Exhibit 99.1

Certain information contained in this table has been retrospectively adjusted based upon the reclassification discussed in Note 2
of Notes to Consolidated Financial Statements.

		Years ended December 31,
Operations data:		2008				2007				2006				2005				2004
Total revenues		$	174,129,000			$	154,119,000			$	126,182,000			$	78,738,000			$	51,078,000
Expenses:
Property operating expenses			49,392,000				41,022,000				35,137,000				22,216,000				15,623,000
General and administrative			9,441,000				9,041,000				6,086,000				5,132,000				3,575,000
Depreciation and amortization			49,745,000				42,104,000				34,827,000				20,567,000				11,376,000
Total expenses			108,578,000				92,167,000				76,050,000				47,915,000				30,574,000
Operating income			65,551,000				61,952,000				50,132,000				30,823,000				20,504,000
Non-operating income and expense:
Interest expense, including amortization of deferred financing costs			(45,957,000	)			(39,529,000	)			(34,225,000	)			(16,249,000	)			(11,264,000	)
Interest income			284,000				788,000				641,000				91,000				66,000
Equity in income of unconsolidated joint venture			956,000				634,000				70,000				—				—
Gain on sale of interest in unconsolidated joint venture			—				—				141,000				—				—
Total non-operating income and expense			(44,717,000	)			(38,107,000	)			(33,373,000	)			(16,158,000	)			(11,198,000	)
Income before discontinued operations			20,834,000				23,845,000				16,759,000				14,665,000				9,306,000
Income from discontinued operations			175,000				172,000				171,000				117,000				—
Net income			21,009,000				24,017,000				16,930,000				14,782,000				9,306,000
Less, net (income) attributable to noncontrolling interests:
Minority interests in consolidated joint ventures			(2,157,000	)			(1,415,000	)			(1,202,000	)			(1,270,000	)			(1,229,000	)
Limited partners’ interest in Operating Partnership			(477,000	)			(633,000	)			(393,000	)			(299,000	)			(157,000	)
Total net (income) attributable to noncontrolling interests			(2,634,000	)			(2,048,000	)			(1,595,000	)			(1,569,000	)			(1,386,000	)
Net income attributable to Cedar Shopping Centers, Inc.			18,375,000				21,969,000				15,335,000				13,213,000				7,920,000
Preferred distribution requirements			(7,877,000	)			(7,877,000	)			(7,877,000	)			(7,186,000	)			(2,218,000	)
Net income attributable to common shareholders		$	10,498,000			$	14,092,000			$	7,458,000			$	6,027,000			$	5,702,000
Per common share (basic and diluted) attributable to common shareholders:
Continuing operations		$	0.24			$	0.32			$	0.22			$	0.25			$	0.34
Discontinued operations			—				—				0.01				—				—
		$	0.24			$	0.32			$	0.23			$	0.25			$	0.34
Amounts attributable to Cedar Shopping Centers, Inc. common shareholders, net of limited partners’ interest:
Income from continuing operations		$	10,331,000			$	13,927,000			$	7,296,000			$	5,916,000			$	5,702,000
Income from discontinued operations			167,000				165,000				162,000				111,000				—
Net income		$	10,498,000			$	14,092,000			$	7,458,000			$	6,027,000			$	5,702,000
Dividends to common shareholders		$	40,027,000			$	39,775,000			$	29,333,000			$	20,844,000			$	13,750,000
Per common share		$	0.90			$	0.90			$	0.90			$	0.90			$	0.835
Weighted average number of common shares outstanding:
Basic			44,475,000				44,193,000				32,926,000				23,988,000				16,681,000
Diluted			44,475,000				44,197,000				33,055,000				24,031,000				16,684,000

Item 6. Selected Financial Data (continued)

		December 31,
Balance sheet data:		2008				2007				2006				2005				2004
Real estate, net		$	1,632,408,000			$	1,489,650,000			$	1,172,816,000			$	943,727,000			$	505,325,000
Real estate held for sale			4,920,000				5,360,000				5,079,000				2,803,000				—
Investment in unconsolidated joint venture			4,976,000				3,757,000				3,644,000				—				—
Other assets			84,824,000				96,217,000				70,180,000				49,726,000				31,835,000
Total assets		$	1,727,128,000			$	1,594,984,000			$	1,251,719,000			$	996,256,000			$	537,160,000
Mortgages and other loans payable		$	1,013,473,000			$	851,514,000			$	568,073,000			$	527,791,000			$	248,630,000
Other liabilities			107,932,000				97,225,000				70,595,000				44,405,000				34,239,000
Total liabilities			1,121,405,000				948,739,000				638,668,000				572,196,000				282,869,000
Limited partners’ interest in Operating Partnership			14,271,000				15,578,000				19,613,000				16,660,000				—
Equity:
Cedar Shopping Centers, Inc. shareholders’ equity			524,027,000				558,154,000				574,472,000				390,244,000				235,754,000
Noncontrolling interests			67,425,000				72,513,000				18,966,000				17,156,000				18,537,000
Total equity			591,452,000				630,667,000				593,438,000				407,400,000				254,291,000
Total liabilities and equity		$	1,727,128,000			$	1,594,984,000			$	1,251,719,000			$	996,256,000			$	537,160,000
Weighted average number of common shares:
Shares used in determination of basic earnings per share			44,475,000				44,193,000				32,926,000				23,988,000				16,681,000
Additional shares assuming conversion of OP Units (basic)			2,024,000				1,985,000				1,737,000				1,202,000				450,000
Shares used in determination of basic FFO per share			46,499,000				46,178,000				34,663,000				25,190,000				17,131,000
Shares used in determination of diluted earnings per share			44,475,000				44,197,000				33,055,000				24,031,000				16,684,000
Additional shares assuming conversion of OP Units (diluted)			2,024,000				1,990,000				1,747,000				1,206,000				450,000
Shares used in determination of diluted FFO per share			46,499,000				46,187,000				34,802,000				25,237,000				17,134,000
Other data:
Funds From Operations (“FFO”) (a)		$	56,859,000			$	56,190,000			$	41,954,000			$	25,923,000			$	15,625,000
Per common share (assuming conversion of OP Units):
Basic		$	1.22			$	1.22			$	1.21			$	1.03			$	0.91
Diluted		$	1.22			$	1.22			$	1.21			$	1.03			$	0.91
Cash flows provided by (used in):
Operating activities		$	60,352,000			$	53,503,000			$	40,858,000			$	26,738,000			$	18,823,000
Investing activities		$	(150,927,000	)		$	(192,432,000	)		$	(190,105,000	)		$	(323,225,000	)		$	(167,499,000	)
Financing activities		$	75,517,000			$	143,735,000			$	158,011,000			$	296,823,000			$	151,169,000
Square feet of GLA			12,131,000				11,988,000				10,045,000				8,428,000				4,887,000
Percent leased (including development/redevelopment and other non-stabilized properties)			92	%			93	%			93	%			91	%			88	%
Average annualized base rent per leased square foot		$	11.02			$	10.74			$	10.53			$	10.39			$	10.61

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

     The following discussion should be read in conjunction with the consolidated financial statements and related notes thereto of Cedar Shopping Centers, Inc. (the “Company”) included elsewhere in this report.

