| State of Maryland                        |   | 52-2258674          |
|------------------------------------------|--------|---------------------|
| (State or other jurisdiction of          |   | (I.R.S. Employer    |
| incorporation or organization)           |   | Identification No.) |
|                                     |   |                |
| 2401 Fountain View, Suite 510            |   |                |
| Houston, Texas 77057                     |   | 77057               |
| (Address of principal executive offices) |   | (Zip Code)          |

| (713) 706-6200                                             |
|------------------------------------------------------------|
| (Registrant’s telephone number, including area code) |

|                                                                              |
|-----------------------------------------------------------------------------------|
| (Former name, former address and former fiscal year, if changed since last report |

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|          |         |                                                                                                           |         | Page No.           |
|--------------------|--------------|----------------------------------------------------------------------------------------------------------------|--------------|--------------------|
| PART I             |         | FINANCIAL INFORMATION                                                                                          |         |               |
|               |         |                                                                                                           |         |               |
| Item 1             |         | Financial Statements                                                                                           |         | 3                  |
|               |         | Consolidated Condensed Balance Sheets at March 31, 2010 (unaudited) and December 31, 2009                      |         | 3                  |
|               |         | Consolidated Condensed Statements of Operations for the three months ended March 31, 2010 and 2009 (unaudited) |         | 4                  |
|               |         | Consolidated Statement of Equity (Deficit) for the three months ended March 31, 2010                           |         | 5                  |
|               |         | Consolidated Condensed Statements of Cash Flows for the three months ended March 31, 2010 and 209 (unaudited)  |         | 6                  |
|               |         | Notes to Consolidated Condensed Financial Statements                                                           |         | 7                  |
| Item 2             |         | Management’s Discussion and Analysis of Financial Condition and Results of Operations                    |         | 23                 |
| Item 4T            |         | Controls and Procedures                                                                                        |         | 30                 |
|     |         |                                                                                                 |         |     |
| PART II            |         | OTHER INFORMATION                                                                                              |         |               |
|               |         |                                                                                                           |         |               |
| Item 1             |         | Legal Proceedings                                                                                              |         | 30                 |
| Item 6             |    | Exhibits and Reports on Form 8-K                                                                               |    | 30                 |

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|                                                                                                                                                                     |   | March 31,2010(Restated) |    |   | December 31,2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|--------|-----------------------|--------|
|                                                                                                                                                                          |   |                         |    |   |                  |   |
| ASSETS                                                                                                                                                                        |   |                         |    |   |                  |   |
|                                                                                                                                                                          |   |                         |    |   |                  |   |
| Real estate held for investment (includes $21,777 from consolidated VIE at Mar 31, 2010)                                                                                      |   | $                            | 274,300 |   |                  | $      | 251,336 |   |
| Accumulated depreciation                                                                                                                                                      |   |                         | (75,677 | )      |                  |   | (72,404 | ) |
| Real estate held for investment, net (includes $21,777 from consolidated VIE at Mar 31, 2010)                                                                                 |   |                         | 198,623 |   |                  |   | 178,932 |   |
|                                                                                                                                                                          |   |                         |    |   |                  |   |   |   |
| Real estate held for sale                                                                                                                                                     |   |                         | -       |   |                  |   | 6,364 |   |
| Cash and cash equivalents                                                                                                                                                     |   |                         | 5,058   |   |                  |   | 462 |   |
| Restricted cash (includes $925 from consolidated VIE at Mar 31, 2010)                                                                                                         |   |                         | 1,917   |   |                  |   | 992 |   |
| Tenant and other receivables, net of allowance for doubtful accounts of $767 and $701, respectively                                                                           |   |                         | 1,896   |   |                  |   | 891 |   |
| Deferred rents receivable                                                                                                                                                     |   |                         | 1,992   |   |                  |   | 1,883 |   |
| Deferred tax asset                                                                                                                                                            |   |                         | 8,418   |   |                  |   | 8,813 |   |
| Investment in management company                                                                                                                                              |   |                         | 4,000   |   |                  |   | 4,000 |   |
| Investments in unconsolidated real estate assets from related parties                                                                                                         |   |                         | 375     |   |                  |   | - |   |
| Purchased intangibles subject to amortization                                                                                                                                 |   |                         | 13,287  |   |                  |   | - |   |
| Goodwill                                                                                                                                                                      |   |                         | 4,003   |   |                  |   | - |   |
| Prepaid and other assets, net (includes $940 from consolidated VIE at Mar 31, 2010)                                                                                           |   |                         | 11,896  |   |                  |   | 12,749 |   |
| Total Assets                                                                                                                                                                  |   | $                            | 251,465 |   |                  | $      | 215,086 |   |
|                                                                                                                                                                          |   |                         |    |   |                  |   |   |   |
| LIABILITIES                                                                                                                                                                   |   |                         |    |   |                  |   |   |   |
|                                                                                                                                                                          |   |                         |    |   |                  |   |   |   |
| Liabilities:                                                                                                                                                                  |   |                         |    |   |                  |   |   |   |
| Notes payable (includes $15,234 from consolidated VIE at Mar 31, 2010)                                                                                                        |   | $                            | 219,097 |   |                  | $      | 193,920 |   |
| Liabilities related to real estate held for sale                                                                                                                              |   |                         | -       |   |                  |   | 6,091 |   |
| Accounts payable (includes $75 from consolidated VIE at Mar 31, 2010)                                                                                                         |   |                         | 6,452   |   |                  |   | 5,070 |   |
| Liabilities related to insurance claims                                                                                                                                       |   |                         | 1,443   |   |                  |   | 1,474 |   |
| Accrued and other liabilities (includes $848 from consolidated VIE at Mar 31, 2010)                                                                                           |   |                         | 9,279   |   |                  |   | 9,520 |   |
| Total Liabilities                                                                                                                                                             |   |                         | 236,271 |   |                  |   | 216,075 |   |
|                                                                                                                                                                          |   |                         |    |   |                  |   |   |   |
| Commitments and Contingencies (Note 10):                                                                                                                                      |   |                         |    |   |                  |   |   |   |
|                                                                                                                                                                          |   |                         |    |   |                  |   |   |   |
| Non-controlling interest classified as temporary equity                                                                                                                       |   |                         | 1,785   |   |                  |   | 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, 3,394,206 and 3,291,310 shares, respectively; outstanding, 2,922,794 and 2,819,898 shares, respectively |   |                         | 34      |   |                  |   | 33 |   |
| Additional paid-in capital                                                                                                                                                    |   |                         | 49,092  |   |                  |   | 48,546 |   |
| Accumulated deficit                                                                                                                                                           |   |                         | (52,052 | )      |                  |   | (52,472 | ) |
| Treasury stock, at cost, 471,412 and 471,412 shares, respectively                                                                                                             |   |                         | (3,095  | )      |                  |   | (3,095 | ) |
| Total American Spectrum Realty, Inc. stockholders’ (deficit) equity                                                                                                     |   |                         | (6,020  | )      |                  |   | (6,987 | ) |
| Non-controlling interests                                                                                                                                                     |   |                         | 19,429  |   |                  |   | 2,036 |   |
| Total Equity (Deficit)                                                                                                                                                        |   |                         | 13,409  |   |                  |   | (4,951 | ) |
|                                                                                                                                                                          |   |                         |    |   |                  |   |   |   |
| Total Liabilities and Equity (Deficit)                                                                                                                                        |   | $                            | 251,465 |   |                  | $      | 215,086 |   |

