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EX-21 - SUBSIDIARIES OF REGENCY CENTERS CORPORATION - REGENCY CENTERS CORPdex21.htm
EX-31.2 - SECTION 302 CERTIFICATION OF CFO FOR REGENCY CENTERS CORPORATION - REGENCY CENTERS CORPdex312.htm
EX-23.2 - CONSENT OF KPMG LLP FOR REGENCY CENTERS CORPORATION - REGENCY CENTERS CORPdex232.htm
EX-31.3 - SECTION 302 CERTIFICATION OF CEO FOR REGENCY CENTERS, L.P. - REGENCY CENTERS CORPdex313.htm
EX-32.4 - SECTION 906 CERTIFICATION OF CFO FOR REGENCY CENTERS, L.P. - REGENCY CENTERS CORPdex324.htm
EX-23.1 - CONSENT OF KPMG LLP FOR REGENCY CENTERS CORPORATION - REGENCY CENTERS CORPdex231.htm
EX-32.1 - SECTION 906 CERTIFICATION OF CEO FOR REGENCY CENTERS CORPORATION - REGENCY CENTERS CORPdex321.htm
EX-31.4 - SECTION 302 CERTIFICATION FOR CFO FOR REGENCY CENTERS, L.P. - REGENCY CENTERS CORPdex314.htm
EX-32.3 - SECTION 906 CERTIFICATION OF CEO FOR REGENCY CENTERS, L.P. - REGENCY CENTERS CORPdex323.htm
EX-31.1 - SECTION 302 CERTIFICATION OF CEO FOR REGENCY CENTERS CORPORATION - REGENCY CENTERS CORPdex311.htm
EX-32.2 - SECTION 906 CERTIFICATION OF CFO FOR REGENCY CENTERS CORPORATION - REGENCY CENTERS CORPdex322.htm
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

FORM 10-K

 

 

 

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2009

or

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number 1-12298 (Regency Centers Corporation)

Commission File Number 0-24763 (Regency Centers, L.P.)

 

 

REGENCY CENTERS CORPORATION

REGENCY CENTERS, L.P.

(Exact name of registrant as specified in its charter)

 

 

 

FLORIDA (REGENCY CENTERS CORPORATION)   59-3191743
DELAWARE (REGENCY CENTERS, L.P)   59-3429602

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

identification No.)

 

One Independent Drive, Suite 114

Jacksonville, Florida 32202

 

(904) 598-7000

(Address of principal executive offices) (zip code)   (Registrant’s telephone No.)

 

 

Securities registered pursuant to Section 12(b) of the Act:

Regency Centers Corporation

 

Title of each class

 

Name of each exchange on which registered

Common Stock, $.01 par value   New York Stock Exchange
7.45% Series 3 Cumulative Redeemable Preferred Stock, $.01 par value   New York Stock Exchange
7.25% Series 4 Cumulative Redeemable Preferred Stock, $.01 par value   New York Stock Exchange
6.70% Series 5 Cumulative Redeemable Preferred Stock, $.01 par value   New York Stock Exchange

Regency Centers, L.P.

Title of each class

 

Name of each exchange on which registered

None   N/A

 

 

Securities registered pursuant to Section 12(g) of the Act:

Regency Centers Corporation: None

Regency Centers, L.P.: Class B Units of Partnership Interest

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

 

Regency Centers Corporation    YES  x    NO  ¨    Regency Centers, L.P.    YES  x    NO  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

 

Regency Centers Corporation    YES  ¨    NO  x    Regency Centers, L.P.    YES  ¨    NO  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days.

 

Regency Centers Corporation    YES  x    NO  ¨    Regency Centers, L.P.    YES  x    NO  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

 

Regency Centers Corporation    YES  ¨    NO  ¨    Regency Centers, L.P.    YES  ¨    NO  ¨


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Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

 

Regency Centers Corporation   ¨   Regency Centers, L.P.   ¨

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

Regency Centers Corporation:

 

Large accelerated filer   x    Accelerated filer   ¨
Non-accelerated filer   ¨    Smaller reporting company   ¨

Regency Centers, L.P.:

 

Large accelerated filer   ¨    Accelerated filer   x
Non-accelerated filer   ¨    Smaller reporting company   ¨

Indicate by check mark whether the registrant is a shell company.

 

Regency Centers Corporation    YES  ¨    NO  x    Regency Centers, L.P.    YES  ¨    NO  x

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter.

 

Regency Centers Corporation: $2,744,244,309   Regency Centers, L.P.: N/A

The number of shares outstanding of the Regency Centers Corporation’s voting common stock was 81,561,952 as of February 26, 2010.

Documents Incorporated by Reference

Portions of Regency Centers Corporation’s proxy statement in connection with its 2010 Annual Meeting of Stockholders are incorporated by reference in Part III.

 

 

 


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EXPLANATORY NOTE

This report combines the annual reports on Form 10-K for the year ended December 31, 2009 of Regency Centers Corporation and Regency Centers, L.P. Unless stated otherwise or the context otherwise requires, references to “Regency Centers Corporation” or the “Parent Company” mean Regency Centers Corporation and its controlled subsidiaries; and references to “Regency Centers, L.P.” or the “Operating Partnership” mean Regency Centers, L.P. and its controlled subsidiaries. The term “the Company” or “Regency” means the Parent Company and the Operating Partnership, collectively.

The Parent Company is a real estate investment trust (“REIT”) and the general partner of the Operating Partnership. The Operating Partnership’s capital includes general and limited common Partnership Units (“Units”). As of December 31, 2009, the Parent Company owned approximately 99% of the Units in the Operating Partnership and the remaining limited Units are owned by investors. The Parent Company owns all of the Series 3, 4 and 5 Preferred Units of the Operating Partnership. As the sole general partner of the Operating Partnership, the Parent Company has exclusive control of the Operating Partnership’s day-to-day management.

The Company believes combining the annual reports on Form 10-K of the Parent Company and the Operating Partnership into this single report provides the following benefits:

 

   

enhances investors’ understanding of the Parent Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;

 

   

eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the Company’s disclosure applies to both the Parent Company and the Operating Partnership; and

 

   

creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

Management operates the Parent Company and the Operating Partnership as one business. The management of the Parent Company consists of the same members as the management of the Operating Partnership. These members are officers of the Parent Company and employees of the Operating Partnership.

The Company believes it is important to understand the few differences between the Parent Company and the Operating Partnership in the context of how the Parent Company and the Operating Partnership operate as a consolidated company. The Parent Company is a REIT, whose only material asset is its ownership of partnership interests of the Operating Partnership. As a result, the Parent Company does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing public equity from time to time and guaranteeing certain debt of the Operating Partnership. The Parent Company does not hold any indebtedness, but guarantees all of the unsecured public debt and less than 10% of the secured debt of the Operating Partnership. The Operating Partnership holds all the assets of the Company and retains the ownership interests in the Company’s joint ventures. Except for net proceeds from public equity issuances by the Parent Company, which are contributed to the Operating Partnership in exchange for partnership units, the Operating Partnership generates all remaining capital required by the Company’s business. These sources include the Operating Partnership’s operations, its direct or indirect incurrence of indebtedness, and the issuance of partnership units.

Stockholders’ equity, partners’ capital, and noncontrolling interests are the main areas of difference between the consolidated financial statements of the Parent Company and those of the Operating Partnership. The Operating Partnership’s capital includes general and limited common Partnership Units, Series 3, 4, and 5 Preferred Units owned by the Parent Company, and Series D Preferred Units owned by institutional investors. The Series D preferred units and limited partners’ units in the Operating Partnership owned by third parties are accounted for in partners’ capital in the Operating Partnership’s financial statements and outside of stockholders’ equity in noncontrolling interests in the Parent Company’s financial statements. The Series 3, 4, and 5 Preferred Units owned by the Parent Company are eliminated in consolidation in the accompanying consolidated financial statements of the Parent Company and are classified as preferred units of general partner in the accompanying consolidated financial statements of the Operating Partnership.

In order to highlight the differences between the Parent Company and the Operating Partnership, there are sections in this report that separately discuss the Parent Company and the Operating Partnership, including separate


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financial statements, controls and procedures sections, and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure for the Parent Company and the Operating Partnership, this report refers to actions or holdings as being actions or holdings of the Company.

As general partner with control of the Operating Partnership, the Parent Company consolidates the Operating Partnership for financial reporting purposes, and the Parent Company does not have assets other than its investment in the Operating Partnership. Therefore, while stockholders’ equity and partners’ capital differ as discussed above, the assets and liabilities of the Parent Company and the Operating Partnership are the same on their respective financial statements.


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TABLE OF CONTENTS

 

Item No.

   Form 10-K
Report Page
PART I

1.

  

Business

   1

1A.

  

Risk Factors

   4

1B.

  

Unresolved Staff Comments

   12

2.

  

Properties

   13

3.

  

Legal Proceedings

   29

4.

  

Submission of Matters to a Vote of Security Holders

   29
PART II

5.

  

Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

   29

6.

  

Selected Financial Data

   32

7.

  

Management’s Discussion and Analysis of Financial Condition and Results of Operations

   34

7A.

  

Quantitative and Qualitative Disclosures about Market Risk

   63

8.

  

Financial Statements and Supplementary Data

   65

9.

  

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

   128

9A.

  

Controls and Procedures

   128

9B.

  

Other Information

   129
PART III

10.

  

Directors, Executive Officers, and Corporate Governance

   130

11.

  

Executive Compensation

   130

12.

  

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

   131

13.

  

Certain Relationships and Related Transactions, and Director Independence

   131

14.

  

Principal Accountant Fees and Services

   131
PART IV

15.

  

Exhibits and Financial Statement Schedules

   132
SIGNATURES

16.

  

Signatures

   137


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Forward-Looking Statements

In addition to historical information, the following information contains forward-looking statements as defined under federal securities laws. These forward-looking statements include statements about anticipated changes in our revenues, the size of our development program, earnings per share and unit, returns and portfolio value, and expectations about our liquidity. These statements are based on current expectations, estimates and projections about the industry and markets in which Regency Centers Corporation (the “Parent Company”) and Regency Centers, L.P. (the “Operating Partnership”), collectively “Regency” or “the Company”, operate, and management’s beliefs and assumptions. Forward-looking statements are not guarantees of future performance and involve certain known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, changes in national and local economic conditions including the impact of a slowing economy; financial difficulties of tenants; competitive market conditions, including timing and pricing of acquisitions and sales of properties and out-parcels; changes in expected leasing activity and market rents; timing of development starts and sales of properties and out-parcels; meeting development schedules; our inability to exercise voting control over the co-investment partnerships through which we own or develop many of our properties; weather; consequences of any armed conflict or terrorist attack against the United States; and the ability to obtain governmental approvals. For additional information, see “Risk Factors” elsewhere herein. The following discussion should be read in conjunction with the accompanying Consolidated Financial Statements and Notes thereto of Regency Centers Corporation and Regency Centers, L.P. appearing elsewhere herein.

PART I

 

Item 1. Business

Regency Centers Corporation began its operations as a Real Estate Investment Trust (“REIT”) in 1993 and is the managing general partner in Regency Centers, L.P. ). The term “the Company” or “Regency” means the Parent Company and the Operating Partnership, collectively. Our key strategic goals are focused on total share and unit holder return in excess of peer indices and sustaining growth in net asset value and earnings. We will achieve these goals through owning, operating and investing in a high-quality portfolio of primarily grocery-anchored shopping centers that are tenanted by market-dominant grocers, category-leading anchors, specialty retailers, and restaurants located in areas with above average household incomes and population densities. All of our operating, investing, and financing activities are performed through the Operating Partnership, its wholly-owned subsidiaries, and through its investments in real estate partnerships with third parties (also referred to as co-investment partnerships or joint ventures). The Parent Company currently owns 99% of the outstanding common partnership units of the Operating Partnership. Because of our structure and certain public debt financing, the Operating Partnership is also a registrant.

At December 31, 2009, we directly owned 216 shopping centers located in 23 states representing 23.0 million square feet of gross leasable area (“GLA”). Through co-investment partnerships, we own partial ownership interests in 184 shopping centers located in 25 states and the District of Columbia representing 22.0 million square feet of GLA. The shopping center portfolio that we manage, on a Combined Basis, represents 400 shopping centers located in 28 states and the District of Columbia and contains 45.0 million square feet of GLA.

We earn revenues and generate cash flow by leasing space in our shopping centers to grocery stores, major retail anchors, side-shop retailers, and restaurants, including ground leasing or selling building pads (out-parcels) to these same types of tenants. Historically, we have experienced growth in revenues by increasing occupancy and rental rates in our existing shopping centers, and by acquiring and developing new shopping centers. Our shopping centers generate substantial daily traffic by conveniently offering necessities and services. This high traffic generates increased sales, thereby driving higher occupancy and rental-rate growth, which we expect will provide sustained growth in earnings per share and unit, and net asset value over the long term.

We seek a range of strong national, regional and local specialty retailers, for the same reason that we choose to anchor our centers with leading grocers and major retailers who provide a mix of goods and services that meet consumer needs. We have created a formal partnering process, the Premier Customer Initiative (“PCI”), to promote mutually beneficial relationships with our side-shop retailers. The objective of PCI is for us to build a base of non-anchor tenants who represent the “best-in-class” operators in their respective merchandising categories. Such retailers reinforce the consumer appeal and other strengths of a center’s anchor, help grow and stabilize a center’s occupancy, reduce re-leasing downtime, reduce tenant turnover, and yield higher sustainable rents.

