percent of Total			Amount		Percent of Total			Avg. per Sq. Ft.

Anchor Tenants
2012		1		19,079		2.81	%		276,564		2.85	%		14.50
2013		2		48,855		7.20	%		877,689		9.04	%		17.97
2014		2		56,379		8.31	%		908,695		9.35	%		16.12
2015		2		29,489		4.34	%		489,840		5.04	%		16.61
2016		1		19,050		2.81	%		295,284		3.04	%		15.50
2017		2		52,131		7.68	%		927,312		9.55	%		17.79
2018		3		238,707		35.16	%		2,562,678		26.38	%		10.74
2021		2		100,227		14.76	%		1,257,383		12.94	%		12.55
2022		1		65,028		9.58	%		1,040,447		10.71	%		16.00
2025		1		49,878		7.35	%		1,077,752		11.10	%		21.61
Total		17		678,823		100.00	%	$	9,713,644		100.00	%	$	14.31

Total Vacant				40,200
Total Square Feet				719,023

Shop Tenants
Month to Month		1		2,609		0.83	%		179,976		1.66	%		68.98
2011		4		8,092		2.57	%		494,158		4.56	%		61.07
2012		12		41,014		13.02	%		1,169,804		10.79	%		28.52
2013		11		49,283		15.65	%		1,550,891		14.31	%		31.47
2014		14		57,313		18.19	%		1,630,957		15.05	%		28.46
2015		10		31,707		10.07	%		832,956		7.69	%		26.27
2016		13		40,543		12.87	%		1,525,968		14.08	%		37.64
2017		5		25,515		8.10	%		1,252,386		11.56	%		49.08
2018		4		9,224		2.93	%		253,558		2.34	%		27.49
2019		4		18,435		5.85	%		1,133,532		10.46	%		61.49
2020		3		10,375		3.29	%		136,718		1.26	%		13.18
2021		4		13,951		4.43	%		527,065		4.86	%		37.78
2026		2		6,935		2.20	%		148,623		1.37	%		21.43
Total		87		314,996		100.00	%	$	10,836,592		100.00	%	$	34.40

Total Vacant				94,226
Total Square Feet				409,222

Total Anchor and Shop Tenants
Month to Month		1		2,609		0.26	%		179,976		0.88	%		68.98
2011		4		8,092		0.81	%		494,158		2.40	%		61.07
2012		13		60,093		6.05	%		1,446,368		7.04	%		24.07
2013		13		98,138		9.87	%		2,428,580		11.82	%		24.75
2014		16		113,692		11.44	%		2,539,652		12.36	%		22.34
2015		12		61,196		6.16	%		1,322,796		6.44	%		21.62
2016		14		59,593		6.00	%		1,821,252		8.86	%		30.56
2017		7		77,646		7.81	%		2,179,698		10.61	%		28.07
2018		7		247,931		24.95	%		2,816,236		13.70	%		11.36
2019		4		18,435		1.85	%		1,133,532		5.52	%		61.49
2020		3		10,375		1.04	%		136,718		0.67	%		13.18
2021		6		114,178		11.49	%		1,784,448		8.68	%		15.63
2022		1		65,028		6.54	%		1,040,447		5.06	%		16.00
2025		1		49,878		5.02	%		1,077,752		5.24	%		21.61
2026		2		6,935		0.70	%		148,623		0.72	%		21.43
Total		104		993,819		100.00	%	$	20,550,236		100.00	%	$	20.68

Total Vacant				134,426
Total Square Feet				1,128,245

- 27 -

Urban/Street Retail Developments - Operating Properties
($ in millions)

								Acquisition & Development Costs
										Estimated		Estimated		Outstanding
Property	Location	Sq. Ft.		Leased (%)			Anchors/Tenants	Incurred		Future		Total		Debt
FUND II
				100% Retail			Walgreens, Best Buy, 24 Hour Fitness, Sears	$	125.2	$	7.9	$	133.1	$	85.4
Fordham Place	Bronx		260,000	32% Office
Pelham Manor Shopping Plaza1	Westchester		320,000		91	%	BJ's Wholesale Club, PetSmart, Storage Post		62.9		1.9		64.8		34.0
216th Street	Manhattan		60,000		100	%	NYC Human Resources Administration		27.7		-		27.7		25.5
Liberty Avenue1	Queens		125,000		100	%	CVS, Storage Post		15.5		0.1		15.6		10.0
161st Street2	Bronx		230,000		100	%	Various New York City and State Agencies		62.8		3.9		66.7		28.9
Atlantic Avenue	Brooklyn		110,000		n/a		Storage Post		22.3		0.1		22.4		11.5
Canarsie Plaza3	Brooklyn		275,000		92	%	BJ's Wholesale Club, Planet Fitness, PetSmart		85.6		5.4		91.0		49.9
TOTAL			1,380,000	93% Retail 78% Office				$	402.0	$	19.3	$	421.3	$	245.2

Notes:
1 Acquired a ground lease interest in this property.
2 In the process of redeveloping this property.
3 Incurred cost is net of lease termination income of $23.9 million from Home Depot.
4 Reconciliation of total incurred development costs to the Balance Sheet:

By Balance Sheet Line Item:
Operating Real Estate	$	414.1
Net Real Estate Under Development		214.1
Gain From Bargain Purchase		(33.8	)
Home Depot Lease Termination Income		(23.9	)
Total Incurred Development Costs	$	570.5

By Project Status:
Operating Properties	$	402.0
Under Construction		111.8
In Design		56.7
Total Incurred Development Costs	$	570.5

- 28 -

Urban/Street Retail Developments - Construction & Design
($ in millions)


									Acquisition & Development Costs
		Estimated	Leased (%)								Estimated		Estimated		Outstanding
Property	Location	Completion	Sq. Ft.		Leased (%)			Anchors/Tenants	Incurred		Future		Total		Debt
FUND II
Under Construction
City Point1	Brooklyn	TBD		550,000		-		TBD	$	88.3	$	111.7	$	200.0	$	40.7
In Design
Sherman Plaza	Manhattan	TBD	TBD			-		TBD	$	33.9	TBD		TBD		$	-


FUND III
Under Construction
125 Main Street	Westport, CT	2nd half 2011		26,000		84	%	Gap, Brooks Brothers Women	$	23.5	$	2.1	$	25.6	$	-
In Design
Sheepshead Bay	Brooklyn	TBD	TBD			-		TBD	$	22.8	TBD		TBD		$	-

Notes:

1 Acquired a ground lease interest in this property. The first 50,000 square feet of the project (Phase 1) is under construction.