----

|                                                                                                   |   | Three Months Ended March 31, |      |
|--------------------------------------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                                                   |   | 2010                         |      |   | 2009 |   |
|                                                                                                   |   | (Restated)                   |      |   |   |   |
| REVENUES:                                                                                              |   |                         |      |   |   |   |
| Rental revenue                                                                                         |   | $                            | 8,183     |   |   | $ | 8,440 |   |
| Third party management and leasing revenue                                                             |   |                         | 964       |   |   |   | 17 |   |
| Interest and other income                                                                              |   |                         | 64        |   |   |   | 8 |   |
| Total revenues                                                                                         |   |                         | 9,211     |   |   |   | 8,465 |   |
|                                                                                                   |   |                         |      |   |   |   |   |   |
| EXPENSES:                                                                                              |   |                         |      |   |   |   |   |   |
| Property operating expense                                                                             |   |                         | 3,625     |   |   |   | 3,893 |   |
| Corporate general and administrative                                                                   |   |                         | 1,622     |   |   |   | 870 |   |
| Depreciation and amortization                                                                          |   |                         | 3,761     |   |   |   | 3,597 |   |
| Interest expense                                                                                       |   |                         | 3,400     |   |   |   | 3,295 |   |
| Total expenses                                                                                         |   |                         | 12,408    |   |   |   | 11,655 |   |
|                                                                                                   |   |                         |      |   |   |   |   |   |
| Loss from continuing operations before deferred income tax benefit                                     |   |                         | (3,197    | ) |   |   | (3,190 | ) |
|                                                                                                   |   |                         |      |   |   |   |   |   |
| Deferred income tax benefit                                                                            |   |                         | 1,204     |   |   |   | 1,110 |   |
|                                                                                                   |   |                         |      |   |   |   |   |   |
| Loss from continuing operations                                                                        |   |                         | (1,993    | ) |   |   | (2,080 | ) |
|                                                                                                   |   |                         |      |   |   |   |   |   |
| Discontinued operations:                                                                               |   |                         |      |   |   |   |   |   |
| Income from operations                                                                                 |   |                         | 173       |   |   |   | 45 |   |
| Gain on sale of discontinued operations                                                                |   |                         | 4,315     |   |   |   | - |   |
| Income tax expense                                                                                     |   |                         | (1,641    | ) |   |   | (16 | ) |
| Income from discontinued operations                                                                    |   |                         | 2,847     |   |   |   | 29 |   |
|                                                                                                   |   |                         |      |   |   |   |   |   |
| Net income (loss), including noncontrolling interests                                                  |   | $                            | 854       |   |   | $ | (2,051 | ) |
|                                                                                                   |   |                         |      |   |   |   |   |   |
| Plus:  Net (income) loss attributable to noncontrolling interests                            |   |                         | (434      | ) |   |   | 250 |   |
|                                                                                                   |   |                         |      |   |   |   |   |   |
| Net income (loss) attributable to American Spectrum Realty, Inc.                                       |   |                         | 420       |   |   |   | (1,801 | ) |
|                                                                                                   |   |                         |      |   |   |   |   |   |
| Preferred stock dividend                                                                               |   |                         | (60       | ) |   |   | (60 | ) |
|                                                                                                   |   |                         |      |   |   |   |   |   |
| Net income (loss) attributable to American Spectrum Realty, Inc. common stockholders                   |   | $                            | 360       |   |   | $ | (1,861 | ) |
|                                                                                                   |   |                         |      |   |   |   |   |   |
| Basic and diluted per share data:                                                                      |   |                         |      |   |   |   |   |   |
| Loss from continuing operations attributable to American Spectrum Realty, Inc. common stockholders     |   | $                            | (0.56     | ) |   | $ | (0.65 | ) |
| Income from discontinued operations attributable to American Spectrum Realty, Inc. common stockholders |   |                         | 0.71      |   |   |   | 0.01 |   |
| Net income (loss) attributable to American Spectrum Realty, Inc. common stockholders                   |   | $                            | 0.15      |   |   | $ | (0.64 | ) |
|                                                                                                   |   |                         |      |   |   |   |   |   |
| Basic and diluted weighted average shares used                                                         |   |                         | 2,854,196 |   |   |   | 2,795,330 |   |
|                                                                                                   |   |                         |      |   |   |   |   |   |
| Amounts attributable to American Spectrum Realty, Inc. common stockholders:                            |   |                         |      |   |   |   |   |   |
| Loss from continuing operations                                                                        |   | $                            | (1,591    | ) |   | $ | (1,827 | ) |
| Income from discontinuing operations                                                                   |   | $                            | 2,011     |   |   | $ | 26 |   |
| Net income (loss)                                                                                      |   | $                            | 360       |   |   | $ | (1,861 | ) |