We grow our shopping center portfolio through acquisitions of operating centers and shopping center development. We will continue to use our unique combination of development capabilities, market presence, and

 

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anchor relationships to invest in value-added opportunities sourced from distressed owners, the redevelopment of existing centers, developing land that we already own, and other opportunities. Development is customer driven, meaning we generally have an executed lease from the anchor before we start construction. Developments serve the growth needs of our anchors and specialty retailers, resulting in modern shopping centers with long-term anchor leases that produce attractive returns on our invested capital. This development process typically requires three to five years from initial land or redevelopment acquisition through construction, lease-up, and stabilization of rental income, but can take longer depending upon tenant demand for new stores and the size of the project.

We also invest in real estate partnerships. These co-investment partnerships provide us with a reliable capital source for shopping center acquisitions, as well as the opportunity to earn fees for asset management, property management, and other investing and financing services. As asset manager, we are engaged by our partners to apply similar operating, investment and capital strategies to the portfolios owned by the co-investment partnerships as those applied to the portfolio that we wholly-own. Co-investment partnerships also grow their shopping center investments through acquisitions from third parties or direct purchases from us.

Competition

We are among the largest owners of shopping centers in the nation based on revenues, number of properties, gross leasable area, and market capitalization. There are numerous companies and private individuals engaged in the ownership, development, acquisition, and operation of shopping centers which compete with us in our targeted markets. This results in competition for attracting anchor tenants, as well as the acquisition of existing shopping centers and new development sites. We believe that the principal competitive factors in attracting tenants in our market areas are location, demographics, rental costs, tenant mix, property age, and property maintenance. We believe that our competitive advantages include our locations within our market areas, the design quality of our shopping centers, the strong demographics surrounding our shopping centers, our relationships with our anchor tenants and our side-shop and out-parcel retailers, our PCI program that allows us to provide retailers with multiple locations, our practice of maintaining and renovating our shopping centers, and our ability to source and develop new shopping centers.

Changes in Policies

Our Board of Directors establishes the policies that govern our investment and operating strategies including, among others, development and acquisition of shopping centers, tenant and market focus, debt and equity financing policies, quarterly distributions to stock and unit holders, and REIT tax status. The Board of Directors may amend these policies at any time without a vote of our stockholders.

Employees

Our headquarters are located at One Independent Drive, Suite 114, Jacksonville, Florida. We presently maintain 18 market offices nationwide where we conduct management, leasing, construction, and investment activities. At December 31, 2009, we had 380 employees and we believe that our relations with our employees are good.

Compliance with Governmental Regulations

Under various federal, state and local laws, ordinances and regulations, we may be liable for the cost to remove or remediate certain hazardous or toxic substances at our shopping centers. These laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence of the hazardous or toxic substances. The cost of required remediation and the owner’s liability for remediation could exceed the value of the property and/or the aggregate assets of the owner. The presence of such substances, or the failure to properly remediate such substances, may adversely affect our ability to sell or lease the property or borrow using the property as collateral. We have a number of properties that could require or are currently undergoing varying levels of environmental remediation. Environmental remediation is not currently expected to have a material financial impact on us due to reserves for remediation, insurance programs designed to mitigate the cost of remediation, and various state-regulated programs that shift the responsibility and cost to the state.

Executive Officers

The executive officers of the Company are appointed each year by the Board of Directors. Each of the executive officers has been employed by the Company in the position or positions indicated in the list and pertinent notes below. Each of the executive officers has been employed by the Company for more than five years.

 

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Name

   Age   

Title

   Executive Officer in
Position Shown
Since
 

Martin E. Stein, Jr.

   57    Chairman and Chief Executive Officer    1993   

Brian M. Smith

   55    President and Chief Operating Officer    2005 (1) 

Bruce M. Johnson

   62   

Executive Vice President and Chief Financial Officer

   1993   

 

(1)

In February 2009, Brian M. Smith, Managing Director and Chief Investment Officer of the Company since 2005, was appointed to the position of President. Prior to serving as our Managing Director and Chief Investment Officer, from March 1999 to September 2005, Mr. Smith served as Managing Director of Investments for our Pacific, Mid-Atlantic, and Northeast divisions.

Company Website Access and SEC Filings

The Company’s website may be accessed at www.regencycenters.com. All of our filings with the Securities and Exchange Commission (“SEC”) can be accessed through our website promptly after filing; however, in the event that the website is inaccessible, we will provide paper copies of our most recent annual report on Form 10-K, the most recent quarterly report on Form 10-Q, current reports filed or furnished on Form 8-K, and all related amendments, excluding exhibits, free of charge upon request. These filings are also accessible on the SEC’s website at www.sec.gov.

General Information

The Company’s registrar and stock transfer agent is American Stock Transfer & Trust Company (“AST”), New York, New York. The Company offers a dividend reinvestment plan (“DRIP”) that enables its stockholders to reinvest dividends automatically, as well as to make voluntary cash payments toward the purchase of additional shares. For more information, contact AST’s Shareholder Services Group toll free at (866) 668-6550 or the Company’s Shareholder Relations Department.

The Company’s Independent Registered Public Accounting Firm is KPMG LLP, Jacksonville, Florida. The Company’s General Counsel is Foley & Lardner LLP, Jacksonville, Florida.

Annual Meeting

The Company’s annual meeting will be held at The River Club, One Independent Drive, 35th Floor, Jacksonville, Florida, at 11:00 a.m. on Tuesday, May 4, 2010.

 

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Item 1A. Risk Factors

Risk Factors Related to Our Industry and Real Estate Investments

Our revenues and cash flow could be adversely affected by poor market conditions where our properties are geographically concentrated.

Our performance depends on the economic conditions in markets in which our properties are concentrated. During the year ended December 31, 2009, our properties in California, Florida, and Texas accounted for 32.0%, 13.6%, and 15.4%, respectively, of our consolidated net operating income. Our revenues and cash available for distribution to stock and unit holders could be adversely affected by this geographic concentration if market conditions, such as supply of retail space or demand for shopping centers, deteriorate in California, Florida, and Texas relative to other geographic areas.

Loss of revenues from major tenants could reduce distributions to stock and unit holders.

We derive significant revenues from anchor tenants such as Kroger, Publix and Safeway that occupy more than one center. Kroger, Publix, and Safeway are our three largest tenants and accounted for 4.9%, 4.2%, and 3.7%, respectively, of our annualized base rent on a pro-rata basis for the year ended December 31, 2009. Distributions to stock and unit holders could be adversely affected by the loss of revenues in the event a major tenant:

 

   

becomes bankrupt or insolvent;

 

   

experiences a downturn in its business;

 

   

materially defaults on its leases;

 

   

does not renew its leases as they expire; or

 

   

renews at lower rental rates.

Vacated anchor space, including space owned by the anchor, can reduce rental revenues generated by the shopping center because of the loss of the departed anchor tenant’s customer drawing power. Most anchors have the right to vacate and prevent re-tenanting by paying rent for the balance of the lease term. If major tenants vacate a property, then other tenants may be entitled to terminate their leases at the property.

Our net income depends on the success and continued presence of our tenants.

Our net income could be adversely affected if we fail to lease significant portions of our new developments or in the event of bankruptcy or insolvency of any anchors or of a significant number of our non-anchor tenants within a shopping center. The adverse impact on our net income may be greater than the loss of rent from the resulting unoccupied space because co-tenancy clauses may allow other tenants to modify or terminate their rent or lease obligations. Co-tenancy clauses have several variants: they may allow a tenant to postpone a store opening if certain other tenants fail to open their store; they may allow a tenant the opportunity to close their store prior to lease expiration if another tenant closes their store prior to lease expiration; or more commonly, they may allow a tenant to pay reduced levels of rent until a certain number of tenants open their stores within the same shopping center. As the current recession continues to depress retail sales, we could experience reductions in rent and occupancy related to tenants exercising their co-tenancy clauses.

Downturns in the retail industry likely will have a direct adverse impact on our revenues and cash flow.

Our properties consist primarily of grocery-anchored shopping centers. Our performance therefore is generally linked to economic conditions in the market for retail space. The market for retail space has been or could be adversely affected by any of the following:

 

   

weakness in the national, regional and local economies, which could adversely impact consumer spending and retail sales and in turn tenant demand for space and increased store closings;

 

   

consequences of any armed conflict involving, or terrorist attack against, the United States;

 

   

the adverse financial condition of some large retail companies;

 

   

the ongoing consolidation in the retail sector;

 

   

the excess amount of retail space in a number of markets;

 

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increasing consumer purchases through catalogs;

 

   

reduction in the demand by tenants to occupy our shopping centers as a result of reduced consumer demand for certain retail formats such as video rental stores;

 

   

the timing and costs associated with property improvements and rentals;

 

   

changes in taxation and zoning laws;

 

   

adverse government regulation;

 

   

a shift in retail shopping from brick and mortar stores to Internet retailers;

 

   

the growth of super-centers, such as those operated by Wal-Mart, and their adverse effect on major grocery chains; and

 

   

the impact of increased energy costs on consumers and its consequential effect on the number of shopping visits to our centers;

To the extent that any of these conditions occur, they are likely to impact market rents for retail space, occupancy in the operating portfolios, our ability to recycle capital, and our cash available for distributions to stock and unit holders.

Our real estate assets may be subject to impairment charges.

On a periodic basis, we assess whether there are any indicators that the value of our real estate properties and other investments may be impaired. A property’s value is impaired only if our estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property are less than the carrying value of the property. If the aggregate future cash flows are less than the carrying value of property, we write down the property to its fair value. In our estimate of cash flows, we consider factors such as expected future operating income, trends and prospects, the effects of demand, competition and other factors. We are required to make subjective assessments as to whether there are impairments in the value of our real estate properties and other investments. These assessments have a direct impact on our net income because recording an impairment charge results in an immediate negative adjustment to net income. There can be no assurance that we will not take additional charges in the future related to the impairment of our assets. Any future impairment could have a material adverse effect on our results of operations in the period in which the charge is taken.

Unsuccessful development activities or a slowdown in development activities could reduce distributions to stock and unit holders.

We actively pursue development activities as opportunities arise. Development activities require various government and other approvals for entitlements which can significantly delay the development process. We may not recover our investment in development projects for which approvals are not received. We incur other risks associated with development activities, including:

 

   

the ability to lease up developments to full occupancy on a timely basis;

 

   

the risk that anchor tenants will not open and operate in accordance with their lease agreement;

 

   

the risk that occupancy rates and rents of a completed project will not be sufficient to make the project profitable and available for contribution to our co-investment partnerships or sale to third parties;

 

   

the risk that the current size in our development pipeline will strain the organization’s capacity to complete the developments within the targeted timelines and at the expected returns on invested capital;

 

   

the risk that we may abandon development opportunities and lose our investment in these developments;

 

   

the risk that development costs of a project may exceed original estimates, possibly making the project unprofitable;

 

   

delays in the development and construction process; and

 

   

the lack of cash flow during the construction period.

If developments are unsuccessful, funding provided from sales to co-investment partnerships and third parties may be materially reduced and our cash flow available for distribution to stock and unit holders will be reduced. Our earnings and cash flow available for distribution to stock and unit holders also may be reduced if we experience a significant slowdown in our development activities.

 

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We may experience difficulty or delay in renewing leases or re-leasing space.

We derive most of our revenue directly or indirectly from rent received from our tenants. We are subject to the risks that, upon expiration or termination of leases, whether by their terms, as a result of a tenant bankruptcy or otherwise, leases for space in our properties may not be renewed, space may not be re-leased, or the terms of renewal or re-lease, including the cost of required renovations or concessions to tenants, may be less favorable than current lease terms. As a result, our results of operations and our net income could be reduced.

Many real estate costs are fixed, even if income from our properties decreases.

Our financial results depend primarily on leasing space in our properties to tenants on terms favorable to us. Costs associated with real estate investment, such as real estate taxes, insurance and maintenance costs, generally are not reduced even when a property is not fully occupied, rental rates decrease, or other circumstances cause a reduction in income from the property. As a result, cash flow from the operations of our properties may be reduced if a tenant does not pay its rent or we are unable to rent our properties on favorable terms. Under those circumstances, we might not be able to enforce our rights as landlord without delays and may incur substantial legal costs. Additionally, new properties that we may acquire or develop may not produce any significant revenue immediately, and the cash flow from existing operations may be insufficient to pay the operating expenses and debt service associated with such new properties until they are fully leased.

We may be unable to sell properties when appropriate because real estate investments are illiquid.

Real estate investments generally cannot be sold quickly. We may not be able to alter our portfolio promptly in response to changes in economic or other conditions including being unable to sell a property at a return we believe is appropriate due to the current economic environment. Our inability to respond quickly to adverse changes in the performance of our investments could have an adverse effect on our ability to meet our obligations and make distributions to our stock and unit holders.

We carry comprehensive liability, fire, flood, extended coverage, rental loss, and environmental insurance for our properties with policy specifications and insured limits customarily carried for similar properties. We believe that the insurance carried on our properties is adequate and in accordance with industry standards. There are, however, some types of losses, such as from hurricanes, terrorism, wars or earthquakes, which may be uninsurable, or the cost of insuring against such losses may not be economically justifiable. If an uninsured loss occurs, we could lose both the invested capital in and anticipated revenues from the property, but we would still be obligated to repay any recourse mortgage debt on the property. In that event, our distributions to stock and unit holders could be reduced.