Construction on the next 500,000 square feet (Phase 2) is anticipated to start during 2012.

- 29 -

Retailer Controlled Property ("RCP") Venture - Overview
*** Note - The RCP Venture is not a separate AKR Fund, rather it is a venture
in which AKR, Funds I and II have invested approximately $62 million in equity. ***

Item		Description
Date formed		August 2004

Partnership structure
Equity Contribution:		Up to $300 million of total equity

		Up to 20% ($60 million) - AKR Fund I ($20 million) and Fund II ($40 million)

		80% - Klaff Realty LP and Lubert-Adler

Cash flow distribution:		20% - AKR Funds
		80% - Four institutional investors

Promote:		20% to Klaff once all partners (including Klaff) have received 10% preferred return and return
		of equity (50% of first $40 million of AKR Fund equity is not subject to this promote)

		Remaining 80% is distributed to all the partners (including Klaff)


RCP Venture - Investments

The following table summarizes the RCP Venture investments from inception through June 30, 2011

		Years	Invested				Equity
Investor	Investment	acquired	capital		Distributions		Multiple

Mervyns I and Mervyns II	Mervyns	2004 through	$	32,575	$	49,524		1.5	x
		2007
Mervyns II	Albertson’s	2006 through		23,133		78,732		3.4	x
		2007
Fund II and Mervyns II	Other investments 1	2006 through		6,476		5,138		0.8	x
		2008
Total			$	62,184	$	133,394		2.1	x

Notes:
1Represents investments in Shopko, Marsh and Rex Stores.

- 30 -

Storage Portfolio Property Detail

					Occupancy
Owner	Operating Properties	Location	Net Rentable Square Feet		June 30, 2011			March 30, 2011			December 30, 2010			September 30, 2010			June 30, 2010


	Stabilized
Fund III	Suffern	Suffern, New York		78,950
Fund III	Yonkers	Westchester, New York		100,697
Fund III	Jersey City	Jersey City, New Jersey		76,920
Fund III	Webster Ave	Bronx, New York		36,359
Fund III	Linden	Linden, New Jersey		84,035
Fund III	Bruckner Blvd	Bronx, New York		89,473
Fund III	New Rochelle	Westchester, New York		42,155
Fund III	Lawrence	Lawrence, New York		97,743
	Subtotal Stabilized			606,332		91.4	%		87.5	%		86.3	%		85.2	%		82.4	%


	Repositioned - in Lease-up
Fund III	Long Island City	Queens, New York		134,301
	Subtotal in lease-up			134,301		80.0	%		75.3	%		72.1	%		70.0	%		65.5	%


	In initial Lease-up
Fund II	Liberty Avenue	Queens, New York		72,775
Fund II	Pelham Plaza	Pelham Manor, New York		62,020
Fund II	Atlantic Avenue	Brooklyn, New York		75,686
Fund III	Fordham Road	Bronx, New York		85,155
Fund III	Ridgewood	Queens, New York		88,054
	Subtotal in initial lease-up			383,690		78.5	%		66.1	%		62.7	%		57.0	%		50.3	%

	Total			1,124,323		85.6	%		78.7	%		76.5	%		73.8	%		69.4	%

- 31 -

Core Portfolio Retail Properties - Detail

			Acadia's			Gross Leaseable Area						Occupancy									Annualized Base Rent
Property	Anchors		interest			Anchors		Shops		Total		Anchors			Shops			Total			Anchors		Shops		Total		Anchors		Shops		Per Sq. Ft.

NEW YORK

Connecticut
239 Greenwich Avenue1				75.0	%		-		16,834		16,834		-			100.00	%		100.00	%	$	-	$	1,554,663	$	1,554,663	$	-	$	92.35	$	92.35

New Jersey
Elmwood Park Shopping Center	Walgreens, Pathmark (A&P)			100.0	%		62,610		86,652		149,262		100.00	%		85.70	%		91.70	%		1,486,006		1,874,116		3,360,122		23.73		25.24		24.55
A & P Shopping Plaza	A&P			60.0	%		49,463		13,445		62,908		100.00	%		53.55	%		90.07	%		950,000		217,419		1,167,419		19.21		30.20		20.60
Total - New Jersey							112,073		100,097		212,170		100.00	%		81.38	%		91.22	%		2,436,006		2,091,535		4,527,541		21.74		25.68		23.39

