-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UHDU461lhyukfbu3YcVz3b5FrBuR5F6f3wNqyiz5sEFHnK9zy4vwTu/grXcgRcRr KyZHlYAxL5YMBW6lv/UW3A== 0001157523-07-010471.txt : 20071031 0001157523-07-010471.hdr.sgml : 20071030 20071031122907 ACCESSION NUMBER: 0001157523-07-010471 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20071029 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071031 DATE AS OF CHANGE: 20071031 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ACADIA REALTY TRUST CENTRAL INDEX KEY: 0000899629 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 232715194 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12002 FILM NUMBER: 071201844 BUSINESS ADDRESS: STREET 1: 20 SOUNDVIEW MARKETPLACE STREET 2: PO BOX 1679 CITY: PORT WASHINGTON STATE: NY ZIP: 11050 BUSINESS PHONE: 5167678830 MAIL ADDRESS: STREET 1: 600 THIRD AVE STREET 2: PO BOX 1679 CITY: KINGSTON STATE: PA ZIP: 18704 FORMER COMPANY: FORMER CONFORMED NAME: MARK CENTERS TRUST DATE OF NAME CHANGE: 19930329 8-K 1 a5532092.txt ACADIA REALTY TRUST 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): October 29, 2007 ACADIA REALTY TRUST (Exact name of registrant as specified in its charter) Maryland 1-12002 23-2715194 (State or other (Commission (I.R.S. Employer jurisdiction of incorporation) File Number) Identification No.) 1311 Mamaroneck Avenue Suite 260 White Plains, New York 10605 (Address of principal executive offices) (Zip Code) (914) 288-8100 (Registrant's telephone number, including area code) (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425 ) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition On October 29, 2007, Acadia Realty Trust (the "Company") issued a press release announcing its consolidated financial results for the quarter and nine months ended September 30, 2007. A copy of this press release is attached to this report on Form 8-K as Exhibit 99.1 and incorporated herein by reference. In addition, on October 29, 2007, the Company made available supplemental information concerning the ownership, operations and portfolio of the Company as of and for the quarter and nine months ended September 30, 2007. A copy of this supplemental information is attached to this report on Form 8-K as Exhibit 99.2 and incorporated herein by reference. The information included in this Item 2.02, including the information included in Exhibits 99.1and 99.2 attached hereto, is intended to be furnished solely pursuant to this Item 2.02, and is not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference into any filing under the Securities Act of 1933, as amended ("Securities Act") or the Exchange Act, or otherwise subject to the liabilities of Sections 11 and 12 (a) (2) of the Securities Act. Item 9.01. Financial Statements, Pro Forma Financial Information and Exhibits (a) Financial Statements Not Applicable (b) Pro Forma Financial Information Not Applicable (c) Shell Company Transactions Not Applicable (d) Exhibits Exhibit Number Description - -------------- -------------------------------- 99.1 Press release of the Company dated October 29, 2007. 99.2 Financial and Operating Reporting Supplement of the Company for the Quarter and Nine Months Ended September 30, 2007. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ACADIA REALTY TRUST (Registrant) Date: October 31, 2007 By: /s/ Michael Nelsen ------------------------------------ Name: Michael Nelsen Title: Sr. Vice President and Chief Financial Officer 2 EX-99.1 2 a5532092ex991.txt EXHIBIT 99.1 Exhibit 99.1 Acadia Realty Trust Reports Third Quarter 2007 Operating Results NEW YORK--(BUSINESS WIRE)--Oct. 29, 2007--Acadia Realty Trust (NYSE: AKR - "Acadia" or the "Company"), a real estate investment trust ("REIT"), today reported operating results for the quarter ended September 30, 2007. All per share amounts discussed below are on a fully diluted basis. In addition, all funds from operations ("FFO") amounts for 2007 are adjusted as discussed below. Third Quarter 2007 Highlights Earnings - 2007 third quarter FFO of $0.39 and EPS of $0.25 -- Funds from operations ("FFO") per share of $0.39 for the third quarter 2007 compared to $0.30 for third quarter 2006 and FFO of $1.00 for the nine months ended September 30, 2007 compared to $0.88 for the nine months ended September 30, 2006 -- Earnings per share ("EPS") for third quarter 2007 of $0.25 compared to $0.13 for third quarter 2006 and EPS of $0.55 for the nine months ended September 30, 2007 compared to $0.41 for the nine months ended September 30, 2006 Retail portfolio performance -- For the third quarter, 2007 same store net operating income for the portfolio increased $0.3 million, or 2.2% compared to third quarter 2006 -- September 30, 2007 occupancy at 93.8% representing an increase of 60 basis points from second quarter 2007 Continued progress on external growth initiatives Fund III investment activity commences with agreements to purchase two properties: -- Sheepshead Bay in Brooklyn, New York -- Westport, Connecticut Third Quarter Operating Results For the quarter ended September 30, 2007, FFO, an accepted measure of REIT performance, was $13.1 million, or $0.39 per share, compared to $10.0 million, or $0.30 per share for the quarter ended September 30, 2006. FFO for 2007 is adjusted to include the extraordinary gain from the Company's RCP investments as discussed in Note 4 to the Financial Highlights included herein. Driving the quarterly growth were increases in revenues earned through the Company's investment fund platform in 2007. These increases were primarily from: -- Promote revenue received from Fund I -- Transactional and redevelopment-based fee revenues from Fund II -- Asset-based fee revenues from Fund III For the nine months ended September 30, 2007, FFO was $34.1 million or $1.00 per share compared to $29.9 million, or $0.88 per share for the nine months ended September 30, 2006. In addition to the increased revenues detailed above, the year-to-date increase also includes co-investment income from Acadia's RCP Venture investment in Albertson's received in the first quarter of 2007. EPS was $0.25 for the third quarter 2007 compared to $0.13 for the third quarter 2006 and $0.55 for the nine months ended September 30, 2007 compared to $0.41 for the nine months ended September 30, 2006. The increases in 2007 EPS were primarily attributable to the factors discussed above. Retail Portfolio Performance (includes pro-rata share of joint venture operating properties) Acadia's portfolio occupancy was 93.8% for the quarter ended September 30, 2007. This represents an increase of 60 basis points from 93.2% occupancy at June 30, 2007. For the quarter ended September 30, 2007, same store net operating income ("NOI") increased $0.3 million, or 2.2% from third quarter 2006. This was primarily due to retenanting activity at the Bloomfield Shopping Center with a Circuit City, for which rent commenced during September 2007. For the nine months ended September 30, 2007, NOI decreased approximately $0.2 million, or 0.6%, compared with the same period in 2006. The year-to-date result was adversely impacted by the settlement with tenants of prior year common area maintenance reimbursements during the first six months of 2007. During the third quarter of 2007, Acadia realized an average rent increase of 71% on a cash basis on new leases totaling 39,000 square feet representing 0.8% of the portfolio's gross leasable area. This increase was primarily due to the Circuit City lease discussed above. Renewal leases totaling 37,000 square feet had an average rent increase of 9% on a cash basis. Including the effect of the straight-lining of rents, the Company realized average rent increases of 94% and 15%, for new and renewal leases, respectively. Balance Sheet - Portfolio debt at 95% fixed-rate Acadia continues to maintain a solid financial position at September 30, 2007 as evidenced by the following: -- Fixed-charge coverage ratio of 3.4 to 1 for the third quarter 2007 -- Debt to total market capitalization of 33% -- Dividend payout ratio for the third quarter 2007 of 51% of FFO; year-to-date payout ratio is 59% -- Approximately $140 million available under existing credit facilities -- 95% of the Company's total mortgage debt is now fixed-rate, inclusive of long-term interest rate swaps and adjusted for its pro-rata share of consolidated joint venture debt Acadia Fund III - Investment Activity Commences During the second quarter 2007, Acadia announced the formation of its third discretionary investment fund, Acadia Strategic Opportunity Fund III LLC ("Fund III"). Fund III is capitalized with commitments of $500 million of discretionary institutional capital, which will enable the fund to acquire or develop approximately $1.5 billion of assets on a leveraged basis. During the third quarter, the Company signed a contract for what it expects will be its tenth New York Urban/Infill Redevelopment project with P/A Associates and one of its first Fund III acquisitions. The preliminary redevelopment plan for this project, located in Sheepshead Bay, Brooklyn, New York, is to demolish the existing site and develop up to 240,000 square feet of retail. The Company also signed a contract during the quarter for a second Fund III investment located in Westport, Connecticut. The Company expects to fully renovate this "Main Street" property to include up to 30,000 square feet of retail. New York Urban/Infill Redevelopment Progress During the quarter, the Company continued its progress in its New York Urban Infill Redevelopment portfolio. Currently, the portfolio consists of nine projects with over 2 million square feet. Included on page 33 of our quarterly supplement is a schedule of estimated timing, cost, square footage and anchor tenants of this pipeline. Highlights for the quarter were as follows: -- 216th Street in New York and Liberty Avenue in Ozone Park, Queens are complete. -- Two projects are currently under construction. Pelham Manor Shopping Center is expected to be completed during the second half of 2008 and Fordham Place is scheduled to be completed in the first half of 2009. -- During the quarter, MacFarlane Partners, the Company's partner at CityPoint (formerly known as Albee Square) and owner of the residential component of the project, contracted with Rose Associates to be its development partner. Outlook - Earnings Guidance Reaffirmed for Year End 2007 The Company reaffirms its previously announced guidance for the year ending December 31, 2007 at the lower end of $1.30 to $1.35 FFO per share and $0.65 to $0.70 EPS. Management Comments Commenting on the results for the third quarter, Kenneth F. Bernstein, President and CEO, stated, "The third quarter was another solid quarter for Acadia as evidenced by our strong earnings growth, portfolio performance, financial ratios and favorable returns from our discretionary investment fund platform. As a result of our strong financial position and newly launched Fund III, we are well situated to capitalize on the opportunities arising from the current uncertainty and volatility in the marketplace." Investor Conference Call Management will conduct a conference call on Tuesday, October 30, 2007 at 2:00 PM ET to review the Company's earnings and operating results. The live conference call can be accessed by dialing 1-800-688-0796 (internationally 617-614-4070). The pass-code is "Acadia". The call will also be webcast and can be accessed in a listen-only mode at Acadia's web site at www.acadiarealty.com. If you are unable to participate during the live webcast, the call will be archived and available on Acadia's website. Alternatively, to access the replay by phone, dial 888-286-8010 (internationally 617-801-6888), and the passcode will be 64741037. The phone replay will be available through Monday, November 5, 2007. Acadia Realty Trust, headquartered in White Plains, NY, is a fully integrated, self-managed and self-administered equity REIT focused primarily on the ownership, acquisition, redevelopment and management of retail properties, including neighborhood/community shopping centers and mixed-use properties with retail components. Certain matters in this press release may constitute forward-looking statements within the meaning of federal securities law and as such may involve known and unknown risk, uncertainties and other factors which may cause the actual results, performances or achievements of Acadia to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. These forward-looking statements include statements regarding our future earnings, estimates regarding the timing of completion of, and costs relating to, our real estate redevelopment projects. Factors that could cause our forward-looking statements to differ from our future results include, but are not limited to, those discussed under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in the Company's most recent annual report on Form 10-K filed with the SEC on March 1, 2007 ("Form 10-K") and other periodic reports filed with the SEC, including risks related to: (i) the Company's reliance on revenues derived from major tenants; (ii) the Company's limited control over joint venture investments; (iii) the Company's partnership structure; (iv) real estate and the geographic concentration of our properties; (v) market interest rates; (vi) leverage; (vii) liability for environmental matters;(viii) the Company's growth strategy; (ix) the Company's status as a REIT (x) uninsured losses and (xi) the loss of key executives. Copies of the Form 10-K and the other periodic reports Acadia files with the SEC are available on the Company's website at www.acadiarealty.com. Any forward-looking statements in this press release speak only as of the date hereof. Acadia expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Acadia's expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based. ACADIA REALTY TRUST AND SUBSIDIARIES Financial Highlights (1) For the Quarters and Nine Months ended September 30, 2007 and 2006 (dollars in thousands, except per share data) For the quarters ended For the nine months ended September 30, September 30, Revenues 2007 2006 2007 2006 ------------ ------------ ------------ ------------ Minimum rents $ 18,825 $ 16,549 $ 55,583 $ 49,804 Percentage rents 122 677 405 988 Expense reimbursements 3,651 3,699 9,646 10,763 Other property income 475 235 1,009 691 Management fee income 1,594 1,773 3,405 4,254 Interest income 2,590 2,324 7,682 5,977 Other -- -- 165 1,141 ------------ ------------ ------------ ------------ Total revenues 27,257 25,257 77,895 73,618 ------------ ------------ ------------ ------------ Operating expenses Property operating 4,515 3,662 13,164 10,810 Real estate taxes 2,722 2,653 7,293 7,532 General and administrative 5,336 5,786 16,325 15,872 Depreciation and amortization 6,778 6,361 20,012 18,710 ------------ ------------ ------------ ------------ Total operating expenses 19,351 18,462 56,794 52,924 ------------ ------------ ------------ ------------ Operating income 7,906 6,795 21,101 20,694 Equity in earnings of unconsolidated affiliates 545 (2,878) 4,258 3,120 Interest expense (5,932) (5,368) (17,556) (15,770) Minority interest 4,959 4,223 6,660 3,482 ------------ ------------ ------------ ------------ Income from continuing operations before income taxes 7,478 2,772 14,463 11,526 Income taxes 191 638 (245) (174) ------------ ------------ ------------ ------------ Income from continuing operations 7,669 3,410 14,218 11,352 ------------ ------------ ------------ ------------ ACADIA REALTY TRUST AND SUBSIDIARIES Financial Highlights (1) For the Quarters and Nine Months ended September 30, 2007 and 2006 (dollars in thousands, except per share data) For the quarters ended For the nine months ended September 30, September 30, 2007 2006 2007 2006 ------------ ------------ ------------ ------------ Discontinued operations: Operating income from discontinued operations 27 726 355 2,010 Minority interest -- (14) (7) (39) ------------ ------------ ------------ ------------ Income from discontinued operations 27 712 348 1,971 ------------ ------------ ------------ ------------ Net income before extraordinary item 7,696 4,122 14,566 13,323 ------------ ------------ ------------ ------------ Extraordinary item: Share of extraordinary gain from investment in unconsolidated affiliate 6,510 -- 30,200 -- Minority interest (5,208) -- (24,167) -- Income taxes (508) -- (2,356) -- ------------ ------------ ------------ ------------ Income from extraordinary item 794 -- 3,677 -- ------------ ------------ ------------ ------------ Net income $ 8,490 $ 4,122 $ 18,243 $ 13,323 ============ ============ ============ ============ Net income per Common Share - Basic Net income per Common Share - Continuing operations $ 0.24 $ 0.11 $ 0.43 $ 0.35 Net income per Common Share - Discontinued operations -- 0.02 0.01 0.06 Net income per Common Share - Extraordinary item 0.02 -- 0.11 -- ------------ ------------ ------------ ------------ Net income per Common Share $ 0.26 $ 0.13 $ 0.55 $ 0.41 ============ ============ ============ ============ Weighted average Common Shares 32,966 32,513 32,885 32,497 ============ ============ ============ ============ Net income per Common Share - Diluted (2) Net income per Common Share - Continuing operations $ 0.23 $ 0.11 $ 0.43 $ 0.35 Net income per Common Share - Discontinued operations -- 0.02 0.01 0.06 Net income per Common Share - Extraordinary item 0.02 -- 0.11 -- ------------ ------------ ------------ ------------ Net income per Common Share $ 0.25 $ 0.13 $ 0.55 $ 0.41 ============ ============ ============ ============ Weighted average Common Shares 33,316 32,836 33,278 32,805 ============ ============ ============ ============ ACADIA REALTY TRUST AND SUBSIDIARIES Financial Highlights (1) For the Quarters and Nine Months ended September 30, 2007 and 2006 (dollars in thousands, except per share data) RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS (3) For the quarters ended For the nine months ended September 30, September 30, 2007 2006 2007 2006 ------------ ------------ ------------ ------------ Net income $ 8,490 $ 4,122 $ 18,243 $ 13,323 Depreciation of real estate and amortization of leasing costs (net of minority interests' share) Wholly owned and consolidated affiliates 3,870 4,928 13,825 15,255 Unconsolidated affiliates 349 397 1,337 1,247 Income attributable to minority interest in Operating Partnership 188 89 416 287 Distributions - Preferred OP Units 5 63 18 188 Loss (gain) on sale (net of minority interests' share and income taxes) 241 394 241 (437) Extraordinary item (net of minority interests' share and income taxes) (794) -- (3,677) -- ------------ ------------ ------------ ------------ Funds from operations 12,349 9,993 30,403 29,863 Add back: Extraordinary item, net (4) 794 -- 3,677 -- ------------ ------------ ------------ ------------ Funds from operations, adjusted for extraordinary item $ 13,143 $ 9,993 $ 34,080 $ 29,863 ============ ============ ============ ============ Funds from operations per share - Diluted Weighted average Common Shares and OP Units (5) 33,979 33,815 33,965 33,791 ============ ============ ============ ============ Funds from operations, adjusted, per share $ 0.39 $ 0.30 $ 1.00 $ 0.88 ============ ============ ============ ============ ACADIA REALTY TRUST AND SUBSIDIARIES Financial Highlights (1) For the Quarters and Nine Months ended September 30, 2007 and 2006 (dollars in thousands) RECONCILIATION OF OPERATING INCOME TO NET PROPERTY OPERATING INCOME For the quarters ended For the nine months ended September 30, September 30, 2007 2006 2007 2006 ------------ ------------ ------------ ------------ Operating income $ 7,906 $ 6,795 $ 21,101 $ 20,694 Add back: General and administrative 5,336 5,786 16,325 15,872 Depreciation and amortization 6,778 6,361 20,012 18,710 Less: Management fee income (1,594) (1,773) (3,405) (4,254) Interest income (2,590) (2,324) (7,682) (5,977) Straight line rent and other adjustments (586) 238 (1,215) 160 ------------ ------------ ------------ ------------ Net property operating income $ 15,250 $ 15,083 $ 45,136 $ 45,205 ============ ============ ============ ============ SELECTED BALANCE SHEET INFORMATION As of September 30, December 31, 2007 2006 ------------- ------------ Cash and cash equivalents $ 127,956 $ 139,571 Rental property, at cost 793,171 672,324 Total assets 934,995 851,692 Notes payable 488,993 435,192 Total liabilities 555,489 496,835 Notes: (1) For additional information and analysis concerning the Company's results of operations, reference is made to the Company's Quarterly Supplemental Disclosure furnished on Form 8-K to the SEC and included on the Company's website at www.acadiarealty.com. (2) Reflects the potential dilution that could occur if securities or other contracts to issue Common Shares were exercised or converted into Common Shares. The effect of the conversion of Common OP Units is not reflected in the above table as they are exchangeable for Common Shares on a one-for-one basis. The income allocable to such units is allocated on this same basis and reflected as minority interest in the consolidated financial statements. As such, the assumed conversion of these units would have no net impact on the determination of diluted earnings per share. (3) The Company considers funds from operations ("FFO") as defined by the National Association of Real Estate Investment Trusts ("NAREIT") and net operating income ("NOI") to be appropriate supplemental disclosures of operating performance for an equity REIT due to its widespread acceptance and use within the REIT and analyst communities. FFO and NOI are presented to assist investors in analyzing the performance of the Company. They are helpful as they exclude various items included in net income that are not indicative of the operating performance, such as gains (losses) from sales of depreciated property and depreciation and amortization. In addition, NOI excludes interest expense. The Company's method of calculating FFO and NOI may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. FFO does not represent cash generated from operations as defined by generally accepted accounting principles ("GAAP") and is not indicative of cash available to fund all cash needs, including distributions. It should not be considered as an alternative to net income for the purpose of evaluating the Company's performance or to cash flows as a measure of liquidity. Consistent with the NAREIT definition, the Company defines FFO as net income (computed in accordance with GAAP), excluding gains (losses) from sales of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. (4) The extraordinary item represents the Company's share of estimated extraordinary gain related to its investment in Albertson's. The Albertson's entity has recorded an extraordinary gain in connection with the allocation of purchase price to assets acquired. The Company considers this as an investment in an operating business as opposed to real estate. Accordingly, all gains and losses from this investment are included in FFO which management believes provide a more accurate reflection of the operating performance of the Company. (5) In addition to the weighted average Common Shares outstanding, basic and diluted FFO also assumes full conversion of a weighted average 664 and 642 OP Units into Common Shares for the quarters ended September 30, 2007 and 2006, respectively, and 663 and 649 OP Units into Common Shares for the nine months ended September 30, 2007 and 2006, respectively. Diluted FFO also includes the assumed conversion of Preferred OP Units into 25 and 337 Common Shares for the quarters ended September 30, 2007 and 2006, respectively, and the conversion of Preferred OP Units into 81 and 337 Common Shares for the nine months ended September 30, 2007 and 2006, respectively. CONTACT: Acadia Realty Trust Media Relations: Debra Miley, 914-288-8140 EX-99.2 3 a5532092ex992.txt EXHIBIT 99.2 Exhibit 99.2
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Table of Contents ----------------- Page Page ----- ----- Section I - Overview Section III - Opportunity Fund Information Important Notes 2 Overview - Fund I 25 Company Information 3 Overview - Fund II 26 Portfolio Snapshot 4 Overview - Fund III 27 Section II - Financial Information Overview - RCP Venture 28 Market Capitalization 5 Fund I Properties - Detail 29 Shareholder Information 6 Top Fund I Tenants 30 Operating Statements - Pro-rata Consolidation 7 Fund I - Current Valuation 31 Operating Statements - Joint Ventures 9 Fund II Properties - Detail 33 Operating Statements - Current v. Prior Year 13 Fund II - New York Urban/Infill Projects 33 Net Operating Income - Same Property Performance 15 Section IV - Portfolio Information Funds from Operations ("FFO"), Adjusted FFO ("AFFO") and Funds Available for Distribution ("FAD") 16 Portfolio by Region 34 Capital Expenditures 17 Portfolio by State 35 Consolidated Balance Sheets 18 Portfolio - Detail 36 Pro-rata Consolidated Balance Sheet 19 New and Renewal Rent Spreads 39 Selected Operating Ratios 20 Top 10 Tenants - Consolidated 40 Debt Analysis - Summary 21 Anchor Tenant Detail 41 Debt Analysis - Detail 22 Anchor Lease Expirations - Next 3 Years 45 Debt Maturity Schedule 24 Portfolio Lease Expirations 46 Portfolio Demographics 49 Residential Properties 50
1 QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Important Notes SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained in this supplemental disclosure may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934 and as such may involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend" or "project" or the negative thereof or other variations thereon or comparable terminology. Factors which could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to those set forth under the heading "Risk Factors" in the Company's Annual Report on Form 10-K. These risks and uncertainties should be considered in evaluating any forward-looking statements contained or incorporated by reference herein. USE OF FUNDS FROM OPERATIONS AS NON-GAAP FINANCIAL MEASURE The Company considers funds from operations ("FFO") as defined by the National Association of Real Estate Investment Trusts ("NAREIT") to be an appropriate supplemental disclosure of operating performance for an equity REIT due to its widespread acceptance and use within the REIT and analyst communities. FFO is presented to assist investors in analyzing the performance of the Company. It is helpful as it excludes various items included in net income that are not indicative of the operating performance, such as gains (or losses) from sales of property and depreciation and amortization. However, the Company's method of calculating FFO may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. FFO does not represent cash generated from operations as defined by generally accepted accounting principles ("GAAP") and is not indicative of cash available to fund all cash needs, including distributions. It should not be considered as an alternative to net income for the purpose of evaluating the Company's performance or to cash flows as a measure of liquidity. Consistent with the NAREIT definition, the Company defines FFO as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. In addition, the Company also discloses FFO as adjusted to include the extraordinary gain from its RCP investment in Albertson's. The Company believes that income or gains derived from its RCP investments, including its investment in Albertson's, are private-equity investments and, as such, should be treated as operating income and therefore FFO. The Company believes that this supplement adjustment more appropriately reflects the results of its operations. The Company also provides two other supplemental disclosures of operating performance, adjusted funds from operations ("AFFO") and funds available for distribution ("FAD"). The Company defines AFFO as FFO adjusted for straight line rent, non-real estate depreciation, amortization of finance costs and costs of management contracts, tenant improvements, leasing commissions and capital expenditures. The Company defines FAD as AFFO adjusted for schedules debt principal payments. USE OF EBITDA AND NOI AS NON-GAAP FINANCIAL MEASURES EBITDA and NOI are a widely used financial measures in many industries, including the REIT industry, and is presented to assist investors and analysts in analyzing the performance of the Company. It is helpful as it excludes various items included in net income that are not indicative of operating performance, such as gains (or losses) from sales of property and depreciation and amortization and is used in computing various financial ratios as a measure of operational performance. The Company computes EBITDA as the sum of net income before extraordinary items plus interest expense, depreciation, income taxes and amortization, less any gains (losses including impairment charges) on the sale of income producing properties. The Company computes NOI by taking the difference between Property Revenues and Property Expenses as detailed in this reporting supplement. The Company's method of calculating EBITDA and NOI may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. EBITDA and NOI do not represent cash generated from operations as defined by GAAP and are not indicative of cash available to fund all cash needs, including distributions. They should not be considered as an alternative to net income for the purpose of evaluating the Company's performance or to cash flows as a measure of liquidity. 2 QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Company Information Acadia Realty Trust, headquartered in White Plains, NY, is a fully integrated and self-managed real estate investment trust which specializes in the acquisition, redevelopment and operation of shopping centers which are anchored by grocery and value-oriented retail. Acadia currently owns (or has interests in) and operates 74 properties totaling approximately 10 million square feet, located in the Northeast, Mid-Atlantic and Midwest United States. All of Acadia's assets are held by, and all its operations are conducted through, Acadia Realty Limited Partnership (and its majority-owned subsidiaries) which is currently 98% controlled by Acadia.
