| Maryland(State or other jurisdiction ofincorporation or organization)                              | 38-3148187 (I.R.S. EmployerIdentification No.) |
|----------------------------------------------------------------------------------------------------|-----------------------------------------------------|
|                                                                                               |                                                |
| 31850 Northwestern HighwayFarmington Hills, Michigan (Address of principal executive offices) | 48334(Zip code)                                     |
|                                                                                               |                                                |

| Title of each classCommon Stock, $.0001 par value | Name of each exchange on which registeredNew York Stock Exchange |
|---------------------------------------------------|------------------------------------------------------------------|

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| Part I     |
|------------|
|       |
| Item 1.    | Business | 1 |
|       |   |   |
| Item 1A.   | Risk Factors | 5 |
|       |   |   |
| Item 1B.   | Unresolved Staff Comments | 18 |
|       |   |   |
| Item 2.    | Properties | 18 |
|       |   |   |
| Item 3.    | Legal Proceedings | 26 |
|       |   |   |
| Item 4.    | [Removed and Reserved] | 26 |
|       |   |   |
| Part II    |
|       |
| Item 5.    | Market for Registrant’s Common Equity,  Related Stockholder Matters and Issuer Purchases of  Equity Securities | 26 |
|       |   |   |
| Item 6.    | Selected Financial Data | 28 |
|       |   |   |
| Item 7.    | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 29 |
|       |   |   |
| Item 7A    | Quantitative and Qualitative Disclosures about Market Risk | 35 |
|       |   |   |
| Item 8     | Financial Statements and Supplementary Data | 36 |
|       |   |   |
| Item 9     | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure | 36 |
|       |   |   |
| Item 9A    | Controls and Procedures | 36 |
|       |   |   |
| Item 9B    | Other Information | 37 |
|       |   |   |
| Part III   |
|       |
| Item 10.   | Directors, Executive Officers and Corporate Governance | 37 |
|       |   |   |
| Item 11.   | Executive Compensation | 37 |
|       |   |   |
| Item 12.   | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 37 |
|       |   |   |
| Item 13.   | Certain Relationships and Related Transactions, and Director Independence | 38 |
|       |   |   |
| Item 14.   | Principal Accountant Fees and Services | 38 |
|       |   |   |
| Part IV    |
|       |
| Item 15.   | Exhibits and Financial Statement Schedules | 38 |
|       |   |   |
| Signatures | 42 |

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| ITEM 1A. | RISK FACTORS |
|----------|--------------|

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|   | · | approximately 31% of our annualized base rent was from Walgreen; |
|--------|--------|------------------------------------------------------------------|

|   | · | approximately 20% of our annualized base rent was from Borders; and |
|--------|--------|---------------------------------------------------------------------|

|   | · | approximately 11% of our annualized base rent was from Kmart. |
|--------|--------|---------------------------------------------------------------|

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

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

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

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|   | · | changes in general or local economic conditions; |
|--------|--------|--------------------------------------------------|

|   | · | the attractiveness of our properties to potential tenants; |
|--------|--------|------------------------------------------------------------|

|   | · | changes in supply of or demand for similar or competing properties in an area; |
|--------|--------|--------------------------------------------------------------------------------|

|   | · | bankruptcies, financial difficulties or lease defaults by our tenants; |
|--------|--------|------------------------------------------------------------------------|

|   | · | changes in operating costs and expense and our ability to control rents; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | our ability to lease properties at favorable rental rates; |
|--------|--------|------------------------------------------------------------|

|   | · | our ability to sell a property when we desire to do so at a favorable price; |
|--------|--------|------------------------------------------------------------------------------|

|   | · | unanticipated changes in costs associated with known adverse environmental conditions or retained liabilities for such conditions; |
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|   | · | changes in or increased costs of compliance with governmental rules, regulations and fiscal policies, including changes in tax, real estate, environmental and zoning laws, and our potential liability thereunder; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | unanticipated expenditures to comply with the Americans with Disabilities Act and other similar regulations. |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

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|   | · | As owner we may have to pay for property damage and for investigation and clean-up costs incurred in connection with the contamination. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The law may impose clean-up responsibility and liability regardless of whether the owner or operator knew of or caused the contamination. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Even if more than one person is responsible for the contamination, each person who shares legal liability under environmental laws may be held responsible for all of the clean-up costs. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Governmental entities and third parties may sue the owner or operator of a contaminated site for damages and costs. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

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|   | · | “business combination” provisions that, subject to limitations, prohibit certain business combinations between us and an “interested stockholder” (defined generally as any person who beneficially owns 10% or more of the voting power of our shares or an affiliate thereof) for five years after the most recent date on which the stockholder becomes an interested stockholder and thereafter would require the recommendation of our board of directors and impose special appraisal rights and special stockholder voting requirements on these combinations; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | “control share” provisions that provide that “control shares” of our company (defined as shares which, when aggregated with other shares controlled by the stockholder, entitle the stockholder to exercise one of three increasing ranges of voting power in electing directors) acquired in a “control share acquisition” (defined as the direct or indirect acquisition of ownership or control of “control shares”) have no voting rights except to the extent approved by our stockholders by the affirmative vote of at least two-thirds of all the votes entitled to be cast on the matter, excluding all interested shares. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | change our investment and financing policies and our policies with respect to certain other activities, including our growth, debt capitalization, distributions, REIT status and investment and operating policies; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | within the limits provided in our charter, prevent the ownership, transfer and/or accumulation of shares in order to protect our status as a REIT or for any other reason deemed to be in the best interests of us and our stockholders; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | issue additional shares without obtaining stockholder approval, which could dilute the ownership of our then-current stockholders; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | · | classify or reclassify any unissued shares of our common stock or preferred stock and set the preferences, rights and other terms of such classified or reclassified shares, without obtaining stockholder approval; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | employ and compensate affiliates; |
|--------|--------|-----------------------------------|

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|   | · | direct our resources toward investments that do not ultimately appreciate over time; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | change creditworthiness standards with respect to third-party tenants; and |
|--------|--------|----------------------------------------------------------------------------|

|   | · | determine that it is no longer in our best interests to attempt to qualify, or to continue to qualify, as a REIT. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | our financial condition and operating performance and the performance of other similar companies; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | actual or anticipated variations in our quarterly results of operations; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | the extent of investor interest in our company, real estate generally or commercial real estate specifically; |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | · | the reputation of REITs generally and the attractiveness of their equity securities in comparison to other equity securities, including securities issued by other real estate companies, and fixed income securities; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes in expectations of future financial performance or changes in estimates of securities analysts; |
|--------|--------|---------------------------------------------------------------------------------------------------------|

|   | · | fluctuations in stock market prices and volumes; and |
|--------|--------|------------------------------------------------------|

|   | · | announcements by us or our competitors of acquisitions, investments or strategic alliances. |
|--------|--------|---------------------------------------------------------------------------------------------|

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|   | · | We would not be allowed a deduction for dividends paid to stockholders in computing our taxable income and would be subject to federal income tax at regular corporate rates. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We could be subject to the federal alternative minimum tax and possibly increased state and local taxes. |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | Unless we are entitled to relief under statutory provisions, we could not elect to be treated as a REIT for four taxable years following the year in which we were disqualified. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM 1B. | UNRESOLVED STAFF COMMENTS |
|----------|---------------------------|

| ITEM 2. | PROPERTIES |
|---------|------------|

| Tenant(s)                                  |   | Location                      |   | Cost |             |
|--------------------------------------------|--------|-------------------------------|--------|------|------------------|
| Walgreen (drug store)                      |   | Ann Arbor, Michigan           |   | $    | 3.1 million |   |
| Walgreen (drug store)                      |   | Atlantic Beach, Florida       |   | $    | 3.6 million |   |
| Walgreen (drug store)                      |   | St. Augustine Shores, Florida |   | $    | 3.7 million |   |
| Dick’s Sporting Goods (retail store) |   | Boynton Beach, Florida        |   | $    | 3.7 million      |   |

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| Tenant(s)                       |   | Location                    |   | Cost |             |
|---------------------------------|--------|-----------------------------|--------|------|------------------|
| CVS Caremark (drug store)       |   | Atchison, Kansas            |   | $    | 4.2 million |   |
| CVS Caremark (drug store)       |   | Johnstown, Ohio             |   | $    | 3.5 million      |   |
| CVS Caremark (drug store)       |   | Lake in the Hills, Illinois |   | $    | 5.8 million      |   |
| PNC Bank (retail bank)          |   | Antioch, Illinois           |   | $    | 2.8 million      |   |
| Lowes (retail store)            |   | Concord, North Carolina     |   | $    | 9.9 million      |   |
| CVS Caremark (drug store)       |   | Mansfield, Connecticut      |   | $    | 3.3 million      |   |
| Kohl’s (department store) |   | Tallahassee, Florida        |   | $    | 2.2 million      |   |
| JP Morgan Chase (retail bank)   |   | Spring Grove, Illinois      |   | $    | 2.9 million      |   |
| Walgreen (drug store)           |   | Shelby Township, Michigan   |   | $    | 2.2 million      |   |

| Tenant(s)             |   | Location                  |   | Sales price |             |
|-----------------------|--------|---------------------------|--------|-------------|------------------|
| Borders (book store)  |   | Santa Barbara, California |   | $           | 9.8 million |   |
| Walgreen (drug store) |   | Marion Oaks, Florida      |   | $           | 4.1 million      |   |
| Borders (book store)  |   | Aventura, Florida         |   | $           | .5 million       |   |

|     |   | Numberof Leases |   |   | Annualized BaseRent as ofDecember 31, 2010 |       |   | Percent of TotalAnnualized Base Rent asof December 31, 2010 |   |
|----------|--------|----------------------|--------|--------|---------------------------------------------------------------------|------------|--------|-----------------------------------------------------------------------------------------------------|--------|
| Walgreen |   | 30                   |   |   | $                                                                   | 11,299,499 |   |                                                                                                |   | 31 | % |
| Borders  |   | 14                   |   |   |                                                                | 7,357,947  |   |                                                                                                |   | 20 |   |
| Kmart    |   | 12                   |   |   |                                                                | 3,847,911  |   |                                                                                                |   | 11 |   |
| Total    |   | 56                   |   |   | $                                                                   | 22,505,357 |   |                                                                                                |   | 62 | % |

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| State          |   | NumberofProperties |   | Total GLA(Sq. feet) |      |   | Percent of Total GLALeased on December 31,2010 |   |
|----------------|--------|--------------------|--------|-------------------------------|-----------|--------|------------------------------------------------------------------------------|--------|
| Connecticut    |   | 1                  |   |                          | 10,125    |   |                                                                         |   | 100 | % |
| Florida        |   | 8                  |   |                          | 396,648   |   |                                                                         |   | 99 | % |
| Georgia        |   | 1                  |   |                          | 14,820    |   |                                                                         |   | 100 | % |
| Illinois       |   | 4                  |   |                          | 40,740    |   |                                                                         |   | 100 | % |
| Indiana        |   | 2                  |   |                          | 15,844    |   |                                                                         |   | 100 | % |
| Kansas         |   | 3                  |   |                          | 58,225    |   |                                                                         |   | 100 | % |
| Kentucky       |   | 1                  |   |                          | 116,212   |   |                                                                         |   | 100 | % |
| Maryland       |   | 2                  |   |                          | 53,503    |   |                                                                         |   | 100 | % |
| Michigan       |   | 43                 |   |                          | 2,178,811 |   |                                                                         |   | 99 | % |
| Nebraska       |   | 2                  |   |                          | 61,500    |   |                                                                         |   | 100 | % |
| New Jersey     |   | 1                  |   |                          | 10,118    |   |                                                                         |   | 100 | % |
| New York       |   | 2                  |   |                          | 27,626    |   |                                                                         |   | 100 | % |
| North Carolina |   | 1                  |   |                          | 170,393   |   |                                                                         |   | 100 | % |
| Ohio           |   | 2                  |   |                          | 34,225    |   |                                                                         |   | 100 | % |
| Oklahoma (1)   |   | 4                  |   |                          | 99,634    |   |                                                                         |   | 100 | % |
| Pennsylvania   |   | 1                  |   |                          | 37,004    |   |                                                                         |   | 100 | % |
| Wisconsin      |   | 3                  |   |                          | 523,036   |   |                                                                         |   | 98 | % |
| Total/Average  |   | 81                 |   |                          | 3,848,464 |   |                                                                         |   | 99 | % |

