FORWARD LOOKING STATEMENTS

Cautionary Statement
Regarding Forward‐Looking Statements

These materials contain
“forward‐looking statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended, or the Securities Act, and Section 21E of
the Securities Exchange Act of 1934, or the Exchange Act. Forward‐looking
statements provide the Company’s current expectations or
forecasts of future events and are not statements of historical fact. These
forward‐looking statements include information about possible or assumed
future events, including, among other things, discussion and analysis of the
Company’s future financial condition, results of operations, the Company’s
strategic plans and objectives, occupancy and leasing rates and trends, amounts
of anticipated cash distributions to stockholders in the future and other
matters. Words such as “anticipates,” “expects,” “intends,” “plans,”
“believes,” “seeks,” “estimates” and variations of these words and other similar
expressions are intended to identify forward‐looking statements. These
statements are not guarantees of future performance and are subject to risks,
uncertainties and other factors, some of which are beyond the Company’s
control, are difficult to predict and/or could cause actual results to differ
materially from those expressed or forecasted in the forward‐looking
statements.

Forward‐looking
statements involve inherent uncertainty and may ultimately prove to be
incorrect or false. You are cautioned to not place undue reliance on forward‐looking
statements. Except as otherwise may be required by law, the Company undertakes
no obligation to update or revise forward‐looking statements to reflect
changed assumptions, the occurrence of unanticipated events or actual operating
results. The Company’s actual results could differ materially from those
anticipated in these forward‐looking statements as a result of various
factors, including, but not limited to:

•
Risks and uncertainties related
to the recent economic recession, the national and local economies, and the
real estate industry in general and in the Company’s specific markets
(including the state of Texas, generally, and the Company’s core markets of
Houston, Dallas, San Antonio and Austin, specifically);volatility in the
capital markets;rising interest and insurance rates;competition from third‐party
owners and operators of retail real estate and the Company’s inability to
obtain new tenants on favorable terms, or at all, upon the expiration of
existing leases;availability and terms of capital and financing, both to fund
operations and to refinance indebtedness as it matures;legislative or
regulatory changes, including changes to real estate, zoning and construction
laws;a possible failure to maintain the Company’s status as a REIT and the
risk of changes in laws governing REITs;the Company’s dependence upon key
personnel whose continued service is not guaranteed;the Company’s ability to
identify, hire and retain highly qualified executives in the future;
availability of appropriate acquisition, development and redevelopment
opportunities;failure to integrate acquisitions successfully;the financial
condition and liquidity of, or disputes with, joint venture and development
partners;impact of ad valorem, property and income taxes;changes in generally
accepted accounting principles;construction delays, increasing construction
costs or construction costs that exceed estimates;potential liability for
uninsured losses and environmental liabilities;lease‐up risks;and the
potential need to fund improvements or other capital expenditures out of
operating cash flow.

This list of risks and
uncertainties, however, is only a summary of some of the most important factors
and is not intended to be exhaustive. You should carefully read the section
entitled “Risk Factors” in our various Company documents filed with the SEC.
New risks and uncertainties may also emerge from time to time that could
materially and adversely affect the Company. All forward‐looking statements
are based on information available to the Company on this date and the Company
assumes no obligation to update or revise any forward‐looking statements,
whether as a result of new information, future events or otherwise.

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