SEC Filing - Acadia Realty Trust

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a6486333.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): October 26, 2010

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 October 26, 2010, Acadia Realty Trust (the "Company") issued a press release announcing its consolidated financial results for the quarter and nine months ended September 30, 2010. 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 October 26, 2010, the Company made available supplemental information concerning the ownership, operations and portfolio of the Company as of and for the quarter and nine months ended September 30, 2010. 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 October 26, 2010.
99.2	Financial and Operating Reporting Supplement of the Company for the quarter and nine months ended September 30, 2010.

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: October 28, 2010	By:	/s/ Michael Nelsen

	Name:	Michael Nelsen
	Title:	Sr. Vice President
		and Chief Financial Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press release of the Company dated October 26, 2010.
99.2	Financial and Operating Reporting Supplement of the Company for the quarter and nine months ended September 30, 2010.

a6486333ex99-1.htm

Exhibit 99.1

Acadia Realty Trust Reports Third Quarter 2010 Operating Results

NEW YORK--(BUSINESS WIRE)--October 26, 2010--Acadia Realty Trust (NYSE:AKR), today reported operating results for the quarter and nine months ended September 30, 2010. All per share amounts are on a fully diluted basis.

Third Quarter 2010 Highlights

EPS of $0.13; FFO of $0.26

Funds from operations (“FFO”) per share of $0.26 and Earnings per share (“EPS”) from continuing operations of $0.13 for third quarter 2010

Steady Core Portfolio Performance

Current occupancy of 91.2% decreased 180 basis points from second quarter 2010 as a result of the accretive re-anchoring at one location for which replacement leases have been executed for the entire former anchor space

Same store net operating income (“NOI”) decreased 0.5% for third quarter 2010 compared to third quarter 2009

Strong Balance Sheet

Core portfolio debt, net of cash on hand (“Net Debt”) to EBIDTA ratio of 4.0x

Cash on hand and availability under current credit facilities of $136 million at September 30, 2010

Mezzanine and Preferred Equity Portfolio

Received full repayment of principal and accrued interest totaling $49.4 million on one of the Georgetown, Washington D.C. portfolios representing a 14.8% total return on this 2008 investment

Third Quarter and Nine Months ended September 30, 2010 Operating Results

For the quarter ended September 30, 2010, FFO was $10.5 million, compared to $13.4 million for the quarter ended September 30, 2009. For the nine months ended September 30, 2010, FFO was $38.3 million compared to $39.6 million for the nine months ended September 30, 2009.

Earnings for the quarters and nine months ended September 30, 2010 and 2009 were as follows:


		Quarters ended September 30,					Nine Months ended September 30,
		2010		2009	Variance		2010		2009	Variance
FFO per share	$	0.26	$	0.33	$(0.07)	$	0.94	$	1.03	$(0.09)
EPS from continuing
operations	$	0.13	$	0.18	$(0.05)	$	0.57	$	0.63	$(0.06)
EPS	$	0.13	$	0.18	$(0.05)	$	0.57	$	0.66	$(0.09)

Following are the factors which contributed to the variance in EPS from continuing operations for the quarter and nine months ended September 30, 2010 as compared to the corresponding periods in 2009:


	Variance 2010 v. 2009
	Quarter		Nine months
2009 lease termination income	$	(0.06)	$	(0.07)
2009 impairment charge related to a Fund I unconsolidated investment, net of noncontrolling interests’ share		0.04		0.04
2010 non-cash gain on purchase		--		0.15
2009 gain on extinguishment of convertible debt		--		(0.19)
2009 reserve for mezzanine loan and development costs		--		0.06
2009 income from forfeited contract deposit		--		(0.05)
2010 income tax effect of increased TRS earnings		(0.03)		--
Total variance	$	(0.05)	$	(0.06)

Discontinued operations decreased $0.03 for the nine months ended September 30, 2010 as compared to the same period in 2009 primarily as a result of a gain recognized on the sale of six Kroger Supermarket locations in the first quarter 2009.

Strong Balance Sheet with Low Leverage and Available Capital

As of September 30, 2010, Acadia’s solid balance sheet was evidenced by the following:

Strong Liquidity

Total liquidity of $136 million, including $91 million of cash and $45 million available under existing lines of credit, excluding the cash and credit facilities of the Company’s opportunity funds (“Funds”)

$406 million of committed Fund III investor capital is unfunded as of September 30, 2010 of which $350 million of unallocated investor capital commitments is available to fund Fund III’s future acquisitions and to repay outstanding subscription line borrowings. Acadia’s pro-rata share of the $406 million of total unfunded capital is $81 million

Low Leverage

Core portfolio Net Debt to EBIDTA ratio of 4.0x. Including the Company’s pro-rata share of the Fund debt, a Net Debt to EBITDA ratio of 4.9x

Core portfolio fixed-charge coverage ratio of 3.0 to 1 and combined fixed-charge coverage ratio, including core portfolio and Funds, was also 3.0 to 1 for the quarter ended September 30, 2010

Low Exposure to Interest Rate Variability

100% of the Company’s core portfolio debt is fixed at an average interest rate of 6.0%. Including the Company’s pro-rata share of the Fund debt, 87% of the Company’s debt is fixed at an average interest rate of 5.5%

Steady Core Portfolio Performance

Portfolio Occupancy

At September 30, 2010, Acadia’s core portfolio occupancy was 91.2% which was consistent with the Company’s forecast. This represents a decrease of 180 basis points from 93.0% occupancy at June 30, 2010 and a 140 basis point decrease over year-end 2009 occupancy of 92.6%. Acadia’s combined portfolio occupancy, including its core portfolio and Funds, was 90.8% as of September 30, 2010, which represents a decrease of 160 basis points from occupancy at June 30, 2010 and a decrease of 110 basis points from year-end 2009.

As previously discussed by the Company, the current quarter decrease in occupancy is a result of the re-anchoring of the New Loudon Shopping Center in Latham, NY. Leases to expand the existing Price Chopper supermarket and a new Hobby Lobby have been executed to replace a 65,000 square foot Bon Ton store at a 50% increase in base rent. While this represents a 170 basis points decline in portfolio occupancy, there is no negative impact on the leased occupancy within Acadia’s portfolio. However, reported occupancy, which includes only tenants currently paying rent, will be temporarily impacted until the replacement tenants open during the first half of 2011.

Same Store NOI

For the quarter ended September 30, 2010, core portfolio same store NOI decreased 0.5% compared to the quarter ended September 30, 2009. For the nine months ended September 30, 2010, core portfolio same store NOI decreased 0.8% from the nine months ended September 30, 2009. This result compares favorably to both management’s original 2010 same store NOI forecast range of -2% to -4% and the updated forecast range, which was revised during the second quarter of 2010, of 0% to -2%.

Leasing Activity

During the third quarter of 2010, the Company realized a decrease in average rents of 12.8% in its core portfolio on 31,000 square feet of new and renewal leases. This was primarily due to the renewal of a 25,000 square foot tenant at a reduced rent at the Company’s Mad River Station shopping center located in Dayton, Ohio. Excluding the effect of the straight-lining of rents, the Company experienced a 15.4% decrease in average rents.

For the nine months ended September 30, 2010, the Company realized a decrease in average rents of 2.6% in its core portfolio on 221,000 square feet of new and renewal leases. Excluding the effect of the straight-lining of rents, the Company experienced a 9.6% decrease in average rents.

Mezzanine and Preferred Equity Portfolio – Georgetown Investment Repaid in Full

During September 2010, one of the Company’s Georgetown, Washington D.C. mezzanine investments, which was secured by a portfolio of 18 properties, was fully liquidated. The Company received $40.0 million of principal along with $9.4 million of accrued interest. Acadia generated a 14.8% total return on this investment, which commenced during June of 2008.

The remaining portfolio, which includes a separate $8.0 million Georgetown, Washington D.C. mezzanine investment secured by five properties, totals $87.6 million and is currently earning interest at approximately 17%.

Opportunity Fund Activity - Anchor Lease Signed at Westport, Connecticut Project

During the third quarter, the Company executed a lease with Gap Inc. to occupy three levels at Fund III’s 125 Main Street, Westport, Connecticut redevelopment project. Construction has commenced on the project which is now 77% pre-leased. Gap is anticipated to open in the second half of 2011.

Outlook - Earnings Guidance for 2010

The Company reaffirms its previously revised 2010 FFO and EPS forecast ranges. On a fully diluted basis, the Company forecasts that 2010 annual FFO will range from $1.20 to $1.25 per share and 2010 EPS from $0.71 to $0.76 per share. The high end of guidance includes income from other sources which may include contributions from new acquisitions, income from Acadia’s RCP investments or promote income from Acadia’s opportunity funds.

Management Comments

“We are pleased with our third quarter results, which reflect a stabilizing core portfolio and a very strong capital position,” stated Kenneth F. Bernstein, President and CEO of Acadia Realty Trust. “Looking forward, our strong balance sheet, discretionary investment fund capital and value-add focus, position us to capitalize on a variety of investment opportunities.”

Investor Conference Call

Management will conduct a conference call on Wednesday, October 27, 2010 at 12:00 PM ET to review the Company's earnings and operating results. The live conference call can be accessed by dialing 866-788-0541 (internationally 857-350-1679). 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 13361622. The phone replay will be available through Wednesday, November 3, 2010.

Acadia Realty Trust, headquartered in White Plains, NY, is a fully integrated, self-managed and self-administered equity REIT focused primarily on the ownership, acquisition, redevelopment and management of retail and mixed-use properties, including neighborhood and community shopping centers located in dense urban and suburban markets in major metropolitan areas.

Certain matters in this press release may constitute forward-looking statements within the meaning of federal securities law and as such may involve known and unknown risk, uncertainties and other factors that may cause the actual results, performances or achievements of Acadia to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. These forward-looking statements include statements regarding Acadia’s future financial results and its ability to capitalize on potential opportunities arising from continued economic uncertainty. Factors that could cause the Company’s forward-looking statements to differ from its future results include, but are not limited to, those discussed under the headings “Risk Factors” and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company’s most recent annual report on Form 10-K filed with the SEC on March 1, 2010 (“Form 10-K”) and other periodic reports filed with the SEC, including risks related to: (i) the current global financial environment and its effect on retail tenants; (ii) the Company’s reliance on revenues derived from major tenants; (iii) the Company’s limited control over joint venture investments; (iv) the Company’s partnership structure; (v) real estate and the geographic concentration of our properties; (vi) market interest rates; (vii) leverage; (viii) liability for environmental matters; (ix) the Company’s growth strategy; (x) the Company’s status as a REIT; (xi) uninsured losses and (xii) the loss of key executives. Copies of the Form 10-K and the other periodic reports Acadia files with the SEC are available on the Company’s website at www.acadiarealty.com. Any forward-looking statements in this press release speak only as of the date hereof. Acadia expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Acadia's expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based.


ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights 1
For the Quarters and Nine Months ended September 30, 2010 and 2009
(dollars in thousands, except per share data)


	For the Quarters ended						For the Nine Months ended
	September 30,						September 30,
Revenues	2010			2009			2010			2009

Minimum rents	$	27,980		$	25,877		$	79,414		$	70,922
Percentage rents		61			64			320			392
Mortgage interest income		5,206			4,908			15,437			14,867
Expense reimbursements		4,939			4,868			15,839			15,252
Lease termination income		--			2,500			65			2,726
Other property income		729			362			1,663			1,550
Management fee income		346			316			1,182			1,517
Other		--			--			--			1,700
Total revenues		39,261			38,895			113,920			108,926
Operating expenses
Property operating		7,255			6,419			21,671			20,965
Real estate taxes		4,771			4,552			13,644			12,305
General and administrative		5,317			5,226			15,852			16,575
Depreciation and amortization		10,341			10,377			28,546			27,412
Abandonment of project costs		--			53			3			2,484
Reserve for notes receivable		--			--			--			1,734
Total operating expenses		27,684			26,627			79,716			81,475
Operating income		11,577			12,268			34,204			27,451
Equity in earnings (losses) of unconsolidated affiliates		143			(193	)		610			(3,451	)
Impairment of investment in unconsolidated affiliate		--			(3,655	)		--			(3,655	)
Other interest income		175			161			462			373
Interest expense and other finance costs		(8,829	)		(8,329	)		(25,927	)		(23,782	)
Gain from bargain purchase		--			--			33,805			--
Gain on extinguishment of debt		--			11			--			7,057
Income from continuing operations before income taxes		3,066			263			43,154			3,993
Income tax (expense) benefit		(785	)		273			(1,869	)		(1,349	)
Income from continuing operations		2,281			536			41,285			2,644


ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights 1
For the Quarters and Nine Months ended September 30, 2010 and 2009
(dollars in thousands, except per share data)


	For the Quarters ended					For the Nine Months ended
	September 30,					September 30,
	2010		2009			2010			2009

Discontinued operations:
Operating income from discontinued operations		--		32			--			225
Gain on sale of property		--		--			--			5,637
Income from discontinued operations		--		32			--			5,862
Net income		2,281		568			41,285			8,506
Loss (income) attributable to noncontrolling interests in subsidiaries:
Continuing operations		2,836		6,740			(18,240	)		21,101
Discontinued operations		--		(1	)		--			(4,866	)
Net loss (income) attributable to noncontrolling interests in subsidiaries		2,836		6,739			(18,240	)		16,235

Net income attributable to Common Shareholders	$	5,117	$	7,307		$	23,045		$	24,741

Supplemental Information
Income from continuing operations attributable to Common Shareholders	$	5,117	$	7,276		$	23,045		$	23,745
Income from discontinued operations attributable to Common Shareholders		--		31			--			996
Net income attributable to Common Shareholders	$	5,117	$	7,307		$	23,045		$	24,741

Net income attributable to Common Shareholders per Common Share – Basic
Net income per Common Share – Continuing operations	$	0.13	$	0.18		$	0.57		$	0.63
Net income per Common Share – Discontinued operations		--		--			--			0.03
Net income per Common Share	$	0.13	$	0.18		$	0.57		$	0.66
Weighted average Common Shares		40,169		39,686			40,096			37,415

Net income attributable to Common Shareholders per Common Share – Diluted 2
Net income per Common Share – Continuing operations	$	0.13	$	0.18		$	0.57		$	0.63
Net income per Common Share – Discontinued operations		--		--			--			0.03
Net income per Common Share	$	0.13	$	0.18		$	0.57		$	0.66
Weighted average Common Shares		40,431		39,968			40,335			37,629

ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights 1
For the Quarters and Nine Months ended September 30, 2010 and 2009
(dollars in thousands, except per share data)

RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS 3

	For the Quarters ended				For the Nine Months ended
	September 30,				September 30,
	2010		2009		2010		2009


Net income attributable to Common Shareholders	$	5,117	$	7,307	$	23,045	$	24,741

Depreciation of real estate and amortization of leasing costs (net of noncontrolling interests' share):
Consolidated affiliates		4,967		5,441		13,757		14,239
Unconsolidated affiliates		354		494		1,187		1,232
Gain on sale (net of noncontrolling interests' share):
Consolidated affiliates		--		--		--		(929	)
Unconsolidated affiliates		--		--		--		--
Income attributable to noncontrolling interests’ in Operating Partnership		64		133		309		344

Distributions – Preferred OP Units		5		5		14		14

Funds from operations	$	10,507	$	13,380	$	38,312	$	39,641
Funds from operations per share – Diluted
Weighted average Common Shares and OP Units 4		40,905		40,641		40,841		38,301
Funds from operations, per share	$	0.26	$	0.33	$	0.94	$	1.03


ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights 1
For the Quarters and Nine Months ended September 30, 2010 and 2009
(dollars in thousands)

RECONCILIATION OF OPERATING INCOME TO NET PROPERTY
OPERATING INCOME (“NOI”) 3

		For the Quarters ended				For the Nine Months ended
		September 30,				September 30,
		2010		2009		2010			2009

Operating income	$	11,577		$ 12,268		$	34,204		$	27,451

Add back:
General and administrative		5,317		5,226			15,852			16,575
Depreciation and amortization		10,341		10,377			28,546			27,412
Abandonment of project costs		--		53			3			2,484
Reserve for notes receivable		--		--			--			1,734
Less:
Management fee income		(346	)	(316	)		(1,182	)		(1,517	)
Mortgage interest income		(5,206	)	(4,908	)		(15,437	)		(14,867	)
Other income		--		--			--			(1,700	)
Lease termination income		--		(2,500	)		(65	)		(2,726	)
Straight line rent and other adjustments		(963	)	(2,120	)		(2,673	)		(1,673	)

Consolidated NOI		20,720		18,080			59,248			53,173

Noncontrolling interest in NOI		(6,583	)	(3,657	)		(17,406	)		(10,642	)
Pro-rata share of NOI	$	14,137		$ 14,423		$	41,842		$	42,531

SELECTED BALANCE SHEET INFORMATION
	As of
	September 30, 2010		December 31, 2009


Cash and cash equivalents	$	110,703	$	93,808
Rental property, at cost		1,058,529		1,070,066
Total assets		1,490,748		1,382,464
Notes payable		832,151		780,094
Total liabilities		916,908		849,987

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 Company̵ 7;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 449 and 673 OP Units into Common Shares for the quarters ended September 30, 2010 and 2009, respectively and 506 and 673 OP Units into Common Shares for the nine months ended September 30, 2010 and 2009, respectively. Diluted FFO also includes the assumed conversion of Preferred OP Units into 25 Common Shares for the quarter ended September 30, 2009, and for each of nine months ended September 30, 2010 and 2009. In addition, diluted FFO also includes the effect of employee share options of 262 and 257 Common Shares for the quarters ended September 30, 2010 and 2009, respectively, and 214 and 189 Common Shar es for the nine months ended September 30, 2010 and 2009, respectively.

