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 30, 2008
ACADIA
REALTY TRUST
(Exact
name of registrant as specified in its charter)
|
Maryland |
1-12002 |
23-2715194 |
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer 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 30, 2008, Acadia Realty Trust (the "Company") issued a press release announcing its consolidated financial results for the quarter and six months ended June 30, 2008. 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 30, 2008, 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, 2008. 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.
(a) Financial Statements
Not Applicable
(b) Pro Forma Financial Information
Not Applicable
(c) Shell Company Transactions
Not Applicable
| (d) Exhibits | ||
|
Exhibit Number |
Description |
|
| 99.1 | Press release of the Company dated July 30, 2008. | |
| 99.2 | Financial and Operating Reporting Supplement of the Company | |
| for the Quarter and Six Months Ended June 30, 2008. | ||
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: |
August 1, 2008 |
By: |
/s/ Michael Nelsen |
||
| Name: |
Michael Nelsen |
||||
| Title: |
Sr. Vice President |
||||
2
EXHIBIT INDEX
|
Exhibit Number |
Description |
|
| 99.1 | Press release of the Company dated July 30, 2008. | |
| 99.2 | Financial and Operating Reporting Supplement of the Company | |
| for the Quarter and Six Months Ended June 30, 2008. | ||
Exhibit 99.1
Acadia Realty Trust Reports Second Quarter 2008 Operating Results
NEW YORK--(BUSINESS WIRE)--Acadia Realty Trust (NYSE: AKR – “Acadia” or the “Company”), a real estate investment trust (“REIT”), today reported operating results for the quarter ended June 30, 2008. All per share amounts discussed below are on a fully diluted basis.
Second Quarter 2008 Highlights
Earnings – 2008 second quarter FFO of $0.41 and EPS of $0.30
- Funds from operations (“FFO”) per share of $0.41 for the second quarter 2008 compared to $0.26 for second quarter 2007 and FFO of $0.79 for the six months ended June 30, 2008 compared to $0.62 for the six months ended June 30, 2007, as adjusted
- Earnings per share (“EPS”) from continuing operations for second quarter 2008 of $0.30 compared to $0.07 for second quarter 2007 and EPS of $0.53 for the six months ended June 30, 2008 compared to $0.16 for the six months ended June 30, 2007
Core portfolio remains solid
- Same store net operating income increased 1.0% and 3.9% for the quarter and six months ended June 30, 2008 compared to same periods in 2007, respectively
- June 30, 2008 occupancy at 93.9% versus 94.1% at March 31, 2008
Additional investments
- Completed preferred equity investment in Georgetown, Washington D.C. portfolio for $40 million and, subsequent to June 30, 2008, a mezzanine financing investment in New York City project for $34 million
Progress on Urban Development Program
- Entered into agreement with Target Corporation to anchor CityPoint in Downtown Brooklyn, New York
- Entered into lease termination agreement with Home Depot at Canarsie, Brooklyn project
- Subsequent to June 30, 2008, executed a conditional agreement to replace Home Depot as the anchor tenant and terminate its lease at Fund II’s Pelham, New York redevelopment project
Three and six months ended June 30, 2008 Operating Results
For the quarter ended June 30, 2008, FFO was $13.9 million, or $0.41 per share, compared to $8.8 million, or $0.26 per share for the quarter ended June 30, 2007. For the six months ended June 30, 2008, FFO was $26.8 million, or $0.79 per share, compared to $20.9 million, or $0.62 per share for the six months ended June 30, 2007. FFO for 2007, as previously disclosed, was adjusted to include the extraordinary gain from the Company’s RCP Venture investments as discussed in Note 4 to the Financial Highlights included herein.
EPS and EPS from continuing operations for the second quarter 2008 were $0.54 and $0.30, respectively, compared to $0.09 and $0.07 for the second quarter 2007, respectively. For the six months ended June 30, 2008, EPS and EPS from continuing operations were $0.81 and $0.53, respectively, compared to $0.30 and $0.16 for the six months ended June 30, 2007.
The following are the key factors in comparing EPS for the second quarter 2008 with the second quarter 2007:
- The $0.23 increase in EPS from continuing operations for 2008 resulted primarily from lease termination income, net of minority interests’ share, of $0.14, promote income of $0.04 from Fund I capital transactions and additional transactional fee income earned from the opportunity funds that the Company invests in and manages (the “Funds”) of $0.05. The transactional fees earned from the Funds are eliminated in consolidation, and recognized through a reduction in minority interest expense. These increases were partially offset by $0.02 of additional general and administrative expense in 2008.
- Income from discontinued operations increased $0.22 primarily as a result of the gain recognized from the sale of the Village Apartments during 2008.
The key factors in comparing EPS for the six months ended June 30, 2008 with the six months ended June 30, 2007 are as follows:
- The $0.37 increase in EPS from continuing operations for 2008 resulted primarily from the factors discussed above as well as $0.07 of additional income related to the Company’s investment in Mervyns and additional transactional fees of $0.11 earned in 2008 from the Funds, partially offset by additional general and administrative expense of $0.04 for 2008.
- Income from extraordinary item for 2007 of $0.09 was related to the Company’s investment in Albertson’s through its RCP Venture.
Retail Portfolio Performance Remains Solid
During April of 2008, the Company completed the sale of its last remaining residential complex, the Village Apartments, located in Winston-Salem, North Carolina for $23.3 million.
For the quarter ended June 30, 2008, same store net operating income (“NOI”) for the core portfolio increased 1.0% from second quarter 2007. For the six months ended June 30, 2008, same store NOI for the core portfolio increased 3.9%.
Acadia’s core portfolio occupancy, including the Company’s pro-rata share of its joint venture properties, but excluding the Funds, was 93.9% as of June 30, 2008. This represents a decrease of 20 basis points from 94.1% occupancy at March 31, 2008 and an increase of 60 basis points from June 30, 2007 occupancy of 93.3%.
Acadia’s combined portfolio occupancy, including its pro-rata share of its joint venture properties and its Funds, was 93.7% as of June 30, 2008. This represents a decrease of 20 basis points from 93.9% occupancy at March 31, 2008 and an increase of 60 basis points from June 30, 2007 occupancy of 93.1%.
During the second quarter of 2008, the Company realized an average rent increase of 10.3% in its core portfolio on new and renewal leases totaling 39,000 square feet representing 0.7% of the core portfolio’s gross leasable area. Including the effect of the straight-lining of rents, the Company realized average rent increases of 24.5% on new and renewal leases with respect to its core portfolio.
Additional Opportunistic Investments
Georgetown Preferred Equity Investment
During the second quarter, the Company provided a $40 million preferred equity investment in a portfolio of 18 properties located primarily in Georgetown, Washington D.C. The portfolio consists of 306,000 square feet of principally retail space and includes top-tier retailers such as BCBG, Diesel, Sephora, Puma, Pottery Barn, and Club Monaco. The term of this investment, which provides for a 13% preferred return, is for two years.
The Company made this investment into properties owned and managed by Eastbanc, a dominant Georgetown developer which has acquired, owned or managed 60 buildings in Georgetown over the past 10 years. Eastbanc has successfully assembled the largest concentrated collection of urban retail in the marketplace, and remains the largest non-mall landlord in Georgetown.
New York City Mezzanine Investment
Subsequent to June 30, 2008, Acadia made a $34 million mezzanine loan, which is collateralized by a mixed-use retail and residential development at 72nd Street and Broadway on the Upper West Side of Manhattan. Upon completion, this project is expected to include approximately 50,000 square feet of retail on three levels and 196 high-end residential rental apartments. The term of the loan is for a period of three years, and the effective annual return is in excess of 20%.
The development is being led by the Gotham Organization, a nationally recognized leader in the construction and development of urban commercial and retail centers, luxury residential high-rise buildings, hotels, and health care and educational facilities.
External Growth Initiatives
Fund II
CityPoint, Downtown Brooklyn, New York
During the quarter, Fund II entered into an agreement with Target Corporation to anchor the retail component of CityPoint located in Downtown Brooklyn, New York. Target has agreed to occupy approximately 200,000 square feet of the 475,000 square foot retail component of the redevelopment project.
Canarsie, Brooklyn, New York
During the second quarter, Fund II entered into an agreement with Home Depot to terminate its lease at the Fund’s redevelopment property located in Canarsie, Brooklyn in exchange for a payment by Home Depot of $24.5 million. Acadia’s share of this lease termination income, net of minority interests’ shares, was approximately $4.5 million. Home Depot’s lease represented approximately 40% of the gross leasable area of this redevelopment project, which was originally acquired for approximately $26 million. The development plan for this property includes the demolition of a portion of the warehouse and the construction of a 320,000 square foot mixed-use project consisting of retail, office and self-storage.
Pelham Manor, Westchester, New York
Subsequent to June 30, 2008, Fund II entered into an agreement with Home Depot to replace it as the anchor tenant and terminate its lease at Fund II’s redevelopment project located in Pelham Manor, New York. The agreement is contingent upon the execution of a lease with a replacement anchor tenant and is subject to various approvals. Fund II is in the final stages of negotiating a replacement anchor lease agreement, and in the event the conditions are not met, Home Depot is obligated to proceed under the terms of its lease.
Fund III
Fund III was launched in 2007 with $503 million of committed capital, which is expected to enable the Fund to acquire or develop approximately $1.5 billion of assets on a leveraged basis. To date, Fund III has invested approximately $100 million in three projects: 125 Main Street in Westport, CT, Station Plaza in Sheepshead Bay (Brooklyn), NY and the 11 property Storage Post Portfolio. There were no new investments made during the second quarter.
Fund I
During April of 2008 Fund I completed the sale of Haygood Shopping Center, located in Virginia Beach, Virginia for $24.9 million.
RCP Venture
Mervyns
In connection with its Retailer Controlled Property (“RCP”) Venture, in September 2004, Acadia Mervyns Investors I, LLC (“Mervyns I”) and Acadia Mervyns Investors II, LLC (“Mervyns II”) participated in the acquisition of the Mervyns Department Store chain consisting of 262 stores (“REALCO”) and its retail operation (“OPCO”) from Target Corporation for a total price of $1.2 billion. Mervyns I and II invested $23.2 million for approximately a 5.2% interest in REALCO and a 2.5% interest in OPCO, equally split between Mervyns I and II.
To date, through a series of transactions, REALCO has disposed of a significant portion of the portfolio. Furthermore, during November 2007, Mervyns I and II sold their interests in OPCO and, as a result, have no further direct OPCO exposure. As a result of these transactions, Mervyns I and II have received an equity multiple of approximately 2.0 on their original investment to date.
Albertsons
During the quarter, Albertsons announced the sale of 49 stores located throughout Florida to Publix Supermarkets, Inc. This transaction is expected to close in September 2008.
Strong Balance Sheet
Acadia continues to maintain a solid financial position at June 30, 2008 as evidenced by the following:
- Fixed-charge coverage ratio of 3.8 to 1 for the second quarter 2008
- Debt to total market capitalization of 38%
- Dividend payout ratio of 51% of FFO for the second quarter 2008
- 100% of the Company’s core portfolio debt is fixed-rate. Including the Company’s pro-rata share of Fund debt, 91% is fixed-rate
Outlook - Earnings Guidance for 2008
On a fully diluted basis, the Company had previously forecasted that its 2008 annual FFO would range from $1.25 to $1.35 per share and 2008 earnings per share will range from $0.66 to $0.76.
The Company currently anticipates that it will achieve 2008 annual FFO in the upper end of this range, or $1.30 to $1.35. EPS is currently projected to range from $0.90 to $1.00. The increase in forecasted EPS is due primarily to $0.22 of gain on sale recognized during the quarter ended June 30, 2008.
Management Comments
“We are quite pleased with our second quarter results,” stated Kenneth F. Bernstein, President and CEO of Acadia Realty Trust. “Notwithstanding a challenging credit market and weakening economy, the high barrier-to-entry and supply constrained profile of our core portfolio has enabled its performance to remain solid. Additionally, with a healthy balance sheet and discretionary equity funds, we are well positioned to continue to successfully execute our business plan and capitalize on the opportunities that are beginning to materialize.”
Investor Conference Call
Management will conduct a conference call on Thursday, July 31, 2008 at 12:00 ET to review the Company's earnings and operating results. The live conference call can be accessed by dialing 1-866-800-8649 (internationally 617-614-2703). The passcode 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 99124765. The phone replay will be available through Thursday, August 7, 2008.
Acadia Realty Trust, headquartered in White Plains, NY, is a fully integrated, self-managed and self-administered equity REIT focused primarily on the ownership, acquisition, redevelopment and management of retail and mixed-use properties including neighborhood and community shopping centers located in dense urban and suburban markets in major metropolitan areas.
Certain matters in this press release, including statements relating to our future operating results, may constitute forward-looking statements within the meaning of federal securities law and as such may involve known and unknown risk, uncertainties and other factors which may cause the actual results, performances or achievements of Acadia to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. These forward-looking statements include statements regarding our future earnings, estimates regarding the timing of completion of, and costs relating to, our real estate redevelopment projects. Factors that could cause our forward-looking statements to differ from our 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 29, 2008 (“Form 10-K”) and other periodic reports filed with the SEC, including risks related to: (i) the Company’s reliance on revenues derived from major tenants; (ii) the Company’s limited control over joint venture investments; (iii) the Company’s partnership structure; (iv) real estate and the geographic concentration of our properties; (v) market interest rates; (vi) leverage; (vii) liability for environmental matters;(viii) the Company’s growth strategy; (ix) the Company’s status as a REIT (x) uninsured losses and (xi) 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, 2008 and 2007 (dollars in thousands, except per share data) |
||||||||||||
| For the quarters ended | For the six months ended | |||||||||||
| June 30, | June 30, | |||||||||||
| Revenues | 2008 | 2007 | 2008 | 2007 | ||||||||
| Minimum rents | $ | 20,658 | $ | 15,546 | $ | 38,254 | $ | 30,977 | ||||
| Percentage rents | 21 | 108 | 182 | 204 | ||||||||
| Expense reimbursements | 3,134 | 2,420 | 7,136 | 5,309 | ||||||||
|
Lease termination income |
|
24,500 |
-- |
24,500 |
-- |
|||||||
| Other property income | 930 | 117 | 1,218 | 241 | ||||||||
| Management fee income | 397 | 737 | 2,426 | 1,812 | ||||||||
| Interest income | 1,881 | 2,222 | 4,677 | 5,076 | ||||||||
| Other | -- | -- | -- | 165 | ||||||||
| Total revenues | 51,521 | 21,150 | 78,393 | 43,784 | ||||||||
| Operating expenses | ||||||||||||
| Property operating | 5,001 | 2,361 | 9,134 | 5,907 | ||||||||
| Real estate taxes | 2,927 | 2,141 | 5,471 | 4,123 | ||||||||
| General and administrative | 6,344 | 5,542 | 12,733 | 10,990 | ||||||||
| Depreciation and amortization | 7,386 | 5,971 | 13,904 | 11,605 | ||||||||
| Total operating expenses | 21,658 | 16,015 | 41,242 | 32,625 | ||||||||
| Operating income | 29,863 | 5,135 | 37,151 | 11,159 | ||||||||
| Equity in earnings of unconsolidated affiliates | 4,469 | 3,583 | 17,704 | 3,713 | ||||||||
| Interest expense | (6,804) | (5,385) | (12,892) | (10,992) | ||||||||
| Minority interest | (17,150) | (580) | (22,335) | 1,729 | ||||||||
| Income from continuing operations before income taxes | 10,378 | 2,753 | 19,628 | 5,609 | ||||||||
| Income taxes | (343) | (391) | (2,200) | (435) | ||||||||
| Income from continuing operations | 10,035 | 2,362 | 17,428 | 5,174 | ||||||||
|
ACADIA REALTY TRUST AND SUBSIDIARIES Financial Highlights 1 For the Quarters and Six Months ended June 30, 2008 and 2007 (dollars in thousands, except per share data) |
||||||||||||
| For the quarters ended | For the six months ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||
| Discontinued operations: | ||||||||||||
| Operating income from discontinued operations | 851 | 685 | 2,228 | 1,730 | ||||||||
| Gain on sale of property | 7,182 |
-- |
7,182 | -- | ||||||||
| Minority interest | (157) | (13) | (184) | (34) | ||||||||
| Income from discontinued operations | 7,876 | 672 | 9,226 | 1,696 | ||||||||
| Net income before extraordinary item | 17,911 | 3,034 | 26,654 | 6,870 | ||||||||
| Extraordinary item: | ||||||||||||
| Share of extraordinary gain from investment in unconsolidated affiliate | -- | -- | -- | 23,690 | ||||||||
| Minority interest | -- | -- | -- | (18,959) | ||||||||
| Income taxes | -- | -- | -- | (1,848) | ||||||||
| Income from extraordinary item | -- | -- | -- | 2,883 | ||||||||
| Net income | $ | 17,911 | $ | 3,034 | $ | 26,654 | $ | 9,753 | ||||
| Net income per Common Share – Basic | ||||||||||||
| Net income per Common Share – Continuing operations | $ | 0.31 | $ | 0.07 | $ | 0.54 | $ | 0.16 | ||||
| Net income per Common Share – Discontinued operations | 0.24 | 0.02 | 0.28 | 0.05 | ||||||||
| Net income per Common Share – Extraordinary item | -- | -- | -- | 0.09 | ||||||||
| Net income per Common Share | $ | 0.55 | $ | 0.09 | $ | 0.82 | $ | 0.30 | ||||
| Weighted average Common Shares | 32,519 | 32,339 | 32,490 | 32,247 | ||||||||
| Net income per Common Share – Diluted 2 | ||||||||||||
| Net income per Common Share – Continuing operations | $ | 0.30 | $ | 0.07 | $ | 0.53 | $ | 0.16 | ||||
| Net income per Common Share – Discontinued operations | 0.24 | 0.02 | 0.28 | 0.05 | ||||||||
| Net income per Common Share – Extraordinary item | -- | -- | -- | 0.09 | ||||||||
| Net income per Common Share | $ | 0.54 | $ | 0.09 | $ | 0.81 | $ | 0.30 | ||||
| Weighted average Common Shares | 33,089 | 32,933 | 33,023 | 32,975 | ||||||||
|
ACADIA REALTY TRUST AND SUBSIDIARIES Financial Highlights 1 For the Quarters and Six Months ended June 30, 2008 and 2007 (dollars in thousands, except per share data) |
||||||||||||
|
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS 3 |
||||||||||||
| For the quarters ended | For the six months ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||
| Net income | $ | 17,911 | $ | 3,034 | $ | 26,654 | $ | 9,753 | ||||
|
Depreciation of real estate and amortization of leasing costs
(net of minority interests' share): |
||||||||||||
| Consolidated affiliates | 2,970 | 5,158 | 6,536 | 9,955 | ||||||||
| Unconsolidated affiliates | 384 | 513 | 884 | 988 | ||||||||
| Gain on sale (net of minority interests' share): | ||||||||||||
|
Consolidated affiliates |
(7,182) |
-- |
(7,182) |
-- |
||||||||
| Unconsolidated affiliates | (588) | -- | (588) | -- | ||||||||
| Income attributable to minority interest in Operating Partnership | 362 | 84 | 441 | 228 | ||||||||
| Distributions – Preferred OP Units | 5 | 5 | 10 | 13 | ||||||||
| Extraordinary item (net of minority interests' share and income taxes) | -- | -- | -- | (2,883) | ||||||||
| Funds from operations | 13,862 | 8,794 | 26,755 | 18,054 | ||||||||
| Add back: Extraordinary item, net 4 | -- | -- | -- | 2,883 | ||||||||
| Funds from operations, adjusted for extraordinary item | $ | 13,862 | $ | 8,794 | $ | 26,755 | $ | 20,937 | ||||
| Funds from operations per share – Diluted | ||||||||||||
| Weighted average Common Shares and OP Units 5 | 33,737 | 33,601 | 33,670 | 33,643 | ||||||||
| Funds from operations, adjusted, per share | $ | 0.41 | $ | 0.26 | $ | 0.79 | $ | 0.62 | ||||
|
ACADIA REALTY TRUST AND SUBSIDIARIES Financial Highlights 1 For the Quarters and Six Months ended June 30, 2008 and 2007 (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, | |||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||
| Operating income | $ | 29,863 | $ | 5,135 | $ | 37,151 | $ | 11,159 | ||||
| Add back: | ||||||||||||
| General and administrative | 6,344 | 5,542 | 12,733 | 10,990 | ||||||||
| Depreciation and amortization | 7,386 | 5,971 | 13,904 | 11,605 | ||||||||
| Less: | ||||||||||||
| Management fee income | (397) | (737) | (2,426) | (1,812) | ||||||||
| Interest income | (1,881) | (2,222) | (4,677) | (5,076) | ||||||||
| Lease termination income |
(24,500) |
-- |
(24,500) |
-- |
||||||||
| Straight line rent and other adjustments | (1,447) | 1,183 | (979) | 1,385 | ||||||||
| Consolidated NOI | 15,368 | 14,872 | 31,206 | 28,251 | ||||||||
| Minority interest in NOI | (2,331) | (937) | (3,746) | (1,371) | ||||||||
| Pro-rata share of NOI | $ | 13,037 | $ | 13,935 | $ | 27,460 | $ | 26,880 | ||||
| SELECTED BALANCE SHEET INFORMATION | ||||||||
| As of | ||||||||
|
June 30,
2008 |
December 31,
2007 |
|||||||
| Cash and cash equivalents | $ | 30,278 | $ | 123,343 | ||||
| Rental property, at cost | 1,021,857 | 794,287 | ||||||
| Total assets | 1,234,104 | 999,012 | ||||||
| Notes payable | 678,836 | 517,903 | ||||||
| Total liabilities | 744,284 | 587,165 | ||||||
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 minority interest 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 operating income (“NOI”) to be appropriate supplemental disclosures of operating performance for an equity REIT due to its widespread acceptance and use within the REIT and analyst communities. FFO and NOI are presented to assist investors in analyzing the performance of the Company. They are helpful as they exclude various items included in net income that are not indicative of the operating performance, such as gains (losses) from sales of depreciated property and depreciation and amortization. In addition, NOI excludes interest expense. The Company’s method of calculating FFO and NOI may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. FFO does not represent cash generated from operations as defined by generally accepted accounting principles (“GAAP”) and is not indicative of cash available to fund all cash needs, including distributions. It should not be considered as an alternative to net income for the purpose of evaluating the Company’s performance or to cash flows as a measure of liquidity. Consistent with the NAREIT definition, the Company defines FFO as net income (computed in accordance with GAAP), excluding gains (losses) from sales of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.
4 The extraordinary item represents the Company’s share of estimated extraordinary gain related to its investment in Albertson’s. The Albertson’s entity has recorded an extraordinary gain in connection with the allocation of purchase price to assets acquired. The Company considers this as an investment in an operating business as opposed to real estate. Accordingly, all gains and losses from this investment are included in FFO which management believes provide a more accurate reflection of the operating performance of the Company.
5 In addition to the weighted average Common Shares outstanding, basic and diluted FFO also assumes full conversion of a weighted average 648 and 642 OP Units into Common Shares for the quarters ended June 30, 2008 and 2007, respectively, and 646 and 642 OP Units into Common Shares for the six months ended June 30, 2008 and 2007, respectively. Diluted FFO also includes the assumed conversion of Preferred OP Units into 25 and 38 Common Shares for the quarters ended June 30, 2008 and 2007, respectively, and the conversion of Preferred OP Units into 25 and 108 Common Shares for the six months ended June 30, 2008 and 2007, respectively.
CONTACT:
Acadia Realty Trust
Media Relations
Debra Miley,
914-288-8100
Exhibit 99.2
ACADIA
REALTY TRUST
Second Quarter 2008
Reporting Supplement
Reporting Supplement
June 30, 2008
Table of Contents
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Page Page
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Section I - Overview Section III - Opportunity Fund Information
Important Notes 3 Fund I
Overview 29
Company Information 4 Properties 30
Anchor Detail 31
Portfolio Snapshots Lease Expirations 32
Core Portfolio 5 Kroger/Safeway Detail 33
Combined Portfolios 6 Current Valuation 34
Market Capitalization 7 Fund II
Overview 35
Shareholder Information 8 Properties 36
Anchor Detail 37
Section II - Financial Information Lease Expirations 38
Operating Statements - Pro-rata Consolidation Fund III
Pro-rata Consolidation 9 Overview 39
Fee income 11 Storage Post Properties 40
Opportunity Funds 12 Storage Post Locations 41
Joint Ventures 15
Current v. Prior Year 16 Redevelopment Projects 42
Same Property Net Operating Income 18 RCP Venture 43
RCP Venture Investments 44
Funds from Operations ("FFO"), Adjusted FFO ("AFFO")
and Funds Available for Distribution ("FAD") 19 Section IV - Core Portfolio Information
2008 Guidance 20 Properties 45
Balance Sheets Portfolio by State 47
Consolidated 21
Pro-rata Consolidation 22 Top Tenants 48
Debt Analysis Anchor Tenants 49
Summary 23
Detail 24 Anchor Lease Expirations - Next 4 Years 52
Maturities 27
Lease Expirations 53
Selected Financial Ratios 28
New and Renewal Rent Spreads 55
Capital Expenditures 56
Portfolio Demographics 57
Visit www.acadiarealty.com for additional investor and portfolio information
Page 2
Reporting Supplement
June 30, 2008
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 a 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 excludes
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.