----

|                                                                  |   | PreferredShares |   |   | CommonShares |   |      | Non-controllingInterests |   |   | Pre-ferredStock |   |   | CommonStock |   |   | AdditionalPaid-InCapital |   |   | Accum-ulatedDeficit |   |   | TreasuryStock |   |   | TotalEquity(Deficit) |    |
|----------------------------------------------------------------------------|--------|-----------------|--------|--------|--------------|--------|-----------|--------------------------|--------|--------|-----------------|--------|--------|-------------|--------|--------|--------------------------|--------|--------|---------------------|--------|--------|---------------|--------|--------|----------------------|---------|
| Balance, December 31, 2009  (audited)                            |   |            | 55,172 |   |         |   | 1,645,655 |                     |   | $      | 2,036           |   |   | $           | 1      |   |                     | $      | 16     |                |   | $      | 48,563        |   |   | $                    | (52,472 | ) |   | $ | (3,095 | ) |   | $ | (4,951 | ) |
| Issuance of one-for-one stock dividend                                     |   |            |   |   |         |   | 1,645,655 |                     |   |   |            |   |   |        |   |   |                     |   | 18     |                |   |   | (18           | )      |   |                 | -       |   |   |   | - |   |   |   | - |   |
| Conversion of operating partnership units to common stock        |   |            |   |   |         |   | 102,896   |                     |   |   | (211            | )      |   |        | -      |   |                     |   | -      |                |   |   | 211           |   |   |                 | -       |   |   |   | - |   |   |   | - |   |
| Issuance of operating partnership units                                    |   |            |   |   |         |   | -         |                     |   |   | 8,000           |   |   |        | -      |   |                     |   | -      |                |   |   | -             |   |   |                 | -       |   |   |   | - |   |   |   | 8,000 |   |
| Consolidation of VIE                                                       |   |            |   |   |         |   |      |                     |   |   | 7,485           |   |   |        | -      |   |                     |   | -      |                |   |   | -             |   |   |                 | -       |   |   |   | - |   |   |   | 7,485 |   |
| Acquisition of non-controlling interest in the operating partnership       |   |            |   |   |         |   |      |                     |   |   | (10             | )      |   |        | -      |   |                     |   | -      |                |   |   | -             |   |   |                 | -       |   |   |   | - |   |   |   | (10 | ) |
| Reclassification of non-controlling interest from temporary equity         |   |            |   |   |         |   |      |                     |   |   | 2,177           |   |   |        | -      |   |                     |   | -      |                |   |   | -             |   |   |                 | -       |   |   |   | - |   |   |   | 2,177 |   |
| Reclassification of non-controlling interest to additional paid-in capital |   |            |   |   |         |   |      |                     |   |   | (370            | )      |   |        | -      |   |                     |   | -      |                |   |   | 370           |   |   |                 | -       |   |   |   | - |   |   |   | - |   |
| Distributions to non-controlling interests                                 |   |            |   |   |         |   |      |                     |   |   | (112            | )      |   |        | -      |   |                     |   | -      |                |   |   | -             |   |   |                 | -       |   |   |   | - |   |   |   | (112 | ) |
| Non-controlling interests share of income                                  |   |            |   |   |         |   |      |                     |   |   | 434             |   |   |        | -      |   |                     |   | -      |                |   |   | -             |   |   |                 | -       |   |   |   | - |   |   |   | 434 |   |
| Preferred stock dividends                                                  |   |            |   |   |         |   |      |                     |   |   | -               |   |   |        | -      |   |                     |   | -      |                |   |   | (60           | )      |   |                 | -       |   |   |   | - |   |   |   | (60 | ) |
| Stock-based compensation                                                   |   |            |   |   |         |   |      |                     |   |   | -               |   |   |        | -      |   |                     |   | -      |                |   |   | 26            |   |   |                 | -       |   |   |   | - |   |   |   | 26 |   |
| Net income                                                                 |   |            |   |   |         |   |      |                     |   |   | -               |   |   |        | -      |   |                     |   | -      |                |   |   | -             |   |   |                 | 420     |   |   |   | - |   |   |   | 420 |   |
| Balance, March 31, 2010  (unaudited)                             |   |            | 55,172 |   |         |   | 3,394,206 |                     |   | $      | 19,429          |   |   | $           | 1      |   |                     | $      | 34     |                |   | $      | 49,092        |   |   | $                    | (52,052 | ) |   | $ | (3,095 | ) |   | $ | 13,409 |    |

----

|                                                                                               |   | Three Months Ended March 31, |   |
|----------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                                               |   | 2010(Restated)                                   |   |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                              |   |                                             |   |   |   |   |
| Net income (loss)                                                                                  |   | $                                                | 854    |   |   | $ | (2,051 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |   |                                             |   |   |   |   |   |   |
| Depreciation and amortization                                                                      |   |                                             | 3,769  |   |   |   | 3,712 |   |
| Gain on sale of real estate asset                                                                  |   |                                             | (4,315 | ) |   |   | - |   |
| Income tax benefit                                                                                 |   |                                             | 437    |   |   |   | (1,094 | ) |
| Deferred rental income                                                                             |   |                                             | (107   | ) |   |   | (62 | ) |
| Stock-based compensation expense                                                                   |   |                                             | 26     |   |   |   | 20 |   |
| Amortization of note payable premium, included in interest expense                                 |   |                                             | -      |   |   |   | (11 | ) |
| Changes in operating assets and liabilities:                                                       |   |                                             |   |   |   |   |   |   |
| Increase in tenant and other receivables                                                           |   |                                             | (798   | ) |   |   | (314 | ) |
| Increase (decrease) in accounts payable                                                            |   |                                             | 792    |   |   |   | (217 | ) |
| Decrease in prepaid and other assets                                                               |   |                                             | 1,683  |   |   |   | 1,706 |   |
| Decrease in accrued and other liabilities                                                          |   |                                             | (1,801 | ) |   |   | (2,137 | ) |
| Net cash provided by (used in) operating activities:                                               |   |                                             | 540    |   |   |   | (448 | ) |
|                                                                                               |   |                                             |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                              |   |                                             |   |   |   |   |   |   |
| Proceeds received from sales of real estate assets                                                 |   |                                             | 10,166 |   |   |   | - |   |
| Capital improvements to real estate assets                                                         |   |                                             | (1,044 | ) |   |   | (878 | ) |
| Advance to third party                                                                             |   |                                             | (200   | ) |   |   | - |   |
| Proceeds received related to insurance claims                                                      |   |                                             | -      |   |   |   | 1,350 |   |
| Payments for damages related to insurance claims                                                   |   |                                             | (31    | ) |   |   | (742 | ) |
| Net cash provided by (used in) investing activities:                                               |   |                                             | 8,891  |   |   |   | (270 | ) |
|                                                                                               |   |                                             |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                              |   |                                             |   |   |   |   |   |   |
| Proceeds from borrowings                                                                           |   |                                             | 1,250  |   |   |   | - |   |
| Repayment of borrowings – property sales                                                     |   |                                             | (5,317 | ) |   |   | - |   |
| Repayment of borrowings – scheduled payments                                                 |   |                                             | (580   | ) |   |   | (599 | ) |
| Acquisition of non-controlling interest in the operating partnership                               |   |                                             | (10    | ) |   |   | - |   |
| Dividend payments to preferred stockholders                                                        |   |                                             | (43    | ) |   |   | - |   |
| Distributions to non-controlling interests                                                         |   |                                             | (135   | ) |   |   | - |   |
| Net cash used in financing activities:                                                             |   |                                             | (4,835 | ) |   |   | (599 | ) |
|                                                                                               |   |                                             |   |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                                   |   |                                             | 4,596  |   |   |   | (1,317 | ) |
|                                                                                               |   |                                             |   |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                                                     |   |                                             | 462    |   |   |   | 2,092 |   |
|                                                                                               |   |                                             |   |   |   |   |   |   |
| Cash and cash equivalents, end of period                                                           |   | $                                                | 5,058  |   |   | $ | 775 |   |
|                                                                                               |   |                                             |   |   |   |   |   |   |
| 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  |   |   |   | - |   |
| Financing in connection with Evergreen acquisition                                                 |   |                                             | 9,500  |   |   |   | - |   |
|                                                                                               |   |                                             |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:                                                 |   |                                             |   |   |   |   |   |   |
| Cash paid for interest                                                                             |   | $                                                | 3,931  |   |   | $ | 3,401 |   |
| Cash paid for income taxes                                                                         |   |                                             | 40     |   |   |   | 19 |   |

