Feldman Mall Properties, Inc. Reports Fourth Quarter and Full Year 2007 Financial...

Feldman Mall Properties, Inc. Reports Fourth Quarter and Full Year 2007
Financial Results
Conference Call to Discuss Results Will Be Held at 3pm EDT, April 15, 2008
Dial in: (800) 257-7087 or go to www.feldmanmall.com
GREAT NECK, N.Y., April 14 /PRNewswire-FirstCall/ --

RELEASE HIGHLIGHTS

* 4th quarter FFO was $(0.28) per diluted share as compared to $0.18
per diluted share in the 4th quarter of 2006
* Full year 2007 FFO was $(0.15) per diluted share as compared to
$0.80 per diluted share for the year ended 2006
* Update on strategic alternatives
* Postponement of new acquisitions
* Redevelopment update
* Enters into accounting and management agreement with Brandywine
Financial
* Agrees to appoint two new board members
* Files 2007 Form 10-K

Financial Results
Feldman Mall Properties, Inc. (NYSE: FMP) today reported Funds From
Operations ("FFO") totaling $(4.0) million, or $(0.28) per diluted share, for
the fourth quarter ended December 31, 2007 as compared to $2.7 million, or
$0.18 per diluted share for the three months ended December 31, 2006. The
Company's net loss for the three months ended December 31, 2007 was
$7.8 million, or $(0.60) per share, as compared to a net loss of $1.0 million,
or $(0.08) per diluted share for the fourth quarter of 2006. The Company had
14.4 and 14.6 million weighted average common shares and operating partnership
units outstanding during the fourth quarters ended December 31, 2007 and 2006,
respectively.
For the year ended December 31, 2007 FFO totaled $(2.1) million, or
$(0.15) per diluted share, as compared to $11.7 million, or $0.80 per diluted
share for the year ended December 31, 2006. The Company's net loss for the
year ended December 31, 2007 was $17.1 million, or $(1.33) per share, as
compared to a net income of $20.1 million, or $1.54 per diluted share for the
year ended December 31, 2006. The Company had 14.5 and 14.7 million weighted
average common shares and operating partnership units outstanding during the
years ended December 31, 2007 and 2006, respectively.
The following items represent variances in income and expense that
impacted the Company's FFO results for the periods indicated compared to the
prior year periods (in millions):

Unaudited
December 31, 2007
Three Twelve
Months Months
Property Level Net Operating Income ("NOI"):
Rental revenue $(0.6) $0.1
Higher operating expenses (1.0) (3.2)
Same store NOI variance (1) (1.6) (3.1)

G&A Expense:
Executive severance costs (1.3) (1.9)
Strategic alternative costs (non-recurring) (0.2) (0.9)
Other G&A expense (2) (1.1) (5.1)
Total G&A variance (2.6) (7.9)

Effect of Sale to JVs: Colonie & Foothills:
Net operating income - (7.8)
Decrease in interest expense - 3.5
Increase in management, leasing and development fee
income 0.1 2.5
Total effect of sale to joint ventures 0.1 (1.8)

Other:
Three months Golden Triangle Mall NOI
(acquired 4/06) - 0.7
Change in fair value of Harrisburg earnout
liability (3) (0.2) 2.6
Increase in interest expense (0.7) (1.8)
Other income and expense, net (1.2) (1.7)
Preferred stock dividends (0.5) (0.9)

Decrease in FFO allocated to common stockholders $(6.7) $(13.9)

