| (Mark One) |   |                                                                            |
|------------|--------|--------------------------------------------------------------------------------------|
|       |   |                                                                       |
| x          |   | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|  ̈ |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------|------------------------------------------------------------------------------------------|

| State of Maryland                                             |   | 52-2258674                          |
|---------------------------------------------------------------|--------|-------------------------------------|
|                                                          |   |                                |
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification No.) |

| 2401 Fountain View, Suite 510Houston, Texas |   |   77057 |
|---------------------------------------------|--------|-------------------|
| (Address of principal executive offices)    |   | (Zip Code)        |

| Title of each class          |   | Name of each exchange on which registered |
|------------------------------|--------|-------------------------------------------|
| Common Stock, $.01 par value |   | NYSE Amex                                 |

| Large accelerated filer  ̈ |   | Accelerated filer  ̈    |
|--------------------------------|--------|-----------------------------|
| Non-accelerated filer  ̈   |   | Smaller reporting company x |

----

|       |                                                                                                               |   | Page No. |
|------------|--------------------------------------------------------------------------------------------------------------------|--------|----------|
|       | PART I                                                                                                             |   | 3        |
|       |                                                                                                               |   |     |
| Item 1     | Business                                                                                                           |   | 3        |
| Item 1A    | Risk Factors                                                                                                       |   | 6        |
| Item 1B    | Unresolved Staff Comments                                                                                          |   | 12       |
| Item 2     | Properties                                                                                                         |   | 13       |
| Item 3     | Legal Proceedings                                                                                                  |   | 17       |
| Item 4     | Submission of Matters to a Vote of Security Holders                                                                |   | 18       |
|       |                                                                                                               |   |     |
|       | PART II                                                                                                            |   | 18       |
|       |                                                                                                               |   |     |
| Item 5     | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |   | 18  |
| Item 6     | Selected Financial Data                                                                                            |   | 19       |
| Item 7     | Management’s Discussion and Analysis of Financial Condition and Results of   Operations       |   | 19       |
| Item 8     | Financial Statements and Supplementary Data                                                                        |   | 29       |
| Item 9     | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               |   | 60       |
| Item 9A(T) | Controls and Procedures                                                                                            |   | 61       |
| Item 9B    | Other Information                                                                                                  |   | 62       |
|       |                                                                                                               |   |     |
|       | PART III                                                                                                           |   | 62       |
|       |                                                                                                               |   |     |
| Item 10    | Directors, Executive Officers and Corporate Governance                                                             |   | 62       |
| Item 11    | Executive Compensation                                                                                             |   | 62       |
| Item 12    | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     |   | 63       |
| Item 13    | Certain Relationships and Related Transactions, and Director Independence                                          |   | 63       |
| Item 14    | Principal Accountant Fees and Services                                                                             |   | 63       |
|       |                                                                                                               |   |     |
|       | PART IV                                                                                                            |   | 64       |
|       |                                                                                                               |   |     |
| Item 15    | Exhibits and Financial Statement Schedules                                                                         |   | 64       |

----

----

----

----

| ·   | a decline in acquisition, disposition and leasing activity; |
|--------------------|-------------------------------------------------------------|

| ·   | a decline in the supply of capital invested in commercial and residential real estate; and |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | a decline in the value of real estate and in rental rates, which would cause us to realize lower revenue from: |
|--------------------|----------------------------------------------------------------------------------------------------------------|

----

----

|   | ·   | our ability to attract and retain creditworthy tenants; |
|--------|--------------------|---------------------------------------------------------|

|   | ·   | the magnitude of defaults by tenants under their respective leases; |
|--------|--------------------|---------------------------------------------------------------------|

|   | ·   | our ability to control operating expenses; |
|--------|--------------------|--------------------------------------------|

|   | ·   | governmental regulations, local rent control or stabilization ordinances which are in, or may be put into, effect; |
|--------|--------------------|--------------------------------------------------------------------------------------------------------------------|

|   | ·   | various uninsurable risks; |
|--------|--------------------|----------------------------|

|   | ·   | financial condition of certain clients; |
|--------|--------------------|-----------------------------------------|

|   | ·   | financial conditions prevailing generally and in the areas in which these properties are located; |
|--------|--------------------|---------------------------------------------------------------------------------------------------|

|   | ·  | the nature and extent of competitive properties; and |
|--------|--------------|-----------------------------------------------------------|

----

|   | ·   | the general real estate market.  |
|--------|--------------------|---------------------------------------|

----

----

|   | ·   | we will not exercise sole decision-making authority regarding the joint venture’s business and assets and, thus, we may not be able to take actions that we believe are in our company’s best interests; |
|--------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | we may be required to accept liability for obligations of the joint venture (such as recourse carve-outs on mortgage loans) beyond our economic interest; |
|--------|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | our returns on joint venture assets may be adversely affected if the assets are not held for the long-term. |
|--------|--------------------|-------------------------------------------------------------------------------------------------------------|

|   | ·   | the cash flow from lease payments on our properties is insufficient to meet debt obligations; |
|--------|--------------------|-----------------------------------------------------------------------------------------------|

|   | ·   | we are unable to refinance our debt obligations as necessary or on as favorable terms; or |
|--------|--------------------|-------------------------------------------------------------------------------------------|

|   | ·   | there is an increase in interest rates.   |
|--------|--------------------|-----------------------------------------------------|

----

----

|         |    |                     |    |    |    | Total Gross Leasable |    | Percent of Gross |    | Rented       |    |     |    |        |
|--------------|--------------|-------------------------------|--------------|--------------|--------------|--------------------------------|--------------|----------------------------|--------------|--------------|--------------|---------------|--------------|------------------|
|    |    |                     |    |    |    | Area                           |    |  Leasable             |    | Square       |    | Annualized    |    | Rent per    |
| Sate         |    | Property                      |    | Type         |    | (Square Feet)             |    | Area Occupied         |    |  Feet   |    | Net Rent |    | Square Feet |
|    |         |                          |         |         |         |                           |         | (1)                        |         |         |         | (2)           |         | (3)              |
| CA           |         | 7700 IRVINE                   |         | Office       |         | 209,343                        |         | 81.1%                      |         | 169,753      |         | 5,763,984     |         | 33.96            |
| CA           |         | BRISTOL BAY                   |         | Office       |         | 50,073                         |         | 96.3%                      |         | 48,241       |         | 1,286,592     |         | 26.67            |
| CA           |         | CREEKSIDE Office              |         | Office       |         | 47,810                         |         | 40.8%                      |         | 19,513       |         | 455,952       |         | 23.37            |
| CA           |         | PACIFIC SPECTRUM              |         | Office       |         | 71,112                         |         | 77.5%                      |         | 55,101       |         | 927,648       |         | 16.84            |
|         |         | Arizona California Region     |         |         |         | 378,338                        |         | 77.3%                      |         | 292,608      |         | 8,434,176     |         | 28.82            |
| MO           |         | NORTHWEST CORPORATE CENTER II |         | Office       |         | 86,900                         |         | 86.4%                      |         | 75,079       |         | 1,265,148     |         | 16.85            |
| IN           |         | MORENCI PROFESSIONAL PARK     |         | Industrial   |         | 105,600                        |         | 58.0%                      |         | 61,200       |         | 370,776       |         | 6.06             |
|         |         | Upper Midwest Region          |         |         |         | 192,500                        |         | 70.8%                      |         | 136,279      |         | 1,635,924     |         | 12.00            |
| TX           |         | 888 WEST SAM HOUSTON PARKWAY  |         | Office       |         | 45,841                         |         | 82.4%                      |         | 37,793       |         | 590,784       |         | 15.63            |
| TX           |         | 800 WEST SAM HOUSTON PARKWAY  |         | Office       |         | 42,735                         |         | 97.5%                      |         | 41,660       |         | 520,944       |         | 12.50            |
| TX           |         | 11500 NW FREEWAY              |         | Office       |         | 83,004                         |         | 76.0%                      |         | 63,064       |         | 987,816       |         | 15.66            |
| TX           |         | 5450 NW CENTRAL               |         | Office       |         | 56,290                         |         | 87.2%                      |         | 49,106       |         | 717,288       |         | 14.61            |
| TX           |         | 8100 WASHINGTON               |         | Office       |         | 44,060                         |         | 95.6%                      |         | 42,137       |         | 633,576       |         | 15.04            |
| TX           |         | 8300 BISSONNET                |         | Office       |         | 91,060                         |         | 67.7%                      |         | 61,620       |         | 763,716       |         | 12.39            |
| TX           |         | 12000 WESTHEIMER              |         | Office       |         | 58,041                         |         | 95.5%                      |         | 55,433       |         | 985,236       |         | 17.77            |
| TX           |         | 16350 PARK TEN                |         | Office       |         | 73,210                         |         | 81.0%                      |         | 59,278       |         | 1,124,124     |         | 18.96            |
| TX           |         | 16360 PARK TEN                |         | Office       |         | 68,599                         |         | 83.8%                      |         | 57,492       |         | 1,081,632     |         | 18.81            |
| TX           |         | 2401 FOUNTAINVIEW             |         | Office       |         | 174,860                        |         | 94.0%                      |         | 164,318      |         | 3,821,472     |         | 23.26            |
| TX           |         | 2470 GRAY FALLS DRIVE         |         | Office       |         | 41,273                         |         | 91.2%                      |         | 37,643       |         | 587,400       |         | 15.60            |
| TX           |         | 2855 MANGUM                   |         | Office       |         | 72,054                         |         | 87.5%                      |         | 63,016       |         | 895,356       |         | 14.21            |
| TX           |         | 6677 NORTH GESSNER            |         | Office       |         | 93,912                         |         | 100.0%                     |         | 93,912       |         | 849,996       |         | 9.05             |
| TX           |         | 1501 MOCKINGBIRD              |         | Office       |         | 70,255                         |         | 92.8%                      |         | 65,169       |         | 929,028       |         | 14.26            |
| TX           |         | 6420 RICHMOND ATRIUM          |         | Office       |         | 77,328                         |         | 78.6%                      |         | 60,800       |         | 935,100       |         | 15.38            |
| TX           |         | 6430 RICHMOND ATRIUM          |         | Office       |         | 44,884                         |         | 82.8%                      |         | 37,158       |         | 544,380       |         | 14.65            |
| TX           |         | FOUNTAINVIEW PLACE I & II |         | Office       |         | 175,875                        |         | 88.6%                      |         | 155,739      |         | 2,472,468     |         | 15.88            |
| TX           |         | 2620-2630 FOUNTAINVIEW        |         | Office       |         | 124,403                        |         | 79.5%                      |         | 98,923       |         | 1,350,132     |         | 13.65            |
| TX           |         | 8 CENTRE                      |         | Industrial   |         | 48,000                         |         | 84.5%                      |         | 40,560       |         | 420,720       |         | 10.37            |
| TX           |         | WINDROSE                      |         | Retail       |         | 28,000                         |         | 43.3%                      |         | 12,115       |         | 230,076       |         | 18.99            |
| TX           |         | BELTWAY INDUSTRIAL            |         | Industrial   |         | 389,720                        |         | 95.7%                      |         | 373,120      |         | 2,130,360     |         | 5.71             |
| TX           |         | SOUTHWEST POINTE              |         | Industrial   |         | 101,269                        |         | 77.6%                      |         | 78,587       |         | 638,124       |         | 8.12             |
| TX           |         | TECHNOLOGY                    |         | Industrial   |         | 118,413                        |         | 0.0%                       |         | -            |         | -             |         | -                |
| TX           |         | SABO ROAD                     |         | Self Storage |         | 57,850                         |         | 81.8%                      |         | 47,345       |         | 465,408       |         | 9.83             |
|         |         |                          |         |         |         |                      |         |                       |         |    |         |     |         |        |
|         |         | Texas Region Total            |         |         |         | 2,180,936                      |         | 82.3%                      |         | 1,795,988    |         | 23,675,136    |         | 13.18            |
|         |         | Total/Weighted Average        |         |         |         | 2,751,774                      |         | 80.9%                      |         | 2,224,875    |         | 33,745,236    |         | 15.17            |

----

----

| LEASE EXPIRATIONS    |   |
|---------------------------|--------|
|                 |   |   |   |   |   |   |   |   |   |   | Percentage of |   |
|                 |   |   |   |   | Rented square |   |   | Annual base rent |   |   | total annual base |   |
| Expiration                |   | Number of |   |   | footage subject |   |   | under expiring leases |   |   | rent represented by |   |
| year (2)             |   | expiring leases |   |   | to expiring leases(3) |   |   | (in thousands) (4) |   |   | expiring leases(1) |   |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |
| For Office Properties     |   |
| 2011                      |   |   | 532 |   |   |   | 575,547 |   |   | $ | 10,787 |   |   |   | 38 | % |
| 2012                      |   |   | 166 |   |   |   | 286,640 |   |   |   | 5,399 |   |   |   | 19 | % |
| 2013                      |   |   | 89 |   |   |   | 280,758 |   |   |   | 4,989 |   |   |   | 18 | % |
| 2014                      |   |   | 49 |   |   |   | 229,461 |   |   |   | 3,184 |   |   |   | 11 | % |
| 2015                      |   |   | 24 |   |   |   | 160,133 |   |   |   | 3,249 |   |   |   | 11 | % |
| thereafter                |   |   | 14 |   |   |   | 94,482 |   |   |   | 696 |   |   |   | 2 | % |
|                      |   |   | 874 |   |   |   | 1,627,021 |   |   | $ | 28,304 |   |   |   | 100 | % |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| For Industrial Properties |   |
| 2011                      |   |   | 75 |   |   |   | 271,711 |   |   | $ | 2,021 |   |   |   | 57 | % |
| 2012                      |   |   | 20 |   |   |   | 90,126 |   |   |   | 671 |   |   |   | 19 | % |
| 2013                      |   |   | 24 |   |   |   | 79,253 |   |   |   | 382 |   |   |   | 11 | % |
| 2014                      |   |   | 9 |   |   |   | 48,561 |   |   |   | 336 |   |   |   | 9 | % |
| 2015                      |   |   | 5 |   |   |   | 61,442 |   |   |   | 153 |   |   |   | 4 | % |
| thereafter                |   |   | 1 |   |   |   | 4,000 |   |   |   | - |   |   |   | 0 | % |
|                      |   |   | 134 |   |   |   | 555,093 |   |   | $ | 3,563 |   |   |   | 100 | % |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| For Retail Property       |   |
| 2013                      |   |   | 1 |   |   |   | 6,000 |   |   | $ | 114 |   |   |   | 50 | % |
| 2015                      |   |   | 1 |   |   |   | 6,115 |   |   |   | 116 |   |   |   | 50 | % |
| thereafter                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 0 | % |
|                      |   |   | 2 |   |   |   | 12,115 |   |   | $ | 230 |   |   |   | 100 | % |
|                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| For Self-Storage Property |   |
| 2011                      |   |   | 374 |   |   |   | 47,345 |   |   | $ | 350 |   |   |   | 100 | % |
| thereafter                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 0 | % |
|                      |   |   | 374 |   |   |   | 47,345 |   |   | $ | 350 |   |   |   | 100 | % |

| Footnotes |                                                                                                                                                                                                                                                                                       |   |   |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| (1)       | Annual base rent expiring during each period, divided by total annual base rent (both adjusted for contractual increases).                                                                                                                                                                 |
| (2)       | 2011 includes leases that have initial terms of less than one year.                                                                                                                                                                                                                        |
| (3)       | This figure is based on square footage actually occupied (which excludes vacant space), which accounts for the difference between this figure and total gross leasable area (which includes vacant space).                                                                                 |
| (4)       | This figure is based on square footage actually occupied and incorporates contractual rent increases arising after 2010, and thus differs from annualized net rent in the table under “The Location and Type of the Company’s Properties”, which is based on 2010 rents. |

