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The Company recognized stock options expense of approximately $4.4 million and $3.3 million for the six months ended June 30, 2009 and 2008, respectively.  The $4.4 million expense for the six months ended June 30, 2009, includes incremental expense related to the modification of stock awards in connection with the terminations of employees discussed below.  As of June 30, 2009, the Company had approximately $24.2 million of total unrecognized compensation cost related to unvested stock compensation granted under the Company’s Plan.  That cost is expected to be recognized over a weighted average period of approximately 2.6 years. Due to declining economic conditions resulting in the lack of transactional activity within the real estate industry as a whole, the Company had accrued approximately $3.6 million at December 31, 2008, relating to severance costs associated with employees that had been terminated during January 2009.  Also, as a result of continued economic decline, the Company recorded an additional accrual of approximately $2.3 million for severance costs associated with terminations during the six months ended June 30, 2009 </div> </div> -50360000 -7802000 53412000 32383000 17724000 9338000 <div> <div style="WIDTH: 720px"> 6.  Investments and Advances in Real Estate Joint Ventures Kimco Prudential Joint Venture (“KimPru”) - On October 31, 2006, the Company completed the merger of Pan Pacific Retail Properties Inc. (“Pan Pacific”), which had a total transaction value of approximately $4.1 billion, including Pan Pacific’s outstanding debt totaling approximately $1.1 billion.  As of October 31, 2006, Pan Pacific owned interests in 138 operating properties, which comprised approximately 19.9 million square feet of GLA, located primarily in California, Oregon, Washington and Nevada. Immediately following the merger, the Company commenced its joint venture agreements with Prudential Real Estate Investors (“PREI”) through three separate accounts managed by PREI.  In accordance with the joint venture agreements, all Pan Pacific assets and respective non-recourse mortgage debt and a $1.2 billion credit facility used to fund the transaction were transferred to the separate accounts.  PREI contributed approximately $1.1 billion on behalf of institutional investors in three of its portfolios. The Company holds a 15% noncontrolling ownership interest in each of the joint ventures, collectively, KimPru. The Company accounts for its investment in KimPru under the equity method of accounting.  In addition, the Company manages the portfolios and earns acquisition fees, leasing commissions, property management fees and construction management fees.   During August 2008, KimPru entered into a $650.0 million credit facility which matures in August 2009, with the option to extend for one year and bears interest at a rate of LIBOR plus 1.25%.  Proceeds from this credit facility were used to repay the outstanding balance of $658.7 million under the $1.2 billion credit facility, referred to above, which was scheduled to mature in October 2008 and bore interest at a rate of LIBOR plus 0.45%.  In order to exercise the one-year extension option, KimPru is, among other conditions, required to reduce the outstanding balance to $485.0 million by August 26, 2009.  The required pay down is expected to be sourced from capital contributions by the partners.  This facility is guaranteed by the Company with a guarantee from PREI to the Company for 85% of any guaranty payment the Company is obligated to make.  As of June 30, 2009, the outstanding balance on the credit facility was $615.9 million. During the six months ended June 30, 2009 KimPru sold four operating properties and its interest in an unconsolidated joint venture, in separate transactions, for an aggregate sales price of approximately $33.6 million.  These sales resulted in an aggregate net loss of approximately $2.6 million.  Proceeds from these property sales were used to repay a portion of the outstanding balance on the $650.0 million credit facility.      In addition, during the six months ended June 30, 2009, KimPru repaid a non-recourse mortgage with a balance of approximately $12.1 million which bore interest at a rate of 4.92% and matured in April 2009.   During the three months ended June 30, 2009, the Company recognized non-cash impairment charges of $11.7 million, against the carrying value of its investment in KimPru, reflecting an other-than-temporary decline in the fair value of its investment resulting from a further decline in the real estate markets during the second quarter of 2009.   In addition to the impairment charges above, the Company recognized impairment charges during the three months ended June 30, 2009 of approximately $26.3 million relating to certain properties held by an unconsolidated joint venture within the KimPru joint venture based on estimated sales prices.  As of June 30, 2009, the KimPru portfolio was comprised of 119 shopping center properties aggregating approximately 19.0 million square feet of GLA located in 13 states. During the six months ended June 30, 2009, the Company recognized a non-cash impairment charge of $4.0 million, against the carrying value of its investment in a separate joint venture that is held with PREI, in which the Company holds a 15% non-controlling interest.  This impairment reflects an other-than-temporary decline in the fair value of its investment resulting from a further decline in the real estate markets during the second quarter of 2009.   The Company’s estimated fair values relating to the impairment assessments above are based upon discounted cash flow models that include all estimated cash inflows and outflows over a specified holding period and where applicable, any estimated debt premiums.  Capitalization rates, discount rates and credit spreads utilized in these models are based upon rates that the Company believes to be within a reasonable range of current market rates for the respective properties.    Kimco Income REIT (“KIR”) - The Company holds a 45% noncontrolling limited partnership interest in KIR and accounts for its investment under the equity method of accounting.  KIR has a master management agreement with the Company whereby the Company performs services for fees relating to the management, operation, supervision and maintenance of the joint venture properties. During the six months ended June 30, 2009, KIR repaid three maturing non-recourse mortgages aggregating approximately $40.3 million, which bore interest at 7.57%.  KIR also obtained four new non-recourse mortgages on four previously unencumbered properties aggregating approximately $31.9 million bearing interest at rates ranging from 6.3% to 7.2% with maturity dates ranging from 2012 to 2019.   As of June 30, 2009, the KIR portfolio was comprised of 62 operating properties aggregating 13.1 million square feet of GLA located in 18 states. PL Retail  - PL Retail, a joint venture investment in which the Company holds a 15% noncontrolling interest had a $39.5 million unsecured revolving credit facility, which bore interest at LIBOR plus 0.45% and was scheduled to mature in February 2008. During 2008, this facility was extended to February 2009 at a rate of LIBOR plus 0.50%. This facility is guaranteed by the Company and the joint venture partner has guaranteed reimbursement to the Company of 85% of any guaranty payment the Company is obligated to make.  During the six months ended June 30, 2009, the joint venture made a principal payment of $5.6 million and obtained a one-year extension at a rate of LIBOR plus 400 basis points, with a LIBOR floor of 1.5%, for the remaining balance of $30.0 million. In addition, PL Retail refinanced an aggregate $118.6 million in mortgage debt, which bore interest at rates ranging from 8.18% to 10.18% and matured during 2009, with  $131.5 million in mortgage debt which bears interest at rates ranging from LIBOR plus 400 basis points to 7.70% and maturity dates ranging from 2014 to 2016. Other Real Estate Joint Ventures - During the six months ended June 30, 2009, the Company acquired a land parcel located in San Luis Potosi, Mexico, through a joint venture in which the Company has a noncontrolling interest, for an aggregate purchase price of approximately $0.8 million.  The Company accounts for its investment in this joint venture under the equity method of accounting.  The Company’s aggregate investment resulting from this transaction was approximately $0.4 million.      During the six months ended June 30, 2009, joint ventures in which the Company has noncontrolling interests obtained new mortgage debt aggregating $72.6 million which bears interest at rates ranging from 4.50% to 7.85% and are scheduled to mature in 2012 and 2014.  Proceeds from these mortgages and an additional $15.0 million capital contribution from the partners were used to repay an aggregate $87.6 million in mortgage debt, which was scheduled to mature in 2009 and bore interest at rates ranging from 2.1% to 6.6%. During the three months ended June 30, 2009, the Company recognized non-cash impairment charges of approximately $12.2 million, against the carrying value of its investments in six joint ventures, reflecting an other-than-temporary decline in the fair value of these investments resulting from a further decline in the real estate markets during the second quarter of 2009.   The Company’s estimated fair values relating to the impairment assessments above are based upon discounted cash flow models that include all estimated cash inflows and outflows over a specified holding period and where applicable, any estimated debt premiums.  Capitalization rates, discount rates and credit spreads utilized in these models are based upon rates that the Company believes to be within a reasonable range of current market rates for the respective properties. The Company’s maximum exposure to losses associated with its unconsolidated joint ventures is primarily limited to its carrying value in these investments.  Generally such investments contain operating properties and the Company has determined these entities do not contain the characteristics of a VIE.  As of June 30, 2009, the Company’s carrying value in these investments approximated $1.2 billion.   </div> </div> 126000 126000 <div> <div style="WIDTH: 720px"> 7.  Other Real Estate Investments Preferred Equity Capital - The Company maintains a preferred equity program, which provides capital to developers and owners of real estate.  During the six months ended June 30, 2009, the Company provided an aggregate of approximately $0.4 million in investment capital to an owner of a real estate property.  As of June 30, 2009, the Company’s net investment under the Preferred Equity program was approximately $502.3 million relating to 628 properties, including 402 net leased properties.  During the six months ended June 30, 2009, the Company earned approximately $13.9 million from its preferred equity investments, including $0.8 million in profit participation earned from two capital transactions.  During the six months ended June 30, 2008, the Company earned approximately $41.5 million from its preferred equity investments, including $19.7 million in profit participation earned from six capital transactions. During the three months ended June 30, 2009, the Company recognized non-cash impairment charges of $40.6 million, against the carrying value of 16 preferred equity investments, which hold 28 properties, reflecting an other-than-temporary decline in the fair value of its investment resulting from a further decline in the real estate markets during the second quarter of 2009. The Company’s estimated fair values relating to the impairment assessments above are based upon discounted cash flow models that include all estimated cash inflows and outflows over a specified holding period and where applicable, any estimated debt premiums.  Capitalization rates, discount rates and credit spreads utilized in these models are based upon rates that the Company believes to be within a reasonable range of current market rates for the respective properties. </div> </div> <div> <div style="WIDTH: 720px"> 17.  Pro Forma Financial Information As discussed in Note 3, the Company and certain of its affiliates disposed of interests in certain operating properties during the six months ended June 30, 2009.  The pro forma financial information set forth below is based upon the Company’s historical Condensed Consolidated Statements of Operations for the six months ended June 30, 2009 and 2008, adjusted to give effect to these transactions at the beginning of each year. The pro forma financial information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of each year, nor does it purport to represent the results of future operations.  (Amounts presented in millions, except per share figures.) <table style="FONT-SIZE: 10pt" cellspacing="0" align= "center"> <tbody> <tr style="FONT-SIZE: 0px" height="0"> <td width="357"></td> <td width="21"></td> <td width="77"></td> <td width="27"></td> <td width="87"></td> </tr> <tr> <td valign="top" width="357"> </td> <td valign="top" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "top" width="191" colspan="3"> Six Months ended June 30, </td> </tr> <tr> <td valign="top" width="357"> </td> <td valign="top" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "top" width="77"> 2009 </td> <td valign="top" width="27"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "top" width="87"> 2008 </td> </tr> <tr> <td valign="top" width="357"> </td> <td valign="top" width="21"> </td> <td valign="bottom" width="77"> </td> <td valign="top" width="27"> </td> <td valign="bottom" width="87"> </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="357"> Revenues from rental property </td> <td valign="bottom" width="21"> $ </td> <td valign="bottom" width="77"> 383.2  </td> <td valign="bottom" width="27"> $ </td> <td valign="bottom" width="87"> 371.8  </td> </tr> <tr> <td valign="top" width="357"> Net (loss)/income </td> <td valign="bottom" width="21"> $ </td> <td valign="bottom" width="77"> (91.9) </td> <td valign="bottom" width="27"> $ </td> <td valign="bottom" width="87"> 201.9  </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="357"> Net (loss)/income attributable to the Company’s common shareholders </td> <td valign="bottom" width="21"> $ </td> <td valign="bottom" width="77"> (121.7) </td> <td valign="bottom" width="27"> $ </td> <td valign="bottom" width="87"> 163.8  </td> </tr> <tr> <td valign="top" width="357"> </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="77"> </td> <td valign="bottom" width="27"> </td> <td valign="bottom" width="87"> </td> </tr> <tr> <td valign="top" width="357"> Net (loss)/income attributable to the Company’s common shareholders per common share: </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="77"> </td> <td valign="bottom" width="27"> </td> <td valign="bottom" width="87"> </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="357">    Basic </td> <td valign="bottom" width="21"> $ </td> <td valign="bottom" width="77"> (0.38) </td> <td valign="bottom" width="27"> $ </td> <td valign="bottom" width="87"> 0.65  </td> </tr> <tr> <td valign="top" width="357">    Diluted </td> <td valign="bottom" width="21"> $ </td> <td valign="bottom" width="77"> (0.38) </td> <td valign="bottom" width="27"> $ </td> <td valign="bottom" width="87"> 0.64  </td> </tr> </tbody> </table> </div> </div> 0 0 2100000 2100000 -70431000 -17697000 4125000 4806000 587000 24000 1581000 1555000 4163239000 4623582000 -346000 -346000