New York
Village Commons Shopping Center		-		100.0	%		-		87,330		87,330		-			91.32	%		91.32	%		-		2,389,635		2,389,635		-		29.96		29.96
Branch Plaza	CVS			100.0	%		74,050		51,662		125,712		14.92	%		89.35	%		45.51	%		251,388		1,300,201		1,551,589		22.75		28.17		27.12
Amboy Center	King Kullen			100.0	%		37,266		22,824		60,090		100.00	%		100.00	%		100.00	%		745,320		869,649		1,614,969		20.00		38.10		26.88
Bartow Avenue		-		100.0	%		-		14,676		14,676		-			89.49	%		89.49	%		-		439,246		439,246		-		33.43		33.43
Pacesetter Park Shopping Center	Stop & Shop			100.0	%		52,052		44,328		96,380		100.00	%		79.92	%		90.76	%		405,346		709,160		1,114,506		7.79		20.02		12.74
LA Fitness	LA Fitness			100.0	%		55,000		-		55,000		100.00	%		-			100.00	%		1,265,000		-		1,265,000		23.00		-		23.00
West 54th Street		-		100.0	%		-		9,693		9,693		-			100.00	%		100.00	%		-		2,594,871		2,594,871		-		267.71		267.71
East 17th Street	Barnes & Noble			100.0	%		19,622		-		19,622		100.00	%		-			100.00	%		625,000		-		625,000		31.85		-		31.85
Crossroads Shopping Center	Kmart			49.0	%		201,296		108,191		309,487		81.02	%		82.12	%		81.40	%		1,693,853		3,909,411		5,603,264		10.39		44.00		22.24
Mercer Street		-		100.0	%		-		6,225		6,225		-			100.00	%		100.00	%		-		372,000		372,000		-		59.76		59.76
Total - New York							439,286		344,929		784,215		76.96	%		87.57	%		81.63	%		4,985,907		12,584,173		17,570,080		14.75		41.66		27.45

Total New York							551,359		461,860		1,013,219		81.64	%		86.68	%		83.94	%	$	7,421,913	$	16,230,371	$	23,652,284	$	16.49	$	40.54	$	27.81


NEW ENGLAND

Connecticut
Town Line Plaza2	Wal-Mart, Stop & Shop			100.0	%		163,159		43,187		206,346		100.00	%		90.60	%		98.03	%	$	969,144	$	653,960	$	1,623,104	$	14.72	$	16.71	$	15.46

Massachusetts
Methuen Shopping Center	Wal-Mart, Market Basket			100.0	%		120,004		10,017		130,021		100.00	%		100.00	%		100.00	%		736,464		222,225		958,689		6.14		22.18		7.37
Crescent Plaza	Home Depot, Shaw's (Supervalu)			100.0	%		156,985		61,156		218,141		100.00	%		69.14	%		91.35	%		1,178,872		420,827		1,599,699		7.51		9.95		8.03
Total - Massachusetts							276,989		71,173		348,162		100.00	%		73.48	%		94.58	%		1,915,336		643,052		2,558,388		6.91		12.30		7.77

New York
New Loudon Center	Marshalls, Price Chopper,			100.0	%		251,058		4,615		255,673		100.00	%		100.00	%		100.00	%		1,828,706		130,418		1,959,124		7.28		28.26		7.66
	Raymour & Flanigan
Rhode Island
Walnut Hill Plaza	Sears, Shaw's (Supervalu), CVS			100.0	%		196,710		88,007		284,717		100.00	%		79.14	%		93.55	%		1,463,854		905,610		2,369,464		7.44		13.00		8.90

Vermont
The Gateway Shopping Center	Shaw's (Supervalu)			100.0	%		73,184		28,528		101,712		100.00	%		45.21	%		84.63	%		1,353,904		269,580		1,623,484		18.50		20.90		18.86

Total New England							961,100		235,510		1,196,610		100.00	%		75.83	%		95.24	%	$	7,530,944	$	2,602,620	$	10,133,564	$	8.72	$	14.57	$	9.72

Notes:

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.

1239 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.

2Anchor 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.

- 32 -

Core Portfolio Retail Properties - Detail (continued)

			Acadia's			Gross Leaseable Area						Occupancy									Annualized Base Rent
Property	Anchors		interest			Anchors		Shops		Total		Anchors			Shops			Total			Anchors		Shops		Total		Anchors		Shops		Per Sq. Ft.

MIDWEST

Illinois
Hobson West Plaza	Garden Fresh Markets			100.0	%		51,692		47,433		99,125		100.00	%		83.36	%		92.04	%	$	225,436	$	846,012		1,071,448	$	4.36	$	21.40		11.74
Clark Diversey		-		100.0	%		-		19,265		19,265		0.00	%		87.28	%		87.28	%		-		756,773		756,773		-		45.01		45.01
West Diversey	Trader Joe's			100.0	%		16,500		29,759		46,259		100.00	%		68.51	%		79.74	%		900,000		457,463		1,357,463		54.55		22.44		36.80
Total - Illinois							68,192		96,457		164,649		100.00	%		79.56	%		88.03	%		1,125,436		2,060,248		3,185,684		16.50		26.85		21.98

Indiana
Merrillville Plaza	JC Penney, Office Max,			100.0	%		123,369		112,535		235,904		100.00	%		82.18	%		91.50	%		1,251,160		1,599,677		2,850,837		10.14		17.30		13.21
	TJ Maxx, K&G Superstore
Michigan
Bloomfield Towne Square1	Best Buy, Home Goods,			100.0	%		172,436		63,149		235,585		60.91	%		93.55	%		69.66	%		987,559		1,254,058		2,241,617		9.40		21.23		13.66
	TJ Maxx
Ohio
Mad River Station2	Babies 'R' Us, Office Depot,			100.0	%		58,185		67,799		125,984		100.00	%		77.02	%		87.63	%		552,195		847,453		1,399,648		9.49		16.23		12.68

Total Midwest							422,182		339,940		762,122		84.03	%		82.52	%		83.36	%	$	3,916,350	$	5,761,436	$	9,677,786	$	11.04	$	20.54	$	15.23

MID-ATLANTIC

New Jersey
Marketplace of Absecon	Rite Aid, Dollar Tree			100.0	%		47,915		56,803		104,718		56.74	%		84.17	%		71.62	%	$	476,121	$	688,296	$	1,164,417	$	17.51	$	14.40	$	15.53

Delaware
Brandywine Town Center	Lowes, Bed Bath & Beyond,			22.2	%		831,207		43,782		874,989		96.99	%		70.85	%		95.68	%		12,320,113		599,868		12,919,981		15.28		19.34		15.43
	Target, Dicks Sporting Goods
Market Square Shopping Center	TJ Maxx, Trader Joe's			22.2	%		42,850		59,197		102,047		100.00	%		97.77	%		98.71	%		703,062		1,760,346		2,463,408		16.41		30.42		24.46
Naamans Road		-		22.2	%		-		19,970		19,970		0.00	%		54.94	%		54.94	%		-		558,340		558,340		-		50.89		50.89
Total - Delaware							874,057		122,949		997,006		97.14	%		81.23	%		95.18	%		13,023,175		2,918,554		15,941,729		15.34		29.22		16.80