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|                 |   |                         |   | December 31, 2010   |      |
|----------------------|--------|------------------------------|--------|-------------------------------|-----------|
|                 |   |                         |   | Gross Leasable Area |      |   | Annualized Base Rent |   |
| Expiration Year |   | Numberof LeasesExpiring |   | SquareFootage                 |      |   | Percentof Total |   |   | Amount |   |   | Percentof Total |   |
| 2011                 |   | 12                           |   |                          | 111,563   |   |   |   | 3.0 | % |   | $ | 781,944 |   |   |   | 2.1 | % |
| 2012                 |   | 29                           |   |                          | 281,356   |   |   |   | 7.5 | % |   |   | 1,457,922 |   |   |   | 4.0 | % |
| 2013                 |   | 21                           |   |                          | 330,063   |   |   |   | 8.8 | % |   |   | 1,805,397 |   |   |   | 5.0 | % |
| 2014                 |   | 15                           |   |                          | 213,570   |   |   |   | 5.7 | % |   |   | 1,162,160 |   |   |   | 3.2 | % |
| 2015                 |   | 21                           |   |                          | 827,135   |   |   |   | 21.9 | % |   |   | 4,464,549 |   |   |   | 12.3 | % |
| 2016                 |   | 13                           |   |                          | 150,641   |   |   |   | 4.0 | % |   |   | 2,138,456 |   |   |   | 5.9 | % |
| 2017                 |   | 5                            |   |                          | 38,944    |   |   |   | 1.0 | % |   |   | 371,995 |   |   |   | 1.0 | % |
| 2018                 |   | 11                           |   |                          | 200,235   |   |   |   | 5.3 | % |   |   | 3,392,318 |   |   |   | 9.3 | % |
| 2019                 |   | 6                            |   |                          | 70,170    |   |   |   | 1.9 | % |   |   | 1,741,879 |   |   |   | 4.8 | % |
| 2020                 |   | 6                            |   |                          | 170,718   |   |   |   | 4.5 | % |   |   | 2,068,701 |   |   |   | 5.7 | % |
| Thereafter           |   | 47                           |   |                          | 1,374,254 |   |   |   | 36.4 | % |   |   | 17,015,402 |   |   |   | 46.7 | % |
| Total                |   | 186                          |   |                          | 3,768,649 |   |   |   | 100.0 | % |   | $ | 36,400,723 |   |   |   | 100.0 | % |

| Type of Tenant |   | AnnualizedBase Rent |       |   | Percent ofAnnualizedBase Rent |   |
|--------------------------|--------|--------------------------|------------|--------|-----------------------------------------|--------|
| National(1)              |   | $                        | 32,556,399 |   |                                    |   | 89 | % |
| Regional(2)              |   |                     | 2,720,342  |   |                                    |   | 8 |   |
| Local                    |   |                     | 1,123,982  |   |                                    |   | 3 |   |
| Total                    |   | $                        | 36,400,723 |   |                                    |   | 100 | % |

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| (1) | Includes the following national tenants:  Walgreen, Borders, Kmart, Wal-Mart, CVS, Lowe’s, Dick’s Sporting Goods, PNC Bank, Kohl’s, Fashion Bug, Rite Aid, JC Penney, Avco Financial, GNC Group, Radio Shack, Super Value, Maurices, Payless Shoes, Blockbuster Video, Family Dollar, H&R Block, Sally Beauty, Jo Ann Fabrics, Staples, Best Buy, Dollar Tree, TGI Friday’s and Pier 1 Imports. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (2) | Includes the following regional tenants: Roundy’s Foods, Meijer, Dunham’s Sports, Christopher Banks and Beall’s Department Stores. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

| Tenant                                   |   | Location              |   | YearCompleted/Expanded |      |   | TotalGLA |   | Lease Expiration(2)(Option expiration) |
|------------------------------------------|--------|-----------------------|--------|------------------------|-----------|--------|----------|--------|--------------------------------------------------|
| Borders                                  |   | Columbus, OH          | (10)   |                   | 1996      |   |     |   | 21,000                                           |   | Jan 23, 2016 (2036) |
| Borders and TGI Fridays                  |   | Monroeville, PA       | (10)   |                   | 1996      |   |     |   | 37,004                                           |   | Nov 8, 2016 (2036) |
| Borders                                  |   | Norman, OK            |   |                   | 1996      |   |     |   | 24,641                                           |   | Sep 20, 2016 (2036) |
| Borders and Chili’s  (8) |   | Omaha, NE             |   |                   | 1995      |   |     |   | 36,500                                           |   | Nov 3, 2015 (2035) |
| Borders (8)                              |   | Wichita, KS           | (10)   |                   | 1995      |   |     |   | 25,000                                           |   | Nov 10, 2015 (2035) |
| Borders (8)                              |   | Lawrence, KS          | (10)   |                   | 1997      |   |     |   | 20,000                                           |   | Oct 16, 2022 (2042) |
| Borders                                  |   | Tulsa, OK             | (9)    |                   | 1998      |   |     |   | 25,579                                           |   | Sep 30, 2018 (2038) |
| Borders (8)                              |   | Oklahoma City, OK     | (10)   |                   | 2002      |   |     |   | 24,641                                           |   | Jan 31, 2018 (2038) |
| Borders (8)                              |   | Omaha, NE             |   |                   | 2002      |   |     |   | 25,000                                           |   | Jan 31, 2018 (2038) |
| Borders (8)                              |   | Indianapolis, IN      | (11)   |                   | 2002      |   |     |   | 15,844                                           |   | Dec 31, 2017 (2038) |
| Borders (8)                              |   | Columbia, MD          |   |                   | 1999      |   |     |   | 28,000                                           |   | Jan 31, 2018 (2038) |
| Borders (8)                              |   | Germantown, MD        |   |                   | 2000      |   |     |   | 25,503                                           |   | Jan 31, 2018 (2038) |
| Borders Headquarters (8)                 |   | Ann Arbor, MI         |   |                   | 1996/1998 |   |     |   | 330,322                                          |   | Jan 29, 2023 (2043) |
| Borders                                  |   | Tulsa, OK             | (9)    |                   | 1996      |   |     |   | 24,773                                           |   | Sep 30, 2018 (2038) |
| Borders (8)                              |   | Boynton Beach, FL     | (11)   |                   | 1996      |   |     |   | 20,745                                           |   | July 20, 2024 (2044) |
| Borders (8)                              |   | Ann Arbor, MI         |   |                   | 1996      |   |     |   | 110,000                                          |   | Jan 31, 2025 (2045) |
| Chase Bank (7)                           |   | Southfield, MI        |   |                   | 2009      |   |     |   | 4,270                                            |   | Oct 31, 2029 (2059) |
| Chase Bank                               |   | Spring Grove, IL      |   |                   | 2010      |   |     |   | 4,300                                            |   | Apr 20, 2038 (2067) |
| Citizens Bank                            |   | Flint, MI             |   |                   | 2003      |   |     |   | 4,426                                            |   | Apr 15, 2023 |
| CVS Pharmacy                             |   | Atchison, KS          |   |                   | 2010      |   |     |   | 13,225                                           |   | Jan 31, 2036 (2065) |
| CVS Pharmacy                             |   | Johnstown, OH         |   |                   | 2010      |   |     |   | 13,225                                           |   | Jan 31, 2035 (2059) |
| CVS Pharmacy                             |   | Lake in the Hills, IL |   |                   | 2010      |   |     |   | 13,225                                           |   | Jan 31, 2035 (2084) |
| CVS Pharmacy                             |   | Mansfield, CT         |   |                   | 2010      |   |     |   | 10,125                                           |   | Jan 31, 2027 (2046) |
| Dick’s Sporting Goods              |   | Boynton Beach, FL     |   |                   | 2010      |   |     |   | 43,790                                           |   | Oct 31, 2021 (2040) |

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| Tenant                              |   | Location                  |   | YearCompleted/Expanded |   |   | TotalGLA |    | Lease Expiration(2)(Option expiration) |
|-------------------------------------|--------|---------------------------|--------|------------------------|--------|--------|----------|---------|--------------------------------------------------|
| Kmart                               |   | Grayling, MI              |   | 1984                   |   |   |     | 52,320  |                                             | Sep 30, 2012 (2059) |
| Kmart                               |   | Oscoda, MI                |   | 1984/1990              |   |   |     | 90,470  |                                             | Sep 30, 2012 (2059) |
| Kohl’s (1)                    |   | Tallahassee, FL           |   | 2010                   |   |   |     | 102,381 |                                             | Jan 31, 2028 (2057) |
| Lake Lansing RA Associates, LLC (4) |   | East Lansing, MI          |   | 2004                   |   |   |     | 14,564  |                                             | Dec 31, 2028 (2078) |
| Los Tres Amigos (3)                 |   | Lansing, MI               |   | 2004                   |   |   |     | 5,448   |                                             | Aug 31, 2014 (2032) |
| Lowe’s Home Centers           |   | Concord, NC               |   | 2010                   |   |   |     | 170,393 |                                             | Oct 31, 2028 (2058) |
| Meijer                              |   | Plainfield, IN            |   | 2007                   |   |   | Note (5) |    | Nov 5, 2027 (2047)                               |
| PNC Bank                            |   | Antioch, IL               |   | 2010                   |   |   |     | 3,215   |                                             | Mar 31, 2039 (2088) |
| Rite Aid (8)                        |   | Webster, NY               |   | 2004                   |   |   |     | 13,813  |                                             | Feb 24, 2024 (2044) |
| Rite Aid (8)                        |   | Albion, NY                |   | 2004                   |   |   |     | 13,813  |                                             | Oct 12, 2024 (2044) |
| Rite Aid (8)                        |   | Canton Twp, MI            |   | 2003                   |   |   |     | 11,180  |                                             | Oct 31, 2019 (2049) |
| Rite Aid (8)                        |   | Roseville, MI             |   | 2005                   |   |   |     | 11,060  |                                             | June 30, 2025 (2050) |
| Rite Aid                            |   | Mt Pleasant, MI           |   | 2005                   |   |   |     | 11,095  |                                             | Nov 30, 2025 (2065) |
| Rite Aid                            |   | N Cape May, NJ            |   | 2005                   |   |   |     | 10,118  |                                             | Nov 30, 2025 (2065) |
| Rite Aid (8)                        |   | Summit Twp, MI            |   | 2006                   |   |   |     | 11,060  |                                             | Oct 31, 2019 (2039) |
| Sam’s Club (6)                |   | Roseville, MI             |   | 2002                   |   |   |     | 132,332 |                                             | Aug 4, 2022 (2082) |
| Walgreen (8)                        |   | Waterford, MI             |   | 1997                   |   |   |     | 13,905  |                                             | Feb 28, 2018 (2058) |
| Walgreen (8)                        |   | Chesterfield, MI          |   | 1998                   |   |   |     | 13,686  |                                             | July 31, 2018 (2058) |
| Walgreen (8)                        |   | Pontiac, MI               |   | 1998                   |   |   |     | 13,905  |                                             | Oct 31, 2018 (2058) |
| Walgreen (8)                        |   | Grand Blanc, MI           |   | 1998                   |   |   |     | 13,905  |                                             | Feb 28, 2019 (2059) |
| Walgreen (8)                        |   | Rochester, MI             |   | 1998                   |   |   |     | 13,905  |                                             | June 30, 2019 (2059) |
| Walgreen and Auto Zone (8)          |   | Ypsilanti, MI             |   | 1999                   |   |   |     | 21,620  |                                             | Dec 31, 2019 (2059) |
| Walgreen (1) (8)                    |   | Petoskey, MI              |   | 2000                   |   |   |     | 13,905  |                                             | Apr 30, 2020 (2060) |
| Walgreen (8)                        |   | Flint, MI                 |   | 2000                   |   |   |     | 14,490  |                                             | Dec 31, 2020 (2060) |
| Walgreen (8)                        |   | Flint, MI                 |   | 2001                   |   |   |     | 15,120  |                                             | Feb 28, 2021 (2061) |
| Walgreen (8)                        |   | New Baltimore, MI         |   | 2001                   |   |   |     | 14,490  |                                             | Aug 31, 2021 (2061) |
| Walgreen (8)                        |   | Flint, MI                 |   | 2002                   |   |   |     | 14,490  |                                             | Apr 30, 2027 (2077) |
| Walgreen                            |   | Big Rapids, MI            |   | 2003                   |   |   |     | 13,560  |                                             | Apr 30, 2028 (2078) |
| Walgreen (8)                        |   | Flint, MI                 |   | 2004                   |   |   |     | 14,560  |                                             | Feb 28, 2029 (2079) |
| Walgreen (8)                        |   | Flint, MI                 |   | 2004                   |   |   |     | 13,650  |                                             | Oct 31, 2029 (2079) |
| Walgreen                            |   | Midland, MI               |   | 2005                   |   |   |     | 14,820  |                                             | July 31, 2030 (2080) |
| Walgreen (8)                        |   | Grand Rapids, MI          |   | 2005                   |   |   |     | 14,820  |                                             | Aug 30, 2030 (2080) |
| Walgreen (8)                        |   | Delta Township, MI        |   | 2005                   |   |   |     | 14,559  |                                             | Nov 30, 2030 (2080) |
| Walgreen and Retail space (8)       |   | Livonia, MI               |   | 2007                   |   |   |     | 19,390  |                                             | June 30, 2032 (2082) |
| Walgreen                            |   | Barnesville, GA           |   | 2007                   |   |   |     | 14,820  |                                             | Nov 30, 2032 (2082) |
| Walgreen and Chase Bank (8)         |   | Macomb Township, MI       |   | 2008                   |   |   |     | 19,090  |                                             | Mar 31, 2033 (2083) |
| Walgreen                            |   | Ypsilanti, MI             |   | 2008                   |   |   |     | 13,650  |                                             | Mar 31, 2032 (2082) |
| Walgreen (8)                        |   | Shelby Township, MI       |   | 2008                   |   |   |     | 14,820  |                                             | Jul 31, 2033 (2083) |
| Walgreen                            |   | Brighton, MI              |   | 2009                   |   |   |     | 14,550  |                                             | Jan 31, 2034 (2084) |
| Walgreen                            |   | Silver Springs Shores, FL |   | 2009                   |   |   |     | 14,550  |                                             | Dec 31, 2033 (2083) |
| Walgreen                            |   | Port St John, FL          |   | 2009                   |   |   |     | 14,550  |                                             | Apr 30, 2034 (2084) |
| Walgreen                            |   | Lowell, MI                |   | 2009                   |   |   |     | 13,650  |                                             | Sep 30, 2034 (2084) |