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<div> <div style="WIDTH: 720px"> 3. Operating Property Activities Acquisitions - During the six months ended June 30, 2009, the Company acquired a land parcel located in Rio Clara Brazil through a newly formed joint venture in which the Company has a 70% controlling ownership interest for a purchase price of 3.3 million Brazilian Reals (approximately USD $1.5 million).  This parcel will be developed into a 48,000 square foot retail shopping center. The Company has determined, under the provisions of FIN 46(R), that this joint venture is a VIE and that the Company is the primary beneficiary. As such, the Company has consolidated this entity for accounting and reporting purposes.  This entity was deemed a VIE primarily based on the fact that the equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support. The initial equity contributed to this entity is not sufficient to fully finance the real estate construction as development costs are funded by the partners throughout the construction period. The Company determined that it was the primary beneficiary of this VIE as a result of its economic ownership percentage which provides that the Company would absorb a majority of the entity’s expected losses, receive a majority of the entity’s expected residual returns or both.   Dispositions - During the six months ended June 30, 2009, the Company disposed of, in separate transactions, portions of three operating properties for an aggregate sales price of approximately $13.4 million.  The Company provided seller financing for two of these transactions aggregating approximately $1.4 million, which bear interest at 9% per annum and are scheduled to mature in January and March 2012.  The Company evaluated these transactions pursuant to the provisions of SFAS 66 “Accounting for Sales of Real Estate”. These three transactions resulted in the Company’s recognition of an aggregate net gain of approximately $1.9 million, net of income tax of $0.2 million. Additionally, during the six months ended June 30, 2009, a consolidated joint venture in which the Company has a preferred equity investment disposed of a portion of a property for a sales price of approximately $1.1 million. As a result of this capital transaction, the Company received approximately $0.1 million of profit participation.  This profit participation has been recorded as income from other real estate investments in the Company’s Condensed Consolidated Statements of Operations. Consolidations – During the six months ended June 30, 2009, the Company provided a capital contribution to one of its joint venture investments and entered into an amendment to the LLC agreement of another joint venture investment.  These events were both considered remeasurement events under FIN 46(R).  Such remeasurements determined that these two joint ventures were now VIE’s and that the Company is the primary beneficiary of each joint venture.  As such, the Company has consolidated these entities for accounting and reporting purposes.  Both of these entities have been established to own and operate real estate property.  These entities were deemed VIE’s primarily  based on the fact that the voting rights of the equity investors is not proportional to their obligation to absorb expected losses or receive the expected residual returns of the entity and substantially all of the entity's activities are conducted on behalf of the investor which has disproportionately fewer voting rights. The Company determined that it was the primary beneficiary of these VIE’s as a result of its economic ownership percentage which provides that the Company would absorb a majority of the entity's expected losses, receive a majority of the entity's expected residual returns, or both. The Company consolidated these entities in accordance with FAS 160, recognizing no gain or loss on consolidation as each entity’s carrying value approximated fair value.  The total assets of these VIE’s were approximately $31.4 million and total liabilities were approximately $30.7 million, including $21.4 million of non-recourse mortgage debt encumbering one of the properties.  The classification of these assets is primarily within Operating real estate and the classifications of liabilities are primarily within Mortgages payable in the Company’s Condensed Consolidated Balance Sheets.   Impairments – During the three months ended June 30, 2009, as part of the Company’s ongoing impairment assessment, the Company determined that there were certain redevelopment mixed-use properties with estimated recoverable values that will not exceed their estimated costs.  This is primarily due to further declines in real estate fundamentals along with adverse changes in local market conditions and the uncertainty of their recovery.  As a result, the Company recorded an aggregate impairment of property carrying values of approximately $50.0 million, representing the excess of the carrying values of 10 properties, primarily located in Philadelphia, Chicago, New York and Boston, over their estimated fair values.  The Company’s estimated fair values are based upon projected operating cash flows (discounted and without interest charges) of the property over its specified holding period.  Such cash flow projections consider factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors.  Capitalization rates and discount rates utilized in these models are based upon rates that the Company believes to be within a reasonable range of current market rates for the respective properties. </div> </div>

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<div> <div style="WIDTH: 720px"> 14.  Supplemental Schedule of Non-Cash Investing / Financing Activities The following schedule summarizes the non-cash investing and financing activities of the Company for the six months ended June 30, 2009 and 2008 (in thousands): <table style="FONT-SIZE: 10pt" cellspacing="0" align= "center"> <tbody> <tr style="FONT-SIZE: 0px" height="0"> <td width="429"></td> <td width="25"></td> <td width="75"></td> <td width="24"></td> <td width="85"></td> </tr> <tr> <td valign="top" width="429"> </td> <td valign="top" width="25"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="75"> 2009 </td> <td valign="top" width="24"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="85"> 2008 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="429"> Acquisition of real estate interests by assumption of mortgage debt </td> <td valign="bottom" width="25"> $ </td> <td valign="bottom" width="75"> - </td> <td valign="bottom" width="24"> $ </td> <td valign="bottom" width="85"> 52,180 </td> </tr> <tr> <td valign="top" width="429"> Disposition of real estate through the issuance of an unsecured obligation </td> <td valign="bottom" width="25"> $ </td> <td valign="bottom" width="75"> 1,366 </td> <td valign="bottom" width="24"> $ </td> <td valign="bottom" width="85"> 27,175 </td> </tr> <tr> <td valign="top" width="429"> Consolidation of Joint Ventures: </td> <td valign="bottom" width="25"> </td> <td valign="bottom" width="75"> </td> <td valign="bottom" width="24"> </td> <td valign="bottom" width="85"> </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="429"> Increase in real estate and other assets </td> <td valign="bottom" width="25"> $ </td> <td valign="bottom" width="75"> 24,988 </td> <td valign="bottom" width="24"> $ </td> <td valign="bottom" width="85"> - </td> </tr> <tr> <td valign="top" width="429"> Increase in mortgage payables </td> <td valign="bottom" width="25"> $ </td> <td valign="bottom" width="75"> 21,580 </td> <td valign="bottom" width="24"> $ </td> <td valign="bottom" width="85"> - </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="429"> Declaration of dividends paid in succeeding period </td> <td valign="bottom" width="25"> $ </td> <td valign="bottom" width="75"> 34,403 </td> <td valign="bottom" width="24"> $ </td> <td valign="bottom" width="85"> 113,423 </td> </tr> </tbody> </table> </div> </div>