Executive Summary

     The Company is a fully-integrated real estate investment trust which focuses primarily on ownership, operation, development and redevelopment of supermarket-anchored shopping centers in mid-Atlantic and Northeast coastal states. At December 31, 2008, the Company had a portfolio of 121 operating properties totaling approximately 12.1 million square feet of gross leasable area (“GLA”), including 109 wholly-owned properties comprising approximately 10.9 million square feet, ten properties owned in joint venture comprising approximately 1.2 million square feet, and two wholly-owned properties held for sale comprising approximately 16,000 square feet. The entire 121 property portfolio was approximately 92% leased at December 31, 2008; the 111 property “stabilized” portfolio (including properties wholly-owned, but not held for sale, and in joint venture) was approximately 95% leased at that date. The Company also owned 398 acres of land parcels, a significant portion of which is under development. In addition, the Company has a 76.3% interest in an unconsolidated joint venture which owns a single-tenant office property in Philadelphia, Pennsylvania.

     The Company, organized as a Maryland corporation, has established an umbrella partnership structure through the contribution of substantially all of its assets to the Operating Partnership, organized as a limited partnership under the laws of Delaware. The Company conducts substantially all of its business through the Operating Partnership. At December 31, 2008, the Company owned 95.7% of the Operating Partnership and is its sole general partner. OP Units are economically equivalent to the Company’s common stock and are convertible into the Company’s common stock at the option of the holders on a one-to-one basis.

     The Company derives substantially all of its revenues from rents and operating expense reimbursements received pursuant to long-term leases. The Company’s operating results therefore depend on the ability of its tenants to make the payments required by the terms of their leases. The Company focuses its investment activities on supermarket-anchored community shopping centers and drug store-anchored convenience centers. The Company believes that, because of the need of consumers to purchase food and other staple goods and services generally available at such centers, its type of “necessities"-based properties should provide relatively stable revenue flows even during difficult economic times. In January 2009, the Company’s Board of Directors reduced the quarterly dividend payable in February by one-half to an annual rate of $0.45 per share, an annual saving of approximately $21 million. This decision was in response to the current state of the economy, the difficult retail environment and the constrained capital markets.

     The Company has historically sought opportunities to acquire properties suited for development and/or redevelopment, and, to a lesser extent than in the recent past, stabilized properties, where it can utilize its experience in shopping center construction, renovation, expansion, re-leasing and re-merchandising to achieve long-term cash flow growth and favorable investment returns. The Company expects to substantially reduce these activities in the foreseeable future in view of current economic conditions.

     In May 2007, the Company decided to dispose of Stadium Plaza, located in East Lansing, Michigan. The property, with 78,000 sq. ft. of GLA, was marketed and, in accordance with SFAS No. 144, the carrying value of the property’s assets (principally the net book value of the real estate) was classified as “held for sale” in the Company’s consolidated financial statements. In May 2008, the Company reconsidered its decision to sell the property and, as a result, the property has been reclassified as “held and used”. For all periods presented, the property is no longer included in “properties held for sale” or “discontinued operations”.

     In April 2008, Value City, the only tenant at the Value City Shopping center, vacated its premises at the end of the lease term. In keeping with the Company’s redevelopment plans for the property, the vacant building was subsequently razed and the Company took a one-time depreciation charge of $1.9 million. The property has been reclassified as “land for projects under development, expansion and/or future development”, and is no longer included as one of the Company’s operating properties. During the fourth quarter of 2008, the Company wrote off, principally in general and administrative expenses, approximately $1.1 million of costs related to terminated transactions or developments, principally a land parcel held for development in Ephrata, Pennsylvania ($450,000) and the cancelation of a proposed second joint venture with Homburg Invest Inc. ($203,000).

     Subsequent to December 31, 2008, the Company sold (1) its 6,000 sq. ft. McDonalds/Waffle House property, located in Medina, Ohio, for a sales price of $1.3 million, and (2) its 10,000 sq. ft. CVS property located in Westfield, New York for a sales price of $1.7 million. In accordance with SFAS 144, the carrying values of the assets of these properties, principally the net book values of the real estate, have been reclassified as “held for sale” on the Company’s consolidated balance sheets at December 31, 2008 and 2007. There were no related “held for sale” liabilities associated with the properties. In addition, the properties’ results of operations have been classified as “discontinued operations” for all periods presented in the consolidated statements of income.

Summary of Critical Accounting Policies

     The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition and the allowance for doubtful accounts receivable, real estate investments and purchase accounting allocations related thereto, asset impairment, and derivatives used to hedge interest-rate risks. Management’s estimates are based both on information that is currently available and on various other assumptions management believes to be reasonable under the circumstances. Actual results could differ from those estimates and those estimates could be different under varying assumptions or conditions.

     The Company has identified the following critical accounting policies, the application of which requires significant judgments and estimates:

Revenue Recognition

     Rental income with scheduled rent increases is recognized using the straight-line method over the respective terms of the leases. The aggregate excess of rental revenue recognized on a straight-line basis over base rents under applicable lease provisions is included in straight-line rents receivable on the consolidated balance sheet. Leases also generally contain provisions under which the tenants reimburse the Company for a portion of property operating expenses and real estate taxes incurred; such income is recognized in the periods earned. In addition, certain operating leases contain contingent rent provisions under which tenants are required to pay a percentage of their sales in excess of a specified amount as additional rent. The Company defers recognition of contingent rental income until those specified targets are met.

