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The chart below lists some of the larger contractual rental step ups for the REIT occurring over the next 12 months: 

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Tenant inducements increased by $3.4 million in the year ended December 31, 2010 due primarily to one inducement for a tenant at 310-330 Front Street offset by normal periodic amortization. 

Prepaid expenses and sundry assets have decreased from $12.8 million at December 31, 2009 to $6.9 million at December 31, 2010 primarily due to a deposit that was applied to the purchase of the Caledon lands. 

Restricted cash decreased from $20.0 million at December 31, 2009 to $19.1 million at December 31, 2010 due primarily to a decrease in funds being held in escrow relating to costs to complete Bell Phase III. 

Mortgages and amount receivable decreased from $63.8 million to $3.0 million from December 31, 2009 to December 31, 2010. The decrease of $60.8 million is primarily due to the collection of a $58 million mortgage receivable in April 2010 along with the collection of $3.2 million of a mortgage receivable from the REIT’s partner in the Airport Road lands during 2010. 

Future income tax asset has decreased from $14.3 million at December 31, 2009 to $nil as at December 31, 2010 as the REIT has now completed the necessary restructuring to permit the REIT to qualify for the REIT Exemption beginning in 2011. Accordingly, this balance has been recognized in earnings. 

Derivative instruments represented the fair value of the interest rate swap on the Bow construction facility at December 31, 2009. At December 31, 2010, the fair value of the interest rate swap on the Bow construction facility was a liability of $2,897. In May 2010, the REIT entered into monthly future foreign exchange forward contracts which had a fair value of $1,225 at December 31, 2010. 

