SECURITIES AND EXCHANGE COMMISSION

Washington, DC  20549

FORM 10-K



For the fiscal year ended December 31, 1999 OR

TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)

For the transition period from ____ to ____

Commission File Number 1-11478

KRANZCO REALTY TRUST

(Exact name of registrant as specified in its charter)





|Maryland                                                    | 23-2691327                          
|----------------------------------------------------------- | ------------------------------------
|(State of incorporation)                                    | (I.R.S. employer identification no.)
|                                                            |                                     
|128 Fayette Street, Conshohocken, PA 19428                  | (610) 941-9292                      
|(Address of principal executive offices)                    | (Registrant's telephone number)     
|                                                            |                                     
|Securities registered pursuant to Section 12(b) of the Act: |                                     
|                                                            |                                     
|Title of Class                                              | Name of exchange on which registered
|Common Shares of Beneficial Interest, $.01 par value        | New York Stock Exchange             
|                                                            |                                     
|9.75% Series B-1 Cumulative Convertible Preferred           |                                     
|Shares of Beneficial Interest, $.01 par value               | New York Stock Exchange             
|                                                            |                                     
|9.50% Series D Cumulative Redeemable Preferred              |                                     
|Shares of Beneficial Interest, $.01 par value               | New York Stock Exchange             

Securities registered pursuant to Section 12(g) of the Act:  None

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past
90 days.

YES _X_  NO ___

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this Form 10-K.

The aggregate market value of the voting stock held by non-affiliates of the Registrant was approximately $94

million based on the closing price on the New York Stock Exchange for such stock on March 17, 2000.

The number of shares of the Registrant's Common Shares of Beneficial Interest outstanding was 10,566,746 as of March 17, 2000.





TABLE OF CONTENTS

|Form 10-K |                                                                                       |   
|--------- | ------------------------------------------------------------------------------------- | --
|Item No.  | Report Page                                                                           |   
|          |                                                                                       |   
|PART I    |                                                                                       |   
|          |                                                                                       |   
|1         | Business                                                                              | 3 
|2         | Properties                                                                            | 7 
|3         | Legal Proceedings                                                                     | 9 
|4         | Submission of Matters to a Vote of Security Holders                                   | 9 
|          |                                                                                       |   
|PART II   |                                                                                       |   
|          |                                                                                       |   
|5         | Market for the Registrant's Common Equity and Related Shareholder Matters             | 9 
|6         | Selected Financial Data                                                               | 11
|7         | Management's Discussion and Analysis of Financial Condition and Results of Operations | 12
|7A.       | Quantitative and Qualitative Disclosures About Market Risk                            | 16
|8         | Financial Statements and Supplementary Data                                           | 17
|9         | Changes in and Disagreements with Accountants on Accounting and Financial Disclosures | 17
|          |                                                                                       |   
|PART III  |                                                                                       |   
|          |                                                                                       |   
|10        | Directors and Executive Officers of the Registrant                                    | 17
|11        | Trustees' and Executive Officer Compensation                                          | 19
|12        | Security Ownership of Certain Beneficial Owners and Management                        | 23
|13        | Certain Relationships and Related Transactions                                        | 24
|          |                                                                                       |   
|PART IV   |                                                                                       |   
|          |                                                                                       |   
|14        | Exhibits, Financial Statements, Schedules and Reports on Form 8-K                     | 25



PART  I



This Form 10-K, together with other statements and information publicly disseminated by the Company, contains certain statements that may be deemed to be "forward-looking statements"  within the meaning of Section 27A of the Securities Act of 1933, as
amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended.  All statements, other than statements of historical facts, included in this Form 10-K, that address activities, events or developments that the Company
expects, believes or anticipates will or may occur in the future, including such matters as future capital expenditures, distributions and acquisitions (including the amount and nature thereof), the use of proceeds of offerings, expansion and other
development trends of the real estate industry, business strategies, expansion and growth of the Company's operations and other such matters are forward-looking statements.  Such statements are based on assumptions and expectations which may not be
realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated.    Prospective investors are cautioned that any such statements are not guarantees of future
performance and that actual results or developments may differ materially from those anticipated in the forward-looking statements.  Risks and other factors that might cause such differences, some of which could be material,  include, but are not limited
to: the burden of the Company's substantial debt obligations; the necessity of future financings to repay the "balloon" payments required at the maturity of certain of the Company's debt obligations; the highly competitive nature of the real estate
leasing market; adverse changes in the real estate markets including, among other things, competition with other companies; general economic and business conditions, which will, among other things, affect demand for retail space or retail goods,
availability and creditworthiness of prospective tenants and lease rents; financial condition and bankruptcy of tenants, including disaffirmance of leases by bankrupt tenants; the availability and terms of debt and equity financing; risks of real estate
acquisition, expansion and renovation; governmental actions and initiatives; environmental/safety requirements; and other changes and factors referenced herein under Item 1. Business and from time to time in the Company's reports filed with the Securities
and Exchange Commission or otherwise publicly disseminated by the Company.



Item 1. Business

(a) General Description of Business

Kranzco Realty Trust (the "Trust") was formed on June 17, 1992 as a Maryland real estate investment trust ("REIT").

On November 19, 1992, the Trust consummated an initial public offering (the "IPO") of 6,400,000 of its common shares of beneficial interest (the "Shares").  On December 15, 1992, the Trust sold an additional 361,900 Shares as a result of the exercise
of the over-allotment option granted to the underwriters in connection with the IPO.

On October 7, 1993, the Trust consummated a second public offering (the "Second Offering") of 2,200,000 Shares.  On November 3, 1993, the Trust sold an additional 50,000 Shares as a result of the exercise of the over-allotment option granted to the
underwriters in connection with the Second Offering.

The Trust and its consolidated subsidiaries are hereinafter referred to as the "Company".

(b) Developments During the 1999 Fiscal Year

In December 1999, the Company signed a definitive agreement and plan of reorganization and merger to merge operations with CV Reit, Inc. ("CV") to create a new community shopping center umbrella partnership real estate investment trust ("UPREIT") to be
called Kramont Realty Trust.  Terms of the merger call for shareholders of CV and Kranzco to each receive one common share of beneficial interest in Kramont Realty Trust for each outstanding common share of CV and Kranzco on a tax-free basis. The merger
agreement is subject to approval by shareholders of both companies and other customary conditions.  Kramont Realty Trust will consist of 84 properties encompassing approximately 11 million square feet in 16 states with an asset base valued by the Company
of approximately $800 million.  The merger agreement anticipates that the initial cash distributions of Kramont will be at an annual rate of $1.30 per common share which is equal to the current annual payout rate to the Company's shareholders.  The Company anticipates the
transaction being completed in the second quarter of 2000.

In June 1999, the Company sold one of its free-standing properties located in Tucson, AZ for approximately $864,000 and recorded a net loss on the sale of approximately $18,000.  In July and August 1999, the Company completed the sale of three
additional free-standing properties located in Raynham, MA, Roseville, MN, and Minnetonka, MN as well as a 61,000 square foot shopping center in Orange, CT.  Total proceeds on the sales were approximately $9,887,000 and the net gain was approximately
$545,000.  The proceeds of the sales were used to pay down debt obligations and for general corporate purposes, including the continuing program of upgrading and expanding existing properties.  In September 1999, the Company sold a parcel of land at its
center in Bainbridge, GA, and recorded a gain of approximately $59,000.  The net proceeds from the sale of approximately $235,000 was used to repay debt outstanding on the property.  In the third quarter of 1999, the Company finalized the condemnation of
a small portion of land at one of its properties  by the respective township authority.  Gross proceeds were approximately $99,000 and the Company recorded a loss of $51,000 related to the transaction.

During 1999, the Company had two anchor tenants, Bradlees and Caldor, which were in bankruptcy under Chapter 11 of the bankruptcy code. In general, in a Chapter 11 proceeding, the tenant is required to pay the full rental to the landlord for the
store on a current basis unless the lease is disaffirmed.  In January 1999, Bradlees announced that they emerged from Chapter 11.  The Bradlees store is  located in Bethlehem, Pennsylvania and is approximately 85,899 square feet. This store is open and
operating with rental obligations being paid on a timely basis in accordance with the lease.  In January 1999, Caldor announced that it would discontinue operations and close all stores during 1999.  Caldor was a tenant of the Company with three stores
representing approximately $2.8 million or 3.6% of the Company's annual revenues. The Caldor stores were located in Towson, Maryland, Bristol, Pennsylvania  and Hamilton Township, New Jersey and were approximately 94,600, 113,160 and 119,935 square feet,
respectively. The Towson lease is guaranteed by The May Department Stores Company.  The lease for the store in Hamilton, New Jersey was purchased by Bradlees in April 1999 in a bankruptcy court auction.  Management has signed a lease with Ames Department
Stores, Inc. for approximately 71,550 square feet of the Bristol location in the fourth quarter.  The store is expected to be open by the end of the first quarter in 2000.  The Company has several other tenants currently operating under Chapter 11 of the
Bankruptcy Code.  These tenants continue to pay rent to the Company, have not rejected their leases and, in the aggregate, will pay approximately 1.4% of the Company's annual revenues.

(c) Financial Information About Industry Segments

The Company is in the business of owning, managing, operating, leasing, acquiring, developing, investing in and disposing of neighborhood and community shopping centers and free-standing properties.  The Company internally evaluates all properties as
one segment and accordingly does not report segment information.  See the Consolidated Financial Statements and Notes thereto included in Item 8 of this Annual Report on Form 10-K for certain financial information required by Item 1.

(d) Narrative Description of Business

General   At March 17, 2000, the Company owned and operated 62 neighborhood and community shopping centers and free-standing properties (the "Properties") aggregating approximately 9.0 million square feet of GLA located in Connecticut, Georgia,
Florida, Kentucky, Maryland, Michigan, Mississippi, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee and Virginia.

The Company is self-administered and self-managed and does not engage or pay a REIT advisor because the Company provides management, leasing, accounting, legal, design and construction expertise through its own personnel or, where appropriate, through
outside professionals.

The Company's executive offices are located at 128 Fayette Street, Conshohocken, Pennsylvania 19428 and its telephone number is (610) 941-9292.

Operating Strategies   The Company's primary business objective is to achieve growth in its funds from operations by enhancing the operating performance of the Properties and, through selective acquisitions, the value of its portfolio.  The
Company's operating strategies are to: (i) focus on the neighborhood and community shopping center business; (ii) actively manage its properties for long-term growth in funds from operations and capital appreciation; (iii) increase portfolio occupancy by
capitalizing on management's reputation and long-standing relationships with national and regional tenants and extensive experience in marketing to local tenants, as well as the negotiating leverage inherent in a large portfolio of properties; (iv)
maintain, renovate, expand and reconfigure its properties; (v) optimize the tenant mix in each shopping center; (vi) develop or ground lease outparcels or expansion areas existing from time to time at its properties for use as restaurants, banks, auto
centers, cinemas or other facilities; and (vii) benefit from economies of scale by spreading overhead expenses over a larger asset base.

Acquisition Strategies/Investment Strategies   The Company intends to make acquisitions in a manner consistent with the requirements of the Internal Revenue Code of 1986, as amended (the "Code") applicable to REITs and related regulations with
respect to the composition of the Company's portfolio and the derivation of income unless, because of circumstances or changes in the Code (or any related regulation), the trustees (the "Trustees") of the Company determine that it is no longer in the best
interests of the Company to qualify as a REIT. The Company's acquisition strategy is to opportunistically acquire properties which need replacement anchor tenants or where the Company's management expertise and reputation can enhance value.  That strategy
includes acquiring and rehabilitating properties in new markets with strong demographic characteristics in order to reduce the Company's sensitivity to regional economic cycles.  The Company does not intend to invest in excess of 15% of its assets in any
single property.

The Company will generally acquire 100% fee simple or leasehold interests in real property consistent with the Company's acquisition strategies set forth above.  However, the Company may make equity investments through joint ventures with developers,
owners or other persons which may provide for, among other terms, (i) a cumulative preference as to cash distributions; (ii) a participation in net cash flows from operations; and (iii) a participation in the appreciation of the value of the underlying
real property.  The Company contemplates that it would maintain at least equal control over the underlying real property to be operated by any joint venture (including possibly the day-to-day management of the real property) and additional investments in
or sale or financing of such underlying real property.  The Company may also acquire investments in real property or real estate oriented companies through issuance of debt or equity securities in exchange for investments or by such other methods as the
Trustees deem to be in the best interests of the Company.

Financing Strategies   The Company intends to maintain a conservative ratio of debt to estimated value of the Company's real estate assets (as determined by the Trustees, taking into consideration the tenants in occupancy, gross rental revenues,
geographic location and other factors affecting the value of the Company's properties) ("Debt Ratio") of generally not more than 50%, depending on current market conditions.  At December 31, 1999, the Company had a Debt Ratio of approximately 59% and a
ratio of debt to total market capitalization, based upon the closing price of the Company's stock on the New York Stock Exchange as of December 31, 1999, of approximately 70%.  The Company intends to finance acquisitions with the most appropriate sources
of capital, as determined by the Trustees, which may include available cash flows from operations, the issuance of equity securities, the sale of investments and, within the debt guidelines described above, bank and other institutional borrowings and the
issuance of debt securities.  Future borrowings by the Company for acquisitions may be either on a secured or unsecured basis.  In this regard, the Company has obtained several credit facilities as described below.

The Company has a $1.0 million unsecured credit facility from First Union National Bank  (the "First Union Facility").  Amounts borrowed under the line of credit bear interest at the bank's prime rate, which was 8.5% at December 31, 1999.  As of
December 31, 1999, there was $750,000 of outstanding borrowings under the First Union Facility. The facility's expiration date is April 30, 2000.

In 1998, the Company increased its secured line of credit from Salomon Brothers Realty Corp. to $100 million from $50 million (the "Salomon Facility").  Fifteen of the Company's shopping centers or portions thereof secure the Salomon Facility.  Amounts
borrowed under the Salomon Facility will bear interest at a rate equal to the one month London Interbank Offering Rate ("LIBOR") plus a spread of 175 basis points, which was 8.23% as of December 31, 1999.  The term of the Salomon Facility was extended to
July 2000, with an option for a one year renewal.  As of December 31, 1999, the Company had $47,765,000 of outstanding borrowings under this facility.

The Company has three balloon payments on debt obligations due in 2000.  Two mortgages totalling $11 million collateralized by two properties are due in the fourth quarter of 2000.  The Company intends to refinance the mortgages on these properties.
The Salomon Facility, due in July 2000, will be extended at the Company's option, subject to meeting certain requirements of the Salomon Facility documents, if the proposed merger with CV Reit, Inc. is not consummated at that time.

Operating Practices   Virtually all operating and administrative functions, such as leasing, data processing, maintenance, finance, accounting, construction and legal, are centrally managed at the Company's headquarters.  In addition, the
Company maintains regional offices at The Village of Mableton in Mableton, Georgia, The Mall at Cross County in Yonkers, New York and Marumsco Plaza, in Woodbridge, Virginia.  On-site functions such as security, maintenance, landscaping, sweeping,
plumbing, electrical and other similar activities are either performed by the Company or subcontracted.  The cost of these functions are passed through to tenants to the extent permitted by their respective leases.

The Company has proprietary sophisticated computer software systems designed to support its operating and administrative functions and to optimize management's ability to own, operate and manage additional properties without significant increase in its
general and administrative expenses.  The Company's systems allow instant access to floor plans, store availability, lease data, tenants' sales history, cash flows and budgets.  The Company believes its systems to be as advanced as any in the industry.

Competition   All of the Company's properties are located in developed retail and commercial areas.  There are generally numerous other neighborhood and community shopping centers within a five-mile radius of each of the properties.  In
addition, with respect to some of the Company's properties there are one or more regional malls within a 10-mile radius.  The amount of rentable space in the area could have a material effect on the Company's ability to rent space and the rents charged.
In addition, the Company will be competing with others who may have greater financial resources and experience than the Company and its officers and Trustees for tenants and acquisitions.

Employees  As of December 31, 1999, the Company had approximately 60 full and part-time employees.  None of the Company's employees are subject to a collective bargaining agreement and the Company has experienced no labor-related work stoppages.
 The Company considers its relations with its personnel to be good.

Business Risks  The Company is subject to risks arising in connection with the underlying real estate, including defaults under or nonrenewal of tenant leases, tenant bankruptcies, competition, inability to rent unleased space, failure to
generate sufficient income to meet operating expenses, including debt service (including "balloon" payments on certain financial obligations), capital expenditures and tenant improvements, environmental matters, financing availability and costs, and
changes in real estate and zoning laws.  The success of the Company also depends upon certain key personnel, its ability to maintain its qualification as a REIT, compliance with the terms and conditions of its mortgages and the credit facilities and
trends in the national and local economy, including income tax laws, governmental regulations and legislation and population trends.

Tax Status  The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Code.  So long as the Company qualifies for taxation as a REIT, the Company generally will not be subject to Federal income tax to the extent it
distributes at least 95% of its REIT taxable income to its shareholders.  If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to Federal income tax (including any applicable alternative minimum tax) on its taxable
income at regular corporate rates.  Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property and to federal income and excise taxes on its undistributed income.

Item 2. Properties

Shopping Center Properties  The Company owns and operates 62 neighborhood and community shopping centers and free-standing properties located in Connecticut, Georgia, Florida, Kentucky, Maryland,  Michigan, Mississippi, New Jersey, New York, North
Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee and Virginia.   The Properties were designed to attract local area customers and are typically anchored by a supermarket, discount department store or drugstore, and are diversified in
size, ranging from 387,000 square feet of gross leasable area to only 17,000 square feet of gross leasable area.  Typical tenants are Wal-Mart (at 11 Properties), Kmart (8),  A & P SuperFresh Supermarkets (2), Pathmark Supermarkets (5), Stop &
Shop (4), The Sports Authority (2), Food Lion (5), Ames (2), Kroger (3), Home Depot (1), Fashion Bug (15), Marshalls/TJ Maxx (4), Cato (14), Eckerd Drug (6), Drug Emporium (3),  Toys "R" Us (1) and Kids "R" Us (3).  At 36 of the Properties, free-standing
restaurants, retail stores or banks, such as McDonalds, Ponderosa, Pizza Hut, First Union National Bank, Auto Zone, Tire America and Somerset Tire Service, are businesses located on Out-Parcels.  Three of the Properties are community malls of 288,000
square feet, 262,000 square feet and 177,000 square feet, respectively. One is anchored by Kmart and Ames Department Stores while another is anchored by Kids "R" Us, The Sports Authority, Circuit City, National Wholesale Liquidators and TJ Maxx.  The
third is anchored by Ames Department Stores.  Thirteen of the Properties contain additional land for expansion of existing stores and thirty one of the Properties have Out-Parcels available for development of free-standing buildings for use as
restaurants, banks, auto centers, cinemas and other operations.

The Properties are smaller than regional malls, depend less on long travel times and the sale of major consumer goods and focus on everyday purchases from a smaller customer base.  Discount stores and supermarkets attract convenience goods shoppers and
bring customers to the smaller satellite shops.  Shopping centers of this kind are typically less vulnerable to shifts in population and traffic patterns and rely heavily on weekly advertising by the anchor tenants.

Consistent with its intention to retain its shopping centers for long-term investment, the Company intends to continue to pursue a program of regular physical maintenance, together with major renovations and refurbishing, to preserve and increase the
value of the Properties.  These projects usually include or will include renovating existing facades, installing uniform signage, resurfacing parking lots and increasing parking lot lighting.

A substantial portion of the income from the Properties consists of rent received under long-term leases.  Most of the leases provide for the payment of fixed minimum rent monthly in advance and for the payment by tenants of a pro rata share of the
real estate taxes, insurance, utilities and common area maintenance of the shopping center.  Certain of the major tenant leases provide that the landlord is obligated to pay certain of these expenses above or below specific levels.  Except for Wal-Mart,
Pathmark Supermarkets, Kmart and Stop & Shop, which represented approximately 7%, 4%, 4% and 3%, respectively, no tenant represented more than 3% of the aggregate minimum rent of the Properties as of December 31, 1999.  Minimum rent revenues and
operating expense reimbursements accounted for approximately 97% of the total revenues of the Company for the year ended December 31, 1999.  A majority of the leases associated with the Properties also provide for the payment of percentage rent calculated
as a percentage of a tenant's gross sales above predetermined thresholds.  Percentage rent accounted for appoximately 2% of the total revenues of the Company for the year ended December 31, 1999.

The leases of space at the Properties typically require the landlord to provide maintenance of a shopping center's common areas, including cleaning, lighting, paving, security, landscaping and insurance, the costs of which are typically reimbursed to
the landlord by the tenants.  The landlord is also typically required to make roof and structural repairs as needed, which in some cases are without reimbursement.  The leases for larger shopping center tenants often restrict the ability of tenants to
assign or sublet their spaces and require tenants to use the space they lease for the purposes designated in the leases and to operate their businesses on a continuous basis.  However, certain of the leases with major tenants contain modifications of
these provisions as a result of the financial condition, stability or desirability of such tenants.  If a tenant assigns or subleases its space, the original tenant generally will remain liable for the payment of rent under the lease.

Three of the Properties and a portion of another are subject to long-term ground leases where a third party owns and has leased the underlying land to the Company to operate a shopping center.  The Company pays rent for the use of the land and
generally is responsible for all costs and expenses associated with the building and improvements.  At the end of the lease term, unless extended, the land, together with all improvements thereon, will revert to the land owner without compensation to the
Company.

As of March 1, 2000, the occupancy rate for the Properties was approximately 91%.  The property table set forth below gives more specific information with respect to each of the Properties as of March 1, 2000.

