10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

Commission File No. 001-34698

EXCEL TRUST, INC.

(Exact name of registrant as specified in its charter)

Maryland	27-1493212
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

Excel Centre

17140 Bernardo Center Drive, Suite 300

San Diego, California 92128

(Address of principal executive office, including zip code)

(858) 613-1800

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨		Accelerated filer	x
Non-accelerated filer	¨	(Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Number of shares outstanding as of August 2, 2012 of the registrant’s common stock, $0.01 par value per share: 34,050,675 shares

PART 1 — FINANCIAL INFORMATION

EXCEL TRUST, INC.

FORM 10-Q — QUARTERLY REPORT

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2012

TABLE OF CONTENTS

PART I	Financial Information
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets of Excel Trust, Inc. as of June 30, 2012 (unaudited) and December 31, 2011	3
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) of Excel Trust, Inc. for the three and six months ended June 30, 2012 and 2011 (unaudited)	4
	Condensed Consolidated Statements of Equity of Excel Trust, Inc. for the six months ended June 30, 2012 and 2011 (unaudited)	5
	Condensed Consolidated Statements of Cash Flows of Excel Trust, Inc. for the six months ended June 30, 2012 and 2011 (unaudited)	7
	Notes to Condensed Consolidated Financial Statements of Excel Trust, Inc. (unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40
Item 4.	Controls and Procedures	40
PART II	Other Information
Item 1.	Legal Proceedings	41
Item 1A.	Risk Factors	41
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3.	Defaults Upon Senior Securities	41
Item 4.	Mine Safety Disclosures	41
Item 5.	Other Information	41
Item 6.	Exhibits	42
Signatures		43

2

PART 1 — FINANCIAL INFORMATION

Item 1. Financial Statements

EXCEL TRUST, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

	June 30,  2012 (unaudited)			December 31, 2011
ASSETS:
Property:
Land	$	263,988		$	236,941
Buildings		398,441			287,226
Site improvements		41,826			28,257
Tenant improvements		33,617			28,517
Construction in progress		115			21,312
Less accumulated depreciation		(26,804	)		(18,294	)
Property, net		711,183			583,959
Cash and cash equivalents		7,179			5,292
Restricted cash		4,925			3,680
Tenant receivables, net		2,995			4,174
Lease intangibles, net		72,666			68,556
Mortgage loan receivable		—			2,000
Deferred rent receivable		4,343			2,997
Other assets		17,253			17,013
Total assets	$	820,544		$	687,671
LIABILITIES AND EQUITY:
Liabilities:
Mortgages payable, net	$	272,485		$	244,961
Notes payable		13,629			21,000
Accounts payable and other liabilities		15,847			21,080
Lease intangibles, net		16,444			13,843
Dividends/distributions payable		8,405			5,801
Total liabilities		326,810			306,685
Equity:
Stockholders’ equity
Preferred stock, 50,000,000 shares authorized Series A preferred stock; 7.0% cumulative convertible perpetual preferred stock, $50,000,000 liquidation preference ($25.00 per share), 2,000,000 shares issued and outstanding, at June 30, 2012 and December 31, 2011		47,703			47,703
Series B Preferred stock; 8.125% cumulative redeemable preferred stock, $92,000,000 liquidation preference ($25.00 per share), 3,680,000 and 0 shares issued and outstanding, at June 30, 2012 and December 31, 2011, respectively		88,720			—
Common stock, $.01 par value, 200,000,000 shares authorized; 33,732,448 and 30,289,813 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively		336			302
Additional paid-in capital		346,385			319,875
Cumulative deficit		(2,471	)		(3,277	)
		480,673			364,603
Accumulated other comprehensive loss		(608	)		(811	)
Total stockholders’ equity		480,065			363,792
Non-controlling interests		13,669			17,194
Total equity		493,734			380,986
Total liabilities and equity	$	820,544		$	687,671

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

EXCEL TRUST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share data)

(Unaudited)

	For the Three Months Ended						For the Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Revenues:
Rental revenue	$	17,015		$	10,467		$	33,168		$	18,943
Tenant recoveries		3,185			2,220			6,452			4,118
Other income		328			102			688			207
Total revenues		20,528			12,789			40,308			23,268
Expenses:
Maintenance and repairs		1,352			780			2,674			1,419
Real estate taxes		2,460			1,377			4,525			2,513
Management fees		198			133			388			250
Other operating expenses		953			797			1,782			1,562
Change in fair value of earn-outs		—			(328	)		—			(328	)
General and administrative		3,312			3,140			6,815			5,790
Depreciation and amortization		8,552			6,400			16,831			10,561
Total expenses		16,827			12,299			33,015			21,767
Net operating income		3,701			490			7,293			1,501
Interest expense		(3,986	)		(3,503	)		(7,660	)		(6,068	)
Interest income		53			43			106			84
Gain on acquisition of real estate and sale of land parcel		—			—			—			937
Changes in fair value of financial instruments and gain on OP unit redemption		589			512			1,051			512
Income (loss) from continuing operations		357			(2,458	)		790			(3,034	)
Income from discontinued operations before gain on sale of real estate assets		—			507			—			1,023
Gain on sale of real estate assets		—			3,976			—			3,976
Income from discontinued operations		—			4,483			—			4,999
Net income		357			2,025			790			1,965
Net loss (income) attributable to non-controlling interests		11			(89	)		16			(58	)
Net income available to Excel Trust, Inc.		368			1,936			806			1,907
Preferred stock dividends		(2,744	)		(875	)		(4,865	)		(1,478	)
Net (loss) income attributable to the common stockholders	$	(2,376	)	$	1,061		$	(4,059	)	$	429
Loss income from continuing operations per share attributable to the common stockholders — basic and diluted		(0.08	)		(0.20	)		(0.14	)		(0.29	)
Net (loss) income per share attributable to the common stockholders — basic and diluted	$	(0.08	)	$	0.06		$	(0.14	)	$	0.01
Weighted-average common shares outstanding — basic and diluted		32,785			15,856			32,273			15,686
Dividends declared per common share	$	0.1625		$	0.15		$	0.325		$	0.29
Net income	$	357		$	2,025		$	790		$	1,965
Other comprehensive income (loss):
Change in unrealized gain on investment in equity securities		82			—			103			—
Gain on sale of equity securities (reclassification adjustment)		—			—			(11	)		—
Change in unrealized loss on interest rate swaps		124			(638	)		108			(418	)
Comprehensive income		563			1,387			990			1,547
Comprehensive (income) loss attributable to non-controlling interests		4			(37	)		8			(15	)
Comprehensive income attributable to Excel Trust, Inc.	$	567		$	1,350		$	998		$	1,532

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

EXCEL TRUST, INC.

CONDENSED CONSOLIDATED STATEMENT OF EQUITY

(Dollars in thousands)

(Unaudited)

	Series A Preferred Stock		Series B Preferred Stock		Common Stock				Additional Paid-in Capital			Cumulative Deficit			Accumulated other Comprehensive Loss			Total Stockholders’ Equity			Non- controlling Interests			Total Equity
					Shares		Amount
Balance at January 1, 2012	$	47,703	$	—		30,289,813	$	302	$	319,875		$	(3,277	)	$	(811	)	$	363,792		$	17,194		$	380,986
Net proceeds from sale of preferred stock		—		88,720		—		—		—			—			—			88,720			—			88,720
Issuance of restricted common stock awards		—		—		18,356		—		—			—			—			—			—			—
Redemption of OP units for common stock and cash		—		—		193,510		2		2,285			—			—			2,287			(3,545	)		(1,258	)
Issuance of common stock for acquisition		—		—		3,230,769		32		39,076			—			—			39,108			—			39,108
Noncash amortization of share-based compensation		—		—		—		—		1,589			—			—			1,589			—			1,589
Common stock dividends		—		—		—		—		(10,949	)		—			—			(10,949	)		—			(10,949	)
Distributions to non-controlling interests		—		—		—		—		—			—			—			—			(598	)		(598	)
Net income		—		—		—		—		—			806			—			806			(16	)		790
Preferred stock dividends		—		—		—		—		(4,865	)		—			—			(4,865	)		—			(4,865	)
Change in unrealized gain on investment in equity securities		—		—		—		—		—			—			99			99			4			103
Change in unrealized loss on interest rate swaps		—		—		—		—		—			—			104			104			4			108
Adjustment for non-controlling interest		—		—		—		—		(626	)		—			—			(626	)		626			—
Balance at June 30, 2012	$	47,703	$	88,720		33,732,448	$	336	$	346,385		$	(2,471	)	$	(608	)	$	480,065		$	13,669		$	493,734

5

	Series A Preferred Stock		Common Stock				Additional Paid-in Capital			Cumulative Deficit			Accumulated other Comprehensive Loss			Total Stockholders’ Equity			Non- controlling Interests			Total Equity
			Shares		Amount
Balance at January 1, 2011	$	—		15,663,331	$	156	$	191,453		$	(3,725	)	$	(373	)	$	187,511		$	9,099		$	196,610
Net proceeds from sale of preferred stock		47,721		—		—		—			—			—			47,721			—			47,721
Net proceeds from sale of common stock		—		14,375,000		144		149,814			—			—			149,958			—			149,958
Issuance of restricted common stock awards		—		929,348		9		(9	)		—			—			—			—			—
Noncash amortization of share-based compensation		—		—		—		1,777			—			—			1,777			—			1,777
Common stock dividends		—		—		—		(6,965	)		—			—			(6,965	)		—			(6,965	)
Issuance of non-controlling interests		—		—		—		—			—			—			—			9,035			9,035
Distributions to non-controlling interests		—		—		—		—			—			—			—			(324	)		(324	)
Net income		—		—		—		—			1,907			—			1,907			58			1,965
Preferred stock dividends		—		—		—		(1,478	)		—			—			(1,478	)		—			(1,478	)
Change in unrealized loss on interest rate swaps		—		—		—		—			—			(375	)		(375	)		(43	)		(418	)
Adjustment for non-controlling interests		—		—		—		361			—			—			361			(361	)		—
Balance at June 30, 2011	$	47,721		30,967,679	$	309	$	334,953		$	(1,818	)	$	(748	)	$	380,417		$	17,464		$	397,881

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

EXCEL TRUST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

	Six Months Ended June 30, 2012			Six Months Ended June 30, 2011
Cash flows from operating activities:
Net income (loss)	$	790		$	1,965
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		16,831			10,976
Gain on acquisition of real estate		—			(937	)
Changes in fair value of earn-outs		—			(328	)
Changes in fair value of financial instruments and gain on OP unit redemption		(1,051	)		(512	)
Gain on sale of real estate assets		—			(3,976	)
Deferred rent receivable		(1,386	)		(783	)
Amortization of above and below market leases		(171	)		25
Amortization of deferred balances		958			569
Bad debt expense		395			331
Share-based compensation expense		1,589			1,777
Change in assets and liabilities:
Tenant and other receivables		824			(181	)
Other assets		(1,013	)		8
Accounts payable and other liabilities		(1,189	)		2,784
Net cash provided by operating activities		16,577			11,718
Cash flows from investing activities:
Acquisitions of property, development and property improvements		(79,324	)		(37,335	)
Capitalized leasing costs		(1,099	)		(520	)
Advance of note receivable		(750	)		—
Collection of mortgage loan receivable		2,000			—
Purchase of equity securities		(125	)		—
Proceeds from sale of equity securities		2,942			—
Restricted cash		(1,245	)		3,533
Net cash used in investing activities		(77,601	)		(34,322	)
Cash flows from financing activities:
Issuance of common stock		—			150,579
Common stock offering costs		—			(267	)
Issuance of preferred stock		89,102			48,425
Preferred stock offering costs		(382	)		(704	)
OP unit redemptions		(1,915	)		—
Payments on mortgages payable		(2,146	)		(1,023	)
Payments on notes payable		(46,500	)		(114,849	)
Borrowings from notes payable		39,129			30,000
Distribution to non-controlling interests		(644	)		—
Preferred stock dividends		(2,996	)		—
Common stock and OP unit dividends/distributions		(10,314	)		(5,139	)
Deferred financing costs		(423	)		(2,233	)
Net cash provided (used) by financing activities		62,911			104,789
Net increase (decrease)		1,887			82,185
Cash and cash equivalents, beginning of period		5,292			6,525
Cash and cash equivalents, end of period	$	7,179		$	88,710
Supplemental cash flow information:
Cash payments for interest, net of amounts capitalized of $110 and $20	$	5,934		$	5,057
Non-cash investing and financing activity:
Acquisition of real estate for common shares and OP units	$	39,108		$	9,034
Assumption of net mortgage debt in connection with property acquisitions	$	29,670		$	62,366
Assets received in connection with property acquisitions	$	772		$	3,595
Liabilities assumed in connection with property acquisitions	$	539		$	7,962

7

	Six Months Ended June 30, 2012		Six Months Ended June 30, 2011
Disposition of real estate assets classified as a 1031 exchange (including gain on sale of real estate assets of $3,976)	$	—	$	39,300
Common stock dividends payable	$	5,482	$	4,645
Preferred stock dividends payable	$	2,744	$	729
OP unit distributions payable	$	180	$	211
Accrued additions to operating and development properties	$	618	$	1,405
Accrued offering costs	$	—	$	354
Change in unrealized loss on interest rate swaps	$	108	$	220
Change in unrealized gain on marketable securities	$	103	$	—
OP unit redemptions (common stock)	$	2,287	$	—

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

EXCEL TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Organization:

Excel Trust, Inc. was incorporated in the State of Maryland on December 15, 2009. On April 28, 2010, it commenced operations after completing its initial public offering (the “Offering”). Excel Trust, Inc. is a vertically integrated, self-administered, self-managed real estate firm with the principal objective of acquiring, financing, developing, leasing, owning and managing value oriented community and power centers, grocery anchored neighborhood centers and freestanding retail properties. It conducts substantially all of its business through its subsidiary, Excel Trust, L.P., a Delaware limited partnership (the “Operating Partnership” and together with Excel Trust, Inc. referred to as the “Company”). The Company seeks investment opportunities throughout the United States, but focuses on the Northeast, Northwest and Sunbelt regions. The Company generally leases anchor space to national and regional supermarket chains, big-box retailers and select national retailers that frequently offer necessity and value oriented items and generate regular consumer traffic.

The Company is the sole general partner of the Operating Partnership and, as of June 30, 2012, owned a 96.7% interest in the Operating Partnership. The remaining 3.3% interest in the Operating Partnership is held by limited partners. Each partner’s percentage interest in the Operating Partnership is determined based on the number of operating partnership units (“OP units”) owned as compared to total OP units (and potentially issuable OP units, as applicable) outstanding as of each period end and is used as the basis for the allocation of net income or loss to each partner.

2. Summary of Significant Accounting Policies

Basis of Presentation:

The accompanying condensed consolidated financial statements of the Company include all the accounts of the Company, the Operating Partnership and the subsidiaries of the Operating Partnership. The financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all the information and footnotes required by GAAP for complete financial statements and have not been audited by independent registered public accountants.

The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements for the interim periods have been made. Operating results for the six months ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. All significant intercompany balances and transactions have been eliminated in consolidation.

Cash and Cash Equivalents:

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents, for which cost approximates fair value, due to their short term maturities.

Restricted Cash:

Restricted cash is comprised of impound reserve accounts for property taxes, insurance, capital improvements and tenant improvements.

Accounts Payable and Other Liabilities:

Included in accounts payable and other liabilities are deferred rents in the amount of $2.5 million and $3.0 million at June 30, 2012 and December 31, 2011, respectively.

Revenue Recognition:

The Company commences revenue recognition on its leases based on a number of factors. In most cases, revenue recognition under a lease begins when the lessee takes possession of or controls the physical use of the leased asset. Generally, this occurs on the lease commencement date. In determining what constitutes the leased asset, the Company evaluates whether the Company or the lessee is the owner, for accounting purposes, of the tenant improvements. If the Company is the owner, for accounting purposes, of the tenant improvements, then the leased asset is the finished space and revenue recognition begins when the lessee takes possession of the finished space, typically when the improvements are substantially complete. If the Company concludes that it is not the owner, for accounting purposes, of the tenant improvements (the lessee is the owner), then the leased asset is the unimproved space and any

9

tenant improvement allowances funded under the lease are treated as lease incentives, which reduce revenue recognized on a straight-line basis over the remaining non-cancelable term of the respective lease. In these circumstances, the Company begins revenue recognition when the lessee takes possession of the unimproved space for the lessee to construct improvements. The determination of who is the owner, for accounting purposes, of the tenant improvements is highly subjective and determines the nature of the leased asset and when revenue recognition under a lease begins. The Company considers a number of different factors to evaluate whether it or the lessee is the owner of the tenant improvements for accounting purposes. These factors include:

• whether the lease stipulates how and on what a tenant improvement allowance may be spent;

• whether the tenant or landlord retains legal title to the improvements;

• the uniqueness of the improvements;

• the expected economic life of the tenant improvements relative to the length of the lease;

• the responsible party for construction cost overruns; and

• who constructs or directs the construction of the improvements.

Minimum rental revenues are recognized on a straight-line basis over the terms of the related lease. The difference between the amount of cash rent due in a year and the amount recorded as rental income is referred to as the “straight-line rent adjustment.” Rental income (net of write-offs for uncollectible amounts) was increased by $589,000 and $427,000 in the three months ended June 30, 2012 and 2011, respectively, and $1.3 million and $798,000, respectively, in the six months ended June 30, 2012 and 2011 due to the straight-line rent adjustment.

Estimated recoveries from certain tenants for their pro rata share of real estate taxes, insurance and other operating expenses are recognized as revenues in the period the applicable expenses are incurred or as specified in the leases. Other tenants pay a fixed rate and these tenant recoveries are recognized as revenue on a straight-line basis over the term of the related leases.

Property:

Costs incurred in connection with the development or construction of properties and improvements are capitalized. Capitalized costs include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes and related costs and other direct costs incurred during the period of development. The Company capitalizes costs on land and buildings under development until construction is substantially complete and the property is held available for occupancy. The determination of when a development project is substantially complete and when capitalization must cease involves a degree of judgment. The Company considers a construction project as substantially complete and held available for occupancy upon the completion of landlord-owned tenant improvements or when the lessee takes possession of the unimproved space for construction of its own improvements, but no later than one year from cessation of major construction activity. The Company ceases capitalization on the portion substantially completed and occupied or held available for occupancy, and capitalizes only those costs associated with any remaining portion under construction. In March 2012, the Company reclassified the majority of construction in progress costs relating to two non-operating properties into the corresponding buildings, site improvements and tenant improvements financial statement line items upon substantial completion of development activities.

Maintenance and repairs expenses are charged to operations as incurred. Costs for major replacements and betterments, which include HVAC equipment, roofs, parking lots, etc., are capitalized and depreciated over their estimated useful lives. Gains and losses are recognized upon disposal or retirement of the related assets and are reflected in earnings.

Property is recorded at cost and is depreciated using the straight-line method over the estimated lives of the assets as follows:

Building and improvements	15 to 40 years
Tenant improvements	Shorter of the useful lives or the terms of the related leases

Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed:

The Company reviews long-lived assets and certain identifiable intangible assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. This assessment considers expected future operating income, trends and prospects, as well as the effects of demand, competition and other economic factors. Such factors include the tenants’ ability to perform their duties and pay rent under the terms of the leases. The determination of recoverability is made based upon the estimated undiscounted future net cash flows, excluding interest expense, expected to result from the long-lived asset’s use and eventual disposition. The Company’s evaluation as to whether impairment may exist, including estimates of future anticipated cash flows, are highly subjective and could differ materially from actual results in future periods. The amount of impairment loss, if any, is determined by comparing the fair value, as determined by a discounted cash flows analysis, with the carrying value of the related assets. Although the Company’s strategy is to hold its properties over a long-term period, if the strategy changes or market conditions dictate that the sale of properties at an earlier date would be preferable, an impairment loss may be recognized to reduce the property to the lower of the carrying amount or fair value less cost to sell.

10

Investments in Partnerships and Limited Liability Companies:

The Company evaluates its investments in limited liability companies and partnerships to determine whether such entities may be a variable interest entity (“VIE”) and, if a VIE, whether the Company is the primary beneficiary. Generally, an entity is determined to be a VIE when either (1) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support provided by any parties or (2) as a group, the holders of the equity investment lack one or more of the essential characteristics of a controlling financial interest. The primary beneficiary is the entity that has both (1) the power to direct matters that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. In addition, the Company considers the form of ownership interest, voting interest, the size of the investment (including loans) and the rights of other investors to participate in policy making decisions, to replace or remove the manager and to liquidate or sell the entity. The obligation to absorb losses and the right to receive benefits when a reporting entity is affiliated with a VIE must be based on ownership, contractual, and/or other pecuniary interests in that VIE.

If the foregoing conditions do not apply, the Company considers whether a general partner or managing member controls a limited partnership or limited liability company. The general partner in a limited partnership or managing member in a limited liability company is presumed to control that limited partnership or limited liability company. The presumption may be overcome if the limited partners or members have either (1) the substantive ability to dissolve the limited partnership or limited liability company or otherwise remove the general partner or managing member without cause or (2) substantive participating rights, which provide the limited partners or members with the ability to effectively participate in significant decisions that would be expected to be made in the ordinary course of the limited partnership’s or limited liability company’s business and thereby preclude the general partner or managing member from exercising unilateral control over the partnership or company. If these criteria are not met and the Company is the general partner or the managing member, as applicable, the consolidation of the partnership or limited liability company is required.

Investments in Equity Securities:

The Company, through its Operating Partnership, holds investments in equity securities in certain publicly-traded companies. The Company does not acquire investments for trading purposes and, as a result, all of the Company’s investments in publicly-traded companies are considered “available-for-sale” and are recorded at fair value. Changes in the fair value of investments classified as available-for-sale are recorded in other comprehensive income. The fair value of the Company’s equity securities in publicly-traded companies is determined based upon the closing trading price of the equity security as of the balance sheet date. The cost of investments sold is determined by the specific identification method, with net realized gains and losses included in other income. For all investments in equity securities, if a decline in the fair value of an investment below its carrying value is determined to be other-than-temporary, such investment is written down to its estimated fair value with a non-cash charge to earnings. The factors that the Company considers in making these assessments include, but are not limited to, severity and duration of the unrealized loss, market prices, market conditions, the occurrence of ongoing financial difficulties, available financing, new product initiatives and new collaborative agreements.

Investments in equity securities, which are included in other assets on the accompanying condensed consolidated balance sheets, consisted of the following:

	June 30, 2012		December 31, 2011
Equity securities, initial cost basis	$	6,266	$	9,072
Gross unrealized gains		195		138
Gross unrealized losses		—		(46	)
Equity securities, fair value(1)	$	6,461	$	9,164

⁽¹⁾ Determination of fair value is classified as Level 1 in the fair value hierarchy based on the use of quoted prices in active markets (see section entitled “Fair Value of Financial Instruments” that follows herein).

The fair value of some of the Company’s investments in equity securities were less than the initial cost basis at December 31, 2011 due to a decrease in their respective stock prices since the initial purchase. However, the fair value of the investments had fully recovered at June 30, 2012 and the Company continues to have the ability and intent to retain the investments for a period of time sufficient to allow for an anticipated recovery in market value. The Company will continue to periodically evaluate whether an other-than-temporary impairment exists for any investment when the fair value is less than the initial cost basis.

11

During the six months ended June 30, 2012, the Company sold 118,222 shares of preferred stock (including 67,823 shares of preferred stock redeemed by the issuing company) based on a specific identification of the shares sold, resulting in net proceeds of approximately $2.9 million and the recognition of a gain on sale of approximately $0 and $11,000 during the three and six months ended June 30, 2012, respectively, which are included in other income in the accompanying condensed consolidated statements of operations.

Share-Based Payments:

All share-based payments to employees are recognized in earnings based on their fair value on the date of grant. Through June 30, 2012, the Company has awarded only restricted stock awards under its incentive award plan, which are based on shares of the Company’s common stock. The fair value of equity awards that include only service or performance vesting conditions is determined based on the closing market price of the underlying common stock on the date of grant. The fair value of equity awards that include one or more market vesting conditions is determined based on the use of a widely accepted valuation model. The fair value of equity grants is amortized to general and administrative expense ratably over the requisite service period for awards that include only service vesting conditions and utilizing a graded vesting method (an accelerated vesting method in which the majority of compensation expense is recognized in earlier periods) for awards that include one or more market vesting conditions, adjusted for anticipated forfeitures.

Purchase Accounting:

The Company, with the assistance of independent valuation specialists, allocates the purchase price of acquired properties to tangible and identified intangible assets and liabilities based on their respective fair values. The allocation to tangible assets (building and land) is based upon the Company’s determination of the value of the property as if it were vacant using discounted cash flow models similar to those used by independent appraisers. Factors considered include an estimate of carrying costs during the expected lease-up periods taking into account current market conditions and costs to execute similar leases. The fair value of land is derived from comparable sales of land within the same submarket and/or region. The fair value of buildings and improvements, tenant improvements, site improvements and leasing costs are based upon current market replacement costs and other relevant market rate information. Additionally, the purchase price of the applicable property is allocated to the above or below market value of in place leases, the value of in place leases and above or below market value of debt assumed.

The value allocable to the above or below market component of the acquired in place leases is determined based upon the present value (using a discount rate which reflects the risks associated with the acquired leases) of the difference between: (1) the contractual amounts to be paid pursuant to the lease over its remaining term, and (2) our estimate of the amounts that would be paid using fair market rates over the remaining term of the lease. The amounts allocated to above market leases are included in lease intangible assets, net in our accompanying condensed consolidated balance sheets and amortized to rental income over the remaining non-cancelable lease term of the acquired leases with each property. The amounts allocated to below market lease values are included in lease intangible liabilities, net in the Company’s accompanying condensed consolidated balance sheets and amortized to rental income over the remaining non-cancelable lease term plus any below market renewal options of the acquired leases with each property.

The value allocable to above or below market debt is determined based upon the present value of the difference between the cash flow stream of the assumed mortgage and the cash flow stream of a market rate mortgage. The amounts allocated to above or below market debt are included in mortgage payables, net on the accompanying consolidated balance sheets and are amortized to interest expense over the remaining term of the assumed mortgage.

Tenant receivables:

Tenant receivables and deferred rent are carried net of the allowances for uncollectible current tenant receivables and deferred rent. An allowance is maintained for estimated losses resulting from the inability of certain tenants to meet the contractual obligations under their lease agreements. The Company maintains an allowance for deferred rent receivable arising from the straight-lining of rents. Such allowance are charged to bad debt expense which is included in other operating expenses on the accompanying condensed consolidated statement of operations. The Company’s determination of the adequacy of these allowances is based primarily upon evaluations of historical loss experience, the tenant’s financial condition, security deposits, letters of credit, lease guarantees, current economic conditions and other relevant factors. At June 30, 2012 and December 31, 2011, the Company had $635,000 and $631,000, respectively, in allowances for uncollectible accounts as determined to be necessary to reduce receivables to the estimate of the amount recoverable. During the three months ended June 30, 2012 and 2011, $148,000 and $127,000, respectively, of receivables were charged to bad debt expense. During the six months ended June 30, 2012 and 2011, $395,000 and $331,000, respectively, of receivables were charged to bad debt expense.

12

Non-controlling Interests

At June 30, 2012 and December 31, 2011, non-controlling interest represented the portion of equity that the Company did not own in those entities it consolidates, including OP units not held by the Company. In conjunction with the Company’s formation transactions, interests in four properties were contributed in exchange for 641,062 OP units. In addition, 764,343 OP units were issued in March 2011 in connection with the acquisition of the Edwards Theatres property (see Note 3).

During the six months ended June 30, 2012, a total of 299,927 OP units related to the Edwards Theatres acquisition were tendered to the Company for redemption, resulting in the issuance of 193,510 shares of common stock and cash payments totaling $1.9 million. The OP units were redeemed for common stock on a one-to-one basis, with additional common stock and cash consideration provided as a result of the accompanying additional redemption obligation that guaranteed consideration equal to $14.00 per OP unit on the date of redemption (see Note 3). At June 30, 2012, 464,416 OP units related to the Edwards Theatres acquisition remained outstanding.

OP units not held by the Company are reflected as non-controlling interests in the Company’s consolidated financial statements. The OP units not held by the Company may be redeemed by the holder for cash. The Company, at its option, may satisfy the redemption obligation with common stock on a one-for-one basis.

Concentration of Risk

The Company maintains its cash accounts in a number of commercial banks. Accounts at these banks are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At various times during the periods, the Company had deposits in excess of the FDIC insurance limit.

In the three and six months ended June 30, 2012 and 2011, no tenant accounted for more than 10% of revenues.

Management Estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value of Financial Instruments:

The Company measures financial instruments and other items at fair-value where required under GAAP, but has elected not to measure any additional financial instruments and other items at fair-value as permitted under fair-value option accounting guidance.

Fair-value measurement is determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair-value measurements, there is a fair-value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the assets or liabilities, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

The Company has used interest rate swaps to manage its interest rate risk (see Note 11). The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair-values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived

13

from observable market interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair-value measurements. In adjusting the fair-value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees.

Although the Company has determined that the majority of the inputs used to value its derivatives classified as cash flow hedges fall within Level 2 of the fair-value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2012, the Company has determined that the impact of the credit valuation adjustments on the overall valuation of its derivative positions is not significant. As a result, the Company has determined that its valuations related to derivatives classified as cash flow hedges in their entirety are classified in Level 2 of the fair-value hierarchy (see Note 16).

Changes in the fair value of financial instruments (other than derivative instruments for which an effective hedging relationship exists) are recorded as a charge against earnings in the condensed consolidated statements of operations in the period in which they occur. The Company estimates the fair value of financial instruments at least quarterly based on current facts and circumstances, projected cash flows, quoted market prices, and other criteria. The Company may also utilize the services of independent third-party valuation experts to estimate the fair value of financial instruments, as necessary.

The Company’s investments in equity securities fall within Level 1 of the fair value hierarchy as the Company utilizes observable market-based inputs, based on the closing trading price of securities as of the balance sheet date, to determine the fair value of the investments.

Derivative Instruments:

The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, from time to time the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings.

In addition, from time to time the Company may execute agreements in connection with business combinations that include embedded derivative instruments as part of the consideration provided to the sellers of the properties. Although these embedded derivative instruments are not intended as hedges of risks faced by the Company, they can provide additional consideration to the Company’s selling counterparties and may be a key component of negotiations.

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The Company records all derivative instruments on the consolidated balance sheets at their fair value. In determining the fair value of derivative instruments, the Company also considers the credit risk of its counterparties, which typically constitute larger financial institutions engaged in providing a wide variety of financial services. These financial institutions generally face similar risks regarding changes in market and economic conditions, including, but not limited to, changes in interest rates, exchange rates, equity and commodity pricing and credit spreads.

Accounting for changes in the fair value of derivative instruments depends on the intended use of the derivative, whether it has been designated as a hedging instrument and whether the hedging relationship has continued to satisfy the criteria to apply hedge accounting. For derivative instruments qualifying as cash flow hedges, the effective portion of changes in the fair value is initially recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company assesses the effectiveness of each hedging relationship by comparing the changes in the cash flows of the derivative hedging instrument with the changes in the cash flows of the hedged item or transaction.

14

The Company formally documents the hedging relationship for all derivative instruments, has accounted for its interest rate swap agreements as cash flow hedges and does not utilize derivative instruments for trading or speculative purposes.

Recent Accounting Pronouncements:

In May 2011, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2011-04, Amendment to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (“ASU 2011-04”), which amended Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement. The objective of this guidance is to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and International Financial Reporting Standards. The guidance further explains how to measure fair value, but does not require additional fair value measurements. ASU 2011-04 is to be applied prospectively for fiscal years and interim periods within those years beginning after December 15, 2011. The Company’s adoption of this guidance effective January 1, 2012 resulted in additional disclosures in the notes to the Company’s consolidated financial statements, but did not have a material quantitative effect.

3. Acquisitions:

The Company completed four acquisitions in the six months ended June 30, 2012 (in thousands):

Property	Date Acquired	Location	Square Footage		Debt Assumed
Promenade Corporate Center	January 23, 2012	Scottsdale, AZ		256,176	$	—
EastChase Market Center	February 17, 2012	Montgomery, AL		181,431		—
La Costa Town Center	February 29, 2012	Carlsbad, CA		121,429		—
Lake Pleasant Pavilion	May 16, 2012	Peoria, AZ		178,376		28,250

The following summary provides an allocation of purchase price for the above acquisitions (in thousands).

	Building		Land		Above Market Leases		Below Market Leases			In-Place Leases		Debt (Premium)/ Discount			Purchase Price
Promenade Corporate Center(1)	$	44,465	$	4,477	$	781	$	(749	)	$	3,279	$	—		$	52,253
EastChase Market Center(2)		19,567		4,215		360		(1,296	)		1,804		—			24,650
La Costa Town Center(2)		15,054		8,383		86		(2,069	)		2,046		—			23,500
Lake Pleasant Pavilion(2)		28,127		9,958		2,857		(184	)		2,412		(1,420	)		41,750
Total	$	107,213	$	27,033	$	4,084	$	(4,298	)	$	9,541	$	(1,420	)	$	142,153
Remaining useful life(3)						60		69			49		65

⁽¹⁾ The purchase price of $52.3 million noted above reflects $13.9 million in cash paid and the issuance of 3,230,769 shares of common stock with a fair value of approximately $39.1 million based on a closing price of $12.11 per share on the date of acquisition. The purchase price is net of an asset recorded by the Company in the amount of $772,000 (included in other assets on the accompanying consolidated balance sheets) to reflect the estimated fair value of funds expected to be received from escrow in connection with master lease agreements executed at the time of acquisition. Monthly master lease payments commence upon the expiration of two existing leases in June 2012 and February 2013 (with terms through May 2013 and January 2015, respectively) unless the related spaces are released with base rents equaling or exceeding the master lease payments. In addition, the seller has agreed to reimburse the Company for any expenditures resulting from tenant improvements or leasing commissions related to the spaces to the extent that funds remain available pertaining to the master lease agreements. See Note 16 for a discussion of changes in the fair value of this asset after the initial acquisition.

⁽²⁾ The purchase price allocations for the acquisitions of the EastChase Market Center, La Costa Town Center and Lake Pleasant Pavilion properties are preliminary as of June 30, 2012 and subject to adjustment within the measurement period in accordance with ASC Topic 805, Business Combinations.