CONTACT:

Acadia Realty Trust

Jon Grisham, 914-288-8100

a6486333ex99-2.htm

Exhibit 99.2

ACADIA REALTY TRUST

Focused.

Disciplined.

Value-Driven.

Third Quarter 2010

Reporting Supplement

Reporting Supplement
September 30, 2010

Table of Contents
	Page		Page

Section I - Financial Information		Section II - Opportunity Fund Information

Company Information	3	Opportunity Fund Overview	24

Market Capitalization	4	Redevelopment Projects - Operating	25

Operating Statements		Redevelopment Projects - Construction and Design	26
Pro-rata Consolidation	5
Joint Ventures	6	RCP Venture Investments	27
Opportunity Funds	7
Funds from Operations ("FFO"), Adjusted FFO ("AFFO")		Section III - Core and Opportunity Fund Portfolio Information
and Funds Available for Distribution ("FAD")	9
EBITDA	10	Core Properties	28
Same Property Net Operating Income	11
Fee Income	12	Core Portfolio by State	30
2010 Guidance	13
Net Asset Valuation	14	Core Top Tenants	31

Balance Sheet - Pro-rata Consolidation	15	Core Lease Expirations	32

Notes Receivable	16	Core New and Renewal Rent Spreads	34

Debt Analysis		Core Capital Expenditures	35
Summary	17
Detail	18	Opportunity Fund Properties	36
Maturities	21
Maturities with Extension Options	22	Storage Post Properties	37

Selected Financial Ratios	23	Opportunity Fund Lease Expirations	38

		Portfolio Demographics	41

		Important Notes	42

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

Page 2

Reporting Supplement

September 30, 2010

Company Information

Acadia Realty Trust, headquartered in White Plains, NY, is a fully integrated and self-managed real estate investment trust

which specializes in the acquisition, redevelopment and operation of shopping centers which are anchored by grocery and

value-oriented retail. Acadia currently owns (or has interests in) and operates 76 properties totaling approximately 8 million

square feet, located in the Northeast, Mid-Atlantic and Midwest United States.

All of Acadia's assets are held by, and all its operations are conducted through, Acadia Realty Limited Partnership

(and its majority-owned subsidiaries) which is currently 99% controlled by Acadia.

Corporate Headquarters

1311 Mamaroneck Avenue

Investor Relations

Jon Grisham

Suite 260

Senior Vice President,

White Plains, NY 10605

Chief Accounting Officer

(914) 288-8142

jgrisham@acadiarealty.com

New York Stock Exchange

Symbol AKR

Web Site

www.acadiarealty.com

Analyst Coverage

Banc of America / Merrill Lynch

Green Street Advisors

KeyBanc Capital Markets, Inc.

Craig Schmidt (646) 855-3640

Laura Clark (949) 640-8780

Todd Thomas - (917) 368-2286

craig_schmidt@ml.com

lclark@greenst.com

tthomas@keybanccm.com

Bank of Montreal

Janney Montgomery Scott

Macquarie Capital (USA)

Paul Adornato, CFA - (212) 885-4170

Andrew T. DiZio, CFA (215) 665-6439

Rob Stevenson (212) 231-8068

paul.adornato@bmo.com

adizio@jmsonline.com

rob.stevenson@macquarie.com

Citigroup - Smith Barney

J.P. Morgan Securities, Inc.

RBC Capital Markets

Quentin Velleley, CFA - (212) 816-6981

Michael W. Mueller, CFA (212) 622-6689

Rich Moore, CFA - (440) 715-2646

quentin.velleley@citi.com

michael.w.mueller@jpmorgan.com

rich.moore@rbccm.com

Cowen and Company

Keefe, Bruyette & Woods, Inc.

UBS

Stephen Boyd - (646) 562-1382

Sheila K. McGrath - (212) 887-7793

Christy McElroy - (203) 719-7831

Stephen.Boyd@cowen.com

smcgrath@kbw.com

christy.mcelroy@ubs.com

Page 3


Reporting Supplement
September 30, 2010

Total Market Capitalization
(including pro-rata share of Opportunity Fund debt)			Total Market Capitalization
(dollars in thousands)	Notes		as of September 30, 2010
			Percent								Capitalization
			of Total								Based
		1	Equity								on "Net Debt"3
Equity Capitalization
Total Common Shares Outstanding				99.0	%	$	40,247
Common Operating Partnership ("OP") Units				0.9	%		366
Combined Common Shares and OP Units							40,613

Share Price September 30, 2010							19.00

Equity Capitalization - Common Shares and OP Units							771,647
Preferred OP Units		2					476
Total Equity Capitalization							772,123		63.2	%		68.8	%

Debt Capitalization
Consolidated debt							832,074
Adjustment to reflect pro-rata share of debt							(382,696	)
Total Debt Capitalization							449,378		36.8	%		31.2	%

Total Market Capitalization						$	1,221,501		100.0	%		100.0	%




1 Reflects Debt net of Core Portfolio and pro-rata share of Opportunity Funds cash balance ("Net Debt") as of September 30, 2010 of											$	98,701
2 Represents 188 Series A Preferred OP Units convertible into 25,067 Common OP units x share price at quarter end.
3 Fixed-rate debt includes notional principal fixed through interest rate swap transactions.


	Weighted Average Outstanding Common Shares and OP Units
	September 30, 2010				September 30, 2009
	Quarter		Year-to-date		Quarter		Year-to-date
Weighted average Common Shares - Basic EPS		40,169,141		40,095,521		39,685,623		37,414,805
Dilutive potential Common Shares		261,857		239,461		282,091		213,799
Weighted average Common Shares - Diluted EPS		40,430,998		40,334,982		39,967,714		37,628,604
OP Units		448,632		506,463		673,452		672,838
Dilutive potential OP Units		25,067		-		-		-
Weighted average Common Shares/OP Units - Diluted FFO		40,904,697		40,841,445		40,641,166		38,301,442

Page 4


Reporting Supplement September 30, 2010

Income Statements - Pro-rata Consolidation 1
Current Quarter and Year-to-Date (in thousands)
		Year-to-Date Period ended September 30, 2010																			Current Quarter 3 months ended September 30, 2010
		Core Retail											Opportunity Funds					Total			Core Retail											Opportunity Funds					Total
		Wholly Owned			Joint Ventures			Total Continuing Operations			Discontinued Operations		Continuing Operations			Discontinued Operations					Wholly Owned			Joint Ventures			Total Continuing Operations			Discontinued Operations		Continuing Operations			Discontinued Operations
CORE PORTFOLIO AND OPPORTUNITY FUND INCOME

PROPERTY REVENUES
Minimum rents		$	35,012		$	4,868		$	39,880		$	-	$	8,625		$	-	$	48,505		$	11,765		$	1,625		$	13,390		$	-	$	3,110		$	-	$	16,500
Percentage rents			308			37			345			-		3			-		348			63			1			64			-		-			-		64
Expense reimbursements - CAM			3,856			564			4,420			-		618			-		5,038			1,020			186			1,206			-		192			-		1,398
Expense reimbursements - Taxes			5,499			749			6,248			-		702			-		6,950			1,896			252			2,148			-		204			-		2,352
Other property income			206			-			206			-		308			-		514			76			-			76			-		137			-		213
			44,881			6,218			51,099			-		10,256			-		61,355			14,820			2,064			16,884			-		3,643			-		20,527
PROPERTY EXPENSES
Property operating - CAM			5,173			762			5,935			-		861			-		6,796			1,449			235			1,684			-		262			-		1,946
Other property operating (Non-CAM)			1,695			114			1,809			-		1,909			-		3,718			617			44			661			-		707			-		1,368
Real estate taxes			6,759			842			7,601			-		1,398			-		8,999			2,317			284			2,601			-		475			-		3,076
			13,627			1,718			15,345			-		4,168			-		19,513			4,383			563			4,946			-		1,444			-		6,390

NET OPERATING INCOME - PROPERTIES			31,254			4,500			35,754			-		6,088			-		41,842			10,437			1,501			11,938			-		2,199			-		14,137

OTHER INCOME (EXPENSE)
Mezzanine interest income			14,446			-			14,446			-		197			-		14,643			4,878			-			4,878			-		65			-		4,943
Other interest income			354			15			369			-		22			-		391			77			-			77			-		20			-		97
Straight-line rent income			184			(35	)		149			-		768			-		917			126			(11	)		115			-		287			-		402
Straight-line rents written off			(264	)		-			(264	)		-		-			-		(264	)		(264	)		-			(264	)		-		-			-		(264	)
Straight-line ground rent			-			-			-			-		(66	)		-		(66	)		-			-			-			-		(22	)		-		(22	)
FAS 141 rent			(451	)		105			(346	)		-		(148	)		-		(494	)		(145	)		35			(110	)		-		(47	)		-		(157	)
FAS 141 interest			15			-			15			-		-			-		15			5			-			5					-			-		5
Interest expense			(12,501	)		(2,784	)		(15,285	)		-		(2,682	)		-		(17,967	)		(4,173	)		(938	)		(5,111	)				(930	)		-		(6,041	)
Asset and property management expense			(51	)		-			(51	)		-		(1	)		-		(52	)		(13	)		-			(13	)		-		-			-		(13	)
Promote expense			-			-			-			-		-			-		-			-			-			-			-		-			-		-
Other income			286			-			286			-		4			-		290			98			-			98			-		4			-		102
Reserve for investment in unconsolidated property			-			-			-			-		-			-		-			-			-			-			-		-			-		-
Reserve for pre-acquisition costs			-			-			-			-		-			-		-			-			-			-			-		-			-		-
Reserve for notes receivable			-			-			-			-		-			-		-			-			-			-			-		-			-		-

CORE PORTFOLIO AND OPPORTUNITY FUND INCOME			33,272			1,801			35,073			-		4,182			-		39,255			11,026			587			11,613			-		1,576			-		13,189

FEE INCOME
Asset and property management fees			8,750			-			8,750			-		-			-		8,750			2,900			-			2,900			-		-			-		2,900
Priority distributions			327			-			327			-		-			-		327			108			-			108			-		-			-		108
Transactional fees 2			3,753			-			3,753			-		-			-		3,753			1,523						1,523					-			-		1,523
Provision for income taxes			(1,993	)		-			(1,993	)		-		-			-		(1,993	)		(967	)		-			(967	)		-		-			-		(967	)

FEE INCOME			10,837			-			10,837			-		-			-		10,837			3,564			-			3,564			-		-			-		3,564

PROMOTE, RCP AND OTHER INCOME
Equity in earnings from RCP investments			-			-			-			-		80			-		80			-			-			-			-		30			-		30
Promote income - RCP			-			-			-			-		15			-		15			-			-			-			-		(7	)		-		(7	)
Promote income - Fund capital transactions			-			-			-			-		-			-		-			-			-			-			-		-			-		-
Equity in earnings of unconsolidated properties			-			-			-			-		(51	)		-		(51	)		-			-			-			-		(33	)		-		(33	)
Forfeited property sale contract deposit			-			-			-			-		-			-		-			-			-			-			-		-			-		-
Lease termination income			50			82			132			-		3			-		135			-			26			26			-		-			-		26
Gain on extinguishment of debt			-			-			-			-		-			-		-			-						-					-			-		-
Gain from bargain purchase			-			-			-			-		6,383			-		6,383			-						-					-			-		-
Provision for income taxes			25			(1	)		24			-		11			-		35			20			-			20			-		27			-		47

PROMOTE, RCP AND OTHER INCOME			75			81			156			-		6,441			-		6,597			20			26			46			-		17			-		63

GENERAL AND ADMINISTRATIVE			(16,834	)		(17	)		(16,851	)		-		(150	)		-		(17,001	)		(5,813	)		(5	)		(5,818	)		-		(30	)		-		(5,848	)

Depreciation and amortization			(11,608	)		(1,223	)		(12,831	)		-		(3,480	)		-		(16,311	)		(4,145	)		(366	)		(4,511	)		-		(1,275	)		-		(5,786	)
FAS 141 amortization			81			-			81			-		(181	)		-		(100	)		29			-			29					(59	)		-		(30	)
Gain on sale of properties			-			-			-			-		-			-		-			-			-			-			-		-			-		-
Income before noncontrolling interests			15,823			642			16,465			-		6,812			-		23,277			4,681			242			4,923			-		229			-		5,152

Noncontrolling interest - OP			(321	)		-			(321	)		-		-			-		(321	)		(68	)		-			(68	)		-		-			-		(68	)
Noncontrolling interests			-			-			-			-		89			-		89			-			-			-			-		33			-		33

NET INCOME		$	15,502		$	642		$	16,144		$	-	$	6,901		$	-	$	23,045		$	4,613		$	242		$	4,855		$	-	$	262		$	-	$	5,117
	1 Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The Company's investments in consolidated and unconsolidated joint ventures are reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items. In total, net income agrees with net income as reported in the Company's Form 10Q's and 10K for the corresponding periods. The Company currently invests in Funds I. II & III and Mervyn's which are consolidated with the Company's financial statements. The Company also has a 22.2% interest in the Brandywine Portfolio and a 49% interest in the Crossroads Shopping Center which are accounted for as unconsolidated investments in the Company's financial statements.
	2 Consists of development, construction, leasing and legal fees.

Page 5

Reporting Supplement
September 30, 2010
Income Statements - Joint Ventures 1
Current Quarter and Year-to-Date
(in thousands)	Year-to-Date															Current Quarter
	Period															3 months
	ended September 30,															ended September 30,
	2010															2010
	Joint Ventures - Core Retail															Joint Ventures - Core Retail
					AKR Pro- rata share						AKR Pro- rata share		Total AKR Pro-							AKR Pro- rata share						AKR Pro- rata share		Total AKR Pro-
	Brandywine				22.22%		Crossroads				49.00%		rata share			Brandywine JV				22.22%		Crossroads				49.00%		rata share
PROPERTY REVENUES
Minimum rents	$	12,076		$	2,683		$	4,455		$	2,185		$	4,868		$	4,051		$	900		$	1,479		$	725		$	1,625
Percentage rents		162			36			2			1			37			-			-			2			1			1
Expense reimbursements - CAM		1,104			246			650			318			564			338			75			227			111			186
Expense reimbursements - Taxes		857			190			1,141			559			749			282			63			386			189			252
Other property income		3			-			-			-			-			1			-			-			-			-
		14,202			3,155			6,248			3,063			6,218			4,672			1,038			2,094			1,026			2,064

PROPERTY EXPENSES
Property operating - CAM		2,066			460			616			302			762			553			123			228			112			235
Other property operating (Non-CAM)		239			53			124			61			114			100			22			44			22			44
Real estate taxes		936			207			1,294			635			842			312			69			438			215			284
		3,241			720			2,034			998			1,718			965			214			710			349			563

NET OPERATING INCOME - PROPERTIES		10,961			2,435			4,214			2,065			4,500			3,707			824			1,384			677			1,501

OTHER INCOME (EXPENSE)
Mezzanine interest income		-			-			-			-			-			-			-			-			-			-
Other interest income		2			-			33			15			15			-			-			1			-			-
Straight-line rent income		(93	)		(21	)		(29	)		(14	)		(35	)		7			2			(27	)		(13	)		(11	)
Straight-line rents written off		-			-			-			-			-			-			-			-			-			-
Straight-line ground rent		-			-			-			-			-			-			-			-			-			-
FAS 141 rent		471			105			-			-			105			157			35			-			-			35
FAS 141 interest		-			-			-			-			-			-			-			-			-			-
Interest expense		(7,546	)		(1,548	)		(2,522	)		(1,236	)		(2,784	)		(2,546	)		(523	)		(846	)		(415	)		(938	)
Property management expense		(787	)		-			-			-			-			(258	)		-			-			-			-
Promote expense		-			-			-			-			-			-			-			-			-			-
Other income		-			-			-			-			-															-
Reserve for investment in unconsolidated property		-			-			-			-			-			-			-			-			-			-
Reserve for pre-acquisition costs		-			-			-			-			-			-			-			-			-			-
Reserve for notes receivable		-			-			-			-			-			-			-			-			-			-
CORE PORTFOLIO AND OPPORTUNITY FUND INCOME		3,008			971			1,696			830			1,801			1,067			338			512			249			587

FEE INCOME
Asset and property management fees		-			-			-			-			-			-			-			-			-			-
Priority distributions		-			-			-			-			-			-			-			-			-			-
Transactional fees		-			-			-			-			-															-
Provision for income taxes		-			-			-			-			-			-			-			-			-			-
FEE INCOME		-			-			-			-			-			-			-			-			-			-

PROMOTE, RCP AND OTHER INCOME
Equity in earnings from RCP investments		-			-			-			-			-			-			-			-			-			-
Promote income - RCP		-			-			-			-			-			-			-			-			-			-
Promote income - Fund capital transactions		-			-			-			-			-			-			-			-			-			-
Equity in earnings of unconsolidated properties		-			-			-			-			-			-			-			-			-			-
Receipt of forfeited deposit		-			-			-			-			-			-			-			-			-			-
Lease termination income		368			82			-			-			82			116			26			-			-			26
Gain on extinguishment of debt		-			-			-			-			-			-			-			-			-			-
Gain from bargain purchase		-			-			-			-			-															-
Provision for income taxes		-			-			(3	)		(1	)		(1	)		-			-			-			-			-
PROMOTE, RCP AND OTHER INCOME		368			82			(3	)		(1	)		81			116			26			-			-			26

GENERAL AND ADMINISTRATIVE		(60	)		(13	)		(8	)		(4	)		(17	)		(9	)		(2	)		(6	)		(3	)		(5	)

Depreciation and amortization 2		(3,255	)		(723	)		(420	)		(500	)		(1,223	)		(905	)		(201	)		(137	)		(165	)		(366	)
FAS 141 amortization		-			-			-			-			-			-			-			-			-			-
Gain on sale of properties		-			-			-			-			-			-			-			-			-			-
Income before noncontrolling interest		61			317			1,265			325			642			269			161			369			81			242

Noncontrolling interest - OP		-			-			-			-			-			-			-			-			-			-
Noncontrolling interests		-			-			-			-			-			-			-			-			-			-

NET INCOME	$	61		$	317		$	1,265		$	325		$	642		$	269		$	161		$	369		$	81		$	242
	1 The Company has a 22.2% interest in the Brandywine Portfolio and a 49% interest in the Crossroads Shopping Center ("Crossroads")
	which are accounted for as unconsolidated investments in the Company's financial statements.
	2 In addition to its pro-rata share of depreciation, the Company recognizes depreciation on its stepped-up basis in Crossroads.