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<div> <div style="WIDTH: 720px"> 2. Impairments On a continuous basis, management assesses whether there are any indicators, including property operating performance and general market conditions, that the value of the Company’s assets (including any related amortizable intangible assets or liabilities) may be impaired.  To the extent impairment has occurred, the carrying value of the asset would be adjusted to an amount to reflect the estimated fair value of the asset. During the six months ended June 30, 2009, economic conditions have continued to experience volatility resulting in further declines in equity and real estate markets. Increases in capitalization rates,  discount rates, vacancies and the deterioration of real estate fundamentals, impacting net operating income and leasing, have contributed to the further decline in real estate markets in general.    As a result of the volatility and declining market conditions described above, as well as the Company’s strategy in relation to certain of its non-retail assets, the Company recognized non-cash impairment charges during the three and six months ended June 30, 2009, aggregating approximately $176.5 million.  Details of these non-cash impairment charges are as follows (in thousands): <table style="FONT-SIZE: 10pt" cellspacing="0" align= "center"> <tbody> <tr style="FONT-SIZE: 0px" height="0"> <td width="440"></td> <td width="21"></td> <td width="98"></td> </tr> <tr> <td valign="bottom" width="440"> </td> <td valign="top" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="98"> June 30, 2009 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="440"> Impairment of property carrying values </td> <td valign="top" width="21"> $ </td> <td valign="bottom" width="98"> 50,000 </td> </tr> <tr> <td valign="bottom" width="440"> Impairments included in Equity in (loss)/income of joint ventures, net </td> <td valign="top" width="21"> </td> <td valign="bottom" width="98">  27,316 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="440"> Real estate under development </td> <td valign="top" width="21"> </td> <td valign="bottom" width="98"> 2,100 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="440" bgcolor="#FFFFFF"> Investments in other real estate investments </td> <td valign="top" width="21" bgcolor="#FFFFFF"> </td> <td valign="bottom" width="98" bgcolor="#FFFFFF"> 40,602 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="440"> Marketable securities and other investments </td> <td valign="top" width="21"> </td> <td valign="bottom" width="98">  29,573 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="440" bgcolor="#FFFFFF"> Investments in real estate joint ventures </td> <td valign="top" width="21" bgcolor="#FFFFFF"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="98" bgcolor="#FFFFFF"> 26,896 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="440">      Total impairment charges </td> <td valign="top" width="21"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="98"> 176,487 </td> </tr> </tbody> </table> During the six months ended June 30, 2008, the Company recognized a non-cash impairment charge of $3.8 million due to the decline in value of a marketable equity security investment that was deemed to be other-than-temporary. The Company will continue to assess declines in value of its assets on an on-going basis.  Based on these assessments, the Company may determine that one or more of its assets may be impaired due to a decline in value and would therefore write-down its cost basis accordingly (see Notes 3, 5, 6, 7, 8, 9 and 12). </div> </div>

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<div> <div style="WIDTH: 720px"> 4.  Discontinued Operations The Company reports as discontinued operations properties held-for-sale and operating properties sold in the current period.  The results of these discontinued operations are included in a separate component of income on the Condensed Consolidated Statements of Operations under the caption Discontinued operations.  This reporting has resulted in certain reclassifications of 2008 financial statement amounts. The components of income and expense relating to discontinued operations for the three and six months ended June 30, 2009 and 2008 are shown below. These include the results of operations through the date of each respective sale for properties sold during 2009 and 2008 and the operations for the applicable period for those assets classified as held-for-sale as of June 30, 2009 (in thousands): <table style="FONT-SIZE: 10pt" cellspacing="0" align= "center"> <tbody> <tr style="FONT-SIZE: 0px" height="0"> <td width="316"></td> <td width="13"></td> <td width="73"></td> <td width="15"></td> <td width="73"></td> <td width="16"></td> <td width="73"></td> <td width="21"></td> <td width="72"></td> </tr> <tr> <td valign="bottom" width="316"> </td> <td valign="bottom" width="13"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="162" colspan="3"> Three Months Ended June 30, </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="166" colspan="3"> Six Months Ended June 30, </td> </tr> <tr> <td valign="bottom" width="316"> </td> <td valign="bottom" width="13"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 2009 </td> <td valign="bottom" width="15"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 2008 </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 2009 </td> <td valign="bottom" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="72"> 2008 </td> </tr> <tr> <td valign="top" width="316"> Discontinued operations: </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="316"> Revenues from rental property </td> <td valign="bottom" width="13"> $ </td> <td valign="bottom" width="73"> -  </td> <td valign="bottom" width="15"> $ </td> <td valign="bottom" width="73"> 1,742  </td> <td valign="bottom" width="16"> $ </td> <td valign="bottom" width="73"> 26  </td> <td valign="bottom" width="21"> $ </td> <td valign="bottom" width="72"> 4,143  </td> </tr> <tr> <td valign="top" width="316"> Rental property expenses </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> (41) </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> (242) </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> (68) </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> (800) </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="316"> Depreciation and amortization </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> (48) </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> (873) </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> (48) </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> (1,508) </td> </tr> <tr> <td valign="top" width="316"> Interest expense </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> -  </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> (38) </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> -  </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> (122) </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="316"> (Loss)/income from other real estate investments </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> (9) </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> -  </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> (9) </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> 3,451  </td> </tr> <tr> <td valign="top" width="316"> Other (expense)/income, net </td> <td valign="bottom" width="13"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> (5) </td> <td valign="bottom" width="15"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 7  </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 14  </td> <td valign="bottom" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="72"> 149  </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="316"> (Loss)/income from discontinued operating properties </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> (103) </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> 596  </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> (85) </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> 5,313  </td> </tr> <tr> <td valign="top" width="316"> Provision for income taxes </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> -  </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> -  </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> (235) </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> -  </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="316"> Loss on operating properties held for sale/sold </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> (24) </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> -  </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> (112) </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> -  </td> </tr> <tr> <td valign="top" width="316"> Gain on disposition of operating properties </td> <td valign="bottom" width="13"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> -  </td> <td valign="bottom" width="15"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 61  </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 670  </td> <td valign="bottom" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="72"> 722  </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="316"> (Loss)/income from discontinued operating properties </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> (127) </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> 657  </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> 238  </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> 6,035  </td> </tr> <tr> <td valign="top" width="316"> Net income attributable to noncontrolling interests </td> <td valign="bottom" width="13"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> -  </td> <td valign="bottom" width="15"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> (1) </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> -  </td> <td valign="bottom" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="72"> (1,133) </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="316"> (Loss)/income from discontinued operations     attributable to the Company </td> <td valign="bottom" width="13"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="73"> (127) </td> <td valign="bottom" width="15"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="73"> 656  </td> <td valign="bottom" width="16"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="73"> 238  </td> <td valign="bottom" width="21"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="72"> 4,902  </td> </tr> </tbody> </table> </div> </div>

