SEC Filing - Acadia Realty Trust

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a50352952.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 24, 2012

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 24, 2012, Acadia Realty Trust (the "Company") issued a press release announcing its consolidated financial results for the quarter and six months ended June 30, 2012. 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 24, 2012, 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, 2012. 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 24, 2012.
99.2	Financial and Operating Reporting Supplement of the Company for the quarter and six months ended June 30, 2012.

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 26, 2012	By:	/s/ Jonathan Grisham

		Name: Jonathan Grisham
		Title: Sr. Vice President
		and Chief Financial Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press release of the Company dated July 24, 2012.
99.2	Financial and Operating Reporting Supplement of the Company for the quarter and six months ended June 30, 2012.

a50352952ex99-1.htm

Exhibit 99.1

Acadia Realty Trust Reports Second Quarter 2012 Operating Results

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--July 24, 2012--Acadia Realty Trust (NYSE: AKR) today reported operating results for the quarter ended June 30, 2012. All per share amounts are on a fully diluted basis.

Second Quarter 2012 Highlights

Earnings

●

Funds from operations (“FFO”) of $0.27 per share for second quarter 2012

●

Earnings per share (“EPS”) from continuing operations of $0.14 for second quarter 2012

Core Portfolio – Acquisitions and Strong Portfolio Performance

●

During and subsequent to the second quarter, closed on four acquisitions in Chicago, Washington D.C. and New York (SoHo and Long Island) aggregating $81.2 million

●

Same store net operating income (“NOI”) for the second quarter up 4.9% compared to 2011; excluding the impact of re-anchoring activities, same store NOI increased 3.8%

●

June 30, 2012 physical portfolio occupancy of 92.6%; including leased space not yet open, leased occupancy was 94.6%

Opportunity Funds – Fund IV Commenced

●

During the quarter, completed the initial closing for Fund IV which is expected to ultimately range between $500.0 million to $550.0 million of total equity commitments

●

As previously announced, Fund III closed on a $31.5 million acquisition in Chicago during the second quarter

●

Fund III sold the ShopRite at Orchard Center (“White Oak Shopping Center”) during the second quarter for $13.8 million

●

During the quarter, Fund I sold the Tarrytown Shopping Center for $12.8 million

●

Fund II received a $2.3 million distribution from its Albertson’s investment during the second quarter

Balance Sheet – Match-Funding Core and Fund Acquisitions

●

Raised $46.8 million of net proceeds during second quarter 2012 from the at-the-market (“ATM”) equity program to fund acquisitions

●

Core portfolio debt net of cash on hand (“Net Debt”) to EBITDA ratio of 4.9x at June 30, 2012; 5.3x including pro-rata share of Opportunity Funds

●

Combined Net Debt to Total Market Capitalization of 28% at June 30, 2012

Second Quarter 2012 Operating Results

FFO and Net Income from Continuing Operations for the quarter ended June 30, 2012 were $12.2 million and $6.5 million, respectively, as compared to $9.6 million and $4.2 million, respectively, for the quarter ended June 30, 2011. For the six months ended June 30, 2012, FFO and Net Income from Continuing Operations were $21.5 million and $10.5 million, respectively, compared to $23.2 million and $12.4 million, respectively, for the six months ended June 30, 2011.

Earnings for the quarters and six months ended June 30, 2012 and 2011, on a per share basis, were as follows:


	Quarters ended June 30,							Six Months ended June 30,
	2012		2011		Variance			2012		2011		Variance
FFO per share	$	0.27	$	0.23	$	0.04		$	0.48	$	0.56	$	(0.08	)
EPS from continuing operations	$	0.14	$	0.10	$	0.04		$	0.24	$	0.31	$	(0.07	)
EPS from discontinued operations	$	0.01	$	0.64	$	(0.63	)	$	0.01	$	0.67	$	(0.66	)
EPS	$	0.15	$	0.74	$	(0.59	)	$	0.25	$	0.98	$	(0.73	)

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

	Variance
	2012 v. 2011
	Quarter			Six Months
Income from 2011/2012 acquisitions and redevelopment projects	$	0.04		$	0.06
Gain on sale of White Oak Shopping Center		0.02			0.02
Promote income on sale of Fund I asset		0.01			0.01
2012 acquisition costs		(0.01	)		(0.02	)
2011 additional mortgage interest income		(0.03	)		(0.09	)
2011 gain on extinguishment of debt		--			(0.04	)
Other items, net		0.01			(0.01	)
Total variance	$	0.04		$	(0.07	)

EPS from discontinued operations of $0.67 for the six months ended June 30, 2011 was primarily attributable to a $0.8 million gain, net of noncontrolling interests’ share, on the sale of a Fund II leasehold interest at the Oakbrook Center during the first quarter 2011 and a $28.6 million gain from the sale of the Ledgewood Mall during the second quarter 2011.

Core Portfolio – $81.2 Million of Acquisitions Completed During the Quarter

Acadia’s core portfolio is comprised of properties that are owned in whole or in part by Acadia outside of its three opportunity funds (the “Funds”).

Asset Recycling and Acquisition Activity – Additional Investment in Urban/Street Retail

Year-to-date, Acadia has acquired a total of ten properties for $122.7 million. During and subsequent to the second quarter, Acadia acquired four properties aggregating $81.2 million as follows:

●

Chicago – As previously announced, during April 2012, Acadia acquired a single-tenant property at 930 North Rush Street, occupied by Lululemon and located in the Gold Coast neighborhood of Chicago, for $20.7 million.

●

New York (Long Island) – Acadia purchased a 96,000 square foot single-tenant (Kohl’s), net- leased property located in Westbury, New York for $27.3 million during May 2012.

●

Washington D.C. – During June 2012, the Company closed on a 57,000 square foot shopping center located on Rhode Island Avenue NE for $21.7 million. The property is anchored by a 25,000 square foot TJ Maxx and is adjacent to a Giant supermarket. The transaction, which was part of the Company’s previously announced 2011 Core acquisition pipeline, included the assumption of $16.5 million of existing debt.

●

New York (SoHo) – Acadia acquired a 4,800 square foot single-tenant, net-leased property (Paper Source) located at 83 Spring Street in the heart of SoHo for $11.5 million during July 2012.

Core Portfolio Anchor Recycling

As previously announced during 2011, Acadia commenced the re-anchoring of the Bloomfield Town Square, located in Bloomfield Hills, Michigan, and two former A&P supermarket locations located in the New York City metropolitan area (collectively, the “Re-anchoring Activities”). During the second quarter, the Company completed the Bloomfield Hills re-anchoring with Dick’s Sporting Goods, Ulta and Five Below now open and operating. Rent for a portion of the former A&P space that is leased at one location is expected to commence during the fourth quarter of 2012.

Occupancy and Same-Store NOI

At June 30, 2012, Acadia’s core portfolio occupancy was 92.6%, up 230 basis points from first quarter 2012, primarily as a result of the completion of the Bloomfield Hills re-anchoring. Including the former A&P square footage which is currently leased but not yet occupied as discussed above, the core portfolio is 94.6% leased. The remaining space anticipated to be leased in connection with the Re-anchoring Activities represents an additional 90 basis points of portfolio occupancy.

Core portfolio same-store NOI increased 4.9% for the second quarter 2012 over second quarter 2011. Excluding the impact of the Re-anchoring Activities, core portfolio same-store NOI increased 3.8% within the balance of the portfolio for second quarter 2012 compared to 2011.

Rent Spreads on New and Renewal Leases

Through June 30, 2012, the Company realized an increase in average rents of 7.4% in its core portfolio on 182,000 square feet of executed new and renewal leases. Excluding the effect of the straight-lining of rents, the Company experienced a decrease of 1.7% in average rents in its core portfolio.

Opportunity Funds – Fund IV Commences

Fund IV

To date, the Company has closed on a total of $465.1 million of equity commitments for Fund IV which is expected to ultimately range between $500.0 million to $550.0 million of total equity. Acadia, which will co-invest 20% to 25% of the total equity, expects to complete the closings on the remaining equity during the third quarter 2012.

Fund III Acquisitions

As previously announced, during April 2012, Fund III closed on the Lincoln Park Centre for $31.5 million, which completed the previously announced $171.3 million of acquisitions under the 2011 Fund acquisition pipeline. The property is a 62,700 square foot re-anchoring project (former Border Books store) located in Lincoln Park’s Clybourn Corridor in Chicago, Illinois adjacent to the newly developed Apple store (not owned by Fund III). Current tenants include Bank of America, Carter’s, Mitchell Gold + Bob Williams and Sur La Table. The transaction included the assumption of $19.8 million of debt which bears interest at 5.85% and matures on December 31, 2013.

Dispositions

Fund III sold the ShopRite at Orchard Center (“White Oak Shopping Center”) during the second quarter for $13.8 million. Fund III had purchased this former A&P location during February 2011 for $9.8 million and subsequently re-anchored it with a ShopRite supermarket.

During the quarter, Fund I sold the Tarrytown Shopping Center for $12.8 million. Fund I had purchased this former Grand Union anchored center in 2004. Acadia earned $620,000 of Promote income in connection with this transaction.

Other Fund Activity

During the quarter, Fund II received a $2.3 million distribution from its Retailer Controlled Property Venture (“RCP”) investment in Albertson’s resulting in income of $0.3 million net of noncontrolling interests and income taxes.

Balance Sheet – Match-Funding Core and Fund Acquisitions; Maintaining Appropriate Leverage

During January 2012, the Company established an ATM equity program with an aggregate offering amount of up to $75.0 million of its Common Shares. To date, Acadia has used the net proceeds of these offerings primarily to fund the core and its share of the Fund acquisition activities as discussed above. To date, the Company has issued 2.9 million Common Shares, which generated net proceeds of $64.6 million.

Acadia continues to maintain a secure balance sheet with available liquidity and low leverage as evidenced by the following as of June 30, 2012:

●

The Company had total liquidity of $97.4 million, including $32.9 million of cash on hand and $64.5 million available under existing lines of credit, excluding the Funds’ cash and credit facilities

●

Core portfolio Net Debt to EBITDA ratio of 4.9x

●

Including the Company’s Core portfolio debt and pro-rata share of the Company’s Fund debt (“Combined”), a Net Debt to EBITDA ratio of 5.3x

●

Combined Net Debt to Total Market Capitalization of 28% and Combined Debt to Total Market Capitalization of 30%

●

Core portfolio fixed-charge coverage ratio of 3.3 to 1

●

Combined fixed-charge coverage ratio, including the core portfolio and the Company’s pro- rata share of the Funds, was 3.4 to 1

Outlook - Earnings Guidance for 2012

The Company reaffirms its previously announced 2012 FFO and EPS forecast. On a fully diluted basis, the Company forecasts that its 2012 annual FFO will range from $1.00 to $1.05 per share and 2012 EPS from $0.54 to $0.60 per share.

Management Comments

“We are pleased with our second quarter results as our team continued to create value through the two key components of our business: our core portfolio and external growth platform” stated Kenneth F. Bernstein, President and CEO of Acadia Realty Trust. “In our core portfolio, we successfully completed the re-anchoring of Bloomfield Town Square - the first of three profitable re-anchoring projects in our pipeline. We also added $81 million of high-quality street and urban acquisitions to our core portfolio. With respect to our fund platform, not only have we made significant progress on our existing asset-level business plans, but in the second quarter we also launched Fund IV. This new fund will be capitalized with approximately $500 million of discretionary equity and provide approximately $1.5 billion of buying power to pursue opportunistic and value- add opportunities over the next three years. By implementing these initiatives, we believe that we are well positioned to deliver strong growth and create value for all our stakeholders.”

Investor Conference Call

Management will conduct a conference call on Wednesday, July 25, 2012 at 12:00 PM EDT to review the Company's earnings and operating results. The live conference call can be accessed by dialing 866-271-5140 (internationally 617-213-8893). 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 73465860. The phone replay will be available through Wednesday, August 1, 2012.

About Acadia Realty Trust

Acadia Realty Trust, a fully-integrated equity real estate investment trust, is focused on the acquisition, 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, these 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 risks, 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, 2012 (“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.

(Financial Tables Follow)

ACADIA REALTY TRUST AND SUBSIDIARIES Financial Highlights 1 For the Quarters and Six Months ended June 30, 2012 and 2011 (dollars and Common Shares in thousands, except per share data)

	For the Quarters ended						For the Six Months ended
	June 30,						June 30,
Revenues	2012			2011			2012			2011

Minimum rents	$	32,717		$	27,823		$	62,829		$	53,805
Percentage rents		47			45			290			223
Mortgage interest income		2,075			3,370			4,130			7,908
Expense reimbursements		6,277			5,507			12,056			10,757
Other property income		867			495			1,420			1,183
Management fee income		443			288			876			917
Total revenues		42,426			37,528			81,601			74,793
Operating expenses
Property operating		8,194			7,238			16,112			14,591
Real estate taxes		5,254			4,585			10,130			8,798
General and administrative		5,217			5,699			11,150			11,389
Depreciation and amortization		10,147			8,301			19,215			15,870
Total operating expenses		28,812			25,823			56,607			50,648

Operating income		13,614			11,705			24,994			24,145

Equity in earnings (loss) of unconsolidated affiliates		4,591			63			4,535			(85	)
Other interest income		22			80			76			114
Interest expense and other finance costs		(8,747	)		(8,855	)		(17,333	)		(17,758	)
(Loss) gain on extinguishment of debt		--			(102	)		--			1,571
Income from continuing operations before Income taxes		9,480			2,891			12,272			7,987
Income tax provision		1,039			233			1,234			495
Income from continuing operations		8,441			2,658			11,038			7,492

ACADIA REALTY TRUST AND SUBSIDIARIES Financial Highlights 1 For the Quarters and Six Months ended June 30, 2012 and 2011 (dollars and Common Shares in thousands, except per share data)

	For the Quarters ended						For the Six Months ended
	June 30,						June 30,
	2012			2011			2012			2011
Discontinued operations:
Operating income from discontinued operations		67			732			293			1,628
Impairment of asset		--			(6,925	)		--			(6,925	)
Gain on sale of property		2,668			28,576			2,668			32,498
Income from discontinued operations		2,735			22,383			2,961			27,201
Net income		11,176			25,041			13,999			34,693
(Income) loss attributable to noncontrolling interests:
Continuing operations		(1,924	)		1,562			(561	)		4,886
Discontinued operations		(2,413	)		3,631			(2,589	)		78
Net (income) loss attributable to noncontrolling interests		(4,337	)		5,193			(3,150	)		4,964

Net income attributable to Common Shareholders	$	6,839		$	30,234		$	10,849		$	39,657

Supplemental Information
Income from continuing operations attributable to Common Shareholders	$	6,517		$	4,220		$	10,477		$	12,378
Income from discontinued operations attributable to Common Shareholders		322			26,014			372			27,279
Net income attributable to Common Shareholders	$	6,839		$	30,234		$	10,849		$	39,657

Net income attributable to Common Shareholders per
Common Share – Basic
Net income per Common Share – Continuing operations	$	0.14		$	0.10		$	0.24		$	0.31
Net income per Common Share – Discontinued operations		0.01			0.65			0.01			0.67
Net income per Common Share	$	0.15		$	0.75		$	0.25		$	0.98
Weighted average Common Shares		44,245			40,334			43,491			40,326
Net income attributable to Common Shareholders per
Common Share – Diluted 2
Net income per Common Share – Continuing operations	$	0.14		$	0.10		$	0.24		$	0.31
Net income per Common Share – Discontinued operations		0.01			0.64			0.01			0.67
Net income per Common Share	$	0.15		$	0.74		$	0.25		$	0.98
Weighted average Common Shares		44,674			40,633			43,910			40,607

ACADIA REALTY TRUST AND SUBSIDIARIES Financial Highlights 1 For the Quarters and Six Months ended June 30, 2012 and 2011 (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,
	2012			2011			2012			2011


