| Reporting Supplement | | | | | | | | | | | |
| September 30, 2010 | | | | | | | | | | | |
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| | Important Notes | | | | | | | | | | |
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| SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS | | | | | | |
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| 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. |
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| USE OF FUNDS FROM OPERATIONS AS NON-GAAP FINANCIAL MEASURE | | | | | |
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| The Company considers funds from operations (“FFO”) as defined by the National Association of Real Estate Investment Trusts (“NAREIT”) |
| to be an appropriate supplemental disclosure of operating performance for an equity REIT due to its widespread acceptance and use within the |
| REIT and analyst communities. FFO is presented to assist investors in analyzing the performance of the Company. It is helpful as it excludes |
| various items included in net income that are not indicative of the operating performance, such as gains (or losses) from sales of property and |
| depreciation and amortization. However, the Company’s method of calculating FFO may be different from methods used by other REITs and, |
| accordingly, may not be comparable to such other REITs. FFO does not represent cash generated from operations as defined by generally |
| accepted accounting principles (“GAAP”) and is not indicative of cash available to fund all cash needs, including distributions. It should not be |
| considered as an alternative to net income for the purpose of evaluating the Company’s performance or to cash flows as a measure of liquidity. |
| Consistent with the NAREIT definition, the Company defines FFO as net income (computed in accordance with GAAP), excluding gains (or |
| losses) from sales of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint |
| ventures. In addition, the Company also discloses FFO as adjusted to include the extraordinary gain from its RCP investment in Albertson's. |
| The Company believes that income or gains derived from its RCP investments, including its investment in Albertson's, are private-equity |
| investments and, as such, should be treated as operating income and therefore FFO. The Company believes that this supplement adjustment |
| more appropriately reflects the results of its operations. The Company also provides two other supplemental disclosures of operating |
| performance, adjusted funds from operations ("AFFO") and funds available for distribution ("FAD"). The Company defines AFFO as FFO adjusted |
| for straight line rent, non-real estate depreciation, amortization of finance costs and costs of management contracts, tenant improvements, |
| leasing commissions and capital expenditures. The Company defines FAD as AFFO adjusted for scheduled debt principal payments. |
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| USE OF EBITDA AND NOI AS NON-GAAP FINANCIAL MEASURES | | | | | | |
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| EBITDA and NOI are widely used financial measures in many industries, including the REIT industry, and are presented to assist investors and analysts |
| in analyzing the performance of the Company. They are helpful as they exclude various items included in net income that are not indicative of |
| operating performance, such as gains (or losses) from sales of property and depreciation and amortization and is used in computing various |
| financial ratios as a measure of operational performance. The Company computes EBITDA as the sum of net income before extraordinary items |
| plus interest expense, depreciation, income taxes and amortization, less any gains (losses including impairment charges) on the sale of income |
| producing properties. The Company computes NOI by taking the difference between Property Revenues and Property Expenses as detailed in this |
| reporting supplement. The Company’s method of calculating EBITDA and NOI may be different from methods used by other REITs and, accordingly, |
| may not be comparable to such other REITs. EBITDA and NOI do not represent cash generated from operations as defined by GAAP and are not |
| indicative of cash available to fund all cash needs, including distributions. They should not be considered as an alternative to net income for the purpose |
| of evaluating the Company’s performance or to cash flows as a measure of liquidity. | | | | |