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-123355000

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1410000

<div> <div style="WIDTH: 720px"> 12.  Fair Value Measurements All financial instruments of the Company are reflected in the accompanying Condensed Consolidated Balance Sheets at amounts which, in management’s estimation based upon an interpretation of available market information and valuation methodologies, reasonably approximate their fair values except those listed below, for which fair values are reflected.  The valuation method used to estimate fair value for fixed-rate and variable-rate debt and noncontrolling interests relating to mandatorily redeemable noncontrolling interests associated with finite-lived subsidiaries of the Company is based on discounted cash flow analyses, with assumptions that include credit spreads, loan amounts and debt maturities.  The fair values for marketable securities are based on published or securities dealers’ estimated market values.  Such fair value estimates are not necessarily indicative of the amounts that would be realized upon disposition.  The following are financial instruments for which the Company’s estimate of fair value differs from the carrying amounts (in thousands): <table style="FONT-SIZE: 10pt" cellspacing="0" align= "center"> <tbody> <tr style="FONT-SIZE: 0px" height="0"> <td width="388"></td> <td width="25"></td> <td width="91"></td> <td width="22"></td> <td width="85"></td> </tr> <tr> <td valign="top" width="388"> </td> <td valign="top" width="25"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "top" width="199" colspan="3"> June 30, 2009 </td> </tr> <tr> <td valign="top" width="388"> </td> <td valign="top" width="25"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "top" width="91"> Carrying Amounts </td> <td valign="top" width="22"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "top" width="85"> Estimated Fair Value </td> </tr> <tr> <td valign="top" width="388"> </td> <td valign="top" width="25"> </td> <td valign="top" width="91"> </td> <td valign="top" width="22"> </td> <td valign="top" width="85"> </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="388"> Marketable Securities </td> <td valign="bottom" width="25"> $ </td> <td valign="bottom" width="91">  281,743 </td> <td valign="bottom" width="22"> $ </td> <td valign="bottom" width="85">  246,099 </td> </tr> <tr> <td valign="top" width="388"> Notes Payable </td> <td valign="bottom" width="25"> $ </td> <td valign="bottom" width="91"> 2,832,538 </td> <td valign="bottom" width="22"> $ </td> <td valign="bottom" width="85"> 2,595,629 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="388"> Mortgages Payable </td> <td valign="bottom" width="25"> $ </td> <td valign="bottom" width="91"> 1,069,387 </td> <td valign="bottom" width="22"> $ </td> <td valign="bottom" width="85"> 1,063,074 </td> </tr> <tr> <td valign="top" width="388"> Construction Payable </td> <td valign="bottom" width="25"> $ </td> <td valign="bottom" width="91">  236,743 </td> <td valign="bottom" width="22"> $ </td> <td valign="bottom" width="85">  243,472 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="388"> Mandatorily Redeemable Noncontrolling Interests (termination dates ranging from 2019 – 2027) </td> <td valign="bottom" width="25"> $ </td> <td valign="bottom" width="91"> 2,779 </td> <td valign="bottom" width="22"> $ </td> <td valign="bottom" width="85"> 5,800 </td> </tr> </tbody> </table> The Company has certain financial instruments that must be measured under SFAS No. 157, Fair Value Measurements (“SFAS No. 157”), including: available for sale securities, convertible notes and derivatives. The Company currently does not have non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis.   As a basis for considering market participant assumptions in fair value measurements, SFAS No. 157 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The table below presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2008 and June 30, 2009, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands): <table style="FONT-SIZE: 10pt" cellspacing="0" align= "center"> <tbody> <tr style="FONT-SIZE: 0px" height="0"> <td width="222"></td> <td width="22"></td> <td width="96"></td> <td width="19"></td> <td width="67"></td> <td width="19"></td> <td width="73"></td> <td width="16"></td> <td width="73"></td> </tr> <tr> <td valign="bottom" width="222"> </td> <td valign="bottom" width="22"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="96"> Balance at December 31, 2008 </td> <td valign="bottom" width="19"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="67"> Level 1 </td> <td valign="bottom" width="19"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> Level 2 </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> Level 3 </td> </tr> <tr> <td valign="top" width="222"> Assets: </td> <td valign="top" width="22"> </td> <td valign="top" width="96"> </td> <td valign="top" width="19"> </td> <td valign="top" width="67"> </td> <td valign="top" width="19"> </td> <td valign="top" width="73"> </td> <td valign="top" width="16"> </td> <td valign="top" width="73"> </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="222">   Marketable securities </td> <td valign="bottom" width="22"> $ </td> <td valign="bottom" width="96">  46,452 </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="67"> 46,452 </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="73">    - </td> <td valign="bottom" width="16"> $ </td> <td valign="bottom" width="73">    - </td> </tr> <tr> <td valign="top" width="222">   Convertible notes </td> <td valign="bottom" width="22"> $ </td> <td valign="bottom" width="96"> 113,713 </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="67">    - </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="73">  113,713 </td> <td valign="bottom" width="16"> $ </td> <td valign="bottom" width="73">    - </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="222">   Conversion option </td> <td valign="bottom" width="22"> $ </td> <td valign="bottom" width="96">  6,063 </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="67">   - </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="73">  6,063 </td> <td valign="bottom" width="16"> $ </td> <td valign="bottom" width="73">    - </td> </tr> <tr> <td valign="top" width="222"> Liabilities: </td> <td valign="bottom" width="22"> </td> <td valign="bottom" width="96"> </td> <td valign="bottom" width="19"> </td> <td valign="bottom" width="67"> </td> <td valign="bottom" width="19"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="222">   Interest rate swaps </td> <td valign="bottom" width="22"> $ </td> <td valign="bottom" width="96">  734 </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="67">   - </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="73">   734 </td> <td valign="bottom" width="16"> $ </td> <td valign="bottom" width="73">   - </td> </tr> </tbody> </table>    <table style="FONT-SIZE: 10pt" cellspacing="0" align= "center"> <tbody> <tr style="FONT-SIZE: 0px" height="0"> <td width="222"></td> <td width="22"></td> <td width="96"></td> <td width="19"></td> <td width="67"></td> <td width="19"></td> <td width="73"></td> <td width="16"></td> <td width="73"></td> </tr> <tr> <td valign="bottom" width="222"> </td> <td valign="bottom" width="22"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="96"> Balance at June 30, 2009 </td> <td valign="bottom" width="19"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="67"> Level 1 </td> <td valign="bottom" width="19"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> Level 2 </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> Level 3 </td> </tr> <tr> <td valign="top" width="222"> Assets: </td> <td valign="top" width="22"> </td> <td valign="top" width="96"> </td> <td valign="top" width="19"> </td> <td valign="top" width="67"> </td> <td valign="top" width="19"> </td> <td valign="top" width="73"> </td> <td valign="top" width="16"> </td> <td valign="top" width="73"> </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="222">   Marketable securities </td> <td valign="top" width="22"> $ </td> <td valign="top" width="96"> 38,917 </td> <td valign="top" width="19"> $ </td> <td valign="top" width="67"> 38,917 </td> <td valign="top" width="19"> $ </td> <td valign="top" width="73"> - </td> <td valign="top" width="16"> $ </td> <td valign="top" width="73">    - </td> </tr> <tr> <td valign="top" width="222">   Convertible notes </td> <td valign="top" width="22"> $ </td> <td valign="top" width="96"> 124,064 </td> <td valign="top" width="19"> $ </td> <td valign="top" width="67"> - </td> <td valign="top" width="19"> $ </td> <td valign="top" width="73"> 124,064 </td> <td valign="top" width="16"> $ </td> <td valign="top" width="73">    - </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="222">   Conversion option </td> <td valign="top" width="22"> $ </td> <td valign="top" width="96"> 6,805 </td> <td valign="top" width="19"> $ </td> <td valign="top" width="67"> - </td> <td valign="top" width="19"> $ </td> <td valign="top" width="73"> 6,805 </td> <td valign="top" width="16"> $ </td> <td valign="top" width="73">    - </td> </tr> <tr> <td valign="top" width="222"> Liabilities: </td> <td valign="top" width="22"> </td> <td valign="top" width="96"> </td> <td valign="top" width="19"> </td> <td valign="top" width="67"> </td> <td valign="top" width="19"> </td> <td valign="top" width="73"> </td> <td valign="top" width="16"> </td> <td valign="top" width="73"> </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="222">   Interest rate swaps </td> <td valign="top" width="22"> $ </td> <td valign="top" width="96"> 302 </td> <td valign="top" width="19"> $ </td> <td valign="top" width="67"> - </td> <td valign="top" width="19"> $ </td> <td valign="top" width="73"> 302 </td> <td valign="top" width="16"> $ </td> <td valign="top" width="73">   - </td> </tr> </tbody> </table> Assets and liabilities measured at fair value on a non-recurring basis at June 30, 2009 are as follows (in thousands): <table style="FONT-SIZE: 10pt" cellspacing="0" align= "center"> <tbody> <tr style="FONT-SIZE: 0px" height="0"> <td width="222"></td> <td width="22"></td> <td width="96"></td> <td width="19"></td> <td width="67"></td> <td width="19"></td> <td width="73"></td> <td width="16"></td> <td width="73"></td> </tr> <tr> <td valign="bottom" width="222"> </td> <td valign="bottom" width="22"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="96"> Balance at June 30, 2009 </td> <td valign="bottom" width="19"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="67"> Level 1 </td> <td valign="bottom" width="19"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> Level 2 </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> Level 3 </td> </tr> <tr> <td valign="top" width="222"> Assets: </td> <td valign="top" width="22"> </td> <td valign="top" width="96"> </td> <td valign="top" width="19"> </td> <td valign="top" width="67"> </td> <td valign="top" width="19"> </td> <td valign="top" width="73"> </td> <td valign="top" width="16"> </td> <td valign="top" width="73"> </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="222">   Investments and advances in real estate joint ventures </td> <td valign="bottom" width="22"> $ </td> <td valign="bottom" width="96"> 184,218 </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="67"> - </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="73"> - </td> <td valign="bottom" width="16"> $ </td> <td valign="bottom" width="73"> 184,218 </td> </tr> <tr> <td valign="top" width="222">  Real estate under development/redevelopment </td> <td valign="bottom" width="22"> $ </td> <td valign="bottom" width="96"> 82,000 </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="67"> - </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="73"> - </td> <td valign="bottom" width="16"> $ </td> <td valign="bottom" width="73"> 82,000 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="222">  Other real estate investments </td> <td valign="bottom" width="22"> $ </td> <td valign="bottom" width="96"> 28,244 </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="67"> - </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="73"> - </td> <td valign="bottom" width="16"> $ </td> <td valign="bottom" width="73"> 28,244 </td> </tr> <tr> <td valign="top" width="222">  Mortgages receivable </td> <td valign="bottom" width="22"> </td> <td valign="bottom" width="96"> 13,854 </td> <td valign="bottom" width="19"> </td> <td valign="bottom" width="67"> - </td> <td valign="bottom" width="19"> </td> <td valign="bottom" width="73"> - </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> 13,854 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="222">  Marketable debt securities </td> <td valign="bottom" width="22"> $ </td> <td valign="bottom" width="96">   9,575 </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="67"> - </td> <td valign="bottom" width="19"> $ </td> <td valign="bottom" width="73"> 9,575 </td> <td valign="bottom" width="16"> $ </td> <td valign="bottom" width="73"> - </td> </tr> </tbody> </table> During the three months ended June 30, 2009, the Company recognized nonrecurring non-cash impairment charges of approximately $119.6 million relating to adjustments to property carrying values, investments in real estate joint ventures, real estate under development and other real estate investments.  The Company’s estimated fair values relating to these impairment assessments were based upon discounted cash flow models that included all estimated cash inflows and outflows over a specified holding period and where applicable, any estimated debt premiums. These cash flows are comprised of unobservable inputs which include contractual rental revenues and forecasted rental revenues and expenses based upon market conditions and expectations for growth. Capitalization rates and discount rates utilized in these models were based upon observable rates that the Company believes to be within a reasonable range of current market rates for the respective properties.  Based on these inputs the Company determined that its valuation in these investments was classified within Level 3 of the fair value hierarchy.  During 2008, the Company recognized non-recurring non-cash impairment charges of $15.5 million against the carrying value of its investment in its unconsolidated joint ventures with PREI, KimPru, reflecting an other-than-temporary decline in the fair value of its investment resulting from further significant declines in the real estate markets during the fourth quarter of 2008. The Company’s estimated fair values relating to these impairment assessments were based upon discounted cash flow models that included all estimated cash inflows and outflows over a specified holding period and where applicable, any estimated debt premiums. These cash flows are comprised of unobservable inputs which include contractual rental revenues and forecasted rental revenues and expenses based upon market conditions and expectations for growth. Capitalization rates and discount rates utilized in these models were based upon observable rates that the Company believed to be within a reasonable range of current market rates for the respective properties.  Based on these inputs the Company had determined that its valuation of its KimPru investment was classified within Level 3 of the fair value hierarchy.  </div> </div>