Corporate Headquarters 1311 Mamaroneck Avenue Investor Relations Debra Miley Suite 260 Director - Marketing & Communications White Plains, NY 10605 (914) 288-8148 dmiley@acadiarealty.com New York Stock Exchange Symbol AKR Web Site www.acadiarealty.com Analyst Coverage Banc of America Securities J.P. Morgan Securities, Inc. Christine McElroy - (212) 847-5658 Michael W. Mueller, CFA (212) 622-6689 christine.m.mcelroy@bofasecurities.com michael.w.mueller@jpmorgan.com Joseph Dazio, CFA - (212) 622-6416 joseph.c.dazio@jpmorgan.com Bank of Montreal RBC Capital Markets Paul Adornato, CFA - (212) 885-4170 Rich Moore, CFA - (216) 378-7625 paul.adornato@bmo.com rich.moore@rbccm.com Citigroup - Smith Barney Keefe, Bruyette & Woods, Inc. Jonathan Litt - (212) 816-0231 Sheila K. McGrath - (212) 887-7793 jonathan.litt@citigroup.com smcgrath@kbw.com Ambika Goel - (212) 816-6981 Ambika.goel@citigroup.com
3 QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Total Market Capitalization --------------------------- (including pro-rata share of joint venture debt) Percent of Percent of Total Market (amounts in thousands) Total Equity Capitalization --------------- --------------- Equity Capitalization - --------------------- Total Common Shares Outstanding 98.0% $32,175 Common Operating Partnership ("OP") Units 2.0% 642 --------------- Combined Common Shares and OP Units 32,817 Share Price at September 30, 2007 27.13 --------------- Equity Capitalization - Common Shares and OP Units 890,325 Preferred OP Units - at cost (1) 0.0% 188 ------------------------------ Total Equity Capitalization 100.0% 890,513 66.7% ============================================= Debt Capitalization - ------------------- Consolidated debt 488,052 Adjustment to reflect pro-rata share of debt (43,471) --------------- Total Debt Capitalization 444,581 33.3% ------------------------------ Total Market Capitalization $1,335,094 100.0% ============================== Weighted Average Outstanding Common Shares and O.P. Units - ----------------------------------- Common Shares OP Units Total --------------------------------------------- Basic Quarter ended September 30, 2007 32,965,619 663,808 33,629,427 Year-to-date September 30, 2007 32,885,377 662,625 33,548,002 Fully Diluted (3) Quarter ended September 30, 2007 33,315,524 663,808 33,979,332 Year-to-date September 30, 2007 33,277,544 662,625 33,940,169 ============================================= Basic Quarter ended September 30, 2006 32,513,398 651,163 33,164,561 Year-to-date September 30, 2006 32,497,153 652,256 33,149,409 Fully Diluted (3) Quarter ended September 30, 2006 32,836,473 651,163 33,487,636 Year-to-date September 30, 2006 32,804,628 652,256 33,456,884 (1) In connection with the acquisition of the Pacesetter Park Shopping Center in 1999, the Company issued 2,212 Preferred OP Units, of which 2,024 have been converted to Common OP Units to date. The remaining Preferred OP Units are reflected above at their stated cost of $1,000 per unit. (2) Fixed-rate debt includes notional principal fixed through interest rate swap transactions and conversely, variable-rate debt excludes this amount. (3) For purposes of earnings per share calculations, the assumed conversion of 25,067 and 55,595 Preferred OP Units is dilutive for EPS and is included in the fully diluted amounts above for the quarter and nine months ending September30, 2007, respectively. They were anti-dilutive for EPS for the quarter and nine months ended September 30, 2006 and, accordingly, are not included for these periods. 4
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Shareholder Information ----------------------- (amounts in thousands) 10 Largest Institutional Shareholders (1) Percent of Out- Common standing Common Shareholder Shares Held Shares - ----------- ----------------------------------- Wellington Management 3,444 10.7% Third Avenue Management 2,637 8.2% Morgan Stanley 2,596 8.1% Vanguard Group 1,940 6.0% Lasalle Investment Management Securities LP 1,937 6.0% Barclay's Global Investors 1,806 5.6% Yale University 1,786 5.6% ING Investment Management (Europe) B.V. 1,510 4.7% Principal Financial Group 1,380 4.3% BAMCO Inc. NY 1,351 4.2% ----------------------------------- Total of 10 Largest Institutional Shareholders 20,387 63.4% =================================== Total of all Institutional Shareholders 31,637 98.3% ===================================
Operating Partnership Unit Information --------------------- Percent of Total OP Units --------------- Managment O.P. Unit Holders 338 52.6% Other O.P. Unit Holders 304 47.4% ------------------------- Total O.P. Units 642 100.0% ========================= (1) Based on most recent Schedule 13F filing 5
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Income Statements - Pro-rata Consolidation (1) - ---------------------------------------------- Current Quarter and Year-to-Date - -------------------------------- (in thousands) ------------------------------------------------------------------------------------------ Year-to-Date Period ended September 30, 2007 ------------------------------------------------------------------------------------------ Core Retail ----------------------------------- Opportunity Discontinued Wholly Joint Owned Ventures Total Core Funds Residential Operations (4) Total ------------------------------------------------------------------------------------------ PROPERTY REVENUES Minimum rents $35,499 $4,751 $40,250 $8,166 $5,273 $1,553 $55,242 Percentage rents 402 105 507 3 - - 510 Expense reimbursements - CAM 3,805 551 4,356 238 - 177 4,771 Expense reimbursements - Taxes 5,393 698 6,091 75 - 211 6,377 Other property income 285 10 295 38 459 19 811 ------------------------------------------------------------------------------------------ 45,384 6,115 51,499 8,520 5,732 1,960 67,711 ------------------------------------------------------------------------------------------ PROPERTY EXPENSES Property operating - CAM 5,898 754 6,652 475 - 243 7,370 Other property operating 1,322 193 1,515 364 3,267 (41) 5,105 Real estate taxes 6,024 825 6,849 273 273 221 7,616 ------------------------------------------------------------------------------------------ 13,244 1,772 15,016 1,112 3,540 423 20,091 ------------------------------------------------------------------------------------------ NET OPERATING INCOME - PROPERTIES (3) 32,140 4,343 36,483 7,408 2,192 1,537 47,620 OTHER INCOME (EXPENSE) General and administrative (17,501) - (17,501) (221) - - (17,722) Equity in earnings of unconsolidated properties - - - 8,922 - - 8,922 Interest income 7,272 43 7,315 365 15 - 7,695 Fee income (2) 11,850 - 11,850 - - - 11,850 Promote income - - - - - - - Promote expense - - - - - - - Property management expense (94) - (94) 93 (121) (99) (221) Straight-line rent income 964 99 1,063 753 - 52 1,868 Straight-line rents written off (20) - (20) - - - (20) FAS 141 rent (507) 103 (404) (37) - - (441) Provision for income taxes (2,577) - (2,577) (17) - - (2,594) Swap termination income 165 - 165 - - - 165 ------------------------------------------------------------------------------------------ EBIDTA 31,692 4,588 36,280 17,266 2,086 1,490 57,122 Depreciation and amortization (11,575) (684) (12,259) (5,037) (1,118) (263) (18,677) FAS 141 amortization (384) - (384) (57) - - (441) Interest expense (12,620) (2,914) (15,534) (1,613) (892) (676) (18,715) Loan defeasance (426) - (426) - - - (426) FAS 141 interest 47 - 47 - - 45 92 Gain (loss) on sale of properties - - - - - (241) (241) ------------------------------------------------------------------------------------------ Income before minority interest 6,734 990 7,724 10,559 76 355 18,714 Minority interest - OP (184) (13) (197) (216) (1) (7) (421) Minority interest 237 - 237 (287) - - (50) ------------------------------------------------------------------------------------------ NET INCOME $6,787 $977 $7,764 $10,056 $75 $348 $18,243 ========================================================================================== ------------------------------------------------------------------------------------------ Current Quarter 3 months ended September 30, 2007 ------------------------------------------------------------------------------------------ Core Retail ----------------------------------- Opportunity Discontinued Wholly Joint Owned Ventures Total Core Funds Residential Operations (4) Total ------------------------------------------------------------------------------------------ PROPERTY REVENUES Minimum rents $12,143 $1,615 $13,758 $2,736 $1,672 $527 $18,693 Percentage rents 122 65 187 - - - 187 Expense reimbursements - CAM 1,305 190 1,495 102 - 67 1,664 Expense reimbursements - Taxes 1,977 248 2,225 74 103 2,402 Other property income 153 (4) 149 22 179 - 350 ------------------------------------------------------------------------------------------ 15,700 2,114 17,814 2,934 1,851 697 23,296 ------------------------------------------------------------------------------------------ PROPERTY EXPENSES Property operating - CAM 1,870 249 2,119 145 - 73 2,337 Other property operating 547 74 621 129 1,333 (53) 2,030 Real estate taxes 2,212 285 2,497 160 96 78 2,831 ------------------------------------------------------------------------------------------ 4,629 608 5,237 434 1,429 98 7,198 ------------------------------------------------------------------------------------------ NET OPERATING INCOME - PROPERTIES (3) 11,071 1,506 12,577 2,500 422 599 16,098 OTHER INCOME (EXPENSE) General and administrative (5,837) - (5,837) (80) - - (5,917) Equity in earnings of unconsolidated properties - - - 3,421 - - 3,421 Interest income 2,372 14 2,386 145 5 - 2,536 Fee income (2) 5,521 - 5,521 - - - 5,521 Promote income - - - - - - - Promote expense - - - - - - - Property management expense (31) - (31) 42 (37) (44) (70) Straight-line rent income 263 39 302 249 - 9 560 Straight-line rents written off 126 - 126 - - - 126 FAS 141 rent (249) 34 (215) 13 - - (202) Provision for income taxes (316) - (316) (2) - - (318) Swap termination income - - - - - - - ------------------------------------------------------------------------------------------ EBIDTA 12,920 1,593 14,513 6,288 390 564 21,755 Depreciation and amortization (3,912) (246) (4,158) (1,649) (369) (87) (6,263) FAS 141 amortization (144) - (144) (21) - - (165) Interest expense (4,254) (996) (5,250) (574) (300) (223) (6,347) Loan defeasance - - - - - - - FAS 141 interest 20 - 20 - - 15 35 Gain (loss) on sale of properties - - - - - (241) (241) ------------------------------------------------------------------------------------------ Income before minority interest 4,630 351 4,981 4,044 (279) 28 8,774 Minority interest - OP (102) (5) (107) (86) 6 (1) (188) Minority interest 4 - 4 (100) - - (96) ------------------------------------------------------------------------------------------ NET INCOME $4,532 $346 $4,878 $3,858 $(273) $27 $8,490 ========================================================================================== ------------------------------------------------------------------------------------------ Previous Quarter 3 months ended June 30, 2007 ------------------------------------------------------------------------------------------ Core Retail ----------------------------------- Opportunity Discontinued Wholly Joint Owned Ventures Total Core Funds Residential Operations (4) Total ------------------------------------------------------------------------------------------ PROPERTY REVENUES Minimum rents $11,962 $1,578 $13,540 $2,695 $1,813 $518 $18,566 Percentage rents 142 8 150 3 - - 153 Expense reimbursements - CAM 943 128 1,071 75 - 51 1,197 Expense reimbursements - Taxes 1,642 265 1,907 80 - 48 2,035 Other property income 53 10 63 11 145 19 238 ------------------------------------------------------------------------------------------ 14,742 1,989 16,731 2,864 1,958 636 22,189 ------------------------------------------------------------------------------------------ PROPERTY EXPENSES Property operating - CAM 1,605 219 1,824 162 - 132 2,118 Other property operating 187 73 260 114 1,053 8 1,435 Real estate taxes 1,993 274 2,267 119 95 78 2,559 ------------------------------------------------------------------------------------------ 3,785 566 4,351 395 1,148 218 6,112 ------------------------------------------------------------------------------------------ NET OPERATING INCOME - PROPERTIES (3) 10,957 1,423 12,380 2,469 810 418 16,077 OTHER INCOME (EXPENSE) General and administrative (6,129) - (6,129) (57) - - (6,186) Equity in earnings of unconsolidated properties - - - 774 - - 774 Interest income 2,094 14 2,108 126 5 - 2,239 Fee income (2) 3,294 - 3,294 - - - 3,294 Promote income - - - - - - - Promote expense - - - - - - - Property management expense (32) - (32) 27 (41) (29) (75) Straight-line rent income 309 28 337 251 - 17 605 Straight-line rents written off (61) - (61) - - - (61) FAS 141 rent (237) 35 (202) (19) - - (221) Provision for income taxes (383) - (383) (2) - - (385) Swap termination income - - - - - - - ------------------------------------------------------------------------------------------ EBIDTA 9,812 1,500 11,312 3,569 774 406 16,061 Depreciation and amortization (3,888) (216) (4,104) (1,712) (369) (88) (6,273) FAS 141 amortization (316) - (316) (16) - - (332) Interest expense (4,238) (986) (5,224) (524) (297) (226) (6,271) Loan defeasance - - - - - - - FAS 141 interest 7 - 7 - - 15 22 Gain (loss) on sale of properties - - - - - - - ------------------------------------------------------------------------------------------ Income before minority interest 1,377 298 1,675 1,317 108 107 3,207 Minority interest - OP (51) (4) (55) (26) (2) (2) (85) Minority interest 1 - 1 (89) - - (88) ------------------------------------------------------------------------------------------ NET INCOME $1,327 $294 $1,621 $1,202 $106 $105 $3,034 ========================================================================================== ------------------------------------------------------------------------------------------ Previous Quarter 3 months ended March 31, 2007 ------------------------------------------------------------------------------------------ Core Retail ----------------------------------- Opportunity Discontinued Wholly Joint Owned Ventures Total Core Funds Residential Operations (4) Total ------------------------------------------------------------------------------------------ PROPERTY REVENUES Minimum rents $11,394 $1,558 $12,952 $2,735 $1,788 $508 $17,983 Percentage rents 138 32 170 - - - 170 Expense reimbursements - CAM 1,557 233 1,790 61 - 59 1,910 Expense reimbursements - Taxes 1,774 185 1,959 (79) - 60 1,940 Other property income 79 4 83 5 135 - 223 ------------------------------------------------------------------------------------------ 14,942 2,012 16,954 2,722 1,923 627 22,226 ------------------------------------------------------------------------------------------ PROPERTY EXPENSES Property operating - CAM 2,423 286 2,709 168 - 38 2,915 Other property operating 588 46 634 121 881 4 1,640 Real estate taxes 1,819 266 2,085 (6) 82 65 2,226 ------------------------------------------------------------------------------------------ 4,830 598 5,428 283 963 107 6,781 ------------------------------------------------------------------------------------------ NET OPERATING INCOME - PROPERTIES (3) 10,112 1,414 11,526 2,439 960 520 15,445 OTHER INCOME (EXPENSE) General and administrative (5,535) - (5,535) (84) - - (5,619) Equity in earnings of unconsolidated properties - - - 4,727 - - 4,727 Interest income 2,806 15 2,821 94 5 - 2,920 Fee income (2) 3,035 - 3,035 - - - 3,035 Promote income - - - - - - - Promote expense - - - - - - Property management expense (31) - (31) 24 (43) (26) (76) Straight-line rent income 392 32 424 253 - 26 703 Straight-line rents written off (85) - (85) - - - (85) FAS 141 rent (21) 34 13 (31) - - (18) Provision for income taxes (1,878) - (1,878) (13) - - (1,891) Swap termination income 165 - 165 - - - 165 ------------------------------------------------------------------------------------------ EBIDTA 8,960 1,495 10,455 7,409 922 520 19,306 Depreciation and amortization (3,775) (222) (3,997) (1,676) (380) (88) (6,141) FAS 141 amortization 76 - 76 (20) - - 56 Interest expense (4,128) (932) (5,060) (515) (295) (227) (6,097) Loan defeasance (426) - (426) - - - (426) FAS 141 interest 20 - 20 - - 15 35 Gain (loss) on sale of properties - - - - - - - ------------------------------------------------------------------------------------------ Income before minority interest 727 341 1,068 5,198 247 220 6,733 Minority interest - OP (31) (4) (35) (104) (5) (4) (148) Minority interest 232 - 232 (98) - - 134 ------------------------------------------------------------------------------------------ NET INCOME $928 $337 $1,265 $4,996 $242 $216 $6,719 ==========================================================================================
(1) Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The Company's investments in consolidated and unconsolidated joint ventures are reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items. In total, net income agrees with net income as reported in the Company's Form 10Q's and 10K for the corresponding periods. The Company currently invests in Funds I, II & III and Mervyns I & II which are consolidated with the Company's financial statements. The Company also has a 22.2% investment in the Brandywine Portfolio and a 49% JV interest in the Crossroads Shopping Center ("Crossroads") which are accounted for as unconsolidated investments in the Company's financial statements.
(2)Detail as follows: YTD 3rd Quarter 2nd Quarter 1st Quarter ------------------------------------------------------------ Asset management fee Fund II $2,700 $900 $900 $900 Asset management fee Fund III 2,250 1,500 750 - Leasing/Construction/Legal fees - Fund I 142 105 15 22 Property management/Construction/Legal fees - Fund II 3,328 1,395 835 1,098 Property management/Construction/Legal fees - Fund III 30 30 - - Klaff Portfolio Fees 1,713 338 560 815 Other third party Property management/Construction/Leasing/Legal fees 1,687 1,253 234 200 ------------------------------------------------------------ 11,850 5,521 3,294 3,035 Priority distributions - Fund I 741 257 244 240 ------------------------------------------------------------ Total Management fees and priority distributions $12,591 $5,778 $3,538 $3,275 ============================================================
(3) Includes majority-owned affiliates of which the minority share of NOI for 239 Greenwich Ave and Boonton Shopping Center aggregated $224 for the quarter and $686 for the nine months ended September 30, 2007. (3) Discontinued Operations reflects two Opportunity Fund properties, Amherst Marketplace and Sheffield Crossing, which are under contract for sale. 6
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Income Statements - Joint Ventures (2) - -------------------------------------- Current Quarter and Year-to-Date - -------------------------------- (in thousands) ---------------------------------------------------------------------------------------------------- Year-to-Date Period ended September 30, 2007 ---------------------------------------------------------------------------------------------------- Opportunity Funds ---------------------------------------------------------------------------------------------------- AKR 20% AKR 20% Promote Promote and AKR and 22.22% 22.22% Pro-rata Brandywine Pro-rata AKR Pro- AKR Pro- rata share Promote rata share rata share rata share Fund I (37.78)% 62.22% (4)Mervyns I (37.78)% Fund II 20.00% Mervyns II 20.00% Fund III ---------------------------------------------------------------------------------------------------- PROPERTY REVENUES Minimum rents $8,365 $3,160 $5,205 $- $- $6,766 $1,354 $- $- $- Percentage rents 3 1 2 - - - - - - - Expense reimbursements - CAM 350 133 217 - - 327 65 - - - Expense reimbursements - Taxes 285 108 177 - - 8 1 - - - Other property income 26 11 15 - - 154 31 - - - ---------------------------------------------------------------------------------------------------- 9,029 3,413 5,616 - - 7,255 1,451 - - - ---------------------------------------------------------------------------------------------------- PROPERTY EXPENSES Property operating - CAM 516 196 320 - - 1,011 202 - - - Other property operating 104 39 65 - - 1,094 219 - - 1 Real estate taxes 314 119 195 - - 902 180 - - - ---------------------------------------------------------------------------------------------------- 934 354 580 - - 3,007 601 - - 1 ---------------------------------------------------------------------------------------------------- NET OPERATING INCOME - PROPERTIES (5) 8,095 3,059 5,036 - - 4,248 850 - - (1) OTHER INCOME (EXPENSE) General and administrative (153) (58) (95) - - (219) (44) (1) - (119) Equity in earnings of unconsolidated properties 2,482 923 1,544 1,069 404 (203) (41) 30,434 6,086 - Interest income 286 108 178 8 3 361 72 16 4 1 Asset and property management income - - - - - - - - - - Promote income - - - - - - - - - - Promote expense (1,227) - - (214) - - - - - - Asset and property management expense(2) (6) (3) (3) - - (3,635) - - - (2,813) Straight-line rent income 793 299 494 - - 59 12 - - - Straight-line rents written off - - - - - - - - - - FAS 141 Rent (12) (6) (6) - - (127) (25) - - - Provision for income taxes (14) (6) (8) (4) (2) - - (6) (1) - Swap termination income - - - - - - - - - - ---------------------------------------------------------------------------------------------------- EBIDTA 10,244 4,316 7,140 859 405 484 824 30,443 6,089 (2,932) Depreciation and amortization (3) (4,924) (1,861) (3,063) - - (1,879) (376) - - - FAS 141 Amortization (3) - (3) - - (267) (54) - - - Interest expense (1,706) (630) (1,061) - - (2,991) (598) - - - Loan defeasance - - - - - - - - - - FAS 141 Interest 45 18 27 - - - - - - - Gain (loss) on sale of properties - Mervyn's - - - - - - - - - - Income before minority interest 3,656 1,843 3,040 859 405 (4,653) (204) 30,443 6,089 (2,932) Minority interest - OP - (37) (61) - (7) - 4 - (122) - Minority interest (349) (132) (217) - - 312 62 - - - ---------------------------------------------------------------------------------------------------- NET INCOME $3,307 $1,674 $2,762 $859 $398 $(4,341) $(138) $30,443 $5,967 $(2,932) ==================================================================================================== --------------------------------------------------------------------------- Joint Ventures - Core Retail --------------------------------------------------------------------------- AKR Pro- Total AKR Pro- AKR Pro- Total rata share AKR Pro- rata share rata share AKR Pro- rata shareBrandywine Crossroads rata 20.00% 22.22% 49.00% Total --------------------------------------------------------------------------- PROPERTY REVENUES Minimum rents $- $9,719 $11,337 $2,519 $4,552 $2,231 $4,751 Percentage rents - 3 434 96 19 9 105 Expense reimbursements - CAM - 415 1,507 335 440 216 551 Expense reimbursements - Taxes - 286 599 133 1,154 565 698 Other property income - 57 23 5 11 5 10 --------------------------------------------------------------------------- - 10,480 13,900 3,088 6,176 3,026 6,115 --------------------------------------------------------------------------- PROPERTY EXPENSES Property operating - CAM - 718 2,213 491 538 263 754 Other property operating - 323 697 155 77 38 193 Real estate taxes - 494 761 169 1,340 656 825 --------------------------------------------------------------------------- - 1,535 3,671 815 1,955 957 1,772 --------------------------------------------------------------------------- - 8,945 10,229 2,273 4,221 2,069 4,343 OTHER INCOME (EXPENSE) General and administrative (24) (221) - - - - - - 8,916 - - - - - Interest income - 365 93 21 45 22 43 - - - - - - - Promote income - - - - - - - Promote expense - - - - - - - - (6) (656) - - - - Straight-line rent income - 805 393 87 26 12 99 Straight-line rents written off - - - - - - - FAS 141 Rent - (37) 466 103 - - 103 Provision for income taxes - (17) - - - - - Swap termination income - - - - - - - --------------------------------------------------------------------------- EBIDTA (24) 18,750 10,525 2,484 4,292 2,103 4,588 Depreciation and amortization (3) - (5,300) (2,376) (528) (320) (156) (684) FAS 141 Amortization - (57) - - - - - Interest expense - (2,289) (7,556) (1,637) (2,606) (1,277) (2,914) Loan defeasance - - - - - - - FAS 141 Interest - 45 - - - - - - - - - - - - Income before minority interest (24) 11,149 593 319 1,366 670 990 Minority interest - OP - (223) - - - (13) (13) Minority interest - (287) - - - - - --------------------------------------------------------------------------- NET INCOME $(24) $10,639 $593 $319 $1,366 $657 $977 =========================================================================== (1) Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The Company's investments in consolidated and unconsolidated joint ventures are reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items. In total, net income agrees with net income as reported in the Company's Form 10Q's and 10K for the corresponding periods. The Company currently invests in Funds I. II & III and Mervyn's which are consolidated with the Company's financial statements. The Company also has a 22.2% investment in the Brandywine Portfolio and has a 49% JV interest in the Crossroads Shopping Center ("Crossroads") which are accounted for as unconsolidated investments in the Company's financial statements. (2) Funds I, II & III and the Mervyn's investments pay various fees to the Company. As it is the recipient of such fees, the Company does not recognize its pro-rata share of these expenses. (3) In addition to its pro-rata share of depreciation, the Company recognizes depreciation on its stepped-up basis in Crossroads. (4) In connection with the recapitalization of the Brandywine Portfolio in January 2006, the Company is entitled to $7.2 million of Promote from future Fund I earnings. (5) Includes majority-owned affiliates of which the minority share of NOI for the Kroger/Safeway Portfolio amounts to $2,085 on an annual basis ($7,363 x 37.78% x 75%) and $695 for the third quarter. ---------------------------------------------------------------------------------------------------- Current Quarter 3 months ended September 30, 2007 ---------------------------------------------------------------------------------------------------- Opportunity Funds ---------------------------------------------------------------------------------------------------- AKR 20% AKR 20% Promote Promote and AKR and 22.22% 22.22% Pro-rata Brandywine Pro-rata AKR Pro- AKR Pro- share Promote rata share rata share rata share Fund I (37.78)% 62.22% (4)Mervyns I (37.78)% Fund II 20.00% Mervyns II 20.00% Fund III ---------------------------------------------------------------------------------------------------- PROPERTY REVENUES Minimum rents $2,809 $1,061 $1,748 $- $- $2,269 $454 $- $- $- Percentage rents - - - - - - - - - - Expense reimbursements - CAM 113 43 70 - - 281 56 - - - Expense reimbursements - Taxes 171 65 106 32 6 - - Other property income 2 1 1 - - 99 20 - - - ---------------------------------------------------------------------------------------------------- 3,095 1,170 1,925 - - 2,681 536 - - - ---------------------------------------------------------------------------------------------------- PROPERTY EXPENSES Property operating - CAM 158 60 98 - - 301 60 - - - Other property operating (6) (2) (4) 410 82 - - 1 Real estate taxes 175 66 109 - - 317 63 - - - ---------------------------------------------------------------------------------------------------- 327 124 203 - - 1,028 205 - - 1 ---------------------------------------------------------------------------------------------------- 2,768 1,046 1,722 - - 1,653 331 - - (1) OTHER INCOME (EXPENSE) General and administrative (33) (12) (21) - - (114) (23) (1) - (119) 2,597 981 1,616 (86) (32) - - 4,279 856 - Interest income 103 39 64 2 1 200 40 3 1 1 - - - - - - - - - - Promote income - - - - - - - - - - Promote expense (1,227) - - 17 - - - - - - (2) (1) (1) - - (1,231) - - - (1,875) Straight-line rent income 254 96 158 - - 21 4 - - - Straight-line rents written off - - - - - - - - - - FAS 141 Rent (4) (2) (2) - - 84 17 - - - Provision for income taxes (2) (1) (1) - - - - - - - Swap termination income - - - - - - - - - - ---------------------------------------------------------------------------------------------------- EBIDTA 4,454 2,146 3,535 (67) (31) 613 369 4,281 857 (1,994) Depreciation and amortization (3) (1,611) (609) (1,002) - - (625) (125) - - - FAS 141 Amortization (1) - (1) - - (98) (20) - - - Interest expense (561) (212) (349) - - (1,180) (236) - - - Loan defeasance - - - - - - - - - - FAS 141 Interest 15 6 9 - - - - - - - - - - - - - - - - - Income before minority interest 2,296 1,331 2,192 (67) (31) (1,290) (12) 4,281 857 (1,994) Minority interest - OP - (27) (44) - 1 - - - (17) - Minority interest (123) (46) (77) - - 117 23 - - - ---------------------------------------------------------------------------------------------------- NET INCOME $2,173 $1,258 $2,071 $(67) $(30) $(1,173) $11 $4,281 $840 $(1,994) ==================================================================================================== --------------------------------------------------------------------------- Joint Ventures - Core Retail --------------------------------------------------------------------------- AKR Pro- Total AKR Pro- AKR Pro- Total rata share AKR Pro- rata share rata share AKR Pro- 20.00% rata shareBrandywine 22.22% Crossroads 49.00% rata Total --------------------------------------------------------------------------- PROPERTY REVENUES Minimum rents $- $3,263 3,922 $871 $1,519 $744 $1,615 Percentage rents - - 257 57 16 8 65 Expense reimbursements - CAM - 169 464 103 177 87 190 Expense reimbursements - Taxes 177 224 50 404 198 248 Other property income - 22 - - (9) (4) (4) --------------------------------------------------------------------------- - 3,631 4,867 1,081 2,107 1,033 2,114 --------------------------------------------------------------------------- PROPERTY EXPENSES Property operating - CAM - 218 707 157 188 92 249 Other property operating - 76 266 59 30 15 74 Real estate taxes - 238 277 62 455 223 285 --------------------------------------------------------------------------- - 532 1,250 278 673 330 608 --------------------------------------------------------------------------- - 3,099 3,617 803 1,434 703 1,506 OTHER INCOME (EXPENSE) General and administrative (24) (80) - - - - - - 3,421 - - - - - Interest income - 145 37 8 12 6 14 - - - - - - - Promote income - - - - - - - Promote expense - - - - - - - (2) (209) - - - - Straight-line rent income - 258 137 30 19 9 39 Straight-line rents written off - - - - - - - FAS 141 Rent - 13 155 34 - - 34 Provision for income taxes - (2) - - - - - Swap termination income - - - - - - - --------------------------------------------------------------------------- EBIDTA (24) 6,852 3,737 875 1,465 718 1,593 Depreciation and amortization (3) - (1,736) (878) (195) (104) (51) (246) FAS 141 Amortization - (21) - - - - - Interest expense - (797) (2,546) (566) (878) (430) (996) Loan defeasance - - - - - - - FAS 141 Interest - 15 - - - - - - - - - - - - Income before minority interest (24) 4,313 313 114 483 237 351 Minority interest - OP - (87) - - - (5) (5) Minority interest - (100) - - - - - --------------------------------------------------------------------------- NET INCOME $(24) $4,126 $313 $114 $483 $232 $346 =========================================================================== (1) Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The Company's investments in consolidated and unconsolidated joint ventures are reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items. In total, net income agrees with net income as reported in the Company's Form 10Q's and 10K for the corresponding periods. The Company currently invests in Funds I & II and Mervyn's which are consolidated with the Company's financial statements. The Company also has a 22.2% investment in the Brandywine Portfolio and has a 49% JV interest in the Crossroads Shopping Center ("Crossroads") which are accounted for as unconsolidated investments in the Company's financial statements. (2) Funds I, II & III and the Mervyn's investments pay various fees to the Company. As it is the recipient of such fees, the Company does not recognize its pro-rata share of these expenses. (3) In addition to its pro-rata share of depreciation, the Company recognizes depreciation on its increased basis in Crossroads. (4) In connection with the recapitalization of the Brandywine Portfolio in January 2006, the Company is entitled to $7.2 million of Promote from future Fund I earnings. (5) Includes majority-owned affiliates of which the minority share of NOI for the Kroger/Safeway Portfolio amounts to $695 on a quarterly basis ($7,363 x 37.78% x 25%). ---------------------------------------------------------------------------------------------------- Previous Quarter 3 months ended June 30, 2007 ---------------------------------------------------------------------------------------------------- Opportunity Funds ---------------------------------------------------------------------------------------------------- AKR 20% AKR 20% Promote Promote and AKR and 22.22% 22.22% Pro-rata Brandywine Pro-rata AKR Pro- AKR Pro- share Promote rata share rata share rata share Fund I (37.78)% 62.22% (4)Mervyns I (37.78)% Fund II 20.00% Mervyns II 20.00% Fund III ---------------------------------------------------------------------------------------------------- PROPERTY REVENUES Minimum rents $2,766 $1,045 $1,721 $- $- $2,233 $447 $- $- $- Percentage rents 3 1 2 - - - - - - - Expense reimbursements - CAM 116 44 72 - - 50 10 - - - Expense reimbursements - Taxes 121 46 75 - - 37 7 - - - Other property income 20 8 12 - - 48 10 - - - ---------------------------------------------------------------------------------------------------- 3,026 1,144 1,882 - - 2,368 474 - - - ---------------------------------------------------------------------------------------------------- PROPERTY EXPENSES Property operating - CAM 224 85 139 - - 350 70 - - - Other property operating 43 16 27 - - 394 79 - - - Real estate taxes 139 53 86 - - 288 58 - - - ---------------------------------------------------------------------------------------------------- 406 154 252 - - 1,032 207 - - - ---------------------------------------------------------------------------------------------------- 2,620 990 1,630 - - 1,336 267 - - - OTHER INCOME (EXPENSE) General and administrative (47) (18) (29) - - (52) (10) - - - (135) (51) (84) 1,155 436 (104) (21) 2,465 492 - Interest income 101 38 63 2 1 114 23 4 1 - - - - - - - - - - - Promote income - - - - - - - - - - Promote expense - - (231) - - - - - - (2) (1) (1) - - (1,200) - - - (938) Straight-line rent income 263 99 164 - - 25 5 - - - Straight-line rents written off - - - - - - - - - - FAS 141 Rent (4) (2) (2) - - (77) (15) - - - Provision for income taxes 1 - 1 (4) (2) - - (5) (1) - Swap termination income - - - - - - - - - - ---------------------------------------------------------------------------------------------------- EBIDTA 2,797 1,055 1,742 922 435 42 249 2,464 492 (938) Depreciation and amortization (3) (1,675) (633) (1,042) - - (625) (125) - - - FAS 141 Amortization (1) - (1) - - (76) (15) - - - Interest expense (561) (212) (349) - - (946) (189) - - - Loan defeasance - - - - - - - - - - FAS 141 Interest 15 6 9 - - - - - - - - - - - - - - - - - Income before minority interest 575 216 359 922 435 (1,605) (80) 2,464 492 (938) Minority interest - OP - (4) (7) - (9) - 2 - (10) - Minority interest (113) (43) (70) - - 120 24 - - - ---------------------------------------------------------------------------------------------------- NET INCOME $462 $169 $282 $922 $426 $(1,485) $(54) $2,464 $482 $(938) ==================================================================================================== --------------------------------------------------------------------------- Joint Ventures - Core Retail --------------------------------------------------------------------------- AKR Pro- Total AKR Pro- AKR Pro- Total rata share AKR Pro- rata share rata share AKR Pro- Brandywine 20.00% rata share JV 22.22% Crossroads 49.00% rata Total --------------------------------------------------------------------------- PROPERTY REVENUES Minimum rents $- $3,213 3,725 $828 $1,528 $750 $1,578 Percentage rents - 3 31 7 3 1 8 Expense reimbursements - CAM - 126 473 105 46 23 128 Expense reimbursements - Taxes - 128 240 53 433 212 265 Other property income - 30 10 2 17 8 10 --------------------------------------------------------------------------- - 3,500 4,479 995 2,027 994 1,989 --------------------------------------------------------------------------- PROPERTY EXPENSES Property operating - CAM - 294 674 149 143 70 219 Other property operating - 122 246 55 37 18 73 Real estate taxes - 197 240 53 452 221 274 ----------------------------------------------------------------- - 613 1,160 257 632 309 566 --------------------------------------------------------------------------- - 2,887 3,319 738 1,395 685 1,423 OTHER INCOME (EXPENSE) General and administrative - (57) - - - - - - 772 - - - - - Interest income - 126 26 6 16 8 14 - - - - - - - Promote income - - - - - - - Promote expense - - - - - - - (2) (227) - - - - Straight-line rent income - 268 127 28 - - 28 Straight-line rents written off - - - - - - - FAS 141 Rent - (19) 156 35 - - 35 Provision for income taxes - (2) - - - - - Swap termination income - - - - - - - --------------------------------------------------------------------------- EBIDTA - 3,973 3,401 807 1,411 693 1,500 Depreciation and amortization (3) - (1,800) (735) (163) (109) (53) (216) FAS 141 Amortization - (16) - - - - - Interest expense - (750) (2,519) (560) (869) (426) (986) Loan defeasance - - - - - - - FAS 141 Interest - 15 - - - - - - - - - - - - Income before minority interest - 1,422 147 84 433 214 298 Minority interest - OP - (28) - - - (4) (4) Minority interest - (89) - - - - - --------------------------------------------------------------------------- NET INCOME $- $1,305 $147 $84 $433 $210 $294 =========================================================================== (1) Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The Company's investments in consolidated and unconsolidated joint ventures are reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items. In total, net income agrees with net income as reported in the Company's Form 10Q's and 10K for the corresponding periods. The Company currently invests in Funds I & II and Mervyn's which are consolidated with the Company's financial statements. The Company also has a 22.2% investment in the Brandywine Portfolio and has a 49% JV interest in the Crossroads Shopping Center ("Crossroads") which are accounted for as unconsolidated investments in the Company's financial statements. (2) Funds I, II & III and the Mervyn's investments pay various fees to the Company. As it is the recipient of such fees, the Company does not recognize its pro-rata share of these expenses. (3) In addition to its pro-rata share of depreciation, the Company recognizes depreciation on its increased basis in Crossroads. (4) In connection with the recapitalization of the Brandywine Portfolio in January 2006, the Company is entitled to $7.2 million of Promote from future Fund I earnings. (5) Includes majority-owned affiliates of which the minority share of NOI for the Kroger/Safeway Portfolio amounts to $695 on a quarterly basis ($7,363 x 37.78% x 25%). ---------------------------------------------------------------------------------------------------- Previous Quarter 3 months ended March 31, 2007 ---------------------------------------------------------------------------------------------------- Opportunity Funds ---------------------------------------------------------------------------------------------------- AKR 20% AKR 20% Promote Promote and AKR and 22.22% 22.22% Pro-rata Brandywine Pro-rata AKR Pro- AKR Pro- share Promote rata share rata share rata share Fund I (37.78)% 62.22% (4)Mervyns I (37.78)% Fund II 20.00% Mervyns II 20.00% Fund III ---------------------------------------------------------------------------------------------------- PROPERTY REVENUES Minimum rents $2,790 $1,054 $1,736 $- $- $2,264 $453 $- $- $- Percentage rents - - - - - - - - - - Expense reimbursements - CAM 121 46 75 - - (4) (1) - - - Expense reimbursements - Taxes (7) (3) (4) - - (61) (12) - - Other property income 4 2 2 - - 7 1 - - - ---------------------------------------------------------------------------------------------------- 2,908 1,099 1,809 - - 2,206 441 - - - ---------------------------------------------------------------------------------------------------- PROPERTY EXPENSES Property operating - CAM 134 51 83 - - 360 72 - - - Other property operating 67 25 42 - - 290 58 - - Real estate taxes - - - - - 297 59 - - - ---------------------------------------------------------------------------------------------------- 201 76 125 - - 947 189 - - - ---------------------------------------------------------------------------------------------------- 2,707 1,023 1,684 - - 1,259 252 - - - OTHER INCOME (EXPENSE) General and administrative (73) (28) (45) - - (53) (11) - - - 20 (7) 12 - - (99) (20) 23,690 4,738 - Interest income 82 31 51 4 1 47 9 9 2 - - - - - - - - - - - Promote income - - - - - - - - - - Promote expense - - - - - - - - - - (2) (1) (1) - - (1,204) - - - - Straight-line rent income 276 104 172 - - 13 3 - - - Straight-line rents written off - - - - - - - - - - FAS 141 Rent (4) (2) (2) - - (134) (27) - - - Provision for income taxes (13) (5) (8) - - - - (1) - - Swap termination income - - - - - - - - - - ---------------------------------------------------------------------------------------------------- EBIDTA 2,993 1,115 1,863 4 1 (171) 206 23,698 4,740 - Depreciation and amortization (3) (1,638) (619) (1,019) - - (629) (126) - - - FAS 141 Amortization (1) - (1) - - (93) (19) - - - Interest expense (584) (206) (363) - - (865) (173) - - - Loan defeasance - - - - - - - - - - FAS 141 Interest 15 6 9 - - - - - - - - - - - - - - - - - Income before minority interest 785 296 489 4 1 (1,758) (112) 23,698 4,740 - Minority interest - OP - (6) (10) - 1 - 2 - (95) - Minority interest (113) (43) (70) - - 75 15 - - - ---------------------------------------------------------------------------------------------------- NET INCOME $672 $247 $409 $4 $2 $(1,683) $(95) $23,698 $4,645 $- ==================================================================================================== --------------------------------------------------------------------------- Joint Ventures - Core Retail --------------------------------------------------------------------------- AKR Pro- Total AKR Pro- AKR Pro- Total rata share AKR Pro- rata share rata share AKR Pro- Brandywine 20.00% rata share JV 22.22% Crossroads 49.00% rata Total --------------------------------------------------------------------------- PROPERTY REVENUES Minimum rents $- $3,243 3,690 $820 $1,505 $737 $1,558 Percentage rents - - 146 32 - - 32 Expense reimbursements - CAM - 120 570 127 217 106 233 Expense reimbursements - Taxes - (19) 135 30 317 155 185 Other property income - 5 13 3 3 1 4 --------------------------------------------------------------------------- - 3,349 4,554 1,012 2,042 999 2,012 --------------------------------------------------------------------------- PROPERTY EXPENSES Property operating - CAM - 206 832 185 207 101 286 Other property operating 125 185 41 10 5 46 Real estate taxes - 59 244 54 433 212 266 --------------------------------------------------------------------------- - 390 1,261 280 650 318 598 --------------------------------------------------------------------------- - 2,959 3,293 732 1,392 681 1,414 OTHER INCOME (EXPENSE) General and administrative - (84) - - - - - - 4,723 - - - - - Interest income - 94 30 7 17 8 15 - - - - - - - Promote income - - - - - - - Promote expense - - - - - - - - (2) (220) - - - - Straight-line rent income - 279 129 29 7 3 32 Straight-line rents written off - - - - - - - FAS 141 Rent - (31) 155 34 - - 34 Provision for income taxes - (13) - - - - - Swap termination income - - - - - - - --------------------------------------------------------------------------- EBIDTA - 7,925 3,387 802 1,416 692 1,495 Depreciation and amortization (3) - (1,764) (763) (170) (107) (52) (222) FAS 141 Amortization - (20) - - - - - Interest expense - (742) (2,491) (511) (859) (421) (932) Loan defeasance - - - - - - - FAS 141 Interest - 15 - - - - - - - - - - - - Income before minority interest - 5,414 133 121 450 219 341 Minority interest - OP - (108) - - - (4) (4) Minority interest - (98) - - - - - --------------------------------------------------------------------------- NET INCOME $- $5,208 $133 $121 $450 $215 $337 ===========================================================================
(1) Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The Company's investments in consolidated and unconsolidated joint ventures are reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items. In total, net income agrees with net income as reported in the Company's Form 10Q's and 10K for the corresponding periods. The Company currently invests in Funds I & II and Mervyn's which are consolidated with the Company's financial statements. The Company also has a 22.2% investment in the Brandywine Portfolio and has a 49% JV interest in the Crossroads Shopping Center ("Crossroads") which are accounted for as unconsolidated investments in the Company's financial statements. (2) Funds I, II & III and the Mervyn's investments pay various fees to the Company. As it is the recipient of such fees, the Company does not recognize its pro-rata share of these expenses. (3) In addition to its pro-rata share of depreciation, the Company recognizes depreciation on its increased basis in Crossroads. (4) In connection with the recapitalization of the Brandywine Portfolio in January 2006, the Company is entitled to $7.2 million of Promote from future Fund I earnings. (5) Includes majority-owned affiliates of which the minority share of NOI for the Kroger/Safeway Portfolio amounts to $695 on quarterly basis ($7,363 x 37.78% x 25%). 7
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Income Statements - Current v. Prior Year(1) - -------------------------------------------- (in thousands) ---------------------------------------------------------------------- Current Quarter 3 months ended September 30, 2007 ---------------------------------------------------------------------- Core Opportunity Discontinued Retail Funds Residential Operations Total ---------------------------------------------------------------------- PROPERTY REVENUES Minimum rents $13,758 $2,736 $1,672 $527 $18,693 Percentage rents 187 - - - 187 Expense reimbursements - CAM 1,495 102 - 67 1,664 Expense reimbursements - Taxes 2,225 74 - 103 2,402 Other property income 149 22 179 - 350 ---------------------------------------------------------------------- 17,814 2,934 1,851 697 23,296 ---------------------------------------------------------------------- PROPERTY EXPENSES Property operating - CAM 2,119 145 - 73 2,337 Other property operating 621 129 1,333 (53) 2,030 Real estate taxes 2,497 160 96 78 2,831 ---------------------------------------------------------------------- 5,237 434 1,429 98 7,198 ---------------------------------------------------------------------- NET OPERATING INCOME - PROPERTIES 12,577 2,500 422 599 16,098 OTHER INCOME (EXPENSE) General and administrative (5,837) (80) - - (5,917) Equity in earnings of Fund I unconsolidated properties - 3,421 - - 3,421 Interest income 2,386 145 5 - 2,536 Asset and property management income 5,521 - - - 5,521 Promote income - - - - - Promote expense - - - - - Property management expense (31) 42 (37) (44) (70) Straight-line rent income 302 249 - 9 560 Straight-line rents written off 126 - - - 126 FAS 141 Rent (215) 13 - - (202) Provision for income taxes (316) (2) - - (318) Other income (expense) - - - - - ---------------------------------------------------------------------- EBIDTA 14,513 6,288 390 564 21,755 Depreciation and amortization (4,158) (1,649) (369) (87) (6,263) FAS 141 Amortization (144) (21) - - (165) Interest expense (5,250) (574) (300) (223) (6,347) Loan defeasance - - - - - FAS 141 Interest 20 - - 15 35 Gain (loss) on sale of properties (Mervyns) - - - (241) (241) ---------------------------------------------------------------------- Income before minority interest 4,981 4,044 (279) 28 8,774 Minority interest - OP (107) (86) 6 (1) (188) Minority interest 4 (100) - - (96) ---------------------------------------------------------------------- NET INCOME $4,878 $3,858 $(273) $27 $8,490 ====================================================================== ---------------------------------------------------------------------- Prior Year Quarter 3 months ended September 30, 2006 ---------------------------------------------------------------------- Core Opportunity Discontinued Retail Funds Residential Operations Total ---------------------------------------------------------------------- PROPERTY REVENUES Minimum rents $12,166 $2,647 $1,782 $2,099 $18,694 Percentage rents 191 113 - 11 315 Expense reimbursements - CAM 1,440 61 - 163 1,664 Expense reimbursements - Taxes 2,367 140 - 533 3,040 Other property income 65 1 83 134 283 ---------------------------------------------------------------------- 16,229 2,962 1,865 2,940 23,996 ---------------------------------------------------------------------- PROPERTY EXPENSES Property operating - CAM 1,825 115 - 333 2,273 Other property operating 507 74 1,057 378 2,016 Real estate taxes 2,234 242 99 472 3,047 ---------------------------------------------------------------------- 4,566 431 1,156 1,183 7,336 ---------------------------------------------------------------------- NET OPERATING INCOME - PROPERTIES 11,663 2,531 709 1,757 16,660 OTHER INCOME (EXPENSE) General and administrative (5,572) (102) - - (5,674) Equity in earnings of Fund I unconsolidated properties - 57 - - 57 Interest income 2,099 131 5 - 2,235 Asset and property management income 3,756 - - - 3,756 Promote income - - - - - Promote expense - - - - - Property management expense 27 151 (41) (80) 57 Straight-line rent income 61 85 - 52 198 Straight-line rents written off - - - - - FAS 141 Rent (87) (45) - - (132) Provision for income taxes 664 (16) - - 648 Other income (expense) - - - - - ---------------------------------------------------------------------- EBIDTA 12,611 2,792 673 1,729 17,805 Depreciation and amortization (3,685) (1,606) (380) (550) (6,221) FAS 141 Amortization (242) (41) - - (283) Interest expense (4,583) (614) (365) (468) (6,030) Loan defeasance - - - - - FAS 141 Interest 23 - - 15 38 Gain (loss) on sale of properties (Mervyns) - (934) - - (934) ---------------------------------------------------------------------- Income before minority interest 4,124 (403) (72) 726 4,375 Minority interest - OP (84) 8 1 (14) (89) Minority interest (62) (102) - - (164) ---------------------------------------------------------------------- NET INCOME $3,978 $(497) $(71) $712 $4,122 ====================================================================== (1) Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The Company's investments in consolidated and unconsolidated joint ventures are reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items. In total, net income agrees with net income as reported in the Company's Form 10Q's and 10K for the corresponding periods. The Company currently invests in Funds I, II & III and Mervyn's which are consolidated with the Company's financial statements. The Company also has a 22.2% investment in the Brandywine Portfolio and has a 49% JV interest in the Crossroads Shopping Center ("Crossroads") which are accounted for as unconsolidated investments in the Company's financial statements. ---------------------------------------------------------------------- Current Year-to-Date Period ended September 30, 2007 ---------------------------------------------------------------------- Core Opportunity Discontinued Retail Funds Residential Operations Total ---------------------------------------------------------------------- PROPERTY REVENUES Minimum rents $40,250 $8,166 $5,273 $1,553 $55,242 Percentage rents 507 3 - - 510 Expense reimbursements - CAM 4,356 238 - 177 4,771 Expense reimbursements - Taxes 6,091 75 - 211 6,377 Other property income 295 38 459 19 811 ---------------------------------------------------------------------- 51,499 8,520 