----

| Tenant       |   | Location                 |   | YearCompleted/Expanded |   |   | TotalGLA |      | Lease Expiration(2)(Option expiration) |
|--------------|--------|--------------------------|--------|------------------------|--------|--------|----------|-----------|--------------------------------------------------|
| Walgreen (1) |   | Ann Arbor, MI            |   | 2010                   |   |   |     | 13,650    |                                             | Aug 31, 2035 (2085) |
| Walgreen     |   | Atlantic Beach, FL       |   | 2010                   |   |   |     | 14,478    |                                             | Aug 31, 2035 (2085) |
| Walgreen     |   | St. Augustine Shores, FL |   | 2010                   |   |   |     | 14,820    |                                             | Jan 31, 2036 (2086) |
|         |   |                     |   |                   |   |   |     |      |                                             |   |
| Total        |   |                     |   |                   |   |   |     | 1,985,808 |                                             |   |

----

| (1) | Properties subject to long-term ground leases where a third party owns the underlying land and has leased the land to us to construct or operate freestanding properties. We pay rent for the use of the land and we are generally responsible for all costs and expenses associated with the building and improvements. At the end of the lease terms, as extended (Petoskey, MI 2074, Tallahassee, FL 2032 and Ann Arbor, MI 2035), the land together with all improvements revert to the land owner. We have an option to purchase the Petoskey property after August 7, 2019 and the Ann Arbor property after June 3, 2012. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | At the expiration of tenant’s initial lease term, each tenant (except Citizens Bank) has an option, subject to certain requirements, to extend its lease for an additional period of time. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | This 2.03 acre property is leased from us by Los Tres Amigos pursuant to a ground lease.  The tenant occupies a 5,448 square foot building. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | This 11.3 acre property is leased from us by Lake Lansing RA Associates, LLC pursuant to a ground lease.  The ground lesssee has constructed a 14,564 square foot building. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | This 32.5 acre property is leased from us by Meijer pursuant to a ground lease.  Meijer expects to construct an estimated 210,000 square foot super center. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | This 12.68 acre property is leased from us by Wal-Mart pursuant to a ground lease.  Wal-Mart has constructed a Sam’s Club retail building containing approximately 132,332 square feet. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (7) | This 1.0 acre property is leased from us by JP Morgan Chase Bank pursuant to a ground lease.  JP Morgan Chase has constructed a retail bank branch containing approximately 4,270 square feet. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Properties subject to a mortgage/debt or pledged pursuant to our credit facilities |
|-----|------------------------------------------------------------------------------------|

| (9) | Classified as held for sale as of December 31, 2010 |
|-----|-----------------------------------------------------|

| (10) | Borders has disclosed its intention to close their store at this location |
|------|---------------------------------------------------------------------------|

| (11) | Borders sub-leases their space at these locations to another tenant |
|------|---------------------------------------------------------------------|

----

| Property Location   |   | Location           |   | YearCompleted/Expanded |   | GLASq. Ft. |   | AnnualizedBase Rent (2) |       | AverageBaseRent perSq. Ft.(3) |   | PercentOccupiedatDecember31,2010 |   |   | PercentLeased atDecember31,2010 (4) |   |   | Anchor Tenants (Leaseexpiration/Option periodexpiration) (5) |
|--------------------------|--------|--------------------|--------|------------------------|--------|-----------------|--------|-----------------------------------|------------|-----------------------------------------|--------|----------------------------------|--------|--------|-----------------------------------------------|--------|--------|----------------------------------------------------------------------------------|
| Capital Plaza (1)        |   | Frankfort, KY      |   | 1978/ 2006             |   | 116,212         |   | $                                 | 599,000    |                                    | $      | 5.15                             |   |   | 100                                           | %      |   |                                                                             | 100 | %  |   | Kmart(2013/2053) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | Walgreen (2031/2052) |
| Charlevoix Commons       |   | Charlevoix, MI     |   | 1991                   |   | 137,375         |   |                              | 686,495    |                                    |   | 5.00                             |   |   | 100                                           | %      |   |                                                                             | 100 | % |   | Kmart (2015/2065) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | Roundy’s (2011)Family Farm (2016) |
| Chippewa Commons (6)     |   | Chippewa Falls, WI |   | 1991                   |   | 168,311         |   |                              | 959,823    |                                    |   | 5.76                             |   |   | 99                                            | %      |   |                                                                             | 99 | % |   | Kmart (2014/2064) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | Roundy’s (2010/2030) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | Fashion Bug (2014/2024) |
| Ironwood Commons         |   | Ironwood, MI       |   | 1991                   |   | 185,535         |   |                              | 937,643    |                                    |   | 5.005                            |   |   | 100                                           | %      |   |                                                                             | 100 | % |   | Kmart (2015/2065) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | Super Value (2011/2036) |
| Marshall Plaza           |   | Marshall, MI       |   | 1990                   |   | 119,279         |   |                              | 646,959    |                                    |   | 5.42                             |   |   | 100                                           | %      |   |                                                                             | 100 | % |   | Kmart (2015/2065) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   |   |
| Central Michigan Commons |   | Mt. Pleasant, MI   |   | 1973/ 1997             |   | 241,458         |   |                              | 1,039,018  |                                    |   | 4.39                             |   |   | 98                                            | %      |   |                                                                             | 98 | % |   | Kmart (2013/2048) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | J.C. Penney Co. (2015/2035) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | Staples, Inc. (2015/2030) |
| North Lakeland Plaza (6) |   | Lakeland, FL       |   | 1987                   |   | 171,334         |   |                              | 1,306,574  |                                    |   | 7.71                             |   |   | 99                                            | %      |   |                                                                             | 99 | % |   | Best Buy (2013/2028) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | Beall’s (2020/2035) |
| Petoskey Town Center (6) |   | Petoskey, MI       |   | 1990                   |   | 174,870         |   |                              | 998,273    |                                    |   | 5.90                             |   |   | 97                                            | %      |   |                                                                             | 97 | % |   | Kmart (2015/2065) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | Roundy’s (2010/2030) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | Fashion Bug (2012/2022) |
| Plymouth Commons         |   | Plymouth, WI       |   | 1990                   |   | 162,031         |   |                              | 809,869    |                                    |   | 5.14                             |   |   | 97                                            | %      |   |                                                                             | 97 | % |   | Kmart (2015/2065) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | Roundy’s (2015/2030) |
| Ferris Commons           |   | Big Rapids, MI     |   | 1990                   |   | 173,557         |   |                              | 1,016,836  |                                    |   | 5.86                             |   |   | 100                                           | %      |   |                                                                             | 100 | % |   | Kmart (2015/2065) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | MC Sports (2018/2033) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | Peebles (2019/2039) |
| Shawano Plaza (6)        |   | Shawano, WI        |   | 1990                   |   | 192,694         |   |                              | 983,371    |                                    |   | 5.21                             |   |   | 98                                            | %      |   |                                                                             | 98 | % |   | Kmart (2014/2064) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | Roundy’s (2015/2030) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | J.C. Penney Co. (2015/2035) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   | Fashion Bug (2012/2019) |
| West Frankfort Plaza     |   | West Frankfort, IL |   | 1982                   |   | 20,000          |   |                              | 136,000    |                                    |   | 6.80                             |   |   | 100                                           | %      |   |                                                                             | 100 | % |   | Fashion Bug (2012) |
|                     |   |               |   |                   |   |            |   |                              |       |                                    |   |                             |   |   |                                          |   |   |                                                                             |   |   |   |   |
| Total/Average            |   |               |   |                   |   | 1,862,656       |   | $                                 | 10,119,861 |                                    | $      | 5.52                             |   |   | 98                                            | %      |   |                                                                             | 98 | % |   |    |

----

| (1) | All community shopping centers except Capital Plaza (which is subject to a long-term ground lease expiring in 2053 from a third party) are wholly-owned by us. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Total annualized base rents of our Company as of December 31, 2010. |
|-----|---------------------------------------------------------------------|

| (3) | Calculated as total annualized base rents, divided by gross leaseable area actually leased as of December 31, 2010. |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (4) | Roundy’s has sub-leased the space it leases at Charlevoix Commons (35,896 square feet, rented at a rate of $5.97 per square foot). The lease with Roundy’s will expire on December 31, 2011.  We have entered into a lease with Family Farm and Home, Inc (the Roundy’s sub-tenant).  The Family Farm lease commences January 1, 2012, has a term of 5 years and a rental rate of $2.00 per square foot. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | The option to extend the lease beyond its initial term is only at the option of the tenant. |
|-----|---------------------------------------------------------------------------------------------|

| (6) | Properties subject to a mortgage/debt or pledged pursuant to our credit facilities. |
|-----|-------------------------------------------------------------------------------------|

----

| ITEM 3. | LEGAL PROCEEDINGS |
|---------|-------------------|

| ITEM 4.  | [REMOVED AND RESERVED] |
|---------------|------------------------|

| ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
|---------|--------------------------------------------------------------------------------------------------------------------|

| Quarter Ended |   | High   |   |   | Low    |   |   | Dividends Declared PerCommon Share |   |
|--------------------|--------|--------|--------|--------|--------|--------|--------|---------------------------------------------------|--------|
|               |   |   |   |   |   |   |   |                                              |   |
| March 31, 2010     |   | $      | 24.67  |   |   | $      | 19.56  |                                              |   | $ | 0.51 |   |
| June 30, 2010      |   | $      | 26.80  |   |   | $      | 21.73  |                                              |   | $ | 0.51 |   |
| September 30, 2010 |   | $      | 26.74  |   |   | $      | 21.52  |                                              |   | $ | 0.51 |   |
| December 31, 2010  |   | $      | 28.63  |   |   | $      | 24.79  |                                              |   | $ | 0.51 |   |
|               |   |   |   |   |   |   |   |                                              |   |   |   |   |
| March 31, 2009     |   | $      | 19.32  |   |   | $      | 9.31   |                                              |   | $ | 0.50 |   |
| June 30, 2009      |   | $      | 18.66  |   |   | $      | 14.89  |                                              |   | $ | 0.50 |   |
| September 30, 2009 |   | $      | 24.61  |   |   | $      | 17.10  |                                              |   | $ | 0.51 |   |
| December 31, 2009  |   | $      | 24.94  |   |   | $      | 21.01  |                                              |   | $ | 0.51 |   |

----

----

| ITEM 6. | SELECTED FINANCIAL DATA |
|---------|-------------------------|

|                                                          |   | Year Ended December 31, |    |
|---------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                          |   | 2010                                   |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Operating Data                                                |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Revenues                                                |   | $                                      | 36,112  |   |   | $ | 34,402 |   |   | $ | 32,919 |   |   | $ | 31,887 |   |   | $ | 30,329 |   |
| Expenses                                                      |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property Expense (1)                                          |   |                                   | 3,848   |   |   |   | 3,891 |   |   |   | 3,975 |   |   |   | 3,838 |   |   |   | 3,747 |   |
| General and Administrative                                    |   |                                   | 5,003   |   |   |   | 4,559 |   |   |   | 4,361 |   |   |   | 4,462 |   |   |   | 4,019 |   |
| Interest                                                      |   |                                   | 4,712   |   |   |   | 4,635 |   |   |   | 5,179 |   |   |   | 4,896 |   |   |   | 4,625 |   |
| Depreciation and amortization                                 |   |                                   | 5,687   |   |   |   | 5,359 |   |   |   | 5,064 |   |   |   | 4,725 |   |   |   | 4,559 |   |
| Impairment charge                                             |   |                                   | 7,700   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Expenses                                                |   |                                   | 26,950  |   |   |   | 18,444 |   |   |   | 18,579 |   |   |   | 17,921 |   |   |   | 16,950 |   |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expense)  (2)                         |   |                                   | -       |   |   |   | - |   |   |   | - |   |   |   | 1,044 |   |   |   | - |   |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income From Continuing Operations                             |   |                                   | 9,162   |   |   |   | 15,958 |   |   |   | 14,340 |   |   |   | 15,010 |   |   |   | 13,379 |   |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain on Sale of Asset From Discontinued Operations            |   |                                   | 4,738   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Income From Discontinued Operations                           |   |                                   | 1,728   |   |   |   | 2,036 |   |   |   | 1,942 |   |   |   | 1,817 |   |   |   | 1,815 |   |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                    |   |                                   | 15,628  |   |   |   | 17,994 |   |   |   | 16,282 |   |   |   | 16,827 |   |   |   | 15,194 |   |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less Net Income Attributable to Non-Controlling Interest      |   |                                   | 561     |   |   |   | 950 |   |   |   | 1,265 |   |   |   | 1,345 |   |   |   | 1,220 |   |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income Attributable to Agree Realty Corporation           |   | $                                      | 15,067  |   |   | $ | 17,044 |   |   | $ | 15,017 |   |   | $ | 15,482 |   |   | $ | 13,974 |   |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number of Properties                                          |   |                                   | 81      |   |   |   | 73 |   |   |   | 68 |   |   |   | 64 |   |   |   | 60 |   |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number of Square Feet                                         |   |                                   | 3,848   |   |   |   | 3,492 |   |   |   | 3,439 |   |   |   | 3,385 |   |   |   | 3,355 |   |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Percentage Leased                                             |   |                                   | 99      | % |   |   | 98 | % |   |   | 99 | % |   |   | 99 | % |   |   | 99 | % |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per Share Data – Diluted                                |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                    |   | $                                      | 1.64    |   |   | $ | 2.14 |   |   | $ | 1.95 |   |   | $ | 2.01 |   |   | $ | 1.83 |   |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average of Common Shares Outstanding – Diluted |   |                                   | 9,191   |   |   |   | 7,966 |   |   |   | 7,719 |   |   |   | 7,716 |   |   |   | 7,651 |   |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Dividends                                                |   | $                                      | 2.04    |   |   | $ | 2.02 |   |   | $ | 2.00 |   |   | $ | 1.97 |   |   | $ | 1.96 |   |
|                                                          |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance Sheet Data                                            |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real Estate (before accumulated depreciation)                 |   | $                                      | 338,221 |   |   | $ | 320,444 |   |   | $ | 311,343 |   |   | $ | 290,074 |   |   | $ | 268,248 |   |
| Total Assets                                                  |   | $                                      | 285,042 |   |   | $ | 261,789 |   |   | $ | 256,897 |   |   | $ | 239,348 |   |   | $ | 223,515 |   |
| Total Debt, including accrued interest                        |   | $                                      | 100,128 |   |   | $ | 104,814 |   |   | $ | 101,069 |   |   | $ | 82,889 |   |   | $ | 69,031 |   |