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<div> <div style="WIDTH: 720px"> 16.  Taxable REIT Subsidiaries (“TRS”) The Company is subject to federal, state and local income taxes on the income from its TRS activities, which include Kimco Realty Services ("KRS"), a wholly owned subsidiary of the Company and the consolidated entities of FNC Realty Corporation (“FNC”), Kimsouth and Blue Ridge Real Estate Company/Big Boulder Corporation. Income taxes have been provided for on the asset and liability method as required by SFAS No. 109, Accounting for Income Taxes.  Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and the tax basis of the TRS assets and liabilities. The Company’s deferred tax assets and liabilities at June 30, 2009 and December 31, 2008, were as follows (in thousands): <table style="FONT-SIZE: 10pt" cellspacing="0" align= "center"> <tbody> <tr style="FONT-SIZE: 0px" height="0"> <td width="301"></td> <td width="21"></td> <td width="111"></td> <td width="28"></td> <td width="137"></td> </tr> <tr> <td valign="top" width="301"> </td> <td valign="top" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "top" width="111"> June 30, 2009 </td> <td valign="top" width="28"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "top" width="137"> December 31, 2008 </td> </tr> <tr> <td valign="top" width="301"> Deferred tax assets: </td> <td valign="top" width="21"> </td> <td valign="bottom" width="111"> </td> <td valign="top" width="28"> </td> <td valign="bottom" width="137"> </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="301">    Operating losses </td> <td valign="top" width="21"> $ </td> <td valign="bottom" width="111"> 48,202  </td> <td valign="top" width="28"> $ </td> <td valign="bottom" width="137"> 48,863  </td> </tr> <tr> <td valign="top" width="301">    Other timing differences </td> <td valign="top" width="21"> </td> <td valign="bottom" width="111"> 105,559  </td> <td valign="top" width="28"> </td> <td valign="bottom" width="137"> 71,747  </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="301">    Valuation allowance </td> <td valign="top" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="111"> (68,583) </td> <td valign="top" width="28"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="137"> (33,783) </td> </tr> <tr> <td valign="top" width="301"> Total deferred tax assets </td> <td valign="top" width="21"> </td> <td valign="bottom" width="111"> 85,178  </td> <td valign="top" width="28"> </td> <td valign="bottom" width="137"> 86,827  </td> </tr> <tr> <td valign="top" width="301"> </td> <td valign="top" width="21"> </td> <td valign="bottom" width="111"> </td> <td valign="top" width="28"> </td> <td valign="bottom" width="137"> </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="301"> Deferred tax liabilities </td> <td valign="top" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="111"> (11,278) </td> <td valign="top" width="28"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="137"> (2,656) </td> </tr> <tr> <td valign="top" width="301"> </td> <td valign="top" width="21"> </td> <td valign="bottom" width="111"> </td> <td valign="top" width="28"> </td> <td valign="bottom" width="137"> </td> </tr> <tr> <td valign="top" width="301" bgcolor="#CCFFFF"> Net deferred tax assets </td> <td valign="top" width="21" bgcolor="#CCFFFF"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="111" bgcolor="#CCFFFF"> 73,900  </td> <td valign="top" width="28" bgcolor="#CCFFFF"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="137" bgcolor="#CCFFFF"> 84,171  </td> </tr> </tbody> </table>    Deferred tax assets and deferred tax liabilities are included in the caption Other assets and Other liabilities on the accompanying Condensed Consolidated Balance Sheets.  The valuation allowances are primarily due to (i) the Company’s valuation allowance, recorded during the six months ended June 30, 2009, of approximately $34.8 million against timing differences related to impairment charges in KRS and  (ii) a valuation allowance of approximately $33.8 million related to net operating loss (“NOL”) carry forwards that expire from 2022 through 2025 held in FNC. Other deferred tax assets and deferred tax liabilities relate primarily to differences in the timing of the recognition of income/(loss) between the GAAP and tax basis of accounting for (i) real estate joint ventures, (ii) other real estate investments, (iii) other deductible temporary differences and (iv) timing differences related to non-cash impairment charges.  The Company believes that, based on its operating strategy and consistent history of profitability, it is more likely than not that the total deferred tax assets of $85.2 million will be realized on future tax returns, primarily from the generation of future taxable income and the implementation of tax planning strategies that include the potential disposition of certain real estate assets and equity securities. </div> </div>

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<div> <div style="WIDTH: 720px"> 8.  Mortgages and Other Financing Receivables During March 2009, the Company committed approximately $6.0 million as its share of a $20.0 million one-year Debtor-in-Possession (“DIP”) facility to an auto parts supplier.  The DIP facility bears interest at LIBOR plus 11% with a floor of 15% per annum and is secured by all assets of the borrower.  As of June 30, 2009, there was no outstanding balance on this facility.   During the three months ended June 30, 2009, the Company recognized a non-cash impairment charge of $3.5 million, against the carrying value of a mortgage receivable that is currently in default.  The Company has begun foreclosure proceedings on the underlying property and anticipates this process to be completed in the third quarter 2009.  This impairment charge reflects the decrease in the estimated fair value, based on the estimated sales price, of the collateral as of June 30, 2009. </div> </div>

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<div> <div style="WIDTH: 720px"> 10.  Notes Payable During April 2009, the Company closed on a two-year $220.0 million unsecured term loan with a consortium of banks, which accrues interest at a spread (currently 4.65%) to LIBOR (subject to a 2% LIBOR floor) or at the Company’s option, at a spread (currently 3.65%) to the “ABR,” as defined in the Credit Agreement.  The term loan is scheduled to mature in April 2011.  The Company utilized these proceeds to partially repay the outstanding balance under the Company’s U.S. revolving credit facility and for general corporate purposes.   During the six months ended June 30, 2009, the Company repaid (i) its $130.0 million 6.875% senior notes, which matured on February 10, 2009 and (ii) its $20.0 million 7.56% Medium Term Note, which matured in May 2009.   Additionally during the six months June 30, 2009, the Company repurchased approximately $12.5 million in face value of its Medium Term Notes and approximately $4.6 million in face value of its Fixed Rate Bonds at an aggregate discounted purchase price of approximately $15.7 million.  These transactions resulted in an aggregate gain of approximately $1.4 million.   </div> </div>

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<div> <div style="WIDTH: 720px"> 9.  Marketable Securities and Other Investments During the six months ended June 30, 2009, the Company received approximately $17.0 million in proceeds from the sale of certain marketable securities.  The Company recognized gross realizable gains of approximately $0.7 million and gross realizable losses of approximately $1.8 million from sales of marketable securities during the six months ended June 30, 2009.   At June 30, 2009, the Company’s investment in marketable securities was approximately $246.1 million which includes an aggregate unrealized gain of approximately $1.0 million relating to marketable equity security investments and an unrealized loss of approximately $36.7 million, which includes approximately $13.5 million in an unrealized loss due to foreign currency fluctuations, related to its investment in Valad Property Group convertible notes.   For each of the equity securities in the Company’s portfolio with unrealized losses, the Company reviews the underlying cause of the decline in value and the estimated recovery period, as well as the severity and duration of the decline. In the Company’s evaluation, the Company considers its ability and intent to hold these investments for a reasonable period of time sufficient for the Company to recover its cost basis.   For marketable debt securities, the Company assesses current interest payments and the probability of the issuer’s ability to pay all amounts due under contractual terms. Additionally, in accordance with FSP FAS 115-2, the Company assesses whether it has the intent to sell the debt security, whether it is more likely than not that the Company will be required to sell the debt security before its anticipated recovery (for example, if its cash or working capital requirements or contractual or regulatory obligations indicate that the debt security will be required to be sold before the forecasted recovery occurs) and whether it does not expect to recover the security’s entire amortized cost basis, even if the Company does not intend to sell. During the three months ended June 30, 2009, the Company recorded non-cash impairment charges of approximately $26.1 million due to the decline in value of certain marketable securities and other investments that were deemed to be other-than-temporary. Market value for the equity securities represents the closing price of each security as it appears on their respective stock exchange at the end of the period.   At June 30, 2009, marketable equity securities with unrealized loss positions for (i) less than twelve months had an aggregate unrealized loss of approximately $0.9 million and (ii) more than twelve months had an aggregate unrealized loss of approximately $0.2 million. The Company will continue to assess declines in value of its marketable securities on an on going basis.  Based on these assessments, the Company may determine that a decline in value for one or more of its investments may be other-than-temporary and would therefore write-down its cost basis accordingly. </div> </div>

