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a50251824.htm
  UNITED STATES
 
SECURITIES AND EXCHANGE COMMISSION
 
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of Earliest Event Reported): April 24, 2012
 
ACADIA REALTY TRUST
 (Exact name of registrant as specified in its charter)
 
Maryland
1-12002
23-2715194
(State or other
(Commission
(I.R.S. Employer
jurisdiction of incorporation)
File Number)
Identification No.)

 
1311 Mamaroneck Avenue
Suite 260
White Plains, New York 10605
(Address of principal executive offices) (Zip Code)
 
(914) 288-8100
(Registrant's telephone number, including area code)
 
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425 )
 
[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 
 
Item 2.02.     Results of Operations and Financial Condition.
 
On April 24, 2012, Acadia Realty Trust (the "Company") issued a press release announcing its consolidated financial results for the quarter ended March 31, 2012. A copy of this press release is attached to this report on Form 8-K as Exhibit 99.1 and incorporated herein by reference. In addition, on April 24, 2012, the Company made available supplemental information concerning the ownership, operations and portfolio of the Company as of and for the quarter ended March 31, 2012. A copy of this supplemental information is attached to this report on Form 8-K as Exhibit 99.2 and incorporated herein by reference. The information included in this Item 2.02, including the information included in Exhibits 99.1 and 99.2 attached hereto, is intended to be furnished solely pursuant to this Item 2.02, and is not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference into any filing under the Securities Act of 1933, as amended ("Securities Act") or the Exchange Act, or otherwise subject to the liabilities of Sections 11 and 12 (a) (2) of the Securities Act.
 
 
Item 9.01.     Financial Statements and Exhibits.
 
 
Exhibit Number
Description
   
99.1
Press release of the Company dated April 24, 2012.
99.2
Financial and Operating Reporting Supplement of the Company for the quarter ended March 31, 2012.


 
 
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  ACADIA REALTY TRUST  
  (Registrant)  
       
Date: April 26, 2012
By:
/s/ Jonathan Grisham  
   
Name:  Jonathan Grisham
Title: Sr. Vice President
and Chief Financial Officer
  
       
       
 

 
 
 

EXHIBIT INDEX
 
Exhibit Number
Description
   
99.1
Press release of the Company dated April 24, 2012.
99.2
Financial and Operating Reporting Supplement of the Company for the quarter ended March 31, 2012.



a50251824ex99-1.htm
Exhibit 99.1
 
Acadia Realty Trust Reports First Quarter 2012 Operating Results
 
WHITE PLAINS, N.Y.--(BUSINESS WIRE)--April 24, 2012--Acadia Realty Trust (NYSE: AKR) today reported operating results for the quarter ended March 31, 2012. All per share amounts are on a fully diluted basis.
 
First Quarter 2012 Highlights
 
Earnings
 
 
·
Funds from operations (“FFO”) of $0.21 per share for first quarter 2012
 
 
·
Earnings per share (“EPS”) from continuing operations of $0.09 for first quarter 2012
 
Core Portfolio – Acquisitions and Portfolio Performance
 
 
·
During first quarter 2012, closed on property acquisitions of $41.5 million (Chicago and Cambridge, Massachusetts) bringing the total closed to date to $115.3 million of the previously announced $181.1 million 2011 Core acquisition pipeline
 
 
·
During April 2012, acquired an additional Chicago property for $20.7 million
 
 
·
March 31, 2012 physical portfolio occupancy of 90.3%; leased occupancy of 94.2% including executed leases
 
 
·
Excluding the impact of re-anchoring activities, same store net operating income (“NOI”) for the first quarter up 2.3% compared to 2011; including this impact, same store NOI decreased 3.9%
 
Opportunity Funds – Fund III Acquisitions
 
 
·
During April 2012, closed on $31.5 million (Chicago) which completed the acquisition of the previously announced $171.3 million 2011 Fund acquisition pipeline
 
 
·
Closed on an investment in New York City for $16.3 million during the first quarter 2012
 
Balance Sheet – Match-Funding Core and Fund Acquisitions
 
 
·
Raised $17.9 million of net proceeds during first quarter 2012 from the at-the-market (“ATM”) equity program
 
 
·
Core portfolio debt net of cash on hand (“Net Debt”) to EBITDA ratio of 5.4x at March 31, 2012
 
 
·
Combined Net Debt to Total Market Capitalization of 28% at March 31, 2012
 
First Quarter 2012 Operating Results
 
FFO and Net Income from Continuing Operations for the quarter ended March 31, 2012 were $9.3 million and $4.0 million, respectively, as compared to $13.6 million and $8.2 million, respectively, for the quarter ended March 31, 2011.
 
Earnings for the quarters ended March 31, 2012 and 2011, on a per share basis, were as follows:
 
   
Quarters ended March 31,
  
   
2012
    
2011
    
Variance
  
FFO per share
  
$0.21
    
$0.33
    
$(0.12)
  
EPS from continuing operations
  
$0.09
    
$0.20
    
$(0.11)
  
EPS
  
$0.09
    
$0.23
    
$(0.14)
  
                   
The following significant items contributed to the above variances in EPS from continuing operations:
 
   
Variance
2012 v. 2011
  
       
2011 additional mortgage interest income
     $(0.06 )
2011 gain on extinguishment of debt
     (0.04 )
Other items, net
     (0.01 )
Total variance
     $(0.11 )
         
EPS from discontinued operations of $0.03 for the quarter ended March 31, 2011 was primarily attributable to a $0.8 million gain, net of noncontrolling interests’ share, on the sale of a Fund II leasehold interest at the Oakbrook Center.
 
 
 
 
 
Core Portfolio
 
Acadia’s core portfolio is comprised of properties that are owned in whole or in part by Acadia outside of its three opportunity funds (the “Funds”).
 
Asset Recycling and Acquisition Activity – Additional Investment in Urban/Street Retail
 
During April 2012, Acadia acquired a single-tenant property, occupied by Lululemon and located in the Gold Coast neighborhood of Chicago, for $20.7 million.
 
During the first quarter, Acadia closed on six properties under contract at year-end for $41.5 million as detailed below, bringing the total closed to date to $115.3 million of the previously announced $181.1 million 2011 Core acquisition pipeline:
 
 
·
Chicago - closed on five properties, for a total of $22.6 million including the assumption of debt of $16.0 million. The properties are located throughout Chicago’s high-barrier-to-entry retail corridors, including Clark/Diversey and Armitage/Halsted in the Lincoln Park neighborhood and Rush/Walton in the Gold Coast neighborhood.
 
 
·
Cambridge - acquired a 40,000 square foot Whole Foods and an adjacent 13,300 square foot Rite-Aid in Cambridge, Massachusetts for $18.9 million, including the assumption of debt of $7.0 million.
 
For the remaining 2011 Core acquisition pipeline of $65.8 million, the Company is currently awaiting lender’s approval for the assumption of $33.3 million of first mortgage debt collateralized by ten locations prior to closing on these properties. The closings of these transactions currently under contract, which are anticipated to be completed during the second quarter of 2012, are subject to other customary closing conditions. As such, no assurance can be given that the Company will successfully complete these transactions.
 
Core Portfolio Anchor Recycling
 
As previously announced during 2011, Acadia commenced the re-anchoring of the Bloomfield Town Square, located in Bloomfield Hills, Michigan, and two former A&P supermarket locations located in the New York City metropolitan area (collectively, the “Re-anchoring Activities”). As of March 31, 2012, approximately 80% of this aggregate space has been leased, with Dick’s Sporting Goods, Ulta and Five Below at the Bloomfield Town Square expected to open during the second quarter 2012 and rents for a portion of the former A&P space that is leased expected to commence during the second half of 2012.
 
Occupancy and Same-Store NOI
 
At March 31, 2012, Acadia’s core portfolio occupancy was 90.3% which was consistent with fourth quarter 2011, as adjusted for certain gross leasable area (“GLA”) in the portfolio taken off-line. Including the square footage currently leased but not yet occupied, primarily in connection with the above Re-Anchoring Activities, the core portfolio is 94.2% leased. The remaining space anticipated to be leased in connection with the Re-Anchoring Activities represents an additional 90 basis points of portfolio occupancy.
 
Excluding the impact of the Re-anchoring Activities, core portfolio same-store NOI increased 2.3% for the first quarter 2012 over first quarter 2011. Including the impact of the Re-anchoring Activities, core portfolio same-store NOI decreased 3.9% for the first quarter 2012 compared to 2011.
 
Rent Spreads on New and Renewal Leases
 
The Company realized an increase in average rents of 16.4% in its core portfolio on 103,000 square feet of new and renewal leases executed during the first quarter of 2012. Excluding the effect of the straight-lining of rents, the Company experienced an increase of 3.9% in average rents in its core portfolio.
 
Fund III - Closed $31.5 million of Existing 2011 Acquisition Pipeline; Additional First Quarter Pipeline of $16.3 million
 
Fund III Acquisitions
 
During the first quarter Fund III acquired a 50% interest in 640 Broadway, a 45,700 square foot property located in the Noho district of New York City for $16.3 million.
 
During April 2012, Fund III closed on the Lincoln Park Centre for $31.5 million, which completed the previously announced $171.3 million of acquisitions under the 2011 Fund acquisition pipeline. The property is a 62,700 square foot re-anchoring project (former Border Books store) located in Lincoln Park’s Clybourn Corridor in Chicago, Illinois adjacent to the newly developed Apple store. Current tenants include Bank of America, Carter’s, Mitchell Gold + Bob Williams and Sur La Table.
 
Balance Sheet – Match-Funding Core and Fund Acquisitions; Maintaining Appropriate Leverage
 
During January 2012, the Company established an ATM equity program with an aggregate offering amount of up to $75.0 million of its Common Shares. Acadia intends to use the net proceeds of these offerings, in part, to fund the core and its share of the Fund acquisition activities as discussed above. During the first quarter, the Company issued 0.8 million Common Shares, which generated net proceeds of $17.9 million.
 
Acadia continues to maintain a secure balance sheet with available liquidity and low leverage as evidenced by the following:
 
 
·
As of March 31, 2012, the Company had total liquidity of $88.8 million, including $29.6 million of cash on hand and $59.2 million available under existing lines of credit, excluding the Funds’ cash and credit facilities
 
 
·
Core portfolio Net Debt to EBITDA ratio of 5.4x
 
 
·
Including the Company’s pro-rata share of the Fund debt (“Combined”), a Net Debt to EBITDA ratio of 6.2x
 
 
·
Combined Net Debt to Total Market Capitalization of 28% and Combined Debt to Total Market Capitalization of 30%
 
 
·
Core portfolio fixed-charge coverage ratio of 2.8 to 1
 
 
·
Combined fixed-charge coverage ratio, including the core portfolio and the Company’s pro- rata share of the Funds, was 2.9 to 1
 
 
 
 
 
Outlook - Earnings Guidance for 2012
 
The Company reaffirms its previously announced 2012 FFO and EPS forecast. On a fully diluted basis, the Company forecasts that its 2012 annual FFO will range from $1.00 to $1.05 per share and 2012 EPS from $0.54 to $0.60 per share.
 
Management Comments
 
“In the first quarter we continued to make progress on all of our key growth initiatives” stated Kenneth F. Bernstein, President and CEO of Acadia Realty Trust. “In our core portfolio we are moving forward with both the profitable re-anchoring of three projects as well as the impactful additions to our street and urban portfolio. Additionally, we continued to add new value-add/opportunistic investments to our Fund III platform. I am also pleased with the progress that our team has made in the stabilization of several key Fund II and Fund III redevelopments which we can now opportunistically monetize. All of these activities should effectively contribute to our growth over the next year and position us well for future growth.”
 
Investor Conference Call
 
Management will conduct a conference call on Wednesday, April 25, 2012 at 12:00 PM ET to review the Company's earnings and operating results. The live conference call can be accessed by dialing 866-713-8565 (internationally 617-597-5324). The pass code is “Acadia”. The call will also be webcast and can be accessed in a listen-only mode at Acadia's web site at www.acadiarealty.com. If you are unable to participate during the live webcast, the call will be archived and available on Acadia's website. Alternatively, to access the replay by phone, dial 888-286-8010 (internationally 617-801-6888), and the passcode will be 68334681. The phone replay will be available through Wednesday, May 2, 2012.
 
About Acadia Realty Trust
 
Acadia Realty Trust, a fully-integrated equity real estate investment trust, is focused on the acquisition, ownership, management and redevelopment of high-quality retail properties and urban/infill mixed-use properties with a strong retail component located primarily in high-barrier-to-entry, densely-populated metropolitan areas along the East Coast and in Chicago. Acadia owns, or has an ownership interest in, 89 properties through its core portfolio and three opportunistic/value-add investment funds. Additional information may be found on the Company’s website at www.acadiarealty.com.
 
Certain matters in this press release may constitute forward-looking statements within the meaning of federal securities law and as such may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performances or achievements of Acadia to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. These forward-looking statements include statements regarding Acadia’s future financial results and its ability to capitalize on potential opportunities arising from continued economic uncertainty. Factors that could cause the Company’s forward-looking statements to differ from its future results include, but are not limited to, those discussed under the headings “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent annual report on Form 10-K filed with the SEC on February 28, 2012 (“Form 10-K”) and other periodic reports filed with the SEC, including risks related to: (i) the current global financial environment and its effect on retail tenants; (ii) the Company’s reliance on revenues derived from major tenants; (iii) the Company’s limited control over joint venture investments; (iv) the Company’s partnership structure; (v) real estate and the geographic concentration of our properties; (vi) market interest rates; (vii) leverage; (viii) liability for environmental matters; (ix) the Company’s growth strategy; (x) the Company’s status as a REIT; (xi) uninsured losses and (xii) the loss of key executives. Copies of the Form 10-K and the other periodic reports Acadia files with the SEC are available on the Company’s website at www.acadiarealty.com. Any forward-looking statements in this press release speak only as of the date hereof. Acadia expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Acadia's expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based.
 
 
 
 
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights 1
For the Quarters ended March 31, 2012 and 2011
(dollars and Common Shares in thousands, except per share data)
      
 
   
For the Quarters ended
   
March 31,
Revenues
  
2012
  
2011
         
Minimum rents
  
$
30,340
    
$
26,210
  
Percentage rents
    
243
      
178
  
Mortgage interest income
    
2,055
      
4,538
  
Expense reimbursements
    
6,002
      
5,204
  
Other property income
    
553
      
688
  
Management fee income
    
433
      
629
  
Total revenues
    
39,626
      
37,447
  
Operating expenses
        
Property operating
    
7,956
      
7,421
  
Real estate taxes
    
4,942
      
4,138
  
General and administrative
    
5,933
      
5,690
  
Depreciation and amortization
    
9,141
      
7,634
  
Total operating expenses
    
27,972
      
24,883
  
         
Operating income
    
11,654
      
12,564
  
         
Equity in losses of unconsolidated affiliates
    
(56
)
    
(148
)
Other interest income
    
54
      
34
  
Interest expense and other finance costs
    
(8,634
)
    
(8,953
)
Gain on extinguishment of debt
    
--
      
1,673
  
Income from continuing operations before
        
Income taxes
    
3,018
      
5,170
  
Income tax provision
    
195
      
262
  
Income from continuing operations
    
2,823
      
4,908
  

 
 
 
 
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights 1
For the Quarters ended March 31, 2012 and 2011
(dollars and Common Shares in thousands, except per share data)
      
 
     
For the Quarters ended
  
     
March 31,
  
     
2012
      
2011
  
Discontinued operations:
                
Operating income from discontinued operations
    
--
      
822
  
Gain on sale of property
    
--
      
3,922
  
Income from discontinued operations
    
--
      
4,744
  
Net income
    
2,823
      
9,652
  
Loss (income) attributable to noncontrolling interests:
                
Continuing operations
    
1,187
      
3,277
  
Discontinued operations
    
--
      
(3,506)
  
Net loss (income) attributable to noncontrolling
                
interests
    
1,187
      
(229)
  
                 
Net income attributable to Common Shareholders
   $
4,010
     $
9,423
  
                 
Supplemental Information
                
Income from continuing operations attributable to
                
Common Shareholders
   $
4,010
     $
8,185
  
Income from discontinued operations attributable to
                
Common Shareholders
    
--
      
1,238
  
Net income attributable to Common Shareholders
   $
4,010
     $
9,423
  
                 
Net income attributable to Common Shareholders per Common Share – Basic
                
Net income per Common Share – Continuing
                
operations
   $
0.09
     $
0.20
  
Net income per Common Share – Discontinued
                
operations
    
--
      
0.03
  
Net income per Common Share
   $
0.09
     $
0.23
  
Weighted average Common Shares
    
42,736
      
40,318
  
Net income attributable to Common Shareholders per Common Share – Diluted 2
                
Net income per Common Share – Continuing
                
operations
   $
0.09
     $
0.20
  
Net income per Common Share – Discontinued
                
operations
    
--
      
0.03
  
Net income per Common Share
   $
0.09
     $
0.23
  
Weighted average Common Shares
    
43,146
      
40,580
  

 
 
 
 
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights 1
For the Quarters ended March 31, 2012 and 2011
(dollars and Common Shares in thousands, except per share data)
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS 3
 
   
For the Quarters ended
   
March 31,
   
2012
    
2011
           
           
Net income attributable to Common Shareholders
  
$
4,010
    
$
9,423
  
           
Depreciation of real estate and amortization of leasing costs
          
(net of noncontrolling interests' share):
          
Consolidated affiliates
    
4,828
      
4,458
  
Unconsolidated affiliates
    
392
      
353
  
Gain on sale (net of noncontrolling interests' share):
          
Consolidated affiliates
    
--
      
(784
)
Unconsolidated affiliates
    
--
      
--
  
Income attributable to noncontrolling interests’ in
          
Operating Partnership
    
63
      
115
  
Distributions – Preferred OP Units
    
5
      
5
  
Funds from operations
  
$
9,298
    
$
13,570
  
Funds from operations per share – Diluted
          
Weighted average Common Shares and OP Units 4
    
43,792
      
41,046
  
Funds from operations, per share
  
$
0.21
    
$
0.33
  

 
 
 
 
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights 1
For the Quarters ended March 31, 2012 and 2011
(dollars in thousands)
RECONCILIATION OF OPERATING INCOME TO NET PROPERTY
OPERATING INCOME (“NOI”) 3
 
   
For the Quarters ended
   
March 31,
   
2012
  
2011
         
Operating income
  
$
11,654
    
$
12,564
  
         
Add back:
        
General and administrative
    
5,933
      
5,690
  
Depreciation and amortization
    
9,141
      
7,634
  
Less:
        
Management fee income
    
(433
)
    
(629
)
Mortgage interest income
    
(2,055
)
    
(4,538
)
Straight line rent and other adjustments
    
(2,186
)
    
(1,772
)
         
Consolidated NOI
    
22,054
      
18,949
  
         
Noncontrolling interest in NOI
    
(6,963
)
    
(4,888
)
Pro-rata share of NOI
  
$
15,091
    
$
14,061
  

 
 
 
 
SELECTED BALANCE SHEET INFORMATION
  
   
As of
  
   
March 31,
2012
  
December 31,
2011
  
   
(dollars in thousands)
  
             
Cash and cash equivalents
  
$
49,670
    
$
89,812
  
Rental property, at cost
    
1,337,943
      
1,252,100
  
Total assets
    
1,726,736
      
1,653,319
  
Notes payable
    
812,606
      
788,840
  
Total liabilities
    
903,397
      
883,221
  
 
Notes:
 
1 For additional information and analysis concerning the Company’s results of operations, reference is made to the Company’s Quarterly Supplemental Disclosure furnished on Form 8-K to the SEC and included on the Company’s website at www.acadiarealty.com.
 