----

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|   | · | the amount of any gain or loss recognized as the result of removal of the VIE’s assets, liabilities, and equity from our balance sheet; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the portion of any gain or loss related to the re-measurement to fair value of any retained investment in the VIE being derecognized; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the financial statement line item where the gain or loss relating to de-consolidation of the VIE is de-consolidated; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | the nature of our continued involvement (if any) with the former VIE or the entity acquiring the VIE after de-consolidation, and; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | · | whether the de-consolidation transaction occurs with a related party or if the transaction will cause the VIE to be a related party after de-consolidation. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                    |   | 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 three months March 31, 2010                  |   |
| (in thousands)                                       |   |
| Total Revenue                                        |   | $ | 9,837 |   |
| Total Expenses                                       |   |   | (13,091 | ) |
|                                                 |   |   |   |   |
| Net Income before Non-controlling Interest & Tax |   |   | (3,254 | ) |
|                                                 |   |   |   |   |
| Discontinued Operations                              |   |   | 2,847 |   |
| Deferred Tax Benefit                                 |   |   | 1,244 |   |
| Non-Controlling Interest                             |   |   | (517 | ) |
| Proforma net income                                  |   | $ | 320 |   |

| Evergreen component of the consolidated statement of operations |   |
|-----------------------------------------------------------------|--------|
| For the three months ended March 31, 2010 (unaudited)           |   |
| (in thousands)                                                  |   |
| Total Revenue                                                   |   | $ | 831 |   |
| Total Expenses                                                  |   |   | (876 | ) |
|                                                            |   |   |   |   |
| Net Loss before Noncontrolling Interest & Tax               |   |   | (45 | ) |
|                                                            |   |   |   |   |
| Deferred Tax Benefit                                            |   |   | 16 |   |
| Non-Controlling Interest                                        |   |   | 10 |   |
| Evergreen component of net loss                                 |   | $ | (19 | ) |

----

|                                         |   | March 31,   |   |
|----------------------------------------------|--------|-------------|--------|
| Variable interest entity amounts             |   | 2010        |   |
|                                         |   | (unaudited) |   |
| Assets                                       |   |        |   |
| Restricted Cash                              |   | $           | 925    |   |
| Fixed Assets, net of depreciation            |   |        | 21,777 |   |
| Other Assets                                 |   |        | 940    |   |
| Total Assets                                 |   | $           | 23,642 |   |
|                                         |   |        |   |   |
| Liabilities                                  |   |        |   |   |
| Accounts payable                             |   |        | 75     |   |
| Notes payable                                |   |        | 15,234 |   |
| Other liabilities                            |   |        | 848    |   |
| Total liabilities                            |   | $           | 16,157 |   |
|                                         |   |        |   |   |
| Variable interest entity net carrying amount |   | $           | 7,485  |   |

----

| Condensed Consolidated Balance Sheet |   | December 31,2009 |   |
|-----------------------------------------------------|--------|-----------------------|--------|
| Real estate                                         |   | $                     | 5,847  |   |
| Other                                               |   |                  | 517    |   |
| Real estate assets held for sale                    |   | $                     | 6,364  |   |
|                                                |   |                  |   |   |
| Notes payable, net                                  |   | $                     | 5,090  |   |
| Accounts payable                                    |   |                  | 515    |   |
| Accrued and other liabilities                       |   |                  | 486    |   |
| Liabilities related to real estate held for sale    |   | $                     | 6,091  |   |

| Condensed Statements of Operations                              |   | Three Months Ended March 31, |   |
|--------------------------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                                           |   | 2010                                             |   |   | 2009 |   |
| Rental revenue                                                                 |   | $                                                | 482    |   |   | $ | 451 |   |
| Total expenses (1)                                                             |   |                                             | (309   | ) |   |   | (406 | ) |
| Income from discontinued operations before gain on sale and income tax expense |   |                                             | 173    |   |   |   | 45 |   |
| Gain on sale of discontinued operations                                        |   |                                             | 4,315  |   |   |   | - |   |
| Income tax expense                                                             |   |                                             | (1,641 | ) |   |   | (16 | ) |
| Income from discontinued operations                                            |   | $                                                | 2,847  |   |   | $ | 29 |   |