Page 6

Reporting Supplement
September 30, 2010
Income Statements -Opportunity Funds 1
Year-to-Date
(in thousands)

	Year-to-Date Period ended September 30, 2010
	Fund I 3 Continuing Operations			Fund I Discontinued Operations		Fund I Consolidated Operations			AKR Promote 20.00%			Continuing Operations AKR Pro- rata share 22.22%			Discontinued Operations AKR Pro- rata share 22.22%		Mervyns I			AKR Promote 20.00%			AKR Pro- rata share 22.22%			Fund II			AKR Pro- rata share 20.00%			Mervyns II			AKR Pro- rata share 20.00%			Fund III			AKR Pro- rata share 19.9005%			Total AKR Pro- rata share

PROPERTY REVENUES
Minimum rents	$	3,143		$	-	$	3,143		$	629		$	562		$	-	$	-		$	-		$	-		$	17,846		$	3,566		$	-		$	-		$	19,424		$	3,867		$	8,623
Percentage rents		-			-		-			-			-			-		-			-			-			-			-			-			-			11			3			3
Expense reimbursements - CAM		175			-		175			35			31			-		-			-			-			2,070			414			-			-			692			138			618
Expense reimbursements - Taxes		130			-		130			26			23			-		-			-			-			1,349			269			-			-			1,921			383			702
Other property income		113			-		113			23			20			-		-			-			-			281			56			-			-			1,049			209			308
		3,561			-		3,561			712			636			-		-			-			-			21,546			4,305			-			-			23,097			4,600			10,254

PROPERTY EXPENSES
Property operating - CAM		265			-		265			53			47			-		-			-			-			2,768			553			-			-			1,046			208			861
Other property operating (Non-CAM)		94			-		94			19			17			-		-			-			-			4,302			860			-			-			5,091			1,013			1,909
Real estate taxes		194			-		194			39			34			-		-			-			-			2,652			530			-			-			3,997			795			1,398
		553			-		553			111			98			-		-			-			-			9,722			1,943			-			-			10,134			2,016			4,168

NET OPERATING INCOME - PROPERTIES		3,008			-		3,008			602			538			-		-			-			-			11,824			2,362			-			-			12,963			2,584			6,086

OTHER INCOME (EXPENSE)
Mezzanine interest income		-			-		-			-			-			-		-			-			-			1			-			-			-			993			197			197
Other interest income		6			-		6			1			1			-		-			-			-			100			20			-			-			-			-			22
Straight-line rent income		1,306			-		1,306			261			232			-		-			-			-			1,109			222			-			-			260			52			768
Straight-line rents written off		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Straight-line ground rent		-			-		-			-			-			-		-			-			-			(324	)		(66	)		-			-			-			-			(66	)
FAS 141 rent		(12	)		-		(12	)		(2	)		(2	)		-		-			-			-			(195	)		(39	)		-			-			(524	)		(104	)		(148	)
FAS 141 interest		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Interest expense		(457	)		-		(457	)		(91	)		(81	)		-		-			-			-			(8,218	)		(1,644	)		-			-			(4,353	)		(866	)		(2,682	)
Property management expense		3			-		3			(0	)		(0	)		-		-			-			-			(4,201	)		-			(426	)		-			(6,600	)		-			(1	)
Promote expense		(92	)		-		(92	)		-			-			-		(14	)		-			-			-			-			-			-			-			-			-
Other income		-			-		-			-			-			-		-			-			-			-			-			-			-			18			4			4
Reserve for investment in unconsolidated property		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Reserve for pre-acquisition costs		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Reserve for notes receivable		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-

OPPORTUNITY FUND INCOME		3,762			-		3,762			770			687			-		(14	)		-			-			96			855			(426	)		-			2,757			1,867			4,180

FEE INCOME
Asset and property management fees		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Priority distributions		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Transactional fees		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Provision for income taxes		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-

FEE INCOME		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-

PROMOTE, RCP AND OTHER INCOME
Equity in earnings from RCP investments		-			-		-			-			-			-		91			-			16			-			-			317			63			-			-			80
Promote income - RCP		-			-		-			-			-			-		-			18			-			-			-			-			-			-			-			19
Promote income - Fund capital transactions		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Equity in earnings of unconsolidated properties		-			-		-			-			-			-		-			-			-			356			72			-			-			(616	)		(123	)		(51	)
Receipt of forfeited deposit		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Lease termination income		-			-		-			-			-			-		-			-			-			-			-			-			-			15			3			3
Gain on extinguishment of debt		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Gain from bargain purchase		-			-		-			-			-			-		-			-			-			33,805			6,383			-			-			-			-			6,383
Provision for income taxes		(58	)		-		(58	)		(12	)		(10	)		-		(2	)		(0	)		(0	)		(14	)		(3	)		(5	)		(1	)		192			38			11

PROMOTE, RCP AND OTHER INCOME		(58	)		-		(58	)		(12	)		(10	)		-		89			18			16			34,147			6,452			312			62			(409	)		(82	)		6,445

GENERAL AND ADMINISTRATIVE		(112	)		-		(112	)		(22	)		(20	)		-		(17	)		(3	)		(3	)		(230	)		(46	)		(45	)		(8	)		(246	)		(50	)		(153	)

Depreciation and amortization		(2,693	)		-		(2,693	)		(539	)		(479	)		-		-			-			-			(6,288	)		(1,257	)		-			-			(6,065	)		(1,207	)		(3,481	)
FAS 141 amortization		(5	)		-		(5	)		(1	)		(1	)		-		-			-			-			(207	)		(42	)		-			-			(689	)		(138	)		(181	)
Gain on sale of properties		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Income before noncontrolling interest		894			-		894			196			177			-		58			14			13			27,518			5,962			(159	)		54			(4,652	)		390			6,810

Noncontrolling interest - OP		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Noncontrolling interests		-			-		-			-			-			-		-			-			-			(1,566	)		65			-			-			122			24			89

NET INCOME	$	894		$	-	$	894		$	196		$	177		$	-	$	58		$	14		$	13		$	25,952		$	6,027		$	(159	)	$	54		$	(4,530	)	$	414		$	6,899

	1 Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The Company's investments in consolidated and unconsolidated joint ventures are reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items. In total, net income agrees with net income as reported in the Company's Form 10Q's and 10K for the corresponding periods. The Company currently invests in Funds I. II & III and Mervyn's which are consolidated with the Company's financial statements.
	2 Funds I, II & III and the Mervyn's investments pay various fees to the Company. As it is the recipient of such fees, the Company does not recognize its pro-rata share of these expenses.
	3 The 25% noncontrolling interest in the Kroger/Safeway Portfolio has been adjusted directly in each of the income statement line items.

Page 7


Reporting Supplement September 30, 2010 Income Statements -Opportunity Funds 1 Current Quarter (in thousands)

	Current Quarter Period ended September 30, 2010
	Fund I3 Continuing Operations			Fund I Discontinued Operations		Fund I Consolidated Operations			AKR Promote 20.00%			Continuing Operations AKR Pro- rata share 22.22%			Discontinued Operations AKR Pro- rata share 22.22%		Mervyns I			AKR Promote 20.00%			AKR Pro- rata share 22.22%			Fund II			AKR Pro- rata share 20.00%			Mervyns II			AKR Pro- rata share 20.00%			Fund III			AKR Pro- rata share 19.9005%			Total AKR Pro- rata share

PROPERTY REVENUES
Minimum rents	$	1,045		$	-	$	1,045		$	209		$	187		$	-	$	-		$	-		$	-		$	6,130		$	1,225		$	-		$	-		$	7,482		$	1,489		$	3,110
Percentage rents		-			-		-			-			-			-		-			-			-			-			-			-			-			(2	)		-			-
Expense reimbursements - CAM		37			-		37			7			7			-		-			-			-			680			136			-			-			211			42			192
Expense reimbursements - Taxes		(30	)		-		(30	)		(6	)		(5	)		-		-			-			-			476			95			-			-			603			120			204
Other property income		36			-		36			7			6			-		-			-			-			116			23			-			-			500			100			137
		1,088			-		1,088			218			194			-		-			-			-			7,402			1,479			-			-			8,794			1,751			3,643

PROPERTY EXPENSES
Property operating - CAM		73			-		73			15			13			-		-			-			-			887			177			-			-			286			57			262
Other property operating (Non-CAM)		106			-		106			21			19			-		-			-			-			1,467			293			-			-			1,880			374			707
Real estate taxes		(44	)		-		(44	)		(9	)		(8	)		-		-			-			-			975			195			-			-			1,493			297			475
		135			-		135			27			24			-		-			-			-			3,329			665			-			-			3,659			728			1,444

NET OPERATING INCOME - PROPERTIES		953			-		953			191			170			-		-			-			-			4,073			814			-			-			5,135			1,023			2,199

OTHER INCOME (EXPENSE)
Mezzanine interest income		-			-		-			-			-			-		-			-			-			-			-			-			-			328			65			65
Other interest income		-			-		-			-			-			-		-			-			-			98			20			-			-			-			-			20
Straight-line rent income		442			-		442			88			79			-		-			-			-			445			89			-			-			158			31			287
Straight-line rents written off		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Straight-line ground rent		-			-		-			-			-			-		-			-			-			(108	)		(22	)		-			-			-			-			(22	)
FAS 141 rent		(8	)		-		(8	)		(2	)		(1	)		-		-			-			-			(65	)		(13	)		-			-			(157	)		(31	)		(47	)
FAS 141 interest		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Interest expense		(152	)		-		(152	)		(30	)		(27	)		-		-			-			-			(2,824	)		(565	)		-			-			(1,547	)		(308	)		(930	)
Asset and property management expense		5			-		5			-			-			-		-			-			-			(1,422	)		-			(143	)		-			(2,140	)		-			-
Promote expense		(20	)		-		(20	)		-			-			-		8			-			-			-			-			-			-			-			-			-
Other income		-			-		-			-			-			-		-			-			-			-			-			-			-			18			4			4
Reserve for investment in unconsolidated property		-			-		-			-			-			-					-			-			-			-			-			-			-			-			-
Reserve for pre-acquisition costs		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Reserve for notes receivable		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-

OPPORTUNITY FUND INCOME		1,220			-		1,220			247			221			-		8			-			-			197			323			(143	)		-			1,795			784			1,576

FEE INCOME
Asset and property management fees		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Priority distributions		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Transactional fees		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Provision for income taxes		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-

FEE INCOME		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-

PROMOTE, RCP AND OTHER INCOME
Equity in earnings from RCP investments		-			-		-			-			-			-		(30	)		-			(5	)		-			-			177			35			-			-			30
Promote income - RCP		-			-		-			-			-			-		-			(6	)		-			-			-			-			-			-			-			(6	)
Promote income - Fund capital transactions		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Equity in earnings of unconsolidated properties		-			-		-			-			-			-		-			-			-			368			74			-			-			(537	)		(107	)		(33	)
Receipt of forfeited deposit		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Lease termination income		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Gain on extinguishment of debt		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Gain from bargain purchase		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Provision for income taxes		(33	)		-		(33	)		(7	)		(6	)		-		-			-			-			-			-			-			-			195			39			27

PROMOTE, RCP AND OTHER INCOME		(33	)		-		(33	)		(7	)		(6	)		-		(30	)		(6	)		(5	)		368			74			177			35			(342	)		(68	)		17

GENERAL AND ADMINISTRATIVE		(32	)		-		(32	)		(6	)		(6	)		-		(7	)		(1	)		(1	)		5			1			(7	)		(1	)		(78	)		(16	)		(31	)

Depreciation and amortization		(898	)		-		(898	)		(180	)		(160	)		-		-			-			-			(2,391	)		(478	)		-			-			(2,294	)		(457	)		(1,274	)
FAS 141 amortization		(3	)		-		(3	)		(1	)		(1	)		-		-			-			-			(69	)		(14	)		-			-			(219	)		(44	)		(59	)
Gain on sale of properties		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Income before noncontrolling interest		254			-		254			54			49			-		(29	)		(7	)		(7	)		(1,890	)		(94	)		27			34			(1,138	)		199			229

Noncontrolling interest - OP		-			-		-			-			-			-		-			-			-			-			-			-			-			-			-			-
Noncontrolling interests		-			-		-			-			-			-		-			-			-			153			31			-			-			12			2			33

NET INCOME	$	254		$	-	$	254		$	54		$	49		$	-	$	(29	)	$	(7	)	$	(7	)	$	(1,737	)	$	(63	)	$	27		$	34		$	(1,126	)	$	201		$	262

	1 Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The Company's investments in consolidated and unconsolidated joint ventures are reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items. In total, net income agrees with net income as reported in the Company's Form 10Q's and 10K for the corresponding periods. The Company currently invests in Funds I. II & III and Mervyn's which are consolidated with the Company's financial statements.
	2 Funds I, II & III and the Mervyn's investments pay various fees to the Company. As it is the recipient of such fees, the Company does not recognize its pro-rata share of these expenses.
	3 The 25% noncontrolling interest in the Kroger/Safeway Portfolio has been adjusted directly in each of the income statement line items.