----

| (1) | Property expense includes real estate taxes, property maintenance, insurance, utilities and land lease expense. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| (2) | Other income is composed of gain on land sales. |
|-----|-------------------------------------------------|

| (3) | Net income per share has been computed by dividing the net income by the weighted average number of shares of common stock outstanding and the effect of dilutive securities outstanding. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

----

----

----

----

|                                                       |   | Total  |    |   | Yr 1 |   |   | 2-3 Yrs |   |   | 4-5 Yrs |   |   | Over 5 Yrs |   |
|------------------------------------------------------------|--------|--------|---------|--------|-----------|--------|--------|--------------|--------|--------|--------------|--------|--------|----------------------|--------|
| Mortgages Payable                                          |   | $      | 71,527  |   |      | $      | 4,296  |         |   | $      | 31,493       |   |   | $                    | 9,514  |   |   | $ | 26,224 |   |
| Notes Payable                                              |   |   | 28,380  |   |      |   | 28,380 |         |   |   | -            |   |   |                 | -      |   |   |   | - |   |
| Land Lease Obligations                                     |   |   | 18,784  |   |      |   | 712    |         |   |   | 1,425        |   |   |                 | 1,425  |   |   |   | 15,222 |   |
| Other Long-Term Liabilities                                |   |   | -       |   |      |   | -      |         |   |   | -            |   |   |                 | -      |   |   |   | - |   |
| Estimated Interest Payments on Mortgages and Notes Payable |   |   | 21,099  |   |      |   | 4,324  |         |   |   | 6,666        |   |   |                 | 4,100  |   |   |   | 6,009 |   |
|                                                       |   |   |    |   |      |   |   |         |   |   |         |   |   |                 |   |   |   |   |   |   |
| Total                                                      |   | $      | 139,790 |   |      | $      | 37,712 |         |   | $      | 39,584       |   |   | $                    | 15,039 |   |   | $ | 47,455 |   |

----

----

|                                             |   | Year ended December 31, |       |
|--------------------------------------------------|--------|----------------------------------------|------------|
|                                             |   | 2010                                   |       |   | 2009 |   |   | 2008 |   |
|                                             |   |                                   |       |   |   |   |   |   |   |
| Net income                                       |   | $                                      | 15,627,834 |   |   | $ | 17,994,036 |   |   | $ | 16,282,038 |   |
| Depreciation of real estate assets               |   |                                   | 5,759,599  |   |   |   | 5,574,084 |   |   |   | 5,257,391 |   |
| Amortization of leasing costs                    |   |                                   | 92,972     |   |   |   | 65,977 |   |   |   | 58,771 |   |
| Amortization of lease intangibles                |   |                                   | 50,479     |   |   |   | - |   |   |   | - |   |
| Gain on sale of assets                           |   |                                   | (4,737,968 | ) |   |   | - |   |   |   | - |   |
|                                             |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Funds from operations                            |   | $                                      | 16,792,916 |   |   | $ | 23,634,097 |   |   | $ | 21,598,200 |   |
| Weighted average shares and OP units outstanding |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Basic                                            |   |                                   | 9,503,278  |   |   |   | 8,396,597 |   |   |   | 8,364,366 |   |
|                                             |   |                                   |       |   |   |   |   |   |   |   |   |   |
| Diluted                                          |   |                                   | 9,539,119  |   |   |   | 8,416,696 |   |   |   | 8,376,259 |   |

| ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|----------|------------------------------------------------------------|

|                   |   | 2011   |   |   | 2012   |   |   | 2013   |   |   | 2014   |   |   | 2015   |   |   | Thereafter |   |   | Total  |   |
|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|
| Fixed rate debt        |   | $      | 3,779  |   |   | $      | 4,035  |   |   | $      | 4,308  |   |   | $      | 4,601  |   |       | $      | 4,913  |   |   | $ | 26,224 |   |   | $ | 47,860 |   |
| Average interest rate  |   |   | 6.56   | %      |   |   | 6.56   | %      |   |   | 6.56   | %      |   |   | 6.56   | %      |       |   | 6.56   | %      |   |   | 6.56 | % |   |   | - |   |
|                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Variable rate mortgage |   | $      | 517    |   |   | $      | 548    |   |   | $      | 22,602 |   |   |   | -      |   |       |   | -      |   |   |   | - |   |   | $ | 23,667 |   |
|                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Average interest rate  |   |   | 3.74   | %      |   |   | 3.74   | %      |   |   | 3.74   | %      |   |   | -      |   |       |   | -      |   |   |   | - |   |   |   | - |   |
|                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Variable rate debt     |   | $      | 28,380 |   |   |   | -      |   |   |   | -      |   |   |   | -      |   |       |   | -      |   |   |   | - |   |   | $ | 28,380 |   |
|                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Average interest rate  |   |   | 1.48   | %      |   |   | -      |   |   |   | -      |   |   |   | -      |   |       |   | -      |   |   |   | - |   |   |   | - |   |

----

| ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
|---------|---------------------------------------------|

| ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
|---------|--------------------------------------------------------------------------------------|

| ITEM 9A. | CONTROLS AND PROCEDURES |
|----------|-------------------------|

|   | (i) | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of our Company; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on the financial statements. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM 9B. | OTHER INFORMATION |
|----------|-------------------|

| ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
|----------|--------------------------------------------------------|

| ITEM 11. | EXECUTIVE COMPENSATION |
|----------|------------------------|

| ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
|----------|------------------------------------------------------------------------------------------------|

| Plan category                                                |   | Number of securities to beissued upon exercise ofoutstanding options,warrants and rights(a) |    |   | Weighted average exerciseprice of outstandingoptions, warrants andrights(b) |   |    | Number of securitiesremaining available forfuture issuance underequity compensation plans(excluding securitiesreflected in column (a))(c) |   |
|-------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|-----------------------------------------------------------------------------------------------------------|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity compensation plans approved by security  holders |   |                                                                                                                                          | – |   |                                                                                                      |   | – |                                                                                                                                                                                                  |   |   | 663,126 | (1) |
|                                                              |   |                                                                                                                                          |    |   |                                                                                                      |   |    |                                                                                                                                                                                                  |   |   |   |   |
| Equity compensation plans not approved by security holders        |   |                                                                                                                                          | – |   |                                                                                                      |   | – |                                                                                                                                                                                                  |   |   | – |   |
|                                                              |   |                                                                                                                                          |    |   |                                                                                                      |   |    |                                                                                                                                                                                                  |   |   |   |   |
| Total                                                             |   |                                                                                                                                          | – |   |                                                                                                      |   | – |                                                                                                                                                                                                  |   |   | 663,126 |   |

----

| (1) | Relates to various stock-based awards available for issuance under our 2005 Equity Incentive Plan, including incentive stock options, non-qualified stock options, stock appreciation rights, deferred stock awards, restricted stock awards, unrestricted stock awards, and dividend equivalent rights. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|----------|---------------------------------------------------------------------------|

| ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
|----------|----------------------------------------|

| ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
|----------|--------------------------------------------|

| 15(a)  | The following documents are filed as part of this Report: |
|-------------|-----------------------------------------------------------|

| (1) (2) | The financial statements and supplementary data are listed in the Index to Financial Statements and Financial Statement Schedules appearing on Page F-1 of this Form 10-K. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 3.1    | Articles of Incorporation and Articles of Amendment of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-11 (No. 33-73858), as amended )                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 3.2    | Articles Supplementary, establishing the terms of the Series A Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K (No. 001-12928) filed on December 9, 2008)                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 3.3    | Articles Supplementary, classifying additional shares of Common Stock and Excess Stock (incorporated by reference to Exhibit 3.2 to the Company’s Form 8-K (No. 001-12928) filed on December 9, 2008)                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 3.4    | Bylaws of the Company (incorporated by reference to Exhibit 3.2 to the Company’s Form 10-K (No. 001-12928)  for the year ended December 31, 2006)                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 4.1    | Rights Agreement, dated as of December 7, 1998, by and between Agree Realty Corporation, a Maryland corporation, and Computershare Trust Company, N.A., f/k/a EquiServe Trust Company, N.A., a national banking association, as successor rights agent to BankBoston, N.A., a national banking association (incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-3 (No. 333-161520) filed on November 13, 2008) |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 4.2    | Second Amendment to Rights Agreement, dated as of December 8, 2008, by and between Agree Realty Corporation, a Maryland corporation, and Computershare Trust Company, N.A., f/k/a EquiServe Trust Company, N.A., a national banking association, as successor rights agent to BankBoston, N.A., a national banking association (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K (No. 001-12928) filed on December 9, 2008)         |

----

|   | 4.3    | Amended and Restated Registration Rights Agreement, dated July 8, 1994 by and among the Company, Richard Agree, Edward Rosenberg and Joel Weiner (incorporated by reference to Exhibit 10.2 to the Company’s Form 10-K (No. 001-12928) for the year ended December 31, 1994)                                                                                                                                          |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 4.4    | Form of certificate representing shares of common stock (incorporated by reference to Exhibit 4.2 to the Company’s Registration Statement on Form S-3 (No. 333-161520) filed on August 24, 2009                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 10.1   | Amended and Restated $50 million Line of Credit agreement dated November 5, 2003, among Agree Realty Corporation, Standard Federal Bank and Bank One (incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q (No. 001-12928) for the quarter ended September 30, 2003)                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 10.2   | Third Amended and Restated Line of Credit Agreement by and between the Company, and LaSalle Bank Midwest National Association Individually and as Agent for the Lenders and together with Fifth Third Bank (incorporated by reference to Exhibit 10.28 to the Company’s Form 10-K (No. 001-12928) for the year ended December 31, 2006)                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 10.3   | Amendment to the Third Amended and Restated Line of Credit Agreement dated April 25, 2008, by and between Agree Realty Corporation, Agree Limited Partnership and LaSalle Bank Midwest National Association, individually and as agent for the lenders and together with Fifth Third Bank.  (incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q for the quarter ended September 30, 2009) |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 10.4   | Loan Agreement dated as of July 14, 2008 by and between Agree Limited Partnership, as Borrower, and The Financial Institutions party thereto, as Co-Lenders, and LaSalle Bank Midwest National Association, as Agent (incorporated by reference to Exhibit 4.1 to the Company’s Form 10-Q (No. 001-12928) for the quarter ended June 30, 2008)                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 10.5   | Commercial Mortgage dated as of July 14, 2008 executed by Agree Limited Partnership to and for the benefit of LaSalle Bank Midwest National Association and Raymond James Bank, FSB  (incorporated by reference to Exhibit 4.2 to the Company’s Form 10-Q (No. 001-12928) for the quarter ended June 30, 2008)                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 10.6   | Continuing Unconditional Guaranty dated as of July 14, 2008 by Agree Realty Corporation for the benefit of La Salle Bank Midwest National Association (incorporated by reference to Exhibit 4.3 to the Company’s Form 10-Q (No. 001-12928) for the quarter ended June 30, 2008)                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 10.7   | First Amended and Restated Agreement of Limited Partnership of Agree Limited Partnership, dated as of April 22, 1994, by and among the Company, Richard Agree, Edward Rosenberg and Joel Weiner (incorporated by reference to Exhibit 10.6 to the Company’s Form 10-K (No. 001-12928) for the year ended December 31, 1996)                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 10.8   | Contribution Agreement, dated as of April 21, 1994, by and among the Company, Richard Agree, Edward Rosenberg and the co-partnerships named therein (incorporated by reference to Exhibit 10.10 to the Company’s Form 10-K (No. 001-12928) for the year ended December 31, 1996)                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 10.9+  | Agree Realty Corporation Profit Sharing Plan (incorporated by reference to Exhibit 10.13 to the Company’s Form 10-K (No. 001-12928) for the year ended December 31, 1996)                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | 10.10+ | Employment Agreement, dated July 14, 2009, by and between the Company and Richard Agree (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K (No. 001-12928) filed on July 16, 2009)                                                                                                                                                                                                                  |