----

|                                             |   |         |   | March 31, 2010 |    |   | December 31, 2009 |   |
|--------------------------------------------------|--------|--------------|--------|--------------------------|---------|--------|-----------------------------|--------|
| Property (unless otherwise noted) |   | MaturityDate |   | PrincipalBalance         |    |   | Interest Rate          |   |   | PrincipalBalance |   |   | InterestRate |   |
| Fixed Rate                                       |   |         |   |                     |    |   |                        |   |   |   |   |   |   |   |
| Corporate – Secured (1)                    |   | 2/7/2010     |   |                     | 1,950   |   |                        |   | 7.50 | % |   |   | 1,950 |   |   |   | 7.50 | % |
| Corporate – Unsecured                      |   | 5/31/2010    |   |                     | 500     |   |                        |   | 11.00 | % |   |   | 500 |   |   |   | 11.00 | % |
| Pacific Spectrum                                 |   | 6/10/2010    |   |                     | 5,234   |   |                        |   | 8.02 | % |   |   | 5,248 |   |   |   | 8.02 | % |
| 1501 Mockingbird/6430 Richmond                   |   | 9/21/2010    |   |                     | 890     |   |                        |   | 8.75 | % |   |   | 890 |   |   |   | 8.75 | % |
| Northwest Spectrum                               |   | 12/3/2010    |   |                     | 750     |   |                        |   | 8.75 | % |   |   | 750 |   |   |   | 8.75 | % |
| Corporate-Secured                                |   | 12/4/2010    |   |                     | 992     |   |                        |   | 4.50 | % |   |   | 992 |   |   |   | 4.50 | % |
| Fountain View Place (2)                          |   | 4/29/2011    |   |                     | 1,377   |   |                        |   | 10.00 | % |   |   | 1,423 |   |   |   | 10.00 | % |
| Bristol Bay                                      |   | 8/1/2011     |   |                     | 6,869   |   |                        |   | 7.58 | % |   |   | 6,899 |   |   |   | 7.58 | % |
| Technology                                       |   | 8/1/2011     |   |                     | 7,114   |   |                        |   | 7.44 | % |   |   | 7,131 |   |   |   | 7.44 | % |
| Creekside                                        |   | 12/1/2011    |   |                     | 5,788   |   |                        |   | 7.17 | % |   |   | 5,814 |   |   |   | 7.17 | % |
| 16350 Park Ten Place                             |   | 5/11/2012    |   |                     | 4,442   |   |                        |   | 7.45 | % |   |   | 4,466 |   |   |   | 7.45 | % |
| 16360 Park Ten Place                             |   | 5/11/2012    |   |                     | 3,481   |   |                        |   | 7.45 | % |   |   | 3,499 |   |   |   | 7.45 | % |
| 2855 Mangum                                      |   | 5/11/2012    |   |                     | 2,565   |   |                        |   | 7.45 | % |   |   | 2,575 |   |   |   | 7.45 | % |
| 2855 Mangum                                      |   | 5/11/2012    |   |                     | 1,408   |   |                        |   | 6.00 | % |   |   | 1,422 |   |   |   | 6.00 | % |
| 6430 Richmond Atrium                             |   | 5/11/2012    |   |                     | 2,153   |   |                        |   | 7.45 | % |   |   | 2,161 |   |   |   | 7.45 | % |
| Southwest Pointe                                 |   | 6/1/2012     |   |                     | 2,699   |   |                        |   | 7.33 | % |   |   | 2,710 |   |   |   | 7.33 | % |
| 16350 Park Ten Place                             |   | 8/11/2012    |   |                     | 490     |   |                        |   | 7.45 | % |   |   | 492 |   |   |   | 7.45 | % |
| 16360 Park Ten Place                             |   | 8/11/2012    |   |                     | 384     |   |                        |   | 7.45 | % |   |   | 386 |   |   |   | 7.45 | % |
| Corporate-Secured (3)                            |   | 3/5/2013     |   |                     | 987     |   |                        |   | 8.75 | % |   |   | - |   |   |   | - |   |
| 11500 Northwest Freeway                          |   | 6/1/2014     |   |                     | 4,061   |   |                        |   | 5.93 | % |   |   | 4,079 |   |   |   | 5.93 | % |
| 11500 Northwest Freeway                          |   | 6/1/2014     |   |                     | 293     |   |                        |   | 5.93 | % |   |   | 295 |   |   |   | 5.93 | % |
| Morenci                                          |   | 7/1/2014     |   |                     | 1,676   |   |                        |   | 7.25 | % |   |   | 1,689 |   |   |   | 7.25 | % |
| Northwest Corporate Center                       |   | 8/1/2014     |   |                     | 5,357   |   |                        |   | 6.26 | % |   |   | 5,370 |   |   |   | 6.26 | % |
| 14741 Yorktown                                   |   | 9/1/2014     |   |                     | 8,600   |   |                        |   | 5.32 | % |   |   | 8,600 |   |   |   | 5.32 | % |
| 8100 Washington                                  |   | 2/22/2015    |   |                     | 2,190   |   |                        |   | 5.59 | % |   |   | 2,196 |   |   |   | 5.59 | % |
| 8300 Bissonnet                                   |   | 5/1/2015     |   |                     | 4,516   |   |                        |   | 5.51 | % |   |   | 4,527 |   |   |   | 5.51 | % |
| 1501 Mockingbird                                 |   | 7/1/2015     |   |                     | 3,232   |   |                        |   | 5.28 | % |   |   | 3,239 |   |   |   | 5.28 | % |
| 5450 Northwest Central                           |   | 9/1/2015     |   |                     | 2,619   |   |                        |   | 5.38 | % |   |   | 2,631 |   |   |   | 5.38 | % |
| 800/888 Sam Houston Parkway                      |   | 12/29/2015   |   |                     | 4,610   |   |                        |   | 6.25 | % |   |   | 4,638 |   |   |   | 6.25 | % |
| 2401 Fountain View                               |   | 3/1/2016     |   |                     | 12,090  |   |                        |   | 5.82 | % |   |   | 12,139 |   |   |   | 5.82 | % |
| 12000 Westheimer/2470 Gray Falls                 |   | 1/1/2017     |   |                     | 7,343   |   |                        |   | 5.70 | % |   |   | 7,350 |   |   |   | 5.70 | % |
| 6420 Richmond Atrium                             |   | 6/5/2017     |   |                     | 6,352   |   |                        |   | 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    |   |                     | 12,479  |   |                        |   | 6.50 | % |   |   | 12,521 |   |   |   | 6.50 | % |
| Corporate-Secured (4)                            |   | 12/31/2019   |   |                     | 9,500   |   |                        |   | 5.00 | % |   |   | - |   |   |   | - |   |
|                                             |   | Subtotal     |   | $                        | 179,991 |   |                        |   |   |   |   | $ | 169,946 |   |   |   |   |   |
| Variable Rate                                    |   |         |   |                     |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Beltway Industrial (5)                           |   | 5/9/2010     |   |                     | 17,170  |   |                        |   | 7.00 | % |   |   | 17,170 |   |   |   | 7.00 | % |
| Corporate – Unsecured                      |   | 5/31/2010    |   |                     | 500     |   |                        |   | 6.00 | % |   |   | 500 |   |   |   | 6.00 | % |
| Northwest Spectrum                               |   | 4/19/2012    |   |                     | 2,960   |   |                        |   | 2.90 | % |   |   | 3,013 |   |   |   | 2.90 | % |
| Windrose Plaza                                   |   | 4/19/2012    |   |                     | 2,742   |   |                        |   | 2.90 | % |   |   | 2,791 |   |   |   | 2.90 | % |
| Corporate – Unsecured                      |   | 12/12/2013   |   |                     | 500     |   |                        |   | 6.00 | % |   |   | 500 |   |   |   | 6.00 | % |
|                                             |   | Subtotal     |   | $                        | 23,872  |   |                        |   |   |   |   | $ | 23,974 |   |   |   |   |   |
| ASR Notes Payable                                |   | Total        |   | $                        | 203,863 |   |                        |   |   |   |   | $ | 193,920 |   |   |   |   |   |
| VIE Note Payable – See Note 4              |   |         |   | $                        | 15,234  |   |                        |   |   |   |   | $ | - |   |   |   |   |   |
| Balance Sheet Notes Payable                      |   | Total        |   | $                        | 219,097 |   |                        |   |   |   |   | $ | 193,920 |   |   |   |   |   |