(1) The decrease in NOI for properties that were wholly-owned during
both the three months ended December 31, 2007 and 2006 periods was
due to (i) lower revenue ($0.6 million) primarily due to certain
tenants with expiring reimbursement provisions renewing their leases
that exclude such reimbursement provisions, and (ii) higher
operating expenses ($1.0 million) primarily due to higher salary,
wages, provision for bad debts and professional fees. For the year
ended December 31, 2007, the NOI decreased $3.1 million primarily
due to higher operating expenses related to increased salaries,
provision for bad debts and professional fees.
(2) Other expenses for the three months ended December 31, 2007
increased $1.1 million due to (i) higher professional fees,
SOX-related fees, and third-party construction management expenses
($0.8 million), and (ii) higher personnel costs ($0.3 million). For
the year ended December 31, 2007 other expenses increased
$5.1 million due to (i) higher personnel fees, SOX-related fees and
third-party construction management expenses ($3.2 million), and
(ii) higher personnel costs, including a portion of our employee
severance costs associated with closing our Phoenix office
($1.0 million) and (iii) other costs and costs associated with
special construction and lease audits ($0.9 million).
(3) The 2007 periods include non-cash reductions in the Company's
earnout obligation due to affiliates, included in miscellaneous
income in the first quarter in the amount of $2.3 million and in the
third quarter in the amount of $1.6 million.