Page 8

Reporting Supplement
September 30, 2010

Funds from Operations ("FFO") 1		2010												2009

		Current			Current			Previous			Previous			Historic			Historic
		Year-to-Date			Quarter			Quarter			Quarter			Year-to-Date			Quarter

		Period ended			3 months ended			3 months ended			3 months ended			Period ended			3 months ended
Funds from operations ("FFO"):	Notes	September 30, 2010			September 30, 2010			June 30, 2009			March 31, 2010			September 30, 2009			September 30, 2009

Net Income		$	23,045		$	5,117		$	12,798		$	5,130		$	24,741		$	7,307
Add back:
Depreciation of real estate and amortization of leasing costs:
(net of noncontrolling interest share)
Consolidated affiliates			13,757			4,967			4,202			4,588			14,239			5,441
Unconsolidated affiliates			1,187			354			475			358			1,232			494
(Gain) loss on sale of properties (net of noncontrolling interest share)
Consolidated affiliates			-			-			-			-			(929	)		-
Unconsolidated affiliates			-			-			-			-			-			-
Income attributable to noncontrolling interests' share in Operating Partnership			309			64			160			85			344			133
Extraordinary item (net of noncontrolling interests' share and income taxes)			-			-			-			-			-			-
Distributions on Preferred OP Units	2		14			5			5			4			14			5
FFO		$	38,312		$	10,507		$	17,640		$	10,165		$	39,641		$	13,380

Adjusted Funds from operations ("AFFO"):
Diluted FFO		$	38,312		$	10,507		$	17,640		$	10,165		$	39,641		$	13,380
Straight line rent, net			(652	)		(138	)		(221	)		(293	)		89			135
Non real estate depreciation			371			115			114			142			539			177
Amortization of finance costs			860			282			249			329			885			292
Amortization of cost of management contracts			282			104			104			74			190			81
Tenant improvements			(2,762	)		(1,054	)		(478	)		(1,230	)		(1,588	)		(541	)
Leasing commissions			(521	)		(126	)		(294	)		(101	)		(452	)		(193	)
Capital expenditures			-			-			-			-			(880	)		(586	)
Gain from bargain purchase			(6,383	)		-			(6,383	)		-			-			-
Gain on extinguishment of debt			-			-			-			-			(7,056	)		(11	)

AFFO		$	29,507		$	9,690		$	10,731		$	9,086		$	31,368		$	12,734

Funds Available for Distribution ("FAD")
AFFO		$	29,507		$	9,690		$	10,731		$	9,086		$	31,368		$	12,734
Scheduled principal repayments			(1,555	)		(525	)		(511	)		(519	)		(1,166	)		(390	)

FAD		$	27,952		$	9,165		$	10,220		$	8,567		$	30,202		$	12,344

Total weighted average shares and OP Units:
Basic			40,602			40,643			40,607			40,581			38,088			40,359
Diluted			40,841			40,905			40,844			40,776			38,301			40,641

FFO per share:
FFO per share - Basic		$	0.94		$	0.26		$	0.43		$	0.25		$	1.04		$	0.33
FFO per share - Diluted		$	0.94		$	0.26		$	0.43		$	0.25		$	1.03		$	0.33

AFFO per share - Basic		$	0.73		$	0.24		$	0.26		$	0.22		$	0.82		$	0.32
AFFO per share - Diluted		$	0.72		$	0.24		$	0.26		$	0.22		$	0.82		$	0.31

FAD per share - Basic		$	0.69		$	0.23		$	0.25		$	0.21		$	0.79		$	0.31
FAD per share - Diluted		$	0.68		$	0.22		$	0.25		$	0.21		$	0.79		$	0.30


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.

Page 9

Reporting Supplement September 30, 2010 Income Statements - EBITDA Current Quarter and Year-to-Date

(in thousands)
	Year-to-Date Period ended September 30, 2010																		Current Quarter 3 months ended September 30, 2010
	Core Retail										Opportunity Funds					Total			Core Retail										Opportunity Funds					Total
	Wholly Owned			Joint Ventures		Total Continuing Operations			Discontinued Operations		Continuing Operations				Discontinued				Wholly Owned			Joint Ventures		Total Continuing Operations			Discontinued Operations		Continuing Operations			Discontinued Operations
NET INCOME	$	15,502		$	642	$	16,144		$	-	$	6,901		$	-	$	23,045		$	4,613		$	242	$	4,855		$	-	$	262		$	-	$	5,117

Add back:
Depreciation and amortization		11,608			1,223		12,831			-		3,480			-		16,311			4,145			366		4,511			-		1,275			-		5,786
FAS 141 amortization		(81	)		-		(81	)		-		181			-		100			(29	)		-		(29	)		-		59			-		30
Interest expense		12,501			2,784		15,285			-		2,682			-		17,967			4,173			938		5,111			-		930			-		6,041
FAS 141 interest		(15	)		-		(15	)		-		-			-		(15	)		(5	)		-		(5	)		-		-			-		(5	)
Gain on sale of properties		-			-		-			-		-			-		-			-			-		-			-		-			-		-
Provision for income taxes		1,968			1		1,969			-		(11	)		-		1,958			947			-		947			-		(27	)		-		920
Gain from bargain purchase		-			-		-			-		(6,383	)		-		(6,383	)		-			-		-			-		-			-		-
Noncontrolling interest - OP		321			-		321			-		-			-		321			68			-		68			-		-			-		68
Noncontrolling interests		-			-		-			-		(89	)		-		(89	)		-			-		-			-		(33	)		-		(33	)

EBIDTA	$	41,804		$	4,650	$	46,454		$	-	$	6,761		$	-	$	53,215		$	13,912		$	1,546	$	15,458		$	-	$	2,466		$	-	$	17,924

Page 10

Reporting Supplement September 30, 2010

Core Portfolio
Net Operating Income (NOI) - Same Property Performance 1	Quarter									Year-to-Date
(in thousands)	Current			Historical			Growth in Same Property NOI - Continuing Operations Favorable (unfavorable)			Current			Historical			Growth in Same Property NOI - Continuing Operations Favorable (unfavorable)

	Three			Three
	months ended			months ended						Period ended			Period ended
	September 30,			September 30,						September 30,			September 30,
Reconciliation of total NOI to same property NOI:	2010			2009						2010			2009

NOI - Retail properties	$	11,938		$	12,324					$	35,754		$	36,708
NOI - Discontinued Operations		-			31						-			68

Total NOI		11,938			12,355						35,754			36,776

NOI - Properties in redevelopment		(819	)		(1,150	)					(2,265	)		(2,953	)
NOI - Discontinued Operations		-			(31	)					-			(68	)

Total	$	11,119		$	11,174			-0.5	%	$	33,489		$	33,755			-0.8	%


Same property NOI by revenues/expenses:


Revenues	$	15,582		$	15,450			0.9	%	$	47,164		$	48,242			-2.2	%
Expenses		4,463			4,276			-4.4	%		13,676			14,487			5.6	%

Total Core Portfolio	$	11,119		$	11,174			-0.5	%	$	33,488		$	33,755			-0.8	%


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

Page 11

Reporting Supplement
September 30, 2010

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

	Fund I		Fund II		Fund III		Other		Total
Year-to-Date period ended September 30, 2010
Asset and property management fees and priority distributions	$	328	$	3,111	$	4,860	$	779	$	9,078
Transactional fees		41		2,716		592		404		3,753
Total management fees and priority distributions	$	369	$	5,827	$	5,452	$	1,183	$	12,831

	Fund I		Fund II		Fund III		Other		Total
Current quarter ended September 30, 2010
Asset and property management fees and priority distributions	$	108	$	1,049	$	1,605	$	246	$	3,008
Transactional fees		25		1,103		295		100		1,523
Total management fees and priority distributions	$	133	$	2,152	$	1,900	$	346	$	4,531


	Fund I		Fund II		Fund III		Other		Total
Prior Quarter ended June 30, 2010
Asset and property management fees and priority distributions	$	110	$	1,045	$	1,647	$	305	$	3,107
Transactional fees		13		970		108		132		1,223
Total management fees and priority distributions	$	123	$	2,015	$	1,755	$	437	$	4,330


	Fund I		Fund II		Fund III		Other		Total
Prior Quarter ended March 31, 2010
Asset and property management fees and priority distributions	$	110	$	1,017	$	1,608	$	228	$	2,963
Transactional fees		3		643		189		172		1,007
Total management fees and priority distributions	$	113	$	1,660	$	1,797	$	400	$	3,970

Page 12

Reporting Supplement
September 30, 2010

2010 Guidance - Highlights
(in millions except per share amounts, all per share amounts are fully diluted)			Current			Previous
			2010 Guidance			2010 Guidance
Overall:	Notes		Low/High			Low/High			2009 Actual

Fully diluted Common Shares and OP Units				41,000			41,000			38,900

Full year Funds from Operations ("FFO") per share			$	1.20 to $1.25		$	1.20 to $1.25		$	1.28

Earnings per Share ("EPS")			$	0.71 to $0.76		$	0.71 to $0.76		$	0.75

FFO Components:


Core and pro-rata share of opportunity Fund ("Fund") portfolio income		1	$	48.0 to $48.5		$	48.5 to $49.5		$	44.0

Asset and property management fee income, net of TRS taxes			$	11.0		$	11.0		$	10.4

Transactional fee income, net of TRS taxes			$	6.5 to $7.0		$	6.0 to $7.0		$	7.1

Promote, RCP and other income, net of TRS taxes			$	0 to $1.0		$	0		$	11.8

Gain on bargain purchase			$	6.4		$	6.4		$	0

General and administrative expense			$	(22.5	)	$	(22.5	)	$	(23.7	)

Total			$	49.4 to $51.4		$	49.4 to $51.4		$	49.6




1 Includes additional interest on the Company's convertible debt pursuant to
ASC Topic 470-20 "Debt with Conversion and Other Options" as follows:			$	1.0		$	1.0		$	1.3

Page 13

Reporting Supplement
September 30, 2010
Net Asset Valuation Information	Notes		Core		Fund I					Fund II							Fund III
(in thousands)							AKR pro-rata share					AKR pro-rata share							AKR pro-rata share
					Fund Level		%	$		Fund Level		%			$		Fund Level		%			$
Quarterly NOI
Operating properties		1	$	11,938		--				$	167		20.00	%	$	33	$	2,090		19.91	%	$	416
Development Portfolio				-
Construction complete - Stabilized											2,091					418		-					-
Construction complete - Pre-stabilized											1,805					361		-					-
Storage portfolio				-							10					2		3,045					606
Total			$	11,938						$	4,073				$	815	$	5,135				$	1,022


Cost to Date
Construction complete		2								$	308,700				$	61,740	$	-				$	-
Under construction		2									67,600					13,520		18,000					3,583
In-design		2									111,500					22,300		22,800					4,538
Storage portfolio											-					-		185,800					36,983


Costs to Complete
Construction complete (primarily pre-stabilized)		2								$	19,600				$	3,920	$	-				$	-
Under construction		2									20,000					4,000		7,400					1,473
In-design		2									121,600					24,320		-					-


Annual NOI Upon Stabilization (Mid-Point of Range)
Construction complete										$	27,906				$	5,581	$	-				$	-
Storage portfolio											-					-		15,793					3,144
Under construction											7,446					1,489		2,159					430


Debt			$	340,998	$	9,800				$	294,128				$	56,426	$	244,537				$	48,250


Gross asset value		1				46,800
Net Asset Value					$	37,000	37.78%	$	13,979

Notes:
1	It is not recommended to apply a capitalization rate to current Fund I NOI as this NOI declines in future years
	due primarily to the structure of the Kroger/Safeway Portfolio leases. Fund I value is based on property appraisals.

	Pro-rata share is 20% (AKR promote) + 22% x 80% ( AKR remaining share after promote) = 37.78%
	Total future promote is $7,120 ($35,600 x 20%)

2	See detail on pages 25 and 26 of this supplement

Page 14

QUARTERLY SUPPLEMENTAL DISCLOSURE
September 30, 2010
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
ASSETS
Real estate
Land	$	200,354		$	(93,632	)	$	6,654		$	113,376
Buildings and improvements		855,333			(386,508	)		47,904			516,729
Construction in progress		2,842			(1,169	)		-			1,673
		1,058,529			(481,309	)		54,558			631,778
Less: accumulated depreciation		(214,909	)		48,389			(9,502	)		(176,022	)
Net real estate		843,620			(432,920	)		45,056			455,756

Net real estate under development		314,565			(236,761	)		-			77,804

Cash and cash equivalents		110,703			(14,019	)		2,017			98,701
Cash in escrow		29,559			(19,616	)		543			10,486
Investments in and advances to unconsolidated affiliates		16,095			(10,161	)		(1,623	)		4,312
Rents receivable, net		4,905			(1,381	)		(224	)		3,300
Straight-line rents receivable, net		13,051			(5,485	)		1,333			8,899
Intercompany		-			-			-			-
Notes Receivable		87,600			(8,403	)		-			79,197
Preferred equity investment		-			-			-			-
Deferred charges, net		28,098			(18,188	)		776			10,686
Prepaid expenses and other assets		23,025			39,104			491			62,620
Acquired lease intangibles		19,527			(9,978	)		3			9,552
Assets of discontinued operations		-			-			-			-

Total Assets	$	1,490,748		$	(717,808	)	$	48,372		$	821,313

LIABILITIES AND SHAREHOLDERS' EQUITY

Mortgage notes payable	$	783,390		$	(449,816	)	$	67,119		$	400,694
Notes payable		48,684			-			-			48,684
Valuation of debt at acquisition, net of amortization		77			(31	)		1,027			1,073
Acquired lease intangibles		5,992			(2,517	)		-			3,475
Accounts payable and accrued expenses		31,102			(7,115	)		427			24,414
Dividends and distributions payable		7,427			-			-			7,427
Due to related parties		-			-			-			-
Share of losses in excess of inv. in unconsolidated affiliates		20,802			-			(20,802	)		-
Other liabilities		19,434			(7,597	)		601			12,438
Liabilities of discontinued operations		-			-			-			-
Total liabilities		916,908			(467,076	)		48,372			498,205


Shareholders' equity:
Common shares		40			-			-			40
Additional paid-in capital		303,192			-			-			303,192
Accumulated other comprehensive income		(3,366	)		-			-			(3,366	)
Retained earnings		17,449			-			-			17,449
Total controlling interest		317,315			-			-			317,315
Non-controlling interest in subsidiary		256,525			(250,732	)		-			5,793
Total shareholders' equity		573,840			(250,732	)		-			323,108

Total Liabilities and Shareholders' Equity	$	1,490,748		$	(717,808	)	$	48,372		$	821,313

Notes


1 The interim consolidated balance sheet is unaudited, although it reflect all
adjustments, which in the opinion of management, are necessary for the fair
presentation of the consolidated balance sheet for the interim period.

2 The Company currently invests in Funds I, II & III and Mervyns I & II which
are consolidated with the Company's financial statements. To provide
investors with supplemental information, the Company's investments in these
joint ventures are reflected above on a pro-rata basis by calculating its
ownership percentage for each of the above asset and liability line items.
Similarly, the above presentation also includes the Company's share of
assets and liabilities for unconsolidated investments which are accounted
for under the equity method of accounting pursuant to GAAP.

3 The components of Prepaid expenses and other assets are as follows:
Due from Fund Investors		$ 47,617
Accrued interest on Notes Receivable		6,801
Prepaid expenses		5,131
Income Tax receivables		540
Corporate assets		1,211
Restricted cash		533
Other		787
Total	$	62,620

4 The components of Net real estate under development are as follows:
Fund II	$	249,452
Fund III		41,126
Total Opportunity Funds		290,578
Core Portfolio		23,987
Total	$	314,565

Page 15

Reporting Supplement
September 30, 2010

Notes Receivable 1
(amounts in thousands)



	Balance at June 30,		Third			Balance at September 30, 2010						Stated			Effective					Extension				Underlying third-party
	2010		Quarter					Accrued				Interest			Interest			Maturity		options				first mortgage
Investment	Principal		Activity			Principal		Interest		Total		rate			rate 2			date		(years)		Amount 3		Maturity dates

2008 Investments


Georgetown - 5 property portfolio	$	8,000	$	-		$	8,000	$	462	$	8,462		9.75	%		10.23	%		11/2010	2 x 1 year			9,596	2012 and 2020
Georgetown - 18 property portfolio 4		40,000		(40,000	)		-		-		-		-			-					-
Sub-total - Georgetown		48,000		(40,000	)		8,000		462		8,462		9.75	%		10.23	%						9,596

72nd Street		43,727		1,469			45,196		5,507		50,703		13.00	%		20.85	%		7/2011	1 year			185,000	2011 w/ 1 year extension

Total 2008 investments		91,727		(38,531	)		53,196		5,969		59,165		12.51	%		19.25	%						194,596


Other Investments
First mortgage and other notes		8,854		-			8,854		443		9,297		14.38	%		14.41	%		2010/2011	1 six mo.			n/a	n/a
Mezzanine notes		14,987		72			15,059		279		15,338		14.52	%		15.52	%		2011		-		272,289	2011 thru 2019

Total other investments		23,841		72			23,913		722		24,635		14.47	%		15.11	%

Total notes receivable	$	115,568	$	(38,459	)	$	77,109	$	6,691	$	83,800		13.12	%		17.97	%					$	466,885

1 The above activity does not include a $10,000 Fund III first mortgage investment and other non-real estate loans of $491.

2 Inclusive of upfront points and exit fees.

3 The first mortgage amount for 72nd street represents the construction loan when fully drawn.

4 During September 2010, the Company received a payment of $49,400, representing the entire principal amount of the loan and accrued interest.

Page 16

Reporting Supplement
September 30, 2010

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


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

Fixed-Rate Debt 1	$	361,154			5.8	%	$	29,958		6.1	%	$	391,112		5.8	%		87	%	$	128,735	$	(67,118	)	$	452,729
Variable-Rate Debt 1		(20,156	)		1.6	%		78,421		2.3	%		58,265		3.5	%		13	%		321,080		-			379,345

Total	$	340,998			6.0	%	$	108,380		3.9	%	$	449,378		5.5	%		100	%	$	449,815	$	(67,118	)		832,074

FAS 141 purchase price debt allocation																										77
Total debt as reported																									$	832,151



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.