     The Company must make estimates as to the collectibility of its accounts receivable related to base rent, straight-line rent, expense reimbursements and other revenues. Management analyzes accounts receivable by considering tenant creditworthiness, current economic conditions, and changes in tenants’ payment patterns when evaluating the adequacy of the allowance for doubtful accounts receivable. These estimates have a direct impact on net income, because a higher bad debt allowance would result in lower net income, whereas a lower bad debt allowance would result in higher net income.

Real Estate Investments

     Real estate investments are carried at cost less accumulated depreciation. The provision for depreciation is calculated using the straight-line method based on estimated useful lives. Expenditures for maintenance, repairs and betterments that do not materially prolong the normal useful life of an asset are charged to operations as incurred. Expenditures for betterments that substantially extend the useful lives of real estate assets are capitalized. Real estate investments include costs of development and redevelopment activities, and construction in progress. Capitalized costs, including interest and other carrying costs during the construction and/or renovation periods, are included in the cost of the related asset and charged to operations through depreciation over the asset’s estimated useful life. The Company is required to make subjective estimates as to the useful lives of its real estate assets for purposes of determining the amount of depreciation to reflect on an annual basis. These assessments have a direct impact on net income. A shorter estimate of the useful life of an asset would have the effect of increasing depreciation expense and lowering net income, whereas a longer estimate of the useful life of an asset would have the effect of reducing depreciation expense and increasing net income.

     The Company’s capitalization policy on its development and redevelopment properties is guided by SFAS No. 34, “Capitalization of Interest Cost” and SFAS No. 67, “Accounting for Costs and Initial Rental Operations of Real Estate Projects”. A variety of costs are incurred in the acquisition, development and leasing of a property, such as pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, salaries and related costs, and other costs incurred during the period of development. After a determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. The Company ceases capitalization on the portions substantially completed and occupied, or held available for occupancy, and capitalizes only those costs associated with the portions under construction. The Company considers a construction project as substantially completed and held available for occupancy upon the completion of tenant improvements, but not later than one year from cessation of major construction activity. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. The effect of a longer capitalization period would be to increase capitalized costs and would result in higher net income, whereas the effect of a shorter capitalization period would be to reduce capitalized costs and would result in lower net income.

     The Company applies SFAS No. 141, “Business Combinations”, and SFAS No. 142, “Goodwill and Other Intangibles”, in valuing real estate acquisitions. In connection therewith, the fair value of real estate acquired is allocated to land, buildings and improvements. In addition, the fair value of in-place leases is allocated to intangible lease assets and liabilities. The fair value of the tangible assets of an acquired property is determined by valuing the property as if it were vacant, which value is then allocated to land, buildings and improvements based on management’s determination of the relative fair values of such assets. In valuing an acquired property’s intangibles, factors considered by management include an estimate of carrying costs during the expected lease-up periods, such as real estate taxes, insurance, other operating expenses, and estimates of lost rental revenue during the expected lease-up periods based on its evaluation of current market demand. Management also estimates costs to execute similar leases, including leasing commissions, tenant improvements, legal and other related costs. The principal impact of the adoption of SFAS No. 141R, “Business Combinations — a replacement of FASB Statement No. 141” (effective January 1, 2009), on the Company’s financial statements will be that the Company will expense most transaction costs relating to its acquisition activities. The amount of transaction costs deferred at December 31, 2008 that the Company will expense in the quarter ending March 31, 2009 was approximately $0.2 million.

     The value of in-place leases is measured by the excess of (i) the purchase price paid for a property after adjusting existing in-place leases to market rental rates, over (ii) the estimated fair value of the property as if vacant. Above-market and below-market in-place lease values are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between the contractual amounts to be received and management’s estimate of market lease rates, measured over the non-cancelable terms of the respective leases. The value of other intangibles is amortized to expense, and the above-market and below-market lease values are amortized to rental income, over the remaining non-cancelable terms of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be recognized in operations at that time.

     Management is required to make subjective assessments in connection with its valuation of real estate acquisitions. These assessments have a direct impact on net income, because (i) above-market and below-market lease intangibles are amortized to rental income, and (ii) the value of other intangibles is amortized to expense. Accordingly, higher allocations to below-market lease liability and other intangibles would result in higher rental income and amortization expense, whereas lower allocations to below-market lease liability and other intangibles would result in lower rental income and amortization expense.

     The Company applies SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”, to recognize and measure impairment of long-lived assets. Management reviews each real estate investment for impairment whenever events or circumstances indicate that the carrying value of a real estate investment may not be recoverable. The review of recoverability is based on an estimate of the future cash flows that are expected to result from the real estate investment’s use and eventual disposition. These estimates of cash flows consider factors such as expected future operating income, trends and prospects, as well as the effects of leasing demand, competition and other factors. If an impairment event exists due to the projected inability to recover the carrying value of a real estate investment, an impairment loss is recorded to the extent that the carrying value exceeds estimated fair value. A real estate investment held for sale is carried at the lower of its carrying amount or estimated fair value, less the cost of a potential sale. Depreciation and amortization are suspended during the period the property is held for sale. Management is required to make subjective assessments as to whether there are impairments in the value of its real estate properties. These assessments have a direct impact on net income, because an impairment loss is recognized in the period that the assessment is made.

Stock-Based Compensation

     SFAS No. 123R, “Share-Based Payments”, establishes financial accounting and reporting standards for stock-based employee compensation plans, including all arrangements by which employees receive shares of stock or other equity instruments of the employer, or the employer incurs liabilities to employees in amounts based on the price of the employer’s stock. The statement also defines a fair value-based method of accounting for an employee stock option or similar equity instrument.

     The Company’s 2004 Stock Incentive Plan (the “Incentive Plan”) provides for the granting of incentive stock options, stock appreciation rights, restricted shares, performance units and performance shares. The maximum number of shares of the Company’s common stock that may be issued pursuant to the Incentive Plan, as amended, is 2,750,000, and the maximum number of shares that may be granted to a participant in any calendar year is 250,000. Substantially all grants issued pursuant to the Incentive Plan are “restricted stock grants” which specify vesting (i) upon the third anniversary of the date of grant for time-based grants, or (ii) upon the completion of a designated period of performance for performance-based grants. Time–based grants are valued according to the market price for the Company’s common stock at the date of grant. For performance-based grants, the Company engages an independent appraisal company to determine the value of the shares at the date of grant, taking into account the underlying contingency risks associated with the

performance criteria. These value estimates have a direct impact on net income, because higher valuations would result in lower net income, whereas lower valuations would result in higher net income. The value of such grants is being amortized on a straight-line basis over the respective vesting periods, as adjusted for fluctuations in the market value of the Company’s common stock, in accordance with the provisions of EITF No. 97-14, “Accounting for Deferred Compensation Arrangements Where Amounts Earned Are Held in a Rabbi Trust and Invested”.