Net income attributable to Common Shareholders	$	6,839		$	30,234		$	10,849		$	39,657

Depreciation of real estate and amortization of leasing costs
(net of noncontrolling interests' share):
Consolidated affiliates		5,653			4,597			10,481			9,055
Unconsolidated affiliates		389			381			781			734
Gain on sale (net of noncontrolling interests' share):
Consolidated affiliates		(213	)		(28,576	)		(213	)		(29,360	)
Unconsolidated affiliates		(609	)		--			(609	)		--
Impairment of asset 5		--			2,616			--			2,616
Income attributable to noncontrolling interests’ in Operating Partnership		101			362			164			477
Distributions – Preferred OP Units		5			5			10			10
Funds from operations	$	12,165		$	9,619		$	21,463		$	23,189
Funds from operations per share – Diluted
Weighted average Common Shares and OP Units 4		45,317			41,104			44,555			41,075
Funds from operations, per share	$	0.27		$	0.23		$	0.48		$	0.56

ACADIA REALTY TRUST AND SUBSIDIARIES Financial Highlights 1 For the Quarters and Six Months ended June 30, 2012 and 2011 (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,
	2012			2011			2012			2011

Operating income	$	13,614		$	11,705		$	24,994		$	24,145

Add back:
General and administrative		5,217			5,699			11,150			11,389
Depreciation and amortization		10,147			8,301			19,215			15,870
Less:
Management fee income		(443	)		(288	)		(876	)		(917	)
Mortgage interest income		(2,075	)		(3,370	)		(4,130	)		(7,908	)
Straight line rent and other adjustments		(2,785	)		(3,407	)		(4,978	)		(5,179	)

Consolidated NOI		23,675			18,640			45,375			37,400

Noncontrolling interest in NOI		(6,954	)		(5,266	)		(13,635	)		(10,785	)
Pro-rata share of NOI	$	16,721		$	13,374		$	31,740		$	26,615

SELECTED BALANCE SHEET INFORMATION
	As of
	June 30, 2012			December 31, 2011
	(dollars in thousands)

Cash and cash equivalents		$	66,463		$	89,812
Rental property, at cost			1,457,723			1,241,600
Total assets			1,854,264			1,653,319
Notes payable			854,854			780,580
Total liabilities			954,798			884,010

ACADIA REALTY TRUST AND SUBSIDIARIES

Financial Highlights

For the Quarters and Six Months ended June 30, 2012 and 2011

(dollars and Common Shares in thousands, except per share data)

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, depreciation and amortization, and impairment of depreciable real estate. 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 618 and 471 OP Units into Common Shares for the quarters ended June 30, 2012 and 2011, respectively and 620 and 469 OP Units into Common Shares for the six months ended June 30, 2012 and 2011, respectively. Diluted FFO also includes the assumed conversion of Preferred OP Units into 25 Common Shares for each of the quarters and six months ended June 30, 2012 and 2011. In addition, diluted FFO also includes the effect of 428 and 275 employee share options, restricted share units and LTIP units for the quarters ended June 30, 2012 and 2011, respectively and 419 and 256 employee share options, restricted share units and LTIP units for the six months ended June 30, 2012 and 2011, respectively.

5 Reflects the exclusion of an impairment of depreciable real estate that was previously included in FFO for the quarter and six months ended June 30, 2011.

CONTACT:

Acadia Realty Trust

Jon Grisham, 914-288-8100

a50352952ex99-2.htm

Exhibit 99.2

REPORTING SUPPLEMENT

ACADIA REALTY TRUST

Table of Contents
Second Quarter 2012



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
2012 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, 91 properties through its core portfolio and four 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 Financial Officer
	www.acadiarealty.com	(914) 288-8142
		jgrisham@acadiarealty.com


Analyst Coverage

	Bank of America / Merrill Lynch	Cowen and Company	KeyBanc Capital Markets, Inc.
	Craig Schmidt - (646) 855-3640	Michael Gorman - (646) 562-1381	Todd Thomas - (917) 368-2286
	craig.schmidt@baml.com	michael.gorman@cowen.com	tthomas@keybanccm.com

	Bank of Montreal	Green Street Advisors	RBC Capital Markets
	Paul Adornato, CFA - (212) 885-4170	Cedrik LaChance - (949) 640-8780	Rich Moore, CFA - (440) 715-2646
	paul.adornato@bmo.com	clachance@greenst.com	rich.moore@rbccm.com

	Citigroup - Global Markets	J.P. Morgan Securities, Inc.	UBS
	Quentin Velleley, CFA - (212) 816-6981	Michael W. Mueller, CFA - (212) 622-6689	Christy McElroy - (203) 719-7831
	quentin.velleley@citi.com	michael.w.mueller@jpmorgan.com	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%		45,704
Common Operating Partnership ("OP") Units	1.3%		612
Combined Common Shares and OP Units			46,316

Share Price at June 30, 2012		$	23.18

Equity Capitalization - Common Shares and OP Units		$	1,073,605
Preferred OP Units			581		2
Total Equity Capitalization			1,074,186			70	%		72	%

Debt Capitalization
Consolidated debt			855,292
Adjustment to reflect pro-rata share of debt			(404,592	)
Total Debt Capitalization			450,700			30	%		28	%

Total Market Capitalization		$	1,524,886			100	%		100	%

Weighted Average Outstanding Common Shares and OP Units
(in thousands)
	June 30, 2012				June 30, 2011
	Quarter		Year-to-date		Quarter		Year-to-date
Weighted average Common Shares - Basic EPS		44,245		43,491		40,333		40,326
Dilutive potential Common Shares		428		419		300		281
Weighted average Common Shares - Diluted EPS		44,673		43,910		40,633		40,607
OP Units		618		620		471		468
Dilutive potential OP Units		25		25		-		-
Weighted average Common Shares and OP Units - Diluted FFO		45,316		44,555		41,104		41,075

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, 2012 was
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
(in thousands)

	Year-to-date ended June 30, 2012																				Three months ended June 30, 2012
	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	$	24,692		$	3,438		$	28,130		$	-	$	7,752		$	87		$	35,969		$	12,979		$	1,655		$	14,634		$	-	$	3,965		$	40		$	18,639
Percentage rents		271			58			329			-		26			-			355			46			10			56			-		11			-			67
Expense reimbursements - CAM		1,869			354			2,223			-		675			12			2,910			1,031			179			1,210			-		311			1			1,522
Expense reimbursements - Taxes		3,674			528			4,202			-		880			49			5,131			1,914			256			2,170			-		460			10			2,640
Other property income		26			12			38			-		359			-			397			14			7			21			-		235			-			256
Total Property Revenues		30,532			4,390			34,922			-		9,692			148			44,762			15,984			2,107			18,091			-		4,982			51			23,124

PROPERTY EXPENSES
Property operating - CAM		2,500			438			2,938			-		792			13			3,743			1,140			220			1,360			-		384			2			1,746
Other property operating (Non-CAM)		1,175			121			1,296			-		1,340			10			2,646			524			70			594			-		688			12			1,294
Real estate taxes		4,553			648			5,201			-		1,308			28			6,537			2,339			324			2,663			-		663			14			3,340
Total Property Expenses		8,228			1,207			9,435			-		3,439			52			12,926			4,003			614			4,617			-		1,735			28			6,380

NET OPERATING INCOME - PROPERTIES		22,304			3,183			25,487			-		6,253			96			31,836			11,981			1,493			13,474			-		3,247			23			16,744

OTHER INCOME (EXPENSE)
Mezzanine interest income		3,146			-			3,146			-		239			-			3,385			1,689			-			1,689			-		104			-			1,793
Other interest income		76			-			76			-		2			-			78			22			-			22			-		2			-			24
Straight-line rent income, net		775			41			816			-		580			7			1,403			441			25			466			-		306			3			775
Straight-line ground rent expense		-			-			-			-		(43	)		-			(43	)		-			-			-			-		(21	)		-			(21	)
ASC 805 rent, net		390			70			460			-		88			-			548			287			35			322			-		64			-			386
ASC 805 interest expense		(39	)		-			(39	)		-		32			-			(7	)		(44	)		-			(44	)		-		16			-			(28	)
Interest expense		(6,713	)		(2,161	)		(8,874	)		-		(2,070	)		(20	)		(10,964	)		(3,507	)		(1,034	)		(4,541	)		-		(1,017	)		(10	)		(5,568	)
Amortization of finance costs		(114	)		-			(114	)		-		(265	)		-			(379	)		(57	)		-			(57	)		-		(139	)		-			(196	)
Asset and property management expense		(26	)		(19	)		(45	)		-		(311	)		-			(356	)		(12	)		(8	)		(20	)		-		(141	)		-			(161	)
Promote expense		-			-			-			-		-			-			-			-			-			-			-		-			-			-
Other income		324			-			324			-		-			-			324			(10	)		-			(10	)		-		-			-			(10	)
Acquisition costs		(770	)		-			(770	)		-		(282	)		-			(1,052	)		(327	)		-			(327	)		-		(203	)		-			(530	)
Impairment of asset		-			-			-			-		-			-			-			-			-			-			-		-			-			-
Equity in earnings of unconsolidated affiliate, net of taxes		-			-			-			-		-			-			-			-			-			-			-		-			-			-
CORE PORTFOLIO AND OPPORTUNITY FUND INCOME		19,353			1,114			20,467			-		4,223			83			24,773			10,463			511			10,974			-		2,218			16			13,208

FEE INCOME
Asset and property management fees and priority distributions		6,782			-			6,782			-		-			-			6,782			3,603			-			3,603			-		-			-			3,603
Transactional fees3		2,974			-			2,974			-		-			-			2,974			1,467						1,467			-		-			-			1,467
Provision for income taxes		(1,707	)		-			(1,707	)		-		115			-			(1,592	)		(1,106	)		-			(1,106	)		-		39			-			(1,067	)
FEE INCOME		8,049			-			8,049			-		115			-			8,164			3,964			-			3,964			-		39			-			4,003

PROMOTE, RCP AND OTHER INCOME
Equity in earnings from RCP investments		-			-			-			-		344			-			344			-			-			-			-		376			-			376
Promote income - RCP		-			-			-			-		(59	)		-			(59	)		-			-			-			-		(43	)		-			(43	)
Promote income - Fund capital transactions		-			-			-			-		449			-			449			-			-			-			-		449			-			449
Equity in earnings of unconsolidated properties		-			-			-			-		-			-			-			-			-			-			-		-			-			-
Lease termination income		-			12			12			-		71			-			83			-			(1	)		(1	)		-		-			-			(1	)
Gain (loss) on extinguishment of debt		-			-			-			-		-			-			-			-			-			-			-		-			-			-
Gain from bargain purchase		-			-			-			-		-			-			-			-			-			-			-		-			-			-
Provision for income taxes (RCP)		(94	)		(1	)		(95	)		-		(2	)		-			(97	)		(119	)		-			(119	)		-		(2	)		-			(121	)
Total Promote, RCP and Other Income		(94	)		11			(83	)		-		803			-			720			(119	)		(1	)		(120	)		-		780			-			660

GENERAL AND ADMINISTRATIVE		(11,740	)		(21	)		(11,761	)		-		(230	)		(0	)		(11,991	)		(5,530	)		(11	)		(5,541	)		-		(163	)		(0	)		(5,704	)

Depreciation and amortization		(7,491	)		(782	)		(8,273	)		-		(2,426	)		(16	)		(10,715	)		(4,092	)		(389	)		(4,481	)		-		(1,238	)		-			(5,719	)
ASC 805 amortization		(640	)		-			(640	)		-		(305	)		-			(945	)		(347	)		-			(347	)				(166	)		-			(513	)
Gain (loss) on sale of properties		(248	)		-			(248	)		-		609			641			1,002			(248	)		-			(248	)		-		609			641			1,002
Income before noncontrolling interests		7,189			322			7,511			-		2,789			708			11,008			4,091			110			4,201			-		2,079			657			6,937

Noncontrolling interest - OP		(173	)		-			(173	)		-		-			-			(173	)		(106	)		-			(106	)		-		-			-			(106	)
Noncontrolling interests		-			-			-			-		14			-			14			-			-			-			-		8			-			8

NET INCOME	$	7,016		$	322		$	7,338		$	-	$	2,803		$	708		$	10,849		$	3,985		$	110		$	4,095		$	-	$	2,087		$	657		$	6,839

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.
2Represents the Company's pro-rata share unconsolidated investments which are detailed on pages 32 and 33.
3Consists of development, construction, leasing and legal fees.

- 5 -

Income Statements - Opportunity Funds1
(in thousands)
	Year-to-date ended June 30, 2012
													Continuing			Discontinued									AKR											Continuing			Discontinued					AKR						Pro-rata						AKR						AKR			Total
													Operations			Operations									Pro-											Operations			Operations					Pro-						share of						Pro-						Pro-			AKR
	Fund I			Fund I			Fund I			AKR			AKR Pro-			AKR Pro-						AKR			rata			Fund II			Fund II		Fund II			AKR Pro-			AKR Pro-					rata						Fund III						rata						rata			Pro-
	Continuing			Discontinued			Consolidated			Promote			rata share			rata share			Mervyns			Promote			share			Continuing			Discontinued		Consolidated			rata share			rata share		Mervyns			share						unconsolidated			Adjusted			share			Fund			share 4			rata
	Operations			Operations			Operations			20.00%			22.22%			22.22%			I			20.00%			22.22%			Operations			Operations		Operations			20.00%			20.00%		II			20.00%			Fund III			affiliates3			Fund III			19.90%			IV			28.80%			share

PROPERTY REVENUES
Minimum rents	$	112		$	390		$	502		$	100		$	3		$	87		$	-		$	-		$	-		$	16,583		$	-	$	16,583		$	3,315		$	-	$	-		$	-		$	17,515		$	4,254		$	21,769		$	4,334		$	-		$	-		$	7,839
Percentage rents		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			18			110			128			26			-			-			26
Expense reimbursements - CAM		-			52			52			10			(2	)		12			-			-			-			1,871			-		1,871			374			-		-			-			740			728			1,468			293			-			-			687
Expense reimbursements - Taxes		-			221			221			44			(10	)		49			-			-			-			1,368			-		1,368			273			-		-			-			2,426			446			2,872			572			-			-			929
Other property income		286			-			286			57			51			-			-			-			-			233			-		233			46			-		-			-			876			156			1,032			205			-			-			359
Total Property Revenues		398			663			1,061			212			41			148			-			-			-			20,055			-		20,055			4,008			-		-			-			21,575			5,694			27,269			5,430			-			-			9,840

PROPERTY EXPENSES
Property operating - CAM		11			58			69			14			(1	)		13			-			-			-			2,324			-		2,324			465			-		-			-			992			587			1,579			314			-			-			805
Other property operating (Non-CAM)		86			46			132			26			13			10			-			-			-			2,645			-		2,645			529			-		-			-			3,352			528			3,880			772			-			-			1,350
Real estate taxes		16			128			144			29			(3	)		28			-			-			-			2,183			-		2,183			436			-		-			-			3,302			953			4,255			846			-			-			1,336
Total Property Expenses		113			232			345			69			10			52			-			-			-			7,152			-		7,152			1,430			-		-			-			7,646			2,068			9,714			1,932			-			-			3,491

NET OPERATING INCOME - PROPERTIES		285			431			716			143			32			96			-			-			-			12,903			-		12,903			2,578			-		-			-			13,929			3,626			17,555			3,498			-			-			6,349