Pennsylvania
Mark Plaza	Kmart, Redner's Market			100.0	%		157,595		58,806		216,401		100.00	%		48.60	%		86.03	%		652,095		177,827		829,922		4.14		6.22		4.46
Plaza 422	Home Depot, Dunham's			100.0	%		139,968		16,311		156,279		100.00	%		100.00	%		100.00	%		643,503		152,349		795,852		4.60		9.34		5.09
Route 6 Plaza	Kmart, Rite Aid			100.0	%		146,498		29,021		175,519		100.00	%		100.00	%		100.00	%		806,351		367,659		1,174,010		5.50		12.67		6.69
Chestnut Hill3				100.0	%		-		40,570		40,570		0.00	%		22.55	%		22.55	%		-		325,483		325,483		-		35.57		35.57
Abington Towne Center4	Target, TJ Maxx			100.0	%		184,616		31,753		216,369		100.00	%		94.75	%		99.23	%		283,500		828,461		1,111,961		10.50		27.54		19.48
Total - Pennsylvania							628,677		176,461		805,138		100.00	%		64.12	%		92.14	%		2,385,449		1,851,779		4,237,228		5.06		16.37		7.25

Total Mid-Atlantic							1,550,649		356,213		1,906,862		97.05	%		73.22	%		92.60	%	$	15,884,745	$	5,458,629	$	21,343,374	$	11.79	$	20.93	$	13.27

TOTAL CORE PROPERTIES							3,485,290		1,393,523		4,878,813		93.85	%		80.39	%		90.01	%	$	34,753,952	$	30,053,056	$	64,807,008	$	11.52	$	26.83	$	15.67

TOTAL CORE PROPERTIES - weighted based on ownership interest5							2,683,002		1,233,129		3,916,132		93.46	%		80.30	%		89.32	%	$	23,380,661	$	25,313,572	$	48,694,233	$	9.32	$	25.56	$	13.92

Notes:

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.

1Re-anchoring activities at this property commenced during the second quarter 2011 and are expected to be completed in the second half of 2012.

2The GLA for this property excludes 29,857 square feet of office space.

3This consists of two separate buildings.

4Anchor 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.

5Weighted based on Acadia's ownership interest in the properties.

- 33 -

Core Portfolio Retail Properties by State - Summary


									Gross Leasable Area						Occupancy									Annualized Base Rent
	Ownership			Percent of			Number of
State	%			base rent1			properties		Anchors 2		Shops		Total		Anchors			Shops			Total			Anchors		Shops		Total


Connecticut		75.0	%		5.7	%		2		163,159		60,021		223,180		100.00	%		93.24	%		98.18	%	$	969,144	$	2,208,623	$	3,177,767

Delaware		22.2	%		7.0	%		3		874,057		122,949		997,006		97.14	%		81.23	%		95.18	%		13,023,175		2,918,554		15,941,729

Illinois		100.0	%		6.5	%		3		68,192		96,457		164,649		100.00	%		79.56	%		88.03	%		1,125,436		2,060,248		3,185,684

Indiana		100.0	%		5.9	%		1		123,369		112,535		235,904		100.00	%		82.18	%		91.50	%		1,251,160		1,599,677		2,850,837

Massachusetts		100.0	%		5.3	%		2		276,989		71,173		348,162		100.00	%		73.48	%		94.58	%		1,915,336		643,052		2,558,388

Michigan		100.0	%		4.6	%		1		172,436		63,149		235,585		60.91	%		93.55	%		69.66	%		987,559		1,254,058		2,241,617

New Jersey		89.7	%		10.7	%		3		159,988		156,900		316,888		87.04	%		82.39	%		84.74	%		2,912,127		2,779,831		5,691,958

New York		83.7	%		34.4	%		11		690,344		349,544		1,039,888		85.34	%		87.74	%		86.14	%		6,814,613		12,714,591		19,529,204

Ohio		100.0	%		2.9	%		1		58,185		67,799		125,984		100.00	%		77.02	%		87.63	%		552,195		847,453		1,399,648

Pennsylvania		100.0	%		8.8	%		5		628,677		176,461		805,138		100.00	%		64.12	%		92.14	%		2,385,449		1,851,779		4,237,228

Rhode Island		100.0	%		4.9	%		1		196,710		88,007		284,717		100.00	%		79.14	%		93.55	%		1,463,854		905,610		2,369,464

Vermont		100.0	%		3.3	%		1		73,184		28,528		101,712		100.00	%		45.21	%		84.63	%		1,353,904		269,580		1,623,484

Total - Core Portfolio					100.0	%		34		3,485,290		1,393,523		4,878,813		93.85	%		80.39	%		90.01	%	$	34,753,952	$	30,053,056	$	64,807,008


Notes:
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.
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.