Adverse global market and economic conditions may continue to adversely affect us and could cause us to recognize additional impairment charges or otherwise harm our performance.

Ongoing adverse market and economic conditions and market volatility will likely continue to make it difficult to value the properties and investments owned by us and our joint ventures. There may be significant uncertainty in the valuation, or in the stability of the value, of such properties and investments that could result in a substantial decrease in the value thereof. No assurance can be given that we will be able to recover the current carrying amount of all of our properties, investments and intangibles and those of our joint ventures in the future. Our failure to do so would require us to recognize additional impairment charges for the period in which we reached that conclusion, which could materially and adversely affect us and the market price of our common stock.

We are unable to predict whether, or to what extent or for how long, these adverse market and economic conditions will persist. The continuation and/or intensification of these conditions may impede our ability to generate sufficient operating cash flow to pay expenses, maintain properties, pay dividends, distributions, and refinance debt.

We face competition from numerous sources.

The ownership of shopping centers is highly fragmented, with less than 10% owned by REIT’s. We face competition from other REIT’s as well as from numerous small owners in the acquisition, ownership, and leasing of shopping centers. We compete to develop shopping centers with other real estate investment trusts engaged in development activities as well as with local, regional, and national real estate developers.

 

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We compete for the acquisition of properties through proprietary research that identifies opportunities in markets with high barriers to entry and higher-than-average population growth and household income. We seek to maximize rents per square foot by (i) establishing relationships with supermarket chains that are first or second in their markets or other category-leading anchors and (ii) leasing non-anchor space in multiple centers to national or regional tenants. We compete to develop properties by applying our proprietary research methods to identify development and leasing opportunities and by pre-leasing a significant portion of a center before beginning construction.

There can be no assurance, however, that other real estate owners or developers will not utilize similar research methods and target the same markets and anchor tenants. These entities may successfully control these markets and tenants to our exclusion. If we cannot successfully compete in our targeted markets, our cash flow, and therefore distributions to stock and unit holders, may be adversely affected.

Costs of environmental remediation could reduce our cash flow available for distribution to stock and unit holders.

Under various federal, state and local laws, an owner or manager of real property may be liable for the costs of removal or remediation of hazardous or toxic substances on the property. These laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence of hazardous or toxic substances. The cost of any required remediation could exceed the value of the property and/or the aggregate assets of the owner.

We are subject to numerous environmental laws and regulations as they apply to our shopping centers pertaining to chemicals used by the dry cleaning industry, the existence of asbestos in older shopping centers, and underground petroleum storage tanks (UST’s). The presence of, or the failure to properly remediate, hazardous or toxic substances may adversely affect our ability to sell or lease a contaminated property or to borrow using the property as collateral. Any of these developments could reduce cash flow and distributions to stock and unit holders.

Risk Factors Related to Our Co-investment Partnerships and Acquisition Structure

We do not have voting control over our joint venture investments, so we are unable to ensure that our objectives will be pursued.

We have invested as a co-venturer in the acquisition or development of properties. These investments involve risks not present in a wholly-owned project. We do not have voting control over the ventures. The other co-venturer might (i) have interests or goals that are inconsistent with our interests or goals or (ii) otherwise impede our objectives. The other co-venturer also might become insolvent or bankrupt.

Our co-investment partnerships are an important part of our growth strategy. The termination of our co-investment partnerships could adversely affect distributions to stock and unit holders.

Our management fee income has increased significantly as our participation in co-investment partnerships has increased. If co-investment partnerships owning a significant number of properties were dissolved for any reason, we would lose the asset and property management fees from these co-investment partnerships, which could adversely affect our cash available for distribution to stock and unit holders.

In addition, termination of the co-investment partnerships without replacing them with new co-investment partnerships could adversely affect our growth strategy. Property sales to the co-investment partnerships provide us with an important source of funding for additional developments and acquisitions. Without this source of capital, our ability to recycle capital, fund developments and acquisitions, and increase distributions to stock and unit holders could be adversely affected.

Our co-investment partnerships have $2.5 billion of debt as of December 31, 2009, of which 54.8% will mature through 2012, which is subject to significant refinancing risks. We anticipate that as real estate values decline, the refinancing of maturing loans, including those maturing in our joint ventures, will require us and our joint venture partners to contribute our respective pro-rata shares of capital in order to reduce refinancing requirements to acceptable loan to value levels required for new financings. The long-term impact of the current economic crisis on our ability to access capital, including access by our joint venture partners, or to obtain future financing to fund maturing debt is unclear.

 

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Our partnership structure may limit our flexibility to manage our assets.

We invest in retail shopping centers through the Operating Partnership in which the Parent Company currently owns 99% of the outstanding common partnership units. From time to time, we have acquired properties through the Operating Partnership in exchange for limited partnership interests. This acquisition structure may permit limited partners who contribute properties to us to defer some, if not all, of the income tax liability that they would incur if they sold the property for cash.

Properties contributed to the Operating Partnership may have unrealized gains attributable to the difference between the fair market value and adjusted tax basis in the properties prior to contribution. As a result, our sale of these properties could cause adverse tax consequences to the limited partners who contributed them.

Generally, the Operating Partnership has no obligation to consider the tax consequences of its actions to any limited partner. However, the Operating Partnership may acquire properties in the future subject to material restrictions on refinancing or resale designed to minimize the adverse tax consequences to the limited partners who contribute those properties. These restrictions could significantly reduce our flexibility to manage our assets by preventing us from reducing mortgage debt or selling a property when such a transaction might be in our best interest in order to reduce interest costs or dispose of an under-performing property.

Risk Factors Related to Our Capital Recycling and Capital Structure

Lack of available credit could reduce capital available for new developments and other investments and could increase refinancing risks.

The lack of available credit in the commercial real estate market is causing a decline in the sale of shopping centers and their values. This reduces the available capital for new developments or other new investments, which is a key part of our capital recycling strategy. The lack of liquidity in the capital markets has also resulted in a significant increase in the cost to refinance maturing loans and a significant increase in refinancing risks. We anticipate that as real estate values decline, refinancing maturing secured loans, including those maturing in our joint ventures, may require us and our joint venture partners to contribute our respective pro-rata shares of capital in order to reduce refinancing requirements to acceptable loan to value levels required for new financings. Whether the credit markets will hinder our ability to access capital, including access by our joint venture partners, or to obtain future financing to fund maturing debt is unclear.

A reduction in the availability of capital, an increase in the cost of capital, and higher market capitalization rates could adversely impact our ability to recycle capital and fund developments and acquisitions, and could dilute earnings.

As part of our capital recycling program, we sell operating properties that no longer meet our investment standards. We also develop certain retail centers because of their attractive margins with the intent of selling them to co-investment partnerships or other third parties for a profit. These sales proceeds are used to fund the construction of new developments. An increase in market capitalization rates could cause a reduction in the value of centers identified for sale, which would have an adverse impact on our capital recycling program by reducing the amount of cash generated and profits realized. In order to meet the cash requirements of our development program, we may be required to sell more properties than initially planned, which would have a negative impact on our earnings.

Our debt financing may reduce distributions to stock and unit holders.

We do not expect to generate sufficient funds from operations to make balloon principal payments on our debt when due. If we are unable to refinance our debt on acceptable terms, we might be forced (i) to dispose of properties, which might result in losses, or (ii) to obtain financing at unfavorable terms. Either could reduce the cash flow available for distributions to stock and unit holders.

In addition, if we cannot make required mortgage payments, the mortgagee could foreclose on the property securing the mortgage, causing the loss of cash flow from that property. Furthermore, substantially all of our debt is cross-defaulted, which means that a default under one loan could trigger defaults under other loans.

Our organizational documents do not limit the amount of debt that may be incurred. The degree to which we are leveraged could have important consequences, including the following:

 

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leverage could affect our ability to obtain additional financing in the future to repay indebtedness or for working capital, capital expenditures, acquisitions, development, or other general corporate purposes;

 

   

leverage could make us more vulnerable to a downturn in our business or the economy generally; and

 

   

as a result, our leverage could lead to reduced distributions to stock and unit holders.

Covenants in our debt agreements may restrict our operating activities and adversely affect our financial condition.

Our revolving line of credit and our unsecured notes contain customary covenants, including compliance with financial ratios, such as ratios of total debt to gross asset value and coverage ratios. Coverage ratio is defined as EBITDA divided by the sum of the gross interest and scheduled mortgage principal paid to our lenders plus dividends paid to our preferred stockholders. Our line of credit also restricts our ability to enter into a transaction that would result in a change of control. These covenants may limit our operational flexibility and our acquisition activities. Moreover, if we breach any of the covenants in our debt agreements, including the covenants above, and did not cure the breach within any applicable cure period, our lenders could require us to repay the debt immediately, even in the absence of a payment default. Many of our debt arrangements, including our unsecured notes, unsecured line of credit, and our revolving credit facility, are cross-defaulted, which means that the lenders under those debt arrangements can put us in default and require immediate repayment of their debt if we breach and fail to cure a default under certain of our other debt obligations. As a result, any default under our debt covenants could have an adverse effect on our financial condition, our results of operations, our ability to meet our obligations, and the market value of our stock.

We depend on external sources of capital, which may not be available in the future.

To qualify as a REIT, the Parent Company must, among other things, distribute to its stockholders each year at least 90% of its REIT taxable income (excluding any net capital gains). Because of these distribution requirements, we likely will not be able to fund all future capital needs, including capital for acquisitions or developments, with income from operations. We therefore will have to rely on third-party sources of capital, which may or may not be available on favorable terms or at all. Our access to third-party sources of capital depends on a number of things, including the market’s perception of our growth potential and our current and potential future earnings. In addition, our line of credit imposes covenants that limit our flexibility in obtaining other financing, such as a prohibition on negative pledge agreements.

Additional equity offerings may result in substantial dilution of stockholders’ interests and additional debt financing may substantially increase our degree of leverage.

Settlement provisions contained in forward sale agreements subject us to certain risks.

The Company entered into forward sale agreements in December 2009 with each of J.P. Morgan Securities Inc. and Wells Fargo Securities, LLC. The forward sale agreements relate to the forward sale by the Company of a number of shares of common stock equal to the number of shares of common stock to be borrowed and sold by each forward seller. Depending on the price of our common stock at the time of settlement and the relevant settlement method, we may receive proceeds from the sale of common stock upon settlement of the forward sale agreements, which settlement must occur within approximately 15 months after December 2009. We intend to use any proceeds that we receive upon settlement of the forward sale agreements to repay or refinance maturing 2010 debt which may include a portion of our pro-rata share of the existing mortgage debt of Macquarie CountryWide-Regency II, LLC as the debt comes due beginning in 2010 and other general corporate purposes, which may include the payment of future maturing debt or the acquisition of additional properties.

Each forward purchaser has the right to accelerate its respective forward sale agreement and require us to physically settle its forward sale agreement on a date specified by such forward purchaser upon the occurrence of certain events. Each forward purchaser’s decision to exercise its right to require us to settle its forward sale agreement will be made irrespective of our interests, including our need for capital. In such cases, we could be required to issue and deliver our common stock under the terms of the physical settlement provisions of the relevant forward sale agreement irrespective of our capital needs, which would result in dilution to our earnings per share and unit and return on equity. In addition, upon certain events of bankruptcy, insolvency, or reorganization relating to

 

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us, the forward sale agreements will terminate without further liability of either party. Following any such termination, we would not issue any shares and we would not receive any proceeds pursuant to the forward sale agreements.

The forward sale agreements provide for settlement on a settlement date or dates to be specified at our discretion within approximately 15 months from December 7, 2009. Each forward sale agreement will be physically settled, unless we elect to settle such forward sale agreement in cash. If we decide to physically settle a forward sale agreement, delivery of our shares on any physical settlement of such forward sale agreement will result in dilution to our earnings per share and unit and return on equity. If we elect cash settlement for all or a portion of the shares of our common stock included in a forward sale agreement, we would expect the relevant forward purchaser or one of its affiliates to repurchase a number of shares equal to the portion for which we elect cash settlement in order to cover its obligation to return the shares of our common stock it had borrowed in connection with sales of our common stock. If the market value of our common stock at the time of the repurchase is above the forward price, we would pay the relevant forward purchaser under such forward sale agreement an amount in cash equal to the difference. Thus, we would be responsible for a potentially substantial cash payment.

In addition, the purchase of our common stock by the forward purchasers or their respective affiliates, to unwind their hedge positions, could cause the price of our common stock to increase over time, thereby increasing the amount of cash we would owe to the forward purchasers upon a cash settlement of the forward sale agreements.

Risk Factors Related to Interest Rates and the Market for Our Stock

We may be forced to deleverage our business with our operating cash flows, which could result in the reduction of distributions to our stock and unit holders, a reduction in investments into our business or additional equity offerings that dilute our stock and unit holders’ interests.

We depend on external financing, principally debt financing, to fund the growth of our business and to ensure that we can meet ongoing maturities of our outstanding debt. Our access to financing depends on our credit rating, the willingness of creditors to lend to us and conditions in the capital markets. The disruption in the capital markets that began in 2008 has continued into 2009, limiting access to financing for many companies. Without access to external financing, we would be required to pay outstanding debt with our operating cash flows and our operating cash flows may not be sufficient to pay our outstanding debt as it comes due. If we are required to deleverage our business with operating cash flows, we may be forced to reduce the amount of, or eliminate altogether, our distributions to stock and unit holders or refrain from making investments in our business.