|Shopping Center Property                                                                       | Location of Shopping Center | Year Developed or Acquired | Ownership Interest/(expiration) | Land Area (acres) | Gross Leasable Area (Sq. Ft.) | Percent Leased (1) | Anchor Tenants (lease expiration/option expiration)                                  
|---------------------------------------------------------------------------------------------- | --------------------------- | -------------------------- | ------------------------------- | ----------------- | ----------------------------- | ------------------ | -------------------------------------------------------------------------------------
|Connecticut                                                                                    |                             |                            |                                 |                   |                               |                    |                                                                                      
|Groton Square                                                                                  | Groton                      | 1987                       | Fee                             | 17.74             | 194,015                       | 100.00%            | Stop & Shop (2007/2027), Stop & Shop (2007/2025) (1)                                 
|Manchester Kmart Plaza                                                                         | Manchester                  | 1994                       | Fee                             | 21.06             | 183,376                       | 100.00%            | Kmart(2002/2022), Stop & Shop(2018/2058), Pep Boys (2016/2036)                       
|Milford                                                                                        | Milford                     | 1966                       | Leasehold (2020)                | 3.00              | 25,200                        | 100.00%            | Xpect Discount Drug (2004/2009)                                                      
|Orange                                                                                         | Orange                      | 1967                       | Leasehold (2006)                | 3.43              | 27,000                        | 0.00%              |                                                                                      
|Parkway Plaza I                                                                                | Hamden                      | 1982                       | Fee                             | 6.55              | 72,530                        | 93.55%             | Pathmark (2007/2037) (1)                                                             
|Parkway Plaza II                                                                               | Hamden                      | 1985                       | Fee                             | 8.00              | 131,100                       | 53.72%             | Kids R Us (2006/2026), Pathmark (2005/2035)(1)                                       
|Stratford Square                                                                               | Stratford                   | 1984                       | Fee                             | 19.58             | 160,176                       | 86.45%             | Pathmark (2009/2039) (1), Marshalls (2005/2010)                                      
|Florida                                                                                        |                             |                            |                                 |                   |                               |                    |                                                                                      
|Village Oaks                                                                                   | Pensacola                   | 1998                       | Fee                             | 15.74             | 171,653                       | 100.00%            | Wal Mart (2008/2038), Haverty Furniture Company (2003/2018)                          
|Georgia                                                                                        |                             |                            |                                 |                   |                               |                    |                                                                                      
|Bainbridge Town Center                                                                         | Bainbridge                  | 1997                       | Fee                             | 19.86             | 143,729                       | 98.89%             | Kmart(2015/2065),  Food Lion(2010/2030)                                              
|Douglasville Crossing                                                                          | Douglasville                | 1998                       | Fee                             | 35.67             | 267,800                       | 97.11%             | Wal Mart (2010/2040) (1),Cub Foods Inc. (2010/2035), Rhodes                          
|                                                                                               |                             |                            |                                 |                   |                               |                    | Furniture (2000/2010)                                                                
|Holcomb Bridge                                                                                 | Roswell                     | 1997                       | Fee                             | 11.27             | 105,420                       | 97.56%             | Cub Foods Inc. (2008/2033), Georgetown Interiors (2003/2008)                         
|Northpark                                                                                      | Macon                       | 1997                       | Fee                             | 19.04             | 195,355                       | 97.93%             | Kroger(2008/2028),Kmart(2013/2063)                                                   
|Park Plaza                                                                                     | Douglasville                | 1997                       | Fee                             | 8.30              | 46,495                        | 86.34%             | Kroger(not owned by  the Company)                                                    
|Snellville Oaks                                                                                | Snellville                  | 1998                       | Fee                             | 36.37             | 220,885                       | 94.86%             | Wal Mart(2011/2041), Georgia State Theatres (2015/2025), Food Lion                   
|                                                                                               |                             |                            |                                 |                   |                               |                    | (2011/2031)                                                                          
|Summerville Wal Mart Center                                                                    | Summerville                 | 1998                       | Fee                             | 9.07              | 67,809                        | 100.00%            | Wal Mart(2004/2034)                                                                  
|Tifton Corners                                                                                 | Tifton                      | 1998                       | Fee                             | 20.03             | 186,629                       | 97.86%             | Wal Mart(2011/2041), Bruno's (2010/2025)                                             
|Tower Plaza                                                                                    | Carrollton                  | 1997                       | Fee                             | 10.20             | 87,990                        | 92.69%             | Bruno's (2007/2027)                                                                  
|Vidalia Wal Mart Center                                                                        | Vidalia                     | 1998                       | Fee                             | 7.42              | 93,696                        | 100.00%            | Wal Mart(2005/2035)                                                                  
|Village at Mableton                                                                            | Mableton                    | 1997                       | Fee                             | 23.30             | 239,474                       | 95.18%             | Kmart(2014/2064), Cub Foods (2009/2029), CVS (2004/2019)  (1)                        
|Kentucky                                                                                       |                             |                            |                                 |                   |                               |                    |                                                                                      
|Harrodsburg Marketplace                                                                        | Harrodsburg                 | 1997                       | Fee                             | 7.00              | 60,048                        | 94.00%             | Kroger(2007/2027)                                                                    
|Maryland                                                                                       |                             |                            |                                 |                   |                               |                    |                                                                                      
|Anneslie                                                                                       | Baltimore                   | 1993                       | Fee                             | 9.26              | 135,744                       | 96.34%             |                                                                                      
|Campus Village                                                                                 | College Park                | 1995                       | Fee                             | 1.89              | 25,529                        | 93.48%             |                                                                                      
|Coral Hills                                                                                    | Coral Hills                 | 1995                       | Fee                             | 7.00              | 86,050                        | 90.27%             | Shoppers Food Warehouse (2004/2029)                                                  
|Fox Run                                                                                        | Prince Frederick            | 1994                       | Fee                             | 40.87             | 293,492                       | 98.32%             | Kmart(2016/2066), Giant Foods (2021/2051), Peebles (2012/2032)                       
|Hillcrest Plaza                                                                                | Frederick                   | 1995                       | Fee                             | 12.00             | 109,526                       | 53.90%             |                                                                                      
|Michigan                                                                                       |                             |                            |                                 |                   |                               |                    |                                                                                      
|Builder's Square                                                                               | Flint                       | 1997                       | Fee                             | 8.20              | 80,000                        | 100.00%            | Builder's Square(2006/2026)(1)                                                       
|Musicland                                                                                      | Livonia                     | 1997                       | Fee                             | 8.83              | 80,000                        | 100.00%            | Media Play(2007/2027)                                                                
|Mississippi                                                                                    |                             |                            |                                 |                   |                               |                    |                                                                                      
|Brookway Village                                                                               | Brookhaven                  | 1997                       | Fee                             | 6.00              | 47,587                        | 29.84%             |                                                                                      
|Towne Square                                                                                   | Columbus                    | 1997                       | Fee                             | 9.77              | 116,358                       | 45.10%             | Jitney Jungle(2003/2003)                                                             
|New Jersey                                                                                     |                             |                            |                                 |                   |                               |                    |                                                                                      
|Collegetown                                                                                    | Glassboro                   | 1989                       | Fee                             | 23.00             | 250,234                       | 96.41%             | Kmart (2001/2021), Acme (2004/2044)                                                  
|Hillcrest Mall                                                                                 | Phillipsburg                | 1985                       | Fee                             | 18.00             | 220,985                       | 63.73%             | Staples(2010/2025), Warren Hospital (2008/2018), Consolidated Stores, Inc.           
|                                                                                               |                             |                            |                                 |                   |                               |                    | (2004/2019)                                                                          
|Suburban Plaza                                                                                 | Hamilton                    | 1994                       | Fee                             | 23.15             | 244,718                       | 98.61%             | Bradlee's Stores, Inc. (2013/2033), Shop Rite (2002/2017)                            
|New York                                                                                       |                             |                            |                                 |                   |                               |                    |                                                                                      
|A & P Mamaroneck                                                                               | Mamaroneck                  | 1976                       | Fee                             | 2.17              | 24,978                        | 100.00%            | A & P (2006/2016)                                                                    
|The Mall at Cross County                                                                       | Yonkers                     | 1986                       | Fee                             | 10.07             | 262,256                       | 98.12%             | National Wholesale Liquidators (2012/2032),T.J. Maxx (2004/2014)                     
|                                                                                               |                             |                            |                                 |                   |                               |                    | The Sports Authority (2010/2025), Circuit City(2018/2038)                            
|Highridge                                                                                      | Yonkers                     | 1977                       | Fee                             | 8.90              | 88,501                        | 100.00%            | Pathmark (2003/2027)                                                                 
|North Ridge                                                                                    | New Rochelle                | 1971                       | Fee                             | 2.80              | 42,198                        | 97.47%             | Harmon Cosmetics(2007/2017), NRHMC(2011/2016)                                        
|Port Washington                                                                                | Port Washington             | 1968                       | Leasehold (2067)                | 1.00              | 19,600                        | 100.00%            | North Shore Farms (2003/2033)                                                        
|Village Square                                                                                 | Larchmont                   | 1981                       | Fee                             | 0.93              | 17,028                        | 94.71%             | Trader Joe's (2009/2024)                                                             
|                                                                                               |                             |                            |                                 |                   |                               |                    |                                                                                      
|North Carolina                                                                                 |                             |                            |                                 |                   |                               |                    |                                                                                      
|Cary Plaza                                                                                     | Cary                        | 1997                       | Fee                             | 8.32              | 60,702                        | 95.39%             | Food Lion(2010/2030)                                                                 
|Magnolia Plaza                                                                                 | Morganton                   | 1997                       | Fee                             | 17.14             | 104,539                       | 72.85%             | Ingles Supermarket(2007/2062)                                                        
|                                                                                               |                             |                            |                                 |                   |                               |                    |                                                                                      
|Ohio                                                                                           |                             |                            |                                 |                   |                               |                    |                                                                                      
|Pickaway Crossing                                                                              | Circleville                 | 1999                       | Fee                             | 13.48             | 127,130                       | 100.00%            | Wal Mart (2009/2039)                                                                 
|                                                                                               |                             |                            |                                 |                   |                               |                    |                                                                                      
|Pennsylvania                                                                                   |                             |                            |                                 |                   |                               |                    |                                                                                      
|69th Street Plaza                                                                              | Upper Darby                 | 1994                       | Fee                             | 2.96              | 42,500                        | 100.00%            | Drug Emporium (2003/2006)                                                            
|Barn Plaza                                                                                     | Doylestown                  | 1987                       | Fee                             | 35.00             | 210,782                       | 95.68%             | Acme (2007/2037), Marshalls (2004/2019), Regal Cinemas, Inc.(2018/2026)              
|Bensalem Square                                                                                | Bensalem                    | 1983                       | Fee                             | 16.38             | 72,558                        | 100.00%            | Pathmark (2009/2039)                                                                 
|Bethlehem Square                                                                               | Bethlehem                   | 1987                       | Fee                             | 48.00             | 386,820                       | 100.00%            | Bradlees (2007/2025),TJ Maxx (2006/2021), Home Depot (2010/2040)                     
|                                                                                               |                             |                            |                                 |                   |                               |                    | Shop Rite (2010/2030)                                                                
|Bradford Mall                                                                                  | Bradford                    | 1990                       | Fee (2)                         | 30.00             | 287,975                       | 98.96%             | Kmart (2004/2049), Consolidated Stores(2002/2012), Ames (2008/2026)                  
|Bristol Commerce Park                                                                          | Bristol                     | 1992                       | Fee                             | 50.00             | 273,119                       | 97.92%             | Superfresh (2008/2038), Ames                                                         
|Franklin Center                                                                                | Chambersburg                | 1997                       | Fee                             | 25.02             | 174,892                       | 94.11%             | Food Lion(2010/2030), Big Lots(2001/2011),Lowe's (2010/2018) (1)                     
|MacArthur Road                                                                                 | Whitehall                   | 1993                       | Fee                             | 4.74              | 50,856                        | 100.00%            | Oak Works (2007/2017), Frank's Nursery (2002/2032)                                   
|Park Hills Plaza                                                                               | Altoona                     | 1985                       | Fee                             | 24.00             | 279,858                       | 97.15%             | Weis Market (2022/2037), Dunham's Sporting Goods(2005/2015),                         
|                                                                                               |                             |                            |                                 |                   |                               |                    | Toys R Us (2015/2035), Staples (2010/2019), Superpetz (2005/2015)                    
|Pilgrim Gardens                                                                                | Drexel Hill                 | 1986                       | Fee                             | 5.00              | 83,358                        | 100.00%            | Loehmann's (2003/2013), QVC Network, Inc. (2000/2000)                                
|Street Road                                                                                    | Bensalem                    | 1993                       | Fee                             | 10.35             | 68,031                        | 100.00%            | Drug Emporium (2002/2008), Frank's Nursery (2007/2022)                               
|Valley Fair                                                                                    | Tredyffrin                  | 1993                       | Fee                             | 11.14             | 112,336                       | 40.36%             |                                                                                      
|Valley Forge Mall                                                                              | Phoenixville                | 1985                       | Fee                             | 18.00             | 177,379                       | 87.11%             | Eckerd Drug (2000/2010), Ames ( 2017/2025), French Creek Outfitters, Inc. (2005/2020)
|Whitehall Square                                                                               | Whitehall                   | 1986                       | Fee                             | 30.44             | 298,023                       | 93.25%             | Stop & Shop (2006/2024), Phar Mor (2001/2016), Today's Man (2002/2007),              
|                                                                                               |                             |                            |                                 |                   |                               |                    | The Sports Authority (2006/2036), Kids R Us (2007/2027)  (1)                         
|Rhode Island                                                                                   |                             |                            |                                 |                   |                               |                    |                                                                                      
|Wampanoag Plaza                                                                                | East Providence             | 1989                       | Fee                             | 18.00             | 242,162                       | 82.49%             | Rx Drug (2001/2016), Cherry&Webb(2005/2005),                                         
|                                                                                               |                             |                            |                                 |                   |                               |                    | Marshalls (2006/2006), Savers/TVI, Inc.(2010/2025)                                   
|South Carolina                                                                                 |                             |                            |                                 |                   |                               |                    |                                                                                      
|East Main Centre                                                                               | Spartanburg                 | 1997                       | Fee                             | 23.06             | 171,595                       | 100.00%            | Wal Mart(2009/2039), Goody's(2001/2007)                                              
|Park Centre                                                                                    | Columbia                    | 1997                       | Fee                             | 20.64             | 190,705                       | 100.00%            | Wal Mart(2009/2039), Harris Teeter(2012/2027)                                        
|                                                                                               |                             |                            |                                 |                   |                               |                    |                                                                                      
|Tennessee                                                                                      |                             |                            |                                 |                   |                               |                    |                                                                                      
|Meeting Square                                                                                 | Jefferson City              | 1998                       | Fee                             | 9.43              | 92,968                        | 100.00%            | Wal Mart(2009/2039), Food Lion (2009/2039) (1)                                       
|                                                                                               |                             |                            |                                 |                   |                               |                    |                                                                                      
|Virginia                                                                                       |                             |                            |                                 |                   |                               |                    |                                                                                      
|Culpeper Town Mall                                                                             | Culpeper                    | 1995                       | Fee                             | 27.48             | 132,881                       | 89.51%             | Central Tractor(2005/2010), Schewel Furniture (2001/2006), Food Lion                 
|                                                                                               |                             |                            |                                 |                   |                               |                    | (2019/2039)                                                                          
|Marumsco-Jefferson Plz.                                                                        | Woodbridge                  | 1995                       | Fee                             | 36.00             | 329,305                       | 68.51%             | Giant Food Store(2004/2024),Peebles (2004/2010), Consolidated Stores  Inc.           
|                                                                                               |                             |                            |                                 |                   |                               |                    | (2002/2012)                                                                          
|Statler Crossing                                                                               | Staunton                    | 1998                       | Fee                             | 21.04             | 166,944                       | 97.12%             | Wal Mart (2009/2039), Rack 'N Sack (2013/2028) (1)                                   
|                                                                                               |                             |                            |                                 |                   |                               |                    |                                                                                      
|                                                                                               | Total                       |                            |                                 | 1,002.07          | 8,962,582                     | 91.27%             |                                                                                      
|                                                                                               |                             |                            |                                 |                   |                               |                    |                                                                                      
|Footnotes:                                                                                     |                             |                            |                                 |                   |                               |                    |                                                                                      
|(1) Includes space for which rent is being paid but which is not presently occupied.           |                             |                            |                                 |                   |                               |                    |                                                                                      
|(2) 84,692 square feet gross leasable area is subject to a ground lease which expires in 2004. |                             |                            |                                 |                   |                               |                    |                                                                                      

Corporate Headquarters  The Company leases from Norman M. Kranzdorf, its President and Chief Executive Officer, a three-story building containing approximately 20,000 gross square feet located at 128 Fayette Street, Conshohocken, Pennsylvania
19428, which serves as the Company's headquarters.  This lease was extended to January 14, 2004 and  provides that the Company will pay a rental of $153,720 per annum.  The lease also requires the Company to pay for all real estate taxes, utilities,
repairs and other costs and expenses in connection with the use and occupancy of the building.

Item 3. Legal Proceedings

The Company is not presently involved in any material litigation nor, to its knowledge, is any material litigation threatened against the Company or its properties.  The Company is involved in routine litigation arising in the ordinary course of
business and which is expected to be covered by the Company's liability insurance.

Item 4. Submission of Matters to a Vote of Security Holders

No matter was submitted to a vote of security holders during the fourth quarter of the fiscal year covered by this report.

PART II

Item 5. Market for the Registrant's Common Equity and Related Shareholder Matters

(a) Market Information

The Shares have been listed on the New York Stock Exchange ("NYSE") since November 19, 1992 under the symbol "KRT."  On March 17, 2000, the last reported sale price of the Shares on the NYSE was $8.875 per share.  The following table shows the high
and low sales price for the Shares for the fiscal periods indicated as reported by the New York Stock Exchange Composite Tape and the cash distributions per Common Share paid by the Company with respect to each such period.

|1999           | High   | Low    | Distributions
|-------------- | ------ | ------ | -------------
|First Quarter  | $15.19 | $11.50 | $0.48        
|Second Quarter | $14.56 | $11.50 | $0.48        
|Third Quarter  | $13.50 | $9.25  | $0.33        
|Fourth Quarter | $10.31 | $7.50  | $0.33        
|               |        |        |              
|1998           | High   | Low    | Distributions
|First Quarter  | $19.75 | $17.38 | $0.48        
|Second Quarter | $18.69 | $17.50 | $0.48        
|Third Quarter  | $19.00 | $15.00 | $0.48        
|Fourth Quarter | $16.44 | $13.38 | $0.48        

(b) Holders

The approximate number of holders of record of the Shares was 1,240 as of March 17, 2000.

(c) Recent Sales of Unregistered Securities

On April 1, 1999, July 1, 1999, October 1, 1999 and January 1, 2000, Shares  were issued to the non-employee trustees of the Company (the "Trustee Shares").  Trustee Shares issued to Dr. Peter Linneman, Mr. Bernard Korman, Mr. Gerald Finn and Mr. E.
Donald Shapiro totalled 2,836, 2,688, 2,666 and 2,836, respectively, for the above periods.  The Trustee Shares were issued to such individuals in lieu of (i) their annual trustee fee of $18,000, and (ii) a fee of $1,500 for each regular Board meeting
attended.  The Trustee Shares were valued based on the closing price of the Shares on the New York Stock Exchange on the last business day of the fiscal quarter preceding the date of grant.  No underwriter was used in connection with the issuance of the
Trustee Shares.  For the fiscal year 1999, the non-employee trustees received an aggregate of 11,026 Shares having an aggregate value of $117,000 at the respective dates of grant.

On July 1, 1999, the Company issued 17,131 restricted Shares (the "Employee Shares") to certain employees.  The Employee Shares were valued based on a per share price of $13.44 and were issued as bonuses for performance.  The Employee Shares vest over
periods from one to three years from the date of issuance, although employees are immediately entitled to the distributions from the date of grant.  No underwriter was used in connection with the issuance of the Employee Shares.

The issuance of the Trustee Shares and the Employee Shares were exempt from registration under the Securities Act of 1993, as amended (the "Act"), as transactions by an issuer not involving any public offering in accordance with Section 4(2) of the Act.

(d) Distributions

The Company declared distributions to common shareholders aggregating $1.61 per Share during the fiscal year ended December 31, 1999.  The fourth quarter distribution of $0.325 per common share which was declared on December 14, 1999 and paid in
January 2000 is reportable in the year 2000.  Of the remaining distribution, it was determined that $0.3356 per share is a return of capital, $0.0709 per share is unrecaptured section 1250 gain, $0.009 per share is 20% gain and $0.8695 per share is
ordinary income for 1999.

The Company has paid regular quarterly cash distributions on the Shares since it commenced operations as a REIT in November 1992.

Future distributions paid by the Company will be at the discretion of the Trustees and will depend on the actual cash flow of the Company, its financial condition, capital requirements, the annual distribution requirements under the REIT provisions of
the Code and such other factors as the Trustees deem relevant.

The Company has adopted a dividend reinvestment plan pursuant to which shareholders may elect to automatically reinvest their distributions in Shares.  To fulfill its obligations under this dividend reinvestment plan, the Company will, from time to
time, repurchase Shares in the open market or issue new Shares.

Item 6. Selected Financial Data

The following table sets forth on a historical basis Selected Financial Data for the Company.   This information should be read in conjunction with the financial statements of the Company (including the related notes thereto) and Management's
Discussion and Analysis of the Financial Condition and Results of Operations.  The historical Selected Financial Data for Kranzco Realty Trust has been derived from the audited financial statements.

|KRANZCO REALTY TRUST                                                     |            |            |            |            |           
|------------------------------------------------------------------------ | ---------- | ---------- | ---------- | ---------- | ----------
|                                                                         |            |            |            |            |           
|Year Ended December 31--                                                 |            |            |            |            |           
|                                                                         |            |            |            |            |           
|                                                                         | 1999       | 1998       | 1997       | 1996       | 1995      
|(In thousands except share and per share data)                           |            |            |            |            |           
|OPERATING DATA:                                                          |            |            |            |            |           
|Revenue                                                                  |            |            |            |            |           
|Minimum rent                                                             | $62,087    | $56,823    | $47,579    | $41,665    | $40,259   
|Percentage rent                                                          | 1,335      | 1,233      | 1,163      | 1,042      | 1,044     
|Expense reimbursements                                                   | 13,820     | 12,800     | 11,165     | 11,732     | 10,988    
|Interest income                                                          | 340        | 335        | 278        | 624        | 902       
|Other income                                                             | 520        | 151        | 127        | 117        | 277       
|Total revenue                                                            | 78,102     | 71,342     | 60,312     | 55,180     | 53,470    
|Operating expenses, exclusive of interest, depreciation and amortization | 22,343     | 23,242     | 17,807     | 18,382     | 16,482    
|Interest expense                                                         | 27,236     | 21,764     | 18,887     | 17,069     | 16,208    
|Depreciation and amortization                                            | 16,863     | 14,582     | 12,534     | 11,194     | 10,903    
|                                                                         |            |            |            |            |           
|Income before gain (loss) on sale of real estate and extraordinary items | 11,660     | 11,754     | 11,084     | 8,535      | 9,877     
|Gain (loss) on sale of real estate                                       | 535        | 109        | 0          | (63)       | 0         
|Extraordinary loss on early extinguishment of debt/debt refinancing      | 0          | 0          | (467)      | (11,052    | 0         
|Net income (loss)                                                        | 12,195     | 11,863     | 10,617     | (2,580)    | 9,877     
|Preferred share distributions                                            | 7,903      | 7,984      | 3,565      | 695        | 485       
|Net income (loss) for common shareholders                                | $4,292     | $3,879     | $7,052     | ($3,275)   | $9,392    
|Basic earnings (loss) per common share                                   | $0.41      | $0.37      | $0.68      | ($0.32)    | $0.91     
|Diluted earnings (loss) per common share                                 | $0.41      | $0.37      | $0.68      | ($0.32)    | $0.91     
|Distributions per common share                                           | $1.61      | $1.92      | $1.92      | $1.92      | $1.92     
|Weighted average number of Common Shares outstanding                     | 10,550,729 | 10,478,793 | 10,341,958 | 10,327,795 | 10,319,464
|                                                                         |            |            |            |            |           
|BALANCE SHEET DATA:                                                      |            |            |            |            |           
|Real estate, before accumulated depreciation                             | $584,261   | $584,883   | $484,741   | $370,491   | $368,073  
|Total assets                                                             | $535,625   | $546,516   | $466,220   | $359,157   | $372,983  
|Total debt                                                               | $353,208   | $350,141   | $255,124   | $212,590   | $204,247  
|Series C Redeemable Preferred Shares                                     | $0         | $445       | $2,228     | $0         | $0        

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

Liquidity and Capital Resources



At December 31, 1999 the Company had $5,020,000 of cash on hand. In addition to its cash reserve, unused capacity under credit facilities totaled $250,000 at year end.

As of December 31, 1999 the Company had total mortgages and notes payable of $353,208,000 of which $293,027,000 bear interest at fixed rates ranging from 7.00% to 9.375%.  The weighted average interest rate of all of the Company's mortgages and notes
payable as of December 31, 1999 was 7.92%.  As of December 31, 1999, the Company is required to make aggregate principal payments on all of its outstanding indebtedness of $61,409,000 in 2000, $5,294,000 in 2001, $4,371,000 in 2002, $193,895,000 in 2003,
$15,497,000 in 2004 and $72,742,000 thereafter.  The Company has three balloon payments on debt obligations due in 2000.  Two mortgages totalling $11 million collateralized by two properties are due in the fourth quarter of 2000.  The Company intends to
refinance the mortgages on these properties.  The Salomon Facility, due in July 2000, will be extended at the Company's option, subject to meeting certain requirements of the Salomon Facility documents,  if the proposed merger with CV Reit, Inc. is not
consummated at that time.

In June 1996, the Company successfully completed the refinancing of substantially all of its variable rate debt and a portion of its fixed rate debt.  The Company entered into a seven year, secured, fixed rate real estate mortgage loan in the principal
amount of $181,700,000 (the "Mortgage Loan"), at a weighted average interest rate of 7.96%, which is inclusive of trustee and servicer fees.  The entire principal balance of the Mortgage Loan is due in June 2003.  The Mortgage Loan is secured by
twenty-seven of the Company's properties (the "Mortgaged Properties").  As a condition of the Mortgage Loan, the Company was required to establish a Sinking Fund Account and a Capital and TI Reserve Account.  The balance in the Sinking Fund Account was
$498,000 as of December 31, 1999.  All funds in the Capital and TI Reserve Account may be used on a current basis to fund capital improvements, repairs, alterations, tenant improvements and leasing commissions at the Mortgaged Properties.  The balance in
the Capital and TI Reserve Account was $1,000 as of December 31, 1999.

In 1998, the Company partially funded the purchase of nine shopping center properties through a 10-year 7% fixed rate $65,900,000 mortgage with Salomon Brothers Realty Corp.  As of December 31, 1999, the outstanding principal balance on this mortgage
was $65,194,000.

As of December 31, 1999, the Company has three floating rate mortgages with principal outstanding of $11,666,000.  The interest rate on two of the mortgages is equal to the sum of Moody's A Corporate Bond Index Daily Rate minus 0.125% per annum,
rounded up to the next highest 1/8 percentage rate.  The rates are reset once a year.  As of December 31, 1999, the rates of these two mortgages were 6.875% and 7.125%.  The Company refinanced a $4,800,000 mortgage in the fourth quarter of 1999.  This
mortgage has an interest rate payable of London Interbank Offering Rate ("LIBOR") plus 250 basis points, which was 8.59% as of December 31, 1999, and is due in December 2000.

The Company has a $1.0 million unsecured line of credit from First Union National Bank. Amounts borrowed under the line will bear interest at the bank's prime rate, which was 8.50% at December 31, 1999. The facility has been extended through April 30,
2000, and there was $750,000 of borrowings outstanding under this facility as of December 31, 1999.

In 1997, the Company obtained a secured first mortgage loan facility of up to $50 million from Salomon Brothers Realty Corp. (the "Salomon Facility").  In 1998, the Company doubled this Salomon Facility to $100 million from $50 million.  The maturity
of the Salomon Facility was extended two years to July 2000, with an option for a one-year extension, subject to meeting certain requirements of the Salomon Facility documents.  Currently, fifteen of the Company's shopping centers or portions thereof
secure the mortgage loan facility.  Amounts borrowed under the Salomon Facility bear interest at a rate equal to the one-month London Interbank Offering Rate ("LIBOR") plus a spread of 175 basis points, which was 8.23% as of December 31, 1999.  The
Salomon Facility requires that the following covenants be met:  consolidated equity will not fall below $150 million; the ratio of consolidated income available for debt service will not be less than 1.30 to 1.0; and debt to market cap will not be above
70%.  The Company is in compliance with these covenants.  There was $47,765,000 of outstanding borrowings under this facility as of December 31, 1999.  The proceeds of the Salomon Facility were used by the Company for funding property acquisitions,
general corporate purposes and capital needs.

In June 1999, the Company sold one of its free-standing properties located in Tucson, AZ for approximately $864,000 and recorded a net loss on the sale of approximately $18,000.  In July and August 1999, the Company completed the sale of three
additional free-standing properties located in Raynham, MA, Roseville, MN, and Minnetonka, MN as well as a 61,000 square foot shopping center in Orange, CT.  Total proceeds on the sales were approximately $9,887,000 and the net gain was approximately
$545,000.  The proceeds of the sales were used to pay down debt obligations and for general corporate purposes, including the continuing program of upgrading and expanding existing properties.  In September 1999, the Company sold a parcel of land at its
center in Bainbridge, GA, and recorded a gain of approximately $59,000.  The net proceeds from the sale of approximately $235,000 was used to repay debt outstanding on the property.  In the third quarter of 1999, the Company finalized the condemnation of
a small portion of land at one of its properties  by the respective township authority.  Gross proceeds were approximately $99,000 and the Company recorded a loss of $51,000 related to the transaction.

The National Association of Real Estate Investment Trusts ("NAREIT") defines funds from operations as income before depreciation and amortization of real estate assets and significant non-recurring events, less gains plus losses on sale of real estate.
Funds from operations does not represent cash flows from operations as defined by generally accepted accounting principles and is not necessarily indicative as a measure of liquidity of the Company. Also, funds from operations should not be construed as
an alternative to net income as defined by generally accepted accounting principles as an indicator of the Company's operating performance. Funds from operations for common shareholders increased $2,126,000 or 12% from $17,817,000 for the year ended
December 31, 1998 to $19,943,000 for the year ended December 31, 1999.

The Company has several tenants who are operating under Chapter 11 of the United States Bankruptcy code.These tenants continue to pay current rent and operate their stores under Chapter 11 and are individually less than 1% and in the aggregate
approximately 1.4% of the Company's annual revenues. The Company believes that it is adequately reserved for these tenants.

During the year ended December 31, 1999, the Company invested approximately $10,219,000 in the expansion and improvement of its shopping center properties. The Company expects to meet its short-term liquidity requirements through net cash flow
provided from operations, existing cash, long-term or short-term borrowings and the Capital and TI Reserve account.  The Capital and TI Reserve account may be utilized by the Company for the funding of costs related to capital improvements, repairs,
alterations, tenant improvements and leasing commissions in the centers secured by the Mortgage Loan.  To meet its long-term liquidity requirements, such as refinancing its balloon mortgages, financing acquisitions and major capital improvements, the
Company intends to either utilize long-term borrowings, issue debt securities and/or issue additional equity securities.



Management believes it has adequate access to capital to continue to meet its short-term and long-term requirements and objectives.

The Company had completed a review of its Information Technology ("IT") Systems and non-IT Systems regarding Year 2000 compliance in the fourth quarter of 1999.  All phone systems, desktop computer systems and network systems within the
Companys offices were tested for Year 2000 compliance and any occurrences of noncompliance were corrected and successfully tested prior to January 1, 2000.  In shopping centers where the Company is responsible for computer controlled systems that
are vulnerable to the Year 2000 problem such as HVAC, elevators or alarms, all systems were believed to be compliant and the Company has not experienced any noncompliant issues.  The Company has not performed an exhaustive study of systems that are
designated as the tenants responsibilty in leases, however all fire alarms were evaluated and found to be Year 2000 compliant. One tenant has been notified of a potential monitoring (not functional) problem with its sprinkler system. All of the
Companys tenants were notified of the issues regarding the Year 2000.