----

----

| Property Name                      |   | Product Type |   | Address                             |   | City/State              |   | Net Rentable Area |      |   | MultifamilyUnits |   |   | # of Beds |   |   | Self StorageUnits |   |   | PercentOccupied |   |   | Percent of VIEOwned byCompany |   |
|-----------------------------------------|--------|-------------------|--------|-------------------------------------|--------|-------------------------|--------|-------------------|-----------|--------|------------------|--------|--------|---------------------|--------|--------|-------------------|--------|--------|-----------------|--------|--------|----------------------------------------------|--------|
|                                    |   |              |   |                                |   |                    |   |              |      |   |             |   |   |                |   |   |              |   |   |            |   |   |                                         |   |
| Multifamily                             |   |              |   |                                |   |                    |   |              |      |   |             |   |   |                |   |   |              |   |   |            |   |   |                                         |   |
| Ohio II - Residences at Newark          |   | Apartments        |   | 1476 Residence Drive                |   | Newark, OH              |   |              | 97,216    |   |             |   | 112    |                |   |   | N/A               |   |   |            | N/A    |   |                                         |   | 94.6 | % |   |   | 0.1 | % |
| Ohio II - Sheffield at Sylvon           |   | Apartments        |   | 321 Pontious Lane                   |   | Circleville, OH         |   |              | 106,524   |   |             |   | 136    |                |   |   | N/A               |   |   |            | N/A    |   |                                         |   | 83.7 | % |   |   | 0.1 | % |
| Centennial Park Apartments              |   | Apartments        |   | 12000 Hayes                         |   | Overland Park, KS       |   |              | 204,858   |   |             |   | 170    |                |   |   | N/A               |   |   |            | N/A    |   |                                         |   | 91.8 | % |   |   | 1.0 | % |
|                                    |   |              |   |                                |   |                    |   |              | 408,598   |   |             |   | 418    |                |   |   | N/A               |   |   |            | N/A    |   |                                         |   |   |   |   |   |   |   |
| Student Housing                         |   |              |   |                                |   |                    |   |              |      |   |             |   |   |                |   |   |              |   |   |            |   |   |                                         |   |   |   |   |   |   |   |
| University Fountains Lubbock            |   | Collegiate        |   | 2202 Mac Davis Ln                   |   | Lubbock, TX             |   |              | 284,436   |   |             |   | 228    |                |   |   | 683               |   |   |            | N/A    |   |                                         |   | 98.4 | % |   |   | 0.0 | % |
| University Heights San Marcos           |   | Collegiate        |   | 1610 N Interstate 35                |   | San Marcos, TX          |   |              | 303,900   |   |             |   | 288    |                |   |   | 816               |   |   |            | N/A    |   |                                         |   | 97.1 | % |   |   | 0.0 | % |
| University Springs San Marcos           |   | Collegiate        |   | 109 West Avenue                     |   | San Marcos, TX          |   |              | 176,944   |   |             |   | 152    |                |   |   | 488               |   |   |            | N/A    |   |                                         |   | 99.4 | % |   |   | 0.0 | % |
| Campus Court Student Housing            |   | Collegiate        |   | 9105-9135 University Ave            |   | Cedar Falls, IA         |   |              | 72,480    |   |             |   | 60     |                |   |   | 180               |   |   |            | N/A    |   |                                         |   | 100.0 | % |   |   | 11.2 | % |
| College Park Student Apartments         |   | Collegiate        |   | 304 66th Ave SW                     |   | Cedar Rapids, IA        |   |              | 252,000   |   |             |   | 340    |                |   |   | 752               |   |   |            | N/A    |   |                                         |   | 84.3 | % |   |   | 0.0 | % |
|                                    |   |              |   |                                |   |                    |   |              | 1,089,760 |   |             |   | 1,068  |                |   |   | 2,919             |   |   |            | N/A    |   |                                         |   |   |   |   |   |   |   |
| Self Storage                            |   |              |   |                                |   |                    |   |              |      |   |             |   |   |                |   |   |              |   |   |            |   |   |                                         |   |   |   |   |   |   |   |
| Aldine Westfield Self Storage           |   | Self Storage      |   | 21667 Aldine Westfield              |   | Houston, TX             |   |              | 64,975    |   |             |   | N/A    |                |   |   | N/A               |   |   |            | 636    |   |                                         |   | 57.0 | % |   |   | 0.0 | % |
| Attic Space Self Storage - Blanco Road  |   | Self Storage      |   | 5149 Blanco Rd                      |   | San Antonio, TX         |   |              | 48,130    |   |             |   | N/A    |                |   |   | N/A               |   |   |            | 502    |   |                                         |   | 60.0 | % |   |   | 0.0 | % |
| Attic Space Self Storage - Laredo Road  |   | Self Storage      |   | 2155 Laredo Rd                      |   | San Antonio, TX         |   |              | 46,510    |   |             |   | N/A    |                |   |   | N/A               |   |   |            | 581    |   |                                         |   | 89.0 | % |   |   | 0.0 | % |
| Charleston Blvd Self Storage            |   | Self Storage      |   | 5011 E. Charleston Blvd             |   | Las Vegas, NV           |   |              | 55,600    |   |             |   | N/A    |                |   |   | N/A               |   |   |            | 475    |   |                                         |   | 56.0 | % |   |   | 0.0 | % |
| Ft. Worth River Oaks Self Storage       |   | Self Storage      |   | 5700 River Oaks Blvd                |   | River Oaks, TX          |   |              | 104,265   |   |             |   | N/A    |                |   |   | N/A               |   |   |            | 651    |   |                                         |   | 82.0 | % |   |   | 0.0 | % |
| Ft. Worth Northwest Self Storage        |   | Self Storage      |   | 1850 Ephriham Ave                   |   | Fort Worth, TX          |   |              | 69,275    |   |             |   | N/A    |                |   |   | N/A               |   |   |            | 563    |   |                                         |   | 71.0 | % |   |   | 0.0 | % |
| Grissom Road Self Storage               |   | Self Storage      |   | 7645 Grissom Road                   |   | San Antonio, TX         |   |              | 90,120    |   |             |   | N/A    |                |   |   | N/A               |   |   |            | 272    |   |                                         |   | 88.0 | % |   |   | 0.0 | % |
| Houston South Mason (Patrick's)         |   | Self Storage      |   | 1001 S. Mason Rd                    |   | Katy, TX                |   |              | 58,730    |   |             |   | N/A    |                |   |   | N/A               |   |   |            | 600    |   |                                         |   | 65.0 | % |   |   | 0.0 | % |
| Loop 1604 Self Storage                  |   | Self Storage      |   | 10507 Shaenfield Rd/8223 Leslie Rd  |   | San Antonio, TX         |   |              | 164,325   |   |             |   | N/A    |                |   |   | N/A               |   |   |            | 600    |   |                                         |   | 88.0 | % |   |   | 38.4 | % |
| Florida 2 - Tampa Self Storage          |   | Self Storage      |   | 1108 Skipper Rd                     |   | Tampa, FL               |   |              | 60,900    |   |             |   | N/A    |                |   |   | N/A               |   |   |            | 416    |   |                                         |   | 56.0 | % |   |   | 0.0 | % |
| Florida 2 - Ocala Self Storage          |   | Self Storage      |   | 2853 South Pine Ave                 |   | Ocala, FL               |   |              | 42,091    |   |             |   | N/A    |                |   |   | N/A               |   |   |            | 360    |   |                                         |   | 53.0 | % |   |   | 0.0 | % |
|                                    |   |              |   |                                |   |                    |   |              | 804,921   |   |             |   | N/A    |                |   |   | N/A               |   |   |            | 5,656  |   |                                         |   |   |   |   |   |   |   |
| Commercial                              |   |              |   |                                |   |                    |   |              |      |   |             |   |   |                |   |   |              |   |   |            |   |   |                                         |   |   |   |   |   |   |   |
| Redmond Commerce Center                 |   | Office Industrial |   | 18340 & 18460 Northeast 76th St |   | Redmond, WA             |   |              | 196,100   |   |             |   | N/A    |                |   |   | N/A               |   |   |            | N/A    |   |                                         |   | 100.0 | % |   |   | 0.0 | % |
| Ohio Commerce Center                    |   | Office Industrial |   | 16651 W Sprague Rd                  |   | Strongsville, OH        |   |              | 194,558   |   |             |   | N/A    |                |   |   | N/A               |   |   |            | N/A    |   |                                         |   | 100.0 | % |   |   | 0.0 | % |
| Fishers Indiana Distribution Center     |   | Office Industrial |   | 9999 121st St                       |   | Fishers, IN             |   |              | 637,531   |   |             |   | N/A    |                |   |   | N/A               |   |   |            | N/A    |   |                                         |   | 100.0 | % |   |   | 1.0 | % |
| Commerce Distributions Center           |   | Office Industrial |   | 5505-5533 Garden Grove Blvd         |   | Commerce, CA            |   |              | 200,000   |   |             |   | N/A    |                |   |   | N/A               |   |   |            | N/A    |   |                                         |   | 100.0 | % |   |   | 1.0 | % |
| Dixon & 51st Logistics Center       |   | Office Industrial |   | 3811 Dixon St                       |   | Des Moines, IA          |   |              | 731,160   |   |             |   | N/A    |                |   |   | N/A               |   |   |            | N/A    |   |                                         |   | 100.0 | % |   |   | 0.0 | % |
| Springs Office Center                   |   | Office Industrial |   | 3 Locations                         |   | Fort Mill/Lancaster, SC |   |              | 265,493   |   |             |   | N/A    |                |   |   | N/A               |   |   |            | N/A    |   |                                         |   | 100.0 | % |   |   | 0.0 | % |
| Springs Commerce Center I               |   | Office Industrial |   | 5 Locations                         |   | OK,GA,SC,VA,PA          |   |              | 1,006,993 |   |             |   | N/A    |                |   |   | N/A               |   |   |            | N/A    |   |                                         |   | 62.0 | % |   |   | 0.0 | % |
| Springs Commerce Center II              |   | Office Industrial |   | 3 Locations                         |   | GA, AL                  |   |              | 1,439,300 |   |             |   | N/A    |                |   |   | N/A               |   |   |            | N/A    |   |                                         |   | 100.0 | % |   |   | 0.0 | % |
| Strongsville Corporate Center           |   | Office Industrial |   | 17800 Royalton Rd                   |   | Strongsville, OH        |   |              | 125,006   |   |             |   | N/A    |                |   |   | N/A               |   |   |            | N/A    |   |                                         |   | 100.0 | % |   |   | 2.2 | % |
|                                    |   |              |   |                                |   |                    |   |              | 4,796,141 |   |             |   | N/A    |                |   |   | N/A               |   |   |            | N/A    |   |                                         |   |   |   |   |   |   |   |
| Assisted Living                         |   |              |   |                                |   |                    |   |              |      |   |             |   |   |                |   |   |              |   |   |            |   |   |                                         |   |   |   |   |   |   |   |
| Phoenix Assisted Living 51 (Rose Court) |   | Senior Housing    |   | 2935 N 18th Pl                      |   | Phoenix, AZ             |   |              | 64,980    |   |             |   | 92     |                |   |   | 118               |   |   |            | N/A    |   |                                         |   | 81.5 | % |   |   | 0.0 | % |
|                                    |   |              |   |                                |   |                    |   |              | 64,980    |   |             |   | 92     |                |   |   | 118               |   |   |            | N/A    |   |                                         |   |   |   |   |   |   |   |
|                                    |   |              |   |                                |   |                    |   |              |      |   |             |   |   |                |   |   |              |   |   |            |   |   |                                         |   |   |   |   |   |   |   |
| Total                                   |   |              |   |                                |   |                    |   |              | 7,164,400 |   |             |   | 1,578  |                |   |   | 3,037             |   |   |            | 5,656  |   |                                         |   |   |   |   |   |   |   |

----

|                              |   | High   |   |   | Low    |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|
| Year Ended December 31, 2010 |   |   |   |   |   |   |
| First Quarter                     |   | $      | 11.56  |   |   | $      | 9.12 |   |
| Second Quarter                    |   | $      | 14.50  |   |   | $      | 7.90 |   |
| Third Quarter                     |   | $      | 14.05  |   |   | $      | 10.00 |   |
| Fourth Quarter                    |   | $      | 18.59  |   |   | $      | 12.25 |   |
| Year Ended December 31, 2009 |   |   |   |   |   |   |   |   |
| First Quarter                     |   | $      | 12.35  |   |   | $      | 8.50 |   |
| Second Quarter                    |   | $      | 11.00  |   |   | $      | 8.50 |   |
| Third Quarter                     |   | $      | 11.38  |   |   | $      | 6.35 |   |
| Fourth Quarter                    |   | $      | 11.20  |   |   | $      | 7.75 |   |

----

----

| 1.   | Occupancy in ASR-owned properties - Our rental revenues are dependent on our ability to lease the spaces we own to quality tenants.  Our initiatives to reduce vacancy in our owned properties have resulted in about the same weighted average occupancy rates in 2010 as compared to 2009. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             |   | Weighted Average Occupancy |   |
|-----------------------|--------|--------------------------------------|--------|
|             |   | as of December 31,    |   |
| Property Type    |   | 2010                                 |   |   | 2009 |   |
| Office properties     |   |                                 | 85     | % |   |   | 88 | % |
| Industrial properties |   |                                 | 73     | % |   |   | 70 | % |
| Retail property       |   |                                 | 43     | % |   |   | 21 | % |
| Self-storage property |   |                                 | 82     | % |   |   | N/A |   |
| Weighted average      |   |                                 | 81     | % |   |   | 82 | % |

| 2.   | Rental rates related to ASR-owned properties – Market rental rates are often inversely related to vacancy rates.  Increased vacancy in the market place tends to drive down rental rates. Our leases typically have one to ten year terms based on property type.  As leases expire, we replace the existing leases with new leases at the current market rental rate. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             |   | Weighted Average Base Rent |   |
|-----------------------|--------|-------------------------------------------|--------|
|             |   | per occupied square foot   |   |
|             |   | as of December 31,         |   |
| Property Type    |   | 2010                                      |   |   | 2009 |   |
| Office properties     |   | $                                         | 18.16  |   |   | $ | 17.92 |   |
| Industrial properties |   | $                                         | 6.43   |   |   | $ | 6.35 |   |
| Retail property       |   | $                                         | 18.99  |   |   | $ | 20.00 |   |
| Self-storage property |   | $                                         | 8.92   |   |   |   | N/A |   |

| 3.   | Tenant retention in ASR-owned properties - Retaining existing tenants is essential, as high customer retention leads to increased occupancy, less downtime between leases, and reduced leasing costs.  We believe in providing superior customer service; hiring, training, retaining and empowering our employees.  We strive to create an environment of open communication both internally and externally with our customers. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | Variable Interest Entity accounting; |
|--------|---------|--------------------------------------|

|   | ·  | Business combinations; |
|--------|--------------|------------------------|

|   | ·  | Investment in real estate assets; |
|--------|--------------|-----------------------------------|

|   | • | Purchase price allocation of real estate acquired; |
|--------|---------|----------------------------------------------------|

|   | ·  | Discontinued operations; |
|--------|--------------|--------------------------|

|   | ·  | Sales of real estate assets; |
|--------|--------------|------------------------------|

|   | ·  | Fair value measurements; |
|--------|--------------|--------------------------|

|   | • | Impairment of assets; and |
|--------|---------|---------------------------|

|   | • | Income taxes. |
|--------|---------|---------------|

----

----

| Building and Improvements |   | 5 to 40 years             |
|---------------------------|--------|---------------------------|
| Tenant Improvements       |   | Term of the related lease |
| Furniture and Equipment   |   | 3 to 5 years              |

----

----

|                                       |   | Years Ended December 31,          |   |
|--------------------------------------------|--------|-----------------------------------|--------|
|                                       |   | 2010                              |   |   | 2009 |   |   | % Change |   |
|                                       |   | (in thousands except percentages) |   |
| Rental revenue                             |   | $                                 | 51,627 |   |   | $ | 33,018 |   |   |   | 56 | % |
| Third-party management and leasing revenue |   | $                                 | 3,742  |   |   | $ | 239 |   |   |   | 1466 | % |

|   | ·   | Rental revenue for the year ended 2010 increased by $18.6 million, or 56%, in comparison to the year ended December 31, 2009.  The increase in rental revenue was primarily due to the consolidation of VIE’s, which resulted in additional rental revenues of approximately $20.0 million.  Rental revenue for owned properties decreased by approximately $1.4 million principally due to an increase in rent concessions.  The decrease in rental revenue for owned properties was also attributable to a decrease in occupancy.  The weighted average occupancy of the Company’s owned properties decreased from 82% at December 31, 2009 to 81% at December 31, 2010. |
|--------|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·   | The increased third party management and leasing  revenue was directly related to our acquisition of property management and asset management contracts.  See Item 8. Consolidated Financial Statements - Note 2. Acquisition and Disposition Activities for additional details regarding our purchase of these assets. |
|--------|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   | Years Ended December 31,          |   |
|--------------------------------------|--------|--------------------------------------------------|--------|
|                            |   | 2010                                             |   |   | 2009 |   |   | % Change |   |
|                            |   | (in thousands except percentages) |   |
| Property operating expense |   | $                                                | 21,542 |   |   | $ | 15,837 |   |   |   | 36 | % |
| General and administrative           |   |                                             | 9,659  |   |   |   | 4,572 |   |   |   | 111 | % |
| Depreciation and amortization        |   |                                             | 23,807 |   |   |   | 14,704 |   |   |   | 62 | % |
| Interest expense                     |   |                                             | 21,840 |   |   |   | 13,307 |   |   |   | 64 | % |
| Impairment expense                   |   |                                             | 3,387  |   |   |   | - |   |   |   | N/A |   |
|                                 |   | $                                                | 80,235 |   |   | $ | 48,420 |   |   |   | 66 | % |

| ·   | Property operating expenses increased by approximately $5.5 million due to consolidation of  VIE’s and remained relatively flat relating to ASR owned properties as we continued to seek reductions in our assessed values for property tax purposes but had those reductions offset by a slight increase in expenses. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | General and administrative expenses increased significantly during 2010 relating to the additional head count needed to service our third party clients.  We also had increased legal fees and professional fees relating not only to our litigation against our insurance company (see Part I Item 3), but also relating to our acquisition of property and the property management and asset management contracts (see Item 8 - Consolidated Financial Statements - Note 2. Acquisition and Disposition Activities). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Depreciation and amortization increased by approximately $8.5 million as a result of our VIE’s, with the additional increase resulting from additional improvements being capitalized and certain intangible assets acquired being depreciated. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Interest expense increased due to the increase in notes payable owed by us and our consolidated VIE’s. |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | Impairment expense relates to certain management contracts with entities/properties that were either terminated or their fair value was determined to be lower than book value. See Item 8 Consolidated Financial Statements - Note 2. Acquisitions and Disposition Activities for more information on impairment charges. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                |   | Years Ended December 31,          |   |
|------------------------------------------|--------|--------------------------------------------------|--------|
|                                |   | 2010                                             |   |   | 2009 |   |   | % Change |   |
|                                |   | (in thousands except percentages) |   |
| Interest and other income |   | $                                                | 274    |   |   | $ | 40 |   |   |   | 585 | % |
| Deferred income tax benefit              |   |                                             | 6,749  |   |   |   | 5,631 |   |   |   | 20 | % |
| Discontinued operations                  |   |                                             | 2,847  |   |   |   | 190 |   |   |   | 1398 | % |
| Non-controlling interests                |   |                                             | 6,959  |   |   |   | 1,030 |   |   |   | 576 | % |
|                                     |   | $                                                | 16,829 |   |   | $ | 6,891 |   |   |   | 144 | % |

| ·   | Deferred income tax benefit was increased by the amount of benefit we anticipate potentially realizing in future periods as a result of this year’s net loss. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Discontinued operations reflected the sale of our property at 5850 San Felipe. |
|--------------------|--------------------------------------------------------------------------------|

| ·   | Non-controlling interests consist of; |
|--------------------|---------------------------------------|

|   | 1.   | Operating partnership unit holders other than the company, |
|--------|----------------|------------------------------------------------------------|

|   | 2.   | The non-controlling interests held by our VIE’s; and |
|--------|----------------|------------------------------------------------------------|

|   | 3.   | Until it was sold in September of 2009, 49% interest in two income producing properties held by our single purpose limited partnership. |
|--------|----------------|-----------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                                         |   | December 31,   |   |
|------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                         |   | 2010           |   |   | 2009 |   |
|                                                                         |   | (in thousands) |   |
| Net loss attributable to the Company                                         |   | $              | (8,037 | ) |   | $ | (8,272 | ) |
| Depreciation and amortization from discontinued operations                   |   |           | -      |   |   |   | 456 |   |
| Gain on sale of discontinued operations                                      |   |           | (4,315 | ) |   |   | - |   |
| Impairment expense                                                           |   |           | 3,387  |   |   |   |   |   |
| Deferred income tax benefit                                                  |   |           | (5,108 | ) |   |   | (5,521 | ) |
| Depreciation and amortization attributable to the Company's owned properties |   |           | 13,334 |   |   |   | 14,704 |   |
| Funds From Operations                                                        |   | $              | (739   | ) |   | $ | 1,367 |   |

|                                                                                       | PageNo. |
|--------------------------------------------------------------------------------------------|---------|
| Reports of Independent Registered Public Accounting Firms                                  | 30      |
| Consolidated Balance Sheets at December 31, 2010 and 2009                                  | 32      |
| Consolidated Statements of Operations for the years ended December 31, 2010 and 2009       | 33      |
| Consolidated Statements of Equity (Deficit) for the years ended December 31, 2010 and 2009 | 34      |
| Consolidated Statements of Cash Flows for the years ended December 31, 2010 and 2009       | 35      |
| Notes to Consolidated Financial Statements                                                 | 36      |

----

----

----

|                                                                                                                                                                                     |   | December 31,                               |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|---------|
|                                                                                                                                                                                     |   | 2010                                            |    |   | 2009 |   |
|                                                                                                                                                                                     |   | (In thousands, except share and per share data) |    |
|                                                                                                                                                                                     |   |                                            |    |   |   |   |
| ASSETS                                                                                                                                                                                   |   |                                            |    |   |   |   |
|                                                                                                                                                                                     |   |                                            |    |   |   |   |
| Real estate held for investment (includes $381,354 from consolidated VIE's at Dec 31, 2010)                                                                                              |   | $                                               | 646,255 |   |   | $ | 251,336 |   |
| Accumulated depreciation (includes $8,446 from consolidated VIE's at Dec 31, 2010)                                                                                                       |   |                                            | (94,090 | ) |   |   | (72,404 | ) |
| Real estate held for investment, net  (includes $372,908 from consolidated VIE's at Dec 31, 2010)                                                                              |   |                                            | 552,165 |   |   |   | 178,932 |   |
|                                                                                                                                                                                     |   |                                            |    |   |   |   |   |   |
| Real estate held for sale                                                                                                                                                                |   |                                            | -       |   |   |   | 6,364 |   |
| Cash and cash equivalents                                                                                                                                                                |   |                                            | 2,003   |   |   |   | 462 |   |
| Restricted cash  (includes $4,016 from consolidated VIE's at December 31, 2010)                                                                                                |   |                                            | 5,008   |   |   |   | 992 |   |
| Tenant and other receivables, net of allowance for doubtful accounts of  $421 and $701, respectively  (includes $1,515 from consolidated VIE's at Dec 31, 2010)      |   |                                            | 2,403   |   |   |   | 891 |   |
| Deferred rents receivable                                                                                                                                                                |   |                                            | 2,331   |   |   |   | 1,883 |   |
| Deferred tax asset                                                                                                                                                                       |   |                                            | 14,083  |   |   |   | 8,813 |   |
| Purchased intangibles                                                                                                                                                                    |   |                                            | 9,060   |   |   |   | - |   |
| Goodwill                                                                                                                                                                                 |   |                                            | 4,003   |   |   |   | - |   |
| Investment in management company                                                                                                                                                         |   |                                            | 4,000   |   |   |   | 4,000 |   |
| Investments in unconsolidated real estate assets from related parties                                                                                                                    |   |                                            | 194     |   |   |   | - |   |
| Notes receivable from related parties                                                                                                                                                    |   |                                            | 2,000   |   |   |   | - |   |
| Interest receivable from related parties                                                                                                                                                 |   |                                            | 272     |   |   |   | - |   |
| Accounts receivable from related parties                                                                                                                                                 |   |                                            | 262     |   |   |   | - |   |
| Account receivable from Evergreen                                                                                                                                                        |   |                                            | 414     |   |   |   | - |   |
| Prepaid and other assets, net  (includes $8,858 from consolidated VIE's at Dec 31, 2010)                                                                                       |   |                                            | 20,164  |   |   |   | 12,749 |   |
| Total Assets                                                                                                                                                                             |   | $                                               | 618,362 |   |   | $ | 215,086 |   |
| LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY                                                                                                                                    |   |                                            |    |   |   |   |   |   |
|                                                                                                                                                                                     |   |                                            |    |   |   |   |   |   |
| Liabilities:                                                                                                                                                                             |   |                                            |    |   |   |   |   |   |
| Notes payable  (includes $268,776 from consolidated VIE's at Dec 31, 2010)                                                                                                     |   | $                                               | 482,819 |   |   | $ | 193,920 |   |
| Liabilities related to real estate held for sale                                                                                                                                         |   |                                            | -       |   |   |   | 6,091 |   |
| Accounts payable  (includes $5,734 from consolidated VIE's at Dec 31, 2010)                                                                                                    |   |                                            | 14,848  |   |   |   | 5,070 |   |
| Accounts payable to related parties                                                                                                                                                      |   |                                            | 286     |   |   |   | - |   |
| Liabilities related to insurance claims                                                                                                                                                  |   |                                            | 1,444   |   |   |   | 1,474 |   |
| Accrued and other liabilities  (includes $1,809 from consolidated VIE's at Dec 31, 2010)                                                                                       |   |                                            | 12,154  |   |   |   | 9,520 |   |
| Total Liabilities                                                                                                                                                                        |   |                                            | 511,551 |   |   |   | 216,075 |   |
|                                                                                                                                                                                     |   |                                            |    |   |   |   |   |   |
| Commitments and Contingencies (Notes 12 and 15):                                                                                                                                         |   |                                            |    |   |   |   |   |   |
|                                                                                                                                                                                     |   |                                            |    |   |   |   |   |   |
| Non-controlling interest classified as temporary equity                                                                                                                                  |   |                                            | -       |   |   |   | 3,962 |   |
| Equity (Deficit):                                                                                                                                                                        |   |                                            |    |   |   |   |   |   |
| American Spectrum Realty, Inc. stockholders’ (deficit) equity:                                                                                                                     |   |                                            |    |   |   |   |   |   |
| Preferred stock, $.01 par value; authorized, 25,000,000 shares;  issued and outstanding, 55,172 and 55,172 shares, respectively                                                |   |                                            | 1       |   |   |   | 1 |   |
| Common stock, $.01 par value; authorized, 100,000,000 shares; issued, 3,422,706 and 3,291,310 shares, respectively; outstanding,  2,951,294 and 2,819,898 shares, respectively |   |                                            | 34      |   |   |   | 33 |   |
| Additional paid-in capital                                                                                                                                                               |   |                                            | 49,067  |   |   |   | 48,546 |   |
| Accumulated deficit                                                                                                                                                                      |   |                                            | (60,509 | ) |   |   | (52,472 | ) |
| Treasury stock, at cost, 471,412 shares                                                                                                                                                  |   |                                            | (3,095  | ) |   |   | (3,095 | ) |
| Total American Spectrum Realty, Inc. stockholders’ deficit                                                                                                                         |   |                                            | (14,502 | ) |   |   | (6,987 | ) |
| Non-controlling interests                                                                                                                                                                |   |                                            | 121,313 |   |   |   | 2,036 |   |
| Total Equity (Deficit)                                                                                                                                                                   |   |                                            | 106,811 |   |   |   | (4,951 | ) |
| Total Liabilities and Equity (Deficit)                                                                                                                                                   |   | $                                               | 618,362 |   |   | $ | 215,086 |   |