OTHER INCOME (EXPENSE)
Mezzanine interest income		286			-			286			57			51			-			-			-			-			-			-		-			-			-		-			-			641			18			659			131			-			-			239
Other interest income		4			-			4			1			1			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			2
Straight-line rent income, net		-			28			28			6			(1	)		7			-			-			-			2,241			-		2,241			449			-		-			-			301			337			638			127			-			-			587
Straight-line ground rent		-			-			-			-			-			-			-			-			-			(212	)		-		(212	)		(43	)		-		-			-			-			-			-			-			-			-			(43	)
ASC 805 rent, net		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			(289	)		730			441			88			-			-			88
ASC 805 interest expense		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			162			162			32			-			-			32
Interest expense		1			(91	)		(90	)		(18	)		4			(20	)		-			-			-			(4,918	)		-		(4,918	)		(984	)		-		-			-			(3,696	)		(1,693	)		(5,389	)		(1,072	)		-			-			(2,090	)
Amortization of finance costs		(12	)		-			(12	)		(2	)		(2	)		-			-			-			-			(625	)		-		(625	)		(125	)		-		-			-			(680	)		-			(680	)		(135	)		-			-			(265	)
Asset and property management expense 2		15			(11	)		4			-			-			-			-			-			-			(2,709	)		-		(2,709	)		-			-		(286	)		-			(4,821	)		(1,758	)		(6,579	)		(311	)		-			-			(311	)
Promote expense2		(691	)		-			(691	)		-			-			-			60			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			-
Other income		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			2			2			-			-			-			-
Acquisition costs		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			(1,386	)		(29	)		(1,415	)		(282	)		-			-			(282	)
Impairment of asset		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			-
Equity in earnings of unconsolidated affiliate, net of taxes		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-						-			-
OPPORTUNITY FUND INCOME		(112	)		357			245			186			84			83			60			-			-			6,680			-		6,680			1,875			-		(286	)		-			3,999			1,395			5,394			2,076			-			-			4,306

FEE INCOME
Asset and property management fees and
priority distributions 2		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			-
Transactional fees		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			-
Provision for income taxes		13			-			13			3			2			-			-			-			-			(26	)		-		(26	)		(6	)		-		-			-			585			-			585			116			-			-			115
Total Fee Income		13			-			13			3			2			-			-			-			-			(26	)		-		(26	)		(6	)		-		-			-			585			-			585			116			-			-			115

PROMOTE, RCP AND OTHER INCOME
Equity in earnings from RCP investments		-			-			-			-			-			-			(293	)		-			(52	)		-			-		-			-			-		1,977			396			-			-			-			-			-			-			344
Promote income - RCP		-			-			-			-			-			-			-			(59	)		-			-			-		-			-			-		-			-			-			-			-			-			-			-			(59	)
Promote income - Fund capital transactions		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			-
Equity in earnings of unconsolidated properties		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			-
Lease termination income		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			357			357			71			-			-			71
Gain on extinguishment of debt		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			-
Gain from bargain purchase		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			-
Provision for income taxes (RCP)		-			-			-			-			-			-			(2	)		(0	)		(0	)		-			-		-			-			-		(5	)		(1	)		-			-			-			-			-			-			(2	)
Total Promote, RCP and Other Income		-			-			-			-			-			-			(295	)		(59	)		(52	)		-			-		-			-			-		1,972			395			-			357			357			71			-			-			354

GENERAL AND ADMINISTRATIVE		(50	)		(1	)		(51	)		(10	)		(9	)		(0	)		(7	)		(1	)		(1	)		(238	)		-		(238	)		(47	)		-		(18	)		(3	)		(360	)		(1	)		(361	)		(72	)		(300	)		(86	)		(230	)

Depreciation and amortization		(7	)		(73	)		(80	)		(16	)		2			(16	)		-			-			-			(5,828	)		-		(5,828	)		(1,166	)		-		-			-			(4,975	)		(1,282	)		(6,257	)		(1,245	)		-			-			(2,442	)
ASC 805 amortization		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			(638	)		(891	)		(1,529	)		(305	)		-			-			(305	)
Gain on sale of properties		-			2,885			2,885			577			(128	)		641			-			-			-			-			-		-			-			-		-			-			-			3,062			3,062			609			-			-			1,699
Income before noncontrolling interest		(156	)		3,168			3,012			740			(49	)		708			(242	)		(60	)		(54	)		588			-		588			656			-		1,668			392			(1,389	)		2,640			1,251			1,250			(300	)		(86	)		3,497

Noncontrolling interest - OP		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			-
Noncontrolling interests		-			-			-			-			-			-			-			-			-			(33	)		-		(33	)		(6	)		-		-			-			102			-			102			20			-			-			14

NET INCOME	$	(156	)	$	3,168		$	3,012		$	740		$	(49	)	$	708		$	(242	)	$	(60	)	$	(54	)	$	555		$	-	$	555		$	650		$	-	$	1,668		$	392		$	(1,287	)	$	2,640		$	1,353		$	1,270		$	(300	)	$	(86	)	$	3,511

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 & IV and Mervyn's which are consolidated
with the Company's financial statements.
2 Funds I, II, III & IV 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.
3Represents the Company's pro-rata share unconsolidated investments which are detailed on page 24.
4 The Company's pro-rata share of Fund IV is anticipated to range between 20% and 25%.

- 6 -

Income Statements - Opportunity Funds1
(in thousands)
							Three months ended June 30, 2012
													Continuing			Discontinued									AKR											Continuing			Discontinued					AKR						Pro-rata						AKR						AKR			Total
													Operations			Operations									Pro-											Operations			Operations					Pro-						share of						Pro-						Pro-			AKR
	Fund I			Fund I			Fund I			AKR			AKR Pro-			AKR Pro-						AKR			rata			Fund II			Fund II		Fund II			AKR Pro-			AKR Pro-					rata						Fund III						rata						rata			Pro-
	Continuing			Discontinued			Consolidated			Promote			rata share			rata share			Mervyns			Promote			share			Continuing			Discontinued		Consolidated			rata share			rata share		Mervyns			share						unconsolidated			Adjusted			share			Fund			share 4			rata
	Operations			Operations			Operations			20.00%			22.22%			22.22%				I		20.00%			22.22%			Operations			Operations		Operations			20.00%			20.00%		II			20.00%			Fund III			affiliates3			Fund III			19.90%			IV			28.80%			share

PROPERTY REVENUES
Minimum rents	$	55		$	178		$	233		$	47		$	2		$	40		$	-		$	-		$	-		$	8,381		$	-	$	8,381		$	1,676		$	-	$	-		$	-		$	9,109		$	2,149		$	11,258		$	2,241		$	-		$	-		$	4,005
Percentage rents		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			53			53			11			-			-			11
Expense reimbursements - CAM		-			3			3			1			(0	)		1			-			-			-			855			-		855			171			-		-			-			309			392			701			140			-			-			312
Expense reimbursements - Taxes		-			47			47			9			(2	)		10			-			-			-			731			-		731			146			-		-			-			1,385			151			1,536			306			-			-			470
Other property income		286			-			286			57			51			-			-			-			-			122			-		122			24			-		-			-			445			74			519			103			-			-			235
Total Property Revenues		341			228			569			114			50			51			-			-			-			10,089			-		10,089			2,017			-		-			-			11,248			2,819			14,067			2,801			-			-			5,033

PROPERTY EXPENSES
Property operating - CAM		10			11			21			4			1			2			-			-			-			1,165			-		1,165			233			-		-			-			469			262			731			145			-			-			386
Other property operating (Non-CAM)		32			54			86			17			3			12			-			-			-			1,315			-		1,315			263			-		-			-			1,705			332			2,037			405			-			-			700
Real estate taxes		5			62			67			13			(2	)		14			-			-			-			1,126			-		1,126			225			-		-			-			1,747			401			2,148			427			-			-			677
Total Property Expenses		47			127			174			35			3			28			-			-			-			3,606			-		3,606			721			-		-			-			3,921			995			4,916			977			-			-			1,763

NET OPERATING INCOME - PROPERTIES		294			101			395			79			48			23			-			-			-			6,483			-		6,483			1,296			-		-			-			7,327			1,824			9,151			1,824			-			-			3,270

OTHER INCOME (EXPENSE)
Mezzanine interest income		143			-			143			29			25			-			-			-			-			-			-		-			-			-		-			-			235			18			253			50			-			-			104
Other interest income		4			-			4			1			1			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			2
Straight-line rent income, net		-			12			12			2			(1	)		3			-			-			-			1,183			-		1,183			237			-		-			-			174			163			337			67			-			-			309
Straight-line ground rent		-			-			-			-			-			-			-			-			-			(104	)		-		(104	)		(21	)		-		-			-			-			-			-			-			-			-			(21	)
ASC 805 rent, net		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			(148	)		468			320			64			-			-			64
ASC 805 interest expense		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			81			81			16			-			-			16
Interest expense		-			(44	)		(44	)		(9	)		2			(10	)		-			-			-			(2,253	)		-		(2,253	)		(451	)		-		-			-			(1,961	)		(849	)		(2,810	)		(559	)		-			-			(1,027	)
Amortization of finance costs		(5	)		-			(5	)		(1	)		(1	)		-			-			-			-			(299	)		-		(299	)		(60	)		-		-			-			(388	)		-			(388	)		(77	)		-			-			(139	)
Asset and property management expense2		2			-			2			-			-			-			-			-			-			(1,395	)		-		(1,395	)		-			-		(143	)		-			(2,439	)		(801	)		(3,240	)		(141	)		-			-			(141	)
Promote expense2		(654	)		-			(654	)		-			-			-			44			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			-
Other income		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			1			1			-			-			-			-
Acquisition costs		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			(991	)		(29	)		(1,020	)		(203	)		-			-			(203	)
Impairment of asset		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			-
Equity in earnings of unconsolidated affiliate, net of taxes		-						-			-			-			-						-			-			-			-		-			-			-		-			-									-			-					#REF!				-
OPPORTUNITY FUND INCOME		(216	)		69			(147	)		101			74			16			44			-			-			3,615			-		3,615			1,001			-		(143	)		-			1,809			876			2,685			1,041			-			-			2,234

FEE INCOME
Asset and property management fees and
priority distributions		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			-
Transactional fees		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			-
Provision for income taxes		8			-			8			2			1			-			-			-			-			(8	)		-		(8	)		(2	)		-		-			-			191			-			191			38			-			-			39
Total Fee Income		8			-			8			2			1			-			-			-			-			(8	)		-		(8	)		(2	)		-		-			-			191			-			191			38			-			-			39

PROMOTE, RCP AND OTHER INCOME
Equity in earnings from RCP investments		-			-			-			-			-			-			(214	)		-			(38	)		-			-		-			-			-		2,069			414			-			-			-			-			-			-			376
Promote income - RCP		-			-			-			-			-			-			-			(43	)		-			-			-		-			-			-		-			-			-			-			-			-			-			-			(43	)
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)		-			-			-			-			-			-			(2	)		(0	)		(0	)		-			-		-			-			-		(5	)		(1	)		-			-			-			-			-			-			(2	)
Total Promote, RCP and Other Income		-			-			-			-			-			-			(216	)		(43	)		(38	)		-			-		-			-			-		2,064			413			-			-			-			-			-			-			331

GENERAL AND ADMINISTRATIVE		(23	)		(1	)		(24	)		(5	)		(4	)		(0	)		(4	)		(1	)		(1	)		(92	)		-		(92	)		(18	)		-		(11	)		(2	)		(232	)		-			(232	)		(46	)		(300	)		(86	)		(163	)

Depreciation and amortization		(1	)		-			(1	)		(0	)		(0	)		-			-			-			-			(3,064	)		-		(3,064	)		(613	)		-		-			-			(2,503	)		(636	)		(3,139	)		(625	)		-			-			(1,238	)
ASC 805 amortization		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			(334	)		(499	)		(833	)		(166	)		-			-			(166	)
Gain on sale of properties		-			2,885			2,885			577			(128	)		641			-			-			-			-			-		-			-			-		-			-			-			3,062			3,062			609			-			-			1,699
Income before noncontrolling interest		(232	)		2,953			2,721			675			(57	)		657			(176	)		(44	)		(39	)		451			-		451			368			-		1,910			411			(1,069	)		2,803			1,734			851			(300	)		(86	)		2,736

Noncontrolling interest - OP		-			-			-			-			-			-			-			-			-			-			-		-			-			-		-			-			-			-			-			-			-			-			-
Noncontrolling interests		-			-			-			-			-			-			-			-			-			(31	)		-		(31	)		(6	)		-		-			-			72			-			72			14			-			-			8

NET INCOME	$	(232	)	$	2,953		$	2,721		$	675		$	(57	)	$	657		$	(176	)	$	(44	)	$	(39	)	$	420		$	-	$	420		$	362		$	-	$	1,910		$	411		$	(997	)	$	2,803		$	1,806		$	865		$	(300	)	$	(86	)	$	2,744

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 & IV and Mervyn's
which are consolidated with the Company's financial statements.
2 Funds I, II, III & IV 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.
3Represents the Company's pro-rata share unconsolidated investments which are detailed on page 24.
4 The Company's prorata share of Fund IV is anticipated to range between 20% and 25%.

- 7 -

Funds from Operations ("FFO") 1
(in thousands)

	2012			2012						2011			2011
	Current			Current			Prior			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, 2012			June 30, 2012			March 31, 2012			June 30, 2011			June 30, 2011

Net Income	$	10,849		$	6,839		$	4,010		$	39,657		$	30,234
Add back:
Depreciation of real estate and amortization of leasing costs:
(net of noncontrolling interest share)
Consolidated affiliates		10,481			5,653			4,828			9,055			4,597
Unconsolidated affiliates		781			389			392			734			381
Gain on sale of properties (net of noncontrolling interest share)
Consolidated affiliates		268			268			-			(29,360	)		(28,576	)
Unconsolidated affiliates		(1,090	)		(1,090	)		-			-			-
Impairment of asset											2,616			2,616
Income attributable to noncontrolling interests'
share in Operating Partnership		164			101			63			477			362
Distributions on Preferred OP Units		10			5			5			10			5
FFO	$	21,463		$	12,165		$	9,298		$	23,189		$	9,619

Adjusted Funds from operations ("AFFO"):
Diluted FFO	$	21,463		$	12,165		$	9,298		$	23,189		$	9,619
Straight line rent, net		(1,403	)		(775	)		(628	)		(996	)		(539	)
Straight-line ground rent expense		43			21			22			44			22
ASC 805 rent, net		(548	)		(386	)		(162	)		70			(68	)
ASC 805 interest expense		7			28			(21	)		(31	)		(26	)
Amortization of discount on convertible debt		-			-			-			540			271
Non real estate depreciation		230			112			118			232			116
Amortization of finance costs		491			284			207			561			272
Amortization of cost of management contracts		20			-			20			135			60
Tenant improvements		(2,995	)		(1,412	)		(1,583	)		(3,817	)		(2,580	)
Leasing commissions		(622	)		(316	)		(306	)		(886	)		(411	)
Capital expenditures		(387	)		(323	)		(64	)		(218	)		-
(Gain) loss on extinguishment of debt		-			-			-			(1,571	)		102
AFFO	$	16,299		$	9,398		$	6,901		$	17,252		$	6,838

Funds Available for Distribution ("FAD")
AFFO	$	16,299		$	9,398		$	6,901		$	17,252		$	6,838
Scheduled principal repayments		(1,683	)		(873	)		(810	)		(1,299	)		(667	)
FAD	$	14,616		$	8,525		$	6,091		$	15,953		$	6,171

Total weighted average shares and OP Units:
Basic		44,136			44,889			43,382			40,794			40,804
Diluted		44,555			45,317			43,792			41,075			41,104

FFO per share:
FFO per share - Basic	$	0.49		$	0.27		$	0.21		$	0.57		$	0.24
FFO per share - Diluted	$	0.48		$	0.27		$	0.21		$	0.56		$	0.23

AFFO per share - Basic	$	0.37		$	0.21		$	0.16		$	0.42		$	0.17
AFFO per share - Diluted	$	0.37		$	0.21		$	0.16		$	0.42		$	0.17