----

|   | 10.11+ | Employment Agreement, dated July 14, 2009, by and between the Company and Joey Agree (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K (No. 001-12928) filed on July 16, 2009)                     |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                        |
|   | 10.12+ | Letter Agreement of Employment dated July 8, 2010 between Agree Limited Partnership and Alan Maximiuk (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K (No. 001-12928) filed on November 8, 2010) |
|   |   |                                                                                                                                                                                                                        |
|   | 10.13+ | Letter Agreement of Employment dated April 5, 2010 between Agree Limited Partnership and Laith Hermiz (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K (No. 001-12928) filed on April 6, 2010)    |
|   |   |                                                                                                                                                                                                                        |
|   | 10.12+ | 2005 Equity Incentive Plan (incorporated by reference to Exhibit 10.25 to the Company’s Form 10-K (No. 001-12928) for the year ended December 31, 2004)                                                               |
|   |   |                                                                                                                                                                                                                        |
|   | 10.13+ | Form of Restricted Stock Agreement (incorporated by reference to Exhibit 10.9 to the Company’s Form 10-K (No. 001-12928) for the year ended December 31, 2007)                                                        |
|   |   |                                                                                                                                                                                                                        |
|   | 10.14+ | Summary of Director Compensation (incorporated by reference to Exhibit 10.10 to the Company’s Form 10-K (No. 001-12928) for the year ended December 31, 2007)                                                         |
|   |   |                                                                                                                                                                                                                        |
|   | 12.1*  | Statement of computation of ratios of earnings to combined fixed charges and preferred stock dividends                                                                                                                      |
|   |   |                                                                                                                                                                                                                        |
|   | 21*    | Subsidiaries of Agree Realty Corporation                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                        |
|   | 23*    | Consent of Baker Tilly Virchow Krause, LLP                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                        |
|   | 24     | Power of Attorney (included on the signature page of this Annual Report on Form 10-K)                                                                                                                                       |
|   |   |                                                                                                                                                                                                                        |
|   | 31.1 * | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, Richard Agree, President, Chief Executive Officer and Chairman of the Board of Directors                                                           |
|   |   |                                                                                                                                                                                                                        |
|   | 31.2 * | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, Alan D. Maximiuk, Chief Financial Officer                                                                                                          |
|   |   |                                                                                                                                                                                                                        |
|   | 32.1 * | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, Richard Agree, President, Chief Executive Officer and Chairman of the Board of Directors                                                           |
|   |   |                                                                                                                                                                                                                        |
|   | 32.2 * | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, Alan D. Maximiuk, Chief Financial Officer                                                                                                          |

----

| *  | Filed herewith |
|---------|----------------|

| + | Management contract or compensatory plan or arrangement |
|---|---------------------------------------------------------|

| 15(b) | The Exhibits listed in Item 15(a)(3) are hereby filed with this Report. |
|-------|-------------------------------------------------------------------------|

----

| 15(c) | The financial statement schedule listed at Item 15(a)(2) is hereby filed with this Report. |
|-------|--------------------------------------------------------------------------------------------|

----

| AGREE REALTY CORPORATION |
|--------------------------|
| By:                      | /s/ Richard Agree |
| Name:                    | Richard Agree |
|                     | Chief Executive Officer and Chairman of the Board of Directors |
| Date:                    | March 15, 2011 |

| By:     | /s/ Richard Agree                                              | By:    | /s/ Farris G. Kalil     |   |
|-----------------------------|----------------------------------------------------------------|--------|-------------------------|--------|
|                        | Richard Agree                                                  |   | Farris G. Kalil         |   |
|                        | Chief Executive Officer and Chairman of the Board of Directors |   | Director                |   |
|                        | (Principal Executive Officer)                                  |   |                    |   |
|                        |                                                           | By:    | /s/ Michael Rotchford   |   |
| By:                         | /s/ Joel N. Agree                                              |   | Michael Rotchford       |   |
|                        | President, Chief Operating Officer and Director                |   | Director                |   |
|                        |                                                           |   |                    |   |
| By:                         | /s/ Alan D. Maximiuk                                           | By:    | /s/William S. Rubenfaer |   |
|                        | Alan D. Maximiuk                                               |   | William S. Rubenfaer    |   |
|                        | Vice President, Chief Financial Officer and                    |   | Director                |   |
|                        | Secretary                                                      |   |                    |   |
|                        | (Principal Financial and Accounting                            |   |                    |   |
|                        | Officer)                                                       |   |                    |   |
|                        |                                                           | By:    | /s/ Gene Silverman      |   |
|                        |                                                           |   | Gene Silverman          |   |
|                        |                                                           |   | Director                |   |
|                        |                                                           |   |                    |   |
|                        |                                                           | By:    | /s/ Leon M. Schurgin    |   |
|                        |                                                           |   | Leon M. Schurgin        |   |
|                        |                                                           |   | Director                |   |

----

|                                                     | Page   |
|----------------------------------------------------------|--------|
|                                                     |   |
| Reports of Independent Registered Public Accounting Firm | F-2    |
|                                                     |   |
| Financial Statements                                     |   |
|                                                     |   |
| Consolidated Balance Sheets                              | F-3    |
| Consolidated Statements of Income                        | F-5    |
| Consolidated Statements of Stockholders’ Equity    | F-6    |
| Consolidated Statements of Cash Flows                    | F-7    |
|                                                     |   |
| Notes to Consolidated Financial Statements               | F-9    |
|                                                     |   |
| Schedule III - Real Estate and Accumulated Depreciation  | F-26   |

----

----

| December 31,                                                                                                          |   | 2010   |        |   | 2009   |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                                                                                       |   |   |        |   |   |   |
| Assets                                                                                                                     |   |   |        |   |   |   |
|                                                                                                                       |   |   |        |   |   |   |
| Real Estate Investments (Notes 6 and 7)                                                                                    |   |   |        |   |   |   |
| Land                                                                                                                       |   | $      | 103,693,227 |   |   | $      | 95,047,459 |   |
| Buildings                                                                                                                  |   |   | 227,645,287 |   |   |   | 220,604,734 |   |
| Less accumulated depreciation                                                                                              |   |   | (66,111,215 | )      |   |   | (64,076,469 | ) |
|                                                                                                                       |   |   | 265,227,299 |   |   |   | 251,575,724 |   |
| Property under development                                                                                                 |   |   | 359,299     |   |   |   | 4,791,975 |   |
| Property held for sale, net                                                                                                |   |   | 6,522,821   |   |   |   | - |   |
|                                                                                                                       |   |   |        |   |   |   |   |   |
| Net Real Estate Investments                                                                                                |   |   | 272,109,419 |   |   |   | 256,367,699 |   |
|                                                                                                                       |   |   |        |   |   |   |   |   |
| Cash and Cash Equivalents                                                                                                  |   |   | 593,281     |   |   |   | 688,675 |   |
|                                                                                                                       |   |   |        |   |   |   |   |   |
| Accounts Receivable - Tenants, (Note 3) net of allowance of $35,000 for possible losses at both December 31, 2010 and 2009 |   |   | 1,330,129   |   |   |   | 1,986,836 |   |
|                                                                                                                       |   |   |        |   |   |   |   |   |
| Unamortized Deferred Expenses                                                                                              |   |   |        |   |   |   |   |   |
| Financing costs, net of accumulated amortization of $5,392,802 and $5,126,333 at December 31, 2010 and 2009, respectively  |   |   | 1,133,194   |   |   |   | 1,360,514 |   |
| Leasing costs, net of accumulated amortization of $934,399 and $841,427 at December 31, 2010 and 2009, respectively        |   |   | 812,295     |   |   |   | 537,100 |   |
| Lease intangibles costs, net of accumulated amortization of $50,479 and $-0- at December 31, 2010 and 2009 respectively    |   |   | 8,152,248   |   |   |   | - |   |
|                                                                                                                       |   |   |        |   |   |   |   |   |
| Other Assets                                                                                                               |   |   | 911,801     |   |   |   | 847,894 |   |
|                                                                                                                       |   |   |        |   |   |   |   |   |
| Total Assets                                                                                                               |   | $      | 285,042,367 |   |   | $      | 261,788,718 |   |

----

| December 31,                                                                                                            |   | 2010   |        |   | 2009   |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                                                                                         |   |   |        |   |   |   |
| Liabilities                                                                                                                  |   |   |        |   |   |   |
|                                                                                                                         |   |   |        |   |   |   |
| Mortgages Payable (Note 6)                                                                                                   |   | $      | 71,526,780  |   |   | $      | 75,552,802 |   |
|                                                                                                                         |   |   |        |   |   |   |   |   |
| Notes Payable (Note 7)                                                                                                       |   |   | 28,380,254  |   |   |   | 29,000,000 |   |
|                                                                                                                         |   |   |        |   |   |   |   |   |
| Dividends and Distributions Payable (Note 8)                                                                                 |   |   | 5,145,740   |   |   |   | 4,354,163 |   |
|                                                                                                                         |   |   |        |   |   |   |   |   |
| Deferred Revenue (Note 18)                                                                                                   |   |   | 9,345,754   |   |   |   | 10,035,304 |   |
|                                                                                                                         |   |   |        |   |   |   |   |   |
| Accrued Interest Payable                                                                                                     |   |   | 221,154     |   |   |   | 261,012 |   |
|                                                                                                                         |   |   |        |   |   |   |   |   |
| Accounts Payable                                                                                                             |   |   |        |   |   |   |   |   |
| Capital expenditures                                                                                                         |   |   | 286,078     |   |   |   | 352,430 |   |
| Operating                                                                                                                    |   |   | 1,427,718   |   |   |   | 1,529,085 |   |
|                                                                                                                         |   |   |        |   |   |   |   |   |
| Interest Rate Swap (Note 9)                                                                                                  |   |   | 793,211     |   |   |   | 74,753 |   |
|                                                                                                                         |   |   |        |   |   |   |   |   |
| Deferred Income Taxes (Note 10)                                                                                              |   |   | 705,000     |   |   |   | 705,000 |   |
|                                                                                                                         |   |   |        |   |   |   |   |   |
| Tenant Deposits                                                                                                              |   |   | 80,402      |   |   |   | 97,285 |   |
|                                                                                                                         |   |   |        |   |   |   |   |   |
| Total Liabilities                                                                                                            |   |   | 117,912,091 |   |   |   | 121,961,834 |   |
|                                                                                                                         |   |   |        |   |   |   |   |   |
| Stockholders’ Equity (Note 8)                                                                                          |   |   |        |   |   |   |   |   |
| Common stock, $.0001 par value; 13,350,000 shares authorized, 9,759,014 and 8,196,074 shares issued and outstanding          |   |   | 976         |   |   |   | 820 |   |
| Excess stock, $0.0001 par value, 6,500,000 shares authorized, 0 shares issued and outstanding                                |   |   | -           |   |   |   | - |   |
| Series A junior participating preferred stock, $0.0001 par value, 150,000 shares authorized, 0 shares issued and outstanding |   |   | -           |   |   |   | - |   |
| Additional paid-in capital                                                                                                   |   |   | 179,705,353 |   |   |   | 147,466,101 |   |
| Deficit                                                                                                                      |   |   | (14,702,252 | )      |   |   | (10,632,798 | ) |
| Accumulated other comprehensive income (loss)                                                                                |   |   | (764,735    | )      |   |   | (70,806 | ) |
|                                                                                                                         |   |   |        |   |   |   |   |   |
| Total Stockholders’ Equity – Agree Realty Corporation                                                            |   |   | 164,239,342 |   |   |   | 136,763,317 |   |
| Non-controlling interest                                                                                                     |   |   | 2,890,934   |   |   |   | 3,063,567 |   |
| Total Stockholders’ Equity                                                                                             |   |   | 167,130,276 |   |   |   | 139,826,884 |   |
|                                                                                                                         |   |   |        |   |   |   |   |   |
|                                                                                                                         |   | $      | 285,042,367 |   |   | $      | 261,788,718 |   |

----

| Year Ended December 31,                                                          |   | 2010   |          |   | 2009   |   |         | 2008   |   |
|-------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|--------------|--------|--------|
|                                                                                            |   |   |          |   |   |   |         |   |   |
| Revenues                                                                                        |   |   |          |   |   |   |         |   |   |
| Minimum rents                                                                                   |   | $      | 32,786,621    |   |   | $      | 31,299,502   |   |   | $ | 30,116,821 |   |
| Percentage rents                                                                                |   |   | 34,518        |   |   |   | 15,366       |   |   |   | 15,396 |   |
| Operating cost reimbursement                                                                    |   |   | 2,604,007     |   |   |   | 2,646,634    |   |   |   | 2,782,484 |   |
| Development fee income                                                                          |   |   | 589,541       |   |   |   | 409,643      |   |   |   | - |   |
| Other income                                                                                    |   |   | 97,583        |   |   |   | 30,462       |   |   |   | 3,850 |   |
|                                                                                            |   |   |          |   |   |   |         |   |   |   |   |   |
| Total Revenues                                                                                  |   |   | 36,112,270    |   |   |   | 34,401,607   |   |   |   | 32,918,551 |   |
|                                                                                            |   |   |          |   |   |   |         |   |   |   |   |   |
| Operating Expenses                                                                              |   |   |          |   |   |   |         |   |   |   |   |   |
| Real estate taxes                                                                               |   |   | 1,912,593     |   |   |   | 1,937,523    |   |   |   | 1,866,551 |   |
| Property operating expenses                                                                     |   |   | 1,458,261     |   |   |   | 1,565,679    |   |   |   | 1,812,522 |   |
| Land lease payments                                                                             |   |   | 476,531       |   |   |   | 387,300      |   |   |   | 294,948 |   |
| General and administrative                                                                      |   |   | 5,003,384     |   |   |   | 4,559,005    |   |   |   | 4,361,419 |   |
| Depreciation and amortization                                                                   |   |   | 5,687,413     |   |   |   | 5,358,961    |   |   |   | 5,063,540 |   |
| Impairment charge                                                                               |   |   | 7,700,000     |   |   |   | -            |   |   |   | - |   |
|                                                                                            |   |   |          |   |   |   |         |   |   |   |   |   |
| Total Operating Expenses                                                                        |   |   | 22,238,182    |   |   |   | 13,808,468   |   |   |   | 13,398,980 |   |
|                                                                                            |   |   |          |   |   |   |         |   |   |   |   |   |
| Income From Operations                                                                          |   |   | 13,874,088    |   |   |   | 20,593,139   |   |   |   | 19,519,571 |   |
|                                                                                            |   |   |          |   |   |   |         |   |   |   |   |   |
| Other (Expense)                                                                                 |   |   |          |   |   |   |         |   |   |   |   |   |
| Interest expense, net                                                                           |   |   | (4,711,944    | )      |   |   | (4,634,754   | )      |   |   | (5,179,414 | ) |
|                                                                                            |   |   |          |   |   |   |         |   |   |   |   |   |
| Income Before Discontinued Operations                                                           |   |   | 9,162,144     |   |   |   | 15,958,385   |   |   |   | 14,340,157 |   |
|                                                                                            |   |   |          |   |   |   |         |   |   |   |   |   |
|   Gain on sale of assets from discontinued operations                                 |   |   | 4,737,968     |   |   |   | -            |   |   |   | - |   |
|   Income from discontinued operations                                                 |   |   | 1,727,722     |   |   |   | 2,035,651    |   |   |   | 1,941,881 |   |
|                                                                                            |   |   |          |   |   |   |         |   |   |   |   |   |
| Net Income                                                                                      |   |   | 15,627,834    |   |   |   | 17,994,036   |   |   |   | 16,282,038 |   |
|                                                                                            |   |   |          |   |   |   |         |   |   |   |   |   |
| Less Net Income Attributable to Non-Controlling Interest                                        |   |   | 561,039       |   |   |   | 950,046      |   |   |   | 1,264,611 |   |
|                                                                                            |   |   |          |   |   |   |         |   |   |   |   |   |
| Net Income Attributable to Agree Realty Corporation                                             |   | $      | 15,066,795    |   |   | $      | 17,043,990   |   |   | $ | 15,017,427 |   |
|                                                                                            |   |   |          |   |   |   |         |   |   |   |   |   |
| Other Comprehensive Loss, Net of ($24,529 and $3,947) Attributable to Non-Controlling Interests |   |   |  693,929 |   |   |   |  70,806 |   |   |   | - |   |
|                                                                                            |   |   |          |   |   |   |         |   |   |   |   |   |
| Total Comprehensive Income Attributable to Agree Realty Corporation                             |   | $      | 14,372,866    |   |   | $      | 16,973,184   |   |   | $ | 15,017,427 |   |
|                                                                                            |   |   |          |   |   |   |         |   |   |   |   |   |
| Basic Earnings Per Share (Note 2)                                                               |   | $      | 1.65          |   |   | $      | 2.15         |   |   | $ | 1.95 |   |
|                                                                                            |   |   |          |   |   |   |         |   |   |   |   |   |
| Dilutive Earnings Per Share (Note 2)                                                            |   | $      | 1.64          |   |   | $      | 2.14         |   |   | $ | 1.95 |   |
|                                                                                            |   |   |          |   |   |   |         |   |   |   |   |   |
| Dividend Declared Per Common Share                                                              |   | $      | 2.04          |   |   | $      | 2.02         |   |   | $ | 2.00 |   |