5,732 1,960 67,711 ---------------------------------------------------------------------- PROPERTY EXPENSES Property operating - CAM 6,652 475 - 243 7,370 Other property operating 1,515 364 3,267 (41) 5,105 Real estate taxes 6,849 273 273 221 7,616 ---------------------------------------------------------------------- 15,016 1,112 3,540 423 20,091 ---------------------------------------------------------------------- NET OPERATING INCOME - PROPERTIES 36,483 7,408 2,192 1,537 47,620 OTHER INCOME (EXPENSE) General and administrative (17,501) (221) - - (17,722) Equity in earnings of Fund I unconsolidated properties - 8,922 - - 8,922 Interest income 7,315 365 15 - 7,695 Asset and property management income 11,850 - - - 11,850 Promote income - - - - - Promote expense - - - - - Property management expense (94) 93 (121) (99) (221) Straight-line rent income 1,063 753 - 52 1,868 Straight-line rents written off (20) - - - (20) FAS 141 Rent (404) (37) - - (441) Provision for income taxes (2,577) (17) - - (2,594) Other income (expense) 165 - - - 165 ---------------------------------------------------------------------- EBIDTA 36,280 17,266 2,086 1,490 57,122 Depreciation and amortization (12,259) (5,037) (1,118) (263) (18,677) FAS 141 Amortization (384) (57) - - (441) Interest expense (15,534) (1,613) (892) (676) (18,715) Loan defeasance (426) - - - (426) FAS 141 Interest 47 - - 45 92 Gain (loss) on sale of properties (Mervyns) - - - (241) (241) ---------------------------------------------------------------------- Income before minority interest 7,724 10,559 76 355 18,714 Minority interest - OP (197) (216) (1) (7) (421) Minority interest 237 (287) - - (50) ---------------------------------------------------------------------- NET INCOME $7,764 $10,056 $75 $348 $18,243 ====================================================================== ---------------------------------------------------------------------- Prior Year-to-Date Period ended September 30, 2006 ---------------------------------------------------------------------- Core Opportunity Discontinued Retail Funds Residential Operations Total ---------------------------------------------------------------------- PROPERTY REVENUES Minimum rents $36,050 $7,853 $5,529 $6,229 $55,661 Percentage rents 506 114 - 54 674 Expense reimbursements - CAM 4,762 117 - 698 5,577 Expense reimbursements - Taxes 6,270 301 - 1,595 8,166 Other property income 204 8 328 179 719 ---------------------------------------------------------------------- 47,792 8,393 5,857 8,755 70,797 ---------------------------------------------------------------------- PROPERTY EXPENSES Property operating - CAM 5,693 294 - 1,007 6,994 Other property operating 1,442 230 2,858 850 5,380 Real estate taxes 6,355 643 314 1,788 9,100 ---------------------------------------------------------------------- 13,490 1,167 3,172 3,645 21,474 ---------------------------------------------------------------------- NET OPERATING INCOME - PROPERTIES 34,302 7,226 2,685 5,110 49,323 OTHER INCOME (EXPENSE) General and administrative (15,377) (226) - - (15,603) Equity in earnings of Fund I unconsolidated properties - 212 - - 212 Interest income 5,638 344 13 - 5,995 Asset and property management income 8,825 (5) - - 8,820 Promote income 258 - - - 258 Promote expense - - - - - Property management expense 98 75 (112) (261) (200) Straight-line rent income 428 274 - 147 849 Straight-line rents written off - - - - - FAS 141 Rent (31) (135) - - (166) Provision for income taxes (111) (51) - - (162) Other income (expense) 165 - - - 165 ---------------------------------------------------------------------- EBIDTA 34,195 7,714 2,586 4,996 49,491 Depreciation and amortization (10,835) (4,816) (1,133) (1,666) (18,450) FAS 141 Amortization (553) (124) - - (677) Interest expense (12,788) (1,841) (1,094) (1,363) (17,086) Loan defeasance (326) - - - (326) FAS 141 Interest 759 1 - 44 804 Gain (loss) on sale of properties (Mervyns) - 315 - - 315 ---------------------------------------------------------------------- Income before minority interest 10,452 1,249 359 2,011 14,071 Minority interest - OP (215) (24) (8) (40) (287) Minority interest (184) (277) - - (461) ---------------------------------------------------------------------- NET INCOME $10,053 $948 $351 $1,971 $13,323 ----------------------------------------------------------------------
(1) Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The Company's investments in consolidated and unconsolidated joint ventures are reflected separately for revenues and expenses by calculating it's pro-rata share for each of the above line items. In total, net income agrees with net income as reported in the Company's Form 10Q's and 10K for the corresponding periods. The Company currently invests in Funds I, II & III and Mervyn's which are consolidated with the Company's financial statements. The Company also has a 22.2% investment in the Brandywine Portfolio and has a 49% JV interest in the Crossroads Shopping Center ("Crossroads") which are accounted for as unconsolidated investments in the Company's financial statements. 8
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Net Operating Income (NOI) - Same Property Performance (1) - ---------------------------------------------------------- (in thousands) Growth in Same Growth in Same Property NOI - Property NOI - Continuing Continuing Operations Operations Notes: Current Quarter Historical Favorable Current Year- Historical Favorable Quarter (unfavorable) to-Date Year-to-Date (unfavorable) ------------------------------------------------------- --------------------------------------------- 3 months ended 3 months ended Year ended Year ended Reconciliation of total September 30, September 30, September 30, September 30, NOI to same property NOI: 2007 2006 2007 2006 ------------------------------ ------------------------------ NOI - Core Retail properties $12,577 $11,663 $36,483 $34,302 NOI - Opportunity Fund properties 2,500 2,531 7,408 7,226 NOI - Residential properties 422 709 2,192 2,685 NOI - Discontinued Operations 599 1,757 1,537 5,110 Adjustment to reflect 2006 increase in Fund I ownership percentage (2) (1,286) (1,197) (3,921) (3,403) ------------------------------ ------------------------------ Total NOI 14,812 15,463 43,699 45,920 NOI - Properties Acquired (841) (171) (2,882) (322) NOI - Property sold or held for sale (599) (1,757) (1,537) (5,110) NOI - non recurring transactions 47 (106) 231 (259) ------------------------------ ------------------------------ $13,419 $13,429 -0.1% $39,511 $40,229 -1.8% ============================================= ============================================= Same property NOI by portfolio component and revenues/expenses: Core Retail Properties Core Retail Properties Revenues $16,528 $15,963 3.5% $47,779 $47,279 1.1% Expenses 4,766 4,444 -7.2% 14,028 13,220 -6.1% --------------------------------------------- --------------------------------------------- 11,762 11,519 2.1% 33,751 34,059 -0.9% --------------------------------------------- --------------------------------------------- Opportunity Fund Properties Opportunity Fund Properties Revenues 1,470 1,471 -0.1% 4,274 4,304 -0.7% Expenses 235 270 13.0% 706 819 13.8% --------------------------------------------- --------------------------------------------- 1,235 1,201 2.8% 3,568 3,485 2.4% --------------------------------------------- --------------------------------------------- Total Core Retail and Opportunity Funds NOI 12,997 12,720 2.2% 37,319 37,544 -0.6% ------------------------------ ------------------------------ Residential Properties (2 Residential Properties (2 properties) properties) Revenues 1,851 1,865 -0.8% 5,732 5,857 -2.1% Expenses 1,429 1,156 -23.6% 3,540 3,172 -11.6% --------------------------------------------- --------------------------------------------- 422 709 -40.5% 2,192 2,685 -18.4% --------------------------------------------- --------------------------------------------- $13,419 $13,429 -0.1% $39,511 $40,229 -1.8% ============================================= =============================================
(1) The above amounts includes the pro-rata activity related to the Company's consolidated and unconsolidated joint ventures. (2) As a result of the recapitalization of the Brandywine Portfolio which enabled the Fund I investors to receive all of their invested capital and preferred return, the Company is entitled to receive a 20% promote interest. Accordingly, Acadia's effective ownership interest is now 38% [20% + (80% x 22%)]. The Company is entitled to $7.2 million Promote on future Fund I earnings and currently receives 100% of Fund I income until it has been repaid. Once repaid, the Company's share will return to 38%. 2007 and 2006 NOI from Fund I has been adjusted from 100% down to 38% for comparability. 9
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Funds from Operations ("FFO")(1) 2007 2006 - ------------------------- ----------------------------------------------------- ------------------------------ Current Current Previous Previous Historic Historic Year-to-Date Quarter Quarter Quarter Year-to-Date Quarter Period ended 3 months 3 months 3 months Period ended 3 months ended ended ended ended Funds from operations Notes September 30, September June 30, March 31, September 30, September 30, ("FFO"): 2007 30, 2007 2007 2007 2006 2006 - -------------------------- -------------- ----------- ------------ ------------- ------------- ---------------- Net Income $18,243 $8,490 $3,034 $6,719 $13,323 $4,122 Add back: Depreciation of real estate and amortization of leasing costs: (net of minority interest share) Wholly owned and consolidated subsidiaries 13,825 3,870 5,158 4,797 15,255 4,928 Unconsolidated subsidiaries 1,337 349 513 475 1,247 397 Income attributable to OP units (2) 416 188 84 144 287 89 Loss (gain) on sale of properties 241 241 - - (437) 394 Extraordinary item (net of minority interests' share and income taxes) (3,677) (794) - (2,883) - - Distributions on Preferred OP Units 18 5 5 8 188 63 -------------- ----------- ------------ ------------- ------------- ---------------- FFO 30,403 12,349 8,794 9,260 29,863 9,993 Extraordinary item (net of minority interests' share and income taxes) (4) 3,677 794 - 2,883 - - -------------- ----------- ------------ ------------- ------------- ---------------- FFO - adjusted for extraordinary item (4) $34,080 $13,143 $8,794 $12,143 $29,863 $9,993 ============== =========== ============ ============= ============= ================ Adjusted Funds from operations ("AFFO"): - ----------------------- Diluted FFO $34,080 $13,143 $8,794 $12,143 $29,863 $9,993 Straight line rent, net (1,868) (560) (605) (703) 473 (863) Non real estate depreciation 523 186 173 164 351 117 Amortization of finance costs 1,250 428 358 464 625 193 Amortization of cost of management contracts 550 171 206 173 735 272 Tenant improvements (586) (25) (98) (463) (1,216) (466) Leasing commissions (364) (173) (119) (72) (607) (202) Capital expenditures (3,179) (1,757) (441) (981) (2,825) (736) -------------- ----------- ------------ ------------- ------------- ---------------- AFFO $30,406 $11,413 $8,268 $10,725 $27,399 $8,308 ============== =========== ============ ============= ============= ================ Funds Available for Distribution ("FAD") - ----------------------- AFFO $30,406 $11,413 $8,268 $10,725 $27,399 $8,308 Scheduled prinicpal repayments (2,170) (627) (711) (832) (2,995) (1,027) -------------- ----------- ------------ ------------- ------------- ---------------- FAD $28,236 $10,786 $7,557 $9,893 $24,404 $7,281 ============== =========== ============ ============= ============= ================ Total weighted average shares and OP Units: Basic 33,548 33,629 33,599 33,414 33,156 33,156 ============== =========== ============ ============= ============= ================ Diluted 33,965 33,979 33,894 34,113 33,791 33,815 ============== =========== ============ ============= ============= ================ FFO per share: FFO per share - Basic (3) $1.02 $0.39 $0.26 $0.36 $0.90 $0.30 ============== =========== ============ ============= ============= ================ FFO per share - Diluted (3) $1.00 $0.39 $0.26 $0.36 $0.88 $0.30 ============== =========== ============ ============= ============= ================ AFFO per share - Basic (3) $0.91 $0.34 $0.25 $0.32 $0.82 $0.25 ============== =========== ============ ============= ============= ================ AFFO per share - Diluted (3) $0.90 $0.34 $0.24 $0.31 $0.81 $0.25 ============== =========== ============ ============= ============= ================ FAD per share - Basic (3) $0.84 $0.32 $0.22 $0.30 $0.73 $0.22 ============== =========== ============ ============= ============= ================ FAD per share - Diluted (3) $0.83 $0.32 $0.22 $0.29 $0.72 $0.22 ============== =========== ============ ============= ============= ================
(1) Quarterly results are unaudited, although they reflect all adjustments, which in the opinion of management are necessary for a fair presentation of operating results for the interim periods. (2) Reflects OP Unitholders interest in OP net income. (3) Assumes full conversion of O.P. Units into Common Shares. Diluted FFO assumes conversion of Preferred O.P. Units as well as assumed exercise of outstanding share options. Quarterly Preferred OP Unit distributions are added back for the purposes of calculating diluted FFO. Refer to "Market Capitalization" for weighted-average basic and diluted shares. (4) The extraordinary item represents the Company's share of estimated extraordinary gain related to its investment in Albertson's. The Albertson's entity has recorded an extraordinary gain in connection with the allocation of purchase price to assets acquired. The Company considers this as an investment in an operating business as opposed to real estate. Accordingly, all gains and losses from this investment are included in FFO. 10
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Capital Expenditures - -------------------- Year-to-Date Current Previous Previous Quarter Quarter Quarter ----------------------------------------- Period 3 months 3 months 3 months ended ended ended ended September 30, 2007 September 30, 2007 June 30, 2007 March 31, 2007 -------------------- -------------------- -------------------- -------------------- Leasing Commissions: $364 $173 $119 $72 -------------------- -------------------- -------------------- -------------------- Tenant Improvements: 586 25 98 463 -------------------- -------------------- -------------------- -------------------- Capital Expenditures: Retail 2,714 1,435 370 909 Residential 465 322 71 72 -------------------- -------------------- -------------------- -------------------- 3,179 1,757 441 981 -------------------- -------------------- -------------------- -------------------- Redevelopments 11,638 7,364 2,801 1,473 -------------------- -------------------- -------------------- -------------------- Total $15,767 $9,319 $3,459 $2,989 ==================== ==================== ==================== ====================
11
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Consolidated Balance Sheets --------------------------- (in thousands) September 30, December 31, 2007 2006 -------------------- -------------------- ASSETS Real estate Land $172,932 $149,345 Buildings and improvements 532,768 483,894 Construction in progress 87,470 39,085 -------------------- -------------------- 793,170 672,324 Less: accumulated depreciation (156,190) (140,485) -------------------- -------------------- Net real estate 636,980 531,839 Cash and cash equivalents 127,956 139,571 Cash in escrow 12,070 7,510 Restricted Cash 552 549 Investments in and advances to unconsolidated affiliates 37,388 31,049 Rents receivable, net of $2,087 and $2,343 allowance, respectively 5,704 7,190 Straight-line rents receivable, net of $910 allowance 5,121 4,704 Notes Receivable 36,116 38,322 Prepaid expenses 4,137 1,840 Deferred charges, net 20,596 20,816 Other assets 15,104 39,672 Acquired lease intangibles, net 16,734 11,653 Net assets of discontinued operations 16,537 16,977 -------------------- -------------------- $934,995 $851,692 ==================== ==================== LIABILITIES AND SHAREHOLDERS' EQUITY Mortgage notes payable $488,993 $435,192 Acquired lease intangibles, net 5,494 4,919 Accounts payable and accrued expenses 11,401 10,237 Dividends and distributions payable 6,666 6,661 Share of losses in excess of investment in unconsolidated affiliates 20,788 21,728 Other liabilities 9,816 5,561 Net liabilities of discontinued operations 12,331 12,538 -------------------- -------------------- Total liabilities 555,489 496,836 -------------------- -------------------- Minority interest in Operating Partnership 4,785 8,673 Minority interests in partially owned affiliates 129,135 105,064 -------------------- -------------------- Total minority interests 133,920 113,737 -------------------- -------------------- Shareholders' equity: Common shares 32 31 Additional paid-in capital 232,092 227,555 Accumulated other comprehensive loss (305) (234) Retained earnings 13,767 13,767 -------------------- -------------------- Total shareholders' equity 245,586 241,119 -------------------- -------------------- $934,995 $851,692 ==================== ====================
12
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Pro-rata Consolidated Balance Sheet - ----------------------------------- (in thousands) Consolidated Minority Company's Pro-Rata Balance Interest in Interest in Consolidated Sheet Consolidated Unconsolidated Balance As Reported (1) Subsidiaries Subsidiaries Sheet (2) ------------------------------------------------------------ ASSETS Real estate Land $172,932 $(58,817) $7,353 $121,468 Buildings and improvements 532,768 (101,282) 51,830 483,316 Construction in progress 87,470 (71,448) 114 16,136 -------------- -------------- -------------- --------------- 793,170 (231,547) 59,297 620,920 Less: accumulated depreciation (156,190) 21,844 (6,773) (141,119) -------------- -------------- -------------- --------------- Net real estate 636,980 (209,703) 52,524 479,801 Cash and cash equivalents 127,956 (8,800) 1,136 120,292 Cash in escrow 12,070 (6,041) 689 6,718 Restricted Cash 552 (23) 312 841 Investments in and advances to unconsolidated affiliates 37,388 (27,631) (6,353) 3,404 Rents receivable, net 5,704 (792) (89) 4,823 Straight-line rents receivable, net 5,121 1,603 1,282 8,006 Intercompany - - - Notes Receivable 36,116 (8) - 36,108 Prepaid expenses 4,137 (991) 409 3,555 Deferred charges, net 20,596 (5,020) 7,962 23,538 Other assets 15,104 16,433 6 31,543 Acquired lease intangibles 16,734 (3,781) 7 12,960 Assets of discontinued operations 16,537 (10,289) - 6,248 -------------- -------------- -------------- --------------- Total Assets $934,995 $(255,043) $57,885 $737,837 ============== ============== ============== =============== LIABILITIES AND SHAREHOLDERS' EQUITY Mortgage notes payable $488,052 (116,597) 73,126 $444,581 Valuation of debt at acquisition, net of amortization 941 (73) 1,450 2,318 Acquired lease intangibles 5,494 - - 5,494 Accounts payable and accrued expenses 11,401 781 3,202 15,384 Dividends and distributions payable 6,666 - - 6,666 Due to related parties - - - Share of losses in excess of inv. in unconsolidated affiliates 20,788 - (20,788) - Interest rate swap payable - - - - Other liabilities 9,816 (4,006) 895 6,705 Liabilities of discontinued operations 12,331 (7,672) - 4,659 -------------- -------------- -------------- --------------- Total liabilities 555,489 (127,567) 57,885 485,807 -------------- -------------- -------------- --------------- Minority interest in Operating Partnership 4,785 - - 4,785 Minority interests in partially owned affiliates 129,135 (127,476) - 1,659 -------------- -------------- -------------- --------------- Total minority interests 133,920 (127,476) - 6,444 -------------- -------------- -------------- --------------- Shareholders' equity: Common shares 32 - - 32 Additional paid-in capital 232,092 - - 232,092 Accumulated other comprehensive income (305) - - (305) Deficit 13,767 - - 13,767 -------------- -------------- -------------- --------------- Total shareholders' equity 245,586 - - 245,586 -------------- -------------- -------------- --------------- Total Liabilities and Shareholders' Equity $934,995 $(255,043) $57,885 $737,837 ============== ============== ============== ===============
Notes - ------------------------------------------------------------ (1) The interim consolidated balance sheet is unaudited, although it reflect all adjustments, which in the opinion of management, are necessary for the fair presentation of the consolidated balance sheet for the interim period. (2) The Company currently invests in Funds I, II & III and Mervyns I & II which are consolidated with the Company's financial statements. To provide investors with supplemental information, the Company's investments in these joint ventures are reflected above on a pro-rata basis by calculating it's ownership percentage for each of the above asset and liability line items. Similiarly, the above presentation also includes the Company's share of assets and liaiblities for unconsolidated investments which are accounted for under the equity method of accounting pursuant to GAAP. 13
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Selected Operating Ratios - --------------------------------------------- 3 months ended September 30, 9 months ended September 30, ----------------------------- ----------------------------- 2007 2006 2007 2006 ------------- --------- -------- --------- Coverage Ratios (1) ----------------------- Interest Coverage Ratio EBIDTA $21,755 $17,805 $57,122 $49,491 Divided by Interest expense 6,347 6,030 18,715 17,086 ------------- --------- -------- --------- 3.43 x 2.95x 3.05 x 2.90x Fixed Charge Coverage Ratio EBIDTA $21,755 $17,805 $57,122 $49,491 Divided by ( Interest expense 6,347 6,030 18,715 17,086 + Preferred Dividends) (2) 5 63 18 188 ------------- --------- -------- --------- 3.42 x 2.92x 3.05 x 2.87x Debt Service Coverage Ratio EBIDTA $21,755 $17,805 $57,122 $49,491 Divided by ( Interest expense 6,347 6,030 18,715 17,086 + Principal Amortization) 627 1,027 2,170 2,995 ------------- --------- -------- --------- 3.12 x 2.52x 2.74 x 2.46x Payout Ratios ---------------- FFO Payout Ratio Dividends (Shares) & Distributions (O.P. Units) paid $6,666 $6,196 $19,992 $18,392 FFO 13,143 9,993 34,080 29,863 ------------- --------- -------- --------- 51% 62% 59% 62% AFFO Payout Ratio Dividends (Shares) & Distributions (O.P. Units) paid $6,666 $6,196 $19,992 $18,392 AFFO 11,413 8,308 30,406 27,399 ------------- --------- -------- --------- 58% 75% 66% 67% FAD Payout Ratio Dividends (Shares) & Distributions (O.P. Units) paid $6,666 $6,196 $19,992 $18,392 FAD 10,786 7,281 28,236 24,404 ------------- --------- -------- --------- 62% 85% 71% 75% Leverage Ratios --------------- Debt/Total Market Capitalization Debt (3) $444,581 $367,599 Total Market Capitalization 1,335,094 1,198,344 ------------- --------- 33% 31% Debt + Preferred Equity (Preferred O.P. Units) $444,769 $371,787 Total Market Capitalization 1,335,094 1,198,344 ------------- --------- 33% 31%
Notes: (1) Quarterly results for 2007 and 2006 are unaudited, although they reflect all adjustments, which in the opinion of management, are necessary for a fair presentation of operating results for the interim periods. The coverage ratios include the Company's pro-rata share of EBIDTA, interest expense and principal amortization related to both the Company's consolidated and unconsolidated investments in joint ventures. (2) Represents preferred distributions on Preferred Operating partnership Units. (3) Includes the Company's pro-rata share of consolidated and unconsolidated joint venture debt and principal amortization. 14
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Portfolio Debt - Consolidated Summary Reconciliation from GAAP Debt to Pro-Rata Share of Debt (amounts in thousands) Acadia Add: Less: Acadia --------------- --------------- Consolidated Pro-rata Minority Pro-rata Interest Share Debt Share of of Share of Balance % of Total Unconsolidated Consolidated Outstanding % of Total As Reported (2) Portfolio Debt (3) Debt (4) Debt (5) Portfolio --------------- --------------- --------------- --------------- --------------- --------------- Mortgage Notes Payable Fixed-Rate Debt (1) $406,902 83% 68,293 (52,903) $422,292 95% Variable-Rate Debt (1) 81,150 17% 4,833 (63,694) 22,289 5% --------------- --------------- --------------- --------------- --------------- --------------- Total $488,052 100% $73,126 (116,597) $444,581 100% --------------- --------------- --------------- --------------- --------------- --------------- Weighted Average Interest Rate Fixed-Rate Debt 5.26% 5.25% Variable-Rate Debt 6.49% 6.50% --------------- --------------- Total 5.46% 5.31% --------------- ---------------
Notes ----------------------------- (1) Fixed-rate debt includes notional principal fixed through swap transactions. Conversely, variable-rate debt excludes this amount. (2) Represents the Mortgage Notes Payable balance as reported in the Company's Form 10-Q. Does not include $941of FAS141 purchase price debt allocation amounts. (3) Represents the Company's pro-rata share of unconsolidated partnership debt based on percent ownership. (4) Represents the Minority Interest pro-rata share of consolidated partnership debt based on its percent ownership. (5) Represents the Company's theoretical pro-rata share of debt after adjustments discussed in Notes 3 and 4. 15