We and our joint ventures have a significant amount of debt maturing in 2010, 2011, and 2012. During this time period, we have $624.7 million maturing and our joint ventures have $1.3 billion maturing (our pro-rata share is $333.8 million). In addition to finding creditors willing to lend to us, we are dependent upon our joint venture partners to contribute their share of any amount needed to repay or refinance existing debt when lenders reduce the amount of debt our joint ventures are refinancing.

Increased interest rates may reduce distributions to stock and unit holders.

We are obligated on floating rate debt, of which we had $5.6 million as of December 31, 2009. If we do not eliminate our exposure to increases in interest rates through interest rate protection or cap agreements, these increases may reduce cash flow and our ability to make distributions to stock and unit holders.

Although swap agreements enable us to convert floating rate debt to fixed rate debt and cap agreements enable us to cap our maximum interest rate, they expose us to the risk that the counterparties to these hedge agreements may not perform, which could increase our exposure to rising interest rates. If we enter into swap agreements, decreases in interest rates will increase our interest expense as compared to the underlying floating rate debt. This could result in our making payments to unwind these agreements, such as in connection with a prepayment of our floating rate debt.

Increased market interest rates could reduce the Parent Company’s stock price.

The annual dividend rate on our common stock as a percentage of its market price may influence the trading price of our stock. An increase in market interest rates may lead purchasers to demand a higher annual dividend rate, which could adversely affect the market price of our stock. A decrease in the market price of our

 

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common stock could reduce our ability to raise additional equity in the public markets. Selling common stock at a decreased market price would have a dilutive impact on existing stockholders.

The price of our common stock may fluctuate significantly.

The market price of our common stock may fluctuate significantly in response to many factors, many of which are out of our control, including:

 

   

actual or anticipated variations in our operating results or dividends;

 

   

changes in our funds from operations or earnings estimates;

 

   

publication of research reports about us or the real estate industry in general and recommendations by financial analysts or actions taken by rating agencies with respect to our securities or those of other REIT’s;

 

   

the ability of our tenants to pay rent and meet their other obligations to us under current lease terms and our ability to re-lease space as leases expire;

 

   

increases in market interest rates that drive purchasers of our shares to demand a higher dividend yield;

 

   

changes in market valuations of similar companies;

 

   

adverse market reaction to any additional debt we incur in the future;

 

   

any future issuances of equity securities;

 

   

additions or departures of key management personnel;

 

   

strategic actions by us or our competitors, such as acquisitions or restructurings;

 

   

actions by institutional stockholders;

 

   

speculation in the press or investment community;

 

   

general market and economic conditions.

These factors may cause the market price of our common stock to decline, regardless of our financial condition, results of operations, business or prospects. It is impossible to ensure that the market price of our common stock will not fall in the future.

Risk Factors Related to Federal Income Tax Laws

If the Parent Company fails to qualify as a REIT for federal income tax purposes, it would be subject to federal income tax at regular corporate rates.

We believe that we qualify for taxation as a REIT for federal income tax purposes, and we plan to operate so that we can continue to meet the requirements for taxation as a REIT. If we qualify as a REIT, we generally will not be subject to federal income tax on our income that we distribute currently to our stockholders. Many of the REIT requirements, however, are highly technical and complex. The determination that we are a REIT requires an analysis of various factual matters and circumstances, some of which may not be totally within our control and some of which involve questions of interpretation. For example, to qualify as a REIT, at least 95% of our gross income must come from specific passive sources, like rent, that are itemized in the REIT tax laws. There can be no assurance that the Internal Revenue Service (“IRS”) or a court would agree with the positions we have taken in interpreting the REIT requirements. We are also required to distribute to our stockholders at least 90% of our REIT taxable income, excluding capital gains. The fact that we hold many of our assets through co-investment partnerships and their subsidiaries further complicates the application of the REIT requirements. Even a technical or inadvertent mistake could jeopardize our REIT status. Furthermore, Congress and the IRS might make changes to the tax laws and regulations, and the courts might issue new rulings, that make it more difficult, or impossible, for us to remain qualified as a REIT.

Also, unless the IRS granted us relief under certain statutory provisions, we would remain disqualified as a REIT for four years following the year we first failed to qualify. If we failed to qualify as a REIT, we would have to pay significant income taxes and this would likely have a significant adverse affect on the value of our securities. In addition, we would no longer be required to pay any dividends to stockholders.

Even if we qualify as a REIT for federal income tax purposes, we are required to pay certain federal, state and local taxes on our income and property. For example, if we have net income from “prohibited transactions,” that income will be subject to a 100% tax. In general, prohibited transactions include sales or other dispositions of property held primarily for sale to customers in the ordinary course of business. The determination as to whether a

 

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particular sale is a prohibited transaction depends on the facts and circumstances related to that sale. While we have undertaken a significant number of asset sales in recent years, we do not believe that those sales should be considered prohibited transactions, but there can be no assurance that the IRS would not contend otherwise.

In addition, any net taxable income earned directly by our taxable affiliates, including Regency Realty Group, Inc. (“RRG”), our taxable REIT subsidiary, is subject to federal and state corporate income tax. Several provisions of the laws applicable to REIT’s and their subsidiaries ensure that a taxable REIT subsidiary will be subject to an appropriate level of federal income taxation. For example, a taxable REIT subsidiary is limited in its ability to deduct interest payments made to an affiliated REIT. In addition, a REIT has to pay a 100% penalty tax on some payments that it receives if the economic arrangements between the REIT, the REIT’s tenants and the taxable REIT subsidiary are not comparable to similar arrangements between unrelated parties. Finally, some state and local jurisdictions may tax some of our income even though as a REIT, we are not subject to federal income tax on that income. To the extent that we and our affiliates are required to pay federal, state and local taxes, we will have less cash available for dividends to our stockholders.

A REIT may not own securities in any one issuer if the value of those securities exceeds 5% of the value of the REIT’s total assets or the securities owned by the REIT represent more than 10% of the issuer’s outstanding voting securities or 10% of the value of the issuer’s outstanding securities. An exception to these tests allows a REIT to own securities of a subsidiary that exceed the 5% value test and the 10% value tests if the subsidiary elects to be a “taxable REIT subsidiary.” We are not able to own securities of taxable REIT subsidiaries that represent in the aggregate more than 25% of the value of our total assets. We currently own more than 10% of the total value of the outstanding securities of RRG.

Risk Factors Related to Our Ownership Limitations and the Florida Business Corporation Act

Restrictions on the ownership of the Parent Company’s capital stock to preserve our REIT status could delay or prevent a change in control.

Ownership of more than 7% by value of our outstanding capital stock by certain persons is restricted for the purpose of maintaining our qualification as a REIT, with certain exceptions. This 7% limitation may discourage a change in control and may also (i) deter tender offers for our capital stock, which offers may be attractive to our stockholders, or (ii) limit the opportunity for our stockholders to receive a premium for their capital stock that might otherwise exist if an investor attempted to assemble a block in excess of 7% of our outstanding capital stock or to effect a change in control.

The issuance of the Parent Company’s capital stock could delay or prevent a change in control.

Our articles of incorporation authorize our Board of Directors to issue up to 30,000,000 shares of preferred stock and 10,000,000 shares of special common stock and to establish the preferences and rights of any shares issued. The issuance of preferred stock or special common stock could have the effect of delaying or preventing a change in control even if a change in control were in our stockholders’ interest. The provisions of the Florida Business Corporation Act regarding control share acquisitions and affiliated transactions could also deter potential acquisitions by preventing the acquiring party from voting the common stock it acquires or consummating a merger or other extraordinary corporate transaction without the approval of our disinterested stockholders.

 

Item 1B. Unresolved Staff Comments

Regency Centers Corporation and Regency Centers, L.P. have received no written comments regarding its periodic or current reports from the staff of the Securities and Exchange Commission that were issued 180 days or more preceding December 31, 2009 that remain unresolved.

 

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Item 2. Properties

The following table is a list of the shopping centers summarized by state and in order of largest holdings presented on a Combined Basis (includes properties owned by unconsolidated co-investment partnerships):

 

     December 31, 2009     December 31, 2008  

Location

   #
Properties
   GLA    % of Total
GLA
    %
Leased
    #
Properties
   GLA    % of Total
GLA
    %
Leased
 

California

   71    8,743,529    19.4   92.5   76    9,597,194    19.3   91.9

Florida

   56    5,432,000    12.1   91.3   60    6,050,697    12.2   93.9

Texas

   35    4,358,457    9.7   89.8   36    4,404,025    8.9   90.5

Virginia

   29    3,635,546    8.1   94.9   30    3,799,919    7.6   95.6

Illinois

   23    2,769,037    6.2   89.7   24    2,901,919    5.8   90.0

Missouri

   23    2,265,466    5.0   96.8   23    2,265,422    4.6   96.8

Ohio

   15    2,245,341    5.0   93.1   17    2,631,530    5.3   86.7

North Carolina

   15    2,073,487    4.6   89.7   15    2,107,442    4.2   91.9

Colorado

   20    2,070,251    4.6   90.4   22    2,285,926    4.6   91.4

Maryland

   16    1,873,908    4.2   92.8   16    1,873,759    3.8   94.0

Georgia

   19    1,661,612    3.7   92.0   30    2,648,555    5.3   92.7

Pennsylvania

   12    1,414,123    3.1   92.4   12    1,441,791    2.9   90.1

Washington

   11    1,038,514    2.3   95.4   13    1,255,836    2.5   97.0

Oregon

   8    752,162    1.7   98.1   11    1,087,738    2.2   97.1

Tennessee

   7    565,386    1.3   91.8   8    574,114    1.2   92.0

Massachusetts

   3    564,386    1.2   95.2   3    561,186    1.1   93.4

Arizona

   4    496,073    1.1   89.4   4    496,073    1.0   94.3

Minnesota

   3    483,938    1.1   97.3   3    483,938    1.0   92.9

Delaware

   4    472,005    1.0   91.0   4    472,005    0.9   95.2

Nevada

   2    432,990    1.0   78.0   3    528,368    1.1   83.4

South Carolina

   6    360,718    0.8   95.2   8    451,494    0.9   96.7

Indiana

   6    273,253    0.6   80.3   6    273,279    0.6   76.4

Wisconsin

   2    269,128    0.6   97.7   2    269,128    0.5   97.7

Alabama

   2    203,206    0.4   72.0   3    278,299    0.6   78.3

Connecticut

   1    179,860    0.4   100.0   1    179,860    0.4   100.0

New Jersey

   2    156,482    0.3   95.2   2    156,482    0.3   96.2

Michigan

   2    118,273    0.3   85.8   2    118,273    0.2   84.9

Dist. of Columbia

   2    39,647    0.1   100.0   2    39,647    0.1   100.0

Kentucky

   1    23,184    0.1   63.7   3    325,853    0.7   90.2

New Hampshire

   —      —      —        —        1    84,793    0.2   80.4
                                            

Total

   400    44,971,962    100.0   92.1   440    49,644,545    100.0   92.3
                                            

The Combined Properties include the consolidated and unconsolidated properties encumbered by mortgage loans of $404.4 million and $2.5 billion, respectively.

 

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Item 2. Properties (continued)

 

The following table is a list of the shopping centers summarized by state and in order of largest holdings presented for Consolidated Properties (excludes properties owned by unconsolidated co-investment partnerships):

 

     December 31, 2009     December 31, 2008  

Location

   #
Properties
   GLA    % of Total
GLA
    %
Leased
    #
Properties
   GLA    % of Total
GLA
    %
Leased
 

California

   44    5,340,854    23.3   93.1   46    5,668,350    23.5   89.7

Florida

   44    4,421,788    19.2   91.2   41    4,198,414    17.4   94.4

Texas

   24    2,978,018    13.0   88.8   28    3,371,380    13.9   89.9

Ohio

   13    1,708,268    7.4   93.6   14    1,985,392    8.2   85.3

Georgia

   16    1,418,261    6.2   91.4   16    1,409,622    5.8   92.0

Colorado

   14    1,123,006    4.9   87.1   14    1,130,771    4.7   86.2

North Carolina

   9    873,943    3.8   92.3   9    951,177    3.9   94.6

Virginia

   7    864,116    3.8   93.2   7    958,825    4.0   90.8

Oregon

   7    659,061    2.9   98.0   8    733,068    3.0   98.4

Tennessee

   6    479,321    2.1   91.3   7    488,049    2.0   91.2

Washington

   6    461,073    2.0   93.5   7    538,155    2.2   95.9

Nevada

   2    432,990    1.9   78.0   2    429,304    1.8   81.1

Illinois

   3    414,168    1.8   85.2   3    414,996    1.7   84.7

Arizona

   3    388,440    1.7   90.4   3    388,440    1.6   93.0

Massachusetts

   2    379,107    1.6   92.9   2    375,907    1.6   90.5

Pennsylvania

   4    320,279    1.4   88.7   4    347,430    1.4   77.6

Delaware

   2    240,418    1.0   93.3   2    240,418    1.0   99.2

Michigan

   2    118,273    0.5   85.8   2    118,273    0.5   84.9

Maryland

   1    107,063    0.5   75.4   1    106,915    0.4   77.8

Alabama

   1    84,740    0.4   76.2   1    84,741    0.4   68.7

South Carolina

   2    74,421    0.3   90.6   2    74,422    0.3   90.6

Indiana

   3    54,484    0.2   44.7   3    54,510    0.2   34.1

Kentucky

   1    23,184    0.1   63.7   1    23,184    0.1   33.6

New Hampshire

   —      —      —        —        1    84,793    0.4   80.4
                                            

Total

   216    22,965,276    100.0   91.0   224    24,176,536    100.0   90.2
                                            

The Consolidated Properties are encumbered by mortgage loans of $404.4 million.