2 Reflects the potential dilution that could occur if securities or other contracts to issue Common Shares were exercised or converted into Common Shares. The effect of the conversion of Common OP Units is not reflected in the above table as they are exchangeable for Common Shares on a one-for-one basis. The income allocable to such units is allocated on this same basis and reflected as noncontrolling interests in the consolidated financial statements. As such, the assumed conversion of these units would have no net impact on the determination of diluted earnings per share.
 
3 The Company considers funds from operations (“FFO”) as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) and net property operating income (“NOI”) to be appropriate supplemental disclosures of operating performance for an equity REIT due to its widespread acceptance and use within the REIT and analyst communities. FFO and NOI are presented to assist investors in analyzing the performance of the Company. They are helpful as they exclude various items included in net income that are not indicative of the operating performance, such as gains (losses) from sales of depreciated property and depreciation and amortization. In addition, NOI excludes interest expense. The Company’s method of calculating FFO and NOI may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. FFO does not represent cash generated from operations as defined by generally accepted accounting principles (“GAAP”) and is not indicative of cash available to fund all cash needs, including distributions. It should not be considered as an alternative to net income for the purpose of evaluating the Company’s performance or to cash flows as a measure of liquidity. Consistent with the NAREIT definition, the Company defines FFO as net income (computed in accordance with GAAP), excluding gains (losses) from sales of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.
 
4 In addition to the weighted average Common Shares outstanding, basic and diluted FFO also assumes full conversion of a weighted average 621 and 466 OP Units into Common Shares for the quarters ended March 31, 2012 and 2011, respectively. Diluted FFO also includes the assumed conversion of Preferred OP Units into 25 Common Shares for each of the quarters ended March 31, 2012 and 2011. In addition, diluted FFO also includes the effect of 410 and 237 employee share options, restricted share units and LTIP units for the quarters ended March 31, 2012 and 2011, respectively.
 
CONTACT:
Acadia Realty Trust
Jon Grisham, (914) 288-8100
 
a50251824ex99-2.htm
Exhibit 99.2
 

 
REPORTING SUPPLEMENT
 
 
ACADIA REALTY TRUST
 
 
 
 
 
 
 
 
 
Table of Contents
First Quarter 2012
 
Section I - Financial Information
    
Section II - Opportunity Fund Information
  
         
Company Information
3
  
Opportunity Fund Overview
22
Total Market Capitalization
4
  
Opportunity Fund Properties
23
Operating Statements
    
Opportunity Fund Lease Expirations
24
Pro-rata Consolidation
5
  
Redevelopment Projects - Operating
27
Opportunity Funds
6
  
Redevelopment Projects - Construction and Design
28
Funds from Operations ("FFO"), Adjusted FFO ("AFFO")
RCP Venture Investments
29
and Funds Available for Distribution ("FAD")
7
  
Storage Portfolio
30
EBITDA
8
      
Same Property Net Operating Income
9
      
Fee Income
10
  
Section III - Core Portfolio Information
  
Balance Sheet - Pro-rata Consolidation
11
      
Notes Receivable
12
  
Core Properties
31
Other Information
    
Core Portfolio by State
33
2012 Guidance
13
  
Core Top Tenants
34
Net Asset Valuation
14
  
Core Lease Expirations
35
Selected Financial Ratios
15
  
Core New and Renewal Rent Spreads
37
Debt Analysis
    
Core Capital Expenditures
38
Summary
16
  
Portfolio Demographics
39
Detail
17
  
Important Notes
41
Maturities with Extension Options
20
      
Maturities
21
      
         
         
         
Visit www.acadiarealty.com for additional investor and portfolio information
 
 
- 2 -
 
 
Company Information
        
           
Acadia Realty Trust, a fully-integrated equity real estate investment trust, is focused on the ownership, management and redevelopment of high-quality retail properties and urban/infill mixed-use properties with a strong retail component located primarily in high-barrier-to-entry, densely-populated metropolitan areas along the East Coast and in Chicago. Acadia owns, or has an ownership interest in, 89 properties through its core portfolio and three opportunistic/value-add investment funds. Additional information may be found on the Company’s website at www.acadiarealty.com.
           
         
Contact Information
        
           
 
Corporate Headquarters
  
Investor Relations
  
New York Stock Exchange
 
1311 Mamaroneck Avenue
  
Jon Grisham
  
Symbol AKR
 
Suite 260
  
Senior Vice President,
    
 
White Plains, NY 10605
  
Chief Financial Officer
    
 
www.acadiarealty.com
  
(914) 288-8142
    
     
jgrisham@acadiarealty.com
    
           
           
Analyst Coverage
        
           
 
Bank of America / Merrill Lynch
  
Green Street Advisors
  
RBC Capital Markets
 
Craig Schmidt - (646) 855-3640
  
Cedrik LaChance - (949) 640-8780
  
Rich Moore, CFA - (440) 715-2646
 
craig.schmidt@baml.com
  
clachance@greenst.com
  
rich.moore@rbccm.com
           
 
Bank of Montreal
  
J.P. Morgan Securities, Inc.
  
UBS
 
Paul Adornato, CFA - (212) 885-4170
  
Michael W. Mueller, CFA - (212) 622-6689
  
Christy McElroy - (203) 719-7831
 
paul.adornato@bmo.com
  
michael.w.mueller@jpmorgan.com
  
christy.mcelroy@ubs.com
           
 
Citigroup - Global Markets
  
Keefe, Bruyette & Woods, Inc.
    
 
Quentin Velleley, CFA - (212) 816-6981
  
Sheila K. McGrath - (212) 887-7793
    
 
quentin.velleley@citi.com
  
smcgrath@kbw.com
    
           
 
Cowen and Company
  
KeyBanc Capital Markets, Inc.
    
 
Michael Gorman - (646) 562-1381
  
Todd Thomas - (917) 368-2286
    
 
michael.gorman@cowen.com
  
tthomas@keybanccm.com
    
           

 
 
- 3 -
 
 
Total Market Capitalization
                
(including pro-rata share of Opportunity Fund debt, dollars in thousands)
          
                 
                 
 
                         
Capitalization
  
   
Percent of
    
Total Market Capitalization
    
based on
  
   
Total Equity
   $           %    
Net Debt1
  
Equity Capitalization
                              
Total Common Shares Outstanding
     98.6 %     43,572                    
Common Operating Partnership ("OP") Units
     1.4 %     622                    
Combined Common Shares and OP Units
             44,194                    
                                   
Share Price March 31, 2012
           $ 22.54                    
                                   
Equity Capitalization - Common Shares and OP Units
     $ 996,133                    
Preferred OP Units
             565     2              
Total Equity Capitalization
             996,698           70 %     72 %
                                     
Debt Capitalization
                                    
Consolidated debt
             812,606                      
Adjustment to reflect pro-rata share of debt
             (390,239 )                    
Total Debt Capitalization
             422,367           30 %     28 %
                                     
Total Market Capitalization
           $ 1,419,065           100 %     100 %
                                     
                                     
                                     
Weighted Average Outstanding Common Shares and OP Units
                            
(in thousands)
                                    
           
March 31, 2012
                
March 31, 2011
  
           
Quarter
        
 
    
Quarter
  
Weighted average Common Shares - Basic EPS
             42,736                   40,318  
Dilutive potential Common Shares
             410                   262  
Weighted average Common Shares - Diluted EPS
       43,146                   40,580  
OP Units
             621                   466  
Dilutive potential OP Units
             25                   -  
Weighted average Common Shares and OP Units - Diluted FFO
     43,792                   41,046  
 
Notes:
 
1 Reflects debt net of Core Portfolio and pro-rata share of Opportunity Funds cash balance ("Net Debt"). Cash balance as of March 31, 2012 was $   36,722
2 Represents 188 Series A Preferred OP Units convertible into 25,067 Common OP units multiplied by the Common Share price at quarter end.
3 Fixed-rate debt includes notional principal fixed through interest rate swap transactions.
 
 
- 4 -
 
 
Income Statements - Pro-rata Consolidation1
                          
Current Quarter
                              
(in thousands)
                              
 
   
Three months ended March 31, 2012
  
   
Core Retail
    
Opportunity Funds
    
Total
  
               
Total
                          
   
Wholly
    
Joint
    
Continuing
    
Discontinued
    
Continuing
    
Discontinued
        
   
Owned
    
Ventures 2
    
Operations
    
Operations
    
Operations
    
Operations
        
CORE PORTFOLIO AND OPPORTUNITY FUND INCOME
                                      
                                           
PROPERTY REVENUES
                                          
Minimum rents
   $ 11,713     $ 1,783     $ 13,496     $ -     $ 3,834     $ -     $ 17,330  
Percentage rents
     225       48       273       -       15       -       288  
Expense reimbursements - CAM
     838       175       1,013       -       375       -       1,388  
Expense reimbursements - Taxes
     1,760       272       2,032       -       459       -       2,491  
Other property income
     12       5       17       -       124       -       141  
Total Property Revenues
     14,548       2,283       16,831       -       4,807       -       21,638  
                                                         
PROPERTY EXPENSES
                                                        
Property operating - CAM
     1,360       218       1,578       -       419       -       1,997  
Other property operating (Non-CAM)
     651       51       702       -       650       -       1,352  
Real estate taxes
     2,214       324       2,538       -       659       -       3,197  
Total Property Expenses
     4,225       593       4,818       -       1,728       -       6,546  
                                                         
NET OPERATING INCOME - PROPERTIES
     10,323       1,690       12,013       -       3,079       -       15,092  
                                                         
OTHER INCOME (EXPENSE)
                                                        
Mezzanine interest income
     1,457       -       1,457       -       135       -       1,592  
Other interest income
     54       -       54       -       -       -       54  
Straight-line rent income, net
     334       16       350       -       278       -       628  
Straight-line ground rent expense
     -       -       -       -       (22 )     -       (22 )
ASC 805 rent, net
     103       35       138       -       24       -       162  
ASC 805 interest expense
     5       -       5       -       16       -       21  
Interest expense
     (3,206 )     (1,127 )     (4,333 )     -       (1,063 )     -       (5,396 )
Amortization of finance costs
     (57 )     -       (57 )     -       (126 )     -       (183 )
Asset and property management expense
     (14 )     -       (14 )     -       (170 )     -       (184 )
Promote expense
     -       -       -       -       -       -       -  
Other income
     334       (11 )     323       -       -       -       323  
Acquisition costs
     (443 )     -       (443 )     -       (79 )     -       (522 )
Impairment of asset
     -       -       -       -       -       -       -  
CORE PORTFOLIO AND OPPORTUNITY FUND INCOME
     8,890       603       9,493       -       2,072       -       11,565  
                                                         
FEE INCOME
                                                        
Asset and property management fees and priority distributions
     3,179       -       3,179       -       -       -       3,179  
Transactional fees3
     1,507       -       1,507       -       -       -       1,507  
Provision for income taxes
     (601 )     -       (601 )     -       76       -       (525 )
FEE INCOME
     4,085       -       4,085       -       76       -       4,161  
                                                         
PROMOTE, RCP AND OTHER INCOME
                                                        
Equity in earnings from RCP investments
     -       -       -       -       (32 )     -       (32 )
Promote income - RCP
     -       -       -       -       (16 )     -       (16 )
Promote income - Fund capital transactions
     -       -       -       -       -       -       -  
Equity in earnings of unconsolidated properties
     -       -       -       -       -       -       -  
Lease termination income
     -       13       13       -       71       -       84  
Gain (loss) on extinguishment of debt
     -       -       -       -       -       -       -  
Provision for income taxes (RCP)
     25       (1 )     24       -       -       -       24  
Total Promote, RCP and Other Income
     25       12       37       -       23       -       60  
                                                         
GENERAL AND ADMINISTRATIVE
     (6,210 )     (10 )     (6,220 )     -       (67 )     -       (6,287 )
                                                         
Depreciation and amortization
     (3,399 )     (393 )     (3,792 )     -       (1,204 )     -       (4,996 )
ASC 805 amortization
     (293 )     -       (293 )     -       (139 )     -       (432 )
Gain on sale of properties
     -       -       -       -       -       -       -  
Income before noncontrolling interests
     3,098       212       3,310       -       761       -       4,071  
                                                         
Noncontrolling interest - OP
     (67 )     -       (67 )     -       -       -       (67 )
Noncontrolling interests
     -       -       -       -       6       -       6  
                                                         
NET INCOME
   $ 3,031     $ 212     $ 3,243     $ -     $ 767     $ -     $ 4,010  
                                                         
Notes:
                                                        
1Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods.
  
  The Company's investments in consolidated and unconsolidated joint ventures are reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items.
  In total, net income agrees with net income as reported in the Company's Form 10Q's and 10K for the corresponding periods.
      
2Represents the Company's pro-rata share unconsolidated investments which are detailed on pages 31 and 32.
          
3Consists of development, construction, leasing and legal fees.
          

 
- 5 -
 
 
Income Statements - Opportunity Funds1
                                                                                
Current Quarter
                                                                                  
(in thousands)
                                                                                  
 
               
Three months ended March 31, 2012
  
                           
Continuing
    
Discontinued
                  AKR                      
Continuing
    
Discontinued
            AKR          
Pro-rata
            AKR    
Total
  
                           
Operations
    
Operations
                
Pro-
                      
Operations
    
Operations
            Pro-          
share of
          
Pro-
      AKR  
   
Fund I
    
Fund I
    
Fund I
    
AKR
    
AKR Pro-
    
AKR Pro-
          
AKR
    
rata
   
Fund II
    
Fund II
    
Fund II
    
AKR Pro-
    
AKR Pro-
          
rata
         
Fund III
          
rata
   
Pro-
  
   
Continuing
    
Discontinued
    
Consolidated
    
Promote
    
rata share
    
rata share
      Mervyns    
Promote
    
share
    
Continuing
    
Discontinued
    
Consolidated
    
rata share
    
rata share
      Mervyns    
share
          
unconsolidated
    
Adjusted
    
share
    
rata
 
   
Operations
    
Operations
    
Operations
      20.00%      22.22%     22.22%    
I
     20.00%     22.22%    
Operations
    
Operations
    
Operations
     20.00%     20.00%    
II
     20.00%    
Fund III
    
affiliates3
    
Fund III
     19.90%    
share
  
                                                                                                                                                 
PROPERTY REVENUES
                                                                                                                                                
Minimum rents
   $ 269     $ -     $ 269     $ 54     $ 48     $ -     $ -     $ -     $ -     $ 8,202     $ -     $ 8,202     $ 1,639     $ -     $ -     $ -     $ 8,406     $ 2,105     $ 10,511     $ 2,093     $ 3,834  
Percentage rents
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       18       57       75       15       15  
Expense reimbursements - CAM
     49       -       49       10       9       -       -       -       -       1,016       -       1,016       203       -       -       -       431       336       767       153       375  
Expense reimbursements - Taxes
     174       -       174       35       31       -       -       -       -       637       -       637       127       -       -       -       1,041       295       1,336       266       459  
Other property income
     -       -       -       -       -       -       -       -       -       111       -       111       22       -       -       -       431       82       513       102       124  
Total Property Revenues
     492       -       492       98       87       -       -       -       -       9,966       -       9,966       1,991       -       -       -       10,327       2,875       13,202       2,629       4,807  
                                                                                                                                                                         
PROPERTY EXPENSES
                                                                                                                                                                        
Property operating - CAM
     48       -       48       10       9       -       -       -       -       1,159       -       1,159       232       -       -       -       523       325       848       169       419  
Other property operating (Non-CAM)
     46       -       46       9       8       -       -       -       -       1,330       -       1,330       266       -       -       -       1,647       196       1,843       367       650  
Real estate taxes
     77       -       77       15       14       -       -       -       -       1,057       -       1,057       211       -       -       -       1,555       552       2,107       419       659  
Total Property Expenses
     171       -       171       34       30       -       -       -       -       3,546       -       3,546       709       -       -       -       3,725       1,073       4,798       955       1,728  
                                                                                                                                                                         
NET OPERATING INCOME - PROPERTIES
     321       -       321       64       57       -       -       -       -       6,420       -       6,420       1,282       -       -       -       6,602       1,802       8,404       1,674       3,079  
                                                                                                                                                                         
OTHER INCOME (EXPENSE)
                                                                                                                                                                        
Mezzanine interest income
     143       -       143       29       25       -       -       -       -       -       -       -       -       -       -       -       406       -       406       81       135  
Other interest income
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Straight-line rent income, net
     16       -       16       3       3       -       -       -       -       1,058       -       1,058       212       -       -       -       127       174       301       60       278  
Straight-line ground rent
     -       -       -       -       -       -       -       -       -       (108 )     -       (108 )     (22 )     -       -       -       -       -       -       -       (22 )
ASC 805 rent, net
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       (141 )     262       121       24       24  
ASC 805 interest expense
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       81       81       16       16  
Interest expense
     (46 )     -       (46 )     (9 )     (8 )     -       -       -       -       (2,665 )     -       (2,665 )     (533 )     -       -       -       (1,735 )     (844 )     (2,579 )     (513 )     (1,063 )
Amortization of finance costs
     (7 )     -       (7 )     (1 )     (1 )     -       -       -       -       (326 )     -       (326 )     (65 )     -       -       -       (292 )     -       (292 )     (58 )     (126 )
Asset and property management expense 2
     2       -       2       -       -       -       -       -       -       (1,314 )     -       (1,314 )     -       -       (143 )     -       (2,382 )     (957 )     (3,339 )     (170 )     (170 )
Promote expense2
     (37 )     -       (37 )     -       -       -       16       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Other income
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       1       1       -       -  
Acquisition costs
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       (395 )     -       (395 )     (79 )     (79 )
Impairment of asset
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
OPPORTUNITY FUND INCOME
     392       -       392       85       76       -       16       -       -       3,065       -       3,065       874       -       (143 )     -       2,190       519       2,709       1,035       2,072  
                                                                                                                                                                         