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Debt Analysis - Consolidated Debt (amounts in thousands) Principal Acadia's Variable % of Pro- Ownership rata Balance at Pro-rata Interest Rate as of Maturity Share of September September Property Notes Entity Percent Lender Portfolio 30, 2007 Share Rate 30, 2007 Date - ---------------------------------------------------------------------------------------------------------------------------------- Fixed-Rate Debt - --------------- Acadia Realty Acadia 3.75% Convertible Trust 1 100.0% Notes $115,000 $115,000 3.75% 12/20/2011 Merrillville Acadia Bear Stearns Plaza Commercial Mortgage, 2 100.0% Inc. 26,250 26,250 5.88% 8/1/2017 GHT Apartments Acadia 100.0% Bank of America, N.A. 10,354 10,354 7.55% 1/1/2011 Colony Acadia Bank of America, N.A. Apartments 100.0% 5,177 5,177 7.55% 1/1/2011 239 Greenwich Acadia Wachovia Avenue 75.0% 26,000 19,500 5.42% 2/11/2017 New Loudon Acadia RBS Greenwich Capital Center 100.0% 14,800 14,800 5.64% 9/6/2014 Crescent Plaza Acadia 100.0% RBS Greenwich Capital 17,600 17,600 4.98% 9/6/2015 Pacesetter Park Acadia RBS Greenwich Capital Shopping Center 100.0% 12,500 12,500 5.12% 11/6/2015 Elmwood Park Acadia Bear Stearns Shopping Commercial Mortgage, Center 100.0% Inc. 34,600 34,600 5.53% 1/1/2016 Gateway Acadia Bear Stearns Shopping Commercial Mortgage, Center 100.0% Inc. 20,500 20,500 5.44% 3/1/2016 Clark-Diversey Acadia Lasalle Bank National 100.0% Association 3,741 3,741 8.50% 4/11/2028 Boonton Acadia GMAC Commercial 60.0% Mortgage Corporation 8,483 5,090 6.40% 11/1/2032 Chestnut Hill Acadia 100.0% Column Financial, Inc. 9,876 9,876 5.45% 6/11/2013 Walnut Hill Acadia Merrill Lynch Mortgage Plaza 100.0% Lending, Inc. 23,500 23,500 6.06% 8/29/2016 4650 Broadway Fund II Bank of China at Sherman Avenue 3 19.2% 19,000 3,648 5.83% 3/1/2008 216th Street 3 Fund II 19.2% Bank of America, N.A. 25,500 4,896 5.80% 10/1/2017 Kroger Fund I Cortlandt Deposit Portfolio 4 28.3% Corporation 4,950 1,403 6.62% 2/1/2009 Safeway Fund I Cortlandt Deposit Portfolio 4 28.3% Corporation 4,893 1,386 6.51% 1/15/2009 Interest rate Acadia Bank of America, N.A. Various swaps 5 24,178 24,178 6.30% -------------------- ---------- Sub-Total Fixed-Rate Debt 95% 406,902 353,999 5.16% -------------------- ---------- Variable-Rate Current LIBOR Debt 5.12% - --------------- Bloomfield Town Acadia Bank of America, N.A. Libor + Square 6 100.0% 125 6.37% 12/1/2010 Hobson West Acadia Bank of America, N.A. Libor + Plaza 6 100.0% 125 6.37% 12/1/2010 Marketplace of Acadia Bank of America, N.A. Libor + Absecon 6 100.0% 125 6.37% 12/1/2010 Village Acadia Bank of America, N.A. Libor + Apartments 6 100.0% - - 125 6.37% 12/1/2010 Abington Towne Acadia Bank of America, N.A. Libor + Center 6 100.0% 125 6.37% 12/1/2010 Methuen Acadia Bank of America, N.A. Libor + Shopping Center 6 100.0% 125 6.37% 12/1/2010 Town Line Plaza 6 Acadia 100.0% Bank of America, N.A. Libor + 140 6.52% 12/1/2010 Ledgewood Mall Acadia Washington Mutual Libor + 7 100.0% Bank, F.A. - - 125 6.37% 3/29/2010 Branch Plaza Acadia 100.0% Bank of America, N.A. 15,835 15,835 Libor + 130 6.42% 12/1/2011 Village Commons Acadia Bank of America, N.A. Libor + Shopping Center 8 100.0% 9,820 9,820 140 6.52% 6/29/2012 244-268 161st Fund II RBS Greenwich Capital Libor + Street 3 19.2% 30,000 5,760 140 6.52% 4/1/2008 Liberty Avenue Fund II PNC Bank, National Libor + 3 19.2% Association 9,822 1,886 165 6.77% 5/18/2009 Granville Fund I Bank One, N.A. Libor + Center 37.8% 2,851 1,077 200 7.12% 10/5/2007 400 East Fund II Bank of America Libor + Fordham Road 3 19.2% 18,000 3,456 175 6.87% 11/1/2007 Acadia Fund II Bank of America, N.A. Libor + Strategic / Bank of New York Opportunity Fund II, LLC 10 20.0% 19,000 3,800 75 5.87% 3/1/2008 Interest rate Acadia Bank of America, N.A. swaps 5 (24,178) (24,178) -------------------- Sub-Total Variable-Rate Debt 5% 81,150 17,456 Libor + 136 6.48% -------------------------------------------------- Total Consolidated Debt - Continuing Operations 100% $488,052 $371,455 5.23% =============================== ========== QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Debt Analysis - Unconsolidated Joint Ventures and Discontinued Operations Principal Acadia's Variable % of Pro- Ownership rata Balance at Pro-rata Interest Rate as of Maturity Share of September September Fixed-Rate Debt Entity Percent Lender Portfolio 30, 2007 Share Rate 30, 2007 Date - --------------- ---------------------------------------------------------------------- ------------------------------ Acadia Brandywine UBS Warburg Real Brandywine JV Estate Investments, Subsidiary 22.2% Inc. $61,375 $13,639 5.99% 7/1/2016 Acadia Brandywine Bear Stearns Brandywine JV Commercial Mortgage, Town Center 22.2% Inc. 31,550 7,011 5.99% 7/1/2016 Acadia Market Brandywine Bear Stearns Square JV Commercial Mortgage, Shopping Inc. Center 22.2% 24,375 5,417 5.99% 7/1/2016 Acadia Brandywine Bear Stearns Brandywine JV Commercial Mortgage, Condominium 22.2% Inc. 22,650 5,033 5.99% 7/1/2016 Acadia Brandywine Bear Stearns Brandywine JV Commercial Mortgage, Holdings 22.2% Inc. 26,250 5,833 5.99% 7/1/2016 Crossroads Crossroads JPMorgan Chase Bank Shopping JV Center 49.0% 64,000 31,360 5.37% 12/1/2014 -------------------- Sub-Total Fixed-Rate Debt 93% 230,200 68,293 5.71% -------------------- ---------- Variable-Rate Debt Current LIBOR 5.12% - --------------- CityPoint 9 Fund II 4.9% Bank of America, N.A. 34,000 1,652 Libor + 120 6.32% 6/13/2008 Haygood Fund I JP Morgan Chase Bank, Libor + Shopping N.A. Center 11 18.9% 11,366 2,148 150 6.62% 8/23/2010 Sterling Fund I JP Morgan Chase Bank, Libor + Heights N.A. Shopping Center 11 18.9% 5,471 1,033 185 6.97% 8/23/2010 -------------------- Sub-Total Libor + Variable-Rate Debt 7% 50,837 4,833 147 6.59% ------------------------------- ---------- Total Unconsolidated Debt 100% $281,037 $73,126 5.77% =============================== ========== - ---------------------------------------------------------------------------------------------------------------------------------- Discontinued Operations Properties held for sale: - --------------- Amherst Fund I The Ohio National Life Marketplace 37.8% Insurance Company 4,426 1,672 8.20% 6/1/2022 Sheffield Fund I Canada Life Insurance Crossing 37.8% Company 6,601 2,494 8.00% 1/1/2023 -------------------- Total Discontinued Operations $11,027 $4,166 ====================
Notes: - --------------- (1) Represents $100,000 of 3.75% convertible notes issued in December 2006 and an additional $15,000 issued in January, 2007. (2) On July 2, 2007, the Merrillville loan was refinanced with a $26,250 loan from Bear Sterns Commercial Mortgage, Inc. (3) Fund II is a 96% joint venture partner on this investment. As such, Acadia's pro-rata share of the above debt is 96% x 20%, or 19.2%. (4) AmCap, Fund I's joint venture partner on this investment, is allocated 25% of the debt and equity. As such Acadia's pro-rata share of the above debt is 75% x 37.78%, or 28.3%. (5) The Company has hedged a portion of it's variable- rate debt with variable to fixed-rate swap agreements as follows:
Forward Notional Start Maturity principal All-in Rate Spread Swap rate Date Date ---------------------------------------------------------------------- ---------- 4,568 6.07% 1.36% 4.71% n/a 1/1/2010 11,216 6.25% 1.36% 4.90% n/a 10/1/2011 8,394 6.50% 1.36% 5.14% n/a 3/1/2012 ---------- ------------------------------------------- $24,178 6.30% 1.36% 4.95% ========== ===========================================
(6) This is a revolving facility for up to $75,000 with an additional $13,000 available based on certain income hurdles. (7) This is a revolving facility for up to $30,000. (8) There is an additional $300 available under this facility through 12/08, with an additional $1,800 available thereafter based on certain income hurdles. (9) Fund II is a 22.57% % joint venture partner in CityPoint. As such, Acadia's pro-rata share of the above debt is 4.86%. (10) This is a revolving facility for up to $70,000. (11) Fund I is a 50% joint venture partner on this investment. As such, Acadia's pro-rata share of the above debt is 50% x 37.78%, or 18.9%. 16
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Future Debt Maturities - ----------------------------------- (in thousands) Weighted Average Interest Rate of Maturing Debt ----------------------------------------------- Consolidated Debt Scheduled Year Amortization Maturities Total Total Debt Fixed-Rate Debt Variable-Rate Debt - -------------------------------------------------------------------------------------------------------------- 2007 349 20,829 21,178 6.90% n/a 6.90% 2008 6,104 68,000 74,104 6.15% 5.83% 6.27% 2009 6,348 9,822 16,170 6.77% n/a 6.77% 2010 1,978 14,742 16,720 7.55% 7.55% n/a 2011 2,084 129,764 131,848 4.05% 3.75% 6.42% Thereafter 24,120 203,912 228,032 5.63% 5.59% 6.52% ---------------------------------------- $40,983 $447,069 $488,052 ======================================== Unconsolidated Debt(1) 2007 - - - n/a n/a n/a 2008 433 1,653 2,086 6.32% n/a 6.32% 2009 470 - 470 n/a n/a n/a 2010 487 3,153 3,640 6.73% n/a 6.73% 2011 508 - 508 n/a n/a n/a Thereafter 2,104 64,318 66,422 5.73% 5.73% n/a ---------------------------------------- $4,002 $69,124 $73,126 ========================================
17
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Acadia Strategic Opportunity Fund, LLC ("Fund I") - Overview - ------------------------------------------------------------------------------------------------------------------------ Item Notes Description - ------------------------------------------------------------------------------------------------------------------------ Date formed September 2001 Capital commitment $90 million Funding All invested capital has been returned with the proceeds from the Brandywine recapitalization as discussed below. Acadia and its investors still own approximately 2 million square feet of properties in Fund I. Partnership structure Equity Contribution: 22.22% - Acadia 77.78% - Four institutional investors (current significant shareholders in Acadia as well) Cash flow distribution: 22.22% - Acadia 77.78% - Four institutional investors Promote: 20% to Acadia once all partners (including Acadia) have received 9% preferred return and return of equity Remaining 80% is distributed to all the partners (including Acadia). In January 4, 2006, the Brandywine portfolio was recapitalized through the conversion of the 77.8% interest previously held by the institutional investors in Fund I to GDC Properties. Acadia has retained its existing 22.2% interest. Due to this transaction, Fund I investors received a return of all of their invested capital and preferred return, thus triggering Acadia's additional 20% interest (promote) in all future Fund I distributions. Fees to Acadia Priority distribution fee equal to 1.5% of implied capital ($46.3 million which excludes Acadia's equity) Priority distribution fee equal to 4% of gross property revenues Market rate leasing fees Construction/project management fees equal to the lesser of 7.5% of hard costs or allocable costs of Acadia
18
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Acadia Strategic Opportunity Fund II, LLC ("Fund II") - Overview - ------------------------------------------------------------------------------------------------------------------------ Item Notes Description - ------------------------------------------------------------------------------------------------------------------------ Date formed June 2004 Capital commitment $300 million Funding $182.0 funded through September 30, 2007 million Partnership structure Equity Contribution: 20% - Acadia 80% - Six institutional investors (Three are current shareholders in Acadia as well) Cash flow distribution: 20% - Acadia 80% - Six institutional investors Promote: 20% to Acadia once all partners (including Acadia) have received 8% preferred return and return of equity Remaining 80% is distributed to all the partners (including Acadia). Fees to Acadia Asset management fee equal to 1.5% of total committed capital (For the first 12 months, calculated on $200 million, thereafter on $240 million which excludes Acadia's $60 million) Property management fee equal to 4% of gross property revenues Market rate leasing fees Construction/project management fees equal to the lesser of 7.5% of hard costs or allocable costs of Acadia
19
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Acadia Strategic Opportunity Fund III, LLC ("Fund III") - Overview - ------------------------------------------------------------------------------------------------------------------------ Item Notes Description - ------------------------------------------------------------------------------------------------------------------------ Date formed May 2007 Capital commitment $500 million Funding $3.0 funded through September 30, 2007 million Partnership structure Equity Contribution: 20% - Acadia 80% - 13 institutional investors (including a majority of the investors from prior funds) Cash flow distribution: 20% - Acadia 80% - 13 institutional investors Promote: 20% to Acadia once all partners (including Acadia) have received 6% preferred return and return of equity Remaining 80% is distributed to all the partners (including Acadia). Fees to Acadia Asset management fee equal to 1.5% of total committed capital Development fee equal to 3% of total project cost Property management fee equal to 4% of gross property revenues Market rate leasing fees Construction/project management fees equal to the lesser of 7.5% of hard costs or allocable costs of Acadia
20
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Retailer Controlled Property ("RCP") Venture - Overview - ------------------------------------------------------------------------------------------------------------------------ *** Note - The RCP Venture is not a separate AKR Fund, rather it is a venture in which AKR, Funds I and II are anticipated to invest a total of $60 million equity. *** Item Notes Description - ------------------------------------------------------------------------------------------------------------------------ Date formed January 2004 Targeted investments The Venture has been formed to invest in surplus or distressed properties owned or controlled by retailers Current Investments Mervyns Department Stores - All capital has been returned Albertson's - All capital has been returned ShopKo - All capital has been returned Rex, Marsh Supermarkets and three Albertsons add-on investments, Newkirk and Camellia and Colorado Springs Partnership structure Equity Contribution: Up to $300 million of total equity Up to 20% ($60 million) - AKR Fund I ($20 million) and Fund II ($40 million) 80% - Klaff Realty LP and Lubert-Adler Cash flow distribution: 20% - AKR Funds 80% - Four institutional investors Promote: 20% to Klaff once all partners (including Klaff) have received 10% preferred return and return of equity (50% of first $40 million of AKR Fund equity is not subject to this promote) Remaining 80% is distributed to all the partners (including Klaff). Fees to Acadia Property management fees Market rate leasing fees and construction/project management
21
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Opportunity Fund I Properties - Detail - -------------------------------------- ------------------------------------------------------------------------------------------------------------------- Fund I's Annualized Base Rent Ownership Gross Leasable Area Occupancy Annualized Base Rent per Occupied Square Foot ---------------------------------------------------------------------------------------------------------- % Anchors Shops Total Anchors Shops Total Anchors Shops Total Anchors Shops Total =========---------------------------------------------------------------------------------------------------------- Midwest - --------------- Ohio - --------------- Amherst Marketplace (1) 100% 76,737 3,208 79,945 100.00%100.00%100.00% $851,195 $38,472 $889,667 $11.09 $11.99 $11.13 Granville Centre 100% 90,047 44,950 134,997 38.81% 46.74% 41.45% 450,336 212,750 663,086 12.88 10.13 11.85 Sheffield Crossing (1) 100% 69,659 42,875 112,534 100.00% 85.17% 94.35% 807,657 398,363 1,206,020 11.59 10.91 11.36 ---------------------------------------------------------------------------------------------------------- Total - Midwest Region 236,443 91,033 327,476 76.70% 66.72% 73.92% 2,109,188 649,585 2,758,773 11.63 10.69 11.40 ---------------------------------------------------------------------------------------------------------- Mid-Atlantic - --------------- Various - --------------- Kroger/Safeway Portfolio (25 Properties) 75% 1,018,100 -1,018,100 100.00% 0.00%100.00% 7,362,811 - 7,362,811 7.23 - 7.23 ---------------------------------------------------------------------------------------------------------- Haygood Shopping Center (Virginia) 50% 95,303 83,194 178,497 100.00% 84.24% 92.65% 636,207 1,121,943 1,758,150 6.68 16.01 10.63 ---------------------------------------------------------------------------------------------------------- New York - --------------- Tarrytown Shopping Center (New York) 100% 15,497 19,794 35,291 100.00% 73.44% 85.10% 475,000 439,319 914,319 30.65 30.22 30.44 ---------------------------------------------------------------------------------------------------------- Subtotal - Fund I Operating Properties 1,365,343194,0211,559,364 95.96% 74.92% 93.35% 10,583,206 2,210,847 12,794,053 8.08 15.21 8.79 ---------------------------------------------------------------------------------------------------------- Fund I Redevelopment Properties - --------------- Sterling Heights Shopping Center (Michigan) 50% 90,400 64,435 154,835 100.00% 32.44% 71.88% 526,600 150,859 677,459 5.83 7.22 6.09 Hitchcock Plaza (South Carolina) 20% 146,507 70,754 217,261 89.19% 65.18% 81.37% 884,310 682,973 1,567,283 6.77 14.81 8.87 ---------------------------------------------------------------------------------------------------------- Subtotal - Fund I Redevelopment Properties 236,907135,189 372,096 93.31% 49.58% 77.42% 1,410,910 833,832 2,244,742 6.38 12.44 7.79 ------------------------------------------------------------------------------------------------------------------- Fund I Grand Total 1,602,250329,2101,931,460 95.57% 64.51% 90.28%$11,994,116$3,044,679$15,038,795 $7.83 $14.34 $8.62 ----------------------------------------------------------------------------------------------------------
General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced. Tenants who comprise greater than 10% of a center's GLA are considered anchor tenants for the purposes of the above table. (1) Amherst Marketplace ands Sheffield Crossing are both under contract for sale. 22
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 FUND I Top Tenants - Ranked by Annualized Base Rent - -------------------------------------------- Percentage of Total Represented by Tenant ---------------------------------------- Number of Stores in Total Annualized Base Total Annualized Base Ranking Tenant JV Portfolio GLA Rent (1) Portfolio GLA( 2) Rent (2) - ---------------------------------------------------------------------------------------------------------------------------------- 1 Kroger (3) 12 413,100 $2,769,256 30.9% 25.8% 2 Safeway (4) 13 350,475 2,752,853 26.2% 25.7% 3 Giant Eagle 2 135,896 1,536,352 10.2% 14.3% 4 Walgreens 1 15,497 475,000 1.2% 4.4% ---------------------------------------------------------------------------------------------------- Total 28 914,968 $7,533,460 68.5% 70.2% ====================================================================================================
(1) Base rents do not include percentage rents (except where noted), additional rents for property expense reimbursements, and contractual rent escalations due after the date of this report. (2) Square footage and base rents for the Kroger/Safeway portfolio and other properties for which Fund I owns less than 100% are pro-rated to reflect the Funds partial ownership. (3) Kroger has sub-leased 4 of these locations to supermarket tenants, 2 locations to a non-supermarket tenant and ceased operations at one other location. Kroger is obligated to pay rent through the full term of all these leases which expire in 2009. Base rent as reflected above is net of 25% minority interest. (4) Safeway has sub-leased 7 of these locations to supermarket tenants, 1 location to a non-supermarket tenant and ceased operations at one other location. Safeway is obligated to pay rent through the full term of all these leases which expire in 2009. Base rent as reflected above is net of 25% minority interest. 23
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Fund I - Valuation **** As Of December 31, 2006 **** ---------------------------------------------------- Portfolio: Redevelopment Line Total Ohio Kroger/Safeway Properties(1) - ------ -------------------------------------------------- Net Operating Income ("NOI") for the 1 quarter ended December 31, 2006 $1,375 $529 $692 $154 Adjustments: To reflect full quarter of 2 consolidation of Tarrytown investment 63 - - 63 3 Adjust Kroger/Safeway Note 1 (128) - (128) - NOI related to investements in Note 2 4 unconsolidated partnerships 544 544 5 Adjustment for minority interests (413) - (141) (272) -------------- ---------------------------------------- 6 Adjusted quarterly NOI 1,441 529 423 489 7 Annualized NOI Line 6 x 4 5,763 2,116 1,691 1,956 8 Debt as of December 31, 2006 Note 3 29,679 13,878 7,382 8,419 Adjust for Kroger/Safeway and Note 1 9 intercompany debt (1,706) - (7,382) 5,676 -------------- ---------------------------------------- 10 Adjusted debt 27,973 13,878 - 14,095 6.00% 6.50% 7.00% 7.50% 8.00% ---------------------------------------------------------------- Gross asset value Line 7 x 11 cap rate $96,043 $88,655 $82,322 $76,834 $72,032 12 Adjusted debt (27,973) (27,973) (27,973) (27,973) (27,973) Additional value of investment in 13 Hitchcock 7,000 7,000 7,000 7,000 7,000 Remaining Equity and Accumulated 14 Preferred Distribution in Fund I (5) - - - - - ---------------------------------------------------------------- 15 75,070 67,682 61,349 55,861 51,059 Additional Mervyn's return (Original 16 capital already returned) 7,600 7,600 7,600 7,600 7,600 ---------------------------------------------------------------- 17 Total Value Subject to Promote 82,670 75,282 68,949 63,461 58,659 ---------------------------------------------------------------- General Partner (Acadia) Promote on x 20% 18 Fund I assets 16,534 15,056 13,790 12,692 11,732 ---------------------------------------------------------------- Remaining value to be allocated pro- rata to Fund I investors (including 19 Acadia) 66,136 60,225 55,159 50,769 46,927 ---------------------------------------------------------------- 20 Acadia's share x 22.22% 14,695 13,382 12,256 11,281 10,427 ---------------------------------------------------------------- Value of Acadia's interest in Line 18 + 21 remaining Fund I assets 20 31,229 28,438 26,046 23,973 22,159 Additional promote earned from Note 4 22 Brandywine recapitalization 7,500 7,500 7,500 7,500 7,500 ---------------------------------------------------------------- 23 Total value to Acadia $38,729 $35,938 $33,546 $31,473 $29,659 ================================================================ Original Acadia invested capital in 24 Fund I $10,774 $10,774 $10,774 $10,774 $10,774 ================================================================ Recap of Acadia Promote ------------------------------------------------------------------------------------------------------------------ 20% General Partner (Acadia) Promote on Fund I assets $16,534 $15,056 $13,790 $12,692 $11,732 20% General Partner (Acadia) Promote on Brandywine 7,500 7,500 7,500 7,500 7,500 ---------------------------------------------------------------- Total promote $24,034 $22,556 $21,290 $20,192 $19,232 ================================================================ Per share $0.72 $0.68 $0.64 $0.61 $0.58 ================================================================
Notes: - ------ (1) Adjusted for value based on projected net renewal NOI upon completion of original term in 2009 (2) Included in "Equity in earnings of Fund I unconsolidated properties" in the JV Statement of Operations in the December 31, 2006 Supplement. *T (3) See "Debt Analysis - Unconsolidated Debt (Joint Ventures)" in the December 31, 2006 Supplement. Amounts adjusted for minority interests' pro-rata share of debt (4) This promote is to be paid from future Fund I cash flows 24
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Opportunity Fund II Properties - Detail (2) - ----------------------- ------------------------------------------------------------------------------------------------------------------- Fund II's Annualized Base Rent Ownership Gross Leasable Area Occupancy Annualized Base Rent per Occupied Square Foot ---------------------------------------------------------------------------------------------------------- % Anchors Shops Total Anchors Shops Total Anchors Shops Total Anchors Shops Total ------------------------------------------------------------------------------------------------------------------- Midwest - --------------- Illinois - --------------- Oakbrook 100% 112,000 -112,000100.00% 0.00% 100.00% $825,000 $- $825,000 $7.37 $- $7.37 New York Region - --------------- New York - --------------- Liberty Avenue 96% - 17,088 17,088 0.00% 63.67% 63.67% - 394,944 394,944 - 36.30 36.30 216th Street 96% - 60,000 60,000 0.00% 100.00% 100.00% - 2,340,000 2,340,000 - 39.00 39.00 ---------------------------------------------------------------------------------------------------------- Subtotal - Fund II Operating Properties 112,000 77,088189,088100.00% 91.95% 96.72% 825,000 2,734,944 3,559,944 7.37 38.59 19.47 ---------------------------------------------------------------------------------------------------------- Fund II Redevelopment Properties - --------------- 400 East 96% Fordham Road (1) - - - - - - - - - - - - Pelham Manor 96% Shopping Center (1) - - - - - - - - - - - - Sherman Avenue 96% (1) - - - - - - - - - - - - 161st Street 96% 137,334 86,187223,521100.00% 100.00% 100.00% 3,337,222 1,998,888 5,336,110 24.30 23.19 23.87 ---------------------------------------------------------------------------------------------------------- Subtotal - Fund II Redevelopment Properties 137,334 86,187223,521100.00% 100.00% 100.00% 3,337,222 1,998,888 5,336,110 24.30 23.19 23.87 ------------------------------------------------------------------------------------------------------------------- Fund II Grand Total 249,334 163,275412,609100.00% 96.20% 98.50% $4,162,222 $4,733,832 $8,896,054 $16.69 $30.14 $21.89 ----------------------------------------------------------------------------------------------------------
General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced. (1) The properties are currently undergoing redevelopment. (2) Fund II has also invested in the following projects: CityPoint, a redevelopment project in downtown Brooklyn, NY and Atlantic Avenue, an urban/infill investment in Brooklyn, NY. Additionally, Fund II is under contract to purchase Canarsie Plaza in Brooklyn, NY. 25