 

14


Table of Contents
Item 2. Properties (continued)

 

The following table is a list of the shopping centers summarized by state and in order of largest holdings presented for Unconsolidated Properties (only properties owned by unconsolidated co-investment partnerships):

 

     December 31, 2009     December 31, 2008  

Location

   #
Properties
   GLA    % of Total
GLA
    %
Leased
    #
Properties
   GLA    % of Total
GLA
    %
Leased
 

California

   27    3,402,675    15.5   91.6   30    3,928,844    15.4   94.9

Virginia

   22    2,771,430    12.6   95.4   23    2,841,094    11.2   97.2

Illinois

   20    2,354,869    10.7   90.5   21    2,486,923    9.8   90.9

Missouri

   23    2,265,466    10.3   96.8   23    2,265,422    8.9   96.8

Maryland

   15    1,766,845    8.0   93.8   15    1,766,844    6.9   95.0

Texas

   11    1,380,439    6.3   92.1   8    1,032,645    4.0   92.6

North Carolina

   6    1,199,544    5.5   87.8   6    1,156,265    4.5   89.7

Pennsylvania

   8    1,093,844    5.0   93.5   8    1,094,361    4.3   94.1

Florida

   12    1,010,212    4.6   92.0   19    1,852,283    7.3   92.6

Colorado

   6    947,245    4.3   94.4   8    1,155,155    4.5   96.4

Washington

   5    577,441    2.6   96.9   6    717,681    2.8   97.8

Ohio

   2    537,073    2.4   91.6   3    646,138    2.5   91.0

Minnesota

   3    483,938    2.2   97.3   3    483,938    1.9   92.9

South Carolina

   4    286,297    1.3   96.4   6    377,072    1.5   98.0

Wisconsin

   2    269,128    1.2   97.7   2    269,128    1.1   97.7

Georgia

   3    243,351    1.1   95.6   14    1,238,933    4.9   93.6

Delaware

   2    231,587    1.1   88.5   2    231,587    0.9   91.1

Indiana

   3    218,769    1.0   89.1   3    218,769    0.9   87.0

Massachusetts

   1    185,279    0.8   100.0   1    185,279    0.7   99.4

Connecticut

   1    179,860    0.8   100.0   1    179,860    0.7   100.0

New Jersey

   2    156,482    0.7   95.2   2    156,482    0.6   96.2

Alabama

   1    118,466    0.5   69.1   2    193,558    0.8   82.5

Arizona

   1    107,633    0.5   85.8   1    107,633    0.4   98.9

Oregon

   1    93,101    0.4   98.1   3    354,670    1.4   94.3

Tennessee

   1    86,065    0.4   94.8   1    86,065    0.3   96.2

Dist. of Columbia

   2    39,647    0.2   100.0   2    39,647    0.2   100.0

Nevada

   —      —      —        —        1    99,064    0.4   93.0

Kentucky

   —      —      —        —        2    302,669    1.2   94.6
                                            

Total

   184    22,006,686    100.0   93.2   216    25,468,009    100.0   94.3
                                            

The Unconsolidated Properties are encumbered by mortgage loans of $2.5 billion.

 

15


Table of Contents
Item 2. Properties (continued)

 

The following table summarizes the largest tenants occupying our shopping centers for Consolidated Properties plus Regency’s pro-rata share of Unconsolidated Properties as of December 31, 2009 based upon a percentage of total annualized base rent exceeding or equal to .5%.

 

Tenant

   GLA    Percent to
Company
Owned GLA
    Rent    Percentage of
Annualized
Base Rent
    Number of
Leased
Stores
   Anchor
Owned
Stores (a)

Kroger

   2,209,184    8.0   $ 20,462,378    4.8   46    9

Publix

   1,902,503    6.9     17,615,932    4.2   54    1

Safeway

   1,601,669    5.8     15,488,636    3.7   55    6

Supervalu

   882,406    3.2     10,337,559    2.4   28    3

CVS

   449,045    1.6     6,923,620    1.6   50    —  

Blockbuster Video

   268,623    1.0     5,708,551    1.4   71    —  

TJX Companies

   406,252    1.5     4,149,162    1.0   23    —  

Whole Foods

   139,796    0.5     3,952,760    0.9   5    —  

Ross Dress For Less

   241,538    0.9     3,782,603    0.9   16    —  

Sports Authority

   181,523    0.7     3,458,514    0.8   5    —  

Starbucks

   98,478    0.4     3,302,076    0.8   88    —  

Sears Holdings

   435,250    1.6     3,297,617    0.8   14    1

PETCO

   189,538    0.7     3,273,941    0.8   23    —  

Wells Fargo Bank

   61,579    0.2     3,178,196    0.8   49    —  

Walgreens

   176,165    0.6     2,971,809    0.7   17    —  

Rite Aid

   198,992    0.7     2,924,740    0.7   25    —  

H.E.B.

   210,413    0.8     2,771,745    0.7   4    —  

Schnucks

   308,578    1.1     2,687,565    0.6   31    —  

Bank of America

   68,847    0.2     2,611,264    0.6   32    —  

Subway

   90,705    0.3     2,571,552    0.6   111    —  

The UPS Store

   95,313    0.3     2,442,339    0.6   98    —  

Target

   268,922    1.0     2,392,748    0.6   4    20

Hallmark

   135,374    0.5     2,366,096    0.6   51    —  

Ahold

   135,773    0.5     2,348,193    0.6   10    —  

Harris Teeter

   182,108    0.7     2,315,621    0.5   7    —  

Michael’s

   190,501    0.7     2,284,210    0.5   12    —  

JPMorgan Chase Bank

   59,161    0.2     2,277,678    0.5   23    —  

Home Depot

   135,604    0.5     2,250,231    0.5   4    —  

PetSmart

   140,491    0.5     2,159,950    0.5   9    —  

Stater Bros.

   139,961    0.5     2,122,914    0.5   4    —  

Staples

   147,382    0.5     2,116,261    0.5   12    —  

 

(a) Stores owned by anchor tenant that are attached to our centers.

Regency’s leases for tenant space under 5,000 square feet generally have terms ranging from three to five years. Leases greater than 10,000 square feet generally have lease terms in excess of five years, mostly comprised of anchor tenants. Many of the anchor leases contain provisions allowing the tenant the option of extending the term of the lease at expiration. The leases provide for the monthly payment in advance of fixed minimum rent, additional rents calculated as a percentage of the tenant’s sales, the tenant’s pro-rata share of real estate taxes, insurance, and common area maintenance (“CAM”) expenses, and reimbursement for utility costs if not directly metered.

 

16


Table of Contents
Item 2. Properties (continued)

 

The following table sets forth a schedule of lease expirations for the next ten years and thereafter, assuming no tenants renew their leases:

 

Lease Expiration Year

   Expiring
GLA (2)
   Percent of
Total
Company
GLA (2)
    Minimum
Rent
Expiring
Leases (3)
   Percent of
Minimum
Rent (3)
 

  (1)

   332,341    1.3   $ 6,597,904    1.6

2010

   2,403,843    9.6     46,441,879    11.0

2011

   2,865,300    11.5     50,980,187    12.1

2012

   3,305,426    13.2     61,187,816    14.5

2013

   2,435,983    9.7     46,169,653    10.9

2014

   2,254,932    9.0     42,849,004    10.1

2015

   756,837    3.0     12,883,157    3.0

2016

   700,283    2.8     12,135,224    2.9

2017

   1,215,920    4.9     21,081,969    5.0

2018

   1,251,759    5.0     19,545,813    4.6

2019

   1,127,900    4.5     16,444,918    3.9

Thereafter

   6,350,888    25.5     86,676,290    20.4
                        

Total

   25,001,412    100.0   $ 422,993,814    100.0
                        

 

(1) leased currently under month to month rent or in process of renewal
(2) represents GLA for Consolidated Properties plus Regency’s pro-rata share of Unconsolidated Properties
(3) minimum rent includes current minimum rent and future contractual rent steps for the Consolidated Properties plus Regency’s pro-rata share from Unconsolidated Properties, but excludes additional rent such as percentage rent, common area maintenance, real estate taxes and insurance reimbursements

 

17


Table of Contents

See the following Combined Basis property table and also see Item 7, Management’s Discussion and Analysis for further information about Regency’s properties.

 

Property Name

   Year
Acquired
   Year
Constructed
(1)
   Gross
Leasable
Area
(GLA)
   Percent
Leased
(2)
   

Grocer & Major

Tenant(s) >40,000sf

  

Drug Store & Other Anchors >

10,000 Sq Ft

CALIFORNIA

                

Los Angeles/ Southern CA

                

4S Commons Town Center

   2004    2004    240,060    96.6   Ralphs, Jimbo’s...Naturally!    Bed Bath & Beyond, Cost Plus World Market, CVS, Griffin Ace Hardware

Amerige Heights Town Center

   2000    2000    96,680    98.0   Albertsons, (Target)   

Brea Marketplace (4)

   2005    1987    193,235    84.2   Sprout’s Markets    24 Hour Fitness, Big 5 Sporting Goods, Beverages & More!, Childtime Childcare

Costa Verde Center

   1999    1988    178,623    92.2   Bristol Farms    Bookstar, The Boxing Club, Pharmaca Integrative Pharmacy

El Camino Shopping Center

   1999    1995    135,728    100.0   Von’s Food & Drug    Sav-On Drugs

El Norte Pkwy Plaza

   1999    1984    90,549    95.9   Von’s Food & Drug    Longs Drug

Falcon Ridge Town Center Phase I (4)

   2003    2004    232,754    85.2   Stater Bros., (Target)    Sports Authority, Ross Dress for Less, Party City, Michaels, Pier 1 Imports

Falcon Ridge Town Center Phase II (4)

   2005    2005    66,864    100.0   24 Hour Fitness    CVS

Five Points Shopping Center (4)

   2005    1960    144,553    100.0   Albertsons    Longs Drug, Ross Dress for Less, Big 5 Sporting Goods

French Valley Village Center

   2004    2004    98,752    92.7   Stater Bros.    CVS

Friars Mission Center

   1999    1989    146,898    98.6   Ralphs    Longs Drug

Gelson’s Westlake Market Plaza

   2002    2002    84,975    90.8   Gelson’s Markets   

Golden Hills Promenade (3)

   2006    2006    216,846    92.7   Lowe’s    Bed Bath & Beyond

Granada Village (4)

   2005    1965    224,649    68.9      Rite Aid, TJ Maxx, Stein Mart

Hasley Canyon Village (4)

   2003    2003    65,801    95.7   Ralphs   

Heritage Plaza

   1999    1981    231,582    99.7   Ralphs    CVS, Hands On Bicycles, Total Woman, Ace Hardware

Highland Crossing

   2007    2007    45,000    100.0   LA Fitness   

Indio Towne Center (3)

   2006    2006    142,790    53.4   (Home Depot), (WinCo)    CVS, 24 Hour Fitness, PETCO

Jefferson Square (3)

   2007    2007    38,013    74.7   Fresh & Easy    CVS

Laguna Niguel Plaza (4)

   2005    1985    41,943    96.1   (Albertsons)    CVS

Marina Shores (4)

   2008    2001    67,727    89.5      PETCO

Morningside Plaza

   1999    1996    91,212    93.1   Stater Bros.   

Navajo Shopping Center (4)

   2005    1964    102,138    97.7   Albertsons    Rite Aid, Kragen Auto Parts

Newland Center

   1999    1985    149,140    100.0   Albertsons   

Oakbrook Plaza

   1999    1982    83,279    97.2   Albertsons    (Longs Drug)

Park Plaza Shopping Center (4)

   2001    1991    194,396    93.6   Henry’s Marketplace    CVS, PETCO, Ross Dress For Less, Office Depot, Tuesday Morning

Plaza Hermosa

   1999    1984    94,940    100.0   Von’s Food & Drug    Sav-On Drugs

Point Loma Plaza (4)

   2005    1987    212,415    96.3   Von’s Food & Drug    Sport Chalet 5, 24 Hour Fitness, Jo-Ann Fabrics

Rancho San Diego Village (4)

   2005    1981    153,256    94.1   Von’s Food & Drug    (Longs Drug), 24 Hour Fitness

Rio Vista Town Center (3)

   2005    2005    79,519    64.4   Stater Bros.    (CVS)

Rona Plaza

   1999    1989    51,760    100.0   Superior Super Warehouse   

Santa Ana Downtown Plaza

   1999    1987    100,306    90.7   Food 4 Less    Famsa, Inc.

Seal Beach (4)

   2002    1966    96,858    91.7   Von’s Food & Drug    CVS

Paseo Del Sol (3)

   2004    2004    54,778    64.5   Whole Foods   

Twin Oaks Shopping Center (4)

   2005    1978    98,399    100.0   Ralphs    Rite Aid

Twin Peaks

   1999    1988    198,139    95.5   Albertsons, Target   

Valencia Crossroads

   2002    2003    172,856    94.1   Whole Foods, Kohl’s   

Ventura Village

   1999    1984    76,070    95.2   Von’s Food & Drug   

Vine at Castaic (3)

   2005    2005    30,236    62.6     

Vista Village Phase I (4)

   2002    2003    129,009    91.8   Krikorian Theaters, (Lowe’s)   

Vista Village Phase II (4)

   2002    2003    55,000    45.5   Sprout’s Markets   

Vista Village IV

   2006    2006    11,000    100.0     

Westlake Village Plaza and Center

   1999    1975    190,529    98.1   Von’s Food & Drug    (CVS), Longs Drug, Total Woman

Westridge Village

   2001    2003    92,287    100.0   Albertsons    Beverages & More!