FAD per share - Basic	$	0.33		$	0.19		$	0.14		$	0.39		$	0.15
FAD per share - Diluted	$	0.33		$	0.19		$	0.14		$	0.39		$	0.15

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
(in thousands)

	Year-to-Date																	Current Quarter
	Period ended June 30, 2012																	Three months ended June 30, 2012
	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	$	7,016	$	322	$	7,338	$	-	$	2,803		$	708		$	10,849		$	3,985	$	110	$	4,095	$	-	$	2,087		$	657		$	6,839

Add back:
Depreciation and amortization		7,491		782		8,273		-		2,426			16			10,715			4,092		389		4,481		-		1,238			-			5,719
ASC 805 amortization		640		-		640		-		305			-			945			347		-		347		-		166			-			513
Interest expense		6,713		2,161		8,874		-		2,070			20			10,964			3,507		1,034		4,541		-		1,017			10			5,568
Amortization of finance costs		114		-		114		-		265			-			379			57		-		57		-		139			-			196
ASC 805 interest expense		39		-		39		-		(32	)		-			7			44		-		44		-		(16	)		-			28
Impairment of asset		-		-		-		-		-			-			-			-		-		-		-		-			-			-
Gain on sale of properties		248		-		248		-					(641	)		(1,002	)		248		-		248		-		(609	)		(641	)		(1,002	)
Provision for income taxes		1,801		1		1,802		-		(113	)		-			1,689			1,225		-		1,225		-		(37	)		-			1,188
(Gain) loss on extinguishment of debt		-		-		-		-		-			-			-			-		-		-		-		-			-			-
Noncontrolling interest - OP		173		-		173		-		-			-			173			106		-		106		-		-			-			106
Noncontrolling interests		-		-		-		-		(14	)		-			(14	)		-		-		-		-		(8	)		-			(8	)

EBITDA	$	24,235	$	3,266	$	27,501	$	-	$	7,710		$	103		$	34,705		$	13,611	$	1,533	$	15,144	$	-	$	3,977		$	26		$	19,147

- 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, 2012			June 30, 2011			Favorable (unfavorable)			June 30, 2012			June 30, 2011			Favorable (unfavorable)

Reconciliation of total NOI to same property NOI:

NOI - Core properties	$	13,474		$	10,863					$	25,487		$	21,877
NOI - Discontinued Operations		-			186						-			849

Total NOI		13,474			11,049						25,487			22,726

NOI - Properties acquired, in redevelopment
and Discontinued Operations		(2,946	)		(1,012	)					(5,092	)		(2,378	)

Total	$	10,528		$	10,037			4.9	%	$	20,395		$	20,348			0.2	%


Same property NOI by revenues/expenses:


Revenues	$	14,476		$	14,360			0.8	%	$	28,563		$	29,227			-2.3	%
Expenses		3,948			4,323			8.7	%		8,168			8,879			8.0	%

Total Core Portfolio	$	10,528		$	10,037			4.9	%	$	20,395		$	20,348			0.2	%

Notes:
1 The above amounts include the pro-rata activity related to the Company's Core consolidated and unconsolidated investments.

- 10 -

Income Statements - Fee income by Opportunity Fund
(in thousands)

	Fund I		Fund II		Fund III		Fund IV		Other		Total
Six months ended June 30, 2012
Asset and property management fees and priority distributions	$	154	$	2,270	$	3,395	$	474	$	489	$	6,782
Transactional fees		28		1,454		1,085		-		407		2,974
Total management fees and priority distributions	$	182	$	3,724	$	4,480	$	474	$	896	$	9,756


	Fund I		Fund II		Fund III		Fund IV		Other		Total
Current Quarter ended June 30, 2012
Asset and property management fees and priority distributions	$	65	$	1,167	$	1,678	$	474	$	219	$	3,603
Transactional fees		14		628		581		-		244		1,467
Total management fees and priority distributions	$	79	$	1,795	$	2,259	$	474	$	463	$	5,070


	Fund I		Fund II		Fund III		Fund IV		Other		Total
Prior Quarter ended March 31, 2012
Asset and property management fees and priority distributions	$	89	$	1,103	$	1,717	$	-	$	270	$	3,179
Transactional fees		14		826		504		-		163		1,507
Total management fees and priority distributions	$	103	$	1,929	$	2,221	$	-	$	433	$	4,686

- 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	$	330,612			$	(153,282	)	$	16,159		$	193,489				The interim consolidated balance sheet is unaudited, although it
Buildings and improvements		1,112,649				(519,511	)		69,211			662,349				reflect all adjustments, which in the opinion of management,
Construction in progress		14,462				(4,988	)		510			9,984				are necessary for the fair presentation of the consolidated
		1,457,723				(677,781	)		85,880			865,822				balance sheet for the interim period.
Less: accumulated depreciation		(195,486	)			51,428			(12,606	)		(156,664	)
Net real estate		1,262,237				(626,353	)		73,274			709,158			2	The Company currently invests in Funds I, II, III & IV and Mervyns I & II
																which are consolidated with the Company's financial statements.
Net real estate under development		223,634		3		(178,323	)		189			45,500				To provide investors with supplemental information, the Company's
																investments in these joint ventures are reflected above on a
Cash and cash equivalents		66,463				(25,835	)		1,569			42,197				pro-rata basis by calculating its ownership percentage for each
Cash in escrow		19,690				(11,899	)		977			8,768				of the above asset and liability line items. Similarly, the above
Investments in and advances to unconsolidated affiliates		75,495				(48,488	)		(16,878	)		10,130				presentation also includes the Company's share of assets and
Rents receivable, net		5,038				(1,676	)		199			3,561				liabilities for unconsolidated investments which are accounted
Straight-line rents receivable, net		23,033				(12,839	)		1,746			11,940				for under the equity method of accounting for the Company's
Notes Receivable		88,712				(31,138	)		-			57,574				financial statements.
Deferred charges, net		28,681				(23,493	)		1,456			6,644
Prepaid expenses and other assets		32,779				16,934			2,911			52,624		4	3	The components of Net real estate under development are as follows:
Acquired lease intangibles		27,028				(10,384	)		1,374			18,018				Fund II	$	191,191
Accounts receivable from related parties		1,474										1,474				Fund III		26,806
Assets of discontinued operations		-				-			-			-				Total Opportunity Funds		217,997
																Core Portfolio		5,637
Total Assets	$	1,854,264			$	(953,494	)	$	66,817		$	967,588				Total	$	223,634

LIABILITIES AND SHAREHOLDERS' EQUITY															4	The components of Prepaid expenses and other assets are as follows:
																Due from Fund Investors	$	29,831
Mortgage notes payable	$	854,362				(488,743	)	$	84,151		$	449,770				Unsettled At-The-Market proceeds		3,586
Notes payable		930				-			-			930				Prepaid expenses		3,372
Valuation of debt at acquisition, net of amortization		(438	)			(6	)		145			(299	)			Contract deposits		4,010
Acquired lease intangibles		9,087				(2,569	)		2,606			9,124				Accrued interest on Notes Receivable		2,688
Accounts payable and accrued expenses		37,763				(12,313	)		1,505			26,956				Income tax receivables		1,129
Dividends and distributions payable		8,483				-			-			8,483				Corporate assets		1,148
Share of losses in excess of inv. in unconsolidated affiliates		22,229				-			(22,229	)		-				Other		6,860
Other liabilities		22,382				(9,003	)		639			14,018				Total	$	52,624
Liabilities of discontinued operations		-				-			-			-
Total liabilities		954,798				(512,634	)		66,817			508,982

Shareholders' equity:
Common shares		46				-			-			46
Additional paid-in capital		415,965				-			-			415,965
Accumulated other comprehensive income		(4,484	)			-			-			(4,484	)
Retained earnings		34,161				-			-			34,161
Total controlling interest		445,688				-			-			445,688
Non-controlling interest in subsidiary		453,778				(440,860	)		-			12,918
Total shareholders' equity		899,466				(440,860	)		-			458,606

Total Liabilities and Shareholders' Equity	$	1,854,264			$	(953,494	)	$	66,817		$	967,588

- 12 -

Notes Receivable
(in thousands)

	Balance at					Balance at															Underlying third-party
	March 31, 2012		Second			June 30, 2012						Stated			Effective						first mortgage
			Quarter					Accrued				Interest			Interest			Maturity	Extension
Investment	Principal		Activity			Principal		Interest		Total		Rate			Rate 1			Dates	Options		Amount		Maturity Dates


First mortgage and other notes	$	6,749	$	(1,080	)	$	5,669	$	113	$	5,782		13.57	%		17.52	%	2012 to 2017		-		n/a		n/a

Short-term notes related to acquisitions		28,500		(6,000	)		22,500		686		23,186		11.62	%		11.62	%	2012 to 2017		-		n/a		n/a

Mezzanine notes		18,755		98			18,853		897		19,750		12.74	%		14.36	%	2013 to 2017		-		311,716	2012 thru 2019

Total notes receivable	$	54,004	$	(6,982	)	$	47,022	$	1,696	$	48,718		12.30	%		13.43	%

Notes:
1 Inclusive of points and exit fees.
						Balance at
Reconciliation of Notes Receivable to the Consolidated Balance Sheet						June 30, 2012

Total Notes Receivable per above						$	47,022

Fund I first mortgage loan - Kroger/Safeway sale							12,609
Fund III first mortgage investments							28,500
Fund III non-real estate loans							581

Total Notes Receivable per Consolidated Balance Sheet						$	88,712

- 13 -

2012 Guidance - Highlights
(in millions except per share amounts, all per share amounts are fully diluted)


	Current
	2012 Guidance		2011 Actual
Overall:

Fully diluted Common Shares and OP Units		45,500 - 48,000		41,467

Full year Funds from Operations ("FFO") per share	$	1.00 to $1.05	$	0.97

Earnings per Share ("EPS")	$	0.54 to $0.60	$	1.26


FFO Components:

Core and pro-rata share of opportunity Fund ("Fund") portfolio income	$	48.0 to $51.0	$	43.9

Asset and property management fee income, net of TRS taxes	$	14.0 to $14.5	$	12.1

Transactional fee income, net of TRS taxes	$	5.0 to $6.5	$	6.2

Promote, RCP and other income, net of TRS taxes	$	1.0 to $1.5	$	1.5

General and administrative expense	$	(22.5) to $(23.0)	$	(23.4	)

Total	$	45.5 to $50.5	$	40.3

- 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	$	13,474			--			$	-	$	-		20.00	%	$	-	$	3,419	$	13,676		19.90	%	$	2,722
Operating properties - Unconsolidated Affiliates									-		-							1,824		7,296					1,452
Development Portfolio
Construction complete - Stabilized		-							4,066		16,264					3,253		-		-					-
Construction complete - Pre-stabilized		-							1,971		7,884					1,577		387		1,548					308
Storage portfolio		-							446		1,784					357		3,521		14,084					2,803
Total NOI	$	13,474						$	6,483	$	25,932				$	5,186	$	9,151	$	36,604				$	7,284


Cost to Date2
Construction complete (both stabilized and pre-stabilized)										$	422,400				$	84,480			$	24,900				$	4,955
Under construction											117,500					23,500				-					-
In-design											34,500					6,900				75,500					15,025
Storage portfolio											-					-				186,700					37,154


Costs to Complete2
Construction complete (both stabilized and pre-stabilized)										$	6,600				$	1,320			$	-				$	-
Under construction											137,300					27,460				-					-
In-design											-					-				-					-


Annual NOI Upon Stabilization (Mid-Point of Range)
Construction complete (both stabilized and pre-stabilized)										$	34,320				$	6,864			$	1,992				$	396
Storage portfolio											-					-				14,936					2,972
Under construction											20,384					4,077				-					-


Debt	$	327,925	$	-						$	335,298				$	62,612			$	326,932				$	60,162


Gross asset value1				18,300
Net Asset Value			$	18,300	37.78	%	$ 6,914


Notes:
1Fund I value is based on property appraisals. Pro-rata share is 20% (AKR promote) + 22% x 80% (AKR remaining share after promote) = 37.78%.
2See detail on pages 28 and 29 of this supplement.

- 15 -

Selected Operating Ratios
(in thousands)

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

	2012				2011				2012				2011					2012				2012
COVERAGE RATIOS1																	LEVERAGE RATIOS

EBITDA2	$	19,147			$	13,892			$	34,705			$	32,331			Debt4	$	450,700			$	422,367
Divided by Interest expense		5,568				6,156				10,964				11,905			Total Market Capitalization		1,524,886				1,419,065
Interest Coverage Ratio		3.44		x		2.26		x		3.17		x		2.72		x	Debt/Total Market Capitalization		30	%			30	%

EBITDA	$	19,147			$	13,892			$	34,705			$	32,331			Debt4, 6	$	408,503			$	385,645
Divided by (Interest expense		5,568				6,156				10,964				11,905			Total Market Capitalization		1,482,689				1,382,343
Plus: Preferred Dividends)3		5				5				10				10			Net Debt/Total Market Capitalization		28	%			28	%
Fixed Charge Coverage Ratio		3.44		x		2.25		x		3.16		x		2.71		x
																	Debt + Preferred Equity (Preferred O.P. Units)	$	451,281			$	422,932
EBITDA	$	19,147			$	13,892			$	34,705			$	32,331			Total Market Capitalization		1,524,886				1,419,065
Divided by (Interest expense		5,568				6,156				10,964				11,905			Debt+Preferred Equity/Total Market Capitalization		30	%			30	%
Plus: Principal Amortization)		873				667				1,683				1,299
Debt Service Coverage Ratio		2.97		x		2.04		x		2.74		x		2.45		x	Debt	$	327,925			$	297,734
																	EBITDA (Annualized)		60,576				49,428
Payout Ratios																	Debt/EBITDA - Core Portfolio		5.41		x		6.02		x

Dividends (Shares) & Distributions (OP Units) paid	$	8,097			$	7,506			$	16,011			$	15,011			Debt5	$	295,027			$	268,182
FFO		12,165				9,619				21,463				23,189			EBITDA (Annualized)		60,576				49,428
FFO Payout Ratio		67	%			78	%			75	%			65	%		Net Debt/EBITDA - Core Portfolio		4.87		x		5.43		x

Dividends (Shares) & Distributions (OP Units) paid	$	8,097			$	7,506			$	16,011			$	15,011			Debt	$	450,700			$	422,367
AFFO		9,398				6,838				16,299				17,252			EBITDA (Annualized)		76,485				62,232
AFFO Payout Ratio		86	%			110	%			98	%			87	%		Debt/EBITDA - Core Portfolio and Opportunity Funds		5.89		x		6.79		x

Dividends (Shares) & Distributions (OP Units) paid	$	8,097			$	7,506			$	16,011			$	15,011			Debt6	$	408,503			$	385,645
FAD		8,525				6,171				14,616				15,953			EBITDA (Annualized)		76,485				62,232
FAD Payout Ratio		95	%			122	%			110	%			94	%		Net Debt/EBITDA - Core Portfolio and Opportunity Funds		5.34		x		6.20
																									x
																	NOI (Annualized)	$	53,896			$	48,052
Notes:																	Debt		327,925				297,734
1Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating																	Debt Yield - Core Portfolio		16.4	%			16.1	%
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.																	NOI (Annualized)	$	53,896			$	48,052
2See page 9 for a calculation of EBITDA.																	Debt5		295,027				268,182
3Represents preferred distributions on Preferred Operating partnership Units.																	Net Debt Yield - Core Portfolio		18.3	%			17.9	%
4Includes the Company's pro-rata share of consolidated and unconsolidated joint venture debt.
5Reflects debt net of the current Core Portfolio cash balance at end of period.																	NOI (Annualized)	$	66,885			$	60,368
6Reflects debt net of the current Core Portfolio and pro-rata share of the Opportunity Funds cash balance at end of period.																	Debt		450,700				422,367
																	Debt Yield - Core Portfolio and Opportunity Funds		14.8	%			14.3	%

																	NOI (Annualized)	$	66,885			$	60,368
																	Debt6		408,503				385,645
																	Net Debt Yield - Core Portfolio and Opportunity Funds		16.4	%			15.7	%

- 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	$	353,914			5.5	%	$	33,930		5.1	%	$	387,844		5.5	%		86	%	$	125,616	$	(73,738	)	$	439,722
Variable-Rate Debt		(25,989	)		2.1	%		88,844		3.0	%		62,855		3.6	%		14	%		363,127		(10,413	)		415,570

Total	$	327,925			5.6	%	$	122,775		4.1	%	$	450,700		5.2	%		100	%	$	488,743	$	(84,151	)		855,292

ASC 805 purchase price debt allocation																										(438	)
Total debt as reported																									$	854,854


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 its percent ownership.