- 34 -

Core Portfolio Top Tenants - Ranked by Annual Base Rent (ABR)

			Gross												ProRata
	Number of stores		Wholly Owned				Joint Ventures1				Combined				Combined				Percentage of Total
	in combined																		Percentage of
Tenant	portfolio		GLA		Base Rent		GLA		Base Rent		GLA		Base Rent		GLA		Base Rent		Portfolio GLA			Base Rent

Supervalu (Shaws)		3		175,801	$	2,420,980		-	$	-		175,801	$	2,420,980		175,801	$	2,420,980		4.0	%		4.6	%

TJX Companies		7		165,058		1,278,154		56,108		951,655		221,166		2,229,809		196,419		1,872,900		4.4	%		3.6	%
-- T.J. Maxx		4		88,200		773,100		31,175		428,062		119,375		1,201,162		95,127		854,724		2.1	%		1.6	%
-- Marshalls		1		37,212		158,151		-		-		37,212		158,151		37,212		158,151		0.8	%		0.3	%
-- Homegoods		2		39,646		346,903		24,933		523,593		64,579		870,496		64,080		860,025		1.4	%		1.6	%

A&P		2		97,236		2,001,006		-		-		97,236		2,001,006		77,451		1,621,006		1.7	%		3.1	%

Sears		4		285,314		1,150,615		100,725		566,250		386,039		1,716,865		334,669		1,428,078		7.5	%		2.7	%
-- Kmart		3		224,614		892,615		100,725		566,250		325,339		1,458,865		273,969		1,170,078		6.2	%		2.2	%
-- Sears		1		60,700		258,000		-		-		60,700		258,000		60,700		258,000		1.4	%		0.5	%

Ahold (Stop and Shop)		2		117,911		1,374,490		-		-		117,911		1,374,490		117,911		1,374,490		2.7	%		2.6	%

Home Depot		2		211,003		1,099,996		-		-		211,003		1,099,996		211,003		1,099,996		4.8	%		2.1	%

Trader Joe's		2		16,500		900,000		11,675		275,000		28,175		1,175,000		19,094		961,111		0.4	%		1.8	%

Barnes & Noble		2		19,622		625,000		12,430		397,760		32,052		1,022,760		25,713		819,902		0.6	%		1.6	%

Sleepy's		4		32,619		789,858		-		-		32,619		789,858		32,619		789,858		0.7	%		1.5	%

Pier 1 Imports		3		19,255		437,304		8,818		348,576		28,073		785,880		23,576		608,106		0.5	%		1.2	%

CVS		3		34,300		563,823		-		-		34,300		563,823		34,300		563,823		0.8	%		1.1	%
JP Morgan Chase Bank		4		16,242		425,081		3,745		325,000		19,987		750,081		17,177		558,145		0.4	%		1.1	%
Payless Shoesource		7		22,236		473,871		3,090		114,330		25,326		588,201		23,750		529,893		0.5	%		1.0	%
The Avenue		4		17,236		342,869		8,250		327,360		25,486		670,229		21,279		503,275		0.5	%		1.0	%
Drexel Heritage		2		13,315		332,875		21,827		471,245		35,142		804,120		18,161		437,586		0.4	%		0.8	%
Dollar Tree		5		45,387		424,145		-		-		45,387		424,145		45,387		424,145		1.0	%		0.8	%
Citibank		3		5,486		263,328		8,470		438,539		13,956		701,867		8,283		417,306		0.2	%		0.8	%
Coldwell Banker		2		14,012		320,948		-		-		14,012		320,948		14,012		320,948		0.3	%		0.6	%
Dots		4		17,698		292,128		-		-		17,698		292,128		17,698		292,128		0.4	%		0.6	%
Starbucks		4		8,316		256,264		-		-		8,316		256,264		8,316		256,264		0.2	%		0.5	%

TOTAL		69		1,334,547	$	15,772,735		235,138	$	4,215,715		1,569,685	$	19,988,450		1,422,618	$	17,299,939		32.1	%		33.1	%

Notes:
1Represents Brandywine and Crossroads joint ventures.

- 35 -

Core Portfolio Lease Expirations

			Gross Leased Area					Annual Base Rent
	No. of Leases		Square		Percent					Percent			Avg. Per
	Expiring		Footage		of Total			Amount		of Total			Sq. Ft.

Anchor Tenants
2011		1		18,893		0.63	%		523,962		1.51	%		27.73
2012		8		358,047		11.87	%		3,242,599		9.33	%		9.06
2013		9		342,666		11.36	%		4,320,075		12.43	%		12.61
2014		6		239,665		7.95	%		1,767,951		5.09	%		7.38
2015		6		274,639		9.11	%		3,800,857		10.94	%		13.84
2016		6		173,422		5.75	%		1,761,403		5.07	%		10.16
2017		4		159,389		5.28	%		2,661,119		7.66	%		16.70
2018		5		383,288		12.71	%		4,212,248		12.12	%		10.99
2019		6		136,521		4.53	%		1,074,661		3.09	%		7.87
2020		5		233,350		7.74	%		2,309,505		6.65	%		9.90
2021		6		248,306		8.23	%		2,383,120		6.86	%		9.60
2022		2		69,837		2.32	%		1,700,000		4.89	%		24.34
2024		3		188,506		6.25	%		3,273,048		9.42	%		17.36
2028		4		189,509		6.28	%		1,723,404		4.96	%		9.09
Total		71		3,016,038		100.00	%	$	34,753,952		100.00	%	$	11.52


Anchor GLA Owned by Tenants				254,916
Total Vacant				214,336
Total Square Feet				3,485,290



Shop Tenants
2011		27		93,686		8.40	%		2,255,081		7.50	%		24.07
2012		47		145,805		13.08	%		3,760,455		12.51	%		25.79
2013		53		151,961		13.63	%		4,485,551		14.93	%		29.52
2014		53		204,841		18.37	%		6,054,528		20.15	%		29.56
2015		33		162,032		14.53	%		2,746,974		9.14	%		16.95
2016		23		119,736		10.74	%		2,701,687		8.99	%		22.56
2017		14		42,683		3.83	%		1,975,434		6.57	%		46.28
2018		21		50,299		4.51	%		1,874,545		6.24	%		37.27
2019		13		28,067		2.52	%		784,218		2.61	%		27.94
2020		11		23,587		2.12	%		660,765		2.20	%		28.01
2021		9		52,011		4.66	%		1,381,330		4.60	%		26.56
2022		4		20,055		1.80	%		530,643		1.77	%		26.46
2023		2		7,362		0.66	%		129,298		0.43	%		17.56
2025		1		3,120		0.28	%		29,047		0.10	%		9.31
2027		1		5,975		0.54	%		358,500		1.19	%		60.00
2030		1		3,745		0.34	%		325,000		1.08	%		86.78
Total		313		1,114,965		100.00	%	$	30,053,056		100.00	%	$	26.95


Total Vacant				278,558
Total Square Feet				1,393,523

- 36 -

Core Portfolio Lease Expirations

			Gross Leased Area					Annual Base Rent
	No. of Leases		Square		Percent					Percent			Avg. Per
	Expiring		Footage		of Total			Amount		of Total			Sq. Ft.