Woodman Van Nuys

   1999    1992    107,614    100.0   El Super   

San Francisco/ Northern CA

                

Applegate Ranch Shopping Center (3)

   2006    2006    144,444    66.2   (Super Target), (Home Depot)    Marshalls, PETCO, Big 5 Sporting Goods

Auburn Village (4)

   2005    1990    133,944    96.3   Bel Air Market    Dollar Tree, Goodwill Industries, (Longs Drug)

Bayhill Shopping Center (4)

   2005    1990    121,846    100.0   Mollie Stone’s Market    Longs Drug

 

18


Table of Contents

Property Name

   Year
Acquired
   Year
Constructed
(1)
   Gross
Leasable
Area
(GLA)
   Percent
Leased
(2)
   

Grocer & Major

Tenant(s) >40,000sf

  

Drug Store & Other Anchors >

10,000 Sq Ft

CALIFORNIA (continued)

                

Blossom Valley (4)

   1999    1990    93,316    93.8   Safeway    Longs Drug

Clayton Valley Shopping Center

   2003    2004    260,671    96.8   Fresh & Easy, Home Depot    Longs Drugs, Dollar Tree, Ross Dress For Less

Clovis Commons

   2004    2004    174,990    98.4   (Super Target)    Petsmart, TJ Maxx, Office Depot, Best Buy

Corral Hollow (4)

   2000    2000    167,184    98.7   Safeway, Orchard Supply & Hardware    Longs Drug

Diablo Plaza

   1999    1982    63,265    96.7   (Safeway)    (Longs Drug), Jo-Ann Fabrics

El Cerrito Plaza

   2000    2000    256,035    98.0   (Lucky’s)    (Longs Drug), Bed Bath & Beyond, Barnes & Noble, Jo-Ann Fabrics, PETCO, Ross Dress For Less

Encina Grande

   1999    1965    102,413    95.8   Safeway    Walgreens

Folsom Prairie City Crossing

   1999    1999    90,237    95.7   Safeway   

Gateway 101

   2008    2008    92,110    100.0   (Home Depot), (Best Buy), Sports Authority, Nordstrom Rack   

Loehmanns Plaza California

   1999    1983    113,310    99.1   (Safeway)    Longs Drug, Loehmann’s

Mariposa Shopping Center (4)

   2005    1957    126,658    100.0   Safeway    Longs Drug, Ross Dress for Less

Pleasant Hill Shopping Center (4)

   2005    1970    234,061    83.6   Target, Toys “R” Us    Barnes & Noble

Powell Street Plaza

   2001    1987    165,928    83.6   Trader Joe’s    PETCO, Beverages & More!, Ross Dress For Less, DB Shoe Company

Raley’s Supermarket (4)

   2007    1964    62,827    100.0   Raley’s   

San Leandro Plaza

   1999    1982    50,432    100.0   (Safeway)    (Longs Drug)

Sequoia Station

   1999    1996    103,148    86.3   (Safeway)    Longs Drug, Barnes & Noble, Old Navy

Silverado Plaza (4)

   2005    1974    84,916    100.0   Nob Hill    Longs Drug

Snell & Branham Plaza (4)

   2005    1988    99,350    98.3   Safeway   

Stanford Ranch Village (4)

   2005    1991    89,875    95.1   Bel Air Market   

Strawflower Village

   1999    1985    78,827    94.4   Safeway    (Longs Drug)

Tassajara Crossing

   1999    1990    146,188    96.7   Safeway    Longs Drug, Ace Hardware

West Park Plaza

   1999    1996    88,104    98.0   Safeway    Rite Aid

Woodside Central

   1999    1993    80,591    100.0   (Target)    Chuck E. Cheese, Marshalls

Ygnacio Plaza (4)

   2005    1968    109,701    99.0   Fresh & Easy    Sports Basement
                      

Subtotal/Weighted Average (CA)

         8,743,529    92.5     
                      

FLORIDA

                

Ft. Myers / Cape Coral

                

Corkscrew Village

   2007    1997    82,011    91.9   Publix   

First Street Village (3)

   2006    2006    54,926    89.4   Publix   

Grande Oak

   2000    2000    78,784    100.0   Publix   

Jacksonville / North Florida

                

Anastasia Plaza

   1993    1988    102,342    95.0   Publix   

Canopy Oak Center (3)(4)

   2006    2006    90,041    77.8   Publix   

Carriage Gate

   1994    1978    76,784    91.4      Leon County Tax Collector, TJ Maxx

Courtyard Shopping Center

   1993    1987    137,256    100.0   (Publix), Target   

Fleming Island

   1998    2000    136,663    63.9   Publix, (Target)   

Hibernia Pavilion (3)

   2006    2006    51,298    92.5   Publix   

Hibernia Plaza (3)

   2006    2006    8,400    33.3      (Walgreens)

Horton’s Corner

   2007    2007    14,820    100.0      Walgreens

John’s Creek Center (4)

   2003    2004    75,101    100.0   Publix   

Julington Village (4)

   1999    1999    81,820    100.0   Publix    (CVS)

Millhopper Shopping Center

   1993    1974    84,065    100.0   Publix    CVS, Jo-Ann Fabrics

Newberry Square

   1994    1986    180,524    95.6   Publix, K-Mart    Jo-Ann Fabrics

Nocatee Town Center (3)

   2007    2007    69,679    86.0   Publix   

Oakleaf Commons (3)

   2006    2006    73,717    79.1   Publix    (Walgreens)

Old St Augustine Plaza

   1996    1990    232,459    99.1   Publix, Burlington Coat Factory, Hobby Lobby    CVS

Pine Tree Plaza

   1997    1999    63,387    98.4   Publix   

Plantation Plaza (4)

   2004    2004    77,747    98.2   Publix   

Seminole Shoppes (3)

   2009    2009    73,240    74.2   Publix   

Shoppes at Bartram Park (4)

   2005    2004    105,319    95.3   Publix, (Kohl’s)    Toll Brothers

Shoppes at Bartram Park Phase II (3)(4)

   2008    2008    14,639    49.3      (Tutor Time)

Shops at John’s Creek

   2003    2004    15,490    72.6     

Starke

   2000    2000    12,739    100.0      CVS

 

19


Table of Contents

Property Name

   Year
Acquired
   Year
Constructed
(1)
   Gross
Leasable
Area
(GLA)
   Percent
Leased
(2)
   

Grocer & Major

Tenant(s) >40,000sf

  

Drug Store & Other Anchors >

10,000 Sq Ft

FLORIDA (continued)

                

Vineyard Shopping Center (4)

   2001    2002    62,821    88.9   Publix   

Miami / Fort Lauderdale

                

Aventura Shopping Center

   1994    1974    102,876    92.2   Publix    CVS

Berkshire Commons

   1994    1992    106,354    100.0   Publix    Walgreens

Caligo Crossing (3)

   2007    2007    10,762    74.9   (Kohl’s)   

Five Corners Plaza (4)

   2005    2001    44,647    88.1   Publix   

Garden Square

   1997    1991    90,258    98.6   Publix    CVS

Naples Walk Shopping Center

   2007    1999    125,390    91.7   Publix   

Pebblebrook Plaza (4)

   2000    2000    76,767    100.0   Publix    (Walgreens)

Shoppes @ 104

   1998    1990    108,192    97.4   Winn-Dixie    Navarro Discount Pharmacies

Welleby Plaza

   1996    1982    109,949    93.1   Publix    Bealls

Tampa / Orlando

                

Beneva Village Shops

   1998    1987    141,532    79.6   Publix    Walgreens, Harbor Freight Tools

Bloomingdale Square

   1998    1987    267,736    96.7   Publix, Wal-Mart, Bealls    Ace Hardware

East Towne Center

   2002    2003    69,841    92.0   Publix   

Kings Crossing Sun City

   1999    1999    75,020    98.4   Publix   

Lynnhaven (4)

   2001    2001    63,871    100.0   Publix   

Marketplace Shopping Center

   1995    1983    90,296    33.2     

Regency Square

   1993    1986    349,848    93.1   AMC Theater, Michaels, (Best Buy), (Macdill)    Dollar Tree, Marshalls, Shoe Carnival, Staples, TJ Maxx, PETCO, Hobbytown USA

Suncoast Crossing Phase I (3)

   2007    2007    108,434    91.9   Kohl’s   

Suncoast Crossing Phase II (3)

   2008    2008    9,451    0.0   (Target)   

Town Square

   1997    1999    44,380    100.0      PETCO, Pier 1 Imports

Village Center

   1995    1993    181,110    96.5   Publix    Walgreens, Stein Mart

Northgate Square

   2007    1995    75,495    100.0   Publix   

Westchase

   2007    1998    78,998    95.2   Publix   

Willa Springs (4)

   2000    2000    89,930    98.3   Publix   

West Palm Beach / Treasure Cove

                

Boynton Lakes Plaza

   1997    1993    124,924    83.5   Winn-Dixie    Citi Trends

Chasewood Plaza

   1993    1986    155,603    97.7   Publix    Bealls, Books-A-Million

East Port Plaza

   1997    1991    113,281    90.4   Publix    Walgreens

Island Crossing (4)

   2007    1996    58,456    100.0   Publix   

Martin Downs Village Center

   1993    1985    112,666    87.3      Bealls, Coastal Care

Martin Downs Village Shoppes

   1993    1998    48,937    87.1      Walgreens

Town Center at Martin Downs

   1996    1996    64,546    100.0   Publix   

Village Commons Shopping Center (4)

   2005    1986    169,053    80.6   Publix    CVS

Wellington Town Square

   1996    1982    107,325    98.9   Publix    CVS
                      

Subtotal/Weighted Average (FL)

         5,432,000    91.3     
                      

TEXAS

                

Austin

                

Hancock

   1999    1998    410,438    96.0   H.E.B., Sears    Twin Liquors, PETCO, 24 Hour Fitness

Market at Round Rock

   1999    1987    122,646    57.7   Sprout’s Markets   

North Hills

   1999    1995    144,020    95.1   H.E.B.   

Dallas / Ft. Worth

                

Bethany Park Place (4)

   1998    1998    98,906    96.6   Kroger   

Cooper Street

   1999    1992    133,196    91.5   (Home Depot)    Office Max, K&G Men’s Company

Hickory Creek Plaza (3)

   2006    2006    28,134    47.2   (Kroger)   

Highland Village (3)

   2005    2005    351,635    79.2   AMC Theater    Barnes & Noble

Hillcrest Village

   1999    1991    14,530    100.0     

Keller Town Center

   1999    1999    114,937    95.2   Tom Thumb   

Lebanon/Legacy Center

   2000    2002    56,674    91.8   (Albertsons)   

Main Street Center (4)

   2002    2002    42,754    59.3   (Albertsons)   

Market at Preston Forest

   1999    1990    96,353    100.0   Tom Thumb   

Mockingbird Common

   1999    1987    120,321    100.0   Tom Thumb    Ogle School of Hair Design

Preston Park

   1999    1985    239,333    92.9   Tom Thumb    Gap

Prestonbrook

   1998    1998    91,537    95.3   Kroger   

Prestonwood Park

   1999    1999    101,167    51.4   (Albertsons)   

Rockwall Town Center

   2002    2004    46,095    94.6   (Kroger)    (Walgreens)

 

20


Table of Contents

Property Name

   Year
Acquired
   Year
Constructed
(1)
   Gross
Leasable
Area
(GLA)
   Percent
Leased
(2)
   

Grocer & Major
Tenant(s) >40,000sf

  

Drug Store & Other Anchors >

10,000 Sq Ft

TEXAS (continued)

                

Shiloh Springs (4)

   1998    1998    110,040    91.2   Kroger   

Signature Plaza

   2003    2004    32,414    68.8   (Kroger)   

Trophy Club

   1999    1999    106,507    88.6   Tom Thumb    (Walgreens)

Houston

                

Alden Bridge (4)

   2002    1998    138,953    91.1   Kroger    Walgreens

Atascocita Center

   2002    2003    97,240    94.3   Kroger   

Cochran’s Crossing

   2002    1994    138,192    97.1   Kroger    CVS

Fort Bend Center

   2000    2000    30,164    92.1   (Kroger)   

Indian Springs Center (4)

   2002    2003    136,625    98.9   H.E.B.   