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Fund II - New York Urban/Infill Redevelopment Properties - ------------------------------------------------------------ Total cost Estimated to date square (including Estimated Total footage Estimated cost Estimated start of Estimated acquisition future project upon per square Property Anchors/Tenants construction completion cost) cost cost completion foot Notes - ------------------------------------------------------------------------------------------------------------------------------------ (in millions) ---------- Liberty Avenue CVS, Storage Post Construction completed $14.0 $1.0 $15.0 125,000 120 (1) 216th Street City of New York Construction Department of completed General Services 27.0 - 27.0 60,000 450 Pelham Manor Home Depot Construction 2nd half 2008 Shopping Center commenced 27.5 17.5 45.0 320,000 141 (1) 161st Street Various New York 2nd half 2007 2nd half 2008 City and State Agencies 49.0 16.0 65.0 232,000 280 400 East Fordham Sears, Walgreens, Construction 1st half 2009 Road Best Buy commenced 50.7 69.3 120.0 285,000 421 Canarsie Plaza Home Depot 2nd half 2007 1st half 2009 21.1 48.9 70.0 323,000 217 (2) Sherman Avenue To be determined 2nd half 2007 2nd half 2009 27.5 27.5 55.0 175,000 314 CityPoint To be determined To be determined 34.0 291.0 325.0 600,000 542 Atlantic Avenue To be determined 2nd half 2008 2nd half 2009 7.5 15.5 23.0 110,000 209 --------------------------------------------------- $258.3 $486.7 $745.0 2,230,000 $334 ===================================================
(1)The Fund acquired a ground lease interest at this property. 26
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Retail Properties by Region - --------------------------- ------------------------------------------------------------------------------------------ Gross Leasable Area Occupancy ------------------------------------------------------------------------------------------ Anchors (1) Shops Total Anchors Shops Total ------------------------------------------------------------------------------------------ Core Properties - -------------------- New York Region 613,273 415,776 1,029,049 100.00% 94.13% 97.63% New England 890,812 306,033 1,196,845 100.00% 86.89% 96.65% Midwest 392,726 349,138 741,864 94.02% 87.01% 90.72% Mid-Atlantic 2,072,499 476,633 2,549,132 97.92% 74.58% 93.56% ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total Core Properties 3,969,310 1,547,580 5,516,890 98.32% 85.07% 94.60% ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Opportunity Fund Properties (2) - -------------------- Midwest 348,443 91,033 439,476 84.19% 66.72% 80.57% Mid-Atlantic 95,303 83,194 178,497 100.00% 84.24% 92.65% New York Region 15,497 96,882 112,379 100.00% 88.17% 89.80% Various (Kroger/Safeway Portfolio) 1,018,100 - 1,018,100 100.00% 0.00% 100.00% ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total - Opportunity Fund Properties 1,477,343 271,109 1,748,452 96.27% 79.76% 93.71% ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Redevelopment Properties - -------------------- Mid West 90,400 64,435 154,835 100.00% 32.44% 71.88% Mid-Atlantic 146,507 70,754 217,261 89.19% 65.18% 81.37% New York Region 137,334 86,187 223,521 100.00% 100.00% 100.00% ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total - Redevelopment Properties 374,241 221,376 595,617 95.77% 69.21% 85.90% ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Annualized Base Rent Annualized Base Rent per Occupied Square Foot ------------------------------------------------------------------------------------------ Anchors Shops Total Anchors Shops Totals ------------------------------------------------------------------------------------------ Core Properties - -------------------- New York Region $10,833,359 $13,565,347 $24,398,706 $17.66 $34.66 $24.29 New England 6,755,693 3,401,939 10,157,632 8.51 12.79 9.59 Midwest 3,247,906 5,798,820 9,046,726 8.80 19.09 13.44 Mid-Atlantic 20,377,788 6,434,911 26,812,698 10.89 18.10 12.04 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total Core Properties $41,214,746 $29,201,017 $70,415,762 $11.30 $22.18 $14.18 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Opportunity Fund Properties (2) - -------------------- Midwest 2,934,188 649,585 3,583,773 10.00 10.70 10.12 Mid-Atlantic 636,207 1,121,943 1,758,150 6.68 16.01 10.63 New York Region 475,000 3,174,263 3,649,263 30.65 37.16 36.16 Various (Kroger/Safeway Portfolio) 7,362,811 - 7,362,811 7.23 - 7.23 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total - Opportunity Fund Properties $11,408,206 $4,945,791 $16,353,997 $8.02 $22.87 $9.98 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Redevelopment Properties - -------------------- Mid West 526,600 150,859 677,459 5.83 7.22 6.09 Mid-Atlantic 884,310 682,973 1,567,283 6.77 14.81 8.87 New York Region 3,337,222 1,998,888 5,336,110 24.30 23.19 23.87 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total - Redevelopment Properties $4,748,132 $2,832,720 $7,580,852 $13.25 $18.49 $14.82 ------------------------------------------------------------------------------------------
General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced. Tenants who comprise greater than 10% of a center's GLA are considered anchor tenants for the purposes of the above table. (1) Anchor GLA includes a total of 254,916 square feet which is not owned by the Company. This square footage has been excluded for calculating annualized base rent per square foot. (2) Reference the "Properties - Detail" page in this supplemental report for additional information regarding the Company's percentage interest in the above individual Opportunity Fund properties. 27
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Retail Properties by State - Summary - ------------------------------------------------------- ---------------------------------------------------------------------------------------------------- Gross Leasable Area Occupancy ----------------------------------------------------------------- Ownership Percent ofNumber of base rent properties Anchors (2) Shops Total Anchors Shops Total % (1) ---------------------------------------------------------------------------------------------------- Core Properties - ------------------------------ Connecticut 75.0% 4.5% 2 179,993 43,197 223,190 100.00% 96.05% 99.24% Delaware 22.2% 5.5% 3 878,474 119,087 997,561 98.35% 91.21% 97.49% Illinois 100.0% 3.4% 2 51,692 66,475 118,167 100.00% 96.61% 98.09% Indiana 100.0% 4.3% 1 145,778 89,900 235,678 84.90% 90.37% 86.99% Massachusetts 100.0% 4.5% 2 281,366 66,796 348,162 100.00% 96.07% 99.25% Michigan 100.0% 4.9% 1 126,960 105,221 232,181 98.83% 96.61% 97.82% New Jersey 0.0% 17.0% 4 541,073 293,653 834,726 100.00% 79.15% 92.67% New York 0.0% 28.4% 10 735,577 320,065 1,055,642 100.00% 92.38% 97.69% Ohio 100.0% 2.6% 1 68,296 87,542 155,838 100.00% 64.74% 80.19% Pennsylvania 100.0% 8.5% 6 765,025 164,219 929,244 96.26% 69.88% 91.60% Rhode Island 100.0% 3.9% 1 121,892 162,825 284,717 100.00% 80.76% 89.00% Vermont 100.0% 3.0% 1 73,184 28,600 101,784 100.00% 84.38% 95.61% ------------------------------------------------------------------------------------- ----------------------------------------------------------------- Total - Core Properties 90.4% 34 3,969,310 1,547,580 5,516,890 98.32% 85.07% 94.60% ------------------------------------------------------------------------------------- ----------------------------------------------------------------- Opportunity Fund Properties(3) - ------------------------------ Operating Properties Illinois 20.0% 0.3% 1 112,000 - 112,000 100.00% 0.00% 100.00% Ohio 37.8% 1.7% 3 236,443 91,033 327,476 76.70% 66.72% 73.92% Virginia 18.9% 0.6% 1 95,303 83,194 178,497 100.00% 84.24% 92.65% New York 49.0% 1.5% 3 15,497 96,882 112,379 100.00% 88.17% 89.80% Various (Kroger/Safeway Portfolio) 28.3% 3.5% 25 1,018,100 - 1,018,100 100.00% 0.00% 100.00% --------------------------------------------------------------------------- ----------------------------------------------------------------- Total - Opportunity Fund Properties 7.5% 33 1,477,343 271,109 1,748,452 96.27% 79.76% 93.71% ------------------------------------------------------------------------------------- ----------------------------------------------------------------- Redevelopment Properties - ------------------------------ Michigan 18.9% 0.2% 1 90,400 64,435 154,835 100.00% 32.44% 71.88% New York 19.2% 1.7% 5 137,334 86,187 223,521 100.00% 100.00% 100.00% South Carolina 7.6% 0.2% 1 146,507 70,754 217,261 89.19% 65.18% 81.37% --------------------------------------------------------------------------- ----------------------------------------------------------------- Total - Redevelopment Properties 2.1% 7 374,241 221,376 595,617 95.77% 69.21% 85.90% ------------------------------------------------------------------------------------- 100.0% 74 ==================== ------------------------------------------------------------------------------------------ Annualized Base Rent Annualized Base Rent per Occupied Square Foot ------------------------------------------------------------------------------------------ Anchors Shops Total Anchors Shops Totals ------------------------------------------------------------------------------------------ Core Properties - ------------------------------ Connecticut $2,334,621 $689,923 $3,024,544 $28.23 $16.63 $24.36 Delaware 12,999,086 2,840,650 15,839,735 15.05 26.15 16.29 Illinois 225,436 1,790,525 2,015,961 4.36 27.88 17.39 Indiana 1,231,402 1,318,457 2,549,859 9.95 16.23 12.44 Massachusetts 1,964,975 742,184 2,707,159 6.98 11.57 7.83 Michigan 988,349 1,958,349 2,946,698 7.88 19.26 12.97 New Jersey 6,272,333 4,354,681 10,627,014 11.59 18.74 13.74 New York 8,745,764 11,248,820 19,994,584 11.89 38.04 19.39 Ohio 802,719 731,489 1,534,208 11.75 12.91 12.28 Pennsylvania 3,396,829 1,669,285 5,066,114 5.87 14.55 7.30 Rhode Island 935,920 1,372,082 2,308,002 7.68 10.43 9.11 Vermont 1,317,312 484,572 1,801,884 18.00 20.08 18.52 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total - Core Properties $41,214,746 $29,201,017 $70,415,762 $11.30 $22.18 $14.18 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Opportunity Fund Properties(3) - ------------------------------ Operating Properties Illinois $825,000 $- $825,000 $7.37 $- $7.37 Ohio 2,109,188 649,585 2,758,773 11.63 10.70 11.40 Virginia 636,207 1,121,943 1,758,150 6.68 16.01 10.63 New York 475,000 3,174,263 3,649,263 30.65 37.16 36.16 Various (Kroger/Safeway Portfolio) 7,362,811 - 7,362,811 7.23 - 7.23 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total - Opportunity Fund Properties $11,408,206 $4,945,791 $16,353,997 $8.02 $22.87 $9.98 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Redevelopment Properties - ------------------------------ Michigan $526,600 $150,859 $677,459 $5.83 $7.22 $6.09 New York 3,337,222 1,998,888 5,336,110 24.30 23.19 23.87 South Carolina 884,310 682,973 1,567,283 6.77 14.81 8.87 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total - Redevelopment Properties $4,748,132 $2,832,720 $7,580,852 $13.25 $18.49 $14.82 ------------------------------------------------------------------------------------------
General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced. Tenants who comprise greater than 10% of a center's GLA are considered anchor tenants for the purposes of the above table. (1) The Company's pro-rata share of base rent from joint venture properties has been included for the purpose of calculating percentage of base rent by state. (2) Anchor GLA includes a total of 254,916 square feet which is not owned by the Company. This square footage has been excluded for calculating annualized base rent per square foot. (3) Reference the "Properties - Detail" page in this supplemental report for additional information regarding the Company's percentage interest in the above individual Opportunity Fund properties. 28
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Retail Properties - Detail - --------------------------------- Gross Leasable Area Occupancy ------------------------------------------------------------------------------------------ Anchors Shops Total Anchors Shops Total ------------------------------------------------------------------------------------------ CORE PROPERTIES: Acadia's interest ---------- New York Region - -------------------- Connecticut - -------------------- 239 Greenwich Avenue(1) 75.0% 16,834 - 16,834 100.00% - 100.00% ------------------------------------------------------------------------------------------ New Jersey - -------------------- Elmwood Park Shopping Center 100.0% 62,610 86,881 149,491 100.00% 100.00% 100.00% A & P Shopping Plaza 60.0% 49,463 13,445 62,908 100.00% 100.00% 100.00% ------------------------------------------------------------------------------------------ Total - New Jersey 112,073 100,326 212,399 100.00% 100.00% 100.00% ------------------------------------------------------------------------------------------ New York - -------------------- Village Commons Shopping Center 100.0% 16,125 71,044 87,169 100.00% 97.85% 98.25% Branch Plaza 100.0% 74,050 51,701 125,751 100.00% 96.79% 98.68% Amboy Road 100.0% 46,964 13,126 60,090 100.00% 100.00% 100.00% Bartow Avenue 100.0% - 14,676 14,676 - 86.79% 86.79% Pacesetter Park Shopping Center 100.0% 52,052 44,646 96,698 100.00% 85.77% 93.43% 2914 Third Avenue 100.0% 43,500 - 43,500 100.00% - 100.00% West Shore Expressway 100.0% 51,494 - 51,494 100.00% - 100.00% West 54th Street 100.0% - 9,814 9,814 0.00% 72.76% 72.76% Crossroads Shopping Center 49.0% 200,181 110,443 310,624 100.00% 90.73% 96.70% ------------------------------------------------------------------------------------------ Total - New York 484,366 315,450 799,816 100.00% 92.27% 96.95% ------------------------------------------------------------------------------------------ Total - New York Region 613,273 415,776 1,029,049 100.00% 94.13% 97.63% ------------------------------------------------------------------------------------------ New England - -------------------- Connecticut - -------------------- Town Line Plaza(2) 100.0% 163,159 43,197 206,356 100.00% 96.05% 99.17% ------------------------------------------------------------------------------------------ Massachusetts - -------------------- Methuen Shopping Center 100.0% 124,381 5,640 130,021 100.00% 100.00% 100.00% Crescent Plaza 100.0% 156,985 61,156 218,141 100.00% 95.71% 98.80% ------------------------------------------------------------------------------------------ Total - Massachusetts 281,366 66,796 348,162 100.00% 96.07% 99.25% ------------------------------------------------------------------------------------------ New York - -------------------- New Loudon Center 100.0% 251,211 4,615 255,826 100.00% 100.00% 100.00% ------------------------------------------------------------------------------------------ Rhode Island - -------------------- Walnut Hill Plaza 100.0% 121,892 162,825 284,717 100.00% 80.76% 89.00% ------------------------------------------------------------------------------------------ Vermont - -------------------- The Gateway Shopping Center 100.0% 73,184 28,600 101,784 100.00% 84.38% 95.61% ------------------------------------------------------------------------------------------ Total - New England Region 890,812 306,033 1,196,845 100.00% 86.89% 96.65% ------------------------------------------------------------------------------------------ - -------------------------------------------------------------------------------------------------------------- Annualized Base Rent Annualized Base Rent per Occupied Square Foot ------------------------------------------------------------------------------------------ Anchors Shops Total Anchors Shops Total ------------------------------------------------------------------------------------------ CORE PROPERTIES: New York Region - -------------------- Connecticut - -------------------- 239 Greenwich Avenue(1) $1,397,621 $- $1,397,621 $83.02 $- $83.02 ------------------------------------------------------------------------------------------ New Jersey - -------------------- Elmwood Park Shopping Center 1,390,460 2,076,720 3,467,180 22.21 23.90 23.19 A & P Shopping Plaza 900,000 352,985 1,252,985 18.20 26.25 19.92 ------------------------------------------------------------------------------------------ Total - New Jersey 2,290,460 2,429,705 4,720,165 20.44 24.22 22.22 ------------------------------------------------------------------------------------------ New York - -------------------- Village Commons Shopping Center 274,125 2,026,134 2,300,259 17.00 29.15 26.86 Branch Plaza 1,111,040 1,355,082 2,466,122 15.00 27.08 19.87 Amboy Road 1,012,015 525,936 1,537,951 21.55 40.07 25.59 Bartow Avenue - 401,429 401,429 - 31.51 31.51 Pacesetter Park Shopping Center 372,562 731,559 1,104,121 7.16 19.10 12.22 2914 Third Avenue 844,000 - 844,000 19.40 - 19.40 West Shore Expressway 1,265,000 - 1,265,000 24.57 - 24.57 West 54th Street - 2,345,221 2,345,221 - 328.41 328.41 Crossroads Shopping Center 2,266,536 3,750,281 6,016,817 11.32 37.43 20.03 ------------------------------------------------------------------------------------------ Total - New York 7,145,278 11,135,642 18,280,920 14.75 38.26 23.58 ------------------------------------------------------------------------------------------ Total - New York Region 10,833,359 13,565,347 24,398,706 17.66 34.66 24.29 ------------------------------------------------------------------------------------------ New England - -------------------- Connecticut - -------------------- Town Line Plaza(2) 937,000 689,923 1,626,923 14.23 16.63 15.16 ------------------------------------------------------------------------------------------ Massachusetts - -------------------- Methuen Shopping Center 845,889 112,800 958,689 6.80 20.00 7.37 Crescent Plaza 1,119,086 629,384 1,748,470 7.13 10.75 8.11 ------------------------------------------------------------------------------------------ Total - Massachusetts 1,964,975 742,184 2,707,159 6.98 11.57 7.83 ------------------------------------------------------------------------------------------ New York - -------------------- New Loudon Center 1,600,486 113,178 1,713,664 6.37 24.52 6.70 ------------------------------------------------------------------------------------------ Rhode Island - -------------------- Walnut Hill Plaza 935,920 1,372,082 2,308,002 7.68 10.43 9.11 ------------------------------------------------------------------------------------------ Vermont - -------------------- The Gateway Shopping Center 1,317,312 484,572 1,801,884 18.00 20.08 18.52 ------------------------------------------------------------------------------------------ Total - New England Region 6,755,693 3,401,939 10,157,632 8.51 12.79 9.59 ------------------------------------------------------------------------------------------ General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced. (1) 239 Greenwich Avenue contains 16,834 square feet of retail GLA and 21 residential units encompassing 14,434 square feet. Residential activities are not included above. (2) Anchor GLA includes a 97,300 square foot Wal-Mart store which is not owned by the Company. This square footage has been excluded for calculating annualized base rent per square foot. CORE PROPERTIES Acadia's (continued): interest ---------- Midwest - -------------------- Illinois - -------------------- Hobson West Plaza 100.0% 51,692 47,210 98,902 100.00% 95.22% 97.72% Clark Diversey 100.0% - 19,265 19,265 - 100.00% 100.00% ------------------------------------------------------------------------------------------ Total - Illinois 51,692 66,475 118,167 100.00% 96.61% 98.09% ------------------------------------------------------------------------------------------ Indiana - -------------------- Merrillville Plaza 100.0% 145,778 89,900 235,678 84.90% 90.37% 86.99% Michigan - -------------------- Bloomfield Towne Square 100.0% 126,960 105,221 232,181 98.83% 96.61% 97.82% Ohio - -------------------- Mad River Station(1) 100.0% 68,296 87,542 155,838 100.00% 64.74% 80.19% ------------------------------------------------------------------------------------------ Total - Midwest Region 392,726 349,138 741,864 94.02% 87.01% 90.72% ------------------------------------------------------------------------------------------ Mid-Atlantic - -------------------- New Jersey - -------------------- Marketplace of Absecon 100.0% 58,031 47,104 105,135 100.00% 89.51% 95.30% Ledgewood Mall 100.0% 370,969 146,223 517,192 100.00% 61.51% 89.12% ------------------------------------------------------------------------------------------ Total - New Jersey 429,000 193,327 622,327 100.00% 68.33% 90.16% ------------------------------------------------------------------------------------------ Delaware - -------------------- Brandywine Town Center 22.2% 839,624 35,284 874,908 98.27% 98.68% 98.29% Market Square Shopping Center 22.2% 38,850 63,812 102,662 100.00% 84.33% 90.26% Naamans Road - Core 22.2% - 19,991 19,991 0.00% 100.00% 100.00% ------------------------------------------------------------------------------------------ Total - Delaware 878,474 119,087 997,561 98.35% 91.21% 97.49% ------------------------------------------------------------------------------------------ Pennsylvania - -------------------- Blackman Plaza 100.0% 112,051 13,213 125,264 100.00% 28.97% 92.51% Mark Plaza 100.0% 157,595 58,806 216,401 100.00% 74.32% 93.02% Plaza 422 100.0% 132,845 22,304 155,149 78.47% 13.45% 69.12% Route 6 Plaza 100.0% 146,498 29,007 175,505 100.00% 86.21% 97.72% Chestnut Hill (2) 100.0% 31,420 9,150 40,570 100.00% 100.00% 100.00% Abington Towne Center (3) 100.0% 184,616 31,739 216,355 100.00% 94.75% 99.23% ------------------------------------------------------------------------------------------ Total - Pennsylvania 765,025 164,219 929,244 96.26% 69.88% 91.60% ------------------------------------------------------------------------------------------ Total - Mid-Atlantic Region 2,072,499 476,633 2,549,132 97.92% 74.58% 93.56% ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total - Core Properties 3,969,310 1,547,580 5,516,890 98.32% 85.07% 94.60% ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total - Core Properties - weighted based on ownership interest(4) 3,159,947 1,393,250 4,553,197 98.25% 84.38% 94.00% Midwest - -------------------- Illinois - -------------------- Hobson West Plaza $225,436 $986,659 $1,212,095 $4.36 $21.95 $12.54 Clark Diversey - 803,866 803,866 - 41.73 41.73 ------------------------------------------------------------------------------------------ Total - Illinois 225,436 1,790,525 2,015,961 4.36 27.88 17.39 ------------------------------------------------------------------------------------------ Indiana - -------------------- Merrillville Plaza 1,231,402 1,318,457 2,549,859 9.95 16.23 12.44 Michigan - -------------------- Bloomfield Towne Square 988,349 1,958,349 2,946,698 7.88 19.26 12.97 Ohio - -------------------- Mad River Station (1) 802,719 731,489 1,534,208 11.75 12.91 12.28 ------------------------------------------------------------------------------------------ Total - Midwest Region 3,247,906 5,798,820 9,046,726 8.80 19.09 13.44 ------------------------------------------------------------------------------------------ Mid-Atlantic - -------------------- New Jersey - -------------------- Marketplace of Absecon 984,014 667,620 1,651,634 16.96 15.83 16.48 Ledgewood Mall 2,997,859 1,257,356 4,255,215 8.08 13.98 9.23 ------------------------------------------------------------------------------------------ Total - New Jersey 3,981,873 1,924,976 5,906,849 9.28 14.57 10.53 ------------------------------------------------------------------------------------------ Delaware - -------------------- Brandywine Town Center 12,452,536 586,393 13,038,928 15.09 16.84 15.16 Market Square Shopping Center 546,550 1,376,250 1,922,800 14.07 25.57 20.75 Naamans Road - Core - 878,007 878,007 - 43.92 43.92 ------------------------------------------------------------------------------------------ Total - Delaware 12,999,086 2,840,650 15,839,735 15.05 26.15 16.29 ------------------------------------------------------------------------------------------ Pennsylvania - -------------------- Blackman Plaza 268,519 20,400 288,919 2.40 5.33 2.49 Mark Plaza 652,095 340,076 992,171 4.14 7.78 4.93 Plaza 422 407,520 36,500 444,020 3.91 12.17 4.14 Route 6 Plaza 806,351 277,080 1,083,431 5.50 11.08 6.32 Chestnut Hill (2) 992,344 300,028 1,292,372 31.58 32.79 31.86 Abington Towne Center (3) 270,000 695,201 965,201 10.00 23.12 16.91 ------------------------------------------------------------------------------------------ Total - Pennsylvania 3,396,829 1,669,285 5,066,114 5.87 14.55 7.30 ------------------------------------------------------------------------------------------ Total - Mid-Atlantic Region 20,377,788 6,434,911 26,812,698 10.89 18.10 12.04 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total - Core Properties $41,214,746 $29,201,017 $70,415,762 $11.30 $22.18 $14.18 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total - Core Properties - weighted based on ownership interest(4) $29,238,718 $24,937,722 $54,176,440 $9.42 $21.21 $12.66 General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced. (1) The GLA for this property includes 28,205 square feet of office space. (2) This consists of two separate buildings. (3) Anchor GLA includes a 157,616 square foot Target store which is not owned by the Company. This square footage has been excluded for calculating annualized base rent per square foot. (4) Weighted based on Acadia's ownership interest in the properties. OPPORTUNITY FUND PROPERTIES: Acadia's interest ---------- FUND I Properties - -------------------- Ohio - -------------------- Amherst Marketplace (4) 37.8% 76,737 3,208 79,945 100.00% 100.00% 100.00% Granville Centre 37.8% 90,047 44,950 134,997 38.81% 46.74% 41.45% Sheffield Crossing (4) 37.8% 69,659 42,875 112,534 100.00% 85.17% 94.35% ------------------------------------------------------------------------------------------ Total - Midwest Region 236,443 91,033 327,476 76.70% 66.72% 73.92% ------------------------------------------------------------------------------------------ Virginia - -------------------- Haygood Shopping Center (1) 18.9% 95,303 83,194 178,497 100.00% 84.24% 