----

|                                                         |   |         |      |   |    |   |   | Additional      |   |   |        |   |   |          |       |   | AccumulatedOther |   |
|--------------------------------------------------------------|--------|--------------|-----------|--------|---------|--------|--------|-----------------|--------|--------|-------------|--------|--------|---------------|------------|--------|------------------|--------|
|                                                         |   | Common Stock |      |   | Paid-In |   |   | Non-Controlling |   |   |        |   |   | Comprehensive |       |
|                                                         |   | Shares       |      |   | Amount  |   |   | Capital         |   |   | Interest    |   |   | Deficit       |       |   | Income (loss)    |   |
|                                                         |   |         |      |   |    |   |   |            |   |   |        |   |   |          |       |   |             |   |
| Balance, January 1, 2008                                     |   |         | 7,754,246 |   |    | $      | 775    |            |   | $      | 142,260,659 |   |   | $             | 5,896,180  |   |             | $      | (10,647,624 | ) |   | $ | - |   |
|                                                         |   |         |      |   |    |   |   |            |   |   |        |   |   |          |       |   |             |   |   |   |   |   |   |   |
| Issuance of restricted stock under the Equity Incentive Plan |   |         | 46,350    |   |    |   | 4      |            |   |   | -           |   |   |          | -          |   |             |   | - |   |   |   | - |   |
| Forfeiture of restricted stock                               |   |         | (4,800    | )      |    |   |   |            |   |   |        |   |   |          |       |   |             |   |   |   |   |   |   |   |
| Conversion of OP Units                                       |   |         | 68,134    |   |    |   | 7      |            |   |   | 501,025     |   |   |          | (501,025   | )      |             |   | - |   |   |   |   |   |
| Vesting of restricted stock                                  |   |         | -         |   |    |   | -      |            |   |   | 1,130,474   |   |   |          | -          |   |             |   | - |   |   |   | - |   |
| Dividends and distributions declared $2.00 per share         |   |         | -         |   |    |   | -      |            |   |   | -           |   |   |          | (1,313,025 | )      |             |   | (15,627,334 | ) |   |   | - |   |
| Net income                                                   |   |         | -         |   |    |   | -      |            |   |   | -           |   |   |          | 1,264,611  |   |             |   | 15,017,427 |   |   |   | - |   |
|                                                         |   |         |      |   |    |   |   |            |   |   |        |   |   |          |       |   |             |   |   |   |   |   |   |   |
| Balance, December 31, 2008                                   |   |         | 7,863,930 |   |    |   | 786    |            |   |   | 143,892,158 |   |   |          | 5,346,741  |   |             |   | (11,257,531 | ) |   |   | - |   |
|                                                         |   |         |      |   |    |   |   |            |   |   |        |   |   |          |       |   |             |   |   |   |   |   |   |   |
| Issuance of restricted stock under the Equity Incentive Plan |   |         | 74,350    |   |    |   | 8      |            |   |   | -           |   |   |          | -          |   |             |   | - |   |   |   | - |   |
| Conversion of OP Units                                       |   |         | 257,794   |   |    |   | 26     |            |   |   | 2,398,186   |   |   |          | (2,398,186 | )      |             |   | - |   |   |   | - |   |
| Vesting of restricted stock                                  |   |         | -         |   |    |   | -      |            |   |   | 1,175,757   |   |   |          | -          |   |             |   | - |   |   |   | - |   |
| Other comprehensive (loss)                                   |   |         | -         |   |    |   | -      |            |   |   | -           |   |   |          | (3,947     | )      |             |   | - |   |   |   | (70,806 | ) |
| Dividends and distributions declared $2.02 per share         |   |         | -         |   |    |   | -      |            |   |   | -           |   |   |          | (831,087   | )      |             |   | (16,419,257 | ) |   |   | - |   |
| Net income                                                   |   |         | -         |   |    |   | -      |            |   |   | -           |   |   |          | 950,046    |   |             |   | 17,043,990 |   |   |   | - |   |
|                                                         |   |         |      |   |    |   |   |            |   |   |        |   |   |          |       |   |             |   |   |   |   |   |   |   |
| Balance, December 31, 2009                                   |   |         | 8,196,074 |   |    |   | 820    |            |   |   | 147,466,101 |   |   |          | 3,063,567  |   |             |   | (10,632,798 | ) |   |   | (70,806 | ) |
|                                                         |   |         |      |   |    |   |   |            |   |   |        |   |   |          |       |   |             |   |   |   |   |   |   |   |
| Issuance of common stock, net of issuance costs              |   |         | 1,495,000 |   |    |   | 150    |            |   |   | 31,072,596  |   |   |          | -          |   |             |   | - |   |   |   | - |   |
| Issuance of restricted stock under the Equity Incentive Plan |   |         | 88,550    |   |    |   | 9      |            |   |   | -           |   |   |          | -          |   |             |   | - |   |   |   | - |   |
| Forfeiture of restricted stock                               |   |         | (20,610   | )      |    |   | (3     | )               |   |   | -           |   |   |          |       |   |             |   |   |   |   |   |   |   |
| Vesting of restricted stock                                  |   |         | -         |   |    |   | -      |            |   |   | 1,166,656   |   |   |          | -          |   |             |   | - |   |   |   | - |   |
| Other comprehensive (loss)                                   |   |         | -         |   |    |   | -      |            |   |   | -           |   |   |          | (24,529    | )      |             |   | - |   |   |   | (693,929 | ) |
| Dividends and distributions declared $2.04 per share         |   |         | -         |   |    |   | -      |            |   |   | -           |   |   |          | (709,143   | )      |             |   | (19,136,249 | ) |   |   | - |   |
| Net income                                                   |   |         | -         |   |    |   | -      |            |   |   | -           |   |   |          | 561,039    |   |             |   | 15,066,795 |   |   |   | - |   |
|                                                         |   |         |      |   |    |   |   |            |   |   |        |   |   |          |       |   |             |   |   |   |   |   |   |   |
| Balance, December 31, 2010                                   |   |         | 9,759,014 |   |    | $      | 976    |            |   | $      | 179,705,353 |   |   | $             | 2,890,934  |   |             | $      | (14,702,252 | ) |   | $ | (764,735 | ) |

----

| Year Ended December 31,                                                                                             |   | 2010   |        |   | 2009   |   |       | 2008   |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|------------|--------|--------|
|                                                                                                                               |   |   |        |   |   |   |       |   |   |
| Cash Flows From Operating Activities                                                                                               |   |   |        |   |   |   |       |   |   |
| Net income                                                                                                                         |   | $      | 15,627,834  |   |   | $      | 17,994,036 |   |   | $ | 16,282,038 |   |
| Adjustments to reconcile net income to net cash provided by operating activities                                                   |   |   |        |   |   |   |       |   |   |   |   |   |
| Depreciation                                                                                                                       |   |   | 5,810,159   |   |   |   | 5,643,350  |   |   |   | 5,320,394 |   |
| Amortization                                                                                                                       |   |   | 409,920     |   |   |   | 354,212    |   |   |   | 237,297 |   |
| Stock-based compensation                                                                                                           |   |   | 1,166,656   |   |   |   | 1,175,757  |   |   |   | 1,130,474 |   |
| Impairment charge                                                                                                                  |   |   | 8,140,000   |   |   |   | -          |   |   |   | - |   |
| Gain on sale of assets                                                                                                             |   |   | (4,737,968  | )      |   |   | -          |   |   |   | - |   |
| (Increase) decrease in accounts receivable                                                                                         |   |   | 656,707     |   |   |   | (1,022,034 | )      |   |   | (194,437 | ) |
| (Increase) decrease in other assets                                                                                                |   |   | (114,467    | )      |   |   | 69,172     |   |   |   | (112,144 | ) |
| (Decrease) increase in accounts payable                                                                                            |   |   | (101,367    | )      |   |   | 267,275    |   |   |   | (221,317 | ) |
| Decrease in deferred revenue                                                                                                       |   |   | (689,550    | )      |   |   | (689,550   | )      |   |   | (689,550 | ) |
| Increase (decrease) in accrued interest                                                                                            |   |   | (39,858     | )      |   |   | (239,784   | )      |   |   | 171,625 |   |
| Increase (decrease) in tenant deposits                                                                                             |   |   | (16,883     | )      |   |   | 27,208     |   |   |   | 5,992 |   |
|                                                                                                                               |   |   |        |   |   |   |       |   |   |   |   |   |
| Net Cash Provided By Operating Activities                                                                                          |   |   | 26,111,183  |   |   |   | 23,579,642 |   |   |   | 21,930,372 |   |
|                                                                                                                               |   |   |        |   |   |   |       |   |   |   |   |   |
| Cash Flows From Investing Activities                                                                                               |   |   |        |   |   |   |       |   |   |   |   |   |
| Acquisition of real estate investments (including capitalized interest of $319,235 in 2010, $220,782 in 2009 and $557,645 in 2008) |   |   | (38,821,775 | )      |   |   | (8,748,856 | )      |   |   | (21,418,961 | ) |
| Payment of lease acquisition costs                                                                                                 |   |   | (8,202,727  | )      |   |   | -          |   |   |   | - |   |
| Net proceeds from sale of assets                                                                                                   |   |   | 14,204,502  |   |   |   | -          |   |   |   | - |   |
|                                                                                                                               |   |   |        |   |   |   |       |   |   |   |   |   |
| Net Cash Used In Investing Activities                                                                                              |   |   | (32,820,000 | )      |   |   | (8,748,856 | )      |   |   | (21,418,961 | ) |