Results of Operations

     Differences in results of operations between 2008 and 2007, and between 2007 and 2006, respectively, were primarily the result of the Company’s property acquisition program and continuing development/redevelopment activities. During the period January 1, 2007 through December 31, 2008, the Company acquired 24 shopping and convenience centers aggregating approximately 2.2 million sq. ft. of GLA, purchased the joint venture minority interests in four properties, and acquired approximately 200 acres of land for development, expansion and/or future development, for a total cost of approximately $116.5 million. In addition, the Company placed into service two ground-up developments having an aggregate cost of approximately $6.3 million. Net income was $21.0 million in 2008 as compared with $24.0 million in 2007 and $16.9 million in 2006.

Comparison of 2008 to 2007

																						Properties
														Percentage				Acquisitions				held in
		2008				2007				Increase				change				and other (ii)				both years
Total revenues		$	174,129,000			$	154,119,000			$	20,010,000				13	%		$	23,093,000			$	(3,083,000	)
Property operating expenses			49,392,000				41,022,000				8,370,000				20	%			7,222,000				1,148,000
Depreciation and amortization			49,745,000				42,104,000				7,641,000				18	%			8,706,000				(1,065,000	)
General and administrative			9,441,000				9,041,000				400,000				4	%			n/a				n/a
Non-operating income and expense, net (i)			44,717,000				38,107,000				6,610,000				17	%			n/a				n/a
Income from discontinued operations			175,000				172,000				3,000				2	%			n/a				n/a

     Properties held in both years. The Company held 94 properties throughout 2008 and 2007. Total revenues decreased primarily as a result of (i) a decrease in the amortization of intangible lease liabilities ($230,000) resulting from expiration of applicable lease terms in the ordinary course, (ii) a decrease in the straight-line rents in the ordinary course ($1,063,000) partially offset by an increase in base rent from lease commencements at the Company’s properties ($579,000) which includes a decrease in base rent at a property in which a tenant vacated ($417,000), (iii) a decrease in percentage rental income due to some lower tenant sales ($654,000), (iv) a decrease in tenant recoveries ($856,000) primarily due to a higher collection rate in 2007 due to billing system improvements made in 2006 and 2007 and (v) a decrease in other income ($859,000) predominately related to a decrease in lease termination income partially offset by an increase in insurance proceeds.

     Property operating expenses increased as a result of (i) an increase in real estate and other property-related taxes, related principally to reassessments of properties previously acquired and completed development and redevelopment ($440,000), (ii) an increase in the provision for doubtful accounts primarily due to a higher collection rate in 2007 due to billing system improvements made in 2006 and 2007 ($647,000), (iii) an increase in non-billable expenses and operating expenses primarily due to expenses related to the above-mentioned insurance proceeds ($514,000), partially offset by (iv) a decrease in snow removal costs ($453,000).

     General and administrative expenses. General and administrative expenses increased primarily as a result of the write off of costs associated with terminated transactions, increased compensation costs, increased professional fees and the Company’s continued growth, partially offset by costs incurred in 2007 associated with the retirement of a senior executive and the initial compensation/relocation costs of his replacement ($1,535,000 in the aggregate).

     Non-operating income and expense. Non-operating income and expense, net, increased primarily as a result of (i) increased interest costs from borrowings related to property acquisitions and acquisitions of a joint venture partner’s interests, partially off-set by (ii) earnings from an unconsolidated joint venture acquired in November 2006 and additional investment in the unconsolidated joint venture made in April of 2008.

Comparison of 2007 to 2006

																						Properties
														Percentage				Acquisitions				held in
		2007				2006				Increase				change				and other (ii)				both years
Total revenues		$	154,119,000			$	126,182,000			$	27,937,000				22	%		$	24,792,000			$	3,145,000
Property operating expenses			41,022,000				35,137,000				5,885,000				17	%			5,589,000				296,000
Depreciation and amortization			42,104,000				34,827,000				7,277,000				21	%			7,958,000				(681,000	)
General and administrative			9,041,000				6,086,000				2,955,000				49	%			n/a				n/a
Non-operating income and expense, net (i)			38,107,000				33,373,000				4,734,000				14	%			n/a				n/a
Income from discontinued operations			172,000				171,000				1,000				1	%			n/a				n/a

     Properties held in both years. The Company held 80 properties throughout 2007 and 2006. Total revenues increased primarily as a result of (i) an increase in base rent from lease commencements at the Company’s development, redevelopment and stabilized properties ($2,699,000), (ii) an increase in expense recoveries (see increase in property operating expenses below) ($2,051,000), and (iii) an increase in lease termination fees ($1,195,000), offset by (x) a decrease in the amortization of intangible lease liabilities ($1,873,000), resulting from (a) the impact of purchase accounting allocations in the first quarter of 2006 applicable to properties acquired during 2005 (which also resulted in a decrease in depreciation and amortization expense) and (b) acceleration of amortization in 2006 relating to prematurely-terminated leases, (y) a decrease in straight-line rents in the ordinary course ($884,000), and (z) a decrease in percentage rents ($43,000).

     Property operating expenses increased as a result of (i) an increase in snow removal costs ($932,000), (ii) an increase in real estate and other property-related taxes, related principally to reassessments of properties previously acquired and completed development and redevelopment projects ($785,000), and (iii) an increase in other operating expenses ($138,000), offset by a decrease in the provision for doubtful accounts, as a result of improved collections ($1,559,000).

     General and administrative expenses. General and administrative expenses increased primarily as a result of costs associated with the retirement of a senior executive and the initial compensation/relocation costs of his replacement ($1,535,000 in the aggregate), increased compensation costs, and the Company’s continued growth.

     Non-operating income and expense. Non-operating income and expense, net, increased primarily as a result of (i) increased interest costs from borrowings related to property acquisitions, as reduced by the impact on interest costs of proceeds from common stock sales throughout 2006 used initially to reduce outstanding borrowings under the Company’s stabilized property credit facility, partially offset by (ii) earnings from an unconsolidated joint venture acquired in November 2006.