----

|                                                                                                         |   | Years Ended December 31, |      |
|--------------------------------------------------------------------------------------------------------------|--------|--------------------------|-----------|
|                                                                                                         |   | 2010                     |      |   | 2009 |   |
| REVENUES:                                                                                                    |   |                     |      |   |   |   |
| Rental revenue                                                                                               |   | $                        | 51,627    |   |   | $ | 33,018 |   |
| Third party management and leasing revenue                                                                   |   |                     | 3,742     |   |   |   | 239 |   |
| Interest and other income                                                                                    |   |                     | 274       |   |   |   | 40 |   |
|  Total revenues                                                                                         |   |                     | 55,643    |   |   |   | 33,297 |   |
| EXPENSES:                                                                                                    |   |                     |      |   |   |   |   |   |
| Property operating expense                                                                                   |   |                     | 21,542    |   |   |   | 15,837 |   |
| General and administrative                                                                                   |   |                     | 9,659     |   |   |   | 4,572 |   |
| Depreciation and amortization                                                                                |   |                     | 23,807    |   |   |   | 14,704 |   |
| Interest expense                                                                                             |   |                     | 21,840    |   |   |   | 13,307 |   |
| Impairment expense                                                                                           |   |                     | 3,387     |   |   |   | - |   |
| Total expenses                                                                                               |   |                     | 80,235    |   |   |   | 48,420 |   |
|                                                                                                         |   |                     |      |   |   |   |   |   |
| Loss from continuing operations before deferred income tax benefit                                           |   |                     | (24,592   | ) |   |   | (15,123 | ) |
|                                                                                                         |   |                     |      |   |   |   |   |   |
| Deferred income tax benefit                                                                                  |   |                     | 6,749     |   |   |   | 5,631 |   |
| Loss from continuing operations                                                                              |   |                     | (17,843   | ) |   |   | (9,492 | ) |
|                                                                                                         |   |                     |      |   |   |   |   |   |
| Discontinued operations:                                                                                     |   |                     |      |   |   |   |   |   |
|    Income from operations                                                                     |   |                     | 173       |   |   |   | 300 |   |
|    Gain on sale of discontinued operations                                                    |   |                     | 4,315     |   |   |   | - |   |
|    Income tax expense                                                                         |   |                     | (1,641    | ) |   |   | (110 | ) |
|    Income from discontinued operations                                                        |   |                     | 2,847     |   |   |   | 190 |   |
|                                                                                                         |   |                     |      |   |   |   |   |   |
| Net loss, including non-controlling interests                                                                |   | $                        | (14,996   | ) |   | $ | (9,302 | ) |
|                                                                                                         |   |                     |      |   |   |   |   |   |
| Plus:  Net loss attributable to non-controlling interests                                          |   |                     | 6,959     |   |   |   | 1,030 |   |
|                                                                                                         |   |                     |      |   |   |   |   |   |
| Net loss attributable to American Spectrum Realty, Inc.                                                      |   |                     | (8,037    | ) |   |   | (8,272 | ) |
|                                                                                                         |   |                     |      |   |   |   |   |   |
| Preferred stock dividend                                                                                     |   |                     | (240      | ) |   |   | (240 | ) |
|                                                                                                         |   |                     |      |   |   |   |   |   |
| Net loss attributable to American Spectrum Realty, Inc. common stockholders                                  |   | $                        | (8,277    | ) |   | $ | (8,512 | ) |
|                                                                                                         |   |                     |      |   |   |   |   |   |
| Basic and diluted per share data:                                                                            |   |                     |      |   |   |   |   |   |
|  Loss from continuing operations attributable to American Spectrum Realty, Inc. common stockholders     |   | $                        | (3.45     | ) |   | $ | (3.00 | ) |
|                                                                                                         |   |                     |      |   |   |   |   |   |
|  Income from discontinued operations attributable to American Spectrum Realty, Inc. common stockholders |   |                     | 0.69      |   |   |   | 0.06 |   |
|                                                                                                         |   |                     |      |   |   |   |   |   |
|  Net loss attributable to American Spectrum Realty, Inc. common stockholders                            |   | $                        | (2.76     | ) |   | $ | (2.94 | ) |
|                                                                                                         |   |                     |      |   |   |   |   |   |
| Basic and diluted weighted average shares used                                                               |   |                     | 2,916,145 |   |   |   | 2,812,048 |   |
|                                                                                                         |   |                     |      |   |   |   |   |   |
| Amounts attributable to American Spectrum Realty, Inc. common stockholders                                   |   |                     |      |   |   |   |   |   |
| Loss from continuing operations                                                                              |   | $                        | (10,288   | ) |   | $ | (8,440 | ) |
| Income from discontinuing operations                                                                         |   | $                        | 2,011     |   |   | $ | 168 |   |
| Net loss                                                                                                     |   | $                        | (8,277    | ) |   | $ | (8,512 | ) |

----

|                                                                            |   | PreferredShares |   |   | CommonShares |   |           | Non-controllingInterests |   |   | Pre-ferredStock |   |   | CommonStock |     |   | AdditionalPaid-InCapital |   |     | Accum-ulatedDeficit |   |   | TreasuryStock |   |   | TotalEquity(Deficit) |    |
|---------------------------------------------------------------------------------|--------|-----------------|--------|--------|--------------|--------|----------------|--------------------------|--------|--------|-----------------|--------|--------|-------------|----------|--------|--------------------------|--------|----------|---------------------|--------|--------|---------------|--------|--------|----------------------|---------|
|                                                                            |   |            |   |   |         |   |           |                     |   |   |            |   |   |        |     |   |                     |   |     |                |   |   |          |   |   |                 |    |
| Balance, December 31, 2008                                                      |   |            | 55,172 |   |         |   | 1,620,304      |                     |   | $      | 3,542           |   |   | $           | 1        |   |                     | $      | 16       |                |   | $      | 48,393        |   |   | $                    | (44,200 | ) |   | $ | (3,095 | ) |   | $ | 4,657 |   |
| Issuance of common stock                                                        |   |            |   |   |         |   | 5,750          |                     |   |   | -               |   |   |        | -        |   |                     |   | -        |                |   |   | -             |   |   |                 | -       |   |   |   | - |   |   |   | - |   |
| Acquisition of non-controlling interest in the operating partnership       |   |            |   |   |         |   |           |                     |   |   | (2              | )      |   |        |   - |   |                     |   |   - |                |   |   | -             |   |   |                 | -       |   |   |   |   - |   |   |   | (2 | ) |
| Conversion of operating partnership units to common stock                  |   |            |   |   |         |   |   19,601  |                     |   |   | (314            | )      |   |        |   - |   |                     |   |   - |                |   |   | 314           |   |   |                 | -       |   |   |   |   - |   |   |   |   - |   |
| Preferred stock dividends                                                       |   |            |   |   |         |   |           |                     |   |   | -               |   |   |        | -        |   |                     |   | -        |                |   |   | (240          | )      |   |                 | -       |   |   |   | - |   |   |   | (240 | ) |
| Stock-based compensation                                                        |   |            |   |   |         |   |           |                     |   |   | -               |   |   |        | -        |   |                     |   | -        |                |   |   | 96            |   |   |                 | -       |   |   |   | - |   |   |   | 96 |   |
| Distributions to non-controlling interests                                      |   |            |   |   |         |   |           |                     |   |   | (160            | )      |   |        | -        |   |                     |   | -        |                |   |   | -             |   |   |                 | -       |   |   |   | - |   |   |   | (160 | ) |
| Non-controlling interests share of loss                                         |   |            |   |   |         |   |           |                     |   |   | (1,030          | )      |   |        | -        |   |                     |   | -        |                |   |   | -             |   |   |                 | -       |   |   |   | - |   |   |   | (1,030 | ) |
| Net loss                                                                        |   |            |   |   |         |   |           |                     |   |   | -               |   |   |        | -        |   |                     |   | -        |                |   |   | -             |   |   |                 | (8,272  | ) |   |   | - |   |   |   | (8,272 | ) |
| Balance, December 31, 2009                                                      |   |            | 55,172 |   |         |   | 1,645,655      |                     |   | $      | 2,036           |   |   | $           | 1        |   |                     | $      | 16       |                |   | $      | 48,563        |   |   | $                    | (52,472 | ) |   | $ | (3,095 | ) |   | $ | (4,951 | ) |
| Issuance of one-for-one stock split                                             |   |            |   |   |         |   | 1,645,655      |                     |   |   |            |   |   |        |     |   |                     |   | 18       |                |   |   | (18           | )      |   |                 | -       |   |   |   | - |   |   |   | - |   |
| Issuance of common stock                                                        |   |            |   |   |         |   | 28,500         |                     |   |   | -               |   |   |        | -        |   |                     |   | -        |                |   |   | -             |   |   |                 | -       |   |   |   | - |   |   |   | - |   |
| Conversion of operating partnership units to common stock                       |   |            |   |   |         |   |   102,896 |                     |   |   | (211            | )      |   |        |   - |   |                     |   |   - |                |   |   | 211           |   |   |                 | -       |   |   |   |   - |   |   |   |   - |   |
| Issuance of operating partnership units                                         |   |            |   |   |         |   |           |                     |   |   | 12,316          |   |   |        | -        |   |                     |   | -        |                |   |   | -             |   |   |                 | -       |   |   |   | - |   |   |   | 12,316 |   |
| Non-controlling interests in acquired properties                                |   |            |   |   |         |   |           |                     |   |   | 1,386           |   |   |        | -        |   |                     |   | -        |                |   |   | -             |   |   |                 | -       |   |   |   | - |   |   |   | 1,386 |   |
| Non-controlling interests in consolidated VIE’s                           |   |            |   |   |         |   |           |                     |   |   | 108,973         |   |   |        |     |   |                     |   |     |                |   |   |          |   |   |                 |    |   |   |   |   |   |   |   | 108,973 |   |
| Acquisition of non-controlling interest in the operating partnership            |   |            |   |   |         |   |           |                     |   |   | (21             | )      |   |        |   - |   |                     |   |   - |                |   |   | -             |   |   |                 | -       |   |   |   |   - |   |   |   | (21 | ) |
| Reclassification of non-controlling interest from temporary equity         |   |            |   |   |         |   |           |                     |   |   | 3,962           |   |   |        |   - |   |                     |   |   - |                |   |   | -             |   |   |                 | -       |   |   |   |   - |   |   |   |   3,962 |   |
| Reclassification of non-controlling interest to additional paid-in capital |   |            |   |   |         |   |           |                     |   |   | (370            | )      |   |        |   - |   |                     |   |   - |                |   |   | 370           |   |   |                 | -       |   |   |   |   - |   |   |   |   - |   |
| Repurchase of non -controlling interest in consolidated partnership   |   |            |   |   |         |   |           |                     |   |   | (1,785          | )      |   |        |   - |   |                     |   |   - |                |   |   | -             |   |   |                 | -       |   |   |   |   - |   |   |   | (1,785 | ) |
| Distributions to non-controlling interests                                 |   |            |   |   |         |   |           |                     |   |   | (514            | )      |   |        | -        |   |                     |   | -        |                |   |   | -             |   |   |                 | -       |   |   |   | - |   |   |   | (514 | ) |
| Non-controlling interests share of loss                                         |   |            |   |   |         |   |           |                     |   |   | (6,959          | )      |   |        | -        |   |                     |   | -        |                |   |   | -             |   |   |                 | -       |   |   |   | - |   |   |   | (6,959 | ) |
| Preferred interest in consolidated subsidiary                                   |   |            |   |   |         |   |           |                     |   |   | 2,500           |   |   |        |     |   |                     |   |     |                |   |   |          |   |   |                 |    |   |   |   |   |   |   |   | 2,500 |   |
| Preferred stock dividends                                                       |   |            |   |   |         |   |           |                     |   |   | -               |   |   |        | -        |   |                     |   | -        |                |   |   | (240          | )      |   |                 | -       |   |   |   | - |   |   |   | (240 | ) |
| Stock-based compensation                                                        |   |            |   |   |         |   |           |                     |   |   | -               |   |   |        | -        |   |                     |   | -        |                |   |   | 181           |   |   |                 | -       |   |   |   | - |   |   |   | 181 |   |
| Net loss                                                                        |   |            |   |   |         |   |           |                     |   |   | -               |   |   |        | -        |   |                     |   | -        |                |   |   | -             |   |   |                 | (8,037  | ) |   |   | - |   |   |   | (8,037 | ) |
| Balance, December 31, 2010                                                      |   |            | 55,172 |   |         |   | 3,422,706      |                     |   | $      | 121,313         |   |   | $           | 1        |   |                     | $      | 34       |                |   | $      | 49,067        |   |   | $                    | (60,509 | ) |   | $ | (3,095 | ) |   | $ | 106,811 |   |

----

|                                                                                                                |   | Years ended  |    |
|---------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|
|                                                                                                                |   | December 31, |    |
|                                                                                                                |   | 2010         |    |   | 2009 |   |
| Cash flows from operating activities:                                                                               |   |         |    |   |   |   |
| Net loss                                                                                                            |   | $            | (14,996 | ) |   | $ | (9,302 | ) |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities:                           |   |         |    |   |   |   |   |   |
| Depreciation and amortization                                                                                       |   |         | 23,791  |   |   |   | 15,160 |   |
| Impairment expense                                                                                                  |   |         | 3,387   |   |   |   | - |   |
| Gain on sales of real estate asset                                                                                  |   |         | (4,315  | ) |   |   | - |   |
| Income tax benefit                                                                                                  |   |         | (5,108  | ) |   |   | (5,521 | ) |
| Deferred rental income                                                                                              |   |         | (446    | ) |   |   | (88 | ) |
| Stock-based compensation expense                                                                                    |   |         | 181     |   |   |   | 96 |   |
| Amortization of note payable premiums, included in interest expense                                                 |   |         | -       |   |   |   | (19 | ) |
| Changes in operating assets and liabilities:                                                                        |   |         |    |   |   |   |   |   |
| Increase in tenant and other receivables                                                                            |   |         | 280     |   |   |   | (90 | ) |
| Increase in related party receivables                                                                               |   |         | (226    | ) |   |   | - |   |
| Increase in accounts payable                                                                                        |   |         | 4,944   |   |   |   | 1,615 |   |
| Increase in accounts payable to related parties                                                                     |   |         | 317     |   |   |   | - |   |
| Decrease (increase) in prepaid and other assets                                                                     |   |         | 105     |   |   |   | (774 | ) |
| Decrease in accrued and other liabilities                                                                           |   |         | (246    | ) |   |   | (1,265 | ) |
| Net cash provided by (used in) operating activities:                                                                |   |         | 7,668   |   |   |   | (188 | ) |
|                                                                                                                |   |         |    |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                               |   |         |    |   |   |   |   |   |
| Real estate acquisitions                                                                                            |   |         | (2,017  | ) |   |   | - |   |
| Proceeds received from sales of real estate asset                                                                   |   |         | 10,166  |   |   |   | - |   |
| Capital improvements to real estate assets                                                                          |   |         | (3,567  | ) |   |   | (1,947 | ) |
| Investments in unconsolidated real estate assets                                                                    |   |         | (82     | ) |   |   | - |   |
| Proceeds received related to insurance claims                                                                       |   |         | -       |   |   |   | 2,700 |   |
| Payments for damages related to insurance claims                                                                    |   |         | (30     | ) |   |   | (1,726 | ) |
| Net cash provided by (used in) investing activities:                                                                |   |         | 4,470   |   |   |   | (973 | ) |
|                                                                                                                |   |         |    |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                               |   |         |    |   |   |   |   |   |
| Proceeds from borrowings                                                                                            |   |         | 8,194   |   |   |   | 4,847 |   |
| Repayment of borrowings – property sales                                                                      |   |         | (5,067  | ) |   |   | - |   |
| Repayment of borrowings – refinances                                                                          |   |         | -       |   |   |   | (1,474 | ) |
| Repayment of borrowings – scheduled payments                                                                  |   |         | (6,537  | ) |   |   | (2,781 | ) |
| Repayment of borrowings – other                                                                               |   |         | (1,260  | ) |   |   | (3,757 | ) |
| Repurchase of preferred partnership interest                                                                        |   |         | (1,785  | ) |   |   | - |   |
| Proceeds from partial sale of consolidated partnership interests                                                    |   |         | 2,500   |   |   |   | 4,000 |   |
| Proceeds from issuance of operating partnership units                                                               |   |         | 727     |   |   |   | - |   |
| Acquisition of non-controlling in the operating partnership                                                         |   |         | (21     | ) |   |   | (2 | ) |
| Acquisition of notes receivable                                                                                     |   |         | (2,905  | ) |   |   | - |   |
| Dividend payments to preferred stockholders                                                                         |   |         | (302    | ) |   |   | (152 | ) |
| Distributions to non-controlling interests                                                                          |   |         | (3,653  | ) |   |   | (158 | ) |
| Change to restricted cash                                                                                           |   |         | (488    | ) |   |   | (992 | ) |
| Net cash used in financing activities:                                                                              |   |         | (10,597 | ) |   |   | (469 | ) |
|                                                                                                                |   |         |    |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                                                    |   |         | 1,541   |   |   |   | (1,630 | ) |
|                                                                                                                |   |         |    |   |   |   |   |   |
| Cash and cash equivalents, beginning of year                                                                        |   |         | 462     |   |   |   | 2,092 |   |
|                                                                                                                |   |         |    |   |   |   |   |   |
| Cash and cash equivalents, end of year                                                                              |   | $            | 2,003   |   |   | $ | 462 |   |
|                                                                                                                |   |         |    |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:                                             |   |         |    |   |   |   |   |   |
|                                                                                                                |   |         |    |   |   |   |   |   |
| Conversion of operating partnership units to common stock                                                           |   | $            | 211     |   |   | $ | 314 |   |
| Issuance of operating partnership units in connection with Evergreen acquisition                                    |   |         | 8,000   |   |   |   | - |   |
| Issuance of operating partnership units in connection with notes receivable and account receivable acquisition |   |         | 3,081   |   |   |   | - |   |
| Issuance of operating partnership units in connection with real estate acquisitions                                 |   |         | 2,586   |   |   |   | - |   |
| Issuance of operating partnership units in connection with investment in unconsolidated real estate asset           |   |         | 28      |   |   |   | - |   |
| Debt assumed in connection with real estate acquisition                                                             |   |         | 6,297   |   |   |   | - |   |
| Conversion of accounts payable to notes payable                                                                     |   |         | 498     |   |   |   | - |   |
| Financing in connection with investment in unconsolidated real estate asset                                         |   |         | 33      |   |   |   | - |   |
| Financing in connection with Evergreen acquisition                                                                  |   |         | 9,500   |   |   |   | - |   |
|                                                                                                                |   |         |    |   |   |   |   |   |
| Cash paid for interest                                                                                              |   | $            | 16,767  |   |   | $ | 13,017 |   |
| Cash paid for income taxes                                                                                          |   | $            | 70      |   |   | $ | 108 |   |