FEE INCOME
                                                                                                                                                                        
Asset and property management fees and
                                                                                                                                                                        
priority distributions 2
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Transactional fees
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Provision for income taxes
     5       -       5       1       1       -       -       -       -       (18 )     -       (18 )     (4 )     -       -       -       394       -       394       78       76  
Total Fee Income
     5       -       5       1       1       -       -       -       -       (18 )     -       (18 )     (4 )     -       -       -       394       -       394       78       76  
                                                                                                                                                                         
PROMOTE, RCP AND OTHER INCOME
                                                                                                                                                                        
Equity in earnings from RCP investments
     -       -       -       -       -       -       (79 )     -       (14 )     -       -       -       -       -       (92 )     (18 )     -       -       -       -       (32 )
Promote income - RCP
     -       -       -       -       -       -       -       (16 )     -       -       -       -       -       -       -       -       -       -       -       -       (16 )
Promote income - Fund capital transactions
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Equity in earnings of unconsolidated properties
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Lease termination income
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       357       357       71       71  
Gain on extinguishment of debt
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Provision for income taxes (RCP)
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Total Promote, RCP and Other Income
     -       -       -       -       -       -       (79 )     (16 )     (14 )     -       -       -       -       -       (92 )     (18 )     -       357       357       71       23  
                                                                                                                                                                         
GENERAL AND ADMINISTRATIVE
     (27 )     -       (27 )     (5 )     (5 )     -       (3 )     (1 )     (1 )     (146 )     -       (146 )     (29 )     -       (7 )     (1 )     (128 )     (1 )     (129 )     (26 )     (67 )
                                                                                                                                                                         
Depreciation and amortization
     (79 )     -       (79 )     (16 )     (14 )     -       -       -       -       (2,764 )     -       (2,764 )     (553 )     -       -       -       (2,472 )     (646 )     (3,118 )     (620 )     (1,204 )
ASC 805 amortization
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       (304 )     (392 )     (696 )     (139 )     (139 )
Gain on sale of properties
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Income before noncontrolling interest
     291       -       291       65       58       -       (66 )     (16 )     (15 )     137       -       137       288       -       (242 )     (19 )     (320 )     (163 )     (483 )     399       761  
                                                                                                                                                                         
Noncontrolling interest - OP
     -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -       -  
Noncontrolling interests
     -       -       -       -       -       -       -       -       -       (2 )     -       (2 )     -       -       -       -       30       -       30       6       6  
                                                                                                                                                                         
NET INCOME
   $ 291     $ -     $ 291     $ 65     $ 58     $ -     $ (66 )   $ (16 )   $ (15 )   $ 135     $ -     $ 135     $ 288     $ -     $ (242 )   $ (19 )   $ (290 )   $ (163 )   $ (453 )   $ 405     $ 767  
                                                                                                                                                                         
                                                                                                                                                                         
Notes:
                                                                                                                                                                        
1   Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods.  The Company's investments in consolidated and unconsolidated joint ventures are reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items.  In total, net income agrees with net income as reported in the Company's Form 10Q's and 10K for the corresponding periods. The Company currently invests in Funds I, II & III and Mervyn's which are consolidated with the Company's financial statements.
                    
2   Funds I, II & III and the Mervyn's entities pay various fees and promotes to the Company.  As it is the recipient of such fees, the Company does not recognize its pro-rata share of these expenses.
                                              
3  Represents the Company's pro-rata share unconsolidated investments which are detailed on page 23.
                                                                      
 
 
- 6 -
 
 
Funds from Operations ("FFO") 1
        
(in thousands)
        
 
             
   
2012
    
2011
  
   
Current
    
Historic
  
   
Quarter
    
Quarter
  
   
3 months ended
    
3 months ended
  
Funds from operations ("FFO"):
  
March 31, 2012
    
March 31, 2011
  
             
Net Income
   $ 4,010     $ 9,423  
Add back:
                
Depreciation of real estate and amortization of leasing costs:
                
  (net of noncontrolling interest share)
                
     Consolidated affiliates
     4,828       4,458  
     Unconsolidated affiliates
     392       353  
Gain on sale of properties (net of noncontrolling interest share)
                
     Consolidated affiliates
     -       (784 )
Income attributable to noncontrolling interests'
                
     share in Operating Partnership
     63       115  
Distributions on Preferred OP Units
     5       5  
FFO
   $ 9,298     $ 13,570  
                 
Adjusted Funds from operations ("AFFO"):
                
Diluted FFO
   $ 9,298     $ 13,570  
Straight line rent, net
     (628 )     (457 )
Straight-line ground rent expense
     22       22  
ASC 805 rent, net
     (162 )     138  
ASC 805 interest expense
     (21 )     (5 )
Impairment of asset
     -       -  
Amortization of discount on convertible debt
     -       269  
Non real estate depreciation
     118       116  
Amortization of finance costs
     207       285  
Amortization of cost of management contracts
     20       70  
Tenant improvements
     (1,583 )     (1,237 )
Leasing commissions
     (306 )     (475 )
Capital expenditures
     (64 )     (218 )
(Gain) loss on extinguishment of debt
     -       (1,673 )
AFFO
   $ 6,901     $ 10,405  
                 
Funds Available for Distribution ("FAD")
                
AFFO
   $ 6,901     $ 10,405  
Scheduled principal repayments
     (810 )     (632 )
FAD
   $ 6,091     $ 9,773  
                 
Total weighted average shares and OP Units:
                
Basic
     43,382       40,784  
Diluted
     43,792       41,046  
                 
FFO per share:
                
FFO per share - Basic
   $ 0.21     $ 0.33  
FFO per share - Diluted
   $ 0.21     $ 0.33  
                 
AFFO per share - Basic
   $ 0.16     $ 0.26  
AFFO per share - Diluted
   $ 0.16     $ 0.25  
                 
FAD per share - Basic
   $ 0.14     $ 0.24  
FAD per share - Diluted
   $ 0.14     $ 0.24  
                 
Notes:
                
1 Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management are necessary for a fair presentation of operating results for the interim periods.
  
2 Quarterly Preferred OP Unit distributions are added back for the purposes of calculating diluted FFO. Refer to "Market Capitalization" for weighted-average basic and diluted shares.
  
 
 
- 7 -
 
 
Income Statements - EBITDA
                                      
Current Quarter
                                          
(in thousands)
                                          
                                           
   
Current Quarter
  
   
Three months ended March 31, 2012
  
   
Core Retail
    
Opportunity Funds
        
               
Total
                          
   
Wholly
    
Joint
    
Continuing
    
Discontinued
    
Continuing
    
Discontinued
    
TOTAL
  
   
Owned
    
Ventures
    
Operations
    
Operations
    
Operations
    
Operations
        
                                           
                                           
NET INCOME
   $ 3,031     $ 212     $ 3,243     $ -     $ 767     $ -     $ 4,010  
                                                         
Add back:
                                                        
Depreciation and amortization
     3,399       393       3,792       -       1,204       -       4,996  
ASC 805 amortization
     293       -       293       -       139       -       432  
Interest expense
     3,206       1,127       4,333       -       1,063       -       5,396  
Amortization of finance costs
     57       -       57       -       126       -       183  
ASC 805 interest expense
     (5 )     -       (5 )     -       (16 )     -       (21 )
Impairment of asset
     -       -       -       -       -       -       -  
Gain on sale of properties
     -       -       -       -       -       -       -  
Provision for income taxes
     576       1       577       -       (76 )     -       501  
(Gain) loss  on extinguishment of debt
     -       -       -       -       -       -       -  
Noncontrolling interest - OP
     67       -       67       -       -       -       67  
Noncontrolling interests
     -       -       -       -       (6 )     -       (6 )
                                                         
EBITDA
   $ 10,624     $ 1,733     $ 12,357     $ -     $ 3,201     $ -     $ 15,558  
 
 
- 8 -
 
 
Core Portfolio
          
Net Operating Income (NOI) - Same Property Performance 1
    
(in thousands)
          
 
               
Growth in Same
   
Three months ended
    
Property NOI -
               
Continuing Operations
   
March 31, 2012
    
March 31, 2011
    
Favorable (unfavorable)
                   
Reconciliation of total NOI to same property NOI:
              
                   
NOI - Retail properties
   $ 12,013     $ 11,014        
NOI - Discontinued Operations
     -       663        
                       
Total NOI
     12,013       11,677        
                       
NOI - Properties acquired or in redevelopment
     (1,631 )     (215 )      
NOI - Discontinued Operations
     -       (663 )      
                       
Total
   $ 10,382     $ 10,799       -3.9 %
                         
                         
Same property NOI by revenues/expenses:
                  
                         
 
                        
Revenues
   $ 14,836     $ 15,621       -5.0 %
Expenses
     4,454       4,822       7.6 %
                         
Total Core Portfolio
   $ 10,382     $ 10,799       -3.9 %
                         
                         
Notes:
                        
1 The above amounts include the pro-rata activity related to the Company's Core consolidated and unconsolidated investments.
  
 
 
- 9 -
 
 
Income Statements - Fee income by Opportunity Fund
                          
Current Quarter
                              
(in thousands)
                              
                               
   
Fund I
    
Fund II
    
Fund III
    
Other
    
Total
  
Three months ended March 31, 2012
                              
Asset and property management fees and priority distributions
   $ 89     $ 1,103     $ 1,717     $ 270     $ 3,179  
Transactional fees
     14       826       504       163       1,507  
Total management fees and priority distributions
   $ 103     $ 1,929     $ 2,221     $ 433     $ 4,686  

 
 
- 10 -
 
 
Pro-Rata Consolidated Balance Sheet
                                    
(in thousands)
                                    
 
   
Consolidated
    
Noncontrolling
    
Company's
    
Pro-Rata
              
   
Balance
    
Interest in
    
Interest in
    
Consolidated
              
   
Sheet
    
Consolidated
    
Unconsolidated
    
Balance
              
   
As Reported 1
    
Subsidiaries
    
Subsidiaries
    
Sheet 2
      
Notes
  
ASSETS
                                    
Real estate
                                    
  Land
   $ 303,538     $ (147,731 )   $ 16,400     $ 172,207      
1       The interim consolidated balance sheet is unaudited, although it
  
  Buildings and improvements
     1,022,663       (494,569 )     70,124       598,218      
reflect all adjustments, which in the opinion of management,
  
  Construction in progress
     11,742       (2,092 )     322       9,972      
are necessary for the fair presentation of the consolidated
  
      1,337,943       (644,392 )     86,846       780,397      
 balance sheet for the interim period.
      
Less: accumulated depreciation
     (188,243 )     48,484       (12,254 )     (152,013 )            
  Net real estate
     1,149,700       (595,908 )     74,592       628,384      
2      The Company currently invests in Funds I, II & III and Mervyns I & II
  
                                     
which are consolidated with the Company's financial statements.
  
Net real estate under development
     227,703       (184,296 )     124       43,531      
To provide investors with supplemental information, the Company's
  
                                     
investments in these joint ventures are reflected above on a
  
Cash and cash equivalents
     49,670       (15,031 )     2,083       36,722      
pro-rata basis by calculating its ownership percentage for each
  
Cash in escrow
     18,701       (10,660 )     1,330       9,371      
of the above asset and liability line items. Similarly, the above
  
Investments in and advances to unconsolidated affiliates
     85,099       (55,638 )     (17,098 )     12,364      
presentation also includes the Company's share of assets and
  
Rents receivable, net
     4,400       (1,438 )     124       3,086      
liabilities for unconsolidated investments which are accounted
  
Straight-line rents receivable, net
     21,429       (11,872 )     1,671       11,228      
for under the equity method of accounting for the Company's
  
Notes Receivable
     77,180       (17,174 )     -       60,006      
 financial statements.
      
Deferred charges, net
     26,016       (21,978 )     1,505       5,543              
Prepaid expenses and other assets
     39,289       16,614       817       56,720      
3       The components of Net real estate under development are as follows:
  
Acquired lease intangibles
     25,767       (10,240 )     1,078       16,605      
 Fund II
   $ 198,590  
Accounts receivable from related parties
     1,782                       1,782      
 Fund III
     26,289  
Assets of discontinued operations
     -       -       -       -      
         Total Opportunity Funds
     224,879  
                                     
 Core Portfolio
     2,824  
Total Assets
   $ 1,726,736     $ (907,621 )   $ 66,226     $ 885,342      
 Total
   $ 227,703  
                                               
LIABILITIES AND SHAREHOLDERS' EQUITY
                                    
4       The components of Prepaid expenses and other assets are as follows:
  
                                     
 Due from Fund Investors
   $ 31,774  
Mortgage notes payable
     811,676       (474,590 )     84,350     $ 421,437      
 
     9,732  
Notes payable
     930       -       -       930      
 Prepaid expenses
     4,452  
Valuation of debt at acquisition, net of amortization
     24       (10 )     161       175      
 Contract deposits
     3,701  
Acquired lease intangibles
     5,173       (2,642 )     1,571       4,102      
 Accrued interest on Notes Receivable
     2,138  
Accounts payable and accrued expenses
     34,705       (12,234 )     1,297       23,768      
 Income tax receivables
     1,226  
Dividends and distributions payable
     8,097       -       -       8,097      
 Corporate assets
     1,059  
Share of losses in excess of inv. in unconsolidated affiliates
     21,863       -       (21,863 )     -      
 Other
     2,638  
Other liabilities
     20,929       (8,653 )     710       12,986      
 Total
   $ 56,720  
Liabilities of discontinued operations
     -       -       -       -                
  Total liabilities
     903,397       (498,129 )     66,226       471,495                
                                               
Shareholders' equity:
                                              
Common shares
     44       -       -       44                
Additional paid-in capital
     368,978       -       -       368,978                
Accumulated other comprehensive income
     (3,319 )     -       -       (3,319 )              
Retained earnings
     35,519       -       -       35,519                
  Total controlling interest
     401,222       -       -       401,222                
Non-controlling interest in subsidiary
     422,117       (409,492 )     -       12,625                
  Total shareholders' equity
     823,339       (409,492 )     -       413,847                
                                               
Total Liabilities and Shareholders' Equity
   $ 1,726,736     $ (907,621 )   $ 66,226     $ 885,342                

 
- 11 -
 
 
Notes Receivable
                              
(in thousands)
                              
 
   
Balance at
                                      
   
December
         
Balance at
                      
Underlying third-party
  
   
31, 2011
    
First
    
March 31, 2012
    
Stated
  
Effective
            
first mortgage
  
         
Quarter
        
Accrued
        
Interest
  
Interest
  
Maturity
  
Extension
            Maturity  
Investment
  
Principal
    
Activity
    
Principal
  
Interest
  
Total
    
Rate
  
Rate 1
  
Dates
  
Options
    
Amount
    
Dates
  
                                                         
                                                         
First mortgage and other notes
   $ 5,669     $ 1,080     $ 6,749   $ 134   $ 6,883       12.63 %   16.23 %
2012 to 2017
     -       n/a       n/a  
                                                                             
Short-term notes related to acquisitions
     12,500       16,000       28,500     528     29,028       11.00 %   11.00 %
2013 to 2017
     -       n/a       n/a  
                                                                             
Mezzanine notes
     18,659       96       18,755     689     19,444       12.70 %   14.31 %
2012 to 2017
     -       311,716   2012 thru 2019
                                                                             
Total  notes receivable
   $ 36,828     $ 17,176     $ 54,004   $ 1,351   $ 55,355       11.79 %   12.80 %                          
                                                                             
Notes:
                                                                            
1 Inclusive of points and exit fees.
                                                                            
                   
Balance at
                                                    
                   
March 31,
                                                   
Reconciliation of Notes Receivable to the Consolidated Balance Sheet
    
2012
                                                    
                                                                             
Total Notes Receivable per above
                   $ 54,004                                                      
                                                                             
Fund I first mortgage loan - Kroger/Safeway sale
               12,609                                                      
Fund III first mortgage investment
                     10,000                                                      
Fund III non-real estate loans
                     567                                                      
                                                                             
Total Notes Receivable per Consolidated Balance Sheet
             $ 77,180                                                      

 
- 12 -
 
 
2012 Guidance - Highlights
        
 (in millions except per share amounts, all per share amounts are fully diluted)
    
 
             
   
Current
        
   
2012 Guidance
    
2011 Actual
  
Overall:
            
             
Fully diluted Common Shares and OP Units
     45,500 - 48,000       41,467  
                 
Full year Funds from Operations ("FFO")  per share
     $1.00 to $1.05       $0.97  
                 
Earnings per Share ("EPS")
     $0.54 to $0.60       $1.26  
                 
                 
FFO Components:
                
                 
Core and pro-rata share of opportunity Fund ("Fund") portfolio income
     $49.5 to $52.5       $43.9  
                 
Asset and property management fee income, net of TRS taxes
     $14.0 to $14.5       $12.1  
                 
Transactional fee income, net of TRS taxes
     $5.0 to $6.5       $6.2  
                 
Promote, RCP and other income, net of TRS taxes
     $0.5 to $1.0       $1.5  
                 
General and administrative expense
     $(23.5) to $(24.0)       $(23.4)  
                 
Total
     $45.5 to $50.5       $40.3  

 
- 13 -
 
 
Net Asset Valuation Information
                                                          (
(in thousands)        
FUND I
    
FUND II
    
FUND III
  
             
AKR pro-rata share
    
Fund Level
    
AKR Pro-rata Share
    
Fund Level
    
AKR pro-rata share
  
   
CORE
    
Fund Level
  
%
   $    
Quarterly
    
Annualized (x4)
    
%
     $    
Quarterly
    
Annualized (x4)
    
%
     $    
Current NOI
                                                                          
Operating properties1
   $ 12,013       --               $ -     $ -       20.00 %   $ -     $ 3,331     $ 13,324       19.90 %   $ 2,652  
Operating properties - Unconsolidated Affiliates                               -       -                       1,802       7,208               1,434  
Development Portfolio
                                                                                          
Construction complete - Stabilized
     -                         3,870       15,480               3,096       -       -               -  
Construction complete - Pre-stabilized
     -                         2,144       8,576               1,715       195       780               155  
Storage portfolio
     -                         406       1,624               325       3,002       12,008               2,390  
Total NOI
   $ 12,013                       $ 6,420     $ 25,680             $ 5,136     $ 8,330     $ 33,320             $ 6,631  
                                                                                           
                                                                                           
Cost to Date2
                                                                                          
Construction complete (both stabilized and pre-stabilized)
                                     $ 416,800             $ 83,360             $ 24,900             $ 4,955  
Under construction
                                       112,700               22,540               -               -  
In-design
                                       34,400               6,880               75,500               15,025  
Storage portfolio
                                       -               -               186,700               37,154  
                                                                                           
                                                                                           
Costs to Complete2
                                                                                          
Construction complete (both stabilized and pre-stabilized)
                                     $ 12,100             $ 2,420             $ 600             $ 119  
Under construction
                                       137,300               27,460               -               -  
In-design
                                       -               -               -               -  
                                                                                           
                                                                                           
Annual NOI Upon Stabilization (Mid-Point of Range)
                                                                                          
Construction complete (both stabilized and pre-stabilized)
                                     $ 34,312             $ 6,862             $ 2,040             $ 406  
Storage portfolio
                                       -               -               14,936               2,972  
Under construction
                                       20,000               4,000               -               -  
                                                                                           
                                                                                           
Debt4
   $ 297,734     $ 8,260                       $ 330,361             $ 62,159             $ 311,521             $ 59,352  
                                                                                           
                                                                                           
Gross asset value1
             32,600                                                                            
Net Asset Value
           $ 24,340  
37.78
 %  $ 9,196                                                                  
 
Notes:
  
1Fund I value is based on property appraisals.  Pro-rata share is 20% (AKR promote) + 22% x 80% ( AKR remaining share after promote) = 37.78%.
 Total future promote is approximately $1,500
2See detail on pages 27 and 28 of this supplement.
 