⁽³⁾ Weighted-average remaining useful life (months) for recorded intangible assets and liabilities as of the date of acquisition.

The following summary provides an allocation of purchase price for property acquisitions that were completed in the six months ended June 30, 2011 (in thousands):

15

	Building		Land		Above Market Leases		Below Market Leases			In-Place Leases		Debt (Premium)/ Discount			Purchase Price
Edwards Theatres(1)	$	13,600	$	10,283	$	—	$	(405	)	$	3,109	$	(437	)	$	26,150
Rite Aid(2)		1,474		550		—		—			347		—			2,371
Gilroy Crossing		39,890		22,520		620		(3,038	)		8,442		—			68,434
Total	$	54,964	$	33,353	$	620	$	(3,443	)	$	11,898	$	(437	)	$	96,955

⁽¹⁾ In addition to the cash consideration paid in connection with the acquisition, 764,343 OP units were issued with a fair value of $11.82 per unit at the time of issuance. These OP units can be redeemed beginning in March 2012 for cash or, at the Company’s election, for shares of the Company’s common stock. If the redemption takes place during the period from March 2012 through March 2013 and the price of shares of the Company’s common stock is less than $14.00 per share at the date of redemption, the Company must issue additional shares or cash for the difference. The Company originally recorded a liability of approximately $4.2 million within accounts payable and other liabilities on the accompanying condensed consolidated balance sheets to reflect the estimated fair value of this redemption provision (see footnote 16 for a discussion of changes in the fair value of this liability and OP unit redemptions occurring after the initial acquisition).

⁽²⁾ Rite Aid is an outparcel to Vestavia Hills City Center. A gain of $937,000 was recognized on the acquisition of this property, which represented the difference between the fair value at the date of closing and the price paid.

The Company recorded revenues and net income for the three months ended June 30, 2012 of $3.1 million and $87,000, respectively, and for the six months ended June 30, 2012 of $4.7 million and $260,000, respectively, related to the 2012 acquisitions. The Company recorded revenues and a net loss for the three months ended June 30, 2011 of $2.4 million and $53,000 respectively, and for the six months ended June 30, 2011 of $4.9 million and $184,000, respectively, related to the 2011 acquisitions.

The following unaudited pro forma information for the three and six months ended June 30, 2012 and 2011 has been prepared to reflect the incremental effect of the properties acquired in 2012 and 2011 as if such acquisitions had occurred on January 1, 2011 and January 1, 2010, respectively (in thousands).

	Three Months Ended				Six Months Ended
	June 30, 2012		June 30, 2011		June 30, 2012		June 30, 2011
Revenues		21,432		16,346	$	42,747	$	32,629
Net income(1)		112		1,818		599		1,507

⁽¹⁾  Pro forma results for the six months ended June 30, 2012 were adjusted to exclude non-recurring acquisition costs of approximately $293,000 related to the 2012 acquisitions. The pro forma results for the six months ended June 30, 2011 were adjusted to include these costs. A portion of the 2012 acquisitions were funded by proceeds from the Series B preferred stock offering (discussed in Note 12 below). However, pro forma net income for the six months ended June 30, 2011 is not adjusted for this funding as the assumed Series B preferred stock quarterly dividends of approximately $1.9 million are not included in the determination of net income (included only as a reduction of net income (loss) attributable to the common stockholders).

4. Lease Intangible Assets, Net

Lease intangible assets, net consisted of the following at June 30, 2012 and December 31, 2011:

	June 30, 2012		December 31, 2011
	(in thousands)
In-place leases, net of accumulated amortization of $16.3 million and $11.8 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 75 and 83 months as of June 30, 2012 and December 31, 2011, respectively)	$	45,401	$	44,356
Above market leases, net of accumulated amortization of $3.6 million and $2.6 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 69 and 75 months as of June 30, 2012 and December 31, 2011, respectively)		13,571		11,056
Leasing commissions, net of accumulated amortization of $3.9 million and $2.8 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 103 and 113 months as of June 30, 2012 and December 31, 2011, respectively)		13,694		13,144
	$	72,666	$	68,556

16

Estimated amortization of lease intangible assets as of June 30, 2012 for each of the next five years and thereafter is as follows (in thousands):

Year Ending December 31,	Amount
2012 (remaining six months)	$	9,144
2013		15,373
2014		12,267
2015		8,325
2016		5,510
Thereafter		22,047
Total	$	72,666

Amortization expense recorded on the lease intangible assets for the three months ended June 30, 2012 and 2011 was $4.6 million and $2.9 million, respectively. Included in these amounts are $823,000 and $406,000, respectively, of amortization of above market lease intangible assets recorded against rental income. Amortization expense recorded on the lease intangible assets for the six months ended June 30, 2012 and 2011 was $9.5 million and $5.3 million, respectively. Included in these amounts are $1.6 million and $743,000, respectively, of amortization of above market lease intangible assets recorded against rental income.

5. Lease Intangible Liabilities, Net

Lease intangible liabilities, net consisted of the following at June 30, 2012 and December 31, 2011:

	June 30, 2012		December 31, 2011
	(in thousands)
Below market leases, net of accumulated amortization of $3.7 million and $2.5 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 95 and 106 months as of June 30, 2012 and December 31, 2011, respectively)	$	16,444	$	13,843

Amortization recorded on the lease intangible liabilities for the three months ended June 30, 2012 and 2011 was $767,000 and $425,000, respectively. Amortization recorded on the lease intangible liabilities for the six months ended June 30, 2012 and 2011 was $1.7 million and $718,000, respectively. These amounts were recorded to rental income in the Company’s condensed consolidated statements of operations.

Estimated amortization of lease intangible liabilities as of June 30, 2012 for each of the next five years and thereafter is as follows (in thousands):

Year Ending December 31,	Amount
2012 (remaining six months)	$	1,552
2013		2,780
2014		2,546
2015		2,001
2016		1,600
Thereafter		5,965
Total	$	16,444

6. Variable Interest Entities

Consolidated Variable Interest Entities

Included within the consolidated financial statement is the 50% owned joint venture with AB Dothan, LLC, that is deemed a VIE, and for which the Company is the primary beneficiary as it has the power to direct activities that most significantly impact the economic performance of the VIE. The joint venture’s activities principally consist of owning and operating a neighborhood retail center with 171,670 square feet of gross leasable area located in Dothan, Alabama.

As of June 30, 2012 and December 31, 2011, total carrying amount of assets was approximately $16.2 million and $16.5 million, respectively, which includes approximately $13.7 million and $14.0 million, respectively, of real estate assets. As of June 30, 2012 and December 31, 2011, the total carrying amount of liabilities was approximately $14.5 million and $14.6 million, respectively.

17

Unconsolidated Variable Interest Entities

On December 9, 2010, the Company loaned $2.0 million to an unaffiliated borrower which has been identified as a VIE. In June 2012, the counterparty repaid the loan in full. The Company did not consolidate the VIE because it did not have the ability to control the activities that most significantly impacted the VIE’s economic performance. See Note 7 for an additional description of the nature, purposes and activities of the Company’s VIE and interests therein.

7. Mortgage and Loan Receivable

On December 9, 2010, the Company loaned $2.0 million to an unaffiliated borrower. The proceeds were used to facilitate the land acquisition and development of a shopping center anchored by Publix in Brandon, Florida. The loan was secured with a second mortgage trust deed on the property and was personally guaranteed by members of the borrower. In June 2012, the mortgage loan receivable was repaid in full, including interest accrued through the date of repayment.

In connection with the loan, the Company also entered into a purchase and sale agreement to acquire this property upon completion of development, at the Company’s election. In June 2012, the Company executed an amendment whereby the closing date for the potential acquisition was extended through December 31, 2012.

In June 2012, the Company extended a note receivable in the amount of $750,000 to a third party . The note receivable bears interest at 10.0% per annum, with the principal and accrued interest due upon maturity in June 2014. The loan is recourse to the borrower and secured by the third party’s profits interests in one of the Company’s consolidated properties. The balance is included in Other Assets on the accompanying condensed consolidated balance sheets.

8. Mortgages Payable, net

Mortgages payable at June 30, 2012 and December 31, 2011 consist of the following (in thousands):

	Carrying Amount of Mortgage Notes					Contractual Interest Rate			Effective Interest Rate			Monthly Payment(1)		Maturity Date
Property Pledged as Collateral	June 30, 2012		December 31, 2011
Five Forks Place	$	4,975	$	5,067			5.50	%		5.50	%	$	39		2013
Grant Creek Town Center		15,520		15,694			5.75	%		5.75	%		105		2013
Park West Place(2)		55,800		55,800			2.75	%		3.91	%		182		2013
Excel Centre		12,408		12,532			6.08	%		6.08	%		85		2014
Merchant Central		4,514		4,560			5.94	%		6.75	%		30		2014
Edwards Theatres		12,017		12,174			6.74	%		5.50	%		95		2014
Gilroy Crossing		47,026		47,409			5.01	%		5.01	%		263		2014
The Promenade		50,534		51,359			4.80	%		4.80	%		344		2015
5000 South Hulen		13,767		13,876			5.60	%		6.90	%		83		2017
Lake Pleasant Pavilion		28,250		—			6.09	%		5.00	%		143		2017
Rite Aid — Vestavia Hills		1,264		1,341			7.25	%		7.25	%		21		2018
Lowe’s, Shippensburg		13,678		13,840			7.20	%		7.20	%		110		2031
Northside Mall(3)		12,000		12,000			0.19	%		1.19	%		2		2035
	$	271,753	$	245,652
Less: premium (discount)(4)		732		(691	)
Mortgage notes payable, net	$	272,485	$	244,961

⁽¹⁾ This represents the monthly payment of principal and interest at June 30, 2012.

⁽²⁾ The loan bears interest at a rate of LIBOR plus 2.50% (interest rate of 2.75% at June 30, 2012). In December 2010, the Company entered into interest rate swap contracts, which fix LIBOR at an average of 1.41% for the term of the loan.

⁽³⁾ The debt represents redevelopment revenue bonds to be used for the redevelopment of this property, which mature in November 2035. Interest is reset weekly and determined by the bond remarketing agent based on the market value of the bonds (interest rate of 0.19% at June 30, 2012). The interest rate on the bonds is currently priced off of the Securities Industry and Financial Markets Association, or SIFMA, index but could change based on the credit of the bonds. The bonds are secured by a $12.1 million letter of credit issued by the Company from the Company’s unsecured revolving credit facility. An underwriter’s discount related to the original issuance of the bonds with a remaining balance of $112,000 at June 30, 2012 will be amortized as additional interest expense through November 2035.

18

⁽⁴⁾ Represents (a) the fair value adjustment on assumed debt on acquired properties at the time of acquisition to account for below or above market interest rates and (b) underwriter’s discount for the issuance of redevelopment bonds.

Total interest cost capitalized for the three and six months ended June 30, 2012 was $29,000 and $139,000, respectively. Total interest cost capitalized for the three and six months ended June 30, 2011 was $128,000 and $148,000, respectively.

The Company’s mortgage debt maturities at June 30, 2012 for each of the next five years and thereafter are as follows (in thousands):

Year Ending December 31,	Amount
2012 (remaining six months)	$	2,053
2013		80,420
2014		76,834
2015		47,375
2016		1,335
Thereafter		63,736
	$	271,753

19

9. Notes Payable

The Company’s unsecured revolving credit facility has a borrowing capacity of $200.0 million, which may be increased from time to time up to an additional $200.0 million for a total borrowing capacity of $400.0 million, subject to receipt of lender commitments and other conditions precedent. The maturity date is July 7, 2014 and may be extended for one additional year at the Company’s option (extended subsequent to June 30, 2012 – see below). The Company, among other things, is subject to covenants requiring the maintenance of (1) maximum leverage ratios on unsecured, secured and overall debt and (2) minimum fixed coverage ratios. On January 23, 2012, the Company entered into a fourth amendment to its credit agreement, which increased the maximum secured indebtedness ratio to 40% of total asset value (as defined in the credit agreement) and modified certain other terms and conditions of the unsecured revolving credit facility. At June 30, 2012, the Company believes that it was in compliance with all the covenants in the credit agreement.

The unsecured revolving credit facility bears interest at the rate of LIBOR plus a margin of 220 basis points to 300 basis points, depending on the Company’s leverage ratio. The Company will also pay a 0.35% fee for any unused portion of the unsecured revolving credit facility. Borrowings from the unsecured revolving credit facility were $0 at June 30, 2012. The Company issued a $12.1 million letter of credit from the unsecured revolving credit facility, which secures an outstanding $12.0 million bond payable for the Northside Mall. This bond is included with the mortgages payable on the Company’s condensed consolidated balance sheet. At June 30, 2012, there was approximately $134.5 million available for borrowing under the unsecured revolving credit facility.

On July 20, 2012, the Company entered into an amended and restated credit agreement, which provided an increase in borrowings available under the credit facility from $200.0 million to $250.0 million, decreased the fees pertaining to the unused capacity and the applicable interest rate and extended the maturity date. The amended maturity date is July 19, 2016, which may be extended for one additional year at the Company’s option. In addition, the amendment improved certain other terms and conditions of the unsecured revolving credit facility.

The Company has entered into a construction loan agreement in connection with construction activities at one of its development properties. The construction loan provides for borrowings of up to $18.0 million, which bears interest at the rate of LIBOR plus a margin of 220 basis points to 300 basis points, depending on the Company’s leverage ratio, with a maturity date of March 1, 2013. The maturity date may be extended for each of two one-year extension periods, at the Company’s option and upon the satisfaction of conditions precedent. As of June 30, 2012, there were $13.6 million in outstanding borrowings on the construction loan at an interest rate of 2.45%.

10. Earnings Per Share

Basic earnings (loss) per share is computed by dividing (loss) income available to common stockholder by the weighted average shares outstanding, as adjusted for the effect of participating securities. The Company’s unvested restricted share awards are participating securities as they contain non-forfeiture rights to dividends. The impact of unvested restricted share awards on earnings (loss) per share has been calculated using the two-class method whereby earnings are allocated to the unvested restricted share awards based on dividends and the unvested restricted shares’ participation rights in undistributed earnings (losses).

The calculation of diluted earnings per share for the three and six months ended June 30, 2012 and 2011 does not include unvested restricted common shares, contingently issuable shares (Note 3), or OP units as the effect of including these equity securities was anti-dilutive to loss from continuing operations and net loss attributable to the common stockholders. In addition, common shares issuable upon settlement of the conversion feature of the 7.00% Series A Cumulative Convertible Perpetual Preferred Stock were anti-dilutive and were not included in the calculation of diluted earnings per share based on the “if converted” method for the three and six months ended June 30, 2012 and 2011.

20

Computations of basic and diluted earnings per share for the three and six months ended June 30, 2012 and 2011 (in thousands, except share data) were as follows:

	Three Months Ended						Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Basic earnings per share:
Income (loss) from continuing operations	$	357		$	(2,458	)	$	790		$	(3,034	)
Preferred dividends		(2,744	)		(875	)		(4,865	)		(1,478	)
Allocation to participating securities		(149	)		(157	)		(299	)		(305	)
Loss from continuing operations attributable to non-controlling interests		11			277			16			252
Loss from continuing operations attributable to the common stockholders	$	(2,525	)	$	(3,213	)	$	(4,358	)	$	(4,565	)
Net (loss) income attributable to the common stockholders	$	(2,376	)	$	1,061		$	(4,059	)	$	429
Allocation to participating securities		(149	)		(157	)		(299	)		(305	)
Net (loss) income applicable to the common stockholders	$	(2,525	)	$	904		$	(4,358	)	$	124
Weighted-average common shares outstanding:
Basic and diluted		32,785,490			15,855,786			32,273,468			15,685,606
Basic and diluted earnings per share:
Loss from continuing operations per share attributable to the common stockholders	$	(0.08	)	$	(0.20	)	$	(0.14	)	$	(0.29	)
Income from discontinued operations per share attributable to the common stockholders		—			0.26			—			0.30
Net loss per share attributable to the common stockholders	$	(0.08	)	$	0.06		$	(0.14	)	$	0.01

11. Derivatives and Hedging Activities

In December 2010, the Company executed two pay-fixed interest rate swaps with a notional value of $55.8 million (weighted average interest rate of 1.41%) to hedge the variable cash flows associated with one of the Company’s mortgage payables. As a result of the interest rate swaps, the Company either (1) receives the difference between a fixed interest rate (the “Strike Rate”) and one-month LIBOR if the Strike Rate is less than LIBOR or (2) pays such difference if the Strike Rate is greater than LIBOR. No initial investment was made to enter into either of the interest rate swap agreements. The Company had no derivative financial instruments prior to the execution of the two swaps.

During the three and six months ended June 30, 2012, the Company recorded no amounts in earnings attributable to hedge ineffectiveness. During the next twelve months, the Company estimates that an additional $607,000 will be reclassified from other comprehensive income as an increase to interest expense.

As of June 30, 2012, the Company had the following outstanding interest rate swaps and other derivatives instruments (in thousands):

	Fair Value(1)				Current Notional Amount		Strike Rate	Expiration Date
Type of Derivative Instrument	June 30, 2012		December 31, 2011
Interest rate swaps(2)	$	857	$	965	$	55,800	1.34% to 1.48%	December 2013
Other derivative instrument(3)		1,345		3,050				March 2013
Total derivative instruments	$	2,202	$	4,015

⁽¹⁾ Fair value of derivative instruments does not include any related accrued interest payable to the counterparty.

⁽²⁾ The interest rate swaps are classified within accounts payable and other liabilities on the accompanying condensed consolidated balance sheets.

21

⁽³⁾ The Company’s purchase agreement executed in connection with the acquisition of the Edwards Theatres property in March 2011 contained a provision determined to be an embedded derivative instrument. The embedded derivative provides a guaranteed fair value for the OP units provided to the sellers of the property if redeemed for shares of the Company’s common stock or cash, at the Company’s election, prior to March 2013. The fair value of the embedded derivative at each period is calculated through the use of a Monte Carlo valuation model based on the historical volatility and closing price of the Company’s common stock and a risk-free interest rate (see Note 16 for discussion of changes in the fair value of this derivative). The embedded derivative is classified within accounts payable and other liabilities in the accompanying condensed consolidated balance sheets.

Tabular Disclosure of the Effect of Derivative Instruments on the Income Statement

The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the three months ended June 30, 2012 and 2011 (in thousands):

	Income Statement Impact of Derivative Instruments For the Three Months Ended June 30, 2012
	Amount of Unrealized Gain/(loss) Recognized in OCI on Derivative (Effective Portion)			Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain/(loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain/ (loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Derivative instruments:
Interest rate swaps	$	(39	)		Interest expense	$	(163	)	Other income/expense	$	—
Other derivatives		—			—		—		Changes in fair value of financial instruments and gain on OP unit redemption		589
Total	$	(39	)			$	(163	)		$	589

	Income Statement Impact of Derivative Instruments For the Three Months Ended June 30, 2011
	Amount of Unrealized Gain/(loss) Recognized in OCI on Derivative (Effective Portion)			Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain/(loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain/ (loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Derivative instruments:
Interest rate swaps	$	(802	)		Interest expense	$	(163	)	Other income/expense	$	—
Other derivatives		—			—		—		Changes in fair value of financial instruments and gain on OP unit redemption		512
Total	$	(802	)			$	(163	)		$	512

22

The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the six months ended June 30, 2012 and 2011 (in thousands):

	Income Statement Impact of Derivative Instruments For the Six Months Ended June 30, 2012
	Amount of Unrealized Gain/(loss) Recognized in OCI on Derivative (Effective Portion)			Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain/(loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain/ (loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Derivative instruments:
Interest rate swaps	$	(212	)		Interest expense	$	(320	)	Other income/expense	$	—
Other derivatives		—			—		—		Changes in fair value of financial instruments and gain on OP unit redemption		1,051
Total	$	(212	)			$	(320	)		$	1,051

	Income Statement Impact of Derivative Instruments For the Six Months Ended June 30, 2011
	Amount of Unrealized Gain/(loss) Recognized in OCI on Derivative (Effective Portion)			Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain/(loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain/ (loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Derivative instruments:
Interest rate swaps	$	(733	)		Interest expense	$	(315	)	Other income/expense	$	—
Other derivatives		—			—		—		Changes in fair value of financial instruments and gain on OP unit redemption		512
Total	$	(733	)			$	(315	)		$	512

Credit-risk-related Contingent Features

Under the terms of the two interest rate swaps detailed above, the Company could be declared in default on its obligations under the swap agreements in the event that it defaults on any of its indebtedness, even if repayment of the indebtedness has not been accelerated by the lender. Additionally, because the Company’s derivative counterparty is also the lender for the hedged floating rate credit agreement, the swap agreements incorporate the loan covenant provisions of the Company’s indebtedness. Failure to comply with the loan covenant provisions would result in the Company being in default on any derivative instrument obligations covered by the agreement.

If the Company had breached any of these provisions at June 30, 2012, it could have been required to settle its obligations under the agreements at their termination value. As of June 30, 2012, the termination value defined as the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, was a liability of approximately $911,000. As of June 30, 2012, the Company has not posted any collateral related to these agreements.

Although the Company’s derivative contracts are subject to a master netting arrangement, the Company does not net its derivative fair values or any existing rights or obligations to cash collateral on the consolidated balance sheet.

23

12. Equity

The Company has issued restricted stock awards to senior executives, directors and employees totaling 1,100,042 shares of common stock (net of forfeitures of 3,000 shares), which are included in the total shares of common stock outstanding as of June 30, 2012.

As of June 30, 2012, the Company had outstanding 2,000,000 shares of 7.00% Series A Cumulative Convertible Perpetual Preferred Stock (“Series A preferred stock”), with a liquidation preference of $25.00 per share. The Company pays cumulative dividends on the Series A preferred stock when, as and if declared by the Company’s Board of Directors, at a rate of 7.00% per annum, subject to adjustment in certain circumstances. The annual dividend on each share of Series A preferred stock is $1.75, payable quarterly in arrears on the 15th calendar day of January, April, July and October of each year. Holders of the Series A preferred stock generally have no voting rights except for limited voting rights if the Company fails to pay dividends for six or more quarterly periods (whether or not consecutive) and in certain other circumstances.

The Series A preferred stock is convertible, at the holders’ option, at any time and from time to time, into common stock of the Company at an initial conversion rate of 1.6667 shares of common stock per share of Series A preferred stock, which is equivalent to an initial conversion price of $15.00 per share. The conversion price will be subject to customary adjustments in certain circumstances. On or after April 1, 2014, the Company may, at its option, convert some or all of the Series A preferred stock if the closing price of the common stock equals or exceeds 140% of the conversion price for at least 20 of the 30 consecutive trading days ending the day before the notice of exercise of conversion is sent and the Company has either declared and paid, or declared and set apart for payment, any unpaid dividends that are in arrears on the Preferred Stock. Net proceeds from this offering were approximately $47.7 million. The Company used the net proceeds of this offering to repay a portion of the outstanding indebtedness under the unsecured revolving credit facility.

The Company’s Board of Directors has authorized a stock repurchase program under which the Company may acquire up to $30.0 million of its common stock in open market and negotiated purchases with no expiration date. Through June 30, 2012, the Company has repurchased 674,866 shares of its common stock for an aggregate cost of approximately $6.7 million (including transaction costs) at a weighted average purchase price of $9.99 per share. The shares were subsequently retired by the Company.

On January 31, 2012, the Company completed the issuance of 3,680,000 shares of 8.125% Series B preferred stock (“Series B preferred stock”), with a liquidation preference of $25.00 per share, including the exercise of an overallotment option of 480,000 shares. The Company pays cumulative dividends on the Series B preferred stock, when, as and if declared by the Company’s board of directors, at a rate of 8.125% per annum, subject to adjustment in certain circumstances. The annual dividend on each share of Series B preferred stock is $2.03125, payable quarterly in arrears on the 15th calendar day of January, April, July and October of each year. Holders of the Series B preferred stock generally have no voting rights except for limited voting rights if the Company fails to pay dividends for six or more quarterly periods (whether or not consecutive) and in certain other circumstances. At any time on and after January 31, 2017, the Company may, at its option, redeem the Series B preferred stock, in whole or from time to time in part, by paying $25.00 per share, plus any accrued and unpaid dividends to, but not including, the date of redemption. In addition, upon the occurrence of a change of control, the Company or a successor may, at its option, redeem the Series B preferred stock, in whole or in part and within 120 days after the first date on which such change of control occurred, by paying $25.00 per share, plus any accrued and unpaid dividends to, but not including, the date of redemption. Net proceeds from this offering were approximately $88.7 million. The Company used the net proceeds of this offering to repay the outstanding indebtedness under its unsecured revolving credit facility and for other general corporate and working capital purposes.

On March 9, 2012, the Company entered into equity distribution agreements (the “2012 Equity Distribution Agreements”) with four sales agents, under which it can issue and sell shares of its common stock having an aggregate offering price of up to $50.0 million from time to time through, at its discretion, any of the sales agents. The sales of common stock made under the 2012 Equity Distribution Agreements will be made in “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”). During the six months ended June 30, 2012, no shares were issued under any of the 2012 Equity Distribution Agreements. Subsequent to June 30, 2012, the Company completed the issuance of 254,100 shares pursuant to the 2012 Equity Distribution Agreements, resulting in net proceeds of approximately $3.0 million at an average stock issuance price of $12.17 per share.

Consolidated net income is reported in the Company’s condensed consolidated financial statements at amounts that include the amounts attributable to both the common stockholders and the non-controlling interests. In conjunction with the Company’s formation transactions, interests in four properties were contributed in exchange for 641,062 OP units. In March 2011, the Company issued an additional 764,343 OP units in connection with the acquisition of the Edwards Theatres property. During the six months ended June 30, 2012, a total of 299,927 OP units related to the Edwards Theatres acquisition were tendered to the Company for redemption, resulting in the issuance of an additional 193,510 shares of common stock and cash payments totaling approximately $1.9 million to former unitholders (see Note 16 for further discussion).

24

OP units not held by the Company are reflected as non-controlling interest in the Company’s condensed consolidated financial statements and included as equity. OP units not held by the Company have redemption provisions that permit the Operating Partnership to settle in either cash or common stock at the option of the Operating Partnership, which have been further evaluated to determine that permanent equity classification on the balance sheet is appropriate.

The following table shows the vested ownership interests in the Operating Partnership as of June 30, 2012 and December 31, 2011:

	June 30, 2012					December 31, 2011
	OP Units		Percentage of Total			OP Units		Percentage of Total
Excel Trust, Inc.		32,813,808		96.7	%		29,271,593		95.4	%
Non-controlling interest consisting of:
OP units		1,105,478		3.3	%		1,405,405		4.6	%
Total		33,919,286		100.0	%		30,676,998		100.0	%

A charge/credit is recorded each period in the consolidated statements of income for the non-controlling interests’ proportionate share of the Company’s net income (loss). Ownership interests held by the Company do not include unvested restricted stock.

2010 Equity Incentive Award Plan

The Company has established the 2010 Equity Incentive Award Plan of Excel Trust, Inc. and Excel Trust, L.P. (the “2010 Plan”), pursuant to which the Company’s Board of Directors or a committee of its independent directors may make grants of stock options, restricted stock, stock appreciation rights and other stock-based awards to its non-employee directors, employees and consultants. The maximum number of shares of the Company’s common stock that may be issued pursuant to the 2010 Plan is 1,350,000 (of which 249,958 shares of common stock remain available for issuance as of June 30, 2012).

The following shares of restricted common stock were issued during the three months ended March 31, 2012 and June 30, 2012:

Grant Data	Price at Grant Date		Number		Vesting Period (yrs.)
Three months ended March 31, 2012(1)	$	12.42		5,000		4
Three months ended June 30, 2012(2)	$	11.99		13,356		1

⁽¹⁾ Shares issued to certain of the Company’s employees. These shares vest over four years with 25% vesting on the first anniversary of the grant date and the remainder vesting in equal quarterly installments thereafter.

⁽²⁾ Shares issued to members of the Company’s board of directors. These shares vest in equal monthly installments.

Shares of the Company’s restricted common stock generally may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution or, subject to the consent of the administrator of the 2010 Plan, a domestic relations order, unless and until all restrictions applicable to such shares have lapsed. Such restrictions expire upon vesting. Shares of the Company’s restricted common stock have full voting rights and rights to dividends upon grant. During the three and six months ended June 30, 2012, the Company recognized compensation expense of $804,000 and $1.6 million, respectively, related to the restricted common stock grants ultimately expected to vest. During the three and six months ended June 30, 2011, the Company recognized compensation expense of $1.2 million and $1.8 million, respectively, related to the restricted common stock grants ultimately expected to vest. ASC Topic 718, Compensation — Stock Compensation, requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company has estimated $0 in forfeitures. Stock compensation expense is included in general and administrative in the Company’s accompanying condensed consolidated statements of operations.

25

As of June 30, 2012 and December 31, 2011, there was approximately $5.0 million and $6.4 million, respectively, of total unrecognized compensation expense related to the non-vested shares of the Company’s restricted common stock. As of June 30, 2012, this expense was expected to be recognized over a weighted-average remaining period of 2.5 years.

	Number of Unvested Shares of Restricted Common Stock			Weighted Average Grant Date Fair Value
Balance — January 1, 2012		1,018,220		$	10.69
Grants		18,356		$	12.11
Forfeitures		—		$	—
Vested		(117,936	)	$	12.18
Balance — June 30, 2012		918,640		$	9.99
Expected to vest — June 30, 2012		918,640		$	9.99

401(k) Retirement Plan

The Company maintains a 401(k) retirement plan covering substantially all employees, which permits participants to defer up to the maximum allowable amount of their eligible compensation as determined by the Internal Revenue Service. This deferred compensation, together with Company matching contributions equal to 100% of employee deferrals up to 3.0% of eligible compensation and 50% of employee deferrals for the next 2.0% of eligible compensation, is fully vested and funded as of June 30, 2012. Costs related to the matching portion of the plan were approximately $30,000 and $21,000, respectively, for the three months ended June 30, 2012 and 2011 and approximately $57,000 and $41,000, respectively, for the six months ended June 30, 2012 and 2011.

13. Related Party Transactions

Subsequent to the Offering, many of the employees of Excel Realty Holdings, LLC (“ERH”) became employees of the Company. ERH reimburses the Company for estimated time the Company employees spend on ERH related matters. In the three months ended June 30, 2012 and 2011, approximately $79,000 and $57,000, respectively, was reimbursed to the Company from ERH and included in other income in the consolidated statements of operations. In the six months ended June 30, 2012 and 2011, approximately $148,000 and $106,000, respectively, was reimbursed to the Company from ERH and included in other income in the consolidated statements of operations.

14. Income Taxes

The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). To continue to qualify as a REIT, the Company must meet a number of organizational and operational requirements, including the requirement that it distribute currently at least 90% of its REIT taxable income to its stockholders. It is the Company’s intention to comply with these requirements and maintain the Company’s REIT status. As a REIT, the Company generally will not be subject to corporate federal, state or local income taxes on income it distributes currently (in accordance with the Code and applicable regulations) to its stockholders. If the Company fails to qualify as a REIT in any taxable year, then it will be subject to federal, state and local income taxes at regular corporate rates and may not be able to qualify as a REIT for subsequent tax years. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income, properties and operations and to federal income and excise taxes on its taxable income not distributed in the amounts and in the time frames prescribed by the Code and applicable regulations thereunder.

15. Commitments and Contingencies

Litigation:

The Company is not presently subject to any material litigation nor, to its knowledge, is any material litigation threatened against it which if determined unfavorably, would have a material effect on its condensed consolidated financial position, results of operations or cash flows.

26

Environmental Matters:

The Company follows the policy of monitoring its properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at its properties, the Company is not currently aware of any environmental liability with respect to its properties that would have a material effect on its condensed consolidated balance sheets, results of operations or cash flows. Further, the Company is not aware of any environmental liability or any unasserted claim or assessment with respect to an environmental liability that it believes would require additional disclosure or the recording of a loss contingency.

Property Acquisitions:

In connection with the Company’s note receivable secured by real estate, the Company also entered into a purchase and sale agreement to acquire the property at its election (see Note 7). The purchase price will be dependent upon leasing and net operating income of the property when and if acquired.

Other

The Company’s other commitments and contingencies include the usual obligations of real estate owners and operators in the normal course of business. In management’s opinion, these matters are not expected to have a material adverse effect on its condensed consolidated balance sheets, results of operations or cash flows. In addition, the Company expects to incur approximately $9.2 million in construction costs on two non-operating properties (primarily related to leasing commissions and final tenant build-outs).

16. Fair Value of Financial Instruments

The Company is required to disclose fair value information relating to financial instruments that are remeasured on a recurring basis and those that are only initially recognized at fair value (not required to be subsequently remeasured). The Company’s disclosures of estimated fair value of financial instruments were determined using available market information and appropriate valuation methods. The use of different assumptions or methods of estimation may have a material effect on the estimated fair value of financial instruments.

The following table reflects the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis and changes in the fair value for each reporting period (in thousands):

	Balance at June 30, 2012			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Fair value measurements on a recurring basis:
Interest rate swaps (see Note 11)	$	(857	)	$	—	$	(857	)	$	—
Contingent consideration related to business combinations(1)		772			—		—			772
Derivative instrument related to business combinations (see Note 11)(2)		(1,345	)		—		—			(1,345	)
Investment in equity securities (see Note 2)		6,461			6,461		—			—

	Balance at December 31, 2011			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Fair value measurements on a recurring basis:
Interest rate swaps (see Note 11)	$	(965	)	$	—	$	(965	)	$	—
Contingent consideration related to business combinations(3)		(1,613	)		—		—			(1,613	)
Derivative instrument related to business combinations (see Note 11)(2)		(3,050	)		—		—			(3,050	)
Investment in equity securities (see Note 2)		9,164			9,164		—			—

⁽¹⁾ Amount reflects the fair value of funds expected to be received pursuant to master lease agreements executed in connection with the Promenade Corporate Center acquisition. The Company has estimated the fair value of the asset based on its expectations of the probability of leasing or releasing spaces within the term of the master lease agreements and corresponding estimates for time required to lease, lease rates and funds required for tenant improvements and lease commissions. This amount has been included in other assets in the accompanying consolidated balance sheets, with subsequent changes in the fair value of the asset recorded as a gain (loss) in earnings in the period in which the change occurs.