Page 3
Company Information
Acadia Realty Trust, headquartered in White Plains, NY, is a fully integrated
and self-managed real estate investment trust
which specializes in the acquisition, redevelopment and operation of shopping
centers which are anchored by grocery and value-oriented retail. Acadia
currently owns (or has interests in) and operates 84 properties totaling
approximately 8 million square feet, located in the Northeast, Mid-Atlantic and
Midwest United States.
All of Acadia's assets are held by, and all its operations are conducted
through, Acadia Realty Limited Partnership (and its majority-owned subsidiaries)
which is currently 98% controlled by Acadia.
Corporate Headquarters 1311 Mamaroneck Avenue Investor Relations Debra Miley
Suite 260 Director - Marketing &
Communications
White Plains, NY 10605 (914) 288-8148
dmiley@acadiarealty.com
New York Stock Exchange Symbol AKR Web Site www.acadiarealty.com
Analyst Coverage Banc of America Securities J.P. Morgan Securities, Inc.
Christine McElroy - (212) 847-5658 Michael W. Mueller, CFA (212) 622-6689
christine.m.mcelroy@bofasecurities.com michael.w.mueller@jpmorgan.com
Bank of Montreal RBC Capital Markets
Paul Adornato, CFA - (212) 885-4170 Rich Moore, CFA - (216) 378-7625
paul.adornato@bmo.com rich.moore@rbccm.com
Citigroup - Smith Barney Keefe, Bruyette & Woods, Inc.
Ambika Goel - (212) 816-6981 Sheila K. McGrath - (212) 887-7793
ambika.goel@citi.com smcgrath@kbw.com
Page 4
Reporting Supplement
June 30, 2008
Total Market Capitalization
---------------------------
(including pro-rata share of joint venture debt)
(dollars in thousands)
Percent of
Percent of Total Market
Total Equity Capitalization
------------ --------------
Equity Capitalization
- ---------------------
Total Common Shares Outstanding 98.0% $ 32,351
Common Operating Partnership
("OP") Units 2.0% 648
----
Combined Common Shares and OP Units 32,999
Share Price at June 30, 2008 23.15
------
Equity Capitalization - Common Shares
and OP Units 763,927
Preferred OP Units (1) 0.0% 580
---- ----
Total Equity Capitalization 100.0% 764,507 62.0%
====== -------- -----
Debt Capitalization
Consolidated debt 677,955
Adjustment to reflect pro-rata share
of debt (210,014)
---------
Total Debt Capitalization 467,941 38.0%
-------- -----
Total Market Capitalization $ 1,232,448 100.0%
============ ======
Weighted Average Outstanding Common Shares and OP Units
-------------------------------------------------------
June 30, 2008 June 30, 2007
Quarter Year-to-date Quarter Year-to-date
------- ------------ ------- ------------
Weighted average Common Shares
- Basic 32,519,451 32,489,976 32,339,270 32,247,484
Dilutive potential Common Shares 569,783 533,218 594,161 727,984
-------- -------- -------- --------
Weighted average Common Shares
- Dilute 33,089,234 33,023,194 32,933,431 32,975,468
OP Units 647,656 646,739 642,272 642,272
Dilutive potential of OP Units - - 25,067 25,067
-- -- ------- -------
Weighted average Common
Shares/OP Units 33,736,890 33,669,933 33,600,770 33,642,807
========== =========== =========== ===========
1 Represents 188 Series A Preferred OP Units convertible into 25,067 Common
OP units x share price at quarter end.
2 Fixed-rate debt includes notional principal fixed through interest rate
swap transactions and conversely, variable-rate debt excludes this amount.
Page 5
Reporting Supplement
June 30, 2008
Shareholder and OP Unit Information
- -----------------------------------
(amounts in thousands)
Common Shares (1)
------------------ Percent of Out-
Common standing Common
Shares Held Shares
----------- ---------------
Morgan Stanley 3,038 9.4%
ING Bewaar Maatschappij I B.V. 2,865 8.9%
Third Avenue Management 2,565 7.9%
Yale University 2,285 7.1%
Vanguard Group 2,115 6.5%
Wellington Management 2,040 6.3%
Barclay's Global Investors 1,854 5.7%
Baron Capital Group 1,838 5.7%
Heitman Real Estate Securities 1,587 4.9%
Principal Financial Group 1,542 4.8%
------- -----
Total of Ten Largest Institutional Shareholders 21,729 67.2%
======= =====
Total of all Institutional Shareholders 31,865 98.5%
======= =====
Operating Partnership Units
---------------------------
OP Units Percent of
Held OP Units
-------- -----------
Managment O.P. Unit Holders 338 52.2%
Other O.P. Unit Holders 310 47.8%
---- -----
Total O.P. Units 648 100.0%
==== ======
(1) Based on most recent Schedule 13F filing
Page 6
Reporting Supplement
June 30, 2008
Income Statements - Pro-rata Consolidation (1)
- ----------------------------------------------
Current Quarter and Year-to-Date
--------------------------------
(in thousands)
Year-to-Date
Period
ended June 30,
2008
----------------------------------------------------------------------
Core Retail Opportunity Residential
Total Core Total Core Funds
Wholly Joint Continuing Discontinued Discontinued
Owned Ventures Operations Operations(4) Operations(4) Total
----------------------------------------------------------------------
PROPERTY REVENUES
Minimum rents $ 22,794 $ 3,143 $ 25,937 $2,344 $ 4,688 $1,203 $ 34,172
Percentage rents 182 29 211 56 - - 267
Expense reimbursements - CAM 3,018 413 3,431 510 127 - 4,068
Expense reimbursements - Taxes 3,533 504 4,037 310 75 - 4,422
Other property income 124 21 145 35 117 109 406
-----------------------------------------------------------------------
29,651 4,110 33,761 3,255 5,008 1,312 43,336
-----------------------------------------------------------------------
PROPERTY EXPENSES
Property operating - CAM 3,550 479 4,029 646 327 - 5,002
Other property operating 911 249 1,160 426 656 631 2,873
Real estate taxes 4,192 589 4,781 372 357 65 5,575
-----------------------------------------------------------------------
8,653 1,317 9,970 1,444 1,339 696 13,449
-----------------------------------------------------------------------
NET OPERATING INCOME - PROPERTIES (3) 20,998 2,793 23,791 1,811 3,669 616 29,887
OTHER INCOME (EXPENSE)
General and administrative (13,180) - (13,180) - (174) - (13,354)
Equity in earnings of unconsolidated properties 21 - 21 - 1,450 - 1,471
Equity in earnings from RCP investments - - - - 2,733 - 2,733
Interest income 4,111 14 4,125 - 174 11 4,310
Fee income (2) 11,694 - 11,694 - - - 11,694
Promote income - Fund capital transactions 1,044 - 1,044 - 117 - 1,161
Promote income - RCP - - - - 1,287 - 1,287
Priority distributions 253 - 253 - - - 253
Promote expense - - - - - - -
Property management expense (64) - (64) - (3) (23) (90)
Straight-line rent income 488 60 548 5 335 - 888
Straight-line rents written off - (61) (61) - - - (61)
FAS 141 rent (238) 68 (170) - (32) - (202)
Provision for income taxes (2,192) - (2,192) - (8) - (2,200)
Lease termination income - - - - 4,900 - 4,900
-----------------------------------------------------------------------
EBIDTA 22,935 2,874 25,809 1,816 14,448 604 42,677
Depreciation and amortization (7,579) (869) (8,448) (192) (2,360) - (11,000)
FAS 141 amortization (494) - (494) - (34) - (528)
Interest expense (8,519) (1,881) (10,400) - (1,102) - (11,502)
Loan defeasance - - - - - - -
FAS 141 interest 40 - 40 - - - 40
Gain (loss) on sale of properties 763 - 763 - - 7,182 7,945
-----------------------------------------------------------------------
Income before minority interest 7,146 124 7,270 1,624 10,952 7,786 27,632
Minority interest - OP (359) - (359) (32) - (152) (543)
Minority interest 85 - 85 - (520) - (435)
-----------------------------------------------------------------------
NET INCOME $ 6,872 $ 124 $ 6,996 $1,592 $10,432 $7,634 $ 26,654
=======================================================================
(1) Quarterly results are unaudited, although they reflect all adjustments,
which in the opinion of management, are necessary for a fair presentation
of operating results for the interim periods.
The Company's investments in consolidated and unconsolidated joint ventures
are reflected separately for revenues and expenses by calculating it's
pro-rata share for each of the above line items. In total, net income
agrees with net income as reported in the Company's Form 10Q's and 10K for
the corresponding periods. The Company currently invests in Funds I. II &
III and Mervyn's which are consolidated with the Company's financial
statements. The Company also has a 22.2% interest in the Brandywine
Portfolio and a 49% interest in the Crossroads Shopping Center
("Crossroads") which are accounted for as unconsolidated investments in the
Company's financial statements.
(2) Details on the following Fee Income page.
(3) Includes majority-owned affiliates of which the minority share of NOI for
239 Greenwich Ave and Boonton Shopping Center aggregated $240 for the
quarter and $481 for the six months ended June 30, (2008.)
(4) Discontinued Operations reflects Ledgewood Mall, which was held for sale as
of June 30, 2008, and one residential property which was sold in the second
quarter (2008.)
Page 7
Current Quarter
3 months
ended June 30,
2008
----------------------------------------------------------------------
Core Retail Opportunity Residential
Total Core Total Core Funds
Wholly Joint Continuing Discontinued Discontinued
Owned Ventures Operations Operations(4) Operations(4) Total
----------------------------------------------------------------------
PROPERTY REVENUES
Minimum rents $11,486 $1,532 $13,018 $1,040 $ 2,091 $ 285 $16,434
Percentage rents 21 4 25 37 - - 62
Expense reimbursements - CAM 1,154 160 1,314 208 60 - 1,582
Expense reimbursements - Taxes 1,643 263 1,906 155 27 - 2,088
Other property income 31 1 32 7 28 34 101
---------------------------------------------------------------------
14,335 1,960 16,295 1,447 2,205 319 20,266
---------------------------------------------------------------------
PROPERTY EXPENSES
Property operating - CAM 1,391 200 1,591 267 128 1,986
Other property operating 506 154 660 146 474 215 1,495
Real estate taxes 2,096 304 2,400 186 210 15 2,811
---------------------------------------------------------------------
3,993 658 4,651 599 813 230 6,293
---------------------------------------------------------------------
NET OPERATING INCOME - PROPERTIES (3) 10,342 1,302 11,644 848 1,393 89 13,974
OTHER INCOME (EXPENSE)
General and administrative (6,572) - (6,572) - (70) - (6,642)
Equity in earnings of unconsolidated properties - - - - 1,467 - 1,467
Equity in earnings from RCP investments - - - - 200 - 200
Interest income 1,825 5 1,830 - 20 3 1,853
Fee income (2) 4,978 - 4,978 - - 4,978
Promote income - Fund capital transactions 1,044 - 1,044 - 117 1,161
Promote income - RCP - - - - 96 96
Priority distributions 118 - 118 - - 118
Promote expense - - - - - -
Property management expense (32) - (32) - (1) (9) (42)
Straight-line rent income 238 33 271 2 371 - 644
Straight-line rents written off - - - - - -
FAS 141 rent (126) 34 (92) - (9) - (101)
Provision for income taxes (349) - (349) - 0 - (349)
Lease termination income - - - - 4,900 - 4,900
---------------------------------------------------------------------
EBIDTA 11,466 1,374 12,840 850 8,484 83 22,257
Depreciation and amortization (4,003) (382) (4,385) (82) (1,019) (5,486)
FAS 141 amortization (239) - (239) (15) (254)
Interest expense (4,255) (940) (5,195) (581) (5,776)
Loan defeasance - - - - - -
FAS 141 interest 20 - 20 - - 20
Gain (loss) on sale of properties 763 - 763 - - 7,182 7,945
---------------------------------------------------------------------
Income before minority interest 3,752 52 3,804 768 6,868 7,265 18,705
Minority interest - OP (205) - (205) (15) - (142) (362)
Minority interest (7) - (7) - (424) - (431)
---------------------------------------------------------------------
NET INCOME $ 3,540 $ 52 $ 3,592 $ 753 $ 6,443 $7,123 $17,911
=====================================================================
(1) Quarterly results are unaudited, although they reflect all adjustments,
which in the opinion of management, are necessary for a fair presentation
of operating results for the interim periods.
The Company's investments in consolidated and unconsolidated joint ventures
are reflected separately for revenues and expenses by calculating it's
pro-rata share for each of the above line items. In total, net income
agrees with net income as reported in the Company's Form 10Q's and 10K for
the corresponding periods. The Company currently invests in Funds I. II &
III and Mervyn's which are consolidated with the Company's financial
statements. The Company also has a 22.2% interest in the Brandywine
Portfolio and a 49% interest in the Crossroads Shopping Center
("Crossroads") which are accounted for as unconsolidated investments in the
Company's financial statements.
(2) Details on the following Fee Income page.
(3) Includes majority-owned affiliates of which the minority share of NOI for
239 Greenwich Ave and Boonton Shopping Center aggregated $240 for the
quarter and $481 for the six months ended June 30, (2008.)
(4) Discontinued Operations reflects Ledgewood Mall, which was held for sale as
of June 30, 2008, and one residential property which was sold in the second
quarter (2008.)
Page 8
Previous Quarter
3 months
ended March 31,
2008
----------------------------------------------------------------------
Core Retail Opportunity Residential
Total Core Total Core Funds
Wholly Joint Continuing Discontinued Discontinued
Owned Ventures Operations Operations(4) Operations(4) Total
----------------------------------------------------------------------
PROPERTY REVENUES
Minimum rents $11,308 $1,611 $12,919 $1,304 $ 2,597 $918 $17,738
Percentage rents 161 25 186 19 - 205
Expense reimbursements - CAM 1,864 253 2,117 302 67 2,486
Expense reimbursements - Taxes 1,890 241 2,131 155 49 2,335
Other property income 93 20 113 28 89 75 305
----------------------------------------------------------------------
15,316 2,150 17,466 1,808 2,802 993 23,069
----------------------------------------------------------------------
PROPERTY EXPENSES
Property operating - CAM 2,159 279 2,438 379 198 3,015
Other property operating 405 95 500 280 181 416 1,377
Real estate taxes 2,096 285 2,381 186 146 50 2,763
----------------------------------------------------------------------
4,660 659 5,319 845 526 466 7,156
----------------------------------------------------------------------
NET OPERATING INCOME - PROPERTIES (3) 10,656 1,491 12,147 963 2,276 527 15,913
OTHER INCOME (EXPENSE)
General and administrative (6,608) - (6,608) - (104) - (6,712)
Equity in earnings of unconsolidated properties 21 - 21 - (17) - 4
Equity in earnings from RCP investments - - - - 2,533 - 2,533
Interest income 2,286 9 2,295 - 154 8 2,457
Fee income (2) 6,716 - 6,716 - - 6,716
Promote income - Fund capital transactions - - - - - -
Promote income - RCP - - - - 1,192 1,192
Priority distributions 135 - 135 - - 135
Promote expense - - - - - -
Property management expense (32) - (32) - (2) (14) (48)
Straight-line rent income 250 27 277 3 (36) - 244
Straight-line rents written off (61) (61) - - - (61)
FAS 141 rent (112) 34 (78) - (24) - (102)
Provision for income taxes (1,843) - (1,843) - (9) - (1,852)
Lease termination income - - - - - - -
----------------------------------------------------------------------
EBIDTA 11,469 1,500 12,969 966 5,964 521 20,420
Depreciation and amortization (3,576) (487) (4,063) (110) (1,341) (5,514)
FAS 141 amortization (255) - (255) (18) (273)
Interest expense (4,264) (941) (5,205) (520) (5,725)
Loan defeasance - - - - - -
FAS 141 interest 20 - 20 - - 20
Gain (loss) on sale of properties - - - - - - -
----------------------------------------------------------------------
Income before minority interest 3,394 72 3,466 856 4,084 521 8,927
Minority interest - OP (154) - (154) (17) - (10) (181)
Minority interest 92 - 92 - (96) - (4)
----------------------------------------------------------------------
NET INCOME $ 3,332 $ 72 $ 3,404 $ 839 $ 3,989 $511 $ 8,743
======================================================================
(1) Quarterly results are unaudited, although they reflect all adjustments,
which in the opinion of management, are necessary for a fair presentation
of operating results for the interim periods.
The Company's investments in consolidated and unconsolidated joint ventures
are reflected separately for revenues and expenses by calculating it's
pro-rata share for each of the above line items. In total, net income
agrees with net income as reported in the Company's Form 10Q's and 10K for
the corresponding periods. The Company currently invests in Funds I. II &
III and Mervyn's which are consolidated with the Company's financial
statements. The Company also has a 22.2% interest in the Brandywine
Portfolio and a 49% interest in the Crossroads Shopping Center
("Crossroads") which are accounted for as unconsolidated investments in the
Company's financial statements.
(2) Details on the following Fee Income page.
(3) Includes majority-owned affiliates of which the minority share of NOI for
239 Greenwich Ave and Boonton Shopping Center aggregated $240 for the
quarter and $481 for the six months ended June 30, (2008.)
(4) Discontinued Operations reflects Ledgewood Mall, which was held for sale as
of June 30, 2008, and one residential property which was sold in the second
quarter (2008.)
Page 9
Reporting Supplement
June 30, 2008
Income Statements - Analysis of Management Fee Income
Current Quarter
(in thousands)
Fund I Fund II Fund III Other Total
------------------------------------------------------------------------
Six months ended June 30, 2008
Asset and property management fees $ - $ 1,932 $ 3,043 $ 1,003 $ 5,978
Transactional fees 147 2,045 2,099 1,425 5,716
------------------------------------------------------------------------
147 3,977 5,142 2,428 11,694
Priority distributions (Asset and property management fees) 253 - - - 253
------------------------------------------------------------------------
Total management fees and priority distributions $ 400 $ 3,977 $ 5,142 $ 2,428 $ 11,947
========================================================================
Fund I Fund II Fund III Other Total
------------------------------------------------------------------------
Three months ended June 30, 2008
Asset and property management fees $ - $ 957 $ 1,512 $ 417 $ 2,886
Transactional fees 55 1,016 1,041 (20) 2,092
------------------------------------------------------------------------
55 1,973 2,553 397 4,978
Priority distributions (Asset and property management fees) 118 - - - 118
------------------------------------------------------------------------
Total management fees and priority distributions $ 173 $ 1,973 $ 2,553 $ 397 $ 5,096
========================================================================
Fund I Fund II Fund III Other Total
------------------------------------------------------------------------
Three months ended March 31, 2008
Asset and property management fees $ - $ 975 $ 1,531 $ 586 $ 3,092
Transactional fees 92 1,029 1,058 1,445 3,624
------------------------------------------------------------------------
92 2,004 2,589 2,031 6,716
Priority distributions (Asset and property management fees) 135 - - - 135
------------------------------------------------------------------------
Total management fees and priority distributions $ 227 $ 2,004 $ 2,589 $ 2,031 $ 6,851
========================================================================
Page 10
Reporting Supplement
June 30, 2008
Income Statements -Opportunity Funds (1)
----------------------------------------
Current Quarter and Year-to-Date
--------------------------------
(in thousands)
Year-to-Date
Period
ended June 30, 2008
AKR AKR AKR
Pro- Brandywine Pro-
AKR rata Promote AKR rata
Total Promote share PAID IN Mervyns Promote share
Fund I 20.00% 22.22% FULL I 20.00% 22.22%
----------------------------------------------------------
PROPERTY REVENUES
Minimum rents $ 5,086 $1,017 $ 904 $1,122 $ - $ - $ -
Percentage rents - - - - - - -
Expense reimbursements - CAM 85 17 15 24 - - -
Expense reimbursements - Taxes 114 23 20 27 - - -
Other property income 95 19 17 33 - - -
-------- -----------------------------------------------
5,380 1,076 956 1,206 - - -
-------- -----------------------------------------------
PROPERTY EXPENSES
Property operating - CAM 220 44 39 54 - - -
Other property operating 79 16 14 19 5 1 1
Real estate taxes 194 39 34 42 - - -
-------- -----------------------------------------------
493 99 88 115 5 1 1
-------- -----------------------------------------------
NET OPERATING INCOME - PROPERTIES (3) 4,887 977 869 1,092 (5) (1) (1)
OTHER INCOME (EXPENSE)
General and administrative (58) (12) (10) (11) - - -
Equity in earnings of unconsolidated properties 3,433 (4) 570 610 299 - - -
Equity in earnings from RCP investments - - - - 6,444 1,288 1,146
Interest income 130 26 23 38 3 - 1
Asset and property management income - - - - - - -
Promote income - Fund Transactions - 117 - - - - -
Promote income - RCP - - - - - - -
Priority distributions - - - - - - -
Promote expense (2,131) - - - (1,288) - -
Asset and property management expense (4) (1) (1) (1) - - -
Straight-line rent income (158) (32) (28) (36) - - -
Straight-line rents written off - - - - - - -
FAS 141 Rent (22) (4) (4) (7) - - -
Provision for income taxes (17) (3) (3) (4) (3) 0 (1)
Lease termination income - - - - - - -
----------------------------------------------------------
EBIDTA 6,060 1,638 1,456 1,370 5,151 1,287 1,145
Depreciation and amortization (3,084) (617) (548) (677) - - -
FAS 141 Amortization (7) (1) (1) (2) - - -
Interest expense (549) (110) (98) (124) - - -
Loan defeasance - - - - - - -
FAS 141 Interest - - - - - - -
Gain (loss) on sale of properties - - - - - - -
-------- -----------------------------------------------
Income before minority interest 2,420 910 809 567 5,151 1,287 1,145
Minority interest - OP - - - - - - -
Minority interest (279) (56) (50) (65) - - -
-------- -----------------------------------------------
NET INCOME $ 2,141 $ 854 $ 759 $ 502 $ 5,151 $1,287 $1,145
======== ===============================================
AKR AKR
Pro- Pro- AKR Pro- Total
rata rata rata AKR Pro-
share Mervyns share share rata
Fund II 20.00% II 20.00%Fund III 19.9005% share
-------------------------------------------------------
PROPERTY REVENUES
Minimum rents $ 4,601 $ 920 $ - $ - $ 3,642 $ 725 $ 4,688
Percentage rents - - - - - - -
Expense reimbursements - CAM 346 69 - - 10 2 127
Expense reimbursements - Taxes 26 5 - - 2 - 75
Other property income (6) (1) - - 243 49 117
-------------------------------------------------------
4,967 993 - - 3,897 776 5,008
-------------------------------------------------------
PROPERTY EXPENSES
Property operating - CAM 929 186 - - 22 4 327
Other property operating 1,983 397 5 1 1,039 207 656
Real estate taxes 790 158 - - 417 83 357
-------------------------------------------------------
3,702 741 5 1 1,478 294 1,339
-------------------------------------------------------
NET OPERATING INCOME - PROPERTIES (3) 1,265 252 (5) (1) 2,419 482 3,669
OTHER INCOME (EXPENSE)
General and administrative (152) (30) (1) - (558) (111) (174)
Equity in earnings of unconsolidated properties (147) (29) - - - - 1,450
Equity in earnings from RCP investments - - 7,931 1,587 - - 4,021
Interest income 95 19 71 14 266 53 174
Asset and property management income - - - - - - -
Promote income - Fund Transactions - - - - - - 117
Promote income - RCP - - - - - - -
Priority distributions - - - - - - -
Promote expense - - - - - - -
Asset and property management expense (2,449) - - - (3,971) - (3)
Straight-line rent income 2,128 426 - - 20 4 335
Straight-line rents written off - - - - - - -
FAS 141 Rent (130) (26) - - 41 9 (32)
Provision for income taxes 17 4 (4) (1) (1) - (8)
Lease termination income 24,500 4,900 - - - - 4,900
-------------------------------------------------------
EBIDTA 25,127 5,516 7,992 1,599 (1,784) 437 14,448
Depreciation and amortization (1,606) (322) - - (984) (196) (2,360)
FAS 141 Amortization (138) (28) - - (5) (1) (34)
Interest expense (2,007) (401) - - (1,857) (370) (1,102)
Loan defeasance - - - - - - -
FAS 141 Interest - - - - - - -
Gain (loss) on sale of properties - - - - - - -
-------------------------------------------------------
Income before minority interest 21,376 4,765 7,992 1,599 (4,630) (130) 10,952
Minority interest - OP - - - - - - -
Minority interest (1,748) (349) - - (2) (1) (520)
-------------------------------------------------------
NET INCOME $19,628 $4,416 $7,992 $1,599 $(4,632)$ (131)$10,432
=======================================================
(1) Quarterly results are unaudited, although they reflect all adjustments,
which in the opinion of management, are necessary for a fair presentation
of operating results for the interim periods.