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<div> <div style="WIDTH: 720px"> 5. Ground-Up Development The Company is engaged in ground-up development projects which consist of (i) merchant building through the Company’s wholly-owned taxable REIT subsidiaries, which develop neighborhood and community shopping centers and the subsequent sale after completion, (ii) U.S. ground-up development projects which will be held as long-term investments by the Company and (iii) various ground-up development projects located in Latin America for long-term investment.  The ground-up development projects generally have significant pre-leasing prior to the commencement of construction. As of June 30, 2009, the Company had a total of 36 ground-up development projects, consisting of (i) nine merchant building projects, of which four are substantially complete, (ii) one U.S. ground-up development project, (iii) 19 ground-up development projects located throughout Mexico, (iv) three ground-up development projects located in Chile, (v) three ground-up development projects located in Brazil and (vi) one ground-up development project located in Peru.    Merchant Building - During the six months ended June 30, 2009, the Company sold, in separate transactions, six out-parcels and one ground lease for aggregate proceeds of approximately $11.4 million.  Merchant building transactions for the six months ended June 30, 2009, resulted in gains of approximately $1.4 million, net of income taxes of $1.0 million. As of June 30, 2009, total loan commitments on the Company’s 12 outstanding construction loans aggregated approximately $307.2 million of which approximately $236.7 million has been funded.  These loans have scheduled maturities ranging from two months to 36 months (excluding any extension options which may be available to the Company) and bear interest at rates ranging from 1.96% to 5.00% at June 30, 2009.  Approximately $102.8 million of the outstanding loan balance matures in 2009.  These maturing loans are anticipated to be repaid with operating cash flows, borrowings under the Company’s credit facilities and additional debt financings.  In addition, the Company may pursue or exercise existing extension options with lenders where available. Impairments – During the three months ended June 30, 2009, as part of the Company’s ongoing assessment of its merchant building projects, the Company determined that there was one project with an estimated recoverable value that will not exceed the estimated costs.  This is primarily due to further declines in real estate fundamentals along with  adverse changes in local market conditions and the uncertainty of their recovery.  As a result, the Company recorded an impairment of approximately $2.1 million, representing the excess of the carrying value of the project over its estimate fair value.  The Company’s estimated fair value is based upon projected operating cash flows (discounted and without interest charges) of the property over its specified holding period.  Such cash flow projection considered factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors.  Capitalization rates and discount rates utilized in the model were based upon rates that the Company believes to be within a reasonable range of current market rates for the project. </div> </div>

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<div> <div style="WIDTH: 720px"> 11.  Mortgages Payable During the six months ended June 30, 2009, the Company obtained 17 new non-recourse mortgages aggregating approximately $363.8 million, which bear interest at rates ranging from 5.95% to 8.00% and have maturities ranging from three years to 15 years.  The Company paid off approximately $154.7 million of individual non-recourse mortgage debt that encumbered seven operating properties.    Mortgages payable, collateralized by certain shopping center properties and related tenants' leases, are generally due in monthly installments of principal and/or interest which mature at various dates through 2027. Interest rates range from approximately 1.20% to 10.50% (weighted-average interest rate of 5.69% as of June 30, 2009).  The scheduled principal payments of all mortgages payable, excluding unamortized fair value debt adjustments of approximately $5.4 million, as of June 30, 2009, were approximately as follows (in millions): 2009, $8.9; 2010, $92.7; 2011, $81.7; 2012, $113.2; 2013, $187.7; and thereafter, $579.8. </div> </div>

<div> <div style="WIDTH: 720px"> 13.  Common Stock Transactions During April 2009, the Company completed a primary public stock offering of 105,225,000 shares of the Company’s common stock.  The net proceeds from this sale of common stock, totaling approximately $717.3 million (after related transaction costs of $0.7 million) were used to partially repay the outstanding balance under the Company’s U.S. revolving credit facility and for general corporate purposes.   </div> </div>