- 17 -

Debt Analysis
(in thousands)

		Principal Balance at			Acadia's Pro-rata Share						Interest			Maturity	Extension
Property	Entity	June 30, 2012			Percent			Amount			Rate			Date	Options

CORE PORTFOLIO

Fixed-Rate Debt
Clark Diversey	Acadia	$	4,420			100.0	%	$	4,420			6.35	%	7/1/2014	None
New Loudon Center	Acadia		13,760			100.0	%		13,760			5.64	%	9/6/2014	None
Crossroads Shopping Center	Crossroads JV		59,878			49.0	%		29,339			5.37	%	12/1/2014	None
Crescent Plaza	Acadia		17,158			100.0	%		17,158			4.98	%	9/6/2015	None
Pacesetter Park Shopping Center	Acadia		11,843			100.0	%		11,843			5.12	%	11/6/2015	None
Elmwood Park Shopping Center	Acadia		33,501			100.0	%		33,501			5.53	%	1/1/2016	None
Chicago Portfolio	Acadia		14,434			100.0	%		14,434			5.62	%	2/1/2016	None
Chicago Portfolio	Acadia		1,532			100.0	%		1,532			5.55	%	2/1/2016	None
The Gateway Shopping Center	Acadia		20,174			100.0	%		20,174			5.44	%	3/1/2016	None
Cambridge (Whole Foods)	Acadia		6,986			100.0	%		6,986			6.26	%	5/1/2016	None
Cambridge (Rite Aid)	Acadia		4,250			100.0	%		4,250			3.68	%	5/1/2016	1 x 60 mos.
Brandywine Town Center	Brandywine JV		166,200			22.2	%		36,933			5.99	%	7/1/2016	None
Walnut Hill Plaza	Acadia		23,328			100.0	%		23,328			6.06	%	10/1/2016	None
Brentwood	Acadia		16,510			100.0	%		16,510			6.35	%	12/1/2016	None
Acadia Realty Trust (Convertible Notes)	Acadia		930			100.0	%		930			3.75	%	12/15/2016	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
Georgetown Portfolio	Acadia		6,361			50.0	%		3,181			6.15	%	6/15/2020	None
Georgetown Portfolio	Acadia		979			50.0	%		490			5.50	%	5/26/2021	None
A & P Shopping Plaza	Acadia		7,791			60.0	%		4,675			6.40	%	11/1/2032	None
Interest rate swaps1	Acadia		64,720			100.0	%		64,720			4.77	%	Various

Sub-Total Fixed-Rate Debt			527,005						353,914			5.50	%

Variable-Rate Debt

Georgetown Portfolio	Acadia		2,735			50.0	%		1,368		Libor + 210			10/31/2012	None
Various2	Acadia		-			100.0	%		-		Libor + 125			12/1/2012	None
Branch Plaza	Acadia		12,643			100.0	%		12,643		Libor + 225			9/30/2014	1 x 36 mos.
Village Commons Shopping Center	Acadia		9,251			100.0	%		9,251		Libor + 140			6/30/2018	None
West Diversey	Acadia		15,469			100.0	%		15,469		Libor + 190			4/27/2019
Interest rate swaps1	Acadia		(64,720	)		100.0	%		(64,720	)

Sub-Total Variable-Rate Debt			(24,622	)					(25,989	)	Libor + 190

Total Core Portfolio Debt		$	502,383					$	327,925			5.62	%

- 18 -

Debt Analysis (continued)
(in thousands)

		Principal Balance at			Acadia's Pro-rata Share						Interest			Maturity	Extension
Property	Entity	June 30, 2012			Percent			Amount			Rate			Date	Options

OPPORTUNITY FUNDS

Fixed-Rate Debt
Lincoln Park Centre	Fund III		19,693			19.9	%		3,920			5.85	%	12/1/2013	None
Lincoln Road7	Fund III		20,068			18.9	%		3,795			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		11,501			13.3	%		1,534			7.34	%	1/1/2020	None
Interest rate swaps1	Funds II & III		98,451			16.1	%		15,861			3.74	%	Various

Sub-Total Fixed-Rate Debt			195,213						33,930			5.11	%

Variable-Rate Debt
Liberty Avenue	Fund II		9,299			19.8	%		1,843		Libor + 325			9/1/2012	None
Fordham Place3	Fund II		83,630			19.8	%		16,575		Libor + 350			9/30/2012	None
Acadia Strategic Opportunity Fund III, LLC5	Fund III		82,940			19.9	%		16,505		Libor + 225			10/10/2012	None
161st Street3	Fund II		28,900			19.8	%		5,728		Libor + 600			4/1/2013	None
CityPoint	Fund II		20,650			18.8	%		3,888		Libor + 250			8/12/2013	2 x 12 mos.
Storage Post - Various4	Fund III		42,000			18.9	%		7,940		Libor + 415			8/31/2013	None
Pelham Manor Shopping Plaza3	Fund II		33,977			19.8	%		6,734		Libor + 275			12/1/2013	None
125 Main Street	Fund III		12,500			15.9	%		1,991		Libor + 235			9/30/2014	2 x 12 mos.
Acadia Strategic Opportunity Fund II, LLC	Fund II		32,400			20.0	%		6,480		Libor + 290			12/22/2014	None
Parkway Crossing8	Fund III		13,965			17.9	%		2,502		Libor + 220			1/1/2015	2 x 12 mos.
Canarsie Plaza	Fund II		69,441			15.9	%		11,010		Libor + 225			5/1/2015	None
640 Broadway	Fund III		22,750			10.0	%		2,264		Libor + 295			7/1/2015	1 x 12 mos.
Cortlandt Towne Center	Fund III		73,881			19.9	%		14,702		Libor + 190			10/26/2015	None
White City Shopping Center6	Fund III		39,135			16.7	%		6,543		Libor + 260			12/23/2017	1 x 36 mos.
Interest rate swaps1	Funds II & III		(98,451	)		16.1	%		(15,861	)

Sub-Total Variable-Rate Debt			467,017						88,844		Libor + 276

Total Opportunity Funds Portfolio Debt		$	662,230					$	122,774			4.09	%

- 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		Pro-rata		Average			Maturity
	principal		Share		Swap rate			Date

Core Portfolio	$	15,000	$	15,000		3.79	%	11/30/2012
		15,000		15,000		3.41	%	11/30/2012
		10,000		10,000		2.65	%	11/30/2012
		9,251		9,251		2.90	%	7/2/2018
		15,469		15,469		1.57	%	5/1/2019
	$	64,720	$	64,720		2.87	%

Opportunity Funds	$	19,234	$	3,216		2.90	%	12/26/2017
		9,776		1,635		3.02	%	12/26/2017
		36,165		5,734		0.70	%	5/1/2015
		33,276		5,276		0.70	%	5/1/2015
	$	98,451	$	15,861		1.39	%

Total Core Portfolio and Opportunity Funds	$	163,171	$	80,581		2.58	%

2This is a revolving facility for up to $64,500 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, Lawrence and Ridgewood.
5This is an acquisition facility with no current additional capacity.
6Fund 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%.
7Fund 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%.
8Fund III is a 90.0% joint venture partner on this investment. As such, Acadia's pro-rata share of the above debt is 90.0% x 19.9%, or 17.9%.

- 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

2012	$	2,515	$	2,735	$	5,250	$	2,185	$	1,368	$	3,553		2.35	%		n/a			2.35	%
2013		5,188		-		5,188		4,494		-		4,494		n/a			n/a			n/a
2014		5,279		74,406		79,685		4,545		45,280		49,825		5.47	%		5.47	%		n/a
2015		3,899		27,344		31,243		3,745		27,344		31,089		5.04	%		5.04	%		n/a
2016		2,413		276,634		279,047		2,250		147,367		149,617		5.91	%		5.91	%		n/a
Thereafter		9,203		92,767		101,970		6,398		82,949		89,347		4.39	%		5.60	%		2.14	%
Total	$	28,497	$	473,886	$	502,383	$	23,617	$	304,308	$	327,925



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

2012	$	3,244	$	175,440	$	178,684	$	438	$	34,986	$	35,424		3.74	%		n/a			3.74	%
2013		5,532		140,229		145,761		638		27,801		28,439		4.56	%		5.85	%		4.36	%
2014		4,346		54,179		58,525		512		10,597		11,109		5.72	%		6.71	%		3.15	%
2015		3,022		155,486		158,508		224		28,382		28,606		2.37	%		n/a			2.37	%
2016		1,173		33,733		34,906		116		4,148		4,264		2.97	%		n/a			2.97	%
Thereafter		2,754		83,092		85,846		445		14,488		14,933		4.25	%		6.24	%		2.74	%
Total	$	20,071	$	642,159	$	662,230	$	2,373	$	120,402	$	122,775

- 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

2012	$	2,515	$	2,735	$	5,250	$	2,185	$	1,368	$	3,553		2.35	%		n/a			2.35	%
2013		5,188		-		5,188		4,494		-		4,494		n/a			n/a			n/a
2014		5,239		86,502		91,741		4,505		57,376		61,881		5.06	%		5.47	%		2.50	%
2015		3,664		27,344		31,008		3,510		27,344		30,854		5.04	%		5.04	%		n/a
2016		2,118		280,440		282,558		1,955		151,173		153,128		5.88	%		5.88	%		n/a
Thereafter		8,408		78,230		86,638		5,603		68,412		74,015		4.70	%		5.71	%		1.94	%
Total	$	27,132	$	475,251	$	502,383	$	22,252	$	305,673	$	327,925





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
2012	$	3,244	$	175,440	$	178,684	$	437	$	34,986	$	35,423		3.74	%		n/a			3.74	%
2013		5,532		160,879		166,411		638		31,689		32,327		4.33	%		5.85	%		4.12	%
2014		4,346		66,679		71,025		512		12,588		13,100		5.13	%		6.71	%		2.90	%
2015		2,706		169,824		172,530		224		28,980		29,204		2.44	%		n/a			2.44	%
2016		730		-		730		116		-		116		n/a			n/a			n/a
Thereafter		1,023		71,827		72,850		155		12,450		12,605		4.54	%		6.24	%		2.85	%
Total	$	17,581	$	644,649	$	662,230	$	2,082	$	120,693	$	122,775

- 22 -

Overview of Acadia Strategic Opportunity Funds


Item	FUND I	FUND II	FUND III	FUND IV

Date formed	September 2001	June 2004	May 2007	May 2012

Capital commitment	$90 million	$300 million	Anticpated to be $475 million	$465.1 million committed to date
			(Original was $503 million)	Anticpate $500 million to $550 million in total
Funding	Fully funded	$282.2 million funded through June 30, 2012	$341.0 million funded through June 30, 2012	$0 funded through June 30, 2012

Partnership structure

Equity Contribution and	22.22% - Acadia	20% - Acadia	20% - Acadia	20% to 25% - Acadia
Cash flow distribution:	77.78% - Four institutional investors	80% - Six institutional investors	80% - 14 institutional investors	75% to 80% - Institutional investors

Promote:	20% to Acadia once all partners (including	20% to Acadia once all partners (including	20% to Acadia once all partners (including	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	Acadia) have received 6% preferred return and
	return of equity	return of equity	return of equity	return of equity

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

	All original capital and accumulated preference	All unfunded capital is anticipated to be used to	All unfunded capital is anticipated to be used to	Formation date May 16, 2012
	has been paid. Acadia is entitled to a Promote	complete existing projects	fund pending acqusitions and complete existing
	on all future distributions.		projects

Fees to Acadia	Priority distribution fee equal to 1.5% of implied	Asset management fee equal to 1.5% of total	Asset management fee equal to 1.5% of total	Priority distribution fee equal to 1.5% of total
	capital	committed capital	committed capital	committed capital

	Priority distribution fee equal to 4% of gross	Property management fee equal to 4% of gross	Property management fee equal to 4% of gross	Property management fee equal to 4% of gross
	property revenues	property revenues	property revenues	property revenues

	Market rate leasing fees	Market rate leasing fees	Market rate leasing fees	Market rate leasing fees

	Market rate construction/project management fees	Market rate construction/project management fees	Market rate construction/project management fees	Market rate construction/project management fees

			Development fee equal to 3% of total project cost	Development fee equal to 3% of total project cost

-23-

Opportunity Fund Retail Properties - Detail
																					Leased
			Ownership			Gross Leasable Area						In Place Occupancy									Occupancy			Annualized Base Rent
	Anchors		%			Anchors		Shops		Total		Anchors			Shops			Total			Total			Anchors		Shops		Total		Anchors		Shops		Per Sq. Ft.
Fund I Portfolio Detail:


VARIOUS

Total - Fund I	Kroger/Safeway Portfolio (3 Properties)			75	%		97,500		-		97,500		69.23	%		-			69.23	%		69.23	%	$	302,076	$	-	$	302,076	$	4.48	$	-	$	4.48

Fund II Portfolio Detail 2

NEW YORK

New York
Pelham Manor Shopping Plaza	BJ's Wholesale Club, PetSmart, Storage Post			99.1	%		169,512		58,981		228,493		100.00	%		64.96	%		90.96	%		94.41	%	$	4,287,282	$	1,316,040	$	5,603,322	$	25.29	$	34.35	$	26.96
Fordham Place	Walgreens, Best Buy, 24 Hour Fitness, Sears			99.1	%		74,899		44,547		119,446		100.00	%		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	%		70.73	%		82.92	%		100.00	%		432,480		340,191		772,671		39.75		31.55		35.67
Canarsie Plaza	BJ's Wholesale Club, Planet Fitness, PetSmart			79.3	%		177,135		96,407		273,542		100.00	%		81.72	%		93.56	%		97.77	%		5,100,000		2,578,974		7,678,974		28.79		32.73		30.01
216th Street	NYC Human Resources Administration			99.1	%		60,000		-		60,000		100.00	%		0.00	%		100.00	%		100.00	%		2,340,000		120,000		2,460,000		39.00		-		41.00
161st Street1	Various New York City & State agencies			99.1	%		107,026		125,376		232,402		100.00	%		71.49	%		84.62	%		100.00	%		2,836,188		2,371,322		5,207,510		26.50		26.46		26.48

Total - Fund II							599,452		340,556		940,008		100.00	%		76.95	%		91.65	%		97.99	%	$	17,869,178	$	9,373,059	$	27,242,237	$	29.81	$	35.77	$	31.62

Fund III Portfolio Detail 2

NEW YORK

Connecticut
125 Main Street	Gap, Brooks Brothers For Women			100.0	%		17,448		9,585		27,033		100.00	%		68.70	%		88.90	%		88.90	%	$	1,350,000	$	390,944	$	1,740,944	$	77.37	$	59.37	$	72.44

New York
Cortlandt Towne Center	Wal-Mart, Best Buy, A&P			100.0	%		472,901		168,310		641,211		95.63	%		83.59	%		92.47	%		92.47	%		6,185,123		3,377,949		9,563,072		13.68		24.01		16.13
654 Broadway		-		100.0	%		-		2,896		2,896		-			100.00	%		100.00	%		100.00	%		-		300,000		300,000		-		103.59		103.59
640 Broadway	Swatch			50.0	%		-		4,483		4,483		-			74.21	%		74.21	%		74.21	%		-		645,281		645,281		-		193.96		193.96
New Hyde Park Shopping Center		-		100.0	%		-		31,498		31,498		-			91.25	%		91.25	%		91.25	%		-		853,704		853,704		-		29.70		29.70

NEW ENGLAND

Massachusetts
White City Shopping Center4	Shaw's (Supervalu)			84.0	%		131,618		124,072		255,690		85.50	%		79.10	%		82.40	%		92.55	%		1,650,048		3,079,106		4,729,154		14.66		31.37		22.45

MID-ATLANTIC

Maryland
Parkway Crossing3	Home Depot, Shop Rite, Big Lots			90.0	%		192,836		67,405		260,241		100.00	%		78.64	%		94.47	%		94.47	%		704,710		966,887		1,671,597		3.65		18.24		6.80

SOUTHEAST

Florida
Lincoln Road5	Starbucks, Sushi Samba			95.0	%		-		61,443		61,443		-			31.89	%		31.89	%		38.65	%		-		2,265,164		2,265,164		-		115.60		115.60

MIDWEST
Illinois
Heritage Shops	LA Fitness, Loft			100.0	%		49,878		55,707		105,585		100.00	%		54.39	%		75.94	%		75.94	%		1,077,752		1,511,000		2,588,752		21.61		49.87		32.29
Lincoln Park Centre				100.0	%		-		62,745		62,745		-			59.76	%		59.76	%		59.76	%		-		1,607,359		1,607,359		-		42.87		42.87

Total - Fund III							864,681		588,144		1,452,825		95.40	%		71.543	%		85.74	%		87.82	%	$	10,967,633	$	14,997,394	$	25,965,027	$	13.30	$	35.64	$	20.84

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%

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.