Kleinwood Center (4)

   2002    2003    148,964    79.7   H.E.B.    (Walgreens)

Memorial Collection Shopping Center (4)

   2005    1974    103,330    97.5   Randall’s Food    Walgreens

Panther Creek

   2002    1994    165,560    92.1   Randall’s Food    CVS, Sears Paint & Hardware

Sterling Ridge

   2002    2000    128,643    100.0   Kroger    CVS

Sweetwater Plaza (4)

   2001    2000    134,045    96.6   Kroger    Walgreens

Waterside Marketplace (3)

   2007    2007    24,858    92.5   (Kroger)   

Weslayan Plaza East (4)

   2005    1969    169,693    94.8      Berings, Ross Dress for Less, Michaels, Berings Warehouse, Chuck E. Cheese, The Next Level Fitness, Spec’s Liquor

Weslayan Plaza West (4)

   2005    1969    185,964    98.8   Randall’s Food    Walgreens, PETCO, Jo Ann’s, Office Max, Tuesday Morning

Westwood Village (3)

   2006    2006    183,424    85.3   (Target)    Gold’s Gym, PetSmart, Office Max, Ross Dress For Less, TJ Maxx

Woodway Collection (4)

   2005    1974    111,165    85.1   Randall’s Food   
                      

Subtotal/Weighted Average (TX)

         4,358,457    89.8     
                      

VIRGINIA

                

Richmond

                

Gayton Crossing (4)

   2005    1983    156,917    97.1   Ukrop’s   

Hanover Village Shopping Center (4)

   2005    1971    93,147    72.2      Tractor Supply Company

Village Shopping Center (4)

   2005    1948    111,177    100.0   Ukrop’s    CVS

Other Virginia

                

601 King Street (4)

   2005    1980    8,349    73.7     

Ashburn Farm Market Center

   2000    2000    91,905    95.7   Giant Food   

Ashburn Farm Village Center (4)

   2005    1996    88,897    89.3   Shoppers Food Warehouse   

Braemar Shopping Center (4)

   2004    2004    96,439    94.8   Safeway   

Centre Ridge Marketplace (4)

   2005    1996    104,100    94.5   Shoppers Food Warehouse    Sears

Cheshire Station

   2000    2000    97,156    100.0   Safeway    PETCO

Culpeper Colonnade

   2006    2006    62,114    93.8   Martin’s, (Target)    PetSmart, Staples

Fairfax Shopping Center

   2007    1955    78,711    78.2   --    Direct Furniture

Festival at Manchester Lakes (4)

   2005    1990    165,130    97.9   Shoppers Food Warehouse   

Fortuna Center Plaza (4)

   2004    2004    90,131    100.0   Shoppers Food Warehouse, (Target)    Rite Aid

Fox Mill Shopping Center (4)

   2005    1977    103,269    96.1   Giant Food   

Greenbriar Town Center (4)

   2005    1972    340,006    97.6   Giant Food    CVS, HMY Roomstore, Total Beverage, Ross Dress for Less, Marshalls, PETCO

Hollymead Town Center (4)

   2003    2004    153,739    97.0   Harris Teeter, (Target)    Petsmart

Kamp Washington Shopping Center (4)

   2005    1960    71,825    95.8      Borders Books

Kings Park Shopping Center (4)

   2005    1966    74,702    95.6   Giant Food    CVS

Lorton Station Marketplace (4)

   2006    2005    132,445    97.3   Shoppers Food Warehouse    Advanced Design Group

Lorton Town Center (4)

   2006    2005    51,807    88.5      ReMax

Market at Opitz Crossing

   2003    2003    149,791    91.4   Safeway    Boat U.S.

Saratoga Shopping Center (4)

   2005    1977    113,013    97.8   Giant Food   

Shops at County Center

   2005    2005    96,695    96.9   Harris Teeter   

Signal Hill (4)

   2003    2004    95,172    97.5   Shoppers Food Warehouse   

Stonewall (3)

   2007    2007    287,744    93.8   Wegmans    Staples, Ross Dress For Less, Bed Bath & Beyond, Michaels

 

21


Table of Contents

Property Name

   Year
Acquired
   Year
Constructed
(1)
   Gross
Leasable
Area
(GLA)
   Percent
Leased
(2)
   

Grocer & Major
Tenant(s) >40,000sf

  

Drug Store & Other Anchors >
10,000 Sq Ft

VIRGINIA (continued)

                

Town Center at Sterling Shopping Center (4)

   2005    1980    190,069    92.4   Giant Food    Washington Sports Club, Party Depot

Village Center at Dulles (4)

   2002    1991    298,271    97.7   Shoppers Food Warehouse, Gold’s Gym    CVS, Advance Auto Parts, Chuck E. Cheese, PETCO, Staples, The Thrift Store

Willston Centre I (4)

   2005    1952    105,376    92.3      CVS, Baileys Health Care

Willston Centre II (4)

   2005    1986    127,449    96.0   Safeway, (Target)   
                      

Subtotal/Weighted Average (VA)

         3,635,546    94.9     
                      

ILLINOIS

                

Chicago

                

Baker Hill Center (4)

   2004    1998    135,355    94.6   Dominick’s   

Brentwood Commons (4)

   2005    1962    125,585    91.8   Dominick’s    Dollar Tree

Civic Center Plaza (4)

   2005    1989    264,973    98.0   Super H Mart, Home Depot    Murray’s Discount Auto, King Spa

Deer Grove Center (4)

   2004    1996    236,173    73.4   Dominick’s, (Target)    Michaels, PETCO, Factory Card Outlet, Dress Barn, Staples

Frankfort Crossing Shpg Ctr

   2003    1992    114,534    91.8   Jewel / OSCO    Ace Hardware

Geneva Crossing (4)

   2004    1997    123,182    98.8   Dominick’s    Goodwill

Hinsdale

   1998    1986    178,960    81.0   Dominick’s    Ace Hardware

McHenry Commons Shopping Center (4)

   2005    1988    100,526    16.6     

Oaks Shopping Center (4)

   2005    1983    135,005    87.3   Dominick’s   

Riverside Sq & River’s Edge (4)

   2005    1986    169,435    98.6   Dominick’s    Ace Hardware, Party City

Riverview Plaza (4)

   2005    1981    139,256    97.7   Dominick’s    Walgreens, Toys “R” Us

Shorewood Crossing (4)

   2004    2001    87,705    96.5   Dominick’s   

Shorewood Crossing II (4)

   2007    2005    86,276    98.1      Babies R Us, Staples, PETCO, Factory Card Outlet

Stearns Crossing (4)

   2004    1999    96,613    92.6   Dominick’s   

Stonebrook Plaza Shopping Center (4)

   2005    1984    95,825    100.0   Dominick’s   

Westbrook Commons

   2001    1984    120,674    85.2   Dominick’s   

Champaign/Urbana

                

Champaign Commons (4)

   2007    1990    88,105    90.7   Schnucks   

Urbana Crossing (4)

   2007    1997    85,196    96.7   Schnucks   

Springfield

                

Montvale Commons (4)

   2007    1996    73,937    98.1   Schnucks   

Other Illinois

                

Carbondale Center (4)

   2007    1997    59,726    100.0   Schnucks   

Country Club Plaza (4)

   2007    2001    86,867    98.4   Schnucks   

Granite City (4)

   2007    2004    46,237    100.0   Schnucks   

Swansea Plaza (4)

   2007    1988    118,892    97.1   Schnucks    Fashion Bug
                      

Subtotal/Weighted Average (IL)

         2,769,037    89.7     
                      

MISSOURI

                

St. Louis

                

Affton Plaza (4)

   2007    2000    67,760    100.0   Schnucks   

Bellerive Plaza (4)

   2007    2000    115,252    93.3   Schnucks   

Brentwood Plaza (4)

   2007    2002    60,452    96.5   Schnucks   

Bridgeton (4)

   2007    2005    70,762    100.0   Schnucks, (Home Depot)   

Butler Hill Centre (4)

   2007    1987    90,889    98.5   Schnucks   

City Plaza (4)

   2007    1998    80,149    94.9   Schnucks   

Crestwood Commons (4)

   2007    1994    67,285    100.0   Schnucks, (Best Buy), (Gordman’s)   

Dardenne Crossing (4)

   2007    1996    67,430    100.0   Schnucks   

Dorsett Village (4)

   2007    1998    104,217    100.0   Schnucks, (Orlando Gardens Banquet Center)    SSM Care Management Company

Kirkwood Commons (4)

   2007    2000    467,703    100.0   Wal-Mart, (Target), (Lowe’s)    TJ Maxx, HomeGoods, Famous Footwear

Lake St. Louis (4)

   2007    2004    75,643    98.1   Schnucks   

O’Fallon Centre (4)

   2007    1984    71,300    87.5   Schnucks   

 

22


Table of Contents

Property Name

   Year
Acquired
   Year
Constructed
(1)
   Gross
Leasable
Area
(GLA)
   Percent
Leased
(2)
   

Grocer & Major

Tenant(s) >40,000sf

  

Drug Store & Other Anchors >

10,000 Sq Ft

MISSOURI (continued)

                

Plaza 94 (4)

   2007    2005    66,555    95.4   Schnucks    —  

Richardson Crossing (4)

   2007    2000    82,994    97.1   Schnucks    —  

Shackelford Center (4)

   2007    2006    49,635    97.4   Schnucks    —  

Sierra Vista Plaza (4)

   2007    1993    74,666    98.4   Schnucks    —  

Twin Oaks (4)

   2007    2006    71,682    98.3   Schnucks    (Walgreens)

University City Square (4)

   2007    1997    79,230    100.0   Schnucks    —  

Washington Crossing (4)

   2007    1999    117,626    95.1   Schnucks    Michaels, Altmueller Jewelry

Wentzville Commons (4)

   2007    2000    74,205    98.1   Schnucks, (Home Depot)    —  

Wildwood Crossing (4)

   2007    1997    108,200    79.5   Schnucks    —  

Zumbehl Commons (4)

   2007    1990    116,682    94.2   Schnucks    Ace Hardware

Other Missouri

                

Capital Crossing (4)

   2007    2002    85,149    98.6   Schnucks    —  
                      

Subtotal/Weighted Average (MO)

         2,265,466    96.8     
                      

OHIO

                

Cincinnati

                

Beckett Commons

   1998    1995    121,498    100.0   Kroger    Stein Mart

Cherry Grove

   1998    1997    195,513    95.5   Kroger    Hancock Fabrics, Shoe Carnival, TJ Maxx

Hyde Park

   1997    1995    396,861    96.5   Kroger, Biggs    Walgreens, Jo-Ann Fabrics, Ace Hardware, Michaels, Staples

Indian Springs Market Center (4)

   2005    2005    146,116    100.0   Kohl’s, (Wal-Mart Supercenter)    Office Depot, HH Gregg Appliances

Red Bank Village (3)

   2006    2006    174,315    91.0   Wal-Mart    —  

Regency Commons

   2004    2004    30,770    80.5      —  

Shoppes at Mason

   1998    1997    80,800    96.5   Kroger    —  

Sycamore Crossing & Sycamore Plaza (4)

   2008    1966    390,957    88.4   Fresh Market, Macy’s Furniture Gallery, Toys ‘R Us, Dick’s Sporting Goods    Barnes & Noble, Old Navy, Staples, Identity Salon & Day Spa

Westchester Plaza

   1998    1988    88,181    98.4   Kroger    —  

Columbus

                

East Pointe

   1998    1993    86,503    100.0   Kroger    —  

Kroger New Albany Center

   1999    1999    93,285    96.6   Kroger    —  

Maxtown Road (Northgate)

   1998    1996    85,100    98.4   Kroger, (Home Depot)    —  

Park Place Shopping Center

   1998    1988    106,832    61.2      Big Lots

Windmiller Plaza Phase I

   1998    1997    140,437    98.5   Kroger    Sears Hardware

Wadsworth Crossing (3)

   2005    2005    108,173    88.7   (Kohl’s), (Lowe’s), (Target)    Office Max, Bed, Bath & Beyond, MC Sports, PETCO
                      

Subtotal/Weighted Average (OH)

         2,245,341    93.1     
                      

NORTH CAROLINA

                

Charlotte

                

Carmel Commons

   1997    1979    132,651    99.1   Fresh Market    Chuck E. Cheese, Party City, Eckerd, Casual Furniture Marketplace

Cochran Commons (4)

   2007    2003    66,020    91.6   Harris Teeter    (Walgreens)

Greensboro

                

Harris Crossing (3)

   2007    2007    65,367    83.9   Harris Teeter    —  

Raleigh / Durham

                

Cameron Village (4)

   2004    1949    635,918    84.5   Harris Teeter, Fresh Market    Eckerd, Talbots, Wake County Public Library, Great Outdoor Provision Co., York Properties, The Bargain Box, K&W Cafeteria, Johnson-Lambe Sporting Goods, Pier 1 Imports, Pirate’s Chest Fine Antiques

Colonnade Center (3)

   2009    2009    57,000    70.2   Whole Foods    —  

Fuquay Crossing (4)

   2004    2002    124,774    97.1   Kroger    Peak’s Fitness, Dollar Tree

Garner Towne Square

   1998    1998    221,776    95.8   Kroger, (Home Depot), (Target)    Office Max, Petsmart, Shoe Carnival, United Artist Theater

Glenwood Village

   1997    1983    42,864    100.0   Harris Teeter    —  

 

23


Table of Contents

Property Name

   Year
Acquired
   Year
Constructed
(1)
   Gross
Leasable
Area
(GLA)
   Percent
Leased
(2)
   

Grocer & Major

Tenant(s) >40,000sf

  

Drug Store & Other Anchors > 10,000
Sq Ft

NORTH CAROLINA (continued)

                

Lake Pine Plaza

   1998    1997    87,690    88.0   Kroger    —  

Maynard Crossing (4)

   1998    1997    122,782    95.3   Kroger    —  

Middle Creek Commons (3)

   2006    2006    73,634    81.3   Lowes Foods    —  

Shoppes of Kildaire (4)

   2005    1986    148,204    92.4   Trader Joe’s    Home Comfort Furniture, Gold’s Gym, Staples

Southpoint Crossing

   1998    1998    103,128    97.8   Kroger    —  

Sutton Square (4)