Tenants of the Company's properties and vendors of the Company may own or maintain IT and non-IT systems which are not Year 2000 compliant. The Company has not received any notices from tenants or vendors regarding systems that are out of compliance.

Costs for the review and modifications of IT and non-IT systems have not been separated from ongoing expenses due to their small amounts. No money has been spent outside of normal internal salaries for both operations (non-IT) and IT personnel and
normal operations have not been interrupted. Similarly, no budget has been allocated for future costs relating to Year 2000 issues.  The Company did not experience any interruptions to business operations as a result of the turn of the century.

Results of Operations

Year ended December 31, 1999 versus the year ended December 31, 1998

Net income for common shareholders increased $413,000 from $3,879,000 or $0.37 per common share in 1998 to $4,292,000 or $0.41 per common share in 1999.  This increase is due to a combination of factors as described below, but is primarily attributable
to two charges in 1998.  The Company reserved approximately $250,000 of costs incurred in the terminated transaction with NAI (see above for additional details).  The Company also recorded a charge of approximately $2,863,000 related to straight-line
rentals and pre-petition rents, primarily for the three Caldor stores.

Minimum rent increased $5,264,000 or 9% from $56,823,000 for the year ended December 31, 1998 to $62,087,000 for the year ended December 31, 1999.  The increase was primarily due to the additional rents from a full year of operations of the ten
centers acquired by the Company in 1998 (approximately $6,232,000 increase from prior year), combined with a decrease in the minimum rents of approximately $454,000 from the Company's existing shopping centers and net of rents lost of approximately
$514,000 for centers sold in 1998 and 1999.

Percentage rent increased $102,000 or 8% from $1,233,000 for the year ended December 31, 1998 to $1,335,000 for the year ended December 31, 1999.  The increase was primarily due to an additional $335,000 of percentage rent being recognized at the nine
properties purchased in the third quarter of 1998.  Due to a change in accounting rules, the Company may only recognize contingent rent on an accrual basis only after the respective tenant has reached its sales threshold.  As a result of this change,
there was a reduction of approximately $75,000 in percentage rent in the fourth quarter of 1999.

Expense reimbursements increased $1,020,000 or 8% from $12,800,000 for the year ended December 31, 1998 to $13,820,000 for the year ended December 31, 1999.  The increase was due to the additional revenues recorded from the ten centers purchased in
1998 of approximately $889,000, as well as an increase in the recovery of reimbursable expenses incurred in 1999 versus 1998.

Other income increased $369,000 or 244% from $151,000 for the year ended December 31, 1998 to $520,000 for the year ended December 31, 1999.  The increase was primarily due to the recovery of bad debts written off in previous years as well as a
settlement received from the previous owner of one of the Company's properties regarding a tenant matter.

Interest expense increased $5,472,000 or 25% from $21,764,000 for the year ended December 31, 1998 to $27,236,000 for the year ended December 31, 1999. The increase is primarily due to the interest expense incurred in connection with the additional
ten centers acquired in 1998 of approximately $3,500,000 for the year.  The Company also incurred an additional $1,720,000 of interest expense in 1999 as compared to 1998 as a result of additional borrowings made on the Salomon Facility.  In addition,
interest expense was reduced by capitalized interest on projects under construction and land under development in the amount of $850,000 and $555,000 during 1998 and 1999, respectively.

Depreciation and amortization increased $2,281,000 or 16% from $14,582,000 for the year ended December 31, 1998 to $16,863,000 for the year ended December 31, 1999.  Depreciation expense on buildings and improvements increased approximately $1,472,000
in 1999 versus 1998 due to the ten additional centers acquired in 1998.  The remaining increase in depreciation and amortization was primarily due to the depreciation expense recorded in 1999 for improvements made in the current year.

Real estate taxes increased $652,000 or 9% from $7,404,000 for the year ended December 31, 1998 to $8,056,000 for the year ended December 31, 1999.  The increase was primarily due to the increase in expense from the additional ten centers acquired in
1998 of $355,000.  The increase was offset by the capitalization of real estate taxes on projects under construction of $142,000 and $76,000 during the years 1998 and 1999, respectively.

Operations and maintenance expenses decreased $1,915,000 or 15% from $12,362,000 for the year ended December 31, 1998 to $10,447,000 for the year ended December 31, 1999. The decrease was primarily due to the Company's provision in 1998 of $2,863,000
of straight-line rents and pre-petition rent receivables for certain tenants in bankruptcy, primarily Caldor.  The additional increase relates primarily to additional monies spent in 1999 for snow removal of approximately $475,000 as well as an increase
in repairs at the  centers of approximately $166,000.

General and administrative expenses increased $364,000 or 10% from $3,476,000 for the year ended December 31, 1998 to $3,840,000 for the year ended December 31, 1999.  The increase is primarily due to an increase in professional fees as well as an
increase in salary costs over the prior year.

Year ended December 31, 1998 versus the year ended December 31, 1997

Net income for common shareholders decreased $3,173,000 from $7,052,000 or $0.68 per common share in 1997 to $3,879,000 or $0.37 per common share in 1998.  This decrease is due to a combination of factors as described below, but is primarily
attributable to two charges in 1998.  The Company reserved approximately $250,000 of costs incurred in the terminated transaction with NAI (see above for additional details).  The Company also recorded a charge of approximately $2,863,000 related to
straight-line rentals and pre-petition rents, primarily for the three Caldor stores.

Minimum rent increased $9,244,000 or 19% from $47,579,000 for the year ended December 31, 1997 to $56,823,000 for the year ended December 31, 1998.  The increase was primarily due to the additional rents from a full year of operations of the twenty
centers acquired by the Company in 1997 (approximately $5,594,000 increase from prior year), as well as an increase in the minimum rents of approximately $2,468,000 from the ten shopping centers purchased by the Company in 1998.  The remaining increase of
approximately $1,182,000 was an increase in the minimum rents of the Company's shopping centers owned prior to 1997.

Expense reimbursements increased $1,635,000 or 15% from $11,165,000 for the year ended December 31, 1997 to $12,800,000 for the year ended December 31, 1998.  The increase was primarily due to higher common area maintenance expenses in 1998 (see
operations and maintenance expenses below), as well as the additional reimbursements from the operations of the ten centers acquired by the Company during 1998 of approximately $514,000.

Interest income increased $57,000 or 21% from $278,000 for the year ended December 31, 1997 to $335,000 for the year ended December 31, 1998.  The increase was primarily due to the additional cash on hand in the beginning of the year which represented
the net proceeds from the issuance of the Company's Series D Preferred Shares in December 1997.  These proceeds were invested in a money market fund.

Interest expense increased $2,877,000 or 15% from $18,887,000 for the year ended December 31, 1997 to $21,764,000 for the year ended December 31, 1998. The increase is primarily due to the operations of the ten centers acquired by the Company in
1998 of approximately $1,425,000 as well as a full year of interest expense for the four centers acquired by the Company in December 1997 of approximately $1,872,000.  In addition, interest expense was reduced by capitalized interest on projects under
construction and land under development in the amount of $947,000 and $850,000 during 1997 and 1998, respectively.

Depreciation and amortization increased $2,048,000 or 16% from $12,534,000 for the year ended December 31, 1997 to $14,582,000 for the year ended December 31, 1998.  The increase was primarily due to the additional depreciation of approximately
$553,000 for the operations of the ten centers acquired by the Company in 1998 and the additional depreciation for a full year for the twenty centers acquired in 1997.

Real estate taxes increased $820,000 or 12% from $6,584,000 for the year ended December 31, 1997 to $7,404,000 for the year ended December 31, 1998.  The increase was primarily due to the additional real estate taxes of approximately $366,000 for
the ten centers acquired by the Company in 1998.  The remaining increase was due to a full years expense recorded in 1998 for the twenty centers purchased in 1997.  The increase was offset by the capitalization of real estate taxes on projects under
construction of $188,000 and $142,000 during the years 1997 and 1998, respectively.

Operations and maintenance expenses increased $4,016,000 or 48% from $8,346,000 for the year ended December 31, 1997 to $12,362,000 for the year ended December 31, 1998. The increase was primarily due to the Company's provision of $2,863,000 of
straight-line rents and pre-petition rent receivables for certain tenants in bankruptcy, primarily Caldor.  The additional increase relates to additional monies spent in 1998 for repairs at the centers as well as an increase in insurance costs for the
additional centers purchased in 1998 and the full year's effect for those centers purchased during 1997.

General and administrative expenses increased $599,000 or 21% from $2,877,000 for the year ended December 31, 1997 to $3,476,000 for the year ended December 31, 1998.  The increase is primarily due to salaries which were capitalized in 1997 in
connection with acquisitions.  Due to a change in accounting rules, internal salary costs, even though directly attributable to the project, are no longer permitted to be capitalized as part of the acquisition costs.  The Company also recorded a $250,000
charge for transaction costs related to the December termination of a proposed exchange offer with NAI.  In lieu of the proposed exchange offer, the Company made a $1,000,000 investment for a minority interest in NAI.



Inflation

Most of the retail tenant leases at the shopping center properties contain provisions which will entitle the Company to receive percentage rents based on the tenants' gross sales. Such percentage rents minimize the risk to the Company of
the adverse effects of inflation.  Most of the leases at the shopping center properties require the tenants to pay a substantial share of operating expenses, such as real estate taxes, insurance and common area maintenance costs, and thereby reduce the
Company's exposure to increased costs.  In addition, many of the leases at the shopping center properties are for terms of less than ten years, which may enable the Company to seek increased rents upon renewal of existing leases.





Item 7A. Quantitative and Qualitative Disclosures About Market Risk

The Company's primary exposure to market risk is to changes in interest rates.  The Company has both fixed and variable rate debt.  The Company has $353,208,000 of debt outstanding as of December 31, 1999 of which $293,027,000, or 83%, has been
borrowed at fixed rates ranging from 7.00% to 9.375% with maturities through 2009.  As these debt instruments mature, the Company typically refinances such debt at their existing market interest rates which may be more or less than interest rates on the
maturing debt.  Changes in interest rates have different impacts on the fixed and variable rate portions of the Company's debt portfolio.  A change in interest rates on the fixed debt impacts the net market value of the debt but has no impact on interest
incurred or cash flows.  Interest rate changes on variable debt impacts the interest incurred and cash flows but does not impact the net market value of the debt instrument.

To illustrate the risk inherent with a change in interest rates, a sensitivity analysis assuming a 100 basis point move in interest rates from their actual levels at December 31, 1999 with all other variables held constant was estimated by the Company.
 As of December 31, 1999, a 100 basis point increase in market interest rates would result in a decrease in the net market value of the fixed debt portfolio of approximately $7,461,000 and a 100 basis point decrease in market interest rates would result
in an increase in the net market value of the debt portfolio of approximately $5,358,000.

Based on the variable rate debt of the Company as of December 31, 1999, a 100 basis point increase in interest rates would result in an additional $602,000 in interest incurred per year and a 100 basis point decline would lower interest incurred by
$602,000 per year.

Item 8. Financial Statements and Supplementary Data

The response to this Item 8 is included as a separate section of Item 14 in Part IV of this Annual Report on Form 10-K.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

PART III



Item 10. Director and Executive Officers of the Registrant

Norman M. Kranzdorf, President and Chief Executive Officer, 69, a co-founder of the Company, has been a trustee of the Company since its organization in June 1992. Mr. Kranzdorf was the President of Kranzco Realty, Inc.,  a general
commercial real estate management and brokerage company ("Kranzco Realty") from 1979, when he founded it, to 1992. He served as President of Amterre Development Inc ("Amterre")  from 1972 to 1981. Amterre, the successor to Food Fair Properties, Inc.,
owned and operated over 50 shopping centers, as well as other single-tenant retail properties, on the Eastern seaboard. Mr. Kranzdorf was also an officer and director of Kranzco Management, Inc., a general commerical real estate management and brokerage
company and wholly-owned subsidiary of Kranzco Realty, from 1980, when it was founded, to 1992. He is a former trustee of the International Council of Shopping Centers and a former member of the Board of Governors of the National Association of Real
Estate Investment Trusts. Mr. Kranzdorf is a member of the Board's  Executive Committee and Executive Compensation Committee. Mr. Kranzdorf is a Class III Trustee.

Edmund Barrett, Executive Vice President and Chief Operating Officer, 66, has been a trustee of the Company since June 1995, the Chief Operating Officer of the Company since December 1994, the Director of Leasing from 1992 to May 1997 and
Executive Vice President of the Company since 1992. Previously, he was the Assistant Director  of Development  of Kranzco Realty from 1987 to 1988 and a Vice President of Kranzco Realty from 1988 to 1992. Mr. Barrett is a Class II Trustee.

Robert H. Dennis, Vice President, Chief Financial Officer and Treasurer, 53, has been a trustee of the Company since 1994 and Vice President, Chief Financial Officer and Treasurer of the Company since its organization in June 1992. Prior thereto
he was the Chief Financial Officer and Assistant Secretary of Kranzco Realty from 1981 to 1992.  Mr Dennis is a Class II Trustee.

Gerald C. Finn, Trustee, 69, has been a trustee of the Company since 1998.  He is the founder of New America Network, Inc. ("New America"), an international brokerage and real estate services company, and has served as a Director and the Chief
Executive Officer of New America since 1974. He also served as President and Chief Operating Officer from 1974 until 1995. He was elected as Chairman of the Board in May, 1990. Prior to his association with New America, Mr. Finn was an active real estate
broker and developer for his own account and for the account of various entities in which he had an equity interest. He is a licensed real estate broker and a member of the National Association of Corporate Real Estate Executives, International Council of
Shopping Centers, Urban Land Institute and National Board of Realtors. Mr. Finn is a Class II Trustee.

Bernard J. Korman, Trustee, 68, has been a trustee of the Company since May 1997.  Mr. Korman is Chairman of Philadelphia Health Care Trust, a non-profit organization.  Mr. Korman, served as President and Chief Executive Officer of MEDIQ
Incorporated (AMEX) (healthcare services) from 1981 to 1995 and as Chairman of PCI Services, Inc. from 1992 to 1996. Mr. Korman currently is a director of The Pep Boys, Inc. (NYSE) (auto supplies), The New America High Income Fund, Inc. (NYSE) (financial
services), NutraMax Products, Inc. (NASDAQ) (consumer healthcare products), Omega Healthcare Investors, Inc. (NYSE) (a REIT) and Omega Worldwide, Inc. (NASDAQ) (real estate company).  Mr. Korman is a member of the Board's Executive Committee, Executive
Compensation Committee and Audit Committee. Mr. Korman is a Class III Trustee.

Dr. Peter D. Linneman, Trustee, 49, has been a trustee of the Company since November 1992. Dr. Linneman is the Principal of Linneman Associates, a financial and real estate strategic advisory firm and has been a Professor of Finance and Public
Policy  at the Wharton School of the University of Pennsylvania since 1979.  He has been the Albert Sussman Professor of Real Estate at the Wharton School since 1987 and was a director of the Wharton Real Estate Center from 1986-1998. In addition, he is
an Urban Land Institute Research Fellow and a member of the National Association of Real Estate Investment Trusts. Dr. Linneman  was a founder and Senior Managing Director of Equity International Properties. Dr. Linneman was formerly Chairman  and trustee
of Rockefeller Center Properties Trust (a REIT) and a trustee of Gables Residential Property Trust (a REIT) and Universal Health Realty Trust (a REIT). Dr. Linneman is a member of the Board's Audit Committee and Incentive Plan Committee. Dr. Linneman is a
Class I Trustee.

E. Donald Shapiro, Trustee, 68, has been a trustee of the Company since June 1994. Mr. Shapiro is The Joseph Solomon Distinguished Professor of Law at New York Law School since 1983.  Mr. Shapiro also serves as a director of each of the
following entities: Loral Space and Communications (formerly Loral Corporation) (NYSE) (satellite communications) (since 1973); GHI (health care provider) (not for profit) (since 1974); Vasomedical, Inc. (medical products) (NASDAQ) (since 1992); Vion,
Inc. (formerly Mela Rx) (drug) (NASDAQ) (since 1992); United Industrial Corporation (defense industry) (NYSE) (since 1996); and Frequency Electronics (space and communication components) (AMEX) (since 1998).   Mr. Shapiro is a member of the Board's Audit
Committee, Executive Committee and Executive Compensation Committee. Mr. Shapiro is a Class I Trustee.

Section 16(a) Beneficial Ownership Reporting Compliance

To the Company's knowledge, based solely on a review of the copies of such reports furnished to the Company and written representations from certain reporting persons that no other reports were required for such persons, the Company believes that,
during the fiscal year ended December 31, 1999, all filing requirements pursuant to Section 16(a) of the Securities Exchange Act of 1934, as amended, applicable to the Company's executive officers, trustees and greater than 10% beneficial owners were
complied with, except Gerald C. Finn failed to file a Form 4 and a Form 5 on a timely basis with respect to the purchase of 500 Common Shares.



Item 11. Trustees' and Executive Officer Compensation

Executive Officer Compensation

The following table sets forth certain information with respect to the cash and other compensation paid or accrued by the Company for services rendered  by Norman M. Kranzdorf, the Company's President and Chief Executive Officer , Robert H. Dennis,
the Company's Vice President, Chief Financial Officer and Treasurer and Edmund Barrett, the Company's Executive Vice President and Chief Operating Officer (collectively, the "Named Executives"), during the fiscal years ended December 31, 1999, 1998 and
1997. Other than the Named Executives, no executive officer of the Company earned a total salary and bonus exceeding $100,000 during the fiscal year ended December 31, 1999.

|Summary Compensation Table                                                                                                                                                                                                                                      |                     |          |        |                           |                                           |                       
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------- | -------- | ------ | ------------------------- | ----------------------------------------- | ----------------------
|                                                                                                                                                                                                                                                                |                     |          |        |                           |                                           |                       
|                                                                                                                                                                                                                                                                |                     |          |        |                           |                                           |                       
|                                                                                                                                                                                                                                                                | Annual Compensation |          |        |                           |                                           |                       
|Name & Principal Position                                                                                                                                                                                                                                       | Year                | Salary   | Bonus  | Other Annual Compensation | Long-Term Compensation Underlying Options | All Other Compensation
|                                                                                                                                                                                                                                                                |                     |          |        |                           |                                           |                       
|Norman M. Kranzdorf                                                                                                                                                                                                                                             | 1999                | $316,250 | $6,082 | (1)(2)                    | 3,000                                     | $8,351                
|President and Chief                                                                                                                                                                                                                                             | 1998                | $306,678 | $6,082 | (1)(2)                    | - -                                       | $8,236                
|Executive Officer                                                                                                                                                                                                                                               | 1997                | $256,692 | $5,288 | (1)(2)                    | 20,000                                    | $8,440                
|                                                                                                                                                                                                                                                                |                     |          |        |                           |                                           |                       
|Robert H. Dennis                                                                                                                                                                                                                                                | 1999                | $178,250 | $3,428 | (1)(2)                    | - -                                       | $8,351                
|Vice President, Chief                                                                                                                                                                                                                                           | 1998                | $172,855 | $3,428 | (1)(2)                    | 3,000                                     | $8,236                
|Financial Officer and                                                                                                                                                                                                                                           | 1997                | $139,308 | $2,981 | (1)(2)                    | 10,000                                    | $7,506                
|Treasurer                                                                                                                                                                                                                                                       |                     |          |        |                           |                                           |                       
|                                                                                                                                                                                                                                                                |                     |          |        |                           |                                           |                       
|Edmund Barrett                                                                                                                                                                                                                                                  | 1999                | $161,000 | $3,096 | (1)(2)                    | 3,000                                     | $3,780                
|Executive Vice President                                                                                                                                                                                                                                        | 1998                | $156,127 | $3,096 | (1)(2)                    | - -                                       | $3,792                
|and Chief Operating Officer                                                                                                                                                                                                                                     | 1997                | $125,615 | $2,692 | (1)(2)                    | 13,000                                    | $3,782                
|                                                                                                                                                                                                                                                                |                     |          |        |                           |                                           |                       
|(1) Excludes certain personal benefits, the total value of which was less than 10% of the total annual salary paid or accrued by the Company for services rendered by him during the fiscal years ended December
31, 1999, 1998 and 1997.                       |                     |          |        |                           |                                           |                       
|(2)  The following table sets forth certain information concerning additional compensation in the form of restricted common shares issued under the Incentive Plan during the fiscal year ended December 31, 1999
to the Named Executives.  The shares issued v |                     |          |        |                           |                                           |                       





|                    |                         | Restricted Common Shares Issued in Last Fiscal Year            |                        |                       
|------------------- | ----------------------- | -------------------------------------------------------------- | ---------------------- | ----------------------
|                    |                         |                                                                |                        |                       
|Name                | Number of Shares Issued | Percent of Total Restricted Shares to Employees In Fiscal Year | Price at Date of Issue | Value at Date of Grant
|                    |                         |                                                                |                        |                       
|Norman M. Kranzdorf | 4,706                   | 27%                                                            | $13.44                 | $63,249               
|Robert H. Dennis    | 2,653                   | 15%                                                            | $13.44                 | $35,656               
|Edmund Barrett      | 2,396                   | 14%                                                            | $13.44                 | $32,202               



The following table sets forth certain information concerning options granted during the fiscal year ended December 31, 1999 to the Named Executives.  The Company did not grant any share appreciation rights during 1999.

Options/SAR Grants in Last Fiscal YearIndividual GrantsNumber of
Percent of TotalSecurities
Options/SARsUnderlying
Granted toOptions/SARs
Employees in
Exercise of
Expiration
Grant DateName
Granted (A)
Fiscal Year
Base Price
Date
Present Value (B)Norman M. Kranzdorf
3,000
50%
$12.75
03/03/09
$3,000Robert H. Dennis
- -
- -
- -
- -
- -Edmund Barrett
3,000
50%
$13.44
06/03/09
$3,090(A) Options granted to Mr. Kranzdorf and Mr. Barrett in the fiscal year ended December 31, 1999 vest and become exercisable on the date of grant.(B) Based upon the Black-Scholes option pricing model adapted for use in valuing executive stock options. The actual value, if any, that the Named Executive receives will depend on the excess of the stock price
at the time of exercise over the exercise or
Aggregated Options Exercised In Last Fiscal Year
End and Fiscal Year End Option Values

During the fiscal year ended December 31, 1999, none of the Named Executives exercised any options granted to them. The following table sets forth certain information with respect to the unexercised options held as of the end of such fiscal year by the
Named Executives.

Number of Securities

Value of UnexercisedUnderlying Unexercised Options

In-the-Money OptionsName
Held at December 31, 1999

at December 31, 1999(1)Exercisable /
Unexercisable
Exercisable /
UnexercisableNorman M. Kranzdorf
381,800
0
$0
$0Robert H. Dennis
73,000
0
$0
$0Edmund Barrett
37,000
0
$0
$0(1) The fair market value on December 31, 1999 of the Common Shares underlying the options was $8.81 per Common Share.Trustees' Compensation

Each non-employee trustee of the Company receives an annual fee of $18,000 and a fee of $1,500 for each quarterly meeting attended. In December 1995, the trustees agreed to receive these fees in the form of Common Shares beginning in 1996. The shares
are awarded quarterly on the first business day of the fiscal quarter and are valued based on the closing price of the Common Shares on the New York Stock Exchange on the last business day of the previous quarter. Each trustee is entitled to cash payments
of $500 for each separate committee meeting attended, $1,000 for each trip to visit properties which are the subject of possible acquisition by the Company, and is entitled, pursuant to the provisions of the Trustee Plan, to grants of options to purchase
Common Shares. Employees of the Company who are also trustees are not paid any trustees' fees. In addition, the Company reimburses the trustees for travel expenses incurred in connection with their activities on behalf of the Company. During the fiscal
year ended December 31, 1999, Mr. Kranzdorf and Mr. Barrett were each issued 3,000 options pursuant to the Trustee Plan.

Under the terms of the Incentive Plan each non-employee trustee of the Company  is granted options each year to purchase 1,500 Common Shares at a price equal to the then fair market value of Common Shares on the date of grant.  Additionally, each
non-employee trustee shall be granted options each year  to purchase an additional 1,500 Common Shares at a price equal to the then fair market value of Common Shares on the date of grant, provided that the Company's funds from operations per Common
Share, as defined, have increased at least 4% over the prior year's funds from operations per common share.  In accordance with the terms of the Incentive Plan, on  March 13, 2000 the Company awarded 3,000 options to purchase Common Shares to each of the
Company's non-employee trustees at an exercise price of $8.44 per Common Share.

Trustee Plan and Employee Plan

Prior to the Company's initial public offering in November 1992, the Option Plans were adopted by the Board and all of the then current shareholders.  The Option Plans are administered by the Option Plans Committee established for such purpose.  The
current members of such committee are Messrs. Kranzdorf and Barrett (the "Administrators").  The Option Plans provide for the grant of options to purchase Common Shares to eligible participants.  The persons entitled to participate in the Trustee Plan are
those trustees of the Company or trustees or directors of any of the Company's subsidiaries or affiliates as the Administrators of the Option Plans shall select from time to time.  Eligible participants of the Employee Plan consist of those key employees
(other than trustees or directors) of the Company, or any of its subsidiaries or affiliates, as the Administrators shall select from time to time.  Options are granted by the Administrators based upon such factors as the Administrators may deem proper and
relevant.  The Option Plans were designed to attract, retain and motivate key employees by granting them options to purchase Common Shares.  The Option Plans provide for the grant of a maximum of 700,000 Common Shares under the Trustee Plan and 300,000
Common Shares under the Employee Plan, and permit the granting of share options to employees which are either incentive options or non-qualified options.

Subject to the terms of Option Plans, the Administrators determine the recipients of options and the number of options to be granted under the Option Plans.  As of December 31, 1999 options to purchase 430,300 and 187,950 Common Shares were outstanding
under the Trustee Plan and Employee Plan, respectively, all of which were exercisable as of December 31, 1999. During the fiscal year ended December 31, 1999, 3,000 options were issued to each of Mr.  Kranzdorf and Mr. Barrett from the Trustee Plan.

1995 Incentive Plan

The Incentive Plan was approved by the shareholders of the Company at the Company's 1995 annual meeting of shareholders held in June 1995.  The Incentive Plan is administered by the Incentive Plan Committee which consists of Messrs. Finn and
Linneman.  In general, it is intended that members of the Incentive Plan Committee will not be employees of the Company.

The purpose of the Incentive Plan is to align the interests of the Company's trustees, executive officers, key employees, advisors and consultants with those of the shareholders and to enable the Company to attract, compensate and retain trustees,
executive officers, key employees, advisors and consultants and provide them with appropriate incentives and rewards for their performance.  Awards to trustees, executive officers, key employees and other individuals under the Incentive Plan may take the
form of options to purchase Common Shares, including corresponding share appreciation rights and reload options, and in the case of employees, restricted share awards and share purchase awards.

All employees, trustees, and certain other key individuals are currently eligible to participate in the Incentive Plan subject to certain restrictions that apply to members of the Incentive Plan Committee.  Awards under the Incentive Plan may be
granted in combination with other awards, including options granted under the Option Plans.  The maximum number of Common Shares that may be the subject of awards under the Incentive Plan is 1,000,000 Common Shares.  The Incentive Plan provides that in
any given year, the maximum number of Common Shares with respect to which options or share appreciation rights may be granted to any employee is 100,000 Common Shares.  As of December 31, 1999, options to purchase 310,500 Common Shares were outstanding
under the Incentive Plan. During the fiscal year ended December 31, 1999, 1,500 options were issued to each of Messrs. Korman, Linneman, Finn and Shapiro.