Total Anchor and
Shop Tenants
2011		28		112,579		2.73	%		2,779,043		4.29	%		24.69
2012		55		503,852		12.20	%		7,003,054		10.81	%		13.90
2013		62		494,627		11.97	%		8,805,626		13.59	%		17.80
2014		59		444,506		10.76	%		7,822,479		12.07	%		17.60
2015		39		436,671		10.57	%		6,547,831		10.10	%		14.99
2016		29		293,158		7.10	%		4,463,090		6.89	%		15.22
2017		18		202,072		4.89	%		4,636,553		7.15	%		22.95
2018		26		433,587		10.50	%		6,086,793		9.39	%		14.04
2019		19		164,588		3.98	%		1,858,879		2.87	%		11.29
2020		16		256,937		6.22	%		2,970,270		4.58	%		11.56
2021		15		300,317		7.27	%		3,764,450		5.81	%		12.53
2022		6		89,892		2.18	%		2,230,643		3.44	%		24.81
2023		2		7,362		0.18	%		129,298		0.20	%		17.56
2024		3		188,506		4.56	%		3,273,048		5.05	%		17.36
2025		1		3,120		0.08	%		29,047		0.04	%		9.31
2027		1		5,975		0.14	%		358,500		0.55	%		60.00
2028		4		189,509		4.59	%		1,723,404		2.66	%		9.09
2030		1		3,745		0.09	%		325,000		0.50	%		86.78
Total		384		4,131,003		100.00	%		64,807,008		100.00	%		15.69


Anchor GLA Owned by Tenants				254,916
Total Vacant				492,894
Total Square Feet				4,878,813

- 37 -

Core Portfolio - New and Renewal Rent Spreads 1
Based on Lease Execution Dates


	Year to date						3 months ended						3 months ended
	June 30, 2011						June 30, 2011						March 31, 2011
	Cash2			GAAP3			Cash2			GAAP3			Cash2			GAAP3
New leases
Number of new leases commencing		12			12			2			2			10			10
GLA		99,427			99,427			3,154			3,154			96,273			96,273
New base rent	$	15.11		$	15.27		$	24.43		$	25.07		$	14.80		$	14.95
Previous base rent (and percentage rent)	$	15.91		$	15.47		$	40.52		$	37.69		$	15.10		$	14.74
Percentage growth in base rent		-5.0	%		-1.3	%		-39.7	%		-33.5	%		-2.0	%		1.4	%
Average cost per square foot	$	67.55		$	67.55		$	69.74		$	69.74		$	67.48		$	67.48
Weighted Average Lease Term (years)		7.8			7.8			8.2			8.2			7.8			7.8

Renewal leases
Number of renewal leases commencing		14			14			8			8			6			6
GLA		152,699			152,699			123,099			123,099			29,600			29,600
New base rent	$	10.87		$	11.07		$	9.95		$	10.16		$	14.72		$	14.84
Expiring base rent (and percentage rent)	$	10.74		$	10.44		$	9.54		$	9.25		$	15.71		$	15.40
Percentage growth in base rent		1.3	%		6.0	%		4.3	%		9.8	%		-6.3	%		-3.6	%
Average cost per square foot	$	0.10		$	0.10		$	0.00		$	0.00		$	0.51		$	0.51
Weighted Average Lease Term (years)		4.9			4.9			4.6			4.6			6.0			6.0

Total new and renewal Leases
Number of new and renewal leases commencing		26			26			10			10			16			16
GLA commencing		252,126			252,126			126,253			126,253			125,873			125,873
New base rent	$	12.54		$	12.72		$	10.31		$	10.53		$	14.78		$	14.92
Expiring base rent (and percentage rent)	$	12.77		$	12.42		$	10.31		$	9.96		$	15.24		$	14.90
Percentage growth in base rent		-1.8	%		2.4	%		0.0	%		5.7	%		-3.0	%		0.2	%
Average cost per square foot	$	26.70		$	26.70		$	1.74		$	1.74		$	51.73		$	51.73
Weighted Average Lease Term (years)		6.0			6.0			4.7			4.7			7.4			7.4

Notes:

1Does not include leased square footage and costs related to first generation space and the Company's major redevelopment

projects; renewal leases include exercised options.

2Rents have not been calculated on a straight line basis. Previous/expiring rent is that as of time of expiration and includes any

percentage rent paid as well. New rent is that which is paid at commencement.

3Rents are calculated on a straight-line basis.

- 38 -

Core Portfolio Capital Expenditures
Current Quarter and Year-to-Date


	Year-to-Date		Current Quarter		Prior Quarter

	Period ended		3 months ended		3 months ended		Prior Year ended
	June 30, 2011		June 30, 2011		March 31, 2011		December 31, 2010


Leasing Commissions	$	886	$	411	$	475	$	671
Tenant Improvements		3,818		2,580		1,237		3,855
Capital Expenditures		218		-		218		146
Redevelopments		-				-		-
Total	$	4,922	$	2,991	$	1,930	$	4,672

Notes:

1 Includes $1,141 of costs associated with the redevelopment of 2914 Third Avenue.

- 39 -

Property Demographics - Core
							3-Mile Radius2						5-Mile Radius2
				Trade Area	Base	Total	Total	#	Median HH		Avg. HH		Total	#	Median HH		Avg. HH
Classification	Property	City	State	(Miles)	Rent	GLA	Pop.	HH	Income		Income		Pop.	HH	Income		Income
Core	Brandywine/Mkt Sq./Naamans Rd.	Wilmington	DE	3	15,941,729	997,006	110,839	45,584	$	63,729	$	68,575	188,535	76,355	$	72,069	$	74,895
Core	Elmwood Park Shopping Center	Elmwood Park	NJ	3	3,360,122	149,262	248,932	81,257		60,826		69,326	586,661	200,354		67,746		78,008
Core	Chestnut Hill	Philadelphia	PA	3	325,483	40,570	147,322	60,592		63,508		79,148	396,137	159,190		61,052		77,569
Core	Abington Towne Center	Abington	PA	3	1,111,961	216,369	88,887	35,153		78,175		97,812	296,425	117,842		69,750		84,152
Core	Clark & Diversey	Chicago	IL	1	756,773	19,265	80,058	47,674		74,864		107,610	133,868	78,221		80,762		114,242
Core	Hobson West Plaza	Naperville	IL	3	1,071,448	99,125	95,896	34,156		109,898		113,927	236,016	84,332		108,127		112,720
Core	Methuen Shopping Center	Methuen	MA	5	958,689	130,021	91,440	33,166		48,242		56,292	194,882	72,424		55,911		64,367
Core	Crossroads Shopping Center	White Plains	NY	3	5,603,264	309,487	107,610	40,014		99,898		116,168	213,143	77,239		117,243		135,295
Core	The Branch Plaza	Smithtown	NY	3	1,551,589	125,712	64,812	21,738		103,946		126,961	191,293	61,590		94,383		113,936
Core	Amboy Road	Staten Island	NY	3	1,614,969	60,090	97,141	33,846		82,727		86,666	162,143	57,055		79,869		84,373
Core	Village Commons Shopping Center	Smithtown	NY	3	2,389,635	87,330	63,231	21,079		102,376		124,093	173,029	56,356		98,040		119,322
Core	Bloomfield Town Square	Bloomfield Hills	MI	5	2,241,617	235,585	58,074	22,758		88,141		102,572	157,331	61,379		95,034		105,404
Core	Crescent Plaza	Brockton	MA	3	1,599,699	218,141	96,005	32,593		53,420		62,806	161,182	55,405		59,665		68,969
Core	239 Greenwich Avenue	Greenwich	CT	5	1,554,663	16,834	64,308	23,814		125,719		162,508	135,320	48,542		122,962		156,902
Core	Town Line Plaza	Rocky Hill	CT	3	1,623,104	206,346	45,422	18,687		75,874		82,339	150,566	58,641		66,002		73,788
Core	New Loudon Center	Latham	NY	5	1,959,124	255,673	42,239	16,004		63,599		76,258	151,343	61,547		55,150		67,252
Core	Pacesetter Park Shopping Center	Pomona	NY	3	1,114,506	96,380	19,646	6,760		101,782		120,862	99,896	29,978		87,372		107,422
Core	LA Fitness, Staten Island	Staten Island	NY	3	1,265,000	55,000	35,839	12,953		67,765		72,134	128,706	44,479		74,225		77,867
Core	West 54th Street	Manhattan	NY	1	2,594,871	9,693	42,128	25,011		91,410		155,737	160,333	90,051		93,753		164,270
Core	East 17th Street	Manhattan	NY	1	625,000	19,622	70,157	39,495		92,939		175,048	261,569	143,187		79,749		138,454
Core	Mad River Station	Dayton	OH	5	1,399,648	125,984	57,875	25,349		66,903		70,623	154,785	55,374		69,503		74,465
Core	Mark Plaza	Edwardsville	PA	5	829,922	216,401	87,545	37,108		37,075		46,254	121,815	50,915		39,826		49,730
Core	Bartow Avenue	The Bronx	NY	2	439,246	14,676	273,331	99,165		49,510		59,160	575,057	206,470		47,306		57,042
Core	Walnut Hill Plaza	Woonsocket	RI	5	2,369,464	284,717	58,072	22,079		50,251		59,544	91,962	35,206		58,299		69,645
Core	A & P Shopping Plaza	Boonton	NJ	5	1,167,419	62,908	46,107	17,845		104,048		129,404	99,937	37,448		101,964		122,465
Core	Merrillville Plaza	Hobart	IN	5	2,850,837	235,904	28,125	11,745		59,051		57,903	79,178	30,967		55,914		56,106
Core	The Gateway Shopping Center	So. Burlington	VT	3	1,623,484	101,712	49,599	20,331		51,135		64,086	74,461	30,538		54,695		67,272
Core	Marketplace of Absecon	Absecon	NJ	3	1,164,417	104,718	28,925	10,533		59,908		74,572	69,370	23,899		59,194		72,233
Core	Plaza 422	Lebanon	PA	3	795,852	156,279	44,076	18,114		42,329		44,905	63,493	25,552		47,678		49,724
Core	Route 6 Plaza	Honesdale	PA	5	1,174,010	175,519	7,948	3,467		36,983		47,590	12,024	5,030		39,415		49,983
Core	West Diversey	Chicago	IL	1	1,357,463	46,259	57,904	37,481		66,689		94,576	361,880	198,507		70,933		100,699
Core	Mercer Street	New York	NY	1	372,000	6,225	48,262	20,078		76,510		134,753	209,871	90,080		70,637		119,525

Total Core 1
Weighted Average - Based on GLA							71,865	27,467	$	67,178	$	78,488	167,773	63,806	$	68,284	$	79,136
Weighted Average - Based on base rent							78,971	30,450	$	73,917	$	90,025	190,545	74,062	$	75,543	$	91,406

Notes:

1 Calculations have been pro-rated based on the Company's ownership % in joint ventures.

2 West 54th Street , East 17th Street & Mercer Street reflect .5 and 1 mile radius figures; Clark & Diversey reflects 1 and 1.5 mile radius figures;

West Diversey reflects 1 and 3 mile radius figures; LA Fitness and Bartow reflect 2 aned 3 mile radius figures.