Liquidity and Capital Resources

     The Company funds operating expenses and other short-term liquidity requirements, including debt service, tenant improvements, leasing commissions, and preferred and common dividend distributions, primarily from operating cash flows. The Company has also used its stabilized property credit facility for these purposes. The Company expects to fund long-term liquidity requirements for property acquisitions, development and/or redevelopment costs, capital improvements, and maturing debt initially with its credit facilities and construction financing, and ultimately through a combination of issuing and/or assuming additional mortgage debt, the sale of equity securities, the issuance of additional OP Units, and the sale of properties or interests therein (including joint venture arrangements).

     The Company expects to fund its short-term liquidity requirements principally from the following: (i) cash and cash equivalents, (ii) availability under its credit facilities, and (iii) mortgage financing of development projects after they are completed. There has been a recent fundamental contraction of the U.S.credit and capital markets, whereby banks and other credit providers have tightened their lending standards and severely restricted the availability of credit. Accordingly, for this and other reasons, there can be no assurance that the Company will have the availability of mortgage financing on completed development projects, additional construction financing, net proceeds from the contribution of properties to joint ventures, or proceeds from the refinancing of existing debt.

     In January 2009, the Company’s Board of Directors reduced the quarterly dividend payable in February by one-half to an annual rate of $0.45 per share, an annual saving of approximately $21 million. This decision was in response to the current state of the economy, the difficult retail environment and the constrained capital markets.

     The Company has a $300 million stabilized property credit facility with Bank of America, N.A. (as agent) and several other banks, pursuant to which the Company has pledged certain of its shopping center properties as collateral for borrowings thereunder. The facility, as amended, is expandable to $400 million, subject to certain conditions, including acceptable collateral. Originally scheduled to mature in January 2009, the facility has been extended to January 30, 2010. Borrowings outstanding under the facility aggregated $250.2 million at December 31, 2008, and such borrowings bore interest at an average rate of 2.7% per annum. Borrowings under the facility bear interest at the Company’s option at either LIBOR or the agent bank’s prime rate, plus a basis points (“bps”) spread depending upon the Company’s leverage ratio, as defined,

measured quarterly. The LIBOR spread ranges from 110 to 145 bps (the spread as of December 31, 2008 was 125 bps, which will remain in effect through March 31, 2009). The prime rate spread ranges from 0 to 50 bps (the spread as of December 31, 2008 was 0 bps, which will remain in effect through March 31, 2009). The facility also requires an unused portion fee of 15 bps. The credit facility has been used to fund acquisitions, development and redevelopment activities, capital expenditures, mortgage repayments, dividend distributions, working capital and other general corporate purposes. The facility is subject to customary financial covenants, including limits on leverage and distributions (limited to 95% of funds from operations, as defined), and other financial statement ratios. As of December 31, 2008, based on covenant measurements and collateral in place, the Company was permitted to draw up to approximately $287.7 million, of which approximately $37.5 million remained available as of that date. As of December 31, 2008, the Company was in compliance with the financial covenants and financial statement ratios required by the terms of the stabilized property credit facility.

     With respect to the Company’s $300 million stabilized property credit facility, the Company intends to enter into a similar credit facility by January 30, 2010, the extended maturity date of the existing facility. In the event the Company is unable to arrange a new facility or to further extend the existing facility on terms generally similar to the present facility, or if members of the borrowing syndicate should not continue to participate in the facility at the same or reduced levels, or if additional commitments cannot be obtained from existing members or potential additional members of such syndicate, the Company may not be able to find alternate financing sources or to find such financing sources at borrowing rates, including spreads over LIBOR or other floating-rate measures, which would be acceptable to the Company.

     The Company has a $150 million development property credit facility with KeyBank, National Association (as agent) and several other banks, pursuant to which the Company has pledged certain of its development and redevelopment projects as collateral for borrowings to be made thereunder. This facility is expandable to $250 million, subject to certain conditions, including acceptable collateral, and will expire in June 2011, subject to a one-year extension option. Borrowings outstanding under the facility aggregated $54.3 million at December 31, 2008 and bore interest at a rate of 3.4% per annum. Borrowings under the facility bear interest at the Company’s option at either LIBOR or the agent bank’s prime rate, plus a spread of 225 bps or 75 bps, respectively. The facility also requires an unused portion fee of 15 bps. As of December 31, 2008, based on covenant measurements and collateral in place, the Company was permitted to draw up to an additional $61.8 million, which will become available as approved project costs are incurred. As of December 31, 2008, the Company was in compliance with the financial covenants and financial statement ratios required by the terms of the development property credit facility, which are similar to those contained in the stabilized property credit facility. The Company plans to add additional properties to the collateral pool of this facility as their respective stages of development permit, with the intent of making a substantial portion of the facility available.

     The Company has a $77.7 million construction facility with Manufacturers and Traders Trust Company (as agent) and several other banks, pursuant to which the Company has pledged its joint venture development project in Pottsgrove, Pennsylvania as collateral for borrowings to be made thereunder. This facility will expire in September 2011. Borrowings outstanding under the facility aggregated $29.2 million at December 31, 2008 and bore interest at a rate of 3.5% per annum. Borrowings under the facility bear interest at the Company’s option at either LIBOR plus a spread of 225 bps, or the agent bank’s prime rate. As of December 31, 2008, the Company was in compliance with the financial covenants and financial statement ratios required by the terms of the construction facility.

     Mortgage loans payable at December 31, 2008 consisted of fixed-rate notes totaling $655.7 million (with a weighted average interest rate of 5.8%) and variable-rate debt totaling $357.8 million, principally advances outstanding under the Company’s variable-rate credit facilities (with a weighted average interest rate

of 3.1%). Total mortgage loans payable have an overall weighted average interest rate of 4.8% and mature at various dates through 2029. The Company had an approximately $9.0 million debt balloon payment due which was paid in January 2009 and has approximately $8.5 million of scheduled debt principal amortization payments in 2009.

     The terms of several of the Company’s mortgage loans payable require the Company to deposit certain replacement and other reserves with its lenders. Such “restricted cash” is generally available only for property-level requirements for which the reserve was established, and is not available to fund other property-level or Company-level obligations.