 
-14-
 
 
 
Selected Operating Ratios
                                    
(in thousands)
                                    
                                     
                                     
                                     
   
Three months ended March 31,
        
Three months
ended March 31,
        
Three months
ended December 31,
      
   
2012
    
2011
        
2012
        
2011
      
COVERAGE RATIOS1
              
LEVERAGE RATIOS
                    
                                     
EBITDA2
   $ 15,558     $ 18,439    
Debt4
   $ 422,367         $ 396,457      
Divided by Interest expense
     5,396       5,749    
Total Market Capitalization
     1,419,065           1,264,553      
Interest Coverage Ratio
     2.88   x   3.21   x
Debt/Total Market Capitalization
     30 %         31 %    
                                             
EBITDA
   $ 15,558     $ 18,439    
Debt + Preferred Equity (Preferred O.P. Units)
   $ 422,932         $ 396,962      
Divided by (Interest expense
     5,396       5,749    
Total Market Capitalization
     1,419,065           1,264,553      
Plus: Preferred Dividends)3
     5       5    
Debt+Preferred Equity/Total Market Capitalization
     30 %         31 %    
Fixed Charge Coverage Ratio
     2.88   x   3.20   x                      
                   
Debt
   $ 297,734         $ 271,210      
EBITDA
   $ 15,558     $ 18,439    
EBITDA (Annualized)
     49,428           51,572      
Divided by (Interest expense
     5,396       5,749    
Debt/EBITDA - Core Portfolio
     6.02   x       5.26   x  
Plus: Principal Amortization)
     810       632                              
Debt Service Coverage Ratio
     2.51   x   2.89   x
Debt5
   $ 268,182         $ 208,249      
                   
EBITDA (Annualized)
     49,428           51,572      
Payout Ratios
                  
Net Debt/EBITDA - Core Portfolio
     5.43   x       4.04   x  
                                             
Dividends (Shares) & Distributions (O.P. Units) paid
   $ 7,914     $ 7,505    
Debt
   $ 422,367         $ 396,457      
FFO
     9,298       13,570    
EBITDA (Annualized)
     62,232           65,543      
FFO Payout Ratio
     85 %     55 %  
Debt/EBITDA - Core Portfolio and Opportunity Funds
     6.79   x       6.05   x  
                                             
Dividends (Shares) & Distributions (O.P. Units) paid
   $ 7,914     $ 7,505    
Debt6
   $ 385,645         $ 324,472      
AFFO
     6,901       10,405    
EBITDA (Annualized)
     62,232           65,543      
AFFO Payout Ratio
     115 %     72 %                            
                   
Net Debt/EBITDA - Core Portfolio and Oppoerunity Funds
     6.20   x       4.95   x  
Dividends (Shares) & Distributions (O.P. Units) paid
   $ 7,914     $ 7,505                              
FAD
     6,091       9,773    
NOI (Annualized)
   $ 48,052         $ 45,443      
FAD Payout Ratio
     130 %     77 %  
Debt
     297,734           221,210      
                   
Debt Yield - Core Portfolio
     16.1 %         16.8 %    
                                             
                   
NOI (Annualized)
   $ 48,052         $ 45,443      
                   
Debt5
     268,182           208,249      
                   
Net Debt Yield - Core Portfolio
     17.9 %         21.8 %    
                                             
                   
NOI (Annualized)
   $ 60,368         $ 56,268      
                   
Debt
     422,367           396,457      
                   
Debt Yield - Core Portfolio and Opportunity Funds
     14.3 %         14.2 %    
                                             
                   
NOI (Annualized)
   $ 60,368         $ 56,268      
                   
Debt6
     385,645           324,472      
                   
Net Debt Yield - Core Portfolio and Opportunity Funds
     15.7 %         17.3 %    
                                             
                                             
 
Notes:
1Quarterly results are unaudited, although they reflect all adjustments,  which in the opinion of management, are necessary for a fair presentation of operating  results for the interim periods. The coverage ratios include the Company's pro-rata share  of EBITDA, interest expense and principal amortization related to both the Company's  consolidated and unconsolidated investments in joint ventures.
2See page 8 for a calculation of EBITDA.
3Represents preferred distributions on Preferred Operating partnership Units.
4Includes the Company's pro-rata share of consolidated and unconsolidated joint venture debt.
5Reflects debt net of the current Core Portfolio cash balance at end of period.
6Reflects debt net of the current Core Portfolio and pro-rata share of the Opportunity Funds  cash balance at end of period.
 
 
-15-
 
 
Portfolio Debt - Summary
                                                            
Reconciliation from Pro-Rata Share of Debt to GAAP Debt per Financial Statement
              
(in thousands)
                                                            
                                                             
   
Acadia Pro-Rata Share of Debt 2
    
Reconciliation to Consolidated Debt as Reported
  
                               
Add:
  
Less:
  
Acadia
  
   
Core Portfolio
    
Opportunity Funds
    
Total
    
Noncontrolling
  
Pro-rata Share of
  
Consolidated
  
   
Principal
  
Interest
  
Principal
  
Interest
  
Principal
  
Interest
  
Fixed vs
  
Interest Share of
  
Unconsolidated
  
Debt
  
Mortgage Notes Payable
  
Balance
  
Rate
  
Balance
  
Rate
  
Balance
  
Rate
  
Variable
  
Consolidated Debt 3
  
Debt 4
  
As Reported
  
                                                             
Fixed-Rate Debt 1
   $ 318,403       5.6 %   $ 19,875       6.2 %   $ 338,278       5.6 %     80 %   $ 50,611     $ (73,895 )   $ 314,994  
Variable-Rate Debt 1
     (20,669 )     2.1 %     104,757       3.0 %     84,088       3.4 %     20 %     423,979       (10,455 )     497,612  
                                                                                 
Total
   $ 297,734       5.6 %   $ 124,633       4.1 %   $ 422,367       5.2 %     100 %   $ 474,590     $ (84,350 )     812,606  
                                                                                 
FAS 141 purchase price debt allocation
                                                               24  
Total debt as reported
                                                                           $ 812,630  
 
Notes
  
1 Fixed-rate debt includes notional principal fixed through swap transactions.
  
2 Represents the Company's pro-rata share of debt based on its percent ownership.
3 Represents the noncontrolling Interest  pro-rata share of consolidated partnership debt based on its percent ownership.
4 Represents the Company's pro-rata share of unconsolidated partnership debt based on percent ownership.
 
 
-16-
 
 
Debt Analysis
                                
(in thousands)
                                
                                 
       
Principal Balance at
    
Acadia's Pro-rata Share
    
Interest
  
Maturity
Extension
Property
  
Entity
  
March 31, 2012
    
Percent
    
Amount
    
Rate
  
Date
Options
                                 
CORE PORTFOLIO
                                
                                 
Fixed-Rate Debt
                                
Clark Diversey
  
Acadia
   $ 4,455       100.0 %   $ 4,455       6.35 %
7/1/2014
None
New Loudon Center
  
Acadia
     13,820       100.0 %     13,820       5.64 %
9/6/2014
None
Crossroads Shopping Center
  
Crossroads JV
     60,128       49.0 %     29,462       5.37 %
12/1/2014
None
Crescent Plaza
  
Acadia
     17,222       100.0 %     17,222       4.98 %
9/6/2015
None
Pacesetter Park Shopping Center
  
Acadia
     11,892       100.0 %     11,892       5.12 %
11/6/2015
None
Elmwood Park Shopping Center
  
Acadia
     33,618       100.0 %     33,618       5.53 %
1/1/2016
None
Chicago Portfolio
  
Acadia
     14,472       100.0 %     14,472       5.62 %
2/1/2016
None
Chicago Portfolio
  
Acadia
     1,537       100.0 %     1,537       5.55 %
2/1/2016
None
The Gateway Shopping Center
  
Acadia
     20,240       100.0 %     20,240       5.44 %
3/1/2016
None
Cambridge (Whole Foods)
  
Acadia
     7,013       100.0 %     7,013       6.26 %
5/1/2016
None
Brandywine Town Center
  
Brandywine JV
     166,200       22.2 %     36,933       5.99 %
7/1/2016
None
Walnut Hill Plaza
  
Acadia
     23,391       100.0 %     23,391       6.06 %
10/1/2016
None
Acadia Realty Trust (Convertible Notes)
  
Acadia
     930       100.0 %     930       3.75 %
12/15/2016
None
239 Greenwich Avenue
  
Acadia
     26,000       75.0 %     19,500       5.42 %
2/11/2017
None
Merrillville Plaza
  
Acadia
     26,250       100.0 %     26,250       5.88 %
8/1/2017
None
Georgetown Portfolio
  
Acadia
     6,390       50.0 %     3,195       6.15 %
6/15/2020
None
Georgetown Portfolio
  
Acadia
     984       50.0 %     492       5.50 %
5/26/2021
None
A & P Shopping Plaza
  
Acadia
     7,833       60.0 %     4,700       6.40 %
11/1/2032
None
Interest rate swaps1
  
Acadia
     49,281       100.0 %     49,281       5.17 %
Various
  
                                         
Sub-Total Fixed-Rate Debt
         491,656               318,403       5.57 %    
                                         
Variable-Rate Debt
                                        
                                         
Georgetown Portfolio
  
Acadia
     2,758       50.0 %     1,379    
Libor + 210
  
10/31/2012
None
Various2
  
Acadia
     1,000       100.0 %     1,000    
Libor + 125
  
12/1/2012
None
Cambridge (Rite Aid)
  
Acadia
     4,250       100.0 %     4,250    
Libor + 200
  
2/28/2013
None
Branch Plaza
  
Acadia
     12,702       100.0 %     12,702    
Libor + 225
  
9/30/2014
1 x 36 mos.
Village Commons Shopping Center
  
Acadia
     9,281       100.0 %     9,281    
Libor + 140
  
6/30/2018
None
Interest rate swaps1
  
Acadia
     (49,281 )     100.0 %     (49,281 )            
                                         
Sub-Total Variable-Rate Debt
         (19,290 )             (20,669 )  
Libor + 189
      
                                         
Total Core Portfolio Debt
       $ 472,366             $ 297,734       5.62 %    
 
 
-17-
 
 
Debt Analysis (continued)
                                
(in thousands)
                                
                                 
       
Principal Balance at
    
Acadia's Pro-rata Share
    
Interest
  
Maturity
Extension
Property
  
Entity
  
March 31, 2012
    
Percent
    
Amount
    
Rate
  
Date
Options
                                 
OPPORTUNITY FUNDS
                                
                                 
Fixed-Rate Debt
                                
Lincoln Road7
  
  Fund III
     20,163       18.9 %     3,813       6.14 %
8/11/2014
None
CityPoint
  
  Fund II
     20,000       18.8 %     3,766       7.25 %
11/1/2014
None
216th Street3
  
  Fund II
     25,500       19.8 %     5,054       5.80 %
10/1/2017
None
Atlantic Avenue
  
  Fund II
     11,540       13.3 %     1,539       7.34 %
1/1/2020
None
Interest rate swaps1
  
  Funds I, II & III
     29,443       19.4 %     5,703       5.54 %
Various
  
                                         
Sub-Total Fixed-Rate Debt
         106,646               19,875       6.18 %    
                                         
Variable-Rate Debt
                                        
Canarsie Plaza
  
  Fund II
     56,476       15.9 %     8,955    
Libor + 400
  
4/11/2012
1 x 36 mos.
Liberty Avenue
  
  Fund II
     9,348       19.8 %     1,853    
Libor + 325
  
9/1/2012
None
Fordham Place3
  
  Fund II
     83,947       19.8 %     16,638    
Libor + 350
  
9/30/2012
None
Acadia Strategic Opportunity Fund III, LLC5
  
  Fund III
     133,579       19.9 %     26,582    
Libor + 225
  
10/10/2012
None
Tarrytown Shopping Center
  
  Fund I
     8,260       37.8 %     3,121    
Libor + 165
  
10/30/2012
None
161st Street3
  
  Fund II
     28,900       19.8 %     5,728    
Libor + 550
  
4/1/2013
None
CityPoint
  
  Fund II
     20,650       18.8 %     3,888    
Libor + 250
  
8/12/2013
2 x 12 mos.
Storage Post - Various4
  
  Fund III
     42,000       18.9 %     7,940    
Libor + 415
  
8/31/2013
None
Pelham Manor Shopping Plaza3
  
  Fund II
     34,000       19.8 %     6,739    
Libor + 275
  
12/1/2013
None
125 Main Street
  
  Fund III
     12,500       15.9 %     1,991    
Libor + 235
  
9/30/2014
2 x 12 mos.
Acadia Strategic Opportunity Fund II, LLC
  
  Fund II
     40,000       20.0 %     8,000    
Libor + 290
  
12/22/2014
None
Parkway Crossing8
  
  Fund III
     14,000       17.9 %     2,508    
Libor + 220
  
1/1/2015
2 x 12 mos.
Cortlandt Towne Center
  
  Fund III
     50,000       19.9 %     9,950    
Libor + 190
  
10/26/2015
None
White City Shopping Center6
  
  Fund III
     39,279       16.7 %     6,568    
Libor + 260
  
12/23/2017
1 x 36 mos.
Interest rate swaps1
  
  Funds I, II & III
     (29,443 )     19.4 %     (5,703 )            
                                         
Sub-Total Variable-Rate Debt
         543,496               104,757    
Libor + 273
      
                                         
Total Opportunity Funds  Portfolio Debt
   $ 650,142             $ 124,632       4.06 %    
 
 
-18-
 
 
Debt Analysis - Notes
                      
(in thousands)
                      
                       
                       
1The Company has hedged a portion of it's variable-rate debt with variable to fixed-rate swap agreements as follows:
                       
   
Notional
    
Pro-rata
    
Average
    
 Maturity
   
principal
    
Share
    
Swap rate
    
Date
                       
Core Portfolio
   $ 15,000     $ 15,000       3.79 %  
11/30/2012
      15,000       15,000       3.41 %  
11/30/2012
      10,000       10,000       2.65 %  
11/30/2012
      9,281       9,281       2.90 %  
7/2/2018
    $ 49,281     $ 49,281       3.28 %    
                             
Opportunity Funds
   $ 19,629     $ 3,282       2.90 %  
12/26/2017
      9,814       1,641       3.02 %  
12/26/2017
    $ 29,443     $ 4,923       2.94 %    
                             
Total Core Portfolio and Opportunity Funds
   $ 78,724     $ 54,204       3.24 %    
 
2This is a revolving facility for up to $64,500 and is collateralized by Bloomfield Town Square, Hobson West Plaza, Marketplace of Absecon,
  Abington Towne Center, Methuen Shopping Center and Town Line Plaza.
3Fund II is a 99.1% joint venture partner on this investment. As such, Acadia's pro-rata share of the above debt is 99.1% x 20%, or 19.8%.
4The loan is collateralized by Storage Post locations - Linden, Webster Avenue,  Jersey City, Fordham Road, Lawrence and Ridgewood.
5This is an acquisition facility with no current additional capacity.
6Fund III is an 84.0% joint venture partner on this investment. As such, Acadia's pro-rata share of the above debt is 84.0% x 19.9%, or 16.7%.
7Fund III is a 95.0% joint venture partner on this investment. As such, Acadia's pro-rata share of the above debt is 95.0% x 19.9%, or 18.9%.
8Fund III is a 90.0% joint venture partner on this investment. As such, Acadia's pro-rata share of the above debt is 90.0% x 19.9%, or 17.9%.
 