3 Fund III has a 90.0% interest in this unconsolidated investment. A lease has been executed with Shop Rite replacing the former A&P with commencement anticipated in the second half of 2012.

4Fund III has an 84.0% interest in this unconsolidated investment.

5Fund III has an 95.0% interest in this unconsolidated investment.

-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		2		67,500		100.00	%	$	302,076		100.00	%	$	4.48
Total		2		67,500		100.00	%	$	302,076		100.00	%	$	4.48

Total Vacant				30,000
Total Square Feet				97,500

-25-

Opportunity Funds Lease Expirations
	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
2013		2		127,175		21.22	%		3,400,360		19.03	%		26.74
2019		1		39,705		6.62	%		1,747,020		9.78	%		44.00
2021		1		19,958		3.33	%		423,110		2.37	%		21.20
2023		1		35,194		5.87	%		1,126,208		6.30	%		32.00
2027		1		60,000		10.01	%		2,340,000		13.10	%		39.00
2030		1		177,135		29.55	%		5,100,000		28.54	%		28.79
2032		1		10,880		1.81	%		432,480		2.42	%		39.75
2033		1		129,405		21.59	%		3,300,000		18.47	%		25.50
Total		9		599,452		100.00	%	$	17,869,178		100.00	%	$	29.81

Total Vacant				-
Total Square Feet				599,452

Shop Tenants
Month to Month		1		9,967		3.80	%	$	99,670		1.06	%	$	10.00
2012		1		15,500		5.91	%		372,000		3.97	%		24.00
2014		1		5,081		1.94	%		193,078		2.06	%		38.00
2016		1		2,000		0.76	%		86,000		0.92	%		43.00
2018		1		3,600		1.37	%		156,600		1.67	%		43.50
2019		4		9,318		3.56	%		496,684		5.30	%		53.30
2020		3		16,309		6.22	%		547,183		5.84	%		33.55
2021		10		22,869		8.73	%		837,546		8.94	%		36.62
2022		3		17,574		6.71	%		724,794		7.73	%		41.24
2023		1		31,417		11.99	%		1,131,012		12.07	%		36.00
2027		1		6,208		2.37	%		217,901		2.32	%		35.10
2031		4		81,492		31.10	%		2,425,021		25.87	%		29.76
2032		1		30,712		11.72	%		885,570		9.45	%		28.83
2048		1		10,000		3.82	%		1,200,000		12.80	%		120.00
Total		33		262,047		100.00	%	$	9,373,059		100.00	%	$	35.77

Total Vacant				78,509
Total Square Feet				340,556

Total Anchor and Shop Tenants
Month to Month		1		9,967		1.16	%	$	99,670		0.38	%	$	10.00
2012		1		15,500		1.80	%		372,000		1.38	%		24.00
2013		2		127,175		14.76	%		3,400,360		12.48	%		26.74
2014		1		5,081		0.59	%		193,078		0.71	%		38.00
2016		1		2,000		0.23	%		86,000		0.32	%		43.00
2018		1		3,600		0.42	%		156,600		0.57	%		43.50
2019		5		49,023		5.69	%		2,243,704		8.24	%		45.77
2020		3		16,309		1.89	%		547,183		2.01	%		33.55
2021		11		42,827		4.97	%		1,260,656		4.63	%		29.44
2022		3		17,574		2.04	%		724,794		2.66	%		41.24
2023		2		66,611		7.73	%		2,257,220		8.29	%		33.89
2027		2		66,208		7.69	%		2,557,901		9.39	%		38.63
2030		1		177,135		20.56	%		5,100,000		18.72	%		28.79
2031		4		81,492		9.46	%		2,425,021		8.90	%		29.76
2032		2		41,592		4.83	%		1,318,050		4.84	%		31.69
2033		1		129,405		15.02	%		3,300,000		12.11	%		25.50
2048		1		10,000		1.16	%		1,200,000		4.40	%		120.00
Total		42		861,499		100.00	%	$	27,242,237		100.00	%	$	31.62

Total Vacant				78,509
Total Square Feet				940,008

-26-

Opportunity Funds Lease Expirations
	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
2013		2		48,855		5.92	%	$	877,689			8.00	%	$	17.97
2014		2		56,379		6.83	%		908,695			8.29	%		16.12
2015		2		29,489		3.57	%		489,840			4.47	%		16.61
2016		2		45,611		5.53	%		519,580			4.74	%		11.39
2017		2		52,131		6.32	%		957,350			8.73	%		18.36
2018		3		238,707		28.94	%		2,607,355			23.77	%		10.92
2021		1		53,049		6.43	%		1,732,967			15.80	%		32.67
2022		1		65,028		7.88	%		1,040,448			9.49	%		16.00
2023		1		19,536		2.37	%		263,736			2.40	%		13.50
2025		1		49,878		6.05	%		1,077,751			9.83	%		21.61
2032		2		166,275		20.16	%		492,222			4.49	%		2.96
Total		19		824,938		100.00	%	$	10,967,633			100.00	%	$	13.30

Total Vacant				39,743
Total Square Feet				864,681

Shop Tenants
Month to Month		4		6,400		1.52	%	$	142,403			0.95	%	$	22.25
2012		8		21,220		5.04	%		476,382			3.18	%		22.45
2013		16		60,349		14.34	%		1,893,071			12.62	%		31.37
2014		21		74,096		17.61	%		2,208,941			14.73	%		29.81
2015		10		21,095		5.01	%		878,324			5.86	%		41.64
2016		20		66,538		15.81	%		2,229,688			14.87	%		33.51
2017		9		40,701		9.67	%		1,612,598			10.75	%		39.62
2018		12		39,816		9.46	%		1,262,249			8.42	%		31.70
2019		3		13,450		3.20	%		1,047,505			6.98	%		77.88
2020		3		6,175		1.47	%		139,509			0.93	%		22.59
2021		6		26,563		6.31	%		972,602			6.49	%		36.61
2022		3		6,932		1.65	%		245,987			1.64	%		35.49
2023		1		17,611		4.19	%		776,250			5.18	%		44.08
2026		2		9,110		2.17	%		342,983			2.29	%		37.65
2027		1		4,227		1.00	%		289,550			1.93	%		68.50
2028		2		6,496		1.54	%		479,352			3.20	%		73.79
Total		121		420,779		100.00	%	$	14,997,394			100.00	%	$	35.64

Total Vacant				167,365		1			(0	)
Total Square Feet				588,144

Total Anchor and Shop Tenants
Month to Month		4		6,400		0.51	%	$	142,403			0.55	%	$	22.25
2012		8		21,220		1.70	%		476,382			1.83	%		22.45
2013		18		109,204		8.77	%		2,770,760			10.67	%		25.37
2014		23		130,475		10.47	%		3,117,636			12.01	%		23.89
2015		12		50,584		4.06	%		1,368,164			5.27	%		27.05
2016		22		112,149		9.00	%		2,749,268			10.59	%		24.51
2017		11		92,832		7.45	%		2,569,948			9.90	%		27.68
2018		15		278,523		22.36	%		3,869,604			14.90	%		13.89
2019		3		13,450		1.08	%		1,047,505			4.03	%		77.88
2020		3		6,175		0.50	%		139,509			0.54	%		22.59
2021		7		79,612		6.39	%		2,705,569			10.42	%		33.98
2022		4		71,960		5.78	%		1,286,435			4.95	%		17.88
2023		2		37,147		2.98	%		1,039,986			4.01	%		28.00
2025		1		49,878		4.00	%		1,077,751			4.15	%		21.61
2026		2		9,110		0.73	%		342,983			1.32	%		37.65
2027		1		4,227		0.34	%		289,550			1.12	%		68.50
2028		2		6,496		0.52	%		479,352			1.85	%		73.79
2032		2		166,275		13.35	%		492,222			1.90	%		2.96
Total		140		1,245,717		100.00	%	$	25,965,027			100.00	%	$	20.84

Total Vacant				207,108					0
Total Square Feet				1,452,825

-27-

Urban/Street Retail Developments - Operating Properties
($ in millions)								Acquisition & Development Costs
										Estimated		Estimated		Outstanding
Property	Location	Sq. Ft.		Leased (%)4			Anchors/Tenants	Incurred		Future		Total		Debt
FUND II
Fordham Place	Bronx		262,000	100% Retail			Walgreens, Best Buy, 24 Hour Fitness, Sears	$	133.1	$	2.6	$	135.7	$	83.6
				100% Office
Pelham Manor Shopping Plaza1	Westchester		320,000		94	%	BJ's Wholesale Club, PetSmart, Storage Post		63.6		0.5		64.1		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		16.0		-		16.0		9.3
161st Street2	Bronx		232,000		100	%	Various New York City and State Agencies		67.4		3.5		70.9		28.9
Atlantic Avenue	Brooklyn		110,000		n/a		Storage Post		22.6		-		22.6		11.5
Canarsie Plaza3	Brooklyn		274,000		98	%	BJ's Wholesale Club, Planet Fitness, PetSmart		92.0		-		92.0		69.4
SUBTOTAL - FUND II, OPERATING			1,383,000	97% Retail 100% Office				$	422.4	$	6.6	$	429.0	$	262.2

FUND III
125 Main Street	Westport, CT		27,000		89	%	Gap, Brooks Brothers Women	$	24.9	$	-	$	24.9	$	12.5

Notes:
1 Acquired a leasehold interest in this property.
2 Redevelopment currently in progress.
3 Incurred cost is net of lease termination income of $23.9 million from former anchor tenant.
4 Excludes the self-storage facilities at Pelham Manor Shopping Plaza, Liberty Avenue, and Atlantic Avenue.
Reconciliation of total incurred development costs to the Balance Sheet:
By Balance Sheet Line Item:
Operating Real Estate				$	514.5
Net Real Estate Under Development					218.0
Gain From Bargain Purchase (CityPoint)					(33.8	)
Lease Termination Income (Canarsie Plaza)					(23.9	)
Total Incurred Development Costs				$	674.8
By Project Status:
Operating Properties				$	447.3
Under Construction					117.5
In Design					110.0
Total Incurred Development Costs				$	674.8

-28-

Urban/Street Retail Developments - Construction & Design

($ in millions)

Acquisition & Development Costs

Estimated

Outstanding

Property

Location

Completion

Sq. Ft.

Leased (%)

Anchors/Tenants

Incurred

Future

Total

Debt

FUND II

Under Construction

City Point1

Brooklyn

TBD

685,000-710,000

Century 21

117.5

132.5-$ 222.5

250.0-$ 340.0

40.7

In Design

Sherman Plaza

Manhattan

TBD

34.5

TBD

FUND III

In Design

Sheepshead Bay

Brooklyn

TBD

22.8

TBD

Lincoln Road Portfolio3

Miami Beach, FL

TBD

61,443

Starbucks, Sushi Samba

52.7

TBD

20.1

SUBTOTAL - Fund III, In Design

75.5

TBD

20.1

Notes:

1 Acquired a leasehold interest in this property. The first 50,000 square feet of the project (Phase 1) has been completed.

Construction of the next approximately 625,000 square feet (Phase 2) is anticipated to start during 2012.

2 Leased percentage calculated on approximately 475,000 rentable square feet.

3 Data reflects the status of the portfolio as of 6/30/12; certain properties are in the design phase pending redevelopment.

-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, 2012

Distributions

Years

Invested

Current

From

Equity

Investor

Investment

acquired

capital

year-to-date

inception

Multiple

Mervyns I and Mervyns II

Mervyns

2004 through

32,575

49,524

1.5

2007

Mervyns II

Albertson’s

2006 through

23,133

3,099

86,372

3.7

2007

Fund II and Mervyns II

Other investments 1

2006 through

6,476

783

5,921

0.9

2008

Total

62,184

3,882

141,817

2.3

Notes:

1Represents investments in Shopko, Marsh and Rex Stores.