----

----

----

----

----

|                                    |   | Remaining   |   |   | Fair           |   |
|-----------------------------------------|--------|-------------|--------|--------|----------------|--------|
| Asset Class                             |   | Useful Life |   |   | Value          |   |
|                                    |   |        |   |   | (in thousands) |   |
| Tangible Assets:                        |   |        |   |   |           |   |
| Fractional Real Estate Interests        |   | Various     |   |   | $              | 375    |   |
| Furniture, fixtures and equipment       |   | Various     |   |   |           | 148    |   |
| Total tangible assets acquired          |   |        |   |   |           | 523    |   |
|                                    |   |        |   |   |           |   |   |
| Intangible Assests:                     |   |        |   |   |           |   |   |
| Property management contracts           |   |        | 12     |   |           |   | 13,474 |   |
| Goodwill, including assembled workforce |   |        | -      |   |           |   | 4,003 |   |
| Total intangible assets acquired        |   |        |   |   |           |   | 17,477 |   |
|                                    |   |        |   |   |           |   |   |   |
| Total purchase price                    |   |        |   |   |           | $      | 18,000 |   |

|                                                |   | Fair           |   |
|-----------------------------------------------------|--------|----------------|--------|
| Consideration                                       |   | Value          |   |
|                                                |   | (in thousands) |   |
| Promissory Note                                     |   | $              | 9,500  |   |
| Issuance of 1.6 million operating partnership units |   |           | 8,000  |   |
| Assumption of debt                                  |   |           | 500    |   |
| Total consideration                                 |   | $              | 18,000 |   |

----

| Pro forma statement of operations (unaudited) |
|-----------------------------------------------|
| for the year ended December 31, 2010          |
| (in thousands)                                |

| Total Revenue                                       |   | $      | 76,509   |   |
|-----------------------------------------------------|--------|--------|----------|--------|
| Total Expenses                                      |   |   | (108,055 | )      |
|                                                |   |   |     |   |
| Net Income before Noncontrolling Interest & Tax |   |   | (31,546  | )      |
|                                                |   |   |     |   |
| Discontinued Operations                             |   |   | 2,847    |   |
| Deferred Tax Benefit                                |   |   | 6,670    |   |
| Non-Controlling Interest                            |   |   | 13,652   |   |
| Proforma net loss                                   |   | $      | (8,377   | )      |

| Total Revenue                                     |   | $      | 23,126  |   |
|---------------------------------------------------|--------|--------|---------|--------|
| Total Expenses                                    |   |   | (28,021 | )      |
| Net Loss before Noncontrolling Interest & Tax |   |   | (4,895  | )      |
|                                              |   |   |    |   |
| Deferred Tax Benefit                              |   |   | (671    | )      |
| Non-Controlling Interest                          |   |   | 2,652   |   |
|                                              |   |   |    |   |
| Evergreen component of net loss                   |   | $      | (2,914  | )      |

----

| Purchase price consideration                                          |   |   |   |   |
|-----------------------------------------------------------------------|--------|--------|--------|--------|
|           (in thousands) |   |   |   |   |
| Cash                                                                  |   | $      | 267    |   |
| Debt assumed                                                          |   |   | 5,350  |   |
| Equity contribution from third party investor                         |   |   | 1,000  |   |
| Operating partnership units                                           |   |   | 1019   |   |
| Total cost of acquisition                                             |   | $      | 7,636  |   |

----

| Year Ending December 31, |   | AmortizationExpense (in-placelease value) |   |
|-------------------------------|--------|-----------------------------------------------------|--------|
| 2011                          |   |                                                | 374    |   |
| 2012                          |   |                                                | 343    |   |
| 2013                          |   |                                                | 314    |   |
| 2014                          |   |                                                | 289    |   |
| 2015                          |   |                                                | 67     |   |
|                     |   |                                                | 1,387  |   |

----

|                                                              |   | December 31,   |    |
|-------------------------------------------------------------------|--------|----------------|---------|
| Variable interest entity amounts                                  |   | 2010           |    |
|                                                              |   | (in thousands) |    |
| Assets                                                            |   |           |    |   |
| Restricted Cash                                                   |   | $              | 4,016   |   |
| Receivables                                                       |   |           | 1,515   |   |
| Fixed Assets Net of depreciation                                  |   |           | 372,908 |   |
| Other Assets                                                      |   |           | 8,858   |   |
| Total Assets                                                      |   | $              | 387,297 |   |
|                                                              |   |           |    |   |
| Liabilities                                                       |   |           |    |   |
| Accounts payable                                                  |   |           | 5,734   |   |
| Notes payable                                                     |   |           | 268,776 |   |
| Other liabilities                                                 |   |           | 1,809   |   |
| Total liabilities                                                 |   | $              | 276,319 |   |
|                                                              |   |           |    |   |
| Variable interest entity net carrying amount at December 31, 2010 |   | $              | 110,978 |   |

----

| 2010             |   | Land   |    |   | Building andImprovements |   |    | Total Cost |   |   | AccumulatedDepreciation |   |   | Net RecordedValue |    |
|------------------|--------|--------|---------|--------|--------------------------|--------|---------|------------|--------|--------|-------------------------|--------|--------|-------------------|---------|
|             |   |   |    |   |                     |   |    |       |   |   |                    |   |   |              |    |
| ASR Owned        |   |   |    |   |                     |   |    |       |   |   |                    |   |   |              |    |
| Office           |   | $      | 54,062  |   |                     | $      | 163,086 |       |   | $      | 217,148                 |   |   | $                 | (73,250 | ) |   | $ | 143,898 |   |
| Industrial       |   |   | 8,709   |   |                     |   | 31,866  |       |   |   | 40,575                  |   |   |              | (11,071 | ) |   |   | 29,504 |   |
| Shopping Center  |   |   | 1,100   |   |                     |   | 2,672   |       |   |   | 3,772                   |   |   |              | (837    | ) |   |   | 2,935 |   |
| Self-Storage     |   |   | 536     |   |                     |   | 2,216   |       |   |   | 2,752                   |   |   |              | (38     | ) |   |   | 2,714 |   |
| Other            |   |   |    |   |                     |   | 654     |       |   |   | 654                     |   |   |              | (448    | ) |   |   | 206 |   |
| ASR total        |   |   | 64,407  |   |                     |   | 200,494 |       |   |   | 264,901                 |   |   |              | (85,644 | ) |   |   | 179,257 |   |
|             |   |   |    |   |                     |   |    |       |   |   |                    |   |   |              |    |   |   |   |   |   |
| VIE total Note 3 |   |   | 72,001  |   |                     |   | 309,353 |       |   |   | 381,354                 |   |   |              | (8,446  | ) |   |   | 372,908 |   |
|             |   |   |    |   |                     |   |    |       |   |   |                    |   |   |              |    |   |   |   |   |   |
| Total            |   | $      | 136,408 |   |                     | $      | 509,847 |       |   | $      | 646,255                 |   |   | $                 | (94,090 | ) |   | $ | 552,165 |   |
|             |   |   |    |   |                     |   |    |       |   |   |                    |   |   |              |    |   |   |   |   |   |
| 2009             |   |   |    |   |                     |   |    |       |   |   |                    |   |   |              |    |   |   |   |   |   |
| ASR Owned        |   |   |    |   |                     |   |    |       |   |   |                    |   |   |              |    |   |   |   |   |   |
|             |   |   |    |   |                     |   |    |       |   |   |                    |   |   |              |    |   |   |   |   |   |
| Office           |   |   | 48,762  |   |                     |   | 157,857 |       |   |   | 206,619                 |   |   |              | (62,298 | ) |   |   | 144,321 |   |
| Industrial       |   |   | 8,709   |   |                     |   | 31,781  |       |   |   | 40,490                  |   |   |              | (9,148  | ) |   |   | 31,342 |   |
| Shopping Center  |   |   | 1,100   |   |                     |   | 2,658   |       |   |   | 3,758                   |   |   |              | (594    | ) |   |   | 3,164 |   |
| Other            |   |   |    |   |                     |   | 469     |       |   |   | 469                     |   |   |              | (364    | ) |   |   | 105 |   |
| Total            |   | $      | 58,571  |   |                     | $      | 192,765 |       |   | $      | 251,336                 |   |   | $                 | (72,404 | ) |   | $ | 178,932 |   |

| Year EndingDecember 31, |   | FutureMinimum Rents |   |
|-------------------------|--------|---------------------|--------|
| 2011                    |   | $                   | 28,342 |   |
| 2012                    |   |                | 20,339 |   |
| 2013                    |   |                | 13,849 |   |
| 2014                    |   |                | 8,201  |   |
| 2015                    |   |                | 4,248  |   |
| Thereafter              |   |                | 4,084  |   |
|                    |   | $                   | 79,063 |   |

----

|                                             |   | December 31,   |   |
|--------------------------------------------------|--------|----------------|--------|
|                                             |   | 2009           |   |
|                                             |   | (In thousands) |   |
| Real Estate                                      |   | $              | 5,847  |   |
| Other                                            |   |           | 517    |   |
| Real estate held for sale                        |   | $              | 6,364  |   |
|                                             |   |           |   |   |
| Note Payable                                     |   | $              | 5,090  |   |
| Accounts payable                                 |   |           | 515    |   |
| Accrued and other liabilities                    |   |           | 486    |   |
| Liabilities related to real estate held for sale |   | $              | 6,091  |   |

|                                                                           |   | Years ended    |   |
|--------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                           |   | December 31,   |   |
|                                                                           |   | 2010           |   |   | 2009 |   |
|                                                                           |   | (In thousands) |   |
| Rental Revenue                                                                 |   | $              | 482    |   |   | $ | 1,909 |   |
| Expenses (1)                                                                   |   |           | (309   | ) |   |   | (1,609 | ) |
| Income from discontinued operations before gain on sale and income tax expense |   |           | 173    |   |   |   | 300 |   |
| Gain on sale of discontinued operations                                        |   |           | 4,315  |   |   |   | - |   |
| Income tax expense                                                             |   |           | (1,641 | ) |   |   | (110 | ) |
| Income from discontinued operations                                            |   | $              | 2,847  |   |   | $ | 190 |   |

----

|                  |   |         |   |   | Fair Value Measurement |   |   |             |   |
|-----------------------|--------|--------------|--------|--------|------------------------|--------|--------|------------------|--------|
|                  |   | Net Carrying |   |   | Recorded Using         |   |   | Total Impairment |   |
|                  |   | Value        |   |   | Level 1                |   |   | Level 2          |   |   | Level 3 |   |   | Charges |   |
| Purchased intangibles |   | $            | 462    |   |                   |   |   |             |   |   |   |   |   |   | 462 |   |   | $ | 3,387.00 |   |

----

----

|                                    |   |                                               |   | 2010             |    |   | 2009          |   |
|-----------------------------------------|--------|----------------------------------------------------|--------|------------------|---------|--------|---------------|--------|
|  Property (unless otherwise noted) |   | Maturity Date                                      |   | PrincipalBalance |    |   | Interest Rate |   |   | PrincipalBalance |   |   | InterestRate |   |
| Fixed Rate                              |   |                                               |   |             |    |   |          |   |   |   |   |   |   |   |
| Pacific Spectrum (1)                    |   | 6/10/2010                                          |   |             | 5,191   |   |          |   | 8.02 | % |   |   | 5,248 |   |   |   | 8.02 | % |
| Corporate – Unsecured (2)         |   | 2/19/2011                                          |   |             | 447     |   |          |   | 3.40 | % |   |   | - |   |   |   | - |   |
| Fountain View Place (3)                 |   | 4/29/2011                                          |   |             | 1,031   |   |          |   | 10.00 | % |   |   | 1,423 |   |   |   | 10.00 | % |
| Corporate – Secured (4)           |   | 5/12/2011                                          |   |             | 950     |   |          |   | 8.75 | % |   |   | - |   |   |   | - |   |
| Sabo Road Self Storage (5)              |   | 7/31/2011                                          |   |             | 1,974   |   |          |   | 7.42 | % |   |   | - |   |   |   | - |   |
| Bristol Bay                             |   | 8/1/2011                                           |   |             | 6,792   |   |          |   | 7.58 | % |   |   | 6,899 |   |   |   | 7.58 | % |
| Technology (1)                          |   | 8/1/2011                                           |   |             | 7,091   |   |          |   | 7.44 | % |   |   | 7,131 |   |   |   | 7.44 | % |
| Corporate – Secured (6)           |   | 9/18/2011                                          |   |             | 890     |   |          |   | 8.75 | % |   |   | 890 |   |   |   | 8.75 | % |
| Creekside (1)                           |   |      12/1/2011            |   |             | 5,747   |   |          |   | 7.17 | % |   |   | 5,814 |   |   |   | 7.17 | % |
| Northwest Spectrum                      |   | 12/3/2011                                          |   |             | 750     |   |          |   | 8.75 | % |   |   | 750 |   |   |   | 8.75 | % |
| Corporate – Unsecured (7)         |   | 5/1/2012                                           |   |             | 40      |   |          |   | 4.00 | % |   |   | - |   |   |   | - |   |
| Corporate – Unsecured (7)         |   | 5/1/2012                                           |   |             | 31      |   |          |   | 0.00 | % |   |   | - |   |   |   | - |   |
| 16350 Park Ten Place                    |   | 5/11/2012                                          |   |             | 4,402   |   |          |   | 7.45 | % |   |   | 4,466 |   |   |   | 7.45 | % |
| 16360 Park Ten Place                    |   | 5/11/2012                                          |   |             | 3,449   |   |          |   | 7.45 | % |   |   | 3,499 |   |   |   | 7.45 | % |
| 2855 Mangum                             |   | 5/11/2012                                          |   |             | 2,535   |   |          |   | 7.45 | % |   |   | 2,575 |   |   |   | 7.45 | % |
| 2855 Mangum                             |   | 5/11/2012                                          |   |             | 1,380   |   |          |   | 6.00 | % |   |   | 1,422 |   |   |   | 6.00 | % |
| 6430 Richmond Atrium                    |   | 5/11/2012                                          |   |             | 2,127   |   |          |   | 7.45 | % |   |   | 2,161 |   |   |   | 7.45 | % |
| Corporate – Unsecured (8)         |   | 5/31/2012                                          |   |             | 1,000   |   |          |   | 9.50 | % |   |   | 500 |   |   |   | 11.00 | % |
| Southwest Pointe                        |   | 6/1/2012                                           |   |             | 2,671   |   |          |   | 7.33 | % |   |   | 2,710 |   |   |   | 7.33 | % |
| Corporate-Secured (9)                   |   | 6/15/2012                                          |   |             | 992     |   |          |   | 4.50 | % |   |   | 992 |   |   |   | 4.50 | % |
| Corporate – Unsecured (7)         |   | 6/30/2012                                          |   |             | 51      |   |          |   | 0.00 | % |   |   | - |   |   |   | - |   |
| 16350 Park Ten Place                    |   |      8/11/2012            |   |             | 484     |   |          |   | 7.45 | % |   |   | 492 |   |   |   | 7.45 | % |
| 16360 Park Ten Place                    |   | 8/11/2012                                          |   |             | 380     |   |          |   | 7.45 | % |   |   | 386 |   |   |   | 7.45 | % |
| Corporate – Secured (10)          |   | 2/1/2013                                           |   |             | 1,736   |   |          |   | 5.50 | % |   |   | 1,950 |   |   |   | 7.50 | % |
| Corporate – Secured (4)           |   | 3/8/2013                                           |   |             | 863     |   |          |   | 8.75 | % |   |   | - |   |   |   | - |   |
| 11500 Northwest Freeway                 |   | 6/1/2014                                           |   |             | 4,008   |   |          |   | 5.93 | % |   |   | 4,079 |   |   |   | 5.93 | % |
| 11500 Northwest Freeway                 |   |        6/1/2014 |   |             | 290     |   |          |   | 5.93 | % |   |   | 295 |   |   |   | 5.93 | % |
| Morenci                                 |   | 7/1/2014                                           |   |             | 1,632   |   |          |   | 7.25 | % |   |   | 1,689 |   |   |   | 7.25 | % |
| Northwest Corporate Center (1)          |   | 8/1/2014                                           |   |             | 5,312   |   |          |   | 6.26 | % |   |   | 5,370 |   |   |   | 6.26 | % |
| 14741 Yorktown                          |   | 9/1/2014                                           |   |             | 8,545   |   |          |   | 5.32 | % |   |   | 8,600 |   |   |   | 5.32 | % |
| Corporate – Unsecured             |   | 10/1/2014                                          |   |             | 220     |   |          |   | 7.28 | % |   |   | - |   |   |   | - |   |
| 8100 Washington                         |   | 2/22/2015                                          |   |             | 2,156   |   |          |   | 5.59 | % |   |   | 2,196 |   |   |   | 5.59 | % |
| 8300 Bissonnet (1)                      |   | 5/1/2015                                           |   |             | 4,484   |   |          |   | 5.51 | % |   |   | 4,527 |   |   |   | 5.51 | % |
| Corporate – Unsecured (7)         |   | 6/1/2015                                           |   |             | 282     |   |          |   | 5.00 | % |   |   | - |   |   |   | - |   |
| Corporate – Unsecured (7)         |   | 6/1/2015                                           |   |             | 52      |   |          |   | 5.00 | % |   |   | - |   |   |   | - |   |
| 2620-2630 Fountain View (11)            |   | 6/30/2015                                          |   |             | 5,350   |   |          |   | 7.00 | % |   |   | - |   |   |   | - |   |
| 1501 Mockingbird                        |   | 7/1/2015                                           |   |             | 3,189   |   |          |   | 5.28 | % |   |   | 3,239 |   |   |   | 5.28 | % |
| 5450 Northwest Central                  |   | 9/1/2015                                           |   |             | 2,585   |   |          |   | 5.38 | % |   |   | 2,631 |   |   |   | 5.38 | % |
| Corporate – Unsecured (7)         |   | 10/1/2015                                          |   |             | 25      |   |          |   | 5.00 | % |   |   | - |   |   |   | - |   |
| Corporate – Unsecured (7)         |   | 10/1/2015                                          |   |             | 88      |   |          |   | 17.52 | % |   |   | - |   |   |   | - |   |
| Corporate – Secured (12)          |   | 12/22/2015                                         |   |             | 2,900   |   |          |   | 5.00 | % |   |   | - |   |   |   | - |   |
| 800/888 Sam Houston Parkway             |   | 12/29/2015                                         |   |             | 4,528   |   |          |   | 6.25 | % |   |   | 4,638 |   |   |   | 6.25 | % |
| 2401 Fountain View                      |   | 3/1/2016                                           |   |             | 11,967  |   |          |   | 5.82 | % |   |   | 12,139 |   |   |   | 5.82 | % |
| 12000 Westheimer/2470 Gray Falls        |   | 1/1/2017                                           |   |             | 7,267   |   |          |   | 5.70 | % |   |   | 7,350 |   |   |   | 5.70 | % |
| 6420 Richmond Atrium                    |   | 6/5/2017                                           |   |             | 6,286   |   |          |   | 5.87 | % |   |   | 6,364 |   |   |   | 5.87 | % |
| 7700 Irvine Center                      |   | 8/1/2017                                           |   |             | 45,000  |   |          |   | 5.99 | % |   |   | 45,000 |   |   |   | 5.99 | % |
| Fountain View Place                     |   | 4/29/2018                                          |   |             | 12,361  |   |          |   | 6.50 | % |   |   | 12,521 |   |   |   | 6.50 | % |
| Corporate – Secured (5)           |   | 12/31/2019                                         |   |             | 9,410   |   |          |   | 5.00 | % |   |   | - |   |   |   | - |   |
|                                    |   | Subtotal                                           |   | $                | 190,941 |   |          |   |   |   |   | $ | 169,946 |   |   |   |   |   |
| Variable Rate                           |   |                                               |   |             |    |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Beltway Industrial (13)                 |   | 5/9/2010                                           |   |             | 17,170  |   |          |   | 7.00 | % |   |   | 17,170 |   |   |   | 7.00 | % |
| Corporate Unsecured (8)                 |   | 5/31/10                                            |   |             | -       |   |          |   |   |   |   |   | 500 |   |   |   | 6.00 | % |
| Northwest Spectrum                      |   | 4/19/2012                                          |   |             | 2,820   |   |          |   | 2.90 | % |   |   | 3,013 |   |   |   | 2.90 | % |
| Windrose Plaza                          |   | 4/19/2012                                          |   |             | 2,612   |   |          |   | 2.90 | % |   |   | 2,791 |   |   |   | 2.90 | % |
| Corporate – Unsecured             |   | 12/12/2013                                         |   |             | 500     |   |          |   | 6.00 | % |   |   | 500 |   |   |   | 6.00 | % |
|                                    |   | Subtotal                                           |   | $                | 23,102  |   |          |   |   |   |   | $ | 23,974 |   |   |   |   |   |
| Loan Premium                            |   |                                               |   |             | -       |   |          |   |   |   |   |   | - |   |   |   |   |   |
| ASR Notes Payable                       |   | Total                                              |   | $                | 214,043 |   |          |   |   |   |   | $ | 193,920 |   |   |   |   |   |
| VIE Notes Payable see Note 3            |   |                                               |   |             | 268,776 |   |          |   |   |   |   |   | - |   |   |   |   |   |
| Balance sheet Notes Payable             |   | Total                                              |   | $                | 482,819 |   |          |   |   |   |   | $ | 193,920 |   |   |   |   |   |