The Company's investments in consolidated and unconsolidated joint ventures
are reflected separately for revenues and expenses by calculating it's
pro-rata share for each of the above line items.
In total, net income agrees with net income as reported in the Company's
Form 10Q's and 10K for the corresponding periods. The Company currently
invests in Funds I. II & III and Mervyn's which are consolidated with the
Company's financial statements.
(2) Funds I, II & III and the Mervyn's investments pay various fees to the
Company. As it is the recipient of such fees, the Company does not
recognize its pro-rata share of these expenses.
(3) Includes majority-owned affiliates of which the minority share of NOI for
the Kroger/Safeway Portfolio amounts to $1,390 on an annual basis ($7,363 x
37.78% x 50%).
(4) Includes a $3,307 gain related to the sale of the Haygood Shopping Center.
Page 11
Current Quarter
Period
ended June 30, 2008
AKR
Brandywine
AKR Promote AKR AKR AKR Total
Pro- (3) Pro- Pro- Pro- AKR Pro- AKR
AKR rata PAID IN AKR rata rata rata rata Pro-
Total Promote share FULL Mervyns Promote share share Mervyns share share rata
Fund I 20.00%22.22% $324 I 20.00%22.22%Fund II20.00% II 20.00%Fund III19.9005% share
---------------------------------------------------------------------------------------------------------
PROPERTY
REVENUES
Minimum rents $2,515 $503 $447 $216 $- $- $- $2,251 $450 $- $- $2,386 $475 $2,091
Percentage
rents - - - - - - - - - - - - - -
Expense
reimbursements
- CAM 23 5 4 2 - - - 240 48 - - 5 1 60
Expense
reimbursements
- Taxes 49 10 9 4 - - - 19 4 - - 1 - 27
Other property
income 2 0 0 0 - - - (15) (3) - - 150 30 28
------- -------------------------------------------------------- ------------------------------------
2,589 518 460 222 - - - 2,495 499 - - 2,542 506 2,205
------- -------------------------------------------------------- ------------------------------------
PROPERTY
EXPENSES
Property
operating -
CAM 89 18 16 8 - - - 424 85 - - 10 2 128
Other property
operating 33 7 6 3 5 1 1 1,598 320 5 1 683 136 474
Real estate
taxes 98 20 17 8 - - - 550 110 - - 275 55 210
------- -------------------------------------------------------- ------------------------------------
220 44 39 19 5 1 1 2,572 515 5 1 968 193 813
------- -------------------------------------------------------- ------------------------------------
NET OPERATING
INCOME -
PROPERTIES (4) 2,369 474 421 204 (5) (1) (1) (77) (16) (5) (1) 1,574 313 1,393
OTHER INCOME
(EXPENSE)
General and
administrative (34) (7) (6) (3) - - - (117) (23) (1) - (154) (31) (70)
Equity in
earnings of
unconsolidated
properties 3,416(5) 566 607 293 - - - - - - - - - 1,467
Equity in
earnings from
RCP
investments - - - - 486 96 87 - - 563 113 - - 296
Interest income 32 6 6 3 - - - 18 4 2 - 4 1 20
Asset and
property
management
income - - - - - - - - - - - - - -
Promote income
- Fund
Transactions - 117 - - - - - - - - - - - 117
Promote income
- RCP - - - - - - - - - - - - - -
Priority
distributions - - - - - - - - - - - - - -
Promote expense(2,074) - - - (96) - - - - - - - - -
Asset and
property
management
expense(2) (2) (0) (0) (0) - - -(1,217) - - - (2,002) - (1)
Straight-line
rent income (76) (15) (14) (7) - - - 2,020 404 - - 10 2 371
Straight-line
rents written
off - - - - - - - - - - - - - -
FAS 141 Rent (2) (0) (0) (0) - - - (65) (13) - - 23 5 (9)
Provision for
income taxes (5) (1) (1) (0) (3) 0 (1) 18 4 (4) (1) - - 0
Lease
termination
income - - - - - - - 24,500 4,900 - - - - 4,900
------- -------------------------------------------------------- ------------------------------------
EBIDTA 3,624 1,140 1,013 490 382 96 85 25,080 5,260 555 111 (545) 290 8,484
Depreciation
and
amortization (1,538) (308) (273) (132) - - - (888) (178) - - (643) (128)(1,019)
FAS 141
Amortization (1) (0) (0) (0) - - - (69) (14) - - (5) (1) (15)
Interest
expense (262) (52) (47) (23) - - -(1,112) (222) - - (1,195) (238) (581)
Loan defeasance - - - - - - - - - - - - - -
FAS 141
Interest - - - - - - - - - - - - - -
Gain (loss) on
sale of
properties - - - - - - - - - - - - - -
------- -------------------------------------------------------- ------------------------------------
Income before
minority
interest 1,823 779 693 335 382 96 85 23,011 4,846 555 111 (2,388) (77) 6,868
Minority
interest - OP - - - - - - - - - - - - - -
Minority
interest (126) (25) (22) (11) - - -(1,831) (366)(6) - - 1 - (424)
------- -------------------------------------------------------- ------------------------------------
NET INCOME $1,697 $754 $670 $324 $382 $96 $85$21,180$4,480 $555 $111$(2,387) $(77) $6,443
======= ======================================================== ====================================
(1) Quarterly results are unaudited, although they reflect all adjustments,
which in the opinion of management, are necessary for a fair presentation
of operating results for the interim periods.
The Company's investments in consolidated and unconsolidated joint ventures
are reflected separately for revenues and expenses by calculating it's
pro-rata share for each of the above line items.
In total, net income agrees with net income as reported in the Company's
Form 10Q's and 10K for the corresponding periods. The Company currently
invests in Funds I. II & III and Mervyn's which are consolidated with the
Company's financial statements.
(2) Funds I, II & III and the Mervyn's investments pay various fees to the
Company. As it is the recipient of such fees, the Company does not
recognize its pro-rata share of these expenses.
(3) In connection with the recapitalization of the Brandywine Portfolio in
January 2006, the investors received all of their Fund capital and
preferred return. Accordingly, the Company is now entitled to a promote
distribution on all future Fund I income and distributions. In addition,
the Company is entitled to a promote payment of $7.2 million for the
Brandywine transaction to be paid from the investors share of future Fund I
earnings.The remaining $0.3 million of the $7.2 million promote was paid in
the three months ended June 30, 2008.
(4) Includes majority-owned affiliates of which the minority share of NOI for
the Kroger/Safeway Portfolio amounts to $695 for the second quarter ($7,363
x 37.78% x 100%).
(5) Includes a $3,307 gain related to the sale of the Haygood Shopping Center.
(6) Reflects the minority interest's share of the $4.9 million lease
termination income.
Page 12
Previous Quarter
Period
ended March 31, 2008
AKR AKR AKR AKR
AKR Pro- AKR AKR Pro- Pro- Pro- AKR Pro- Total
rata rata rata rata rata AKR
Total Promote shareBrandywine Promote share share share share Pro-
Promote Mervyns Mervyns rata
Fund I 20.00%22.22% (3) I 20.00% 22.22%Fund II 20.00% II 20.00%Fund III19.9005% share
------------------------------------------------------------------------------------------------------
PROPERTY REVENUES
Minimum rents $2,571 $514 $457 $906 $- $- $- $2,350 $470 $- $- $1,256 $250 $2,597
Percentage rents - - - - - - - - - - - - - -
Expense
reimbursements -
CAM 62 12 11 22 - - - 106 21 - - 5 1 67
Expense
reimbursements -
Taxes 65 13 12 23 - - - 7 1 - - 1 - 49
Other property
income 93 19 17 33 - - - 9 2 - - 93 19 89
------------------------------------------------------------------------------------------------------
2,791 558 496 984 - - - 2,472 494 - - 1,355 270 2,802
------------------------------------------------------------------------------------------------------
PROPERTY EXPENSES
Property operating
- CAM 131 26 23 46 - - - 505 101 - - 12 2 198
Other property
operating 46 9 8 16 - - - 385 77 - - 356 71 181
Real estate taxes 96 19 17 34 - - - 240 48 - - 142 28 146
------------------------------------------------------------------------------------------------------
273 55 49 96 - - - 1,130 226 - - 510 101 526
------------------------------------------------------------------------------------------------------
NET OPERATING
INCOME -
PROPERTIES (4) 2,518 504 448 888 - - - 1,342 268 - - 845 169 2,276
OTHER INCOME
(EXPENSE)
General and
administrative (24) (5) (4) (8) - - - (35) (7) - - (404) (80) (104)
Equity in earnings
of unconsolidated
properties 17 3 3 6 - - - (147) (29) - - - - (17)
Equity in earnings
from RCP
investments - - - - 5,958 1,192 1,059 - - 7,368 1,474 - - 3,725
Interest income 98 20 17 35 3 - 1 77 15 69 14 262 52 154
Asset and property
management income - - - - - - - - - - - - - -
Promote income -
Fund Transactions - - - - - - - - - - - - - -
Promote income -
RCP - - - - - - - - - - - - - -
Priority
distributions - - - - - - - - - - - - - -
Promote expense (57) - - - (1,192) - - - - - - - - -
Asset and property
management
expense(2) (2) (0) (0) (1) - - - (1,232) - - - (1,969) - (2)
Straight-line rent
income (82) (16) (15) (29) - - - 108 22 - - 10 2 (36)
Straight-line
rents written off - - - - - - - - - - - - - -
FAS 141 Rent (20) (4) (4) (7) - - - (65) (13) - - 18 4 (24)
Provision for
income taxes (12) (2) (2) (4) - - - (1) - - - (1) - (9)
Lease termination
income - - - - - - - - - - - - - -
------------------------------------------------------------------------------------------------------
EBIDTA 2,436 499 443 880 4,769 1,192 1,060 47 256 7,437 1,488 (1,239) 147 5,964
Depreciation and
amortization (3) (1,546) (309) (275) (545) - - - (718) (144) - - (341) (68)(1,341)
FAS 141
Amortization (6) (1) (1) (2) - - - (69) (14) - - - - (18)
Interest expense (287) (57) (51) (101) - - - (895) (179) - - (662) (132) (520)
Loan defeasance - - - - - - - - - - - - - -
FAS 141 Interest - - - - - - - - - - - - - -
Gain (loss) on
sale of
properties - - - - - - - - - - - - - -
------------------------------------------------------------------------------------------------------
Income before
minority interest 597 131 116 232 4,769 1,192 1,060 (1,635) (81) 7,437 1,488 (2,242) (53) 4,084
Minority interest
- OP - - - - - - - - - - - - - -
Minority interest (153) (31) (27) (54) - - - 83 17 - - (3) (1) (96)
------------------------------------------------------------------------------------------------------
NET INCOME $444 $100 $89 $178 $4,769 $1,192 $1,060 $(1,552) $(64) $7,437$1,488 $(2,245) $(54)$3,989
======================================================================================================
(1) Quarterly results are unaudited, although they reflect all adjustments,
which in the opinion of management, are necessary for a fair presentation
of operating results for the interim periods.
The Company's investments in consolidated and unconsolidated joint ventures
are reflected separately for revenues and expenses by calculating it's
pro-rata share for each of the above line items.
In total, net income agrees with net income as reported in the Company's
Form 10Q's and 10K for the corresponding periods. The Company currently
invests in Funds I. II & III and Mervyn's which are consolidated with the
Company's financial statements.
(2) Funds I, II & III and the Mervyn's investments pay various fees to the
Company. As it is the recipient of such fees, the Company does not
recognize its pro-rata share of these expenses.
(3) In connection with the recapitalization of the Brandywine Portfolio in
January 2006, the investors received all of their Fund capital and
preferred return. Accordingly, the Company is now entitled to a promote
distribution on all future Fund I income and distributions. In addition,
the Company is entitled to a promote payment of $7.2 million for the
Brandywine transaction to be paid from the investors share of future Fund I
earnings.
(4) Includes majority-owned affiliates of which the minority share of NOI for
the Kroger/Safeway Portfolio amounts to $695 for the first quarter ($7,363
x 37.78% x 100%).
Page 13
Reporting Supplement
June 30, 2008
Income Statements - Joint Ventures (1)
- --------------------------------------
Current Quarter and Year-to-Date
--------------------------------
(in thousands)
Year-to-Date
Period
Ended June 30,
2008
-------------------------------------------
Joint Ventures - Core Retail
-------------------------------------------
AKR
AKR Pro- Pro- Total
rata rata
share share AKR Pro-
rata
Brandywine 22.22%Crossroads 49.00% share
-------------------------------------------
PROPERTY REVENUES
Minimum rents $ 7,984 $ 1,776 $ 2,784 $1,365 $ 3,143
Percentage rents 132 29 - - 29
Expense reimbursements -
CAM 1,078 240 353 173 413
Expense reimbursements -
Taxes 490 109 806 395 504
Other property income 55 12 20 9 21
-------------------------------------------
9,739 2,166 3,963 1,942 4,110
-------------------------------------------
PROPERTY EXPENSES
Property operating - CAM 1,338 298 368 181 479
Other property operating 615 137 229 112 249
Real estate taxes 555 124 949 465 589
-------------------------------------------
2,508 559 1,546 758 1,317
-------------------------------------------
NET OPERATING INCOME -
PROPERTIES 7,231 1,607 2,417 1,184 2,793
OTHER INCOME (EXPENSE)
General and administrative - - - - -
Equity in earnings of
unconsolidated properties - - - - -
Equity in earnings from
RCP investments - - - - -
Interest income 34 7 15 7 14
Asset and property
management income - - - - -
Promote income - - - - -
Priority distributions - - - - -
Promote expense - - - - -
Asset and property
management expense(2) (501) - - - -
Straight-line rent income 341 75 (32) (15) 60
Straight-line rents
written off (44) (10) (105) (51) (61)
FAS 141 Rent 310 68 - - 68
Provision for income taxes - - - - -
Swap termination income - - - - -
-------------------------------------------
EBIDTA 7,371 1,747 2,295 1,125 2,874
Depreciation and
amortization (2) (2,128) (473) (407) (396) (869)
FAS 141 Amortization - - - - -
Interest expense (5,038) (1,034) (1,729) (847) (1,881)
Loan defeasance - - - - -
FAS 141 Interest - - - - -
Gain (loss) on sale of
properties - - - - -
-------------------------------------------
Income before minority
interest 205 240 159 (118) 124
Minority interest - OP - - - - -
Minority interest - - - - -
-------------------------------------------
NET INCOME $ 205 $ 240 $ 159 $ (118)$ 124
===========================================
(1) The Company has a 22.2% interest in the Brandywine Portfolio and a 49%
interest in the Crossroads Shopping Center ("Crossroads") which are
accounted for as unconsolidated investments in the Company's financial
statements.
(2) In addition to its pro-rata share of depreciation, the Company recognizes
depreciation on its stepped-up basis in Crossroads.
Current Quarter
3 months
Ended June 30,
2008
-----------------------------------------
Joint Ventures - Core Retail
------------------------------------------
AKR AKR Total
Pro- Pro-
rata rata AKR
share share Pro-
Brandywine rata
JV 22.22%Crossroads 49.00% share
------------------------------------------
PROPERTY REVENUES
Minimum rents 3,941 $ 876 $1,336 $ 655 $1,532
Percentage rents 19 4 - - 4
Expense reimbursements - CAM 421 94 134 66 160
Expense reimbursements -
Taxes 242 54 426 209 263
Other property income - - 3 1 1
-----------------------------------------
4,623 1,028 1,899 931 1,960
-----------------------------------------
PROPERTY EXPENSES
Property operating - CAM 574 128 146 72 200
Other property operating 224 50 213 104 154
Real estate taxes 278 62 494 242 304
-----------------------------------------
1,076 240 853 418 658
-----------------------------------------
NET OPERATING INCOME -
PROPERTIES 3,547 788 1,046 513 1,302
`
OTHER INCOME (EXPENSE)
General and administrative - - - - -
Equity in earnings of
unconsolidated properties - - - - -
Equity in earnings from RCP
investments - - - - -
Interest income 11 2 6 3 5
Asset and property
management income - - - - -
Promote income - - - - -
Priority distributions - - - - -
Promote expense - - - - -
Asset and property
management expense(2) (246) - - - -
Straight-line rent income 195 43 (21) (10) 33
Straight-line rents written
off - - - - -
FAS 141 Rent 155 34 - - 34
Provision for income taxes - - - - -
Swap termination income - - - - -
-----------------------------------------
EBIDTA 3,662 867 1,031 506 1,374
Depreciation and
amortization (2) (978) (217) (136) (165) (382)
FAS 141 Amortization - - - - -
Interest expense (2,519) (517) (863) (423) (940)
Loan defeasance - - - - -
FAS 141 Interest - - - - -
Gain (loss) on sale of
properties - - - - -
-----------------------------------------
Income before minority
interest 165 133 32 (82) 52
Minority interest - OP - - - - -
Minority interest - - - - -
-----------------------------------------
NET INCOME $ 165 $ 133 $ 32 $ (82)$ 52
=========================================
(1) The Company has a 22.2% interest in the Brandywine Portfolio and a 49%
interest in the Crossroads Shopping Center ("Crossroads") which are
accounted for as unconsolidated investments in the Company's financial
statements.
(2) In addition to its pro-rata share of depreciation, the Company recognizes
depreciation on its stepped-up basis in Crossroads.
Page 14
Previous Quarter
3 months
Ended March 31,
2008
-----------------------------------------
Joint Ventures - Core Retail
------------------------------------------
AKR AKR Total
Pro- Pro-
rata rata AKR
share share Pro-
Brandywine Crossroads rata
JV 22.22% 49.00% share
------------------------------------------
PROPERTY REVENUES
Minimum rents 4,043 $ 900 $1,448 $ 710 $1,611
Percentage rents 113 25 - - 25
Expense reimbursements - CAM 657 146 219 107 253
Expense reimbursements -
Taxes 248 55 380 186 241
Other property income 55 12 17 8 20
-----------------------------------------
5,116 1,138 2,064 1,011 2,150
-----------------------------------------
PROPERTY EXPENSES
Property operating - CAM 764 170 222 109 279
Other property operating 391 87 16 8 95
Real estate taxes 277 62 455 223 285
-----------------------------------------
1,432 319 693 340 659
-----------------------------------------
NET OPERATING INCOME -
PROPERTIES 3,684 819 1,371 671 1,491
`
OTHER INCOME (EXPENSE)
General and administrative - - - - -
Equity in earnings of
unconsolidated properties - - - - -
Equity in earnings from RCP
investments - - - - -
Interest income 23 5 9 4 9
Asset and property
management income - - - - -
Promote income - - - - -
Priority distributions - - - - -
Promote expense - - - - -
Asset and property
management expense(2) (255) - - - -
Straight-line rent income 146 32 (11) (5) 27
Straight-line rents written
off (44) (10) (105) (51) (61)
FAS 141 Rent 155 34 - - 34
Provision for income taxes - - - - -
Swap termination income - - - - -
-----------------------------------------
EBIDTA 3,709 880 1,264 619 1,500
Depreciation and
amortization (2) (1,150) (256) (271) (231) (487)
FAS 141 Amortization - - - - -
Interest expense (2,519) (517) (866) (424) (941)
Loan defeasance - - - - -
FAS 141 Interest - - - - -
Gain (loss) on sale of
properties - - - - -
-----------------------------------------
Income before minority
interest 40 107 127 (36) 72
Minority interest - OP - - - - -
Minority interest - - - - -
-----------------------------------------
NET INCOME $ 40 $ 107 $ 127 $ (36)$ 72
=========================================
(1) The Company has a 22.2% interest in the Brandywine Portfolio and a 49%
interest in the Crossroads Shopping Center ("Crossroads") which are
accounted for as unconsolidated investments in the Company's financial
statements.
(2) In addition to its pro-rata share of depreciation, the Company recognizes
depreciation on its stepped-up basis in Crossroads.
Page 15
Reporting Supplement
June 30, 2008
Income Statements - Current v. Prior Year (1)
- ---------------------------------------------
(in thousands)
Current Quarter
3 months
ended June 30,
2008
--------------------------------------------------------
Core
Retail Residential
Core Discontinued Opportunity Discontinued
Retail Operations Funds Operations Total
--------------------------------------------------------
PROPERTY REVENUES
Minimum rents $ 13,018 $1,040 $ 2,091 $ 285 $ 16,434
Percentage rents 25 37 - - 62
Expense reimbursements - CAM 1,314 208 60 - 1,582
Expense reimbursements - Taxes 1,906 155 27 - 2,088
Other property income 32 7 28 34 101
--------------------------------------------------------
16,295 1,447 2,205 319 20,266
--------------------------------------------------------
PROPERTY EXPENSES
Property operating - CAM 1,591 267 128 - 1,986
Other property operating 660 146 474 215 1,495
Real estate taxes 2,400 186 210 15 2,811
--------------------------------------------------------
4,651 599 813 230 6,293
--------------------------------------------------------
NET OPERATING INCOME -
PROPERTIES 11,644 848 1,393 89 13,974
OTHER INCOME (EXPENSE)
General and administrative (6,572) - (70) - (6,642)
Equity in earnings of Fund I
unconsolidated properties - - 1,467 - 1,467
Equity in earnings from RCP
investments - - 200 - 200
Interest income 1,830 - 20 3 1,853
Fee income 4,978 - - - 4,978
Promote income - Fund capital
transactions 1,044 - 117 - 1,161
Promote income - RCP - - 96 - 96
Priority distributions 118 - - - 118
Promote expense - - - - -
Property management expense (32) - (1) (9) (42)
Straight-line rent income 271 2 371 - 644
Straight-line rents written
off - - - - -
FAS 141 Rent (92) - (9) - (101)
Abandoned project costs - - - - -
Provision for income taxes (349) - 0 - (349)
Leae termination income - - 4,900 - 4,900
--------------------------------------------------------
EBIDTA 12,840 850 8,484 83 22,257
Depreciation and amortization (4,385) (82) (1,019) - (5,486)
FAS 141 Amortization (239) - (15) - (254)
Interest expense (5,195) - (581) - (5,776)
Loan defeasance - - - - -
FAS 141 Interest 20 - - - 20
Gain (loss) on sale of
properties 763 - - 7,182 7,945
--------------------------------------------------------
Income before minority
interest 3,804 768 6,868 7,265 18,705
Minority interest - OP (205) (15) - (142) (362)
Minority interest (7) - (424) - (431)
--------------------------------------------------------
NET INCOME $ 3,592 $ 753 $ 6,443 $7,123 $ 17,911
========================================================
Prior Year Quarter
3 months
ended June 30,
2007
-----------------------------------------------------------------------
Core Opportunity
Retail Funds Residential
Core Discontinued Opportunity Discontinued Discontinued
Retail Operations Funds Operations Operations Total
-----------------------------------------------------------------------
PROPERTY REVENUES
Minimum rents $ 12,463 $1,077 $ 2,695 $ 518 $1,813 $ 18,566
Percentage rents 113 37 3 - - 153
Expense reimbursements - CAM 887 184 75 51 - 1,197
Expense reimbursements - Taxes 1,739 168 80 48 - 2,035
Other property income 56 7 11 19 145 238
-----------------------------------------------------------------------
15,258 1,473 2,864 636 1,958 22,189
-----------------------------------------------------------------------
PROPERTY EXPENSES
Property operating - CAM 1,564 260 162 132 - 2,118
Other property operating 163 97 114 8 1,053 1,435
Real estate taxes 2,065 202 119 78 95 2,559
-----------------------------------------------------------------------
3,792 559 395 218 1,148 6,112
-----------------------------------------------------------------------
NET OPERATING INCOME -
PROPERTIES 11,466 914 2,469 418 810 16,077
OTHER INCOME (EXPENSE)
General and administrative (6,036) - (57) - - (6,093)
Equity in earnings of Fund I
unconsolidated properties - - (154) - - (154)
Equity in earnings from RCP
investments - - 928 - - 928
Interest income 2,103 5 126 - 5 2,239
Fee income 3,294 - - - - 3,294
Promote income - Fund capital
transactions - - - - - -
Promote income - RCP - - - - - -
Priority distributions - - - - - -
Promote expense - - - - - -
Property management expense (32) - 27 (29) (41) (75)
Straight-line rent income 334 3 251 17 - 605
Straight-line rents written
off (61) - - - - (61)
FAS 141 Rent (202) - (19) - - (221)
Abandoned project costs - - (2) - (2)
Provision for income taxes (383) - - - - (383)
Leae termination income - - - - - -
-----------------------------------------------------------------------
EBIDTA 10,483 922 3,569 406 774 16,154
Depreciation and amortization (3,756) (444) (1,712) (88) (369) (6,369)
FAS 141 Amortization (316) (16) - - (332)
Interest expense (5,217) (7) (524) (226) (297) (6,271)
Loan defeasance - - - - -
FAS 141 Interest 7 - 15 - 22
Gain (loss) on sale of
properties - - - - - -
-----------------------------------------------------------------------
Income before minority
interest 1,201 471 1,317 107 108 3,204
Minority interest - OP (46) (9) (22) (3) (2) (82)
Minority interest 1 - (89) - - (88)
-----------------------------------------------------------------------
NET INCOME $ 1,156 $ 462 $ 1,206 $ 104 $ 106 $ 3,034
=======================================================================
(1) Quarterly results are unaudited, although they reflect all adjustments,
which in the opinion of management, are necessary for a fair presentation
of operating results for the interim periods. The Company's investments in
consolidated and unconsolidated joint ventures are reflected separately for
revenues and expenses by calculating it's pro-rata share for each of
the above line items.