-30-

Storage Portfolio Property Detail

Operating Properties

Location

Net Rentable

Square Feet

Quarter ended:

Portfolio

Occupancy

Fund III

June 30, 2012

91.6

Suffern

Suffern, New York

78,800

March 31, 2012

88.3

Yonkers

Westchester, New York

100,697

December 31, 2011

87.0

Jersey City

Jersey City, New Jersey

76,770

September 30, 2011

87.2

Webster Ave

Bronx, New York

36,271

June 30, 2011

85.6

Linden

Linden, New Jersey

84,035

Bruckner Blvd

Bronx, New York

89,422

New Rochelle

Westchester, New York

42,149

Lawrence

Lawrence, New York

97,743

Long Island City

Queens, New York

134,168

Fordham Road

Bronx, New York

85,455

Ridgewood

Queens, New York

87,645

Fund II

Liberty Avenue

Queens, New York

72,900

Pelham Plaza

Pelham Manor, New York

61,606

Atlantic Avenue

Brooklyn, New York

75,486

Total

1,123,147

-31-

Core Portfolio Retail Properties - Detail
																					Leased
			Acadia's			Gross Leaseable Area						In Place Occupancy									Occupancy			Annualized Base Rent
Property	Anchors		interest			Anchors		Shops		Total		Anchors			Shops			Total			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	%		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	%		80.31	%		88.57	%		96.87	%		1,486,006		1,750,847		3,236,853		23.73		25.16		24.48
A & P Shopping Plaza	A&P			60.0	%		49,463		13,278		62,741		100.00	%		100.00	%		100.00	%		100.00	%		950,000		391,125		1,341,125		19.21		29.46		21.38
Total - New Jersey							112,073		99,930		212,003		100.00	%		82.93	%		91.95	%		97.80	%		2,436,006		2,141,972		4,577,978		21.74		25.85		23.48

New York
Village Commons Shopping Center		-		100.0	%		-		87,330		87,330		-			91.32	%		91.32	%		95.27	%		-		2,453,148		2,453,148		-		30.76		30.76
Branch Plaza	CVS			100.0	%		74,050		52,223		126,273		14.92	%		92.69	%		47.08	%		85.31	%		251,388		1,387,582		1,638,970		22.75		28.67		27.57
Amboy Center	Stop & Shop (Ahold)			100.0	%		37,266		22,824		60,090		100.00	%		100.00	%		100.00	%		100.00	%		745,320		881,671		1,626,991		20.00		38.63		27.08
Bartow Avenue		-		100.0	%		-		14,676		14,676		-			82.24	%		82.24	%		92.75	%		-		392,430		392,430		-		32.50		32.50
Pacesetter Park Shopping Center	Stop & Shop (Ahold)			100.0	%		52,052		45,530		97,582		100.00	%		89.51	%		95.11	%		95.11	%		416,936		738,643		1,155,579		8.01		18.12		12.45
LA Fitness	LA Fitness			100.0	%		55,000		-		55,000		100.00	%		-			100.00	%		100.00	%		1,265,000		-		1,265,000		23.00		-		23.00
West 54th Street		-		100.0	%		-		9,756		9,756		-			90.86	%		90.86	%		90.86	%		-		2,291,924		2,291,924		-		258.56		258.56
East 17th Street	Barnes & Noble			100.0	%		19,622		-		19,622		100.00	%		-			100.00	%		100.00	%		625,000		-		625,000		31.85		-		31.85
Crossroads Shopping Center3	Kmart, Home Goods			49.0	%		201,296		108,191		309,487		74.84	%		82.81	%		77.63	%		77.63	%		1,296,093		3,891,582		5,187,675		8.60		43.44		21.59
Third Avenue	Planet Fitness			100.0	%		21,650		17,717		39,367		100.00	%		58.23	%		81.20	%		81.20	%		468,631		198,000		666,631		21.65		19.19		20.85
Mercer Street		-		100.0	%		-		6,225		6,225		-			100.00	%		100.00	%		100.00	%		-		383,160		383,160		-		61.55		61.55
28 Jericho Turnpike	Kohl's			100.0	%		96,363		-		96,363		100.00	%		-			100.00	%		100.00	%		1,650,000		-		1,650,000		17.12		-		17.12
4401 White Plains Road	Walgreens			100.0	%		-		12,964		12,964		-			100.00	%		100.00	%		100.00	%		-		625,000		625,000		-		48.21		48.21
Total - New York							557,299		377,436		934,735		79.61	%		87.90	%		82.96	%		88.65	%		6,718,368		13,243,140		19,961,508		15.14		39.92		25.74

Total New York							669,372		494,200		1,163,572		83.02	%		87.31	%		84.84	%		90.48	%	$	9,154,374	$	16,939,775	$	26,094,149	$	16.47	$	39.26	$	26.43


NEW ENGLAND

Connecticut
Town Line Plaza2	Wal-Mart, Stop & Shop (Ahold)			100.0	%		163,159		43,187		206,346		100.00	%		95.30	%		99.02	%		99.02	%	$	969,144	$	717,329	$	1,686,473	$	14.72	$	17.43	$	15.76

Massachusetts
Methuen Shopping Center	Wal-Mart, Market Basket			100.0	%		120,004		10,017		130,021		100.00	%		100.00	%		100.00	%		100.00	%		799,145		222,225		1,021,370		6.66		22.18		7.86
Crescent Plaza	Home Depot, Shaw's (Supervalu)			100.0	%		156,985		61,152		218,137		100.00	%		78.95	%		94.10	%		94.10	%		1,178,872		476,379		1,655,251		7.51		9.87		8.06
Cambridge	Whole Foods, Rite Aid			100.0	%		54,226		-		54,226		100.00	%		-			100.00	%		100.00	%		1,130,470		-		1,130,470		20.85		-		20.85
Total - Massachusetts							331,215		71,169		402,384		100.00	%		81.91	%		96.80	%		96.80	%		3,108,487		698,604		3,807,091		9.39		11.98		9.77

New York
New Loudon Center	Marshalls, Price Chopper,			100.0	%		251,058		4,615		255,673		100.00	%		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		95.53	%		76.14	%		89.54	%		89.54	%		1,263,777		853,662		2,117,439		6.73		12.74		8.31

Vermont
The Gateway Shopping Center	Shaw's (Supervalu)			100.0	%		73,184		28,471		101,655		100.00	%		88.60	%		96.81	%		98.24	%		1,353,904		528,953		1,882,857		18.50		20.97		19.13

Total New England							1,015,326		235,449		1,250,775		99.13	%		83.37	%		96.17	%		96.28	%	$	8,524,018	$	2,928,966	$	11,452,984	$	9.37	$	14.92	$	10.36

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.
3The Company has a 49% interest in this unconsolidated investment.

-32-

Core Portfolio Retail Properties - Detail (continued)
																					Leased
			Acadia's			Gross Leaseable Area						Occupancy									Occupancy			Annualized Base Rent
Property	Anchors		interest			Anchors		Shops		Total		Anchors			Shops			Total			Total			Anchors		Shops		Total		Anchors		Shops		Per Sq. Ft.

MIDWEST

Illinois
Hobson West Plaza	Garden Fresh Markets			100.0	%		51,692		47,445		99,137		100.00	%		91.99	%		96.17	%		96.17	%	$	225,436	$	892,557	$	1,117,993	$	4.36	$	20.45	$	11.73
Clark Diversey	The Vitamin Shoppe			100.0	%		-		19,265		19,265		0.00	%		95.72	%		95.72	%		100.00	%		-		817,315		817,315		-		44.32		44.32
West Diversey	Trader Joe's, Urban Outfitters			100.0	%		16,500		29,759		46,259		100.00	%		100.00	%		100.00	%		100.00	%		900,000		984,925		1,884,925		54.55		33.10		40.75
Chicago Street Retail Portfolio1		-		100.0	%		-		75,693		75,693		-			100.00	%		100.00	%		100.00	%		-		3,975,736		3,975,736		-		52.52		52.52
Total - Illinois							68,192		172,162		240,354		100.00	%		97.31	%		98.08	%		98.42	%		1,125,436		6,670,533		7,795,969		16.50		39.82		33.07

Indiana
Merrillville Plaza	JC Penney, Office Max,			100.0	%		123,369		112,455		235,824		100.00	%		82.17	%		91.50	%		91.50	%		1,251,160		1,631,515		2,882,675		10.14		17.66		13.36
	TJ Maxx
Michigan
Bloomfield Towne Square2	Best Buy, Home Goods,			100.0	%		153,839		82,583		236,422		100.00	%		97.39	%		99.09	%		99.09	%		1,683,029		1,764,739		3,447,768		10.94		21.94		14.72
	TJ Maxx, Dick's Sporting Goods
Ohio
Mad River Station3	Babies 'R' Us, Office Depot,			100.0	%		58,185		67,944		126,129		100.00	%		65.65	%		81.50	%		81.50	%		552,195		718,132		1,270,327		9.49		16.10		12.36

Total Midwest							403,585		435,144		838,729		100.00	%		88.47	%		94.02	%		94.12	%	$	4,611,820	$	10,784,919	$	15,396,739	$	11.43	$	28.01	$	19.53

MID-ATLANTIC

New Jersey
Marketplace of Absecon	Rite Aid, Dollar Tree			100.0	%		47,915		56,847		104,762		56.74	%		92.08	%		75.92	%		75.92	%	$	539,040	$	775,432	$	1,314,472	$	19.83	$	14.81	$	16.53

Delaware
Brandywine Town Center7	Lowes, Bed Bath & Beyond,			22.2	%		827,471		48,222		875,693		96.98	%		82.91	%		96.20	%		96.20	%		12,234,940		601,304		12,836,244		15.25		15.04		15.24
	Target, Dicks Sporting Goods
Market Square Shopping Center7	TJ Maxx, Trader Joe's			22.2	%		42,850		59,197		102,047		100.00	%		96.94	%		98.22	%		98.22	%		703,062		1,768,862		2,471,924		16.41		30.82		24.66
Naamans Road7		-		22.2	%		-		19,984		19,984		0.00	%		100.00	%		100.00	%		100.00	%		-		801,691		801,691		-		40.12		40.12
Total - Delaware							870,321		127,403		997,724		97.13	%		92.11	%		96.49	%		96.49	%		12,938,002		3,171,857		16,109,859		15.31		27.03		16.73

Pennsylvania
Mark Plaza	Kmart			100.0	%		104,956		1,900		106,856		100.00	%		100.00	%		100.00	%		100.00	%		204,664		36,000		240,664		1.95		18.95		2.25
Plaza 422	Home Depot, Dunham Sports			100.0	%		139,968		16,311		156,279		100.00	%		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	%		100.00	%		806,351		373,261		1,179,612		5.50		12.86		6.72
Chestnut Hill4				100.0	%		-		37,916		37,916		0.00	%		33.63	%		33.63	%		75.52	%		-		357,143		357,143		-		28.01		28.01
Abington Towne Center5	Target, TJ Maxx			100.0	%		184,616		31,753		216,369		100.00	%		65.27	%		94.90	%		94.90	%		283,500		666,505		950,005		10.50		32.16		19.91
Total - Pennsylvania							576,038		116,901		692,939		100.00	%		69.04	%		94.78	%		97.07	%		1,938,018		1,585,258		3,523,276		4.63		19.64		7.06

District of Columbia
Rhode Island Place Shopping Center	TJ Maxx			100.0	%		24,996		32,533		57,529		100.00	%		100.00	%		100.00	%		100.00	%		312,450		1,310,000		1,622,450		12.50		40.27		28.20
Georgetown Portfolio6		-		50.0	%		-		27,666		27,666		0.00	%		100.00	%		100.00	%		100.00	%		-		1,695,917		1,695,917		-		61.30		61.30
Total - District of Columbia							24,996		60,199		85,195		100.00	%		100.00	%		100.00	%		100.00	%		312,450		3,005,917		3,318,367		12.50		49.93		38.95

Total Mid-Atlantic							1,519,270		361,350		1,880,620		96.99	%		85.96	%		94.87	%		95.71	%	$	15,727,510	$	8,538,464	$	24,265,974	$	11.95	$	27.49	$	14.92

TOTAL CORE PROPERTIES							3,607,553		1,526,143		5,133,696		95.34	%		86.71	%		92.77	%		94.41	%	$	38,017,722	$	39,192,124	$	77,209,846	$	11.94	$	29.62	$	17.13

TOTAL CORE PROPERTIES - weighted based on ownership interest8							2,808,171		1,348,519		4,156,690		95.62	%		86.24	%		92.58	%		94.60	%	$	26,913,537	$	33,347,273	$	60,260,809	$	10.02	$	28.67	$	15.66

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.
1Includes 12 properties (56 E. Walton, 841 W. Armitage, 2731 N. Clark, 2140 N. Clybourn, 853 W. Armitage, 2299 N. Clybourn, 1521 Milwaukee, 843-45 W. Armitage, 1521 W. Belmont, 2206-08 N. Halsted, 2633 N. Halsted and 930 N Rush St.)
2Re-anchoring activities at this property commenced during the second quarter 2011 and was completed during the second quarter 2012.
3The GLA for this property excludes 29,857 square feet of office space.
4This consists of two separate buildings.
5Anchor 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.
6Includes six properties (1533 Wisconsin Ave., 3025 M St., 3034 M St., 3146 M St., 3259-61 M St. and 2809 M St.) The Company has a 50% interest in this unconsolidated portfolio.
7The Company has a 22.2% interest in this unconsolidated investment.
8Weighted 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		88.0	%		4.7	%		2		163,159		60,021		223,180		100.00	%		96.62	%		99.09	%	$	969,144	$	2,271,992	$	3,241,136

Delaware		22.2	%		5.9	%		3		870,321		127,403		997,724		97.13	%		92.11	%		96.49	%		12,938,002		3,171,857		16,109,859

District of Columbia		50.0	%		4.1	%		7		24,996		60,199		85,195		100.00	%		100.00	%		100.00	%		312,450		3,005,917		3,318,367

Illinois		100.0	%		12.9	%		15		68,192		172,162		240,354		100.00	%		97.31	%		98.08	%		1,125,436		6,670,533		7,795,969

Indiana		100.0	%		4.8	%		1		123,369		112,455		235,824		100.00	%		82.17	%		91.50	%		1,251,160		1,631,515		2,882,675

Massachusetts		100.0	%		6.3	%		3		331,215		71,169		402,384		100.00	%		81.91	%		96.80	%		3,108,487		698,604		3,807,091

Michigan		100.0	%		5.7	%		1		153,839		82,583		236,422		100.00	%		97.39	%		99.09	%		1,683,029		1,764,739		3,447,768

New Jersey		88.3	%		8.9	%		3		159,988		156,777		316,765		87.04	%		86.25	%		86.65	%		2,975,046		2,917,404		5,892,450

New York		86.7	%		32.0	%		14		808,357		382,051		1,190,408		85.94	%		88.05	%		86.62	%		8,547,074		13,373,558		21,920,632

Ohio		100.0	%		2.1	%		1		58,185		67,944		126,129		100.00	%		65.65	%		81.50	%		552,195		718,132		1,270,327

Pennsylvania		100.0	%		5.8	%		5		576,038		116,901		692,939		100.00	%		69.04	%		94.78	%		1,938,018		1,585,258		3,523,276

Rhode Island		100.0	%		3.5	%		1		196,710		88,007		284,717		95.53	%		76.14	%		89.54	%		1,263,777		853,662		2,117,439

Vermont		100.0	%		3.1	%		1		73,184		28,471		101,655		100.00	%		88.60	%		96.81	%		1,353,904		528,953		1,882,857

Total - Core Portfolio					100.0	%		57		3,607,553		1,526,143		5,133,696		95.34	%		86.71	%		92.77	%	$	38,017,722	$	39,192,124	$	77,209,846


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.