----

| Year Ending December 31, |   |   |    |
|--------------------------|--------|--------|---------|
| 2011                     |   |   |    |
| 2012                     |   | $      | 50,521  |   |
| 2013                     |   |   | 25,864  |   |
| 2014                     |   |   | 4,260   |   |
| 2015                     |   |   | 19,821  |   |
| Thereafter               |   |   | 24,530  |   |
| Total                    |   |   | 89,047  |   |
|                     |   | $      | 214,043 |   |

----

|                       |   | Balance at   |   |
|----------------------------|--------|--------------|--------|
|                       |   | December 31, |   |
| Property securing debt     |   | 2010         |   |
| Spectrum                   |   | $            | 5,191  |   |
| Technology                 |   | $            | 7,091  |   |
| Creekside                  |   | $            | 5,747  |   |
| Northwest Corporate Center |   | $            | 5,312  |   |
| Bissonnet                  |   | $            | 4,484  |   |
|                       |   | $            | 27,825 |   |

| Beginning balance January 1, 2009  |   |   | 6,392  |   |   |   |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Other issuances                    |   |   | 23     |   |   |   |   |
| Balance December 31, 2009          |   |   | 6,415  |   |   |   |   |
| Issued for Evergreen acquisition   |   |   | 1,600  |   |   |   |   |
| Issued for other acquisitions      |   |   | 1,037  |   |   |   |   |
| Other issuances                    |   |   | 57     |   |   |   |   |
| Balance December 31, 2010          |   |   | 9,109  |   |   |   |   |
|                               |   |   |   |   |   |   |   |
|                               |   |   |   |   |   |   |   |
| Ownership of OP Units              |   |   |   |   |   |   |   |
|                               |   |   |   |   |   |   |   |
| ASR                                |   |   | 5,936  |   |   |   | 65     | % |
| Others (non-controlling interests) |   |   | 3,173  |   |   |   | 35     | % |
|                               |   |   | 9,109  |   |   |   | 100    | % |

----

|                                                                                                      |   | December 31,   |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                                                      |   | 2010           |   |   | 2009 |   |
|                                                                                                      |   | (in thousands) |   |
| Net loss attributable to the Company                                                                      |   | $              | (8,037 | ) |   | $ | (8,272 | ) |
| Increase in the Company’s paid-in capital on exchange of OP Units for shares of Common Stock        |   |           | 211    |   |   |   | 314 |   |
| Increase in the Company's paid-in-capital on reclassification of preferred interest from temporary equity |   |           | 370    |   |   |   | - |   |
| Change from net loss attributable to the Company on exchange of OP Units for shares of Common Stock       |   | $              | (7,456 | ) |   | $ | (7,958 | ) |

|                        |   | 2010   |   |   | 2009   |   |
|-----------------------------|--------|--------|--------|--------|--------|--------|
| Current expense (benefit):  |   |   |   |   |   |   |
| Federal                     |   | $      | -      |   |   | $      | - |   |
| State                       |   |   | 163    |   |   |   | 168 |   |
|                        |   | $      | 163    |   |   | $      | 168 |   |
|                        |   |   |   |   |   |   |   |   |
| Deferred expense (benefit): |   |   |   |   |   |   |   |   |
| Federal                     |   | $      | (4,608 | )      |   | $      | (5,116 | ) |
| State                       |   |   | (663   | )      |   |   | (573 | ) |
|                        |   | $      | (5,271 | )      |   | $      | (5,689 | ) |

|                                                  |   | December 31,2010 |   |   | December 31,2009 |   |
|-------------------------------------------------------|--------|------------------|--------|--------|------------------|--------|
| Expected income tax benefit at statutory federal rate |   | $                | (6,959 | )      |             | $      | (5,032 | ) |
| Permanent differences:                                |   |             |   |   |             |   |   |   |
| Non-controlling interest                              |   |             | 2,170  |   |             |   | 229 |   |
| Note premium                                          |   |             | -      |   |             |   | (6 | ) |
| Meals and entertainment                               |   |             | 14     |   |             |   | 16 |   |
| Stock-based compensation                              |   |             | 22     |   |             |   | 2 |   |
| Return to provision                                   |   |             | (20    | )      |             |   | (6 | ) |
| State income tax benefit                              |   |             | (335   | )      |             |   | (288 | ) |
| Tax credits                                           |   |             | -      |   |             |   | (85 | ) |
| Other                                                 |   |             | -      |   |             |   | (351 | ) |
| Income tax benefit                                    |   | $                | (5,108 | )      |             | $      | (5,521 | ) |

----

|                           |   | December 31, 2010 |   |   | December 31, 2009 |   |
|--------------------------------|--------|-------------------|--------|--------|-------------------|--------|
| Deferred tax assets:           |   |              |   |   |              |   |
| Net operating losses           |   | $                 | 9,805  |   |              | $      | 8,335 |   |
| Built-in gains                 |   |              | 3,684  |   |              |   | 850 |   |
| Intangible assets              |   |              | 1,151  |   |              |   | - |   |
| Allowance for bad debts        |   |              | 154    |   |              |   | 257 |   |
| Stock-based compensation       |   |              | 50     |   |              |   | - |   |
| Charitable contributions       |   |              | 8      |   |              |   | 6 |   |
| Alternative minimum tax        |   |              | 85     |   |              |   | 85 |   |
| Total deferred tax asset       |   |              | 14,937 |   |              |   | 9,533 |   |
|                           |   |              |   |   |              |   |   |   |
| Deferred tax liabilities:      |   |              |   |   |              |   |   |   |
| Straight-line rents receivable |   |              | (854   | )      |              |   | (717 | ) |
| Stock compensation             |   |              | -      |   |              |   | (3 | ) |
| Total deferred tax liabilities |   |              | (854   | )      |              |   | (720 | ) |
|                           |   |              |   |   |              |   |   |   |
| Net deferred tax asset         |   | $                 | 14,083 |   |              | $      | 8,813 |   |

|                                                                                                   |   | Years Ended December 31, |      |
|--------------------------------------------------------------------------------------------------------|--------|--------------------------|-----------|
|                                                                                                   |   | 2010                     |      |   | 2009 |   |
| Loss from continuing operations                                                                        |   | $                        | (17,843   | ) |   | $ | (9,492 | ) |
| Net loss attributable to non-controlling interests                                                     |   |                     | 7,795     |   |   |   | 1,052 |   |
| Loss from continuing operations attributable to American Spectrum Realty, Inc. common stockholders     |   |                     | (10,048   | ) |   |   | (8,440 | ) |
| Discontinued operations:                                                                               |   |                     |      |   |   |   |   |   |
| Income from discontinued operations                                                                    |   |                     | 173       |   |   |   | 300 |   |
| Gain on sale of discontinued operations                                                                |   |                     | 4,315     |   |   |   | - |   |
| Income tax expense                                                                                     |   |                     | (1,641    | ) |   |   | (110 | ) |
| Net income attributable to non-controlling interests                                                   |   |                     | (836      | ) |   |   | (22 | ) |
| Income from discontinued operations                                                                    |   |                     | 2,011     |   |   |   | 168 |   |
| Preferred stock dividend                                                                               |   |                     | (240      | ) |   |   | (240 | ) |
| Net loss attributable to American Spectrum Realty, Inc.                                                |   |                     |      |   |   |   |   |   |
| common stockholders                                                                                    |   | $                        | (8,277    | ) |   | $ | (8,512 | ) |
|                                                                                                   |   |                     |      |   |   |   |   |   |
| Basic and diluted per share data:                                                                      |   |                     |      |   |   |   |   |   |
| Loss from continuing operations attributable to American                                               |   |                     |      |   |   |   |   |   |
| Spectrum Realty, Inc. common stockholders                                                              |   | $                        | (3.45     | ) |   | $ | (3.00 | ) |
| Income from discontinued operations attributable to American Spectrum Realty, Inc. common stockholders |   |                     | 0.69      |   |   |   | 0.06 |   |
| Net loss attributable to American Spectrum Realty, Inc.                                                |   |                     |      |   |   |   |   |   |
| common stockholders                                                                                    |   | $                        | (2.76     | ) |   | $ | (2.94 | ) |
|                                                                                                   |   |                     |      |   |   |   |   |   |
| Basic weighted average shares used                                                                     |   |                     | 2,916,145 |   |   |   | 2,812,048 |   |

----

|             |   | Year Ended December 31, |      |
|------------------|--------|-------------------------|-----------|
|             |   | 2010                    |      |   | 2009 |   |
| Preferred shares |   |                    | 55,172    |   |   |   | 55,172 |   |
| Stock Options    |   |                    | 58,750    |   |   |   | 58,750 |   |
| OP Units         |   |                    | 3,172,675 |   |   |   | 744,497 |   |
| Total            |   |                    | 3,286,597 |   |   |   | 858,419 |   |

|                       |   | Years EndedDecember 31, |   |
|----------------------------|--------|-------------------------|--------|
|                       |   | 2010                    |   |   | 2009 |   |
|                       |   | (in thousands)          |   |
| General and administrative |   |                    | 181    |   |   |   | 96 |   |
| Total                      |   | $                       | 181    |   |   | $ | 96 |   |

----

|                            |   |        |   |   |           |   |   |      |   |   | Weighted   |   |
|---------------------------------|--------|-------------|--------|--------|----------------|--------|--------|-----------|--------|--------|------------|--------|
|                            |   |        |   |   | Weighted       |   |   |      |   |   | Average    |   |
|                            |   | Number of   |   |   | Average        |   |   |      |   |   | Grant-date |   |
|                            |   | Options     |   |   | Exercise Price |   |   | Number of |   |   | fair value |   |
|                            |   | Outstanding |   |   | per Share      |   |   | RSAs      |   |   | per Share  |   |
| Balances at December 31, 2008   |   |        | 58,750 |   |           | $      | 11.97  |      |   |   | 14,174     |   |   |   |   |
|                            |   |        |   |   |           |   |   |      |   |   |       |   |   |   |   |
| Granted                         |   |        | -      |   |           | $      | -      |      |   |   | 11,500     |   |   | $ | 9.67 |   |
| Options Exercised               |   |        | -      |   |           | $      | -      |      |   |   |       |   |   |   |   |   |
| Restricted Stock Award Releases |   |        |   |   |           |   |   |      |   |   | (5,662     | )      |   |   |   |   |
| Forfeited/Expired               |   |        | -      |   |           | $      | -      |      |   |   |       |   |   |   |   |   |
| Terminated/cancelled            |   |        | -      |   |           |   |   |      |   |   | -          |   |   |   |   |   |
| Balances at December 31, 2009   |   |        | 58,750 |   |           | $      | 11.97  |      |   |   | 20,012     |   |   |   |   |   |
|                            |   |        |   |   |           |   |   |      |   |   |       |   |   |   |   |   |
| Granted                         |   |        | -      |   |           | $      | -      |      |   |   | 28,500     |   |   | $ | 13.76 |   |
| Options Exercised               |   |        | -      |   |           | $      | -      |      |   |   |       |   |   |   |   |   |
| Restricted Stock Award Releases |   |        |   |   |           |   |   |      |   |   | (9,500     | )      |   |   |   |   |
| Forfeited/Expired               |   |        | -      |   |           | $      | -      |      |   |   |       |   |   |   |   |   |
| Terminated/cancelled            |   |        | -      |   |           |   |   |      |   |   | -          |   |   |   |   |   |
| Balances at Dec 31, 2010        |   |        | 58,750 |   |           | $      | 11.97  |      |   |   | 39,012     |   |   |   |   |   |

----

|            |               |         |        |   | Number      |             |   | Weighted   |           |   |     |   |
|-----------------|--------------------|--------------|-------------|--------|-------------|------------------|--------|------------|----------------|--------|----------|--------|
|            |               |         |        |   | Outstanding |             |   | Average    |           |   | Weighted |   |
|            |               |         |        |   | and         |             |   | Remaining  |           |   | Average  |   |
| Exercise Prices |               |         | Exercisable |   |        | Contractual Term |   |       | Exercise Price |   |
|            |               |         |        |   |        |             |   | (in years) |           |   |     |   |
| $4.50           |     |   $6.10 |        |   |        | 25,000           |   |       |           | 3.50   |     |   | $ | 5.33 |   |
| $9.13           |               | $13.58       |        |   |        | 22,500           |   |       |           | 3.90   |     |   | $ | 10.32 |   |
| $30.00          |               | $30.00       |        |   |        | 11,250           |   |       |           | 1.04   |     |   | $ | 30.00 |   |
| $5.40           |               | $30.00       |        |   |        | 58,750           |   |       |           |   |     |   |   |   |   |

|                                      |   |        |   |   | Weighted   |   |
|-------------------------------------------|--------|-------------|--------|--------|------------|--------|
|                                      |   |        |   |   | Average    |   |
|                                      |   |        |   |   | Grant-date |   |
|                                      |   | Number      |   |   | fair value |   |
|                                      |   | Outstanding |   |   | per Share  |   |
| Non- vested instruments beginning of year |   |        | 20,012 |   |       | $      | 10.72 |   |
| Instruments vested during the year        |   |        | 9,500  |   |       | $      | 11.03 |   |
| Non- vested instruments end of year       |   |        | 39,012 |   |       | $      | 12.86 |   |