 
-19-
 
 
Future Debt Maturities - Including Extension Options
                                
(in thousands)
                                                      
                                                       
Core Portfolio
                                                      
   
Total Debt Maturities
    
Acadia's Pro-rata Share
    
Weighted Average Interest Rate of Maturing Debt
  
   
Scheduled
                
Scheduled
                                
Year
  
Amortization
    
Maturities
    
Total
    
Amortization
    
Maturities
    
Total
    
Total Debt
    
Fixed-Rate Debt
  
Variable-Rate Debt
                                                       
2012
   $ 3,035     $ 3,758     $ 6,793     $ 2,541     $ 2,379     $ 4,920       2.12 %     n/a       2.12 %
2013
     4,460       4,250       8,710       3,766       4,250       8,016       2.24 %     n/a       2.24 %
2014
     4,516       74,406       78,922       3,783       45,280       49,063       5.47 %     5.47 %     n/a  
2015
     3,135       27,344       30,479       2,982       27,344       30,326       5.04 %     5.04 %     n/a  
2016
     1,608       261,169       262,777       1,446       131,902       133,348       5.88 %     5.88 %     n/a  
Thereafter
     7,491       77,194       84,685       4,685       67,376       72,061       4.78 %     5.71 %     2.13 %
Total
   $ 24,245     $ 448,121     $ 472,366     $ 19,203     $ 278,531     $ 297,734                          
                                                                         
                                                                         
                                                                         
Opportunity Funds
                                                                        
   
Total Debt Maturities
    
Acadia's Pro-rata Share
    
Weighted Average Interest Rate of Maturing Debt
  
   
Scheduled
                    
Scheduled
                                          
Year
  
Amortization
    
Maturities
    
Total
    
Amortization
    
Maturities
    
Total
    
Total Debt
    
Fixed-Rate Debt
  
Variable-Rate Debt
                                                                         
2012
   $ 1,399     $ 235,134     $ 236,533     $ 226     $ 48,223     $ 48,449       3.41 %     n/a       3.41 %
2013
     2,174       103,801       105,975       309       20,285       20,594       4.42 %     n/a       4.42 %
2014
     1,170       79,179       80,349       204       15,393       15,597       4.91 %     6.71 %     3.14 %
2015
     1,043       127,126       128,169       178       22,793       22,971       4.18 %     n/a       4.18 %
2016
     1,047       12,500       13,547       178       1,990       2,168       2.59 %     n/a       2.59 %
Thereafter
     2,502       83,067       85,569       412       14,441       14,853       4.30 %     6.27 %     2.74 %
Total
   $ 9,335     $ 640,807     $ 650,142     $ 1,507     $ 123,125     $ 124,632                          
 
 
-20-
 
 
Future Debt Maturities - Not Including Extension Options
                              
(in thousands)
                                                      
                                                       
Core Portfolio
                                                      
   
Total Debt Maturities
    
Acadia's Pro-rata Share
    
Weighted Average Interest Rate of Maturing Debt
  
   
Scheduled
                
Scheduled
                              
Year
  
Amortization
  
Maturities
    
Total
    
Amortization
  
Maturities
    
Total
    
Total Debt
    
Fixed-Rate Debt
  
Variable-Rate Debt
  
                                                       
2012
   $ 3,035     $ 3,758     $ 6,793     $ 2,541     $ 2,379     $ 4,920       2.12 %     n/a       2.12 %
2013
     4,460       4,250       8,710       3,766       4,250       8,016       2.24 %     n/a       2.24 %
2014
     4,476       86,502       90,978       3,743       57,376       61,119       5.05 %     5.47 %     2.49 %
2015
     2,900       27,344       30,244       2,747       27,344       30,091       5.04 %     5.04 %     n/a  
2016
     1,373       261,169       262,542       1,211       131,902       133,113       5.88 %     5.88 %     n/a  
Thereafter
     7,296       65,803       73,099       4,489       55,985       60,474       5.18 %     5.71 %     1.64 %
Total
   $ 23,540     $ 448,826     $ 472,366     $ 18,497     $ 279,237     $ 297,734                          
                                                                         
                                                                         
                                                                         
                                                                         
                                                                         
Opportunity Funds
                                                                  
   
Total Debt Maturities
    
Acadia's Pro-rata Share
    
Weighted Average Interest Rate of Maturing Debt
  
   
Scheduled
                    
Scheduled
                                        
Year
  
Amortization
  
Maturities
    
Total
    
Amortization
  
Maturities
    
Total
    
Total Debt
    
Fixed-Rate Debt
  
Variable-Rate Debt
  
2012
   $ 1,399     $ 291,611     $ 293,010     $ 226     $ 57,178     $ 57,404       4.01 %     n/a       4.01 %
2013
     2,174       124,451       126,625       309       24,173       24,482       4.14 %     n/a       4.14 %
2014
     1,170       91,679       92,849       204       17,383       17,587       4.59 %     6.71 %     3.01 %
2015
     627       62,926       63,553       103       12,264       12,367       2.20 %     n/a       2.20 %
2016
     631       -       631       103       -       103       n/a       n/a       n/a  
Thereafter
     771       72,703       73,474       122       12,567       12,689       4.57 %     6.27 %     2.84 %
Total
   $ 6,772     $ 643,370     $ 650,142     $ 1,067     $ 123,565     $ 124,632                          
 
 
-21-
 
 
Overview of Acadia Strategic Opportunity Funds
            
                 
                 
Item
  
FUND I
    
FUND II
    
FUND III
                 
Date formed
  
September 2001
    
June 2004
    
May 2007
                 
Capital commitment
  
$90 million
    
$300 million
    
$503 million
                 
Funding
  
Fully funded
    
$282.2 million funded through March 31, 2012
    
$254.3 million funded through March 31, 2012
                 
Partnership structure
              
                 
Equity Contribution:
  
22.22% - Acadia
    
20% - Acadia
    
20% - Acadia
   
77.78% - Four institutional investors
    
80% - Six institutional investors
    
80% - 14 institutional investors
                 
Cash flow distribution:
22.22% - Acadia
    
20% - Acadia
    
20% - Acadia
   
77.78% - Four institutional investors
    
80% - Six institutional investors
    
80% - 14 institutional investors
                 
Promote:
  
20% to Acadia once all partners (including
    
20% to Acadia once all partners (including
    
20% to Acadia once all partners (including
   
Acadia) have received 9% preferred return and
    
Acadia) have received 8% preferred return and
    
Acadia) have received 6% preferred return and
   
return of equity
    
return of equity
    
return of equity
                 
   
Remaining 80% is distributed to all the partners
    
Remaining 80% is distributed to all the partners
    
Remaining 80% is distributed to all the partners
   
(including Acadia).
    
(including Acadia).
    
(including Acadia).
                 
   
All original capital and accumulated preference
    
All unfunded capital is anticipated to be used to
    
The Fund is currently in acquisition phase through
   
has been paid. Acadia is entitled to a Promote
    
complete existing projects
    
June 2012.
   
on all future distributions.
            
                 
Fees to Acadia
  
Priority distribution fee equal to 1.5% of implied
    
Asset management fee equal to 1.5% of total
    
Asset management fee equal to 1.5% of total
   
capital
    
committed capital
    
committed capital
                 
   
Priority distribution fee equal to 4% of gross
    
Property management fee equal to 4% of gross
    
Property management fee equal to 4% of gross
   
property revenues
    
property revenues
    
property revenues
                 
   
Market rate leasing fees
    
Market rate leasing fees
    
Market rate leasing fees
                 
   
Market rate construction/project management fees
    
Market rate construction/project management fees
    
Market rate construction/project management fees
                 
               
Development fee equal to 3% of total project cost
 
 
-22-
 
 
Opportunity Fund Retail Properties - Detail
                                                                
                                                                   
     
Ownership
    
Gross Leasable Area
  
Occupancy
    
Annualized Base Rent
  
 
Anchors
  
%
    
Anchors
  
Shops
    
Total
  
Anchors
    
Shops
    
Total
    
Anchors
  
Shops
  
Total
  
Anchors
  
Shops
  
Per Sq. Ft.
  
Fund I Portfolio Detail:
                                                                  
                                                                   
NEW YORK
                                                                  
                                                                   
New York
                                                                  
Tarrytown Shopping Center
Walgreen's
   100 %   15,497   19,482     34,979   100.00 %   73.60 %   85.30 %   $ 475,000   $ 373,733   $ 848,733   $ 30.65   $ 26.06   $ 28.45  
                                                                               
VARIOUS
                                                                              
                                                                               
Kroger/Safeway Portfolio (3 Properties)
Kroger/Safeway
   75 %   97,500   -     97,500   69.23 %   0.00 %   69.23 %     302,076     -     302,076     4.48     -     4.48  
                                                                               
Grand Total - Fund I
           112,997   19,482     132,479   73.45 %   73.60 %   73.47 %   $ 777,076   $ 373,733   $ 1,150,809   $ 9.36   $ 26.06   $ 11.82  
                                                                               
Fund II Portfolio Detail 2
                                                                              
                                                                               
NEW YORK
                                                                              
                                                                               
New York
                                                                              
Pelham Manor Shopping Plaza
BJ's Wholesale Club, PetSmart, Storage Post
   99.1 %   169,512   58,981     228,493   100.00 %   64.96 %   90.96 %   $ 4,287,282   $ 1,314,497   $ 5,601,779   $ 25.29   $ 34.31   $ 26.95  
Fordham Place
Walgreens, Best Buy, 24 Hour Fitness, Sears
   99.1 %   74,899   44,547     119,446   100.00 %   100.00 %   100.00 %     2,873,228     2,646,532     5,519,760     38.36     59.41     46.21  
Liberty Avenue
CVS, Storage Post
   99.1 %   10,880   15,245     26,125   100.00 %   70.73 %   82.92 %     432,480     340,191     772,671     39.75     31.55     35.67  
Canarsie Plaza
BJ's Wholesale Club, Planet Fitness, PetSmart
   79.3 %   177,135   96,407     273,542   100.00 %   81.72 %   93.56 %     5,100,000     2,578,974     7,678,974     28.79     32.73     30.01  
216th Street
NYC Human Resources Administration
   99.1 %   60,000   -     60,000   100.00 %   0.00 %   100.00 %     2,340,000     120,000     2,460,000     39.00     -     41.00  
161st Street1
Various New York City & State agencies
   99.1 %   120,604   117,379     237,983   100.00 %   73.19 %   86.78 %     2,930,677     1,686,460     4,617,137     24.30     19.63     22.36  
                                                                               
Grand Total - Fund II
           613,030   332,559     945,589   100.00 %   77.68 %   92.15 %   $ 17,963,667   $ 8,686,654   $ 26,650,321   $ 29.30   $ 33.63   $ 30.58  
                                                                               
Fund III Portfolio Detail 2
                                                                            
                                                                               
NEW YORK
                                                                              
                                                                               
Connecticut
                                                                              
125 Main Street
Gap, Brooks Brothers For Women
   100.0 %   17,448   9,585     27,033   100.00 %   68.70 %   88.90 %   $ 1,350,000   $ 391,544   $ 1,741,544   $ 77.37   $ 59.46   $ 72.47  
                                                                               
New York
                                                                              
Cortlandt Towne Center
Wal-Mart, Best Buy, A&P
   100.0 %   472,901   168,310     641,211   91.50 %   83.59 %   89.42 %     5,921,387     3,366,476     9,287,863     13.68     23.93     16.20  
654 Broadway
 -   100.0 %   -   2,896     2,896   -     100.00 %   100.00 %     -     300,000     300,000     -     103.59     103.59  
640 Broadway
Swatch
   100.0 %   -   4,483     4,483   -     74.21 %   74.21 %     -     645,281     645,281     -     193.96     193.96  
New Hyde Park Shopping Center
 -   100.0 %   -   31,498     31,498   -     91.25 %   91.25 %     -     853,704     853,704     -     29.70     29.70  
                                                                               
NEW ENGLAND
                                                                              
                                                                               
Massachusetts
                                                                              
White City Shopping Center4
Shaw's (Supervalue)
   84.0 %   131,618   123,625     255,243   85.50 %   79.70 %   82.69 %     1,650,048     3,074,906     4,724,954     14.66     31.21     22.39  
                                                                               
MID-ATLANTIC
                                                                              
                                                                               
Maryland
                                                                              
White Oak5
ShopRite
   90.0 %   64,626   -     64,626   100.00 %   -     100.00 %     874,416     -     874,416     13.53     -     13.53  
Parkway Crossing3
Home Depot, Big Lots
   90.0 %   192,836   67,405     260,241   71.40 %   78.64 %   73.28 %     332,488     941,582     1,274,070     2.41     17.76     6.68  
                                                                               
SOUTHEAST
                                                                              
                                                                               
Florida
                                                                              
Lincoln Road6
Sushi Samba, El Rancho Grande
   95.0 %   -   61,443     61,443   -     35.41 %   35.41 %     -     2,348,380     2,348,380     -     107.95     107.95  
                                                                               
MIDWEST
                                                                              
Illinois
                                                                              
Heritage Shops
LA Fitness, Loft
   100.0 %   49,878   55,571     105,449   100.00 %   54.52 %   76.03 %     1,077,752     1,511,000     2,588,752     21.61     49.87     32.29  
                                                                               
Grand Total - Fund III
           929,307   524,816     1,454,123   87.69 %   73.52 %   82.57 %   $ 11,206,091   $ 13,432,873   $ 24,638,964   $ 13.75   $ 34.82   $ 20.52  
 
Notes:
  
General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced.
   
The following Fund II and Fund III properties are currently undergoing construction or are in the design phase as further detailed under Redevelopment Projects.
 
Property
  
Ownership %
  
Sherman Avenue
   99.1%  
CityPoint
   94.2%  
Sheepshead Bay
   100.0%  
 
1Currently operating, but redevelopment activities have commenced.
2Fund II and Fund III portfolio detail does not include the Storage Portfolio. Storage Portfolio property detail is reported separately on page 31 of this supplement.
3 Fund III has a 90.0% interest in this unconsolidated investment. A lease has been executed with Shop Rite replacing the former A&P with commencement anticipated in the second half of 2012.
4Fund III has an 84.0% interest in this unconsolidated investment.
5Fund III has an 90.0% interest in this unconsolidated investment.
6Fund III has an 95.0% interest in this unconsolidated investment.
 
 
-23-
 
 
Opportunity Funds Lease Expirations
                                
                                     
   
No. of Leases
    
Gross Leased Area
    
Annual Base Rent
  
FUND I:
  
Expiring
    
Square Footage
    
Percent of Total
    
Amount
    
Percent of Total
    
Avg. per Sq. Ft.
  
                                     
Anchor Tenants
                                    
2014
     2       67,500       81.33 %   $ 302,076       38.87 %   $ 4.48  
2080
     1       15,497       18.67 %     475,000       61.13 %     30.65  
Total
     3       82,997       100.00 %   $ 777,076       100.00 %   $ 9.36  
                                                 
Total Vacant
             30,000                                  
Total Square Feet
             112,997                                  
                                                 
Shop Tenants
                                                
2012
     1       981       6.84 %   $ 36,621       9.80 %   $ 37.33  
2018
     1       1,761       12.28 %     56,370       15.08 %     32.01  
2020
     3       8,411       58.66 %     248,538       66.50 %     29.55  
2021
     1       3,185       22.21 %     32,205       8.62 %     10.11  
Total
     6       14,338       100.00 %   $ 373,734       100.00 %   $ 26.07  
                                                 
Total Vacant
             5,144                                  
Total Square Feet
             19,482                                  
                                                 
Total Anchor and Shop Tenants
                                                
2012
     1       981       1.01 %   $ 36,621       3.18 %   $ 37.33  
2014
     2       67,500       69.35 %     302,076       26.26 %     4.48  
2018
     1       1,761       1.81 %     56,370       4.90 %     32.01  
2020
     3       8,411       8.64 %     248,538       21.60 %     29.55  
2021
     1       3,185       3.27 %     32,205       2.80 %     10.11  
2080
     1       15,497       15.92 %     475,000       41.28 %     30.65  
Total
     9       97,335       100.00 %   $ 1,150,810       100.00 %   $ 11.82  
                                                 
Total Vacant
             35,144                                  
Total Square Feet
             132,479                                  
 
 
-24-
 
 
Opportunity Funds Lease Expirations
                                
   
No. of Leases
    
Gross Leased Area
    
Annual Base Rent
  
FUND II:
  
Expiring
    
Square Footage
    
Percent of Total
    
Amount
    
Percent of Total
    
Avg. per Sq. Ft.
  
                                     
Anchor Tenants
                                    
2012
     1       120,604       19.67 %   $ 2,930,677       16.31 %   $ 24.30  
2013
     1       20,149       3.29 %     564,172       3.14 %     28.00  
2019
     1       39,705       6.48 %     1,747,020       9.73 %     44.00  
2021
     1       19,958       3.26 %     423,110       2.36 %     21.20  
2023
     1       35,194       5.74 %     1,126,208       6.27 %     32.00  
2027
     1       60,000       9.79 %     2,340,000       13.03 %     39.00  
2030
     1       177,135       28.89 %     5,100,000       28.39 %     28.79  
2032
     1       10,880       1.77 %     432,480       2.41 %     39.75  
2033
     1       129,405       21.11 %     3,300,000       18.37 %     25.50  
Total
     9       613,030       100.00 %   $ 17,963,667       100.00 %   $ 29.30  
                                                 
Total Vacant
             -                                  
Total Square Feet
             613,030                                  
                                                 
Shop Tenants
                                                
Month to Month
     1       9,967       3.86 %   $ 99,670       1.15 %   $ 10.00  
2012
     2       42,497       16.45 %     573,208       6.60 %     13.49  
2014
     1       5,081       1.97 %     193,078       2.22 %     38.00  
2016
     1       2,000       0.77 %     86,000       0.99 %     43.00  
2018
     1       3,600       1.39 %     156,600       1.80 %     43.50  
2019
     4       9,318       3.61 %     496,684       5.72 %     53.30  
2020
     3       16,309       6.31 %     547,183       6.30 %     33.55  
2021
     10       22,869       8.85 %     835,501       9.62 %     36.53  
2022
     3       17,574       6.80 %     724,794       8.34 %     -  
2023
     1       31,417       12.16 %     1,131,012       13.02 %     36.00  
2027
     1       6,208       2.40 %     217,901       2.51 %     35.10  
2031
     4       81,492       31.55 %     2,425,022       27.92 %     29.76  
2048
     1       10,000       3.87 %     1,200,000       13.81 %     120.00  
Total
     33       258,332       100.00 %   $ 8,686,653       100.00 %   $ 33.63  
                                                 
Total Vacant
             74,227                                  
Total Square Feet
             332,559                                  
                                                 
Total Anchor and Shop Tenants
                                                
Month to Month
     1       9,967       1.14 %   $ 99,670       0.38 %   $ 10.00  
2012
     3       163,101       18.72 %     3,503,885       13.15 %     21.48  
2013
     1       20,149       2.31 %     564,172       2.12 %     28.00  
2014
     1       5,081       0.58 %     193,078       0.72 %     38.00  
2016
     1       2,000       0.23 %     86,000       0.32 %     43.00  
2018
     1       3,600       0.41 %     156,600       0.59 %     43.50  
2019
     5       49,023       5.63 %     2,243,704       8.42 %     45.77  
2020
     3       16,309       1.87 %     547,183       2.05 %     33.55  
2021
     11       42,827       4.91 %     1,258,611       4.72 %     29.39  
2022
     3       17,574       2.02 %     724,794       2.72 %     41.24  
2023
     2       66,611       7.64 %     2,257,220       8.47 %     33.89  
2027
     2       66,208       7.60 %     2,557,901       9.60 %     38.63  
2030
     1       177,135       20.33 %     5,100,000       19.14 %     28.79  
2031
     4       81,492       9.35 %     2,425,022       9.10 %     29.76  
2032
     1       10,880       1.25 %     432,480       1.62 %     39.75  
2033
     1       129,405       14.85 %     3,300,000       12.38 %     25.50  
2048
     1       10,000       1.15 %     1,200,000       4.50 %     120.00  
Total
     42       871,362       100.00 %   $ 26,650,320       100.00 %   $ 30.58  
                                                 
Total Vacant
             74,227                                  
Total Square Feet
             945,589                                  
 
 
-25-
 
 
Opportunity Funds Lease Expirations
                                
 
   
No. of Leases
    
Gross Leased Area
    
Annual Base Rent
  
FUND III:
  
Expiring
    
Square Footage
    
Percent of Total
    
Amount
    
Percent of Total
    
Avg. per Sq. Ft.
  