OTHER

Consideration of Strategic Alternatives
On June 5, 2007, we announced that we retained Friedman, Billings, Ramsey
& Co., Inc. to assist us in exploring strategic alternatives in order to
enhance shareholder value. These strategic alternatives included an
assessment of a variety of potential capital raising and disposition
transactions. These efforts, which required a substantial amount of
management time and attention during 2007, did not lead to the completion of
any significant transactions. In part, the deterioration of U.S. credit and
capital markets in the latter part of 2007, which coincided with our
exploration of strategic alternatives, played a role in this outcome. In
addition, the hoped for recovery in these markets has not yet materialized and
a highly challenging environment remains in which to execute any of the
transactions of the type that we were exploring during 2007.
Nevertheless, our board of directors remains committed to exploring
options to enhance the value of the investments held by our shareholders.
While we focus on enhancing operating efficiencies, improving the performance
of our properties through expense reductions and leasing activity, and
lowering our general and administrative costs, we also will be diligently
pursuing a range of capital raising options, which include new borrowings,
joint venture arrangements and selected property dispositions. In addition,
we also will consider other proposals, including larger portfolio assets sales
and transactions involving the sale or merger of our company in its entirety.
However, given the current credit environment, there can be no assurances that
any such transactions will be completed.
Postponement of Acquisitions and Redevelopment Update
In addition to the challenging credit environment, declining home prices
in many regions have also impacted consumer spending which, in turn, has
caused a slow start to the 2008 retailing season. Some retailers have
announced a reduction in their growth plans for 2008 and 2009, while others
have announced store closures or delays in new store openings. These factors
are expected to impact the pace of our leasing activity for the balance of
2008. As a result of these factors, our ability to acquire new properties or
to commence major redevelopment efforts on our existing properties will
require that we first see improving economic conditions and can access
required financing. To this end, the company will pursue joint venture
financing and other forms of capital infusions.
Outsourcing of Accounting and Management Functions
As part of our efforts aimed at expense reduction, on April 1, 2008, we
entered into an agreement with Brandywine Financial Services Corporation, a
member of The Brandywine Companies, to provide us various accounting and
management services relating to our properties, such as supervision of our
operations, property maintenance and development, lease administration,
bookkeeping, accounting, financial statement preparation and coordination of
our compliance with Sarbanes-Oxley Act of 2002. The Brandywine Companies, of
which Bruce E. Moore, one of our directors, is chairman and chief executive
officer, have offices in Chadds Ford, Pennsylvania, Clearwater, Florida and
Orlando, Florida. Since their origin in the early 1970's, The Brandywine
Companies have developed expertise in all aspects of ownership and management
of commercial and residential real estate. Historically, Mr. Moore managed,
and Brandywine performed similar services for, a New York Stock Exchange
traded company. In addition, in connection with a joint venture with a New
York Stock Exchange retail REIT, The Brandywine Companies provide property
management and accounting services.
As compensation to Brandywine for the services under this agreement, we
agreed to pay Brandywine a fee equal to (a) 1.50% of our gross revenue
generated by our properties, plus (b) $60,000 per month. We have also agreed
to reimburse Brandywine for travel and other out-of-pocket expenses incurred
in connection with such services. This agreement has an initial term through
June 30, 2009 and can be renewed on a year-to-year basis, but is subject to
termination by the parties at any time starting June 30, 2008 upon no less
than 90 days prior to written notice. As a result of this transaction, Bruce
E. Moore will no longer be deemed an independent member of our board of
directors. In addition, we believe that this agreement, along with the
closing of our Phoenix office, will significantly lower our overhead costs and
provide us with a more flexible operating structure. In connection with this
agreement, Brandywine was paid a set-up fee of $35,000 per entity totaling
$350,000.
We believe that our agreement with Brandywine will allow us to continue
the progress on improving both our property and accounting controls as well as
providing similar progress at the corporate and property operations level.
New Board Members
The Company expects to welcome two additional board members who will
provide additional insight and business counsel.
In connection with the Series A Preferred Stock transaction with Inland
American, Mr. Thomas H. McAuley is expected to join our board of directors.
Mr. McAuley, age 61, has been a Director of Inland Real Estate Corp. since
2004. Mr. McAuley is also currently the president of Inland Capital Markets
Group, Inc., which is an advisor on real estate investments, including public
REITs, to various entities within The Inland Real Estate Group of Companies,
Inc.
In addition, we do not expect to comply with the financial covenant set
forth under the terms of the Series A Preferred Stock as of March 31, 2008
and, therefore, we expect that the holders of the Series A Preferred Stock
will have the right to appoint an additional member to our board of directors.
As a result, Inland American has notified us that it intends to elect one
additional member to our board of directors. Therefore, we have been in
discussions with Inland American relating to this development and have agreed
with Inland American to appoint Mr. Thomas McGuinness to our board of
directors. Mr. McGuinness, age 51, is president and chief executive officer
of Inland American Retail Management LLC.
Stock Repurchase
On November 12, 2007, we announced that our board of directors authorized
the repurchase of up to 3,000,000 shares of our common stock. However, based
on the current market conditions, our board has determined to deploy available
capital to completing in place redevelopment and tenant improvement projects
and we do not plan on using our current liquidity to repurchase any shares at
this time.
Management's Internal Control Assessment
As of December 31, 2007, management has determined that our controls over
financial reporting contains material weaknesses. Specifically, we have
determined that our company lacked sufficient personnel to ensure that the
financial statements were prepared on a timely basis. As a result, we were
unable to adequately complete necessary procedures to prepare our financial
statements on a timely basis in accordance with regulatory guidelines. The
lack of sufficient personnel caused delays in the review and approval of
supporting documents and journal entries necessary to prepare our financial
statements on a timely basis in accordance with regulatory guidelines. In
addition, we did not maintain adequate segregation of duties related to job
responsibilities for initiating, authorizing and recording of transactions.
Due to these material weaknesses, there is a reasonable possibility that a
material misstatement in the financial statements would not be prevented or
detected on a timely basis.
Files 2007 Form 10-K
Earlier today, the Company filed its Form 10-K for the year ended
December 31, 2007.
CONFERENCE CALL
The Company's executive management team will host a conference call and
audio web cast on April 15, 2008 at 3:00 PM EDT to discuss the financial
results. The conference call may be accessed by dialing (800) 257-7087. No
pass code is required. The live conference will be simultaneously broadcast
in a listen-only mode on the Company's website at www.feldmanmall.com.
A replay of the call will be available through April 22, 2008 by dialing
(800) 405-2236 using pass code 11112814, or individuals may access the replay
via the Company's web site.
NON-GAAP FINANCIAL MEASURES
Feldman Mall Properties, Inc., consistent with real estate industry and
investment community preferences, uses FFO as a supplemental measure of
operating performance. The National Association of Real Estate Investment
Trusts (NAREIT) defines FFO as net income (loss) (computed in accordance with
Generally Accepted Accounting Principles (GAAP)), excluding gains (or losses)
from cumulative effects of accounting changes, extraordinary items and sales
of depreciable properties, plus real estate related depreciation and
amortization and after adjustments for unconsolidated partnerships and joint
ventures.
The Company considers FFO a supplemental measure for equity REITs and a
complement to GAAP measures because it facilitates an understanding of the
operating performance of the Company's properties. FFO does not give effect
to real estate depreciation and amortization since these amounts are computed
to allocate the cost of a property over its useful life. Since values for
well-maintained real estate assets have historically increased or decreased
based upon prevailing market conditions, the Company believes that FFO
provides investors with a clearer view of the Company's operating performance.
In order to provide a better understanding of the relationship with FFO
and GAAP net income, a reconciliation of FFO to GAAP net income has been
provided on page 10 of this release. FFO does not represent cash flow from
operating activities in accordance with GAAP, should not be considered as an
alternative to GAAP net income and is not necessarily indicative of cash
available to fund cash needs.
During the April 15, 2008 conference call, the Company may discuss
non-GAAP financial measures as defined by SEC Regulation G. In addition, the
Company has used a non-GAAP financial measure and the comparable GAAP
financial measure (net income/loss) can be found on pages 8 and 10 of this
release.
*Financial Tables Attached
About Feldman Mall Properties
Feldman Mall Properties, Inc. acquires, renovates and repositions enclosed
regional shopping malls. Feldman Mall Properties Inc.'s investment strategy
is to opportunistically acquire underperforming malls and transform them into
physically attractive and profitable Class A malls or near Class A through
comprehensive renovation and re-tenanting efforts aimed at increasing shopper
traffic and tenant sales.
The Company's portfolio, including non-owned anchor tenants, consists of
seven regional malls aggregating approximately 7.0 million square feet. For
more information on Feldman Mall Properties Inc., visit the Company's website
at www.feldmanmall.com.
To receive the Company's latest news release and other corporate
documents, please contact the Company at (516) 684-1239. All releases and
supplemental data can also be downloaded directly from the Feldman Mall
Properties website at: www.feldmanmall.com.
Forward-looking Information
This press release contains forward-looking statements that involve risks
and uncertainties regarding various matters, including, without limitation,
the success of our business strategy, including our acquisition, renovation
and repositioning plans; our ability to close pending acquisitions and the
timing of those acquisitions; our ability to obtain required financing; our
understanding of our competition; market trends; our ability to implement our
repositioning plans on time and within our budgets; projected capital and
renovation expenditures; demand for shop space and the success of our lease-up
plans; availability and creditworthiness of current and prospective tenants;
and lease rates and terms. The forward-looking statements are based on our
assumptions and current expectations of future performance. These assumptions
and expectations may be inaccurate or may change as a result of many possible
events or factors, not all of which are known to us. If there is any
inaccuracy or change, actual results may vary materially from our
forward-looking statements.