----

----

----

|                                                                                                    |   | AsPreviouslyReported |    |   | Adjustment |   |    | Restated |   |
|---------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|------------|--------|---------|----------|--------|
| Statement of Operations for the Three Months Ended Mar 31, 2010                                         |   |                 |    |   |       |   |    |     |   |
|                                                                                                    |   |                 |    |   |       |   |    |     |   |
| Rental revenue                                                                                          |   | $                    | 8,183   |   |       |   | -       |     |   | $ | 8,183 |   |
| Third party management and transaction revenue                                                          |   |                 | 1,104   |   |       |   | -       |     |   |   | 1,104 |   |
| Total revenues                                                                                          |   |                 | 9,211   |   |       |   | -       |     |   |   | 9,211 |   |
| Property operating expense                                                                              |   |                 | 3,625   |   |       |   | -       |     |   |   | 3,625 |   |
| Depreciation and amortization                                                                           |   |                 | 3,570   |   |       |   | 191     |     |   |   | 3,761 |   |
| Interest expense                                                                                        |   |                 | 3,400   |   |       |   | -       |     |   |   | 3,400 |   |
| Total expenses                                                                                          |   |                 | 12,217  |   |       |   | 191     |     |   |   | 12,408 |   |
| Deferred income tax benefit                                                                             |   |                 | 1,134   |   |       |   | 70      |     |   |   | 1,204 |   |
| Net income attributable to non-controlling interests                                                    |   |                 | (466    | )      |       |   | 32      |     |   |   | (434 | ) |
| Net income attributable to American Spectrum Realty, Inc.                                               |   |                 | 509     |   |       |   | (89     | )        |   |   | 420 |   |
| Net income attributable to American Spectrum Realty, Inc. common stockholders                           |   |                 | 449     |   |       |   | (89     | )        |   |   | 360 |   |
| Basic and diluted earnings per share attributable to American Spectrum Realty, Inc. common stockholders |   | $                    | 0.18    |   |       |   | (0.03   | )        |   | $ | 0.15 |   |
|                                                                                                    |   |                 |    |   |       |   |    |     |   |   |   |   |
| Statement of Operations for the Three Months Ended Jun 30, 2010                                         |   |                 |    |   |       |   |    |     |   |   |   |   |
|                                                                                                    |   |                 |    |   |       |   |    |     |   |   |   |   |
| Rental revenue                                                                                          |   | $                    | 7,603   |   |       |   | 489     |     |   | $ | 8,092 |   |
| Third party management and transaction revenue                                                          |   |                 | 1,221   |   |       |   | (19     | )        |   |   | 1,202 |   |
| Total revenues                                                                                          |   |                 | 8,837   |   |       |   | 470     |     |   |   | 9,307 |   |
| Property operating expense                                                                              |   |                 | 3,913   |   |       |   | (3      | )        |   |   | 3,910 |   |
| Depreciation and amortization                                                                           |   |                 | 3,579   |   |       |   | 496     |     |   |   | 4,075 |   |
| Interest expense                                                                                        |   |                 | 3,524   |   |       |   | 214     |     |   |   | 3,738 |   |
| Total expenses                                                                                          |   |                 | 13,532  |   |       |   | 707     |     |   |   | 14,239 |   |
| Deferred income tax benefit                                                                             |   |                 | 1,762   |   |       |   | 105     |     |   |   | 1,867 |   |
| Net loss attributable to non-controlling interests                                                      |   |                 | 878     |   |       |   | 11      |     |   |   | 889 |   |
| Net loss attributable to American Spectrum Realty, Inc.                                                 |   |                 | (2,055  | )      |       |   | (121    | )        |   |   | (2,176 | ) |
| Net loss attributable to American Spectrum Realty, Inc. common Stockholders                             |   |                 | (2,115  | )      |       |   | (121    | )        |   |   | (2,236 | ) |
| Basic and diluted earnings per share attributable to American Spectrum Realty, Inc. common stockholders |   | $                    | (0.70   | )      |       |   | (0.04   | )        |   | $ | (0.74 | ) |
|                                                                                                    |   |                 |    |   |       |   |    |     |   |   |   |   |
| Statement of Operations for the Six Months Ended Jun 30, 2010                                           |   |                 |    |   |       |   |    |     |   |   |   |   |
|                                                                                                    |   |                 |    |   |       |   |    |     |   |   |   |   |
| Rental revenue                                                                                          |   | $                    | 15,786  |   |       |   | 489     |     |   | $ | 16,275 |   |
| Third party management and transaction revenue                                                          |   |                 | 2,235   |   |       |   | 71      |     |   |   | 2,306 |   |
| Total revenues                                                                                          |   |                 | 18,048  |   |       |   | 470     |     |   |   | 18,518 |   |
| Property operating expense                                                                              |   |                 | 7,538   |   |       |   | (3      | )        |   |   | 7,535 |   |
| Depreciation and amortization                                                                           |   |                 | 7,149   |   |       |   | 687     |     |   |   | 7,836 |   |
| Interest expense                                                                                        |   |                 | 6,924   |   |       |   | 214     |     |   |   | 7,138 |   |
| Total expenses                                                                                          |   |                 | 25,749  |   |       |   | 898     |     |   |   | 26,647 |   |
| Deferred income tax benefit                                                                             |   |                 | 2,896   |   |       |   | 175     |     |   |   | 3,071 |   |
| Net loss attributable to non-controlling interests                                                      |   |                 | 412     |   |       |   | 43      |     |   |   | 455 |   |
| Net loss attributable to American Spectrum Realty, Inc.                                                 |   |                 | (1,546  | )      |       |   | (210    | )        |   |   | (1,756 | ) |
| Net loss attributable to American Spectrum Realty, Inc. common Stockholders                             |   |                 | (1,666  | )      |       |   | (210    | )        |   |   | (1,876 | ) |
| Basic and diluted earnings per share attributable to American Spectrum Realty, Inc. common stockholders |   | $                    | (.52    | )      |       |   | (.07    | )        |   | $ | (.59 | ) |
|                                                                                                    |   |                 |    |   |       |   |    |     |   |   |   |   |
| Statement of Operations for the Three Months Ended Sep 30, 2010                                         |   |                 |    |   |       |   |    |     |   |   |   |   |
|                                                                                                    |   |                 |    |   |       |   |    |     |   |   |   |   |
| Rental revenue                                                                                          |   | $                    | 8,307   |   |       |   | 8,424   |     |   | $ | 16,731 |   |
| Third party management and transaction revenue                                                          |   |                 | 973     |   |       |   | (289    | )        |   |   | 684 |   |
| Total revenues                                                                                          |   |                 | 9,420   |   |       |   | 8,135   |     |   |   | 17,555 |   |
| Property operating expense                                                                              |   |                 | 4,703   |   |       |   | 2,136   |     |   |   | 6,839 |   |
| Depreciation and amortization                                                                           |   |                 | 3,608   |   |       |   | 4,146   |     |   |   | 7,754 |   |
| Interest expense                                                                                        |   |                 | 3,494   |   |       |   | 3,318   |     |   |   | 6,812 |   |
| Total expenses                                                                                          |   |                 | 14,362  |   |       |   | 9,600   |     |   |   | 23,962 |   |
| Deferred income tax benefit                                                                             |   |                 | 1,697   |   |       |   | 105     |     |   |   | 1,802 |   |
| Net loss attributable to non-controlling interests                                                      |   |                 | 1,092   |   |       |   | 1,241   |     |   |   | 2,333 |   |
| Net loss attributable to American Spectrum Realty, Inc.                                                 |   |                 | (2,153  | )      |       |   | (119    | )        |   |   | (2,272 | ) |
| Net loss attributable to American Spectrum Realty, Inc. common Stockholders                             |   |                 | (2,213  | )      |       |   | (119    | )        |   |   | (2,332 | ) |
| Basic and diluted earnings per share attributable to American Spectrum Realty, Inc. common stockholders |   | $                    | (0.73   | )      |       |   | (.04    | )        |   | $ | (0.77 | ) |
|                                                                                                    |   |                 |    |   |       |   |    |     |   |   |   |   |
| Statement of Operations for the Nine Months Ended Sep 30, 2010                                          |   |                 |    |   |       |   |    |     |   |   |   |   |
|                                                                                                    |   |                 |    |   |       |   |    |     |   |   |   |   |
| Rental revenue                                                                                          |   | $                    | 24,093  |   |       |   | 8,913   |     |   | $ | 33,006 |   |
| Third party management and transaction revenue                                                          |   |                 | 3,208   |   |       |   | 218     |     |   |   | 3,426 |   |
| Total revenues                                                                                          |   |                 | 27,468  |   |       |   | 8,605   |     |   |   | 36,073 |   |
| Property operating expense                                                                              |   |                 | 12,241  |   |       |   | 2,133   |     |   |   | 14,374 |   |
| Depreciation and amortization                                                                           |   |                 | 10,757  |   |       |   | 4,833   |     |   |   | 15,590 |   |
| Interest expense                                                                                        |   |                 | 10,418  |   |       |   | 3,532   |     |   |   | 13,950 |   |
| Total expenses                                                                                          |   |                 | 40,111  |   |       |   | 10,498  |     |   |   | 50,609 |   |
| Deferred income tax benefit                                                                             |   |                 | 4,593   |   |       |   | 280     |     |   |   | 4,873 |   |
| Net loss attributable to non-controlling interests                                                      |   |                 | 1,504   |   |       |   | 1,284   |     |   |   | 2,788 |   |
| Net loss attributable to American Spectrum Realty, Inc.                                                 |   |                 | (3,699  | )      |       |   | (329    | )        |   |   | (4,028 | ) |
| Net loss attributable to American Spectrum Realty, Inc. common Stockholders                             |   |                 | (3,879  | )      |       |   | (329    | )        |   |   | (4,208 | ) |
| Basic and diluted earnings per share attributable to American Spectrum Realty, Inc. common stockholders |   | $                    | (1.27   | )      |       |   | (.09    | )        |   | $ | (1.36 | ) |
|                                                                                                    |   |                 |    |   |       |   |    |     |   |   |   |   |
| Balance Sheet as of March 31, 2010                                                                      |   |                 |    |   |       |   |    |     |   |   |   |   |
|                                                                                                    |   |                 |    |   |       |   |    |     |   |   |   |   |
| Real estate held for investment                                                                         |   | $                    | 252,375 |   |       |   | 21,925  |     |   | $ | 274,300 |   |
| Accumulated depreciation                                                                                |   |                 | (75,673 | )      |       |   | (4      | )        |   |   | (75,677 | ) |
| Restricted cash                                                                                         |   |                 | 992     |   |       |   | 925     |     |   |   | 1,917 |   |
| Deferred tax asset                                                                                      |   |                 | 8,348   |   |       |   | 70      |     |   |   | 8,418 |   |
| Investments in unconsolidated real estate assets from related parties                                   |   |                 | -       |   |       |   | 375     |     |   |   | 375 |   |
| Purchased intangibles subject to amortization                                                           |   |                 | 18,000  |   |       |   | (4,713  | )        |   |   | 13,287 |   |
| Goodwill                                                                                                |   |                 | -       |   |       |   | 4,003   |     |   |   | 4,003 |   |
| Prepaid and other assets, net                                                                           |   |                 | 10,956  |   |       |   | 940     |     |   |   | 118966 |   |
| Total Assets                                                                                            |   |                 | 227,944 |   |       |   | 23,521  |     |   |   | 251,465 |   |
| Notes payable                                                                                           |   |                 | 203,863 |   |       |   | 15,234  |     |   |   | 219,097 |   |
| Accounts payable                                                                                        |   |                 | 6,377   |   |       |   | 75      |     |   |   | 6,452 |   |
| Accrued and other liabilities                                                                           |   |                 | 8,431   |   |       |   | 848     |     |   |   | 9,279 |   |
| Total Liabilities                                                                                       |   |                 | 220,114 |   |       |   | 16,157  |     |   |   | 236,271 |   |
| Accumulated deficit                                                                                     |   |                 | (51,963 | )      |       |   | (89     | )        |   |   | (52,052 | ) |
| Non-controlling interests                                                                               |   |                 | 11,976  |   |       |   | 7,453   |     |   |   | 19,429 |   |
| American Spectrum Realty, Inc. stockholders’ equity (deficit)                                     |   |                 | (5,931  | )      |       |   | (89     | )        |   |   | (6,020 | ) |
| Total Equity (Deficit)                                                                                  |   |                 | 6,045   |   |       |   | 7,364   |     |   |   | 13,409 |   |
| Total Liabilities and Equity (Deficit)                                                                  |   | $                    | 227,944 |   |       |   | 23,521  |     |   | $ | 251,465 |   |
|                                                                                                    |   |                 |    |   |       |   |    |     |   |   |   |   |
| Balance Sheet as of June 30, 2010                                                                       |   |                 |    |   |       |   |    |     |   |   |   |   |
|                                                                                                    |   |                 |    |   |       |   |    |     |   |   |   |   |
| Real estate held for investment                                                                         |   | $                    | 263,359 |   |       |   | 322,197 |     |   | $ | 585,556 |   |
| Accumulated depreciation                                                                                |   |                 | (79,238 | )      |       |   | (218    | )        |   |   | (79,456 | ) |
| Restricted cash                                                                                         |   |                 | 992     |   |       |   | 3,371   |     |   |   | 4,363 |   |
| Tenant and other receivables, net of allowance for doubtful accounts                                    |   |                 | 1,314   |   |       |   | 262     |     |   |   | 1,576 |   |
| Deferred tax asset                                                                                      |   |                 | 10,146  |   |       |   | 175     |     |   |   | 10,321 |   |
| Investments in unconsolidated real estate assets from related parties                                   |   |                 | 1,386   |   |       |   | 141     |     |   |   | 1,527 |   |
| Purchased intangibles subject to amortization                                                           |   |                 | 18,000  |   |       |   | (4,994  | )        |   |   | 13,006 |   |
| Goodwill                                                                                                |   |                 | -       |   |       |   | 4,003   |     |   |   | 4,003 |   |
| Prepaid and other assets, net                                                                           |   |                 | 11,803  |   |       |   | 4,673   |     |   |   | 16,476 |   |
| Total Assets                                                                                            |   |                 | 239,867 |   |       |   | 329,610 |     |   |   | 569,477 |   |
| Notes payable                                                                                           |   |                 | 214,663 |   |       |   | 226,725 |     |   |   | 441,388 |   |
| Accounts payable                                                                                        |   |                 | 6,125   |   |       |   | 3,227   |     |   |   | 9,352 |   |
| Accrued and other liabilities                                                                           |   |                 | 9,132   |   |       |   | 1,565   |     |   |   | 10,697 |   |
| Total Liabilities                                                                                       |   |                 | 231,287 |   |       |   | 231,517 |     |   |   | 462,804 |   |
| Accumulated deficit                                                                                     |   |                 | (54,018 | )      |       |   | (210    | )        |   |   | (54,228 | ) |
| Non-controlling interests                                                                               |   |                 | 16,600  |   |       |   | 98,303  |     |   |   | 114,903 |   |
| American Spectrum Realty, Inc. stockholders’ equity (deficit)                                     |   |                 | (8,020  | )      |       |   | (210    | )        |   |   | (8,230 | ) |
| Total Equity (Deficit)                                                                                  |   |                 | 8,580   |   |       |   | 98,093  |     |   |   | 106,673 |   |
| Total Liabilities and Equity (Deficit)                                                                  |   | $                    | 239,867 |   |       |   | 329,610 |     |   | $ | 569,477 |   |
|                                                                                                    |   |                 |    |   |       |   |    |     |   |   |   |   |
| Balance Sheet as of September 30, 2010                                                                  |   |                 |    |   |       |   |    |     |   |   |   |   |
|                                                                                                    |   |                 |    |   |       |   |    |     |   |   |   |   |
| Real estate held for investment                                                                         |   | $                    | 280,033 |   |       |   | 338,471 |     |   | $ | 618,504 |   |
| Accumulated depreciation                                                                                |   |                 | (82,344 | )      |       |   | (4,084  | )        |   |   | (86,428 | ) |
| Restricted cash                                                                                         |   |                 | 992     |   |       |   | 2,908   |     |   |   | 3,900 |   |
| Tenant and other receivables, net of allowance for doubtful accounts                                    |   |                 | 1,223   |   |       |   | 515     |     |   |   | 1,738 |   |
| Deferred tax asset                                                                                      |   |                 | 11,883  |   |       |   | 280     |     |   |   | 12,163 |   |
| Investments in unconsolidated real estate assets from related parties                                   |   |                 | 142     |   |       |   | 129     |     |   |   | 271 |   |
| Purchased intangibles subject to amortization                                                           |   |                 | 18,000  |   |       |   | (5,275  | )        |   |   | 12,725 |   |
| Goodwill                                                                                                |   |                 | -       |   |       |   | 4,003   |     |   |   | 4,003 |   |
| Prepaid and other assets, net                                                                           |   |                 | 12,821  |   |       |   | 5,860   |     |   |   | 18,681 |   |
| Total Assets                                                                                            |   |                 | 253,736 |   |       |   | 342,807 |     |   |   | 596,543 |   |
| Notes payable                                                                                           |   |                 | 221,187 |   |       |   | 240,509 |     |   |   | 461,696 |   |
| Accounts payable                                                                                        |   |                 | 8,408   |   |       |   | 4,315   |     |   |   | 12,723 |   |
| Accrued and other liabilities                                                                           |   |                 | 11,008  |   |       |   | 1,168   |     |   |   | 12,176 |   |
| Total Liabilities                                                                                       |   |                 | 242,298 |   |       |   | 245,992 |     |   |   | 488,290 |   |
| Accumulated deficit                                                                                     |   |                 | (56,171 | )      |       |   | (329    | )        |   |   | (56,500 | ) |
| Non-controlling interests                                                                               |   |                 | 21,641  |   |       |   | 97,144  |     |   |   | 118,785 |   |
| American Spectrum Realty, Inc. stockholders’ equity (deficit)                                     |   |                 | (10,203 | )      |       |   | (329    | )        |   |   | (10,532 | ) |
| Total Equity (Deficit)                                                                                  |   |                 | 11,438  |   |       |   | 96,815  |     |   |   | 108,253 |   |
| Total Liabilities and Equity (Deficit)                                                                  |   | $                    | 253,736 |   |       |   | 342,807 |     |   | $ | 596,543 |   |

----

----

----

----

----

|   | (a) | 1. Consolidated Financial Statements and Supplementary Data |
|--------|-----|-------------------------------------------------------------|

|   |                                                                                                                    |   | PageNo. |
|--------|-------------------------------------------------------------------------------------------------------------------------|--------|---------|
|   | Report of Independent Registered Public Accounting Firm                                                                 |   | 30      |
|   | Consolidated Balance Sheets at December 31, 2010 and 2009                                                               |   | 32      |
|   | Consolidated Statements of Operations for the years ended December 31, 2010 and 2009                                    |   | 33      |
|   | Consolidated Statements of Equity (Deficit) for the years ended December 31, 2010 and 2009                              |   | 34      |
|   | Consolidated Statements of Equity (Deficit) and Non-Controlling Interest for the years ended December 31, 2010 and 2009 |   | 34      |
|   | Consolidated Statements of Cash Flows for the years ended December 31, 2010 and 2009                                    |   | 35      |
|   | Notes to Consolidated Financial Statements                                                                              |   | 36      |
|   |                                                                                                                    |   |    |
| (2)    | Financial Statement Schedules                                                                                           |   |    |
|   |                                                                                                                    |   |    |
|   | Schedule II — Valuation and Qualifying Accounts                                                                   |   | 65      |
|   | Schedule III — Real Estate and Accumulated Depreciation                                                           |   | 66      |
|   |                                                                                                                    |   |    |
| (3)    | Exhibits to Financial Statements                                                                                        |   |    |
|   |                                                                                                                    |   |    |
|   | On October 12, 2010, a report on Form 8-K was filed with respect to Item 8.01.                                          |   |    |
|   | On November 23, 2010, a report on Form 8-K was filed with respect to Item 8.01.                                         |   |    |
|   |                                                                                                                    |   |    |
| (b)    | Exhibits                                                                                                                |   |    |
|   |                                                                                                                    |   |    |
|   | The Exhibit Index attached hereto is hereby incorporated by reference to this Item.                                     |   |    |

----

| Description                                     |   | Balance atBeginningof Year |   |   | Additions Chargedto Costs andExpenses |   |   | Deductions |   |   | Balance at Endof Year |   |
|-------------------------------------------------|--------|----------------------------|--------|--------|---------------------------------------|--------|--------|------------|--------|--------|-----------------------|--------|
|                                            |   |                       |   |   |                                  |   |   |       |   |   |                  |   |
| Year Ended December 31, 2010                    |   |                       |   |   |                                  |   |   |       |   |   |                  |   |
|                                            |   |                       |   |   |                                  |   |   |       |   |   |                  |   |
| Allowance for loss on purchased intangibles (1) |   | $                          | -      |   |                                  | $      | 3,387  |       |   | $      | -                     |   |   | $ | 3,387 |   |
|                                            |   |                       |   |   |                                  |   |   |       |   |   |                  |   |   |   |   |   |
| Year Ended December 31, 2009                    |   |                       |   |   |                                  |   |   |       |   |   |                  |   |   |   |   |   |
|                                            |   |                       |   |   |                                  |   |   |       |   |   |                  |   |   |   |   |   |
| Allowance for loss on purchased intangibles     |   | $                          | -      |   |                                  | $      | -      |       |   | $      | -                     |   |   | $ | - |   |
|                                            |   |                       |   |   |                                  |   |   |       |   |   |                  |   |   |   |   |   |
| Year Ended December 31, 2010                    |   |                       |   |   |                                  |   |   |       |   |   |                  |   |   |   |   |   |
|                                            |   |                       |   |   |                                  |   |   |       |   |   |                  |   |   |   |   |   |
| Allowance for doubtful accounts                 |   | $                          | 701    |   |                                  | $      | 703    |       |   | $      | 983                   |   |   | $ | 421 |   |
|                                            |   |                       |   |   |                                  |   |   |       |   |   |                  |   |   |   |   |   |
| Year Ended December 31, 2009                    |   |                       |   |   |                                  |   |   |       |   |   |                  |   |   |   |   |   |
|                                            |   |                       |   |   |                                  |   |   |       |   |   |                  |   |   |   |   |   |
| Allowance for doubtful accounts                 |   | $                          | 371    |   |                                  | $      | 932    |       |   | $      | 602                   |   |   | $ | 701 |   |