                                     
Anchor Tenants
                                    
2013
     2       48,855       6.00 %   $ 877,689       7.83 %   $ 17.97  
2014
     2       56,379       6.92 %     908,695       8.11 %     16.12  
2015
     2       29,489       3.62 %     489,840       4.37 %     16.61  
2016
     2       45,611       5.60 %     519,580       4.64 %     11.39  
2017
     2       52,131       6.40 %     957,350       8.54 %     18.36  
2018
     3       238,707       29.29 %     2,607,355       23.27 %     10.92  
2021
     2       117,675       14.44 %     2,607,383       23.27 %     22.16  
2022
     1       65,028       7.98 %     1,040,448       9.28 %     16.00  
2025
     1       49,878       6.12 %     1,077,752       9.62 %     21.61  
2032
     1       111,131       13.64 %     120,000       1.07 %     1.08  
Total
     18       814,884       100.00 %   $ 11,206,092       100.00 %   $ 13.75  
                                                 
Total Vacant
             114,423                                  
Total Square Feet
             929,307                                  
                                                 
Shop Tenants
                                                
Month to Month
     4       6,720       1.74 %   $ 148,643       1.11 %   $ 22.12  
2012
     9       43,427       11.26 %     1,096,877       8.17 %     25.26  
2013
     14       56,092       14.54 %     1,763,813       13.13 %     31.45  
2014
     20       70,321       18.23 %     1,999,155       14.88 %     28.43  
2015
     10       31,047       8.05 %     922,082       6.86 %     29.70  
2016
     20       63,849       16.55 %     2,222,488       16.55 %     34.81  
2017
     7       29,595       7.67 %     1,309,494       9.75 %     44.25  
2018
     11       22,792       5.91 %     887,772       6.61 %     38.95  
2019
     3       13,450       3.49 %     1,042,988       7.76 %     77.55  
2020
     2       6,175       1.60 %     139,509       1.04 %     22.59  
2021
     6       18,809       4.87 %     751,012       5.59 %     39.93  
2022
     1       2,477       0.64 %     37,155       0.28 %     15.00  
2026
     2       10,352       2.68 %     342,983       2.55 %     33.13  
2027
     1       4,227       1.10 %     289,550       2.16 %     68.50  
2028
     2       6,496       1.68 %     479,352       3.57 %     73.79  
Total
     112       385,829       100.00 %   $ 13,432,873       100.00 %   $ 34.82  
                                                 
Total Vacant
             138,987                                  
Total Square Feet
             524,816                                  
                                                 
Total Anchor and Shop Tenants
                                                
Month to Month
     4       6,720       0.56 %   $ 148,643       0.60 %   $ 22.12  
2012
     9       43,427       3.62 %     1,096,877       4.45 %     25.26  
2013
     16       104,947       8.74 %     2,641,502       10.72 %     25.17  
2014
     22       126,700       10.55 %     2,907,850       11.80 %     22.95  
2015
     12       60,536       5.04 %     1,411,922       5.73 %     23.32  
2016
     22       109,460       9.12 %     2,742,068       11.13 %     25.05  
2017
     9       81,726       6.81 %     2,266,844       9.20 %     27.74  
2018
     14       261,499       21.78 %     3,495,127       14.19 %     13.37  
2019
     3       13,450       1.12 %     1,042,988       4.23 %     77.55  
2020
     2       6,175       0.51 %     139,509       0.57 %     22.59  
2021
     8       136,484       11.37 %     3,358,395       13.63 %     24.61  
2022
     2       67,505       5.62 %     1,077,603       4.37 %     15.96  
2025
     1       49,878       4.15 %     1,077,752       4.37 %     21.61  
2026
     2       10,352       0.86 %     342,983       1.39 %     33.13  
2027
     1       4,227       0.35 %     289,550       1.18 %     68.50  
2028
     2       6,496       0.54 %     479,352       1.95 %     73.79  
2032
     1       111,131       9.26 %     120,000       0.49 %     1.08  
Total
     130       1,200,713       100.00 %     24,638,965       100.00 %   $ 20.52  
                                                 
Total Vacant
             253,410                                  
Total Square Feet
             1,454,123                                  
 
 
-26-
 
 
Urban/Street Retail Developments - Operating Properties
                              
($ in millions)
                    
Acquisition & Development Costs
        
                           
Estimated
    
Estimated
    
Outstanding
  
Property
Location
  
Sq. Ft.
    
Leased (%)4
    
Anchors/Tenants
  
Incurred
    
Future
    
Total
    
Debt
  
FUND II
                                          
Fordham Place
Bronx
     262,000    
100% Retail
    
 Walgreens, Best Buy, 24 Hour Fitness, Sears
   $ 129.7     $ 6.0     $ 135.7     $ 83.9  
                   
100% Office5
                                
Pelham Manor Shopping Plaza1
Westchester
     320,000       94 %  
 BJ's Wholesale Club, PetSmart, Storage Post
     63.5       0.6       64.1       34.0  
216th Street
Manhattan
     60,000       100 %  
 NYC Human Resources Administration
     27.7       -       27.7       25.5  
Liberty Avenue1
Queens
     125,000       100 %  
 CVS, Storage Post
     15.7       0.2       15.9       9.3  
161st Street2
Bronx
     238,000       100 %  
 Various New York City and State Agencies
     66.7       4.2       70.9       28.9  
Atlantic Avenue
Brooklyn
     110,000       n/a    
 Storage Post
     22.6       -       22.6       11.5  
Canarsie Plaza3
Brooklyn
     274,000       98 %6  
 BJ's Wholesale Club, Planet Fitness, PetSmart
     90.9       1.1       92.0       56.5  
SUBTOTAL - FUND II, OPERATING
       1,389,000     97% Retail7
100% Office7
         $ 416.8     $ 12.1     $ 428.9     $ 249.6  
                                                       
FUND III
                                                      
125 Main Street
Westport, CT
     27,000       89 %  
 Gap, Brooks Brothers For Women
   $ 24.9     $ 0.6     $ 25.5     $ 12.5  
 
Notes:
  
1 Acquired a leasehold interest in this property.
2 Redevelopment currently in progress.
3 Incurred cost is net of lease termination income of $23.9 million from former anchor tenant.
4 Excludes the self-storage facilities at Pelham Manor Shopping Plaza, Liberty Avenue, and Atlantic Avenue.
5As of quarter end, the Fordham Place office component was 79% leased. In April 2012, executed a lease that increased the leased rate to 100%.
6As of quarter end, Canarsie Plaza was 94% leased. In April 2012, executed a lease that increased the leased rate to 98%.
7As of quarter end, Fund II's operating retail component was 96% leased and the operating office component was 93% leased. See footnote #5 and #6.
Reconciliation of total incurred development costs to the Balance Sheet:
 
By Balance Sheet Line Item:
      
Operating Real Estate
   $ 497.1  
Net Real Estate Under Development
     224.9  
Gain From Bargain Purchase (CityPoint)
     (33.8 )
Lease Termination Income (Canarsie Plaza)
     (23.9 )
Total Incurred Development Costs
   $ 664.3  
By Project Status:
        
Operating Properties
   $ 441.7  
Under Construction
     112.7  
In Design
     109.9  
Total Incurred Development Costs
   $ 664.3  
 
 
-27-
 
 
Urban/Street Retail Developments - Construction & Design
                        
($ in millions)
                                        
                                         
                                         
                   
Acquisition & Development Costs
        
   
Estimated
                    
Estimated
    
Estimated
    
Outstanding
  
Property
Location
Completion
  
Sq. Ft.
  
Leased (%)
  
Anchors/Tenants
  
Incurred
    
Future
    
Total
    
Debt
  
FUND II
                                        
Under Construction
                                        
 
Brooklyn
 TBD
   685,000-710,000   -  
 TBD
   $ 112.7     $ 137.3-$ 227.3     $ 250.0-$ 340.0     $ 40.7  
In Design
                                                
Sherman Plaza
Manhattan
 TBD
  
TBD
   -  
 TBD
   $ 34.4    
TBD
    
TBD
     $ -  
                                                 
                                                 
FUND III
                                                
In Design
                                                
Sheepshead Bay
Brooklyn
 TBD
  
TBD
   -  
 TBD
   $ 22.8    
TBD
    
TBD
     $ -  
Lincoln Road Portfolio2
Miami Beach, FL
 TBD
   61,443   42 %
 Starbucks, Geox, Sushi Samba
     52.7    
TBD
    
TBD
       20.2  
SUBTOTAL - Fund III, In Design
               $ 75.5    
TBD
    
TBD
     $ 20.2  
 
Notes:
  
1 Acquired a leasehold interest in this property. The first 50,000 square feet of the project (Phase 1) is under construction.
  Construction of the next approximately 625,000 square feet (Phase 2) is anticipated to start during 2012.
2 Data reflects the status of the portfolio as of 3/31/12; certain properties are in the design phase pending redevelopment.
 
 
-28-
 
 
Retailer Controlled Property ("RCP") Venture - Overview
*** Note - The RCP Venture is not a separate AKR Fund, rather it is a venture
in which AKR, Funds I and II have invested approximately $62 million in equity. ***
     
Item
  
Description
Date formed
  
August 2004
     
Partnership structure
    
Equity Contribution:
  
Up to $300 million of total equity
     
   
Up to 20% ($60 million) - AKR Fund I ($20 million) and Fund II ($40 million)
     
   
80% - Klaff Realty LP and Lubert-Adler
     
Cash flow distribution:
  
20% - AKR Funds
   
80% - Four institutional investors
     
Promote:
  
20% to Klaff once all partners (including Klaff) have received 10% preferred return and return
   
of equity (50% of first $40 million of AKR Fund equity is not subject to this promote)
     
   
Remaining 80% is distributed to all the partners (including Klaff)
 
 
RCP Venture - Investments
  
                           
The following table summarizes the RCP Venture investments from inception through March 31, 2012
  
                           
       
Years
  
Invested
          
Equity
  
Investor
  
Investment
  
acquired
  
capital
    
Distributions
  
Multiple
  
                           
Mervyns I and Mervyns II
  
Mervyns
  
2004 through
   $ 32,575     $ 49,524       1.5 x
       
2007
                        
Mervyns II
  
Albertson’s
  
2006 through
     23,133       84,055       3.6 x
       
2007
                        
Fund II and Mervyns II
  
Other investments 1
  
2006 through
     6,476       5,361       0.8 x
       
2008
                        
Total
           $ 62,184     $ 138,940       2.2 x
 
Notes:
  
1Represents investments in Shopko, Marsh and Rex Stores.
 
 
-29-
 
 
 Storage Portfolio Property Detail              
                   
                   
                   
 
Operating Properties
 Location
  
Net Rentable Square Feet
  
Quarter ended:
  
Occupancy
  
                   
 
Fund III
        
March 31, 2012
     88.3 %
 
Suffern
Suffern, New York
   78,825            
 
Yonkers
Westchester, New York
   100,697            
 
Jersey City
Jersey City, New Jersey
   76,920  
December 31, 2011
     87.0 %
 
Webster Ave
Bronx, New York
   36,271            
 
Linden
Linden, New Jersey
   84,035            
 
Bruckner Blvd
Bronx, New York
   89,422  
September 30, 2011
     87.2 %
 
New Rochelle
Westchester, New York
   42,155            
 
Lawrence
Lawrence, New York
   97,743            
 
Long Island City
Queens, New York
   134,193  
June 30, 2011
     85.6 %
 
Fordham Road
Bronx, New York
   85,155            
 
Ridgewood
Queens, New York
   87,645            
           
March 31, 2011
     78.7 %
 
Fund II
                  
 
Liberty Avenue
Queens, New York
   72,900            
 
Pelham Plaza
Pelham Manor, New York
   62,220            
 
Atlantic Avenue
Brooklyn, New York
   75,886            
 
Total
     1,124,067            
                     
 
 
-30-
 
 
Core Portfolio Retail Properties - Detail
                                                          
                                                             
     
Acadia's
    
Gross Leaseable Area
  
Occupancy
    
Annualized Base Rent
  
Property
Anchors
  
interest
    
Anchors
  
Shops
  
Total
  
Anchors
  
Shops
  
Total
    
Anchors
  
Shops
  
Total
  
Anchors
  
Shops
  
Per Sq. Ft.
  
                                                             
NEW YORK
                                                            
                                                             
Connecticut
                                                            
239 Greenwich Avenue1
 -   75.0 %   -   16,834   16,834   -   100.00 % 100.00 %   $ -   $ 1,554,663   $ 1,554,663   $ -   $ 92.35   $ 92.35  
                                                                         
New Jersey
                                                                        
Elmwood Park Shopping Center
Walgreens, Pathmark (A&P)
   100.0 %   62,610   86,652   149,262   100.00 % 80.31 % 88.57 %     1,486,006     1,769,859     3,255,865     23.73     25.43     24.63  
A & P Shopping Plaza
A&P
   60.0 %   49,463   13,278   62,741   100.00 % 100.00 % 100.00 %     950,000     387,681     1,337,681     19.21     29.20     21.32  
Total - New Jersey
           112,073   99,930   212,003   100.00 % 82.93 % 91.95 %     2,436,006     2,157,540     4,593,546     21.74     26.04     23.56  
                                                                         
New York
                                                                        
Village Commons Shopping Center
 -   100.0 %   -   87,330   87,330   -   91.32 % 91.32 %     -     2,429,281     2,429,281     -     30.46     30.46  
Branch Plaza
CVS
   100.0 %   74,050   52,162   126,212   14.92 % 92.69 % 47.06 %     251,388     1,387,582     1,638,970     22.75     28.70     27.59  
Amboy Center
Stop & Shop
   100.0 %   37,266   22,824   60,090   100.00 % 100.00 % 100.00 %     745,320     880,032     1,625,352     20.00     38.56     27.05  
Bartow Avenue
 -   100.0 %   -   14,676   14,676   -   89.49 % 89.49 %     -     439,246     439,246     -     33.43     33.43  
Pacesetter Park Shopping Center
Stop & Shop
   100.0 %   52,052   45,512   97,564   100.00 % 66.62 % 84.43 %     416,936     605,052     1,021,988     8.01     19.96     12.41  
LA Fitness
LA Fitness
   100.0 %   55,000   -   55,000   100.00 % -   100.00 %     1,265,000     -     1,265,000     23.00     -     23.00  
West 54th Street
 -   100.0 %   -   9,756   9,756   -   95.38 % 95.38 %     -     2,424,795     2,424,795     -     260.58     260.58  
East 17th Street
Barnes & Noble
   100.0 %   19,622   -   19,622   100.00 % -   100.00 %     625,000     -     625,000     31.85     -     31.85  
Crossroads Shopping Center3
Kmart, Home Goods
   49.0 %   201,296   108,191   309,487   81.02 % 84.95 % 82.39 %     1,693,853     3,981,014     5,674,867     10.39     43.32     22.25  
Third Avenue
Planet Fitness
   100.0 %   21,650   17,717   39,367   100.00 % 58.23 % 81.20 %     468,631     198,000     666,631     21.65     19.19     20.85  
Mercer Street
 -   100.0 %   -   6,225   6,225   -   100.00 % 100.00 %     -     383,160     383,160     -     61.55     61.55  
4401 White Plains Road
Walgreen's
   100.0 %   -   12,964   12,964   -   100.00 % 100.00 %     -     625,000     625,000     -     48.21     48.21  
Total - New York
           460,936   377,357   838,293   78.04 % 86.15 % 81.69 %     5,466,128     13,353,162     18,819,290     15.20     41.07     27.48  
                                                                         
Total New York
           573,009   494,121   1,067,130   82.34 % 85.97 % 84.02 %   $ 7,902,134   $ 17,065,365   $ 24,967,499   $ 16.75   $ 40.17   $ 27.85  
                                                                         
                                                                         
NEW ENGLAND
                                                                        
                                                                         
Connecticut
                                                                        
Town Line Plaza2
Wal-Mart, Stop & Shop
   100.0 %   163,159   43,187   206,346   100.00 % 95.30 % 99.02 %   $ 969,144   $ 708,529   $ 1,677,673   $ 14.72   $ 17.22   $ 15.68  
                                                                         
Massachusetts
                                                                        
Methuen Shopping Center
Wal-Mart, Market Basket
   100.0 %   120,004   10,017   130,021   100.00 % 100.00 % 100.00 %     799,145     222,225     1,021,370     6.66     22.18     7.86  
Crescent Plaza
Home Depot, Shaw's (Supervalu)
   100.0 %   156,985   61,152   218,137   100.00 % 66.69 % 90.66 %     1,178,872     397,671     1,576,543     7.51     9.75     7.97  
Cambridge
Whole Foods, Rite Aid
   100.0 %   54,226   -   54,226   100.00 % -   100.00 %     1,130,470     -     1,130,470     20.85     -     20.85  
Total - Massachusetts
           331,215   71,169   402,384   100.00 % 71.38 % 94.94 %     3,108,487     619,896     3,728,383     9.39     12.20     9.76  
                                                                         
New York
                                                                        
New Loudon Center
Marshalls, Price Chopper,
   100.0 %   251,058   4,615   255,673   100.00 % 100.00 % 100.00 %     1,828,706     130,418     1,959,124     7.28     28.26     7.66  
 
Raymour & Flanigan
                                                                      
Rhode Island
                                                                        
Walnut Hill Plaza
Sears, Shaw's (Supervalu), CVS
   100.0 %   196,710   88,007   284,717   95.53 % 76.14 % 89.54 %     1,263,777     852,773     2,116,550     6.73     12.73     8.30  
                                                                         
Vermont
                                                                        
The Gateway Shopping Center
Shaw's (Supervalu)
   100.0 %   73,184   28,471   101,655   100.00 % 80.86 % 94.64 %     1,353,904     448,533     1,802,437     18.50     19.48     18.74  
                                                                         
Total New England
           1,015,326   235,449   1,250,775   99.13 % 79.25 % 95.39 %   $ 8,524,018   $ 2,760,149   $ 11,284,167   $ 9.37   $ 14.79   $ 10.30  
 
Notes:
  
General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced.
1239 Greenwich Avenue contains 16,834 square feet of retail GLA and 21 residential units encompassing 14,434 square feet. Residential activities are not included above.
2Anchor GLA includes a 97,300 square foot Wal-Mart store which is not owned by the Company. This square footage has been excluded for calculating annualized
 base rent per square foot.
3The Company has a 49% interest in this unconsolidated investment.
 