Page 17

Reporting Supplement
September 30, 2010

Debt Analysis
(amounts in thousands)
				Principal			Acadia's Pro-rata
				Balance at			share							Interest			Maturity	Extension
Property	Notes		Entity	September 30, 2010			Percent			Amount				Rate			Date	Options

CORE PORTFOLIO

Fixed-Rate Debt
Acadia Realty Trust		7	Acadia	$	48,684			100.0	%	$	48,684				6.03	%	12/20/2011	None
Chestnut Hill			Acadia		9,338			100.0	%		9,338				5.45	%	6/11/2013	None
Clark Diversey			Acadia		4,657			100.0	%		4,657				6.35	%	7/1/2014	None
New Loudon Center			Acadia		14,177			100.0	%		14,177				5.64	%	9/6/2014	None
Crossroads Shopping Center			Crossroads JV		61,605			49.0	%		30,185				5.37	%	12/1/2014	None
Crescent Plaza			Acadia		17,600			100.0	%		17,600				4.98	%	9/6/2015	None
Pacesetter Park Shopping Center			Acadia		12,179			100.0	%		12,179				5.12	%	11/6/2015	None
Elmwood Park Shopping Center			Acadia		34,310			100.0	%		34,310				5.53	%	1/1/2016	None
Gateway Shopping Center			Acadia		20,500			100.0	%		20,500				5.44	%	3/1/2016	None
Acadia Brandywine Subsidiary			Brandywine JV		61,375			22.2	%		13,639				5.99	%	7/1/2016	None
Acadia Brandywine Town Center			Brandywine JV		31,550			22.2	%		7,011				5.99	%	7/1/2016	None
Acadia Market Square Shopping Center			Brandywine JV		24,375			22.2	%		5,417				5.99	%	7/1/2016	None
Acadia Brandywine Condominium			Brandywine JV		22,650			22.2	%		5,033				5.99	%	7/1/2016	None
Acadia Brandywine Holdings			Brandywine JV		26,250			22.2	%		5,833				5.99	%	7/1/2016	None
Walnut Hill Plaza			Acadia		23,500			100.0	%		23,500				6.06	%	10/1/2016	None
239 Greenwich Avenue			Acadia		26,000			75.0	%		19,500				5.42	%	2/11/2017	None
Merrillville Plaza			Acadia		26,250			100.0	%		26,250				5.88	%	8/1/2017	None
Boonton			Acadia		8,072			60.0	%		4,843				6.40	%	11/1/2032	None
Interest rate swaps		1	Acadia		58,498			100.0	%		58,498				6.09	%	Various

Sub-Total Fixed-Rate Debt					531,570						361,154				5.76	%

Variable-Rate Debt


Various		2	Acadia		15,000			100.0	%		15,000		Libor +		125		12/1/2010	2 x 12 mos.
Branch Plaza			Acadia		13,994			100.0	%		13,994		Libor +		130		12/1/2011	1 x 12 mos.
Village Commons Shopping Center			Acadia		9,348			100.0	%		9,348		Libor +		140		6/29/2012
Interest rate swaps		1	Acadia		(58,498	)		100.0	%		(58,498	)

Sub-Total Variable-Rate Debt					(20,156	)					(20,156	)	Libor +		130

Total Core Portfolio Debt				$	511,414					$	340,998				6.00	%

Page 18

Reporting Supplement
September 30, 2010

Debt Analysis
(amounts in thousands)
				Principal			Acadia's Pro-rata
				Balance at			share							Interest			Maturity	Extension
Property	Notes		Entity	September 30, 2010			Percent			Amount				Rate			Date	Options

OPPORTUNITY FUNDS

Fixed-Rate Debt
Storage Post - Various		4	Fund III	$	41,500			18.9	%	$	7,846				5.30	%	3/16/2011	2 x 12 mos.
CityPoint			Fund II		20,000			18.8	%		3,766				7.25	%	11/1/2014	None
216th Street		3	Fund II		25,500			19.8	%		5,054				5.80	%	10/1/2017	None
Pelham Manor		3	Fund II		31,621			19.8	%		6,267				7.38	%	1/1/2020	None
Atlantic Avenue			Fund II		11,543			13.3	%		1,539				7.34	%	1/1/2020	None
Interest rate swaps		1	Fund I & Fund II		18,800			29.2	%		5,486				4.78	%	Various

Sub-Total Fixed-Rate Debt					148,964						29,958				6.07	%

Variable-Rate Debt

Tarrytown Shopping Center			Fund I		9,800			37.8	%		3,702		Libor +		165		10/30/2010	2 x 12 mos.
Acadia Strategic Opportunity Fund II, LLC		5	Fund II		40,000			20.0	%		8,000		Libor +		325		3/1/2011	None
Liberty Avenue			Fund II		10,000			19.8	%		1,982		Libor +		325		9/1/2011	1 x 12 mos.
Fordham Plaza		3	Fund II		86,000			19.8	%		17,045		Libor +		350		10/4/2011	1 x 12 mos.
Acadia Strategic Opportunity Fund III, LLC		6	Fund III		156,450			19.9	%		31,134		Libor +		60		10/9/2011	None
Canarsie Plaza			Fund II		19,914			15.9	%		3,157		Libor +		400		1/12/2012	1 x 36 mos.
Cortlandt Towne Center			Fund III		46,587			19.9	%		9,271		Libor +		400		7/29/2012	2 x 12 mos.
161st Street		3	Fund II		28,900			19.8	%		5,728		Libor +		400		4/1/2013	None
CityPoint			Fund II		20,650			18.8	%		3,888		Libor +		250		8/12/2013	2 x 12 mos.
Interest rate swaps		1	Fund I & Fund II		(18,800	)		29.2	%		(5,486	)

Sub-Total Variable-Rate Debt					399,501						78,421		Libor +		207

Total Opportunity Funds Portfolio Debt				$	548,465					$	108,379				3.85	%

Page 19

Reporting Supplement
September 30, 2010
Debt Analysis - Notes





1 The Company has hedged a portion of it's variable-rate debt with variable to fixed-rate swap agreements as follows:
			Average						Maturity
	Notional principal		Swap Rate			All-in-rate			Date

	$	10,583		4.90	%		7.11	%	10/1/2011
		7,915		5.14	%		7.35	%	3/1/2012
		15,000		3.79	%		6.00	%	11/30/2012
		15,000		3.41	%		5.62	%	11/30/2012
		10,000		2.65	%		4.86	%	11/30/2012
Core Portfolio	$	58,498		3.88	%		6.09	%

Opportunity Funds	$	9,800		4.47	%		6.68	%	10/29/2010
		9,000		0.50	%		2.71	%	9/1/2011
	$	18,800		2.57	%		4.78	%

Total Core Portfolio and Opportunity Funds	$	77,298		3.56	%		5.77	%

2 This is a revolving facility for up to $64,498 and is collateralized by Bloomfield Town Square, Hobson West Plaza, Marketplace of Absecon,

Abington Towne Center, Methuen Shopping Center and Town Line Plaza. This was paid down by an additional $14,000 subsequent to September 30, 2010.

3 Fund 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%.

4 The loan is collateralized by Storage Post locations - Linden, Webster Avenue, Jersey City, Fordham Road and Lawrence.

5 This is a line of credit for up to $40,000.

6 This is a line of credit with a capacity of $221,000.

7 Convertible note balance pursuant to ASC Topic 470-20. The actual face amount of the convertible notes at September 30, 2010 is $50,015.

While the interest rate on the convertible notes is 3.75%, the effective fair value interest rate is 6.03%.

Page 20

Reporting Supplement
September 30, 2010

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

Core Portfolio								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

2010	$	741	$	15,000	$	15,741		$	603	$	15,000	$	15,603			1.51	%		n/a			1.51	%
20111		3,056		63,720		66,776			2,492		63,720		66,212			3.28	%		3.75	%		1.56	%
2012		3,212		9,052		12,264			2,621		9,052		11,673			1.66	%		n/a			1.66	%
2013		3,390		8,777		12,167			2,760		8,777		11,537			5.45	%		5.45	%		n/a
2014		3,309		74,406		77,715			2,644		45,279		47,923			5.47	%		5.47	%		n/a
Thereafter		9,184		318,898		328,082			6,513		182,868		189,381			5.78	%		5.78	%		n/a
	$	22,892	$	489,853	$	512,745		$	17,633	$	324,696	$	342,329

Less: additional convertible notes balance						(1,331	)						(1,331	)
Balance per Portfolio Debt Detail					$	511,414						$	340,998

													Weighted Average Interest Rate of Pro-rata Share of Maturing Debt
Opportunity Funds
													Total Debt			Fixed-Rate Debt			Variable-Rate Debt

2010	$	209	$	9,800	$	10,009	$	42	$	3,702	$	3,744		1.91	%		n/a			1.91	%
2011		870		333,950		334,820		173		66,007		66,180		2.87	%		5.30	%		2.53	%
2012		730		65,692		66,422		535		11,877		12,412		4.94	%		n/a			4.94	%
2013		503		49,550		50,053		100		9,616		9,716		3.63	%		n/a			3.63	%
2014		542		20,000		20,542		107		3,766		3,873		7.25	%		n/a			7.25	%
Thereafter		3,694		62,925		66,619		712		11,742		12,454		6.73	%		6.73	%		n/a
	$	6,548	$	541,917	$	548,465	$	1,669	$	106,710	$	108,379

1 Includes additional convertible notes balance of $1,331 maturing in 2011.

Page 21

Reporting Supplement
September 30, 2010

Future Debt Maturities - Including Extension Options
(in thousands)

Core Portfolio								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

2010	$	741	$	-	$	741		$	603	$	-	$	603			n/a			n/a			n/a
20111		3,077		50,015		53,092			2,513		50,015		52,528			3.75	%		3.75	%		n/a
2012		3,459		37,489		40,948			2,868		37,489		40,357			1.56	%		n/a			1.56	%
2013		3,390		8,777		12,167			2,760		8,777		11,537			5.45	%		5.45	%		n/a
2014		3,309		74,406		77,715			2,644		45,279		47,923			5.47	%		5.47	%		n/a
Thereafter		9,184		318,898		328,082			6,513		182,868		189,381			5.78	%		5.78	%		n/a
	$	23,160	$	489,585	$	512,745		$	17,901	$	324,428	$	342,329

Less: additional convertible notes balance						(1,331	)						(1,331	)
Balance per Portfolio Debt Detail					$	511,414						$	340,998


															Weighted Average Interest Rate of Pro-rata Share of Maturing Debt
Opportunity Funds
															Total Debt			Fixed-Rate Debt			Variable-Rate Debt

2010	$	209	$	-	$	209		$	42	$	-	$	42			n/a			n/a			n/a
2011		869		196,450		197,319			173		39,134		39,307			1.40	%		n/a			1.40	%
2012		1,215		105,800		107,015			230		22,729		22,959			4.57	%		n/a			4.57	%
2013		1,344		70,400		71,744			254		13,574		13,828			4.87	%		5.30	%		4.26	%
2014		1,210		64,749		65,959			225		12,671		12,896			7.25	%		n/a			7.25	%
Thereafter		3,722		102,497		106,219			717		18,630		19,347			4.69	%		6.73	%		2.76	%
	$	8,569	$	539,896	$	548,465		$	1,641	$	106,738	$	108,379

1 Includes additional convertible notes balance of $1,331 maturing in 2011.

Page 22

Reporting Supplement
September 30, 2010
Selected Operating Ratios		Three months ended September 30,						Nine months ended September 30,
		2010			2009			2010			2009
Coverage Ratios	1
Interest Coverage Ratio
EBIDTA	2	$	17,924		$	19,835		$	53,215		$	54,852
Divided by Interest expense			6,041			6,104			17,967			18,762
			2.97	x		3.25	x		2.96	x		2.92	x
Fixed Charge Coverage Ratio
EBIDTA		$	17,924		$	19,835		$	53,215		$	54,852
Divided by ( Interest expense			6,041			6,104			17,967			18,762
+ Preferred Dividends)	3		5			5			14			14
			2.96	x		3.25	x		2.96	x		2.92	x
Debt Service Coverage Ratio
EBIDTA		$	17,924		$	19,835		$	53,215		$	54,852
Divided by ( Interest expense			6,041			6,104			17,967			18,762
+ Principal Amortization)			525			390			1,555			1,166
			2.73	x		3.05	x		2.73	x		2.75	x
Payout Ratios
FFO Payout Ratio
Dividends (Shares) & Distributions (O.P. Units) paid		$	7,427		$	7,362		$	22,276		$	22,099
FFO			10,507			13,380			38,312			39,641
			71	%		55	%		58	%		56	%
AFFO Payout Ratio
Dividends (Shares) & Distributions (O.P. Units) paid		$	7,427		$	7,362		$	22,276		$	22,099
AFFO			9,690			12,734			29,507			31,368
			77	%		58	%		75	%		70	%
FAD Payout Ratio
Dividends (Shares) & Distributions (O.P. Units) paid		$	7,427		$	7,362		$	22,276		$	22,099
FAD			9,165			12,344			27,952			30,202
			81	%		60	%		80	%		73	%
Leverage Ratios
Debt/Total Market Capitalization
Debt	4	$	449,378
Total Market Capitalization			1,221,501
			37	%

Debt + Preferred Equity (Preferred O.P. Units)		$	449,854
Total Market Capitalization			1,221,501
			37	%
Debt/EBIDTA - Core Portfolio
Debt		$	340,998
EBIDTA (Annualized)			61,831
			5.52	x
Net Debt/EBIDTA - Core Portfolio	5
Debt		$	250,594
EBIDTA (Annualized)			61,831
			4.05	x
Debt/EBIDTA - Core Portfolio and Opportunity Funds
Debt		$	449,378
EBIDTA (Annualized)			71,695
			6.27	x
Net Debt/EBIDTA - Core Portfolio and Opportunity Funds	6
Debt		$	350,677
EBIDTA (Annualized)			71,695
			4.89	x
Debt Yield - Core Portfolio
NOI (Annualized)		$	47,752
Debt			340,998
			14.0	%
Net Debt Yield - Core Portfolio	4
NOI (Annualized)		$	47,752
Debt			250,594
			19.1	%
Debt Yield - Core Portfolio and Opportunity Funds
NOI (Annualized)		$	56,548
Debt			449,378
			12.6	%
Net Debt Yield - Core Portfolio and Opportunity Funds	5
NOI (Annualized)		$	56,548
Debt			350,677
			16.1	%

Notes:

1 Quarterly results for 2010 and 2009 are unaudited, although they reflect all adjustments,

which in the opinion of management, are necessary for a fair presentation of operating

results for the interim periods. The coverage ratios include the Company's pro-rata share

of EBIDTA, interest expense and principal amortization related to both the Company's

consolidated and unconsolidated investments in joint ventures.

2 2010 EBITDA excludes the gain from bargain purchase and 2009 EBITDA excludes

gains from the extinguishment of debt.

3 Represents preferred distributions on Preferred Operating partnership Units.

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

debt and principal amortization.

5 Reflects debt net of the current Core Portfolio cash balance as of September 30, 2010.

6 Reflects debt net of the current Core Portfolio and pro-rata share of the Opportunity Funds

cash balance as of September 30, 2010.

Page 23

Reporting Supplement

September 30, 2010

Overview of Acadia Strategic Opportunity Funds

FUND I

FUND II

FUND III

Item

Description

Date formed

September 2001

June 2004

May 2007

Capital commitment

$90 million

$300 million

$503 million

Funding

Fully funded

$249.6 million funded through September 30, 2010

$96.5 million funded through September 30, 2010

Partnership structure

Equity Contribution:

22.22% - Acadia

20% - Acadia

77.78% - Four institutional investors

80% - Six institutional investors

80% - 14 institutional investors

Cash flow distribution:

22.22% - Acadia

20% - Acadia

77.78% - Four institutional investors

80% - Six institutional investors

80% - 14 institutional investors

Promote:

20% to Acadia once all partners (including

Acadia) have received 9% preferred return and

Acadia) have received 8% preferred return and

Acadia) have received 6% preferred return and

return of equity

Remaining 80% is distributed to all the partners

(including Acadia).

