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The following is a reconciliation of the Trusts’ AFFO to cash provided by operations: 

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## Capital Resources 

In accordance with National Policy 41-201, the Trusts are required to provide the following additional disclosure relating to cash distributions: 

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For the three months ended December 31, 2010, and years ended December 31, 2010, December 31, 2009 and 2008, cash provided by operating activities exceeded cash distributions. Management expects this trend to continue. 

Cash distributions exceeded net earnings for the three months ended December 31, 2010 due to the impairment loss on income properties and other non-cash items which are deducted or added in determining net earnings. Net earnings exceed cash distributions paid for the year ended December 31, 2010 and the year ended December 31, 2009. Non-cash items such as impairment losses, gain on extinguishment of debt, future income tax recoveries, unrealized gains or losses, depreciation and amortization, while deducted from or added to net earnings have no impact on cash available to pay current distributions. 

Subject to market conditions, management expects to be able to meet all of the Trusts’ ongoing obligations and to finance short-term development commitments through the issue of new securities, as well as by using conventional real estate debt, selling or refinancing other assets, short-term financing from the bank and the Trusts’ cash flow from operations. As at December 31, 2010, the REIT is not in default or arrears on any of its obligations including distribution payments, interest or principal payments on debt and any debt covenant with the exception of the non payment of principal and interest for the three Boscov’s Department Store, the two Bruno’s Supermarkets LLC and the two A&P mortgages following the Chapter 11 filings of those tenants. The REIT has handed over control of three of the properties to the respective mortgage companies and is waiting for those companies to legally release the REIT’s subsidiaries from their debt obligations. 

The REIT’s general operating facility has been provided by the same chartered bank since the REIT’s inception. This general operating facility expires on December 31, 2012 and is secured by certain income properties. At December 31, 2010, approximately $188.1 million was still available under this facility. 