In total, net income agrees with net income as reported in the Company's
Form 10Q's and 10K for the corresponding periods. The Company currently
invests in Funds I, II & III and Mervyn's which are consolidated with the
Company's financial statements. The Company also has a 22.2% investment in
the Brandywine Portfolio and has a 49% JV interest in the Crossroads
Shopping Center ("Crossroads") which are accounted for as unconsolidated
investments in the Company's financial statements.
Page 16
Reporting Supplement
June 30, 2008
Income Statements - Current v. Prior Year (1)
- ---------------------------------------------
(in thousands)
Current Year-to-Date
Period
ended June 30,
2008
----------------------------------------------------------
Core
Retail Residential
Core Discontinued Opportunity Discontinued
Retail Operations Funds Operations Total
----------------------------------------------------------
PROPERTY REVENUES
Minimum rents $ 25,937 $2,344 $ 4,688 $1,203 $ 34,172
Percentage rents 211 56 - - 267
Expense reimbursements - CAM 3,431 510 127 - 4,068
Expense reimbursements -
Taxes 4,037 310 75 - 4,422
Other property income 145 35 117 109 406
----------------------------------------------------------
33,761 3,255 5,008 1,312 43,336
----------------------------------------------------------
PROPERTY EXPENSES
Property operating - CAM 4,029 646 327 - 5,002
Other property operating 1,160 426 656 631 2,873
Real estate taxes 4,781 372 357 65 5,575
----------------------------------------------------------
9,970 1,444 1,339 696 13,449
----------------------------------------------------------
NET OPERATING INCOME -
PROPERTIES 23,791 1,811 3,669 616 29,887
OTHER INCOME (EXPENSE)
General and administrative (13,180) - (174) - (13,354)
Equity in earnings of Fund I
unconsolidated properties 21 - 1,450 - 1,471
Equity in earnings from RCP
investments - - 2,733 - 2,733
Interest income 4,125 - 174 11 4,310
Fee income 11,694 - - - 11,694
Promote income - Fund capital
transactions 1,044 - 117 - 1,161
Promote income - RCP - - 1,287 - 1,287
Priority distributions 253 - - - 253
Promote expense - - - - -
Property management expense (64) - (3) (23) (90)
Straight-line rent income 548 5 335 - 888
Straight-line rents written
off (61) - - - (61)
FAS 141 Rent (170) - (32) - (202)
Abandoned project costs - - - - -
Provision for income taxes (2,192) - (8) - (2,200)
Leae termination income - - 4,900 - 4,900
----------------------------------------------------------
EBIDTA 25,809 1,816 14,448 604 42,677
Depreciation and amortization (8,448) (192) (2,360) - (11,000)
FAS 141 Amortization (494) - (34) - (528)
Interest expense (10,400) - (1,102) - (11,502)
Loan defeasance - - - - -
FAS 141 Interest 40 - - - 40
Gain (loss) on sale of
properties 763 - - 7,182 7,945
----------------------------------------------------------
Income before minority
interest 7,270 1,624 10,952 7,786 27,632
Minority interest - OP (359) (32) - (152) (543)
Minority interest 85 - (520) - (435)
----------------------------------------------------------
NET INCOME $ 6,996 $1,592 $ 10,432 $7,634 $ 26,654
==========================================================
Prior Year-to-Date
Period
ended June 30,
2007
-----------------------------------------------------------------------
Core Opportunity
Retail Funds Residential
Core Discontinued Opportunity Discontinued Discontinued
Retail Operations Funds Operations Operations Total
-----------------------------------------------------------------------
PROPERTY REVENUES
Minimum rents $ 24,339 $2,153 $ 5,430 $1,026 $3,601 $ 36,549
Percentage rents 241 79 3 - - 323
Expense reimbursements - CAM 2,404 457 136 110 - 3,107
Expense reimbursements -
Taxes 3,638 228 1 108 - 3,975
Other property income 134 12 16 19 280 461
-----------------------------------------------------------------------
30,756 2,929 5,586 1,263 3,881 44,415
-----------------------------------------------------------------------
PROPERTY EXPENSES
Property operating - CAM 3,917 616 330 170 - 5,033
Other property operating 785 109 235 12 1,934 3,075
Real estate taxes 4,082 270 113 143 177 4,785
-----------------------------------------------------------------------
8,784 995 678 325 2,111 12,893
-----------------------------------------------------------------------
NET OPERATING INCOME -
PROPERTIES 21,972 1,934 4,908 938 1,770 31,522
OTHER INCOME (EXPENSE)
General and administrative (11,472) - (141) - - (11,613)
Equity in earnings of Fund I
unconsolidated properties - - (165) - - (165)
Equity in earnings from RCP
investments - 5,666 - - 5,666
Interest income 4,924 5 220 - 10 5,159
Fee income 6,329 - - - - 6,329
Promote income - Fund capital
transactions - - - - -
Promote income - RCP - - - - -
Priority distributions - - - - -
Promote expense - - - - - -
Property management expense (63) - 51 (55) (84) (151)
Straight-line rent income 734 27 504 43 - 1,308
Straight-line rents written
off (146) - - - - (146)
FAS 141 Rent (189) - (50) - - (239)
Abandoned project costs - (15) - (15)
Provision for income taxes (2,261) - - - - (2,261)
Leae termination income 165 - - - - 165
-----------------------------------------------------------------------
EBIDTA 19,993 1,966 10,978 926 1,696 35,559
Depreciation and amortization (7,413) (880) (3,388) (176) (749) (12,606)
FAS 141 Amortization (240) (36) - - (276)
Interest expense (10,246) (38) (1,039) (453) (592) (12,368)
Loan defeasance (426) - - - - (426)
FAS 141 Interest 27 - - 30 - 57
Gain (loss) on sale of
properties - - - - - -
-----------------------------------------------------------------------
Income before minority
interest 1,695 1,048 6,515 327 355 9,940
Minority interest - OP (69) (21) (130) (6) (7) (233)
Minority interest 233 - (187) - - 46
-----------------------------------------------------------------------
NET INCOME $ 1,859 $1,027 $ 6,198 $ 321 $ 348 $ 9,753
=======================================================================
(1) Quarterly results are unaudited, although they reflect all adjustments,
which in the opinion of management, are necessary for a fair presentation
of operating results for the interim periods.
The Company's investments in consolidated and unconsolidated joint ventures
are reflected separately for revenues and expenses by calculating it's
pro-rata share for each of the above line items.
In total, net income agrees with net income as reported in the Company's
Form 10Q's and 10K for the corresponding periods. The Company currently
invests in Funds I, II & III and Mervyn's which are consolidated with the
Company's financial statements. The Company also has a 22.2% investment in
the Brandywine Portfolio and has a 49% JV interest in the Crossroads
Shopping Center ("Crossroads") which are accounted for as unconsolidated
investments in the Company's financial statements.
Page 17
Reporting Supplement
June 30, 2008
Net Operating Income (NOI) - Same Property Performance (1)
- ----------------------------------------------------------
(in thousands)
Reporting Supplement
June 30, 2008
Net Operating Income (NOI) - Same Property Performance (1)
- ------------------------------------------------------------------------------------------------------------------------
(in thousands) Growth in Same
Property NOI -
Continuing
Operations
Notes: Current Historical Favorable
Quarter Quarter (unfavorable)
-----------------------------------------
Three Three
months months
ended ended
Reconciliation of total NOI to same property NOI: June 30, June 30,
2008 2007
------------------
NOI - Core Retail properties $11,644 $11,466
NOI - Opportunity Fund properties 1,393 2,469
NOI - Residential properties - -
NOI - Discontinued Operations 937 2,142
Adjustment to reflect 2006 increase in Fund I ownership percentage (2) (204) (1,375)
------------------
Total NOI 13,770 14,702
NOI - Properties Acquired (147) (2)
NOI - Discontinued Operations (937) (2,142)
------------------
$12,686 $12,558 1.0%
================================
Same property NOI by portfolio component and revenues/expenses:
Core Retail Properties
Revenues $16,163 $15,255 6.0%
Expenses 4,523 3,727 -21.4%
--------------------------------
11,640 11,528 1.0%
--------------------------------
Opportunity Fund Properties
Revenues 1,348 1,275 5.7%
Expenses 302 245 -23.3%
--------------------------------
1,046 1,030 1.5%
--------------------------------
Total Core Retail and Opportunity Funds NOI $12,686 $12,558 1.0%
================================
Reporting Supplement
June 30, 2008
Net Operating Income (NOI) - Same Property Performance (1)
- ------------------------------------------------------------------------------------------------------------------------
(in thousands) Growth in Same
Property NOI -
CurrentHistorical Continuing
Operations
Notes: Year- Year-to- Favorable
to- Date (unfavorable)
Date
---------------------------------------
Six Six
months months
ended ended
Reconciliation of total NOI to same property NOI: June June 30,
30,
2008 2007
-----------------
NOI - Core Retail properties $23,791 $21,972
NOI - Opportunity Fund properties 3,669 4,908
NOI - Residential properties - -
NOI - Discontinued Operations 2,427 4,642
Adjustment to reflect 2006 increase in Fund I ownership percentage (2)(1,092) (2,736)
-----------------
Total NOI 28,795 28,786
NOI - Properties Acquired (1,216) 24
NOI - Discontinued Operations (2,427) (4,642)
-----------------
$25,152 $24,168 4.1%
===============================
Same property NOI by portfolio component and revenues/expenses:
Core Retail Properties
Revenues$32,557 $30,631 6.3%
Expenses 9,574 8,518 -12.4%
-------------------------------
22,983 22,113 3.9%
-------------------------------
Opportunity Fund Properties
Revenues 2,690 2,444 10.1%
Expenses 521 388 -34.3%
-------------------------------
2,169 2,056 5.5%
-------------------------------
Total Core Retail and Opportunity Funds NOI 25,152 24,169 4.1%
-----------------
(1) The above amounts includes the pro-rata activity related to the Company's
consolidated and unconsolidated joint ventures.
(2) As a result of the recapitalization of the Brandywine Portfolio which
enabled the Fund I investors to receive all of their invested capital and
preferred return, the Company is entitled to receive a 20% promote
interest. Accordingly, Acadia's effective ownership interest is now 38%
[20% + (80% x 22%)].
The Company is entitled to $7.2 million Promote on future Fund I earnings
and currently receives 100% of Fund I income until it has been repaid. The
balance was repaid in the second quarter of 2008 and the Company's share
returns to 38%. 2008 and 2007 NOI from Fund I has been adjusted from 100%
down to 38% for comparability.
Page 18
Reporting Supplement
June 30, 2008
Funds from Operations ("FFO") (1)
---------------------------------
2008 2007
---------------------------- ------------------------
Current Current Prior Historic Historic
Year-to- Year-to-
Date Quarter Quarter Date Quarter
Period 3 months 3 months Period 3 months
ended ended ended ended ended
Funds from operations ("FFO"): Notes March
June 30, June 30, 31, June 30, June 30,
2008 2008 2008 2007 2007
- ---------------------------------------------------------------------- --------- --------- -------- ---------- ----------
Net Income $ 26,654 $ 17,911 $ 8,743 $ 9,753 $ 3,034
Add back:
Depreciation of real estate and amortization of leasing costs:
(net of minority interest share)
Consolidated subsidiaries 6,536 2,970 3,566 9,955 5,158
Unconsolidated subsidiaries 884 384 500 988 513
(Gain) loss on sale of properties (net of minority interest share)
Consolidated subsidiaries (7,182) (7,182) -
Unconsolidated subsidiaries (588) (588) -
Income attributable to OP units (2) 441 362 79 228 84
Extraordinary item (net of minority interests' share and income taxes) - - - (2,883) -
Distributions on Preferred OP Units 10 5 5 13 5
--------- --------- -------- ---------- ----------
FFO 26,755 13,862 12,893 18,054 8,794
Extraordinary item (net of minority interests' share and income taxes) (4) - - - 2,883 -
--------- --------- -------- ---------- ----------
FFO - adjusted for extraordinary item (4)$ 26,755 $ 13,862 $12,893 $ 20,937 $ 8,794
========= ========= ======== ========== ==========
Adjusted Funds from operations ("AFFO"):
- ----------------------------------------------------------------------
Diluted FFO $ 26,755 $ 13,862 $12,893 $ 20,937 $ 8,794
Straight line rent, net 888 644 244 (1,308) (605)
Non real estate depreciation 456 229 227 337 173
Amortization of finance costs 564 262 302 822 358
Amortization of cost of management contracts 478 278 200 379 206
Tenant improvements (546) (308) (238) (1,556) (947)
Leasing commissions (266) (140) (126) (290) (211)
Capital expenditures (122) (78) (44) (406) (219)
--------- --------- -------- ---------- ----------
AFFO $ 28,207 $ 14,749 $13,458 $ 18,915 $ 7,549
========= ========= ======== ========== ==========
Funds Available for Distribution ("FAD")
- ----------------------------------------------------------------------
AFFO $ 28,207 $ 14,749 $13,458 $ 18,915 $ 7,549
Scheduled prinicpal repayments (1,390) (679) (711) (1,543) (711)
--------- --------- -------- ---------- ----------
FAD $ 26,817 $ 14,070 $12,747 $ 17,372 $ 6,838
========= ========= ======== ========== ==========
Total weighted average shares and OP Units:
Basic 33,137 33,167 33,106 32,890 32,982
========= ========= ======== ========== ==========
Diluted 33,670 33,737 33,603 33,643 33,601
========= ========= ======== ========== ==========
FFO per share:
FFO per share - Basic (3)$ 0.81 $ 0.42 $ 0.39 $ 0.64 $ 0.27
========= ========= ======== ========== ==========
FFO per share - Diluted (3)$ 0.79 $ 0.41 $ 0.38 $ 0.62 $ 0.26
========= ========= ======== ========== ==========
AFFO per share - Basic (3)$ 0.85 $ 0.44 $ 0.41 $ 0.57 $ 0.23
========= ========= ======== ========== ==========
AFFO per share - Diluted (3)$ 0.84 $ 0.44 $ 0.40 $ 0.56 $ 0.22
========= ========= ======== ========== ==========
FAD per share - Basic (3)$ 0.81 $ 0.42 $ 0.38 $ 0.53 $ 0.21
========= ========= ======== ========== ==========
FAD per share - Diluted (3)$ 0.80 $ 0.42 $ 0.38 $ 0.52 $ 0.20
========= ========= ======== ========== ==========
(1) Quarterly results are unaudited, although they reflect all adjustments,
which in the opinion of management are necessary for a fair presentation of
operating results for the interim periods.
(2) Reflects OP Unitholders interest in OP net income.
(3) Assumes full conversion of O.P. Units into Common Shares. Diluted FFO
assumes conversion of Preferred O.P. Units as well as assumed exercise of
outstanding share options.
Quarterly Preferred OP Unit distributions are added back for the purposes
of calculating diluted FFO. Refer to "Market Capitalization" for
weighted-average basic and diluted shares.
(4) The extraordinary item represents the Company's share of estimated
extraordinary gain related to its investment in Albertson's. The
Albertson's entity has recorded an extraordinary gain in connection with
the allocation of purchase price to assets acquired. The Company considers
this as an investment in an operating business as opposed to real estate.
Accordingly, all gains and losses from this investment are included in FFO.
Page 19
Reporting Supplement
June 30, 2008
2008 Guidance - Highlights
--------------------------
(in millions except per share amounts,all per share amounts are fully diluted)
2008 Guidance
2007
Overall: Original Updated Actual
- ---------------------------------- ---------------------------------------- --------------------
Full year Funds from Operatons ("FFO") per $1.25 to $1.35 $1.30 to $1.35
share $1.30
======================================== ====================
Earnings per Share ("EPS") $0.66 to $0.76 $0.90 to $1.00 $0.82
======================================== ====================
FFO Components:
- ----------------------------------
Core and pro-rata share of opportunity Fund ("Fund") $41.8 to $42.6 $42.0 to $43.0
portfolio income $41.8
======================================== ====================
Asset and property management fee income (net of
taxes) $10.1 $10.0 $9.2
======================================== ====================
Transactional fee/Promote/RCP income (net of taxes):
-- Transactional fees $14.5 to $15.5 $10.5 to $11.5 $8.1
-- Promote/RCP income $3.0 to $4.0 $3.0 to $4.0 $9.8
---------------------------------------- --------------------
Total transactional fee and promote/RCP income (net) $17.5 to $19.5 $13.5 to $15.5 $17.9
======================================== ====================
Lease termination income (net of minority interests) - $4.5
========================================
General and administrative $26.0 to $27.0 $26.0 to $27.0
expense $24.9
======================================== ====================
- ------------------------------------------------------------------------------------------------------------------------
Quarterly Highlights
Quarter ended March 31, 2008:
Promote/RCP income $2.3 $2.2 is from Mervyns investment
====================
Quarter ended June 30, 2008:
Promote/RCP income $1.2 Fund I promte income
====================
Lease termination income
$4.5 Lease termination income from Home Depot at Canarsie
====================
Page 20
Reporting Supplement
June 30, 2008
Consolidated Balance Sheets
---------------------------
(in thousands)
June 30, December 31,
2008 2007
-------- ------------
ASSETS
Real estate
Land $ 282,674 $ 231,502
Buildings and improvements 639,700 485,177
Construction in progress 99,483 77,608
----------- ------------
1,021,857 794,287
Less: accumulated depreciation (131,325) (122,044)
----------- ------------
Net real estate 890,532 672,243
Cash and cash equivalents 30,278 123,343
Cash in escrow 31,718 6,637
Investments in and advances to unconsolidated affiliates 60,809 44,654
Rents receivable, net of $1,241 and $1,304 allowance,
respectively 3,512 4,629
Straight-line rents receivable, net of $910 allowance 8,002 7,306
Lease Termination Receivable 24,500 -
Notes Receivable 100,541 57,662
Deferred charges, net 22,492 18,879
Prepaid expenses and other assets, net 32,429 16,510
Acquired lease intangibles, net 14,622 16,103
Net assets of discontinued operations 14,669 31,046
----------- ------------
$ 1,234,104 $ 999,012
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgage notes payable $ 678,836 $ 517,903
Acquired lease intangibles, net 5,166 5,651
Accounts payable and accrued expenses 15,979 14,833
Dividends and distributions payable 7,049 14,420
Share of losses in excess of investment in
unconsolidated affiliates 20,145 20,007
Other liabilities 15,383 13,564
Net liabilities of discontinued operations 1,726 787
----------- ------------
Total liabilities 744,284 587,165
----------- ------------
Minority interest in Operating Partnership 6,195 4,595
Minority interests in partially owned affiliates 229,383 166,516
----------- ------------
Total minority interests 235,578 171,111
----------- ------------
235,578
Shareholders' equity:
Common shares 32 32
Additional paid-in capital 228,434 227,890
Accumulated other comprehensive loss (925) (953)
Retained earnings 26,701 13,767
----------- ------------
Total shareholders' equity 254,242 240,736
----------- ------------
$ 1,234,104 $ 999,012
=========== ============
Page 21
QUARTERLY SUPPLEMENTAL DISCLOSURE
June 30, 2008
Pro-rata Consolidated Balance Sheet
-----------------------------------
(in thousands)
Consolidated Minority Company's Pro-Rata
Balance Interest in Interest in Consolidated
Sheet Consolidated Unconsolidated Balance
As Reported (1) Subsidiaries Subsidiaries Sheet (2)
-------------------------------------------------------
ASSETS
Real estate
Land $ 282,674 $(151,383) $ 6,830 $ 138,121
Buildings and improvements 639,700 (232,912) 49,604 456,392
Construction in progress 99,483 (83,883) 822 16,422
------------- ---------- ----------- -----------
1,021,857 (468,178) 57,256 610,935
Less: accumulated depreciation (131,325) 26,463 (7,373) (112,235)
------------- ---------- ----------- -----------
Net real estate 890,532 (441,715) 49,883 498,700
Cash and cash equivalents 30,278 (7,462) 1,201 24,017
Cash in escrow 31,718 (2,648) 641 29,711
Investments in and advances to
unconsolidated affiliates 60,809 (43,205) (8,315) 9,289
Rents receivable, net 3,512 (641) 103 2,974
Straight-line rents receivable, net 8,002 (275) 1,360 9,087
Lease Termination Receivable 24500 (19,600) - 4,900
Intercompany - - - -
Notes Receivable 100,541 (2,949) - 97,592
Deferred charges, net 22,492 (9,209) 7,809 21,092
Prepaid expenses and other assets 32,429 16,142 418 48,989
Acquired lease intangibles 14,622 (3,374) 5 11,253
Assets of discontinued operations 14,669 - - 14,669
------------- ---------- ----------- -----------
Total Assets $ 1,234,104 $(514,936) $ 53,105 $ 772,273
============= ========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgage notes payable $ 677,955 $(280,748) $ 70,734 $ 467,941
Valuation of debt at acquisition, net of
amortization 881 (62) 1,344 2,163
Acquired lease intangibles 5,166 - - 5,166
Accounts payable and accrued expenses 15,979 (688) 506 15,797
Dividends and distributions payable 7,049 - - 7,049
Due to related parties - - - -
Share of losses in excess of inv. in
unconsolidated affiliates l20,145 - (20,145) -
Interest rate swap payable - - - -
Other liabilities 15,383 (5,712) 666 10,337
Liabilities of discontinued operations 1,726 - - 1,726
------------- ---------- ----------- -----------
Total liabilities 744,284 (287,210) 53,105 510,179
------------- ---------- ----------- -----------
Minority interest in Operating Partnership 6,195 - - 6,195
Minority interests in partially owned
affiliates 229,383 (227,726) - 1,657
------------- ---------- ----------- -----------
Total minority interests 235,578 (227,726) - 7,852
------------- ---------- ----------- -----------
Shareholders' equity:
Common shares 32 - - 32
Additional paid-in capital 228,434 - - 228,434
Accumulated other comprehensive income (925) - - (925)
Deficit 26,701 - - 26,701
------------- ---------- ----------- -----------
Total shareholders' equity 254,242 - - 254,242
------------- ---------- ----------- -----------
Total Liabilities and Shareholders'
Equity $ 1,234,104 $(514,936) $ 53,105 $ 772,273
============= ========== =========== ===========
Notes
1 The interim consolidated balance sheet is unaudited, although it reflect all
adjustments, which in the opinion of management, are necessary for the fair
presentation of the consolidated balance sheet for the interim period.
2 The Company currently invests in Funds I, II & III and Mervyns I & II which
are consolidated with the Company's financial statements. To provide
investors with supplemental information, the Company's investments in these
joint ventures are reflected above on a pro-rata basis by calculating it's
ownership percentage for each of the above asset and liability line items.
Similiarly, the above presentation also includes the Company's share of
assets and liaiblities for unconsolidated investments which are accounted
for under the equity method of accounting pursuant to GAAP.
Page 22
Reporting Supplement
June 30, 2008
Portfolio Debt - Consolidated Summary
Reconciliation from Pro-Rata Share of Debt to GAAP Debt
(amounts in thousands)
Acadia Pro-Rata Share of Debt Reconcoliation to Consolidated Debt as Reported
-------------------------------------------------------------------- --------------------------------------------
Core Portfolio Opportunity Funds Total
------------------- ------------------- ---------- Add: Minority
Interest Less: Pro-rata Acadia
Mortgage Share of Share of Consolidated
Notes Principal Interest Principal Interest Principal InterestFixed vs Consolidated Unconsolidated Debt As
Payable Balance Rate Balance Rate Balance Rate Variable Debt (3) Debt (4) Reported
- ------------------------------- ------------------- ------------------------------------------ --------------- --------------
Fixed-Rate
Debt (1) $395,164 5.1% $32,711 5.9% $427,875 5.2% 91% $135,419 $(68,094) $495,200
Variable-
Rate Debt
(1) 868 3.8% 39,197 3.9% 40,065 3.8% 9% 145,330 (2,640) 182,755
------------------- ------------------- ---------------------------- ------------- --------------- --------------
Total $396,032 5.1% $71,909 4.7% $467,941 5.1% 100% $280,749 $(70,734) 677,955
=================== =================== ============================ ============= ===============
FAS 141
purchase
price debt
allocation 881
--------------
Total debt
as reported $678,836
==============
Notes
(1) Fixed-rate debt includes notional principal fixed through swap
transactions. Conversely, variable-rate debt excludes this amount.