<div>    <div style="WIDTH: 720px"> 1.  Interim Financial Statements Principles of Consolidation - The accompanying Condensed Consolidated Financial Statements include the accounts of Kimco Realty Corporation (the “Company”), its subsidiaries, all of which are wholly-owned, and all entities in which the Company has a controlling interest, including where the Company has been determined to be a primary beneficiary of a variable interest entity (“VIE”), in accordance with the provisions and guidance of Financial Accounting Standards Board (“FASB”) Interpretation No. 46(R), Consolidation of Variable Interest Entities (“FIN 46(R)”) or meets certain criteria of a sole general partner or managing member as identified, in accordance with Emerging Issues Task Force (“EITF”) Issue 04-5, Investors Accounting for an Investment in a Limited Partnership when the Investor is the Sole General Partner and the Limited Partners have Certain Rights (“EITF 04-5”).  All inter-company balances and transactions have been eliminated in consolidation.  The information furnished is unaudited and reflects all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature.  These Condensed Consolidated Financial Statements should be read in conjunction with the Company's 2008 Annual Report on Form 10-K. Subsequent Events - The Company has evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through August 6, 2009, the day the financial statements were issued.    Income Taxes - The Company has made an election to qualify, and believes it is operating so as to qualify, as a Real Estate Investment Trust (a “REIT”) for federal income tax purposes.  Accordingly, the Company generally will not be subject to federal income tax, provided that distributions to its stockholders equal at least the amount of its REIT taxable income as defined under Sections 856 through 860 of the Internal Revenue Code, as amended (the “Code”).  However, in connection with the Tax Relief Extension Act of 1999, which became effective January 1, 2001, the Company is permitted to participate in certain activities which it was previously precluded from in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries under the Code.  As such, the Company will be subject to federal and state income taxes on the income from these activities. Real Estate  - Upon acquisition of real estate operating properties, the Company estimates the fair value of acquired tangible assets (consisting of land, building, building improvements and tenant improvements) and identified intangible assets and liabilities (consisting of above and below-market leases, in-place leases and tenant relationships), assumed debt and redeemable units issued in accordance with Statement of Financial Accounting Standards ("SFAS") No. 141(R), Business Combinations ("SFAS No. 141(R)"), at the date of acquisition, based on evaluation of information and estimates available at that date. Based on these estimates, the Company allocates the estimated fair value to the applicable assets and liabilities. Fair value is determined in accordance with FASB Statement No. 157, Fair Value Measurements (“FASB 157”) based on an exit price approach, which contemplates the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  If, up to one year from the acquisition date, information regarding fair value of the assets acquired and liabilities assumed is received and estimates are refined, appropriate adjustments are made to the purchase price allocation on a retrospective basis.  The Company expenses transaction costs associated with business combinations in the period incurred.   On a continuous basis, management assesses whether there are any indicators, including property operating performance and general market conditions, that the value of the real estate properties (including any related amortizable intangible assets or liabilities) may be impaired.  A property value is considered impaired only if management’s estimate of current and projected operating cash flows (undiscounted and without interest charges) of the property over its remaining useful life is less than the net carrying value of the property.  Such cash flow projections consider factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors.  To the extent impairment has occurred, the carrying value of the property would be adjusted to an amount to reflect the estimated fair value of the property. Noncontrolling Interests - Noncontrolling interests represent the portion of equity that the Company does not own in those entities it consolidates as a result of having a controlling interest or determined that the Company was the primary beneficiary of a variable interest entity in accordance with the provisions and guidance of FIN 46(R). Noncontrolling interests also includes partnership units issued by consolidated subsidiaries of the Company in connection with certain property acquisitions.  These units have a stated redemption value (classified as mezzanine equity) or a redemption amount based upon the Adjusted Current Trading Price, as defined, of the Company’s common stock ("Common Stock") and provide the unit holders various rates of return during the holding period.  The unit holders generally have the right to redeem their units for cash at any time after one year from issuance.  The Company typically has the option to settle redemption amounts in cash or Common Stock for the issuance of convertible units.  The Company evaluates the terms of the partnership units issued in accordance with SFAS No. 150, Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity, and EITF D-98, Classification and Measurement of Redeemable Securities, (“EITF-D98”) to determine if the units are mandatorily redeemable and as such accounts for them accordingly.   The Company accounts and reports for noncontrolling interests in accordance with SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements” (“SFAS 160”).  The Company identifies its noncontrolling interests separately within the equity section on the Company’s Condensed Consolidated Balance Sheets.  Redeemable units accounted for under EITF D-98 are classified as Redeemable noncontrolling interests and presented between Total Liabilities and Stockholder’s Equity on the Company’s Condensed Consolidated Balance Sheets.  The amounts of consolidated net income attributable to the Company and to the noncontrolling interests are presented on the Company’s Condensed Consolidated Statements of Operations.  When a subsidiary is deconsolidated, any retained noncontrolling equity investment in the former subsidiary is initially measured at fair value.  Any gain or loss on the deconsolidation of a subsidiary is measured using the fair value of the noncontrolling equity investment rather than the carrying amount of that retained investment.   The following table presents the change in the redemption value of the Redeemable noncontrolling interests for the six months ended June 30, 2009 (amounts in thousands): <table style="FONT-SIZE: 10pt" cellspacing="0" align= "center"> <tbody> <tr style="FONT-SIZE: 0px" height="0"> <td width="265"></td> <td width="30"></td> <td width="96"></td> </tr> <tr> <td valign="top" width="265"> </td> <td valign="top" width="30"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "top" width="96"> 2009 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="265"> Balance at January 1, </td> <td valign="top" width="30"> $ </td> <td valign="top" width="96">   115,853 </td> </tr> <tr> <td valign="top" width="265">    Unit redemptions </td> <td valign="top" width="30"> </td> <td valign="top" width="96"> (13,889) </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="265">    Fair market value amortization </td> <td valign="top" width="30"> </td> <td valign="top" width="96"> (510) </td> </tr> <tr> <td valign="top" width="265">    Other </td> <td valign="top" width="30"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "top" width="96"> (99) </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="top" width="265"> Balance at June 30, </td> <td valign="top" width="30"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "top" width="96">    101,355 </td> </tr> </tbody> </table>    (Loss)/Earnings Per Share - The following table sets forth the reconciliation of (loss)/earnings and the weighted average number of shares used in the calculation of basic and diluted (loss)/earnings per share (amounts presented in thousands except per share data): <table style="FONT-SIZE: 10pt" cellspacing="0" width="720"> <tbody> <tr style="FONT-SIZE: 0px" height="0"> <td width="364"></td> <td width="13"></td> <td width="73"></td> <td width="15"></td> <td width="73"></td> <td width="16"></td> <td width="73"></td> <td width="21"></td> <td width="72"></td> </tr> <tr> <td valign="bottom" width="364"> </td> <td valign="bottom" width="13"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="162" colspan="3"> Three Months Ended June 30, </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="166" colspan="3"> Six Months Ended June 30, </td> </tr> <tr> <td valign="bottom" width="364"> </td> <td valign="bottom" width="13"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 2009 </td> <td valign="bottom" width="15"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 2008 </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 2009 </td> <td valign="bottom" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="72"> 2008 </td> </tr> <tr> <td valign="bottom" width="364"> Computation of Basic (Loss)/Earnings Per Share: </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> </td> </tr> <tr> <td valign="bottom" width="364"> </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="364"> (Loss)/income from continuing operations </td> <td valign="bottom" width="13"> $ </td> <td valign="bottom" width="73"> (133,295) </td> <td valign="bottom" width="15"> $ </td> <td valign="bottom" width="73"> 99,792 </td> <td valign="bottom" width="16"> $ </td> <td valign="bottom" width="73"> (91,894) </td> <td valign="bottom" width="21"> $ </td> <td valign="bottom" width="72"> 201,831 </td> </tr> <tr> <td valign="bottom" width="364"> Gain on transfer of operating properties </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> - </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> - </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> 26 </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> - </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="364"> Gain on sale of operating properties, net of tax </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> 1,555 </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> 24 </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> 1,555 </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> 587 </td> </tr> <tr> <td valign="bottom" width="364"> Net income attributable to noncontrolling interests </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> (2,784) </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> (6,099) </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> (6,152) </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> (15,612) </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="364"> Discontinued operations attributable to noncontrolling interests </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> - </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> 1 </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> - </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> 1,133 </td> </tr> <tr> <td valign="bottom" width="364"> Preferred stock dividends </td> <td valign="bottom" width="13"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> (11,822) </td> <td valign="bottom" width="15"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> (11,822) </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> (23,644) </td> <td valign="bottom" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="72"> (23,644) </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="364"> (Loss)/income from continuing operations available to common shareholders </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> (146,346) </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> 81,896 </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> (120,109) </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> 164,295 </td> </tr> <tr> <td valign="bottom" width="364"> (Loss)/income from discontinued operations attributable to the Company </td> <td valign="bottom" width="13"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> (127) </td> <td valign="bottom" width="15"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 656 </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 238 </td> <td valign="bottom" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="72"> 4,902 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="364"> Net (loss)/income attributable to the Company’s common shareholders </td> <td valign="bottom" width="13"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="73"> (146,473) </td> <td valign="bottom" width="15"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="73"> 82,552 </td> <td valign="bottom" width="16"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="73"> (119,871) </td> <td valign="bottom" width="21"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="72"> 169,197 </td> </tr> <tr> <td valign="bottom" width="364"> Weighted average common shares outstanding </td> <td valign="bottom" width="13"> </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="73"> 368,254 </td> <td valign="bottom" width="15"> </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="73"> 253,740 </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="73"> 319,937 </td> <td valign="bottom" width="21"> </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="72"> 253,336 </td> </tr> <tr> <td valign="bottom" width="364"> </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> </td> </tr> <tr> <td valign="bottom" width="364"> Basic (Loss)/Earnings Per Share attributable to the Company: </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> </td> </tr> <tr> <td valign="bottom" width="364"> </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="364"> (Loss)/income from continuing operations </td> <td valign="bottom" width="13"> $ </td> <td valign="bottom" width="73"> (0.40) </td> <td valign="bottom" width="15"> $ </td> <td valign="bottom" width="73"> 0.32 </td> <td valign="bottom" width="16"> $ </td> <td valign="bottom" width="73"> (0.38) </td> <td valign="bottom" width="21"> $ </td> <td valign="bottom" width="72"> 0.65 </td> </tr> <tr> <td valign="bottom" width="364"> Income from discontinued operations </td> <td valign="bottom" width="13"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> - </td> <td valign="bottom" width="15"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 0.01 </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 0.01 </td> <td valign="bottom" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="72"> 0.02 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="364"> Net (loss)/income </td> <td valign="bottom" width="13"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="73"> (0.40) </td> <td valign="bottom" width="15"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="73"> 0.33 </td> <td valign="bottom" width="16"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="73"> (0.37) </td> <td valign="bottom" width="21"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="72"> 0.67 </td> </tr> <tr> <td valign="bottom" width="364"> </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> </td> </tr> <tr> <td valign="bottom" width="364"> Computation of Diluted (Loss)/Earnings PerShare: </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> </td> </tr> <tr> <td valign="bottom" width="364"> </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> </td> </tr> <tr> <td valign="bottom" width="364"> (Loss)/income from continuing operations available to common shareholders </td> <td valign="bottom" width="13"> $ </td> <td valign="bottom" width="73"> (146,346) </td> <td valign="bottom" width="15"> $ </td> <td valign="bottom" width="73"> 81,896 </td> <td valign="bottom" width="16"> $ </td> <td valign="bottom" width="73"> (120,109) </td> <td valign="bottom" width="21"> $ </td> <td valign="bottom" width="72"> 164,295 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="364"> (Loss)/income from discontinued operations attributable to the Company </td> <td valign="bottom" width="13"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> (127) </td> <td valign="bottom" width="15"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 656 </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 238 </td> <td valign="bottom" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="72"> 