27

⁽²⁾ Amount reflects the fair value of a provision within a purchase agreement that provides a guaranteed redemption value for OP units provided to the sellers of a property acquired in March 2011 (see Note 3 for additional details). The Company has estimated the fair value of the embedded derivative instrument using a Monte Carlo valuation model based on the historical volatility and closing price of the Company’s common stock and a risk-free interest rate. This amount is included in accounts payable and other liabilities in the accompanying consolidated balance sheets, with changes in the fair value of the embedded derivative recorded as gain (loss) on changes in fair value of financial instruments and gain on OP unit redemption in the consolidated statements of operations.

During the six months ended June 30, 2012, 299,927 OP units were tendered to the Company for redemption, resulting in the issuance of 193,510 shares of common stock and cash payments totaling approximately $1.9 million. The Company has recognized the acquisition of non-controlling interests based on the fair value of shares issuable in connection with the one-for-one redemption right available to all holders of OP units. The Company recognized gains of approximately $175,000 and $349,000 in the three and six months ended June 30, 2012, respectively, as a result of the excess of the fair value of the guarantee over the fair value of the consideration required to settle. In total, the Company recognized an increase in additional paid in capital and common stock, par value, of approximately $2.3 million. The Company also recognized additional gains of $415,000 and $702,000 in the three and six months ended June 30, 2012, respectively, for changes in fair value of financial instruments and gain on OP unit redemption in the consolidated statements of operations as a result of updated valuations of the remaining provision.

⁽³⁾ Additional consideration was due the prior owners of two properties acquired in 2010 based on their ability to lease-up vacant space or sell a land parcel through a defined period following the acquisition date. Additional consideration in the amount of $391,000 relating to one of the two properties was paid in 2011. The remaining contingent consideration included in the balance of accounts payable and other liabilities in the accompanying consolidated balance sheet at December 31, 2011 represents approximately $1.6 million in earn-outs paid to a prior owner in January 2012.

The following table reconciles the beginning and ending balances of financial instruments that are remeasured on a recurring basis using significant unobservable inputs (Level 3) as of June 30, 2012 (in thousands):

	Contingent Consideration Related to Business Combinations			Derivative Instruments Related to Business Combinations
Beginning balance, January 1, 2012	$	(1,613	)	$	(3,050	)
Total gains:
Included in earnings(1)		—			1,051
Purchases, issuances, or settlements(1)		2,385			654
Ending balance, June 30, 2012	$	772		$	(1,345	)

⁽¹⁾ The change of $2.4 million for contingent consideration related to business combinations during the six months ended June 30, 2012 is comprised of (1) a decrease in the liability balance due to the payment of approximately $1.6 million in earn-outs in January 2012 and (2) the recognition of a master lease asset of $772,000 related to the acquisition of the Promenade Corporate Center property. The change of $1.7 million for derivative instruments related to business combinations during the six months ended June 30, 2012 is comprised of (1) a decrease of $1.0 million due to a redemption of OP units related to the acquisition of the Edwards Theatres property (which includes a gain of $349,000 that is included in earnings) and (2) a gain of $702,000 included in earnings related to the change in the fair value of the derivative liability.

28

The following table reconciles the beginning and ending balances of financial instruments that are remeasured on a recurring basis using significant unobservable inputs (Level 3) as of June 30, 2011 (in thousands):

	Contingent Consideration Related to Business Combinations			Derivative Instruments Related to Business Combinations
Beginning balance, January 1, 2011	$	(2,438	)	$	—
Total gains:
Included in earnings(1)		328			512
Purchases, issuances, or settlements(1)		—			(4,204	)
Ending balance, June 30, 2011	$	(2,110	)	$	(3,692	)

⁽¹⁾ The change of $328,000 for contingent consideration related to business combinations during the six months ended June 30, 2011 is due to changes in the Company’s initial estimates of the fair value of contingent consideration as a result of a fewer number of executed leases. The change of $3.7 million for derivative instruments related to business combinations during the six months ended June 30, 2011 is comprised of (1) the recognition of a liability in the amount of $4.2 million in connection with the purchase of the Edwards Theatres property in March 2011 and (2) a gain of $512,000 included in earnings related to the change in the fair value of the derivative liability.

There were no additional gains or losses, purchases, sales, issuances, settlements, or transfers in or out related to fair value measurements using level three inputs during the three and six months ended June 30, 2012 and 2011.

The following table provides quantitative disclosure about significant unobservable inputs related to financial assets and liabilities measured on a recurring basis (Level 3 of the fair value hierarchy) as of June 30, 2012:

	Fair Value at June 30, 2012		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Contingent consideration related to business combinations(1)	$	772	Cash flow	Tenant improvement allowance Lease commission TI construction period	$12.00/sf 6.0% 2 months
Derivative instrument related to business combinations(2)	$	1,345	Monte Carlo	Share volatility Expected term Risk free rate	46.0% 0.7 years 0.2%

⁽¹⁾ The significant unobservable inputs used in the fair value measurement of the master lease agreement asset are any estimated tenant improvement allowances, leasing commissions and the construction periods associated with projected new leasing. Significant increases (decreases) in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for market lease rates is accompanied by a directionally similar change in the assumption used for tenant improvement allowances and/or leasing commissions.

⁽²⁾ The significant unobservable inputs used in the fair value measurement of the redemption provision are share volatility, risk-free rate and expected term. Significant increases (decreases) in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the share volatility is reflective of changes in the underlying fair value of the Company’s common stock and those of peer companies utilized in the analysis (Level 1 of the fair value hierarchy), which could significantly affect the estimated fair value of the underlying derivative instrument.

The Company has not elected the fair value measurement option for any of its other financial assets or liabilities. The Company has estimated the fair value of its financial assets using a discounted cash flow analysis based on an appropriate market rate for a similar type of instrument. The Company has estimated the fair value of its financial liabilities by using either (1) a discounted cash flow analysis using an appropriate market discount rate for similar types of instruments, or (2) a present value model and an interest rate that includes a credit value adjustment based on the estimated value of the property that serves as collateral for the underlying debt. The fair values of financial instruments not included in this table are estimated to be equal to their carrying amounts.

29

The fair values of certain additional financial assets and liabilities at June 30, 2012 and December 31, 2011 (fair value measurements categorized as Level 3 of the fair value hierarchy) are as follows (in thousands):

	June 30, 2012				December 31, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Note receivable (Other Assets)	$	750	$	750	$	—	$	—
Mortgage loan receivable		—		—		2,000		2,000
Financial liabilities:
Mortgage notes payable		272,485		277,736		244,961		248,597
Notes payable		13,629		13,617		21,000		20,661

17. Segment Disclosure

The Company’s reportable segments consist of the two types of commercial real estate properties for which management internally evaluates operating performance and financial results: Office Properties and Retail Properties. The Company was formed for the primary purpose of owning and operating Retail Properties. As such, administrative costs after the Offering are shown under the Retail Properties segment. The Retail Properties operating segment also includes undeveloped land which the Company intends to develop into retail properties.

The Company evaluates the performance of the operating segments based upon property net operating income. “Property Net Operating Income” is defined as operating revenues (rental revenue and tenant recoveries) less property operating expenses (maintenance and repairs, real estate taxes, management fees, and other operating expenses). The Company also evaluates interest expense, interest income and depreciation and amortization by segment. Corporate general and administrative expense, interest expense related to corporate indebtedness and other non-recurring gains or losses are reflected within the Retail Properties operating segment as this constitutes the Company’s primary business objective and represents the majority of its operations. There is no intersegment activity.

The following tables reconcile the Company’s segment activity to its condensed consolidated results of operations and financial position for the three and six months ended June 30, 2012 and 2011 (in thousands):

	For the Three Months Ended						For the Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Office Properties:
Total revenues	$	2,274		$	797		$	4,106		$	1,619
Property operating expenses		(819	)		(168	)		(1,416	)		(338	)
Property net operating income, as defined		1,455			629			2,690			1,281
General and administrative		(29	)		(1	)		(97	)		(1	)
Depreciation and amortization		(1,055	)		(239	)		(1,849	)		(479	)
Interest expense		(197	)		(201	)		(395	)		(400	)
Income from continuing operations		174			188			349			401
Income from discontinued operations		—			—			—			—
Net income	$	174		$	188		$	349		$	401
Retail Properties:
Total revenues	$	18,254		$	11,992		$	36,202		$	21,649
Property operating expenses		(4,144	)		(2,919	)		(7,953	)		(5,406	)
Property net operating income, as defined		14,110			9,073			28,249			16,243
General and administrative		(3,283	)		(3,139	)		(6,718	)		(5,789	)
Depreciation and amortization		(7,497	)		(6,161	)		(14,982	)		(10,082	)
Interest expense		(3,789	)		(3,302	)		(7,265	)		(5,668	)
Interest income		53			43			106			84
Changes in fair value of earn-outs		—			—			—			937
Changes in fair value of financial instruments and gain on OP unit redemption		589			840			1,051			840

30

	For the Three Months Ended						For the Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Income (loss) from continuing operations		183			(2,646	)		441			(3,435	)
Income from discontinued operations		—			4,483			—			4,999
Net income (loss)	$	183		$	1,837		$	441		$	1,564
Total Reportable Segments:
Total revenues	$	20,528		$	12,789		$	40,308		$	23,268
Property operating expenses		(4,963	)		(3,087	)		(9,369	)		(5,744	)
Property net operating income, as defined		15,565			9,702			30,939			17,524
General and administrative		(3,312	)		(3,140	)		(6,815	)		(5,790	)
Depreciation and amortization		(8,552	)		(6,400	)		(16,831	)		(10,561	)
Interest expense		(3,986	)		(3,503	)		(7,660	)		(6,068	)
Interest income		53			43			106			84
Changes in fair value of earn-outs		—			—			—			937
Gain on changes in fair value of financial instruments and gain on OP unit redemption		589			840			1,051			840
(Loss) income from continuing operations		357			(2,458	)		790			(3,034	)
Income from discontinued operations		—			4,483			—			4,999
Net (loss) income	$	357		$	2,025		$	790		$	1,965
Attributable to Controlling Interest:
Income (loss) attributable to Excel Trust, Inc.	$	357		$	2,025		$	790		$	1,965
Net loss (income) attributable to non-controlling interests in operating partnership		86			(94	)		157			(95	)
Net income attributable to non-controlling interests in consolidated joint ventures		(75	)		5			(141	)		37
Net income (loss) attributable to Excel Trust, Inc.	$	368		$	1,936		$	806		$	1,907

	June 30,		December 31,
	2012		2011
Assets:
Office Properties:
Total assets	$	67,758	$	15,562
Retail Properties:
Total assets		752,786		672,109
Total Reportable Segments & Consolidated Assets:
Total assets	$	820,544	$	687,671

31

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

As used herein, the terms “we,” “us,” “our” or the “Company” refer to Excel Trust, Inc., a Maryland corporation, and any of our subsidiaries.

The following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto appearing elsewhere in this report. We make statements in this report that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, statements pertaining to our capital resources, portfolio performance and results of operations contain forward-looking statements. Forward-looking statements involve numerous risks and uncertainties, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise, and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases. You can also identify forward-looking statements by discussions of strategy, plans or intentions. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: adverse economic or real estate developments in the retail industry or the markets in which we operate; changes in local, regional and national economic conditions; our inability to compete effectively; our inability to collect rent from tenants; defaults on or non-renewal of leases by tenants; increased interest rates and operating costs; decreased rental rates or increased vacancy rates; our failure to obtain necessary outside financing on favorable terms or at all; changes in the availability of additional acquisition opportunities; our inability to successfully complete real estate acquisitions; our failure to successfully operate acquired properties and operations; our failure to qualify or maintain our status as a REIT; our inability to attract and retain key personnel; government approvals, actions and initiatives, including the need for compliance with environmental requirements; financial market fluctuations; changes in real estate and zoning laws and increases in real property tax rates; the effects of earthquakes and other natural disasters; and lack of or insufficient amounts of insurance. While forward-looking statements reflect our good faith beliefs (or those of the indicated third parties), they are not guarantees of future performance. We disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance, including factors and risks included in other sections of this report. In addition, we discussed a number of material risks in our Annual Report on Form 10-K for the year ended December 31, 2011. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on our company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

Management’s Overview and Summary

We are a vertically integrated, self-administered, self-managed real estate firm with the principal objective of acquiring, financing, developing, leasing, owning and managing value oriented community and power centers, grocery anchored neighborhood centers and freestanding retail properties. Our strategy is to acquire high quality, well-located, dominant retail properties that generate attractive risk-adjusted returns. We target competitively protected properties in communities that have stable demographics and have historically exhibited favorable trends, such as strong population and income growth. We consider competitively protected properties to be located in the most prominent shopping districts in their respective markets, ideally situated at major intersections. We generally lease our anchor space to national and regional supermarket chains, big-box retailers and select national retailers that frequently offer necessity and value oriented items and generate regular consumer traffic. Our tenants often carry goods that are less impacted by fluctuations in the broader U.S. economy and consumers’ disposable income, which we believe generates more predictable property-level cash flows.

As of June 30, 2012, we owned an operating portfolio consisting of 23 retail properties totaling approximately 4.2 million square feet of gross leasable area (including a 50% consolidated joint venture), which were approximately 94.2% leased and had a weighted average remaining lease term of approximately seven years, based on gross leasable area. In addition, we owned two commercial office properties totaling 338,333 square feet of gross leasable area, which were 84.3% leased as of June 30, 2012. We utilize a portion of the Excel Centre property as our headquarters and the Promenade Corporate Center property. We also owned two non-operating development properties, which had substantially completed construction and were partially leased as of June 30, 2012.

Our operations are carried on primarily through our Operating Partnership. Pursuant to contribution agreements, we and our Operating Partnership received a contribution of interests in four properties as well as the property management, leasing and real

32

estate development operations of the properties in exchange for the issuance of shares of our common stock or OP units and/or the payment of cash to the contributors and the assumption of debt and other specified liabilities in connection with our initial public offering.

We receive income primarily from rents and reimbursement payments received from tenants under existing leases at each of our properties. Potential impacts to our income include unanticipated tenant vacancies, vacancy of space that takes longer to re-lease and, for non triple-net leases, operating costs that cannot be recovered from our tenants through contractual reimbursement formulas in our leases. Our operating results therefore depend materially on the ability of our tenants to make required payments and overall real estate market conditions.

Critical Accounting Policies

A complete discussion of our critical accounting policies can be found in our Annual Report on Form 10-K for the year ended December 31, 2011 which was filed with the Securities and Exchange Commission, or SEC, and is accessible on the SEC’s website at www.sec.gov.

New Accounting Standards

See Note 2 to the condensed consolidated financial statements included elsewhere herein for disclosure of new accounting standards.

Results of Operations

We operate through two reportable business segments: retail properties and office properties. The office segment consists of two properties, Excel Centre, a portion of which is utilized as our headquarters, and the Promenade Corporate Center. These properties total 338,333 square feet of gross leasable area. All of our other properties are reported in the retail segment. At June 30, 2012, we owned 23 retail operating properties with a total of approximately 4.2 million square feet of gross leasable area.

We evaluate the performance of our segments based upon property net operating income. “Property Net Operating Income” is defined as operating revenues (rental revenue and tenant recoveries) less property operating expenses (maintenance and repairs, real estate taxes, management fees, and other operating expenses). We also evaluate interest expense, interest income and depreciation and amortization by segment. Corporate general and administrative expense, interest expense related to corporate indebtedness and other non-recurring gains or losses are reflected within the retail properties operating segment as this constitutes the Company’s primary business objective and represents the majority of its operations.

You should read the following discussion in conjunction with the segment information disclosed in Note 17 to our condensed consolidated financial statements in accordance with ASC 280, Segment Reporting. Our results of operations for the three and six months ended June 30, 2012 and 2011 may not be indicative of our future results of operations.

Retail Properties

In the six months ended June 30, 2012, we acquired three retail operating properties for a total of approximately $89.9 million, including the assumption of a mortgage note in the amount of $28.3 million. We utilized borrowings from our unsecured revolving credit facility and proceeds from our Series B preferred stock offering to acquire these properties. At June 30, 2012, we owned 23 retail operating properties totaling approximately 4.2 million square feet. The properties were 94.2% leased and 20 leases were signed or renewed in the six months ended June 30, 2012 for a total of approximately 42,000 square feet. The following is a comparison of the retail properties segment operating results of the Company, for the three and six months ended June 30, 2012 and 2011.

Comparison of the Three Months Ended June 30, 2012 to the Three Months Ended June 30, 2011

Total revenues, which include rental revenues and tenant recoveries including insurance, property taxes and other operating expenses paid by tenants, increased by $6.3 million, or 52.2%, to $18.3 million for the three months ended June 30, 2012 compared to $12.0 million for the three months ended June 30, 2011. The increase was primarily related to our acquisition of seven retail operating properties after March 31, 2011, the commencement of leases at a property formerly under redevelopment that was placed into service in 2011, and the commencement of a portion of the leases at our non-operating development properties in 2011 and 2012.

Property operating expenses, which include maintenance and repair expenses, real estate taxes, management fees and other operating expenses including bad debts, increased by $1.2 million, or 42.0%, to $4.1 million for the three months ended June 30, 2012 compared to $2.9 million for the three months ended June 30, 2011. The increase was primarily related to the acquisition of seven retail operating properties after March 31, 2011, the commencement of leases at a property formerly under redevelopment that was placed into service in 2011 and the commencement of a portion of the leases at our non-operating development properties in 2011 and 2012.

33

General and administrative expenses were $3.3 million for the three months ended June 30, 2012 compared to $3.1 million for the three months ended June 30, 2011. Included was share-based compensation expense for the three months ended June 30, 2012 and 2011 of $804,000 and $1.3 million, respectively. The increase was due to higher acquisition costs related to completed and pending acquisitions, benefit and compensation costs related to an increase in total employees, and an increase in other professional and audit fees, partially offset by the decrease in share-based compensation expense as a result of the graded vesting method of recognizing compensation expense related to the 2011 performance-based stock awards, which results in declining amounts of compensation expense in 2012 and 2013 as compared to 2011.

Depreciation and amortization expense increased $1.3 million, or 21.7%, to $7.5 million for the three months ended June 30, 2012 compared to $6.2 million for the three months ended June 30, 2011. The increase was primarily related to our acquisition of seven retail operating properties after March 31, 2011 and the commencement of depreciation at our two development properties in 2012.

Interest expense increased $477,000, or 14.6%, to $3.7 million for the three months ended June 30, 2012 compared to $3.3 million for the three months ended June 30, 2011. The increase was primarily due to the assumption of approximately $142.3 million of mortgage debt in connection with our property acquisitions in 2011 and 2012, partially offset by a decrease in the interest rate and fees associated with our unsecured revolving credit facility as a result of a June 2011 amendment and a decrease in the average borrowings outstanding on our unsecured revolving credit facility for the three months ended June 30, 2012 as compared to the three months ended June 30, 2011.

A gain on changes in fair value of financial instruments and gain on OP unit redemption of approximately $589,000 was recognized in the three months ended June 30, 2012 as a result of (1) a decrease in the estimated fair value of the redemption provision of OP units arising from a property acquired in 2011 and (2) the redemption of 178,075 OP units (see Notes 3 and 16 of the consolidated financial statements contained elsewhere herein for further discussion). A gain on changes in fair value of financial instruments of approximately $512,000 was recognized in the three months ended June 30, 2011 as a result of a decrease in the estimated fair value of the redemption provision of OP units arising from a property acquired in 2011 (see Notes 3 and 16 of the consolidated financial statements contained elsewhere herein for further discussion). In addition, a gain of approximately $328,000 on changes in fair value of earn-outs (included in total expenses in the accompanying condensed consolidated statements of income) was recognized in the three months ended June 30, 2011 as a result of a decrease in the estimated fair value of additional consideration due to sellers of properties acquired in 2010 from updated leasing assumptions related to prospective leasing.

Comparison of the Six Months Ended June 30, 2012 to the Six Months Ended June 30, 2011

Total revenues, which include rental revenues and tenant recoveries including insurance, property taxes and other operating expenses paid by tenants, increased by $14.6 million, or 67.2%, to $36.2 million for the six months ended June 30, 2012 compared to $21.6 million for the six months ended June 30, 2011. The increase was primarily related to our acquisition of eight retail operating properties (not including Rite Aid, an outparcel to Vestavia Hills City Center) in 2011 and 2012, the commencement of leases at a property formerly under redevelopment that was placed into service in 2011, and the commencement of a portion of the leases at our two development properties in 2011 and 2012.

Property operating expenses, which include maintenance and repair expenses, real estate taxes, management fees and other operating expenses including bad debts, increased by $2.5 million, or 47.1%, to $7.9 million for the six months ended June 30, 2012 compared to $5.4 million for the six months ended June 30, 2011. The increase was primarily related to the acquisition of seven retail operating properties in 2011 and 2012 that are not under triple-net leases (one property and the Rite Aid outparcel at Vestavia Hills City Center acquired in 2011 were under triple-net leases), the commencement of leases at a property formerly under redevelopment that was placed into service in 2011 and the commencement of a portion of the leases at our non-operating development properties in 2011 and 2012.

General and administrative expenses were $6.7 million for the six months ended June 30, 2012 compared to $5.8 million for the six months ended June 30, 2011. Included was share-based compensation expense for the six months ended June 30, 2012 and 2011 of $1.6 million and $1.8 million, respectively. The increase was primarily due to an overall increase in compensation expense (including benefits and payroll taxes), which increased by approximately $517,000 due to an overall increase in total employees, partially offset by the decrease in share-based compensation expense as a result of the graded vesting method of recognizing compensation expense related to the 2011 performance-based stock awards, which results in declining amounts of compensation expense in 2012 and 2013 as compared to 2011. The increase was also due to higher acquisition costs related to completed and pending acquisitions, benefit and compensation costs related to an increase in total employees, and an increase in other professional and audit fees.

Depreciation and amortization expense increased $4.9 million, or 48.6%, to $15.0 million for the six months ended June 30, 2012 compared to $10.1 million for the six months ended June 30, 2011. The increase was primarily related to our acquisition of eight retail operating properties (not including Rite Aid, an outparcel to Vestavia Hills City Center) in 2011 and 2012 and the commencement of depreciation at our two development properties in 2012.

34

Interest expense increased $1.6 million, or 28.2%, to $7.2 million for the six months ended June 30, 2012 compared to $5.6 million for the six months ended June 30, 2011. The increase was primarily due to the assumption of approximately $142.3 million of mortgage debt in connection with our property acquisitions in 2011 and 2012, partially offset by a decrease in the interest rate and fees associated with our unsecured revolving credit facility as a result of a June 2011 amendment and a decrease in the average borrowings outstanding on our unsecured revolving credit facility for the six months ended June 30, 2012 as compared to the six months ended June 30, 2011.

A gain on acquisition of real estate and sale of land parcel of approximately $937,000 was recognized during the six months ended June 30, 2011 related to a property acquired in 2011, representing the difference between the fair value at the date of closing and the price paid (see Note 3 of the consolidated financial statements contained elsewhere herein).

A gain on changes in fair value of financial instruments and gain on OP unit redemption of approximately $1.1 million was recognized in the six months ended June 30, 2012 as a result of (1) a decrease in the estimated fair value of the redemption provision of OP units arising from a property acquired in 2011 and (2) the redemption of 299,927 OP units (see Notes 3 and 16 of the consolidated financial statements contained elsewhere herein for further discussion). A gain on changes in fair value of financial instruments of approximately $512,000 was recognized in the six months ended June 30, 2011 as a result of a decrease in the estimated fair value of the redemption provision of OP units arising from a property acquired in 2011 (see Notes 3 and 16 of the consolidated financial statements contained elsewhere herein for further discussion). In addition, a gain of approximately $328,000 on changes in fair value of earn-outs (included in total expenses in the accompanying condensed consolidated statements of income) was recognized in the six months ended June 30, 2011 as a result of a decrease in the estimated fair value of additional consideration due to sellers of properties acquired in 2010 from updated leasing assumptions related to prospective leasing.

Commercial Office Properties

In the six months ended June 30, 2012, we acquired one commercial office property, the Promenade Corporate Center, for a total of approximately $53.0 million, consisting of $13.9 million in cash and the issuance of shares of the Company’s common stock valued at approximately $39.1 million. The following is a comparison, for the three and six months ended June 30, 2012 and 2011 of the commercial office properties segment operating results of the Company.

Comparison of the Three Months Ended June 30, 2012 to the Three Months Ended June 30, 2011

Total revenues increased by $1.5 million, or 185.3% to $2.3 million for the three months ended June 30, 2012 compared to $797,000 for the three months ended June 30, 2011. The increase was the result of the acquisition of the Promenade Corporate Center in January 2012 and the commencement of new leases at the Excel Centre property in 2012.

Property operating expenses increased by $651,000, or 387.5% to $819,000 for the three months ended June 30, 2012 compared to $168,000 for the three months ended June 30, 2011. The increase was primarily the result of the acquisition of the Promenade Corporate Center in January 2012.

General and administrative expenses were $29,000 for the three months ended June 30, 2012 compared to $1,000 for the three months ended June 30, 2011. The increase was primarily due to costs related to the acquisition of the Promenade Corporate Center in January 2012.

Depreciation and amortization expense increased by $816,000, or 341.4% to $1.1 million for the three months ended June 30, 2012 compared to $239,000 for the three months ended June 30, 2011. The increase was primarily the result of the acquisition of the Promenade Corporate Center in January 2012.

Interest expense did not change significantly ($201,000 for the three months ended June 30, 2012 and $197,000 for the three months ended June 30, 2011) as there was no significant change in the mortgage balance outstanding related to the Excel Centre property other than scheduled principal amortization from monthly debt payments (no debt was assumed related to the acquisition of the Promenade Corporate Center).

Comparison of the Six Months Ended June 30, 2012 to the Six Months Ended June 30, 2011

Total revenues increased by $2.5 million, or 153.6% to $4.1 million for the six months ended June 30, 2012 compared to $1.6 million for the six months ended June 30, 2011. The increase was primarily the result of the acquisition of the Promenade Corporate Center in January 2012.

Property operating expenses increased by $1.1 million, or 318.9% to $1.4 million for the six months ended June 30, 2012 compared to $338,000 for the six months ended June 30, 2011. The increase was primarily the result of the acquisition of the Promenade Corporate Center in January 2012.

35

General and administrative expenses were $97,000 for the six months ended June 30, 2012 compared to $1,000 for the three months ended June 30, 2011. The increase was primarily due to costs related to the acquisition of the Promenade Corporate Center in January 2012.

Depreciation and amortization expense increased by $1.4 million, or 286.0% to $1.8 million for the six months ended June 30, 2012 compared to $479,000 for the six months ended June 30, 2011. The increase was primarily the result of the acquisition of the Promenade Corporate Center in January 2012.

Interest expense did not change significantly ($395,000 for the six months ended June 30, 2012 and $401,000 for the six months ended June 30, 2011) as there was no significant change in the mortgage balance outstanding related to the Excel Centre property other than scheduled principal amortization from monthly debt payments (no debt was assumed related to the acquisition of the Promenade Corporate Center).

Cash Flows

The following is a comparison, for the six months ended June 30, 2012 and 2011, of the cash flows of the Company.

Cash and cash equivalents were $7.2 million and $88.7 million at June 30, 2012 and 2011, respectively.

Net cash provided by operating activities was $16.6 million for the six months ended June 30, 2012 compared to $11.7 million for the six months ended June 30, 2011, an increase of $4.9 million. The increase was primarily due to cash flow generated by acquisitions and cash rent starts on new leases as well as a decrease from non-cash reconciling adjustments recognized during the six months ended June 30, 2011 (primarily gains on the acquisition and sale of real estate totaling approximately $4.9 million).

Net cash used in investing activities was $77.6 million for the six months ended June 30, 2012 compared to $34.3 million for the six months ended June 30, 2011, an increase of $43.3 million. The increase in net cash used was primarily the result of an increase in property acquisitions during the six months ended June 30, 2012 compared to the same period in 2011, partially offset by proceeds from the sale of equity securities in the amount of approximately $2.9 million and the collection of an outstanding mortgage loan receivable in the amount of $2.0 million.

Net cash provided by financing activities was $62.9 million for the six months ended June 30, 2012 compared to $104.8 million for the six months ended June 30, 2011, a decrease of $41.9 million. The decrease was primarily due to lower net proceeds from common and preferred stock offerings of $88.7 million compared to $198.0 million for the six months ended June 30, 2012 and 2011, respectively, higher payments on mortgage notes in 2012, and cash payments totaling $1.9 million pursuant to the redemption of OP units during the six months ended June 30, 2012. The decrease was partially offset by a decrease in payments on notes payable of $46.5 million compared to $114.8 million for the six months ended June 30, 2012 and 2011, respectively.

Funds From Operations

We present funds from operations, or FFO, because we consider FFO an important supplemental measure of our operating performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year-over-year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income. We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT. As defined by NAREIT, FFO represents net income (loss) (computed in accordance with GAAP), excluding real estate-related depreciation and amortization, impairment charges and net gains (losses) on the disposition of real estate assets and after adjustments for unconsolidated partnerships and joint ventures. Our computation may differ from the methodology for calculating FFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO does not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. FFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions.

The following table presents a reconciliation of our FFO for the three and six months ended June 30, 2012 and 2011 (in thousands):

36

	For the Three Months Ended						For the Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Net (loss) income attributable to the common stockholders	$	(2,376	)	$	1,061		$	(4,059	)	$	429
Non-controlling interests in operating partnership		(86	)		94			(157	)		95
Depreciation and amortization		8,552			6,607			16,831			10,976
Depreciation and amortization related to joint venture		(85	)		(45	)		(124	)		(45	)
Gain on acquisition of real estate		—			—			—			(937	)
Gain on sale of real estate assets		—			(3,976	)		—			(3,976	)
Funds from operations	$	6,005		$	3,741		$	12,491		$	6,542

Liquidity and Capital Resources

At June 30, 2012, we had $7.2 million of cash and cash equivalents on hand.

Our short-term liquidity requirements consist primarily of funds to pay for operating expenses and other expenditures directly associated with our properties, including:

• interest expense and scheduled principal payments on outstanding indebtedness,

• general and administrative expenses,

• future distributions expected to be paid to our stockholders and limited partners of our Operating Partnership,

• anticipated and unanticipated capital expenditures, tenant improvements and leasing commissions and

• construction of our three non-operating properties

Our long term liquidity requirements consist primarily of funds to pay for property acquisitions, scheduled debt maturities, renovations, expansions, capital commitments, construction obligations and other non-recurring capital expenditures that need to be made periodically, and the costs associated with acquisitions and developments of new properties that we pursue.

We intend to satisfy our short-term liquidity requirements through our existing working capital and cash provided by our operations. We believe our rental revenue net of operating expenses will generally provide cash inflows to meet our debt service obligations (excluding debt maturities), pay general and administrative expenses and fund regular distributions. We anticipate being able to refinance or will borrow from our unsecured credit facility to pay for upcoming debt maturities. We expect to incur approximately $9.2 million of additional construction costs on our two non-operating properties (primarily related to leasing commissions and final tenant build-outs). Funds for these costs are expected to come from new mortgage financing, borrowings from our unsecured revolving credit facility and existing cash. We intend to satisfy our other long-term liquidity requirements through our existing working capital, cash provided by indebtedness, long-term secured and unsecured indebtedness and the use of net proceeds from the disposition of non-strategic assets. In addition, we may, from time to time, offer and sell additional shares of preferred stock, as well as debt securities, common stock, warrants, rights and other securities to the extent necessary or advisable to meet our liquidity needs.

On January 23, 2012, we entered into a fourth amendment to our credit agreement, which increased the maximum secured indebtedness ratio to 40% of total asset value (as defined in the credit agreement) and modified certain other terms and conditions of the unsecured revolving credit facility.

The unsecured revolving credit facility has a borrowing capacity of $200.0 million, which may be increased from time to time up to an additional $200.0 million for a total borrowing capacity of $400.0 million, subject to receipt of lender commitments and other conditions precedent. The maturity date is July 7, 2014 and may be extended for one additional year at our option. The unsecured revolving credit facility bears interest at the rate of LIBOR plus a margin of 220 basis points to 300 basis points, depending on our leverage ratio. We also pay a 0.35% fee for any unused portion of the unsecured revolving credit facility. Borrowings under the unsecured revolving credit facility were $0 at June 30, 2012. In addition, we issued a $12.1 million letter of credit from the unsecured revolving credit facility, which secures an outstanding $12.0 million bond payable for the Northside Mall. This bond is included with the mortgages payable on our consolidated balance sheet. At June 30, 2012, there was approximately $134.5 million available for borrowing under the unsecured revolving credit facility.

37

On July 20, 2012, we entered into an amended and restated credit agreement, which provided an increase in borrowings available under our credit facility from $200.0 million to $250.0 million, decreased the fees pertaining to the unused capacity and the applicable interest rate and extended the maturity date. The amended maturity date is July 19, 2016, which may be extended for one additional year at our option. In addition, the amendment improved certain other terms and conditions of the unsecured revolving credit facility.

Our ability to borrow funds under the credit agreement and the amount of funds available under the credit agreement at any particular time, are subject to our meeting borrowing base requirements. The amount of funds we can borrow is determined by the net operating income of our unencumbered assets that comprise the borrowing base. We are also subject to financial covenants relating to maximum leverage ratios on unsecured, secured and overall debt, minimum fixed coverage ratios, minimum amount of net worth, dividend payment restrictions, and certain investment limitations.

The following is a summary of key financial covenants and their covenant levels as of June 30, 2012:

	Required			Actual
Key financial covenant:
Ratio of total liabilities to total asset value (maximum)		60.0	%		35.9	%
Ratio of adjusted EBITDA to fixed charges (minimum)		1.50			1.63
Ratio of secured indebtedness to total asset value (maximum)		40.0	%		34.4	%

⁽¹⁾ For a complete listing of all debt covenants related to our consolidated indebtedness as well as definitions of the above terms, please refer to our applicable filings with the SEC.

Under our credit agreement, cash dividends on our common stock, as well as our preferred stock, may not exceed the greater of (1) 95% of our FFO (as defined in the credit agreement), and (2) the amount required for us to qualify and maintain our REIT status. If an event of default exists, we may only make distributions sufficient to qualify and maintain our REIT status. As of June 30, 2012, we believe that we were in compliance with all of the covenants under our credit agreement.