(2) Represents the Company's economic pro-rata share of debt.
(3) Represents the Minority Interest pro-rata share of consolidated partnership
debt based on its percent ownership.
(4) Represents the Company's pro-rata share of unconsolidated partnership debt
based on percent ownership.
Page 23
Debt Analysis - Consolidated Debt
(amounts in thousands)
Principal Acadia's Pro-rata
Balance at share Interest Maturity
-------------------
Property Notes Entity Lender June 30, 2008 Percent Amount Rate Date
- --------------------------------------- --------------------------------------------------------------------------------------
CORE PORTFOLIO
- ------------------------
Fixed-Rate Debt
- ------------------------
Acadia Realty Trust Acadia 3.75% Convertible Notes $115,000 100.0% $115,000 3.75% 12/20/2011
Chestnut Hill Acadia Column Financial, Inc. 9,750 100.0% 9,750 5.45% 6/11/2013
New Loudon Center Acadia RBS Greenwich Capital 14,654 100.0% 14,654 5.64% 9/6/2014
Crossroads Shopping Crossroads
Center JV JPMorgan Chase Bank 63,594 49.0% 31,161 5.37% 12/1/2014
Crescent Plaza Acadia RBS Greenwich Capital 17,600 100.0% 17,600 4.98% 9/6/2015
Pacesetter Park Shopping
Center Acadia RBS Greenwich Capital 12,500 100.0% 12,500 5.12% 11/6/2015
Elmwood Park Shopping Bear Stearns Commercial
Center Acadia Mortgage, Inc. 34,600 100.0% 34,600 5.53% 1/1/2016
Gateway Shopping Center Bear Stearns Commercial
Acadia Mortgage, Inc. 20,500 100.0% 20,500 5.44% 3/1/2016
Acadia Brandywine Brandywine Bear Stearns Commercial
Subsidiary JV Mortgage, Inc. 61,375 22.2% 13,639 5.99% 7/1/2016
Acadia Brandywine Town Brandywine Bear Stearns Commercial
Center JV Mortgage, Inc. 31,550 22.2% 7,011 5.99% 7/1/2016
Acadia Market Square Brandywine Bear Stearns Commercial
Shopping Center JV Mortgage, Inc. 24,375 22.2% 5,417 5.99% 7/1/2016
Acadia Brandywine Brandywine Bear Stearns Commercial
Condominium JV Mortgage, Inc. 22,650 22.2% 5,033 5.99% 7/1/2016
Acadia Brandywine Brandywine Bear Stearns Commercial
Holdings JV Mortgage, Inc. 26,250 22.2% 5,833 5.99% 7/1/2016
Walnut Hill Plaza Merrill Lynch Mortgage
Acadia Lending, Inc. 23,500 100.0% 23,500 6.06% 8/29/2016
239 Greenwich Avenue Acadia Wachovia 26,000 75.0% 19,500 5.42% 2/11/2017
Merrillville Plaza Bear Stearns Commercial
Acadia Mortgage, Inc. 26,250 100.0% 26,250 5.88% 8/1/2017
Clark-Diversey Lasalle Bank National
13 Acadia Association 3,699 100.0% 3,699 8.50% 4/11/2028
Boonton GMAC Commercial Mortgage
Acadia Corporation 8,388 60.0% 5,033 6.40% 11/1/2032
Interest rate swaps 1 Acadia Bank of America, N.A. 24,484 100.0% 24,484 6.35% Various
-------------- ---------- ----------
Sub-Total Fixed-Rate
Debt 566,719 395,164 5.14%
-------------- ---------- ----------
Variable-Rate Debt
- ------------------------
Various 2 Acadia Bank of America, N.A. - 100.0% - Libor + 125 12/1/2010
Branch Plaza Acadia Bank of America, N.A. 15,650 100.0% 15,650 Libor+ 130 12/1/2011
Village Commons Shopping
Center 3 Acadia Bank of America, N.A. 9,702 100.0% 9,702 Libor+ 140 6/29/2012
Interest rate swaps 1 Acadia Bank of America, N.A. (24,484) 100.0% (24,484)
-------------- ----------
Sub-Total Variable-Rate
Debt 868 868 Libor+ 134
-------------- --------------------------
Total Core Portfolio
Debt $567,587 $396,032 5.14%
============== ========== ==========
Page 24
Reporting Supplement
June 30, 2008
Debt Analysis - Consolidated Debt
(amounts in thousands)
Principal Acadia's Pro-rata
Balance at share Interest Maturity
-------------------
Property Notes Entity Lender June 30, 2008 Percent Amount Rate Date
- --------------------------------------- --------------------------------------------------------------------------------------
OPPORTUNITY FUNDS
- ------------------------
Fixed-Rate Debt
- ------------------------
Sherman Plaza 4 Fund II Bank of China $19,000 19.7% $3,751 5.83% 9/1/2008
Safeway Portfolio Cortlandt Deposit
5 Fund I Corporation 2,318 28.3% 657 6.51% 1/15/2009
Kroger Portfolio Cortlandt Deposit
5 Fund I Corporation 2,475 28.3% 701 6.62% 2/1/2009
Storage Post - Suffern Fund III GEMSA Loan Services, LP 5,004 18.9% 946 5.37% 12/1/2009
Storage Post - Various 6 Fund III Wachovia 34,717 18.9% 6,563 5.86% 6/11/2009
Storage Post - Various 7 Fund III GEMSA Loan Services, LP 41,500 18.9% 7,846 5.30% 3/16/2011
216th Street 4 Fund II Bank of America, N.A. 25,500 19.7% 5,034 5.80% 10/1/2017
Pelham Manor 4 Fund II Bear Sterns Commercial 17,409 19.7% 3,437 7.18% 1/1/2020
Atlantic Avenue Fund II Bear Sterns Commercial 552 13.3% 74 7.14% 1/1/2020
Interest rate swap 1 Fund I Bank of America, N.A. 9,800 37.8% 3,702 5.88% 10/29/2010
-------------- ---------- ----------
Sub-Total Fixed-Rate
Debt 158,275 32,711 5.87%
-------------- ---------- ----------
Variable-Rate Debt
- ------------------------
CityPoint 8 Fund II Bank of America, N.A. 34,000 4.9% 1,652 Libor+ 225 8/13/2008
Granville Center Fund I Bank One, N.A. 2,752 37.8% 1,040 Libor+ 200 10/5/2008
Acadia Strategic
Opportunity Fund II, Bank of America, N.A. /
LLC 9 Fund II Bank of New York 34,500 20.0% 6,900 Libor+ 75 3/1/2009
161st Street Libor
4 Fund II RBS Greenwich Capital 30,000 19.7% 5,922 Libor+ 140 4/1/2009
Liberty Avenue PNC Bank, National
4 Fund II Association 11,156 19.7% 2,202 Libor+ 165 5/18/2009
Fordham Plaza 4 Fund II Eurohypo AG 61,478 19.7% 12,136 + 175 10/4/2009
Sterling Heights JP Morgan Chase Bank,
Shopping Center 10 Fund I N.A. 5,232 18.9% 988 Libor+ 185 8/23/2010
Acadia Strategic Comm
Opportunity Fund III, Paper
LLC 11 Fund III Bank of America, N.A. 42,000 19.9% 8,358 +50 10/9/2011
Tarrytown Shopping Anglo Irish Bank
Center Fund I Corporation 9,800 37.8% 3,702 Libor+ 165 10/30/2010
Interest rate swap 1 Fund I Bank of America, N.A. (9,800) 37.8% (3,702) 10/29/2010
-------------- ----------
Sub-Total Variable-Rate
Debt 221,118 39,197 Libor+ 139
-------------- ---------- ----------
Total Opportunity Funds
Portfolio Debt $379,393 $71,909 4.67%
============== ========== ==========
Page 25
Reporting Supplement
June 30, 2008
Debt Analysis - Notes
(1) The Company has hedged a portion of it's variable-rate debt with variable
to fixed-rate swap agreements as follows:
Average Forward Maturity
Notional All-in
principal Spread Swap rate Rate Start Date Date
--------------------------------------------------- ------------------- ----------
$4,640 1.41% 4.71% 6.12% n/a 1/1/2010
11,410 1.41% 4.90% 6.30% n/a 10/1/2011
8,434 1.41% 5.14% 6.55% n/a 3/1/2012
---------- --------------------------------------- ---------
Core Portfolio $24,484 1.41% 4.94% 6.35%
========== ======================================= =========
Opportunity Funds $9,800 1.41% 4.47% 5.88% n/a 10/29/2010
========== ======================================= =========
(2) This is a revolving facility for up to $74,000 with an additional $13,000
available based on certain income hurdles and is collateralized by
Bloomfield Town Square, Hobson West Plaza, Marketplace of Absecon, Abington
Towne Center, Methuen Shopping Center and Town Line Plaza. Subsequent to
June 30, 2008, $39.5 million was drawn on this facility.
(3) There is an additional $300 available under this facility through 12/08,
with an additional $1,800 available thereafter based on certain income
hurdles.
(4) Fund II is a 98.7% joint venture partner on this investment. As such,
Acadia's pro-rata share of the above debt is 98.7% x 20%, or 19.7%.
(5) AmCap, Fund I's joint venture partner on this investment, is allocated 25%
of the debt and equity. As such Acadia's pro-rata share of the above debt
is 75% x 37.78%, or 28.3%.
(6) The loan is collateralized by Storage Post locations - Starr Avenue, New
Rochele, Yonkers and Bruckner Blvd.
(7) The loan is collateralized by Storage Post locations - Linden, Webster
Avenue, Jersey City, Fordham Road and Lawrence.
(8) Fund II is a 22.57% % joint venture partner in CityPoint. As such, Acadia's
pro-rata share of the above debt is 4.86%.
(9) This is a revolving facility for up to $70,000. There are three one-year
options associated with this revolving facility.
(10) Fund I is a 50% joint venture partner on this investment. As such, Acadia's
pro-rata share of the above debt is 50% x 37.78%, or 18.9%.
(11) This is a line of credit with an initial amount of $75,000 with the option
to increase to a maximum of $300,000.
(13) This loan was paid off on July 11, (2008.)
Page 26
Reporting Supplement
June 30, 2008
Future Debt Maturities
- -----------------------------------
(in thousands)
Weighted Average Interest Rate of
Core Portfolio Acadia's Pro-rata Share Maturing Debt
---------------------------------- ----------------------------------
Scheduled Scheduled
Total Fixed-Rate Variable-
Year Amortization Maturities Total Amortization Maturities Total Debt Debt Rate Debt
- ----------------------------------------------- ---------- ---------------------------------- ----------------------------------
2008 $873 $3,699 1 $4,572 $634 $3,699 $4,333 8.50% 8.50% n/a
2009 1,998 - 1,998 1,493 - 1,493 n/a n/a n/a
2010 2,574 - 2,574 2,040 - 2,040 n/a n/a n/a
2011 2,987 129,764 132,751 2,423 129,764 132,187 3.75% 3.75% 3.76%
2012 3,134 9,048 12,182 2,543 9,048 11,591 3.86% n/a 3.86%
Thereafter 15,946 397,564 413,510 11,964 232,424 244,388 5.71% 5.71% n/a
--------------------------- ---------- ----------------------------------
$27,512 $540,075 $567,587 $21,097 $374,935 $396,032
=========================== ========== ==================================
Weighted Average Interest Rate of
Pro-rata Share of Maturing Debt
-----------------------------------
Opportunity Funds
Total Fixed-Rate Variable-
Debt Debt Rate Debt
----------------------------------
2008 $581 $55,697 $56,278 $120 $6,422 $6,542 5.09% 5.83% 4.06%
2009 5,340 175,782 181,122 1,461 34,467 35,928 4.28% 5.80% 3.87%
2010 - 15,032 15,032 - 4,690 4,690 4.15% n/a 4.15%
2011 - 83,500 83,500 - 16,204 16,204 3.93% 5.30% 2.64%
2012 - - - - - - n/a n/a n/a
Thereafter - 43,461 43,461 - 8,545 8,545 6.37% 6.37% n/a
--------------------------- ---------- ----------------------------------
$5,921 $373,472 $379,393 $1,581 $70,328 $71,909
=========================== ========== ==================================
(1) Paid in full subsequent to June 30, 2008.
Page 27
Reporting Supplement
June 30, 2008
Selected Operating Ratios
-------------------------
Three months ended June 30, Six months ended June 30,
2008 2007 2008 2007
---------- ----------- ------------ ------------
Coverage Ratios (1)
- ---------------------------------
Interest Coverage Ratio
EBIDTA $22,257 $16,154 $42,677 $35,559
Divided by Interest expense 5,776 6,271 11,502 12,368
---------- ----------- ------------ ------------
3.85 x 2.58x 3.71 x 2.88x
Fixed Charge Coverage Ratio
EBIDTA $22,257 $16,154 $42,677 $35,559
Divided by ( Interest expense 5,776 6,271 11,502 12,368
+ Preferred
Dividends) (2) 5 5 10 13
---------- ----------- ------------ ------------
3.85 x 2.57x 3.71 x 2.87x
Debt Service Coverage Ratio
EBIDTA $22,257 $16,154 $42,677 $35,559
Divided by ( Interest expense 5,776 6,271 11,502 12,368
+ Principal
Amortization) 679 711 1,390 1,543
---------- ----------- ------------ ------------
3.45 x 2.31x 3.31 x 2.56x
Payout Ratios
- ---------------------------------
FFO Payout Ratio
Dividends (Shares) & Distributions
(O.P. Units) paid $7,049 $6,665 $14,080 $13,326
FFO 13,862 8,794 26,755 20,937
---------- ----------- ------------ ------------
51% 76% 53% 64%
AFFO Payout Ratio
Dividends (Shares) & Distributions
(O.P. Units) paid $7,049 $6,665 $14,080 $13,326
AFFO 14,749 7,549 28,207 18,915
---------- ----------- ------------ ------------
48% 88% 50% 70%
FAD Payout Ratio
Dividends (Shares) & Distributions
(O.P. Units) paid $7,049 $6,665 $14,080 $13,326
FAD 14,070 6,838 26,817 17,372
---------- ----------- ------------ ------------
50% 97% 53% 77%
Leverage Ratios
- ---------------------------------
Debt/Total Market Capitalization
Debt (3) $467,941 $430,744
Total Market Capitalization 1,232,448 1,282,377
---------- -----------
38% 34%
Debt + Preferred Equity (Preferred
O.P. Units) $468,521 $430,932
Total Market Capitalization 1,232,448 1,282,377
---------- -----------
38% 34%
Notes:
(1) Quarterly results for 2008 and 2007 are unaudited, although they reflect
all adjustments, which in the opinion of management, are necessary for a
fair presentation of operating results for the interim periods. The
coverage ratios include the Company's pro-rata share of EBIDTA, interest
expense and principal amortization related to both the Company's
consolidated and unconsolidated investments in joint ventures.
(2) Represents preferred distributions on Preferred Operating partnership
Units.
(3) Includes the Company's pro-rata share of consolidated and unconsolidated
joint venture debt and principal amortization.
Page 28
Acadia Strategic Opportunity Fund, LLC ("Fund I") - Overview
Item Description
Date formed September 2001
Capital commitment $90 million
Funding All invested capital has been returned with
the proceeds from the Brandywine
recapitalization as discussed below. Acadia
and its investors still own approximately
1.5 million square feet of properties in
Fund I.
Partnership structure
Equity Contribution: 22.22% - Acadia
77.78% - Four institutional investors
Cash flow distribution: 22.22% - Acadia
77.78% - Four institutional investors
Promote: 20% to Acadia once all partners (including
Acadia) have received 9% preferred return
and return of equity
Remaining 80% is distributed to all the
partners (including Acadia).
In January 4, 2006, the Brandywine
portfolio was recapitalized through the
conversion of the 77.8% interest previously
held by the institutional investors in Fund
I to GDC Properties. Acadia has retained
its existing 22.2% interest. Due to this
transaction, Fund I investors received a
return of all of their invested capital and
preferred return, thus triggering Acadia's
additional 20% interest (promote) in all
future Fund I distributions.
Fees to Acadia Priority distribution fee equal to 1.5% of
implied capital
Priority distribution fee equal to 4% of
gross property revenues
Market rate leasing fees
Market rate construction/project management
fees
Page 29
Reporting Supplement
June 30, 2008
Fund I
Portfolio Detail
----------------
Annualized Base Rent
Ownership Gross Leasable Area Occupancy Annualized Base Rent per Square Foot
------------------------------------------------------------------------------------------------------
% Anchors Shops Total Anchors Shops Total Anchors Shops Total Anchors Shops Total
---------------------------------------------------------------------------------------------------------------
Midwest
- -------------------
Michigan
- -------------------
Sterling Heights
Shopping Center
(Michigan) 50% 90,400 64,435 154,835 100.00% 25.18% 68.86% $526,600$117,919 $644,519 $5.83 $7.27 $6.04
Ohio
- -------------------
Granville Centre 100% 90,047 44,950 134,997 38.81% 36.06% 37.89% 450,336 163,747 614,083 12.88 10.10 12.00
------------------------------------------------------------------------------------------------------
Total Midwest 180,447 109,385 289,832 69.46% 29.65% 54.44% 976,936 281,666 1,258,602 7.79 8.68 7.98
New York
- -------------------
New York
- -------------------
Tarrytown Shopping
Center 100% 15,497 19,794 35,291 100.00% 82.33% 90.09% 475,000 496,822 971,822 30.65 30.49 30.57
Various
- -------------------
Kroger/Safeway
Portfolio (24
Properties) 75% 987,100 - 987,100 100.00% 0.00%100.00% 8,842,778 - 8,842,778 8.96 - 8.96
------------------------------------------------------------------------------------------------------
Grand Total 1,183,044 129,179 1,312,223 95.34% 37.72% 89.67% $10,294,714$778,488$11,073,202 $9.13 $15.98 $9.41
======================================================================================================
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.
Page 30
Reporting Supplement
June 30, 2008
Fund I
Anchor Detail
Annual Annual
Square Lease Base Base
Region/Property/Tenant Footage Expiration Rent Rent PSF Options
- ------------------------------------------------------------------------------------------------------------------------
Midwest
- ----------------------------------------
Michigan
- ----------------------------------------
Sterling Heights Shopping Center
Rite Aid 20,000 1/31/2026 $245,000 $12.25(4) 5 Year
Burlington Coat Factory 70,400 1/31/2024 281,600 4.00-
--------------- ------------------------------
Total Redevelopment Property 90,400 526,600 5.83
--------------- ------------------------------
Ohio
- ----------------------------------------
Granville Centre
Lifestyle Family Fitness, Inc. 34,951 1/31/2017 $450,336 12.88(2) 5 Year
--------------- ------------------------------
Total Midwest 125,351 976,936 7.79
--------------- ------------------------------
New York
- ----------------------------------------
New York
- ----------------------------------------
Tarrytown Centre
Walgreen's 15,497 6/30/2080 475,000 30.65-
--------------- ------------------------------
Various
- ----------------------------------------
Kroger/Safeway 987,100 2009 8,842,778 8.96Various
--------------- ------------------------------
Total Anchors 1,127,948 $10,294,714 $9.13
=============== ==============================
General note - The above detail does not include space which is currently
leased, but for which rent payment has not yet commenced.
Page 31
Reporting Supplement
June 30, 2008
Fund I
Lease Expirations
- -----------------
Gross Leased Area Annualized Base Rent
------------------------- ---------------------------------------------
Number of Percent Percent Average
Leases Square of of per
Expiring Footage Total Amount Total Sq. Ft.
---------------------------------------- ---------------------------------------------
Anchor Tenant Expirations
2009 24 987,100 87.52% $8,842,778 85.90% $8.96
2017 1 34,951 3.10% 450,336 4.37% 12.88
2024 1 70,400 6.24% 281,600 2.74% 4.00
2026 1 20,000 1.77% 245,000 2.38% 12.25
2080 1 15,497 1.37% 475,000 4.61% 30.65
---------------------------------------- ---------------------------------------------
Total Occupied 28 1,127,948 100.00% $10,294,714 100.00% $9.13
======================================== =============================================
0
Total Vacant 55,096
---------------
Total Square Feet 1,183,044
===============
Shop Tenant Expirations
Month to Month 5 13,317 27.33% $116,584 14.98% $8.75
2010 1 2,547 5.23% 81,071 10.41% 31.83
2011 3 4,465 9.16% 79,474 10.21% 17.80
2012 3 15,045 30.87% 129,807 16.67% 8.63
2014 2 4,341 8.91% 142,341 18.28% 32.79
2018 2 3,861 7.92% 78,369 10.07% 20.30
2020 1 5,157 10.58% 150,842 19.38% 29.25
---------------------------------------- ---------------------------------------------
Total Occupied 17 48,733 100.00% $778,488 100.00% $15.97
======================================== =============================================
Total Vacant 80,446
---------------
Total Square Feet 129,179
===============
Total Anchor and Shop Tenant Expirations
Month to Month 5 13,317 1.13% $116,584 1.05% $8.75
2009 24 987,100 83.88% 8,842,778 79.86% 8.96
2010 1 2,547 0.22% 81,071 0.73% 31.83
2011 3 4,465 0.38% 79,474 0.72% 17.80
2012 3 15,045 1.28% 129,807 1.17% 8.63
2014 2 4,341 0.37% 142,341 1.29% 32.79
2017 1 34,951 2.97% 450,336 4.07% 12.88
2018 2 3,861 0.33% 78,369 0.71% 20.30
2020 1 5,157 0.44% 150,842 1.36% 29.25
2024 1 70,400 5.98% 281,600 2.54% 4.00
2026 1 20,000 1.70% 245,000 2.21% 12.25
2080 1 15,497 1.32% 475,000 4.29% -
---------------------------------------- ---------------------------------------------
Total Occupied 45 1,176,681 100.00% $11,073,202 100.00% $9.41
======================================== =============================================
Total Vacant 135,542
---------------
Total Square Feet 1,312,223
===============
Page 32
Reporting Supplement
June 30, 2008
Fund I Renewal Ground
Kroger/Safeway Portfolio Rent Rent
------------------------
Gross per per
Leasable Square Square Net
Status Area Foot Foot Rent
- ---------------------------------------------------------------------------------------------
Kroger
Cary, NC Renewal option exercised 48,000 $ 4.75 $ 1.56 $3.19
Irving, TX Renewal option exercised 43,900 4.51 2.28 2.23
Great Bend, KS Purchase option exercised 48,000 - - -
Hanrahan, LA Purchase option exercised 60,000 - - -
Pratt, KS Purchase option exercised 38,000 - - -
Roanoke, VA Purchase option exercised 36,700 - - -
Shreveport, LA Purchase option exercised 45,000 - - -
Wichita, KS Purchase option exercised 50,000 - - -
Wichita, KS Not renewed 40,000 - - -
Cincinnati, OH Not renewed 32,200 - - -
Conroe, TX Not renewed 75,000 - - -
Indianapolis, IN Not renewed 34,000 - - -
Safeway
Batesville, AR Renewal option exercised 29,000 6.02 2.33 3.69
Benton, AR Renewal option exercised 33,500 4.96 1.88 3.07
Carthage, TX Renewal option exercised 27,700 4.33 0.83 3.51
Little Rock, AR Renewal option exercised 36,000 6.93 3.06 3.88
Longview, WA Renewal option exercised 48,700 4.72 1.60 3.12
Mustang, OK Renewal option exercised 30,200 4.37 0.99 3.38
Ruidoso, NM Renewal option exercised 38,600 6.28 2.04 4.24
San Ramon, CA Renewal option exercised 54,000 5.23 3.37 1.86
Springerville, AZ Renewal option exercised 30,500 5.09 1.02 4.07
Tucson, AZ Renewal option exercised 41,800 4.93 1.72 3.20
Roswell, NM Not renewed 36,300 - - -
Tulsa, OK Not renewed 30,000 - - -
------------- -- -- --
Total 987,100 $ 2.41 $ 0.92 $1.49
======== ====== ====== =====
Page 33
Reporting Supplement
As of December 31, 2007 (1)
Fund I - Valuation
(in thousands, except per share amounts)
Other
Total Kroger/Safeway Properties (2)
-----------------------------------------
Gross asset value $ 62,500 $ 31,000 $ 31,500
Debt (28,419) (7,382) (21,037)
-----------------------------------------
Adjusted debt 34,081 23,618 10,463
-------------============================
Additional Mervyn's return (Original capital already returned) 6,400
-------------
Total Value Subject to Promote 40,481
-------------
General Partner (Acadia) Promote on Fund I assets x 20% 8,096
-------------
Remaining value to be allocated pro-rata to Fund I investors (including Acadia) 32,385
-------------
Acadia's share x 22.22% 7,196
-------------
Value of Acadia's interest in remaining Fund I assets 15,292
Additional promote earned from Brandywine recapitalization -
-------------
Total value to Acadia $ 15,292
=============
Recap of Acadia Promote
-----------------------
20% General Partner (Acadia) Promote on Fund I assets $ 8,096
20% General Partner (Acadia) Promote on Brandywine -
-------------
Total promote $ 8,096
=============
Per share $ 0.24
=============
Notes:
- ------
1 Fund I valuation is updated annually at December 31st
2 Amounts adjusted for minority interests' pro-rata share of debt (See "Debt
Analysis - Detail")
Page 34
Reporting Supplement
June 30, 2008
Acadia Strategic Opportunity Fund II, LLC ("Fund II") - Overview
- ----------------------------------------------------------------
Item Description
- ---------------------------------------------
Date formed June 2004
Capital commitment $300 million
Funding $192.0 millionfunded through June 30, (2008)
Partnership structure
Equity Contribution: 20% - Acadia
80% - Six institutional investors
Cash flow distribution: 20% - Acadia
80% - Six institutional investors
Promote: 20% to Acadia once all partners (including
Acadia) have received 8% preferred return
and return of equity
Remaining 80% is distributed to all the
partners (including Acadia).