Contractual obligations and commercial commitments

     The following table sets forth the Company’s significant debt repayment, interest and operating lease obligations at December 31, 2008 (in thousands):

		Maturity Date
		2009				2010				2011				2012				2013				Thereafter				Total
Debt:
Mortgage loans payable (i)		$	17,517			$	18,758			$	115,353			$	40,053			$	64,634			$	452,668			$	708,983
Stabilized property credit facility			—				250,190				—				—				—				—				250,190
Development property credit facility (ii)			—				—				54,300				—				—				—				54,300
Interest payments (iii)			48,533				41,822				36,936				31,784				28,033				58,089				245,197
Operating lease obligations			935				741				704				668				659				19,404				23,111
Total		$	66,985			$	311,511			$	207,293			$	72,505			$	93,326			$	530,161			$	1,281,781

     In addition, the Company plans to spend between $85 million and $112 million during 2009 in connection with development and redevelopment activities in process as of December 31, 2008.

Net Cash Flows

Operating Activities

     Net cash flows provided by operating activities amounted to $60.3 million during 2008, compared to $53.5 million during 2007 and $40.9 million during 2006. The increase in operating cash flows during 2008, 2007 and 2006 were primarily the result of property acquisitions.

Investing Activities

     Net cash flows used in investing activities were $150.9 million in 2008, $192.4 million in 2007 and $190.1 million in 2006, and were primarily the result of the Company’s acquisition program. During 2008, the Company acquired four shopping and convenience centers, acquired land for development, expansion and/or future development and incurred expenditures for property improvements, an aggregate of $131.4 million. The Company also purchased the joint venture minority interests in four properties for $17.5 million. During 2007, the Company acquired 20 shopping and convenience centers and land for development, expansion and/or future development and incurred expenditures for property improvements, an aggregate of $187.5 million. During 2006, the Company acquired 13 shopping and convenience centers and land for development,

expansion and/or future development, and incurred expenditures for property improvements, an aggregate of $186.7 million. In addition, the Company acquired, for $1.9 million, an interest in an unconsolidated joint venture, and sold, for $1.5 million, an interest in another unconsolidated joint venture.

Financing Activities

     Net cash flows provided by financing activities were $75.5 million in 2008, $143.7 million in 2007 and $158.0 million in 2006. During 2008, the Company received net advance proceeds of $114.1 million from its revolving credit facilities, $106.7 million in net proceeds from mortgage financings, and $6.3 million in contributions from noncontrolling interests (minority interest partners), offset by the repayment of mortgage obligations of $93.3 million (including $84.8 million of mortgage balloon payments), preferred and common stock distributions of $47.9 million, the payment of financing costs of $5.1 million, distributions paid to noncontrolling interests (minority and limited partner interests) of $5.2 million, and the redemption of noncontrolling interests (a limited partner’s OP Units) of $0.1 million. During 2007, the Company received net advance proceeds of $122.0 million from the stabilized property credit facility, $53.2 million in contributions from noncontrolling interests (minority interest partners), $34.5 million in net proceeds from mortgage financings, and $3.9 million in net proceeds from public offerings, offset by preferred and common stock distributions of $47.6 million, the repayment of mortgage obligations of $16.2 million (including $7.6 million of mortgage balloon payments), the payment of financing costs of $3.2 million, and distributions paid to noncontrolling interests (minority and limited partner interests) of $2.9 million. During 2006, the Company received $207.9 million in net proceeds from public offerings and $118.9 million in net proceeds from mortgage financings, offset by a net reduction of $79.0 million in the outstanding balance of the Company’s stabilized property secured revolving credit facility, the repayment of mortgage obligations of $47.6 million, preferred and common stock distributions of $37.2 million, distributions paid to noncontrolling interests (minority and limited partner interests) of $2.8 million, and the payment of financing costs of $2.2 million.

Funds From Operations

     Funds From Operations (“FFO”) is a widely-recognized non-GAAP financial measure for REITs that the Company believes, when considered with financial statements determined in accordance with GAAP, is useful to investors in understanding financial performance and providing a relevant basis for comparison among REITs. In addition, FFO is useful to investors as it captures features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciable assets. Investors should review FFO, along with GAAP net income, when trying to understand an equity REIT’s operating performance. The Company presents FFO because the Company considers it an important supplemental measure of its operating performance and believes that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. Among other things, the Company uses FFO or an adjusted FFO-based measure (i) as a criterion to determine performance-based bonuses for members of senior management, (ii) in performance comparisons with other shopping center REITs, and (iii) to measure compliance with certain financial covenants under the terms of the Loan Agreements relating to the Company’s credit facilities.

     The Company computes FFO in accordance with the “White Paper” on FFO published by the National Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net income attributable to common shareholders (determined in accordance with GAAP), excluding gains or losses from debt restructurings and sales of properties, plus real estate-related depreciation and amortization, and after adjustments for partnerships and joint ventures (which are computed to reflect FFO on the same basis).

     FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income attributable to common shareholders or to cash flow from operating activities. FFO is

not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. Although FFO is a measure used for comparability in assessing the performance of REITs, as the NAREIT White Paper only provides guidelines for computing FFO, the computation of FFO may vary from one company to another. The following table sets forth the Company’s calculations of FFO for 2008, 2007 and 2006:

		2008				2007				2006
Net income attributable to common shareholders		$	10,498,000			$	14,092,000			$	7,458,000
Add (deduct):
Real estate depreciation and amortization			49,521,000				41,918,000				34,741,000
Noncontrolling interests:
Limited partners’ interest			477,000				633,000				393,000
Minority interests in consolidated joint ventures			2,157,000				1,415,000				1,202,000
Minority interests’ share of FFO applicable to consolidated joint ventures			(6,134,000	)			(2,139,000	)			(1,746,000	)
Equity in income of unconsolidated joint venture			(956,000	)			(634,000	)			(70,000	)
FFO from unconsolidated joint venture			1,296,000				905,000				117,000
Gain on sale of interest in unconsolidated joint venture			—				—				(141,000	)
Funds From operations		$	56,859,000			$	56,190,000			$	41,954,000
FFO per common share (assuming conversion of OP Units)		$	1.22			$	1.22			$	1.21
Weighted average number of common shares:
Shares used in determination of earnings per share			44,475,000				44,193,000				32,926,000
Additional shares assuming conversion of OP Units			2,024,000				1,985,000				1,737,000
Shares used in determination of FFO per share			46,499,000				46,178,000				34,663,000

Inflation

     Low to moderate levels of inflation during the past several years have favorably impacted the Company’s operations by stabilizing operating expenses. However, the Company’s properties have tenants whose leases include expense reimbursements and other provisions to minimize the effect of inflation. At the same time, low inflation has had the indirect effect of reducing the Company’s ability to increase tenant rents upon the signing of new leases and/or lease renewals.