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

		Gross												Pro-Rata
	Number of stores	Wholly Owned				Joint Ventures1				Combined				Combined				Percentage of Total
	in Core																	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		4.2	%		4.0	%

Ahold (Stop and Shop)	3		155,177		2,131,400		-		-		155,177		2,131,400		155,177		2,131,400		3.7	%		3.5	%

A&P	2		97,236		2,001,006		-		-		97,236		2,001,006		77,451		1,621,006		1.9	%		2.7	%

TJX Companies	7		165,058		1,278,154		56,108		951,655		221,166		2,229,809		184,202		1,616,339		4.4	%		2.7	%
-- T.J. Maxx	4		88,200		773,100		31,175		428,062		119,375		1,201,162		95,127		854,724		2.3	%		1.4	%
-- Marshalls	1		37,212		158,151		-		-		37,212		158,151		37,212		158,151		0.9	%		0.3	%
-- Homegoods	2		39,646		346,903		24,933		523,593		64,579		870,496		51,863		603,464		1.2	%		1.0	%

Sears	4		285,314		1,150,615		100,725		566,250		386,039		1,716,865		334,669		1,428,078		8.1	%		2.4	%
-- Kmart	3		224,614		892,615		100,725		566,250		325,339		1,458,865		273,969		1,170,078		6.6	%		1.9	%
-- Sears	1		60,700		258,000		-		-		60,700		258,000		60,700		258,000		1.5	%		0.4	%

Walgreens	3		37,499		1,366,748		-		-		37,499		1,366,748		37,499		1,366,748		0.9	%		2.3	%

Home Depot	2		211,003		1,099,996		-		-		211,003		1,099,996		211,003		1,099,996		5.1	%		1.8	%

Trader Joe's	2		16,500		900,000		11,675		275,000		28,175		1,175,000		19,094		961,105		0.5	%		1.6	%

Dicks Sporting Goods	2		48,805		695,471		50,000		700,000		98,805		1,395,471		59,805		849,471		1.4	%		1.4	%

Sleepy's	4		32,619		789,858		-		-		32,619		789,858		32,619		789,858		0.8	%		1.3	%

Rite Aid	2		26,633		764,030		-		-		26,633		764,030		26,633		764,030		0.6	%		1.3	%
JP Morgan Chase Bank	5		21,104		552,043		3,745		325,000		24,849		877,043		22,039		658,145		0.5	%		1.1	%
Dollar Tree	7		63,816		653,499		-		-		63,816		653,499		63,816		653,499		1.5	%		1.1	%
Pier 1 Imports	3		19,255		462,466		8,818		348,576		28,073		811,042		23,576		633,268		0.6	%		1.1	%
Payless Shoesource	6		18,236		465,232		3,090		114,330		21,326		579,562		19,750		521,254		0.5	%		0.9	%
The Avenue	4		17,236		317,909		8,250		327,360		25,486		645,269		21,279		478,315		0.5	%		0.8	%
Coach	2		4,541		388,573		6,810		346,000		11,351		734,573		6,811		464,430		0.2	%		0.8	%
Drexel Heritage	2		13,315		352,848		21,827		471,245		35,142		824,093		18,161		457,559		0.4	%		0.8	%
Citibank	3		5,486		296,244		8,470		444,872		13,956		741,116		8,283		450,222		0.2	%		0.7	%
CVS	2		25,500		356,583		-		-		25,500		356,583		34,300		356,583		0.8	%		0.6	%

TOTAL	68		1,440,134	$	18,443,655		279,518	$	4,870,288		1,719,652	$	23,313,943		1,531,967	$	19,722,285		36.9	%		32.7	%


Notes:
1Includes the Company's pro-rata share of unconsolidated 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
2012	2		101,917		3.20	%	$	742,396		1.95	%	$	7.28
2013	10		362,666		11.39	%		4,444,321		11.69	%		12.25
2014	7		258,558		8.12	%		2,183,597		5.74	%		8.45
2015	6		274,639		8.62	%		3,835,262		10.09	%		13.96
2016	7		262,966		8.26	%		2,500,644		6.58	%		9.51
2017	6		285,110		8.95	%		3,539,819		9.31	%		12.42
2018	4		330,649		10.38	%		3,764,816		9.90	%		11.39
2019	6		136,521		4.29	%		1,137,580		2.99	%		8.33
2020	6		329,713		10.35	%		3,971,096		10.45	%		12.04
2021	8		310,001		9.73	%		3,602,917		9.48	%		11.62
2022	2		69,837		2.19	%		1,700,000		4.47	%		24.34
2023	1		48,805		1.53	%		695,471		1.83	%		14.25
2024	3		188,506		5.92	%		3,273,047		8.61	%		17.36
2027	1		21,650		0.68	%		468,631		1.23	%		21.65
2028	5		202,935		6.37	%		2,158,125		5.68	%		10.63
Total	74		3,184,473		100.00	%	$	38,017,722		100.00	%	$	11.94


Anchor GLA Owned by Tenants			254,916
Total Vacant			168,164
Total Square Feet			3,607,553



Shop Tenants
Month to month	3		8,566		0.65	%	$	209,385		0.53	%	$	24.44
2012	28		82,992		6.27	%		2,096,448		5.35	%		25.26
2013	55		164,150		12.40	%		4,857,216		12.39	%		29.59
2014	59		231,348		17.48	%		6,880,653		17.56	%		29.74
2015	33		155,738		11.77	%		2,944,940		7.51	%		18.91
2016	50		237,247		17.93	%		5,631,900		14.37	%		23.74
2017	25		119,756		9.05	%		4,581,073		11.69	%		38.25
2018	21		68,892		5.21	%		3,042,539		7.76	%		44.16
2019	17		44,335		3.35	%		2,264,283		5.78	%		51.07
2020	12		27,270		2.06	%		785,592		2.00	%		28.81
2021	17		81,922		6.19	%		2,163,968		5.52	%		26.41
2022	13		46,565		3.52	%		1,792,176		4.57	%		38.49
2023	4		28,724		2.17	%		604,404		1.54	%		21.04
2025	1		3,120		0.24	%		29,047		0.07	%		9.31
2027	1		5,975		0.45	%		358,500		0.91	%		60.00
2030	1		3,745		0.28	%		325,000		0.83	%		86.78
2060	1		12,964		0.98	%		625,000		1.59	%		48.21
Total	341		1,323,309		100.00	%	$	39,192,124		100.00	%	$	29.62


Total Vacant			202,834
Total Square Feet			1,526,143

-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
Month to month	3		8,566		0.19	%	$	209,385		0.27	%	$	24.44
2012	30		184,909		4.10	%		2,838,844		3.68	%		15.35
2013	65		526,816		11.69	%		9,301,537		12.05	%		17.66
2014	66		489,906		10.87	%		9,064,250		11.74	%		18.50
2015	39		430,377		9.55	%		6,780,202		8.78	%		15.75
2016	57		500,213		11.10	%		8,132,544		10.53	%		16.26
2017	31		404,866		8.98	%		8,120,892		10.52	%		20.06
2018	25		399,541		8.86	%		6,807,355		8.82	%		17.04
2019	23		180,856		4.01	%		3,401,863		4.41	%		18.81
2020	18		356,983		7.92	%		4,756,688		6.16	%		13.32
2021	25		391,923		8.69	%		5,766,885		7.47	%		14.71
2022	15		116,402		2.58	%		3,492,176		4.52	%		30.00
2023	4		77,529		1.72	%		1,299,875		1.68	%		16.77
2024	3		188,506		4.18	%		3,273,047		4.24	%		17.36
2025	1		3,120		0.07	%		29,047		0.04	%		9.31
2027	2		27,625		0.61	%		827,131		1.07	%		29.94
2028	5		202,935		4.50	%		2,158,125		2.80	%		10.63
2030	1		3,745		0.08	%		325,000		0.42	%		86.78
2060	1		12,964		0.29	%		625,000		0.81	%		48.21
Total	414		4,507,782		100.00	%	$	77,209,846		100.00	%	$	17.13


Anchor GLA Owned by Tenants			254,916
Total Vacant			370,998
Total Square Feet			5,133,696

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


	Period ended						3 months ended						3 months ended
	June 30, 2012						June 30, 2012						March 31, 2012
	Cash2			GAAP3			Cash2			GAAP3			Cash2			GAAP3
New leases
Number of new leases executed		7			7			5			5			2			2
GLA		21,393			21,393			16,669			16,669			4,724			4,724
New base rent	$	23.34		$	24.66		$	22.33		$	23.23		$	26.91		$	29.70
Previous base rent (and percentage rent)	$	25.90		$	24.53		$	27.83		$	26.08		$	19.07		$	19.07
Percentage growth in base rent		-9.9	%		0.5	%		-19.8	%		-10.9	%		41.1	%		55.7	%
Average cost per square foot	$	41.96		$	41.96		$	38.14		$	38.14		$	55.45		$	55.45
Weighted Average Lease Term (years)		9.2			9.2			9.5			9.5			8.5			8.5

Renewal leases
Number of renewal leases executed		20			20			7			7			13			13
GLA		159,451			159,451			60,957			60,957			98,494			98,494
New base rent	$	13.70		$	14.27		$	13.90		$	14.00		$	13.58		$	14.43
Expiring base rent (and percentage rent)	$	13.66		$	13.07		$	14.07		$	13.64		$	13.40		$	12.71
Percentage growth in base rent		0.3	%		9.2	%		-1.2	%		2.6	%		1.3	%		13.5	%
Average cost per square foot	$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	0.00
Weighted Average Lease Term (years)		3.4			3.4			2.3			2.3			4.1			4.1

Total new and renewal Leases
Number of new and renewal leases executed		27			27			12			12			15			15
GLA commencing		180,844			180,844			77,626			77,626			103,218			103,218
New base rent	$	14.84		$	15.50		$	15.71		$	15.98		$	14.19		$	15.13
Expiring base rent (and percentage rent)	$	15.10		$	14.42		$	17.02		$	16.31		$	13.66		$	13.00
Percentage growth in base rent		-1.7	%		7.4	%		-7.7	%		-2.0	%		3.9	%		16.4	%
Average cost per square foot	$	4.96		$	4.96		$	8.19		$	8.19		$	2.54		$	2.54
Weighted Average Lease Term (years)		4.1			4.1			3.8			3.8			4.3			4.3



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.

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Core Portfolio Capital Expenditures
Current Quarter


	Year-to-Date		Current Quarter		Prior Quarter
	Period ended		3 months ended		3 months ended		Prior Year ended
	June 30, 2012		June 30, 2012		March 31, 2012		December 31, 2011


Leasing Commissions	$	622	$	316	$	306	$	1,265
Tenant Improvements		2,995		1,412		1,583		5,823
Capital Expenditures		387		323		64		471
Total capital expenditures		4,004		2,051		1,953		7,559

Re-anchoring costs1		8,449		4,811		3,638		1,578
Total	$	12,453	$	6,862	$	5,591	$	9,137

Notes:
1 Represents costs associated with the Bloomfield Town Square and The Branch Plaza re-anchorings as discussed by the Company.

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Property Demographics - Core
							3-Mile Radius2
			Base		Total		Total		#		Median HH		Avg. HH
Property	City	State	Rent		GLA		Pop.		HH		Income		Income
Core
239 Greenwich Avenue	Greenwich	CT		1,554,663		16,834		66,764		24,760		126,648		180,475
Elmwood Park Shopping Center	Elmwood Park	NJ		3,236,853		149,262		254,598		84,884		59,534		70,827
A & P Shopping Plaza	Boonton	NJ		1,341,125		62,741		46,839		17,923		103,943		129,441
Village Commons Shopping Center	Smithtown	NY		2,453,148		87,330		66,766		23,288		111,019		137,242
The Branch Plaza	Smithtown	NY		1,638,970		126,273		66,916		23,389		110,173		136,382
Amboy Road	Staten Island	NY		1,626,991		60,090		147,590		54,454		87,821		103,110
Bartow Avenue	The Bronx	NY		392,430		14,676		571,167		212,683		47,950		59,131
Pacesetter Park Shopping Center	Pomona	NY		1,155,579		97,582		35,902		11,177		106,212		124,240
LA Fitness	Staten Island	NY		1,265,000		55,000		121,318		43,079		78,203		90,627
West 54th Street	Manhattan	NY		2,291,924		9,756		1,223,652		627,833		89,958		147,056
East 17th Street	Manhattan	NY		625,000		19,622		1,059,535		542,170		91,411		144,163
Crossroads Shopping Center	White Plains	NY		5,187,675		309,487		108,529		42,787		93,274		125,433
Third Avenue	Yonkers	NY		666,631		39,367		1,218,498		437,804		35,045		51,736
Mercer Street	New York	NY		383,160		6,225		923,759		452,623		85,085		129,584
4401 White Plains Road	White Plains	NY		625,000		12,964		565,820		212,940		52,461		66,174
Town Line Plaza	Rocky Hill	CT		1,686,473		206,346		46,398		19,516		78,060		91,541
Methuen Shopping Center	Methuen	MA		1,021,370		130,021		93,621		33,353		51,101		60,867
Crescent Plaza	Brockton	MA		1,655,251		218,137		98,732		35,274		57,418		66,869
Cambridge	Cambridge	MA		1,130,470		54,226		489,136		215,122		68,158		97,306
New Loudon Center	Latham	NY		1,959,124		255,673		45,708		18,694		65,042		78,848
Walnut Hill Plaza	Woonsocket	RI		2,117,439		284,717		63,856		25,805		56,673		65,553
The Gateway Shopping Center	So. Burlington	VT		1,882,857		101,655		50,684		19,217		51,090		66,456
Hobson West Plaza	Naperville	IL		1,117,993		99,137		124,307		43,292		107,747		133,753
Clark & Diversey	Chicago	IL		817,315		19,265		403,737		217,875		74,156		112,282
West Diversey	Chicago	IL		1,884,925		46,259		406,188		218,945		74,095		112,128
Chicago Urban/Street Retail Portfolio1	Chicago	IL		3,975,736		75,693		441,107		231,488		75,124		112,564
Merrillville Plaza	Hobart	IN		2,882,675		235,824		28,084		11,444		51,584		58,223
Bloomfield Town Square	Bloomfield Hills	MI		3,447,768		236,422		56,262		22,488		70,867		102,286
Mad River Station	Dayton	OH		1,270,327		126,129		63,784		27,917		58,431		70,473
Marketplace of Absecon	Absecon	NJ		1,314,472		104,762		32,818		11,478		62,164		74,221
Brandywine/Mkt Sq./Naamans Rd.	Wilmington	DE		16,109,859		997,724		43,888		17,592		98,322		121,132
Mark Plaza	Edwardsville	PA		240,664		106,856		88,065		37,263		37,520		47,049
Plaza 422	Lebanon	PA		795,852		156,279		45,898		18,145		43,042		52,403
Route 6 Plaza	Honesdale	PA		1,179,612		175,519		45,996		18,427		97,614		119,789
Chestnut Hill	Philadelphia	PA		357,143		37,916		144,928		61,588		62,496		78,437
Abington Towne Center	Abington	PA		950,005		216,369		89,061		35,063		76,999		95,632
Georgetown Portfolio	Georgetown	DC		1,695,917		27,666		310,075		155,858		85,815		118,080
28 Jericho Turnpike	Westbury	NY		1,650,000		96,363		107,066		34,486		104,342		132,026
Rhode Island Place Shopping Center	Washington	DC		1,622,450		57,529		336,016		153,378		65,558		87,768
Total Core 2
Average - Total				1,544,197		102,674		299,705		140,837		75,570		101,790
Weighted Average - Based on base rent								215,386		97,805		77,673		101,337

Notes:
1 Calculations comprised of twelve individual properties.
2 Calculations have been pro-rated based on the Company's ownership % in joint ventures.

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Property Demographics - Funds
							3-Mile Radius2
			Base		Total		Total		#		Median HH		Avg. HH
Property	City	State	Rent		GLA		Pop.		HH		Income		Income

Fund II
Pelham Manor Shopping Plaza	Westchester	NY		5,603,322		228,493		374,733		141,676		57,019		73,516
400 East Fordham Road	The Bronx	NY		5,519,760		119,446		1,200,592		421,615		37,257		48,075
Liberty Avenue	Queens	NY		772,671		26,125		608,079		205,151		55,864		67,708
Canarsie	Brooklyn	NY		7,678,974		273,542		911,000		333,487		45,787		56,307
216th Street	Manhattan	NY		2,460,000		60,000		935,948		329,442		37,176		55,430
161st Street	The Bronx	NY		5,207,510		232,402		1,251,086		444,325		32,321		47,196

Average - Total				4,540,373		156,668		880,240		312,616		44,237		58,039
Weighted Average - Based on base rent								918,461		328,812		43,156		56,703


Fund III
Westport	Westport	CT		1,740,944		27,033		46,478		17,392		135,500		198,698
Cortlandt Towne Center	Mohegan Lake	NY		9,563,072		641,211		49,183		17,702		88,812		104,358
654 Broadway	New York	NY		300,000		2,896		988,935		493,404		86,546		133,779
640 Broadway	New York	NY		645,281		4,483		987,988		492,393		86,341		133,275
New Hyde Park Shopping Center	New Hyde Park	NY		853,704		31,498		195,564		70,172		101,624		129,444
White City	Shrewsbury	MA		4,729,154		255,690		101,062		40,736		52,003		64,348
Parkway Crossing	Parkville	MD		1,671,597		260,241		184,242		74,094		59,047		70,053
Lincoln Road	Miami Beach	FL		2,265,164		61,443		57,171		32,620		61,991		89,803
Heritage Shops	Chicago	IL		2,588,752		105,585		289,135		155,570		76,609		116,432
Lincoln Park center	Chicago	IL		1,607,359		62,745		438,736		235,290		77,360		116,754


Fund III 1
Average - Total				2,596,503		145,283		333,849		162,937		82,583		115,694
Weighted Average - Based on base rent								145,863		68,716		80,361		104,893


Total - Core and Funds1
Average - Total				1,976,017		114,038		357,654		159,802		73,784		99,920
Weighted Average - Based on base rent								261,439		112,501		75,361		98,354

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

-41-

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.

-42-