All original capital and accumulated preference

All unfunded capital is anticipated to be used to

The Fund is currently in acquisition phase 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

capital

committed capital

Priority distribution fee equal to 4% of gross

Property management fee equal to 4% of gross

property revenues

Market rate leasing fees

Market rate construction/project management fees

Development fee equal to 3% of total project cost

Page 24

Reporting Supplement
September 30, 2010

New York Urban/Infill: Development costs - Construction Complete
			Estimated		Total cost
		Estimated	square		to date		Estimated		Total		Debt as of
		completion	footage upon		(including		future		project		September 30,
Property	Anchors/Tenants	of Construction	completion		acquisition cost)		cost		cost		2010		% Leased 2

Fund II							($ in millions)
Construction complete
													Retail - 100%
Fordham Place	Sears, Walgreens, Best Buy, 24 Hour Fitness	Completed		276,000	$	123.6	$	9.8	$	133.4	$	86.0	Office - 30%
Pelham Manor Shopping Plaza 1	BJ's Wholesale Club, Petsmart, Storage Post	Completed		320,000		59.1		4.9		64.0		31.6		90	%
216th Street	City of New York Dept of General Services	Completed		60,000		27.7		-		27.7		25.5		100	%
Liberty Avenue 1	CVS, Storage Post	Completed		125,000		15.4		0.1		15.5		10.0		83	%
161st Street 3	Various New York City and State Agencies	To be determined		230,000		61.1		4.5		65.6		28.9		100	%
Atlantic Avenue	Storage Post	Completed		110,000		21.8		0.3		22.1		11.5		-
													Retail - 93%
Total				1,121,000	$	308.7	$	19.6	$	328.3	$	193.5	Office - 76%

1 Fund II acquired a ground lease interest at this property.

2 Percentage leased excludes self storage at Pelham Manor, Liberty Avenue and Atlantic Avenue.

3 161st Street is currently cash flowing at 83% occupancy. The redevelopment plan includes the recapture and conversion of street level office space to retail. Tenant consolidations necessary

to accomplish this plan have already begun. While the tenant consolidations have caused a temporary decline in occupancy, four leases have been signed which will bring occupancy up to 100%.

4 Reconciliation of development costs to the Balance Sheet:

Operating real estate	$	295.7
Net real estate under development		290.6
Gain from bargain purchase		(33.8	)
Canarsie lease termination income		(23.9	)
Total costs to date	$	528.6

Construction completed	$	308.7
Under development		85.6
In design		134.3
Total	$	528.6

Page 25

Reporting Supplement
September 30, 2010

New York Urban/Infill: Development costs - Construction/Design
			Estimated		Total cost
		Estimated	square		to date		Estimated		Total		Debt as of
		completion	footage upon		(including		future		project		September 30,
Property	Anchors/Tenants	of Construction	completion		acquisition cost)		cost		cost		2010		% Leased

Fund II							($ in millions)

Under Construction
Canarsie Plaza 1	BJ's Wholesale Club, Planet Fitness, NYPD	1st half 2011		275,000	$	67.6	$	20.0	$	87.6	$	19.9		83	%
Total Construction

In Design
Sherman Plaza	TBD	TBD	TBD		$	33.1	TBD		TBD		$	-
CityPoint 2	TBD	TBD		550,000		78.4		121.6		200.0		40.6
Total Design				550,000	$	111.5	$	121.6	$	200.0	$	40.6

Fund III

Under Construction
125 Main Street (Westport, CT)	GAP, Brooks Brothers Women	2nd half 2011		26,000	$	18.0	$	7.4	$	25.4	$	-		77	%

In Design
Sheepshead Bay	TBD	TBD	TBD		$	22.8	TBD		TBD		$	-

1 Cost to date is net of lease termination income from Home Depot.

2 Fund II is co-developing CityPoint with P/A Associates and Washington Square Partners. Fund II acquired a ground lease interest at this property. Construction on the

first 50,000 square feet of the project has commenced.

Page 26

Reporting Supplement
September 30, 2010

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		January 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 September 30, 2010

		Years	Invested				Equity
Investor	Investment	acquired	capital		Distributions		Multiple

		2004 through
Mervyns I and Mervyns II	Mervyns	2007	$	32,575	$	47,669		1.5	X

		2006 through
Mervyns II	Albertson’s	2007		23,129		67,184		2.9	X

		2006 through
Fund II and Mervyns II	Other investments 1	2008		6,476		4,954		0.8	X

Total			$	62,180	$	119,807		1.9	X

1 Represents investments in Shopko, Marsh and Rex.

Page 27

QUARTERLY SUPPLEMENTAL DISCLOSURE
September 30, 2010
Core Portfolio Retail Properties - Detail

			Acadia's			Gross Leasable Area						Occupancy									Annualized Base Rent
	Anchors		interest			Anchors		Shops		Total		Anchors			Shops			Total			Anchors		Shops		Total

New York
Connecticut
239 Greenwich Avenue 1	Restoration Hardware, Coach			75.0	%		16,834		-		16,834		100.00	%		-			100.00	%	$	1,429,725	$	-	$	1,429,725

New Jersey
Elmwood Park Shopping Center	Walgreens, Pathmark (A&P)			100.0	%		62,610		86,881		149,491		100.00	%		85.94	%		91.83	%		1,486,006		1,909,447		3,395,453
A & P Shopping Plaza	A&P			60.0	%		49,463		13,445		62,908		100.00	%		53.55	%		90.07	%		950,000		216,305		1,166,305
Total - New Jersey							112,073		100,326		212,399		100.00	%		81.59	%		91.31	%		2,436,006		2,125,752		4,561,758

New York
Village Commons Shopping Center		-		100.0	%		3,984		83,346		87,330		0.00	%		78.31	%		74.74	%		-		2,105,236		2,105,236
Branch Plaza	A&P, CVS			100.0	%		74,050		51,701		125,751		100.00	%		98.50	%		99.38	%		1,264,448		1,396,440		2,660,888
Amboy Center	King Kullen, Duane Reade			100.0	%		46,964		13,126		60,090		100.00	%		100.00	%		100.00	%		1,052,068		551,203		1,603,271
Bartow Avenue		-		100.0	%		-		14,676		14,676		0.00	%		89.49	%		89.49	%		-		439,246		439,246
Pacesetter Park Shopping Center	Stop & Shop			100.0	%		52,052		44,328		96,380		100.00	%		75.65	%		88.80	%		405,346		685,052		1,090,398
LA Fitness	LA Fitness			100.0	%		55,000		-		55,000		100.00	%		-			100.00	%		1,265,000		-		1,265,000
West 54th Street	Stage Deli			100.0	%		4,211		5,482		9,693		100.00	%		100.00	%		100.00	%		1,459,975		1,540,529		3,000,504
East 17th Street	Barnes & Noble			100.0	%		19,622		-		19,622		100.00	%		0.00	%		100.00	%		625,000		-		625,000
Crossroads Shopping Center	Kmart, Waldbaum's (A&P)			49.0	%		210,114		99,373		309,487		100.00	%		76.77	%		92.54	%		2,546,429		3,205,892		5,752,321
Total - New York							465,997		312,032		778,029		99.15	%		82.61	%		92.51	%		8,618,266		9,923,598		18,541,864

Total New York							594,904		412,358		1,007,262		99.33	%		82.36	%		92.38	%		12,483,997		12,049,350		24,533,347


New England

Connecticut
Town Line Plaza 2	Wal-Mart, Stop & Shop			100.0	%		163,159		43,187		206,346		100.00	%		90.60	%		98.03	%		969,144		660,112		1,629,256

Massachusetts
Methuen Shopping Center	Wal-Mart, Market Basket			100.0	%		120,004		10,017		130,021		100.00	%		100.00	%		100.00	%		736,464		222,225		958,689
Crescent Plaza	Home Depot, Shaw's (Supervalu)			100.0	%		156,985		61,156		218,141		100.00	%		69.14	%		91.35	%		1,178,872		432,472		1,611,344
Total - Massachusetts							276,989		71,173		348,162		100.00	%		73.48	%		94.58	%		1,915,336		654,697		2,570,033

New York
	Marshalls, Price Chopper,
New Loudon Center 3	Raymour & Flanigan			100.0	%		251,211		4,615		255,826		73.98	%		100.00	%		74.45	%		1,404,928		126,310		1,531,238

Rhode Island
Walnut Hill Plaza	Sears, Shaw's (Supervalu), CVS			100.0	%		121,892		162,825		284,717		100.00	%		92.56	%		95.75	%		1,005,500		1,427,416		2,432,916

Vermont
The Gateway Shopping Center	Shaw's (Supervalu)			100.0	%		73,184		28,600		101,784		100.00	%		79.08	%		94.12	%		1,353,904		483,538		1,837,442

Total New England							886,435		310,400		1,196,835		92.63	%		86.78	%		91.11	%		6,648,812		3,352,073		10,000,885

General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced.

1 239 Greenwich Avenue contains 16,834 square feet of retail GLA and 21 residential units encompassing 14,434 square feet. Residential activities are not included above.

2 Anchor GLA includes a 97,300 square foot Wal-Mart store which is not owned by the Company. This square footage has been excluded for calculating annualized base rent per square foot.

3 Leased occupancy is 100% with a signed expansion lease with Price Chopper Supermarket and a new Hobby Lobby to be replacing the 65,000 square foot Bonton.

Page 28

QUARTERLY SUPPLEMENTAL DISCLOSURE

September 30, 2010

Core Portfolio Retail Properties - Detail


						Gross Leasable Area						Occupancy									Annualized Base Rent
			Acadia's
	Anchors		interest			Anchors		Shops		Total		Anchors			Shops			Total			Anchors		Shop		Total
Core Portfolio (continued):


Illinois
Hobson West Plaza	Garden Fresh Markets			100.0	%		51,692		47,434		99,126		100.00	%		83.36	%		92.04	%	$	225,436	$	859,572	$	1,085,008
Clark Diversey		-		100.0	%		-		19,265		19,265		-			91.57	%		91.57	%		-		799,766		799,766
Total - Illinois							51,692		66,699		118,391		100.00	%		85.73	%		91.96	%		225,436		1,659,338		1,884,774

Indiana
	JC Penney, Office Max, TJ Maxx,
Merrillville Plaza	K&G Superstore, Pier I			100.0	%		145,778		90,069		235,847		100.00	%		78.14	%		91.65	%		1,633,928		1,191,353		2,825,281

Michigan
	Best Buy, Home Goods, TJ Maxx,
Bloomfield Towne Square	Marshalls, Officemax			100.0	%		154,858		79,237		234,095		100.00	%		94.49	%		98.13	%		1,368,005		1,479,996		2,848,001

Ohio
Mad River Station 1	Babies 'R' Us, Office Depot, Pier I			100.0	%		68,297		57,687		125,984		100.00	%		72.99	%		87.63	%		779,210		618,698		1,397,908

Total Midwest							420,625		293,692		714,317		100.00	%		83.26	%		93.12	%		4,006,579		4,949,385		8,955,964

Mid-Atlantic
New Jersey
Marketplace of Absecon	Rite Aid, Dollar Tree			100.0	%		33,933		70,785		104,718		38.92	%		81.85	%		67.94	%		329,310		754,798		1,084,108
Total - New Jersey							33,933		70,785		104,718		38.92	%		81.85	%		67.94	%		329,310		754,798		1,084,108

Delaware
	Lowes, Target, Bed, Bath & Beyond,
Brandywine Town Center	Dicks Sporting Goods			22.2	%		840,172		34,817		874,989		94.23	%		89.09	%		94.02	%		12,240,016		580,508		12,820,524
Market Square Shopping Center	TJ Maxx, Trader Joe's			22.2	%		42,850		59,197		102,047		100.00	%		100.00	%		100.00	%		671,888		1,775,152		2,447,040
Naamans Road		-		22.2	%		-		19,970		19,970		0.00	%		54.94	%		54.94	%		-		558,340		558,340
Total - Delaware							883,022		113,984		997,006		94.51	%		88.77	%		93.85	%		12,911,904		2,914,000		15,825,904

Pennsylvania
Mark Plaza	Kmart, Redner's Market			100.0	%		157,595		58,806		216,401		100.00	%		28.86	%		80.67	%		652,095		148,200		800,295
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
Route 6 Plaza	Kmart, Rite Aid			100.0	%		146,498		29,021		175,519		100.00	%		100.00	%		100.00	%		806,351		349,179		1,155,530
Chestnut Hill 2				100.0	%		31,420		9,150		40,570		0.00	%		100.00	%		22.55	%		-		325,483		325,483
Abington Towne Center 3	Target, TJ Maxx			100.0	%		184,616		31,753		216,369		100.00	%		94.75	%		99.23	%		270,000		822,080		1,092,080
Total - Pennsylvania							660,097		145,041		805,138		95.24	%		70.01	%		90.69	%		2,371,949		1,797,291		4,169,240

Total Mid-Atlantic							1,577,052		329,810		1,906,862		93.62	%		79.03	%		91.10	%		15,613,163		5,466,089		21,079,252


Total Core Properties							3,479,016		1,346,260		4,825,276		95.11	%		82.76	%		91.67	%	$	38,752,551	$	25,816,897	$	64,569,448


Total Core Properties -
weighted based on ownership interest 4							2,661,050		1,201,545		3,862,595		95.03	%		82.70	%		91.19	%		26,673,562		21,828,861		48,502,423

General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced.

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

2 This consists of two separate buildings.

3 Anchor GLA includes a 157,616 square foot Target store which is not owned by the Company. This square footage has been excluded for calculating annualized base rent per square foot.

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

Page 29

Reporting Supplement
September 30, 2010


Core Portfolio Retail Properties by State - Summary



									Gross Leasable Area						Occupancy									Annualized Base Rent
	Ownership			Percent of			Number of
	%			base rent 1			properties		Anchors 2		Shops		Total		Anchors			Shops			Total			Anchors		Shops		Total



Connecticut		75.0	%		5.6	%		2		179,993		43,187		223,180		100.00	%		90.60	%		98.18	%	$	2,398,869	$	660,112	$	3,058,981

Delaware		22.2	%		7.0	%		3		883,022		113,984		997,006		94.51	%		88.77	%		93.85	%		12,911,904		2,914,000		15,825,904

Illinois		100.0	%		3.9	%		2		51,692		66,699		118,391		100.00	%		85.73	%		91.96	%		225,436		1,659,338		1,884,774

Indiana		100.0	%		5.8	%		1		145,778		90,069		235,847		100.00	%		78.14	%		91.65	%		1,633,928		1,191,353		2,825,281

Massachusetts		100.0	%		5.3	%		2		276,989		71,173		348,162		100.00	%		73.48	%		94.58	%		1,915,336		654,697		2,570,033

Michigan		100.0	%		5.9	%		1		154,858		79,237		234,095		100.00	%		94.49	%		98.13	%		1,368,005		1,479,996		2,848,001

New Jersey		89.8	%		10.7	%		3		146,006		171,111		317,117		85.80	%		81.70	%		83.59	%		2,765,316		2,880,550		5,645,866

New York		84.2	%		35.5	%		10		717,208		316,647		1,033,855		90.33	%		82.86	%		88.04	%		10,023,194		10,049,908		20,073,102

Ohio		100.0	%		2.9	%		1		68,297		57,687		125,984		100.00	%		72.99	%		87.63	%		779,210		618,698		1,397,908

Pennsylvania		100.0	%		8.7	%		5		660,097		145,041		805,138		95.24	%		70.01	%		90.69	%		2,371,949		1,797,291		4,169,240

Rhode Island		100.0	%		5.0	%		1		121,892		162,825		284,717		100.00	%		92.56	%		95.75	%		1,005,500		1,427,416		2,432,916

Vermont		100.0	%		3.8	%		1		73,184		28,600		101,784		100.00	%		79.08	%		94.12	%		1,353,904		483,538		1,837,442

Total - Core Portfolio					100.0	%		32		3,479,016		1,346,260		4,825,276		95.11	%		82.76	%		91.67	%	$	38,752,551	$	25,816,897	$	64,569,448

General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced.

1 The Company's pro-rata share of base rent from joint venture properties has been included for the purpose of calculating percentage of base rent by state.

2 Anchor GLA includes a total of 254,916 square feet which is not owned by the Company. This square footage has been excluded for calculating annualized base rent per square foot.