Fees to Acadia Asset management fee equal to 1.5% of total
committed capital
Property management fee equal to 4% of
gross property revenues
Market rate leasing fees
Market rate construction/project management
fees
Page 35
Reporting Supplement
June 30, 2008
Fund II
Portfolio Detail
Annualized Base Rent
Gross Leasable Area Occupancy Annualized Base Rent per Occupied Square Foot
-----------------------------------------------------------------------------------------------------
Ownership % Anchors Shops Total Anchors Shops Total Anchors Shops Total Anchors Shops Total
----------------------------------------------------------------------------------------------------------------
Midwest
- -------------------
Illinois
- -------------------
Oakbrook 100% 112,000 - 112,000 100.00% 0.00%100.00% $825,000 $- $825,000 $7.37 $- $7.37
New York
- -------------------
New York
- -------------------
Liberty Avenue 98.6% 10,880 6,208 17,088 100.00%100.00%100.00% 394,944 217,901 612,845 36.30 35.10 35.86
216th Street 98.6% 60,000 - 60,000 100.00% 0.00%100.00% 2,340,000 225,000 2,565,000 39.00 - 42.75
161st Street (1) 98.6% 137,334 86,187 223,521 100.00% 66.58% 87.11% 3,337,222 1,193,501 4,530,723 24.30 20.80 23.27
-----------------------------------------------------------------------------------------------------
Total New York 208,214 92,395 300,609 100.00% 68.83% 90.42% 6,072,166 1,636,402 7,708,568 29.16 25.73 28.36
-----------------------------------------------------------------------------------------------------
Grand Total 320,214 92,395 412,609 100.00% 68.83% 93.02%$6,897,166$1,636,402$8,533,568 $21.54 $25.73 $22.23
=====================================================================================================
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 properties are currently undergoing redevelopment as
further detailed under Redevelopment Projects.
New York Ownership %
- -------- -----------
400 East Fordham Road 98.6%
Pelham Manor Shopping Center 98.6%
Sherman Avenue 98.6%
CityPoint 23%
Atlantic Avenue 100%
Canarsie Plaza 98.6%
(1) Currently operating, but will be redeveloped in the future.
Page 36
Reporting Supplement
June 30, 2008
Fund II
Anchor Detail
-------------
Annual Annual
Square Lease Base Base
Region/Property/Tenant Footage Expiration Rent Rent PSF Options
- --------------------------------------------------------------------------------------------------------------------------
Midwest
Illinois
Acadia Oakbrook
Neiman Marcus 112,000 10/31/2011 825,000 7.37 (5) 5 Year
-------- -------- -----
New York
New York
Liberty Avenue
CVS 10,880 1/31/2032 394,944 36.30 (4) 5 Year
------- -------- ------
216th Street
New York Dept of Citywide Admin. Services 60,000 9/19/2027 2,340,000 39.00 (1) 15 Year
------- ---------- ------
161st Street
City of New York 137,334 7/18/2011 3,337,222 24.30 -
-------- ---------- ------
Total New York 208,214 6,072,166 29.16
-------- ---------- -----
Total Anchors 320,214 $ 6,897,166 $ 21.54
======== ============ =======
General note - The above detail does not include space which is currently
leased, but for which rent payment has not yet commenced.
Page 37
Reporting Supplement
June 30, 2008
Fund II
Lease Expirations
- -----------------
Gross Leased Area Annualized Base Rent
--------------------------------------------------------------------------------
Number of Percent Percent Average
Leases Square of of per
Expiring Footage Total Amount Total Sq. Ft.
--------------------------------------------- ---------------------------------------------
Anchor Tenant Expirations
2011 2 249,334 77.86% $4,162,222 60.34% $16.69
2027 1 60,000 18.74% 2,340,000 33.93% 39.00
2032 1 10,880 3.40% 394,944 5.73% 36.30
--------------------------------------------- ---------------------------------------------
Total Occupied 4 320,214 100.00% $6,897,166 100.00% $21.54
============================================= =============================================
Total Vacant -
---------------
Total Square Feet 320,214
===============
Shop Tenant Expirations
Month to Month 1 6,109 9.61% $35,520 2.17% $5.81
2011 3 24,065 37.85% 584,773 35.74% 24.30
2012 3 27,205 42.78% 573,208 35.03% 21.07
2022 1 - 0.00% 225,000 13.75% -
2027 1 6,208 9.76% 217,901 13.32% 35.10
--------------------------------------------- ---------------------------------------------
Total Occupied 9 63,587 100.00% $1,636,402 100.00% $25.73
============================================= =============================================
Total Vacant 28,808
---------------
Total Square Feet 92,395
===============
Total Anchor and Shop Tenant Expirations
Month to Month 1 6,109 1.59% $35,520 0.42% $5.81
2011 5 273,399 71.24% 4,746,995 55.62% 17.36
2012 3 27,205 7.09% 573,208 6.72% 21.07
2027 2 66,208 17.25% 2,557,901 29.97% 38.63
2022 1 - 0.00% 225,000 2.64% -
2032 1 10,880 2.83% 394,944 4.63% 36.30
--------------------------------------------- ---------------------------------------------
Total Occupied 13 383,801 100.00% $8,533,568 100.00% $22.23
============================================= =============================================
Total Vacant 28,808
---------------
Total Square Feet 412,609
===============
Page 38
Reporting Supplement
June 30, 2008
Acadia Strategic Opportunity Fund III, LLC ("Fund III") - Overview
- ------------------------------------------------------------------
Item Description
- ---------------------------------------------
Date formed May 2007
Capital commitment $503 million
Funding $96.5 millifunded through June 30, (2008)
Partnership structure
Equity Contribution: 20% - Acadia
80% - 14 institutional investors
Cash flow distribution: 20% - Acadia
80% - 14 institutional investors
Promote: 20% to Acadia once all partners (including Acadia)
have received 6% preferred return and return of
equity
Remaining 80% is distributed to all the
partners (including Acadia).
Fees to Acadia Asset management fee equal to 1.5% of total
committed capital
Development fee equal to 3% of total project cost
Property management fee equal to 4% of gross
property revenues
Market rate leasing fees
Market rate construction/project management fees
Acquisitions Sheepshead Bay, Brooklyn, NY and 125 Main Street,
Westport, Ct. See Redevelopment Projects.
Storage Post Portfolio. See Storage Post Properties.
Page 39
Reporting Supplement
June 30, 2008
Fund III
Storage Post Property Detail
Net
Rentable
Square Rented
Operating Properties Location Feet SQFT Occupancy
- ------------------------------------------------------------------------------------------------------------------------
Stabilized
- ----------
New Rochelle Westchester, New York 42,182 36,445
Suffern Suffern, New York 79,000 66,202
Yonkers Westchester, New York 100,811 92,343
Jersey City Jersey City, New Jersey 76,695 70,253
---------------
Subtotal Stabilized 298,688 88.8%
---------------
Currently in Lease-up
- ---------------------
Bruckner Blvd Bronx, New York 90,129 71,112
Fordham Road Bronx, New York 84,405 63,388
Webster Ave Bronx, New York 36,931 23,562
Lawrence Lawrence, New York 97,743 57,571
Long Island City Queens, New York 138,765 81,178
Linden Linden, New Jersey 84,035 62,690
---------------
Subtotal in Lease-up 532,008 67.6%
--------------- ---------------
Total Operating Properties 830,696 75.2%
===============
Currently under development.
- ----------------------------
Ridgewood Queens, New York 89,900
---------------
Total Storage Post Portfolio 920,596
===============
Page 40
Reporting Supplement
June 30, 2008
Redevelopment Projects
----------------------
Estimated
Total cost square
Estimated to date footage Estimated
Estimated start completion (including Estimated Total upon cost per
Estimated start of acquisition future project square
Property Anchors/Tenants of construction Construction cost) cost cost completion foot Notes
- ----------------------------------------------------------------------------------------------------------------------------------
New York Urban/Infill Platform ($ in millions)
- ---------------------------------------- --------------------
Fund II
- --------------------
Liberty Avenue Construction
CVS, Storage Post completed $14.4 $- $14.4 125,000 $115 (1)
216th Street City of New York
Dept of General Construction
Services completed 27.7 - 27.7 60,000 462
Fordham Plaza (2) Sears, Walgreens,
Best Buy, 24 Hour Construction
Fitness commenced 1st half 2009 93.1 31.9 125.0 285,000 439
Pelham Manor Construction
Shopping Center Home Depot commenced 2nd half 2009 41.8 5.7 47.5 320,000 148 (1)
161st Street (3) Various New York
City and State To be
Agencies To be determined determined 51.4 13.6 65.0 232,000 280
Canarsie Plaza Construction To be
To be determined commenced determined 17.8 32.2 50.0 323,000 155
Sherman Avenue To be determined 2nd half 2008 2nd half 2009 27.6 27.4 55.0 216,000 255
CityPoint (4) To be
Target To be determined determined 40.8 284.2 325.0 600,000 542
Atlantic Avenue Storage Post 2nd half 2008 2nd half 2009 9.2 13.8 23.0 110,000 209
---------------------------------------------------
Total Fund II 323.8 408.8 732.6 2,271,000 323
Fund III
- --------------------
Sheepshead Bay To be
To be determined To be determined determined 21.3 87.7 109.0 240,000 454
---------------------------------------------------
Total New York Urban/Infill Platform $345.1 $496.5 $841.6 2,511,000 $335
===================================================
Other Projects
- --------------------
Fund III
- --------------------
125 Main Street To be
(Westport, CT) To be determined To be determined determined $17.0 $6.0 $23.0 30,000 $767
===================================================
(1) Fund II acquired a ground lease interest at this property.
(2) The retail component of Fordham Plaza is expected to be completed in the
2nd half of 2008. It is anticipated that retailers will be open and
operating in the 4th quarter (2008.)
(3) 161st Street is currently cash flowing with an occupancy rate of 87%.
Redevelopment plans for this property are to be determined.
(4) Fund II, along with P/A Associates, Washington Square Partner and
MacFarlane Partners are co-developing CityPoint.
Page 41
Reporting Supplement
June 30, 2008
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 are anticipated to invest a total of $60 million
equity. ***
Item Description
- ------------------------------------------------
Date formed January 2004
Targeted investments The Venture has been formed to invest in
surplus or distressed properties owned or
controlled by retailers
Current Investments Mervyns Department Stores - All capital has been returned
Albertson's - All capital has been returned
ShopKo - All capital has been returned
Rex, Marsh Supermarkets, four Albertsons add-on investments,
Newkirk, Camellia, Colorado Springs and Visalia.
two Marsh add-on investments, Ameristop and
Lil Cricket and a Mervyns add-on, Napa, CA.
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).
Fees to Acadia Property management fees
Market rate leasing fees and construction/project management
Disposition fees
Page 42
Reporting Supplement
June 30, 2008
Retailer Controlled Property ("RCP") Venture - Investments
- ----------------------------------------------------------
The following table summarizes the RCP Venture investments from inception
through June 30, 2008:
Year Invested Equity
Investor Investment acquired capital Distributions Multiple
- ------------------------------------------------------------ ----------- ------------- --------------- ----------------
Mervyns I and Mervyns II Mervyns 2004 $ 24,618 $ 45,966 1.9 X
Mervyns II Mervyns Realco 2007 2,155 - -
Mervyns I and Mervyns II Mervyns add-on investments 2005 1,719 1,342 0.8 X
Mervyns II Albertson's 2006 20,717 53,660 2.6 X
Mervyns II Albertson's add-on investments 2006/2007 2,765 833 0.3 X
Fund II Shopko 2006 1,100 1,100 1.0 X
Fund II Marsh 2006 667 - -
Fund II Marsh add-on investments 2008 1,367 - -
Mervyns II Rex 2007 2,701 - -
------ -- --
Total $ 57,809 $ 102,901 1.8 X
========= ========== ====
In connection with its RCP Venture, in September 2004, Acadia Mervyns Investors
I, LLC ("Mervyns I") and Acadia Mervyns Investors II, LLC ("Mervyns II")
participated in the acquisition of the Mervyns Department Store chain consisting
of 262 stores ("REALCO") and its retail operation ("OPCO") from Target
Corporation for a total price of $1.2 billion. Mervyns I and II invested $23.2
million for approximately a 5.2% interest in REALCO and a 2.5% interest in OPCO,
equally split between Mervyns I and II.
To date, through a series of transactions, REALCO has disposed of a significant
portion of the portfolio. Furthermore, during November 2007, Mervyns I and II
sold their interest in OPCO and, as a result, have no further direct OPCO
exposure.
Page 43
QUARTERLY SUPPLEMENTAL DISCLOSURE
June 30, 2008
Core Portfolio Retail Properties - Detail
- -----------------------------------------
Gross Leasable Area Occupancy Annualized Base Rent per Occupied Square Foot
----------------------------------------------------------------------------------------------------
Anchors Shops Total Anchors Shops Total Anchors Shops Total AnchorsShops Total
----------------------------------------------------------------------------------------------------
Acadia's
interest
--------
New York
---------
Connecticut
- -----------
239 Greenwich
Avenue(1) 75.0% 16,834 - 16,834 100.00% -100.00% $1,397,621 $- $1,397,621 $83.02 $-$83.02
----------------------------------------------------------------------------------------------------
New Jersey
- ----------
Elmwood Park Shopping
Center 100.0% 62,610 86,881 149,491 100.00% 100.00% 100.00% 1,390,460 2,144,746 3,535,206 22.21 24.69 23.65
A & P Shopping Plaza 60.0% 49,463 13,445 62,908 100.00% 100.00% 100.00% 900,000 354,933 1,254,933 18.20 26.40 19.95
----------------------------------------------------------------------------------------------------
Total - New Jersey 112,073 100,326 212,399 100.00% 100.00% 100.00% 2,290,460 2,499,679 4,790,139 20.44 24.92 22.55
----------------------------------------------------------------------------------------------------
New York
- --------
Village Commons
Shopping Center 100.0% 16,125 71,112 87,237 0.00% 94.56% 77.08% - 2,008,693 2,008,693 - 29.87 29.87
Branch Plaza 100.0% 74,050 51,701 125,751 100.00% 96.79% 98.68% 1,120,544 1,371,194 2,491,738 15.13 27.40 20.08
Amboy Road 100.0% 46,964 16,326 63,290 100.00% 100.00% 100.00% 1,012,015 808,806 1,820,821 21.55 49.54 28.77
Bartow Avenue 100.0% - 14,676 14,676 -100.00% 100.00% - 455,693 455,693 - 31.04 31.04
Pacesetter Park
Shopping Center 100.0% 52,052 44,296 96,348 100.00% 85.66% 93.41% 372,562 745,304 1,117,866 7.16 19.64 12.42
2914 Third Avenue 100.0% 33,500 8,900 42,400 100.00% 100.00% 100.00% 550,000 325,028 875,028 16.42 36.52 20.64
LA Fitness 100.0% 55,000 - 55,000 100.00% -100.00% 1,265,000 - 1,265,000 23.00 - 23.00
West 54th Street 100.0% 4,211 5,734 9,945 100.00% 81.50% 89.33% 1,452,475 1,287,751 2,740,226 344.92 275.56 308.44
East 17th Street 100.0% 19,622 - 19,622 100.00% 0.00% 100.00% 625,000 - 625,000 31.85 - 31.85
Crossroads Shopping
Center 49.0% 200,181 110,533 310,714 92.51% 78.53% 87.54% 2,010,336 3,333,926 5,344,262 10.86 38.41 19.65
--------------------------------------------------------------------------------------------------------
Total - New York 501,705 323,278 824,983 93.80% 88.66% 91.78% 8,407,932 10,336,395 18,744,327 17.87 36.06 24.76
--------------------------------------------------------------------------------------------------------
Total New York 630,612 423,604 1,054,216 95.07% 91.34% 93.57% 12,096,013 12,836,074 24,932,087 20.18 33.17 25.28
--------------------------------------------------------------------------------------------------------
New England
-----------
Connecticut
- -----------
Town Line Plaza(2) 100.0% 163,159 43,187 206,346 100.00% 100.00% 100.00% 937,000 726,513 1,663,513 14.23 16.82 15.26
--------------------------------------------------------------------------------------------------------
Massachusetts
- -------------
Methuen Shopping
Center 100.0% 120,004 10,017 130,021 100.00% 100.00% 100.00% 736,464 222,225 958,689 6.14 22.18 7.37
Crescent Plaza 100.0% 156,985 61,156 218,141 100.00% 81.40% 94.79% 1,119,086 500,821 1,619,907 7.13 10.06 7.83
--------------------------------------------------------------------------------------------------------
Total - Massachusetts 276,989 71,173 348,162 100.00% 84.02% 96.73% 1,855,550 723,046 2,578,596 6.70 12.09 7.66
--------------------------------------------------------------------------------------------------------
New York
- ---------
New Loudon Center 100.0% 251,211 4,615 255,826 100.00% 100.00% 100.00% 1,598,532 113,178 1,711,710 6.36 24.52 6.69
--------------------------------------------------------------------------------------------------------
Rhode Island
- -------------
Walnut Hill Plaza 100.0% 121,892 162,825 284,717 100.00% 95.67% 97.52% 935,920 1,470,016 2,405,936 7.68 9.44 8.66
--------------------------------------------------------------------------------------------------------
Vermont
- -------
The Gateway Shopping
Center 100.0% 73,184 28,600 101,784 100.00% 84.38% 95.61% 1,317,312 494,081 1,811,393 18.00 20.47 18.61
--------------------------------------------------------------------------------------------------------
Total New England 886,435 310,4001,196,835 100.00% 92.62% 98.09% 6,644,314 3,526,834 10,171,148 8.42 12.27 9.45
--------------------------------------------------------------------------------------------------------
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) 239 Greenwich Avenue contains 16,834 square feet of retail GLA and 21
residential units encompassing 14,434 square feet. Residential activities are
not included above.
(2) Anchor GLA includes a 97,300 square foot Wal-Mart store which is not owned by
the Company. This square footage has been excluded for calculating annualized
base rent per square foot.
Page 44
Core Portfolio Acadia's
(continued): interest
---------------
Gross Leasable Area Occupancy Annualized Base Rent per Occupied Square Foot
----------------------------------------------------------------------------------------------------
Anchors Shops Total Anchors Shops Total Anchors Shops Total Anchors Shops Total
----------------------------------------------------------------------------------------------------
Midwest
- ----------------------
Illinois
- ----------------------
Hobson West Plaza 100.0% 51,692 47,214 98,906 100.00% 91.09% 95.75% $225,436 $952,315 $1,177,751 $4.36 $22.14 $12.44
Clark Diversey 100.0% - 19,265 19,265 -100.00% 100.00% - 810,061 810,061 - 42.05 42.05
--------------------------------------------------------------------------------------------------------
Total - Illinois 51,692 66,479 118,171 100.00% 93.67% 96.44% 225,436 1,762,376 1,987,812 4.36 28.30 17.44
Indiana
- ----------------------
Merrillville Plaza 100.0% 145,266 89,900 235,166 100.00% 86.25% 94.74% 1,550,549 1,292,691 2,843,240 10.67 16.67 12.76
Michigan
- ----------------------
Bloomfield Towne
Square 100.0% 152,944 79,237 232,181 99.03% 95.50% 97.83% 1,488,801 1,468,437 2,957,238 9.83 19.41 13.02
Ohio
- ----------------------
Mad River Station (1) 100.0% 68,296 87,542 155,838 100.00% 69.12% 82.65% 802,719 822,633 1,625,352 11.75 13.60 12.62
--------------------------------------------------------------------------------------------------------
Total Midwest 418,198 323,158 741,356 99.65% 85.40% 93.44% 4,067,505 5,346,137 9,413,642 9.76 19.37 13.59
--------------------------------------------------------------------------------------------------------
Mid-Atlantic
- ----------------------
New Jersey
- ----------------------
Marketplace of Absecon100.0% 58,031 47,088 105,119 100.00% 89.55% 95.32% 984,014 641,463 1,625,477 16.96 15.21 16.22
Ledgewood Mall (5) 100.0% 370,969 146,182 517,151 100.00% 55.98% 87.56% 2,997,859 1,084,819 4,082,678 8.08 13.26 9.02
--------------------------------------------------------------------------------------------------------
Total - New Jersey 429,000 193,270 622,270 100.00% 64.16% 88.87% 3,981,873 1,726,282 5,708,155 9.28 13.92 10.32
--------------------------------------------------------------------------------------------------------
Delaware
- ----------------------
Brandywine Town Center 22.2% 839,624 35,284 874,908 97.20% 100.00% 97.31% 12,306,935 586,393 12,893,327 15.08 16.62 15.14
Market Square Shopping
Center 22.2% 42,850 59,785 102,635 100.00% 79.84% 88.26% 561,516 1,365,809 1,927,325 13.10 28.61 21.28
Naamans Road 22.2% - 19,970 19,970 0.00% 100.00% 100.00% - 880,288 880,288 - 44.08 44.08
--------------------------------------------------------------------------------------------------------
Total - Delaware 882,474 115,039 997,513 97.34% 89.52% 96.44% 12,868,451 2,832,490 15,700,940 14.98 27.50 16.32
--------------------------------------------------------------------------------------------------------
Pennsylvania
- ----------------------
Blackman Plaza 100.0% 112,051 13,213 125,264 100.00% 28.97% 92.51% 268,519 20,400 288,919 2.40 5.33 2.49
Mark Plaza 100.0% 157,595 58,806 216,401 100.00% 59.69% 89.05% 652,095 276,238 928,333 4.14 7.87 4.82
Plaza 422 100.0% 132,845 22,304 155,149 78.47% 13.45% 69.12% 407,520 36,500 444,020 3.91 12.17 4.14
Route 6 Plaza 100.0% 146,498 29,007 175,505 100.00% 100.00% 100.00% 806,351 325,984 1,132,335 5.50 11.24 6.45
Chestnut Hill (2) 100.0% 31,420 9,150 40,570 100.00% 100.00% 100.00% 992,344 304,028 1,296,372 31.58 33.23 31.95
Abington Towne Center
(3) 100.0% 184,616 31,742 216,358 100.00% 94.75% 99.23% 270,000 707,847 977,847 10.00 23.54 17.13
--------------------------------------------------------------------------------------------------------
Total - Pennsylvania 765,025 164,222 929,247 96.26% 67.08% 91.10% 3,396,829 1,670,997 5,067,826 5.87 15.17 7.36
--------------------------------------------------------------------------------------------------------
Total Mid-Atlantic 2,076,499 472,531 2,549,030 97.49% 71.35% 92.64% 20,247,153 6,229,769 26,476,921 10.85 18.48 12.01
-----------------------------------------------------------------------------------------------------------
Total Core Properties 4,011,744 1,529,693 5,541,437 97.89% 84.17% 94.10% $43,054,985 $27,938,814 $70,993,798 $11.72 $21.70 $14.31
===========================================================================================================
Total Core Properties
-
weighted based on ownership
interest (4) 3,199,270 1,378,466 4,577,736 98.16% 83.99% 93.90% 31,311,227 23,893,428 55,204,655 $9.97 $20.64 $12.84
===========================================================================================================
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 GLA for this property includes 28,205 square feet of office space.
(2) This consists of two separate buildings.
(3) Anchor GLA includes a 157,616 square foot Target store which is not owned
by the Company. This square footage has been excluded for calculating
annualized base rent per square foot.
(4) Weighted based on Acadia's ownership interest in the properties.
(5) This property is under contract for sale.