 
-31-
 
 
Core Portfolio Retail Properties - Detail (continued)
                                                      
                                                             
     
Acadia's
  
Gross Leaseable Area
  
Occupancy
    
Annualized Base Rent
  
Property
Anchors
  
interest
  
Anchors
  
Shops
  
Total
  
Anchors
    
Shops
  
Total
    
Anchors
  
Shops
  
Total
  
Anchors
  
Shops
  
Per Sq. Ft.
  
                                                             
MIDWEST
                                                            
                                                             
Illinois
                                                            
Hobson West Plaza
Garden Fresh Markets
   100.0 % 51,692   47,445   99,137   100.00 %   91.99 % 96.17 %   $ 225,436   $ 887,331   $ 1,112,767   $ 4.36   $ 20.33   $ 11.67  
Clark Diversey
The Vitamin Shoppe
   100.0 % -   19,265   19,265   0.00 %   95.72 % 95.72 %     -     815,956     815,956     -     44.25     44.25  
West Diversey
Trader Joe's, Urban Outfitters
   100.0 % 16,500   29,759   46,259   100.00 %   100.00 % 100.00 %     900,000     984,925     1,884,925     54.55     33.10     40.75  
Chicago Street Retail Portfolio1
 -   100.0 % -   72,763   72,763   -     100.00 % 100.00 %     -     2,812,239     2,812,239     -     38.65     38.65  
Total - Illinois
         68,192   169,232   237,424   100.00 %   97.27 % 98.05 %     1,125,436     5,500,451     6,625,887     16.50     33.42     28.46  
                                                                         
Indiana
                                                                        
Merrillville Plaza
JC Penney, Office Max,
   100.0 % 123,369   112,455   235,824   100.00 %   82.17 % 91.50 %     1,251,160     1,619,762     2,870,922     10.14     17.53     13.31  
 
TJ Maxx
                                                                      
Michigan
                                                                        
Bloomfield Towne Square2
Best Buy, Home Goods,
   100.0 % 165,985   70,433   236,418   63.28 %   83.87 % 69.41 %     987,559     1,289,633     2,277,192     9.40     21.83     13.88  
 
TJ Maxx
                                                                      
Ohio
                                                                        
Mad River Station3
Babies 'R' Us, Office Depot,
   100.0 % 58,185   67,944   126,129   100.00 %   65.65 % 81.50 %     552,195     718,132     1,270,327     9.49     16.10     12.36  
                                                                         
Total Midwest
         415,731   420,064   835,795   85.34 %   85.87 % 85.60 %   $ 3,916,350   $ 9,127,978   $ 13,044,328   $ 11.04   $ 25.31   $ 18.23  
                                                                         
MID-ATLANTIC
`
                                                                      
                                                                         
New Jersey
                                                                        
Marketplace of Absecon
Rite Aid, Dollar Tree
   100.0 % 47,915   56,847   104,762   56.74 %   84.10 % 71.59 %   $ 539,040   $ 692,791   $ 1,231,831   $ 19.83   $ 14.49   $ 16.43  
                                                                         
Delaware
                                                                        
Brandywine Town Center7
Lowes, Bed Bath & Beyond,
   22.2 % 831,207   43,782   874,989   96.99 %   91.32 % 96.71 %     12,261,549     601,304     12,862,853     15.21     15.04     15.20  
 
Target,
Dicks Sporting Goods
                                                                      
Market Square Shopping Center7
TJ Maxx, Trader Joe's
   22.2 % 42,850   59,197   102,047   100.00 %   96.94 % 98.22 %     703,062     1,768,862     2,471,924     16.41     30.82     24.66  
Naamans Road7
 -   22.2 % -   19,984   19,984   0.00 %   54.90 % 54.90 %     -     558,340     558,340     -     50.89     50.89  
Total - Delaware
         874,057   122,963   997,020   97.14 %   88.11 % 96.03 %     12,964,611     2,928,506     15,893,117     15.27     27.03     16.60  
                                                                         
Pennsylvania
                                                                        
Mark Plaza
Kmart
   100.0 % 104,956   1,900   106,856   100.00 %   100.00 % 100.00 %     204,664     36,000     240,664     1.95     18.95     2.25  
Plaza 422
Home Depot, Dunham's
   100.0 % 139,968   16,311   156,279   100.00 %   100.00 % 100.00 %     643,503     152,349     795,852     4.60     9.34     5.09  
Route 6 Plaza
Kmart, Rite Aid
   100.0 % 146,498   29,021   175,519   100.00 %   100.00 % 100.00 %     806,351     373,489     1,179,840     5.50     12.87     6.72  
Chestnut Hill4
     100.0 % -   37,916   37,916   0.00 %   33.63 % 33.63 %     -     357,143     357,143     -     28.01     28.01  
Abington Towne Center5
Target, TJ Maxx
   100.0 % 184,616   31,753   216,369   100.00 %   94.75 % 99.23 %     283,500     839,702     1,123,202     10.50     27.91     19.68  
Total - Pennsylvania
         576,038   116,901   692,939   100.00 %   77.05 % 96.13 %     1,938,018     1,758,683     3,696,701     4.63     19.53     7.27  
                                                                         
District of Columbia
                                                                        
Georgetown Portfolio6
 -   50.0 % -   27,666   27,666   -     96.39 % 96.39 %   $ -   $ 1,665,917   $ 1,665,917   $ -   $ 62.47   $ 62.47  
                                                                         
Total Mid-Atlantic
         1,498,010   324,377   1,822,387   96.95 %   84.13 % 94.66 %   $ 15,441,669   $ 7,045,897   $ 22,487,566   $ 11.93   $ 25.82   $ 14.35  
                                                                         
TOTAL CORE PROPERTIES
         3,502,076   1,474,011   4,976,087   93.81 %   84.46 % 91.04 %   $ 35,784,171   $ 35,999,389   $ 71,783,560   $ 11.81   $ 28.92   $ 16.79  
                                                                         
TOTAL CORE PROPERTIES - weighted based on ownership interest8
   2,699,788   1,299,840   3,999,629   93.42 %   83.93 % 90.33 %   $ 24,456,431   $ 30,314,583   $ 54,771,015   $ 9.70   $ 27.79   $ 15.16  
 
Notes:
  
General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced.
1Includes eleven properties (56 E. Walton, 841 W. Armitage, 2731 N. Clark, 2140 N. Clybourn, 853 W. Armitage and 2299 N. Clybourn, 1521 Milwaukee, 843-45 W. Armitage, 1521 W. Belmont, 2206-08 N. Halsted, 2633 N. Halsted)
2Re-anchoring activities at this property commenced during the second quarter 2011 and are expected to be completed by the second half of 2012.
3The GLA for this property excludes 29,857 square feet of office space.
4This consists of two separate buildings.
5Anchor GLA includes a 157,616 square foot Target store which is not owned by the Company. This square footage has been excluded for calculating annualized
 base rent per square foot.
6Includes six properties (1533 Wisconsin Ave., 3025 M St., 3034 M St., 3146 M St., 3259-61 M St. and 2809 M St.) The Company has a 50% interest in this unconsolidated portfolio.
7The Company has a 22.2% interest in this unconsolidated investment.
8Weighted based on Acadia's ownership interest in the properties.
   
 
 
-32-
 
 
Core Portfolio Retail Properties by State - Summary
                                                    
                                                                           
                                       
 
                                  
                     
Gross Leasable Area
    
Occupancy
    
Annualized Base Rent
  
   
Ownership
    
Percent of
     Number of                                                          
State
  
%
    
base rent1
    
properties
    
Anchors 2
    
Shops
    
Total
    
Anchors
    
Shops
    
Total
      
Anchors
    
Shops
    
Total
  
                                                                           
                                                                           
Connecticut
     88.0 %     5.2 %     2       163,159       60,021       223,180       100.00 %     96.62 %     99.09 %     $ 969,144     $ 2,263,192     $ 3,232,336  
                                                                                                   
Delaware
     22.2 %     6.4 %     3       874,057       122,963       997,020       97.14 %     88.11 %     96.03 %       12,964,611       2,928,506       15,893,117  
                                                                                                   
District of Columbia
     50.0 %     1.5 %     6       -       27,666       27,666       0.00 %     96.39 %     96.39 %       -       1,665,917       1,665,917  
                                                                                                   
Illinois
     100.0 %     12.1 %     14       68,192       169,232       237,424       100.00 %     97.27 %     98.05 %       1,125,436       5,500,451       6,625,887  
                                                                                                   
Indiana
     100.0 %     5.2 %     1       123,369       112,455       235,824       100.00 %     82.17 %     91.50 %       1,251,160       1,619,762       2,870,922  
                                                                                                   
Massachusetts
     100.0 %     6.8 %     3       331,215       71,169       402,384       100.00 %     71.38 %     94.94 %       3,108,487       619,896       3,728,383  
                                                                                                   
Michigan
     100.0 %     4.2 %     1       165,985       70,433       236,418       63.28 %     83.87 %     69.41 %       987,559       1,289,633       2,277,192  
                                                                                                   
New Jersey
     88.4 %     9.7 %     3       159,988       156,777       316,765       87.04 %     83.35 %     85.22 %       2,975,046       2,850,331       5,825,377  
                                                                                                   
New York
     84.6 %     32.7 %     13       711,994       381,972       1,093,966       85.79 %     86.32 %     85.97 %       7,294,834       13,483,580       20,778,414  
                                                                                                   
Ohio
     100.0 %     2.3 %     1       58,185       67,944       126,129       100.00 %     65.65 %     81.50 %       552,195       718,132       1,270,327  
                                                                                                   
Pennsylvania
     100.0 %     6.7 %     5       576,038       116,901       692,939       100.00 %     77.05 %     96.13 %       1,938,018       1,758,683       3,696,701  
                                                                                                   
Rhode Island
     100.0 %     3.9 %     1       196,710       88,007       284,717       95.53 %     76.14 %     89.54 %       1,263,777       852,773       2,116,550  
                                                                                                   
Vermont
     100.0 %     3.3 %     1       73,184       28,471       101,655       100.00 %     80.86 %     94.64 %       1,353,904       448,533       1,802,437  
                                                                                                   
Total - Core Portfolio
       100.0 %     54       3,502,076       1,474,011       4,976,087       93.81 %     84.46 %     91.04 %     $ 35,784,171     $ 35,999,389     $ 71,783,560  
 
 Notes:
 
General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced.
1 The Company's pro-rata share of base rent from joint venture properties has been included for the purpose of calculating percentage of base rent by state.
2 Anchor GLA includes a total of 254,916 square feet which is not owned by the Company. This square footage has been excluded for calculating annualized base rent per square foot.
 
 
-33-
 
 
Core Portfolio Top Tenants - Ranked by Annual Base Rent (ABR)
                                            
                                                                   
          
Gross
    
Pro-Rata
  
   
Number of stores
    
Wholly Owned
    
Joint Ventures1
    
Combined
    
Combined
  
Percentage of Total
  
   
in combined
                                                
Percentage of
      
Tenant
  
portfolio
    
GLA
    
Base Rent
    
GLA
    
Base Rent
    
GLA
    
Base Rent
    
GLA
  
Base Rent
  
Portfolio GLA
  
Base Rent
  
                                                             
Supervalu (Shaws)
     3       175,801     $ 2,420,980       -     $ -       175,801     $ 2,420,980       175,801   $ 2,420,980     4.4 %   4.4 %
                                                                                   
Ahold (Stop and Shop)
     3       155,177       2,131,400       -       -       155,177       2,131,400       155,177     2,131,400     3.9 %   3.9 %
                                                                                   
A&P
     2       97,236       2,001,006       -       -       97,236       2,001,006       77,451     1,621,006     1.9 %   3.0 %
                                                                                   
TJX Companies
     7       165,058       1,278,154       56,108       951,655       221,166       2,229,809       184,202     1,616,339     4.6 %   3.0 %
  -- T.J. Maxx
     4       88,200       773,100       31,175       428,062       119,375       1,201,162       95,127     854,724     2.4 %   1.6 %
  -- Marshalls
     1       37,212       158,151       -       -       37,212       158,151       37,212     158,151     0.9 %   0.3 %
  -- Homegoods
     2       39,646       346,903       24,933       523,593       64,579       870,496       51,863     603,464     1.3 %   1.1 %
                                                                                   
Sears
     4       285,314       1,150,615       100,725       566,250       386,039       1,716,865       334,669     1,428,078     8.4 %   2.6 %
  -- Kmart
     3       224,614       892,615       100,725       566,250       325,339       1,458,865       273,969     1,170,078     6.8 %   2.1 %
  -- Sears
     1       60,700       258,000       -       -       60,700       258,000       60,700     258,000     1.5 %   0.5 %
                                                                                   
Walgreens
     3       37,499       1,366,748       -       -       37,499       1,366,748       37,499     1,366,748     0.9 %   2.5 %
                                                                                   
Home Depot
     2       211,003       1,099,996       -       -       211,003       1,099,996       211,003     1,099,996     5.3 %   2.0 %
                                                                                   
Trader Joe's
     2       16,500       900,000       11,675       275,000       28,175       1,175,000       19,094     961,105     0.5 %   1.8 %
                                                                                   
Barnes & Noble
     2       19,622       625,000       12,430       397,760       32,052       1,022,760       25,713     819,902     0.6 %   1.5 %
                                                                                   
Sleepy's
     4       32,619       789,858       -       -       32,619       789,858       32,619     789,858     0.8 %   1.4 %
                                                                                   
Rite Aid
     2       26,633       764,030       -       -       26,633       764,030       26,633     764,030     0.7 %   1.4 %
Pier 1 Imports
     3       19,255       462,466       8,818       348,576       28,073       811,042       23,576     633,268     0.6 %   1.2 %
Dollar Tree
     6       55,000       558,727       -       -       55,000       558,727       55,000     558,727     1.4 %   1.0 %
JP Morgan Chase Bank
     4       16,242       452,043       3,745       325,000       19,987       777,043       17,177     558,145     0.4 %   1.0 %
Payless Shoesource
     6       18,236       465,232       3,090       114,330       21,326       579,562       19,750     521,254     0.5 %   1.0 %
The Avenue
     4       17,236       342,869       8,250       327,360       25,486       670,229       21,279     503,275     0.5 %   0.9 %
Coach
     2       4,541       388,573       6,810       346,000       11,351       734,573       6,811     464,430     0.2 %   0.8 %
Drexel Heritage
     2       13,315       352,848       21,827       471,245       35,142       824,093       18,161     457,559     0.5 %   0.8 %
Citibank
     3       5,486       263,328       8,470       444,872       13,956       708,200       8,283     417,306     0.2 %   0.8 %
CVS
     2       25,500       356,583       -       -       25,500       356,583       34,300     356,583     0.9 %   0.7 %
                                                                                   
TOTAL
     66       1,397,273     $ 18,170,456       241,948     $ 4,568,048       1,639,221     $ 22,738,504       1,484,197   $ 19,489,989     37.1 %   35.6 %
 
 Notes:  
1Represents the Company's unconsolidated joint ventures.
 
 
-34-
 
 
Core Portfolio Lease Expirations
                                
                         
         
Gross Leased Area
    
Annual Base Rent
  
   
No. of Leases
    
Square
    
Percent
          
Percent
    
Avg. Per
  
   
Expiring
    
Footage
    
of Total
    
Amount
    
of Total
    
Sq. Ft.
  
                                     
Anchor Tenants
                                    
2012
     3       114,347       3.77 %   $ 1,140,156       3.19 %   $ 9.97  
2013
     10       362,666       11.97 %     4,411,637       12.33 %     12.16  
2014
     7       258,558       8.53 %     2,183,597       6.10 %     8.45  
2015
     6       274,639       9.06 %     3,800,856       10.62 %     13.84  
2016
     7       262,966       8.68 %     2,500,644       6.99 %     9.51  
2017
     5       260,114       8.58 %     3,227,369       9.02 %     12.41  
2018
     4       330,649       10.91 %     3,764,816       10.52 %     11.39  
2019
     6       136,521       4.50 %     1,137,580       3.18 %     8.33  
2020
     5       233,350       7.70 %     2,321,096       6.49 %     9.95  
2021
     8       313,737       10.35 %     3,696,615       10.33 %     11.78  
2022
     2       69,837       2.30 %     1,700,000       4.75 %     24.34  
2024
     3       188,506       6.22 %     3,273,049       9.15 %     17.36  
2027
     1       21,650       0.71 %     468,631       1.31 %     21.65  
2028
     5       202,935       6.70 %     2,158,125       6.03 %     10.63  
Total
     72       3,030,475       100.00 %   $ 35,784,171       100.00 %   $ 11.81  
                                                 
Anchor GLA Owned by Tenants
       254,916      
Total Vacant
             216,685      
Total Square Feet
             3,502,076      
                     
                                                 
                                                 
Shop Tenants
                                                
Month to month
     4       14,965       1.20 %   $ 357,301       0.99 %   $ 23.88  
2012
     36       101,827       8.18 %     2,949,692       8.19 %     28.97  
2013
     52       158,500       12.73 %     4,602,624       12.79 %     29.04  
2014
     58       228,848       18.38 %     6,757,385       18.77 %     29.53  
2015
     33       155,202       12.47 %     2,943,745       8.18 %     18.97  
2016
     46       222,233       17.85 %     5,050,869       14.03 %     22.73  
2017
     20       84,243       6.77 %     3,725,144       10.35 %     44.22  
2018
     21       69,188       5.56 %     3,072,498       8.53 %     44.41  
2019
     15       32,887       2.64 %     1,046,500       2.91 %     31.82  
2020
     11       25,595       2.06 %     731,112       2.03 %     28.56  
2021
     17       81,922       6.58 %     2,162,215       6.01 %     26.39  
2022
     8       36,398       2.92 %     1,133,459       3.15 %     31.14  
2023
     2       7,362       0.59 %     129,298       0.36 %     17.56  
2025
     1       3,120       0.25 %     29,047       0.08 %     9.31  
2027
     1       5,975       0.48 %     358,500       1.00 %     60.00  
2030
     1       3,745       0.30 %     325,000       0.90 %     86.78  
2060
     1       12,964       1.04 %     625,000       1.74 %     48.21  
Total
     327       1,244,974       100.00 %   $ 35,999,389       100.00 %   $ 28.92  
                                                 
Total Vacant
             229,037      
Total Square Feet
             1,474,011                                  
                     
 
 
-35-
 
 
Core Portfolio Lease Expirations
                                
                                     
         
Gross Leased Area
    
Annual Base Rent
  
   
No. of Leases
    
Square
    
Percent
          
Percent
    
Avg. Per
  
   
Expiring
    
Footage
    
of Total
    
Amount
    
of Total
    
Sq. Ft.
  