Executive Compensation Committee Interlocks and Insider Participation

On April 20, 1993, the Board established an Executive Compensation Committee, the function of which is to review and make recommendations to the Board and the Plan Administrators regarding compensation for the executive officers of the Company. The
Executive Compensation Committee consists of Messrs. Kranzdorf, Korman and Shapiro.  Other than Mr. Kranzdorf, who is the President and Chief Executive Officer of the Company, none of the members of the Executive Compensation Committee are employees of
the Company.

Prior to the Company's initial public offering in November 1992, the Option Plans were adopted by the Board and all of the then current shareholders of the Company.  In connection with the creation of the Option Plans, the Board established the Option
Plans Committee to administer the Option Plans.  The Option Plans Committee, which determines those key employees entitled to grants of options under the Option Plans, is composed of Messrs. Kranzdorf and Barrett, each of whom is an employee of the Company.

On June 6, 1995, the shareholders approved the Incentive Plan. The Board then established the Incentive Plan Committee to administer the plan.  The Incentive Plan Committee, the function of which is to determine the trustees, executive officers, key
employees and other individuals who will be eligible for awards under the plan, consists of Messrs. Linneman and Gerald C. Finn, neither of whom are employees of the Company.

To the Company's knowledge, there were no other interrelationships involving the trustees of the Company and compensation decisions requiring disclosure.



Item 12. Security Ownership of Certain Beneficial Owners and Management

The following table sets forth information  regarding the beneficial ownership of the Common Shares, including Common Shares as to which a right to acquire ownership exists (for example, through the exercise of stock options) within the meaning of
rule 13d-3(d)(1) under the Securities Exchange Act, as amended, by each person known by the Company to own beneficially more than 5% of the Common Shares, each trustee and Named Executive, and all trustees and executive officers as a group as of March 1,
2000 (unless otherwise indicated). As permitted by applicable Securities and Exchange Commission rules, no separate information with respect to the Common Shares beneficially owned by each of the other executive officers of the Company is given because no
such officer earned $100,000 or more in compensation  in the fiscal year ended December 31,1999.
Name and Address of Beneficial Owner(1)
Amount Beneficially Owned
Percent of Class(2)Norman M. Kranzdorf
630,033(3)
5.60%Edmund Barrett
48,253(4)
*Robert H. Dennis
97,193(5)
*Gerald Finn
10,029(6)
*Bernard J. Korman
14,386(7)
*Graduate Health System, Inc.22nd and Chestnut StreetsPhiladelphia, PA 19103Dr. Peter D. Linneman
21,563(8)
*University of PennsylvaniaWharton School of BusinessPhiladelphia, PA 19104E. Donald Shapiro
31,271(9)
*1 Princeton TerraceShort Hills, NJ 07078All trustees and executiveofficers as a group (8 persons)
852,728
7.70%(1) Unless otherwise indicated, the address for each individual is 128 Fayette Street, Conshohocken, PA 19428.(2) Calculated based on 10,566,746 Common Shares outstanding and assuming, with respect to each of the individuals listed above, the exercise of all currently exercisable options to purchase Common Shares held
by such individual.(3) Includes (a) 14,956 shares owned directly by Mr. Kranzdorf's wife, (b) 36,000 shares owned by her as trustee for the benefit of Michael Kranzdorf and Betty Kranzdorf, (c) options to purchase 381,800 shares
granted to him under the Trustee Plan and (d)(4) Includes (a) options to purchase 18,000 Common Shares granted to him under the Employee Plan, (b) options to purchase 19,000 Common Shares granted to him under the Trustee Plan  and (c) 3,642 Common Shares
owned directly by Mr. Barrett's spouse.(5) Includes (a) options to purchase 54,000 Common Shares granted to him under the Employee Plan, (b) options to purchase 19,000 Common Shares granted to him under the Trustee Plan, (c) 245 Common Shares owned
directly by Mr. Dennis's spouse and (d) optio(6) Includes options to purchase 3,000 Common Shares granted to him under the Incentive Plan.(7) Includes (a) options to purchase 6,000 Common Shares granted to him under the Incentive Plan and (b) 3,900 Common Shares owned solely by his spouse.(8) Includes (a) options to purchase 6,000 Common Shares granted to him under the Trustee Plan, (b) options to purchase 9,000 Common Shares granted to him under the Incentive Plan and (c) 400 Common Shares
owned solely by his spouse.(9) Includes (a) options to purchase 3,000 Common Shares granted to him under the Trustee Plan, (b)  options to purchase 9,000 Common Shares granted to him under the Incentive Plan and (c) 10,000 shares owned
directly by Mr. Shapiro's spouse.* Less than 0.1 percent.Item 13. Certain Relationships and Related Transactions

The Company leases from Norman Kranzdorf a three-story building containing approximately 20,000 square feet located at 128 Fayette Street, Conshohocken, Pennsylvania, which serves as the Company's headquarters. The lease for the Company's
headquarters expires on January 14, 2004 and provides that the Company will pay a rental of $153,720 per annum. The lease also provides that the Company will pay for all real estate taxes, utilities, repairs and other costs and expenses in connection with
the use and occupancy of the building.
In September 1998, the Company announced that it had commenced a tender offer for 80% of the outstanding shares of New America Network, Inc. ("NAN") and Gerald C. Finn and Jeffrey Finn, its principal shareholders. Gerald C. Finn (a Class II
Trustee) is Chairman and Chief Executive Officer and the owner of approximately 75% of NAN's outstanding shares of common stock. The proposed transaction involved an exchange offer by the Company for 80% of NAN's outstanding common shares for convertible
subordinated notes.  The Company would have then spun-off the shares of NAN's common stock to its shareholders on a one-for-one basis and retained a 9.8% interest. If Gerald Finn had converted his note in its entirety, he would have owned approximately
300,000 shares, or 2.8%, of the Company's outstanding Common Shares. The transaction was terminated in December 1998. In December 1998, the Company purchased 842,851 newly issued shares of New America Network, Inc., representing a 6.1% interest in NAN for
$1 million. As of June 1999 the Company acquired an additional 200,000 newly issued shares of New America Network, Inc. in exchange for a note receivable in the face amount of $250,000. As of December 31, 1999, the Company owns approximately 7.2% of the
outstanding common shares of New America Network, Inc.

On March 19, 1997 the Company entered into Severance Benefits Agreements with Norman M. Kranzdorf, Robert H. Dennis, Edmund Barrett, Bengt Danielsson, Michael Warrington and Michael Kranzdorf pursuant to which such individuals are entitled to certain
compensation upon a change in control of the Company. Each agreement provides that upon a change in control and so long as such individual is an employee of the Company immediately prior to such a change in control, (a) the individual shall receive a lump
sum severance payment equal to a multiple of the individual's annual compensation during the calendar year preceding the calendar year during which the change in control has occurred; the multiple is three, two and one, with respect to (i) Norman M.
Kranzdorf, (ii) Robert H. Dennis and Edmund Barrett, and (iii) Bengt Danielsson, Michael Warrington and Michael Kranzdorf, respectively, (b) all restricted Common Shares then owned by the individual shall immediately vest and no longer be subject to
repurchase or other forfeiture restrictions, (c) the Company will continue to provide life, accident, medical and dental insurance to the individual for a period of 18 months after the change in control, and (d) in the event the individual holds any
options to purchase Common Shares on the date of the change in control, such individual shall be entitled to receive an amount equal to, generally, the number of options to purchase Common Shares then owned by the individual multiplied by the amount, if
any, that (i) the exercise price of the options or the closing price of the Common Shares on the date of the change in control, whichever is less, exceeds (ii) the average closing price of the Common Shares during the six months prior to the date of the
change in control ("Closing Share Value"). If the closing price of the Common Shares as of the date of the change in control is greater than the exercise price of such option then the individual can retain the option or receive in exchange therefore cash
equal to the number of shares underlying the options multiplied by the amount by which the Closing Share Value exceeds the exercise prices of the options. In addition, Norman M. Kranzdorf is entitled to receive an additional sum to cover certain resulting
income and excise tax liabilities that may be incurred on all of the foregoing.  Furthermore, the Severance Benefits Agreement of each individual other than Norman M. Kranzdorf provides that, to the extent that any of the foregoing benefits granted to
such individual would cause him to be liable for excise tax liabilities, the benefits available to him shall be reduced to an amount which would not require the payment of any such excise tax, but only if doing so yields a greater after tax amount to such
individual.

In addition, the Company entered into Severance Benefits Agreements with Peter Linneman and E. Donald Shapiro on March 19, 1997, and Bernard Korman and Gerald Finn on July 30, 1998, trustees of the Company, pursuant to which, if such individual is a
trustee immediately prior to a change in control, upon such a change in control and, in the event the trustee holds any options to purchase Common Shares on the date of the change in control, such individual shall be entitled to receive an amount based on
the formula described in clause (d) of the preceding paragraph.  In addition, the Severance Benefits Agreement of each trustee provides that, to the extent that the foregoing benefits granted to such trustee would cause him to be liable for excise tax
liabilities, the benefits available to him shall be reduced to an amount which would not require the payment of any such excise tax, but only if doing so yields a greater after tax amount to such trustee.

PART IV

Item 14.Exhibits, Financial Statements, Schedules and Reports on Form 8-K

(a)(1) Financial Statements
Kranzco Realty Trust
Report of Independent Public Accountants
Consolidated Balance Sheets as of December 31, 1999 and 1998

Consolidated Statements Of Operations for the years ended December 31, 1999, 1998 and 1997
Consolidated Statements Of Beneficiaries' Equity for the years ended December 31, 1999, 1998 and 1997
Consolidated Statements Of Cash Flows for the years ended December 31, 1999, 1998 and 1997
Notes To Consolidated Financial Statements

(2) Financial Statement Schedule
Kranzco Realty Trust
Schedule III - Real Estate and Accumulated Depreciation - December 31, 1999
Notes to Schedule III


(3) Exhibits

2.1 Agreement and Plan of Reorganization and Merger among Kranzco Realty Trust, KRT Trust, CV Reit, Inc. and Kramont Realty Trust, dated as of December 10,       1999.  (Incorporated by reference to Exhibit 2.1 to the Company's Current       Report on
Form 8-K filed December 14, 1999.)
3.1 Amended and Restated Declaration of Kranzco Realty Trust.  (Incorporated by reference to Exhibit 3.4 of the Company's Registration Statement No.33-49434.)
3.2 Amendment of Amended and Restated Declaration of Trust, dated December 31, 1995. (Incorporated by reference to Exhibit 3.3 to the Company's Annual Report       on Form 10-K for the fiscal year ended December 31, 1996.)
3.3 Amendment No. 2 of Amended and Restated Declaration of Trust, dated June 4, 1997. (Incorporated by reference to Exhibit 4.1(c) of the Company's Registration Statement on Form S-3 filed July 31, 1997.)
3.4 Amended and Restated Bylaws of Kranzco Realty Trust, as amended.
4.1 Specimen certificate for Common Shares of Beneficial Interest.   (Incorporated by reference to Exhibit 4.1 of the Company's Registration Statement No.33-49434.)
4.2 Articles Supplementary for the Series A Increasing Rate Cumulative Convertible Preferred Shares of Beneficial Interest.  (Incorporated by reference to the Company's Report on Form 8-K dated May 4, 1995.)
4.3 Articles Supplementary Classifying 11,155 Shares of Beneficial Interest as Series A-1 Increasing Rate Cumulative Convertible Preferred Shares of Beneficial Interest.  (Incorporated by reference to Exhibit 4.5 of the Company's Registration Statement
on Form S-4 No. 333-18249.)
4.4 Articles Supplementary for the Company's Series B-1 Cumulative Convertible Preferred Shares of Beneficial Interest.  (Incorporated by reference to Exhibit 3.4 of the Company's Registration Statement on Form 8-A dated February 27, 1997.)
4.5 Articles Supplementary for the Company's Series B-2 Cumulative Convertible Preferred Shares of Beneficial Interest.  (Incorporated by reference to Exhibit 4.2 of the Company's Registration Statement on Form S-4 No. 333-18249.)
4.6 Articles Supplementary for the Company's Series C Cumulative Redeemable Preferred Shares of Beneficial Interest.  (Incorporated by reference to Exhibit 4.3 of the Company's Registration Statement on Form S-4 No. 333-18249.)
4.7 Articles Supplementary for the Company's Series D Redeemable Preferred Shares of Beneficial Interest.  (Incorporated by reference to Exhibit 3.5 of the Company's Registration Statement on Form 8-A filed December 10, 1997.)
4.8 Specimen of the Company Series D Redeemable Preferred Shares of Beneficial Interest.  (Incorporated by reference to Exhibit 4.1 of the Company's Registration Statement on Form 8-A filed December 10, 1997.)
4.9 Specimen of the Company's Rights Certificate.  (Incorporated by reference to Exhibit B of Exhibit 10.1 of the Company's Current Report on Form 8-K filed November 12, 1998.)
4.10 Articles Supplementary for the Company's Series E Junior Participating Preferred Shares of Beneficial Interest. (Incorporated by reference to Exhibit A of Exhibit 10.1 of the Company's Current Report on Form 8-K filed November 12, 1998.)
10.1 Kranzco Realty Trust 1992 Employees Share Option Plan, as amended.   (Incorporated by reference to Exhibit 10.10 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1992.)
10.2 Kranzco Realty Trust 1992 Employees Share Option Plan, amended.  (Incorporated by reference to Exhibit 10.11 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1992.)
10.3 Kranzco Realty Trust 1995 Incentive Plan.  (Incorporated by reference to Exhibit 4.4 of the Company's Registration Statement on Form S-8 No. 33-94294.)
10.4 Loan Agreement dated as of February 26, 1997 by and among the Company, the borrowers named therein, Salomon Brothers Realty Corp. and LaSalle National Bank as Collateral Agent.  (Incorporated by reference to Exhibit 10.1 of the Company's Current
Report on Form 8-K filed March 14, 1997.)
10.5 Amended and Restated Global Promissory Note dated September 29, 1998 in the amount of $100,000,000 executed in favor of Salomon Brothers Realty Corp.  (Incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K filed
October 13, 1998.)
10.6 Unlimited Guaranty of Payment dated as of February 26, 1997 issued by Kranzco Realty Trust in favor of Salomon Brothers Realty Corp.  (Incorporated by reference to Exhibit 10.3 of the Company's Current Report on Form 8-K filed March 14, 1997.)

10.7 Amendment to Loan Agreement and Guaranty, dated as of September 29, 1998, by and among the Company, the borrowers named therein, Salomon Brothers Realty Corp. and LaSalle National Bank as Collateral Agent.  (Incorporated by reference to Exhibit
10.1 of the Company's Current Report on Form 8-K filed October 13, 1998.)
10.8 Form of Exemplar Open End Fee and Leasehold Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing made by the Borrowers for the benefit of Salomon Brothers Realty Corp., and filed in Pennsylvania, New York, Connecticut,
Rhode Island, Mississippi, North Carolina, Kentucky, Massachusetts, Minnesota, Arizona, Georgia, and Michigan with respect to Bradford Mall, Bradford, PA; Barn Plaza, Doylestown, Pennsylvania; Circuit City at Mall at Cross County, Yonkers, New York;
Parkway Plaza I, Hamden, Connecticut;  Valley Forge Mall, Phoenixville, Pennsylvania; Wampanoag Plaza, East Providence, Rhode Island; Brookway Village, Brookhaven, Mississippi; Magnolia Plaza, Morganton, North Carolina; Harrodsburg Marketplace,
Harrodsburg, Kentucky; Franklin Center, Chambersburg, Pennsylvania; Ames Center, Raynham, Massachusetts; Baker's Square, Minnetonka, Minnesota; Baker's Square, Roseville, Minnesota; Sinclair Paints, Tucson, Arizona; 30000 Plymouth Road, Livonia, Michigan;
Tower Plaza, Georgia; 1615 E. Shotwell Street, Bainbridge Town Center, Georgia; and Filene's Basement at Valley Fair, 260 West Swedesford Road, Devon, Pennsylvania. (Incorporated by reference to Exhibit 10.4 of the Company's Current Report on Form 8-K
filed March 14, 1997.)
10.9 Trust and Servicing Agreement, dated as of June 18, 1996, among KRT Origination Corp., GE Capital Management Corporation and State Street Bank and Trust Company. (Incorporated by reference to Exhibit 10.43 of the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 1996.)
10.10 Cash Collateral Account, Security, Pledge and Assignment Agreement, dated as of June 18, 1996, among the Borrowers, State Street Bank and Trust Company, as Agent, and KRT Origination Corp., as Lender. (Incorporated by reference to Exhibit 10.44
to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996.)
10.11 Cash Collateral Agreement, dated June 18, 1996, among the Borrowers, and State Street Bank and Trust Company, as Agent. (Incorporated by reference to Exhibit 10.45 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31,
1996)
10.12 $123,700,000.00 Class A Mortgage Note dated June 18, 1996 made by the Borrowers in favor of KRT Origination Corp., as Lender. (Incorporated by reference to Exhibit 10.46 to the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 1996.)
10.13 $20,600,000.00 Class B Mortgage Note dated June 18, 1996 made by the Borrowers in favor of KRT Origination Corp., as Lender. (Incorporated by reference to Exhibit 10.47 to the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 1996.)
10.14 $28,900,000.00 Class C Mortgage Note dated June 18, 1996 made by the Borrowers in favor of KRT Origination Corp., as Lender. (Incorporated by reference to Exhibit 10.48 to the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 1996.)
10.15 $8,500,000.00 Class D Mortgage Note dated June 18, 1996 made by the Borrowers in favor of KRT Origination Corp., as Lender. (Incorporated by reference to Exhibit 10.49 to the Company's Annual Report on Form 10-K for the fiscal year ended December
31, 1996.)
10.16 Form of Indenture of Mortgage, Deed of Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security Deposits made by the Borrowers, as grantor, for the benefit of KRT Origination Corp., as mortgagee,
and filed in Connecticut, Maryland, New Jersey, New York and Pennsylvania with respect to Groton Square in Groton, Connecticut, Manchester Kmart in Manchester, Connecticut, Milford in Milford, Connecticut, Orange in Orange, Connecticut, Fox Run in Prince
Frederick, Maryland, Hillcrest Plaza in Frederick, Maryland, Anneslie in Baltimore, Maryland, Suburban Plaza in Hamilton, New Jersey, Collegetown in Glassboro, New Jersey, Hillcrest Mall in Phillipsburg, New Jersey, The Mall at Cross County in Yonkers,
New York, Highridge Plaza in Yonkers, New York, North Ridge in New Rochelle, New York, Village Square in Larchmont, New York, A&P Mamaroneck in Mamaroneck, New York, Port Washington in Port Washington, New York, Bethlehem in Bethlehem, Pennsylvania,
Whitehall Square in Whitehall, Pennsylvania, Bristol Commerce Park in Bristol, Pennsylvania, Park Hills Plaza in Altoona, Pennsylvania, Barn Plaza in Doylestown, Pennsylvania, Best Plaza in Tredyffrin, Pennsylvania, Bensalem Square in Bensalem,
Pennsylvania, Street Road in Bensalem, Pennsylvania, Pilgrim Gardens in Drexel Hill, Pennsylvania, 69 th Street Plaza in Upper Darby, Pennsylvania and MacArthur Road in Whitehall, Pennsylvania (the "Properties"). (Incorporated by reference to Exhibit
10.50 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996.)
10.17 Form of Unrecorded Indenture of Mortgage, Deed of Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security Deposits made by the Borrowers, as grantor, for the benefit of KRT Origination Corp.,
and held in escrow with respect to the Properties located in Maryland and in New York. (Incorporated by reference to Exhibit 10.51 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996.)
10.18 Escrow Agreement made among KRT Origination Corp., the Borrowers and Robinson Silverman Pearce Aronsohn & Berman LLP, as escrow agent, with respect to the unrecorded second mortgages covering the Properties located in New York and Maryland.
(Incorporated by reference to Exhibit 10.52 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996.)
10.19 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and Norman M. Kranzdorf.  (Incorporated by reference to Exhibit 10.1 of the Company's Form 10-Q for the quarter ended June 30, 1997.)
10.20 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and Robert H. Dennis.  (Incorporated by reference to Exhibit 10.2 of the Company's Form 10-Q for the quarter ended June 30, 1997.)
10.21 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and Edmund Barrett.  (Incorporated by reference to Exhibit 10.3 of the Company's Form 10-Q for the quarter ended June 30, 1997.)
10.22 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and Bengt Danielsson.  (Incorporated by reference to Exhibit 10.4 of the Company's Form 10-Q for the quarter ended June 30, 1997.)
10.23 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and Michael Warrington.  (Incorporated by reference to Exhibit 10.5 of the Company's Form 10-Q for the quarter ended June 30, 1997.)
10.24 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and Michael Kranzdorf.  (Incorporated by reference to Exhibit 10.6 of the Company's Form 10-Q for the quarter ended June 30, 1997.)
10.25 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and Peter J. Linneman.  (Incorporated by reference to Exhibit 10.7 of the Company's Form 10-Q for the quarter ended June 30, 1997.)
10.26 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and E. Donald Shapiro.  (Incorporated by reference to Exhibit 10.9 of the Company's Form 10-Q for the quarter ended June 30, 1997.)
10.27 Severance Benefits Agreement dated as of July 30, 1998 by and between Kranzco Realty Trust and Gerald C. Finn.
10.28 Severance Benefits Agreement dated as of July 30, 1998 by and between Kranzco Realty Trust and Bernard J. Korman.
10.29 Agreement dated October 30, 1997 between Kranzco Realty Trust and GP Development Corporation. (Incorporated by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K dated November 25, 1997.)
10.30 Agreement and Plan of Merger dated October 30, 1997 between Kranzco Realty Trust, GP Development Corporation, the shareholders of GP Development Corporation and KR Atlanta, Inc. (Incorporated by reference to Exhibit 2.2 of the Company's Current
Report on Form 8-K dated November 25, 1997.)
10.31 Mortgage Note for $6,700,000.00, dated as of October 5, 1990, from Holcomb Bridge Partners, L.P., a Georgia limited partnership ("Holcomb"), in favor of Allstate Life Insurance Company ("Allstate") (relating to Holcomb Bridge Crossing).
(Incorporated by reference to Exhibit 2.3 of the Company's Current Report on Form 8-K dated November 25, 1997.)
10.32 Modification of Mortgage Note, dated as of October 31, 1995, between Holcomb and Harris Trust and Savings Bank ("Harris Trust") (relating to Holcomb Bridge Crossing). (Incorporated by reference to Exhibit 2.4 of the Company's Current Report on
Form 8-K dated November 25, 1997.)
10.33 Deed to Secure Debt, Assignment of Leases, Rents and Contracts, Security Agreement and Fixture Filing ("Deed to Secure Debt") from Holcomb to Allstate, dated as of October 5, 1990 (relating to Holcomb Bridge Crossing).  (Incorporated by reference
to Exhibit 2.5 of the Company's Current Report on Form 8-K dated November 25, 1997.)
10.34 Modification of Deed to Secure Debt between Holcomb and Harris Trust, dated as of October 31, 1995 (relating to Holcomb Bridge Crossing).  (Incorporated by reference to Exhibit 2.6 of the Company's Current Report on Form 8-K dated November 25,
1997.)
10.35 Real Estate Note for $3,725,000.00, dated as of August 6, 1987, from West Stewarts Mill Associates, Ltd., a Georgia limited partnership ("West Stewarts"), in favor of Confederation Life Insurance Company, a mutual insurance company incorporated
in Canada ("Confederation"), first amendment thereto dated as of November 27, 1987, second amendment thereto dated as of November 1, 1993, third amendment thereto dated as of November 1, 1993 and fourth amendment thereto dated as of February 21, 1995
(relating to Park Plaza).  (Incorporated by reference to Exhibit 2.7 of the Company's Current Report on Form 8-K dated November 25, 1997.)
10.36 Deed to Secure Debt and Security Agreement between West Stewarts and Confederation,dated as of August 6, 1987, first amendment thereto dated as of November 27, 1987 and second amendment thereto dated as of November 1, 1993 (relating to Park
Plaza).  (Incorporated by reference to Exhibit 2.8 of the Company's Current Report on Form 8-K dated November 25, 1997.)
10.37 Escrow Agreement, dated as of November 1, 1993, between Confederation and West Stewarts. (Incorporated by reference to Exhibit 2.9 of the Company's Current Report on Form 8-K dated November 25, 1997.)
10.38 Promissory Note for $10,670,000.00, dated as of July 31, 1996, from Mableton Village Associates, L.L.C., a Georgia limited liability company ("Mableton Village"), in favor of Lehman Brothers Holdings, Inc. d/b/a Lehman Capital ("Lehman")
(relating to The Village at Mableton). (Incorporated by reference to Exhibit 2.10 of the Company's Current Report on Form 8-K dated November 25, 1997.)
10.39 Deed to Secure Debt and Security Agreement, dated as of July 31, 1996, between Mableton Village and Lehman (relating to The Village at Mableton). (Incorporated by reference to Exhibit 2.11 of the Company's Current Report on Form 8-K dated
November 25, 1997.)
10.40 Sales Contract dated June 26, 1998 by and among Kranzco Realty Trust, a Maryland real estate investment trust, and Europco Property Investors II, Ltd., a Georgia limited partnership; Europco Property Investors III, Ltd., a Georgia limited
partnership; Europco Property Investors IV, Ltd., a Georgia limited partnership; Secured Properties Investors V, L.P., a Georgia limited partnership; Secured Properties Investors VIII, L.P., a Georgia limited partnership; Secured Properties Investors IX,
L.P., a Georgia limited partnership; and Tifton Partners, L.P., a Georgia limited partnership.  (Incorporated by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K dated June 26, 1998, filed July 16, 1998.)
10.41 Fixed Rate Note, dated September 29, 1998, made by the Borrowers named therein in favor of Salomon Brothers Realty Corp. (Incorporated by reference to Exhibit 10.38 of the Company's Quarterly Report on Form 10-Q for the quarter ended September
30, 1998.)
10.42 Guaranty, dated as of September 29, 1998, made by and among Kranzco Realty Trust, for the benefit of Salomon Brothers Realty Corp. (Incorporated by reference to Exhibit 10.39 of the Company's Quarterly Report on Form 10-Q for the quarter ended
September 30, 1998.)
10.43 Form of Mortgage/Deed of Trust/Deed to secure Debt and Security Agreement, dated September 29, 1998, made by the Borrowers named therein for the benefit of Salomon Brothers Realty Corp. and filed in Florida, Georgia, Ohio, Tennessee, and Virginia
with respect to Village Oaks, Pensacola, Florida; Vidalia Wal-Mart Center, Vidalia, Georgia; Summerville Wal-Mart Center, Summerville, Georgia; Tifton Corners, Tifton, Georgia; Douglasville Crossing, Douglasville, Georgia; Snellville Oaks, Snellville,
Georgia; Pickaway Crossing, Circleville, Ohio; Meeting Square, Jefferson City, Tennessee; and Statler Crossing, Staunton, Virginia.  (Incorporated by reference to Exhibit 10.40 of the Company's Quarterly Report on Form 10-Q for the quarter ended September
30, 1998.)
10.44 Rights Agreement dated as of November 10, 1998 between Kranzco Realty Trust and First Union National Bank, as Rights Agent.  The Rights Agreement includes as Exhibit A the form of Articles Supplementary for the Preferred Shares, as Exhibit B the
form of Right Certificate and as Exhibit C the form of Summary of Rights to Purchase Preferred Shares. (Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed November 12, 1998).
21 Subsidiaries of Kranzco Realty Trust.
23 Consent of Arthur Andersen LLP.
27 Financial Data schedule.(4) Reports on Form 8-K

A Report on Form 8-K dated December 14, 1999 was filed by the Company with the Securities and Exchange Commission on December 14, 1999.  The Company reported they had entered into an Agreement and Plan of Reorganization and Merger with KRT Trust, CV
Reit, Inc. and Kramont Realty Trust pursuant to which KRT Trust (the contemplated successor to the business of Kranzco) and CV Reit, Inc. will merge into Kramont Realty Trust, which will operate under the name of Kramont Realty Trust.






SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

KRANZCO REALTY TRUST
(Registrant)

By: /s/ Norman M. Kranzdorf
Norman M. Kranzdorf
Chief Executive Officer

Dated:   March 17, 2000


Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Signature
Title
Date/s/ Norman M. Kranzdorf
President, Chief Executive
March 17, 2000Norman M. Kranzdorf
Officer and Trustee (Principal Executive Officer)/s/ Robert H. Dennis
Chief Financial Officer,
March 17, 2000Robert H. Dennis
Treasurer and Trustee (Principal Financial and Accounting Officer)/s/ Edmund Barrett
Chief Operating Officer, Executive
March 17, 2000Edmund Barrett
Vice President and Trustee/s/ Dr. Peter D. Linneman
Trustee
March 17, 2000Dr. Peter D. Linneman/s/ E. Donald Shapiro
Trustee
March 17, 2000E. Donald Shapiro/s/ Gerald C. Finn
Trustee
March 17, 2000Gerald C. Finn/s/ Bernard J. Korman
Trustee
March 17, 2000Bernard J. KormanINDEX TO FINANCIAL STATEMENTS



FINANCIAL STATEMENTS, PAGE

Kranzco Realty Trust

*Report of Independent Public Accountants  , F-1

*Consolidated Balance Sheets as of December 31,  1999 and 1998  , F-2

*Consolidated Statements of Operations for the years ended

December 31,  1999,  1998 and 1997  , F-3

*Consolidated Statements of Beneficiaries' Equity for the years ended

December 31,  1999,  1998 and 1997  , F-4

*Consolidated Statements of Cash Flows for the years ended

December 31,  1999,  1998 and 1997  , F-5

*Notes to Consolidated Financial Statements  , F-6

FINANCIAL STATEMENT SCHEDULES

Kranzco Realty Trust

*Schedule III - Real Estate and Accumulated Depreciation - December 31,  1999  , S-1

*Notes to Schedule III  , S-5

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ARTHUR ANDERSEN LLP







REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS



To the Shareholders and Trustees of Kranzco Realty Trust:

We have audited the accompanying consolidated balance sheets of Kranzco Realty Trust (a Maryland trust) and subsidiaries as of December 31, 1999 and 1998, and the related consolidated statements of operations, beneficiaries' equity and cash flows for
the three years then ended.  These financial statements and the schedule referred to below are the responsibility of the Company's management.  Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

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

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Kranzco Realty Trust and subsidiaries as of December 31, 1999 and 1998, and the results of their operations and their cash
flows for the three years then ended in conformity with accounting principles generally accepted in the United States.

Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole.  The schedule listed in the index of financial statement schedules in Item 14 is presented for purposes of complying with the Securities and
Exchange Commission's rules and are not a required part of the basic financial statements.  This schedule has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, fairly states in all
material respects the financial data required to be set forth therein to the basic financial statements taken as a whole.



Arthur Andersen LLP

Philadelphia, Pennsylvania

March 3, 2000











F-1

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|Kranzco Realty Trust and Subsidiaries                                                   |                   |                  
|--------------------------------------------------------------------------------------- | ----------------- | -----------------
|Consolidated Balance Sheets                                                             |                   |                  
|                                                                                        | December 31, 1999 | December 31, 1998
|                                                                                        |                   |                  
|ASSETS:                                                                                 |                   |                  
|                                                                                        |                   |                  
|Shopping center properties owned, at cost                                               |                   |                  
|Buildings and improvements                                                              | 440,830,000       | 437,242,000      
|Land                                                                                    | 143,431,000       | 147,641,000      
|                                                                                        | 584,261,000       | 584,883,000      
|                                                                                        |                   |                  
|Less-accumulated depreciation                                                           | 73,940,000        | 59,793,000       
|Total shopping center properties owned, at cost                                         | 510,321,000       | 525,090,000      
|                                                                                        |                   |                  
|                                                                                        |                   |                  
|Cash and cash equivalents                                                               | 5,020,000         | 2,913,000        
|Restricted cash                                                                         | 1,853,000         | 1,465,000        
|Rents and other receivables, net of allowance of                                        |                   |                  
|$2,204,000 and $2,160,000, December 31, 1999 and December 31,1998                       | 7,584,000         | 7,573,000        
|Prepaid expenses                                                                        | 2,984,000         | 2,237,000        
|Deferred financing costs, net of accumulated amortization of $1,812,000                 |                   |                  
|and $1,237,000, December 31, 1999 and December 31,1998                                  | 1,645,000         | 2,066,000        
|Deferred costs, net of accumulated amortization of $1,613,000                           |                   |                  
|and $1,040,000, December 31, 1999 and December 31,1998                                  | 3,108,000         | 2,753,000        
|Other assets                                                                            | 3,110,000         | 2,419,000        
|                                                                                        |                   |                  
|Total assets                                                                            | 535,625,000       | 546,516,000      
|                                                                                        |                   |                  
|LIABILITIES:                                                                            |                   |                  
|                                                                                        |                   |                  
|Mortgages and notes payable                                                             | 353,208,000       | 350,141,000      
|Tenant security deposits                                                                | 1,550,000         | 1,453,000        
|Accounts payable and accrued expenses                                                   | 3,526,000         | 3,234,000        
|Other liabilities                                                                       | 585,000           | 559,000          
|Distributions payable                                                                   | 5,052,000         | 6,650,000        
|                                                                                        |                   |                  
|Total liabilities                                                                       | 363,921,000       | 362,037,000      
|                                                                                        |                   |                  
|COMMITMENTS AND CONTINGENCIES (Notes 3, 7 and 12)                                       |                   |                  
|                                                                                        |                   |                  
|REDEEMABLE PREFERRED SHARES, SERIES C, $0.01 PAR VALUE; 0 AND 44,550 SHARES,            |                   |                  
|DECEMBER 31, 1999 AND DECEMBER 31, 1998, RESPECTIVELY                                   | 0                 | 445,000          
|                                                                                        |                   |                  
|BENEFICIARIES' EQUITY:                                                                  |                   |                  
|                                                                                        |                   |                  
|Preferred shares of beneficial interest, Series A-1, $0.01 par value; 11,155 shares,    |                   |                  
|December 31, 1999 and December 31, 1998                                                 | 1,000             | 1,000            
|Preferred shares of beneficial interest, Series B-1 and B-2, $0.01 par value; 1,183,277 |                   |                  
|shares, December 31, 1999 and December 31, 1998                                         | 12,000            | 12,000           
|Preferred shares of beneficial interest, Series D, $0.01 par value; 1,800,000 shares,   |                   |                  
|December 31, 1999 and December 31, 1998                                                 | 18,000            | 18,000           
|Common shares of beneficial interest, $0.01 par value; authorized  100,000,000          |                   |                  
|shares; issued and outstanding, 10,562,832 and 10,537,103 as of December 31, 1999       |                   |                  
|and December 31, 1998, respectively                                                     | 106,000           | 105,000          
|Capital in excess of par value                                                          | 263,752,000       | 263,370,000      
|Cumulative net income available for common shareholders                                 | 41,977,000        | 37,685,000       
|Cumulative distributions on common shares of beneficial interest                        | (133,897,000)     | (116,914,000)    
|                                                                                        | 171,969,000       | 184,277,000      
|Unearned compensation on restricted shares of beneficial interest                       | (265,000)         | (243,000)        
|                                                                                        |                   |                  
|Total beneficiaries' equity                                                             | 171,704,000       | 184,034,000      
|                                                                                        |                   |                  
|Total liabilities and beneficiaries' equity                                             | 535,625,000       | 546,516,000      
|                                                                                        |                   |                  
|The accompanying notes are an integral part of these financial statements.              |                   |                  



F-2

---

|Kranzco Realty Trust and Subsidiaries                                      |             |                                 |            
|-------------------------------------------------------------------------- | ----------- | ------------------------------- | -----------
|Consolidated Statements of Operations                                      |             |                                 |            
|                                                                           |             |                                 |            
|                                                                           |             | For the year ended December 31, |            
|                                                                           |             |                                 |            
|                                                                           | 1999        | 1998                            | 1997       
|                                                                           |             |                                 |            
|REVENUES:                                                                  |             |                                 |            
|Minimum rent                                                               | $62,087,000 | $56,823,000                     | $47,579,000
|Percentage rent                                                            | 1,335,000   | 1,233,000                       | 1,163,000  
|Expense reimbursements                                                     | 13,820,000  | 12,800,000                      | 11,165,000 
|Interest income                                                            | 340,000     | 335,000                         | 278,000    
|Other                                                                      | 520,000     | 151,000                         | 127,000    
|                                                                           |             |                                 |            
|Total revenue                                                              | 78,102,000  | 71,342,000                      | 60,312,000 
|                                                                           |             |                                 |            
|EXPENSES:                                                                  |             |                                 |            
|Interest                                                                   | 27,236,000  | 21,764,000                      | 18,887,000 
|Depreciation and amortization                                              | 16,863,000  | 14,582,000                      | 12,534,000 
|Real estate taxes                                                          | 8,056,000   | 7,404,000                       | 6,584,000  
|Operations and maintenance                                                 | 10,447,000  | 12,362,000                      | 8,346,000  
|General and administrative                                                 | 3,840,000   | 3,476,000                       | 2,877,000  
|                                                                           |             |                                 |            
|Total expenses                                                             | 66,442,000  | 59,588,000                      | 49,228,000 
|                                                                           |             |                                 |            
|INCOME BEFORE GAIN ON SALE OF REAL ESTATE                                  |             |                                 |            
|AND EXTRAORDINARY ITEM                                                     | 11,660,000  | 11,754,000                      | 11,084,000 
|                                                                           |             |                                 |            
|Gain on sale of real estate                                                | 535,000     | 109,000                         | 0          
|                                                                           |             |                                 |            
|INCOME BEFORE EXTRAORDINARY ITEM                                           | 12,195,000  | 11,863,000                      | 11,084,000 
|                                                                           |             |                                 |            
|Extraordinary loss on early extinguishment of                              |             |                                 |            
|debt/debt refinancing                                                      | 0           | 0                               | 467,000    
|                                                                           |             |                                 |            
|NET INCOME                                                                 | 12,195,000  | 11,863,000                      | 10,617,000 
|                                                                           |             |                                 |            
|Preferred Share Distributions                                              | 7,903,000   | 7,984,000                       | 3,565,000  
|                                                                           |             |                                 |            
|NET INCOME FOR COMMON SHAREHOLDERS                                         | $4,292,000  | $3,879,000                      | $7,052,000 
|                                                                           |             |                                 |            
|Income before gain on sale of real estate and                              |             |                                 |            
|before extraordinary item per Common Share of                              |             |                                 |            
|Beneficial Interest                                                        | $0.36       | $0.36                           | $0.73      
|                                                                           |             |                                 |            
|Gain on sale of real estate per Common Share of                            |             |                                 |            
|Beneficial Interest                                                        | $0.05       | $0.01                           | $0.00      
|                                                                           |             |                                 |            
|Extraordinary loss on early extinguishment of debt/                        |             |                                 |            
|debt refinancing per Common Share of Beneficial                            |             |                                 |            
|Interest                                                                   | $0.00       | $0.00                           | ($0.05)    
|                                                                           |             |                                 |            
|Basic and Diluted Earnings per Common Share                                |             |                                 |            
|of Beneficial Interest                                                     | $0.41       | $0.37                           | $0.68      
|                                                                           |             |                                 |            
|                                                                           |             |                                 |            
|The accompanying notes are an integral part of these financial statements. |             |                                 |            



F-3

---





|Kranzco Realty Trust and Subsidiaries                |            |         |            |            |              |               |               |              
|---------------------------------------------------- | ---------- | ------- | ---------- | ---------- | ------------ | ------------- | ------------- | -------------
|Consolidated Statements of Beneficiaries' Equity     |            |         |            |            |              |               |               |              
|For the years ended December 31, 1999, 1998 and 1997 |            |         |            |            |              |               |               |              
|                                                     |            |         |            |            |              |               |               |              
|                                                     |            |         |            |            |              |               | Cumulative    | Unearned     
|                                                     |            |         |            | Preferred  |              | Cumulative    | Distributions | Compensation 
|                                                     | Common     |         | Preferred  | Shares of  |              | Net Income    | on Common     | on Restricted
|                                                     | Shares of  |         | Shares of  | Beneficial | Capital      | Available for | Shares of     | Shares of    
|                                                     | Beneficial | Par     | Beneficial | Interest   | In Excess    | Common        | Beneficial    | Beneficial   
|                                                     | Interest   | Value   | Interest   | Par Value  | of Par Value | Shareholders  | Interest      | Interest     
|                                                     |            |         |            |            |              |               |               |              
|BALANCE, JANUARY 1, 1997                             | 10,332,784 | 103,000 | 11,155     | 1,000      | 187,177,000  | 26,754,000    | (76,891,000)  | (131,000)    
|                                                     |            |         |            |            |              |               |               |              
|Issuance of common shares                            | 82,697     | 1,000   | -          | -          | 1,545,000    | -             | -             | (125,000)    
|Forfeiture of common shares                          | (54)       | -       | -          | -          | (1,000)      | -             | -             | -            
|Issuance of preferred shares-Series B-1, B-2         | -          | -       | 1,183,331  | 12,000     | 29,354,000   | -             | -             | -            
|Issuance of preferred shares-Series D                | -          | -       | 1,800,000  | 18,000     | 42,927,000   | -             | -             | -            
|Accretion of discount on preferred shares            |            |         |            |            |              |               |               |              
|of beneficial interest                               | -          | -       | -          | -          | 95,000       | (95,000)      | -             | -            
|Accretion of unearned compensation on                |            |         |            |            |              |               |               |              
|restricted shares of beneficial interest             | -          | -       | -          | -          | -            | -             | -             | 101,000      
|Net income                                           | -          | -       | -          | -          | -            | 10,617,000    | -             | -            
|Distributions on preferred shares                    | -          | -       | -          | -          | -            | (3,470,000)   | -             | -            
|Distributions on common shares                       |            |         |            |            |              |               |               |              
|of beneficial interest($1.92 per share)              | -          | -       | -          | -          | -            | -             | (19,880,000)  | -            
|                                                     |            |         |            |            |              |               |               |              
|BALANCE, DECEMBER 31, 1997                           | 10,415,427 | 104,000 | 2,994,486  | 31,000     | 261,097,000  | 33,806,000    | (96,771,000)  | (155,000)    
|                                                     |            |         |            |            |              |               |               |              
|Issuance of common shares                            | 122,748    | 1,000   | -          | -          | 2,218,000    | -             | -             | (241,000)    
|Forfeiture of common shares                          | (1,072)    | -       | -          | -          | (18,000)     | -             | -             | -            
|Conversion of Series B-1 to common shares            | -          | -       | (54)       | -          | (1,000)      | -             | -             | -            
|Accretion of discount on preferred shares            |            |         |            |            |              |               |               |              
|of beneficial interest                               | -          | -       | -          | -          | 74,000       | (74,000)      | -             | -            
|Accretion of unearned compensation on                |            |         |            |            |              |               |               |              
|restricted shares of beneficial interest             | -          | -       | -          | -          | -            | -             | -             | 153,000      
|Net income                                           | -          | -       | -          | -          | -            | 11,863,000    | -             | -            
|Distributions on preferred shares                    | -          | -       | -          | -          | -            | (7,910,000)   | -             | -            
|Distributions on common shares                       |            |         |            |            |              |               |               |              
|of beneficial interest($1.92 per share)              | -          | -       | -          | -          | -            | -             | (20,143,000)  | -            
|                                                     |            |         |            |            |              |               |               |              
|BALANCE, DECEMBER 31, 1998                           | 10,537,103 | 105,000 | 2,994,432  | 31,000     | 263,370,000  | 37,685,000    | (116,914,000) | (243,000)    
|                                                     |            |         |            |            |              |               |               |              
|Issuance of common shares                            | 26,151     | 1,000   | -          | -          | 339,000      | -             | -             | (230,000)    
|Forfeiture of common shares                          | (422)      | -       | -          | -          | (8,000)      | -             | -             | -            
|Accretion of discount on preferred shares            |            |         |            |            |              |               |               |              
|of beneficial interest                               | -          | -       | -          | -          | 51,000       | (51,000)      | -             | -            
|Accretion of unearned compensation on                |            |         |            |            |              |               |               |              
|restricted shares of beneficial interest             | -          | -       | -          | -          | -            | -             | -             | 208,000      
|Net income                                           | -          | -       | -          | -          | -            | 12,195,000    | -             | -            
|Distributions on preferred shares                    | -          | -       | -          | -          | -            | (7,852,000)   | -             | -            
|Distributions on common shares                       |            |         |            |            |              |               |               |              
|of beneficial interest($1.61 per share)              | -          | -       | -          | -          | -            | -             | (16,983,000)  | -            
|                                                     |            |         |            |            |              |               |               |              
|BALANCE, DECEMBER 31, 1999                           | 10,562,832 | 106,000 | 2,994,432  | 31,000     | 263,752,000  | 41,977,000    | (133,897,000) | (265,000)    



F-4

---





|Kranzco Realty Trust and Subsidiaries                                                                |                                 |              |             
|---------------------------------------------------------------------------------------------------- | ------------------------------- | ------------ | ------------
|Consolidated Statements of Cash Flows                                                                |                                 |              |             
|                                                                                                     |                                 |              |             
|                                                                                                     | For the year ended December 31, |              |             
|                                                                                                     |                                 |              |             
|                                                                                                     | 1999                            | 1998         | 1997        
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                                |                                 |              |             
|Net income                                                                                           | 12,195,000                      | 11,863,000   | 10,617,000  
|                                                                                                     |                                 |              |             
|Adjustments to reconcile net income to net cash provided by                                          |                                 |              |             
|operating activities:                                                                                |                                 |              |             
|Depreciation and amortization                                                                        | 16,863,000                      | 14,582,000   | 12,534,000  
|Amortization of unearned compensation on restricted shares                                           |                                 |              |             
|of beneficial interest                                                                               | 208,000                         | 153,000      | 101,000     
|Gain on sale of real estate, net                                                                     | (535,000)                       | (109,000)    | 0           
|Extraordinary loss on early extinguishment of debt/debt refinancing                                  | 0                               | 0            | 467,000     
|Changes in assets and liabilities:                                                                   |                                 |              |             
|(Increase) decrease in-                                                                              |                                 |              |             
|Rents and other receivables                                                                          | (11,000)                        | 1,637,000    | 451,000     
|Prepaid expenses                                                                                     | (747,000)                       | (367,000)    | (141,000)   
|Other assets                                                                                         | (1,202,000)                     | (284,000)    | (30,000)    
|Increase  (decrease) in-                                                                             |                                 |              |             
|Accounts payable and accrued expenses                                                                | 626,000                         | 697,000      | 469,000     
|Tenant security deposits                                                                             | 97,000                          | 135,000      | 182,000     
|Other liabilities                                                                                    | 26,000                          | (38,000)     | 70,000      
|                                                                                                     |                                 |              |             
|Net cash provided by operating activities                                                            | 27,520,000                      | 28,269,000   | 24,720,000  
|                                                                                                     |                                 |              |             
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                                |                                 |              |             
|                                                                                                     |                                 |              |             
|Investment in shopping center properties                                                             | (10,219,000)                    | (97,387,000) | (27,803,000)
|Proceeds from sale of real estate, net                                                               | 10,121,000                      | 440,000      | 0           
|Decrease (increase) in other assets                                                                  | 511,000                         | (1,325,000)  | 2,467,000   
|(Increase) decrease in accrued acquisition costs                                                     | (334,000)                       | 185,000      | (902,000)   
|Increase in restricted cash                                                                          | (388,000)                       | (582,000)    | (554,000)   
|Increase in deferred costs                                                                           | (1,139,000)                     | (1,120,000)  | (759,000)   
|                                                                                                     |                                 |              |             
|Net cash used in investing activities                                                                | (1,448,000)                     | (99,789,000) | (27,551,000)
|                                                                                                     |                                 |              |             
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                                |                                 |              |             
|                                                                                                     |                                 |              |             
|Distributions paid on common shares of beneficial interest                                           | (18,611,000)                    | (20,084,000) | (19,846,000)
|Distributions paid on preferred shares of beneficial interest                                        | (7,829,000)                     | (7,329,000)  | (2,604,000) 
|Issuance of common shares of beneficial interest, net                                                | 109,000                         | 1,638,000    | 120,000     
|Issuance of preferred shares of beneficial interest, net                                             | 0                               | 0            | 42,732,000  
|Redemption of redeemable preferred shares                                                            | (445,000)                       | (1,782,000)  | (1,336,000) 
|Proceeds of mortgages and notes payable                                                              | 10,273,000                      | 95,400,000   | 20,404,000  
|Repayments of mortgages and notes payable                                                            | (7,206,000)                     | (3,728,000)  | (30,158,000)
|(Decrease) increase in accrued expenses for preferred share offering                                 | 0                               | (479,000)    | 479,000     
|Increase in deferred financing costs                                                                 | (256,000)                       | (626,000)    | (838,000)   
|                                                                                                     |                                 |              |             
|Net cash (used in) provided by financing activities                                                  | (23,965,000)                    | 63,010,000   | 8,953,000   
|                                                                                                     |                                 |              |             
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                 | 2,107,000                       | (8,510,000)  | 6,122,000   
|                                                                                                     |                                 |              |             
|CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                                                         | 2,913,000                       | 11,423,000   | 5,301,000   
|                                                                                                     |                                 |              |             
|CASH AND CASH EQUIVALENTS, END OF YEAR                                                               | 5,020,000                       | 2,913,000    | 11,423,000  
|                                                                                                     |                                 |              |             
|                                                                                                     |                                 |              |             
|SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:                               |                                 |              |             
|                                                                                                     |                                 |              |             
|Accretion of discount on increasing rate preferred shares                                            | 51,000                          | 74,000       | 95,000      
|                                                                                                     |                                 |              |             
|                                                                                                     |                                 |              |             
|Preferred and common shares issued as part of the purchase price for the acquisition of real estate: |                                 |              |             
|Fair value of assets acquired                                                                        | 0                               | 3,665,000    | 86,447,000  
|Liabilities assumed                                                                                  | 0                               | 3,345,000    | 52,000,000  
|                                                                                                     |                                 |              |             
|Preferred shares issued                                                                              | 0                               | 0            | 33,147,000  
|Common shares issued                                                                                 | 0                               | 320,000      | 1,300,000   
|                                                                                                     |                                 |              |             
|The accompanying notes are an integral part of these financial statements.                           |                                 |              |             



F-5

---



KRANZCO REALTY TRUST AND  SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 1999



1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Business and Nature of Operations

Kranzco Realty Trust (a Maryland real estate investment trust) and its subsidiaries ("KRT" or the "Company") are engaged in the ownership, management, leasing, operation, acquisition, development, investment and disposition of neighborhood and
community shopping centers and free-standing properties.  The Company completed its initial public offering of shares of beneficial interest and commenced operations on November 19,  1992.  In addition to its own properties,  the Company  may provide
management services for shopping centers owned by third parties.  As of December 31, 1999, the Company owned 62 properties in sixteen Northeastern, Southern and Mid-Atlantic states.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of KRT and its wholly owned subsidiaries.  All significant intercompany balances and transactions have been eliminated in consolidation.

Segment Information

The Company internally evaluates all properties as one segment and accordingly, will not report segment information.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting periods.  The ultimate results could differ from those estimates.

Real Estate

Real estate assets and improvements or replacements are carried at depreciated cost.  Depreciation is computed using the straight-line method over the estimated useful life of thirty years for buildings and the lesser of the useful life or lease
term of the improvements.  Maintenance and repairs are charged to expense as incurred.   The Company determines potential impairment losses in accordance with the provisions of  Statement of Financial Accounting Standards No. 121 "Accounting for the
Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed Of."  No provision for impairment was required for 1999, 1998 and 1997.

Deferred Costs

Deferred costs relate to the placement of debt and costs of leasing the shopping centers.  Deferred financing costs are amortized using the effective interest method over the term of the related debt.  Leasing costs are amortized on a straight-line
basis over the term of the related lease.

Capitalized Charges

Carrying charges, principally interest and taxes, of land under development and buildings under construction are capitalized by the Company.  Interest is capitalized using an interest rate which equals a weighted average interest rate on the
Company's  indebtedness.  Capitalization ceases when construction activities are completed and the property is available for occupancy by tenants and the costs are then depreciated over the estimated useful life of the property.  The Company  capitalizes
certain direct labor charges on identifiable projects, such as certain significant tenant leases.   These costs are amortized over the length of the applicable leases.

Revenue Recognition

Minimum rental income is recognized on a straight-line basis over the term of the lease agreements regardless of when payments are due and accrued rents are included in rents receivable.  Certain lease agreements contain provisions which provide
for the reimbursement of the tenants' share of real estate taxes and certain common area maintenance costs.  These additional rents are reflected on the accrual basis.  Similarly, certain lease agreements provide for additional rents based on tenants'
sales volume.  These rents are accounted for on an accrual basis only after the respective tenant has reached its sales threshhold.

Comprehensive Income

The Financial Accounting Standards Board ("FASB") issued Statement No. 130, "Reporting Comprehensive Income"  which establishes additional disclosure for the elements of comprehensive income and a total comprehensive income calculation.  Net income
as reported by the Company reflects total comprehensive income for the years ended December 31, 1999, 1998 and 1997.

Earnings Per Share Data

The FASB issued Statement No. 128, "Earnings per Share" which  establishes standards for computing and presenting earnings per share ("EPS") and applies to entities with publicly held common stock or potential common stock.