Page 45
Reporting Supplement
June 30, 2008
Core Portfolio Retail Properties by State - Summary
- ----------------------------------------------------------------------
Gross Leasable Area Occupancy
-----------------------------------------------------
Ownership Percent
of Number of
% base properties Anchors Shops Total Anchors Shops Total
rent (2)
(1)
----------------------------------------------------------------------------------
Connecticut 75.0% 4.9% 2 179,993 43,187 223,180 100.00% 100.00% 100.00%
Delaware 22.2% 6.0% 3 882,474 115,039 997,513 97.34% 89.52% 96.44%
Illinois 100.0% 3.6% 2 51,692 66,479 118,171 100.00% 93.67% 96.44%
Indiana 100.0% 5.2% 1 145,266 89,900 235,166 100.00% 86.25% 94.74%
Massachusetts 100.0% 4.7% 2 276,989 71,173 348,162 100.00% 84.02% 96.73%
Michigan 100.0% 5.4% 1 152,944 79,237 232,181 99.03% 95.50% 97.83%
New Jersey 89.5% 18.2% 4 541,073 293,596 834,669 100.00% 76.41% 91.70%
New York 85.5% 32.3% 11 752,916 327,893 1,080,809 95.87% 88.82% 93.73%
Ohio 100.0% 2.9% 1 68,296 87,542 155,838 100.00% 69.12% 82.65%
Pennsylvania 100.0% 9.3% 6 765,025 164,222 929,247 96.26% 67.08% 91.10%
Rhode Island 100.0% 4.4% 1 121,892 162,825 284,717 100.00% 95.67% 97.52%
Vermont 100.0% 3.3% 1 73,184 28,600 101,784 100.00% 84.38% 95.61%
------------------------------------------------------------------------
Total - Core Portfolio 100.0% 35 4,011,744 1,529,693 5,541,437 97.89% 84.17% 94.10%
========================================================================
Annualized Base Rent
Annualized Base Rent per Occupied Square
Foot
---------------------------------------------------------
Anchors Shops Total Anchors Shops Totals
---------------------------------------------------------
Connecticut $2,334,621 $726,513 $3,061,134 $28.23 $16.82 $24.32
Delaware 12,868,451 2,832,490 15,700,940 14.98 27.50 16.32
Illinois 225,436 1,762,376 1,987,812 4.36 28.30 17.44
Indiana 1,550,549 1,292,691 2,843,240 10.67 16.67 12.76
Massachusetts 1,855,550 723,046 2,578,596 6.70 12.09 7.66
Michigan 1,488,801 1,468,437 2,957,238 9.83 19.41 13.02
New Jersey 6,272,333 4,225,961 10,498,294 11.59 18.84 13.72
New York 10,006,464 10,449,573 20,456,037 13.86 35.88 20.19
Ohio 802,719 822,633 1,625,352 11.75 13.60 12.62
Pennsylvania 3,396,829 1,670,997 5,067,826 5.87 15.17 7.36
Rhode Island 935,920 1,470,016 2,405,936 7.68 9.44 8.66
Vermont 1,317,312 494,081 1,811,393 18.00 20.47 18.61
---------------------------------------------------------
Total - Core Portfolio $43,054,985 $27,938,814 $70,993,798 $11.72 $21.70 $14.31
=========================================================
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.
Page 46
Reporting Supplement
June 30, 2008
Core Portfolio Top Tenants - Ranked by Annualized Base Rent (2)
-----------------------------------------------------------------
Wholly Owned Joint Ventures
-------------------------------------------
Number of
stores in Annualized Annualized
Retail combined Total Base Total Base
Ranking Tenant portfolio GLA Rent (1) GLA Rent (1)
- ----------------------------------------------------------------------------------------
1 A&P/Waldbaum's/Pathmark 5 197,502 $ 3,521,744 18,722 $246,960
2 Albertson's 4 220,625 3,012,896 - -
-- Shaw's 3 175,801 2,358,192 - -
-- Acme 1 44,824 654,704 - -
3 TJX Companies 8 230,627 1,765,050 6,972 88,189
-- T.J. Maxx 4 88,200 726,300 6,972 88,189
-- Marshalls 3 102,781 731,494 - -
-- Homegoods 1 39,646 307,256 - -
4 Sears 5 390,270 1,355,279 49,355 277,463
-- Kmart 4 329,570 1,097,279 49,355 277,463
-- Sears 1 60,700 258,000 - -
5 Wal-Mart 2 210,114 1,515,409 - -
6 Stage Deli 1 4,211 1,452,475 - -
7 Ahold (Stop and Shop) 2 117,911 1,309,562 - -
8 Barnes & Noble 3 32,122 849,000 6,091 194,902
9 Home Depot 2 211,003 1,009,646 - -
10 Circuit City 2 59,278 949,921 - -
11 Price Chopper 1 77,450 802,105 - -
12 Restoration Hardware 1 9,220 780,864 - -
13 Sleepy's 5 35,745 683,429 - -
14 Federated Department
Stores (Macy's) 1 73,349 651,245 - -
15 JC Penney 1 50,000 544,500 - -
16 Payless Shoesource 8 26,225 488,090 1,514 52,994
17 Brooks Drugs 3 32,142 511,565 - -
18 Express 1 12,882 510,344 - -
19 Border's 1 18,538 482,000 - -
20 Hallmark Cards 5 28,863 477,528 - -
-------------------------------------------------------
Total 58 2,005,955 $21,823,652 76,563 $665,606
========================================================
Percentage of Total
Combined Represented by Retail
Tenant
---------------------------------------------
Annualized Total Annualized
Retail Total Base Portfolio Base
Ranking Tenant GLA Rent (1) GLA (2) Rent (1)
- -----------------------------------------------------------------------------
1 A&P/Waldbaum's/Pathmark 216,224 $ 3,768,704 4.7% 6.8%
2 Albertson's 220,625 3,012,896 4.8% 5.5%
-- Shaw's 175,801 2,358,192 3.8% 4.3%
-- Acme 44,824 654,704 1.0% 1.2%
3 TJX Companies 237,599 1,853,239 5.2% 3.4%
-- T.J. Maxx 95,172 814,489 2.1% 1.5%
-- Marshalls 102,781 731,494 2.2% 1.3%
-- Homegoods 39,646 307,256 0.9% 0.6%
4 Sears 439,625 1,632,742 9.6% 3.0%
-- Kmart 378,925 1,374,742 8.3% 2.5%
-- Sears 60,700 258,000 1.3% 0.5%
5 Wal-Mart 210,114 1,515,409 4.6% 2.7%
6 Stage Deli 4,211 1,452,475 0.1% 2.6%
7 Ahold (Stop and Shop) 117,911 1,309,562 2.6% 2.4%
8 Barnes & Noble 38,213 1,043,902 0.8% 1.9%
9 Home Depot 211,003 1,009,646 4.6% 1.8%
10 Circuit City 59,278 949,921 1.3% 1.7%
11 Price Chopper 77,450 802,105 1.7% 1.5%
12 Restoration Hardware 9,220 780,864 0.2% 1.4%
13 Sleepy's 35,745 683,429 0.8% 1.2%
14 Federated Department
Stores (Macy's) 73,349 651,245 1.6% 1.2%
15 JC Penney 50,000 544,500 1.1% 1.0%
16 Payless Shoesource 27,739 541,084 0.6% 1.0%
17 Brooks Drugs 32,142 511,565 0.7% 0.9%
18 Express 12,882 510,344 0.3% 0.9%
19 Border's 18,538 482,000 0.4% 0.9%
20 Hallmark Cards 28,863 477,528 0.6% 0.9%
---------------------------------------------
Total 2,082,518 $22,489,258 45.5% 40.7%
=============================================
(1) Base rents do not include percentage rents (except where noted),
additional rents for property expense reimbursements, and
contractual rent escalations due after the date of this report.
(2) Represents total GLA and annualized base rent for the Company's
retail properties including its pro-rata share of Brandywine and
Crossroads.
Page 47
Core Portfolio Retail Anchor Detail
- --------------------------------------------
Core Portfolio Retail Anchor Detail
- --------------------------------------------
Annual Annual
Property/Tenant Name Square Lease Base Base
(Type of Center) Footage Expiration Rent Rent PSF Options
- -------------------------------------------------------------------------------------------------------------------------
New York
- --------------------------------------------
Connecticut
- --------------------------------------------
239 Greenwich Ave., Greenwich
Coach 4,541 1/31/2016 356,469 78.50 (1) 5 Year
Restoration Hardware 12,293 9/30/2014 1,041,152 84.69 (2) 5 Years
--------------- ------------ -------------
16,834 1,397,621 83.02
--------------- ------------ -------------
New Jersey
- --------------------------------------------
Elmwood Park Shopping Center, Elmwood Park
Walgreens 14,837 5/31/2022 435,000 29.32 (8) 5 Year
Pathmark (A&P) 47,773 11/30/2017 955,460 20.00 (7) 5 Year
--------------- ------------ -------------
62,610 1,390,460 22.21
--------------- ------------ -------------
A&P Shopping Plaza, Boonton
A&P 49,463 10/26/2024 900,000 18.20 (9) 5 Year
--------------- ------------ -------------
New York
- --------------------------------------------
Branch Plaza, Smithtown
CVS 11,050 5/31/2010 199,580 18.06 -
A&P 63,000 11/30/2013 920,964 14.62 (3) 5 Year
--------------- ------------ -------------
74,050 1,120,544 15.13
--------------- ------------ -------------
Amboy Shopping Center, Staten Island
Waldbaum's (A&P) 37,266 7/6/2028 745,320 20.00 -
Duane Reed 9,698 8/31/2008 266,695 27.50 (2) 5 Year
--------------- ------------ -------------
46,964 1,012,015 21.55
--------------- ------------ -------------
Pacesetter Park Shopping Center, Pomona
Stop & Shop 52,052 8/31/2020 372,562 7.16 (2) 10 Year
--------------- ------------ -------------
2914 Third Avenue
Dr. J's 33,500 1/31/2021 550,000 16.42
--------------- ------------ -------------
LA Fitness, Staten Island
LA Fitness 55,000 1/31/2021 1,265,000 23.00
--------------- ------------ -------------
West 54th Street
Stage Deli 4,211 3/31/2013 1,452,475 344.92
--------------- ------------ -------------
East 17th Street
Barnes & Noble 19,622 4/30/2011 625,000 31.85 (1) 5 Year
--------------- ------------ -------------
Crossroads Shopping Center, White Plains
Kmart 100,725 1/31/2012 566,250 $5.62 (4) 5 Year
Waldbaum's (A&P) 38,208 12/31/2012 504,000 13.19 (4) 5 Year
Barnes & Noble 12,430 5/28/2012 397,760 32.00 (2) 5 Year
Pier 1 8,818 2/29/2012 348,576 39.53 -
Modell's 25,000 2/28/2009 193,750 7.75 (2) 5 Year
--------------- ------------ -------------
185,181 2,010,336 10.86
--------------- ------------ -------------
Total New York 599,487 12,096,013 20.18
--------------- ------------ -------------
Page 48
Retail Anchor Properties- Core Portfolio (continued)
- ----------------------------------------------------
New England
------------
Connecticut
- -----------
Town Line Plaza, Rocky Hill
Wal*Mart( 1)
97,300 - $ - $ - REA Agreement
Super Stop & Shop (Ahold) 65,859 11/30/2024 937,000 14.23 (8) 5 Year
--------------- ------------ -------------
163,159 937,000 14.23
--------------- ------------ -------------
(1) This space is contiguous to the
Company's property and is not owned by
the Company.
Massachusetts
- -------------
Methuen Shopping Center, Methuen
Demoulas Super Markets 30,460 1/31/2015 109,656 3.60 (1) 5 Year
Wal*Mart 89,544 1/31/2012 626,808 7.00 (8) 5 Year
--------------- ------------ -------------
120,004 736,464 6.14
--------------- ------------ -------------
Crescent Plaza, Brockton
Home Depot 106,760 10/31/2021 602,126 5.64 (7) 5 Year
Shaw's (Albertsons) 50,225 12/31/2012 516,960 10.29 (6) 5 Year
--------------- ------------ -------------
156,985 1,119,086 7.13
--------------- ------------ -------------
New York
- --------
New Loudon Center, Latham
Bon Ton 65,365 2/1/2014 261,460 4.00 (4) 5 Year
Marshalls 37,212 1/31/2014 158,151 4.25 (3) 5 Year
Price Chopper 77,450 5/31/2015 802,105 10.36 (4) 5 Year
A.C. Moore 21,520 4/30/2009 221,226 10.28 (3) 5 Year
Raymours Furniture Co 49,664 4/30/2019 155,591 3.13 (3) 5 Year
--------------- ------------ -------------
251,211 1,598,533 6.36
--------------- ------------ -------------
Rhode Island
- -------------
Walnut Hill Plaza, Woonsocket
Sears 60,700 8/31/2008 258,000 4.25 (5) 5 Year
CVS 8,800 1/31/2009 154,000 17.50 (1) 5 Year
Shaw's (Albertsons) 52,392 12/31/2013 523,920 10.00 (3) 5 Year
--------------- ------------ -------------
121,892 935,920 7.68
--------------- ------------ -------------
Vermont
- --------
Gateway Shopping Center, N. Burlington
Shaw's (Albertsons) 73,184 3/31/2024 1,317,312 18.00 (5) 5 Yr. & (1) 4 Yr.
--------------- ------------ -------------
Total New England 886,435 6,644,315 8.42
--------------- ------------ -------------
Midwest
- -------
Illinois
- --------
Hobson West Plaza, Naperville
Garden Fresh Markets 51,692 11/30/2012 225,436 4.36 (4) 5 Year
--------------- ------------ -------------
Indiana
- --------
Merrillville Plaza, Merrillville
K & G Fashion Superstore 21,500 10/15/2017 269,647 12.54 (2) 5 Year
JC Penney 50,000 1/31/2013 544,500 10.89 (1) 5 Year
Officemax 26,157 8/31/2008 222,335 8.50 (4) 5 Year
Pier I 9,143 1/31/2009 128,002 14.00 -
David's Bridal 13,266 11/19/2010 190,765 14.38 (2) 5 Year
TJ Maxx 25,200 1/31/2009 195,300 7.75 (1) 5 Year
--------------- ------------ -------------
145,266 1,550,549 10.67
--------------- ------------ -------------
Michigan
- --------
Bloomfield Town Square, Bloomfield Hills
Circuit City 25,984 1/31/2023 500,452 19.26 (3) 5 Year
HomeGoods 39,646 5/31/2010 307,257 7.75 (2) 5 Year
Officemax 21,500 6/30/2010 193,500 9.00 (3) 5 Year
Marshalls 28,324 9/30/2011 226,592 8.00 (3) 5 Year
TJ Maxx 36,000 1/31/2009 261,000 7.25 (1) 5 Year
--------------- ------------ -------------
151,454 1,488,801 9.85
--------------- ------------ -------------
Ohio
- ----
Mad River Station, Dayton
Babies 'R' Us 33,147 2/28/2010 260,204 7.85 (2) 5 Year
Pier I 10,111 2/28/2010 227,037 22.45 -
Office Depot 25,038 8/31/2010 315,478 12.60 -
--------------- ------------ -------------
68,296 802,719 11.75
--------------- ------------ -------------
Total Midwest 416,708 4,067,505 9.76
--------------- ------------ -------------
Page 49
Retail Anchor Properties- Core Portfilio (continued)
- ----------------------------------------------------
Mid-Atlantic
- ----------------------------------------------
New Jersey
- ----------------------------------------------
Marketplace of Absecon, Absecon
Eckerd Drug (Brook's) 13,207 8/30/2020 329,310 24.93 (4) 5 Year
Acme Markets (Albertson) 44,824 4/30/2015 654,704 14.61 (8) 5 Year
--------------- ------------ -------------
58,031 984,014 16.96
--------------- ------------ -------------
Ledgewood Mall, Ledgewood
Circuit City 33,294 1/31/2020 449,469 13.50 (4) 5 Year
Ashley Furniture 41,806 12/31/2010 212,793 5.09 (2) 5 Year
Barnes & Noble 12,500 1/31/2010 224,000 17.92 (5) 5 Year
Marshalls 37,245 9/30/2014 346,751 9.31 (4) 5 Year
The Sports Authority 52,205 5/31/2012 225,000 4.31 (5) 5 Year
Macy's Department Store (Federated) 73,349 1/31/2010 651,245 8.88 (3) 5 Year
Wal*Mart 120,570 3/31/2019 888,601 7.37 (6) 5 Year
--------------- ------------ -------------
370,969 2,997,859 8.08
--------------- ------------ -------------
Delaware
- ----------------------------------------------
Brandywine Town Center, Wilmington
Lowe's Home Centers 140,000 8/31/2018 1,925,000 13.75 (6) 5 Year
Target 138,000 1/31/2018 800,000 5.80 (4) 10 Year
Target expansion 27,716 1/31/2011 304,876 11.00 (1) 2 Year &
(10) 5 year
Access Group 76,458 5/31/2015 1,610,205 21.06 (2) 5 Year
Regal Cinemas 65,641 6/1/2017 861,210 13.12 (4) 5 Year
Bed, Bath & Beyond 50,977 1/31/2014 868,426 17.04 (3) 5 Year
Dick's Sporting Goods 50,000 5/31/2013 700,000 14.00 (3) 5 Year
Christmas Tree Shops 48,000 1/31/2028 540,000 11.25 (4) 5 Year
Michaels 24,876 2/28/2011 572,148 23.00 (3) 5 Year
Old Navy (The Gap) 24,631 4/30/2011 617,745 25.08 (1) 5 Year
Petsmart 23,963 6/30/2017 479,256 20.00 (5) 5 Year
Thomasville Furniture 18,893 12/31/2011 494,832 26.19 (10) 1 Year
World Market 20,310 1/31/2015 406,200 20.00
Transunion Settlement 43,307 3/31/2013 995,742 22.99 (5) 1 Year
Drexel Heritage 16,525 12/31/2016 396,600 24.00 (2) 5 Year
Lane Home Furnishings 21,827 10/31/2015 409,693 18.77 (3) 5 Year
MJM Designer 25,000 9/30/2015 325,000 13.00 (3) 5 Year
--------------- ------------ -------------
816,124 12,306,933 15.08
--------------- ------------ -------------
Market Square Shopping Center Wilmington
Trader Joe's 11,675 1/31/2013 164,629 14.10 (3) 5 Year
TJ Maxx 31,175 1/31/2011 396,888 12.73 (1) 5 Year
--------------- ------------ -------------
42,850 561,517 13.10
--------------- ------------ -------------
Pennsylvania
- ----------------------------------------------
Blackman Plaza, Wilkes-Barre
Eckerd Drug (Brook's) 7,095 7/31/2016 63,855 9.00 -
Kmart 104,956 10/31/2009 204,664 1.95 (8) 5 Year
--------------- ------------ -------------
112,051 268,519 2.40
--------------- ------------ -------------
Mark Plaza, Edwardsville
Kmart 104,956 10/31/2009 204,664 1.95 (8) 5 Year
Redner's Market 52,639 5/31/2018 447,431 8.50 (2) 5 Year
--------------- ------------ -------------
157,595 652,095 4.14
--------------- ------------ -------------
Plaza 422, Lebanon
Home Depot 104,243 12/31/2028 407,520 3.91 (6) 5 Year
--------------- ------------ -------------
Route 6 Mall, Honesdale
Eckerd Drugs (Brook's) 11,840 1/31/2011 118,400 10.00 (3) 5 Year
Fashion Bug 15,000 1/31/2016 - - -
Kmart 119,658 4/30/2020 687,951 5.75 (10) 5 Year
--------------- ------------ -------------
146,498 806,351 5.50
--------------- ------------ -------------
Abington Town Center, Abington
TJ Maxx 27,000 11/30/2010 $270,000 $10.00 (2) 5 Year
Target( 1) 157,616 - - - Condominium Agreement
--------------- ------------ -------------
184,616 270,000 10.00
--------------- ------------ -------------
Chestnut Hill Shoppes, Philadelphia
Express 12,882 1/31/2009 $510,344 $39.62
Borders Books 18,538 1/31/2010 482,000 26.00 (2) 5 Year
--------------- ------------ -------------
31,420 992,344 31.58
--------------- ------------ -------------
Total Mid-Atlantic 2,024,397 20,247,152 10.85
--------------- ------------ -------------
Total Core Portfolio Retail Anchor Properties 3,927,027 $43,054,985 $11.72
=============== ============ =============
(1 )Target owns the portion of the main building (157,616 square feet) that their store is located in.
Page 50
Reporting Supplement
June 30, 2008
Core Portfolio Anchor Lease Expirations - Next 4 Years
- ------------------------------------------------------------------
Gross Leased Area Annualized Base Rent
---------------------- -------------------------------
Percent Percent Average
Square of of per
Center Anchor footage all anchors Amount all anchors Sq. Ft.
- -------------------------------------------------------------------------------------------------------
2008
Merrillville Plaza OfficeMax 26,157 0.71% 222,335 0.52% 8.50
Market Square Shopping Trader Joe's
Center 11,675 0.32% 164,629 0.38% 14.10
Amboy Shopping Center Duane Reade 9,698 0.26% 266,695 0.62% 27.50
Walnut Hill Plaza Sears 60,700 1.65% 258,000 0.60% 4.25
----------- ---------- ---------- ----------- --------
Total 2008 108,230 2.94% 911,659 2.12% 8.42
----------- ---------- ---------- ----------- --------
2009
Crossroads Shopping Modell's
Center 25,000 0.68% 193,750 0.45% 7.75
Chestnut Hill Express 12,882 0.35% 510,344 1.19% 39.62
Bloomfield Town Square TJ Maxx 36,000 0.98% 261,000 0.61% 7.25
Walnut Hill Plaza CVS 8,800 0.24% 154,000 0.36% 17.50
Merrillville Plaza Pier I 9,143 0.25% 128,002 0.30% 14.00
Merrillville Plaza TJ Maxx 25,200 0.68% 195,300 0.45% 7.75
New Loudon Center AC Moore Arts &
Crafts 21,520 0.58% 221,226 0.51% 10.28
Blackman Plaza Kmart 104,956 2.85% 204,664 0.48% 1.95
Mark Plaza Kmart 104,956 2.85% 204,664 0.48% 1.95
----------- ---------- ---------- ----------- --------
Total 2009 348,457 9.46% 2,072,950 4.83% 5.95
----------- ---------- ---------- ----------- --------
2010
Chestnut Hill Borders Books 18,538 0.50% 482,000 1.12% 26.00
Methuen Shopping Demoulas Supermarket
Center 30,460 0.83% 109,656 0.25% 3.60
Ledgewood Mall Barnes & Noble 12,500 0.34% 224,000 0.52% 17.92
Ledgewood Mall Macy's 73,349 1.99% 651,245 1.51% 8.88
Ledgewood Mall Ashley Furniture 41,806 1.13% 212,793 0.49% 5.09
Mad River Station Babies 'R' Us 33,147 0.90% 260,204 0.60% 7.85
Mad River Station Pier I Imports 10,111 0.27% 227,037 0.53% 22.45
Mad River Station Office Depot Inc. 25,038 0.68% 315,479 0.73% 12.60
Bloomfield Town Square Home Goods Inc. 39,646 1.08% 307,257 0.71% 7.75
Bloomfield Town Square Officemax Inc. 21,500 0.58% 193,500 0.45% 9.00
Branch Plaza CVS Revco Drugs 11,050 0.30% 199,580 0.46% 18.06
Merrillville David's Bridal 13,266 0.36% 190,765 0.44% 14.38
Abington Towne Center TJ Maxx 27,000 0.73% 270,000 0.63% 10.00
----------- ---------- ---------- ----------- --------
Total 2010 357,411 9.69% 3,643,516 8.44% 10.19
----------- ---------- ---------- ----------- --------
2011
Route 6 Plaza Rite Aid 11,840 0.32% 118,400 0.27% 10.00
Bloomfield Town Square Marshalls 28,324 0.77% 226,592 0.53% 8.00
Market Square Shopping TJ Maxx
Center 31,175 0.85% 396,888 0.92% 12.73
Brandywine Town Center Target Expansion 27,716 0.75% 304,876 0.71% 11.00
Brandywine Town Center Michaels 24,876 0.67% 572,148 1.33% 23.00
Brandywine Town Center Old Navy 24,631 0.67% 617,745 1.43% 25.08
Brandywine Town Center Thomasville
Furniture 18,893 0.51% 494,832 1.15% 26.19
----------- ---------- ---------- ----------- --------
Total 2011 167,455 4.54% 2,731,481 6.34% 16.31
----------- ---------- ---------- ----------- --------
Total Core Portfolio Total - Next 4 Years 981,553 26.63% $9,359,606 21.73% $9.54
=========== ========== ========== =========== ========
Page 51
Reporting Supplement
June 30, 2008
Core Portfolio Lease Expirations
- --------------------------------------------
Gross Leased Area Annualized Base Rent
----------------------- -------------------------------------
Number of Percent Percent Average
Leases Square of of per
Expiring Footage Total Amount Total Sq. Ft.
-------------------------------------- -------------------------------------
Anchor Tenant Expirations
Month to Month - - 0.00% $ - 0.00% #DIV/0!