|   | (1) | Impairment expense of $3,387 related to purchased intangibles where the Company’s contractual relationships were terminated or modified by some of the entities that owned some of the third party properties it managed. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| COLUMN A                     |   | COLUMN B      |    |   | COLUMN C                                   |   |    | COLUMN D                                        |   |   | COLUMN E                                                               |   |   | COLUMN F |   |   | COLUMN G             |   |    | COLUMN H |   |   | COLUMN I                                                                          |   |
|-----------------------------------|--------|--------------------|---------|--------|-------------------------------------------------|--------|---------|------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------|--------|--------|---------------|--------|--------|---------------------------|--------|---------|---------------|--------|--------|----------------------------------------------------------------------------------------|--------|
|                              |   |               |    |   | Initial Cost to Company (1) |   |    | Costcapitalizedsubsequent toacquisiton (2) |   |   | Gross amount carried at December 31, 2010 (3) |   |   |          |   |   |                      |   |    |          |   |   | Life on whichdepreciation inlatest incomestatement iscomputed |   |
| Description                       |   |  Encumbrances |    |   | Land                                            |   |    | Buildings andImprovements                            |   |   | Improvements                                                                |   |   | Land          |   |   | Buildings andImprovements |   |    | Total         |   |   | AccumulatedDepreciation                                                                |   |   | Date of Construction |   |   | DateAcquired |   |   |   |
| Owned Properties                  |   |               |    |   |                                            |   |    |                                                 |   |   |                                                                        |   |   |          |   |   |                      |   |    |          |   |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |
|   Office Properties:    |   |               |    |   |                                            |   |    |                                                 |   |   |                                                                        |   |   |          |   |   |                      |   |    |          |   |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |
| Creekside                         |   |               | 5,747   |   |                                            |   | 2,790   |                                                 |   |   | 6,460                                                                       |   |   |          | 508    |   |                      |   | 2,790   |          |   |   | 6,968                                                                                  |   |   |   | 9,758 |   |   |   | 3,782 |   |   | 1984 |   |   | 2001 |   |   | 5-40 |   |
| Bristol Bay                       |   |               | 6,792   |   |                                            |   | 1,620   |                                                 |   |   | 7,880                                                                       |   |   |          | 1,618  |   |                      |   | 1,620   |          |   |   | 9,498                                                                                  |   |   |   | 11,118 |   |   |   | 5,095 |   |   | 1988 |   |   | 2001 |   |   | 5-40 |   |
| Daimler Chrysler                  |   |               | 45,000  |   |                                            |   | 9,150   |                                                 |   |   | 40,390                                                                      |   |   |          | 5,748  |   |                      |   | 9,150   |          |   |   | 46,138                                                                                 |   |   |   | 55,288 |   |   |   | 25,934 |   |   | 1989 |   |   | 2001 |   |   | 5-40 |   |
| Northwest                         |   |               | 5,312   |   |                                            |   | 1,550   |                                                 |   |   | 5,230                                                                       |   |   |          | 2,071  |   |                      |   | 1,550   |          |   |   | 7,301                                                                                  |   |   |   | 8,851 |   |   |   | 3,879 |   |   | 1983-1987 |   |   | 2001 |   |   | 5-40 |   |
| 16350 Park Ten                    |   |               | 4,886   |   |                                            |   | 1,174   |                                                 |   |   | 5,324                                                                       |   |   |          | 669    |   |                      |   | 1,174   |          |   |   | 5,993                                                                                  |   |   |   | 7,167 |   |   |   | 3,129 |   |   | 1979 |   |   | 2002 |   |   | 5-40 |   |
| 16360 Park Ten                    |   |               | 3,829   |   |                                            |   | 900     |                                                 |   |   | 4,192                                                                       |   |   |          | 827    |   |                      |   | 900     |          |   |   | 5,019                                                                                  |   |   |   | 5,919 |   |   |   | 2,615 |   |   | 1981 |   |   | 2002 |   |   | 5-40 |   |
| 800 Sam Houston                   |   |               | 2,264   |   |                                            |   | 1,000   |                                                 |   |   | 1,121                                                                       |   |   |          | 738    |   |                      |   | 1,000   |          |   |   | 1,859                                                                                  |   |   |   | 2,859 |   |   |   | 989 |   |   | 1980 |   |   | 2004 |   |   | 5-40 |   |
| 888 Sam Houston                   |   |               | 2,264   |   |                                            |   | 500     |                                                 |   |   | 892                                                                         |   |   |          | 474    |   |                      |   | 500     |          |   |   | 1,366                                                                                  |   |   |   | 1,866 |   |   |   | 803 |   |   | 1979 |   |   | 2002 |   |   | 5-40 |   |
| 5450 NW Central                   |   |               | 2,585   |   |                                            |   | 854     |                                                 |   |   | 2,622                                                                       |   |   |          | 771    |   |                      |   | 854     |          |   |   | 3,393                                                                                  |   |   |   | 4,247 |   |   |   | 1,548 |   |   | 1979 |   |   | 2003 |   |   | 5-40 |   |
| 12000 Westheimer                  |   |               | 4,203   |   |                                            |   | 1,878   |                                                 |   |   | 2,432                                                                       |   |   |          | 1,424  |   |                      |   | 1,878   |          |   |   | 3,856                                                                                  |   |   |   | 5,734 |   |   |   | 1,863 |   |   | 1981 |   |   | 2003 |   |   | 5-40 |   |
| 8100 Washington                   |   |               | 2,156   |   |                                            |   | 600     |                                                 |   |   | 2,317                                                                       |   |   |          | 590    |   |                      |   | 600     |          |   |   | 2,907                                                                                  |   |   |   | 3,507 |   |   |   | 1,200 |   |   | 1980 |   |   | 2003 |   |   | 5-40 |   |
| 8300 Bissonnet                    |   |               | 4,484   |   |                                            |   | 1,400   |                                                 |   |   | 3,990                                                                       |   |   |          | 517    |   |                      |   | 1,400   |          |   |   | 4,507                                                                                  |   |   |   | 5,907 |   |   |   | 1,898 |   |   | 1981 |   |   | 2003 |   |   | 5-40 |   |
| Pacific Spectrum                  |   |               | 5,191   |   |                                            |   | 1,460   |                                                 |   |   | 6,880                                                                       |   |   |          | 1,869  |   |                      |   | 1,460   |          |   |   | 8,749                                                                                  |   |   |   | 10,209 |   |   |   | 5,118 |   |   | 1986 |   |   | 2001 |   |   | 5-40 |   |
| 11500 NW Frwy                     |   |               | 4,298   |   |                                            |   | 2,278   |                                                 |   |   | 3,621                                                                       |   |   |          | 607    |   |                      |   | 2,278   |          |   |   | 4,228                                                                                  |   |   |   | 6,506 |   |   |   | 1,673 |   |   | 1983 |   |   | 2004 |   |   | 5-40 |   |
| 6677 Gessner                      |   |               | 8,545   |   |                                            |   | 2,375   |                                                 |   |   | 9,504                                                                       |   |   |          | 3      |   |                      |   | 2,375   |          |   |   | 9,507                                                                                  |   |   |   | 11,882 |   |   |   | 2,665 |   |   | 1996 |   |   | 2006 |   |   | 5-40 |   |
| 2855 Mangum                       |   |               | 3,915   |   |                                            |   | 2,134   |                                                 |   |   | 3,300                                                                       |   |   |          | 269    |   |                      |   | 2,134   |          |   |   | 3,569                                                                                  |   |   |   | 5,703 |   |   |   | 1,177 |   |   | 1979 |   |   | 2006 |   |   | 5-40 |   |
| Gray Falls                        |   |               | 3,064   |   |                                            |   | 670     |                                                 |   |   | 1,956                                                                       |   |   |          | 395    |   |                      |   | 670     |          |   |   | 2,351                                                                                  |   |   |   | 3,021 |   |   |   | 947 |   |   | 1983 |   |   | 2006 |   |   | 5-40 |   |
| 2401 Fountainview                 |   |               | 11,967  |   |                                            |   | 3,500   |                                                 |   |   | 13,451                                                                      |   |   |          | 1,053  |   |                      |   | 3,500   |          |   |   | 14,504                                                                                 |   |   |   | 18,004 |   |   |   | 4,508 |   |   | 1980 |   |   | 2006 |   |   | 5-40 |   |
| 1501 Mockingbird                  |   |               | 3,189   |   |                                            |   | 1,000   |                                                 |   |   | 3,583                                                                       |   |   |          | 81     |   |                      |   | 1,000   |          |   |   | 3,664                                                                                  |   |   |   | 4,664 |   |   |   | 994 |   |   | 1981 |   |   | 2006 |   |   | 5-40 |   |
| 6420 Richmond                     |   |               | 6,286   |   |                                            |   | 3,384   |                                                 |   |   | 3,039                                                                       |   |   |          | 367    |   |                      |   | 3,384   |          |   |   | 3,406                                                                                  |   |   |   | 6,790 |   |   |   | 966 |   |   | 1979 |   |   | 2006 |   |   | 5-40 |   |
| 6430 Richmond                     |   |               | 2,127   |   |                                            |   | 1,645   |                                                 |   |   | 2,116                                                                       |   |   |          | 308    |   |                      |   | 1,645   |          |   |   | 2,424                                                                                  |   |   |   | 4,069 |   |   |   | 722 |   |   | 1974 |   |   | 2006 |   |   | 5-40 |   |
| Fountainview Office Park          |   |               | 13,392  |   |                                            |   | 6,900   |                                                 |   |   | 9,612                                                                       |   |   |          | 453    |   |                      |   | 6,900   |          |   |   | 10,065                                                                                 |   |   |   | 16,965 |   |   |   | 1,722 |   |   | 1979 |   |   | 2008 |   |   | 5-40 |   |
| 2620-2630 Fountain View           |   |               | 5,350   |   |                                            |   | 5,300   |                                                 |   |   | 1,868                                                                       |   |   |          | 2      |   |                      |   | 5,300   |          |   |   | 1,870                                                                                  |   |   |   | 7,170 |   |   |   | 23 |   |   | 1976 |   |   | 2010 |   |   | 5-40 |   |
|   Office Total          |   |               | 156,846 |   |                                            |   | 54,062  |                                                 |   |   | 141,780                                                                     |   |   |          | 21,362 |   |                      |   | 54,062  |          |   |   | 163,142                                                                                |   |   |   | 217,204 |   |   |   | 73,250 |   |   |   |   |   |   |   |   |   |   |
| Industrial Properties:            |   |               |    |   |                                            |   |    |                                                 |   |   |                                                                        |   |   |          |   |   |                      |   |    |          |   |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Southwest Pointe                  |   |               | 2,671   |   |                                            |   | 1,800   |                                                 |   |   | 1,530                                                                       |   |   |          | 538    |   |                      |   | 1,800   |          |   |   | 2,068                                                                                  |   |   |   | 3,868 |   |   |   | 1,121 |   |   | 1972 |   |   | 2001 |   |   | 5-40 |   |
| Morenci                           |   |               | 1,632   |   |                                            |   | 790     |                                                 |   |   | 2,680                                                                       |   |   |          | 141    |   |                      |   | 790     |          |   |   | 2,849                                                                                  |   |   |   | 3,639 |   |   |   | 1,449 |   |   | 1975-1979 |   |   | 2001 |   |   | 5-40 |   |
| Technology                        |   |               | 7,091   |   |                                            |   | 580     |                                                 |   |   | 9,360                                                                       |   |   |          | 144    |   |                      |   | 580     |          |   |   | 9,504                                                                                  |   |   |   | 10,084 |   |   |   | 4,400 |   |   | 1986 |   |   | 2001 |   |   | 5-40 |   |
| NW Spectrum Plaza                 |   |               | 2,820   |   |                                            |   | 1,711   |                                                 |   |   | 2,297                                                                       |   |   |          | 86     |   |                      |   | 1,711   |          |   |   | 2,383                                                                                  |   |   |   | 4,094 |   |   |   | 729 |   |   | 2004 |   |   | 2007 |   |   | 5-25 |   |
| Beltway Industrial                |   |               | 17,170  |   |                                            |   | 3,829   |                                                 |   |   | 14,764                                                                      |   |   |          | 298    |   |                      |   | 3,829   |          |   |   | 15,062                                                                                 |   |   |   | 18,891 |   |   |   | 3,372 |   |   | 1999 |   |   | 2007 |   |   | 5-40 |   |
|   Industrial Total      |   |               | 31,384  |   |                                            |   | 8,710   |                                                 |   |   | 30,631                                                                      |   |   |          | 1,207  |   |                      |   | 8,710   |          |   |   | 31,866                                                                                 |   |   |   | 40,576 |   |   |   | 11,071 |   |   |   |   |   |   |   |   |   |   |
| Retail Property                   |   |               |    |   |                                            |   |    |                                                 |   |   |                                                                        |   |   |          |   |   |                      |   |    |          |   |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Windrose                          |   |               | 2,612   |   |                                            |   | 1,100   |                                                 |   |   | 2,440                                                                       |   |   |          | 232    |   |                      |   | 1,100   |          |   |   | 2,672                                                                                  |   |   |   | 3,772 |   |   |   | 837 |   |   | 2005 |   |   | 2007 |   |   | 5-25 |   |
|   Retail Total          |   |               | 2,612   |   |                                            |   | 1,100   |                                                 |   |   | 2,440                                                                       |   |   |          | 232    |   |                      |   | 1,100   |          |   |   | 2,672                                                                                  |   |   |   | 3,772 |   |   |   | 837 |   |   |   |   |   |   |   |   |   |   |
| Self-Storage Property             |   |               |    |   |                                            |   |    |                                                 |   |   |                                                                        |   |   |          |   |   |                      |   |    |          |   |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sabo Road                         |   |               | 1,974   |   |                                            |   | 535     |                                                 |   |   | 1,696                                                                       |   |   |          | 520    |   |                      |   | 535     |          |   |   | 2,216                                                                                  |   |   |   | 2,751 |   |   |   | 39 |   |   | 2006 |   |   | 2010 |   |   | 5-40 |   |
|   Self-Storage Total    |   |               | 1,974   |   |                                            |   | 535     |                                                 |   |   | 1,696                                                                       |   |   |          | 520    |   |                      |   | 535     |          |   |   | 2,216                                                                                  |   |   |   | 2,751 |   |   |   | 39 |   |   |   |   |   |   |   |   |   |   |
| Developmental Land and Other:     |   |               |    |   |                                            |   |    |                                                 |   |   |                                                                        |   |   |          |   |   |                      |   |    |          |   |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 11755 West Little York, TX        |   |               | -       |   |                                            |   | -       |                                                 |   |   | -                                                                           |   |   |          | -      |   |                      |   | -       |          |   |   | -                                                                                      |   |   |   | - |   |   |   | - |   |   | - |   |   | 2007 |   |   | N/A |   |
| Corporate                         |   |               | 21,227  |   |                                            |   | -       |                                                 |   |   | 138                                                                         |   |   |          | 460    |   |                      |   | -       |          |   |   | 598                                                                                    |   |   |   | 598 |   |   |   | 447 |   |   | - |   |   | - |   |   | 3-5 |   |
|   Other Total           |   |               | 21,227  |   |                                            |   | -       |                                                 |   |   | 138                                                                         |   |   |          | 460    |   |                      |   | -       |          |   |   | 598                                                                                    |   |   |   | 598 |   |   |   | 447 |   |   |   |   |   |   |   |   |   |   |
| Owned Properties Total            |   |               | 214,043 |   |                                            |   | 64,407  |                                                 |   |   | 176,685                                                                     |   |   |          | 23,781 |   |                      |   | 64,407  |          |   |   | 200,494                                                                                |   |   |   | 264,901 |   |   |   | 85,644 |   |   |   |   |   |   |   |   |   |   |
|                              |   |               |    |   |                                            |   |    |                                                 |   |   |                                                                        |   |   |          |   |   |                      |   |    |          |   |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| VIE Properties                    |   |               |    |   |                                            |   |    |                                                 |   |   |                                                                        |   |   |          |   |   |                      |   |    |          |   |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commerical Properties:            |   |               |    |   |                                            |   |    |                                                 |   |   |                                                                        |   |   |          |   |   |                      |   |    |          |   |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commerce Distributions            |   |               | 9,783   |   |                                            |   | 8,628   |                                                 |   |   | 12,537                                                                      |   |   |          | -      |   |                      |   | 8,628   |          |   |   | 12,537                                                                                 |   |   |   | 21,165 |   |   |   | 368 |   |   | 1957 |   |   | 2010 |   |   | 5-40 |   |
| Dixon                             |   |               | 17,805  |   |                                            |   | 3,682   |                                                 |   |   | 19,128                                                                      |   |   |          | -      |   |                      |   | 3,682   |          |   |   | 19,128                                                                                 |   |   |   | 22,810 |   |   |   | 561 |   |   | 1961 |   |   | 2010 |   |   | 5-40 |   |
| Fisher Distribution               |   |               | 17,953  |   |                                            |   | 2,805   |                                                 |   |   | 23,018                                                                      |   |   |          | -      |   |                      |   | 2,805   |          |   |   | 23,018                                                                                 |   |   |   | 25,823 |   |   |   | 675 |   |   | 1993 |   |   | 2010 |   |   | 5-40 |   |
| Ohio Commerce                     |   |               | 19,028  |   |                                            |   | 1,917   |                                                 |   |   | 24,585                                                                      |   |   |          | -      |   |                      |   | 1,917   |          |   |   | 24,585                                                                                 |   |   |   | 26,502 |   |   |   | 721 |   |   | 1968 |   |   | 2010 |   |   | 5-40 |   |
| Redmond Commerce                  |   |               | 16,125  |   |                                            |   | 6,379   |                                                 |   |   | 19,658                                                                      |   |   |          | -      |   |                      |   | 6,379   |          |   |   | 19,658                                                                                 |   |   |   | 26,037 |   |   |   | 577 |   |   | 1981,1986 |   |   | 2010 |   |   | 5-40 |   |
| Springs Commerce I                |   |               | 17,136  |   |                                            |   | 3,009   |                                                 |   |   | 22,550                                                                      |   |   |          | -      |   |                      |   | 3,009   |          |   |   | 22,550                                                                                 |   |   |   | 25,559 |   |   |   | 661 |   |   | 95',[64',93'],98',[98',99'],[00',02'] |   |   | 2010 |   |   | 5-40 |   |
| Springs Commerce II               |   |               | 20,773  |   |                                            |   | 1,709   |                                                 |   |   | 21,356                                                                      |   |   |          | -      |   |                      |   | 1,709   |          |   |   | 21,356                                                                                 |   |   |   | 23,065 |   |   |   | 626 |   |   | 1964,1955,1973 |   |   | 2010 |   |   | 5-40 |   |
| Springs Office                    |   |               | 14,806  |   |                                            |   | 2,288   |                                                 |   |   | 19,197                                                                      |   |   |          | -      |   |                      |   | 2,288   |          |   |   | 19,197                                                                                 |   |   |   | 21,485 |   |   |   | 563 |   |   | 1971,1953,1998 |   |   | 2010 |   |   | 5-40 |   |
| Strongville Corp                  |   |               | 15,027  |   |                                            |   | 7,540   |                                                 |   |   | 14,236                                                                      |   |   |          | -      |   |                      |   | 7,540   |          |   |   | 14,236                                                                                 |   |   |   | 21,776 |   |   |   | 626 |   |   | 1989 |   |   | 2010 |   |   | 5-40 |   |
|   Total Commerical      |   |               | 148,436 |   |                                            |   | 37,957  |                                                 |   |   | 176,265                                                                     |   |   |          | -      |   |                      |   | 37,957  |          |   |   | 176,265                                                                                |   |   |   | 214,222 |   |   |   | 5,378 |   |   |   |   |   |   |   |   |   |   |
| Multi-Family Properties:          |   |               |    |   |                                            |   |    |                                                 |   |   |                                                                        |   |   |          |   |   |                      |   |    |          |   |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Centennial Park                   |   |               | 12,320  |   |                                            |   | 2,589   |                                                 |   |   | 13,132                                                                      |   |   |          | -      |   |                      |   | 2,589   |          |   |   | 13,132                                                                                 |   |   |   | 15,721 |   |   |   | 372 |   |   | 1997 |   |   | 2010 |   |   | 5-40 |   |
| Ohio-II NewarK                    |   |               | 9,532   |   |                                            |   | 1,930   |                                                 |   |   | 5,517                                                                       |   |   |          | -      |   |                      |   | 1,930   |          |   |   | 5,517                                                                                  |   |   |   | 7,447 |   |   |   | 156 |   |   | 1992 |   |   | 2010 |   |   | 5-40 |   |
| Ohio-II Sheffield                 |   |               | -       |   |                                            |   | 600     |                                                 |   |   | 5,619                                                                       |   |   |          | -      |   |                      |   | 600     |          |   |   | 5,619                                                                                  |   |   |   | 6,219 |   |   |   | 159 |   |   | 1990 |   |   | 2010 |   |   | 5-40 |   |
|   Total Mult-Family     |   |               | 21,852  |   |                                            |   | 5,119   |                                                 |   |   | 24,268                                                                      |   |   |          | -      |   |                      |   | 5,119   |          |   |   | 24,268                                                                                 |   |   |   | 29,387 |   |   |   | 687 |   |   |   |   |   |   |   |   |   |   |
| Self-Storage Properties:          |   |               |    |   |                                            |   |    |                                                 |   |   |                                                                        |   |   |          |   |   |                      |   |    |          |   |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Blanco                            |   |               | 1,682   |   |                                            |   | 203     |                                                 |   |   | 1,516                                                                       |   |   |          | -      |   |                      |   | 203     |          |   |   | 1,516                                                                                  |   |   |   | 1,719 |   |   |   | 22 |   |   | 1982 |   |   | 2010 |   |   | 5-40 |   |
| Laredo                            |   |               | 1,549   |   |                                            |   | 455     |                                                 |   |   | 2,903                                                                       |   |   |          | -      |   |                      |   | 455     |          |   |   | 2,903                                                                                  |   |   |   | 3,358 |   |   |   | 43 |   |   | 1998 |   |   | 2010 |   |   | 5-40 |   |
| Charleston                        |   |               | 2,570   |   |                                            |   | 524     |                                                 |   |   | 1,575                                                                       |   |   |          | -      |   |                      |   | 524     |          |   |   | 1,575                                                                                  |   |   |   | 2,099 |   |   |   | 23 |   |   | 1989 |   |   | 2010 |   |   | 5-40 |   |
| Grissom                           |   |               | 2,363   |   |                                            |   | 2,224   |                                                 |   |   | 1,765                                                                       |   |   |          | -      |   |                      |   | 2,224   |          |   |   | 1,765                                                                                  |   |   |   | 3,989 |   |   |   | 26 |   |   | 1985 |   |   | 2010 |   |   | 5-40 |   |
| S. Mason                          |   |               | 2,898   |   |                                            |   | 899     |                                                 |   |   | 1,380                                                                       |   |   |          | -      |   |                      |   | 899     |          |   |   | 1,380                                                                                  |   |   |   | 2,279 |   |   |   | 20 |   |   | 2000 |   |   | 2010 |   |   | 5-40 |   |
| FW Northwest                      |   |               | 2,049   |   |                                            |   | 1,356   |                                                 |   |   | 1,238                                                                       |   |   |          | -      |   |                      |   | 1,356   |          |   |   | 1,238                                                                                  |   |   |   | 2,594 |   |   |   | 18 |   |   | 1985 |   |   | 2010 |   |   | 5-40 |   |
| Riveroaks                         |   |               | 2,419   |   |                                            |   | 355     |                                                 |   |   | 2,273                                                                       |   |   |          | -      |   |                      |   | 355     |          |   |   | 2,273                                                                                  |   |   |   | 2,628 |   |   |   | 33 |   |   | 1985 |   |   | 2010 |   |   | 5-40 |   |
| Aldine Westfield                  |   |               | 2,465   |   |                                            |   | 112     |                                                 |   |   | 2,284                                                                       |   |   |          | -      |   |                      |   | 112     |          |   |   | 2,284                                                                                  |   |   |   | 2,396 |   |   |   | 67 |   |   | 2006 |   |   | 2010 |   |   | 5-40 |   |
| Ocala                             |   |               | -       |   |                                            |   | 585     |                                                 |   |   | 1,376                                                                       |   |   |          | -      |   |                      |   | 585     |          |   |   | 1,376                                                                                  |   |   |   | 1,961 |   |   |   | - |   |   | 1989 |   |   | 2010 |   |   | 5-40 |   |
| Tampa                             |   |               | 653     |   |                                            |   | 669     |                                                 |   |   | 1,575                                                                       |   |   |          | -      |   |                      |   | 669     |          |   |   | 1,575                                                                                  |   |   |   | 2,244 |   |   |   | - |   |   | 1987 |   |   | 2010 |   |   | 5-40 |   |
| Loop 1604                         |   |               | 4,345   |   |                                            |   | 4,897   |                                                 |   |   | 3,132                                                                       |   |   |          | -      |   |                      |   | 4,897   |          |   |   | 3,132                                                                                  |   |   |   | 8,029 |   |   |   | 55 |   |   | 1985 |   |   | 2010 |   |   | 5-40 |   |
|   Total Self-Storage    |   |               | 22,993  |   |                                            |   | 12,279  |                                                 |   |   | 21,017                                                                      |   |   |          | -      |   |                      |   | 12,279  |          |   |   | 21,017                                                                                 |   |   |   | 33,296 |   |   |   | 307 |   |   |   |   |   |   |   |   |   |   |
| Student Housing Properties:       |   |               |    |   |                                            |   |    |                                                 |   |   |                                                                        |   |   |          |   |   |                      |   |    |          |   |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| College Park                      |   |               | 14,610  |   |                                            |   | 2,788   |                                                 |   |   | 13,486                                                                      |   |   |          | -      |   |                      |   | 2,788   |          |   |   | 13,486                                                                                 |   |   |   | 16,274 |   |   |   | 191 |   |   | 2002 |   |   | 2010 |   |   | 5-40 |   |
| University-Lubbock                |   |               | 21,456  |   |                                            |   | 7,975   |                                                 |   |   | 23,734                                                                      |   |   |          | -      |   |                      |   | 7,975   |          |   |   | 23,734                                                                                 |   |   |   | 31,709 |   |   |   | 672 |   |   | 2005 |   |   | 2010 |   |   | 5-40 |   |
| University Heights                |   |               | 21,148  |   |                                            |   | 3,121   |                                                 |   |   | 25,000                                                                      |   |   |          | -      |   |                      |   | 3,121   |          |   |   | 25,000                                                                                 |   |   |   | 28,121 |   |   |   | 708 |   |   | 2005 |   |   | 2010 |   |   | 5-40 |   |
| University Springs                |   |               | 9,642   |   |                                            |   | 1,531   |                                                 |   |   | 14,684                                                                      |   |   |          | -      |   |                      |   | 1,531   |          |   |   | 14,684                                                                                 |   |   |   | 16,215 |   |   |   | 412 |   |   | 1998 |   |   | 2010 |   |   | 5-40 |   |
| Campus Court                      |   |               | 4,747   |   |                                            |   | 320     |                                                 |   |   | 7,310                                                                       |   |   |          | -      |   |                      |   | 320     |          |   |   | 7,310                                                                                  |   |   |   | 7,630 |   |   |   | 40 |   |   | 1998 |   |   | 2010 |   |   | 5-40 |   |
|   Total Student Housing |   |               | 71,603  |   |                                            |   | 15,735  |                                                 |   |   | 84,214                                                                      |   |   |          | -      |   |                      |   | 15,735  |          |   |   | 84,214                                                                                 |   |   |   | 99,949 |   |   |   | 2,023 |   |   |   |   |   |   |   |   |   |   |
| Assisted Living Property:         |   |               |    |   |                                            |   |    |                                                 |   |   |                                                                        |   |   |          |   |   |                      |   |    |          |   |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Phx Assisting Living (Rose Ct.)   |   |               | 3,794   |   |                                            |   | 909     |                                                 |   |   | 3,591                                                                       |   |   |          | -      |   |                      |   | 909     |          |   |   | 3,591                                                                                  |   |   |   | 4,500 |   |   |   | 51 |   |   | 1974 |   |   | 2010 |   |   | 5-40 |   |
|   Total Assisted Living |   |               | 3,794   |   |                                            |   | 909     |                                                 |   |   | 3,591                                                                       |   |   |          | -      |   |                      |   | 909     |          |   |   | 3,591                                                                                  |   |   |   | 4,500 |   |   |   | 51 |   |   |   |   |   |   |   |   |   |   |
| Corporate                         |   |               | 98      |   |                                            |   |    |                                                 |   |   |                                                                        |   |   |          |   |   |                      |   |    |          |   |   |                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 5-40 |   |
| VIE Properties Total              |   |               | 268,776 |   |                                            |   | 71,999  |                                                 |   |   | 309,355                                                                     |   |   |          | -      |   |                      |   | 71,999  |          |   |   | 309,355                                                                                |   |   |   | 381,354 |   |   |   | 8,446 |   |   |   |   |   |   |   |   |   |   |
| TOTAL                             |   |               | 482,819 |   |                                            |   | 136,406 |                                                 |   |   | 486,040                                                                     |   |   |          | 23,781 |   |                      |   | 136,406 |          |   |   | 509,849                                                                                |   |   |   | 646,255 |   |   |   | 94,090 |   |   |   |   |   |   |   |   |   |   |