                                     
Total Anchor and
                                    
Shop Tenants
                                    
Month to month
     4       14,965       0.35 %   $ 357,301       0.50 %   $ 23.88  
2012
     39       216,174       5.06 %     4,089,848       5.70 %     18.92  
2013
     62       521,166       12.19 %     9,014,261       12.56 %     17.30  
2014
     65       487,406       11.40 %     8,940,982       12.46 %     18.34  
2015
     39       429,841       10.05 %     6,744,601       9.40 %     15.69  
2016
     53       485,199       11.35 %     7,551,513       10.52 %     15.56  
2017
     25       344,357       8.05 %     6,952,513       9.69 %     20.19  
2018
     25       399,837       9.35 %     6,837,314       9.52 %     17.10  
2019
     21       169,408       3.96 %     2,184,080       3.04 %     12.89  
2020
     16       258,945       6.06 %     3,052,208       4.25 %     11.79  
2021
     25       395,659       9.25 %     5,858,830       8.16 %     14.81  
2022
     10       106,235       2.48 %     2,833,459       3.95 %     26.67  
2023
     2       7,362       0.17 %     129,298       0.18 %     17.56  
2024
     3       188,506       4.41 %     3,273,049       4.56 %     17.36  
2025
     1       3,120       0.07 %     29,047       0.04 %     9.31  
2027
     2       27,625       0.65 %     827,131       1.15 %     29.94  
2028
     5       202,935       4.75 %     2,158,125       3.01 %     10.63  
2030
     1       3,745       0.09 %     325,000       0.45 %     86.78  
2060
     1       12,964       0.30 %     625,000       0.87 %     48.21  
Total
     399       4,275,449       100.00 %   $ 71,783,560       100.00 %   $ 16.79  
                                                 
Anchor GLA Owned by Tenants
       254,916      
Total Vacant
             445,722                                  
Total Square Feet
             4,976,087      
                     
 
 
-36-
 
 
Core Portfolio - New and Renewal Rent Spreads 1
  
Based on Lease Execution Dates
            
             
             
   
3 months ended
  
   
March 31, 2012
  
   
Cash2
    
GAAP3
  
New leases
            
Number of new leases executed
     2       2  
GLA
     4,724       4,724  
New base rent
   $ 26.91     $ 29.70  
Previous base rent (and percentage rent)
   $ 19.07     $ 19.07  
Percentage growth in base rent
     41.1 %     55.7 %
Average cost per square foot
   $ 55.45     $ 55.45  
Weighted Average Lease Term (years)
     8.5       8.5  
                 
Renewal leases
                
Number of renewal leases executed
     13       13  
GLA
     98,494       98,494  
New base rent
   $ 13.58     $ 14.43  
Expiring base rent (and percentage rent)
   $ 13.40     $ 12.71  
Percentage growth in base rent
     1.3 %     13.5 %
Average cost per square foot
   $ 0.00     $ 0.00  
Weighted Average Lease Term (years)
     4.1       4.1  
                 
Total new and renewal Leases
                
Number of new and renewal leases executed
     15       15  
GLA commencing
     103,218       103,218  
New base rent
   $ 14.19     $ 15.13  
Expiring base rent (and percentage rent)
   $ 13.66     $ 13.00  
Percentage growth in base rent
     3.9 %      16.4 %
Average cost per square foot
   $ 2.54     $ 2.54  
Weighted Average Lease Term (years)
     4.3       4.3  
 
Notes:  
1Does not include leased square footage and costs related to first generation space and the Company's major redevelopment  projects; renewal leases include exercised options.
2Rents have not been calculated on a straight line basis. Previous/expiring rent is that as of time of expiration and includes any  percentage rent paid as well. New rent is that which is paid at commencement.
3Rents are calculated on a straight line basis.
 
 
-37-
 
 
Core Portfolio Capital Expenditures
        
Current Quarter
            
             
             
   
Current Quarter
        
   
3 months ended
    
Prior Year ended
  
   
March 31, 2012
    
December 31, 2011
  
             
             
Leasing Commissions
   $ 306     $ 1,265  
Tenant Improvements
     1,583       5,823  
Capital Expenditures
     64       471  
Total capital expenditures
     1,953       7,559  
                 
Re-anchoring costs1
     3,638       1,578  
Total
   $ 5,591     $ 9,137  
 
Notes:  
1 Represents costs associated with the Bloomfield Town Square and The Branch Plaza re-anchorings as discussed by the Company.
 
 
-38-
 
 
Property Demographics - Core
                                                                      
                         
3-Mile Radius2
    
5-Mile Radius2
  
       
Trade Area
    
Base
    
Total
    
Total
     #    
Median HH
    
Avg. HH
    
Total
     #    
Median HH
    
Avg. HH
  
Property
City
State
  
(Miles)
    
Rent
    
GLA
    
Pop.
    
HH
    
Income
    
Income
    
Pop.
    
HH
    
Income
    
Income
  
Core
                                                                          
239 Greenwich Avenue
Greenwich
CT
     5     $ 1,554,663       16,834       64,308       23,814       125,719       162,508       135,320       48,542       122,962       156,902  
Elmwood Park Shopping Center
Elmwood Park
NJ
     3       3,255,865       149,262       248,932       81,257       60,826       69,326       586,661       200,354       67,746       78,008  
A & P Shopping Plaza
Boonton
NJ
     5       1,337,681       62,741       46,107       17,845       104,048       129,404       99,937       37,448       101,964       122,465  
Village Commons Shopping Center
Smithtown
NY
     3       2,429,281       87,330       63,231       21,079       102,376       124,093       173,029       56,356       98,040       119,322  
The Branch Plaza
Smithtown
NY
     3       1,638,970       126,212       64,812       21,738       103,946       126,961       191,293       61,590       94,383       113,936  
Amboy Road
Staten Island
NY
     3       1,625,352       60,090       97,141       33,846       82,727       86,666       162,143       57,055       79,869       84,373  
Bartow Avenue5
The Bronx
NY
     2       439,246       14,676       273,331       99,165       49,510       59,160       575,057       206,470       47,306       57,042  
Pacesetter Park Shopping Center
Pomona
NY
     3       1,021,988       97,564       19,646       6,760       101,782       120,862       99,896       29,978       87,372       107,422  
LA Fitness5
Staten Island
NY
     3       1,265,000       55,000       35,839       12,953       67,765       72,134       128,706       44,479       74,225       77,867  
West 54th Street2
Manhattan
NY
     1       2,424,795       9,756       42,128       25,011       91,410       155,737       160,333       90,051       93,753       164,270  
East 17th Street2
Manhattan
NY
     1       625,000       19,622       70,157       39,495       92,939       175,048       261,569       143,187       79,749       138,454  
Crossroads Shopping Center
White Plains
NY
     3       5,674,867       309,487       107,610       40,014       99,898       116,168       213,143       77,239       117,243       135,295  
Third Avenue2
Yonkers
NY
     1       666,631       39,367       45,117       14,987       22,294       32,027       154,302       51,557       23,429       33,081  
Mercer Street2
New York
NY
     1       383,160       6,225       48,262       20,078       76,510       134,753       209,871       90,080       70,637       119,525  
4401 White Plains Road4
White Plains
NY
     1       625,000       12,964       93,714       33,031       49,930       62,634       574,653       207,078       52,382       62,813  
Town Line Plaza
Rocky Hill
CT
     3       1,677,673       206,346       45,422       18,687       75,874       82,339       150,566       58,641       66,002       73,788  
Methuen Shopping Center
Methuen
MA
     5       1,021,370       130,021       91,440       33,166       48,242       56,292       194,882       72,424       55,911       64,367  
Crescent Plaza
Brockton
MA
     3       1,576,543       218,137       96,005       32,593       53,420       62,806       161,182       55,405       59,665       68,969  
Cambridge
Cambridge
MA
     1       1,130,470       54,226       65,630       23,337       62,405       87,759       489,150       215,128       68,155       97,305  
New Loudon Center
Latham
NY
     5       1,959,124       255,673       42,239       16,004       63,599       76,258       151,343       61,547       55,150       67,252  
Walnut Hill Plaza
Woonsocket
RI
     5       2,116,550       284,717       58,072       22,079       50,251       59,544       91,962       35,206       58,299       69,645  
The Gateway Shopping Center
So. Burlington
VT
     3       1,802,437       101,655       49,599       20,331       51,135       64,086       74,461       30,538       54,695       67,272  
Hobson West Plaza
Naperville
IL
     3       1,112,767       99,137       95,896       34,156       109,898       113,927       236,016       84,332       108,127       112,720  
Clark & Diversey3
Chicago
IL
     1       815,956       19,265       80,058       47,674       74,864       107,610       133,868       78,221       80,762       114,242  
West Diversey4
Chicago
IL
     1       1,884,925       46,259       57,904       37,481       66,689       94,576       361,880       198,507       70,933       100,699  
Chicago Urban/Street Retail Portfolio4
Chicago
IL
     1       2,812,239       72,763       62,509       32,901       91,769       141,038       494,291       234,742       71,739       100,859  
Merrillville Plaza
Hobart
IN
     5       2,870,922       235,824       28,125       11,745       59,051       57,903       79,178       30,967       55,914       56,106  
Bloomfield Town Square
Bloomfield Hills
MI
     5       2,277,192       236,418       58,074       22,758       88,141       102,572       157,331       61,379       95,034       105,404  
Mad River Station
Dayton
OH
     5       1,270,327       126,129       57,875       25,349       66,903       70,623       154,785       55,374       69,503       74,465  
Marketplace of Absecon
Absecon
NJ
     3       1,231,831       104,762       28,925       10,533       59,908       74,572       69,370       23,899       59,194       72,233  
Brandywine/Mkt Sq./Naamans Rd.
Wilmington
DE
     3       15,893,117       997,020       110,839       45,584       63,729       68,575       188,535       76,355       72,069       74,895  
Mark Plaza
Edwardsville
PA
     5       240,664       106,856       87,545       37,108       37,075       46,254       121,815       50,915       39,826       49,730  
Plaza 422
Lebanon
PA
     3       795,852       156,279       44,076       18,114       42,329       44,905       63,493       25,552       47,678       49,724  
Route 6 Plaza
Honesdale
PA
     5       1,179,840       175,519       7,948       3,467       36,983       47,590       12,024       5,030       39,415       49,983  
Chestnut Hill
Philadelphia
PA
     3       357,143       37,916       147,322       60,592       63,508       79,148       396,137       159,190       61,052       77,569  
Abington Towne Center
Abington
PA
     3       1,123,202       216,369       88,887       35,153       78,175       97,812       296,425       117,842       69,750       84,152  
Georgetown Portfolio4
Georgetown
DC
     1       1,665,917       27,666       37,072       18,448       80,669       137,674       306,482       147,883       70,715       110,008  
Total Core 1
                                                                                            
Weighted Average - Based on GLA
                                 70,799       27,080     $ 67,956     $ 80,354       180,828       69,883     $ 68,659     $ 80,204  
Weighted Average - Based on base rent
                                 76,457       30,010     $ 74,231     $ 92,861       219,746       88,772     $ 74,627     $ 91,742  
                                                                                             
 Notes:  
1 Calculations have been pro-rated based on the Company's ownership % in joint ventures.
2 Reflects .5 and 1 mile radius figures.
3 Reflects 1 and 1.5 mile radius figures,
4 Reflects 1 and 3 mile radius figures.
5 Reflects  2 and 3 mile radius figures.
 
 
-39-
 
 
Property Demographics - Funds
                                                  
                   
3-Mile Radius2
  
5-Mile Radius2
  
       
Trade Area
  
Base
  
Total
  
Total
   #  
Median HH
  
Avg. HH
  
Total
   #  
Median HH
  
Avg. HH
  
Property
City
State
  
(Miles)
  
Rent
  
GLA
  
Pop.
  
HH
  
Income
  
Income
  
Pop.
  
HH
  
Income
  
Income
  
Fund I
                                                  
Tarrytown Shopping Center
Tarrytown
NY
   2   848,733   34,979   22,110   8,246     86,276     112,075   35,192   12,933     89,621     116,661  
Fund II
                                                          
Pelham Manor Shopping Plaza
Westchester
NY
   3   5,601,779   228,493   401,439   145,255     57,360     68,075   532,763   168,549     35,031     49,370  
400 East Fordham Road4
The Bronx
NY
   2   5,519,760   119,446   649,998   214,775     33,106     43,969   1,214,522   401,588     35,202     47,217  
Liberty Avenue2
Queens
NY
   1   772,671   26,125   91,638   28,967     53,392     62,024   338,406   102,483     50,598     60,663  
Canarsie2
Brooklyn
NY
   1   7,678,974   273,542   111,699   36,850     47,249     56,580   1,222,610   400,044     53,590     64,781  
216th Street3
Manhattan
NY
   1   2,460,000   60,000   160,656   54,093     38,123     51,821   948,832   311,867     35,661     48,955  
161st Street2
The Bronx
NY
   1   4,617,137   237,983   199,667   64,948     23,956     35,877   734,022   236,490     25,864     39,464  
Fund III
                                                          
Westport
Westport
CT
   3   1,741,544   27,033   43,980   16,452     157,068     202,669   113,415   42,948     128,347     162,965  
Cortlandt Towne Center
Mohegan Lake
NY
   3   9,287,863   641,211   36,790   11,992     98,885     106,063   89,641   30,347     90,138     100,808  
654 Broadway5
New York
NY
   1   300,000   2,896   70,572   34,946     73,978     128,584   271,509   127,536     70,980     121,380  
640 Broadway5
New York
NY
   1   645,281   4,483   70,572   34,946     73,978     128,584   271,509   127,536     70,980     121,380  
New Hyde Park Shopping Center
New Hyde Park
NY
   3   853,704   31,498   184,784   66,069     99,327     121,864   548,457   186,573     91,812     112,332  
White City
Shrewsbury
MA
   3   4,724,954   255,243   94,955   38,180     49,759     62,004   211,652   80,653     54,993     68,709  
White Oak
Silver Spring
MD
   3   874,416   64,626   92,060   34,141     80,124     97,014   256,978   88,658     78,604     94,563  
Parkway Crossing
Parkville
MD
   3   1,274,070   260,241   188,463   68,889     55,950     66,501   422,951   154,241     55,841     69,175  
Lincoln Road
Miami Beach
FL
   3   2,348,380   61,443   60,730   35,165     44,469     73,128   213,203   100,137     40,684     60,999  
Heritage Shops
Chicago
IL
   3   2,588,752   105,449   291,977   148,982     70,575     101,644   743,136   328,907     60,757     84,919  
                                                           
                                                           
Fund I 1
                                                          
Weighted Average - Based on GLA
                 22,110   8,246   $ 86,276   $ 112,075   35,192   12,933   $ 89,621   $ 116,661  
Weighted Average - Based on base rent
                 22,110   8,246   $ 86,276   $ 112,075   35,192   12,933   $ 89,621   $ 116,661  
                                                           
Fund II - Urban In-Fill 1
                                                          
Weighted Average - Based on GLA
                 284,289   96,909   $ 41,293   $ 52,149   869,920   282,592   $ 37,672   $ 50,532  
Weighted Average - Based on base rent
                 314,864   106,705   $ 41,412   $ 52,270   923,297   300,948   $ 38,473   $ 51,160  
                                                           
Fund III 1
                                                          
Weighted Average - Based on GLA
                 98,302   39,604   $ 79,715   $ 92,627   239,436   91,731   $ 74,705   $ 88,756  
Weighted Average - Based on base rent
               94,038   40,534   $ 83,194   $ 100,661   240,401   95,864   $ 76,515   $ 93,201  
                                                           
Total - Core and Funds1
                                                          
Weighted Average - Based on GLA
                 80,771   30,549   $ 67,677   $ 80,086   211,202   79,453   $ 67,867   $ 79,664  
Weighted Average - Based on base rent
                 95,758   36,542   $ 72,399   $ 90,385   274,381   105,210   $ 72,055   $ 88,848  
 
Notes:
  
1 Does not include the Kroger/Safeway Portfolio.  Calculations have been pro-rated based on the Company's ownership % in the joint venture.
2 Reflects 1 and 2 mile radius figures.
3 Reflects 1 and 3 mile radius figures.
4 Reflects 2 and 3 mile radius figures.
5 Reflects .5 and 1 mile radius figures.
 
 
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Important Notes
 
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
 
Certain statements contained in this supplemental disclosure may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934 and as such may involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend" or "project" or the negative thereof or other variations thereon or comparable terminology. Factors which could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to those set forth under the heading "Risk Factors" in the Company's Annual Report on Form 10-K. These risks and uncertainties should be considered in evaluating any forward-looking statements contained or incorporated by reference herein.

USE OF FUNDS FROM OPERATIONS AS NON-GAAP FINANCIAL MEASURE
 
The Company considers funds from operations (“FFO”) as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) to be an appropriate supplemental disclosure of operating performance for an equity REIT due to its widespread acceptance and use within the REIT and analyst communities. FFO is presented to assist investors in analyzing the performance of the Company. It is helpful as it excludes various items included in net income that are not indicative of the operating performance, such as gains (or losses) from sales of property and depreciation and amortization. However, the Company’s method of calculating FFO may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. FFO does not represent cash generated from operations as defined by generally accepted accounting principles (“GAAP”) and is not indicative of cash available to fund all cash needs, including distributions. It should not be considered as an alternative to net income for the purpose of evaluating the Company’s performance or to cash flows as a measure of liquidity.  Consistent with the NAREIT definition, the Company defines FFO as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. In addition, the Company also discloses FFO as adjusted to include the extraordinary gain from its RCP investment in Albertson's.  The Company believes that income or gains derived from its RCP investments, including its investment in Albertson's, are private-equity investments and, as such, should be treated as operating income and therefore FFO. The Company believes that this supplement adjustment more appropriately reflects the results of its operations. The Company also provides two other supplemental disclosures of operating performance, adjusted funds from operations ("AFFO")  and funds available for distribution ("FAD"). The Company defines AFFO as FFO adjusted for straight line rent, non-real estate depreciation, amortization of finance costs and costs of management contracts, tenant improvements, leasing commissions and capital expenditures. The Company defines FAD as AFFO adjusted for scheduled debt principal payments.

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

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