92.65% ------------------------------------------------------------------------------------------ Total - Mid-Atlantic Region 95,303 83,194 178,497 100.00% 84.24% 92.65% ------------------------------------------------------------------------------------------ New York - -------------------- Tarrytown Shopping Center 37.8% 15,497 19,794 35,291 100.00% 73.44% 85.10% ------------------------------------------------------------------------------------------ Total - New York Region 15,497 19,794 35,291 100.00% 73.44% 85.10% ------------------------------------------------------------------------------------------ Various Regions - -------------------- Kroger/Safeway Portfilio (2) 28.3% 1,018,100 - 1,018,100 100.00% - 100.00% ------------------------------------------------------------------------------------------ Total - Fund I Properties 1,365,343 194,021 1,559,364 95.96% 74.92% 93.35% ------------------------------------------------------------------------------------------ FUND II Properties - -------------------- Illinois - -------------------- Oakbrook 20.0% 112,000 - 112,000 100.00% - 100.00% ------------------------------------------------------------------------------------------ Total - Midwest Region 112,000 - 112,000 100.00% - 100.00% ------------------------------------------------------------------------------------------ New York - -------------------- Liberty Avenue 19.2% - 17,088 17,088 0.00% 63.67% 63.67% 216th Street 19.2% - 60,000 60,000 0.00% 100.00% 100.00% ------------------------------------------------------------------------------------------ Total - New York Region - 77,088 77,088 0.00% 91.95% 91.95% ------------------------------------------------------------------------------------------ Total - Fund II Properties 112,000 77,088 189,088 100.00% 91.95% 96.72% ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total - Opportunity Fund Operating Properties 1,477,343 271,109 1,748,452 96.27% 79.76% 93.71% ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Core & Opportunity Fund - Operating Properties weighted based on ownership interest 3,584,011 1,465,637 5,049,648 97.88% 83.98% 93.84% ------------------------------------------------------------------------------------------ REDEVELOPMENT PROPERTIES ------------------------------------------------------------------------------------------ Sterling Heights Shopping Center - Fund I (1) 18.9% 90,400 64,435 154,835 100.00% 32.44% 71.88% Hitchcock Plaza - Fund I (3) 7.6% 146,507 70,754 217,261 89.19% 65.18% 81.37% 400 East Fordham Road - Fund II 19.2% - - - - - - Pelham Manor Shopping Plaza - Fund II 19.2% - - - - - - Sherman Avenue at Broadway - Fund II 19.2% - - - - - - 161st Street - Fund II 19.2% 137,334 86,187 223,521 100.00% 100.00% 100.00% ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total - Redevelopment Properties 374,241 221,376 595,617 95.77% 69.21% 85.90% OPPORTUNITY FUND PROPERTIES: FUND I Properties - -------------------- Ohio - -------------------- Amherst Marketplace (4) $851,195 $38,472 $889,667 $11.09 $11.99 $11.13 Granville Centre 450,336 212,750 663,086 12.88 10.13 11.85 Sheffield Crossing (4) 807,657 398,363 1,206,020 11.59 10.91 11.36 ------------------------------------------------------------------------------------------ Total - Midwest Region 2,109,188 649,585 2,758,773 11.63 10.69 11.40 ------------------------------------------------------------------------------------------ Virginia - -------------------- Haygood Shopping Center (1) 636,207 1,121,943 1,758,150 6.68 16.01 10.63 ------------------------------------------------------------------------------------------ Total - Mid-Atlantic Region 636,207 1,121,943 1,758,150 6.68 16.01 10.63 ------------------------------------------------------------------------------------------ New York - -------------------- Tarrytown Shopping Center 475,000 439,319 914,319 30.65 30.22 30.44 ------------------------------------------------------------------------------------------ Total - New York Region 475,000 439,319 914,319 30.65 30.22 30.44 ------------------------------------------------------------------------------------------ Various Regions - -------------------- Kroger/Safeway Portfilio (2) 7,362,811 - 7,362,811 7.23 - 7.23 ------------------------------------------------------------------------------------------ Total - Fund I Properties 10,583,206 2,210,847 12,794,053 8.08 15.21 8.79 ------------------------------------------------------------------------------------------ FUND II Properties - -------------------- Illinois - -------------------- Oakbrook 825,000 - 825,000 7.37 - 7.37 ------------------------------------------------------------------------------------------ Total - Midwest Region 825,000 - 825,000 7.37 - 7.37 ------------------------------------------------------------------------------------------ New York - -------------------- Liberty Avenue - 394,944 394,944 - 36.30 36.30 216th Street - 2,340,000 2,340,000 - 39.00 39.00 ------------------------------------------------------------------------------------------ Total - New York Region - 2,734,944 2,734,944 - 38.59 38.59 ------------------------------------------------------------------------------------------ Total - Fund II Properties 825,000 2,734,944 3,559,944 - 38.59 19.47 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ $11,408,206 $4,945,791 $16,353,997 $8.02 $22.87 $9.98 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ $32,586,456 $26,086,154 $58,672,610 $9.29 $21.19 $12.38 ------------------------------------------------------------------------------------------ REDEVELOPMENT PROPERTIES ------------------------------------------------------------------------------------------ Sterling Heights Shopping Center - Fund I (1) $526,600 $150,859 $677,459 $5.83 $7.22 $6.09 Hitchcock Plaza - Fund I (3) 884,310 682,973 1,567,283 6.77 14.81 8.87 400 East Fordham Road - Fund II - - - - - - Pelham Manor Shopping Plaza - Fund II - - - - - - Sherman Avenue at Broadway - Fund II - - - - - - 161st Street - Fund II 3,337,222 1,998,888 5,336,110 24.30 23.19 23.87 ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ Total - Redevelopment Properties $4,748,132 $2,832,720 $7,580,852 $13.25 $18.49 $14.82
General note - The above occupancy and rent amounts do not include space which is currently leased, but for which rent payment has not yet commenced. (1) Fund Ihas a 50% interest in these properties. (2) Fund I portfolio of 25 triple-net, anchor-only leases with Kroger and Safeway supermarkets. (3) Fund I has a 20% interest in the property. (4) Amherst Marketplace and Sheffield Crossing are under contract for sale. 29
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Cash (2) GAAP (3) Cash (2) GAAP (3) Cash (2) GAAP (3) Cash (2) GAAP (3) Year-to-Date 3 months ended 3 months ended 3 months ended Year ended New and Renewal Rent Spreads December 31, (1) September 30, 2007 September 30, 2007 June 30, 2007 March 31, 2007 2006 ------------------------------------------------- -------------------- -------------------- -------------------- --------------- New leases Number of new leases commencing 19 19 5 5 6 6 8 8 18 GLA 71,791 71,791 38,886 38,886 17,234 17,234 15,671 15,671 73,273 New base rent $22.03 $23.97 $18.35 $19.97 $25.94 $27.96 $26.84 $29.53 $15.30 Previous base rent (and percentage rent) $15.14 $14.97 $10.74 $10.27 $15.81 $15.99 $25.33 $25.49 $11.19 Percentage growth in base rent 45.5% 60.2% 70.9% 94.4% 64.1% 74.9% 6.0% 15.8% 36.7% Average cost per square foot $26.96 $26.96 $27.62 $27.62 $40.13 $40.13 $10.85 $10.85 $13.52 Renewal leases Number of renewal leases commencing 37 37 11 11 9 9 17 17 47 GLA expiring 266,457 266,457 47,434 47,434 119,549 119,549 99,474 99,474 287,107 Renewal percentage 71% 71% 78% 78% 57% 57% 84% 84% 71% New base rent $13.93 $14.32 $16.43 $16.97 $10.67 $10.99 $15.48 $15.85 $15.25 Expiring base rent (and percentage rent) $12.87 $12.51 $15.10 $14.80 $10.19 $9.70 $14.07 $13.79 $13.60 Percentage growth in base rent 8.2% 14.4% 8.8% 14.7% 4.7% 13.3% 10.0% 14.9% 12.2% Average cost per square foot $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total new and renewal Leases Number of new and renewal leases commencing 56 56 16 16 15 15 25 25 65 GLA commencing 260,925 260,925 75,885 75,885 85,377 85,377 99,663 99,663 277,032 New base rent $16.16 $16.98 $17.41 $18.51 $13.75 $14.42 $17.27 $18.00 $15.27 Expiring base rent (and percentage rent) $13.50 $13.19 $12.87 $12.48 $11.32 $10.97 $15.84 $15.63 $12.96 Percentage growth in base rent 19.7% 28.7% 35.4% 48.3% 21.4% 31.4% 9.0% 15.2% 17.8% Average cost per square foot $7.42 $7.42 $14.15 $14.15 $8.10 $8.10 $1.71 $1.71 $3.57
(1) Does not include leased square footage and costs related to first generation space and the Company's major redevelopment projects. (2) Rents have not been calculated on a straight line basis. Previous/expiring rent is that as of time of expiration and includes any percentage rent paid as well. New rent is that which is paid at commencement. (3) Rents are calculated on a straight-line basis. 30
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Top Tenants - Ranked by Annualized Base Rent (Combined basis - Includes pro-rata share of GLA and rent for JV properties) Core Portfolio Opportunity Funds (2) -------------------------------------------------------------------------------- Wholly Owned Joint Ventures -------------------- -------------------- Number of stores in Annualized combined Annualized Base Base Rent Annualized Base Ranking Retail Tenant portfolio Total GLA Rent (1) Total GLA (1) Total GLA Rent (1) - ------------------------------------------------------------------------------------------------------------------- 1 Albertson's 4 220,625 $3,012,896 - $- - $- -- Shaw's 3 175,801 2,358,192 - - - - -- Acme 1 44,824 654,704 - - - - 2 A&P (Waldbaum's) 4 149,729 2,566,284 18,722 246,960 - - -- A&P/Waldbaum's 4 149,729 2,566,284 18,722 246,960 - - 3 T.J. Maxx 8 230,627 1,765,051 6,972 88,189 - - -- T.J. Maxx 4 88,200 726,300 6,972 88,189 - - -- Marshalls 3 102,781 731,494 - - - - -- Homegoods 1 39,646 307,257 - - - - 4 Sears 5 390,270 1,355,279 49,355 277,463 - - -- Kmart 4 329,570 1,097,279 49,355 277,463 - - -- Sears 1 60,700 258,000 - - - - 5 Wal-Mart 2 210,114 1,515,409 - - - - 6 Ahold 2 117,911 1,299,264 - - - - -- Stop and Shop 2 117,911 1,299,264 - - - - 7 Home Depot 2 211,003 1,009,646 - - - - 8 Pathmark 1 47,773 955,460 - - - - 9 Price Chopper 1 77,450 804,059 - - - - Restoration 10 Hardware 1 9,220 780,864 - - - - 11 Kroger(5) 12 - - - - 156,069 1,046,225 12 Safeway (6) 13 - - - - 132,409 1,040,028 13 Circuit City 2 59,278 949,921 - - - - 14 Sleepy's 5 35,745 683,429 - - - - Federated Department 15 Stores (Macy's) 1 73,349 651,245 - - - - Payless 16 Shoesource 9 26,225 484,590 1,514 52,994 952 10,473 17 CVS 4 28,600 482,939 - - 3,967 59,504 Limited Brands - 18 Express 1 12,882 510,344 - - - - 19 JC Penney 1 50,000 495,000 - - - - 20 Borders Books 1 18,538 482,000 - - - - ------------------------------------------------------------------------------------------ Total 79 1,969,339 19,803,680 76,563 665,606 293,397 2,156,230 ========================================================================================== Percentage of Total Combined Represented by Retail Tenant ------------------------------------------------------------ Average Gross Annualized Base RentTotal PortfolioAnnualized BaseAverage Sales Occupancy Cost Ranking Retail Tenant Total GLA (1) GLA(3) Rent (3) (per sq. ft.) (4) - ------------------------------------------------------------------------------------------------------------------- 1 Albertson's 220,625 $3,012,896 4.8% 5.4% -- Shaw's 175,801 2,358,192 3.8% 4.3% 416 3.1% -- Acme 44,824 654,704 1.0% 1.2% 270 7.3% 2 A&P (Waldbaum's) 168,451 2,813,244 3.6% 5.1% -- A&P/Waldbaum's 168,451 2,813,244 3.6% 5.1% 351 5.8% 3 T.J. Maxx 237,599 1,853,240 5.1% 3.3% -- T.J. Maxx 95,172 814,489 2.1% 1.5% 274 4.1% -- Marshalls 102,781 731,494 2.2% 1.3% 188 6.0% -- Homegoods 39,646 307,257 0.9% 0.6% 153 6.3% 4 Sears 439,625 1,632,742 9.5% 2.9% -- Kmart 378,925 1,374,742 8.2% 2.5% 198 4.0% -- Sears 60,700 258,000 1.3% 0.5% 215 2.8% 5 Wal-Mart 210,114 1,515,409 4.5% 2.7% 293 3.6% 6 Ahold 117,911 1,299,264 2.6% 2.3% -- Stop and Shop 117,911 1,299,264 2.6% 2.3% 353 3.6% 7 Home Depot 211,003 1,009,646 4.6% 1.8% - - 8 Pathmark 47,773 955,460 1.0% 1.7% - - 9 Price Chopper 77,450 804,059 1.7% 1.5% 674 1.9% Restoration 10 Hardware 9,220 780,864 0.2% 1.4% 495 16.6% 11 Kroger(5) 156,069 1,046,225 3.4% 1.9% - - 12 Safeway (6) 132,409 1,040,028 2.9% 1.9% - - 13 Circuit City 59,278 949,921 1.3% 1.7% - - 14 Sleepy's 35,745 683,429 0.8% 1.2% - - Federated Department 15 Stores (Macy's) 73,349 651,245 1.6% 1.2% 210 6.7% Payless 16 Shoesource 28,691 548,057 0.6% 1.0% - - 17 CVS 32,567 542,443 0.7% 1.0% 495 4.4% Limited Brands - 18 Express 12,882 510,344 0.3% 0.9% - - 19 JC Penney 50,000 495,000 1.1% 0.9% 206 6.5% 20 Borders Books 18,538 482,000 0.4% 0.9% - - ------------------------------------------------------------ Total 2,339,299 22,625,516 50.6% 40.8% ============================================================
(1) Base rents do not include percentage rents (except where noted), additional rents for property expense reimbursements, and contractual rent escalations due after the date of this report. (2) Includes Funds I and II. The above amounts represent the Company's pro-rata share of square footage and rent. (3) Represents total GLA and annualized base rent for the Company's retail properties including its pro-rata share of joint venture properties. (4) Occupancy cost = Gross rents (base rent, percentage rent and expense reimbursements) divided by sales. * indicates not all locations are required to report sales. Amount is left blank if the tenant is not required to report sales at any of the locations. (5) Kroger has sub-leased 4 of these locations to supermarket tenants, 2 locations to a non-supermarket tenant and ceased operations at one other location. (6) Safeway has sub-leased 7 of these locations to supermarket tenants, 1 location to a non-supermarket tenant and ceased operations at one other location. 31
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Anchor Detail ------------------------------ - ------------------------------------------------------------------------------------------------------------------- Annual Annual Property/Tenant Name Square Lease Base Base (Type of Center) Footage Expiration Rent Rent PSF Options - ------------------------------------------------------------------------------------------------------------------- THE COMPANY CONSIDERS THOSE TENANTS WHO COMPRISE GREATER THAN 10% OF A CENTER'S GLA AS ANCHOR TENANTS (The below detail does not include space which is currently leased, but for which rent payment has not yet commenced) Retail Anchor Properties- Core Portfilio - ---------------------------------------- New York Region - ---------------------------------------- Connecticut --------------------------------------- 239 Greenwich Ave., Greenwich Coach 4,541 1/31/2016 356,469 78.50(1) 5 Year Restoration Hardware 12,293 9/30/2014 1,041,152 84.69(2) 5 Years --------------- ------------------------------ Property total 16,834 1,397,621 83.02 --------------- ------------------------------ New Jersey --------------------------------------- Elmwood Park Shopping Center, Elmwood Park Walgreens 14,837 5/31/2022 435,000 29.32(8) 5 Year Pathmark 47,773 11/30/2017 955,460 20.00(7) 5 Year --------------- ------------------------------ Property total 62,610 1,390,460 22.21 --------------- ------------------------------ A&P Shopping Plaza A&P 49,463 10/26/2024 900,000 18.20(9) 5 Year --------------- ------------------------------ Property total 49,463 900,000 18.20 --------------- ------------------------------ New York --------------------------------------- Village Commons Shopping Center Daffy's 16,125 1/7/2008 274,125 17.00(4) 5 Year --------------- ------------------------------ Property total 16,125 274,125 17.00 --------------- ------------------------------ Branch Plaza CVS 11,050 5/31/2010 190,076 17.20 - A&P 63,000 11/30/2013 920,964 14.62(3) 5 Year --------------- ------------------------------ Property Total: 74,050 1,111,040 15.00 --------------- ------------------------------ Amboy Shopping Center Waldbaum's (A&P) 37,266 7/6/2028 745,320 20.00 - Duane Reed 9,698 8/31/2008 266,694 27.50(2) 5 Year --------------- ------------------------------ Property total 46,964 1,012,014 21.55 --------------- ------------------------------ Pacesetter Park Shopping Center, Pomona Stop & Shop (Ahold) 52,052 8/31/2020 372,562 7.16(2) 10 Year --------------- ------------------------------ Property total 52,052 372,562 7.16 --------------- ------------------------------ 2914 Third Avenue Dr. J's 33,500 1/31/2021 700,000 20.90 Other 10,000 144,000 14.40 --------------- ------------------------------ Property total 43,500 844,000 19.40 --------------- ------------------------------ LA Fitness, Staten Island LA Fitness 51,494 1/31/2021 1,265,000 24.57 --------------- ------------------------------ 51,494 1,265,000 24.57 --------------- ------------------------------ Crossroads Shopping Center, White Plains (49% jv) Kmart 100,725 1/31/2012 566,250 $5.62(4) 5 Year Waldbaum's (A&P) 38,208 12/31/2007 504,000 13.19(5) 5 Year B. Dalton (Barnes & Noble) 12,430 5/28/2012 397,760 32.00(2) 5 Year Pier 1 8,818 2/29/2012 282,176 32.00 - Pay Half 15,000 12/31/2007 322,600 21.51 - Modell's 25,000 2/28/2009 193,750 7.75(2) 5 Year --------------- ------------------------------ Property total 200,181 2,266,536 11.32 --------------- ------------------------------ Total: New York Region 613,273 10,833,358 17.66 --------------- ------------------------------ Retail Anchor Properties- Core Portfolio (continued) - ---------------------------------------- New England - ---------------------------------------- Connecticut --------------------------------------- Town Line Plaza, Rocky Hill Wal*Mart(1) 97,300 - $- $-REA Agreement Super Stop & Shop (Ahold) 65,859 11/30/2023 937,000 14.23(8) 5 Year --------------- ------------------------------ Property total 163,159 937,000 14.23 --------------- ------------------------------ Massachusetts --------------------------------------- Methuen Shopping Center, Methuen ABIS Sushi 4,377 7/31/2017 109,425 25.00(1) 5 Year Demoulas Super Markets 30,460 1/31/2015 109,656 3.60(1) 5 Year Wal*Mart 89,544 1/31/2012 626,808 7.00(8) 5 Year --------------- ------------------------------ Property total 124,381 845,889 6.80 --------------- ------------------------------ Crescent Plaza, Brockton Home Depot 106,760 10/31/2021 602,126 5.64(7) 5 Year Shaw's (Albertsons) 50,225 12/31/2012 516,960 10.29(6) 5 Year --------------- ------------------------------ Property total 156,985 1,119,086 7.13 --------------- ------------------------------ New York --------------------------------------- New Loudon Center, Latham Bon Ton 65,365 2/1/2014 261,460 4.00(3) 5 Year Marshalls (TJX) 37,212 1/31/2014 158,151 4.25(3) 5 Year Price Chopper 77,450 5/31/2015 804,059 10.38(3) 5 Year A.C. Moore 21,520 4/30/2009 221,226 10.28(3) 5 Year Raymours Furniture Co 49,664 4/30/2019 155,591 3.13(2) 5 Year --------------- ------------------------------ Property total 251,211 1,600,487 6.37 --------------- ------------------------------ Rhode Island --------------------------------------- Walnut Hill Plaza, Woonsocket Sears 60,700 8/31/2008 258,000 4.25(5) 5 Year CVS 8,800 1/31/2009 154,000 17.50(1) 5 Year Shaw's (Albertsons) 52,392 12/31/2013 523,920 10.00(3) 5 Year --------------- ------------------------------ Property total 121,892 935,920 7.68 --------------- ------------------------------ Vermont --------- Gateway Shopping Center Shaw's (Albertsons) (5) 5 Yr. & (1) 73,184 3/31/2024 1,317,311 18.00 4 Yr. --------------- ------------------------------ Property total 73,184 1,317,311 18.00 --------------- ------------------------------ Total : New England 890,812 6,755,693 8.51 --------------- ------------------------------ Midwest - ---------- Illinois --------- Hobson West Plaza, Naperville Bobak's Market and Restaurant 51,692 11/30/2007 225,436 4.36(5) 5 Year --------------- ------------------------------ Property total 51,692 225,436 4.36 --------------- ------------------------------ Indiana --------- Merrillville Plaza, Merrillville JC Penney 50,000 1/31/2008 495,000 9.90(2) 5 Year Officemax 26,157 7/31/2008 222,335 8.50(4) 5 Year Pier I 9,143 1/31/2009 128,002 14.00 - David's Bridal 13,266 11/19/2010 190,765 14.38(2) 5 Year TJ Maxx (TJX) 25,200 1/31/2009 195,300 7.75(1) 5 Year --------------- ------------------------------ Property total 123,766 1,231,402 9.95 --------------- ------------------------------ (1) This space is contiguous to the Company's property and is not owned by the Company. Michigan --------------------------------------- Bloomfield Town Square, Bloomfield Hills HomeGoods (TJX) 39,646 5/31/2010 307,257 7.75(2) 5 Year Officemax 21,500 6/30/2010 193,500 9.00(3) 5 Year Marshalls (TJX) 28,324 9/30/2011 226,592 8.00(3) 5 Year TJ Maxx (TJX) 36,000 1/31/2009 261,000 7.25(1) 5 Year --------------- ------------------------------ Property total 125,470 988,349 7.88 --------------- ------------------------------ Ohio --------- Mad River Station, Dayton Babies 'R' Us 33,147 2/28/2010 260,204 7.85(2) 5 Year Pier I 10,111 2/28/2010 227,037 22.45 - Office Depot 25,038 8/31/2010 315,478 12.60 - --------------- ------------------------------ Property total 68,296 802,719 11.75 --------------- ------------------------------ Total: Midwest 369,224 3,247,906 8.80 --------------- ------------------------------ Retail Anchor Properties- Core Portfilio (continued) - ---------------------------------------- Mid-Atlantic - ---------------------------------------- New Jersey --------------------------------------- Marketplace of Absecon, Absecon Eckerd Drug (Brook's) 13,207 8/30/2020 329,310 24.93(4) 5 Year Acme Markets (Albertson) 44,824 4/30/2015 654,704 14.61(8) 5 Year --------------- ------------------------------ Property total 58,031 984,014 16.96 --------------- ------------------------------ Ledgewood Mall, Ledgewood Circuit City 33,294 1/31/2020 449,469 13.50(4) 5 Year Ashley Furniture 41,806 12/31/2010 212,793 5.09(2) 5 Year Barnes & Noble 12,500 1/31/2010 224,000 17.92(5) 5 Year Marshalls (TJX) 37,245 9/30/2014 346,751 9.31(4) 5 Year The Sports Authority 52,205 5/31/2012 225,000 4.31(5) 5 Year Macy's Department Store (3) 5 Year (Federated) 73,349 1/31/2010 651,245 8.88 Wal*Mart 120,570 3/31/2019 888,601 7.37(6) 5 Year --------------- ------------------------------ Property total 370,969 2,997,859 8.08 --------------- ------------------------------ Delaware --------------------------------------- Brandywine Town Center (Brandywine JV) (22.2% jv) Lowe's Home Centers 140,000 8/31/2018 1,925,000 13.75(6) 5 Year Target 138,000 1/31/2018 800,000 5.80(4) 10 Year Target expansion (6) 2 Year & 27,716 1/31/2011 304,876 11.00 (6) 3 year Access Group 76,458 5/31/2015 1,578,858 20.65(2) 5 Year Regal Cinemas 65,641 6/1/2017 861,210 13.12(4) 5 Year Bed, Bath & Beyond 50,977 1/31/2014 868,426 17.04(3) 5 Year Dick's Sporting Goods 50,000 5/31/2013 700,000 14.00(3) 5 Year All other (1) 5 Year - 276,2972/2011 - 1/2028 5,414,166 19.60 (4) 5 Year --------------- ------------------------------ Property total 825,089 12,452,536 15.09 --------------- ------------------------------ Market Square Shopping Center (Brandywine JV) Trader Joe's 7,675 1/31/2013 149,662 19.50(3) 5 Year TJ Maxx (TJX) 31,175 1/31/2011 396,888 12.73(1) 5 Year --------------- ------------------------------ Property total 38,850 546,550 14.07 --------------- ------------------------------ Pennsylvania --------------------------------------- Blackman Plaza, Wilkes-Barre Eckerd Drug (Brook's) 7,095 7/31/2016 63,855 9.00 - Kmart 104,956 10/31/2009 204,664 1.95(8) 5 Year --------------- ------------------------------ Property total 112,051 268,519 2.40 --------------- ------------------------------ Mark Plaza, Edwardsville Kmart 104,956 10/31/2009 204,664 1.95(8) 5 Year Redner's Market 52,639 5/31/2018 447,431 8.50(2) 5 Year --------------- ------------------------------ Property total 157,595 652,095 4.14 --------------- ------------------------------ Plaza 422, Lebanon Home Depot 104,243 12/31/2028 407,520 3.91(6) 5 Year --------------- ------------------------------ Property total 104,243 407,520 3.91 --------------- ------------------------------ Route 6 Mall, Honesdale Eckerd Drugs (Brook's) 11,840 1/31/2011 118,400 10.00(3) 5 Year Fashion Bug 15,000 1/31/2016 - - - Kmart 119,658 4/30/2020 687,951 5.75(10) 5 Year --------------- ------------------------------ Property total 146,498 806,351 5.50 --------------- ------------------------------ Abington Town Center, Abington TJ Maxx (TJX) 27,000 11/30/2010 $270,000 $10.00(2) 5 Year Target(1) Condominium 157,616 - - - Agreement --------------- ------------------------------ Property total 184,616 270,000 10.00 --------------- ------------------------------ Chestnut Hill LLC Express 12,882 1/31/2009 $510,344 $39.62 Borders Books 18,538 1/31/2010 482,000 26.00 --------------- ------------------------------ Property total 31,420 992,344 31.58 --------------- ------------------------------ Total : Mid-Atlantic 2,029,362 20,377,788 10.89 --------------- ------------------------------ Total: Retail Anchor Properties - Core Portolio 3,902,671 $41,214,745 $11.30 =============== ============================== (1) Target owns the portion of the main building (157,616 square feet) that their store is located in. Retail Anchor Properties- Opportunity Fund Portfilio - ---------------------------------------- Fund I Midwest Region - ---------------------------------------- Ohio --------- Amherst Marketplace (Fund I) Giant Eagle/Pharmacy 10,500 3/31/2012 157,500 15.00(3) 5 Year Giant Eagle/Supermarket 66,237 9/30/2021 693,695 10.47(4) 5 Year --------------- ------------------------------ Property total 76,737 851,195 11.09 Granville Centre (Fund I) Lifestyle Family Fitness, Inc. 34,951 1/31/2017 450,336 12.88(2) 5 Year --------------- ------------------------------ Sheffield Crossing (Fund I) Revco Drug 10,500 5/31/2012 157,500 15.00(3) 5 Year Giant Eagle 59,159 5/31/2022 650,157 10.99(4) 5 Year --------------- ------------------------------ Property total 69,659 807,657 11.59 --------------- ------------------------------ Total: Midwest 181,347 2,109,188 11.63 --------------- ------------------------------ Mid-Atlantic Region - ---------------------------------------- Virginia --------- Haygood Shopping Center (Fund I) Marshalls 30,023 2/28/2017 270,207 9.00 - Farm Fresh 54,000 8/31/2026 337,500 6.25(15) 5 Year Eckerd Drugs (Brook's) 11,280 11/30/2009 28,500 2.53 - --------------- ------------------------------ Property Total 95,303 636,207 6.68 --------------- ------------------------------ Total : Mid-Atlantic Region 95,303 636,207 6.68 --------------- ------------------------------ New York Region - ---------------------------------------- New York --------------------------------------- Tarrytown Centre Walgreen's 15,497 6/30/2080 475,000 30.65 - --------------- ------------------------------ Total : New York Region 15,497 475,000 30.65 --------------- ------------------------------ Various - ---------- Kroger/Safeway (Fund I) 1,018,100 2009 7,362,811 7.23 Total: Fund I Properties 1,310,247 10,583,206 8.08 --------------- ------------------------------ Fund II Midwest Region - ---------------------------------------- Illinois --------- Acadia Oakbrook Neiman Marcus 112,000 10/31/2011 825,000 7.37(5) 5 Year --------------- ------------------------------ Total: Midwest 112,000 825,000 7.37 --------------- ------------------------------ Total: Fund II Properties 112,000 825,000 7.37 --------------- ------------------------------ Total: Retail Anchor Properties - Opportunity Funds 1,422,247 11,408,206 8.02 --------------- ------------------------------ Redevelopment Properties - ---------------------------------------- Midwest Region - ---------------------------------------- Michigan --------------------------------------- Sterling Heights (Fund I) Rite Aid 20,000 1/31/2026 245,000 12.25(4) 5 Year Burlington Coat Factory 70,400 1/31/2024 281,600 4.00 - --------------- ------------------------------ Property total 90,400 526,600 5.83 Total : Mid-Atlantic Region 90,400 526,600 5.83 --------------- ------------------------------ New York Region - ---------------------------------------- New York --------------------------------------- 161st Street City of New York 137,334 7/18/2011 3,337,222 24.30 - --------------- ------------------------------ 137,334 3,337,222 24.30 --------------- ------------------------------ Total : New York Region 137,334 3,337,222 24.30 --------------- ------------------------------ Various --------- Hitchcock Plaza Warehouse Home Furnishing 19,316 2017 86,922 4.50 Steinmart Inc. 30,000 2016 190,500 6.35 Bed, Bath & Beyond 23,000 2017 144,000 6.26 Ross Dress for Less 30,039 2017 250,526 8.34 TJX Company 28,315 2016 212,362 7.50 --------------- ------------------------------ Property total 130,670 884,310 6.77 --------------- ------------------------------ Total: Redevelopment Properties 358,404 $4,748,132 $13.25 =============== ==============================