FELDMAN MALL PROPERTIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)

December 31, December 31,
2007 2006
ASSETS:
Investments in real estate, net $342,897 $318,440
Investment in unconsolidated real estate
partnerships 43,683 32,833
Cash and cash equivalents 27,976 13,036
Restricted cash 20,395 8,159
Rents, deferred rents and other receivables, net 5,545 5,718
Acquired below-market ground lease, net 7,538 7,674
Acquired lease rights, net 7,281 9,262
Acquired in-place lease values, net 6,437 10,049
Deferred charges, net 3,394 3,284
Other assets, net 4,048 5,396
Total Assets $469,194 $413,851

LIABILITIES AND STOCKHOLDERS' EQUITY:
Mortgage loans payable $232,878 $211,451
Junior subordinated debt obligations 29,380 29,380
Secured line of credit 17,500 -
Due to affiliates - 3,891
Accounts payable, accrued expenses and other
liabilities 27,211 25,832
Dividends and distributions payable 568 3,315
Acquired lease obligations, net 5,136 6,823
Deferred gain on partial sale of real estate 3,515 3,515
Negative carrying value of investment in
unconsolidated partnership 4,450 4,450
Total liabilities 320,638 288,657
Minority interest 9,677 11,649
Commitments and contingencies
Stockholders' Equity
Series A 6.85% Cumulative Convertible Preferred
Stock; 50,000,000 shares authorized; 2,000,000
shares issued and outstanding at December 31,
2007; $25.00 liquidation preference 49,580 -
Common stock ($0.01 par value, 200,000,000 shares
authorized, 13,018,831 and 13,155,062 issued and
outstanding at December 31, 2007 and December 31,
2006, respectively) 130 132
Additional paid-in capital 120,542 120,163
Distributions in excess of earnings (27,712) (7,637)
Accumulated other comprehensive (loss) income (3,661) 887
Total stockholders' equity 138,879 113,545
Total Liabilities and Stockholders' Equity $469,194 $413,851