Basic Earnings Per Share ("Basic EPS")  is based on the weighted average number of common shares of beneficial interest outstanding.  The weighted average number of shares outstanding used in the Basic EPS computations was 10,550,729,  10,478,793
and 10,341,958 in 1999, 1998 and 1997, respectively.   The Diluted Earnings Per Share ("Diluted EPS") computations have been adjusted to give effect to common share equivalents; specifically, common share options outstanding.  The weighted average number
of shares outstanding used in the Diluted EPS computations was 10,550,729,  10,485,091 and 10,348,216 in 1999, 1998 and 1997, respectively.  The Company's Series A-1 and B Preferred Shares and the majority of the Company's stock options were not included
in the Diluted EPS calculation for any period presented because their impact would be anti-dilutive based on current market prices.

Statements of Cash Flows

Cash and cash equivalents include all cash and liquid investments  with original maturities of three months or less, primarily consisting of money  market accounts and government  investments.  Cash paid for interest was $27,834,000,  $22,196,000,
and $19,715,000 for the years ended December 31, 1999, 1998  and 1997, respectively.

Income Taxes

The Company and its subsidiaries file a consolidated Federal income tax return.  KRT intends to maintain its election to be taxed as a Real Estate Investment Trust ("REIT") under Sections 856 to 860 of the Internal Revenue Code.   Accordingly, no
provision for Federal income taxes has been reflected in the financial statements.

The Company is subject to a Federal excise tax computed on a calendar year basis.  The excise tax equals 4% of the excess, if any, of 85% of the Company's ordinary income plus 95% of any capital gain income for the calendar year over cash distributions
during the calendar year, as defined.  No provision for excise tax has been reflected in the financial statements as no tax was due.

Earnings and profits, which will determine the taxability of distributions to shareholders, will differ from net income reported for financial reporting purposes due to the differences in the cost basis for Federal income tax purposes and in the
estimated useful lives used to compute depreciation. The Federal tax  basis of the shopping center properties net of accumulated depreciation was $532,846,000 as of December 31, 1999.

New Accounting Pronouncements

SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133") is effective for fiscal years beginning after June 15, 2000.  SFAS 133 standardizes the accounting for

derivative instruments, including certain derivative instruments embedded in other contracts, by requiring that an entity recognize those items as assets or liabilities in the statement of financial position and measure them at fair value.  The Company
does not currently have any derivative instruments or participate in any hedging activities, and accordingly,  believes that SFAS 133 will not have an effect on the financial statements.

2. INDEBTEDNESS:

At December 31, 1999 and 1998, the Company had mortgages and notes payable outstanding of $353,208,000 and  $350,141,000, respectively.   Interest expense for the years ended December 31,  1999, 1998 and 1997 on the accompanying statements of
operations is shown net of capitalized interest of $555,000, $850,000 and $947,000, respectively.

In 1996, the Company  entered into a  seven year, secured, fixed rate real estate mortgage loan in the principal amount of $181,700,000 (the "Mortgage Loan"), at a weighted average interest rate of 7.96%, which is inclusive of trustee and servicer
fees.  The Mortgage Loan is secured by twenty-seven shopping center properties (the "Mortgaged Properties").   The entire outstanding principal balance of the Mortgage Loan is due in June 2003.  As a condition of the Mortgage Loan,  the Company was
required to establish a Sinking Fund Account and a Capital and TI Reserve Account.   The balance in the Sinking Fund Account as of December 31, 1999 and 1998 was $498,000 and $349,000, respectively.  All funds in the Capital and TI Reserve Account may be
used by the Company to fund capital improvements, repairs, alterations, tenant improvements and leasing commissions at the Mortgaged Properties.  The balance in the Capital and TI Reserve Account was $1,000 and  $178,000 as of December 31, 1999 and 1998,
respectively.



In September 1998, the Company obtained a $65,900,000 fixed rate mortgage from Salomon Brothers Realty Corp.  This mortgage is secured by nine properties acquired in September, 1998.  The mortgage

bears a fixed interest rate of 7% per annum and requires monthly payments of interest and principal based on a 30-year amortization.  The mortgage matures on October 1, 2008.  The outstanding principal balance on the mortgage was approximately
$65,194,000 and $65,805,000 as of December 31, 1999 and 1998, respectively.  Pursuant to the mortgage, the Company is required to make monthly escrow payments for the payment of real estate taxes, insurance, tenant improvements and repair reserves.  The
balance of the tenant improvement and repair reserve account as of December 31, 1999 and 1998 was $619,000 and $345,000, respectively.



In addition, the Company has eleven mortgages outstanding as of December 31, 1999 which were assumed  in connection with various acquisitions of certain shopping centers.  These mortgages have maturity dates ranging from 2000 through 2009.  Eight of
the eleven mortgages assumed have fixed interest rates ranging from 7.75% to 9.375%.  The outstanding principal balance on these mortgages at December 31, 1999  was approximately $46,133,000.  Two mortgages have interest rates payable at a rate adjusted
each year to equal the sum of Moody's A Corporate Bond Index Daily Rate minus 0.125% per annum.  The outstanding principal balance on these  mortgages at December 31, 1999 was approximately $6,866,000.  The Company refinanced a $4,800,000 mortgage in the
fourth quarter of 1999.  This mortgage has an interest rate payable of London Interbank Offering Rate ("LIBOR") plus 250 basis points and is due in December 2000.

In 1998, the Company increased its secured line of credit from Salomon Brothers Realty Corp.  to $100 million from $50 million (the "Salomon Facility").  Amounts borrowed under the line bear interest at the one month London Interbank Offering Rate
plus 175 basis points, which interest rate was 8.23% at December 31, 1999.   The weighted average interest rate on the Salomon Facility was 6.98% for the year ending December 31, 1999.   As of  December 31, 1999, there was $47,765,000 outstanding under
this facility. The facility is secured by fifteen of the Company's shopping centers or portions thereof and the due date is July 2000. The Company has an option to extend the facility for an additional year.  As a condition of the facility, the Company
was required to establish a Repair Reserve Account for immediate and ongoing capital expenditure reserves and replacement reserves.  The balance in the Repair Reserve Account was $442,000 as of December 31, 1999.

The Company has a $1.0 million unsecured line of credit from First Union National Bank.  Amounts borrowed under the line will bear interest at that bank's prime rate.   The weighted average interest rate on the First Union  facility was 8.07% for the
year ending December 31, 1999.  There was $750,000 outstanding borrowings under this facility as of December 31, 1999 and no outstanding borrowings  as of December 31, 1998.  The facility's expiration date is April 30, 2000.

Aggregate principal payments on all outstanding indebtedness are due, as follows:



|2000       | $ 61,409,000
|---------- | ------------
|2001       | 5,294,000   
|2002       | 4,371,000   
|2003       | 193,895,000 
|2004       | 15,497,000  
|Thereafter | 72,742,000  
|           | 353,208,000 

The Company has three balloon payments on debt obligations due in 2000.  Two mortgages totalling $11 million collateralized by two properties are due in the fourth quarter of 2000.  The Company intends to refinance the mortgages on these
properties.  The Salomon Facility, due in July 2000, will be extended at the Company's option, subject to meeting certain requirements of the Salomon Facility documents,  if the proposed merger with CV Reit, Inc. is not consummated at that time.



The carrying values of the long-term debt at December 31, 1999 and 1998 were approximately equal to their respective fair values, as determined by using year-end interest rates and market conditions.  The Company is subject to certain debt covenants.
As of December 31, 1999, the Company was in compliance with all debt covenants.

3. RISKS AND UNCERTAINTIES:

The retailing industry has had numerous entities file for bankruptcy protection in recent years.  The Company has several tenants which are currently operating under Chapter 11 of the Bankruptcy Code.  These bankrupt tenants continue to pay rent,
have not rejected their leases and, in the aggregate, represent approximately 1.4% of the Company's annual rental revenue.   The Company monitors each situation closely and believes that it maintains adequate reserves against the risk of uncollectable
amounts associated with pre-petition rent, straight-line rental income and expense reimbursements for certain of these tenants.   The Company's releasing assumptions provide for the related capital costs of retenanting including capital improvements,
tenant allowances and leasing commissions.

A provision for credit losses is recorded based on management's judgment of tenant creditworthiness.  This provision is recorded in operations and maintenance expenses within the accompanying consolidated statements of operations.    The activity in
the allowance for credit losses during 1999, 1998 and 1997 was as follows:

|Year Ended | Balance at Beginning of Year | Provision for Credit Losses | Accounts Written Off | Balance at End of Year
|---------- | ---------------------------- | --------------------------- | -------------------- | ----------------------
|31-Dec-99  | $2,160,000                   | $711,000                    | ($667,000)           | $2,204,000            
|           |                              |                             |                      |                       
|31-Dec-98  | $1,152,000                   | $3,443,000                  | ($2,435,000)         | $2,160,000            
|           |                              |                             |                      |                       
|31-Dec-97  | $1,245,000                   | $445,000                    | ($538,000)           | $1,152,000            

4. OPERATING LEASES:

The Company's shopping centers are leased to tenants under operating leases with expiration dates extending to the year  2022.  Future minimum rentals under noncancellable operating leases, excluding tenant reimbursements of operating expenses and
additional contingent rentals based on tenants' sales

volume as of December 31, 1999 are as follows:

2000 $58,044,000

2001 $54,475,000

2002 $48,923,000

2003 $44,507,000

2004 $39,092,000

Thereafter $194,288,000

The revenue resulting from straight-line rental income adjustments for the years ended December 31, 1999, 1998 and 1997 was $237,000,  $505,000 and $946,000, respectively.  No tenant represented more than 10% of the minimum rental revenues for 1999,
1998 or 1997.

5. PREFERRED SHARES OF BENEFICIAL INTEREST:

In connection with the purchase of five shopping centers in 1995, the Company issued 11,155 shares of non-voting Series A-1  Increasing  Rate Cumulative Convertible Preferred Shares of Beneficial Interest, $0.01 par value per share,  of Kranzco Realty
Trust (the "Series A-1 Preferred Shares") at a face amount of $11,155,000.   The Preferred Shares were valued for accounting purposes based on the fair value of the assets acquired and recorded at approximately $7,976,000, net of issuance costs.  The
Preferred Shares have an initial distribution rate of 5.0% per annum with increases of 0.25% per annum up to a maximum rate of 6.5% per annum.  As of December 31, 1999, the distribution rate on the Preferred Shares is 6.0%.  The Company recorded a
discount of approximately $467,000 at the time of issuance which represents the present value of the difference between the total distributions to be paid in the seven year period prior to commencement of the perpetual distribution and the perpetual
distribution amount for that same seven year period.  This amount  is accreted on an effective interest method over the seven years through a charge to cumulative net income available for common shareholders.  The Preferred Shares are redeemable by the
Company at any time at their liquidation preference and are convertible into the Company's Common Shares of Beneficial Interest (the "Common Shares"), at a rate of 16.67% annually commencing in the fifth year, with a maximum of 50% convertible in any one
year.  The Preferred Shares are convertible into that number of Common Shares as would result in the holder receiving the same amount of distributions from the Common Shares at the applicable conversion dates as they received as a holder of the Preferred
Shares, up to a maximum of the greater of 500,000 Common Shares or 5% of the then outstanding Common Shares.

In connection with the acquisition of sixteen shopping centers in 1997, the Company issued 1,183,331 shares of Series B-1 and Series B-2 Cumulative Convertible Preferred Shares of Beneficial Interest (the "Series B Preferred Shares"), par value
$0.01 per share, each with a $25.00 per share liquidation preference.  These shares were recorded, net of issuance costs, at approximately $29,366,000.  The Series

B Preferred Shares have a distribution rate of 9.75% per annum and distributions are paid quarterly in arrears for each calendar quarter on January 20, April 20, July 20 and October 20 of each year.  The Series B-1 Preferred Shares are convertible into
Common Shares after February 1998 with the following conversion prices:  $19.175 in the first year, $18.69 in the second year, $18.20 in the third year, $17.71 in the fourth year and thereafter.  In the second quarter of 1998, 54 shares of the Series B
Preferred Shares were converted into 70 Common Shares.   The Series B-2 Preferred Shares automatically converted into Series B-1 Preferred Shares on February 28, 2000 and follow the conversion rates of the Series B-1 Preferred Shares.  The Company also
issued  356,400 shares of Series C Cumulative Redeemable Preferred Shares of Beneficial Interest (the "Series C Preferred Shares"), par value $0.01 per share, each with a $10.00 liquidation preference.  These shares were recorded, net of issuance costs,
at approximately $3,560,000.  The Series C  Preferred Shares have a distribution rate of 8% per annum and distributions are payable quarterly on the last day of January, April, July and October of each year with respect to the immediately preceding
calendar quarter.  The Company was required to redeem, commencing April 1997, in eight equal quarterly installments all of the outstanding Series C Preferred Shares at a redemption price equal to the $10.00 liquidation price plus an amount equal to the
accrued and unpaid distributions, if any, allocable to the Series C Preferred Shares.  The final redemption of the Series C Preferred Shares was on January 29, 1999.

In December 1997, the Company issued 1,800,000 shares of 9 1/2% Series D Cumulative Redeemable Preferred Shares of Beneficial Interest (the "Series D Preferred Shares"), par value $0.01 per share, each with a $25.00 per share liquidation preference.
These shares were recorded, net of issuance costs, at approximately $42,945,000.  The proceeds of the issuance were used in connection with the acquisition of four shopping centers in December 1997 (approximately $15,774,000), to repay approximately
$19,810,000 of indebtedness and for general corporate purposes.  In connection with the debt repayment, the Company recorded an extraordinary loss on the early extinguishment of debt of $467,000 including the write-off of approximately $179,000 of
unamortized deferred finance costs related to the repaid debt instruments and prepayment fees.  The distributions are paid quarterly in arrears for each calendar quarter on January 20, April 20, July 20 and October 20 of each year.  The Series D Preferred
Shares are not redeemable prior to December 11, 2002.  On or after December 11, 2002, the Series D Preferred Shares may be redeemed for cash at the option of the Company at a redemption price of $25.00 per share, plus accrued and unpaid distributions, if
any, thereon to the redemption date.

Other than the 54 Series B Preferred Shares discussed above, there was no conversion of preferred shares into common shares of beneficial interest during 1999 or 1998.

6. SHARE OPTION PLANS,  INCENTIVE PLAN  AND WARRANTS:

The Company has established share option plans for the employees and trustees of the Company.  The employees' plan has a maximum of 300,000 shares available for issuance and the trustees' plan has a maximum of 700,000 shares available for issuance.
The options are exercisable at a price not less than fair market value at the date of grant and expire ten years after the date of grant.

On June 6, 1995 the shareholders approved the Company's 1995 Incentive Plan.  The purpose of the Incentive Plan is to align the interests of the Company's trustees, executive officers, key employees, advisors and consultants with those of the
shareholders and to enable the Company to attract, compensate and retain trustees, executive officers, key employees, advisors and consultants and provide them with appropriate incentives and rewards for performance. Awards under the Incentive Plan may
take the form of share options ("Options"), including corresponding share appreciation rights ("SARs") and reload options, and in the case of employees, restricted share awards, and share purchase awards. Awards under the Incentive Plan may be granted in
combination with other awards. The maximum

number of Common Shares that may be the subject of awards under the Incentive Plan is 1,000,000  Common Shares. The Incentive Plan provides that in any given year, the maximum number of Common Shares with respect to which Options or SARs may be granted
to any employee is 100,000 Common Shares.  During 1999, 1998 and 1997,  17,131, 13,049 and 7,711 restricted shares, respectively,  were issued to employees and officers of the Company at the then market price of $13.44, $18.44 and $16.25 per share,
respectively.  The shares will vest with the employees and be recorded as compensation expense over various periods of time.  Compensation expense of $208,000 in 1999, $153,000 in 1998 and $101,000 in 1997 was recognized in connection with these plans.











The following tables show the activity and balances for each share option plan and the incentive plan:

|                                                          | Trustee Plan |         |         | Employee Plan |         |        
|--------------------------------------------------------- | ------------ | ------- | ------- | ------------- | ------- | -------
|                                                          | 1999         | 1998    | 1997    | 1999          | 1998    | 1997   
|Outstanding, beginning of year                            | 429,300      | 430,800 | 387,800 | 191,550       | 191,550 | 133,200
|Granted at                                                |              |         |         |               |         |        
|                                                          |              |         |         |               |         |        
|$19.06 per share                                          | -            | -       | -       | -             | 7,500   | -      
|$18.31 per share                                          | -            | 4,500   | -       | -             | -       | -      
|$16.25 per share                                          | -            | -       | 43,000  | -             | -       | 59,500 
|$12.75 per share                                          | 3,000        | -       | -       | -             | -       | -      
|$13.44 per share                                          | 3,000        | -       | -       | -             | -       | -      
|                                                          |              |         |         |               |         |        
|Exercised at                                              |              |         |         |               |         |        
|                                                          |              |         |         |               |         |        
|$17.13 per share                                          | -            | (3,000) | -       | -             | -       | -      
|$16.25 per share                                          | -            | -       | -       | -             | (3,750) | -      
|                                                          |              |         |         |               |         |        
|Retired at prices ranging from $16.25 to $20.00 per share | (5,000)      | (3,000) | -       | (3,600)       | (3,750) | (1,150)
|                                                          |              |         |         |               |         |        
|Outstanding, end of year                                  | 430,300      | 429,300 | 430,800 | 187,950       | 191,550 | 191,550





|Incentive Plan                                            |         |         |        
|--------------------------------------------------------- | ------- | ------- | -------
|                                                          | 1999    | 1998    | 1997   
|Outstanding, beginning of year                            | 312,000 | 303,000 | 297,000
|Granted at                                                |         |         |        
|                                                          |         |         |        
|$19.19 per share                                          | -       | 12,000  | -      
|$16.25 per share                                          | -       | -       | 4,500  
|$16.00 per share                                          | -       | -       | 1,500  
|$11.75 per share                                          | 6,000   | -       | -      
|                                                          |         |         |        
|Exercised at $15.25 per share                             | -       | (3,000) | -      
|Retired at prices ranging from $15.25 to $19.19 per share | (7,500) | -       | -      
|                                                          |         |         |        
|Outstanding, end of year                                  | 310,500 | 312,000 | 303,000



During 1996, the Company adopted the stock-based compensation accounting standard, "Accounting for Stock-Based Compensation"("SFAS No. 123").  SFAS No. 123 encourages a fair value method of accounting for employee stock options and similar equity
instruments.  The statement also allows an entity to continue to account for stock-based compensation using the intrinsic value based method in APB Opinion No. 25.  As provided for in the statement, the Company elected to continue the intrinsic value

method of expense recognition.  If compensation cost for these plans had been determined using the fair value method prescribed by SFAS No. 123, the Company's net income (loss) would have reflected the pro forma amounts indicated below.

|1999                               | 1998       | 1997       |           
|---------------------------------- | ---------- | ---------- | ----------
|                                   |            |            |           
|Net income for common shareholders | $4,232,000 | $3,823,000 | $7,008,000
|Earnings per common share          | $0.40      | $0.36      | $0.67     

The pro forma effect on results may not be representative of the impact in future years because the fair value method was not applied to options granted before 1995.

The fair value of each option was estimated on the grant date using the Black-Scholes option pricing model and assumptions including the following weighted-average information presented below.





|                        | 1999   | 1998   | 1997  
|----------------------- | ------ | ------ | ------
|                        |        |        |       
|Expected life in years  | 2.3    | 2.33   | 2.99  
|Risk-free interest rate | 5.13%  | 5.57%  | 6.20% 
|Volatility              | 22.40% | 18.26% | 19.65%
|Dividend yield          | 9.38%  | 9.06%  | 9.01% 

The weighted average fair value of options granted was $0.94 per option in 1999, $1.13 per option in 1998 and $1.08 per option in 1997.

7. RELATED PARTY TRANSACTIONS:

The Company rents office space in Conshohocken, Pennsylvania, under the terms of a net lease from an officer of the Company.  The minimum annual rental under the lease is $154,000 and the lease was extended to January 14, 2004.  During 1999, 1998 and
1997, the Company paid $154,000 in annual rent, respectively.

In December 1998, the Company terminated an Exchange Offer with New America Network, Inc., a Delaware corporation which conducts business under the name New America International ("NAI"),  due to disruptions to the securities markets.  In management's
opinion, public offerings of small capitalization companies would not have been favorable at that time.  The Company recorded a $250,000 charge to general and administrative expenses for costs related to the terminated transaction in the fourth quarter of
1998.   As of December 31, 1999, the Company has an investment of  $1,250,000 for a minority interest in NAI common stock.  This investment was accounted for using the cost method.  The Chief Executive Officer of NAI is a member of the Company's Board of
Trustees.    The investment is included in other assets in the accompanying consolidated balance sheet.

8. 401 (k) PLAN:

During 1993, the Company adopted a 401(k) Plan covering substantially all of the officers and employees of the Company and subsidiaries which permits participants to defer up to a maximum of 10% of their compensation. The Company, at its discretion,
may match up to 50% of the initial five percent of the employees' contributions and may also make an additional discretionary contribution. The employees' contributions, together with contributions from the Company are generally fully

vested and are fully funded as of December 31, 1999 and 1998. The Company's contributions  to the Plan for the years ended December 31, 1999, 1998  and 1997 were  $85,000,  $80,000 and  $70,000, respectively.

9.  ACQUISITIONS AND DISPOSITIONS:

In June 1999, the Company sold one of its free-standing properties located in Tucson, AZ for approximately $864,000 and recorded a net loss on the sale of approximately $18,000.  In July and August 1999, the Company completed the sale of three
additional free-standing properties located in Raynham, MA, Roseville, MN, and Minnetonka, MN as well as a 61,000 square foot shopping center in Orange, CT.  Total proceeds on the sales were approximately $9,887,000 and the net gain was approximately
$545,000.  The proceeds of the sales were used to pay down debt obligations and for general corporate purposes, including the continuing program of upgrading and expanding existing properties.  In September 1999, the Company sold a parcel of land at its
center in Bainbridge, GA, and recorded a gain of approximately $59,000.  The net proceeds from the sale of approximately $235,000 was used to repay debt outstanding on the property.  In the third quarter of 1999, the Company finalized the condemnation of
a small portion of land at one of their properties  by the respective township authority.  Gross proceeds were approximately $99,000 and the Company recorded a loss of $51,000 related to the transaction.

The Company acquired ten shopping centers during the year ended December 31, 1998  for approximately $93,000,000  which were accounted for by the purchase method. The results of operations of each center were included from the respective purchase date.
The pro forma financial information presented below may not be indicative of results that would have been reported if the

acquisitions had occurred on January 1, 1998 and 1997, respectively.   The extraordinary loss recorded in 1997 of $467,000 has  been excluded from the pro forma presentation.

Year ended December 31,1998 (Unaudited)
Pro forma total revenues $78,124,000
Pro forma net income available for common shareholders $3,478,000
Pro forma net income per common share $0.33

Year ended December 31,1997 (Unaudited)
Pro forma total revenues $76,323,000
Pro forma net income availablefor common shareholders $4,146,000



In 1998, the Company sold one of its free-standing properties located in Richmond, Virginia, for a sale price of $420,000.  The Company recorded a gain on sale of the property of $89,000.  Also in 1998, the Company sold a parcel of land of
approximately 8,500 square feet at one of its properties to a third party buyer.  The sales price of the land parcel was $40,000 and the Company recorded a gain on the sale of approximately $20,000.

10. DISTRIBUTIONS ON COMMON AND PREFERRED SHARES OF BENEFICIAL INTEREST:

On December 14, 1999, the Trustees declared a cash distribution of $0.325 per common share, payable to common shareholders of record on December 28, 1999.  The distribution of $3,433,000 was paid on January 21, 2000.  The Company declared distributions
of $1.61 per common share for the year ended December 31, 1999.  Of the $1.61 per share distributed, the fourth quarter distribution of $0.325 per share is reportable for tax purposes in the year 2000.  Of the remaining distribution, the Company
determined that $0.3356 per share is a return of capital, $0.0709 per share is unrecaptured section 1250 gain, $0.009 per share is 20% gain and $0.8695 per share is ordinary income for 1999.

In December 1998, the Trustees declared a cash distribution of $0.48 per common share, payable to common shareholders of record on December 28, 1998.   The distribution of $5,058,000 was paid on January 20, 1999.  The Company declared distributions of
$1.92 per common share for the year ended December 31, 1998.  The Company determined that  $1.09 per share of the distributions represented ordinary income to the recipient and $0.83 per share represented a return of capital in 1998.

In December  1997, the Trustees declared a cash distribution of $0.48 per common share, payable to common shareholders of record on December 26, 1997.   The distribution of $4,999,000 was paid on January 21, 1998.  The Company declared distributions of
$1.92 per common share for the year ended December 31, 1997.  The Company determined that  $1.07 per share of the distributions represented ordinary income to the recipient and $0.85 per share represented a return of capital in 1997.

The Company accrued the quarterly distribution on the Series A-1 Preferred Shares of $167,000, $160,000 and $153,000 as of December 31, 1999, 1998 and 1997, respectively.  These distributions were paid on January 1, 2000, 1999 and 1998, respectively.

The Company accrued $585,000, $572,000 and $571,000 of the distribution on the Series B Preferred Shares as of December 31, 1999, 1998 and 1997, respectively.  The distributions  were paid on January 20, 2000, 1999 and 1998, respectively.

The Company accrued $12,000  and $45,000 of the distribution on the Series C Preferred Shares as of December 31, 1998 and 1997, respectively.  The distributions  were paid on January 29, 1999 and January 30, 1998, respectively.

The Company accrued $867,000, $848,000 and $242,000 of the distribution on the Series D Preferred Shares as of December 31, 1999, 1998 and 1997, respectively.  The distributions were  paid on January 20, 2000, 1999 and 1998, respectively.

11. INTERIM RESULTS  (Unaudited):

The following presents a summary of the unaudited quarterly financial information for the years ended December 31, 1999 and 1998:

|Revenue                      | Net Income(Loss) For Common Shareholders | Basic/Diluted Earnings(Loss) Per Common Share |        
|---------------------------- | ---------------------------------------- | --------------------------------------------- | -------
|                             |                                          |                                               |        
|Year ended December 31, 1999 |                                          |                                               |        
|First Quarter                | $20,136,000                              | $1,503,000                                    | $0.14  
|Second Quarter               | $19,492,000                              | $1,044,000                                    | $0.10  
|Third Quarter                | $19,126,000                              | $1,174,000                                    | $0.11  
|Fourth Quarter               | $19,348,000                              | $571,000                                      | $0.05  
|                             |                                          |                                               |        
|Year ended December 31, 1998 |                                          |                                               |        
|First Quarter                | $16,707,000                              | $1,659,000                                    | $0.16  
|Second Quarter               | $16,982,000                              | $1,795,000                                    | $0.17  
|Third Quarter                | $17,296,000                              | $1,946,000                                    | $0.19  
|Fourth Quarter               | $20,357,000                              | ($1,521,000)                                  | ($0.14)



As a result of tenant bankruptcy filings and a terminated transaction, the Company recorded a total charge of $3.1 million in the fourth quarter of 1998.  Per share amounts are based on weighted average shares outstanding each quarter and may not
equate to the full year amounts due to increases in shares outstanding.