| (1) | The Company is currently negotiating a maturity extension on the note with the lender. |
|-----|----------------------------------------------------------------------------------------|

| (2) | In April 2010, the Company made a principal payment of $240,000 on the note and the lender extended the maturity date of the note to April 29, 2011. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Represents bank loan in the amount of $1,000,000 obtained in March 2010. |
|-----|--------------------------------------------------------------------------|

| (4) | Represents promissory note issued by the Company in January 2010 in connection with the Evergreen acquisition. |
|-----|----------------------------------------------------------------------------------------------------------------|

| (5) | The loan contains two one-year extension options.  The extension options are contingent upon satisfaction of certain terms and conditions required by the lender. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                                                                                                          |   | Three MonthsEnded March 31,2010 |   |   | Three MonthsEnded March 31,2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|--------|------------------------------------------------|--------|
| Net income (loss) attributable to the Company                                                                                                                                 |   | $                                              | 509    |   |                                           | $      | (1,801 | ) |
| Transfers from noncontrolling interests                                                                                                                                       |   |                                           |   |   |                                           |   |   |   |
| 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 equity sale of consolidated partnership interests             |   | $                                              | 370    |   |                                           |   | - |   |
| Net transfers from noncontrolling interests                                                                                                                                   |   | $                                              | 581    |   |                                           | $      | 314 |   |
| Change from net income (loss) attributable to the Company on exchange of OP Units for shares of Common Stock and reclassification of preferred interest from temporary equity |   | $                                              | 1,090  |   |                                           | $      | (1,487 | ) |

|                                        |   | SharesUnder Option |   |   | Weighted AverageExercise Price |   |   | AggregateIntrinsic Value |   |
|---------------------------------------------|--------|-------------------------|--------|--------|------------------------------------------|--------|--------|-------------------------------|--------|
| Outstanding on January 1, 2010              |   |                    | 58,750 |   |                                     | $      | 11.97  |                          |   |   |   |
| Granted                                     |   |                    | -      |   |                                     |   | -      |                          |   |   |   |
| Forfeited                                   |   |                    | -      |   |                                     |   | -      |                          |   |   |   |
| Exercised                                   |   |                    | -      |   |                                     |   | -      |                          |   |   |   |
| Outstanding on March 31, 2010               |   |                    | 58,750 |   |                                     | $      | 11.97  |                          |   | $ | 95,838 |   |
|                                        |   |                    |   |   |                                     |   |   |                          |   |   |   |   |
| Exercisable as of  March 31, 2010 |   |                    | 58,750 |   |                                     | $      | 11.97  |                          |   | $ | 95,838 |   |

----

| Range ofExercisePrice |   |   | NumberExercisable |   | Weighted AverageRemainingContractualLife |      | WeightedAverageExercisePrice |   |
|----------------------------|--------|--------|-------------------|--------|-----------------------------------------------|-----------|------------------------------|--------|
| $4.05 - $6.10              |   |   |              | 25,000 |                                          | 4.0 years |                         | $      | 5.33 |   |
| $9.13 - $13.58             |   |   |              | 22,500 |                                          | 4.4 years |                         | $      | 10.33 |   |
| $30.00 - $30.00            |   |   |              | 11,250 |                                          | 1.5 years |                         | $      | 30.00 |   |

| Restricted Stock Awards |   | Number ofShares |   |   | Weighted Average GrantDate Fair Value |   |
|-----------------------------------|--------|----------------------|--------|--------|-----------------------------------------------------------|--------|
| Nonvested at January 1, 2010      |   |                 | 20,012 |   |                                                      | $      | 10.72 |   |
| Granted                           |   |                 | -      |   |                                                      |   | - |   |
| Vested                            |   |                 | -      |   |                                                      |   | - |   |
| Forfeited                         |   |                 | -      |   |                                                      |   | - |   |
| Nonvested at March 31, 2010       |   |                 | 20,012 |   |                                                      | $      | 10.72 |   |