Page 30

	Reporting Supplement
	September 30, 2010


		Core Portfolio Top Tenants - Ranked by Annualized Base Rent 2



																Percentage of Total
		Number of		Wholly Owned				Joint Ventures 3				Combined				Represented by Retail Tenant
		stores in
	Retail	combined		Total		Annualized Base		Total		Annualized Base		Total		Annualized Base		Total			Annualized Base
Ranking	Tenant	portfolio		GLA		Rent 1		GLA		Rent 1		GLA		Rent 1		Portfolio GLA 2			Rent 1

	A&P		4		140,451	$	2,634,066		18,722	$	246,960		159,173	$	2,881,026		3.6	%		5.5	%
	-- A&P		3		92,678		1,583,060		18,722	$	246,960		111,400		1,830,020		2.5	%		3.5	%
	-- Pathmark		1		47,773		1,051,006		-		-		47,773		1,051,006		1.1	%		2.0	%

	Supervalu (Shaws)		3		175,801		2,420,980		-		-		175,801		2,420,980		4.0	%		4.7	%

	TJX Companies		9		230,627		1,816,973		19,144		344,750		249,771		2,161,723		5.7	%		4.2	%
	-- T.J. Maxx		4		88,200		759,600		6,927		88,189		95,127		847,789		2.2	%		1.6	%
	-- Marshalls		3		102,781		750,116		-		-		102,781		750,116		2.3	%		1.4	%
	-- Homegoods		2		39,646		307,257		12,217		256,561		51,863		563,818		1.2	%		1.1	%

	Sears		4		285,314		1,150,615		49,355		277,463		334,669		1,428,078		7.6	%		2.7	%
	-- Kmart		3		224,614		892,615		49,355		277,463		273,969		1,170,078		6.3	%		2.2	%
	-- Sears		1		60,700		258,000		-		-		60,700		258,000		1.4	%		0.5	%

	Wal-Mart		2		210,114		1,515,409		-		-		210,114		1,515,409		4.8	%		2.9	%

	Ahold (Stop and Shop)		2		117,911		1,363,237		-		-		117,911		1,363,237		2.7	%		2.6	%

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

	Barnes & Noble		3		32,122		849,000		6,091		194,902		38,213		1,043,902		0.9	%		2.0	%

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

	Pier 1 Imports		3		19,255		419,017		4,321		170,802		23,576		589,819		0.5	%		1.1	%

	Payless Shoesource		8		26,236		509,871		1,514		52,994		27,750		562,865		0.6	%		1.1	%
	CVS		2		34,300		540,818		-		-		34,300		540,818		0.8	%		1.0	%
	The Avenue		4		17,236		342,869		4,043		160,406		21,279		503,275		0.5	%		1.0	%
	Rite Aid		2		25,047		447,710		-		-		25,047		447,710		0.6	%		0.9	%
	OfficeMax		2		47,657		428,913		-		-		47,657		428,913		1.1	%		0.8	%
	Dollar Tree		5		45,387		428,872		-		-		45,387		428,872		1.0	%		0.8	%
	Drexel Heritage		2		13,315		332,875		4,850		91,034		18,165		423,909		0.4	%		0.8	%
	Citibank		3		5,486		263,328		2,797		150,965		8,283		414,293		0.2	%		0.8	%
	JP Morgan Chase Bank		3		14,435		398,895		-		-		14,435		398,895		0.3	%		0.8	%
	Hallmark Cards		4		22,022		372,898		-		-		22,022		372,898		0.5	%		0.7	%
	Coldwell Banker		2		14,012		326,958		-		-		14,012		326,958		0.3	%		0.6	%
	Dots		4		17,698		297,358		-		-		17,698		297,358		0.4	%		0.6	%
	Blockbuster		2		9,730		255,350		-		-		9,730		255,350		0.2	%		0.5	%

	Total		79		1,747,778	$	19,005,866		110,837	$	1,690,276		1,858,615	$	20,696,142		42.4	%		39.8	%

1 Base rents do not include percentage rents (except where noted), additional rents for property expense reimbursements, and contractual rent escalations due after the date of this report.

2 Represents total GLA and annualized base rent for the Company's retail properties.

3 Represents the Company's pro-rata share of total GLA and annualized base rent for its Brandywine and Crossroads joint ventures.

Page 31

Reporting Supplement
September 30, 2010

Core Portfolio Lease Expirations


			Gross Leased Area					Annualized Base Rent
	Number of				Percent					Percent			Average
	Leases		Square		of					of			per
	Expiring		Footage		Total			Amount		Total			Sq. Ft.

Anchor Tenant Expirations

2010		2		40,266		1.32	%		460,765		1.19	%		11.44
2011		10		237,401		7.80	%		3,448,857		8.90	%		14.53
2012		7		351,642		11.55	%		3,185,790		8.22	%		9.06
2013		9		365,636		12.01	%		5,289,394		13.65	%		14.47
2014		8		261,101		8.58	%		3,001,097		7.74	%		11.49
2015		8		274,492		9.01	%		3,814,653		9.84	%		13.90
2016		3		55,266		1.82	%		594,002		1.53	%		10.75
2017		4		159,389		5.23	%		2,661,119		6.87	%		16.70
2018		6		359,783		11.82	%		5,348,499		13.80	%		14.87
2019		5		122,539		4.02	%		927,850		2.39	%		7.57
2020		5		233,350		7.66	%		2,309,505		5.96	%		9.90
2021		2		136,148		4.47	%		1,014,568		2.62	%		7.45
2022		2		69,837		2.29	%		1,700,000		4.39	%		24.34
2024		3		188,506		6.19	%		3,273,048		8.45	%		17.36
2028		4		189,509		6.22	%		1,723,404		4.45	%		9.09
Total Occupied		78		3,044,865		100.00	%	$	38,752,551		100.00	%	$	12.73


Anchor GLA Owned by Tenants				254,916
Total Vacant				179,235

Total Square Feet				3,479,016

Shop Tenant Expirations

2010	17	56,161	4.99	%		676,663	2.62	%		12.05
2011	50	187,219	16.63	%		4,006,427	15.52	%		21.40
2012	44	145,884	12.96	%		3,180,345	12.32	%		21.80
2013	50	161,336	14.33	%		3,527,645	13.66	%		21.87
2014	50	181,491	16.12	%		4,570,057	17.70	%		25.18
2015	28	135,492	12.03	%		2,487,706	9.64	%		18.36
2016	7	43,586	3.87	%		844,927	3.27	%		19.39
2017	14	42,683	3.79	%		1,958,995	7.59	%		45.90
2018	19	43,051	3.82	%		1,737,987	6.73	%		40.37
2019	14	42,049	3.73	%		891,817	3.45	%		21.21
2020	9	20,392	1.81	%		572,547	2.22	%		28.08
2021	2	30,270	2.69	%		264,013	1.02	%		8.72
2022	4	20,055	1.78	%		526,533	2.04	%		26.25
2023	2	7,362	0.65	%		126,712	0.49	%		17.21
2027	2	9,012	0.80	%		444,523	1.72	%		49.33
Total Occupied	312	1,126,043	100.00	%	$	25,816,897	100.00	%	$	22.93


Total Vacant		220,217

Total Square Feet		1,346,260

Page 32

Reporting Supplement

September 30, 2010

Core Portfolio Lease Expirations

			Gross Leased Area					Annualized Base Rent
	Number of				Percent					Percent			Average
	Leases		Square		of					of			per
	Expiring		Footage		Total			Amount		Total			Sq. Ft.

Total Anchor and Shop Tenant Expirations

2010		19		96,427		2.31	%		1,137,428		1.76	%	$	11.80
2011		60		424,620		10.18	%		7,455,284		11.55	%		17.56
2012		51		497,526		11.93	%		6,366,135		9.86	%		12.80
2013		59		526,972		12.63	%		8,817,039		13.66	%		16.73
2014		58		442,592		10.61	%		7,571,154		11.73	%		17.11
2015		36		409,984		9.83	%		6,302,359		9.76	%		15.37
2016		10		98,852		2.37	%		1,438,929		2.23	%		14.56
2017		18		202,072		4.84	%		4,620,114		7.16	%		22.86
2018		25		402,834		9.66	%		7,086,486		10.97	%		17.59
2019		19		164,588		3.95	%		1,819,667		2.82	%		11.06
2020		14		253,742		6.08	%		2,882,052		4.46	%		11.36
2021		4		166,418		3.99	%		1,278,581		1.98	%		7.68
2022		6		89,892		2.16	%		2,226,533		3.45	%		24.77
2023		2		7,362		0.18	%		126,712		0.20	%		17.21
2024		3		188,506		4.52	%		3,273,048		5.07	%		17.36
2027		2		9,012		0.22	%		444,523		0.69	%		49.33
2028		4		189,509		4.54	%		1,723,404		2.67	%		9.09
Total Occupied		390		4,170,908		100.00	%		64,569,448		100.00	%		15.48


Anchor GLA Owned by Tenants				254,916
Total Vacant				399,452

Total Square Feet				4,825,276

Page 33

Reporting Supplement
September 30, 2010


	Core Portfolio	Year-to-Date						3 months ended						3 months ended						3 months ended
	New and Renewal Rent Spreads 1	September 30, 2010						September 30, 2010						June 30, 2010						March 31, 2010
		Cash 2			GAAP 3			Cash 2			GAAP 3			Cash 2			GAAP 3			Cash 2			GAAP 3
	New leases
	Number of new leases commencing		9			9			2			2			3			3			4			4
	GLA		50,470			50,470			2,358			2,358			32,353			32,353			15,759			15,759
	New base rent	$	15.37		$	15.98		$	20.55		$	22.62		$	13.25		$	13.75		$	18.96		$	19.58
	Previous base rent (and percentage rent)	$	21.47		$	19.07		$	30.64		$	29.10		$	20.40		$	17.35		$	22.30		$	21.09
	Percentage growth in base rent		-28.4	%		-16.2	%		-32.9	%		-22.3	%		-35.0	%		-20.7	%		-15.0	%		-7.2	%
	Average cost per square foot	$	55.70		$	55.70		$	6.28		$	6.28		$	75.10		$	75.10		$	23.27		$	23.27

	Renewal leases
	Number of renewal leases commencing		22			22			3			3			9			9			10			10
	GLA expiring		207,468			207,468			35,504			35,504			66,189			66,189			105,775			105,775
	Renewal percentage		82	%		82	%		82	%		82	%		84	%		84	%		81	%		81	%
	New base rent	$	13.01		$	13.29		$	11.82		$	11.86		$	15.68		$	16.15		$	11.67		$	11.91
	Expiring base rent (and percentage rent)	$	13.06		$	12.85		$	13.45		$	13.34		$	14.62		$	14.01		$	11.91		$	11.93
	Percentage growth in base rent		-0.4	%		3.4	%		-12.1	%		-11.1	%		7.3	%		15.3	%		-2.0	%		-0.2	%
	Average cost per square foot	$	1.47		$	1.47		$	8.63		$	8.63		$	0.00		$	0.00		$	0.00		$	0.00

	Total new and renewal Leases
	Number of new and renewal leases commencing		31			31			5			5			12			12			14			14
	GLA commencing		220,830			220,830			31,312			31,312			88,022			88,022			101,496			101,496
	New base rent	$	13.55		$	13.90		$	12.48		$	12.67		$	14.79		$	15.27		$	12.80		$	13.10
	Expiring base rent (and percentage rent)	$	14.98		$	14.27		$	14.74		$	14.53		$	16.74		$	15.24		$	13.52		$	13.35
	Percentage growth in base rent		-9.6	%		-2.6	%		-15.4	%		-12.8	%		-11.7	%		0.2	%		-5.3	%		-1.9	%
	Average cost per square foot	$	13.86		$	13.86		$	10.26		$	10.26		$	27.60		$	27.60		$	3.61		$	3.61

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

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

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

3 Rents are calculated on a straight-line basis.

Page 34

Reporting Supplement
September 30, 2010

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


	Year-to-Date		Current		Prior		Prior
			Quarter		Quarter		Quarter
	Period		3 months		3 months		3 months		Year
	ended		ended		ended		ended		Ended
	September 30, 2010		September 30, 2010		June 30, 2010		March 31, 2010		December 31, 2009


Leasing Commissions:	$	521	$	126	$	294	$	101	$	600

Tenant Improvements:		2,762		1,054		478		1,230		4,392

Capital Expenditures:		-		-		-		-		446

Redevelopments		-		-		-		-		-

Total	$	3,283	$	1,180	$	772	$	1,331	$	5,438

Page 35

Reporting Supplement
September 30, 2010

Fund I Portfolio Detail		Ownership			Gross Leasable Area						Occupancy									Annualized Base Rent
Midwest	Anchors	%			Anchors		Shops		Total		Anchors			Shops			Total			Anchors		Shops		Total
Ohio
Granville Centre	Lifestyle Family Fitness, Inc.		100	%		90,047		44,950		134,997		38.81	%		28.92	%		35.52	%		450,336		142,686		593,022

New York
New York
Tarrytown Shopping Center	Walgreen's		100	%		15,497		19,482		34,979		100.00	%		62.83	%		79.30	%		475,000		374,979		849,979

Various
Kroger/Safeway Portfolio (18 Properties)	Kroger/Safeway		75	%		709,400		-		709,400		100.00	%		0.00	%		100.00	%		3,560,326		-		3,560,326

Grand Total						814,944		64,432		879,376		93.24	%		39.17	%		89.28	%	$	4,485,662	$	517,665	$	5,003,327


Fund II Portfolio Detail
Midwest
Illinois
Oakbrook	Neiman Marcus		100	%		112,000		-		112,000		100.00	%		0.00	%		100.00	%	$	825,000	$	-	$	825,000
New York
New York
Pelham Plaza	BJ's Discount Club, Michaels		98.8	%		149,554		78,967		228,521		100.00	%		25.84	%		74.37	%		3,864,172		785,257		4,649,429
Fordham Place	Sears, Best Buy		98.8	%		74,899		44,547		119,446		100.00	%		100.00	%		100.00	%		2,873,228		2,646,532		5,519,760
Liberty Avenue	CVS		98.8	%		10,880		15,245		26,125		100.00	%		70.73	%		82.92	%		394,944		335,433		730,377
	New York Dept of
216th Street	Citywide Admin. Services		98.8	%		60,000		-		60,000		100.00	%		0.00	%		100.00	%		2,340,000		120,000		2,460,000
161st Street 1	The City of New York		98.8	%		128,690		101,528		230,218		100.00	%		60.47	%		82.57	%		3,127,173		1,257,651		4,384,824
Total New York						424,023		240,287		664,310		100.00	%		57.07	%		84.47	%		12,599,517		5,144,873		17,744,390

Grand Total						536,023		240,287		776,310		100.00	%		57.07	%		86.71	%	$	13,424,517	$	5,144,873	$	18,569,390


Fund III Portfolio Detail
New York

Cortlandt Towne Center	Wal-Mart, Best Buy, A&P,		100.0	%		508,882		132,561		641,443		91.10	%		87.88	%		90.43	%	$	6,347,712	$	2,728,757	$	9,076,469

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 redevelopment or are in the design phase as further detailed under Redevelopment Projects.

Property	Ownership %
Sherman Avenue		98.8	%
CityPoint		95.0	%
Canarsie Plaza		98.8	%
Sheepshead Bay		100.0	%
125 Main Street, Westport, CT.		100.0	%

1 Currently operating, but will be redeveloped in the future.

Page 36

	Reporting Supplement
	September 30, 2010
	Storage Portfolio Property Detail		Net		Occupancy
			Rentable
			Square		September 30,			June 30,			March 31,			December 31,
OWNER	Operating Properties	Location	Feet		2010			2010			2010			2009


	Stabilized
Fund III	Suffern	Suffern, New York		78,950
Fund III	Yonkers	Westchester, New York		100,523
Fund III	Jersey City	Jersey City, New Jersey		76,720
Fund III	Webster Ave	Bronx, New York		36,180
Fund III	Linden	Linden, New Jersey		84,035
	Subtotal Stabilized			376,408		85.7	%		85.1	%		83.1	%		85.3	%

	Repositioned - in Lease-up
Fund III	Bruckner Blvd	Bronx, New York		89,473
Fund III	New Rochelle	Westchester, New York		42,158
Fund III	Long Island City	Queens, New York		135,646
	Subtotal in Lease-up			267,277		79.6	%		76.4	%		72.6	%		70.9	%


	In initial Lease-up
Fund II	Liberty Avenue	Queens, New York		72,950
Fund II	Pelham Plaza	Pelham Manor, New York		62,020
Fund II	Atlantic Avenue	Brooklyn, New York		76,896
Fund III	Fordham Road	Bronx, New York		85,155
Fund III	Ridgewood	Queens, New York		88,839
Fund III	Lawrence	Lawrence, New York		97,743

	Total in lease-up			483,603		67.6	%		63.4	%		57.1	%		51.7	%

	Total			1,127,288		76.5	%		73.8	%		69.4	%		67.5	%

Page 37

Reporting Supplement
September 30, 2010

Fund I
Lease Expirations
		Gross Leased Area							Annualized Base Rent
		Number of				Percent					Percent			Average
		Leases		Square		of					of			per
	Notes	Expiring		Footage		Total			Amount		Total			Sq. Ft.
Anchor Tenant Expirations
2011	1		18		709,400		93.36	%	$	3,560,326		79.37	%	$	5.02
2017			1		34,951		4.60	%		450,336		10.04	%		12.88
2080			1		15,497		2.04	%		475,000		10.59	%		30.65
Total Occupied			20		759,848		100.00	%	$	4,485,662		100.00	%	$	5.90


Total Vacant					55,096

Total Square Feet					814,944


Shop Tenant Expirations
Month to Month			2		7,200		28.54	%	$	56,522		10.92	%	$	7.85
2011			1		1,955		7.75	%		27,370		5.29	%		14.00
2012			2		2,920		11.57	%		62,648		12.10	%		21.45
2014			1		2,597		10.29	%		93,025		17.97	%		35.82
2018			2		1,761		6.98	%		53,658		10.37	%		30.47
2019			1		1,904		7.54	%		30,000		5.80	%		15.76
2020			2		6,901		27.34	%		194,442		37.56	%		28.18
Total Occupied			11		25,238		100.01	%	$	517,665		100.00	%	$	20.51


Total Vacant					39,194

Total Square Feet					64,432


Total Anchor and Shop Tenant Expirations
Month to Month			2		7,200		0.92	%	$	56,522		1.13	%	$	7.85
2011			19		711,355		90.61	%		3,587,696		71.71	%		5.04
2012			2		2,920		0.37	%		62,648		1.25	%		21.45
2014			1		2,597		0.33	%		93,025		1.86	%		35.82
2017			1		34,951		4.45	%		450,336		9.00	%		12.88
2018			2		1,761		0.22	%		53,658		1.07	%		30.47
2019			1		1,904		0.24	%		30,000		0.60	%		15.76
2020			2		6,901		0.88	%		194,442		3.89	%		28.18
2080			1		15,497		1.97	%		475,000		9.49	%		-
Total Occupied			31		785,086		99.99	%	$	5,003,327		100.00	%	$	6.37


Total Vacant					94,290

Total Square Feet					879,376

1	The 2011 anchor expirations represent the term of the master lease for all 18 Kroger/Safeway locations. The underlying operating leases at
	14 of these locations, representing 547,500 square feet and rents aggregating $2,743,794, expire during 2014. The operating leases
	at 2 locations, representing 91,900 square feet and rents aggregating $426,000, expire during 2019.