12.  PROPOSED MERGER TRANSACTION:

In December 1999, the Company signed an Agreement and Plan of Reorganization and Merger with CV Reit, Inc. ("CV")  to create a new community shopping center umbrella partnership real estate investment trust ("UPREIT") to be called Kramont Realty
Trust.  Terms of the merger call for shareholders of CV and Kranzco to each receive one share of Kramont Realty Trust common stock for each outstanding share of CV and Kranzco they hold on a tax-free basis. The merger agreement is subject to approval by
shareholders of both companies and other customary conditions.  Kramont Realty Trust will consist of 84 properties encompassing approximately 11 million square feet in 16 states with an asset base of approximately $800 million.  The merger agreement
anticipates that the initial distribution policy of Kramont will provide for distributions at the annual rate of $1.30 per common share which will be equal to the current annual payout rate to the Company's shareholders.  The Company anticipates the
transaction being completed in the second quarter of 2000.

---

|                                  |                                                                                                                              |               | Kranzco Realty Trust                                        |                   |              |              |               |              | Schedule III |             
|--------------------------------- | ---------------------------------------------------------------------------------------------------------------------------- | ------------- | ----------------------------------------------------------- | ----------------- | ------------ | ------------ | ------------- | ------------ | ------------ | ------------
|                                  |                                                                                                                              |               | Real Estate and Accumulated Depreciation- December 31, 1999 |                   |              |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Column A                                                                                                                     |               | Column B                                                    |                   | Column C     | Column D     | Column E      | Column F     | Column G     | Column I    
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              | & H          |             
|                                  |                                                                                                                              |               |                                                             |                   |              | Cost of      | Amount at     |              |              |             
|                                  |                                                                                                                              |               | Encumbrances                                                |                   | Initial      | Improvements | Which Carried |              | Date         |             
|                                  |                                                                                                                              |               | Maturity                                                    | Balance at        | Cost         | Net of       | December 31,  | Accumulated  | Constructed  | Depreciable 
|                                  | Description                                                                                                                  | Interest Rate | Date                                                        | December 31, 1999 | to Trust     | Retirements  | 1999          | Depreciation | or Acquired  | Life (Years)
|Shopping Centers:                 |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|A & P Mamaroneck                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | $1,061,000        | $287,710     | $0           | $287,710      |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 1,150,837    | 65,731       | 1,216,568     | $281,400     | 11/19/92     | 30          
|Ames Center                       |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         |               |                                                             | 0                 | 1,200,651    | -1,200,651   | 0             |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 800,434      | -800,434     | 0             | 0            | 2/21/97      | 30          
|Anneslie Shopping Center          |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 5,859,000         | 1,348,713    | 0            | 1,348,713     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 5,394,854    | 505,643      | 5,900,497     | 1,303,324    | 6/29/93      | 10-30       
|Bainbridge Town Center            |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 6        | Note 6                                                      | 4,358,000         | 2,328,145    | -174,145     | 2,154,000     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 5,432,338    | 13,800       | 5,446,138     | 520,148      | 2/21/97      | 5-30        
|Bakers Square-Minnetonka          |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         |               |                                                             | 0                 | 670,656      | -670,656     | 0             |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 447,104      | -447,104     | 0             | 0            | 2/21/97      | 30          
|Bakers Square-Roseville           |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         |               |                                                             | 0                 | 847,112      | -847,112     | 0             |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 564,741      | -564,741     | 0             | 0            | 2/21/97      | 30          
|Barn Plaza Shopping Center        |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 9,164,000         | 1,284,790    | 875,776      | 2,160,566     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 6,808,226    | 2,987,404    | 9,795,630     | 2,526,233    | 11/19/92     | 5-30        
|Barn Theater                      |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 6        | Note 6                                                      | 3,929,000         | 226,865      | 935,426      | 1,162,291     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 584,818      | 3,697,982    | 4,282,800     | 145,428      | 9/1/94       | 30          
|Bensalem Square                   |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 4,281,000         | 1,185,101    | 160,806      | 1,345,907     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 4,532,826    | 37,730       | 4,570,556     | 1,092,815    | 11/19/92     | 5-30        
|Bethlehem Square                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 16,249,000        | 4,816,318    | 146          | 4,816,464     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 19,265,294   | 1,228,170    | 20,493,464    | 5,086,336    | 11/19/92     | 10-30       
|Bradford Mall                     |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 6        | Note 6                                                      | 1,297,000         | 1,518,627    | 93,746       | 1,612,373     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 5,954,606    | 1,757,238    | 7,711,844     | 1,968,106    | 11/19/92     | 5-30        
|Bristol Commerce Park             |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 12,994,000        | 3,092,633    | -134,742     | 2,957,891     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 13,959,722   | 1,501,095    | 15,460,817    | 3,658,873    | 11/19/92     | 4-30        
|Brookway Village                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 6        | Note 6                                                      | 1,982,000         | 854,647      | 0            | 854,647       |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 1,994,177    | 0            | 1,994,177     | 188,339      | 2/21/97      | 30          
|Builder's Square                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 7.50%         | 10/1/06                                                     | 2,363,000         | 2,476,656    | 0            | 2,476,656     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 1,651,104    | 0            | 1,651,104     | 155,938      | 2/21/97      | 30          
|Campus Village                    |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 8%            | 12/1/02                                                     | 2,532,000         | 951,663      | 1,763        | 953,426       |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 3,013,599    | 21,148       | 3,034,747     | 481,300      | 4/19/95      | 5-30        
|Cary Plaza                        |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 7.875%        | 2/1/09                                                      | 1,285,000         | 945,387      | 0            | 945,387       |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 2,205,903    | 8,296        | 2,214,199     | 211,633      | 2/21/97      | 5-30        
|Collegetown Shopping Center       |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 5,487,000         | 1,901,831    | 9,704        | 1,911,535     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 7,609,275    | 1,230,897    | 8,840,172     | 2,026,383    | 11/19/92     | 4-30        
|Coral Hills                       |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 2        | Note 2                                                      | 4,800,000         | 3,086,879    | 6,104        | 3,092,983     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 5,732,775    | 117,883      | 5,850,658     | 917,334      | 4/19/95      | 30          
|The Mall at Cross County          |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 20,283,000        | 5,330,148    | 0            | 5,330,148     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 21,320,590   | 7,178,239    | 28,498,829    | 6,075,336    | 11/19/92     | 5-30        
|Culpeper                          |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 6        | Note 6                                                      | 1,321,000         | 1,172,766    | 355,173      | 1,527,939     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 3,518,299    | 3,274,175    | 6,792,474     | 561,882      | 4/19/95      | 30          
|Douglas Crossing                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 7.00%         | Note 9                                                      | 15,005,000        | 7,166,424    | 0            | 7,166,424     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 13,309,074   | 0            | 13,309,074    | 554,545      | 9/29/98      | 30          
|East Main Center                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 7        | Note 7                                                      | 2,574,000         | 2,133,090    | 7,753        | 2,140,843     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 4,406,511    | 0            | 4,406,511     | 416,171      | 2/21/97      | 30          
|Fox Run                           |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 14,069,000        | 7,945,202    | 218,403      | 8,163,605     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 16,663,137   | 389,384      | 17,052,521    | 3,486,045    | 7/21/94      | 5-30        
|Franklin Center                   |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 6        | Note 6                                                      | 6,587,000         | 2,873,838    | 0            | 2,873,838     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 6,705,622    | 0            | 6,705,622     | 633,309      | 2/21/97      | 30          
|Golfland                          |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         |               |                                                             | 0                 | 997,368      | -997,368     | 0             |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 3,989,469    | -3,989,469   | 0             | 0            | 11/19/92     | 5-30        
|Groton Square                     |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 12,174,000        | 3,490,394    | 0            | 3,490,394     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 13,986,580   | 542,697      | 14,529,277    | 3,482,610    | 11/19/92     | 5-30        
|Harrodsburg Marketplace           |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 6        | Note 6                                                      | 2,836,000         | 1,235,502    | 0            | 1,235,502     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 2,882,839    | 90,335       | 2,973,174     | 273,014      | 2/21/97      | 30          
|Highridge Plaza                   |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 7,242,000         | 1,564,430    | 611,382      | 2,175,812     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 6,057,721    | 425,817      | 6,483,538     | 1,519,546    | 11/19/92     | 4-30        
|Hillcrest Mall                    |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 5,384,000         | 1,415,066    | 0            | 1,415,066     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 4,416,833    | 2,273,027    | 6,689,860     | 1,235,466    | 11/19/92     | 4-30        
|Hillcrest Plaza                   |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 3,832,000         | 1,134,826    | 2,056        | 1,136,882     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 5,957,835    | 56,717       | 6,014,552     | 958,086      | 4/19/95      | 4-30        
|Holcomb Bridge Center             |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 8.20%         | 11/1/00                                                     | 6,305,000         | 2,483,409    | 0            | 2,483,409     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 5,800,621    | 22,000       | 5,822,621     | 401,633      | 12/19/97     | 3-30        
|KR Development, LP                |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 6        | Note 6                                                      | 5,250,000         | 0            | 0            | 0             |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 0            | 4,133,342    | 4,133,342     | 280,451      | 6/1/97       | 10-30       
|KR Pensacola II, Inc.             |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         |               |                                                             | 0                 | 0            | 362,912      | 362,912       |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 0            | 0            | 0             | 0            | 9/29/98      |             
|Lilac New York                    |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 6        | Note 6                                                      | 5,286,000         | 205,935      | 152,147      | 358,082       |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 0            | 2,749,975    | 2,749,975     | 189,639      | 11/21/97     | 30          
|Mableton Village                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 9.20%         | 8/1/06                                                      | 10,410,000        | 4,165,152    | 0            | 4,165,152     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 9,724,688    | 61,132       | 9,785,821     | 659,646      | 12/19/97     | 30          
|Marumsco-Jefferson Plaza          |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 9.375%        | 7/1/04                                                      | 15,307,000        | 5,487,073    | 50,084       | 5,537,157     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 16,461,219   | 824,586      | 17,285,805    | 2,838,823    | 4/19/95      | 30          
|MacArthur Plaza                   |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 2,308,000         | 682,696      | -264         | 682,432       |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 2,727,666    | 28,138       | 2,755,804     | 586,143      | 9/28/93      | 3-30        
|Magnolia                          |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 6        | Note 6                                                      | 4,320,000         | 1,747,286    | 0            | 1,747,286     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 4,077,001    | 41,000       | 4,118,001     | 402,133      | 2/21/97      | 30          
|Manchester Kmart Plaza            |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 2,522,000         | 1,051,958    | 59,394       | 1,111,352     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 3,092,778    | 990,400      | 4,083,178     | 756,823      | 5/24/94      | 3-30        
|Meeting Square                    |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 7.00%         | Note 9                                                      | 2,405,000         | 1,279,112    | 0            | 1,279,112     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 2,375,493    | 0            | 2,375,493     | 98,979       | 9/29/98      | 30          
|Milford                           |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 1,470,000         | 0            | 0            | 0             |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 2,123,804    | 8,813        | 2,132,617     | 505,577      | 11/19/92     | 30          
|Musicland                         |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 6        | Note 6                                                      | 2,700,000         | 2,787,494    | 0            | 2,787,494     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 1,858,329    | 0            | 1,858,329     | 175,509      | 2/21/97      | 30          
|North Ridge Shopping Center       |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 2,597,000         | 590,343      | 0            | 590,343       |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 2,361,369    | 280,891      | 2,642,260     | 632,004      | 11/19/92     | 5-30        
|Northpark Center                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 7.75%         | 1/1/03                                                      | 4,585,000         | 3,738,602    | 0            | 3,738,602     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 8,729,404    | 0            | 8,729,404     | 591,919      | 12/19/97     | 30          
|Orange                            |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 786,000           | 0            | 0            | 0             |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 105,724      | 439          | 106,163       | 25,168       | 11/19/92     | 30          
|Park Center                       |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 8        | Note 8                                                      | 4,292,000         | 2,651,520    | 10,450       | 2,661,970     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 5,478,753    | 69,566       | 5,548,319     | 533,792      | 2/21/97      | 5-30        
|Park Hills Plaza                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 9,602,000         | 2,752,903    | 4,516        | 2,757,419     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 9,976,436    | 1,567,179    | 11,543,615    | 2,549,737    | 11/19/92     | 30          
|Park Plaza                        |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 8.25%         | 9/1/01                                                      | 3,346,000         | 1,222,700    | 0            | 1,222,700     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 2,853,117    | 0            | 2,853,117     | 167,711      | 3/27/98      | 30          
|Parkway Plaza I                   |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 6        | Note 6                                                      | 1,532,000         | 1,213,750    | 0            | 1,213,750     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 4,854,998    | 252,476      | 5,107,474     | 1,226,889    | 11/19/92     | 5-30        
|Parkway Plaza II                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         |               |                                                             | 0                 | 1,032,538    | 0            | 1,032,538     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 3,930,151    | -287,754     | 3,642,397     | 936,438      | 11/19/92     | 30          
|Pickaway Crossing                 |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 7.00%         | Note 9                                                      | 6,196,000         | 2,898,636    | 0            | 2,898,636     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 5,383,180    | 0            | 5,383,180     | 224,299      | 9/29/98      | 30          
|Pilgrim Gardens                   |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 4,058,000         | 1,056,600    | 0            | 1,056,600     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 4,083,178    | 453,953      | 4,537,131     | 1,084,194    | 11/19/92     | 5-30        
|Port Washington                   |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 446,000           | 50,000       | 0            | 50,000        |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 600,026      | 2,697        | 602,723       | 142,879      | 11/19/92     | 30          
|69th Street Drug Emporium Plaza   |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 2,479,000         | 730,424      | 3,542        | 733,966       |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 2,921,696    | 33,054       | 2,954,750     | 588,216      | 2/15/94      | 30          
|Sinclair Paints                   |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         |               |                                                             | 0                 | 484,782      | -484,782     | 0             |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 323,188      | -323,188     | 0             | 0            | 2/21/97      | 30          
|Snellville Oaks                   |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 7.00%         | Note 9                                                      | 12,239,000        | 5,763,012    | 0            | 5,763,012     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 10,702,736   | 3,558        | 10,706,294    | 446,837      | 9/29/98      | 5-30        
|Statler Crossing                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 7.00%         | Note 9                                                      | 6,291,000         | 3,064,466    | 0            | 3,064,466     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 5,691,151    | 0            | 5,691,151     | 237,131      | 9/29/98      | 30          
|Stratford Square                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         |               |                                                             | 0                 | 3,057,993    | 241,273      | 3,299,266     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 12,231,971   | 293,585      | 12,525,556    | 2,923,351    | 11/19/92     | 5-30        
|Street Road Plaza                 |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 4,127,000         | 1,796,172    | 32,963       | 1,829,135     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 5,159,488    | 849,448      | 6,008,936     | 1,261,664    | 9/28/93      | 5-30        
|Suburban Plaza                    |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 10,453,000        | 3,277,322    | 4,784        | 3,282,106     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 13,109,289   | 422,876      | 13,532,165    | 2,589,790    | 2/15/94      | 30          
|Summerville                       |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 7.00%         | Note 9                                                      | 2,280,000         | 885,057      | 0            | 885,057       |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 1,643,676    | 18,280       | 1,661,956     | 73,056       | 9/29/98      | 30          
|Tifton Corners                    |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 7.00%         | Note 9                                                      | 8,609,000         | 4,373,875    | 0            | 4,373,875     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 8,122,911    | 11,040       | 8,133,951     | 339,007      | 9/29/98      | 30          
|Tower Plaza                       |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 6        | Note 6                                                      | 2,590,000         | 1,567,130    | 0            | 1,567,130     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 3,662,636    | 150          | 3,662,786     | 248,349      | 12/19/97     | 30          
|Towne Square                      |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         |               |                                                             | 0                 | 1,589,041    | 0            | 1,589,041     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 3,707,763    | 26,082       | 3,733,845     | 363,491      | 2/21/97      | 3-30        
|Valley Fair (Formerly Best Plaza) |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 5,747,000         | 1,693,227    | 531          | 1,693,758     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 6,772,906    | 32,060       | 6,804,966     | 1,428,236    | 9/28/93      | 3-30        
|Valley Forge Mall                 |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 6        | Note 6                                                      | 0                 | 972,663      | 113,789      | 1,086,452     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 4,006,745    | 563,072      | 4,569,817     | 1,007,041    | 11/19/92     | 5-30        
|Vidalia                           |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 7.00%         | Note 9                                                      | 4,269,000         | 1,449,626    | 0            | 1,449,626     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 2,692,162    | 0            | 2,692,162     | 112,173      | 9/29/98      | 30          
|Village Oaks                      |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | 7.00%         | Note 9                                                      | 7,900,000         | 4,134,169    | -360,000     | 3,774,169     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 7,677,742    | 19,367       | 7,697,109     | 323,672      | 9/29/98      | 30          
|Village Square                    |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 1,850,000         | 371,566      | 0            | 371,566       |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 1,486,265    | 852,019      | 2,338,284     | 475,225      | 11/19/92     | 3-30        
|Wampanoag Plaza                   |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 6        | Note 6                                                      | 3,777,000         | 1,583,670    | -16,456      | 1,567,214     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 8,606,897    | 1,193,278    | 9,800,175     | 2,353,392    | 11/19/92     | 5-30        
|Whitehall Square                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         | Note 1        | Note 1                                                      | 15,176,000        | 4,522,056    | 105,081      | 4,627,138     |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             |                   | 18,088,227   | 511,871      | 18,600,098    | 4,399,139    | 11/19/92     | 3-30        
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             | $352,458,000      | $547,419,924 | $36,840,574  | $584,260,498  | $73,939,753  |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  |                                                                                                                              |               | Kranzco Realty Trust                                        |                   |              |              |               |              | Schedule III |             
|                                  |                                                                                                                              |               | Real Estate and Accumulated Depreciation- December 31, 1999 |                   |              |              |               |              | (continued)  |             
|Notes:                            |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|(1)                               | Total REMIC of $181,700,000 with interest rate of 7.960% and maturity date 6/2003.                                           |               |                                                             |                   |              |              |               |              |              |             
|(2)                               | Interest rate is LIBOR plus 250 basis points.  Maturity date is 12/00.                                                       |               |                                                             |                   |              |              |               |              |              |             
|(3)                               | The Federal tax basis of the Shopping Center properties was $532,846,000 at December 31, 1999.                               |               |                                                             |                   |              |              |               |              |              |             
|(4)                               | Reconciliation of amount shown in column E:                                                                                  |               |                                                             |                   |              |              |               |              |              |             
|                                  | Balance at beginning of period, December 31, 1998                                                                            |               |                                                             |                   | $584,883,408 |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Additions during period:                                                                                                     |               |                                                             |                   |              |              |               |              |              |             
|                                  | Land                                                                                                                         |               |                                                             | $283,855          |              |              |               |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             | 9,919,624         |              |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   | 10,203,479   |              |               |              |              |             
|                                  | Deductions during the period                                                                                                 |               |                                                             |                   |              |              |               |              |              |             
|                                  | Retirements                                                                                                                  |               |                                                             | 187,175           |              |              |               |              |              |             
|                                  | Properties sold                                                                                                              |               |                                                             | 10,639,214        |              |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   | 10,826,389   |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Balance December 31, 1999                                                                                                    |               |                                                             |                   | $584,260,498 |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|(5)                               | Reconciliation of amount shown in column F:                                                                                  |               |                                                             |                   |              |              |               |              |              |             
|                                  | Balance at beginning of period, December 31, 1998                                                                            |               |                                                             |                   | $59,793,288  |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Additions during period:                                                                                                     |               |                                                             |                   |              |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Buildings and improvements                                                                                                   |               |                                                             | $15,402,652       |              |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   | 15,402,652   |              |               |              |              |             
|                                  | Deductions during the period                                                                                                 |               |                                                             |                   |              |              |               |              |              |             
|                                  | Retirements                                                                                                                  |               |                                                             | 1,256,187         |              |              |               |              |              |             
|                                  | Properties sold                                                                                                              |               |                                                             | 0                 |              |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   | 1,256,187    |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  | Balance December 31, 1999                                                                                                    |               |                                                             |                   | $73,939,753  |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|(6)                               | Property is collateral for the Salomon Brothers Realty Corp. secured line of credit of up to $100 million.                   |               |                                                             |                   |              |              |               |              |              |             
|                                  | Interest rate is 1 month LIBOR plus 175 basis points.  Maturity date 7/00.                                                   |               |                                                             |                   |              |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|(7)                               | Annual rate adjusted each year to equal the sum of Moody's A Corporate Bond Index Daily Rate minus 0.125% per annum, rounded |               |                                                             |                   |              |              |               |              |              |             
|                                  | up to the next highest 1/8 percentage rate, but in no event shall the rate exceed 11.5% prior to 1/1/98.                     |               |                                                             |                   |              |              |               |              |              |             
|                                  | Also, no prepayment penalty from 1/1-1/16 in any year.                                                                       |               |                                                             |                   |              |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|(8)                               | Annual rate adjusted each year to equal the sum of Moody's A Corporate Bond Index Daily Rate minus 0.125% per annum, rounded |               |                                                             |                   |              |              |               |              |              |             
|                                  | up to the next highest 1/8 percentage rate, but in no event shall the rate exceed 11.375% prior to 2/25/98.                  |               |                                                             |                   |              |              |               |              |              |             
|                                  | Also, no prepayment penalty from 4/1-4/16 in any year.                                                                       |               |                                                             |                   |              |              |               |              |              |             
|                                  |                                                                                                                              |               |                                                             |                   |              |              |               |              |              |             
|(9)                               | Property  secured with the Salomon Mortgage in the amount of $65.9 million. Interest rate is 7%. Maturity date 10/08.        |               |                                                             |                   |              |              |               |              |              |             



EXHIBIT INDEX

2.1 Agreement and Plan of Reorganization and Merger among Kranzco Realty Trust, KRT Trust, CV Reit, Inc. and Kramont Realty Trust, dated as of December 10,       1999.  (Incorporated by reference to Exhibit 2.1 to the Company's Current       Report on
Form 8-K filed December 14, 1999.)

3.1 Amended and Restated Declaration of Kranzco Realty Trust.  (Incorporated by reference to Exhibit 3.4 of the Company's Registration Statement No.33-49434.)

3.2 Amendment of Amended and Restated Declaration of Trust, dated December 31, 1995. (Incorporated by reference to Exhibit 3.3 to the Company's Annual Report       on Form 10-K for the fiscal year ended December 31, 1996.)

3.3 Amendment No. 2 of Amended and Restated Declaration of Trust, dated June 4, 1997. (Incorporated by reference to Exhibit 4.1(c) of the Company's Registration Statement on Form S-3 filed July 31, 1997.)

3.4 Amended and Restated Bylaws of Kranzco Realty Trust, as amended.

4.1 Specimen certificate for Common Shares of Beneficial Interest.   (Incorporated by reference to Exhibit 4.1 of the Company's Registration Statement No.33-49434.)

4.2 Articles Supplementary for the Series A Increasing Rate Cumulative Convertible Preferred Shares of Beneficial Interest.  (Incorporated by reference to the Company's Report on Form 8-K dated May 4, 1995.)

4.3 Articles Supplementary Classifying 11,155 Shares of Beneficial Interest as Series A-1 Increasing Rate Cumulative Convertible Preferred Shares of Beneficial Interest.  (Incorporated by reference to Exhibit 4.5 of the Company's Registration Statement
on Form S-4 No. 333-18249.)

4.4 Articles Supplementary for the Company's Series B-1 Cumulative Convertible Preferred Shares of Beneficial Interest.  (Incorporated by reference to Exhibit 3.4 of the Company's Registration Statement on Form 8-A dated February 27, 1997.)

4.5 Articles Supplementary for the Company's Series B-2 Cumulative Convertible Preferred Shares of Beneficial Interest.  (Incorporated by reference to Exhibit 4.2 of the Company's Registration Statement on Form S-4 No. 333-18249.)

4.6 Articles Supplementary for the Company's Series C Cumulative Redeemable Preferred Shares of Beneficial Interest.  (Incorporated by reference to Exhibit 4.3 of the Company's Registration Statement on Form S-4 No. 333-18249.)

4.7 Articles Supplementary for the Company's Series D Redeemable Preferred Shares of Beneficial Interest.  (Incorporated by reference to Exhibit 3.5 of the Company's Registration Statement on Form 8-A filed December 10, 1997.)

4.8 Specimen of the Company Series D Redeemable Preferred Shares of Beneficial Interest.  (Incorporated by reference to Exhibit 4.1 of the Company's Registration Statement on Form 8-A filed December 10, 1997.)

4.9 Specimen of the Company's Rights Certificate.  (Incorporated by reference to Exhibit B of Exhibit 10.1 of the Company's Current Report on Form 8-K filed November 12, 1998.)

4.10 Articles Supplementary for the Company's Series E Junior Participating Preferred Shares of Beneficial Interest. (Incorporated by reference to Exhibit A of Exhibit 10.1 of the Company's Current Report on Form 8-K filed November 12, 1998.)

10.1 Kranzco Realty Trust 1992 Employees Share Option Plan, as amended.   (Incorporated by reference to Exhibit 10.10 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1992.)

10.2 Kranzco Realty Trust 1992 Employees Share Option Plan, amended.  (Incorporated by reference to Exhibit 10.11 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1992.)

10.3 Kranzco Realty Trust 1995 Incentive Plan.  (Incorporated by reference to Exhibit 4.4 of the Company's Registration Statement on Form S-8 No. 33-94294.)

10.4 Loan Agreement dated as of February 26, 1997 by and among the Company, the borrowers named therein, Salomon Brothers Realty Corp. and LaSalle National Bank as Collateral Agent.  (Incorporated by reference to Exhibit 10.1 of the Company's Current
Report on Form 8-K filed March 14, 1997.)

10.5 Amended and Restated Global Promissory Note dated September 29, 1998 in the amount of $100,000,000 executed in favor of Salomon Brothers Realty Corp.  (Incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K filed
October 13, 1998.)

10.6 Unlimited Guaranty of Payment dated as of February 26, 1997 issued by Kranzco Realty Trust in favor of Salomon Brothers Realty Corp.  (Incorporated by reference to Exhibit 10.3 of the Company's Current Report on Form 8-K filed March 14, 1997.)

10.7 Amendment to Loan Agreement and Guaranty, dated as of September 29, 1998, by and among the Company, the borrowers named therein, Salomon Brothers Realty Corp. and LaSalle National Bank as Collateral Agent.  (Incorporated by reference to Exhibit
10.1 of the Company's Current Report on Form 8-K filed October 13, 1998.)