FELDMAN MALL PROPERTIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)

Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
(Unaudited)
Revenue:
Rental $8,521 $8,984 $31,815 $41,104
Tenant reimbursements 3,148 4,172 13,741 19,867
Management, leasing and
development services 942 870 3,734 1,310
Interest and other
income 658 723 6,048 3,024
Total revenue 13,269 14,749 55,338 65,305

Expenses:
Rental property
operating and
maintenance 5,873 4,766 19,261 21,014
Real estate taxes 1,361 1,414 5,918 7,645
Interest (including
amortization of
deferred financing
costs) 4,008 3,252 14,762 16,435
Loss from early
extinguishment of debt - - 379 357
Depreciation and
amortization 3,816 3,555 14,498 17,394
General and
administrative 5,525 3,003 16,518 8,657
Total expenses 20,583 15,990 71,336 71,502
Equity in income
(loss) of
unconsolidated real
estate partnerships (737) 104 (1,900) (550)
Gain on partial sale
of real estate - - - 29,397
(Loss) income before
minority interest (8,051) (1,137) (17,898) 22,650
Minority interest 732 111 1,651 (2,469)
Net (loss) income (7,319) (1,026) (16,247) 20,181
Less preferred stock
dividends, net of
minority interest (512) - (903) -
Net income (loss)
available to common
shareholders' basic $(7,831) $(1,026) $(17,150) $20,181
Basic (loss)
earnings per share $(0.60) $(0.08) $(1.33) $1.58
Diluted (loss)
earnings per share $(0.60) $(0.08) $(1.33) $1.54

Funds From Operations
(FFO) Calculation -
unaudited:
Net (loss) income
available to common
shareholders $(7,831) $(1,026) $(17,150) $20,181
Add:
Depreciation and
amortization 3,815 3,555 14,498 17,394
Joint venture FFO
adjustment 826 337 2,663 1,377
Minority interest (732) (111) (1,651) 2,469

Less:
Gain on partial sale
of real estate - - - (29,397)

Depreciation of non-real
estate assets (127) (78) (504) (280)

FFO, diluted $(4,049) $2,677 $(2,144) $11,744

FFO per share $(0.28) $0.18 $(0.15) $0.80

Ownership interests:
Weighted average
REIT common shares
for basic net income
per share 12,860 12,821 12,863 12,808
Weighted average common
stock equivalents and
partnership units 1,573 1,779 1,612 1,858
Weighted average shares
and units outstanding 14,433 14,600 14,475 14,666

Stages of Project Redevelopment -- Unaudited
We believe that a typical mall redevelopment project cycles through a five
stage process. Stage one involves acquisition and planning. In this stage,
if a mall is underperforming, we would expect its net operating income
generally to be declining as new leasing and development opportunities are
identified. Stage two involves preliminary redevelopment, which encompasses
final financial analysis, architectural and engineering input, and the
estimate of project and capital needs. During this stage, we expect further
declines in net operating income as some existing tenants are
relocated/terminated or converted to percentage rent leases. Stage three is
the commencement of construction activity, primary leasing activity, which may
include junior anchors and national tenants, and the completion of required
financing. During this stage, we anticipate that net operating income will
usually begin to stabilize. Stage four is the completion of development and
delivery of space to junior and national tenants and the commencement of the
leasing of the remainder of shop tenant space. During this stage, we
anticipate net operating income will begin to increase. In the final stage,
the renovation is completed and the project reaches the objective of 92%
overall occupancy.

