[LETTERHEAD OF FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS]

                                  June 23, 2005

Dear Fellow Shareholders of Sizeler Property Investors, Inc.:

      While management continues to delay in setting a date for the Company's
annual shareholder meeting, we have finalized our proposals for the future of
the Company. As you are aware, our lack of faith in current management's ability
to run the Company has necessitated our nominating a slate of individuals for
election to the Company's Board. If elected, our three nominees will seek to
have these proposals adopted by the Company and we will vote our shares in their
favor.

      1.    LIQUIDATION - As directors we will propose, consistent with our
            fiduciary duty, that the Board promptly approve and submit to
            shareholders for their approval a plan of liquidation by which all
            of the Company's assets would be sold in an orderly process and the
            proceeds distributed to the shareholders.

      2.    NO AFFILIATED SALES - We would commit that no person or entity
            affiliated with any of our nominees would seek to acquire any
            Company asset. Moreover, no such person or entity would receive any
            brokerage commission or similar fee from any sale of a Company
            asset.

      3.    CORPORATE GOVERNANCE-NO MORE ENTRENCHMENT - We would propose to the
            Board of Directors the removal of all management entrenchment
            devices including the "poison pill" and the staggered board election
            process. We will further propose the elimination of all executive
            golden parachutes.

      4.    GENERAL AND ADMINISTRATIVE EXPENSE - A general and administrative
            expense that exceeds 17% of total Company revenue is simply
            outrageous and unjustified! We believe this waste depresses the
            stock price by as much as $1.85 per share. If elected, we will
            recommend the appointment of new officers to shepherd the Company
            through its liquidation and to reduce corporate expense. In so
            doing, we will propose the immediate elimination of all corporate
            waste including any nepotistic staffing and all use of private jets.
            We will seek an accounting by management of its past use of the
            Company's private jet and prompt reimbursement for any non-Company
            usage. We will commit that if any one of our nominees is appointed
            as an officer of the Company, such individual will receive no salary
            for such service.

      5.    DISTRIBUTIONS-We will propose that cash reserves resulting from
            recent and pending asset sales together with those from the
            Company's March 2005 below market dilutive stock sale, in excess of
            normal reserve requirements, be distributed to shareholders as soon
            as possible.



      When the proxy contest commences you will be inundated by misleading
claims, baseless allegations, and false contentions from management on every
conceivable topic ranging from the bright and rosy future they see for the
Company to non-existent business associations among the Company's concerned
shareholders. The purpose of this irrelevant dialogue will be to distract you
from the central issue in this contest, who is best capable of managing your
money -- you or them. If in view of their past historic underperformance, you
believe that you are better able to manage your money, then we expect that our
proposals will be well received by you.

      Once management has succeeded in solving the Nobel Prize winning problem
of setting the annual shareholder meeting date, we will be mailing to you our
definitive proxy materials to seek your vote. If you have questions, comments or
suggestions, please feel free to contact me personally at (516) 822-0022.

                                       On behalf of First Union Real Estate
                                       Equity and Mortgage Investments

                                       Very truly yours,

                                       Michael L. Ashner
                                       Chairman

                                   IMPORTANT

YOU ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT WHEN IT BECOMES AVAILABLE
AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION (the "SEC") BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. You will
be able to obtain the documents free of charge at the SEC's website,
www.sec.gov. You may also obtain information relevant to the solicitation of
proxies by First Union by contacting MacKenzie Partners, Inc. by mail at 105
Madison Avenue, New York, New York 10016 or by calling toll free at (800)
322-2885. First Union and Messrs. Ashner, Braverman and Zalkind may be deemed to
be participants in the solicitation of proxies from the shareholders of Sizeler
in connection with the annual meeting. Information about these participants is
set forth in the preliminary proxy statement filed by First Union with the SEC.
Investors may obtain additional information regarding the interests of such
participants by reading the definitive proxy statement when it becomes
available.