We have filed a shelf registration statement with the SEC, as amended, which permits us, from time to time, to offer and sell debt securities, common stock, preferred stock, warrants and other securities to the extent necessary or advisable to meet our liquidity needs.

On January 31, 2012, we completed the issuance of 3,680,000 shares of Series B preferred stock, with a liquidation preference of $25.00 per share. We pay cumulative dividends on the Series B preferred stock, when, as and if declared by our board of directors, at a rate of 8.125% per annum. Net proceeds from this offering were approximately $88.7 million. We used the net proceeds of this offering to repay the outstanding indebtedness under our unsecured revolving credit facility, with the remainder intended to fund future acquisitions and for other general corporate and working capital purposes.

On March 9, 2012, we entered into equity distribution agreements with four sales agents, under which we can issue and sell shares of our common stock having an aggregate offering price of up to $50.0 million from time to time through, at our discretion, any of the sales agents. The sales of common stock made under the equity distribution agreements will be made in “at the market” offerings as defined in the Securities Act. During the six months ended June 30, 2012, no shares were issued under any of the equity distribution agreements. Subsequent to June 30, 2012, we completed the issuance of 254,100 shares pursuant to the equity distribution agreements, resulting in net proceeds of approximately $3.0 million at an average stock issuance price of $12.17 per share.

We may from time to time seek to repurchase or redeem outstanding shares of our common stock or preferred stock or other securities in open market purchases, privately negotiated transactions or otherwise. Such repurchases or redemptions, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.

As of June 30, 2012, our ratio of debt-to-gross undepreciated asset value was approximately 33.7%. Our organizational documents do not limit the amount or percentage of debt that we may incur, nor do they limit the types of properties we may acquire or develop, and our Board of Directors may modify our debt policy from time to time. The amount of leverage we will deploy for particular investments in our target assets will depend upon our management team’s assessment of a variety of factors, which may include the anticipated liquidity and price volatility of the target assets in our investment portfolio, the potential for losses, the availability and cost of financing the assets, our opinion of the creditworthiness of our financing counterparties, the health of the U.S. economy and commercial mortgage markets, our outlook for the level, slope and volatility of interest rates, the credit quality of our target assets and the collateral underlying our target assets. Accordingly, the ratio of debt-to-gross undepreciated asset value may increase or decrease beyond the current amount.

38

Commitments, Contingencies and Contractual Obligations

The following table outlines our contractual obligations (dollars in thousands) at June 30, 2012 related to our mortgage and note indebtedness and other commitments:

	Payments by Period
	2012 (six months)		2013-2014		2015-2016		Thereafter		Total
Principal payments — fixed rate debt(1)	$	2,053	$	157,254	$	48,710	$	51,736	$	259,753
Principal payments — variable rate debt(2)		—		13,629		—		12,000		25,629
Interest payments — fixed rate debt(1)		6,302		21,067		8,475		9,152		44,996
Interest payments — variable rate debt(2)		178		101		46		391		716
Construction costs(3)		1,900		7,273		—		—		9,173
	$	10,433	$	199,324	$	57,231	$	73,279	$	340,267

⁽¹⁾  Includes a mortgage payable at our Park West Place property, which bears interest at a rate of LIBOR plus 2.5% (contractual interest rate of 2.75% at June 30, 2012). In December 2010, we entered into two interest rate swap contracts equal to the notional value of the mortgage payable, which fix LIBOR at an average of 1.41% for the term of the mortgage.

⁽²⁾ Includes redevelopment revenue bonds at our Northside Mall property and outstanding borrowings on our unsecured revolving credit facility and our construction loan (our unsecured revolving credit facility had a balance of $0 at June 30, 2012). Interest on the redevelopment bonds is reset weekly and determined by the bond remarketing agent based on the market value of the bonds (interest rate of 0.19% at June 30, 2012). The unsecured revolving credit facility and the construction loan each bears interest at the rate of LIBOR plus a margin of 220 basis points to 300 basis points, depending on our leverage ratio (interest rate of 2.45% at June 30, 2012).

⁽³⁾ Amount represents our estimate of costs expected to be incurred to complete the construction of our two non-operating properties.

Off-Balance Sheet Arrangements

In June 2012, a $2.0 million note receivable to PC Retail, LLC to facilitate the land acquisition and development of a shopping center anchored by Publix in Brandon, Florida was repaid in full, including interest accrued through the date of repayment. We have also entered into a purchase and sale agreement with PC Retail, LLC to acquire the property upon completion of development. The purchase price will be based on the income from leasing of the center. In June 2012, we executed an amendment whereby the closing date for the potential acquisition was extended through December 31, 2012.

We do not have any other relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purposes entities, which typically are established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. Further, we have not guaranteed any obligations of unconsolidated entities nor do we have any commitments or intent to provide funding to any such entities. Accordingly, we are not materially exposed to any other financing, liquidity, market or credit risk that could arise if we had engaged in these relationships, than as described above.

Distribution Policy

We have elected to be taxed as a REIT under the Code. To continue to qualify as a REIT, we must meet a number of organizational and operational requirements, including the requirement that we distribute currently at least 90% of our REIT taxable income to our stockholders. It is our intention to comply with these requirements and maintain our REIT status. As a REIT, we generally will not be subject to corporate United States federal, state or local income taxes on income we distribute currently (in accordance with the Code and applicable regulations) to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to United States federal, state and local income taxes at regular corporate rates and may not be able to qualify as a REIT for subsequent tax years. Even if we qualify for United States federal taxation as a REIT, we may be subject to certain state and local taxes on our income properties and operations and to United States federal income and excise taxes on our taxable income not distributed in the amounts and in the time frames prescribed by the Code and applicable regulations thereunder.

39

Inflation

Some of our leases contain provisions designed to mitigate the adverse impact of inflation. These provisions generally increase rental rates during the terms of the leases either at fixed rates or indexed escalations (based on the Consumer Price Index or other measures). We may be adversely impacted by inflation on our leases that do not contain indexed escalation provisions. In addition, most of our leases require the tenant to pay its share of operating expenses, including common area maintenance costs, real estate taxes and insurance. This may reduce our exposure to increases in costs and operating expenses resulting from inflation, assuming our properties remain leased and tenants fulfill their obligations to reimburse us for such expenses.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our future income, cash flows and fair values relevant to financial instruments depend upon prevailing market interest rates. Market risk is the exposure to loss resulting from changes in interest rates, foreign currency exchange rates, commodity prices and equity prices. The primary market risk to which we believe we are exposed is interest rate risk. Many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other factors that are beyond our control contribute to interest rate risk.

The fair value of mortgages payable (before premium or discount) at June 30, 2012 was approximately $277.7 million compared to the carrying amount of $272.5 million. A 100 basis point increase in market interest rates would result in a decrease in the fair value of our fixed-rate debt by approximately $5.1 million at June 30, 2012. A 100 basis point decrease in market interest rates would result in an increase in the fair market value of our fixed-rate debt by approximately $5.3 million at June 30, 2012.

We have entered into a $200.0 million unsecured revolving credit facility. The unsecured revolving credit facility bears interest at the rate of LIBOR plus a margin of 220 basis points to 300 basis points, depending on our leverage ratio. As of June 30, 2012, we had $12.1 million of debt and commitments outstanding under our unsecured revolving credit facility, comprised of a $12.1 million letter of credit issued under the facility. At June 30, 2012, the outstanding balance on our unsecured revolving credit facility was $0.

We have entered into an $18.0 million construction loan agreement in connection with construction activities at one of our development properties. The construction loan bears interest at the rate of LIBOR plus a margin of 220 basis points to 300 basis points, depending on our leverage ratio. At June 30, 2012, the outstanding balance on our construction loan was $13.6 million at an interest rate of 2.45%.

In order to modify and manage the interest rate characteristics of our outstanding debt and to limit the effects of interest rate risks on our operations, we may utilize a variety of financial instruments, including interest rate swaps, caps, floors and other interest rate exchange contracts. The use of these types of instruments to hedge our exposure to changes in interest rates carries additional risks, including counterparty credit risk, the enforceability of hedging contracts and the risk that unanticipated and significant changes in interest rates will cause a significant loss of basis in the contract. To limit counterparty credit risk we will seek to enter into such agreements with major financial institutions with high credit ratings. There can be no assurance that we will be able to adequately protect against the foregoing risks and that we will ultimately realize an economic benefit that exceeds the related amounts incurred in connection with engaging in such hedging activities. We do not enter into such contracts for speculative or trading purposes.

As of June 30, 2012, we had two interest rate derivatives that were designated as cash flow hedges of interest rate risk. Both derivatives were interest rate swaps and the notional amount totaled $55.8 million. The interest rate swap contracts fixed LIBOR at an average of 1.41% for the term of a mortgage loan which expires in December 2013. The fair value of these derivative financial instruments was approximately $857,000 and is classified in accounts payable and other liabilities on the accompanying condensed consolidated balance sheets.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act, is processed, recorded, summarized, and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As required by Rule 13a-15(b) under the Exchange Act, we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded, as of that time, that our disclosure controls and procedures were effective at the reasonable assurance level.

40

Changes in Internal Control over Financial Reporting

In addition, there has been no change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15(d)-15(f) under the Exchange Act) that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

We are not presently involved in any material litigation nor, to our knowledge, is any material litigation threatened against us or our properties that we believe would have a material adverse effect on our financial position, results of operations or liquidity. We are involved in routine litigation arising in the ordinary course of business, none of which we believe to be material.

Item 1A. Risk Factors

For a discussion of our potential risks and uncertainties, see the section entitled “Risk Factors” beginning on page 9 in our Annual Report on Form 10-K for the year ended December 31, 2011 which was filed with the SEC and is accessible on the SEC’s website at www.sec.gov. There have been no material changes to the risk factors disclosed in the Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

41

Item 6. Exhibits

Exhibit Number	Description of Exhibit
10.1	Amended and Restated Credit Agreement, dated July 20, 2012, by and among Excel Trust, L.P., as Borrower, Excel Trust, Inc., as Parent, Wells Fargo Securities, LLC and KeyBanc Capital Markets, Inc., as Joint Lead Arrangers and Joint Bookrunners, Wells Fargo Bank, National Association, as Administrative Agent, KeyBank National Association, as Syndication Agent, US Bank, National Association, PNC Bank, National Association and Union Bank, N.A., as Documentation Agents, and certain other lenders party thereto.(1)
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document.†
101.SCH	XBRL Taxonomy Extension Schema Document.†
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.†
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.†
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.†
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.†

† Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under these sections.

⁽¹⁾ Incorporated herein by reference to Excel Trust, Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 25, 2012.

42

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 thereunto duly authorized.

EXCEL TRUST, INC.
By:	/s/    GARY B. SABIN
	Gary B. Sabin
	Chairman and Chief Executive Officer (Principal Executive Officer)
By:	/s/    JAMES Y. NAKAGAWA
	James Y. Nakagawa
	Chief Financial Officer (Principal Financial Officer)

Date: August 2, 2012

43

EXHIBIT INDEX

Exhibit Number	Description of Exhibit
10.1	Amended and Restated Credit Agreement, dated July 20, 2012, by and among Excel Trust, L.P., as Borrower, Excel Trust, Inc., as Parent, Wells Fargo Securities, LLC and KeyBanc Capital Markets, Inc., as Joint Lead Arrangers and Joint Bookrunners, Wells Fargo Bank, National Association, as Administrative Agent, KeyBank National Association, as Syndication Agent, US Bank, National Association, PNC Bank, National Association and Union Bank, N.A., as Documentation Agents, and certain other lenders party thereto.(1)
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document.†
101.SCH	XBRL Taxonomy Extension Schema Document.†
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.†
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.†
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.†
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.†

† Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under these sections.

⁽¹⁾  Incorporated herein by reference to Excel Trust, Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 25, 2012.

44

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT

TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Gary B. Sabin, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Excel Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2012	/s/ GARY B. SABIN
	Gary B. Sabin
	Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT

TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James Y. Nakagawa, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Excel Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2012	/s/ JAMES Y. NAKAGAWA
	James Y. Nakagawa
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Excel Trust, Inc. (the “Company”) hereby certifies, to his knowledge, that:

(i) the Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 of the Company (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ GARY B. SABIN

Gary B. Sabin

Chairman and Chief Executive Officer

Date: August 2, 2012

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Excel Trust, Inc. (the “Company”) hereby certifies, to his knowledge, that:

(i) the Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 of the Company (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ JAMES Y. NAKAGAWA

James Y. Nakagawa

Chief Financial Officer

Date: August 2, 2012

XML

Summary of Significant Accounting Policies (Details Textual) (USD $)	3 Months Ended		6 Months Ended			1 Months Ended	6 Months Ended
	Jun. 30, 2012 Customer	Jun. 30, 2011 Customer	Jun. 30, 2012 Customer Property	Jun. 30, 2011 Customer	Dec. 31, 2011	Mar. 31, 2011 Edwards Theatres property [Member]	Jun. 30, 2012 Edwards Theatres property [Member]
Real Estate Properties [Line Items]
OP units issued in connection with acquisition						764,343
OP units tendered for redemption			299,927				299,927
Common stock issued in connection with redemption shares			193,510				193,510
Cash paid for redemption			$ 1,900,000				$ 1,900,000
OP units outstanding							464,416
Summary of Significant Accounting Policies (Textual) [Abstract]
Deferred rents	2,500,000		2,500,000		3,000,000
Increase in Rental income	589,000	427,000	1,300,000	798,000
Preferred stock sold, Shares			118,222
Preferred stock redeemed by issuing company			67,823
Net Proceeds from sale of Preferred stock			2,900,000
Gain on sale of Preferred stock included in Other Income	0		11,000
Allowances for uncollectible accounts	635,000		635,000		631,000
Bad debt expense	148,000	127,000	395,000	331,000
Number of properties on which interest is exchanged for OP units			4
OP units exchanged			641,062
Consideration Per OP unit			14.00
Guarantee by Federal deposit insurance corporation	$ 250,000		$ 250,000
Number of major tenants	0	0	0	0
Percentage of revenue	10.00%	10.00%	10.00%	10.00%

XML

Mortgages Payable, Net (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2010
Debt Instrument [Line Items]
Maturity date			June 2014
Mortgages Payable Net, (Textual) [Abstract]
Loan bears interest rate of Libor plus	2.50%		2.50%
Loan bears interest rate			2.75%
Average of term loan					1.41%
Market value of bonds interest rate	0.19%		0.19%
Letter of credit issued under revolving credit facility	$ 12,100,000		$ 12,100,000
Underwriter's discount related to original issuance of the bonds	112,000		112,000
Total Interest Cost Capitalized	$ 29,000	$ 128,000	$ 139,000	$ 148,000
Redevelopment Revenue Bonds [Member]
Debt Instrument [Line Items]
Maturity date			November 2035

XML

Lease Intangible Liabilities, Net (Details 1) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Schedule of Estimated Amortization of Lease Intangible Liabilities
2012 (remaining six months)	$ 1,552
2013	2,780
2014	2,546
2015	2,001
2016	1,600
Thereafter	5,965
Lease intangibles, net	$ 16,444	$ 13,843

XML

Fair Value of Financial Instruments (Details 2) (USD $)			6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 Fair Value Inputs Level3 [Member] Cash Flow [Member]	Jun. 30, 2012 Fair Value Inputs Level3 [Member] Monte Carlo [Member]
Schedule of Acquisitions
Contingent consideration related to business combinations Fair Value	$ 2,400,000	$ 328,000	$ 772,000
Derivative instrument related to business combinations Fair Value				1,345,000
Unobservable input, Tenant improvement allowance			$ 12,000
Unobservable input, lease commission			6.00%
Unobservable input, construction period			2 months
Unobservable Input, Share volatility				46.00%
Unobservable Input, Expected term				10 months 24 days
Unobservable Input, Risk free rate				0.20%

XML

Notes Payable (Details) (USD $)	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Notes Payable (Textual) [Abstract]
Amended maturity date	Jul. 19, 2016
Letter of credit from the revolving credit facility	$ 12,100,000
Amount outstanding	271,753,000	245,652,000
Maximum [Member]
Notes Payable (Textual) [Abstract]
Increase in borrowings under revolving credit facility	250,000,000
Minimum [Member]
Notes Payable (Textual) [Abstract]
Increase in borrowings under revolving credit facility	200,000,000
Credit Agreement [Member]
Notes Payable (Textual) [Abstract]
Increase in borrowings under revolving credit facility	200,000,000
Increase in additional borrowings under revolving credit facility	200,000,000
Revolving credit facility, total borrowing capacity	400,000,000
Amended maturity date	Jul. 07, 2014
Revolving credit facility, covenants requiring the maintenance	(1) maximum leverage ratios on unsecured, secured and overall debt, and (2) minimum fixed coverage ratios
Percentage Of Total Asset Value Increased In Ratio Of Secured Indebtedness	40.00%
Percentage of unused fee	0.35%
Borrowings from revolving credit facility	0
Letter of credit from the revolving credit facility	12,100,000
Amount outstanding	12,000,000
Available for borrowing under the revolving credit facility	134,500,000
Credit Agreement [Member] | Maximum [Member]
Notes Payable (Textual) [Abstract]
Revolving credit facility bears interest (in basis points)	300 basis points
Credit Agreement [Member] | Minimum [Member]
Notes Payable (Textual) [Abstract]
Revolving credit facility bears interest (in basis points)	220 basis points
Construction Loan [Member]
Notes Payable (Textual) [Abstract]
Maximum Borrowings	18,000,000
Amended maturity date	Mar. 01, 2013
Outstanding Borrowings	$ 13,600,000
Interest rate on construction loan	2.45%
Construction Loan [Member] | Maximum [Member]
Notes Payable (Textual) [Abstract]
Revolving credit facility bears interest (in basis points)	300 basis points
Construction Loan [Member] | Minimum [Member]
Notes Payable (Textual) [Abstract]
Revolving credit facility bears interest (in basis points)	220 basis points

XML

Lease Intangible Assets, Net (Details Textual) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Lease Intangible Assets, Net (Textual) [Abstract]
Amortization expense recorded on the lease intangible assets	$ 767,000	$ 425,000	$ 1,700,000	$ 718,000
In-Place Leases [Member]
Lease Intangible Assets, Net (Textual) [Abstract]
Net of accumulated amortization for lease intangible assets	16,300,000		16,300,000		11,800,000
Weighted average remaining life of lease intangible assets (in months)	49 months		75 months		83 months
Above Market Leases
Lease Intangible Assets, Net (Textual) [Abstract]
Net of accumulated amortization for lease intangible assets	3,600,000		3,600,000		2,600,000
Weighted average remaining life of lease intangible assets (in months)			69 months		75 months
Amortization expense recorded on the lease intangible assets	823,000	406,000	1,600,000	743,000
Leasing Commissions
Lease Intangible Assets, Net (Textual) [Abstract]
Net of accumulated amortization for lease intangible assets	3,900,000		3,900,000		2,800,000
Weighted average remaining life of lease intangible assets (in months)			103 months		113 months
Amortization expense recorded on the lease intangible assets	$ 4,600,000	$ 2,900,000	$ 9,500,000	$ 5,300,000

XML

Equity (Tables )

6 Months Ended

Jun. 30, 2012

Equity [Abstract]

Statement showing Vested Ownership Interests in Operating Partnership

	June 30, 2012					December 31, 2011
	OP Units		Percentage of Total			OP Units		Percentage of Total
Excel Trust, Inc.		32,813,808		96.7	%		29,271,593		95.4	%
Non-controlling interest consisting of:
OP units		1,105,478		3.3	%		1,405,405		4.6	%
Total		33,919,286		100.0	%		30,676,998		100.0	%

Restricted Common Stock Activity

Grant Data	Price at Grant Date		Number		Vesting Period (yrs.)
Three months ended March 31, 2012 (1)	$	12.42		5,000		4
Three months ended June 30, 2012 (2)	$	11.99		13,356		1

⁽¹⁾ Shares issued to certain of the Company’s employees. These shares vest over four years with 25% vesting on the first anniversary of the grant date and the remainder vesting in equal quarterly installments thereafter.

⁽²⁾ Shares issued to members of the Company’s board of directors. These shares vest in equal monthly installments.

Non-Vested Restricted Common Stock Activity

	Number of Unvested Shares of Restricted Common Stock			Weighted Average Grant Date Fair Value
Balance — January 1, 2012		1,018,220		$	10.69
Grants		18,356		$	12.11
Forfeitures		—		$	—
Vested		(117,936	)	$	12.18
Balance — June 30, 2012		918,640		$	9.99
Expected to vest — June 30, 2012		918,640		$	9.99

XML

Segment Disclosure (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Reconciliation of company and ETP's segment operations activity
Total revenues	$ 20,528	$ 12,789	$ 40,308	$ 23,268
Property operating expenses	(16,827)	(12,299)	(33,015)	(21,767)
Property net operating income, as defined	3,701	490	7,293	1,501
General and administrative	(3,312)	(3,140)	(6,815)	(5,790)
Depreciation and amortization	(8,552)	(6,400)	(16,831)	(10,561)
Interest expense	(3,986)	(3,503)	(7,660)	(6,068)
Interest income	53	43	106	84
Changes in fair value of earn-outs		328		328
Changes in fair value of financial instruments and gain on OP unit redemption	589	512	1,051	512
Income (loss) from continuing operations	357	(2,458)	790	(3,034)
Income from discontinued operations		507		1,023
Net income (loss)	357	2,025	790	1,965
Income (loss) attributable to Excel Trust, Inc.	357	2,025	790	1,965
Net loss (income) attributable to non-controlling interests in operating partnership	86	(94)	157	(95)
Net income attributable to non-controlling interests in consolidated joint ventures	(75)	5	(141)	37
Net income (loss) attributable to Excel Trust, Inc.	368	1,936	806	1,907
Office Properties [Member]
Reconciliation of company and ETP's segment operations activity
Total revenues	2,274	797	4,106	1,619
Property operating expenses	(819)	(168)	(1,416)	(338)
Property net operating income, as defined	1,455	629	2,690	1,281
General and administrative	(29)	1	(97)	1
Depreciation and amortization	(1,055)	(239)	(1,849)	(479)
Interest expense	(197)	(201)	(395)	(400)
Income (loss) from continuing operations	174	188	349	401
Income from discontinued operations
Net income (loss)	174	188	349	401
Retail Properties [Member]
Reconciliation of company and ETP's segment operations activity
Total revenues	18,254	11,992	36,202	21,649
Property operating expenses	(4,144)	(2,919)	(7,953)	(5,406)
Property net operating income, as defined	14,110	9,073	28,249	16,243
General and administrative	(3,283)	(3,139)	(6,718)	(5,789)
Depreciation and amortization	(7,497)	(6,161)	(14,982)	(10,082)
Interest expense	(3,789)	(3,302)	(7,265)	(5,668)
Interest income	53	43	106	84
Changes in fair value of earn-outs				937
Changes in fair value of financial instruments and gain on OP unit redemption	589	840	1,051	840
Income (loss) from continuing operations	183	(2,646)	441	(3,435)
Income from discontinued operations		4,483		4,999
Net income (loss)	183	1,837	441	1,564
Total Reportable Segments [Member]
Reconciliation of company and ETP's segment operations activity
Total revenues	20,528	12,789	40,308	23,268
Property operating expenses	(4,963)	(3,087)	(9,369)	(5,744)
Property net operating income, as defined	15,565	9,702	30,939	17,524
General and administrative	(3,312)	(3,140)	(6,815)	(5,790)
Depreciation and amortization	(8,552)	(6,400)	(16,831)	(10,561)
Interest expense	(3,986)	(3,503)	(7,660)	(6,068)
Interest income	53	43	106	84
Changes in fair value of earn-outs				937
Changes in fair value of financial instruments and gain on OP unit redemption	589	840	1,051	840
Income (loss) from continuing operations	357	(2,458)	790	(3,034)
Income from discontinued operations		4,483		4,999
Net income (loss)	$ 357	$ 2,025	$ 790	$ 1,965

XML

Earnings Per Share (Details Textual)	6 Months Ended
	Jun. 30, 2012
Earnings Per Share (Textual) [Abstract]
Dividend rate on preferred Series A stock	7.00%

XML

Fair Value of Financial Instruments (Details 3) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011	Dec. 09, 2010
Financial assets
Note receivables (Other Assets)	$ 750
Note receivables (Other Assets), fair value	750
Mortgage and loan receivable		2,000	2,000
Mortgage loan receivable, fair value		2,000
Financial liabilities
Mortgages notes payable, carrying value	272,485	244,961
Mortgage notes payable, fair value	277,736	248,597
Notes payable, carrying value	13,629	21,000
Notes payable, fair value	$ 13,617	$ 20,661

XML

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation:

The accompanying condensed consolidated financial statements of the Company include all the accounts of the Company, the Operating Partnership and the subsidiaries of the Operating Partnership. The financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all the information and footnotes required by GAAP for complete financial statements and have not been audited by independent registered public accountants.

The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements for the interim periods have been made. Operating results for the six months ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. All significant intercompany balances and transactions have been eliminated in consolidation.

Cash and Cash Equivalents

Cash and Cash Equivalents:

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents, for which cost approximates fair value, due to their short term maturities.

Restricted Cash

Restricted Cash:

Restricted cash is comprised of impound reserve accounts for property taxes, insurance, capital improvements and tenant improvements.

Accounts Payable and Other Liabilities

Accounts Payable and Other Liabilities:

Included in accounts payable and other liabilities are deferred rents in the amount of $2.5 million and $3.0 million at June 30, 2012 and December 31, 2011, respectively.

Revenue Recognition

Revenue Recognition:

The Company commences revenue recognition on its leases based on a number of factors. In most cases, revenue recognition under a lease begins when the lessee takes possession of or controls the physical use of the leased asset. Generally, this occurs on the lease commencement date. In determining what constitutes the leased asset, the Company evaluates whether the Company or the lessee is the owner, for accounting purposes, of the tenant improvements. If the Company is the owner, for accounting purposes, of the tenant improvements, then the leased asset is the finished space and revenue recognition begins when the lessee takes possession of the finished space, typically when the improvements are substantially complete. If the Company concludes that it is not the owner, for accounting purposes, of the tenant improvements (the lessee is the owner), then the leased asset is the unimproved space and any tenant improvement allowances funded under the lease are treated as lease incentives, which reduce revenue recognized on a straight-line basis over the remaining non-cancelable term of the respective lease. In these circumstances, the Company begins revenue recognition when the lessee takes possession of the unimproved space for the lessee to construct improvements. The determination of who is the owner, for accounting purposes, of the tenant improvements is highly subjective and determines the nature of the leased asset and when revenue recognition under a lease begins. The Company considers a number of different factors to evaluate whether it or the lessee is the owner of the tenant improvements for accounting purposes. These factors include:

• whether the lease stipulates how and on what a tenant improvement allowance may be spent;

• whether the tenant or landlord retains legal title to the improvements;

• the uniqueness of the improvements;

• the expected economic life of the tenant improvements relative to the length of the lease;

• the responsible party for construction cost overruns; and

• who constructs or directs the construction of the improvements.

Minimum rental revenues are recognized on a straight-line basis over the terms of the related lease. The difference between the amount of cash rent due in a year and the amount recorded as rental income is referred to as the “straight-line rent adjustment.” Rental income (net of write-offs for uncollectible amounts) was increased by $589,000 and $427,000 in the three months ended June 30, 2012 and 2011, respectively, and $1.3 million and $798,000, respectively, in the six months ended June 30, 2012 and 2011 due to the straight-line rent adjustment.

Estimated recoveries from certain tenants for their pro rata share of real estate taxes, insurance and other operating expenses are recognized as revenues in the period the applicable expenses are incurred or as specified in the leases. Other tenants pay a fixed rate and these tenant recoveries are recognized as revenue on a straight-line basis over the term of the related leases.

Property

Property:

Costs incurred in connection with the development or construction of properties and improvements are capitalized. Capitalized costs include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes and related costs and other direct costs incurred during the period of development. The Company capitalizes costs on land and buildings under development until construction is substantially complete and the property is held available for occupancy. The determination of when a development project is substantially complete and when capitalization must cease involves a degree of judgment. The Company considers a construction project as substantially complete and held available for occupancy upon the completion of landlord-owned tenant improvements or when the lessee takes possession of the unimproved space for construction of its own improvements, but no later than one year from cessation of major construction activity. The Company ceases capitalization on the portion substantially completed and occupied or held available for occupancy, and capitalizes only those costs associated with any remaining portion under construction. In March 2012, the Company reclassified the majority of construction in progress costs relating to two non-operating properties into the corresponding buildings, site improvements and tenant improvements financial statement line items upon substantial completion of development activities.

Maintenance and repairs expenses are charged to operations as incurred. Costs for major replacements and betterments, which include HVAC equipment, roofs, parking lots, etc., are capitalized and depreciated over their estimated useful lives. Gains and losses are recognized upon disposal or retirement of the related assets and are reflected in earnings.

Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed

Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed:

The Company reviews long-lived assets and certain identifiable intangible assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. This assessment considers expected future operating income, trends and prospects, as well as the effects of demand, competition and other economic factors. Such factors include the tenants’ ability to perform their duties and pay rent under the terms of the leases. The determination of recoverability is made based upon the estimated undiscounted future net cash flows, excluding interest expense, expected to result from the long-lived asset’s use and eventual disposition. The Company’s evaluation as to whether impairment may exist, including estimates of future anticipated cash flows, are highly subjective and could differ materially from actual results in future periods. The amount of impairment loss, if any, is determined by comparing the fair value, as determined by a discounted cash flows analysis, with the carrying value of the related assets. Although the Company’s strategy is to hold its properties over a long-term period, if the strategy changes or market conditions dictate that the sale of properties at an earlier date would be preferable, an impairment loss may be recognized to reduce the property to the lower of the carrying amount or fair value less cost to sell.

Investments in Partnerships and Limited Liability Companies

Investments in Partnerships and Limited Liability Companies:

The Company evaluates its investments in limited liability companies and partnerships to determine whether such entities may be a variable interest entity (“VIE”) and, if a VIE, whether the Company is the primary beneficiary. Generally, an entity is determined to be a VIE when either (1) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support provided by any parties or (2) as a group, the holders of the equity investment lack one or more of the essential characteristics of a controlling financial interest. The primary beneficiary is the entity that has both (1) the power to direct matters that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. In addition, the Company considers the form of ownership interest, voting interest, the size of the investment (including loans) and the rights of other investors to participate in policy making decisions, to replace or remove the manager and to liquidate or sell the entity. The obligation to absorb losses and the right to receive benefits when a reporting entity is affiliated with a VIE must be based on ownership, contractual, and/or other pecuniary interests in that VIE.

If the foregoing conditions do not apply, the Company considers whether a general partner or managing member controls a limited partnership or limited liability company. The general partner in a limited partnership or managing member in a limited liability company is presumed to control that limited partnership or limited liability company. The presumption may be overcome if the limited partners or members have either (1) the substantive ability to dissolve the limited partnership or limited liability company or otherwise remove the general partner or managing member without cause or (2) substantive participating rights, which provide the limited partners or members with the ability to effectively participate in significant decisions that would be expected to be made in the ordinary course of the limited partnership’s or limited liability company’s business and thereby preclude the general partner or managing member from exercising unilateral control over the partnership or company. If these criteria are not met and the Company is the general partner or the managing member, as applicable, the consolidation of the partnership or limited liability company is required.

Investments in Equity Securities

Investments in Equity Securities:

The Company, through its Operating Partnership, holds investments in equity securities in certain publicly-traded companies. The Company does not acquire investments for trading purposes and, as a result, all of the Company’s investments in publicly-traded companies are considered “available-for-sale” and are recorded at fair value. Changes in the fair value of investments classified as available-for-sale are recorded in other comprehensive income. The fair value of the Company’s equity securities in publicly-traded companies is determined based upon the closing trading price of the equity security as of the balance sheet date. The cost of investments sold is determined by the specific identification method, with net realized gains and losses included in other income. For all investments in equity securities, if a decline in the fair value of an investment below its carrying value is determined to be other-than-temporary, such investment is written down to its estimated fair value with a non-cash charge to earnings. The factors that the Company considers in making these assessments include, but are not limited to, severity and duration of the unrealized loss, market prices, market conditions, the occurrence of ongoing financial difficulties, available financing, new product initiatives and new collaborative agreements.

Share-Based Payments

Share-Based Payments:

All share-based payments to employees are recognized in earnings based on their fair value on the date of grant. Through June 30, 2012, the Company has awarded only restricted stock awards under its incentive award plan, which are based on shares of the Company’s common stock. The fair value of equity awards that include only service or performance vesting conditions is determined based on the closing market price of the underlying common stock on the date of grant. The fair value of equity awards that include one or more market vesting conditions is determined based on the use of a widely accepted valuation model. The fair value of equity grants is amortized to general and administrative expense ratably over the requisite service period for awards that include only service vesting conditions and utilizing a graded vesting method (an accelerated vesting method in which the majority of compensation expense is recognized in earlier periods) for awards that include one or more market vesting conditions, adjusted for anticipated forfeitures.

Purchase Accounting

Purchase Accounting:

The Company, with the assistance of independent valuation specialists, allocates the purchase price of acquired properties to tangible and identified intangible assets and liabilities based on their respective fair values. The allocation to tangible assets (building and land) is based upon the Company’s determination of the value of the property as if it were vacant using discounted cash flow models similar to those used by independent appraisers. Factors considered include an estimate of carrying costs during the expected lease-up periods taking into account current market conditions and costs to execute similar leases. The fair value of land is derived from comparable sales of land within the same submarket and/or region. The fair value of buildings and improvements, tenant improvements, site improvements and leasing costs are based upon current market replacement costs and other relevant market rate information. Additionally, the purchase price of the applicable property is allocated to the above or below market value of in place leases, the value of in place leases and above or below market value of debt assumed.

The value allocable to the above or below market component of the acquired in place leases is determined based upon the present value (using a discount rate which reflects the risks associated with the acquired leases) of the difference between: (1) the contractual amounts to be paid pursuant to the lease over its remaining term, and (2) our estimate of the amounts that would be paid using fair market rates over the remaining term of the lease. The amounts allocated to above market leases are included in lease intangible assets, net in our accompanying condensed consolidated balance sheets and amortized to rental income over the remaining non-cancelable lease term of the acquired leases with each property. The amounts allocated to below market lease values are included in lease intangible liabilities, net in the Company’s accompanying condensed consolidated balance sheets and amortized to rental income over the remaining non-cancelable lease term plus any below market renewal options of the acquired leases with each property.