----

|                                                              |   | 2010   |    |   | 2009   |   |
|-------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Rental Property:                                                  |   |   |    |   |   |   |
| Balance at beginning of year                                      |   | $      | 251,336 |   |   | $      | 249,651 |   |
| Additions during year:                                            |   |   |    |   |   |   |   |   |
| Property acquisitions, additions and consolidation of VIE’s |   |   | 394,919 |   |   |   | 1,685 |   |
| Retirements                                                       |   |   | -       |   |   |   | - |   |
| Balance at end of year                                            |   | $      | 646,255 |   |   | $      | 251,336 |   |
|                                                              |   |   |    |   |   |   |   |   |
| Accumulated Depreciation:                                         |   |   |    |   |   |   |   |   |
| Balance at beginning of year                                      |   | $      | 72,404  |   |   | $      | 59,160 |   |
| Additions during year:                                            |   |   |    |   |   |   |   |   |
| Depreciation                                                      |   |   | 21,686  |   |   |   | 13,244 |   |
| Retirements                                                       |   |   | -       |   |   |   | - |   |
| Balance at end of year                                            |   | $      | 94,090  |   |   | $      | 72,404 |   |

----

| Date: October 3, 2011 | /s/ William J. Carden                         |
|-----------------------|-----------------------------------------------|
|                  | William J. Carden                             |
|                  | Chairman of the Board, President and          |
|                  | Chief Executive Officer                       |
|                  | (Principal Executive Officer)                 |
|                  |                                          |
| Date: October 3, 2011 | /s/ G. Anthony Eppolito                       |
|                  | G. Anthony Eppolito                           |
|                  | Vice President, Chief Financial Officer       |
|                  | (Principal Financial and Accounting Officer), |
|                  | Treasurer and Secretary                       |
|                  |                                          |
| Date: October 3, 2011 | /s/ Timothy R. Brown                          |
|                  | Timothy R. Brown                              |
|                  | Director                                      |
|                  |                                          |
| Date: October 3, 2011 | /s/ William W. Geary, Jr.                     |
|                  | William W. Geary, Jr.                         |
|                  | Director                                      |
|                  |                                          |
| Date: October 3, 2011 | /s/ Presley E. Werlein, III                   |
|                  | Presley E. Werlein, III                       |
|                  | Director                                      |
|                  |                                          |
| Date: October 3, 2011 | /s/ John N. Galardi                           |
|                  | John N. Galardi                               |
|                  | Director                                      |

----

| Exhibit No. |   | Exhibit Title                                                                                                                                                                                         |
|-------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                                                  |
| 3.1         |   | Form of Amended and Restated Articles of Incorporation of the Company (1)                                                                                                                             |
|        |   |                                                                                                                                                                                                  |
| 3.2         |   | Bylaws of the Company (1)                                                                                                                                                                             |
|        |   |                                                                                                                                                                                                  |
| 3.3         |   | Amended and Restated Bylaws of the Company are incorporated herein by reference to Exhibit 3.01 to the Company’s Form 10-Q for the quarter ended June 30, 2002                                  |
|        |   |                                                                                                                                                                                                  |
| 3.4         |   | Articles of Amendment of the Company are incorporated herein by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2003                                      |
|        |   |                                                                                                                                                                                                  |
| 3.5         |   | Articles of Amendment of the Company are incorporated herein by reference to the Company’s Form 10-Q for the quarter ended March 31, 2006                                                       |
|        |   |                                                                                                                                                                                                  |
| 3.6         |   | Articles Supplementary for 15% Cumulative Preferred Stock, Series A of the Company dated December 30, 2008 are incorporated herein by reference to the Company’s Form 8-K filed January 8, 2009 |
|        |   |                                                                                                                                                                                                  |
| 4.1         |   | Form of Stock Certificate (1)                                                                                                                                                                         |
|        |   |                                                                                                                                                                                                  |
| 10.1        |   | Form of Agreement and Plan of Merger of Sierra-Pacific Development Fund (1)                                                                                                                           |
|        |   |                                                                                                                                                                                                  |
| 10.2        |   | Form of Agreement and Plan of Merger of Sierra-Pacific Development Fund II (1)                                                                                                                        |
|        |   |                                                                                                                                                                                                  |
| 10.3        |   | Form of Agreement and Plan of Merger of Sierra-Pacific Development Fund III (1)                                                                                                                       |
|        |   |                                                                                                                                                                                                  |
| 10.4        |   | Form of Agreement and Plan of Merger of Sierra Pacific Pension Investors ‘84 (1)                                                                                                                |
|        |   |                                                                                                                                                                                                  |
| 10.5        |   | Form of Agreement and Plan of Merger of Sierra Pacific Institutional Properties V (1)                                                                                                                 |
|        |   |                                                                                                                                                                                                  |
| 10.6        |   | Form of Agreement and Plan of Merger of Nooney Income Fund Ltd., L.P. (1)                                                                                                                             |
|        |   |                                                                                                                                                                                                  |
| 10.7        |   | Form of Agreement and Plan of Merger of Nooney Income Fund Ltd., L.P. (1)                                                                                                                             |
|        |   |                                                                                                                                                                                                  |
| 10.8        |   | Form of Agreement and Plan of Merger of Nooney Real Property Investors – Two, L.P. (1)                                                                                                          |
|        |   |                                                                                                                                                                                                  |
| 10.9        |   |  Omnibus Stock Incentive Plan (1)                                                                                                                                                                |
|        |   |                                                                                                                                                                                                  |
| 10.10       |   | Agreement of Limited Partnership of American Spectrum Realty Operating Partnership, L.P. (1)                                                                                                          |
|        |   |                                                                                                                                                                                                  |
| 10.11       |   | Agreement and Plan of Merger, dated August 6, 2000, between the Company and CGS Properties (Mkt./Col.), L.P. (1)                                                                                      |
|        |   |                                                                                                                                                                                                  |
| 10.12       |   | Agreement and Plan of Merger, dated August 6, 2000, between the Company and Creekside/Riverside, L.L.C. (1)                                                                                           |
|        |   |                                                                                                                                                                                                  |
| 10.13       |   | Agreement and Plan of Merger, dated August 6, 2000, between the Company and McDonnell Associates, L.L.C. (1)                                                                                          |
|        |   |                                                                                                                                                                                                  |
| 10.14       |   | Agreement and Plan of Merger, dated August 6, 2000, between the Company and Pacific Spectrum, L.L.C. (1)                                                                                              |
|        |   |                                                                                                                                                                                                  |
| 10.15       |   | Agreement and Plan of Merger, dated August 6, 2000, between the Company and Pasadena Autumn Ridge L.P. (1)                                                                                            |

----

| 10.16  |   | Agreement and Plan of Merger, dated August 6, 2000, between the Company and Seventy Seven, L.L.C. (1)                                                                                                                                                                                     |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.17  |   | Agreement and Plan of Merger, dated August 6, 2000, between the Company and Villa Redondo L.L.C. (1)                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.18  |   | Agreement and Plan of Merger, dated August 6, 2000, between the Company and Third Coast L.L.C. (1)                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.19  |   | Agreement and Plan of Contribution, dated August 6, 2000, between the Company and No.-So., Inc. (1)                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.20  |   | Form of Restricted Stock Agreement (1)                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.21  |   | Form of Stock Option Agreement (Incentive Stock Options) (1)                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.22  |   | Form of Stock Option Agreement (Directors) (1)                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.23  |   | Form of Stock Option Agreement (Non-Qualified Options) (1)                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.24  |   | Form of Indenture Relating to Notes (1)                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.25  |   | Contribution Agreement, dated May 31, 2000, between the Company and CGS Real Estate Company, Inc. (1)                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.26  |   | Contribution Agreement, dated May 31, 2000, between the Company and American Spectrum Real Estate Services, Inc. (1)                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.27  |   | Agreement and Plan of Merger, dated May 31, 2001, between the Company and Lindbergh Boulevard Partners (Lindbergh), L.P. (1)                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.28  |   | Agreement and Plan of Merger, dated May 31, 2001, between the Company and Nooney Rider Trail L.L.C. (1)                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.29  |   | Agreement and Plan of Merger, dated May 31, 2001, between the Company and Back Bay L.L.C. (1)                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.30  |   | Contribution Agreement, dated May 31, 2001, between American Spectrum Realty Management, Inc. and CGS Real Estate Company, Inc., American Spectrum — Midwest, American Spectrum — Arizona, American Spectrum — California and American Spectrum — Texas, Inc. (1) |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.31  |   | Amendment of Agreement Plan of Merger between the Company and Villa Redondo L.L.C. is incorporated herein by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2001                                                                             |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.32  |   | Amendment of Agreement Plan of Merger between the Company and Pasadena Autumn Ridge, L.P. is incorporated herein by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2001                                                                      |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.33  |   | Amendment of Agreement Plan of Merger between the Company and Third Coast L.L.C. is incorporated herein by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2001                                                                               |
|   |   |                                                                                                                                                                                                                                                                                      |
| 10.34  |   | Registration Right’s Agreement between the Company, the Operating Partnership, and other parties is incorporated herein by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2001                                                         |

----

| 10.35  |   | Employment Agreement dated October 15, 2001 between the Company and Harry A. Mizrahi is incorporated herein by reference to Exhibit 10.01 to the Company’s Form 10-Q for the quarter ended March 31, 2002                                                                                                                                                   |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                              |
| 10.36  |   | Employment Agreement dated April 3, 2002 between the Company and Paul E. Perkins is incorporated herein by reference to Exhibit 10.02 to the Company’s Form 10-Q for the quarter ended March 31, 2002                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                              |
| 10.37  |   | Employment Agreement dated April 16, 2002 between the Company and Patricia A. Nooney is incorporated herein by reference to Exhibit 10.03 to the Company’s Form 10-Q for the quarter ended March 31, 2002                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                              |
| 10.38  |   | Employment Agreement dated September 1, 2002 between the Company and Thomas N. Thurber is incorporated herein by reference to Exhibit 10.04 to the Company’s Form 10-Q for the quarter ended June 30, 2002 (Exhibits pursuant to the Agreement have not been filed by the Company, who hereby undertakes to file such exhibits upon the request of the SEC) |
|   |   |                                                                                                                                                                                                                                                                                                                                                              |
| 10.39  |   | Employment Agreement dated October 15, 2001 between the Company and William J. Carden is incorporated herein by reference to Exhibit 10.5 to the Company’s Form 10-Q for the quarter ended September 30, 2002                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                              |
| 10.40  |   | Letter Agreement dated February 25, 2003 between the Company and William J. Carden and John N. Galardi is incorporated herein by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2002                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                              |
| 10.41  |   | Letter Agreement dated February 25, 2003 between the Company and CGS Real Estate Company, Inc. is incorporated herein by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2002                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                              |
| 10.42  |   | Letter Agreement dated February 25, 2003 between the Company and William J. Carden and John N. Galardi is incorporated herein by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2002                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                              |
| 10.43  |   | Amendment No. 1 to Employment Agreement dated October 6, 2003 between the Company and Patricia A. Nooney incorporated herein by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2003                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                              |
| 10.44  |   | Purchase Agreement dated December 15, 2009 between the Company and Evergreen Parties incorporated herein by reference to the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2009                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                              |
| 10.45  |   | Letter Agreement to Purchase Agreement dated December 18, 2009 between the Company and Evergreen Parties (First Amendment to Purchase Agreement) incorporated herein by reference to the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2009                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                              |
| 10.46  |   | Second Amendment to Purchase Agreement dated January 17, 2010 between the Company and Evergreen Parties incorporated herein by reference to the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2009                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                              |
| 21     |   | Significant Subsidiaries of the Company                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                              |
| 23.1   |   | EEPB, PC Consent – Form 10-K                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                              |
| 23.2   |   | Hein & Associates, LLP Consent – Form 10-K                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                              |
| 31.1   |   | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act                                                                                                                                                                                                                                                                        |

----

| 31.2   |   | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act                                                       |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                             |
| 32.1   |   | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|   |   |                                                                                                                                             |
| 32.2   |   | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |

----

| Corporations                                         | State of Organization |
|------------------------------------------------------|-----------------------|
| American Spectrum Management Group, Inc.             | Delaware              |
|                                                 |                  |
| Limited Partnerships                                 |                  |
| American Spectrum Realty Operating Partnership, L.P. | Delaware              |
| ASR Park Ten 350, L.P.                               | Texas                 |
| ASR Park Ten 360, L.P.                               | Texas                 |
| ASR 2401 Fountainview, L.P                           | Delaware              |
| ASR 2620-2630 Fountainview, LP                       | Delaware              |
| ASR 5450 NW, L.P.                                    | Delaware              |
| ASR 5850 San Felipe, L.P.                            | Delaware              |
| ASR 6677 Gessner, L.P.                               | Delaware              |
| ASR 11500 NW, L.P.                                   | Delaware              |
| ASR Washington, L.P.                                 | Texas                 |
| ASR-8 Centre, L.P.                                   | Delaware              |
| ASR-1501 Mockingbird, L.P.                           | Delaware              |
| ASR-2855 Mangum, L.P.                                | Delaware              |
| ASR-6420 Richmond Atrium, L.P.                       | Delaware              |
| ASR-6430 Richmond Atrium, L.P.                       | Delaware              |
| ASR-Beltway Industrial, L.P.                         | Delaware              |
| ASR-Fountain View Place, L.P.                        | Delaware              |
| ASR-Parkway One & Two, L.P.                      | Delaware              |
| ASR-West Gray, L.P.                                  | Delaware              |
| ASR-Windrose, L.P.                                   | Delaware              |
| Nooney Rider Trail, L.P.                             | Delaware              |
| Sierra Pacific Development Fund II, L.P.             | Delaware              |
| Sabo Road Acquisitions, LP                           | Delaware              |
|                                                 |                  |
| Limited Liability Companies                          |                  |
| American Spectrum Holdings (Washington), LLC         | Delaware              |
| American Spectrum Investments, LLC                   | Delaware              |
| American Spectrum Realty Advisors, LLC               | Delaware              |
| American Spectrum Realty Management, LLC             | Delaware              |
| American Spectrum Realty-1501 Mockingbird, LLC       | Delaware              |
| American Spectrum Realty-2855 Mangum, LLC            | Delaware              |
| American Spectrum Realty-6420 Richmond Atrium, LLC   | Delaware              |
| American Spectrum Realty-6430 Richmond Atrium, LLC   | Delaware              |
| American Spectrum Realty 5850 San Felipe, LLC        | Delaware              |
| American Spectrum Realty 5450 NW, LLC                | Delaware              |
| American Spectrum Realty 11500 NW, LLC               | Delaware              |
| American Spectrum Realty-8 Centre, LLC               | Delaware              |
| American Spectrum Realty-1501 Mockingbird, LLC       | Delaware              |
| American Spectrum Realty-6420 Richmond, LLC          | Delaware              |
| American Spectrum Realty-6430 Richmond, LLC          | Delaware              |
| American Spectrum Realty-Beltway Industrial, LLC     | Delaware              |
| American Spectrum Realty-Fountain View Place, LLC    | Delaware              |
| American Spectrum Realty-Parkway One & Two, LLC  | Delaware              |
| American Spectrum Realty-Windrose, LLC               | Delaware              |
| ASR 2401 Fountainview, LLC                           | Delaware              |
| ASR 2620-2630 Fountainview GP, LLC                   | Delaware              |
| ASR 6677 Gessner, LLC                                | Delaware              |
| ASR Centennial Park, LLC                             | Delaware              |
| ASR-Newport, L.L.C.                                  | Delaware              |
| ASR NRT, LLC                                         | Delaware              |
| ASR-Risk Management, L.L.C.                          | Delaware              |

----

| ASR-West Gray, LLC                      | Delaware   |
|-----------------------------------------|------------|
| Back Bay, LLC                           | Delaware   |
| Centennial Park Kansas, LLC             | Delaware   |
| McDonnell Associates, LLC               | Delaware   |
| Nooney Income Fund II, LLC              | Delaware   |
| Nooney Real Property Investors Two, LLC | Delaware   |
| Pacific Spectrum, LLC                   | Arizona    |
| Sabo Road Manager, LLC                  | Delaware   |
| Seventy Seven, LLC                      | Delaware   |
| Sierra Creekside, LLC                   | Delaware   |
| Sierra Pacific Development Fund II, LLC | Delaware   |
| Sierra Pacific Development Fund, LLC    | Delaware   |
| Sierra Southwest Pointe, LLC            | Delaware   |
| Tampa Ocala Acquisitions, LLC           | Delaware   |
|                                    |       |
| Partnerships                            |       |
| Sierra Creekside Partners               | California |
| Sierra Mira Mesa Partners               | California |

----