32
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Anchor Lease Expirations - Next 3 Years - ------------------------------------------------------------------------------------------------------------------------ Gross Leased Area Annualized Base Rent ------------------------------ --------------------------------------------- Percent Percent Average Square of of per Center Anchor footage all anchors Amount all anchors Sq. Ft. - ------------------------------------------------------------------------------------------------------------------------ Core Portfolio - ------------------------- 2007 Crossroads Shopping Pay-Half Center 15,000 0.43% 322,600 0.78% 21.51 Crossroads Shopping Waldbaum's Center 38,208 1.09% 504,000 1.22% 13.19 Hobson West Plaza Bobak's 51,692 1.47% 225,436 0.55% 4.36 ------------------------------ --------------------------------------------- Total 2007 104,900 2.99% 1,052,036 2.55% 10.03 ------------------------------ --------------------------------------------- 2008 Village Commons Shopping Daffy's Inc. Center 16,125 0.46% 274,125 0.67% 17.00 Merrillville Plaza JC Penny Co. 50,000 1.42% 495,000 1.20% 9.90 Merrillville Plaza Officemax Inc. 26,157 0.75% 222,335 0.54% 8.50 Amboy Shopping Center Duane Reade 9,698 0.28% 266,695 0.65% 27.50 Walnut Hill Plaza Sears 60,700 1.73% 258,000 0.63% 4.25 ------------------------------ --------------------------------------------- Total 2008 162,680 4.64% 1,516,155 3.69% 9.32 ------------------------------ --------------------------------------------- 2009 Crossroads Shopping Modell's Center 25,000 0.71% 193,750 0.47% 7.75 Chestnut Hill Express 12,882 0.37% 510,344 1.24% 39.62 Bloomfield Town Square TJ Max 36,000 1.03% 261,000 0.63% 7.25 Walnut Hill Plaza CVS 8,800 0.25% 154,000 0.37% 17.50 Merrillville Plaza Pier I 9,143 0.26% 128,002 0.31% 14.00 Merrillville Plaza TJ Max 25,200 0.72% 195,300 0.47% 7.75 New Loudon Center AC Moore Arts & Crafts 21,520 0.61% 221,226 0.54% 10.28 Blackman Plaza Kmart 104,956 2.99% 204,664 0.50% 1.95 Mark Plaza Kmart 104,956 2.99% 204,664 0.50% 1.95 ------------------------------ --------------------------------------------- Total 2009 348,457 9.93% 2,072,950 5.03% 5.95 ------------------------------ --------------------------------------------- Total Core Portfolio Total - Next 3 Years 616,037 17.56% $4,641,141 11.27% $7.53 ============================== ============================================= Opportunity Funds - ------------------------- Fund I - ------------------------- 2007 - 0.00% $- 0.00% $- ------------------------------ ============================================= 2008 - 0.00% - 0.00% - ------------------------------ --------------------------------------------- 2009 Kroger/Safeway portfolio Kroger/Safeway 1,018,100 66.94% 7,362,811 61.39% 7.23 Haygood Shopping Center Eckerd Drugs 11,280 0.74% 28,500 0.24% 2.53 ------------------------------ --------------------------------------------- Total Fund I Total - Next 3 Years 1,029,380 67.68% $7,391,311 61.63% $7.18 ============================== ============================================= Fund II - ------------------------- 2007 - 0.00% $- 0.00% $- ------------------------------ ============================================= 2008 - 0.00% - 0.00% - ------------------------------ --------------------------------------------- 2009 - 0.00% - 0.00% - ------------------------------ --------------------------------------------- Total Fund II Total - Next 3 Years - 0.00% $- 0.00% $- ============================== ============================================= Total Opportunity Funds Total - Next 3 Years 1,029,380 67.68% $7,391,311 61.63% $7.18 ============================== =============================================
(1) Tenant pays rent based on percentage of sales 33 ACADIA REALTY TRUST QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Lease Expirations ---------------------------------------------------------------------- Gross Leased Area Annualized Base Rent ----------------------- -------------------------------- Number of Percent Percent Average Leases Square of of per Expiring Footage Total Amount Total Sq. Ft. ---------------------------------------------------------------------- Core Properties Anchor Tenant Expirations Month to Month 2 10,000 0.28% $144,000 0.35% $14.40 2007 3 104,900 2.99% 1,052,036 2.55% 10.03 2008 5 162,680 4.63% 1,516,155 3.68% 9.32 2009 9 348,457 9.93% 2,072,950 5.03% 5.95 2010 14 357,411 10.17% 3,634,011 8.83% 10.17 2011 7 167,455 4.77% 2,722,136 6.60% 16.26 2012 6 313,947 8.94% 2,614,954 6.34% 8.33 2013 5 216,374 6.16% 3,261,423 7.91% 15.07 2014 6 66,188 1.89% 2,675,940 6.49% 40.43 2015 8 274,834 7.83% 4,393,672 10.66% 15.99 2016 4 43,161 1.23% 816,924 1.98% 18.93 2017 4 141,754 4.04% 2,405,351 5.84% 16.97 2018 3 330,639 9.42% 3,172,432 7.70% 9.59 2019 3 170,234 4.85% 1,044,192 2.53% 6.13 2020 4 218,211 6.22% 1,839,292 4.46% 8.43 2021 2 140,260 4.00% 1,302,126 3.16% 9.28 2022 1 14,837 0.42% 435,000 1.06% 29.32 2023 1 51,494 1.47% 1,265,000 3.07% 24.57 2024 3 188,506 5.37% 3,154,312 7.65% 16.73 2028 4 189,509 5.39% 1,692,840 4.11% 8.93 --------------------------------- -------------------------------- Total Occupied 94 3,510,851 100.00% $41,214,746 100.00% $11.74 ================================ -------------------------------------------- Anchor GLA Owned by Tenants 254,916 Total Vacant 203,543 ------------ Total Square Feet 3,969,310 ============ -------------------------------------------- Core Properties Shop Tenant Expirations Month to Month 29 68,292 5.19% $1,076,099 3.69% $15.76 2007 14 36,183 2.75% 645,958 2.21% 17.85 2008 66 211,184 16.04% 4,827,989 16.51% 22.86 2009 69 201,585 15.31% 4,096,384 14.03% 20.32 2010 47 142,112 10.79% 2,248,556 7.70% 15.82 2011 45 162,456 12.34% 4,663,444 15.97% 28.71 2012 29 113,464 8.62% 2,375,582 8.14% 20.94 2013 14 48,052 3.65% 1,112,475 3.81% 23.15 2014 18 84,895 6.45% 2,122,921 7.27% 25.01 2015 12 61,234 4.65% 1,161,192 3.98% 18.96 2016 8 38,365 2.91% 945,075 3.24% 24.63 2017 12 41,642 3.16% 1,486,279 5.09% 35.69 2018 4 6,805 0.52% 278,118 0.95% 40.87 2019 1 - 0.00% 51,205 0.18% - 2020 3 6,000 0.46% 142,500 0.49% 23.75 2021 2 30,270 2.30% 244,385 0.84% 8.07 2022 4 20,055 1.52% 485,699 1.66% 24.22 2023 1 25,984 1.97% 500,452 1.71% 19.26 2026 1 8,999 0.68% 296,967 1.02% 33.00 2027 2 9,033 0.69% 439,737 1.51% 48.68 --------------------------------- -------------------------------- Total Occupied 381 1,316,610 100.00% $29,201,017 100.00% $22.15 ================================= ================================ -------------------------------------------- Total Vacant 230,970 ------------ Total Square Feet 1,547,580 ============ -------------------------------------------- Core Properties Total Tenant Expirations Month to Month 31 $78,292 1.62% $1,220,099 1.73% $15.58 2007 17 141,083 2.92% 1,697,994 2.41% 12.04 2008 71 373,864 7.74% 6,344,144 9.01% 16.97 2009 78 550,042 11.41% 6,169,334 8.76% 11.22 2010 61 499,523 10.35% 5,882,567 8.35% 11.78 2011 52 329,911 6.83% 7,385,580 10.49% 22.39 2012 35 427,411 8.85% 4,990,536 7.09% 11.68 2013 19 264,426 5.48% 4,373,898 6.21% 16.54 2014 24 151,083 3.13% 4,798,861 6.82% 31.76 2015 20 336,068 6.96% 5,554,864 7.89% 16.53 2016 12 81,526 1.69% 1,761,999 2.50% 21.61 2017 16 183,396 3.80% 3,891,630 5.53% 21.22 2018 7 337,444 6.99% 3,450,550 4.90% 10.23 2019 4 170,234 3.53% 1,095,397 1.56% 6.43 2020 7 224,211 4.64% 1,981,792 2.81% 8.84 2021 4 170,530 3.53% 1,546,511 2.20% 9.07 2022 5 34,892 0.72% 920,699 1.31% 26.39 2023 2 77,478 1.60% 1,765,452 2.51% - 2024 3 188,506 3.90% 3,154,312 4.48% 16.73 2026 1 8,999 0.19% 296,967 0.42% 33.00 2027 2 9,033 0.19% 439,737 0.62% 48.68 2028 4 189,509 3.93% 1,692,839 2.40% 8.93 --------------------------------- -------------------------------- Total Occupied 475 $4,827,461 100.00% $70,415,762 100.00% $14.59 ================================ -------------------------------------------- Anchor GLA Owned by Tenants 254,916 Total Vacant 434,513 ------------ Total Square Feet 5,516,890 ============ -------------------------------------------- Opportunity Fund Properties Fund I Anchor Tenant Expirations 2007 - - 0.00% $- 0.00% $- 2009 26 1,029,380 67.68% 7,391,311 61.62% 7.18 2012 2 10,500 0.69% 315,000 2.63% 30.00 2016 2 58,315 3.83% 402,863 3.36% 6.91 2017 5 137,329 9.03% 720,543 6.01% 5.25 2021 2 66,237 4.36% 693,695 5.78% 10.47 2022 1 59,159 3.89% 1,131,604 9.43% 19.13 2024 1 70,400 4.63% 281,600 2.35% 4.00 2026 2 74,000 4.87% 582,500 4.86% 7.87 2080 1 15,497 1.02% 475,000 3.96% 30.65 --------------------------------- -------------------------------- Total Occupied 42 1,520,817 100.00% $11,994,116 100.00% $7.89 -------------------------------------------- Total Vacant 81,433 ------------ Total Square Feet 1,602,250 ============ -------------------------------------------- Fund I Shop Tenant Expirations Month to Month 9 24,197 11.39% 270,723 8.89% $11.19 2007 3 4,019 1.89% 52,112 1.71% 12.97 2008 15 30,682 14.45% 368,444 12.10% 12.01 2009 6 13,701 6.45% 204,053 6.70% 14.89 2010 5 10,278 4.84% 203,392 6.68% 19.79 2011 12 25,184 11.86% 415,703 13.65% 16.51 2012 8 27,079 12.75% 314,042 10.31% 11.60 2013 2 13,120 6.18% 124,820 4.10% 9.51 2014 6 14,403 6.78% 338,293 11.11% 23.49 2015 2 2,798 1.32% 46,721 1.53% 16.70 2016 1 7,752 3.65% 111,230 3.65% 14.35 2017 2 7,523 3.54% 124,788 4.10% 16.59 2018 1 6,957 3.28% 50,004 1.64% 7.19 2019 1 3,141 1.48% 42,000 1.38% 13.37 2020 1 5,157 2.43% 150,842 4.95% 29.25 2021 1 16,384 7.71% 192,512 6.32% - 2022 1 - 0.00% 35,000 1.15% - ------------------------------------------------------------------------------------ Total Occupied 76 212,375 100.00% $3,044,679 100.00% $14.34 -------------------------------------------- Total Vacant 116,835 ------------ Total Square Feet 329,210 ============ -------------------------------------------- Fund I Total Tenant Expirations Month to Month 9 24,197 1.40% $270,723 1.80% $11.19 2007 3 4,019 0.23% 52,112 0.35% 12.97 2008 15 30,682 1.77% 368,444 2.45% 12.01 2009 32 1,043,081 60.19% 7,595,364 50.52% 7.28 2010 5 10,278 0.59% 203,392 1.35% 19.79 2011 12 25,184 1.45% 415,703 2.76% 16.51 2012 10 37,579 2.17% 629,042 4.18% 16.74 2013 2 13,120 0.76% 124,820 0.83% 9.51 2014 6 14,403 0.83% 338,293 2.25% 23.49 2015 2 2,798 0.16% 46,721 0.31% 16.70 2016 3 66,067 3.81% 514,093 3.42% 7.78 2017 7 144,852 8.36% 845,331 5.62% 5.84 2018 1 6,957 0.40% 50,004 0.33% 7.19 2019 1 3,141 0.18% 42,000 0.28% 13.37 2020 1 5,157 0.30% 150,842 1.00% 29.25 2021 3 82,621 4.77% 886,207 5.89% 10.73 2022 2 59,159 3.41% 1,166,604 7.76% 19.72 2024 1 70,400 4.06% 281,600 1.87% 4.00 2026 2 74,000 4.27% 582,500 3.87% 7.87 2080 1 15,497 0.89% 475,000 3.16% - --------------------------------- -------------------------------- Total Occupied 118 1,733,192 100.00% $15,038,795 100.00% $8.68 -------------------------------------------- Total Vacant 198,268 ------------ Total Square Feet 1,931,460 ============ -------------------------------------------- Fund II Anchor Tenant Expirations 2007 - - 0.00% - 0.00% - 2008 - - 0.00% - 0.00% - 2011 2 249,334 100.00% 4,162,222 100.00% 16.69 --------------------------------- -------------------------------- Total Occupied 2 249,334 100.00% $4,162,222 100.00% $16.69 -------------------------------------------- Total Vacant - ------------ Total Square Feet 249,334 ============ -------------------------------------------- Fund II Shop Tenant Expirations Month to Month 3 34,917 22.23% $840,906 17.76% $24.08 2007 - - 0.00% - 0.00% - 2009 - - 0.00% - 0.00% - 2010 - - 0.00% - 0.00% - 2011 2 24,065 15.32% 584,774 12.35% 24.30 2012 3 27,205 17.32% 573,208 12.11% 21.07 2027 1 60,000 38.20% 2,340,000 49.43% 39.00 2032 1 10,880 6.93% 394,944 8.34% 36.30 --------------------------------- -------------------------------- Total Occupied 10 157,067 100.00% $4,733,832 100.00% $30.14 -------------------------------------------- Total Vacant 6,208 ------------ Total Square Feet 163,275 ============ -------------------------------------------- Fund II Total Tenant Expirations Month to Month 3 34,917 8.59% $840,906 9.45% $24.08 2007 - - 0.00% - 0.00% - 2008 - - 0.00% - 0.00% - 2009 - - 0.00% - 0.00% - 2010 - - 0.00% - 0.00% - 2011 4 273,399 67.28% 4,746,996 53.37% 17.36 2012 3 27,205 6.69% 573,208 6.44% 21.07 2027 1 60,000 14.76% 2,340,000 26.30% 39.00 2032 1 10,880 2.68% 394,944 4.44% 36.30 --------------------------------- -------------------------------- Total Occupied 12 406,401 100.00% $8,896,054 100.00% $21.89 -------------------------------------------- Total Vacant 6,208 ------------ Total Square Feet 412,609 ============
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Property Demographics (1) ------------------------- ----------------------------------------- 3-Mile Radius(2) ----------------------------------------- Trade Cash (2) # Property / JV Area Base Total Total Households Median HH Avg. HH Classification Ownership % City State (Miles) Rent GLA Pop. ("HH") Income Income - -------------- --------------------- -------------------------- ---------- --------- --------- ---------- ---------- --------- Core Brandywine Town Wilmington DE Center & Mkt Sq./22.22% 3 15,839,735 997,561 41,222 15,054 $83,769 $102,192 Core Elmwood Park Shopping Elmwood Park NJ Ctr. 3 3,467,180 149,491 257,647 83,959 52,609 62,446 Core Chestnut Hill Philadelphia PA 3 1,292,372 40,570 148,084 59,791 53,526 65,990 Core Abington Towne Center Abington PA 3 965,201 216,355 91,293 34,692 66,882 82,491 Core Clark & Diversey Chicago IL 3 803,866 19,265 419,461 213,740 58,803 81,579 Core Hobson West Plaza Naperville IL 3 1,212,095 98,902 98,083 34,231 94,977 114,120 Core Methuen Shopping Ctr. Methuen MA 5 958,689 130,021 89,957 31,569 41,619 49,981 Core Crossroads Shopping White Plains NY Ctr. / 49% 3 6,016,817 310,624 105,870 39,349 78,556 85,621 Core The Branch Plaza Smithtown NY 3 2,466,122 125,751 68,832 23,221 89,522 113,455 Core Amboy Road Staten IslandNY 3 1,537,951 60,090 156,384 56,991 69,666 90,260 Core Village Commons Smithtown NY Shopping Ctr. 3 2,300,259 87,169 68,832 23,221 89,522 113,455 Core Bloomfield Town Bloomfield MI Square Hills 5 2,946,698 232,181 62,528 23,953 73,997 102,234 Core Crescent Plaza Brockton MA 3 1,748,470 218,141 99,649 34,369 46,062 56,826 Core 239 Greenwich Avenue Greenwich CT / 75% 5 1,397,621 16,834 67,165 24,889 97,270 125,159 Core Town Line Plaza Rocky Hill CT 3 1,626,923 206,356 45,606 19,067 65,917 75,855 Core New Loudon Center Latham NY 5 1,713,664 255,826 41,815 15,619 55,375 66,288 Core Pacesetter Park Pomona NY Shopping Ctr. 3 1,104,121 96,698 25,618 8,209 89,598 125,526 Core 2914 Third Ave The Bronx NY 3 844,000 43,500 1,239,853 422,421 26,865 33,419 Core LA Fitness, Staten Staten IslandNY Island 3 1,265,000 51,494 127,542 45,026 65,178 83,167 Core West 54th Street Manhattan NY 3 2,345,221 9,814 582,613 325,406 80,037 96,770 Core Mad River Station Dayton OH 5 1,534,208 155,838 58,692 25,428 58,119 67,529 Core Mark Plaza Edwardsville PA 5 992,171 216,401 87,986 37,409 31,982 39,628 Core Blackman Plaza Wilkes-Barre PA 5 288,919 125,264 58,885 24,646 30,982 40,002 Core Bartow Avenue The Bronx NY 3 401,429 14,676 567,476 209,231 40,253 47,643 Core Walnut Hill Plaza Woonsocket RI 5 2,308,002 284,717 60,322 22,861 42,715 47,867 Core Ledgewood Mall Ledgewood NJ 5 4,255,215 517,192 37,052 13,412 80,007 87,773 Core A & P Shopping Plaza Boonton NJ / 60% 5 1,252,985 62,908 49,442 18,288 87,533 113,042 Core Merrillville Plaza Hobart IN 5 2,549,859 235,678 26,118 10,066 56,556 64,248 Core The Gateway Shopping So. VT Ctr. Burlington 3 1,801,884 101,784 46,879 19,366 44,294 55,033 Core Marketplace of Absecon NJ Absecon 3 1,651,634 105,135 30,732 11,642 52,106 64,775 Core Plaza 422 Lebanon PA 3 444,020 155,149 43,975 17,347 36,874 47,144 Core Route 6 Plaza Honesdale PA 5 1,083,431 175,505 7,567 3,014 32,283 43,919 Fund I Granville Center / Columbus OH 37.78% 3 663,086 134,997 112,547 47,337 47,547 53,746 Fund I Sheffield Crossing / Sheffield OH 37.78% 3 1,206,020 112,534 28,714 10,621 54,485 64,626 Fund I Amherst Marketplace / Amherst OH 37.78% 3 889,667 79,945 53,342 20,470 45,506 55,396 Fund I Sterling Heights Sterling MI Shopping Center / Heights 18.9% 3 677,459 154,835 99,813 36,587 66,886 77,416 Fund I Tarrytown Shopping Tarrytown NY Center / 37.78% 3 914,319 35,291 36,856 13,450 78,415 95,294 Fund I Hitchcock Plaza/ 7.6% Aiken SC 5 1,567,283 217,261 23,976 9,393 50,934 64,402 Fund I Haygood Shopping Virginia VA Center / 18.9% Beach 3 1,758,150 178,497 99,119 38,035 52,505 60,732 Fund II- Urban 400 East Fordham Road The Bronx NY In-Fill / 19.2% 2 - - 1,205,053 412,674 30,252 38,298 Fund II- Urban Sherman Avenue / Manhattan NY In-Fill 19.2% 2 - - 535,739 175,108 29,260 36,324 Fund II- Urban Pelham Manor Shopping Westchester NY In-Fill Plaza / 19.2% 3 - - 398,727 147,238 48,697 56,116 Fund II- Urban 161st Street /19.2% The Bronx NY In-Fill 2 5,336,110 223,521 1,274,483 427,111 25,104 31,477 Fund II- Urban Liberty Avenue / Queens NY In-Fill 19.2% 3 394,944 17,088 613,457 201,509 44,915 59,078 Fund II- Urban 216th Street / 19.2% Manhattan NY In-Fill 2 2,340,000 60,000 536,119 183,542 30,978 41,481 Fund II- Other Oakbrook/ 20% Oakbrook IL 3 825,000 112,000 77,560 29,487 77,130 108,955 - -------------- --------------------- -------------------------- ---------- --------- --------- ---------- ---------- ----------- 86,987,800 6,842,859 ---------- ---------
TOTAL --------- ---------- ---------- --------- Weighted Average - Based on GLA 120,156 43,082 $61,830 $74,882 --------- ---------- ---------- --------- Weighted Average - Based on base rent( 1) 148,306 58,099 $65,050 $79,438 --------- ---------- ---------- --------- CORE --------- ---------- ---------- --------- Weighted Average - Based on GLA 76,792 28,528 $64,614 $78,039 --------- ---------- ---------- --------- Weighted Average - Based on base rent( 1) 126,718 51,278 $66,376 $81,027 --------- ---------- ---------- --------- FUND I --------- ---------- ---------- --------- Weighted Average - Based on GLA 68,260 26,486 $54,469 $64,749 --------- ---------- ---------- --------- Weighted Average - Based on base rent( 1) 61,262 23,723 $56,527 $67,210 --------- ---------- ---------- --------- FUND II -Urban In-fill --------- ---------- ---------- --------- Weighted Average - Based on GLA 1,089,534 365,672 $27,403 $35,043 --------- ---------- ---------- --------- Weighted Average - Based on base rent( 1) 1,028,067 345,455 $27,776 $35,728 --------- ---------- ---------- --------- FUND II -Other --------- ---------- ---------- --------- Weighted Average - Based on GLA 77,560 29,487 $77,130 $108,955 --------- ---------- ---------- --------- Weighted Average - Based on base rent( 1) 77,560 29,487 $77,130 $108,955 --------- ---------- ---------- --------- (1) Does not include the Kroger/Safeway Portfolio. Base rent for joint ventures has been pro-rated based on the Company's ownership % in the joint venture. (2) West 54th Street, Sherman 161st Street and 216th Street figures are for 2 mile radius
5-Mile Radius ---------------------------------------------------------- Total # Median HH Avg. HH Classification Pop. HH Income Income - ------------------------------------------- ------------- ----------- ------------- ----------- Core 120,306 46,004 $74,110 $93,425 Core 614,727 208,535 57,938 69,562 Core 399,921 157,197 52,171 65,291 Core 304,127 117,213 59,851 70,401 Core 969,623 410,327 51,138 67,593 Core 241,153 82,668 93,969 113,986 Core 201,503 72,943 47,894 56,306 Core 205,109 73,112 93,445 108,276 Core 199,361 64,663 82,867 105,093 Core 292,132 105,178 66,927 88,388 Core 199,361 64,663 82,867 105,093 Core 166,443 62,677 79,970 105,922 Core 168,246 58,789 46,062 56,826 Core 142,822 51,210 94,119 119,232 Core 153,302 61,023 57,724 68,679 Core 151,655 61,034 47,547 61,261 Core 129,143 36,828 72,841 102,767 Core 2,690,882 1,034,060 45,279 56,415 Core 457,912 162,076 60,236 77,922 Core 2,424,848 1,048,312 55,446 67,194 Core 135,000 56,693 60,560 71,601 Core 124,868 52,566 34,683 43,184 Core 111,991 47,249 33,391 41,275 Core 1,435,467 511,796 30,552 43,522 Core 95,320 35,238 50,142 56,573 Core 108,922 38,302 77,480 89,838 Core 101,266 36,438 86,509 106,011 Core 87,796 32,151 54,709 62,531 Core 69,993 28,186 47,104 57,514 Core 68,326 26,137 51,610 62,711 Core 61,197 23,615 41,055 51,545 Core 11,899 4,627 34,031 46,300 Fund I 266,313 108,411 53,466 60,719 Fund I 110,797 41,494 49,602 59,866 Fund I 98,291 37,263 41,483 52,190 Fund I 264,560 103,403 63,816 74,661 Fund I 123,546 43,654 85,757 103,311 Fund I 44,606 16,968 42,687 55,503 Fund I 225,653 86,122 54,074 62,011 Fund II- Urban In-Fill 1,997,909 698,322 33,259 40,957 Fund II- Urban In-Fill 2,049,516 721,521 34,366 42,608 Fund II- Urban In-Fill 1,109,022 403,897 44,956 53,542 Fund II- Urban In-Fill 2,531,473 966,482 37,307 48,034 Fund II- Urban In-Fill 613,457 201,509 44,915 59,078 Fund II- Urban In-Fill 536,119 183,542 30,978 41,481 Fund II- Other 288,932 108,039 75,456 97,126 - ------------------------------------------- ------------- ----------- ------------- ----------- TOTAL ------------- ----------- ------------- ----------- Weighted Average - Based on GLA 266,479 100,208 $60,790 $74,532 --------------- ----------- ------------- ----------- Weighted Average - Based on base rent( 1) 360,141 138,453 $61,324 $75,281 --------------- ----------- ------------- ----------- CORE ------------- ----------- ------------- ----------- Weighted Average - Based on GLA 186,891 69,647 $63,190 $77,482 --------------- ----------- ------------- ----------- Weighted Average - Based on base rent( 1) 325,213 125,403 $62,184 $76,311 --------------- ----------- ------------- ----------- FUND I ------------- ----------- ------------- ----------- Weighted Average - Based on GLA 165,948 64,480 $52,498 $62,888 --------------- ----------- ------------- ----------- Weighted Average - Based on base rent( 1) 156,106 59,755 $56,318 $67,353 --------------- ----------- ------------- ----------- FUND II -Urban In-fill ------------ ----------- ------------- ----------- Weighted Average - Based on GLA 2,024,182 766,727 $36,476 $47,354 --------------- ----------- ------------- ----------- Weighted Average - Based on base rent( 1) 1,859,115 702,055 $35,844 $46,675 --------------- ----------- ------------- ----------- FUND II -Other ------------ ----------- ------------- ----------- Weighted Average - Based on GLA 288,932 108,039 $75,456 $97,126 --------------- ----------- ------------- ----------- Weighted Average - Based on base rent( 1) 288,932 108,039 $75,456 $97,126 --------------- ----------- ------------- ----------- (1) Does not include the Kroger/Safeway Portfolio. Base rent for joint ventures has been pro-rated based on the Company's ownership % in the joint venture. (2) West 54th Street, Sherman 161st Street and 216th Street figures are for 2 mile radius
QUARTERLY SUPPLEMENTAL DISCLOSURE September 30, 2007 Residential (Multi-family) Properties - ----------------------------------------- % Occupied % Occupied Property Location Square Feet Units September 30, 2007 June 30, 2007 -------- -------- ----------- ----- ------------------ ------------- Mid-Atlantic North Carolina -------------- Village Apartments Winston Salem 578,706 600 94% 89% Mid-West Missouri -------- Gate House, Holiday House, Tiger Village, Columbia 625,545 874 86% 92% Colony Apartments (1) ------------------------------------------------------------- Totals 1,204,251 1,474 89% 91% ============================================================= (1) As this property has tenants associated with the University of Missouri, occupancy trends are correlated to semester sessions
-----END PRIVACY-ENHANCED MESSAGE-----