Page 38

Reporting Supplement
September 30, 2010

Fund II
Lease Expirations
			Gross Leased Area					Annualized Base Rent
	Number of				Percent					Percent			Average
	Leases		Square		of					of			per
	Expiring		Footage		Total			Amount		Total			Sq. Ft.
Anchor Tenant Expirations
2011		2		240,690		44.90	%	$	3,952,173		29.45	%	$	16.42
2013		1		20,149		3.76	%		564,172		4.20	%		28.00
2019		1		39,705		7.41	%		1,747,020		13.01	%		44.00
2023		1		35,194		6.57	%		1,126,208		8.39	%		32.00
2027		1		60,000		11.19	%		2,340,000		17.43	%		39.00
2032		1		10,880		2.03	%		394,944		2.94	%		36.30
2033		1		129,405		24.14	%		3,300,000		24.58	%		25.50
Total Occupied		8		536,023		100.00	%	$	13,424,517		100.00	%	$	25.04


Total Vacant				-
Total Square Feet				536,023


Shop Tenant Expirations
Month to Month		1		9,967		7.27	%	$	99,670		1.94	%	$	10.00
2011		3		24,065		17.55	%		584,774		11.37	%		24.30
2012		3		27,365		19.96	%		573,207		11.14	%		20.95
2014		1		5,081		3.71	%		193,078		3.75	%		38.00
2016		1		2,000		1.46	%		86,000		1.67	%		43.00
2018		2		9,600		7.00	%		417,600		8.12	%		43.50
2019		4		9,318		6.80	%		481,052		9.35	%		51.63
2020		1		2,108		1.54	%		40,579		0.79	%		19.25
2022		1		-		0.00	%		120,000		2.33	%		-
2023		1		31,417		22.91	%		1,131,012		21.98	%		36.00
2027		1		6,208		4.53	%		217,901		4.24	%		35.10
2048		1		10,000		7.29	%		1,200,000		23.32	%		120.00
Total Occupied		20		137,129		100.02	%	$	5,144,873		100.00	%	$	37.52


Total Vacant				103,158
Total Square Feet				240,287


Total Anchor and Shop Tenant Expirations
Month to Month		1		9,967		1.48	%	$	99,670		0.54	%	$	10.00
2011		5		264,755		39.31	%		4,536,947		24.44	%		17.14
2012		3		27,365		4.07	%		573,207		3.09	%		20.95
2013		1		20,149		2.99	%		564,172		3.04	%		28.00
2014		1		5,081		0.75	%		193,078		1.04	%		38.00
2016		1		2,000		0.30	%		86,000		0.46	%		43.00
2018		2		9,600		1.43	%		417,600		2.25	%		43.50
2019		5		49,023		7.28	%		2,228,072		12.00	%		45.45
2023		2		66,611		9.90	%		2,257,220		12.16	%		33.89
2027		2		66,208		9.84	%		2,557,901		13.77	%		38.63
2020		1		2,108		0.31	%		40,579		0.22	%		19.25
2022		1		-		0.00	%		120,000		0.65	%		-
2032		1		10,880		1.62	%		394,944		2.13	%		36.30
2033		1		129,405		19.22	%		3,300,000		17.77	%		25.50
2048		1		10,000		1.49	%		1,200,000		6.46	%		120.00
Total Occupied		28		673,152		99.99	%	$	18,569,390		100.00	%	$	27.59


Total Vacant				103,158
Total Square Feet				776,310

Page 39

Reporting Supplement
September 30, 2010

Fund III
Lease Expirations
			Gross Leased Area					Annualized Base Rent
	Number of				Percent					Percent			Average
	Leases		Square		of					of			per
	Expiring		Footage		Total			Amount		Total			Sq. Ft.
Anchor Tenant Expirations
2013		3		64,580		13.93	%		1,182,125		18.62	%		18.30
2014		3		71,346		15.39	%		1,103,266		17.38	%		15.46
2017		2		52,131		11.25	%		927,312		14.61	%		17.79
2018		2		174,707		37.69	%		1,709,562		26.93	%		9.79
2021		1		35,790		7.71	%		385,000		6.07	%		10.76
2022		1		65,028		14.03	%		1,040,447		16.39	%		16.00
Total Occupied		12		463,582		100.00	%	$	6,347,712		100.00	%	$	13.69


Total Vacant				45,300
Total Square Feet				508,882


Shop Tenant Expirations
2010		2		3,584		3.22	%		62,282		2.28	%		17.38
2011		2		2,000		1.80	%		75,469		2.77	%		37.73
2012		3		8,200		7.37	%		224,600		8.23	%		27.39
2013		2		7,000		6.29	%		178,620		6.55	%		25.52
2014		7		30,432		27.35	%		789,533		28.93	%		25.94
2015		5		12,402		11.15	%		310,497		11.38	%		25.04
2016		1		9,100		8.18	%		176,771		6.48	%		19.43
2017		2		9,688		8.71	%		208,653		7.65	%		21.54
2018		2		7,637		6.86	%		151,020		5.53	%		19.77
2019		2		9,285		8.35	%		270,816		9.92	%		29.17
2020		2		4,720		4.24	%		89,431		3.28	%		18.95
2021		1		7,210		6.48	%		191,065		7.00	%		26.50
Total Occupied		31		111,258		100.00	%	$	2,728,757		100.00	%	$	24.53


Total Vacant				21,303
Total Square Feet				132,561


Total Anchor and Shop Tenant Expirations
2010		2		3,584		0.62	%		62,282		0.69	%		17.38
2011		2		2,000		0.35	%		75,469		0.83	%		37.73
2012		3		8,200		1.43	%		224,600		2.47	%		27.39
2013		5		71,580		12.45	%		1,360,745		14.99	%		19.01
2014		10		101,778		17.71	%		1,892,799		20.85	%		18.60
2015		5		12,402		2.16	%		310,497		3.42	%		25.04
2016		1		9,100		1.58	%		176,771		1.95	%		19.43
2017		4		61,819		10.75	%		1,135,965		12.52	%		18.38
2018		4		182,344		31.72	%		1,860,582		20.50	%		10.20
2019		2		9,285		1.62	%		270,816		2.98	%		29.17
2020		2		4,720		0.82	%		89,431		0.99	%		18.95
2021		2		43,000		7.48	%		576,065		6.35	%		13.40
2022		1		65,028		11.31	%		1,040,447		11.46	%		16.00
Total Occupied		43		574,840		100.00	%	$	9,076,469		100.00	%	$	15.79


Total Vacant				66,603
Total Square Feet				641,443

Page 40

	QUARTERLY SUPPLEMENTAL DISCLOSURE
	September 30, 2010
	Property Demographics 1

							3-Mile Radius2						5-Mile Radius
				Trade	Cash 2			#
				Area	Base	Total	Total	Households		Median HH		Avg. HH	Total	#		Median HH		Avg. HH
Classification	Property / JV Ownership %	City	State	(Miles)	Rent	GLA	Pop.	("HH")		Income		Income	Pop.	HH		Income		Income
Core	Brandywine Town Center & Mkt Sq./22.22%	Wilmington	DE	3	15,825,904	997,006	41,222	15,054		$83,769		$102,192	120,306	46,004		$74,110		$93,425
Core	Elmwood Park Shopping Ctr.	Elmwood Park	NJ	3	3,395,453	149,491	257,647	83,959		52,609		62,446	614,727	208,535		57,938		69,562
Core	Chestnut Hill	Philadelphia	PA	3	325,483	40,570	148,084	59,791		53,526		65,990	399,921	157,197		52,171		65,291
Core	Abington Towne Center	Abington	PA	3	1,092,080	216,369	91,293	34,692		66,882		82,491	304,127	117,213		59,851		70,401
Core	Clark & Diversey	Chicago	IL	3	799,766	19,265	419,461	213,740		58,803		81,579	969,623	410,327		51,138		67,593
Core	Hobson West Plaza	Naperville	IL	3	1,085,008	99,126	98,083	34,231		94,977		114,120	241,153	82,668		93,969		113,986
Core	Methuen Shopping Ctr.	Methuen	MA	5	958,689	130,021	89,957	31,569		41,619		49,981	201,503	72,943		47,894		56,306
Core	Crossroads Shopping Ctr. / 49%	White Plains	NY	3	5,752,321	309,487	105,870	39,349		78,556		85,621	205,109	73,112		93,445		108,276
Core	The Branch Plaza	Smithtown	NY	3	2,660,888	125,751	68,832	23,221		89,522		113,455	199,361	64,663		82,867		105,093
Core	Amboy Road	Staten Island	NY	3	1,603,271	60,090	156,384	56,991		69,666		90,260	292,132	105,178		66,927		88,388
Core	Village Commons Shopping Ctr.	Smithtown	NY	3	2,105,236	87,330	68,832	23,221		89,522		113,455	199,361	64,663		82,867		105,093
Core	Bloomfield Town Square	Bloomfield Hills	MI	5	2,848,001	234,095	62,528	23,953		73,997		102,234	166,443	62,677		79,970		105,922
Core	Crescent Plaza	Brockton	MA	3	1,611,344	218,141	99,649	34,369		46,062		56,826	168,246	58,789		46,062		56,826
Core	239 Greenwich Avenue / 75%	Greenwich	CT	5	1,429,725	16,834	67,165	24,889		97,270		125,159	142,822	51,210		94,119		119,232
Core	Town Line Plaza	Rocky Hill	CT	3	1,629,256	206,346	45,606	19,067		65,917		75,855	153,302	61,023		57,724		68,679
Core	New Loudon Center	Latham	NY	5	1,531,238	255,826	41,815	15,619		55,375		66,288	151,655	61,034		47,547		61,261
Core	Pacesetter Park Shopping Ctr.	Pomona	NY	3	1,090,398	96,380	25,618	8,209		89,598		125,526	129,143	36,828		72,841		102,767
Core	LA Fitness, Staten Island	Staten Island	NY	3	1,265,000	55,000	127,542	45,026		65,178		83,167	457,912	162,076		60,236		77,922
Core	West 54th Street	Manhattan	NY	3	3,000,504	9,693	582,613	325,406		80,037		96,770	2,424,848	1,048,312		55,446		67,194
Core	East 17th Street	Manhattan	NY	3	625,000	19,622	1,027,933	495,157		64,629		116,133	2,512,412	1,086,434		53,903		96,755
Core	Mad River Station	Dayton	OH	5	1,397,908	125,984	58,692	25,428		58,119		67,529	135,000	56,693		60,560		71,601
Core	Mark Plaza	Edwardsville	PA	5	800,295	216,401	87,986	37,409		31,982		39,628	124,868	52,566		34,683		43,184
Core	Bartow Avenue	The Bronx	NY	3	439,246	14,676	567,476	209,231		40,253		47,643	1,435,467	511,796		30,552		43,522
Core	Walnut Hill Plaza	Woonsocket	RI	5	2,432,916	284,717	60,322	22,861		42,715		47,867	95,320	35,238		50,142		56,573
Core	A & P Shopping Plaza / 60%	Boonton	NJ	5	1,166,305	62,908	49,442	18,288		87,533		113,042	101,266	36,438		86,509		106,011
Core	Merrillville Plaza	Hobart	IN	5	2,825,281	235,847	26,118	10,066		56,556		64,248	87,796	32,151		54,709		62,531
Core	The Gateway Shopping Ctr.	So. Burlington	VT	3	1,837,442	101,784	46,879	19,366		44,294		55,033	69,993	28,186		47,104		57,514
Core	Marketplace of Absecon	Absecon	NJ	3	1,084,108	104,718	30,732	11,642		52,106		64,775	68,326	26,137		51,610		62,711
Core	Plaza 422	Lebanon	PA	3	795,852	156,279	43,975	17,347		36,874		47,144	61,197	23,615		41,055		51,545
Core	Route 6 Plaza	Honesdale	PA	5	1,155,530	175,519	7,567	3,014		32,283		43,919	11,899	4,627		34,031		46,300
Fund I	Granville Center / 37.78%	Columbus	OH	3	593,022	134,997	112,547	47,337		47,547		53,746	266,313	108,411		53,466		60,719
Fund I	Tarrytown Shopping Center / 37.78%	Tarrytown	NY	3	849,979	34,979	36,856	13,450		78,415		95,294	123,546	43,654		85,757		103,311
Fund II- Urban In-Fill	400 East Fordham Road / 19.2%	The Bronx	NY	2	5,519,760	119,446	1,205,053	412,674		30,252		38,298	1,997,909	698,322		33,259		40,957
Fund II- Urban In-Fill	Sherman Avenue / 19.2%	Manhattan	NY	2	-	-	535,739	175,108		29,260		36,324	2,049,516	721,521		34,366		42,608
Fund II- Urban In-Fill	Pelham Manor Shopping Plaza / 19.2%	Westchester	NY	3	4,649,429	228,521	398,727	147,238		48,697		56,116	1,109,022	403,897		44,956		53,542
Fund II- Urban In-Fill	161st Street /19.2%	The Bronx	NY	2	4,384,824	230,218	1,274,483	427,111		25,104		31,477	2,531,473	966,482		37,307		48,034
Fund II- Urban In-Fill	Liberty Avenue / 19.2%	Queens	NY	3	730,377	26,125	613,457	201,509		44,915		59,078	613,457	201,509		44,915		59,078
Fund II- Urban In-Fill	216th Street / 19.2%	Manhattan	NY	2	2,460,000	60,000	536,119	183,542		30,978		41,481	536,119	183,542		30,978		41,481
Fund II- Other	Oakbrook/ 20%	Oakbrook	IL	3	825,000	112,000	77,560	29,487		77,130		108,955	288,932	108,039		75,456		97,126
Fund III- Other	Cortlandt Towne Center/19.91%	Mohegan Lake	NY	3	9,076,469	641,443	50,899	17,257		83,556		96,323	85,373	28,902		88,363		103,198
					93,658,308	6,413,005
TOTAL
Weighted Average - Based on GLA							155,386	55,646	$	63,119	$	76,805	333,822	123,956	$	62,858	$	77,121
Weighted Average - Based on base rent 1							177,293	71,526	$	64,991	$	80,338	429,267	166,154	$	60,635	$	74,960

CORE
Weighted Average - Based on GLA							75,025	28,617	$	64,210	$	78,606	184,517	69,145	$	62,565	$	77,400
Weighted Average - Based on base rent 1							133,656	57,832	$	66,377	$	82,302	361,137	142,602	$	61,041	$	75,681

FUND I
Weighted Average - Based on GLA							96,971	40,363	$	53,899	$	62,296	236,933	95,085	$	60,111	$	69,484
Weighted Average - Based on base rent 1							67,962	27,376	$	65,729	$	78,219	182,218	70,267	$	72,487	$	85,807

FUND II -Urban In-fill
Weighted Average - Based on GLA							868,057	297,368	$	35,455	$	43,168	1,690,568	623,939	$	38,938	$	48,499
Weighted Average - Based on base rent 1							893,846	306,234	$	34,517	$	42,578	1,637,209	595,625	$	37,488	$	46,822

FUND II -Other
Weighted Average - Based on GLA							77,560	29,487	$	77,130	$	108,955	288,932	108,039	$	75,456	$	97,126
Weighted Average - Based on base rent 1							77,560	29,487	$	77,130	$	108,955	288,932	108,039	$	75,456	$	97,126

FUND III
Weighted Average - Based on GLA							50,899	17,257	$	83,556	$	96,323	85,373	28,902	$	88,363	$	103,198
Weighted Average - Based on base rent 1							50,899	17,257	$	83,556	$	96,323	85,373	28,902	$	88,363	$	103,198

1 Does not include the Kroger/Safeway Portfolio. Base rent for joint ventures has been pro-rated based on the Company's ownership % in the joint venture.

2 West 54th Street, Sherman 161st Street and 216th Street figures are for 2 mile radius

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Reporting Supplement

September 30, 2010

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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