4,902 </td> </tr> <tr> <td valign="bottom" width="364"> Net (loss)/income attributable to the Company’s common shareholders </td> <td valign="bottom" width="13"> $ </td> <td valign="bottom" width="73"> (146,473) </td> <td valign="bottom" width="15"> $ </td> <td valign="bottom" width="73"> 82,552 </td> <td valign="bottom" width="16"> $ </td> <td valign="bottom" width="73"> (119,871) </td> <td valign="bottom" width="21"> $ </td> <td valign="bottom" width="72"> $169,197 </td> </tr> <tr> <td valign="bottom" width="364"> </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="364"> Weighted average common shares outstanding – basic </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> 368,254 </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> 253,740 </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> 319,937 </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> 253,336 </td> </tr> <tr> <td valign="bottom" width="364"> Effect of dilutive securities: (a)   Stock options </td> <td valign="bottom" width="13"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> - </td> <td valign="bottom" width="15"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 3,578 </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> - </td> <td valign="bottom" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="72"> 3,154 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="364"> Shares for diluted earnings per common share </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> 368,254 </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> 257,318 </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> 319,937 </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> 256,490 </td> </tr> <tr> <td valign="bottom" width="364"> </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> </td> </tr> <tr> <td valign="bottom" width="364"> Diluted (Loss)/Earnings Per Share attributable to the Company: </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> </td> </tr> <tr> <td valign="bottom" width="364"> </td> <td valign="bottom" width="13"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="15"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="16"> </td> <td valign="bottom" width="73"> </td> <td valign="bottom" width="21"> </td> <td valign="bottom" width="72"> </td> </tr> <tr> <td valign="bottom" width="364"> (Loss)/income from continuing operations </td> <td valign="bottom" width="13"> $ </td> <td valign="bottom" width="73"> (0.40) </td> <td valign="bottom" width="15"> $ </td> <td valign="bottom" width="73"> 0.32 </td> <td valign="bottom" width="16"> $ </td> <td valign="bottom" width="73"> (0.38) </td> <td valign="bottom" width="21"> $ </td> <td valign="bottom" width="72"> 0.64 </td> </tr> <tr bgcolor="#CCFFFF"> <td valign="bottom" width="364"> Income from discontinued operations </td> <td valign="bottom" width="13"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> - </td> <td valign="bottom" width="15"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> - </td> <td valign="bottom" width="16"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="73"> 0.01 </td> <td valign="bottom" width="21"> </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign= "bottom" width="72"> 0.02 </td> </tr> <tr> <td valign="bottom" width="364"> Net (loss)/income </td> <td valign="bottom" width="13"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="73"> (0.40) </td> <td valign="bottom" width="15"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="73"> 0.32 </td> <td valign="bottom" width="16"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="73"> (0.37) </td> <td valign="bottom" width="21"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double" valign= "bottom" width="72"> 0.66 </td> </tr> </tbody> </table> </div>    <div style="WIDTH: 720px"> (a) For three and six months ended June 30, 2009 and 2008, the effect of certain convertible units would have an anti-dilutive effect upon the calculation of (Loss)/income from continuing operations per share.  Accordingly, the impact of such conversion has not been included in the determination of diluted (loss)/earnings per share calculations. There were approximately 16,156,800 and 5,230,200 stock options that were anti-dilutive at June 30, 2009 and 2008, respectively.    </div>    <div style="WIDTH: 720px"> New Accounting Pronouncements - In December 2007, the FASB issued SFAS No. 141(R). The objective of this statement is to improve the relevance, representational faithfulness and comparability of the information that a reporting entity provides in its financial reports about a business combination and its effects. To accomplish that, this statement establishes principles and requirements for how the acquirer: (i) recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree, (ii) recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase, (iii) determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination and (iv) requires expensing of transaction costs associated with a business combination. This statement applies prospectively to business combinations for which the acquisition date is on or after the first annual reporting period beginning on or after December 15, 2008. An entity may not apply it before that date.  The impact the adoption of SFAS No. 141(R) will have on the Company’s financial position and results of operations will be dependent upon the volume of business combinations entered into by the Company.  As of June 30, 2009 the adoption of SFAS No. 141(R) has not had a material effect on the Company’s financial position or results of operations. In April 2009, the FASB issued FSP No. FAS 141(R)-1, “Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies” (“SFAS 141(R)-1”), which amends and clarifies SFAS No. 141(R) to address application issues on initial recognition and measurement, subsequent measurement and accounting, and disclosure of assets and liabilities arising from contingencies in a business combination. SFAS 141(R)-1 has been applied prospectively to business combinations for which the acquisition date is on or after January 1, 2009. Due to the current decline in the Company’s acquisition activities, the initial adoption of SFAS 141(R)-1 has not had a material effect on the Company’s results of operations or financial position. In December 2007, the FASB issued SFAS No. 160, which establishes accounting and reporting standards that require the ownership interests in subsidiaries held by parties other than the parent be clearly identified, labeled and presented in the consolidated statement of financial position within equity, but separate from the parent’s equity; the amount of consolidated net income attributable to the parent and to the noncontrolling interest be clearly identified and presented on the face of the consolidated statement of operations; changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary be accounted for consistently; when a subsidiary is deconsolidated, any retained noncontrolling equity investment in the former subsidiary be initially measured at fair value; and entities provide sufficient disclosures that clearly identify and distinguish between the interests of the parent and the interests of the noncontrolling owners. The objective of the guidance is to improve the relevance, comparability, and transparency of the financial information that a reporting entity provides in its consolidated financial statements. FAS 160 was effective for fiscal years beginning on or after December 15, 2008.  As required by FAS 160, the Company has retrospectively applied the presentation to its prior year balances in its Condensed Consolidated Financial Statements.   The adoption of FSP 160 did not have a material impact on the Company’s financial position or results of operations. In March 2008, the FASB issued FAS 161, "Disclosures about Derivative Instruments and Hedging Activities an amendment of FASB Statement No. 133", (“SFAS No. 161”) which amends and expands the disclosure requirements of FAS 133 to require qualitative disclosure about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements. SFAS No. 161 to be applied prospectively for the first annual reporting period beginning on or after November 15, 2008, with early application encouraged.  SFAS No. 161 also encourages, but does not require, comparative disclosures for earlier periods at initial adoption.  The adoption of SFAS No. 161 did not have a material impact on the Company’s disclosures. In April 2008, the FASB issued the FSP “Determination of the Useful Life of Intangible Assets” (“FSP SFAS 142-3”), which amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under SFAS 142. FSP SFAS 142-3 is intended to improve the consistency between the useful life of an intangible asset determined under SFAS 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS 141(R) and other U.S. Generally Accepted Accounting Principles. The guidance for determining the useful life of a recognized intangible asset in this FSP shall be applied prospectively to intangible assets acquired after the effective date. The disclosure requirements in this FSP shall be applied prospectively to all intangible assets recognized as of, and subsequent to, the effective date. FSP SFAS 142-3 was effective for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. Early adoption was not permitted. The adoption of this standard did not have a material impact on the Company’s financial position or results of operations.    In June 2008, the FASB issued FASB Staff Position No. EITF 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities," (“EITF 03-6-1”), which classifies unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) as participating securities and requires them to be included in the computation of earnings per share pursuant to the two-class method described in SFAS No. 128, "Earnings per Share."  EITF 03-6-1 was effective for financial statements issued for fiscal years beginning after December 15, 2008. All prior-period earnings per share data presented are to be adjusted retrospectively. The Company’s adoption of EITF 03-6-1 did not have a material impact on the Company’s financial position or results of operations. In November 2008, the FASB issued EITF Issue No. 08-6, “Equity Method Investment Accounting Considerations” (“EITF 08-6”). EITF 08-6 clarifies the accounting for certain transactions and impairment considerations involving equity method investments. EITF 08-6 applies to all investments accounted for under the equity method. EITF 08-6 was effective for fiscal years and interim periods beginning on or after December 15, 2008. The adoption of this standard did not have a material impact on the Company’s financial position or results of operations. In April 2009, the FASB issued FSP 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (“FSP 157-4”). This FSP provides additional guidance for estimating fair value in accordance with FASB Statement No. 157, Fair Value Measurements, when the volume and level of activity for the asset or liability have significantly decreased. This FSP also includes guidance on identifying circumstances that indicate a transaction is not orderly.  Additionally, this FSP emphasizes that even if there has been a significant decrease in the volume and level of activity for the asset or liability and regardless of the valuation technique(s) used, the objective of a fair value measurement remains the same. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions.  This FSP was effective for interim and annual reporting periods ending after June 15, 2009, and shall be applied prospectively. The adoption of FSP 157-4 did not have a material impact on the Company’s financial position or results of operations.   In April 2009, the FASB issued FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments (“FSP FAS 115-2 and FAS 124-2”). This FSP amends the other-than-temporary impairment guidance in U.S. GAAP for debt securities to make the guidance more operational and to improve the presentation and disclosure of other-than-temporary impairments on debt and equity securities in the financial statements. This FSP does not amend existing recognition and measurement guidance related to other-than-temporary impairments of equity securities.  The FSP shall be effective for interim and annual reporting periods ending after June 15, 2009.  The adoption of FSP FAS 115-2 and FAS 124-2, did not have a material impact on the Company’s financial position or results of operations. In April 2009, the FASB issued FSP FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments (“FSP FAS 107-1 and APB 28-1”). This FSP amends FASB Statement No. 107, Disclosures about Fair Value of Financial Instruments, to require disclosures about fair value of financial instruments for interim reporting periods of publicly traded companies as well as in annual financial statements. This FSP also amends APB Opinion No. 28, Interim Financial Reporting, to require those disclosures in summarized financial information at interim reporting periods.  This FSP is effective for interim reporting periods ending after June 15, 2009. The adoption of FSP FAS 107-1 and APB 28-1 did not have a material impact on the Company’s disclosures. In May 2009, the FASB issued SFAS No. 165, “Subsequent Event” (“FAS 165”), which provides guidance to establish general standards of accounting for and disclosures of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. FAS 165 also requires entities to disclose the date through which subsequent events were evaluated as well as the rationale for why that date was selected. This disclosure should alert all users of financial statements that an entity has not evaluated subsequent events after that date in the set of financial statements being presented. FAS 165 was effective for interim and annual reporting periods ending after June 15, 2009.  The Company’s adoption of FAS 165 did not have a material impact on the Company’s financial position or results of operations. In June 2009, the FASB issued SFAS No. 166, "Accounting for Transfers of Financial Assets an amendment of FASB Statement No. 140" (“FAS No. 166”), which amends the derecognition guidance in FASB Statement No. 140 and eliminates the exemption from consolidation for qualifying special-purpose entities. This statement is effective for financial asset transfers occurring after the beginning of an entity's first fiscal year that begins after November 15, 2009. This statement will be effective for the Company beginning in fiscal 2010. The Company is still assessing the potential impact the adoption of FAS No. 166 will have on the Company’s financial position or results of operations.    In June 2009, the FASB issued SFAS No. 167, "Amendments to FASB Interpretation No. 46(R)" (“FAS No. 167”), which amends the consolidation guidance applicable to variable interest entities. The amendments will significantly affect the overall consolidation analysis under FASB Interpretation No. 46(R). This statement is effective as of the beginning of the first fiscal year that begins after November 15, 2009, early adoption is prohibited. This statement will be effective for the Company beginning in fiscal 2010. The Company is still assessing the potential impact the adoption of FAS No. 167 will have on the Company’s financial position and results of operations. In June 2009, the FASB issued SFAS No. 168, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles-a replacement of FAS No. 162” (“SFAS 168”), established the FASB Accounting Standards Codification (the “Codification”) as the source of authoritative U.S. generally accepted accounting principles recognized by the FASB to be applied by nongovernmental entities.  This statement is effective for financial statements issued for interim and annual periods ending after September 15, 2009.  On the effective date of this Statement, the Codification will supersede all then-existing non-SEC accounting and reporting standards. All other non-grandfathered non-SEC accounting literature not included in the Codification will become non-authoritative.  The adoption of SFAS 168 will require the Company to adjust references to authoritative accounting literature in the financial statements, but will not affect the Company’s financial position or results of operations. Reclassifications - Certain reclassifications have been made to the 2008 impairment charges to conform to the 2009 presentation.   </div> <style> /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} /*]]>*/ /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} /*]]>*/ /*<![CDATA[*/  /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} /*]]>*/ </style> </div>

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