----

----

|                                                                                                   |   | As PreviouslyReported |   |   | 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                                                         |   |                       | 964    |   |       |   | -      |     |   |   | 964 |   |
| Interest and other income                                                                              |   |                       | 64     |   |       |   | -      |     |   |   | 64 |   |
| Total revenues                                                                                         |   |                       | 9,211  |   |       |   | -      |     |   |   | 9,211 |   |
|                                                                                                   |   |                       |   |   |       |   |   |     |   |   |   |   |
| Property operating expense                                                                             |   |                       | 3,625  |   |       |   | -      |     |   |   | 3,625 |   |
| Corporate general and administrative                                                                   |   |                       | 1,622  |   |       |   | -      |     |   |   | 1,622 |   |
| Depreciation and amortization                                                                          |   |                       | 3,570  |   |       |   | 191    |     |   |   | 3,761 |   |
| Interest expense                                                                                       |   |                       | 3,400  |   |       |   | -      |     |   |   | 3,400 |   |
| Total expenses                                                                                         |   |                       | 12,217 |   |       |   | 191    |     |   |   | 12,408 |   |
|                                                                                                   |   |                       |   |   |       |   |   |     |   |   |   |   |
| Loss from continuing operations before deferred income tax benefit                                     |   |                       | (3,006 | )      |       |   | (191   | )        |   |   | (3,197 | ) |
|                                                                                                   |   |                       |   |   |       |   |   |     |   |   |   |   |
| Deferred income tax benefit                                                                            |   |                       | 1,134  |   |       |   | 70     |     |   |   | 1,204 |   |
|                                                                                                   |   |                       |   |   |       |   |   |     |   |   |   |   |
| Loss from continuing operations                                                                        |   |                       | (1,872 | )      |       |   | (121   | )        |   |   | (1,993 | ) |
|                                                                                                   |   |                       |   |   |       |   |   |     |   |   |   |   |
| Income from discontinued operations                                                                    |   |                       | 2,847  |   |       |   | -      |     |   |   | 2,847 |   |
|                                                                                                   |   |                       |   |   |       |   |   |     |   |   |   |   |
| Net income (loss), including non-controlling interests                                                 |   |                       | 975    |   |       |   | (121   | )        |   |   | 854 |   |
|                                                                                                   |   |                       |   |   |       |   |   |     |   |   |   |   |
| Net income attributable to non-controlling interests                                                   |   |                       | (466   | )      |       |   | 32     |     |   |   | (434 | ) |
|                                                                                                   |   |                       |   |   |       |   |   |     |   |   |   |   |
| Net income attributable to American Spectrum Realty, Inc.                                              |   |                       | 509    |   |       |   | (89    | )        |   |   | 420 |   |
|                                                                                                   |   |                       |   |   |       |   |   |     |   |   |   |   |
| Preferred stock dividend                                                                               |   |                       | (60    | )      |       |   | -      |     |   |   | (60 | ) |
|                                                                                                   |   |                       |   |   |       |   |   |     |   |   |   |   |
| Net income attributable to American Spectrum Realty, Inc. common stockholders                          |   |                       | 449    |   |       |   | (89    | )        |   |   | 360 |   |
|                                                                                                   |   |                       |   |   |       |   |   |     |   |   |   |   |
| Basic and diluted per share data:                                                                      |   |                       |   |   |       |   |   |     |   |   |   |   |
| Loss from continuing operations attributable to American Spectrum Realty, Inc. common stockholders     |   |                       | (0.53  | )      |       |   | (0.03  | )        |   |   | (0.56 | ) |
| Income from discontinued operations attributable to American Spectrum Realty, Inc. common stockholders |   |                       | .71    |   |       |   | -      |     |   |   | .71 |   |
| Net income attributable to American Spectrum Realty, Inc. common stockholders                          |   | $                          | 0.18   |   |       | $      | (0.03  | )        |   | $ | 0.15 |   |

----

| 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 | ) |
| Cash and cash equivalents                                                 |   |   | 5,058   |   |   |   | -      |   |   |   | 5,058 |   |
| Restricted cash                                                           |   |   | 992     |   |   |   | 925    |   |   |   | 1,917 |   |
| Tenant and other receivables, net of allowance for doubtful accounts      |   |   | 1,896   |   |   |   | -      |   |   |   | 1,896 |   |
| Deferred rents receivable                                                 |   |   | 1,992   |   |   |   | -      |   |   |   | 1,992 |   |
| Deferred tax asset                                                        |   |   | 8,348   |   |   |   | 70     |   |   |   | 8,418 |   |
| Investment in management company                                          |   |   | 4,000   |   |   |   | -      |   |   |   | 4,000 |   |
| 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    |   |   |   | 11,896 |   |
| Total Assets                                                              |   | $      | 227,944 |   |   | $      | 23,521 |   |   | $ | 251,465 |   |
|                                                                      |   |   |    |   |   |   |   |   |   |   |   |   |
| Notes payable                                                             |   | $      | 203,863 |   |   | $      | 15,234 |   |   | $ | 219,097 |   |
| Accounts payable                                                          |   |   | 6,377   |   |   |   | 75     |   |   |   | 6,452 |   |
| Liabilities related to insurance claims                                   |   |   | 1,443   |   |   |   | -      |   |   |   | 1,443 |   |
| Accrued and other liabilities                                             |   |   | 8,431   |   |   |   | 848    |   |   |   | 9,279 |   |
| Total Liabilities                                                         |   | $      | 220,114 |   |   | $      | 16,157 |   |   | $ | 236,271 |   |
|                                                                      |   |   |    |   |   |   |   |   |   |   |   |   |
| Non-controlling interest classified as temporary equity                   |   | $      | 1,785   |   |   |   | -      |   |   | $ | 1,785 |   |
|                                                                      |   |   |    |   |   |   |   |   |   |   |   |   |
| Equity:                                                                   |   |   |    |   |   |   |   |   |   |   |   |   |
| Preferred stock                                                           |   | $      | 1       |   |   | $      | -      |   |   | $ | 1 |   |
| Common stock                                                              |   |   | 34      |   |   |   | -      |   |   |   | 34 |   |
| Additional paid-in capital                                                |   |   | 49,092  |   |   |   | -      |   |   |   | 49,092 |   |
| Accumulated deficit                                                       |   |   | (51,963 | )      |   |   | (89    | )      |   |   | (52,052 | ) |
| Treasury stock                                                            |   |   | (3,095  | )      |   |   | -      |   |   |   | (3,095 | ) |
| Total American Spectrum Realty, Inc. stockholders’ (deficit) equity |   |   | (5,931  | )      |   |   | (89    | )      |   |   | (6,020 | ) |
| Non-controlling interests                                                 |   |   | 11,976  |   |   |   | 7,453  |   |   |   | 19,429 |   |
| Total Equity                                                              |   |   | 6,045   |   |   |   | 7,364  |   |   |   | 13,409 |   |
| Total Liabilities and Equity                                              |   | $      | 227,944 |   |   | $      | 23,521 |   |   | $ | 251,465 |   |