10.8 Form of Exemplar Open End Fee and Leasehold Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing made by the Borrowers for the benefit of Salomon Brothers Realty Corp., and filed in Pennsylvania, New York, Connecticut,
Rhode Island, Mississippi, North Carolina, Kentucky, Massachusetts, Minnesota, Arizona, Georgia, and Michigan with respect to Bradford Mall, Bradford, PA; Barn Plaza, Doylestown, Pennsylvania; Circuit City at Mall at Cross County, Yonkers, New York;
Parkway Plaza I, Hamden, Connecticut;  Valley Forge Mall, Phoenixville, Pennsylvania; Wampanoag Plaza, East Providence, Rhode Island; Brookway Village, Brookhaven, Mississippi; Magnolia Plaza, Morganton, North Carolina; Harrodsburg Marketplace,
Harrodsburg, Kentucky; Franklin Center, Chambersburg, Pennsylvania; Ames Center, Raynham, Massachusetts; Baker's Square, Minnetonka, Minnesota; Baker's Square, Roseville, Minnesota; Sinclair Paints, Tucson, Arizona; 30000 Plymouth Road, Livonia, Michigan;
Tower Plaza, Georgia; 1615 E. Shotwell Street, Bainbridge Town Center, Georgia; and Filene's Basement at Valley Fair, 260 West Swedesford Road, Devon, Pennsylvania. (Incorporated by reference to Exhibit 10.4 of the Company's Current Report on Form 8-K
filed March 14, 1997.)

10.9 Trust and Servicing Agreement, dated as of June 18, 1996, among KRT Origination Corp., GE Capital Management Corporation and State Street Bank and Trust Company. (Incorporated by reference to Exhibit 10.43 of the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 1996.)

10.10 Cash Collateral Account, Security, Pledge and Assignment Agreement, dated as of June 18, 1996, among the Borrowers, State Street Bank and Trust Company, as Agent, and KRT Origination Corp., as Lender. (Incorporated by reference to Exhibit 10.44
to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996.)

10.11 Cash Collateral Agreement, dated June 18, 1996, among the Borrowers, and State Street Bank and Trust Company, as Agent. (Incorporated by reference to Exhibit 10.45 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31,
1996)

10.12 $123,700,000.00 Class A Mortgage Note dated June 18, 1996 made by the Borrowers in favor of KRT Origination Corp., as Lender. (Incorporated by reference to Exhibit 10.46 to the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 1996.)

10.13 $20,600,000.00 Class B Mortgage Note dated June 18, 1996 made by the Borrowers in favor of KRT Origination Corp., as Lender. (Incorporated by reference to Exhibit 10.47 to the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 1996.)

10.14 $28,900,000.00 Class C Mortgage Note dated June 18, 1996 made by the Borrowers in favor of KRT Origination Corp., as Lender. (Incorporated by reference to Exhibit 10.48 to the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 1996.)

10.15 $8,500,000.00 Class D Mortgage Note dated June 18, 1996 made by the Borrowers in favor of KRT Origination Corp., as Lender. (Incorporated by reference to Exhibit 10.49 to the Company's Annual Report on Form 10-K for the fiscal year ended December
31, 1996.)

10.16 Form of Indenture of Mortgage, Deed of Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security Deposits made by the Borrowers, as grantor, for the benefit of KRT Origination Corp., as mortgagee,
and filed in Connecticut, Maryland, New Jersey, New York and Pennsylvania with respect to Groton Square in Groton, Connecticut, Manchester Kmart in Manchester, Connecticut, Milford in Milford, Connecticut, Orange in Orange, Connecticut, Fox Run in Prince
Frederick, Maryland, Hillcrest Plaza in Frederick, Maryland, Anneslie in Baltimore, Maryland, Suburban Plaza in Hamilton, New Jersey, Collegetown in Glassboro, New Jersey, Hillcrest Mall in Phillipsburg, New Jersey, The Mall at Cross County in Yonkers,
New York, Highridge Plaza in Yonkers, New York, North Ridge in New Rochelle, New York, Village Square in Larchmont, New York, A&P Mamaroneck in Mamaroneck, New York, Port Washington in Port Washington, New York, Bethlehem in Bethlehem, Pennsylvania,
Whitehall Square in Whitehall, Pennsylvania, Bristol Commerce Park in Bristol, Pennsylvania, Park Hills Plaza in Altoona, Pennsylvania, Barn Plaza in Doylestown, Pennsylvania, Best Plaza in Tredyffrin, Pennsylvania, Bensalem Square in Bensalem,
Pennsylvania, Street Road in Bensalem, Pennsylvania, Pilgrim Gardens in Drexel Hill, Pennsylvania, 69 th Street Plaza in Upper Darby, Pennsylvania and MacArthur Road in Whitehall, Pennsylvania (the "Properties"). (Incorporated by reference to Exhibit
10.50 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996.)

10.17 Form of Unrecorded Indenture of Mortgage, Deed of Trust, Security Agreement, Financing Statement, Fixture Filing and Assignment of Leases, Rents and Security Deposits made by the Borrowers, as grantor, for the benefit of KRT Origination Corp.,
and held in escrow with respect to the Properties located in Maryland and in New York. (Incorporated by reference to Exhibit 10.51 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996.)

10.18 Escrow Agreement made among KRT Origination Corp., the Borrowers and Robinson Silverman Pearce Aronsohn & Berman LLP, as escrow agent, with respect to the unrecorded second mortgages covering the Properties located in New York and Maryland.
(Incorporated by reference to Exhibit 10.52 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996.)

10.19 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and Norman M. Kranzdorf.  (Incorporated by reference to Exhibit 10.1 of the Company's Form 10-Q for the quarter ended June 30, 1997.)

10.20 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and Robert H. Dennis.  (Incorporated by reference to Exhibit 10.2 of the Company's Form 10-Q for the quarter ended June 30, 1997.)

10.21 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and Edmund Barrett.  (Incorporated by reference to Exhibit 10.3 of the Company's Form 10-Q for the quarter ended June 30, 1997.)

10.22 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and Bengt Danielsson.  (Incorporated by reference to Exhibit 10.4 of the Company's Form 10-Q for the quarter ended June 30, 1997.)

10.23 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and Michael Warrington.  (Incorporated by reference to Exhibit 10.5 of the Company's Form 10-Q for the quarter ended June 30, 1997.)

10.24 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and Michael Kranzdorf.  (Incorporated by reference to Exhibit 10.6 of the Company's Form 10-Q for the quarter ended June 30, 1997.)

10.25 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and Peter J. Linneman.  (Incorporated by reference to Exhibit 10.7 of the Company's Form 10-Q for the quarter ended June 30, 1997.)

10.26 Severance Benefits Agreement dated as of March 28, 1997 by and between Kranzco Realty Trust and E. Donald Shapiro.  (Incorporated by reference to Exhibit 10.9 of the Company's Form 10-Q for the quarter ended June 30, 1997.)

10.27 Severance Benefits Agreement dated as of July 30, 1998 by and between Kranzco Realty Trust and Gerald C. Finn.

10.28 Severance Benefits Agreement dated as of July 30, 1998 by and between Kranzco Realty Trust and Bernard J. Korman.

10.29 Agreement dated October 30, 1997 between Kranzco Realty Trust and GP Development Corporation. (Incorporated by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K dated November 25, 1997.)

10.30 Agreement and Plan of Merger dated October 30, 1997 between Kranzco Realty Trust, GP Development Corporation, the shareholders of GP Development Corporation and KR Atlanta, Inc. (Incorporated by reference to Exhibit 2.2 of the Company's Current
Report on Form 8-K dated November 25, 1997.)

10.31 Mortgage Note for $6,700,000.00, dated as of October 5, 1990, from Holcomb Bridge Partners, L.P., a Georgia limited partnership ("Holcomb"), in favor of Allstate Life Insurance Company ("Allstate") (relating to Holcomb Bridge Crossing).
(Incorporated by reference to Exhibit 2.3 of the Company's Current Report on Form 8-K dated November 25, 1997.)

10.32 Modification of Mortgage Note, dated as of October 31, 1995, between Holcomb and Harris Trust and Savings Bank ("Harris Trust") (relating to Holcomb Bridge Crossing). (Incorporated by reference to Exhibit 2.4 of the Company's Current Report on
Form 8-K dated November 25, 1997.)

10.33 Deed to Secure Debt, Assignment of Leases, Rents and Contracts, Security Agreement and Fixture Filing ("Deed to Secure Debt") from Holcomb to Allstate, dated as of October 5, 1990 (relating to Holcomb Bridge Crossing).  (Incorporated by reference
to Exhibit 2.5 of the Company's Current Report on Form 8-K dated November 25, 1997.)

10.34 Modification of Deed to Secure Debt between Holcomb and Harris Trust, dated as of October 31, 1995 (relating to Holcomb Bridge Crossing).  (Incorporated by reference to Exhibit 2.6 of the Company's Current Report on Form 8-K dated November 25,
1997.)

10.35 Real Estate Note for $3,725,000.00, dated as of August 6, 1987, from West Stewarts Mill Associates, Ltd., a Georgia limited partnership ("West Stewarts"), in favor of Confederation Life Insurance Company, a mutual insurance company incorporated
in Canada ("Confederation"), first amendment thereto dated as of November 27, 1987, second amendment thereto dated as of November 1, 1993, third amendment thereto dated as of November 1, 1993 and fourth amendment thereto dated as of February 21, 1995
(relating to Park Plaza).  (Incorporated by reference to Exhibit 2.7 of the Company's Current Report on Form 8-K dated November 25, 1997.)

10.36 Deed to Secure Debt and Security Agreement between West Stewarts and Confederation,dated as of August 6, 1987, first amendment thereto dated as of November 27, 1987 and second amendment thereto dated as of November 1, 1993 (relating to Park
Plaza).  (Incorporated by reference to Exhibit 2.8 of the Company's Current Report on Form 8-K dated November 25, 1997.)

10.37 Escrow Agreement, dated as of November 1, 1993, between Confederation and West Stewarts. (Incorporated by reference to Exhibit 2.9 of the Company's Current Report on Form 8-K dated November 25, 1997.)

10.38 Promissory Note for $10,670,000.00, dated as of July 31, 1996, from Mableton Village Associates, L.L.C., a Georgia limited liability company ("Mableton Village"), in favor of Lehman Brothers Holdings, Inc. d/b/a Lehman Capital ("Lehman")
(relating to The Village at Mableton). (Incorporated by reference to Exhibit 2.10 of the Company's Current Report on Form 8-K dated November 25, 1997.)

10.39 Deed to Secure Debt and Security Agreement, dated as of July 31, 1996, between Mableton Village and Lehman (relating to The Village at Mableton). (Incorporated by reference to Exhibit 2.11 of the Company's Current Report on Form 8-K dated
November 25, 1997.)

10.40 Sales Contract dated June 26, 1998 by and among Kranzco Realty Trust, a Maryland real estate investment trust, and Europco Property Investors II, Ltd., a Georgia limited partnership; Europco Property Investors III, Ltd., a Georgia limited
partnership; Europco Property Investors IV, Ltd., a Georgia limited partnership; Secured Properties Investors V, L.P., a Georgia limited partnership; Secured Properties Investors VIII, L.P., a Georgia limited partnership; Secured Properties Investors IX,
L.P., a Georgia limited partnership; and Tifton Partners, L.P., a Georgia limited partnership.  (Incorporated by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K dated June 26, 1998, filed July 16, 1998.)

10.41 Fixed Rate Note, dated September 29, 1998, made by the Borrowers named therein in favor of Salomon Brothers Realty Corp. (Incorporated by reference to Exhibit 10.38 of the Company's Quarterly Report on Form 10-Q for the quarter ended September
30, 1998.)

10.42 Guaranty, dated as of September 29, 1998, made by and among Kranzco Realty Trust, for the benefit of Salomon Brothers Realty Corp. (Incorporated by reference to Exhibit 10.39 of the Company's Quarterly Report on Form 10-Q for the quarter ended
September 30, 1998.)

10.43 Form of Mortgage/Deed of Trust/Deed to secure Debt and Security Agreement, dated September 29, 1998, made by the Borrowers named therein for the benefit of Salomon Brothers Realty Corp. and filed in Florida, Georgia, Ohio, Tennessee, and Virginia
with respect to Village Oaks, Pensacola, Florida; Vidalia Wal-Mart Center, Vidalia, Georgia; Summerville Wal-Mart Center, Summerville, Georgia; Tifton Corners, Tifton, Georgia; Douglasville Crossing, Douglasville, Georgia; Snellville Oaks, Snellville,
Georgia; Pickaway Crossing, Circleville, Ohio; Meeting Square, Jefferson City, Tennessee; and Statler Crossing, Staunton, Virginia.  (Incorporated by reference to Exhibit 10.40 of the Company's Quarterly Report on Form 10-Q for the quarter ended September
30, 1998.)

10.44 Rights Agreement dated as of November 10, 1998 between Kranzco Realty Trust and First Union National Bank, as Rights Agent.  The Rights Agreement includes as Exhibit A the form of Articles Supplementary for the Preferred Shares, as Exhibit B the
form of Right Certificate and as Exhibit C the form of Summary of Rights to Purchase Preferred Shares. (Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed November 12, 1998).

21 Subsidiaries of Kranzco Realty Trust.

23 Consent of Arthur Andersen LLP.

27 Financial Data schedule.





|Exhibit 21.                                                                                                                                                                                    | Subsidiaries of Kranzco Realty Trust                                          |                                     |                       
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------- | ----------------------------------- | ----------------------
|                                                                                                                                                                                               |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               | OWNERSHIP                           |                       
|SUBSIDIARY                                                                                                                                                                                     | DATE FORMED                                                                   | PERCENTAGE                          | TYPE                  
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KRT Property Holdings, Inc.                                                                                                                                                                    | Nov-92                                                                        | 100%                                | MD corp               
|Parkway Plaza II Corp.                                                                                                                                                                         | Nov-92                                                                        | 100%                                | MD corp               
|KR Trust One, Inc.                                                                                                                                                                             | Jun-93                                                                        | 100%                                | MD corp               
|Lilac Connecticut Corp.                                                                                                                                                                        | Nov-92                                                                        | 100%                                | CT corp.              
|Lilac New York Corp.                                                                                                                                                                           | Nov-92                                                                        | 100%                                | NY corp.              
|KRT Union Corp.                                                                                                                                                                                | Oct-96                                                                        | 100%                                | DE corp               
|KR Hillcrest Mall, Inc.                                                                                                                                                                        | Jun-96                                                                        | 100%                                | NJ corp.              
|KR Collegetown, Inc.                                                                                                                                                                           | Jun-96                                                                        | 100%                                | NJ corp.              
|KR Orange, Inc.                                                                                                                                                                                | Jun-96                                                                        | 100%                                | CT corp.              
|KR Brookhaven, Inc.                                                                                                                                                                            | Feb-97                                                                        | 100%                                | MS corp               
|KR Harrodsburg, Inc.                                                                                                                                                                           | Feb-97                                                                        | 100%                                | KY corp               
|KR Minnetonka, Inc.                                                                                                                                                                            | Feb-97                                                                        | 100%                                | MN corp.              
|Kranzco Raynham, Inc.                                                                                                                                                                          | Feb-97                                                                        | 100%                                | MA corp.              
|KR Roseville, Inc.                                                                                                                                                                             | Feb-97                                                                        | 100%                                | MN corp.              
|KR Tucson, Inc.                                                                                                                                                                                | Feb-97                                                                        | 100%                                | AZ corp.              
|KR Bainbridge, Inc.                                                                                                                                                                            | Feb-97                                                                        | 100%                                | GA corp.              
|KR Cary, Inc.                                                                                                                                                                                  | Feb-97                                                                        | 100%                                | NC corp.              
|KR Morganton, Inc.                                                                                                                                                                             | Feb-97                                                                        | 100%                                | NC corp.              
|KR Columbia, Inc.                                                                                                                                                                              | Feb-97                                                                        | 100%                                | SC corp.              
|KR Columbus, Inc.                                                                                                                                                                              | Feb-97                                                                        | 100%                                | MS corp.              
|KR Flint, Inc.                                                                                                                                                                                 | Feb-97                                                                        | 100%                                | MI corp.              
|KR Livonia, Inc.                                                                                                                                                                               | Feb-97                                                                        | 100%                                | MI corp.              
|KR Richmond, Inc.                                                                                                                                                                              | Feb-97                                                                        | 100%                                | Va corp.              
|KR Spartanburg, Inc.                                                                                                                                                                           | Feb-97                                                                        | 100%                                | SC corp.              
|KR Parkway Plaza I Corp.                                                                                                                                                                       | Feb-97                                                                        | 100%                                | CT corp.              
|KR Wampanoag, Inc.                                                                                                                                                                             | Feb-97                                                                        | 100%                                | RI corp.              
|KR Atlanta, Inc.                                                                                                                                                                               | Nov-97                                                                        | 100%                                | GA corp.              
|KR Holcomb, Inc.                                                                                                                                                                               | Nov-97                                                                        | 100%                                | GA corp.              
|KR Park Plaza, Inc.                                                                                                                                                                            | Nov-97                                                                        | 100%                                | GA corp.              
|KR Tower, Inc.                                                                                                                                                                                 | Nov-97                                                                        | 100%                                | GA corp.              
|KR Mableton, Inc.                                                                                                                                                                              | Nov-97                                                                        | 100%                                | GA corp.              
|KR Circleville, Inc.                                                                                                                                                                           | Aug-98                                                                        | 100%                                | OH corp.              
|KR Douglasville, Inc.                                                                                                                                                                          | Aug-98                                                                        | 100%                                | GA corp.              
|KR Pensacola, Inc.                                                                                                                                                                             | Aug-98                                                                        | 100%                                | FL corp.              
|KR Pensacola II, Inc.                                                                                                                                                                          | Dec-98                                                                        | 100%                                | FL corp.              
|KR Snellville, Inc.                                                                                                                                                                            | Aug-98                                                                        | 100%                                | GA corp.              
|KR Staunton, Inc.                                                                                                                                                                              | Aug-98                                                                        | 100%                                | VA corp.              
|KR Summerville, Inc.                                                                                                                                                                           | Aug-98                                                                        | 100%                                | GA corp.              
|KR Tifton, Inc.                                                                                                                                                                                | Aug-98                                                                        | 100%                                | GA corp.              
|KR Vidalia, Inc.                                                                                                                                                                               | Aug-98                                                                        | 100%                                | GA corp.              
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Development, Inc.                                                                                                                                                                           | May-97                                                                        | 100%                                | PA corp.              
|KR Development, L.P.                                                                                                                                                                           | May-97                                                                        | 99%                                 | PA ltd. partnership   
|(KR Development, Inc. is 1% General Partner in Limited Partnership)                                                                                                                            |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Best Associates, Inc.                                                                                                                                                                       | Sep-93                                                                        | 100%                                | PA corp.              
|KR Best Associates, L.P.                                                                                                                                                                       | Sep-93                                                                        | 99%                                 | PA ltd. partnership   
|(KR Best Associates, Inc. is 1% General Partner in Limited Partnership)                                                                                                                        |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Street, Inc.                                                                                                                                                                                | Sep-93                                                                        | 100%                                | PA corp.              
|KR Street Associates, L.P.                                                                                                                                                                     | Sep-93                                                                        | 99%                                 | PA ltd. partnership   
|                                                                                                                                                                                               |                                                                               |                                     |                       
|(KR Street, Inc. is 1% General Partner in Limited Partnership)                                                                                                                                 |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR MacArthur, Inc.                                                                                                                                                                             | Sep-93                                                                        | 100%                                | PA corp.              
|KR MacArthur Associates, L.P.                                                                                                                                                                  | Sep-93                                                                        | 99%                                 | PA ltd. partnership   
|                                                                                                                                                                                               |                                                                               |                                     |                       
|(KR MacArthur, Inc. is 1% General Partner in Limited Partnership)                                                                                                                              |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Manchester, Inc.                                                                                                                                                                            | Apr-94                                                                        | 100%                                | CT corp.              
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Suburban, Inc.                                                                                                                                                                              | Jan-94                                                                        | 100%                                | NJ corp.              
|KR Suburban, LP                                                                                                                                                                                | Jan-94                                                                        | 99%                                 | NJ limited partnership
|(KR Suburban, Inc. is 1% General Partner in Limited Partnership)                                                                                                                               |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR 69th Street, Inc.                                                                                                                                                                           | Jan-94                                                                        | 100%                                | PA corp.              
|KR 69th Street, LP                                                                                                                                                                             | Jan-94                                                                        | 99%                                 | PA limited partnership
|                                                                                                                                                                                               |                                                                               |                                     |                       
|(KR 69th Street, Inc. is 1% General Partner in Limited Partnership)                                                                                                                            |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Fox Run, Inc.                                                                                                                                                                               | Jul-94                                                                        | 100%                                | MD corp.              
|Fox Run, Limited Partnership                                                                                                                                                                   | Acquired 7/94                                                                 | 99%                                 | AL limited partnership
|                                                                                                                                                                                               |                                                                               |                                     |                       
|(KR Fox Run, Inc. is 1% General Partner)                                                                                                                                                       |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Marumsco, Inc.                                                                                                                                                                              | Mar-95                                                                        | 100%                                | MD corp.              
|KR Marumsco II, Inc.                                                                                                                                                                           | Apr-95                                                                        | 100%                                | MD corp.              
|(Note: KR Marumsco, Inc. owns 99% GP interest and KR Marumsco II, Inc. owns 1% GP interest in Marumsco-Jefferson Joint Venture, a VA general partnership - purchased by the two corps in 4/95) |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Culpeper, Inc.                                                                                                                                                                              | Mar-95                                                                        | 100%                                | MD corp.              
|KR Culpeper II, Inc.                                                                                                                                                                           | Apr-95                                                                        | 100%                                | MD corp.              
|(Note: KR Culpeper, Inc. owns 99% GP interest and KR Culpeper II, Inc. owns 1% GP interest in Culpeper Shopping Center                                                                         | Joint Venture, a MD general partnership - purchased by the two corps in 4/95) |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Campus, Inc.                                                                                                                                                                                | Mar-95                                                                        | 100%                                | MD corp.              
|KR Campus II, Inc.                                                                                                                                                                             | Apr-95                                                                        | 100%                                | MD corp.              
|(Note: KR Campus, Inc. owns 99% GP interest and KR Campus II, Inc. owns 1% GP interest in Campus Village Shopping Center                                                                       | Joint Venture, a MD general partnership - purchased by the two corps in 4/95) |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Hillcrest, Inc.                                                                                                                                                                             | Mar-95                                                                        | 100%                                | MD corp.              
|Hillcrest Plaza Limited Ptnrshp                                                                                                                                                                | Acquired 4/95                                                                 | 99% LP                              | MD limited partnership
|                                                                                                                                                                                               |                                                                               |                                     |                       
|(KR Hillcrest, Inc. is 1% general partner in Hillcrest Plaza Limited Partnership)                                                                                                              |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Coral Hills,  Inc.                                                                                                                                                                          | Mar-95                                                                        | 100%                                | MD corp.              
|Coral Hills Assoc.Limited Ptnrshp                                                                                                                                                              | Acquired 4/95                                                                 | 99% LP                              | MD limited partnership
|                                                                                                                                                                                               |                                                                               |                                     |                       
|(KR Coral Hills, Inc. is 1% general partner in Coral Hills Associates Limited Partnership)                                                                                                     |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Pilgrim, Inc                                                                                                                                                                                | Jun-96                                                                        | 100%                                | PA corp.              
|KR Pilgrim, LP                                                                                                                                                                                 | Jun-96                                                                        | 99%                                 | PA LP                 
|(Note: KR Pilgrim, Inc. is 1% General Partner in limited partnership)                                                                                                                          |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Bradford Mall, Inc.                                                                                                                                                                         | Jun-96                                                                        | 100%                                | PA corp.              
|KR Bradford Mall, LP                                                                                                                                                                           | Jun-96                                                                        | 99%                                 | PA LP                 
|(Note: KR Bradford, Inc. is 1% General Partner in limited partnership)                                                                                                                         |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Valley Forge, Inc.                                                                                                                                                                          | Jun-96                                                                        | 100%                                | PA corp.              
|KR Valley Forge, LP                                                                                                                                                                            | Jun-96                                                                        | 99%                                 | PA LP                 
|(Note: KR Valley Froge, Inc. is 1% General Partner in limited partnership)                                                                                                                     |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|**KR Barn, Inc.                                                                                                                                                                                | 2/21/97                                                                       | 100%                                | PA corp.              
|KR Barn, L.P.                                                                                                                                                                                  | 2/21/97                                                                       | 99%                                 | PA LP                 
|(Note: KR Barn, Inc. is 1% General Partner in limited partnership - ** NOTE THAT THIS ENTITY OWNS ONLY THE CINEMA PORTION OF THE BARN PROPERTY)                                                |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Jefferson City GP, Inc.                                                                                                                                                                     | 8/13/98                                                                       | 100%                                | TN corp.              
|(Note: KR Jefferson City GP (TN corp.), Inc. owns a 1% GP in KR Jefferson City, LP and KR Jefferson City LP, Inc. (DE corp.) owns a 99% LP in KR Jefferson City, LP)                           |                                                                               |                                     |                       
|                                                                                                                                                                                               |                                                                               |                                     |                       
|KR Northpark, Inc.                                                                                                                                                                             | Nov-97                                                                        | 100%                                | GA corp.              
|Northpark Associates, L.P. (Cobb)                                                                                                                                                              | Nov-97                                                                        | 95% of LP owned by corporate entity | GA LP                 

---



Exhibit 23.  Consent of Arthur Andersen LLP





CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS







As independent public accountants, we hereby consent to the incorporation of our report dated March 3, 2000 included in this Form 10-K, into the Companys previously filed: Form S-3 Registration Statements File Nos. 33-75554 and 33-72076 and Form
S-8 Registration Statements File Nos. 33-56990 and 33-94294.



ARTHUR ANDERSEN LLP



Philadelphia, Pennsylvania

March 17, 2000

---



|<FISCAL-YEAR-END>            | DEC-31-1999
|---------------------------- | -----------
|<PERIOD-START>               | JAN-01-1999
|<PERIOD-END>                 | DEC-31-1999
|<PERIOD-TYPE>                | 12-MOS     
|<CASH>                       | 5,020,000  
|<SECURITIES>                 | 0          
|<RECEIVABLES>                | 9,788,000  
|<ALLOWANCES>                 | 2,204,000  
|<INVENTORY>                  | 0          
|<CURRENT-ASSETS>             | 2,984,000  
|<PP&E>                       | 584,261,000
|<DEPRECIATION>               | 73,940,000 
|<TOTAL-ASSETS>               | 535,625,000
|<CURRENT-LIABILITIES>        | 9,163,000  
|<BONDS>                      | 353,208,000
|<COMMON>                     | 111,616,000
|<PREFERRED-MANDATORY>        | 0          
|<PREFERRED>                  | 60,088,000 
|<OTHER-SE>                   | 0          
|<TOTAL-LIABILITY-AND-EQUITY> | 535,625,000
|<SALES>                      | 0          
|<TOTAL-REVENUES>             | 78,637,000 
|<CGS>                        | 0          
|<TOTAL-COSTS>                | 47,109,000 
|<OTHER-EXPENSES>             | 0          
|<LOSS-PROVISION>             | 0          
|<INTEREST-EXPENSE>           | 27,236,000 
|<INCOME-PRETAX>              | 0          
|<INCOME-TAX>                 | 0          
|<INCOME-CONTINUING>          | 0          
|<DISCONTINUED>               | 0          
|<EXTRAORDINARY>              | 0          
|<CHANGES>                    | 0          
|<NET-INCOME>                 | 4,292,000  
|<EPS-PRIMARY>                | 0.41       
|<EPS-DILUTED>                | 0.41