The value allocable to above or below market debt is determined based upon the present value of the difference between the cash flow stream of the assumed mortgage and the cash flow stream of a market rate mortgage. The amounts allocated to above or below market debt are included in mortgage payables, net on the accompanying consolidated balance sheets and are amortized to interest expense over the remaining term of the assumed mortgage.

Tenant Receivables

Tenant receivables:

Tenant receivables and deferred rent are carried net of the allowances for uncollectible current tenant receivables and deferred rent. An allowance is maintained for estimated losses resulting from the inability of certain tenants to meet the contractual obligations under their lease agreements. The Company maintains an allowance for deferred rent receivable arising from the straight-lining of rents. Such allowance are charged to bad debt expense which is included in other operating expenses on the accompanying condensed consolidated statement of operations. The Company’s determination of the adequacy of these allowances is based primarily upon evaluations of historical loss experience, the tenant’s financial condition, security deposits, letters of credit, lease guarantees, current economic conditions and other relevant factors. At June 30, 2012 and December 31, 2011, the Company had $635,000 and $631,000, respectively, in allowances for uncollectible accounts as determined to be necessary to reduce receivables to the estimate of the amount recoverable. During the three months ended June 30, 2012 and 2011, $148,000 and $127,000, respectively, of receivables were charged to bad debt expense. During the six months ended June 30, 2012 and 2011, $395,000 and $331,000, respectively, of receivables were charged to bad debt expense.

Non-controlling Interests

Non-controlling Interests

At June 30, 2012 and December 31, 2011, non-controlling interest represented the portion of equity that the Company did not own in those entities it consolidates, including OP units not held by the Company. In conjunction with the Company’s formation transactions, interests in four properties were contributed in exchange for 641,062 OP units. In addition, 764,343 OP units were issued in March 2011 in connection with the acquisition of the Edwards Theatres property (see Note 3).

During the six months ended June 30, 2012, a total of 299,927 OP units related to the Edwards Theatres acquisition were tendered to the Company for redemption, resulting in the issuance of 193,510 shares of common stock and cash payments totaling $1.9 million. The OP units were redeemed for common stock on a one-to-one basis, with additional common stock and cash consideration provided as a result of the accompanying additional redemption obligation that guaranteed consideration equal to $14.00 per OP unit on the date of redemption (see Note 3). At June 30, 2012, 464,416 OP units related to the Edwards Theatres acquisition remained outstanding.

OP units not held by the Company are reflected as non-controlling interests in the Company’s consolidated financial statements. The OP units not held by the Company may be redeemed by the holder for cash. The Company, at its option, may satisfy the redemption obligation with common stock on a one-for-one basis.

Concentration of Risk

Concentration of Risk

The Company maintains its cash accounts in a number of commercial banks. Accounts at these banks are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At various times during the periods, the Company had deposits in excess of the FDIC insurance limit.

In the three and six months ended June 30, 2012 and 2011, no tenant accounted for more than 10% of revenues.

Management Estimates

Management Estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value of Financial Instruments

Fair Value of Financial Instruments:

The Company measures financial instruments and other items at fair-value where required under GAAP, but has elected not to measure any additional financial instruments and other items at fair-value as permitted under fair-value option accounting guidance.

Fair-value measurement is determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair-value measurements, there is a fair-value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the assets or liabilities, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

The Company has used interest rate swaps to manage its interest rate risk (see Note 11). The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair-values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair-value measurements. In adjusting the fair-value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees.

Although the Company has determined that the majority of the inputs used to value its derivatives classified as cash flow hedges fall within Level 2 of the fair-value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2012, the Company has determined that the impact of the credit valuation adjustments on the overall valuation of its derivative positions is not significant. As a result, the Company has determined that its valuations related to derivatives classified as cash flow hedges in their entirety are classified in Level 2 of the fair-value hierarchy (see Note 16).

Changes in the fair value of financial instruments (other than derivative instruments for which an effective hedging relationship exists) are recorded as a charge against earnings in the condensed consolidated statements of operations in the period in which they occur. The Company estimates the fair value of financial instruments at least quarterly based on current facts and circumstances, projected cash flows, quoted market prices, and other criteria. The Company may also utilize the services of independent third-party valuation experts to estimate the fair value of financial instruments, as necessary.

The Company’s investments in equity securities fall within Level 1 of the fair value hierarchy as the Company utilizes observable market-based inputs, based on the closing trading price of securities as of the balance sheet date, to determine the fair value of the investments.

Derivative Instruments

Derivative Instruments:

The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, from time to time the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings.

In addition, from time to time the Company may execute agreements in connection with business combinations that include embedded derivative instruments as part of the consideration provided to the sellers of the properties. Although these embedded derivative instruments are not intended as hedges of risks faced by the Company, they can provide additional consideration to the Company’s selling counterparties and may be a key component of negotiations.

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The Company records all derivative instruments on the consolidated balance sheets at their fair value. In determining the fair value of derivative instruments, the Company also considers the credit risk of its counterparties, which typically constitute larger financial institutions engaged in providing a wide variety of financial services. These financial institutions generally face similar risks regarding changes in market and economic conditions, including, but not limited to, changes in interest rates, exchange rates, equity and commodity pricing and credit spreads.

Accounting for changes in the fair value of derivative instruments depends on the intended use of the derivative, whether it has been designated as a hedging instrument and whether the hedging relationship has continued to satisfy the criteria to apply hedge accounting. For derivative instruments qualifying as cash flow hedges, the effective portion of changes in the fair value is initially recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company assesses the effectiveness of each hedging relationship by comparing the changes in the cash flows of the derivative hedging instrument with the changes in the cash flows of the hedged item or transaction.

The Company formally documents the hedging relationship for all derivative instruments, has accounted for its interest rate swap agreements as cash flow hedges and does not utilize derivative instruments for trading or speculative purposes.

Recent Accounting Pronouncements

Recent Accounting Pronouncements:

In May 2011, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2011-04, Amendment to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (“ASU 2011-04”), which amended Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement. The objective of this guidance is to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and International Financial Reporting Standards. The guidance further explains how to measure fair value, but does not require additional fair value measurements. ASU 2011-04 is to be applied prospectively for fiscal years and interim periods within those years beginning after December 15, 2011. The Company’s adoption of this guidance effective January 1, 2012 resulted in additional disclosures in the notes to the Company’s consolidated financial statements, but did not have a material quantitative effect.

XML

Variable Interest Entities (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012 sqft	Dec. 31, 2011	Dec. 09, 2010
Variable Interest Entities (Textual) [Abstract]
Joint venture ownership percentage	50.00%
Total carrying amount of assets	$ 16.2	$ 16.5
Real estate assets in variable interest entity carrying amount assets	13.7	14.0
Total carrying amount of liabilities	14.5	14.6
Loan to unaffiliated borrower			$ 2.0
Gross leasable area	171,670

XML

Acquisitions (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Pro forma information
Revenues	$ 21,432	$ 16,346	$ 42,747	$ 32,629
Net income	$ 112	$ 1,818	$ 599	$ 1,507

XML

Segment Disclosure (Details Textual)	6 Months Ended
	Jun. 30, 2012 Segment
Segment disclosure (Textual) [Abstract]
Number of real estate property held by segment	2

XML

Summary of Significant Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2012
Schedule of Estimated Lives of Assets
Tenant improvements	Shorter of the useful lives or the terms of  the related leases
Maximum [Member]
Schedule of Estimated Lives of Assets
Building and improvements	40 years
Minimum [Member]
Schedule of Estimated Lives of Assets
Building and improvements	15 years

XML

Mortgages Payable, Net (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Schedule of Mortgages payable
Carrying Amount of Mortgage Notes	$ 271,753	$ 245,652
Less: premium (discount)	732	(691)
Mortgage notes payable, net	272,485	244,961
Five Forks Place [Member]
Schedule of Mortgages payable
Carrying Amount of Mortgage Notes	4,975	5,067
Contractual Interest Rate	5.50%
Effective Interest Rate	5.50%
Monthly Payment	39
Maturity Date	2013
Grant Creek Town Center [Member]
Schedule of Mortgages payable
Carrying Amount of Mortgage Notes	15,520	15,694
Contractual Interest Rate	5.75%
Effective Interest Rate	5.75%
Monthly Payment	105
Maturity Date	2013
Park West Place [Member]
Schedule of Mortgages payable
Carrying Amount of Mortgage Notes	55,800	55,800
Contractual Interest Rate	2.75%
Effective Interest Rate	3.91%
Monthly Payment	182
Maturity Date	2013
Excel Centre [Member]
Schedule of Mortgages payable
Carrying Amount of Mortgage Notes	12,408	12,532
Contractual Interest Rate	6.08%
Effective Interest Rate	6.08%
Monthly Payment	85
Maturity Date	2014
Merchant Central [Member]
Schedule of Mortgages payable
Carrying Amount of Mortgage Notes	4,514	4,560
Contractual Interest Rate	5.94%
Effective Interest Rate	6.75%
Monthly Payment	30
Maturity Date	2014
Edwards Theatres [Member]
Schedule of Mortgages payable
Carrying Amount of Mortgage Notes	12,017	12,174
Contractual Interest Rate	6.74%
Effective Interest Rate	5.50%
Monthly Payment	95
Maturity Date	2014
Gilroy Crossing [Member]
Schedule of Mortgages payable
Carrying Amount of Mortgage Notes	47,026	47,409
Contractual Interest Rate	5.01%
Effective Interest Rate	5.01%
Monthly Payment	263
Maturity Date	2014
The Promenade [Member]
Schedule of Mortgages payable
Carrying Amount of Mortgage Notes	50,534	51,359
Contractual Interest Rate	4.80%
Effective Interest Rate	4.80%
Monthly Payment	344
Maturity Date	2015
5000 South Hulen [Member]
Schedule of Mortgages payable
Carrying Amount of Mortgage Notes	13,767	13,876
Contractual Interest Rate	5.60%
Effective Interest Rate	6.90%
Monthly Payment	83
Maturity Date	2017
Lake Pleasant Pavilion [Member]
Schedule of Mortgages payable
Carrying Amount of Mortgage Notes	28,250
Contractual Interest Rate	6.09%
Effective Interest Rate	5.00%
Monthly Payment	143
Maturity Date	2017
Rite Aid - Vestavia Hills [Member]
Schedule of Mortgages payable
Carrying Amount of Mortgage Notes	1,264	1,341
Contractual Interest Rate	7.25%
Effective Interest Rate	7.25%
Monthly Payment	21
Maturity Date	2018
Lowe's, Shippensburg [Member]
Schedule of Mortgages payable
Carrying Amount of Mortgage Notes	13,678	13,840
Contractual Interest Rate	7.20%
Effective Interest Rate	7.20%
Monthly Payment	110
Maturity Date	2031
Northside Mall [Member]
Schedule of Mortgages payable
Carrying Amount of Mortgage Notes	12,000	12,000
Contractual Interest Rate	0.19%
Effective Interest Rate	1.19%
Monthly Payment	$ 2
Maturity Date	2035

XML

Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012 Property
Commitments and Contingencies (Textual) [Abstract]
Expected construction costs	$ 9.2
Number of non-operating properties	2

XML

Equity (Details)	Jun. 30, 2012	Dec. 31, 2011
Vested ownership interests in operating partnership
OP Units	33,919,286	30,676,998
Percentage of Total	100.00%	100.00%
Excel Trust, Inc. [Member]
Vested ownership interests in operating partnership
OP Units	32,813,808	29,271,593
Percentage of Total	96.70%	95.40%
Non-Controlling Interests [Member]
Vested ownership interests in operating partnership
OP Units	1,105,478	1,405,405
Percentage of Total	3.30%	4.60%

XML

Lease Intangible Liabilities, Net (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Schedule of Lease Intangible Liabilities
Below market leases, net of accumulated amortization of $3.7 million and $2.5 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 95 and 106 months as of June 30, 2012 and December 31, 2011, respectively)	$ 16,444	$ 13,843

XML

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation:

The accompanying condensed consolidated financial statements of the Company include all the accounts of the Company, the Operating Partnership and the subsidiaries of the Operating Partnership. The financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all the information and footnotes required by GAAP for complete financial statements and have not been audited by independent registered public accountants.

The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements for the interim periods have been made. Operating results for the six months ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. All significant intercompany balances and transactions have been eliminated in consolidation.

Cash and Cash Equivalents:

The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents, for which cost approximates fair value, due to their short term maturities.

Restricted Cash:

Restricted cash is comprised of impound reserve accounts for property taxes, insurance, capital improvements and tenant improvements.

Accounts Payable and Other Liabilities:

Included in accounts payable and other liabilities are deferred rents in the amount of $2.5 million and $3.0 million at June 30, 2012 and December 31, 2011, respectively.

Revenue Recognition:

The Company commences revenue recognition on its leases based on a number of factors. In most cases, revenue recognition under a lease begins when the lessee takes possession of or controls the physical use of the leased asset. Generally, this occurs on the lease commencement date. In determining what constitutes the leased asset, the Company evaluates whether the Company or the lessee is the owner, for accounting purposes, of the tenant improvements. If the Company is the owner, for accounting purposes, of the tenant improvements, then the leased asset is the finished space and revenue recognition begins when the lessee takes possession of the finished space, typically when the improvements are substantially complete. If the Company concludes that it is not the owner, for accounting purposes, of the tenant improvements (the lessee is the owner), then the leased asset is the unimproved space and any tenant improvement allowances funded under the lease are treated as lease incentives, which reduce revenue recognized on a straight-line basis over the remaining non-cancelable term of the respective lease. In these circumstances, the Company begins revenue recognition when the lessee takes possession of the unimproved space for the lessee to construct improvements. The determination of who is the owner, for accounting purposes, of the tenant improvements is highly subjective and determines the nature of the leased asset and when revenue recognition under a lease begins. The Company considers a number of different factors to evaluate whether it or the lessee is the owner of the tenant improvements for accounting purposes. These factors include:

• whether the lease stipulates how and on what a tenant improvement allowance may be spent;

• whether the tenant or landlord retains legal title to the improvements;

• the uniqueness of the improvements;

• the expected economic life of the tenant improvements relative to the length of the lease;

• the responsible party for construction cost overruns; and

• who constructs or directs the construction of the improvements.

Minimum rental revenues are recognized on a straight-line basis over the terms of the related lease. The difference between the amount of cash rent due in a year and the amount recorded as rental income is referred to as the “straight-line rent adjustment.” Rental income (net of write-offs for uncollectible amounts) was increased by $589,000 and $427,000 in the three months ended June 30, 2012 and 2011, respectively, and $1.3 million and $798,000, respectively, in the six months ended June 30, 2012 and 2011 due to the straight-line rent adjustment.

Estimated recoveries from certain tenants for their pro rata share of real estate taxes, insurance and other operating expenses are recognized as revenues in the period the applicable expenses are incurred or as specified in the leases. Other tenants pay a fixed rate and these tenant recoveries are recognized as revenue on a straight-line basis over the term of the related leases.

Property:

Costs incurred in connection with the development or construction of properties and improvements are capitalized. Capitalized costs include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes and related costs and other direct costs incurred during the period of development. The Company capitalizes costs on land and buildings under development until construction is substantially complete and the property is held available for occupancy. The determination of when a development project is substantially complete and when capitalization must cease involves a degree of judgment. The Company considers a construction project as substantially complete and held available for occupancy upon the completion of landlord-owned tenant improvements or when the lessee takes possession of the unimproved space for construction of its own improvements, but no later than one year from cessation of major construction activity. The Company ceases capitalization on the portion substantially completed and occupied or held available for occupancy, and capitalizes only those costs associated with any remaining portion under construction. In March 2012, the Company reclassified the majority of construction in progress costs relating to two non-operating properties into the corresponding buildings, site improvements and tenant improvements financial statement line items upon substantial completion of development activities.

Maintenance and repairs expenses are charged to operations as incurred. Costs for major replacements and betterments, which include HVAC equipment, roofs, parking lots, etc., are capitalized and depreciated over their estimated useful lives. Gains and losses are recognized upon disposal or retirement of the related assets and are reflected in earnings.

Property is recorded at cost and is depreciated using the straight-line method over the estimated lives of the assets as follows:

Building and improvements	15 to 40 years
Tenant improvements	Shorter of the useful lives or the terms of the related leases

Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed:

The Company reviews long-lived assets and certain identifiable intangible assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. This assessment considers expected future operating income, trends and prospects, as well as the effects of demand, competition and other economic factors. Such factors include the tenants’ ability to perform their duties and pay rent under the terms of the leases. The determination of recoverability is made based upon the estimated undiscounted future net cash flows, excluding interest expense, expected to result from the long-lived asset’s use and eventual disposition. The Company’s evaluation as to whether impairment may exist, including estimates of future anticipated cash flows, are highly subjective and could differ materially from actual results in future periods. The amount of impairment loss, if any, is determined by comparing the fair value, as determined by a discounted cash flows analysis, with the carrying value of the related assets. Although the Company’s strategy is to hold its properties over a long-term period, if the strategy changes or market conditions dictate that the sale of properties at an earlier date would be preferable, an impairment loss may be recognized to reduce the property to the lower of the carrying amount or fair value less cost to sell.

Investments in Partnerships and Limited Liability Companies:

The Company evaluates its investments in limited liability companies and partnerships to determine whether such entities may be a variable interest entity (“VIE”) and, if a VIE, whether the Company is the primary beneficiary. Generally, an entity is determined to be a VIE when either (1) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support provided by any parties or (2) as a group, the holders of the equity investment lack one or more of the essential characteristics of a controlling financial interest. The primary beneficiary is the entity that has both (1) the power to direct matters that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct financing, leasing, construction and other operating decisions and activities. In addition, the Company considers the form of ownership interest, voting interest, the size of the investment (including loans) and the rights of other investors to participate in policy making decisions, to replace or remove the manager and to liquidate or sell the entity. The obligation to absorb losses and the right to receive benefits when a reporting entity is affiliated with a VIE must be based on ownership, contractual, and/or other pecuniary interests in that VIE.

If the foregoing conditions do not apply, the Company considers whether a general partner or managing member controls a limited partnership or limited liability company. The general partner in a limited partnership or managing member in a limited liability company is presumed to control that limited partnership or limited liability company. The presumption may be overcome if the limited partners or members have either (1) the substantive ability to dissolve the limited partnership or limited liability company or otherwise remove the general partner or managing member without cause or (2) substantive participating rights, which provide the limited partners or members with the ability to effectively participate in significant decisions that would be expected to be made in the ordinary course of the limited partnership’s or limited liability company’s business and thereby preclude the general partner or managing member from exercising unilateral control over the partnership or company. If these criteria are not met and the Company is the general partner or the managing member, as applicable, the consolidation of the partnership or limited liability company is required.

Investments in Equity Securities:

The Company, through its Operating Partnership, holds investments in equity securities in certain publicly-traded companies. The Company does not acquire investments for trading purposes and, as a result, all of the Company’s investments in publicly-traded companies are considered “available-for-sale” and are recorded at fair value. Changes in the fair value of investments classified as available-for-sale are recorded in other comprehensive income. The fair value of the Company’s equity securities in publicly-traded companies is determined based upon the closing trading price of the equity security as of the balance sheet date. The cost of investments sold is determined by the specific identification method, with net realized gains and losses included in other income. For all investments in equity securities, if a decline in the fair value of an investment below its carrying value is determined to be other-than-temporary, such investment is written down to its estimated fair value with a non-cash charge to earnings. The factors that the Company considers in making these assessments include, but are not limited to, severity and duration of the unrealized loss, market prices, market conditions, the occurrence of ongoing financial difficulties, available financing, new product initiatives and new collaborative agreements.

Investments in equity securities, which are included in other assets on the accompanying condensed consolidated balance sheets, consisted of the following:

	June 30, 2012		December 31, 2011
Equity securities, initial cost basis	$	6,266	$	9,072
Gross unrealized gains		195		138
Gross unrealized losses		—		(46	)
Equity securities, fair value (1)	$	6,461	$	9,164

⁽¹⁾ Determination of fair value is classified as Level 1 in the fair value hierarchy based on the use of quoted prices in active markets (see section entitled “Fair Value of Financial Instruments” that follows herein).

The fair value of some of the Company’s investments in equity securities were less than the initial cost basis at December 31, 2011 due to a decrease in their respective stock prices since the initial purchase. However, the fair value of the investments had fully recovered at June 30, 2012 and the Company continues to have the ability and intent to retain the investments for a period of time sufficient to allow for an anticipated recovery in market value. The Company will continue to periodically evaluate whether an other-than-temporary impairment exists for any investment when the fair value is less than the initial cost basis.

During the six months ended June 30, 2012, the Company sold 118,222 shares of preferred stock (including 67,823 shares of preferred stock redeemed by the issuing company) based on a specific identification of the shares sold, resulting in net proceeds of approximately $2.9 million and the recognition of a gain on sale of approximately $0 and $11,000 during the three and six months ended June 30, 2012, respectively, which are included in other income in the accompanying condensed consolidated statements of operations.

Share-Based Payments:

All share-based payments to employees are recognized in earnings based on their fair value on the date of grant. Through June 30, 2012, the Company has awarded only restricted stock awards under its incentive award plan, which are based on shares of the Company’s common stock. The fair value of equity awards that include only service or performance vesting conditions is determined based on the closing market price of the underlying common stock on the date of grant. The fair value of equity awards that include one or more market vesting conditions is determined based on the use of a widely accepted valuation model. The fair value of equity grants is amortized to general and administrative expense ratably over the requisite service period for awards that include only service vesting conditions and utilizing a graded vesting method (an accelerated vesting method in which the majority of compensation expense is recognized in earlier periods) for awards that include one or more market vesting conditions, adjusted for anticipated forfeitures.

Purchase Accounting:

The Company, with the assistance of independent valuation specialists, allocates the purchase price of acquired properties to tangible and identified intangible assets and liabilities based on their respective fair values. The allocation to tangible assets (building and land) is based upon the Company’s determination of the value of the property as if it were vacant using discounted cash flow models similar to those used by independent appraisers. Factors considered include an estimate of carrying costs during the expected lease-up periods taking into account current market conditions and costs to execute similar leases. The fair value of land is derived from comparable sales of land within the same submarket and/or region. The fair value of buildings and improvements, tenant improvements, site improvements and leasing costs are based upon current market replacement costs and other relevant market rate information. Additionally, the purchase price of the applicable property is allocated to the above or below market value of in place leases, the value of in place leases and above or below market value of debt assumed.

The value allocable to the above or below market component of the acquired in place leases is determined based upon the present value (using a discount rate which reflects the risks associated with the acquired leases) of the difference between: (1) the contractual amounts to be paid pursuant to the lease over its remaining term, and (2) our estimate of the amounts that would be paid using fair market rates over the remaining term of the lease. The amounts allocated to above market leases are included in lease intangible assets, net in our accompanying condensed consolidated balance sheets and amortized to rental income over the remaining non-cancelable lease term of the acquired leases with each property. The amounts allocated to below market lease values are included in lease intangible liabilities, net in the Company’s accompanying condensed consolidated balance sheets and amortized to rental income over the remaining non-cancelable lease term plus any below market renewal options of the acquired leases with each property.

The value allocable to above or below market debt is determined based upon the present value of the difference between the cash flow stream of the assumed mortgage and the cash flow stream of a market rate mortgage. The amounts allocated to above or below market debt are included in mortgage payables, net on the accompanying consolidated balance sheets and are amortized to interest expense over the remaining term of the assumed mortgage.

Tenant receivables:

Tenant receivables and deferred rent are carried net of the allowances for uncollectible current tenant receivables and deferred rent. An allowance is maintained for estimated losses resulting from the inability of certain tenants to meet the contractual obligations under their lease agreements. The Company maintains an allowance for deferred rent receivable arising from the straight-lining of rents. Such allowance are charged to bad debt expense which is included in other operating expenses on the accompanying condensed consolidated statement of operations. The Company’s determination of the adequacy of these allowances is based primarily upon evaluations of historical loss experience, the tenant’s financial condition, security deposits, letters of credit, lease guarantees, current economic conditions and other relevant factors. At June 30, 2012 and December 31, 2011, the Company had $635,000 and $631,000, respectively, in allowances for uncollectible accounts as determined to be necessary to reduce receivables to the estimate of the amount recoverable. During the three months ended June 30, 2012 and 2011, $148,000 and $127,000, respectively, of receivables were charged to bad debt expense. During the six months ended June 30, 2012 and 2011, $395,000 and $331,000, respectively, of receivables were charged to bad debt expense.

Non-controlling Interests

At June 30, 2012 and December 31, 2011, non-controlling interest represented the portion of equity that the Company did not own in those entities it consolidates, including OP units not held by the Company. In conjunction with the Company’s formation transactions, interests in four properties were contributed in exchange for 641,062 OP units. In addition, 764,343 OP units were issued in March 2011 in connection with the acquisition of the Edwards Theatres property (see Note 3).

During the six months ended June 30, 2012, a total of 299,927 OP units related to the Edwards Theatres acquisition were tendered to the Company for redemption, resulting in the issuance of 193,510 shares of common stock and cash payments totaling $1.9 million. The OP units were redeemed for common stock on a one-to-one basis, with additional common stock and cash consideration provided as a result of the accompanying additional redemption obligation that guaranteed consideration equal to $14.00 per OP unit on the date of redemption (see Note 3). At June 30, 2012, 464,416 OP units related to the Edwards Theatres acquisition remained outstanding.

OP units not held by the Company are reflected as non-controlling interests in the Company’s consolidated financial statements. The OP units not held by the Company may be redeemed by the holder for cash. The Company, at its option, may satisfy the redemption obligation with common stock on a one-for-one basis.

Concentration of Risk

The Company maintains its cash accounts in a number of commercial banks. Accounts at these banks are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At various times during the periods, the Company had deposits in excess of the FDIC insurance limit.

In the three and six months ended June 30, 2012 and 2011, no tenant accounted for more than 10% of revenues.

Management Estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value of Financial Instruments:

The Company measures financial instruments and other items at fair-value where required under GAAP, but has elected not to measure any additional financial instruments and other items at fair-value as permitted under fair-value option accounting guidance.

Fair-value measurement is determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair-value measurements, there is a fair-value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the assets or liabilities, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

The Company has used interest rate swaps to manage its interest rate risk (see Note 11). The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair-values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair-value measurements. In adjusting the fair-value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees.

Although the Company has determined that the majority of the inputs used to value its derivatives classified as cash flow hedges fall within Level 2 of the fair-value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2012, the Company has determined that the impact of the credit valuation adjustments on the overall valuation of its derivative positions is not significant. As a result, the Company has determined that its valuations related to derivatives classified as cash flow hedges in their entirety are classified in Level 2 of the fair-value hierarchy (see Note 16).

Changes in the fair value of financial instruments (other than derivative instruments for which an effective hedging relationship exists) are recorded as a charge against earnings in the condensed consolidated statements of operations in the period in which they occur. The Company estimates the fair value of financial instruments at least quarterly based on current facts and circumstances, projected cash flows, quoted market prices, and other criteria. The Company may also utilize the services of independent third-party valuation experts to estimate the fair value of financial instruments, as necessary.

The Company’s investments in equity securities fall within Level 1 of the fair value hierarchy as the Company utilizes observable market-based inputs, based on the closing trading price of securities as of the balance sheet date, to determine the fair value of the investments.

Derivative Instruments:

The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, from time to time the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings.

In addition, from time to time the Company may execute agreements in connection with business combinations that include embedded derivative instruments as part of the consideration provided to the sellers of the properties. Although these embedded derivative instruments are not intended as hedges of risks faced by the Company, they can provide additional consideration to the Company’s selling counterparties and may be a key component of negotiations.

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The Company records all derivative instruments on the consolidated balance sheets at their fair value. In determining the fair value of derivative instruments, the Company also considers the credit risk of its counterparties, which typically constitute larger financial institutions engaged in providing a wide variety of financial services. These financial institutions generally face similar risks regarding changes in market and economic conditions, including, but not limited to, changes in interest rates, exchange rates, equity and commodity pricing and credit spreads.

Accounting for changes in the fair value of derivative instruments depends on the intended use of the derivative, whether it has been designated as a hedging instrument and whether the hedging relationship has continued to satisfy the criteria to apply hedge accounting. For derivative instruments qualifying as cash flow hedges, the effective portion of changes in the fair value is initially recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company assesses the effectiveness of each hedging relationship by comparing the changes in the cash flows of the derivative hedging instrument with the changes in the cash flows of the hedged item or transaction.

The Company formally documents the hedging relationship for all derivative instruments, has accounted for its interest rate swap agreements as cash flow hedges and does not utilize derivative instruments for trading or speculative purposes.

Recent Accounting Pronouncements:

In May 2011, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2011-04, Amendment to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (“ASU 2011-04”), which amended Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurement. The objective of this guidance is to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and International Financial Reporting Standards. The guidance further explains how to measure fair value, but does not require additional fair value measurements. ASU 2011-04 is to be applied prospectively for fiscal years and interim periods within those years beginning after December 15, 2011. The Company’s adoption of this guidance effective January 1, 2012 resulted in additional disclosures in the notes to the Company’s consolidated financial statements, but did not have a material quantitative effect.

XML

Equity (Details 1) (USD $)	6 Months Ended	3 Months Ended
	Jun. 30, 2012	Mar. 31, 2012 Employees [Member]	Jun. 30, 2012 Board of Directors [Member]
Restricted common stock activity
Price at Grant Date	$ 12.11	$ 12.42	$ 11.99
Number	18,356	5,000	13,356
vesting period (yrs.)	4 years	4 years	1 year

XML

Acquisitions (Details Textual) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Business Acquisition [Line Items]
Purchase Price	$ 142,153,000	$ 96,955,000	$ 142,153,000	$ 96,955,000
Assets received in connection with property acquisitions			772,000	3,595,000
Acquisitions (Textual) [Abstract]
Revenues	3,100,000	2,400,000	4,700,000	4,900,000
Net (loss)/income	87,000	53,000	260,000	184,000
Nonrecurring Acquisition Cost	293,000		293,000
Series B Preferred Stock [Member]
Business Acquisition [Line Items]
Series B preferred stock quarterly dividend				1,900,000
Promenade Corporate Center [Member]
Business Acquisition [Line Items]
Purchase Price	52,253,000		52,253,000
Cash Paid to Purchase Promenade Corporate Centre	13,900,000		13,900,000
Issuance of Common Stock for Acquisition Shares			3,230,769
Fair Value of the Common Stock related to acquisition	39,100,000		39,100,000
Closing price of shares on date of acquisition	$ 12.11		$ 12.11
Assets received in connection with property acquisitions			772,000
Edwards Theatres [Member]
Business Acquisition [Line Items]
Purchase Price		26,150,000		26,150,000
Issuance of Common Stock for Acquisition Shares				764,343
Per unit fair value of OP Units issued		$ 11.82		$ 11.82
Minimum value of per share at the date of redemption		$ 14.00		$ 14.00
Estimated fair value of redemption provision		4,200,000		4,200,000
Rite Aid [Member]
Business Acquisition [Line Items]
Purchase Price		2,371,000		2,371,000
Gain recognized on acquisition				$ 937,000

XML

Lease Intangible Liabilities, Net (Tables)

6 Months Ended

Jun. 30, 2012

Lease Intangible Liabilities, Net [Abstract]

Schedule of Lease Intangible Liabilities

	June 30, 2012		December 31, 2011
	(in thousands)
Below market leases, net of accumulated amortization of $3.7 million and $2.5 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 95 and 106 months as of June 30, 2012 and December 31, 2011, respectively)	$	16,444	$	13,843

Schedule of Estimated Amortization of Lease Intangible Liabilities

Year Ending December 31,	Amount
2012 (remaining six months)	$	1,552
2013		2,780
2014		2,546
2015		2,001
2016		1,600
Thereafter		5,965
Total	$	16,444

XML

Lease Intangible Assets, Net (Tables)

6 Months Ended

Jun. 30, 2012

Lease Intangible Assets, Net [Abstract]

Schedule of Lease Intangible Assets

	June 30, 2012		December 31, 2011
	(in thousands)
In-place leases, net of accumulated amortization of $16.3 million and $11.8 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 75 and 83 months as of June 30, 2012 and December 31, 2011, respectively)	$	45,401	$	44,356
Above market leases, net of accumulated amortization of $3.6 million and $2.6 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 69 and 75 months as of June 30, 2012 and December 31, 2011, respectively)		13,571		11,056
Leasing commissions, net of accumulated amortization of $3.9 million and $2.8 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 103 and 113 months as of June 30, 2012 and December 31, 2011, respectively)		13,694		13,144
	$	72,666	$	68,556

Schedule of Estimated Amortization of Lease Intangible Assets

Year Ending December 31,	Amount
2012 (remaining six months)	$	9,144
2013		15,373
2014		12,267
2015		8,325
2016		5,510
Thereafter		22,047
Total	$	72,666

XML

Earnings Per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Basic earnings per share:
Income (loss) from continuing operations	$ 357	$ (2,458)	$ 790	$ (3,034)
Preferred stock dividends	(2,744)	(875)	(4,865)	(1,478)
Allocation to participating securities	(149)	(157)	(299)	(305)
Loss from continuing operations attributable to non-controlling interests	(11)	(277)	(16)	(252)
Loss from continuing operations attributable to the common stockholders	(2,525)	(3,213)	(4,358)	(4,565)
Net (loss) income attributable to the common stockholders	(2,376)	1,061	(4,059)	429
Net (loss) income applicable to the common stockholders	$ (2,525)	$ 904	$ (4,358)	$ 124
Weighted-average common shares outstanding:
Weighted-average common shares outstanding - basic and diluted	32,785	15,856	32,273	15,686
Basic and diluted earnings per share:
Loss from continuing operations per share attributable to the common stockholders	$ (0.08)	$ (0.20)	$ (0.14)	$ (0.29)
Income from discontinued operations per share attributable to the common stockholders		$ 0.26		$ 0.30
Net loss per share attributable to the common stockholders	$ (0.08)	$ 0.06	$ (0.14)	$ 0.01

XML

Lease Intangible Assets, Net (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Schedule of Lease Intangible Assets
Lease intangibles, net	$ 72,666	$ 68,556
In-place leases, net of accumulated amortization of $16.3 million and $11.8 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 75 and 83 months as of June 30, 2012 and December 31, 2011, respectively) [Member]
Schedule of Lease Intangible Assets
Lease intangibles, net	45,401	44,356
Above market leases, net of accumulated amortization of $3.6 million and $2.6 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 69 and 75 months as of June 30, 2012 and December 31, 2011, respectively) [Member]
Schedule of Lease Intangible Assets
Lease intangibles, net	13,571	11,056
Leasing commissions, net of accumulated amortization of $3.9 million and $2.8 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 103 and 113 months as of June 30, 2012 and December 31, 2011, respectively) [Member]
Schedule of Lease Intangible Assets
Lease intangibles, net	$ 13,694	$ 13,144

XML

Mortgages Payable, Net (Tables)

6 Months Ended

Jun. 30, 2012

Mortgages Payable, Net [Abstract]

Schedule of Mortgages Payable

	Carrying Amount of Mortgage Notes					Contractual Interest Rate			Effective Interest Rate			Monthly Payment(1)		Maturity Date
Property Pledged as Collateral	June 30, 2012		December 31, 2011
Five Forks Place	$	4,975	$	5,067			5.50	%		5.50	%	$	39		2013
Grant Creek Town Center		15,520		15,694			5.75	%		5.75	%		105		2013
Park West Place (2)		55,800		55,800			2.75	%		3.91	%		182		2013
Excel Centre		12,408		12,532			6.08	%		6.08	%		85		2014
Merchant Central		4,514		4,560			5.94	%		6.75	%		30		2014
Edwards Theatres		12,017		12,174			6.74	%		5.50	%		95		2014
Gilroy Crossing		47,026		47,409			5.01	%		5.01	%		263		2014
The Promenade		50,534		51,359			4.80	%		4.80	%		344		2015
5000 South Hulen		13,767		13,876			5.60	%		6.90	%		83		2017
Lake Pleasant Pavilion		28,250		—			6.09	%		5.00	%		143		2017
Rite Aid — Vestavia Hills		1,264		1,341			7.25	%		7.25	%		21		2018
Lowe’s, Shippensburg		13,678		13,840			7.20	%		7.20	%		110		2031
Northside Mall ( 3 )		12,000		12,000			0.19	%		1.19	%		2		2035
	$	271,753	$	245,652
Less: premium (discount) ( 4 )		732		(691	)
Mortgage notes payable, net	$	272,485	$	244,961

⁽¹⁾ This represents the monthly payment of principal and interest at June 30, 2012.