----

|  Year Ended December 31,                            |   | 2010   |        |   | 2009   |   |        | 2008   |   |
|-------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
|                                                                    |   |   |        |   |   |   |        |   |   |
| Cash Flows From Financing Activities                                    |   |   |        |   |   |   |        |   |   |
| Proceeds from common stock offering                                     |   |   | 31,072,752  |   |   |   | -           |   |   |   | - |   |
| Mortgage proceeds                                                       |   |   | -           |   |   |   | 11,358,000  |   |   |   | 24,800,000 |   |
| Line-of-credit net (payments) borrowings                                |   |   | (619,746    | )      |   |   | (3,945,000  | )      |   |   | (3,855,000 | ) |
| Dividends and limited partners’ distributions paid                |   |   | (19,053,813 | )      |   |   | (17,129,368 | )      |   |   | (16,918,952 | ) |
| Payments of mortgages payable                                           |   |   | (4,026,022  | )      |   |   | (3,428,895  | )      |   |   | (2,936,471 | ) |
| Payments of payables for capital expenditures                           |   |   | (352,430    | )      |   |   | (850,225    | )      |   |   | (1,069,734 | ) |
| Payments for financing costs                                            |   |   | (39,149     | )      |   |   | (697,004    | )      |   |   | (287,666 | ) |
| Payments of leasing costs                                               |   |   | (368,167    | )      |   |   | (118,296    | )      |   |   | (119,550 | ) |
|                                                                    |   |   |        |   |   |   |        |   |   |   |   |   |
| Net Cash Used In Financing Activities                                   |   |   | 6,613,423   |   |   |   | (14,810,788 | )      |   |   | (387,373 | ) |
|                                                                    |   |   |        |   |   |   |        |   |   |   |   |   |
| Net Increase (Decrease) In Cash and Cash Equivalents                    |   |   | (95,394     | )      |   |   | 19,998      |   |   |   | 124,038 |   |
|                                                                    |   |   |        |   |   |   |        |   |   |   |   |   |
| Cash and Cash Equivalents, beginning of year                            |   |   | 688,675     |   |   |   | 668,677     |   |   |   | 544,639 |   |
|                                                                    |   |   |        |   |   |   |        |   |   |   |   |   |
| Cash and Cash Equivalents, end of year                                  |   | $      | 593,281     |   |   | $      | 688,675     |   |   | $ | 668,677 |   |
|                                                                    |   |   |        |   |   |   |        |   |   |   |   |   |
| Supplemental Disclosure of Cash Flow Information                        |   |   |        |   |   |   |        |   |   |   |   |   |
| Cash paid for interest (net of amounts capitalized)                     |   | $      | 4,487,923   |   |   | $      | 4,590,239   |   |   | $ | 4,835,277 |   |
|                                                                    |   |   |        |   |   |   |        |   |   |   |   |   |
| Supplemental Disclosure of Non-Cash Transactions                        |   |   |        |   |   |   |        |   |   |   |   |   |
|                                                                    |   |   |        |   |   |   |        |   |   |   |   |   |
| Dividends and limited partners’ distributions Declared and unpaid |   | $      | 5,145,740   |   |   | $      | 4,354,163   |   |   | $ | 4,233,232 |   |
| Conversion of OP Units                                                  |   | $      | -           |   |   | $      | 2,398,186   |   |   | $ | 501,025 |   |
| Shares issued under Stock Incentive Plan                                |   | $      | 2,068,866   |   |   | $      | 1,159,316   |   |   | $ | 1,364,459 |   |
| Real estate investments financed with accounts payable                  |   | $      | 286,078     |   |   | $      | 352,430     |   |   | $ | 850,225 |   |

----

| 1.     | The Company            | Agree Realty Corporation (the “Company”) is a self-administered, self-managed real estate investment trust (“REIT”), which develops, acquires, owns and operates retail properties, which are primarily leased to national and regional retail companies under net leases. At December 31, 2010, the Company's properties are comprised of 69 single tenant retail facilities and 12 community shopping centers located in 17 states. Included in the 81 total properties were two properties held for sale as of December 31, 2010.  During the year ended December 31, 2010, approximately 97% of the Company's annual base rental revenues was received from national and regional tenants under long-term leases, including approximately 31% from Walgreen Co. (“Walgreen”), 20% from Borders Group,Inc. (“Borders”), and 11% from Kmart Corporation, a wholly-owned subsidiary of Sears Holdings Corporation (“Kmart”).                                                                                                                                                                                                                                                                                                                                                                       |
|--------|------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 2.     | Summary of Significant | Principles of Consolidation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Accounting Policies    | The consolidated financial statements of Agree Realty Corporation include the accounts of the Company, its majority-owned partnership, Agree Limited Partnership (the “Operating Partnership”), and its wholly-owned subsidiaries. The Company controlled, as the sole general partner, 96.56% and 95.93% of the Operating Partnership as of December 31, 2010 and 2009, respectively. All material intercompany accounts and transactions are eliminated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                   | Use of Estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                   | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of (1) assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, and (2) revenues and expenses during the reporting period. Actual results could differ from those estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                   | Fair Values of Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                   | Certain of the Company’s assets and liabilities are disclosed at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  In determining fair value, the Company uses various valuation methods including the market, income and cost approaches.  The assumptions used in the application of these valuation methods are developed from the perspective of market participants, pricing the asset or liability.  Inputs used in the valuation methods can be either readily observable, market corroborated, or generally unobservable inputs.  Whenever possible the Company attempts to utilize valuation methods that maximize the uses of observable inputs andminimizes the use of unobservable inputs.  Based on the operability of the inputs used in the valuation methods the Company is required to provide the following information according to the fair value hierarchy.  The fair value hierarchy ranks the quality and reliability of the information used to determine fair values.  Assets and liabilities measured, reported and/or disclosed at fair value will be classified and disclosed in one of the following three categories: |

----

|   |   | Level 1 – Quoted market prices in active markets for identical assets or liabilities.    Level 2 – Observable market based inputs or unobservable inputs that are corroborated by market data.  Level 3 – Unobservable inputs that are not corroborated by market data.   The table below sets forth the Company’s fair value hierarchy for liabilities measured or disclosed at fair value as of December 31, 2010. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                   |   | Level 1                    |    |   | Level 2 |   |       | Level 3 |   |
|------------------------|--------|---------------------------------|---------|--------|--------------|--------|------------|--------------|--------|
| Liability:             |   |                            |    |   |         |   |       |         |   |
| Interest rate swap     |   | $                               | — |   |         | $      | 793,211    |         |   | $ | — |   |
| Fixed rate mortgage    |   | $                               | — |   |         | $      | —    |         |   | $ | 48,012,000 |   |
| Variable rate mortgage |   | $                               | — |   |         | $      | —    |         |   | $ | 22,255,000 |   |
| Variable rate debt     |   | $      | — |   |         | $      | 28,380,254 |         |   | $ | — |   |

|   |   | The carrying amounts of the Company’s short-term financial instruments, which consist of cash, cash equivalents, receivables, and accounts payable, approximate their fair values. The fair value of the interest rate swap was derived using estimates to settle the interest rate swap agreement, which is based on the net present value of expected future cash flows on each leg of the swap utilizing market-based inputs and discount rates reflecting the risks involved.  The fair value of fixed and variable rate mortgages was derived using the present value of future mortgage payments based on estimated current market interest rates of 6.31% and 7.59% at December 31, 2010 and 2009, respectively.  The fair value of variable rate debt is estimated to be equal to the face value of the debt becausethe interest rates are floating and is considered to approximate fair value. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Investments in Real Estate – Carrying Value of Assets                                                                                                                                                                                                                                                                                                                                                        |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Real estate assets are stated at cost less accumulated depreciation. All costs related to planning, development and construction of buildings prior to the date they become operational, including interest and real estate taxes during the construction period, are capitalized for financial reporting purposes and recorded as “Property under development” until construction has been completed. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Subsequent to completion of construction, expenditures for property maintenance are charged to operations as incurred, while significant renovations are capitalized.                                                                                                                                                                                                                                              |

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|   | Depreciation and Amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Depreciation expense is computed using a straight-line method and estimated useful lives for buildings and improvements of 20 to 40 years and equipment and fixtures of 5 to 10 years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Purchase Accounting for Acquisitions of Real Estate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | Acquired real estate assets have been accounted for using the purchase method of accounting and accordingly, the results of operations are included in the consolidated statements of income from the respective dates of acquisition. The Company allocates the purchase price to (i) land and buildings based on management’s internally prepared estimates and (ii) identifiable intangible assets or liabilities generally consisting of above-market and below-market in-place leases and in-place leases. The Company uses estimates of fair value based on estimated cash flows, using appropriate discount rates, and other valuation techniques, including management’s analysis of comparable properties in the existing portfolio, to allocate the purchase price to acquired tangible and intangible assets.  The estimated fair value of above-market and below-market in-place leases for acquired properties is recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. During 2010, the Company recorded $8,202,727 as the fair value of above market leases and other intangible assets.  The aggregate fair value of other intangible assets consisting of in-place, at market leases, is estimated based on internally developed methods to determine the respective property values and are included in lease intangibles cost in the consolidated balance sheets. Factors considered by management in their analysis include an estimate of costs to execute similar leases and operating costs saved. The fair value of intangible assets acquired is amortized to depreciation and amortization on the consolidated statements of income over the remaining term of the respective leases.  The weighted average amortization period for the lease intangible costs is 22.5 years. |

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|   | Investment in Real Estate – Impairment evaluation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | Management periodically assesses its Real Estate Investments for possible impairment indicating that the carrying value of the asset, including accrued rental income, may not be recoverable through operations.  Events or circumstances that may occur include significant changes in real estate market conditions and the ability of the Company to re-lease or sell properties that are currently vacant or become vacant.  Management determines whether an impairment in value has occurred by comparing the estimated future cash flows (undiscounted and without interest charges), including the residual value of the real estate, with the carrying cost of the individual asset.  If an impairment is indicated, a loss will be recorded for the amount by which the carrying value of the asset exceedsfair value. |

|   | Cash and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.  The Company maintains its cash and cash equivalents at a financial institution.  The account balances periodically exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance coverage, and as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. |

|   | Accounts Receivable – Tenants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | Accounts receivable from tenants are unsecured and reflect primarily reimbursement of specified common area expenses. Amounts outstanding in excess of 30 days are considered past due.  The Company determines its allowance for uncollectible accounts based on historical trends, existing economic conditions, and known financial position of its tenants. Tenant accounts receivable are written-off by the Company in the year when receipt is determined to be remote.                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | Unamortized Deferred Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | Deferred expenses are stated net of total accumulated amortization. The nature and treatment of these capitalized costs are as follows: (1) financing costs, consisting of expenditures incurred to obtain long-term financing, are being amortized using the effective interest method over the term of the related loan, (2) leasing costs, which are amortized on a straight-line basis over the term of the related lease and (3) lease intangibles, which are amortized over the remaining term of the lease acquired.  The Company incurred expenses of $409,920, $354,212 and $237,297 for the years ended December 31, 2010, 2009 and 2008, respectively. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | Other Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | The Company records prepaid expenses, deposits, vehicles, furniture and fixtures, leasehold improvements, acquisition advances and miscellaneous receivables as other assets in the accompanying balance sheets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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|   | Accounts Payable - Capital Expenditures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Included in accounts payable are amounts related to the construction of buildings. Due to the nature of these expenditures, they are reflected in the statements of cash flows as a non-cash financing activity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Revenue Recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Minimum rental income attributable to leases is recorded when due from tenants. Certain leases provide for additional percentage rents based on tenants' sales volume. These percentage rents are recognized when determinable by the Company. In addition, leases for certain tenants contain rent escalations and/or free rent during the first several months of the lease term; however, such amounts are not material.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Taxes Collected and Remitted to Governmental Authorities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | The Company reports taxes, collected from tenants that are to be remitted to governmental authorities, on a net basis and therefore does not include the taxes in revenue.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Operating Cost Reimbursement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Substantially all of the Company's leases contain provisions requiring tenants to pay as additional rent a proportionate share of operating expenses such as real estate taxes, repairs and maintenance, insurance, etc. The related revenue from tenant billings is recognized as operating cost reimbursement in the same period the expense is recorded.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | The Company has made an election to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”)and related regulations.  The Company generally will not be subject to federal income taxes on amounts distributed to stockholders, providing it distributes 100 percent of its REIT taxable income and meets certain other requirements for qualifying as a REIT.  For each of the years in the three-year period ended December 31, 2010, the Company believes it has qualified as a REIT.  Notwithstanding the Company’s qualification for taxation as a REIT, the Company is subject to certain state taxes on its income and real estate.   The Company and its taxable REIT subsidiaries (“TRS”) have made a timely TRS election pursuant to the provisions of the REIT Modernization Act.  A TRS is able to engage in activities resulting in income that previously would have been disqualified from being eligible REIT income under the federal income tax regulations.  As a result, certain activities of the Company which occur within its TRS entity are subject to federal and state income taxes (See Note 10).  All provisions for federal income taxes in the accompanying consolidated financial statements are attributable to the Company’s TRS. |

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|   | Dividends                                                                                                                                                                                                  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                       |
|   | The Company declared dividends of $2.04, $2.02 and $2.00 per share during the years ended December 31, 2010, 2009, and 2008; the dividends have been reflected for federal income tax purposes as follows: |

|   | December 31, |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|--------|-------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   | Ordinary income   |   | $      | 1.84   |   |   | $      | 2.02   |   |   | $ | 1.96 |   |
|   | Return of capital |   |   | .20    |   |   |   | -      |   |   |   | .04 |   |
|   |              |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Total             |   | $      | 2.04   |   |   | $      | 2.02   |   |   | $ | 2.00 |   |

|   | The aggregate federal income tax basis of Real Estate Investments is approximately $22.3 million less than the financial statement basis.                                                                                                                                                                                            |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                 |
|   | Earnings Per Share                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                 |
|   | Earnings per share have been computed by dividing the net income by the weighted average number of common shares outstanding.  Diluted earnings per share is computed by dividing net income by the weighted average common and potential dilutive common shares outstanding in accordance with the treasury stock method. |
|   |                                                                                                                                                                                                                                                                                                                                 |
|   | The following is a reconciliation of the denominator of the basic net earnings per common share computation to the denominator of the diluted net earnings per common share computation for each of the periods presented:                                                                                                           |

|   | Year Ended December 31,                                                  |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|--------|-----------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|   |                                                                                    |   |   |      |   |   |   |      |   |   |
|   | Weighted average number of common shares outstanding                                    |   |   | 9,322,509 |   |   |   | 8,086,840 |   |   |   | 7,810,692 |   |
|   | Unvested restricted stock                                                               |   |   | 166,850   |   |   |   | 140,980   |   |   |   | 104,050 |   |
|   | Weighted average number of common shares outstanding used in basic earnings per share   |   |   | 9,155,659 |   |   |   | 7,945,860 |   |   |   | 7,706,642 |   |
|   |                                                                                    |   |   |      |   |   |   |      |   |   |   |   |   |
|   | Weighted average number of common shares outstanding used in basic earnings per share   |   |   | 9,155,659 |   |   |   | 7,945,860 |   |   |   | 7,706,642 |   |
|   |                                                                                    |   |   |      |   |   |   |      |   |   |   |   |   |
|   | Effect of dilutive securities                                                           |   |   |      |   |   |   |      |   |   |   |   |   |
|   | Restricted stock                                                                        |   |   | 35,840    |   |   |   | 20,099    |   |   |   | 11,893 |   |
|   | Weighted average number of common shares outstanding used in diluted earnings per share |   |   | 9,191,500 |   |   |   | 7,965,959 |   |   |   | 7,718,535 |   |