2008 5 122,765 3.33% 911,659 2.12% 7.43
2009 9 348,457 9.45% 2,072,950 4.81% 5.95
2010 14 357,411 9.69% 3,643,515 8.46% 10.19
2011 9 171,666 4.66% 4,183,955 9.72% 24.37
2012 8 403,847 10.97% 3,410,790 7.92% 8.45
2013 6 278,321 7.55% 4,310,126 10.00% 15.49
2014 6 203,092 5.51% 2,675,940 6.22% 13.18
2015 7 265,869 7.21% 4,207,907 9.77% 15.83
2016 4 43,161 1.17% 816,924 1.90% 18.93
2017 4 158,877 4.31% 2,565,573 5.96% 16.15
2018 3 330,639 8.97% 3,172,432 7.37% 9.59
2019 3 170,234 4.62% 1,044,192 2.43% 6.13
2020 4 218,211 5.92% 1,839,292 4.27% 8.43
2021 2 140,260 3.80% 1,152,126 2.68% 8.21
2022 2 69,837 1.89% 1,700,000 3.95% 24.34
2023 1 25,984 0.70% 500,452 1.16% 19.26
2024 3 188,506 5.11% 3,154,312 7.33% 16.73
2028 4 189,509 5.14% 1,692,840 3.93% 8.93
------------ ---------- ---------- ----------- ------------ ----------
Total Occupied 94 3,686,646 100.00% $43,054,985 100.00% $11.68
============ ========== ========== =========== ============ ==========
- --------------------------------------------
Anchor GLA Owned by Tenants 254,916
Total Vacant 70,182
----------
Total Square Feet 4,011,744
==========
- --------------------------------------------
Shop Tenant Expirations
Month to Month 19 57,813 4.47% $ 1,341,244 4.80% $23.20
2008 32 97,189 7.52% 2,152,722 7.72% 22.15
2009 67 204,684 15.83% 3,979,705 14.24% 19.44
2010 51 158,428 12.22% 2,582,713 9.24% 16.30
2011 43 152,154 11.77% 3,173,103 11.36% 20.85
2012 44 160,281 12.40% 3,210,217 11.49% 20.03
2013 29 110,216 8.52% 2,180,337 7.80% 19.78
2014 18 86,320 6.68% 1,982,452 7.10% 22.97
2015 12 61,234 4.74% 1,172,529 4.20% 19.15
2016 8 38,365 2.97% 953,650 3.41% 24.86
2017 17 54,763 4.24% 2,236,529 8.01% 40.84
2018 11 29,061 2.25% 1,002,830 3.59% 34.51
2019 2 5,054 0.39% 51,206 0.18% 10.13
2020 3 6,000 0.46% 142,500 0.51% 23.75
2021 3 30,270 2.34% 244,385 0.87% 8.07
2022 4 20,055 1.55% 518,708 1.86% 25.86
2026 1 8,999 0.70% 296,967 1.06% 33.00
2027 2 9,012 0.70% 442,017 1.58% 49.05
2028 1 3,200 0.25% 275,000 0.98% 85.94
------------ ---------- ---------- ----------- ------------ ----------
Total Occupied 367 1,293,098 100.00% $27,938,814 100.00% $21.61
============ ========== ========== =========== ============ ==========
- --------------------------------------------
Total Vacant 236,595
----------
Total Square Feet 1,529,693
==========
- --------------------------------------------
Page 52
Reporting Supplement
June 30, 2008
Core Portfolio Lease Expirations
- --------------------------------------------
Gross Leased Area Annualized Base Rent
----------------------- -------------------------------------
Number of Percent Percent Average
Leases Square of of per
Expiring Footage Total Amount Total Sq. Ft.
------------ ---------- ---------- ----------- ------------ ----------
Total Anchor and Shop Tenant Expirations
Month to Month 19 $ 57,813 1.16% $ 1,341,244 1.89% $23.20
2008 37 219,954 4.42% 3,064,381 4.32% 13.93
2009 76 553,141 11.11% 6,052,655 8.53% 10.94
2010 65 515,839 10.36% 6,226,228 8.77% 12.07
2011 52 323,820 6.50% 7,357,058 10.37% 22.72
2012 52 564,128 11.33% 6,621,007 9.33% 11.74
2013 35 388,537 7.80% 6,490,463 9.14% 16.70
2014 24 289,412 5.81% 4,658,392 6.56% 16.10
2015 19 327,103 6.57% 5,380,436 7.58% 16.45
2016 12 81,526 1.64% 1,770,574 2.49% 21.72
2017 21 213,640 4.29% 4,802,102 6.76% 22.48
2018 14 359,700 7.22% 4,175,262 5.88% 11.61
2019 5 175,288 3.52% 1,095,398 1.54% 6.25
2020 7 224,211 4.50% 1,981,792 2.79% 8.84
2021 5 170,530 3.42% 1,396,511 1.97% 8.19
2022 6 89,892 1.81% 2,218,708 3.13% 24.68
2023 1 25,984 0.52% 500,452 0.70% 19.26
2024 3 188,506 3.79% 3,154,312 4.44% 16.73
2026 1 8,999 0.18% 296,967 0.42% 33.00
2027 2 9,012 0.18% 442,017 0.62% 49.05
2028 5 192,709 3.87% 1,967,839 2.77% 10.21
------------ ---------- ---------- ----------- ------------ ----------
Total Occupied 461 $4,979,744 100.00% $70,993,798 100.00% $14.26
============ ========== ========== =========== ============ ==========
- --------------------------------------------
Anchor GLA Owned by Tenants 254,916
Total Vacant 306,777
----------
Total Square Feet 5,541,437
==========
- --------------------------------------------
Page 53
Reporting Supplement
June 30, 2008
--------------- ------------- --------------- ---------------
Core Portfolio Year-to-Date 3 months 3 months ended Year ended
ended
New and Renewal Rent Spreads (1) June 30, 2008 June 30, 2008 March 31, 2008 December 31,
2007
-------------------------------------------------- --------------- ------------- --------------- ---------------
Cash GAAP Cash GAAP Cash GAAP Cash GAAP
(2) (3) (2) (3) (2) (3) (2) (3)
------- ------- ------- ------- ------- -------
New leases
Number of new leases commencing 4 4 3 3 1 1 20 20
GLA 32,462 32,462 3,814 3,814 28,648 28,648 98,193 98,193
New base rent $13.98 $15.40 $70.14 $79.06 $6.50 $6.93 $19.51 $21.06
Previous base rent (and percentage rent) $11.68 $11.52 $56.22 $54.90 $5.75 $5.75 $13.12 $12.92
Percentage growth in base rent 19.7% 33.7% 24.8% 44.0% 13.0% 20.5% 48.7% 63.0%
Average cost per square foot $4.95 $4.95 $26.70 $26.70 $2.06 $2.06 $21.25 $21.25
Renewal leases
Number of renewal leases commencing 29 29 11 11 18 18 33 33
GLA expiring 200,033 200,033 38,978 38,978 161,055 161,055 325,424 325,424
Renewal percentage 69% 69% 38% 38% 77% 77% 76% 76%
New base rent $17.95 $18.26 $31.71 $32.97 $16.30 $16.50 $11.66 $11.96
Expiring base rent (and percentage rent) $16.88 $16.24 $30.64 $28.69 $15.23 $14.75 $8.36 $8.13
Percentage growth in base rent 6.3% 12.4% 3.5% 14.9% 7.0% 11.9% 39.5% 47.1%
Average cost per square foot $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Total new and renewal Leases
Number of new and renewal leases commencing 33 33 14 14 19 19 53 53
GLA commencing 170,464 170,464 18,560 18,560 151,904 151,904 346,066 346,066
New base rent $17.19 $17.72 $39.61 $42.44 $14.45 $14.70 $13.89 $14.54
Expiring base rent (and percentage rent) $15.89 $15.34 $35.90 $34.08 $13.44 $13.05 $9.71 $9.49
Percentage growth in base rent 8.2% 15.5% 10.3% 24.5% 7.5% 12.6% 43.0% 53.2%
Average cost per square foot $0.94 $0.94 $5.49 $5.49 $0.39 $0.39 $6.03 $6.03
------- ------- ------ ------ ------- ------- ------- -------
(1) Does not include leased square footage and costs related to first generation space and the Company's major
redevelopment projects.
(2) Rents 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.
(3) Rents are calculated on a straight-line basis.
Page 54
Reporting Supplement
June 30, 2008
Core Portfolio Capital Expenditures
- ---------------------------------------------------
------------------ ---------------- ----------------- -------------------
Year-to-Date Current Previous
Quarter Quarter
Period 3 months 3 months Year
ended ended ended ended
June 30, 2008 June 30, 2008 March 31, 2008 December 31, 2007
------------------ ---------------- ----------------- -------------------
Leasing Commissions: $ 266 $ 140 $ 126 $ 845
Tenant Improvements: 546 308 238 3,667
Capital Expenditures: 122 78 44 1,978
Redevelopments - - - 1,179
------------------ ---------------- ----------------- -------------------
Total $ 934 $ 526 $ 408 $ 7,669
================== ================ ================= ===================
Page 55
QUARTERLY SUPPLEMENTAL DISCLOSURE
June 30, 2008
Property Demographics (1)
-------------------------
- -------------------------------------------------------------------------------------
Trade Cash (2)
Area Base Total
Classification Property / JV City State (Miles) Rent GLA
Ownership %
- -------------------------------------------------------------------------------------
Core Brandywine Town Wilmington DE
Center & Mkt
Sq./22.22% 3 15,700,940 997,513
Core Elmwood Park Elmwood Park NJ
Shopping Ctr. 3 3,535,206 149,491
Core Chestnut Hill Philadelphia PA 3 1,296,372 40,570
Core Abington Towne Abington PA
Center 3 977,847 216,358
Core Clark & Diversey Chicago IL 3 810,061 19,265
Core Hobson West Plaza Naperville IL 3 1,177,751 98,906
Core Methuen Shopping Methuen MA
Ctr. 5 958,689 130,021
Core Crossroads Shopping White Plains NY
Ctr. / 49% 3 5,344,262 310,714
Core The Branch Plaza Smithtown NY 3 2,491,738 125,751
Core Amboy Road Staten NY
Island 3 1,820,821 63,290
Core Village Commons Smithtown NY
Shopping Ctr. 3 2,008,693 87,237
Core Bloomfield Town Bloomfield MI
Square Hills 5 2,957,238 232,181
Core Crescent Plaza Brockton MA 3 1,619,907 218,141
Core 239 Greenwich Avenue Greenwich CT
/ 75% 5 1,397,621 16,834
Core Town Line Plaza Rocky Hill CT 3 1,663,513 206,346
Core New Loudon Center Latham NY 5 1,711,710 255,826
Core Pacesetter Park Pomona NY
Shopping Ctr. 3 1,117,866 96,348
Core 2914 Third Ave The Bronx NY 3 875,028 42,400
Core LA Fitness, Staten Staten NY
Island Island 3 1,265,000 55,000
Core West 54th Street Manhattan NY 3 2,740,226 9,945
Core East 17th Street Manhattan NY 3 625,000 19,622
Core Mad River Station Dayton OH 5 1,625,352 155,838
Core Mark Plaza Edwardsville PA 5 928,333 216,401
Core Blackman Plaza Wilkes-Barre PA 5 288,919 125,264
Core Bartow Avenue The Bronx NY 3 455,693 14,676
Core Walnut Hill Plaza Woonsocket RI 5 2,405,936 284,717
Core Ledgewood Mall Ledgewood NJ 5 4,082,678 517,151
Core A & P Shopping Plaza Boonton NJ
/ 60% 5 1,254,933 62,908
Core Merrillville Plaza Hobart IN 5 2,843,240 235,166
Core The Gateway Shopping So. VT
Ctr. Burlington 3 1,811,393 101,784
Core Marketplace of Absecon NJ
Absecon 3 1,625,477 105,119
Core Plaza 422 Lebanon PA 3 444,020 155,149
Core Route 6 Plaza Honesdale PA 5 1,132,335 175,505
Fund I Granville Center / Columbus OH
37.78% 3 614,083 134,997
Fund I Sterling Heights Sterling MI
Shopping Center / Heights
18.9% 3 644,519 154,835
Fund I Tarrytown Shopping Tarrytown NY
Center / 37.78% 3 971,822 35,291
Fund II- Urban 400 East Fordham The Bronx NY
In-Fill Road / 19.2% 2 - -
Fund II- Urban Sherman Avenue / Manhattan NY
In-Fill 19.2% 2 - -
Fund II- Urban Pelham Manor Westchester NY
In-Fill Shopping Plaza /
19.2% 3 - -
Fund II- Urban 161st Street /19.2% The Bronx NY
In-Fill 2 4,530,723 223,521
Fund II- Urban Liberty Avenue / Queens NY
In-Fill 19.2% 3 612,845 17,088
Fund II- Urban 216th Street / 19.2% Manhattan NY
In-Fill 2 2,565,000 60,000
Fund II- Other Oakbrook/ 20% Oakbrook IL 3 825,000 112,000
- -------------------------------------------------------------------------------------
81,757,790 6,279,169
----------------------
TOTAL
Weighted Average - Based on GLA
Weighted Average - Based on base rent( 1)
CORE
Weighted Average - Based on GLA
Weighted Average - Based on base rent( 1)
FUND I
Weighted Average - Based on GLA
Weighted Average - Based on base rent( 1)
FUND II -Urban In-fill
Weighted Average - Based on GLA
Weighted Average - Based on base rent( 1)
FUND II -Other
Weighted Average - Based on GLA
Weighted Average - Based on base rent( 1)
- -----------------------------------------------------------------------------------------------
3-Mile Radius(2)
----------------------------------------
#
Total Households Median HH Avg. HH
Classification Property / JV City State Pop. ("HH") Income Income
Ownership %
- -----------------------------------------------------------------------------------------------
Core Brandywine Town Wilmington DE
Center & Mkt
Sq./22.22% 41,222 15,054 $83,769 $102,192
Core Elmwood Park Elmwood Park NJ
Shopping Ctr. 257,647 83,959 52,609 62,446
Core Chestnut Hill Philadelphia PA 148,084 59,791 53,526 65,990
Core Abington Towne Abington PA
Center 91,293 34,692 66,882 82,491
Core Clark & Diversey Chicago IL 419,461 213,740 58,803 81,579
Core Hobson West Plaza Naperville IL 98,083 34,231 94,977 114,120
Core Methuen Shopping Methuen MA
Ctr. 89,957 31,569 41,619 49,981
Core Crossroads Shopping White Plains NY
Ctr. / 49% 105,870 39,349 78,556 85,621
Core The Branch Plaza Smithtown NY 68,832 23,221 89,522 113,455
Core Amboy Road Staten NY
Island 156,384 56,991 69,666 90,260
Core Village Commons Smithtown NY
Shopping Ctr. 68,832 23,221 89,522 113,455
Core Bloomfield Town Bloomfield MI
Square Hills 62,528 23,953 73,997 102,234
Core Crescent Plaza Brockton MA 99,649 34,369 46,062 56,826
Core 239 Greenwich Avenue Greenwich CT
/ 75% 67,165 24,889 97,270 125,159
Core Town Line Plaza Rocky Hill CT 45,606 19,067 65,917 75,855
Core New Loudon Center Latham NY 41,815 15,619 55,375 66,288
Core Pacesetter Park Pomona NY
Shopping Ctr. 25,618 8,209 89,598 125,526
Core 2914 Third Ave The Bronx NY 1,239,853 422,421 26,865 33,419
Core LA Fitness, Staten Staten NY
Island Island 127,542 45,026 65,178 83,167
Core West 54th Street Manhattan NY 582,613 325,406 80,037 96,770
Core East 17th Street Manhattan NY 1,027,933 495,157 64,629 116,133
Core Mad River Station Dayton OH 58,692 25,428 58,119 67,529
Core Mark Plaza Edwardsville PA 87,986 37,409 31,982 39,628
Core Blackman Plaza Wilkes-Barre PA 58,885 24,646 30,982 40,002
Core Bartow Avenue The Bronx NY 567,476 209,231 40,253 47,643
Core Walnut Hill Plaza Woonsocket RI 60,322 22,861 42,715 47,867
Core Ledgewood Mall Ledgewood NJ 37,052 13,412 80,007 87,773
Core A & P Shopping Plaza Boonton NJ
/ 60% 49,442 18,288 87,533 113,042
Core Merrillville Plaza Hobart IN 26,118 10,066 56,556 64,248
Core The Gateway Shopping So. VT
Ctr. Burlington 46,879 19,366 44,294 55,033
Core Marketplace of Absecon NJ
Absecon 30,732 11,642 52,106 64,775
Core Plaza 422 Lebanon PA 43,975 17,347 36,874 47,144
Core Route 6 Plaza Honesdale PA 7,567 3,014 32,283 43,919
Fund I Granville Center / Columbus OH
37.78% 112,547 47,337 47,547 53,746
Fund I Sterling Heights Sterling MI
Shopping Center / Heights
18.9% 99,813 36,587 66,886 77,416
Fund I Tarrytown Shopping Tarrytown NY
Center / 37.78% 36,856 13,450 78,415 95,294
Fund II- Urban 400 East Fordham The Bronx NY
In-Fill Road / 19.2% 1,205,053 412,674 30,252 38,298
Fund II- Urban Sherman Avenue / Manhattan NY
In-Fill 19.2% 535,739 175,108 29,260 36,324
Fund II- Urban Pelham Manor Westchester NY
In-Fill Shopping Plaza /
19.2% 398,727 147,238 48,697 56,116
Fund II- Urban 161st Street /19.2% The Bronx NY
In-Fill 1,274,483 427,111 25,104 31,477
Fund II- Urban Liberty Avenue / Queens NY
In-Fill 19.2% 613,457 201,509 44,915 59,078
Fund II- Urban 216th Street / 19.2% Manhattan NY
In-Fill 536,119 183,542 30,978 41,481
Fund II- Other Oakbrook/ 20% Oakbrook IL 77,560 29,487 77,130 108,955
- -----------------------------------------------------------------------------------------------
TOTAL
----------------------------------------
Weighted Average - Based on GLA 129,257 46,626 $62,831 $ 76,226
----------------------------------------
Weighted Average - Based on base rent( 1) 161,609 65,085 $65,194 $ 80,105
----------------------------------------
CORE
----------------------------------------
Weighted Average - Based on GLA 80,028 30,140 $64,624 $ 78,192
----------------------------------------
Weighted Average - Based on base rent( 1) 141,376 58,678 $66,113 $ 81,181
----------------------------------------
FUND I
----------------------------------------
Weighted Average - Based on GLA 98,267 38,539 $60,108 $ 69,528
----------------------------------------
Weighted Average - Based on base rent( 1) 71,850 28,264 $66,534 $ 78,904
----------------------------------------
FUND II -Urban In-fill
----------------------------------------
Weighted Average - Based on GLA 1,089,534 365,672 $27,403 $ 35,043
----------------------------------------
Weighted Average - Based on base rent( 1) 976,242 328,128 $28,634 $ 37,000
----------------------------------------
FUND II -Other
----------------------------------------
Weighted Average - Based on GLA 77,560 29,487 $77,130 $108,955
----------------------------------------
Weighted Average - Based on base rent( 1) 77,560 29,487 $77,130 $108,955
----------------------------------------
- -------------------------------------------------------------------------------------------
5-Mile Radius
------------------------------------
Total # Median HH Avg. HH
Classification Property / JV City State Pop. HH Income Income
Ownership %
- -------------------------------------------------------------------------------------------
Core Brandywine Town Wilmington DE
Center & Mkt
Sq./22.22% 120,306 46,004 $74,110 $ 93,425
Core Elmwood Park Elmwood Park NJ
Shopping Ctr. 614,727 208,535 57,938 69,562
Core Chestnut Hill Philadelphia PA 399,921 157,197 52,171 65,291
Core Abington Towne Abington PA
Center 304,127 117,213 59,851 70,401
Core Clark & Diversey Chicago IL 969,623 410,327 51,138 67,593
Core Hobson West Plaza Naperville IL 241,153 82,668 93,969 113,986
Core Methuen Shopping Methuen MA
Ctr. 201,503 72,943 47,894 56,306
Core Crossroads Shopping White Plains NY
Ctr. / 49% 205,109 73,112 93,445 108,276
Core The Branch Plaza Smithtown NY 199,361 64,663 82,867 105,093
Core Amboy Road Staten NY
Island 292,132 105,178 66,927 88,388
Core Village Commons Smithtown NY
Shopping Ctr. 199,361 64,663 82,867 105,093
Core Bloomfield Town Bloomfield MI
Square Hills 166,443 62,677 79,970 105,922
Core Crescent Plaza Brockton MA 168,246 58,789 46,062 56,826
Core 239 Greenwich Avenue Greenwich CT
/ 75% 142,822 51,210 94,119 119,232
Core Town Line Plaza Rocky Hill CT 153,302 61,023 57,724 68,679
Core New Loudon Center Latham NY 151,655 61,034 47,547 61,261
Core Pacesetter Park Pomona NY
Shopping Ctr. 129,143 36,828 72,841 102,767
Core 2914 Third Ave The Bronx NY 2,690,882 1,034,060 45,279 56,415
Core LA Fitness, Staten Staten NY
Island Island 457,912 162,076 60,236 77,922
Core West 54th Street Manhattan NY 2,424,848 1,048,312 55,446 67,194
Core East 17th Street Manhattan NY 2,512,412 1,086,434 53,903 96,755
Core Mad River Station Dayton OH 135,000 56,693 60,560 71,601
Core Mark Plaza Edwardsville PA 124,868 52,566 34,683 43,184
Core Blackman Plaza Wilkes-Barre PA 111,991 47,249 33,391 41,275
Core Bartow Avenue The Bronx NY 1,435,467 511,796 30,552 43,522
Core Walnut Hill Plaza Woonsocket RI 95,320 35,238 50,142 56,573
Core Ledgewood Mall Ledgewood NJ 108,922 38,302 77,480 89,838
Core A & P Shopping Plaza Boonton NJ
/ 60% 101,266 36,438 86,509 106,011
Core Merrillville Plaza Hobart IN 87,796 32,151 54,709 62,531
Core The Gateway Shopping So. VT
Ctr. Burlington 69,993 28,186 47,104 57,514
Core Marketplace of Absecon NJ
Absecon 68,326 26,137 51,610 62,711
Core Plaza 422 Lebanon PA 61,197 23,615 41,055 51,545
Core Route 6 Plaza Honesdale PA 11,899 4,627 34,031 46,300
Fund I Granville Center / Columbus OH
37.78% 266,313 108,411 53,466 60,719
Fund I Sterling Heights Sterling MI
Shopping Center / Heights
18.9% 264,560 103,403 63,816 74,661
Fund I Tarrytown Shopping Tarrytown NY
Center / 37.78% 123,546 43,654 85,757 103,311
Fund II- Urban 400 East Fordham The Bronx NY
In-Fill Road / 19.2% 1,997,909 698,322 33,259 40,957
Fund II- Urban Sherman Avenue / Manhattan NY
In-Fill 19.2% 2,049,516 721,521 34,366 42,608
Fund II- Urban Pelham Manor Westchester NY
In-Fill Shopping Plaza /
19.2% 1,109,022 403,897 44,956 53,542
Fund II- Urban 161st Street /19.2% The Bronx NY
In-Fill 2,531,473 966,482 37,307 48,034
Fund II- Urban Liberty Avenue / Queens NY
In-Fill 19.2% 613,457 201,509 44,915 59,078
Fund II- Urban 216th Street / 19.2% Manhattan NY
In-Fill 536,119 183,542 30,978 41,481
Fund II- Other Oakbrook/ 20% Oakbrook IL 288,932 108,039 75,456 97,126
- -------------------------------------------------------------------------------------------
TOTAL
------------------------------------
Weighted Average - Based on GLA 287,030 108,327 $62,038 $ 76,175
------------------------------------
Weighted Average - Based on base rent( 1) 398,103 155,161 $60,823 $ 75,019
------------------------------------
CORE
------------------------------------
Weighted Average - Based on GLA 194,929 73,164 $63,161 $ 77,561
------------------------------------
Weighted Average - Based on base rent( 1) 366,088 143,325 $61,304 $ 75,579
------------------------------------
FUND I
------------------------------------
Weighted Average - Based on GLA 249,981 98,997 $61,900 $ 71,982
------------------------------------
Weighted Average - Based on base rent( 1) 193,313 74,587 $71,659 $ 84,765
------------------------------------
FUND II -Urban In-fill
------------------------------------
Weighted Average - Based on GLA 2,024,182 766,727 $36,476 $ 47,354
------------------------------------
Weighted Average - Based on base rent( 1) 1,715,040 645,145 $35,806 $ 46,732
------------------------------------
FUND II -Other
------------------------------------
Weighted Average - Based on GLA 288,932 108,039 $75,456 $ 97,126
------------------------------------
Weighted Average - Based on base rent( 1) 288,932 108,039 $75,456 $ 97,126
------------------------------------
(1) Does not include the Kroger/Safeway Portfolio. Base rent for joint ventures
has been pro-rated based on the Company's ownership % in the joint venture.
(2 )West 54th Street, Sherman 161st Street and 216th Street figures are for 2
mile radius
Page 56