⁽²⁾ The loan bears interest at a rate of LIBOR plus 2.50% (interest rate of 2.75% at June 30, 2012). In December 2010, the Company entered into interest rate swap contracts, which fix LIBOR at an average of 1.41% for the term of the loan.

^{(3 )} The debt represents redevelopment revenue bonds to be used for the redevelopment of this property, which mature in November 2035. Interest is reset weekly and determined by the bond remarketing agent based on the market value of the bonds (interest rate of 0.19% at June 30, 2012). The interest rate on the bonds is currently priced off of the Securities Industry and Financial Markets Association, or SIFMA, index but could change based on the credit of the bonds. The bonds are secured by a $12.1 million letter of credit issued by the Company from the Company’s unsecured revolving credit facility. An underwriter’s discount related to the original issuance of the bonds with a remaining balance of $112,000 at June 30, 2012 will be amortized as additional interest expense through November 2035.

^{(4 )} Represents (a) the fair value adjustment on assumed debt on acquired properties at the time of acquisition to account for below or above market interest rates and (b) underwriter’s discount for the issuance of redevelopment bonds.

Mortgage Debt Maturities

Year Ending December 31,	Amount
2012 (remaining six months)	$	2,053
2013		80,420
2014		76,834
2015		47,375
2016		1,335
Thereafter		63,736
	$	271,753

XML

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Computations of Basic and Diluted Earnings Per Share

	Three Months Ended						Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Basic earnings per share:
Income (loss) from continuing operations	$	357		$	(2,458	)	$	790		$	(3,034	)
Preferred dividends		(2,744	)		(875	)		(4,865	)		(1,478	)
Allocation to participating securities		(149	)		(157	)		(299	)		(305	)
Loss from continuing operations attributable to non-controlling interests		11			277			16			252
Loss from continuing operations attributable to the common stockholders	$	(2,525	)	$	(3,213	)	$	(4,358	)	$	(4,565	)
Net (loss) income attributable to the common stockholders	$	(2,376	)	$	1,061		$	(4,059	)	$	429
Allocation to participating securities		(149	)		(157	)		(299	)		(305	)
Net (loss) income applicable to the common stockholders	$	(2,525	)	$	904		$	(4,358	)	$	124
Weighted-average common shares outstanding:
Basic and diluted		32,785,490			15,855,786			32,273,468			15,685,606
Basic and diluted earnings per share:
Loss from continuing operations per share attributable to the common stockholders	$	(0.08	)	$	(0.20	)	$	(0.14	)	$	(0.29	)
Income from discontinued operations per share attributable to the common stockholders		—			0.26			—			0.30
Net loss per share attributable to the common stockholders	$	(0.08	)	$	0.06		$	(0.14	)	$	0.01

XML

Organization

6 Months Ended

Jun. 30, 2012

Organization [Abstract]

Organization

1. Organization:

Excel Trust, Inc. was incorporated in the State of Maryland on December 15, 2009. On April 28, 2010, it commenced operations after completing its initial public offering (the “Offering”). Excel Trust, Inc. is a vertically integrated, self-administered, self-managed real estate firm with the principal objective of acquiring, financing, developing, leasing, owning and managing value oriented community and power centers, grocery anchored neighborhood centers and freestanding retail properties. It conducts substantially all of its business through its subsidiary, Excel Trust, L.P., a Delaware limited partnership (the “Operating Partnership” and together with Excel Trust, Inc. referred to as the “Company”). The Company seeks investment opportunities throughout the United States, but focuses on the Northeast, Northwest and Sunbelt regions. The Company generally leases anchor space to national and regional supermarket chains, big-box retailers and select national retailers that frequently offer necessity and value oriented items and generate regular consumer traffic.

The Company is the sole general partner of the Operating Partnership and, as of June 30, 2012, owned a 96.7% interest in the Operating Partnership. The remaining 3.3% interest in the Operating Partnership is held by limited partners. Each partner’s percentage interest in the Operating Partnership is determined based on the number of operating partnership units (“OP units”) owned as compared to total OP units (and potentially issuable OP units, as applicable) outstanding as of each period end and is used as the basis for the allocation of net income or loss to each partner.

XML

Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2012

Derivatives and Hedging Activities [Abstract]

Schedule of Outstanding Interest Rate Swaps and Other Derivative Instruments

	Fair Value(1)				Current Notional Amount		Strike Rate	Expiration Date
Type of Derivative Instrument	June 30, 2012		December 31, 2011
Interest rate swaps (2)	$	857	$	965	$	55,800	1.34% to 1.48%	December 2013
Other derivative instrument (3)		1,345		3,050				March 2013
Total derivative instruments	$	2,202	$	4,015

⁽¹⁾ Fair value of derivative instruments does not include any related accrued interest payable to the counterparty.

⁽²⁾ The interest rate swaps are classified within accounts payable and other liabilities on the accompanying condensed consolidated balance sheets.

⁽³⁾ The Company’s purchase agreement executed in connection with the acquisition of the Edwards Theatres property in March 2011 contained a provision determined to be an embedded derivative instrument. The embedded derivative provides a guaranteed fair value for the OP units provided to the sellers of the property if redeemed for shares of the Company’s common stock or cash, at the Company’s election, prior to March 2013. The fair value of the embedded derivative at each period is calculated through the use of a Monte Carlo valuation model based on the historical volatility and closing price of the Company’s common stock and a risk-free interest rate (see Note 16 for discussion of changes in the fair value of this derivative). The embedded derivative is classified within accounts payable and other liabilities in the accompanying condensed consolidated balance sheets.

Effect of Derivative Financial Instruments on Statement of Operations

	Income Statement Impact of Derivative Instruments For the Three Months Ended June 30, 2012
	Amount of Unrealized Gain/(loss) Recognized in OCI on Derivative (Effective Portion)			Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain/(loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain/ (loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Derivative instruments:
Interest rate swaps	$	(39	)		Interest expense	$	(163	)	Other income/expense	$	—
Other derivatives		—			—		—		Changes in fair value of financial instruments and gain on OP unit redemption		589
Total	$	(39	)			$	(163	)		$	589

	Income Statement Impact of Derivative Instruments For the Three Months Ended June 30, 2011
	Amount of Unrealized Gain/(loss) Recognized in OCI on Derivative (Effective Portion)			Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain/(loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain/ (loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Derivative instruments:
Interest rate swaps	$	(802	)		Interest expense	$	(163	)	Other income/expense	$	—
Other derivatives		—			—		—		Changes in fair value of financial instruments and gain on OP unit redemption		512
Total	$	(802	)			$	(163	)		$	512

	Income Statement Impact of Derivative Instruments For the Six Months Ended June 30, 2012
	Amount of Unrealized Gain/(loss) Recognized in OCI on Derivative (Effective Portion)			Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain/(loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain/ (loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Derivative instruments:
Interest rate swaps	$	(212	)		Interest expense	$	(320	)	Other income/expense	$	—
Other derivatives		—			—		—		Changes in fair value of financial instruments and gain on OP unit redemption		1,051
Total	$	(212	)			$	(320	)		$	1,051

	Income Statement Impact of Derivative Instruments For the Six Months Ended June 30, 2011
	Amount of Unrealized Gain/(loss) Recognized in OCI on Derivative (Effective Portion)			Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain/(loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain/ (loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Derivative instruments:
Interest rate swaps	$	(733	)		Interest expense	$	(315	)	Other income/expense	$	—
Other derivatives		—			—		—		Changes in fair value of financial instruments and gain on OP unit redemption		512
Total	$	(733	)			$	(315	)		$	512

XML

Acquisitions (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Schedule of Acquisitions
Debt Assumed	$ 29,670	$ 62,366
Promenade Corporate Center [Member]
Schedule of Acquisitions
Property	Promenade Corporate Center
Date Acquired	Jan. 23, 2012
Location	Scottsdale, AZ
Square Footage	256,176
EastChase Market Center [Member]
Schedule of Acquisitions
Property	EastChase Market Center
Date Acquired	Feb. 17, 2012
Location	Montgomery, AL
Square Footage	181,431
La Costa Town Center [Member]
Schedule of Acquisitions
Property	La Costa Town Center
Date Acquired	Feb. 29, 2012
Location	Carlsbad, CA
Square Footage	121,429
Lake Pleasant Pavilion [Member]
Schedule of Acquisitions
Property	Lake Pleasant Pavilion
Date Acquired	May 16, 2012
Location	Peoria, AZ
Square Footage	178,376
Debt Assumed	$ 28,250

XML

Mortgages Payable, Net (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Mortgage debt maturities
2012 (remaining six months)	$ 2,053
2013	80,420
2014	76,834
2015	47,375
2016	1,335
Thereafter	63,736
Long-term Debt, Gross	$ 271,753	$ 245,652

XML

Fair Value of Financial Instruments (Details Textual) (USD $)	1 Months Ended	3 Months Ended	6 Months Ended
	Jan. 31, 2012	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011
Equity [Line Items]
Liability Recognized in connection with acquisition of Edwards Theatres property			$ 79,324,000	$ 37,335,000
Fair Value of Financial Instruments (Textual) [Abstract]
OP units tendered for redemption			299,927
Common stock issued in connection with redemption shares			193,510
Cash paid for redemption			1,900,000
Change in contingent consideration		2,400,000	2,400,000	328,000
Gains as a result of the excess of the fair value of the guarantee over the fair value of the consideration		175,000	349,000	512,000
Increase in additional paid in capital and common stock, par value		2,300,000	2,300,000
Additional Gains due to changes in fair value of financial instruments and gain on OP unit redemption		415,000	702,000
Contingent additional consideration paid to a property			391,000
Master Lease Asset related to the acquisition of the Promenade Corporate Center property		772,000	772,000
Earn-outs paid to a prior owner	1,600,000
Changes on Derivative instruments related to business combination			1,700,000	3,700,000
Decrease due to redemption of OP units			1,000,000
Edwards Theatres [Member]
Equity [Line Items]
Liability Recognized in connection with acquisition of Edwards Theatres property				$ 4,200,000

XML

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Property:
Land	$ 263,988	$ 236,941
Buildings	398,441	287,226
Site improvements	41,826	28,257
Tenant Improvements	33,617	28,517
Construction in progress	115	21,312
Less accumulated depreciation	(26,804)	(18,294)
Property, net	711,183	583,959
Cash and cash equivalents	7,179	5,292
Restricted cash	4,925	3,680
Tenant receivables, net	2,995	4,174
Lease intangibles, net	72,666	68,556
Mortgage and loan receivable		2,000
Deferred rent receivable	4,343	2,997
Other assets	17,253	17,013
Total assets	820,544	687,671
Liabilities:
Mortgages payable, net	272,485	244,961
Notes payable	13,629	21,000
Accounts payable and other liabilities	15,847	21,080
Lease intangibles, net	16,444	13,843
Dividends/distributions payable	8,405	5,801
Total liabilities	326,810	306,685
Stockholders' equity
Common stock, $.01 par value, 200,000,000 shares authorized; 33,732,448 and 30,289,813 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively	336	302
Additional paid-in capital	346,385	319,875
Cumulative deficit	(2,471)	(3,277)
Total Stockholders equity before accumulated other comprehensive loss	480,673	364,603
Accumulated other comprehensive loss	(608)	(811)
Total stockholders' equity	480,065	363,792
Non-controlling interests	13,669	17,194
Total equity	493,734	380,986
Total liabilities and equity	820,544	687,671
Series A Cumulative Convertible Perpetual Preferred Stock
Stockholders' equity
Preferred stock	47,703	47,703
Series B Cumulative Redeemable Preferred Stock
Stockholders' equity
Preferred stock	$ 88,720

XML

Lease Intangible Assets, Net (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Schedule of Estimated Amortization of Lease Intangible Assets
2012 (remaining six months)	$ 9,144
2013	15,373
2014	12,267
2015	8,325
2016	5,510
Thereafter	22,047
Total	$ 72,666	$ 68,556

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net income (loss)	$ 790	$ 1,965
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	16,831	10,976
Gain on acquisition of real estate		(937)
Changes in fair value of earn-outs		(328)
Changes in fair value of financial instruments and gain on OP unit redemption	(1,051)	(512)
Gain on sale of real estate assets		(3,976)
Deferred rent receivable	(1,386)	(783)
Amortization of above and below market leases	(171)	25
Amortization of deferred balances	958	569
Bad debt expense	395	331
Share-based compensation expenses	1,589	1,777
Change in assets and liabilities:
Tenant and other receivables	824	(181)
Other assets	(1,013)	8
Accounts payable and other liabilities	(1,189)	2,784
Net cash provided by operating activities	16,577	11,718
Cash flows from investing activities:
Acquisitions of property, development and property improvements	(79,324)	(37,335)
Capitalized leasing costs	(1,099)	(520)
Advance of note receivable	(750)
Collection of mortgage loan receivable	2,000
Purchase of equity securities	(125)
Proceeds from sale of equity securities	2,942
Restricted cash	(1,245)	3,533
Net cash used in investing activities	(77,601)	(34,322)
Cash flows from financing activities:
Issuance of common stock		150,579
Common stock offering costs		(267)
Issuance of preferred stock	89,102	48,425
Preferred stock offering costs	(382)	(704)
OP unit redemptions	(1,915)
Payments on mortgages payable	(2,146)	(1,023)
Payments on notes payable	(46,500)	(114,849)
Borrowings from notes payable	39,129	30,000
Distribution to non-controlling interests	(644)
Preferred stock dividends	(2,996)
Common stock and OP unit dividends/distributions	(10,314)	(5,139)
Deferred financing costs	(423)	(2,233)
Net cash provided (used) by financing activities	62,911	104,789
Net increase (decrease)	1,887	82,185
Cash and cash equivalents, beginning of period	5,292	6,525
Cash and cash equivalents, end of period	7,179	88,710
Supplemental cash flow information:
Cash payments for interest, net of amounts capitalized of $110 and $20	5,934	5,057
Non-cash investing and financing activity:
Acquisition of real estate for common shares and OP units	39,108	9,034
Assumption of net mortgage debt in connection with property acquisitions	29,670	62,366
Assets received in connection with property acquisitions	772	3,595
Liabilities assumed in connection with property acquisitions	539	7,962
Disposition of real estate assets classified as a 1031 exchange (including gain on sale of real estate assets of $3,976)		39,300
Common stock dividends payable	5,482	4,645
Preferred stock dividends payable	2,744	729
OP unit distributions payable	180	211
Accrued additions to operating and development properties	618	1,405
Accrued offering costs		354
Change in unrealized loss on interest rate swaps	108	220
Change in unrealized gain on marketable securities	103
OP unit redemptions (common stock)	$ (1,258)

XML

Derivatives and Hedging Activities (Details 1) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Effect of Derivative Financial Instruments on Statement of Operations
Amount of Unrealized Gain/(loss) Recognized in OCI on Derivative (Effective Portion)	$ (39)	$ (802)	$ (212)	$ (733)
Amount of Gain/(loss) Reclassified from Accumulated OCI into Income (Effective Portion)	(163)	(163)	(320)	(315)
Amount of Gain/(loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	589	512	1,051	512
Interest rate swaps [Member]
Effect of Derivative Financial Instruments on Statement of Operations
Amount of Unrealized Gain/(loss) Recognized in OCI on Derivative (Effective Portion)	(39)	(802)	(212)	(733)
Other derivatives [Member]
Effect of Derivative Financial Instruments on Statement of Operations
Amount of Unrealized Gain/(loss) Recognized in OCI on Derivative (Effective Portion)
Amount of Gain/(loss) Reclassified from Accumulated OCI into Income (Effective Portion)
Interest Expense [Member] | Interest rate swaps [Member]
Effect of Derivative Financial Instruments on Statement of Operations
Amount of Gain/(loss) Reclassified from Accumulated OCI into Income (Effective Portion)	(163)	(163)	(320)	(315)
Other income/expense [Member] | Interest rate swaps [Member]
Effect of Derivative Financial Instruments on Statement of Operations
Amount of Gain/(loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Changes in fair value of financial instruments and gain on OP unit redemption [Member] | Other derivatives [Member]
Effect of Derivative Financial Instruments on Statement of Operations
Amount of Gain/(loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	$ 589	$ 512	$ 1,051	$ 512

XML

Segment Disclosure (Tables)

6 Months Ended

Jun. 30, 2012

Segment Disclosure [Abstract]

Reconciliation of Company's Segment Operations Activity

	For the Three Months Ended						For the Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Office Properties:
Total revenues	$	2,274		$	797		$	4,106		$	1,619
Property operating expenses		(819	)		(168	)		(1,416	)		(338	)
Property net operating income, as defined		1,455			629			2,690			1,281
General and administrative		(29	)		(1	)		(97	)		(1	)
Depreciation and amortization		(1,055	)		(239	)		(1,849	)		(479	)
Interest expense		(197	)		(201	)		(395	)		(400	)
Income from continuing operations		174			188			349			401
Income from discontinued operations		—			—			—			—
Net income	$	174		$	188		$	349		$	401
Retail Properties:
Total revenues	$	18,254		$	11,992		$	36,202		$	21,649
Property operating expenses		(4,144	)		(2,919	)		(7,953	)		(5,406	)
Property net operating income, as defined		14,110			9,073			28,249			16,243
General and administrative		(3,283	)		(3,139	)		(6,718	)		(5,789	)
Depreciation and amortization		(7,497	)		(6,161	)		(14,982	)		(10,082	)
Interest expense		(3,789	)		(3,302	)		(7,265	)		(5,668	)
Interest income		53			43			106			84
Changes in fair value of earn-outs		—			—			—			937
Changes in fair value of financial instruments and gain on OP unit redemption		589			840			1,051			840

	For the Three Months Ended						For the Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Income (loss) from continuing operations		183			(2,646	)		441			(3,435	)
Income from discontinued operations		—			4,483			—			4,999
Net income (loss)	$	183		$	1,837		$	441		$	1,564
Total Reportable Segments:
Total revenues	$	20,528		$	12,789		$	40,308		$	23,268
Property operating expenses		(4,963	)		(3,087	)		(9,369	)		(5,744	)
Property net operating income, as defined		15,565			9,702			30,939			17,524
General and administrative		(3,312	)		(3,140	)		(6,815	)		(5,790	)
Depreciation and amortization		(8,552	)		(6,400	)		(16,831	)		(10,561	)
Interest expense		(3,986	)		(3,503	)		(7,660	)		(6,068	)
Interest income		53			43			106			84
Changes in fair value of earn-outs		—			—			—			937
Gain on changes in fair value of financial instruments and gain on OP unit redemption		589			840			1,051			840
(Loss) income from continuing operations		357			(2,458	)		790			(3,034	)
Income from discontinued operations		—			4,483			—			4,999
Net (loss) income	$	357		$	2,025		$	790		$	1,965
Attributable to Controlling Interest:
Income (loss) attributable to Excel Trust, Inc.	$	357		$	2,025		$	790		$	1,965
Net loss (income) attributable to non-controlling interests in operating partnership		86			(94	)		157			(95	)
Net income attributable to non-controlling interests in consolidated joint ventures		(75	)		5			(141	)		37
Net income (loss) attributable to Excel Trust, Inc.	$	368		$	1,936		$	806		$	1,907

Reconciliation of Company's Segment Financial Position Activity

	June 30,		December 31,
	2012		2011
Assets:
Office Properties:
Total assets	$	67,758	$	15,562
Retail Properties:
Total assets		752,786		672,109
Total Reportable Segments & Consolidated Assets:
Total assets	$	820,544	$	687,671

XML

Related Party Transactions (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Related Party Transactions (Textual) [Abstract]
Reimbursement to the related party	$ 79,000	$ 57,000	$ 148,000	$ 106,000

XML

Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

15. Commitments and Contingencies

Litigation:

The Company is not presently subject to any material litigation nor, to its knowledge, is any material litigation threatened against it which if determined unfavorably, would have a material effect on its condensed consolidated financial position, results of operations or cash flows.

Environmental Matters:

The Company follows the policy of monitoring its properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at its properties, the Company is not currently aware of any environmental liability with respect to its properties that would have a material effect on its condensed consolidated balance sheets, results of operations or cash flows. Further, the Company is not aware of any environmental liability or any unasserted claim or assessment with respect to an environmental liability that it believes would require additional disclosure or the recording of a loss contingency.

Property Acquisitions:

In connection with the Company’s note receivable secured by real estate, the Company also entered into a purchase and sale agreement to acquire the property at its election (see Note 7). The purchase price will be dependent upon leasing and net operating income of the property when and if acquired.

Other

The Company’s other commitments and contingencies include the usual obligations of real estate owners and operators in the normal course of business. In management’s opinion, these matters are not expected to have a material adverse effect on its condensed consolidated balance sheets, results of operations or cash flows. In addition, the Company expects to incur approximately $9.2 million in construction costs on two non-operating properties (primarily related to leasing commissions and final tenant build-outs).

XML

Organization (Details)	Jun. 30, 2012
Operating Partnership [Member]
Organization (Textual) [Abstract]
Percentage of ownership interest	96.70%
Limited Partner [Member]
Organization (Textual) [Abstract]
Percentage of ownership interest	3.30%

XML

Segment Disclosure

6 Months Ended

Jun. 30, 2012

Segment Disclosure [Abstract]

Segment Disclosure

17. Segment Disclosure

The Company’s reportable segments consist of the two types of commercial real estate properties for which management internally evaluates operating performance and financial results: Office Properties and Retail Properties. The Company was formed for the primary purpose of owning and operating Retail Properties. As such, administrative costs after the Offering are shown under the Retail Properties segment. The Retail Properties operating segment also includes undeveloped land which the Company intends to develop into retail properties.

The Company evaluates the performance of the operating segments based upon property net operating income. “Property Net Operating Income” is defined as operating revenues (rental revenue and tenant recoveries) less property operating expenses (maintenance and repairs, real estate taxes, management fees, and other operating expenses). The Company also evaluates interest expense, interest income and depreciation and amortization by segment. Corporate general and administrative expense, interest expense related to corporate indebtedness and other non-recurring gains or losses are reflected within the Retail Properties operating segment as this constitutes the Company’s primary business objective and represents the majority of its operations. There is no intersegment activity.

The following tables reconcile the Company’s segment activity to its condensed consolidated results of operations and financial position for the three and six months ended June 30, 2012 and 2011 (in thousands):

	For the Three Months Ended						For the Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Office Properties:
Total revenues	$	2,274		$	797		$	4,106		$	1,619
Property operating expenses		(819	)		(168	)		(1,416	)		(338	)
Property net operating income, as defined		1,455			629			2,690			1,281
General and administrative		(29	)		(1	)		(97	)		(1	)
Depreciation and amortization		(1,055	)		(239	)		(1,849	)		(479	)
Interest expense		(197	)		(201	)		(395	)		(400	)
Income from continuing operations		174			188			349			401
Income from discontinued operations		—			—			—			—
Net income	$	174		$	188		$	349		$	401
Retail Properties:
Total revenues	$	18,254		$	11,992		$	36,202		$	21,649
Property operating expenses		(4,144	)		(2,919	)		(7,953	)		(5,406	)
Property net operating income, as defined		14,110			9,073			28,249			16,243
General and administrative		(3,283	)		(3,139	)		(6,718	)		(5,789	)
Depreciation and amortization		(7,497	)		(6,161	)		(14,982	)		(10,082	)
Interest expense		(3,789	)		(3,302	)		(7,265	)		(5,668	)
Interest income		53			43			106			84
Changes in fair value of earn-outs		—			—			—			937
Changes in fair value of financial instruments and gain on OP unit redemption		589			840			1,051			840

	For the Three Months Ended						For the Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Income (loss) from continuing operations		183			(2,646	)		441			(3,435	)
Income from discontinued operations		—			4,483			—			4,999
Net income (loss)	$	183		$	1,837		$	441		$	1,564
Total Reportable Segments:
Total revenues	$	20,528		$	12,789		$	40,308		$	23,268
Property operating expenses		(4,963	)		(3,087	)		(9,369	)		(5,744	)
Property net operating income, as defined		15,565			9,702			30,939			17,524
General and administrative		(3,312	)		(3,140	)		(6,815	)		(5,790	)
Depreciation and amortization		(8,552	)		(6,400	)		(16,831	)		(10,561	)
Interest expense		(3,986	)		(3,503	)		(7,660	)		(6,068	)
Interest income		53			43			106			84
Changes in fair value of earn-outs		—			—			—			937
Gain on changes in fair value of financial instruments and gain on OP unit redemption		589			840			1,051			840
(Loss) income from continuing operations		357			(2,458	)		790			(3,034	)
Income from discontinued operations		—			4,483			—			4,999
Net (loss) income	$	357		$	2,025		$	790		$	1,965
Attributable to Controlling Interest:
Income (loss) attributable to Excel Trust, Inc.	$	357		$	2,025		$	790		$	1,965
Net loss (income) attributable to non-controlling interests in operating partnership		86			(94	)		157			(95	)
Net income attributable to non-controlling interests in consolidated joint ventures		(75	)		5			(141	)		37
Net income (loss) attributable to Excel Trust, Inc.	$	368		$	1,936		$	806		$	1,907

	June 30,		December 31,
	2012		2011
Assets:
Office Properties:
Total assets	$	67,758	$	15,562
Retail Properties:
Total assets		752,786		672,109
Total Reportable Segments & Consolidated Assets:
Total assets	$	820,544	$	687,671

XML

Fair Value of Financial Instruments (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Schedule of Financial Assets And Liabilities Measured at Fair Value on a Recurring Basis
Interest rate swaps (see Note 11)	$ 911,000
Contingent consideration related to business combinations	772,000	(1,613,000)
Derivative instrument related to business combinations (see Note 11)	(1,345,000)	(3,050,000)
Investment in equity securities (see Note 2)	6,461,000	9,164,000
Interest rate swaps [Member]
Schedule of Financial Assets And Liabilities Measured at Fair Value on a Recurring Basis
Interest rate swaps (see Note 11)	(857,000)	(965,000)
Quoted Prices In Active Markets (Level 1) [Member]
Schedule of Financial Assets And Liabilities Measured at Fair Value on a Recurring Basis
Contingent consideration related to business combinations
Derivative instrument related to business combinations (see Note 11)
Investment in equity securities (see Note 2)	6,461,000	9,164,000
Quoted Prices In Active Markets (Level 1) [Member] | Interest rate swaps [Member]
Schedule of Financial Assets And Liabilities Measured at Fair Value on a Recurring Basis
Interest rate swaps (see Note 11)
Significant Other Observable Inputs (Level 2) [Member]
Schedule of Financial Assets And Liabilities Measured at Fair Value on a Recurring Basis
Contingent consideration related to business combinations
Derivative instrument related to business combinations (see Note 11)
Investment in equity securities (see Note 2)
Significant Other Observable Inputs (Level 2) [Member] | Interest rate swaps [Member]
Schedule of Financial Assets And Liabilities Measured at Fair Value on a Recurring Basis
Interest rate swaps (see Note 11)	(857,000)	(965,000)
Significant Unobservable Inputs (Level 3) [Member]
Schedule of Financial Assets And Liabilities Measured at Fair Value on a Recurring Basis
Contingent consideration related to business combinations	772,000	(1,613,000)
Derivative instrument related to business combinations (see Note 11)	(1,345,000)	(3,050,000)
Investment in equity securities (see Note 2)
Significant Unobservable Inputs (Level 3) [Member] | Interest rate swaps [Member]
Schedule of Financial Assets And Liabilities Measured at Fair Value on a Recurring Basis
Interest rate swaps (see Note 11)

XML

Condensed Consolidated Statements of Cash Flows (Parenthetical) (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Condensed Consolidated Statements of Cash Flows [Abstract]
Cash Payments For Interest Amounts Capitalized	$ 110	$ 20
Gain on sale of real estate assets		$ 3,976

XML

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock dividend rate percentage	7.00%
Preferred stock, shares outstanding	2,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	33,732,448	30,289,813
Common stock, shares outstanding	33,732,448	30,289,813
Series A Preferred Stock
Preferred stock dividend rate percentage	7.00%	7.00%
Liquidation preference	$ 50,000,000	$ 50,000,000
Liquidation preference, per share	$ 25.00	$ 25.00
Preferred stock, shares issued	2,000,000	2,000,000
Preferred stock, shares outstanding	2,000,000	2,000,000
Series B Cumulative Redeemable Preferred Stock
Preferred stock dividend rate percentage	8.125%	8.125%
Liquidation preference	$ 92,000,000	$ 92,000,000
Liquidation preference, per share	$ 25.00	$ 25.00
Preferred stock, shares issued	3,680,000	0
Preferred stock, shares outstanding	3,680,000	0

XML

Earnings Per Share

6 Months Ended

Jun. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

10. Earnings Per Share

Basic earnings (loss) per share is computed by dividing (loss) income available to common stockholder by the weighted average shares outstanding, as adjusted for the effect of participating securities. The Company’s unvested restricted share awards are participating securities as they contain non-forfeiture rights to dividends. The impact of unvested restricted share awards on earnings (loss) per share has been calculated using the two-class method whereby earnings are allocated to the unvested restricted share awards based on dividends and the unvested restricted shares’ participation rights in undistributed earnings (losses).

The calculation of diluted earnings per share for the three and six months ended June 30, 2012 and 2011 does not include unvested restricted common shares, contingently issuable shares (Note 3), or OP units as the effect of including these equity securities was anti-dilutive to loss from continuing operations and net loss attributable to the common stockholders. In addition, common shares issuable upon settlement of the conversion feature of the 7.00% Series A Cumulative Convertible Perpetual Preferred Stock were anti-dilutive and were not included in the calculation of diluted earnings per share based on the “if converted” method for the three and six months ended June 30, 2012 and 2011.

Computations of basic and diluted earnings per share for the three and six months ended June 30, 2012 and 2011 (in thousands, except share data) were as follows:

	Three Months Ended						Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Basic earnings per share:
Income (loss) from continuing operations	$	357		$	(2,458	)	$	790		$	(3,034	)
Preferred dividends		(2,744	)		(875	)		(4,865	)		(1,478	)
Allocation to participating securities		(149	)		(157	)		(299	)		(305	)
Loss from continuing operations attributable to non-controlling interests		11			277			16			252
Loss from continuing operations attributable to the common stockholders	$	(2,525	)	$	(3,213	)	$	(4,358	)	$	(4,565	)
Net (loss) income attributable to the common stockholders	$	(2,376	)	$	1,061		$	(4,059	)	$	429
Allocation to participating securities		(149	)		(157	)		(299	)		(305	)
Net (loss) income applicable to the common stockholders	$	(2,525	)	$	904		$	(4,358	)	$	124
Weighted-average common shares outstanding:
Basic and diluted		32,785,490			15,855,786			32,273,468			15,685,606
Basic and diluted earnings per share:
Loss from continuing operations per share attributable to the common stockholders	$	(0.08	)	$	(0.20	)	$	(0.14	)	$	(0.29	)
Income from discontinued operations per share attributable to the common stockholders		—			0.26			—			0.30
Net loss per share attributable to the common stockholders	$	(0.08	)	$	0.06		$	(0.14	)	$	0.01

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 02, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	EXCEL TRUST, INC.
Entity Central Index Key	0001478950
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Common stock, shares outstanding		34,050,675

XML

Derivatives and Hedging Activities

6 Months Ended

Jun. 30, 2012

Derivatives and Hedging Activities [Abstract]

Derivatives and Hedging Activities

11. Derivatives and Hedging Activities

In December 2010, the Company executed two pay-fixed interest rate swaps with a notional value of $55.8 million (weighted average interest rate of 1.41%) to hedge the variable cash flows associated with one of the Company’s mortgage payables. As a result of the interest rate swaps, the Company either (1) receives the difference between a fixed interest rate (the “Strike Rate”) and one-month LIBOR if the Strike Rate is less than LIBOR or (2) pays such difference if the Strike Rate is greater than LIBOR. No initial investment was made to enter into either of the interest rate swap agreements. The Company had no derivative financial instruments prior to the execution of the two swaps.