Item 8. Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm			15
Consolidated Balance Sheets, December 31, 2008 and 2007			16
Consolidated Statements of Income, years ended December 31, 2008, 2007 and 2006			17
Consolidated Statements of Equity, years ended December 31, 2008, 2007 and 2006			18
Consolidated Statements of Cash Flows, years ended December 31, 2008, 2007 and 2006			19
Notes to Consolidated Financial Statements			20 - 46
Schedule Filed As Part Of This Report Schedule III – Real Estate and Accumulated Depreciation, December 31, 2008			47 - 50

All other schedules have been omitted because the required information is not present, is not present in amounts sufficient to require submission of the schedule, or is included in the consolidated financial statements or notes thereto.

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders
Cedar Shopping Centers, Inc.

We have audited the accompanying consolidated balance sheets of Cedar Shopping Centers, Inc. (the “Company”) as of December 31, 2008 and 2007, and the related consolidated statements of income, equity, and cash flows for each of the three years in the period ended December 31, 2008. Our audits also included the financial statement schedule listed in the accompanying index to the financial statements and schedule. These financial statements and schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Cedar Shopping Centers, Inc. at December 31, 2008 and 2007, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2008, in conformity with U.S. generally accepted accounting principles. Also, in our opinion the financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

As discussed in Note 2, effective January 1, 2009, the Company retrospectively adopted the presentation and disclosure requirements of FASB Statement No. 160, “Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51 (FASB Statement No. 160)”.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Cedar Shopping Centers, Inc.’s internal control over financial reporting as of December 31, 2008, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 16, 2009 (not provided herein) expressed an unqualified opinion thereon.

New York, New York
March 16, 2009
except for Note 2, as to which the date is June 8, 2009 and
except for Note 4, as to which the date is August 24, 2009

CEDAR SHOPPING CENTERS, INC.
Consolidated Balance Sheets

		December 31,
		2008				2007
Assets
Real estate:
Land		$	378,704,000			$	312,883,000
Buildings and improvements			1,400,508,000				1,280,248,000
			1,779,212,000				1,593,131,000
Less accumulated depreciation			(146,804,000	)			(103,481,000	)
Real estate, net			1,632,408,000				1,489,650,000
Real estate held for sale			4,920,000				5,360,000
Investment in unconsolidated joint venture			4,976,000				3,757,000
Cash and cash equivalents			8,231,000				23,289,000
Restricted cash			14,004,000				14,857,000
Rents and other receivables, net			5,818,000				7,640,000
Straight-line rents receivable			14,297,000				11,424,000
Other assets			9,403,000				9,588,000
Deferred charges, net			33,071,000				29,419,000
Total assets		$	1,727,128,000			$	1,594,984,000
Liabilities and equity
Mortgage loans payable		$	708,983,000			$	661,074,000
Secured revolving credit facilities			304,490,000				190,440,000
Accounts payable and accrued expenses			46,548,000				26,068,000
Unamortized intangible lease liabilities			61,384,000				71,157,000
Total liabilities			1,121,405,000				948,739,000
Limited partners’ interest in Operating Partnership			14,271,000				15,578,000
Commitments and contingencies
Equity:
Cedar Shopping Centers, Inc. shareholders’ equity:
Preferred stock ($.01 par value, $25.00 per share liquidation value, 12,500,000 shares authorized, 3,550,000 shares issued and outstanding)			88,750,000				88,750,000
Common stock ($.06 par value, 150,000,000 shares authorized 44,468,000 and 44,238,000 shares, respectively, issued and outstanding)			2,668,000				2,654,000
Treasury stock (713,000 and 616,000 shares, respectively, at cost)			(9,175,000	)			(8,192,000	)
Additional paid-in capital			576,083,000				572,392,000
Cumulative distributions in excess of net income			(127,043,000	)			(97,514,000	)
Accumulated other comprehensive loss (income)			(7,256,000	)			64,000
Total Cedar Shopping Centers, Inc. shareholders’ equity			524,027,000				558,154,000
Noncontrolling interests:
Minority interests in consolidated joint ventures			58,150,000				62,402,000
Limited partners’ interest in Operating Partnership			9,275,000				10,111,000
Total noncontrolling interests			67,425,000				72,513,000
Total equity			591,452,000				630,667,000
Total liabilities and equity		$	1,727,128,000			$	1,594,984,000

See accompanying notes to consolidated financial statements.

CEDAR SHOPPING CENTERS, INC.
Consolidated Statements of Income

		Years ended December 31,
		2008				2007				2006
Revenues:
Rents		$	140,154,000			$	123,209,000			$	102,744,000
Expense recoveries			32,762,000				29,135,000				22,605,000
Other			1,213,000				1,775,000				833,000
Total revenues			174,129,000				154,119,000				126,182,000
Expenses:
Operating, maintenance and management			29,815,000				25,030,000				22,355,000
Real estate and other property-related taxes			19,577,000				15,992,000				12,782,000
General and administrative			9,441,000				9,041,000				6,086,000
Depreciation and amortization			49,745,000				42,104,000				34,827,000
Total expenses			108,578,000				92,167,000				76,050,000
Operating income			65,551,000				61,952,000				50,132,000
Non-operating income and expense:
Interest expense, including amortization of deferred financing costs			(45,957,000	)			(39,529,000	)			(34,225,000	)
Interest income			284,000				788,000				641,000
Equity in income of unconsolidated joint venture			956,000				634,000				70,000
Gain on sale of interest in unconsolidated joint venture			—				—				141,000
Total non-operating income and expense			(44,717,000	)			(38,107,000	)			(33,373,000	)
Income before discontinued operations			20,834,000				23,845,000				16,759,000
Income from discontinued operations			175,000				172,000				171,000
Net income			21,009,000				24,017,000				16,930,000
Less, net (income) attributable to noncontrolling interests:
Minority interests in consolidated joint ventures			(2,157,000	)			(1,415,000	)			(1,202,000	)
Limited partners’ interest in Operating Partnership			(477,000	)			(633,000	)			(393,000	)
Total net (income) attributable to noncontrolling interests			(2,634,000	)			(2,048,000	)			(1,595,000	)
Net income attributable to Cedar Shopping Centers, Inc.			18,375,000				21,969,000				15,335,000
Preferred distribution requirements			(7,877,000	)			(7,877,000	)			(7,877,000	)
Net income attributable to common shareholders		$	10,498,000			$	14,092,000			$	7,458,000
Per common share (basic and diluted) attributable to common shareholders:
Continuing operations		$	0.24			$	0.32			$	0.22
Discontinued operations			—				—				0.01
		$	0.24			$	0.32			$	0.23
Amounts attributable to Cedar Shopping Centers, Inc. common shareholders, net of limited partners’ interest:
Income from continuing operations		$	10,331,000			$	13,927,000			$	7,296,000
Income from discontinued operations			167,000				165,000				162,000
Net income		$	10,498,000			$	14,092,000			$	7,458,000
Dividends to common shareholders		$	40,027,000			$	39,775,000			$	29,333,000
Per common share		$	0.90			$	0.90			$	0.90
Weighted average number of common shares outstanding			44,475,000				44,193,000				32,926,000

See accompanying notes to consolidated financial statements.