Our properties are in various stages of the redevelopment process as
follows:

Stages of Development

Stage Property

1 Tallahassee Mall and Golden Triangle Mall

2 Northgate Mall

3 Stratford Square Mall

4 Colonie Center and Harrisburg Mall

5 Foothills Mall

FELDMAN MALL PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL PROPERTY LEVEL NET OPERATING INCOME INFORMATION
UNAUDITED

Vacant
Three Months Ended Twelve Months Ended Shop Space
December 31, December 31, December 31,
2007 2006 2007 2006 2007
Wholly-owned (Unaudited) (Unaudited)
Cash NOI (1)
Foothills
Mall (2) $- $- $- $4,107 22,793
Colonie
Center (3) - - - 4,102 78,355
Stratford
Square Mall 1,546 1,808 6,548 6,433 123,802
Northgate Mall 1,004 1,990 6,513 7,887 99,540
Tallahassee
Mall 1,402 1,616 4,955 6,008 47,246
Golden Triangle
Mall (4) 832 1,030 2,742 2,357 54,600
Total Wholly-
Owned Cash
NOI $4,784 $6,444 $20,758 $30,894 426,336

(1) Wholly-owned cash NOI excludes management fee expense and recurring
capital improvements.
(2) Foothills Mall was a wholly-owned property through June 2006.
(3) Colonie Center was a wholly-owned property through September 2006.
(4) GTM was purchased April 2006.
(5) Primarily related to straight-line rents and capitalized costs.
(6) The Company measures the net operating income for its properties.
The Company believes that net operating income is commonly used in
the real estate industry to measure the operating performance of a
stabilized property. In addition, in a capitalization rate
analysis, which is one of the valuation methodologies that is
commonly deployed in the real estate industry to measure the value
of a stabilized property, value is estimated by multiplying the
annual net operating income of that property over a specific period
by a selected capitalization rate. Net operating income is a
supplemental measure of performance that does not give effect to
real estate depreciation and amortization nor to any general and
administrative expenses of the Company. In order to provide a
better understanding of the relationship with net operating income
and GAAP net income, reconciliation is provided below. Net
operating income does not represent cash flow from operating
activities in accordance with GAAP, and should not be considered as
an alternative to GAAP net income.

Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
(Unaudited) (Unaudited)
(Loss) income before
minority interest $(8,051) $(1,137) $(17,898) $22,650

Add:
Equity in loss (income)
of unconsolidated real
estate partnerships 737 (104) 1,900 550
Interest (including
amortization of
deferred financing
costs) 4,008 3,252 14,762 16,435
Loss from early
extinguishment of debt - - 379 357
Depreciation and
amortization 3,816 3,555 14,498 17,394
General and
administrative 5,525 3,003 16,518 8,657
Less:
Gain on partial sale
of real estate - - - 29,397
Management, leasing
and development services 942 870 3,734 1,310
Interest and other
income 658 728 6,048 3,024

4,435 6,971 20,377 32,312

GAAP Net Operating Income
("NOI") (5)

GAAP NOI Adjustments 349 (527) 381 (1,418)

Cash NOI $4,784 $6,444 $20,758 $30,894

FELDMAN MALL PROPERTIES, INC.
OPERATING STATISTICS
UNAUDITED
December 31, 2007

Property Total Rentable Annualized
(Ownership Square Square Mall Base
Interest) Feet Feet Occupancy Rent

Stratford Square (100%) 1,300,000 629,000 95.69% $6,539,870
Tallahassee Mall (100%) 966,000 966,000 92.93 7,170,344
Northgate Mall (100%) 1,100,000 577,000 95.07 7,214,921
Golden Triangle Mall (100%) 765,000 288,000 98.77 2,996,265
Foothills Mall (30.6%) 711,000 502,000 99.7 7,826,820
Colonie Center Mall (25%) 1,200,000 668,000 91.57 7,187,109
Harrisburg Mall (25%) 922,000 922,000 86.38 6,014,020
Total/Weighted Avg. 6,964,000 4,552,000 94.30% $44,949,349

Shop
Shop Tenant
Property Shop Tenants Base Rent
(Ownership Tenant Percentage Per Leased
Interest) Square Feet Leased (A) Sq. Ft.