During the three and six months ended June 30, 2012, the Company recorded no amounts in earnings attributable to hedge ineffectiveness. During the next twelve months, the Company estimates that an additional $607,000 will be reclassified from other comprehensive income as an increase to interest expense.

As of June 30, 2012, the Company had the following outstanding interest rate swaps and other derivatives instruments (in thousands):

	Fair Value(1)				Current Notional Amount		Strike Rate	Expiration Date
Type of Derivative Instrument	June 30, 2012		December 31, 2011
Interest rate swaps (2)	$	857	$	965	$	55,800	1.34% to 1.48%	December 2013
Other derivative instrument (3)		1,345		3,050				March 2013
Total derivative instruments	$	2,202	$	4,015

⁽¹⁾ Fair value of derivative instruments does not include any related accrued interest payable to the counterparty.

⁽²⁾ The interest rate swaps are classified within accounts payable and other liabilities on the accompanying condensed consolidated balance sheets.

⁽³⁾ The Company’s purchase agreement executed in connection with the acquisition of the Edwards Theatres property in March 2011 contained a provision determined to be an embedded derivative instrument. The embedded derivative provides a guaranteed fair value for the OP units provided to the sellers of the property if redeemed for shares of the Company’s common stock or cash, at the Company’s election, prior to March 2013. The fair value of the embedded derivative at each period is calculated through the use of a Monte Carlo valuation model based on the historical volatility and closing price of the Company’s common stock and a risk-free interest rate (see Note 16 for discussion of changes in the fair value of this derivative). The embedded derivative is classified within accounts payable and other liabilities in the accompanying condensed consolidated balance sheets.

Tabular Disclosure of the Effect of Derivative Instruments on the Income Statement

The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the three months ended June 30, 2012 and 2011 (in thousands):

	Income Statement Impact of Derivative Instruments For the Three Months Ended June 30, 2012
	Amount of Unrealized Gain/(loss) Recognized in OCI on Derivative (Effective Portion)			Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain/(loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain/ (loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Derivative instruments:
Interest rate swaps	$	(39	)		Interest expense	$	(163	)	Other income/expense	$	—
Other derivatives		—			—		—		Changes in fair value of financial instruments and gain on OP unit redemption		589
Total	$	(39	)			$	(163	)		$	589

	Income Statement Impact of Derivative Instruments For the Three Months Ended June 30, 2011
	Amount of Unrealized Gain/(loss) Recognized in OCI on Derivative (Effective Portion)			Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain/(loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain/ (loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Derivative instruments:
Interest rate swaps	$	(802	)		Interest expense	$	(163	)	Other income/expense	$	—
Other derivatives		—			—		—		Changes in fair value of financial instruments and gain on OP unit redemption		512
Total	$	(802	)			$	(163	)		$	512

The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the six months ended June 30, 2012 and 2011 (in thousands):

	Income Statement Impact of Derivative Instruments For the Six Months Ended June 30, 2012
	Amount of Unrealized Gain/(loss) Recognized in OCI on Derivative (Effective Portion)			Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain/(loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain/ (loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Derivative instruments:
Interest rate swaps	$	(212	)		Interest expense	$	(320	)	Other income/expense	$	—
Other derivatives		—			—		—		Changes in fair value of financial instruments and gain on OP unit redemption		1,051
Total	$	(212	)			$	(320	)		$	1,051

	Income Statement Impact of Derivative Instruments For the Six Months Ended June 30, 2011
	Amount of Unrealized Gain/(loss) Recognized in OCI on Derivative (Effective Portion)			Location of Loss Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain/(loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain/ (loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Derivative instruments:
Interest rate swaps	$	(733	)		Interest expense	$	(315	)	Other income/expense	$	—
Other derivatives		—			—		—		Changes in fair value of financial instruments and gain on OP unit redemption		512
Total	$	(733	)			$	(315	)		$	512

Credit-risk-related Contingent Features

Under the terms of the two interest rate swaps detailed above, the Company could be declared in default on its obligations under the swap agreements in the event that it defaults on any of its indebtedness, even if repayment of the indebtedness has not been accelerated by the lender. Additionally, because the Company’s derivative counterparty is also the lender for the hedged floating rate credit agreement, the swap agreements incorporate the loan covenant provisions of the Company’s indebtedness. Failure to comply with the loan covenant provisions would result in the Company being in default on any derivative instrument obligations covered by the agreement.

If the Company had breached any of these provisions at June 30, 2012, it could have been required to settle its obligations under the agreements at their termination value. As of June 30, 2012, the termination value defined as the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, was a liability of approximately $911,000. As of June 30, 2012, the Company has not posted any collateral related to these agreements.

Although the Company’s derivative contracts are subject to a master netting arrangement, the Company does not net its derivative fair values or any existing rights or obligations to cash collateral on the consolidated balance sheet.

XML

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues:
Rental revenue	$ 17,015	$ 10,467	$ 33,168	$ 18,943
Tenant recoveries	3,185	2,220	6,452	4,118
Other income	328	102	688	207
Total revenues	20,528	12,789	40,308	23,268
Expenses:
Maintenance and repairs	1,352	780	2,674	1,419
Real estate taxes	2,460	1,377	4,525	2,513
Management fees	198	133	388	250
Other operating expenses	953	797	1,782	1,562
Changes in fair value of earn-outs		(328)		(328)
General and administrative	3,312	3,140	6,815	5,790
Depreciation and amortization	8,552	6,400	16,831	10,561
Total expenses	16,827	12,299	33,015	21,767
Net operating income	3,701	490	7,293	1,501
Interest expense	(3,986)	(3,503)	(7,660)	(6,068)
Interest income	53	43	106	84
Gain on acquisition of real estate and sale of land parcel				937
Changes in fair value of financial instruments and gain on OP unit redemption	589	512	1,051	512
Income (loss) from continuing operations	357	(2,458)	790	(3,034)
Income from discontinued operations		507		1,023
Gain on sale of real estate assets		(3,976)		3,976
Income from discontinued operations		4,483		4,999
Net income	357	2,025	790	1,965
Net loss (income) attributable to non-controlling interests	11	(89)	16	(58)
Net income available to Excel Trust, Inc.	368	1,936	806	1,907
Preferred stock dividends	(2,744)	(875)	(4,865)	(1,478)
Net (loss) income attributable to the common stockholders	(2,376)	1,061	(4,059)	429
Loss income from continuing operations per share attributable to the common stockholders - basic and diluted	$ (0.08)	$ (0.20)	$ (0.14)	$ (0.29)
Net (loss) income per share attributable to the common stockholders - basic and diluted	$ (0.08)	$ 0.06	$ (0.14)	$ 0.01
Weighted-average common shares outstanding - basic and diluted	32,785	15,856	32,273	15,686
Dividends declared per common share	$ 0.1625	$ 0.15	$ 0.325	$ 0.29
Net income	357	2,025	790	1,965
Other comprehensive income (loss):
Change in unrealized gain on investment in equity securities	82		103
Gain on sale of equity securities (reclassification adjustment)			(11)
Change in unrealized loss on interest rate swaps	124	(638)	108	(418)
Comprehensive income	563	1,387	990	1,547
Comprehensive (income) loss attributable to non-controlling interests	4	(37)	8	(15)
Comprehensive income attributable to Excel Trust, Inc.	$ 567	$ 1,350	$ 998	$ 1,532

XML

Lease Intangible Liabilities, Net

6 Months Ended

Jun. 30, 2012

Lease Intangible Liabilities, Net [Abstract]

Lease Intangible Liabilities, Net

5. Lease Intangible Liabilities, Net

Lease intangible liabilities, net consisted of the following at June 30, 2012 and December 31, 2011:

	June 30, 2012		December 31, 2011
	(in thousands)
Below market leases, net of accumulated amortization of $3.7 million and $2.5 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 95 and 106 months as of June 30, 2012 and December 31, 2011, respectively)	$	16,444	$	13,843

Amortization recorded on the lease intangible liabilities for the three months ended June 30, 2012 and 2011 was $767,000 and $425,000, respectively. Amortization recorded on the lease intangible liabilities for the six months ended June 30, 2012 and 2011 was $1.7 million and $718,000, respectively. These amounts were recorded to rental income in the Company’s condensed consolidated statements of operations.

Estimated amortization of lease intangible liabilities as of June 30, 2012 for each of the next five years and thereafter is as follows (in thousands):

Year Ending December 31,	Amount
2012 (remaining six months)	$	1,552
2013		2,780
2014		2,546
2015		2,001
2016		1,600
Thereafter		5,965
Total	$	16,444

XML

Lease Intangible Assets, Net

6 Months Ended

Jun. 30, 2012

Lease Intangible Assets, Net [Abstract]

Lease Intangible Assets, Net

4. Lease Intangible Assets, Net

Lease intangible assets, net consisted of the following at June 30, 2012 and December 31, 2011:

	June 30, 2012		December 31, 2011
	(in thousands)
In-place leases, net of accumulated amortization of $16.3 million and $11.8 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 75 and 83 months as of June 30, 2012 and December 31, 2011, respectively)	$	45,401	$	44,356
Above market leases, net of accumulated amortization of $3.6 million and $2.6 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 69 and 75 months as of June 30, 2012 and December 31, 2011, respectively)		13,571		11,056
Leasing commissions, net of accumulated amortization of $3.9 million and $2.8 million as of June 30, 2012 and December 31, 2011, respectively (with a weighted average remaining life of 103 and 113 months as of June 30, 2012 and December 31, 2011, respectively)		13,694		13,144
	$	72,666	$	68,556

Estimated amortization of lease intangible assets as of June 30, 2012 for each of the next five years and thereafter is as follows (in thousands):

Year Ending December 31,	Amount
2012 (remaining six months)	$	9,144
2013		15,373
2014		12,267
2015		8,325
2016		5,510
Thereafter		22,047
Total	$	72,666

Amortization expense recorded on the lease intangible assets for the three months ended June 30, 2012 and 2011 was $4.6 million and $2.9 million, respectively. Included in these amounts are $823,000 and $406,000, respectively, of amortization of above market lease intangible assets recorded against rental income. Amortization expense recorded on the lease intangible assets for the six months ended June 30, 2012 and 2011 was $9.5 million and $5.3 million, respectively. Included in these amounts are $1.6 million and $743,000, respectively, of amortization of above market lease intangible assets recorded against rental income.

XML

Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2012

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

16. Fair Value of Financial Instruments

The Company is required to disclose fair value information relating to financial instruments that are remeasured on a recurring basis and those that are only initially recognized at fair value (not required to be subsequently remeasured). The Company’s disclosures of estimated fair value of financial instruments were determined using available market information and appropriate valuation methods. The use of different assumptions or methods of estimation may have a material effect on the estimated fair value of financial instruments.

The following table reflects the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis and changes in the fair value for each reporting period (in thousands):

	Balance at June 30, 2012			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Fair value measurements on a recurring basis:
Interest rate swaps (see Note 11)	$	(857	)	$	—	$	(857	)	$	—
Contingent consideration related to business combinations (1)		772			—		—			772
Derivative instrument related to business combinations (see Note 11)( 2 )		(1,345	)		—		—			(1,345	)
Investment in equity securities (see Note 2)		6,461			6,461		—			—

	Balance at December 31, 2011			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Fair value measurements on a recurring basis:
Interest rate swaps (see Note 11)	$	(965	)	$	—	$	(965	)	$	—
Contingent consideration related to business combinations ( 3 )		(1,613	)		—		—			(1,613	)
Derivative instrument related to business combinations (see Note 11)( 2 )		(3,050	)		—		—			(3,050	)
Investment in equity securities (see Note 2)		9,164			9,164		—			—

⁽¹⁾ Amount reflects the fair value of funds expected to be received pursuant to master lease agreements executed in connection with the Promenade Corporate Center acquisition. The Company has estimated the fair value of the asset based on its expectations of the probability of leasing or releasing spaces within the term of the master lease agreements and corresponding estimates for time required to lease, lease rates and funds required for tenant improvements and lease commissions. This amount has been included in other assets in the accompanying consolidated balance sheets, with subsequent changes in the fair value of the asset recorded as a gain (loss) in earnings in the period in which the change occurs.

^{(2 )} Amount reflects the fair value of a provision within a purchase agreement that provides a guaranteed redemption value for OP units provided to the sellers of a property acquired in March 2011 (see Note 3 for additional details). The Company has estimated the fair value of the embedded derivative instrument using a Monte Carlo valuation model based on the historical volatility and closing price of the Company’s common stock and a risk-free interest rate. This amount is included in accounts payable and other liabilities in the accompanying consolidated balance sheets, with changes in the fair value of the embedded derivative recorded as gain (loss) on changes in fair value of financial instruments and gain on OP unit redemption in the consolidated statements of operations.

During the six months ended June 30, 2012, 299,927 OP units were tendered to the Company for redemption, resulting in the issuance of 193,510 shares of common stock and cash payments totaling approximately $1.9 million. The Company has recognized the acquisition of non-controlling interests based on the fair value of shares issuable in connection with the one-for-one redemption right available to all holders of OP units. The Company recognized gains of approximately $175,000 and $349,000 in the three and six months ended June 30, 2012, respectively, as a result of the excess of the fair value of the guarantee over the fair value of the consideration required to settle. In total, the Company recognized an increase in additional paid in capital and common stock, par value, of approximately $2.3 million. The Company also recognized additional gains of $415,000 and $702,000 in the three and six months ended June 30, 2012, respectively, for changes in fair value of financial instruments and gain on OP unit redemption in the consolidated statements of operations as a result of updated valuations of the remaining provision.

^{(3 )} Additional consideration was due the prior owners of two properties acquired in 2010 based on their ability to lease-up vacant space or sell a land parcel through a defined period following the acquisition date. Additional consideration in the amount of $391,000 relating to one of the two properties was paid in 2011. The remaining contingent consideration included in the balance of accounts payable and other liabilities in the accompanying consolidated balance sheet at December 31, 2011 represents approximately $1.6 million in earn-outs paid to a prior owner in January 2012.

The following table reconciles the beginning and ending balances of financial instruments that are remeasured on a recurring basis using significant unobservable inputs (Level 3) as of June 30, 2012 (in thousands):

	Contingent Consideration Related to Business Combinations			Derivative Instruments Related to Business Combinations
Beginning balance, January 1, 2012	$	(1,613	)	$	(3,050	)
Total gains:
Included in earnings (1)		—			1,051
Purchases, issuances, or settlements (1)		2,385			654
Ending balance, June 30, 2012	$	772		$	(1,345	)

⁽¹⁾ The change of $2.4 million for contingent consideration related to business combinations during the six months ended June 30, 2012 is comprised of (1) a decrease in the liability balance due to the payment of approximately $1.6 million in earn-outs in January 2012 and (2) the recognition of a master lease asset of $772,000 related to the acquisition of the Promenade Corporate Center property. The change of $1.7 million for derivative instruments related to business combinations during the six months ended June 30, 2012 is comprised of (1) a decrease of $1.0 million due to a redemption of OP units related to the acquisition of the Edwards Theatres property (which includes a gain of $349,000 that is included in earnings) and (2) a gain of $702,000 included in earnings related to the change in the fair value of the derivative liability.

The following table reconciles the beginning and ending balances of financial instruments that are remeasured on a recurring basis using significant unobservable inputs (Level 3) as of June 30, 2011 (in thousands):

	Contingent Consideration Related to Business Combinations			Derivative Instruments Related to Business Combinations
Beginning balance, January 1, 2011	$	(2,438	)	$	—
Total gains:
Included in earnings (1)		328			512
Purchases, issuances, or settlements (1)		—			(4,204	)
Ending balance, June 30, 2011	$	(2,110	)	$	(3,692	)

⁽¹⁾ The change of $328,000 for contingent consideration related to business combinations during the six months ended June 30, 2011 is due to changes in the Company’s initial estimates of the fair value of contingent consideration as a result of a fewer number of executed leases. The change of $3.7 million for derivative instruments related to business combinations during the six months ended June 30, 2011 is comprised of (1) the recognition of a liability in the amount of $4.2 million in connection with the purchase of the Edwards Theatres property in March 2011 and (2) a gain of $512,000 included in earnings related to the change in the fair value of the derivative liability.

There were no additional gains or losses, purchases, sales, issuances, settlements, or transfers in or out related to fair value measurements using level three inputs during the three and six months ended June 30, 2012 and 2011.

The following table provides quantitative disclosure about significant unobservable inputs related to financial assets and liabilities measured on a recurring basis (Level 3 of the fair value hierarchy) as of June 30, 2012:

	Fair Value at June 30, 2012		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Contingent consideration related to business combinations (1)	$	772	Cash flow	Tenant improvement allowance Lease commission TI construction period	$12.00/sf 6.0% 2 months
Derivative instrument related to business combinations (2)	$	1,345	Monte Carlo	Share volatility Expected term Risk free rate	46.0% 0.7 years 0.2%

⁽¹⁾ The significant unobservable inputs used in the fair value measurement of the master lease agreement asset are any estimated tenant improvement allowances, leasing commissions and the construction periods associated with projected new leasing. Significant increases (decreases) in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for market lease rates is accompanied by a directionally similar change in the assumption used for tenant improvement allowances and/or leasing commissions.

⁽²⁾ The significant unobservable inputs used in the fair value measurement of the redemption provision are share volatility, risk-free rate and expected term. Significant increases (decreases) in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the share volatility is reflective of changes in the underlying fair value of the Company’s common stock and those of peer companies utilized in the analysis (Level 1 of the fair value hierarchy), which could significantly affect the estimated fair value of the underlying derivative instrument.

The Company has not elected the fair value measurement option for any of its other financial assets or liabilities. The Company has estimated the fair value of its financial assets using a discounted cash flow analysis based on an appropriate market rate for a similar type of instrument. The Company has estimated the fair value of its financial liabilities by using either (1) a discounted cash flow analysis using an appropriate market discount rate for similar types of instruments, or (2) a present value model and an interest rate that includes a credit value adjustment based on the estimated value of the property that serves as collateral for the underlying debt. The fair values of financial instruments not included in this table are estimated to be equal to their carrying amounts.

The fair values of certain additional financial assets and liabilities at June 30, 2012 and December 31, 2011 (fair value measurements categorized as Level 3 of the fair value hierarchy) are as follows (in thousands):

	June 30, 2012				December 31, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Note receivable (Other Assets)	$	750	$	750	$	—	$	—
Mortgage loan receivable		—		—		2,000		2,000
Financial liabilities:
Mortgage notes payable		272,485		277,736		244,961		248,597
Notes payable		13,629		13,617		21,000		20,661

XML

Equity

6 Months Ended

Jun. 30, 2012

Equity [Abstract]

Equity

12. Equity

The Company has issued restricted stock awards to senior executives, directors and employees totaling 1,100,042 shares of common stock (net of forfeitures of 3,000 shares), which are included in the total shares of common stock outstanding as of June 30, 2012.

As of June 30, 2012, the Company had outstanding 2,000,000 shares of 7.00% Series A Cumulative Convertible Perpetual Preferred Stock (“Series A preferred stock”), with a liquidation preference of $25.00 per share. The Company pays cumulative dividends on the Series A preferred stock when, as and if declared by the Company’s Board of Directors, at a rate of 7.00% per annum, subject to adjustment in certain circumstances. The annual dividend on each share of Series A preferred stock is $1.75, payable quarterly in arrears on the 15th calendar day of January, April, July and October of each year. Holders of the Series A preferred stock generally have no voting rights except for limited voting rights if the Company fails to pay dividends for six or more quarterly periods (whether or not consecutive) and in certain other circumstances.

The Series A preferred stock is convertible, at the holders’ option, at any time and from time to time, into common stock of the Company at an initial conversion rate of 1.6667 shares of common stock per share of Series A preferred stock, which is equivalent to an initial conversion price of $15.00 per share. The conversion price will be subject to customary adjustments in certain circumstances. On or after April 1, 2014, the Company may, at its option, convert some or all of the Series A preferred stock if the closing price of the common stock equals or exceeds 140% of the conversion price for at least 20 of the 30 consecutive trading days ending the day before the notice of exercise of conversion is sent and the Company has either declared and paid, or declared and set apart for payment, any unpaid dividends that are in arrears on the Preferred Stock. Net proceeds from this offering were approximately $47.7 million. The Company used the net proceeds of this offering to repay a portion of the outstanding indebtedness under the unsecured revolving credit facility.

The Company’s Board of Directors has authorized a stock repurchase program under which the Company may acquire up to $30.0 million of its common stock in open market and negotiated purchases with no expiration date. Through June 30, 2012, the Company has repurchased 674,866 shares of its common stock for an aggregate cost of approximately $6.7 million (including transaction costs) at a weighted average purchase price of $9.99 per share. The shares were subsequently retired by the Company.

On January 31, 2012, the Company completed the issuance of 3,680,000 shares of 8.125% Series B preferred stock (“Series B preferred stock”), with a liquidation preference of $25.00 per share, including the exercise of an overallotment option of 480,000 shares. The Company pays cumulative dividends on the Series B preferred stock, when, as and if declared by the Company’s board of directors, at a rate of 8.125% per annum, subject to adjustment in certain circumstances. The annual dividend on each share of Series B preferred stock is $2.03125, payable quarterly in arrears on the 15th calendar day of January, April, July and October of each year. Holders of the Series B preferred stock generally have no voting rights except for limited voting rights if the Company fails to pay dividends for six or more quarterly periods (whether or not consecutive) and in certain other circumstances. At any time on and after January 31, 2017, the Company may, at its option, redeem the Series B preferred stock, in whole or from time to time in part, by paying $25.00 per share, plus any accrued and unpaid dividends to, but not including, the date of redemption. In addition, upon the occurrence of a change of control, the Company or a successor may, at its option, redeem the Series B preferred stock, in whole or in part and within 120 days after the first date on which such change of control occurred, by paying $25.00 per share, plus any accrued and unpaid dividends to, but not including, the date of redemption. Net proceeds from this offering were approximately $88.7 million. The Company used the net proceeds of this offering to repay the outstanding indebtedness under its unsecured revolving credit facility and for other general corporate and working capital purposes.

On March 9, 2012, the Company entered into equity distribution agreements (the “2012 Equity Distribution Agreements”) with four sales agents, under which it can issue and sell shares of its common stock having an aggregate offering price of up to $50.0 million from time to time through, at its discretion, any of the sales agents. The sales of common stock made under the 2012 Equity Distribution Agreements will be made in “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”). During the six months ended June 30, 2012, no shares were issued under any of the 2012 Equity Distribution Agreements. Subsequent to June 30, 2012, the Company completed the issuance of 254,100 shares pursuant to the 2012 Equity Distribution Agreements, resulting in net proceeds of approximately $3.0 million at an average stock issuance price of $12.17 per share.

Consolidated net income is reported in the Company’s condensed consolidated financial statements at amounts that include the amounts attributable to both the common stockholders and the non-controlling interests. In conjunction with the Company’s formation transactions, interests in four properties were contributed in exchange for 641,062 OP units. In March 2011, the Company issued an additional 764,343 OP units in connection with the acquisition of the Edwards Theatres property. During the six months ended June 30, 2012, a total of 299,927 OP units related to the Edwards Theatres acquisition were tendered to the Company for redemption, resulting in the issuance of an additional 193,510 shares of common stock and cash payments totaling approximately $1.9 million to former unitholders (see Note 16 for further discussion).

OP units not held by the Company are reflected as non-controlling interest in the Company’s condensed consolidated financial statements and included as equity. OP units not held by the Company have redemption provisions that permit the Operating Partnership to settle in either cash or common stock at the option of the Operating Partnership, which have been further evaluated to determine that permanent equity classification on the balance sheet is appropriate.

The following table shows the vested ownership interests in the Operating Partnership as of June 30, 2012 and December 31, 2011:

	June 30, 2012					December 31, 2011
	OP Units		Percentage of Total			OP Units		Percentage of Total
Excel Trust, Inc.		32,813,808		96.7	%		29,271,593		95.4	%
Non-controlling interest consisting of:
OP units		1,105,478		3.3	%		1,405,405		4.6	%
Total		33,919,286		100.0	%		30,676,998		100.0	%

A charge/credit is recorded each period in the consolidated statements of income for the non-controlling interests’ proportionate share of the Company’s net income (loss). Ownership interests held by the Company do not include unvested restricted stock.

2010 Equity Incentive Award Plan

The Company has established the 2010 Equity Incentive Award Plan of Excel Trust, Inc. and Excel Trust, L.P. (the “2010 Plan”), pursuant to which the Company’s Board of Directors or a committee of its independent directors may make grants of stock options, restricted stock, stock appreciation rights and other stock-based awards to its non-employee directors, employees and consultants. The maximum number of shares of the Company’s common stock that may be issued pursuant to the 2010 Plan is 1,350,000 (of which 249,958 shares of common stock remain available for issuance as of June 30, 2012).

The following shares of restricted common stock were issued during the three months ended March 31, 2012 and June 30, 2012:

Grant Data	Price at Grant Date		Number		Vesting Period (yrs.)
Three months ended March 31, 2012 (1)	$	12.42		5,000		4
Three months ended June 30, 2012 (2)	$	11.99		13,356		1

⁽¹⁾ Shares issued to certain of the Company’s employees. These shares vest over four years with 25% vesting on the first anniversary of the grant date and the remainder vesting in equal quarterly installments thereafter.

⁽²⁾ Shares issued to members of the Company’s board of directors. These shares vest in equal monthly installments.

Shares of the Company’s restricted common stock generally may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution or, subject to the consent of the administrator of the 2010 Plan, a domestic relations order, unless and until all restrictions applicable to such shares have lapsed. Such restrictions expire upon vesting. Shares of the Company’s restricted common stock have full voting rights and rights to dividends upon grant. During the three and six months ended June 30, 2012, the Company recognized compensation expense of $804,000 and $1.6 million, respectively, related to the restricted common stock grants ultimately expected to vest. During the three and six months ended June 30, 2011, the Company recognized compensation expense of $1.2 million and $1.8 million, respectively, related to the restricted common stock grants ultimately expected to vest. ASC Topic 718, Compensation — Stock Compensation, requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company has estimated $0 in forfeitures. Stock compensation expense is included in general and administrative in the Company’s accompanying condensed consolidated statements of operations.

As of June 30, 2012 and December 31, 2011, there was approximately $5.0 million and $6.4 million, respectively, of total unrecognized compensation expense related to the non-vested shares of the Company’s restricted common stock. As of June 30, 2012, this expense was expected to be recognized over a weighted-average remaining period of 2.5 years.

	Number of Unvested Shares of Restricted Common Stock			Weighted Average Grant Date Fair Value
Balance — January 1, 2012		1,018,220		$	10.69
Grants		18,356		$	12.11
Forfeitures		—		$	—
Vested		(117,936	)	$	12.18
Balance — June 30, 2012		918,640		$	9.99
Expected to vest — June 30, 2012		918,640		$	9.99

401(k) Retirement Plan

The Company maintains a 401(k) retirement plan covering substantially all employees, which permits participants to defer up to the maximum allowable amount of their eligible compensation as determined by the Internal Revenue Service. This deferred compensation, together with Company matching contributions equal to 100% of employee deferrals up to 3.0% of eligible compensation and 50% of employee deferrals for the next 2.0% of eligible compensation, is fully vested and funded as of June 30, 2012. Costs related to the matching portion of the plan were approximately $30,000 and $21,000, respectively, for the three months ended June 30, 2012 and 2011 and approximately $57,000 and $41,000, respectively, for the six months ended June 30, 2012 and 2011.

XML

Mortgages Payable, Net

6 Months Ended

Jun. 30, 2012

Mortgages Payable, Net [Abstract]

Mortgages Payable, net

8. Mortgages Payable, net

Mortgages payable at June 30, 2012 and December 31, 2011 consist of the following (in thousands):

	Carrying Amount of Mortgage Notes					Contractual Interest Rate			Effective Interest Rate			Monthly Payment(1)		Maturity Date
Property Pledged as Collateral	June 30, 2012		December 31, 2011
Five Forks Place	$	4,975	$	5,067			5.50	%		5.50	%	$	39		2013
Grant Creek Town Center		15,520		15,694			5.75	%		5.75	%		105		2013
Park West Place (2)		55,800		55,800			2.75	%		3.91	%		182		2013
Excel Centre		12,408		12,532			6.08	%		6.08	%		85		2014
Merchant Central		4,514		4,560			5.94	%		6.75	%		30		2014
Edwards Theatres		12,017		12,174			6.74	%		5.50	%		95		2014
Gilroy Crossing		47,026		47,409			5.01	%		5.01	%		263		2014
The Promenade		50,534		51,359			4.80	%		4.80	%		344		2015
5000 South Hulen		13,767		13,876			5.60	%		6.90	%		83		2017
Lake Pleasant Pavilion		28,250		—			6.09	%		5.00	%		143		2017
Rite Aid — Vestavia Hills		1,264		1,341			7.25	%		7.25	%		21		2018
Lowe’s, Shippensburg		13,678		13,840			7.20	%		7.20	%		110		2031
Northside Mall ( 3 )		12,000		12,000			0.19	%		1.19	%		2		2035
	$	271,753	$	245,652
Less: premium (discount) ( 4 )		732		(691	)
Mortgage notes payable, net	$	272,485	$	244,961

⁽¹⁾ This represents the monthly payment of principal and interest at June 30, 2012.

⁽²⁾ The loan bears interest at a rate of LIBOR plus 2.50% (interest rate of 2.75% at June 30, 2012). In December 2010, the Company entered into interest rate swap contracts, which fix LIBOR at an average of 1.41% for the term of the loan.

^{(3 )} The debt represents redevelopment revenue bonds to be used for the redevelopment of this property, which mature in November 2035. Interest is reset weekly and determined by the bond remarketing agent based on the market value of the bonds (interest rate of 0.19% at June 30, 2012). The interest rate on the bonds is currently priced off of the Securities Industry and Financial Markets Association, or SIFMA, index but could change based on the credit of the bonds. The bonds are secured by a $12.1 million letter of credit issued by the Company from the Company’s unsecured revolving credit facility. An underwriter’s discount related to the original issuance of the bonds with a remaining balance of $112,000 at June 30, 2012 will be amortized as additional interest expense through November 2035.

^{(4 )} Represents (a) the fair value adjustment on assumed debt on acquired properties at the time of acquisition to account for below or above market interest rates and (b) underwriter’s discount for the issuance of redevelopment bonds.

Total interest cost capitalized for the three and six months ended June 30, 2012 was $29,000 and $139,000, respectively. Total interest cost capitalized for the three and six months ended June 30, 2011 was $128,000 and $148,000, respectively.

The Company’s mortgage debt maturities at June 30, 2012 for each of the next five years and thereafter are as follows (in thousands):

Year Ending December 31,	Amount
2012 (remaining six months)	$	2,053
2013		80,420
2014		76,834
2015		47,375
2016		1,335
Thereafter		63,736
	$	271,753

XML

Derivatives and Hedging Activities (Details Textual) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2012 Interest rate swaps [Member]	Dec. 31, 2011 Interest rate swaps [Member]	Dec. 31, 2010 Interest rate swaps [Member] Derivatives
Derivative [Line Items]
Number of derivative instruments					2
Notional value of fixed interest rate swaps					$ 55,800,000
Weighted average interest rate					1.41%
Derivatives and Hedging Activities (Textual) [Abstract]
Additional reclassification from other comprehensive income within next twelve months	607,000	607,000
Earnings attributable to hedge ineffectiveness	0	0
Fair value of derivatives in net liability position	$ 911,000	$ 911,000	$ (857,000)	$ (965,000)

XML

Variable Interest Entities

6 Months Ended

Jun. 30, 2012

Variable Interest Entities [Abstract]

Variable Interest Entities

6. Variable Interest Entities

Consolidated Variable Interest Entities

Included within the consolidated financial statement is the 50% owned joint venture with AB Dothan, LLC, that is deemed a VIE, and for which the Company is the primary beneficiary as it has the power to direct activities that most significantly impact the economic performance of the VIE. The joint venture’s activities principally consist of owning and operating a neighborhood retail center with 171,670 square feet of gross leasable area located in Dothan, Alabama.

As of June 30, 2012 and December 31, 2011, total carrying amount of assets was approximately $16.2 million and $16.5 million, respectively, which includes approximately $13.7 million and $14.0 million, respectively, of real estate assets. As of June 30, 2012 and December 31, 2011, the total carrying amount of liabilities was approximately $14.5 million and $14.6 million, respectively.

Unconsolidated Variable Interest Entities

On December 9, 2010, the Company loaned $2.0 million to an unaffiliated borrower which has been identified as a VIE. In June 2012, the counterparty repaid the loan in full. The Company did not consolidate the VIE because it did not have the ability to control the activities that most significantly impacted the VIE’s economic performance. See Note 7 for an additional description of the nature, purposes and activities of the Company’s VIE and interests therein.

XML

Mortgage and Loan Receivable

6 Months Ended

Jun. 30, 2012

Mortgage and Loan Receivable [Abstract]

Mortgage and Loan Receivable

7. Mortgage and Loan Receivable

On December 9, 2010, the Company loaned $2.0 million to an unaffiliated borrower. The proceeds were used to facilitate the land acquisition and development of a shopping center anchored by Publix in Brandon, Florida. The loan was secured with a second mortgage trust deed on the property and was personally guaranteed by members of the borrower. In June 2012, the mortgage loan receivable was repaid in full, including interest accrued through the date of repayment.

In connection with the loan, the Company also entered into a purchase and sale agreement to acquire this property upon completion of development, at the Company’s election. In June 2012, the Company executed an amendment whereby the closing date for the potential acquisition was extended through December 31, 2012.

In June 2012, the Company extended a note receivable in the amount of $750,000 to a third party . The note receivable bears interest at 10.0% per annum, with the principal and accrued interest due upon maturity in June 2014. The loan is recourse to the borrower and secured by the third party’s profits interests in one of the Company’s consolidated properties. The balance is included in Other Assets on the accompanying condensed consolidated balance sheets.