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Property Demographics - Funds
							3-Mile Radius2				5-Mile Radius2
				Trade Area	Base	Total	Total	#	Median HH	Avg. HH	Total	#	Median HH	Avg. HH
Classification	Property	City	State	(Miles)	Rent	GLA	Pop.	HH	Income	Income	Pop.	HH	Income	Income
Fund I	Granville Center	Columbus	OH	3	593,022	134,997	111,765	47,215	55,123	56,507	270,244	110,564	61,798	64,113
Fund I	Tarrytown Shopping Center	Tarrytown	NY	2	905,634	34,979	22,110	8,246	86,276	112,075	35,192	12,933	89,621	116,661
Fund II	400 East Fordham Road	The Bronx	NY	2	5,519,760	119,446	649,998	214,775	33,106	43,969	1,214,522	401,588	35,202	47,217
Fund II	Pelham Manor Shopping Plaza	Westchester	NY	3	5,624,892	228,521	401,439	145,255	57,360	68,075	532,763	168,549	35,031	49,370
Fund II	Canarsie	Brooklyn	NY	1	6,145,440	273,536	111,699	36,850	47,249	56,580	1,222,610	400,044	53,590	64,781
Fund II	161st Street	The Bronx	NY	1	4,450,659	230,281	199,667	64,948	23,956	35,877	734,022	236,490	25,864	39,464
Fund II	Liberty Avenue	Queens	NY	1	844,305	26,125	91,638	28,967	53,392	62,024	338,406	102,483	50,598	60,663
Fund II	216th Street	Manhattan	NY	1	2,460,000	60,000	160,656	54,093	38,123	51,821	948,832	311,867	35,661	48,955
Fund III	Cortlandt Towne Center	Mohegan Lake	NY	3	9,350,255	641,211	36,790	11,992	98,885	106,063	89,641	30,347	90,138	100,808
Fund III	White City	Shrewsbury	MA	3	4,763,820	255,516	94,955	38,180	49,759	62,004	211,652	80,653	54,993	68,709
Fund III	White Oak	Silver Spring	MD	3	874,416	64,626	92,060	34,141	80,124	97,014	256,978	88,658	78,604	94,563
Fund III	Lincoln Road	Miami Beach	FL	3	2,981,340	61,443	60,730	35,165	44,469	73,128	213,203	100,137	40,684	60,999
Fund III	Heritage Shops	Chicago	IL	3	2,580,405	105,449	291,977	148,982	70,575	101,644	743,136	328,907	60,757	84,919


Fund I 1
Weighted Average - Based on GLA							93,323	39,199	61,531	67,937	221,893	90,481	67,521	74,922
Weighted Average - Based on base rent							57,598	23,671	73,945	90,080	128,232	51,578	78,608	95,861

Fund II - Urban In-Fill 1
Weighted Average - Based on GLA							285,031	97,190	41,444	52,291	871,091	282,990	37,775	50,629
Weighted Average - Based on base rent							325,567	110,406	41,284	52,207	907,034	295,558	37,814	50,566

Fund III 1
Weighted Average - Based on GLA							77,617	33,059	82,375	94,586	193,593	76,500	76,965	90,370
Weighted Average - Based on base rent							88,067	39,680	76,457	91,328	225,497	92,505	71,440	86,124

Total - Core and Funds1
Weighted Average - Based on GLA							76,804	29,250	66,943	78,191	183,986	69,129	67,856	78,763
Weighted Average - Based on base rent							89,920	34,230	72,574	88,410	222,665	84,235	73,767	89,465

Notes:

1 Does not include the Kroger/Safeway Portfolio. Calculations have been pro-rated based on the Company's ownership % in the joint venture.

2 Canarsie Plaza, 161st Street and Liberty Avenue reflect 1 and 2 mile radius figures, 216th St. reflects 1 and 3 mile radius figures and

Fordham Road reflects 2 aned 3 mile radius figures.

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Important Notes

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this supplemental disclosure may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934 and as such may involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend" or "project" or the negative thereof or other variations thereon or comparable terminology. Factors which could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to those set forth under the heading "Risk Factors" in the Company's Annual Report on Form 10-K. These risks and uncertainties should be considered in evaluating any forward-looking statements contained or incorporated by reference herein.

USE OF FUNDS FROM OPERATIONS AS NON-GAAP FINANCIAL MEASURE

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. In addition, the Company also discloses FFO as adjusted to include the extraordinary gain from its RCP investment in Albertson's. The Company believes that income or gains derived from its RCP investments, including its investment in Albertson's, are private-equity investments and, as such, should be treated as operating income and therefore FFO. The Company believes that this supplement adjustment more appropriately reflects the results of its operations. The Company also provides two other supplemental disclosures of operating performance, adjusted funds from operations ("AFFO") and funds available for distribution ("FAD"). The Company defines AFFO as FFO adjusted for straight line rent, non-real estate depreciation, amortization of finance costs and costs of management contracts, tenant improvements, leasing commissions and capital expenditures. The Company defines FAD as AFFO adjusted for scheduled debt principal payments.

USE OF EBITDA AND NOI AS NON-GAAP FINANCIAL MEASURES

EBITDA and NOI are widely used financial measures in many industries, including the REIT industry, and are presented to assist investors and analysts in analyzing the performance of the Company. They are helpful as they exclude various items included in net income that are not indicative of operating performance, such as gains (or losses) from sales of property and depreciation and amortization and is used in computing various financial ratios as a measure of operational performance. The Company computes EBITDA as the sum of net income before extraordinary items plus interest expense, depreciation, income taxes and amortization, less any gains (losses including impairment charges) on the sale of income producing properties. The Company computes NOI by taking the difference between Property Revenues and Property Expenses as detailed in this reporting supplement. The Company’s method of calculating EBITDA and NOI may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. EBITDA and NOI do not represent cash generated from operations as defined by GAAP and are not indicative of cash available to fund all cash needs, including distributions. They 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.

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