   2006    1985    101,846    79.0   Fresh Market    Rite Aid

Woodcroft Shopping Center

   1996    1984    89,833    97.0   Food Lion    Triangle True Value Hardware
                      

Subtotal/Weighted Average (NC)

         2,073,487    89.7     
                      

COLORADO

                

Colorado Springs

                

Falcon Marketplace (3)

   2005    2005    22,491    65.8   (Wal-Mart Supercenter)    —  

Marketplace at Briargate

   2006    2006    29,075    90.0   (King Soopers)    —  

Monument Jackson Creek

   1998    1999    85,263    100.0   King Soopers    —  

Woodmen Plaza

   1998    1998    116,233    86.3   King Soopers    —  

Denver

                

Applewood Shopping Center (4)

   2005    1956    375,622    93.5   King Soopers, Wal-Mart    Applejack Liquors, PetSmart, Wells Fargo Bank

Arapahoe Village (4)

   2005    1957    159,237    94.2   Safeway    Jo-Ann Fabrics, PETCO, Pier 1 Imports, Bottles Wine & Spirit

Belleview Square

   2004    1978    117,335    100.0   King Soopers    —  

Boulevard Center

   1999    1986    88,512    76.7   (Safeway)    One Hour Optical

Buckley Square

   1999    1978    116,147    91.4   King Soopers    Ace Hardware

Centerplace of Greeley Phase III (3)

   2007    2007    94,090    76.6   Sports Authority    Best Buy

Cherrywood Square (4)

   2005    1978    86,162    93.6   King Soopers    —  

Crossroads Commons (4)

   2001    1986    143,444    96.8   Whole Foods    Barnes & Noble, Bicycle Village

Hilltop Village (4)

   2002    2003    100,030    93.7   King Soopers    —  

NorthGate Village (3)

   2008    2008    25,375    0.0   (King Soopers)    —  

South Lowry Square

   1999    1993    119,916    87.7   Safeway    —  

Littleton Square

   1999    1997    94,222    91.2   King Soopers    Walgreens

Lloyd King Center

   1998    1998    83,326    100.0   King Soopers    —  

Ralston Square Shopping Center (4)

   2005    1977    82,750    96.1   King Soopers    —  

Shops at Quail Creek (3)

   2008    2008    37,585    61.5   (King Soopers)    —  

Stroh Ranch

   1998    1998    93,436    97.0   King Soopers    —  
                      

Subtotal/Weighted Average (CO)

         2,070,251    90.4     
                      

MARYLAND

                

Baltimore

                

Elkridge Corners (4)

   2005    1990    73,529    100.0   Super Fresh    Rite Aid

Festival at Woodholme (4)

   2005    1986    81,028    88.1   Trader Joe’s    —  

Lee Airport (3)

   2005    2005    107,063    75.4   Giant Food, (Sunrise)    —  

Parkville Shopping Center (4)

   2005    1961    162,435    96.7   Super Fresh    Rite Aid, Parkville Lanes, Castlewood Realty

Southside Marketplace (4)

   2005    1990    125,146    95.6   Shoppers Food Warehouse    Rite Aid

Valley Centre (4)

   2005    1987    247,837    95.8      TJ Maxx, Sony Theatres, Ross Dress for Less, HomeGoods, Staples, PetSmart

Other Maryland

                

Bowie Plaza (4)

   2005    1966    104,037    80.8   Giant Food    CVS

Clinton Park (4)

   2003    2003    206,050    95.3   Giant Food, Sears, (Toys “R” Us)    Fitness For Less

Cloppers Mill Village (4)

   2005    1995    137,035    95.5   Shoppers Food Warehouse    CVS

Firstfield Shopping Center (4)

   2005    1978    22,328    93.3      —  

Goshen Plaza (4)

   2005    1987    45,654    84.6      CVS

King Farm Village Center (4)

   2004    2001    118,326    96.4   Safeway    —  

Mitchellville Plaza (4)

   2005    1991    156,125    90.1   Food Lion    —  

Takoma Park (4)

   2005    1960    106,469    99.5   Shoppers Food Warehouse    —  

Watkins Park Plaza (4)

   2005    1985    113,443    94.9   Safeway    CVS

Woodmoor Shopping Center (4)

   2005    1954    67,403    88.5      CVS
                      

Subtotal/Weighted Average (MD)

         1,873,908    92.8     
                      

 

24


Table of Contents

Property Name

   Year
Acquired
   Year
Constructed
(1)
   Gross
Leasable
Area
(GLA)
   Percent
Leased
(2)
   

Grocer & Major

Tenant(s) >40,000sf

  

Drug Store & Other Anchors >

10,000 Sq Ft

GEORGIA

                

Atlanta

                

Ashford Place

   1997    1993    53,449    78.3   —      —  

Briarcliff La Vista

   1997    1962    39,204    100.0   —      Michaels

Briarcliff Village

   1997    1990    187,156    88.3   Publix    Office Depot, Party City, PETCO, TJ Maxx

Buckhead Court

   1997    1984    48,338    97.7   —      —  

Cambridge Square

   1996    1979    71,474    99.9   Kroger    —  

Chapel Hill Centre

   2005    2005    66,970    96.4   (Kohl’s), Hobby Lobby    —  

Cromwell Square

   1997    1990    70,282    91.5   —      CVS, Hancock Fabrics, Antiques & Interiors of Sandy Springs

Delk Spectrum

   1998    1991    100,539    84.3   Publix    Eckerd

Dunwoody Hall (4)

   1997    1986    89,351    100.0   Publix    Eckerd

Dunwoody Village

   1997    1975    120,598    89.8   Fresh Market    Walgreens, Dunwoody Prep

Howell Mill Village

   2004    1984    97,990    87.7   Publix    Eckerd

King Plaza (4)

   2007    1998    81,432    94.3   Publix    —  

Loehmanns Plaza Georgia

   1997    1986    137,139    96.5   —      Loehmann’s, Dance 101, Office Max

Lost Mountain Crossing (4)

   2007    1994    72,568    91.5   Publix    —  

Paces Ferry Plaza

   1997    1987    61,697    100.0   —      Harry Norman Realtors

Powers Ferry Square

   1997    1987    95,703    93.4   —      CVS, Pearl Arts & Crafts

Powers Ferry Village

   1997    1994    78,896    100.0   Publix    CVS, Mardi Gras

Rivermont Station

   1997    1996    90,267    78.0   Kroger    —  

Russell Ridge

   1994    1995    98,559    91.8   Kroger    —  
                      

Subtotal/Weighted Average (GA)

         1,661,612    92.0     
                      

PENNSYLVANIA

                

Allentown / Bethlehem

                

Allen Street Shopping Center (4)

   2005    1958    46,228    96.7   Ahart Market    Rite Aid

Lower Nazareth Commons (3)

   2007    2007    80,122    75.5   (Target), Sports Authority    —  

Stefko Boulevard Shopping Center (4)

   2005    1976    133,824    90.2   Valley Farm Market    —  

Harrisburg

                

Silver Spring Square (4)

   2005    2005    314,449    95.9   Wegmans, (Target)    Ross Dress For Less, Bed Bath and Beyond, Best Buy, Office Max, Ulta, PETCO

Philadelphia

                

City Avenue Shopping Center (4)

   2005    1960    159,094    95.6   —      Ross Dress for Less, TJ Maxx, Sears

Gateway Shopping Center

   2004    1960    219,337    92.4   Trader Joe’s    Staples, TJ Maxx, Famous Footwear, Jo-Ann Fabrics

Kulpsville Village Center

   2006    2006    14,820    100.0   —      Walgreens

Mayfair Shopping Center (4)

   2005    1988    112,276    89.7   Shop ‘N Bag    Dollar Tree

Mercer Square Shopping Center (4)

   2005    1988    91,400    92.1   Genuardi’s    —  

Newtown Square Shopping Center (4)

   2005    1970    146,893    88.8   Acme Markets    Rite Aid

Warwick Square Shopping Center (4)

   2005    1999    89,680    98.0   Genuardi’s    —  

Other Pennsylvania

                

Hershey

   2000    2000    6,000    100.0   —      —  
                      

Subtotal/Weighted Average (PA)

         1,414,123    92.4     
                      

WASHINGTON

                

Portland

                

Orchards Market Center I (4)

   2002    2004    100,663    100.0   Wholesale Sports    Jo-Ann Fabrics, PETCO, (Rite Aid)

Orchards Market Center II

   2005    2005    77,478    89.9   LA Fitness    Office Depot

Seattle

                

Aurora Marketplace (4)

   2005    1991    106,921    97.2   Safeway    TJ Maxx

Cascade Plaza (4)

   1999    1999    211,072    94.2   Safeway    Bally Total Fitness, Fashion Bug, Jo-Ann Fabrics, Ross Dress For Less, Big Lots

Eastgate Plaza (4)

   2005    1956    78,230    100.0   Albertsons    Rite Aid

Inglewood Plaza

   1999    1985    17,253    100.0   —      —  

Overlake Fashion Plaza (4)

   2005    1987    80,555    96.9   (Sears)    Marshalls

Pine Lake Village

   1999    1989    102,899    100.0   Quality Foods    Rite Aid

Sammamish-Highlands

   1999    1992    101,289    95.1   (Safeway)    Bartell Drugs, Ace Hardware

 

25


Table of Contents

Property Name

   Year
Acquired
   Year
Constructed
(1)
   Gross
Leasable
Area
(GLA)
   Percent
Leased
(2)
   

Grocer & Major

Tenant(s) >40,000sf

  

Drug Store & Other Anchors >

10,000 Sq Ft

WASHINGTON (continued)

                

Southcenter

   1999    1990    58,282    77.2   (Target)    —  

Thomas Lake

   1999    1998    103,872    96.4   Albertsons    Rite Aid
                      

Subtotal/Weighted Average (WA)

         1,038,514    95.4     
                      

OREGON

                

Portland

                

Greenway Town Center (4)

   2005    1979    93,101    98.1   Lamb’s Thriftway    Rite Aid, Dollar Tree

Murrayhill Marketplace

   1999    1988    148,967    97.6   Safeway    Segal’s Baby News

Sherwood Crossroads

   1999    1999    87,966    98.4   Safeway    —  

Sherwood Market Center

   1999    1995    124,259    98.6   Albertsons    —  

Sunnyside 205

   1999    1988    52,710    88.3      —  

Tanasbourne Market

   2006    2006    71,000    100.0   Whole Foods    —  

Walker Center

   1999    1987    89,610    100.0   Sports Authority    —  

Other Oregon

                

Corvallis Market Center

   2006    2006    84,549    100.0   Trader Joe’s    TJ Maxx, Michael’s
                      

Subtotal/Weighted Average (OR)

         752,162    98.1     
                      

TENNESSEE

                

Memphis

                

Collierville Crossing (4)

   2007    2004    86,065    94.8   Schnucks, (Target)    —  

Nashville

                

Lebanon Center (3)

   2006    2006    63,800    86.8   Publix    —  

Harpeth Village Fieldstone

   1997    1998    70,091    100.0   Publix    —  

Nashboro Village

   1998    1998    86,811    95.2   Kroger    (Walgreens)

Northlake Village

   2000    1988    137,807    80.6   Kroger    PETCO

Peartree Village

   1997    1997    109,904    97.9   Harris Teeter    Eckerd, Office Max

Other Tennessee

                

Dickson Tn

   1998    1998    10,908    100.0      Eckerd
                      

Subtotal/Weighted Average (TN)

         565,386    91.8     
                      

MASSACHUSETTS

                

Boston

                

Shops at Saugus (3)

   2006    2006    97,404    91.3   Trader Joe’s    La-Z-Boy, PetSmart

Speedway Plaza (4)

   2006    1988    185,279    100.0   Stop & Shop, BJ’s Warehouse    —  

Twin City Plaza

   2006    2004    281,703    93.4   Shaw’s, Marshall’s    Rite Aid, K&G Fashion, Dollar Tree, Gold’s Gym, Extra Space Storage
                      

Subtotal/Weighted Average (MA)

         564,386    95.2     
                      

ARIZONA

                

Phoenix

                

Anthem Marketplace

   2003    2000    113,292    91.8   Safeway    —  

Palm Valley Marketplace (4)

   2001    1999    107,633    85.8   Safeway    —  

Pima Crossing

   1999    1996    239,438    90.1   Golf & Tennis Pro Shop, Inc.    Life Time Fitness, E & J Designer Shoe Outlet, Paddock Pools Store, Pier 1 Imports, Stein Mart

Shops at Arizona

   2003    2000    35,710    87.7      Ace Hardware
                      

Subtotal/Weighted Average (AZ)

         496,073    89.4     
                      

MINNESOTA

                

Apple Valley Square (4)

   2006    1998    184,841    98.8   Rainbow Foods, Jo-Ann Fabrics, (Burlington Coat Factory)    Savers, PETCO

Colonial Square (4)

   2005    1959    93,200    98.3   Lund’s    —  

Rockford Road Plaza (4)

   2005    1991    205,897    95.5   Rainbow Foods    PetSmart, Homegoods, TJ Maxx
                      

Subtotal/Weighted Average (MN)

         483,938    97.3     
                      

 

26


Table of Contents

Property Name

   Year
Acquired
   Year
Constructed
(1)
   Gross
Leasable
Area
(GLA)
   Percent
Leased
(2)
   

Grocer & Major

Tenant(s) >40,000sf

  

Drug Store & Other Anchors >

10,000 Sq Ft

DELAWARE

                

Dover

                

White Oak—Dover, DE

   2000    2000    10,908    100.0 &nbs