CEDAR SHOPPING CENTERS, INC.
Consolidated Statements of Equity
Years ended December 31, 2008, 2007 and 2006

						Cedar Shopping Centers, Inc. Shareholders																																								Noncontrolling Interests
																																																						Limited
						Preferred stock								Common stock																Cumulative				Accumulated				Unamortized												Minority				partners’
										$25.00												Treasury				Additional				distributions				other				deferred												interests in				interest in
		Total								Liquidation								$0.06				stock,				paid-in				in excess of				comprehensive				compensation												consolidated				Operating
		equity				Shares				value				Shares				Par value				at cost				capital				net income				income (loss)				plans				Total				Total				joint ventures				Partnership
Balance, December 31, 2005		$	407,400,000				3,550,000			$	88,750,000				29,618,000			$	1,777,000			$	(5,416,000	)		$	357,000,000			$	(50,847,000	)		$	138,000			$	(1,158,000	)		$	390,244,000			$	17,156,000			$	12,339,000			$	4,817,000
Adoption of SFAS No. 123R																											(1,158,000	)											1,158,000				—
Net income			16,663,000																												15,335,000												15,335,000				1,328,000				1,202,000				126,000
Unrealized gain on change in fair value of cash flow hedges			26,000																																8,000								8,000				18,000				19,000				(1,000	)
Total other comprehensive income			16,689,000																																								15,343,000				1,346,000				1,221,000				125,000
Deferred compensation activity, net			580,000												110,000				6,000				(962,000	)			1,536,000																580,000
Net proceeds from sales of common stock			207,928,000												14,045,000				843,000								207,085,000																207,928,000
Preferred distribution requirements			(7,877,000	)																											(7,877,000	)											(7,877,000	)
Distributions to common shareholders (74.2% return of capital)/noncontrolling interests			(31,074,000	)																											(29,333,000	)											(29,333,000	)			(1,741,000	)			(1,268,000	)			(473,000	)
Deconsolidation of noncontrolling interests’ subsidiary			(3,160,000	)																																											(3,160,000	)			(3,160,000	)
Additional noncontrolling interests’ shares			5,889,000																																												5,889,000								5,889,000
Adjustment of Mezz OP Units to redemption value			(2,587,000	)																											(2,587,000	)											(2,587,000	)
Reallocation adjustment of noncontrolling interests			(350,000	)																							174,000																174,000				(524,000	)							(524,000	)
Balance, December 31, 2006			593,438,000				3,550,000				88,750,000				43,773,000				2,626,000				(6,378,000	)			564,637,000				(75,309,000	)			146,000				—				574,472,000				18,966,000				9,132,000				9,834,000
Net income			23,624,000																												21,969,000												21,969,000				1,655,000				1,415,000				240,000
Unrealized loss on change in fair value of cash flow hedges			(284,000	)																															(82,000	)							(82,000	)			(202,000	)			(200,000	)			(2,000	)
Total other comprehensive income			23,340,000																																								21,887,000				1,453,000				1,215,000				238,000
Deferred compensation activity, net			2,146,000												186,000				11,000				(1,814,000	)			3,949,000																2,146,000
Net proceeds from sale of common stock			4,132,000												275,000				17,000								4,115,000																4,132,000
Conversion of OP Units into common stock			—												4,000				—								45,000																45,000				(45,000	)							(45,000	)
Preferred distribution requirements			(7,877,000	)																											(7,877,000	)											(7,877,000	)
Distributions to common shareholders (33.1% return of capital)/ noncontrolling interests			(41,519,000	)																											(39,775,000	)											(39,775,000	)			(1,744,000	)			(1,063,000	)			(681,000	)
Additional noncontrolling interests’ shares			53,688,000																																												53,688,000				53,118,000				570,000
Adjustment of Mezz OP Units to redemption value			3,478,000																												3,478,000												3,478,000
Reallocation adjustment of noncontrolling interests			(159,000	)																							(354,000	)															(354,000	)			195,000								195,000
Balance, December 31, 2007			630,667,000				3,550,000				88,750,000				44,238,000				2,654,000				(8,192,000	)			572,392,000				(97,514,000	)			64,000				—				558,154,000				72,513,000				62,402,000				10,111,000
Net income			20,719,000																												18,375,000												18,375,000				2,344,000				2,157,000				187,000
Unrealized loss on change in fair value of cash flow hedges			(7,785,000	)																															(7,320,000	)							(7,320,000	)			(465,000	)			(336,000	)			(129,000	)
Total other comprehensive income			12,934,000																																								11,055,000				1,879,000				1,821,000				58,000
Deferred compensation activity, net			2,372,000												225,000				13,000				(983,000	)			3,342,000																2,372,000
Conversion of OP Units into common stock			—												5,000				1,000								67,000																68,000				(68,000	)							(68,000	)
Preferred distribution requirements			(7,877,000	)																											(7,877,000	)											(7,877,000	)
Distributions to common shareholders (45.2% return of capital)/ noncontrolling interests			(44,171,000	)																											(40,027,000	)											(40,027,000	)			(4,144,000	)			(3,427,000	)			(717,000	)
Additional noncontrolling interests’ shares			6,364,000																																												6,364,000				6,364,000
Purchase/redemption of noncontrolling interests’ shares			(9,010,000	)																																											(9,010,000	)			(9,010,000	)
Reallocation adjustment of noncontrolling interests			173,000																								282,000																282,000				(109,000	)							(109,000	)
Balance, December 31, 2008		$	591,452,000				3,550,000			$	88,750,000				44,468,000			$	2,668,000			$	(9,175,000	)		$	576,083,000			$	(127,043,000	)		$	(7,256,000	)		$	—			$	524,027,000			$	67,425,000			$	58,150,000			$	9,275,000