XML

Notes Payable

6 Months Ended

Jun. 30, 2012

Notes Payable [Abstract]

Notes Payable

9. Notes Payable

The Company’s unsecured revolving credit facility has a borrowing capacity of $200.0 million, which may be increased from time to time up to an additional $200.0 million for a total borrowing capacity of $400.0 million, subject to receipt of lender commitments and other conditions precedent. The maturity date is July 7, 2014 and may be extended for one additional year at the Company’s option (extended subsequent to June 30, 2012 – see below). The Company, among other things, is subject to covenants requiring the maintenance of (1) maximum leverage ratios on unsecured, secured and overall debt and (2) minimum fixed coverage ratios. On January 23, 2012, the Company entered into a fourth amendment to its credit agreement, which increased the maximum secured indebtedness ratio to 40% of total asset value (as defined in the credit agreement) and modified certain other terms and conditions of the unsecured revolving credit facility. At June 30, 2012, the Company believes that it was in compliance with all the covenants in the credit agreement.

The unsecured revolving credit facility bears interest at the rate of LIBOR plus a margin of 220 basis points to 300 basis points, depending on the Company’s leverage ratio. The Company will also pay a 0.35% fee for any unused portion of the unsecured revolving credit facility. Borrowings from the unsecured revolving credit facility were $0 at June 30, 2012. The Company issued a $12.1 million letter of credit from the unsecured revolving credit facility, which secures an outstanding $12.0 million bond payable for the Northside Mall. This bond is included with the mortgages payable on the Company’s condensed consolidated balance sheet. At June 30, 2012, there was approximately $134.5 million available for borrowing under the unsecured revolving credit facility.

On July 20, 2012, the Company entered into an amended and restated credit agreement, which provided an increase in borrowings available under the credit facility from $200.0 million to $250.0 million, decreased the fees pertaining to the unused capacity and the applicable interest rate and extended the maturity date. The amended maturity date is July 19, 2016, which may be extended for one additional year at the Company’s option. In addition, the amendment improved certain other terms and conditions of the unsecured revolving credit facility.

The Company has entered into a construction loan agreement in connection with construction activities at one of its development properties. The construction loan provides for borrowings of up to $18.0 million, which bears interest at the rate of LIBOR plus a margin of 220 basis points to 300 basis points, depending on the Company’s leverage ratio, with a maturity date of March 1, 2013. The maturity date may be extended for each of two one-year extension periods, at the Company’s option and upon the satisfaction of conditions precedent. As of June 30, 2012, there were $13.6 million in outstanding borrowings on the construction loan at an interest rate of 2.45%.

XML

Equity (Details Textual) (USD $)	3 Months Ended			6 Months Ended			3 Months Ended	6 Months Ended			6 Months Ended			12 Months Ended	6 Months Ended	12 Months Ended		6 Months Ended		1 Months Ended	6 Months Ended
	Jun. 30, 2012	Mar. 31, 2012	Jun. 30, 2011	Jun. 30, 2012 Person Property	Jun. 30, 2011	Dec. 31, 2011	Jun. 30, 2012 Board of Directors [Member]	Jun. 30, 2012 Common Stock [Member]	Jun. 30, 2011 Common Stock [Member]	Jun. 30, 2012 Stock Compensation Plan [Member]	Jun. 30, 2012 Hundred Percentage Employee Deferrals [Member]	Jun. 30, 2012 Fifty Percentage Employee Deferrals [Member]	Jun. 30, 2012 Series A Preferred Stock [Member]	Dec. 31, 2011 Series A Preferred Stock [Member]	Jun. 30, 2012 Series B Preferred Stock [Member]	Dec. 31, 2011 Series B Preferred Stock [Member]	Jan. 31, 2012 Series B Preferred Stock [Member]	Jun. 30, 2012 Series B Preferred Stock [Member] Overallotment Option [Member]	Jun. 30, 2012 Partnership Interest [Member]	Mar. 31, 2011 Edwards Theatres [Member]	Jun. 30, 2012 Edwards Theatres [Member]
Equity [Line Items]
Initial public offering shares									14,375,000									480,000
Exchange of common stock and partnership interests																			641,062
Forfeitures of restricted common stock awards, shares								3,000
Repurchase of common stock, shares								674,866
Number of OP Units issued in connection with acquisition																				764,343	299,927
Net proceeds from sale of preferred stock				$ 89,102,000	$ 48,425,000								$ 47,700,000		$ 88,720,000
Annual dividend on preferred stock													$ 1.75		$ 2.03125
Preferred stock dividend rate percentage				7.00%									7.00%	7.00%	8.125%	8.125%
Preferred stock, liquidation preference per share													$ 25.00	$ 25.00	$ 25.00	$ 25.00	$ 25.00
Series B preferred stock redeemable price on and after January 31, 2017															$ 25.00
Number of days to redeem the Series B preferred stock, in whole or in part															120
Common stock available for issuance										249,958
Compensation expense recognized	804,000		1,200,000	1,600,000	1,800,000
Company matching contributions Percentage											100.00%	50.00%
Eligible Compensation Percentage											3.00%	2.00%
Equity (Textual) [Abstract]
Issuance of restricted common stock awards, shares				1,100,042				18,356	929,348
Preferred stock, shares outstanding	2,000,000			2,000,000									2,000,000	2,000,000	3,680,000	0
Preferred stock, shares issued													2,000,000	2,000,000	3,680,000	0	3,680,000
Preferred stock conversion rate				1.6667
Preferred stock conversion price per share, initial				$ 15.00
Closing price of common stock as minimum percentage of conversion price for conversion of preferred stock				140.00%
Minimum trading days for calculating closing price of common stock				20 days
Number of consecutive trading days				30 days
Stock repurchase program, authorized amount				30,000,000
Repurchase of common stock				(6,700,000)
Weighted average purchase price per share				$ 9.99
Cash payments for Number of OP Units issued	1,900,000			1,900,000
Maximum number of shares issued under equity incentive award plan	1,350,000			1,350,000
Vesting percentage				25.00%
Estimated forfeitures				0
Unrecognized compensation expense	5,000,000			5,000,000		6,400,000
Unrecognized compensation expense, weighted-average				2 years 6 months
Common Stock Offering Price		50,000,000		0
Costs related to the matching portion	30,000		21,000	57,000	41,000
Issuance of additional shares of common stock	193,510			193,510
Number of Shared issued to Equity Distribution Agreements				254,100
Net proceeds of Equity Distribution Agreements				$ 3,000,000
Average stock issuance of Equity Distribution Agreements				$ 12.17
Formation transaction interest in properties				4
Number of sales agents in 2012 Equity Distribution agreement				4
Equity Incentive Award Plan shares vesting period				4 years			1 year

XML

Income Taxes (Details)	6 Months Ended
	Jun. 30, 2012
Income Taxes (Textual) [Abstract]
Percentage of REIT taxable income distributed to stockholders	90.00%

XML

Equity (Details 2) (USD $)	6 Months Ended
	Jun. 30, 2012
Non-Vested restricted common stock activity
Number of Unvested Shares of Restricted Common Stock, Balance Beginning	1,018,220
Number of Unvested Shares of Restricted Common Stock, Granted	18,356
Number of Unvested Shares of Restricted Common Stock, Forfeitures
Number of Unvested Shares of Restricted Common Stock, Vested	(117,936)
Number of Unvested Shares of Restricted Common Stock, Balance Ending	918,640
Number of Unvested Shares of Restricted Common Stock Expected to vest	918,640
Weighted Average Grant Date Fair Value, Balance Beginning	$ 10.69
Weighted Average Grant Date Fair Value, Granted	$ 12.11
Weighted Average Grant Date Fair Value, Forfeitures
Weighted Average Grant Date Fair Value, Vested	$ 12.18
Weighted Average Grant Date Fair Value, Balance Ending	$ 9.99
Weighted Average Grant Date Fair Value, Expected to Vest	$ 9.99

XML

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value of Financial Instruments [Abstract]

Schedule of Financial Assets And Liabilities Measured at Fair Value on a Recurring Basis

	Balance at June 30, 2012			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Fair value measurements on a recurring basis:
Interest rate swaps (see Note 11)	$	(857	)	$	—	$	(857	)	$	—
Contingent consideration related to business combinations (1)		772			—		—			772
Derivative instrument related to business combinations (see Note 11)( 2 )		(1,345	)		—		—			(1,345	)
Investment in equity securities (see Note 2)		6,461			6,461		—			—

	Balance at December 31, 2011			Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Fair value measurements on a recurring basis:
Interest rate swaps (see Note 11)	$	(965	)	$	—	$	(965	)	$	—
Contingent consideration related to business combinations ( 3 )		(1,613	)		—		—			(1,613	)
Derivative instrument related to business combinations (see Note 11)( 2 )		(3,050	)		—		—			(3,050	)
Investment in equity securities (see Note 2)		9,164			9,164		—			—

⁽¹⁾ Amount reflects the fair value of funds expected to be received pursuant to master lease agreements executed in connection with the Promenade Corporate Center acquisition. The Company has estimated the fair value of the asset based on its expectations of the probability of leasing or releasing spaces within the term of the master lease agreements and corresponding estimates for time required to lease, lease rates and funds required for tenant improvements and lease commissions. This amount has been included in other assets in the accompanying consolidated balance sheets, with subsequent changes in the fair value of the asset recorded as a gain (loss) in earnings in the period in which the change occurs.

^{(2 )} Amount reflects the fair value of a provision within a purchase agreement that provides a guaranteed redemption value for OP units provided to the sellers of a property acquired in March 2011 (see Note 3 for additional details). The Company has estimated the fair value of the embedded derivative instrument using a Monte Carlo valuation model based on the historical volatility and closing price of the Company’s common stock and a risk-free interest rate. This amount is included in accounts payable and other liabilities in the accompanying consolidated balance sheets, with changes in the fair value of the embedded derivative recorded as gain (loss) on changes in fair value of financial instruments and gain on OP unit redemption in the consolidated statements of operations.

During the six months ended June 30, 2012, 299,927 OP units were tendered to the Company for redemption, resulting in the issuance of 193,510 shares of common stock and cash payments totaling approximately $1.9 million. The Company has recognized the acquisition of non-controlling interests based on the fair value of shares issuable in connection with the one-for-one redemption right available to all holders of OP units. The Company recognized gains of approximately $175,000 and $349,000 in the three and six months ended June 30, 2012, respectively, as a result of the excess of the fair value of the guarantee over the fair value of the consideration required to settle. In total, the Company recognized an increase in additional paid in capital and common stock, par value, of approximately $2.3 million. The Company also recognized additional gains of $415,000 and $702,000 in the three and six months ended June 30, 2012, respectively, for changes in fair value of financial instruments and gain on OP unit redemption in the consolidated statements of operations as a result of updated valuations of the remaining provision.

^{(3 )} Additional consideration was due the prior owners of two properties acquired in 2010 based on their ability to lease-up vacant space or sell a land parcel through a defined period following the acquisition date. Additional consideration in the amount of $391,000 relating to one of the two properties was paid in 2011. The remaining contingent consideration included in the balance of accounts payable and other liabilities in the accompanying consolidated balance sheet at December 31, 2011 represents approximately $1.6 million in earn-outs paid to a prior owner in January 2012.

Statement of Reconciliation of Financial Instruments Remeasured on a Recurring Basis

	Contingent Consideration Related to Business Combinations			Derivative Instruments Related to Business Combinations
Beginning balance, January 1, 2012	$	(1,613	)	$	(3,050	)
Total gains:
Included in earnings (1)		—			1,051
Purchases, issuances, or settlements (1)		2,385			654
Ending balance, June 30, 2012	$	772		$	(1,345	)

⁽¹⁾ The change of $2.4 million for contingent consideration related to business combinations during the six months ended June 30, 2012 is comprised of (1) a decrease in the liability balance due to the payment of approximately $1.6 million in earn-outs in January 2012 and (2) the recognition of a master lease asset of $772,000 related to the acquisition of the Promenade Corporate Center property. The change of $1.7 million for derivative instruments related to business combinations during the six months ended June 30, 2012 is comprised of (1) a decrease of $1.0 million due to a redemption of OP units related to the acquisition of the Edwards Theatres property (which includes a gain of $349,000 that is included in earnings) and (2) a gain of $702,000 included in earnings related to the change in the fair value of the derivative liability.

	Contingent Consideration Related to Business Combinations			Derivative Instruments Related to Business Combinations
Beginning balance, January 1, 2011	$	(2,438	)	$	—
Total gains:
Included in earnings (1)		328			512
Purchases, issuances, or settlements (1)		—			(4,204	)
Ending balance, June 30, 2011	$	(2,110	)	$	(3,692	)

⁽¹⁾ The change of $328,000 for contingent consideration related to business combinations during the six months ended June 30, 2011 is due to changes in the Company’s initial estimates of the fair value of contingent consideration as a result of a fewer number of executed leases. The change of $3.7 million for derivative instruments related to business combinations during the six months ended June 30, 2011 is comprised of (1) the recognition of a liability in the amount of $4.2 million in connection with the purchase of the Edwards Theatres property in March 2011 and (2) a gain of $512,000 included in earnings related to the change in the fair value of the derivative liability.

Quantitative Disclosure of Significant Unobservable Inputs Relating to Financial Assets and Liabilities measured on a Recurring Basis

	Fair Value at June 30, 2012		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Contingent consideration related to business combinations (1)	$	772	Cash flow	Tenant improvement allowance Lease commission TI construction period	$12.00/sf 6.0% 2 months
Derivative instrument related to business combinations (2)	$	1,345	Monte Carlo	Share volatility Expected term Risk free rate	46.0% 0.7 years 0.2%

⁽¹⁾ The significant unobservable inputs used in the fair value measurement of the master lease agreement asset are any estimated tenant improvement allowances, leasing commissions and the construction periods associated with projected new leasing. Significant increases (decreases) in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for market lease rates is accompanied by a directionally similar change in the assumption used for tenant improvement allowances and/or leasing commissions.

⁽²⁾ The significant unobservable inputs used in the fair value measurement of the redemption provision are share volatility, risk-free rate and expected term. Significant increases (decreases) in any of these inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the share volatility is reflective of changes in the underlying fair value of the Company’s common stock and those of peer companies utilized in the analysis (Level 1 of the fair value hierarchy), which could significantly affect the estimated fair value of the underlying derivative instrument.

Fair values of certain additional financial assets and liabilities

	June 30, 2012				December 31, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Note receivable (Other Assets)	$	750	$	750	$	—	$	—
Mortgage loan receivable		—		—		2,000		2,000
Financial liabilities:
Mortgage notes payable		272,485		277,736		244,961		248,597
Notes payable		13,629		13,617		21,000		20,661

XML

Mortgage and Loan Receivable (Details) (USD $)	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011	Dec. 09, 2010
Mortgage and Loan Receivable (Textual) [Abstract]
Mortgage and loan receivable		$ 2,000,000	$ 2,000,000
Amount of note receivable to an affiliate	$ 750,000
Interest rate for the note receivable	10.00%
Maturity date	June 2014

XML

Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

14. Income Taxes

The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). To continue to qualify as a REIT, the Company must meet a number of organizational and operational requirements, including the requirement that it distribute currently at least 90% of its REIT taxable income to its stockholders. It is the Company’s intention to comply with these requirements and maintain the Company’s REIT status. As a REIT, the Company generally will not be subject to corporate federal, state or local income taxes on income it distributes currently (in accordance with the Code and applicable regulations) to its stockholders. If the Company fails to qualify as a REIT in any taxable year, then it will be subject to federal, state and local income taxes at regular corporate rates and may not be able to qualify as a REIT for subsequent tax years. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income, properties and operations and to federal income and excise taxes on its taxable income not distributed in the amounts and in the time frames prescribed by the Code and applicable regulations thereunder.

XML

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Schedule of Estimated Lives of Assets

Building and improvements	15 to 40 years
Tenant improvements	Shorter of the useful lives or the terms of the related leases

Investments in Equity Securities

	June 30, 2012		December 31, 2011
Equity securities, initial cost basis	$	6,266	$	9,072
Gross unrealized gains		195		138
Gross unrealized losses		—		(46	)
Equity securities, fair value (1)	$	6,461	$	9,164

⁽¹⁾ Determination of fair value is classified as Level 1 in the fair value hierarchy based on the use of quoted prices in active markets (see section entitled “Fair Value of Financial Instruments” that follows herein).

XML

Lease Intangible Liabilities, Net (Details Textual) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Lease Intangible Liabilities, Net (Textual) [Abstract]
Accumulated amortization of lease intangible liabilities	$ 3,700,000		$ 3,700,000		$ 2,500,000
Weighted average remaining life of lease intangible liabilities (in months)			95 months		106 months
Amortization of Lease Intangible Liabilities	$ 767,000	$ 425,000	$ 1,700,000	$ 718,000

XML

Acquisitions (Details 1) (USD $) In Thousands, unless otherwise specified	6 Months Ended		3 Months Ended			6 Months Ended	12 Months Ended	3 Months Ended	6 Months Ended						6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012 Below Market Leases [Member]	Jun. 30, 2012 Above Market Leases [Member]	Jun. 30, 2012 In-Place Leases [Member]	Jun. 30, 2012 In-Place Leases [Member]	Dec. 31, 2011 In-Place Leases [Member]	Jun. 30, 2012 Debt (Premium)/Discount [Member]	Jun. 30, 2012 Promenade Corporate Center [Member]	Jun. 30, 2012 EastChase Market Center [Member]	Jun. 30, 2012 La Costa Town Center [Member]	Jun. 30, 2012 Lake Pleasant Pavilion [Member]	Jun. 30, 2011 Edwards Theatres [Member]	Jun. 30, 2011 Rite Aid [Member]	Jun. 30, 2011 Gilroy Crossing [Member]
Allocation of purchase price
Building	$ 107,213	$ 54,964							$ 44,465	$ 19,567	$ 15,054	$ 28,127	$ 13,600	$ 1,474	$ 39,890
Land	27,033	33,353							4,477	4,215	8,383	9,958	10,283	550	22,520
Above Market Leases	4,084	620							781	360	86	2,857			620
Below Market Leases	(4,298)	(3,443)							(749)	(1,296)	(2,069)	(184)	(405)		(3,038)
In-Place Leases	9,541	11,898							3,279	1,804	2,046	2,412	3,109	347	8,442
Debt (Premium)/Discount	(1,420)	(437)										(1,420)	(437)
Purchase Price	$ 142,153	$ 96,955							$ 52,253	$ 24,650	$ 23,500	$ 41,750	$ 26,150	$ 2,371	$ 68,434
Remaining useful life(3)			69 months	60 months	49 months	75 months	83 months	65 months

XML

Condensed Consolidated Statement Of Equity (Unaudited) (USD $) In Thousands, except Share data	Total	Series A Preferred Stock	Series B Preferred Stock	Common Stock	Additional Paid-in Capital	Cumulative Deficit	Accumulated Other Comprehensive Loss	Total Stockholders' Equity	Non-Controlling Interests [Member]
Beginning Balance at Dec. 31, 2010	$ 196,610			$ 156	$ 191,453	$ (3,725)	$ (373)	$ 187,511	$ 9,099
Beginning Balance, shares at Dec. 31, 2010				15,663,331
Net proceeds from sale of preferred stock	48,425	47,721						47,721
Net proceeds from sale of common stock	149,958			144	149,814			149,958
Net proceeds from sale of common stock, shares				14,375,000
Issuance of restricted common stock awards				9	(9)
Issuance of restricted common stock awards, shares				929,348
Noncash amortization of share-based compensation	1,777				1,777			1,777
Common stock dividends	(6,965)				(6,965)			(6,965)
Issuance of non-controlling interests	9,035								9,035
Distributions to non-controlling interests	(324)								(324)
Net income	1,965					1,907		1,907	58
Preferred stock dividends	(1,478)				(1,478)			(1,478)
Change in unrealized gain on investment in equity securities
Change in unrealized loss on interest rate swaps	220						(375)	(375)	(43)
Adjustment for non-controlling interest					361			361	(361)
Ending Balance at Jun. 30, 2011	397,881	47,721		309	334,953	(1,818)	(748)	380,417	17,464
Ending Balance, shares at Jun. 30, 2011				30,967,679
Beginning Balance at Dec. 31, 2011	380,986	47,703		302	319,875	(3,277)	(811)	363,792	17,194
Beginning Balance, shares at Dec. 31, 2011				30,289,813
Net proceeds from sale of preferred stock	89,102		88,720					88,720
Issuance of restricted common stock awards, shares	1,100,042			18,356
Redemption of OP units for common stock and cash	(1,258)			2	2,285			2,287	(3,545)
Redemption of OP Units for Common Stock Shares				193,510
Issuance of common stock for acquisition Shares				3,230,769
Issuance of common stock for acquisition Value	39,108			32	39,076			39,108
Noncash amortization of share-based compensation	1,589				1,589			1,589
Common stock dividends	(10,949)				(10,949)			(10,949)
Distributions to non-controlling interests	(598)								(598)
Net income	790					806		806	(16)
Preferred stock dividends	(4,865)				(4,865)			(4,865)
Change in unrealized gain on investment in equity securities	103						99	99	4
Change in unrealized loss on interest rate swaps	108						104	104	4
Adjustment for non-controlling interest					(626)			(626)	626
Ending Balance at Jun. 30, 2012	$ 493,734	$ 47,703	$ 88,720	$ 336	$ 346,385	$ (2,471)	$ (608)	$ 480,065	$ 13,669
Ending Balance, shares at Jun. 30, 2012				33,732,448

XML

Acquisitions

6 Months Ended

Jun. 30, 2012

Acquisitions [Abstract]

Acquisitions

3. Acquisitions:

The Company completed four acquisitions in the six months ended June 30, 2012 (in thousands):

Property	Date Acquired	Location	Square Footage		Debt Assumed
Promenade Corporate Center	January 23, 2012	Scottsdale, AZ		256,176	$	—
EastChase Market Center	February 17, 2012	Montgomery, AL		181,431		—
La Costa Town Center	February 29, 2012	Carlsbad, CA		121,429		—
Lake Pleasant Pavilion	May 16, 2012	Peoria, AZ		178,376		28,250

The following summary provides an allocation of purchase price for the above acquisitions (in thousands).

	Building		Land		Above Market Leases		Below Market Leases			In-Place Leases		Debt (Premium)/ Discount			Purchase Price
Promenade Corporate Center (1)	$	44,465	$	4,477	$	781	$	(749	)	$	3,279	$	—		$	52,253
EastChase Market Center (2)		19,567		4,215		360		(1,296	)		1,804		—			24,650
La Costa Town Center (2)		15,054		8,383		86		(2,069	)		2,046		—			23,500
Lake Pleasant Pavilion (2)		28,127		9,958		2,857		(184	)		2,412		(1,420	)		41,750
Total	$	107,213	$	27,033	$	4,084	$	(4,298	)	$	9,541	$	(1,420	)	$	142,153
Remaining useful life (3)						60		69			49		65

⁽¹⁾ The purchase price of $52.3 million noted above reflects $13.9 million in cash paid and the issuance of 3,230,769 shares of common stock with a fair value of approximately $39.1 million based on a closing price of $12.11 per share on the date of acquisition. The purchase price is net of an asset recorded by the Company in the amount of $772,000 (included in other assets on the accompanying consolidated balance sheets) to reflect the estimated fair value of funds expected to be received from escrow in connection with master lease agreements executed at the time of acquisition. Monthly master lease payments commence upon the expiration of two existing leases in June 2012 and February 2013 (with terms through May 2013 and January 2015, respectively) unless the related spaces are released with base rents equaling or exceeding the master lease payments. In addition, the seller has agreed to reimburse the Company for any expenditures resulting from tenant improvements or leasing commissions related to the spaces to the extent that funds remain available pertaining to the master lease agreements. See Note 16 for a discussion of changes in the fair value of this asset after the initial acquisition.

⁽²⁾ The purchase price allocations for the acquisitions of the EastChase Market Center, La Costa Town Center and Lake Pleasant Pavilion properties are preliminary as of June 30, 2012 and subject to adjustment within the measurement period in accordance with ASC Topic 805, Business Combinations.

⁽³⁾ Weighted-average remaining useful life (months) for recorded intangible assets and liabilities as of the date of acquisition.

The following summary provides an allocation of purchase price for property acquisitions that were completed in the six months ended June 30, 2011 (in thousands):

	Building		Land		Above Market Leases		Below Market Leases			In-Place Leases		Debt (Premium)/ Discount			Purchase Price
Edwards Theatres (1)	$	13,600	$	10,283	$	—	$	(405	)	$	3,109	$	(437	)	$	26,150
Rite Aid (2)		1,474		550		—		—			347		—			2,371
Gilroy Crossing		39,890		22,520		620		(3,038	)		8,442		—			68,434
Total	$	54,964	$	33,353	$	620	$	(3,443	)	$	11,898	$	(437	)	$	96,955

⁽¹⁾ In addition to the cash consideration paid in connection with the acquisition, 764,343 OP units were issued with a fair value of $11.82 per unit at the time of issuance. These OP units can be redeemed beginning in March 2012 for cash or, at the Company’s election, for shares of the Company’s common stock. If the redemption takes place during the period from March 2012 through March 2013 and the price of shares of the Company’s common stock is less than $14.00 per share at the date of redemption, the Company must issue additional shares or cash for the difference. The Company originally recorded a liability of approximately $4.2 million within accounts payable and other liabilities on the accompanying condensed consolidated balance sheets to reflect the estimated fair value of this redemption provision (see footnote 16 for a discussion of changes in the fair value of this liability and OP unit redemptions occurring after the initial acquisition).

⁽²⁾ Rite Aid is an outparcel to Vestavia Hills City Center. A gain of $937,000 was recognized on the acquisition of this property, which represented the difference between the fair value at the date of closing and the price paid.

The Company recorded revenues and net income for the three months ended June 30, 2012 of $3.1 million and $87,000, respectively, and for the six months ended June 30, 2012 of $4.7 million and $260,000, respectively, related to the 2012 acquisitions. The Company recorded revenues and a net loss for the three months ended June 30, 2011 of $2.4 million and $53,000 respectively, and for the six months ended June 30, 2011 of $4.9 million and $184,000, respectively, related to the 2011 acquisitions.

The following unaudited pro forma information for the three and six months ended June 30, 2012 and 2011 has been prepared to reflect the incremental effect of the properties acquired in 2012 and 2011 as if such acquisitions had occurred on January 1, 2011 and January 1, 2010, respectively (in thousands).

	Three Months Ended				Six Months Ended
	June 30, 2012		June 30, 2011		June 30, 2012		June 30, 2011
Revenues		21,432		16,346	$	42,747	$	32,629
Net income (1)		112		1,818		599		1,507

⁽¹⁾  Pro forma results for the six months ended June 30, 2012 were adjusted to exclude non-recurring acquisition costs of approximately $293,000 related to the 2012 acquisitions. The pro forma results for the six months ended June 30, 2011 were adjusted to include these costs. A portion of the 2012 acquisitions were funded by proceeds from the Series B preferred stock offering (discussed in Note 12 below). However, pro forma net income for the six months ended June 30, 2011 is not adjusted for this funding as the assumed Series B preferred stock quarterly dividends of approximately $1.9 million are not included in the determination of net income (included only as a reduction of net income (loss) attributable to the common stockholders).

XML

Derivatives and Hedging Activities (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Outstanding interest rate swaps and other derivative instruments
Fair Value	$ 2,202	$ 4,015
Interest rate swaps [Member]
Outstanding interest rate swaps and other derivative instruments
Fair Value	857	965
Current Notional Amount	55,800
Expiration Date	December 2013
Other derivatives [Member]
Outstanding interest rate swaps and other derivative instruments
Fair Value	$ 1,345	$ 3,050
Expiration Date	March 2013
Maximum [Member] | Interest rate swaps [Member]
Outstanding interest rate swaps and other derivative instruments
Strike Rate	1.48%
Minimum [Member] | Interest rate swaps [Member]
Outstanding interest rate swaps and other derivative instruments
Strike Rate	1.34%

XML

Fair Value of Financial Instruments (Details 1) (Fair Value Inputs Level3 [Member], USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Contingent Consideration [Member]
Statement of Reconciliation of Financial Instruments Remeasured on a Recurring Basis
Beginning balance	$ (1,613)	$ (2,438)
Total gains included in earnings		328
Purchases, issuances, or settlements	2,385
Ending balance	772	(2,110)
Derivative Instruments [Member]
Statement of Reconciliation of Financial Instruments Remeasured on a Recurring Basis
Beginning balance	(3,050)
Total gains included in earnings	1,051	512
Purchases, issuances, or settlements	654	(4,204)
Ending balance	$ (1,345)	$ (3,692)

XML

Acquisitions (Tables)

6 Months Ended

Jun. 30, 2012

Acquisitions [Abstract]

Schedule of Acquisitions

Property	Date Acquired	Location	Square Footage		Debt Assumed
Promenade Corporate Center	January 23, 2012	Scottsdale, AZ		256,176	$	—
EastChase Market Center	February 17, 2012	Montgomery, AL		181,431		—
La Costa Town Center	February 29, 2012	Carlsbad, CA		121,429		—
Lake Pleasant Pavilion	May 16, 2012	Peoria, AZ		178,376		28,250

Allocation of purchase price

	Building		Land		Above Market Leases		Below Market Leases			In-Place Leases		Debt (Premium)/ Discount			Purchase Price
Promenade Corporate Center (1)	$	44,465	$	4,477	$	781	$	(749	)	$	3,279	$	—		$	52,253
EastChase Market Center (2)		19,567		4,215		360		(1,296	)		1,804		—			24,650
La Costa Town Center (2)		15,054		8,383		86		(2,069	)		2,046		—			23,500
Lake Pleasant Pavilion (2)		28,127		9,958		2,857		(184	)		2,412		(1,420	)		41,750
Total	$	107,213	$	27,033	$	4,084	$	(4,298	)	$	9,541	$	(1,420	)	$	142,153
Remaining useful life (3)						60		69			49		65

⁽¹⁾ The purchase price of $52.3 million noted above reflects $13.9 million in cash paid and the issuance of 3,230,769 shares of common stock with a fair value of approximately $39.1 million based on a closing price of $12.11 per share on the date of acquisition. The purchase price is net of an asset recorded by the Company in the amount of $772,000 (included in other assets on the accompanying consolidated balance sheets) to reflect the estimated fair value of funds expected to be received from escrow in connection with master lease agreements executed at the time of acquisition. Monthly master lease payments commence upon the expiration of two existing leases in June 2012 and February 2013 (with terms through May 2013 and January 2015, respectively) unless the related spaces are released with base rents equaling or exceeding the master lease payments. In addition, the seller has agreed to reimburse the Company for any expenditures resulting from tenant improvements or leasing commissions related to the spaces to the extent that funds remain available pertaining to the master lease agreements. See Note 16 for a discussion of changes in the fair value of this asset after the initial acquisition.

⁽²⁾ The purchase price allocations for the acquisitions of the EastChase Market Center, La Costa Town Center and Lake Pleasant Pavilion properties are preliminary as of June 30, 2012 and subject to adjustment within the measurement period in accordance with ASC Topic 805, Business Combinations.

⁽³⁾ Weighted-average remaining useful life (months) for recorded intangible assets and liabilities as of the date of acquisition.

	Building		Land		Above Market Leases		Below Market Leases			In-Place Leases		Debt (Premium)/ Discount			Purchase Price
Edwards Theatres (1)	$	13,600	$	10,283	$	—	$	(405	)	$	3,109	$	(437	)	$	26,150
Rite Aid (2)		1,474		550		—		—			347		—			2,371
Gilroy Crossing		39,890		22,520		620		(3,038	)		8,442		—			68,434
Total	$	54,964	$	33,353	$	620	$	(3,443	)	$	11,898	$	(437	)	$	96,955

⁽¹⁾ In addition to the cash consideration paid in connection with the acquisition, 764,343 OP units were issued with a fair value of $11.82 per unit at the time of issuance. These OP units can be redeemed beginning in March 2012 for cash or, at the Company’s election, for shares of the Company’s common stock. If the redemption takes place during the period from March 2012 through March 2013 and the price of shares of the Company’s common stock is less than $14.00 per share at the date of redemption, the Company must issue additional shares or cash for the difference. The Company originally recorded a liability of approximately $4.2 million within accounts payable and other liabilities on the accompanying condensed consolidated balance sheets to reflect the estimated fair value of this redemption provision (see footnote 16 for a discussion of changes in the fair value of this liability and OP unit redemptions occurring after the initial acquisition).

⁽²⁾ Rite Aid is an outparcel to Vestavia Hills City Center. A gain of $937,000 was recognized on the acquisition of this property, which represented the difference between the fair value at the date of closing and the price paid.

Pro forma information

	Three Months Ended				Six Months Ended
	June 30, 2012		June 30, 2011		June 30, 2012		June 30, 2011
Revenues		21,432		16,346	$	42,747	$	32,629
Net income (1)		112		1,818		599		1,507

⁽¹⁾  Pro forma results for the six months ended June 30, 2012 were adjusted to exclude non-recurring acquisition costs of approximately $293,000 related to the 2012 acquisitions. The pro forma results for the six months ended June 30, 2011 were adjusted to include these costs. A portion of the 2012 acquisitions were funded by proceeds from the Series B preferred stock offering (discussed in Note 12 below). However, pro forma net income for the six months ended June 30, 2011 is not adjusted for this funding as the assumed Series B preferred stock quarterly dividends of approximately $1.9 million are not included in the determination of net income (included only as a reduction of net income (loss) attributable to the common stockholders).

XML

Segment Disclosure (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Reconciliation of company and ETP's segment financial position activity
Assets	$ 820,544	$ 687,671
Office Properties [Member]
Reconciliation of company and ETP's segment financial position activity
Assets	67,758	15,562
Retail Properties [Member]
Reconciliation of company and ETP's segment financial position activity
Assets	752,786	672,109
Total Reportable Segments & Consolidated Assets [Member]
Reconciliation of company and ETP's segment financial position activity
Assets	$ 820,544	$ 687,671

XML

Summary of Significant Accounting Policies (Details 1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Investments in Equity Securities
Equity securities, initial cost basis	$ 6,266	$ 9,072
Gross unrealized gains	195	138
Gross unrealized losses		(46)
Equity securities, fair value	$ 6,461	$ 9,164

XML

Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions

13. Related Party Transactions

Subsequent to the Offering, many of the employees of Excel Realty Holdings, LLC (“ERH”) became employees of the Company. ERH reimburses the Company for estimated time the Company employees spend on ERH related matters. In the three months ended June 30, 2012 and 2011, approximately $79,000 and $57,000, respectively, was reimbursed to the Company from ERH and included in other income in the consolidated statements of operations. In the six months ended June 30, 2012 and 2011, approximately $148,000 and $106,000, respectively, was reimbursed to the Company from ERH and included in other income in the consolidated statements of operations.