Stratford Square (100%) 384,000 67.76% $25.38
Tallahassee Mall (100%) 204,000 76.84 24.27
Northgate Mall (100%) 315,000 68.4 25.07
Golden Triangle Mall (100%) 171,000 68.07 20.97
Foothills Mall (30.6%) 230,000 90.09 20.32
Colonie Center Mall (25%) 336,000 76.68 26.35
Harrisburg Mall (25%) 270,000 59.97 25.62
Total/Weighted Avg. 1,910,000 72.54% $24.00

(A) - Excludes temporary tenants

Number % of
Lease of Expiring Total Expiring
Expiration Expiring Rentable Sq. Ft. Base
Year Leases Area Expiring Rent

2008 78 342,539 9.85% $334,914
2009 65 180,437 5.19 302,694
2010 70 182,839 5.26 357,371
2011 65 261,647 7.52 433,833
2012 49 309,351 8.89 332,033
2013 37 331,602 9.53 345,099
2014 34 305,197 8.77 367,126
2015 21 83,551 2.4 139,836
2016 and thereafter 72 1,482,028 42.59 1,132,892
Portfolio Total 491 3,479,191 100.00% $3,745,798

Expiring
% of Base
Lease Annualized Total Rent
Expiration Base Base Per
Year Rent Rent Sq. Ft.
2008 $4,018,933 8.9% $11.73
2009 3,632,305 8.1 20.13
2010 4,288,409 9.5 23.45
2011 5,206,018 11.6 19.9
2012 3,984,367 8.9 12.88
2013 4,141,129 9.2 12.49
2014 4,405,513 9.8 14.43
2015 1,678,042 3.7 20.08
2016 and thereafter 13,594,633 30.2 9.17
Portfolio Total $44,949,349 100% $12.92

Sales Per Square Foot
Trailing Twelve Months Ending
12/31/2007 9/30/2007 6/30/2007 3/31/2007 12/31/2006
Stratford
Square Mall $285.38 $284.71 $286.93 288.77 284.51
Tallahassee
Mall 304.69 315.13 325.00 327.45 320.32
Northgate
Mall 313.01 323.48 317.56 320.38 308.42
Golden Triangle
Mall 290.35 292.96 293.02 295.70 283.95
Foothills
Mall 301.56 302.79 308.47 310.35 305.77
Colonie Center
Mall 322.77 305.31 303.43 303.33 308.02
Harrisburg
Mall 275.28 269.73 270.44 269.92 266.61
Total/Weighted
Average $299.01 $299.16 $300.69 $302.27 $296.80

Shop Occupancy with Temporary Tenants
Trailing Twelve Months Ending
12/31/2007 9/30/2007 6/30/2007 3/31/2007 12/31/2006
Stratford
Square Mall 85.42% 87.44% 82.74% 83.19% 82.28%
Tallahassee
Mall 90.63 85.45 85.98 86.61 88.00
Northgate
Mall 87.84 85.50 84.26 84.26 90.18
Golden Triangle
Mall 94.61 87.90 91.76 95.26 95.63
Foothills
Mall 99.28 93.89 91.80 92.71 100.00
Colonie Center
Mall 89.74 87.90 87.10 87.18 89.19
Harrisburg
Mall 77.43 77.88 77.03 80.72 75.15
Total/Weighted
Average 89.28% 85.12% 84.38% 87.13% 88.63%

SOURCE Feldman Mall Properties, Inc.

Thomas E. Wirth, President & Chief Financial Officer of Feldman Mall
Properties, Inc., +1-516-684-1239; or Scott Eckstein of Financial Relations
Board, +1-212-827-3766, seckstein@frbir.com, for Feldman Mall Properties,
Inc.