| Statement of Cash Flows for the Three Months Ended March 31, 2010 |   |   |   |   |   |   |   |   |   |
|-------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                              |   |   |   |   |   |   |   |   |   |
| Net cash provided by operating activities                         |   | $      | 540    |   |   |   | -      |   |   | $ | 540 |   |
| Net cash provided by investing activities                         |   |   | 8,891  |   |   |   | -      |   |   |   | 8,891 |   |
| Net cash used in financing activities                             |   |   | (4,835 | )      |   |   | -      |   |   |   | (4,835 | ) |
| Increase in cash and cash equivalents                             |   |   | 4,596  |   |   |   | -      |   |   |   | 4,596 |   |
| Cash and cash equivalents, beginning of period                    |   |   | 462    |   |   |   | -      |   |   |   | 462 |   |
| Cash and cash equivalents, end of period                          |   |   | 5,058  |   |   |   | -      |   |   |   | 5,058 |   |

----

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

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|   | · | the amount of any gain or loss recognized as the result of removal of the VIE’s assets, liabilities, and equity from our balance sheet; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the portion of any gain or loss related to the re-measurement to fair value of any retained investment in the VIE being derecognized; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the financial statement line item where the gain or loss relating to de-consolidation of the VIE is de-consolidated; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | the nature of our continued involvement (if any) with the former VIE or the entity acquiring the VIE after de-consolidation, and; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | · | whether the de-consolidation transaction occurs with a related party or if the transaction will cause the VIE to be a related party after de-consolidation. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                       |   | March 31, |      |   | March 31, |   |      | Variance |   |
|--------------------------------------------|--------|----------------|-----------|--------|----------------|--------|-----------|----------|--------|
|                                       |   | 2010(restated) |      |   | 2009           |   |      | $        |   |   |   | % |   |
| Rental revenue                             |   | $              | 8,183,000 |   |           | $      | 8,440,000 |     |   | $ | (257,000 | ) |   |   | (3.1 | )% |
| Third party management and leasing revenue |   |           | 964,000   |   |           |   | 17,000    |     |   |   | 947,000 |   |   |   | 5,570.6 | % |
| Operating expenses:                        |   |           |      |   |           |   |      |     |   |   |   |   |   |   |   |   |
| Property operating expenses                |   |           | 3,625,000 |   |           |   | 3,893,000 |     |   |   | (268,000 | ) |   |   | (6.9 | )% |
| General and administrative                 |   |           | 1,622,000 |   |           |   | 870,000   |     |   |   | 752,000 |   |   |   | 86.4 | % |
| Depreciation and amortization              |   |           | 3,761,000 |   |           |   | 3,597,000 |     |   |   | 164,000 |   |   |   | 4.6 | % |
| Interest expense                           |   |           | 3,400,000 |   |           |   | 3,295,000 |     |   |   | 105,000 |   |   |   | 3.2 | % |

----

----

|                                  |   | Three Months EndedMarch 31, |   |
|---------------------------------------|--------|--------------------------------------------|--------|
|                                  |   | 2010(restated)                             |   |   | 2009 |   |
| Non-Cash Items:                       |   |                                       |   |   |   |   |
| Depreciation and amortization expense |   | $                                          | 3,769  |   |   | $ | 3,712 |   |
| Income tax benefit                    |   |                                       | 437    |   |   |   | (1,094 | ) |
| Deferred rental income                |   |                                       | (107   | ) |   |   | (62 | ) |
| Noncontrolling interests              |   |                                       | 434    |   |   |   | (250 | ) |
| Stock-based compensation expense      |   |                                       | 26     |   |   |   | 20 |   |
| Amortization of loan premium          |   |                                       | -      |   |   |   | (11 | ) |

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|                                                       |   | Three Months EndedMarch 31, 2010(restated) |   |   | Three Months EndedMarch 31, 2009 |   |
|------------------------------------------------------------|--------|----------------------------------------------------------------|--------|--------|------------------------------------------------------|--------|
| Net income (loss) attributable to the Company              |   | $                                                              | 420    |   |                                                 | $      | (1,801 | ) |
| Depreciation and amortization from discontinued operations |   |                                                           | 8      |   |                                                 |   | 115 |   |
| Net income from discontinued operations                    |   |                                                           | (2,847 | )      |                                                 |   | (29 | ) |
| Deferred income tax benefit                                |   |                                                           | (1,204 | )      |                                                 |   | (1,110 | ) |
| Net income (loss) attributable to noncontrolling interests |   |                                                           | 434    |   |                                                 |   | (250 | ) |
| Depreciation and amortization                              |   |                                                           | 3,761  |   |                                                 |   | 3,597 |   |
| FFO                                                        |   | $                                                              | 572    |   |                                                 | $      | 522 |   |

----

| (a) | Exhibits: |
|-----|-----------|

| (b) | Reports on Form 8-K: |
|-----|----------------------|

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|               | AMERICAN SPECTRUM REALTY, INC. |
|--------------------|--------------------------------|
|               |                           |   |   |
| Date: May 13, 2011 |                           | By:  | /s/ William J. Carden |
|               |                           |   | William J. Carden |
|               |                           |   | Chairman of the Board, President and, |
|               |                           |   | Chief Executive Officer |
|               |                           |   | (Principal Executive Officer) |
|               |                           |   |   |
| Date: May 13, 2011 |                           | By: | /s/ G. Anthony Eppolito |
|               |                           |   | G. Anthony Eppolito |
|               |                           |   | Vice President, Chief Financial Officer, |
|               |                           |   | (Principal Financial Officer and Accounting Officer), |
|               |                           |   | Treasurer and Secretary |

| Exhibit No. |   | Exhibit Title                                                                                                                |
|-------------|--------|------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                         |
| 31.1        |   | Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                               |
|        |   |                                                                                                                         |
| 31.2        |   | Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                               |
|        |   |                                                                                                                         |
| 32.1        |   | Certification of CEO 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 CFO pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |

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