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|   | Stock Based Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | The Company estimates fair value of restricted stock and stock option grants at the date of grant and amortize those amounts into expense on a straight-line basis or amount vested, if greater, over the appropriate vesting period.  No stock options were issued or vested during 2010, 2009 or 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | Recent Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | Effective January 1, 2010, companies are required to separately disclose the amounts of significant transfers of assets and liabilities into and out of Level 1, Level 2 and Level 3 of the fair value hierarchy and the reasons for those transfers.  Companies must also develop and disclose their policy for determining when transfers between levels are recognized.  In addition, companies are required to provide fair value disclosures of each class rather than each major category of assets and liabilities.  For fair value measurements using significant other observable inputs (Level 2) or significant unobservable inputs (Level 3), companies are required to disclose the valuation technique and the inputs used in determining fair value for each class of assets and valuation technique andthe inputs used in determining fair value for each class of assets and liabilities.  Adoption of this standard did not have a material effect on the Company’s consolidated results of operations or financial position.   Effective January 1, 2010, companies are required to separately disclose purchases, sales, issuances and settlements on a gross basis in the reconciliation of recurring Level 3 fair value measurements.  Adoption of this standard did not have a material effect on the Company’s consolidated results of operations or financial position. |

| 3. | Costs and Estimated Earnings on Uncompleted Contracts | For contracts where the Company does not retain ownership of real property developed and received fee income for managing the development project, the Company uses the percentage of completion accounting method.  Under this approach, income is recognized based on the status of the uncompleted contracts and the current estimates of costs to complete.  The percentage of completion is determined by the relationship of costs incurred to the total estimated costs of the contract.  Provisions are made for estimated loses on uncompleted contracts in the period in which such losses are determined.  Changes in job performance, job conditions, and estimated profitability including those arising from contract penalty provisions and final contract settlements, may result in revisionsto costs and income.  Such revisions are recognized in the period in which they are determined.  Claims for additional compensation due to the Company are recognized in contract revenues when realization is probable and the amount can be reliably estimated. |
|----|-------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |                                   |   | 2010   |   |   | 2009   |   |
|--------|----------------------------------------|--------|--------|--------|--------|--------|--------|
|   | Cost incurred on uncompleted Contracts |   | $      | -      |   |   | $      | 520,357 |   |
|   | Estimated earnings                     |   |   | -      |   |   |   | 409,643 |   |
|   |                                   |   |   |   |   |   |   |   |   |
|   | Earned revenue                         |   |   | -      |   |   |   | 930,000 |   |
|   | Less billings to date                  |   |   | -      |   |   |   | - |   |
|   |                                   |   |   |   |   |   |   |   |   |
|   | Total                                  |   | $      | -      |   |   | $      | 930,000 |   |

|   |                           | Total unbilled receivable at December 31, 2009 was $930,000 and is included in accounts receivable – tenants on the consolidated balance sheet.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.     | Impairment – Real Estate | Management periodically assesses its real estate for possible impairment whenever certain events or changes in circumstances indicate that the carrying amount of the asset, including accrued rental income, may not be recoverable through operations.  Events or circumstances that may occur include significant changes in real estate market conditions and the ability of the Company to re-lease or sell properties that are vacant or become vacant.  Impairments are measured as the amount by which the current book value of the asset exceeds the estimated fair value of the asset.  As a result of the Company’s review of Real Estate Investments, including identifiable intangible assets, the Company recognized the following real estate impairments for the year ended December 31: |

|   |                    |   | 2010   |      |   | 2009   |   |   | 2008   |   |
|--------|-------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|
|   | Continuing operations   |   | $      | 7,700,000 |   |   | $      | -      |   |   | $ | - |   |
|   | Discontinued operations |   |   | 440,000   |   |   |   | -      |   |   |   | - |   |
|   |                    |   |   |      |   |   |   |   |   |   |   |   |   |
|   | Total                   |   | $      | 8,140,000 |   |   | $      | -      |   |   | $ | - |   |

|   | Real Estate Investments measured as fair value due to impairment charges are considered fair value measurements on a non recurring basis.  The following table presents the assets and liabilities carried on the balance sheet within the fair value valuation hierarchy (as described above) as of December 31, 2010, for which a nonrecurring change in fair value has been recorded during the year ended December 31, 2010. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2010 (in thousands): |   | Fair Value as ofmeasurementdate |   |   | Quoted pricesin activemarkets for identical assets (Level 1) |   |   | Significant otherobservableinputs(Level 2) |   |   | Significantunobservableinputs(Level 3) |   |   | ImpairmentCharge |   |
|--------|--------------------------------|--------|------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------|--------|--------|---------------------------------------------|--------|--------|------------------|--------|
|   | Real Estate Investments        |   | $                                              | 16,137 |   |                                                                                            | $      | 8,577  |                                                 |   | $      | 1,386                                       |   |   | $                | 6,174  |   |   | $ | 8,140 |   |

----

|   | The loss of $8.14 million represents an impairment charge related to Real Estate Investments which was included in net income during the year ended December 31, 2010.  The fair value of certain Real Estate Investments was calculated differently based on available information.  Real Estate Investments considered to be measured based on Level 1 inputs were based on actual sales negotiations and bona fide purchase offers received from third parties.  Real Estate Investments considered to be measured based on Level 2 inputs were based on broker opinions of value or analysis of recent comparable sales transactions.  Real Estate Investments considered to be measured based on Level 3 inputs were based on an internal valuation model using discounted cash flow analyses and incomecapitalization using market lease rates and market cap rates.  These cash flow projections incorporate assumptions developed from the perspective of market participants valuing the Real Estate Investments.  During 2009 and 2008, the Company recorded no impairment charge related to Real Estate Investments. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Total Comprehensive Income | The following is a reconciliation of net income to comprehensive income attributable to Agree Realty Corporation for the years ended December 31, 2010 and 2009.  For 2008 Net Income Attributable to Agree Realty Corporation and Total Comprehensive Income Attributable to Agree Realty Corporation were identical. |
|----|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                          |   | 2010                |       |   | 2009   |                |
|--------|---------------------------------------------------------------|--------|---------------------|------------|--------|--------|---------------------|
|   | Net income                                                    |   | $                   | 15,627,834 |   |   | $                   | 17,994,036 |   |
|   | Other comprehensive income (loss)                             |   |                | (718,458   | )      |   |                | (74,753 | ) |
|   | Total comprehensive income before non-controlling interests   |   |                | 14,909,376 |   |   |                | 17,919,283 |   |
|   | Less:  non-controlling interest                     |   |                | 561,039    |   |   |                | 950,046 |   |
|   | Total comprehensive income after non-controlling interest     |   |                | 14,348,337 |   |   |                | 16,969,237 |   |
|   | Non-controlling interest of comprehensive income (loss)       |   |                | (24,529    | )      |   |                | (3,947 | ) |
|   | Comprehensive income attributable to Agree Realty Corporation |   | $    | 14,372,866 |   |   | $    | 16,973,184 |   |

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| 6. | Mortgages Payable | Mortgages payable consisted of the following: |
|----|-------------------|-----------------------------------------------|

|   | December 31,                                                                                                                                                                                                                                                                                                          |   | 2010   |       |   | 2009   |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|   |                                                                                                                                                                                                                                                                                                                  |   |   |       |   |   |   |
|   | Note payable in monthly installments of $42,000 plus interest at 150 basis points over LIBOR (1.76% and 1.73% at December 31, 2010 and 2009 respectively).  A final balloon payment in the amount of $22,318,478 is due on July 14, 2013 unless extended for a two year period at the option of the Company |   | $      | 23,666,828 |   |   | $      | 24,153,965 |   |
|   |                                                                                                                                                                                                                                                                                                                  |   |   |       |   |   |   |   |   |
|   | Note payable in monthly installments of $153,838 including interest at 6.90% per annum, with the final monthly payment due January 2020; collateralized by related real estate and tenants’ leases                                                                                                              |   |   | 12,433,134 |   |   |   | 13,385,336 |   |
|   |                                                                                                                                                                                                                                                                                                                  |   |   |       |   |   |   |   |   |
|   | Note payable in monthly installments of $91,675 including interest at 6.27% per annum, with a final monthly payment due July 2026; collateralized by related real estate and tenants’ leases                                                                                                                    |   |   | 10,924,291 |   |   |   | 11,325,671 |   |
|   |                                                                                                                                                                                                                                                                                                                  |   |   |       |   |   |   |   |   |
|   | Note payable in monthly installments of $128,205 including interest at 6.20% per annum, with a final monthly payment due November 2018; collateralized by related real estate and tenants’ leases                                                                                                               |   |   | 9,605,696  |   |   |   | 10,517,686 |   |
|   |                                                                                                                                                                                                                                                                                                                  |   |   |       |   |   |   |   |   |
|   | Note payable in monthly installments of $99,598 including interest at 6.63% per annum, with the final monthly payment due February 2017; collateralized by related real estate and tenants’ leases                                                                                                              |   |   | 6,036,060  |   |   |   | 6,803,218 |   |
|   |                                                                                                                                                                                                                                                                                                                  |   |   |       |   |   |   |   |   |
|   | Note payable in monthly installments of $57,403 including interest at 6.50% per annum, with the final monthly payment due February 2023; collateralized by related real estate and tenant lease                                                                                                                       |   |   | 5,781,587  |   |   |   | 6,083,869 |   |
|   |                                                                                                                                                                                                                                                                                                                  |   |   |       |   |   |   |   |   |
|   | Note payable in monthly installments of $25,631 including interest at 7.50% per annum, with the final monthly payment due May 2022; collateralized by related real estate and tenant lease                                                                                                                            |   |   | 2,354,450  |   |   |   | 2,480,272 |   |
|   |                                                                                                                                                                                                                                                                                                                  |   |   |       |   |   |   |   |   |
|   | Note payable in monthly installments of $10,885 including interest at 6.85% per annum, with the final monthly payment due December 2017; collateralized by related real estate and tenant lease                                                                                                                       |   |   | 724,734    |   |   |   | 802,785 |   |
|   |                                                                                                                                                                                                                                                                                                                  |   |   |       |   |   |   |   |   |
|   | Total                                                                                                                                                                                                                                                                                                                 |   | $      | 71,526,780 |   |   | $      | 75,552,802 |   |

----

|   | In February 2011, the bankruptcy filing of one of our tenants caused a non-monetary default under three non-recourse mortgage loans amounting to approximately $8.9 million secured by a total of three properties with 366,000 square feet of gross leasable area representing $1.3 million of annualized base rents at December 31, 2010.    In addition, while the bankruptcy filing of the tenant is not a direct event of default under four non-recourse, cross-collateralized and cross-defaulted mortgage loans, we anticipate that these loans will go into default as a result of a tenant store closure.  These four non-recourse mortgage loans amounting to approximately $9.6 million are secured by four properties with 103,000 square feet of gross leasable area representing $2.1 million of annualized base rents as of December 31, 2010.    The Company is in the process of commencing negotiations with lenders regarding an appropriate course of action.  We can provide no assurance that our negotiations with the lenders will result in favorable outcomes to us.  Failure to restructure these mortgage obligations could result in default and foreclosure actions and loss of the mortgaged properties.   Future scheduled annual maturities of mortgages payable for years ending December 31, assuming no mortgage defaults, are as follows: 2011 - $4,295,502; 2012 - $4,583,021; 2013 - $26,910,481; 2014 - $4,600,685; 2015 - $4,912,733 and $26,224,358 thereafter.  The weighted average interest rate at December 31, 2010 and 2009 was 5.63% and 5.66%, respectively. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.     | Notes Payable | The Operating Partnership has in place a $55 million line-of-credit agreement (the “Credit Facility”), which is guaranteed by the Company up to the maximum amount and for the full term. The agreement expires in November 2011.   Advances under the Credit Facility bear interest within a range of one-month to 12-month LIBOR plus 100 basis points to 150 basis points or the bank's prime rate, at the option of the Company, based on certain factors such as the ratio of the Company’s indebtedness to the capital value of its properties.  In addition, the Company must maintain certain leverage and debt service coverage ratios, maintain its adjusted net worth at a minimum level, maintain its tax status as a REIT, and distribute no more than 95% of its adjusted funds fromoperations. The facility also requires that the Company pay a non-use fee of .125% of the unfunded balance if its outstanding balance is greater than $25 million or .20% of the unfunded balance if its outstanding balance is less than $25 million.  The Credit Facility is used to fund property acquisitions and development activities. At December 31, 2010 and 2009, $25,380,254 and $28,500,000, respectively, was outstanding under this facility with a weighted average interest rate of 1.26% and 1.23%, respectively.  The Credit Facility’s covenants were all complied with at December 31, 2010. |
|--------|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |          | In addition, the Company maintains a $5,000,000 line-of-credit agreement that matures in November 2011.  Monthly interest payments are required, either at the bank's prime rate less 75 basis points, or 150 basis points in excess of the one-month to 12-month LIBOR rate, at the option of the Company.  At December 31, 2010 and 2009, $3,000,000 and $500,000, respectively, was outstanding under this agreement with a weighted average interest rate of 2.50% and 2.50%, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

| 8. | Dividends and Distribution Payable | On December 6, 2010 the Company declared a dividend of $.51 per share for the quarter ended December 31, 2010. The holders of OP Units were entitled to an equal distribution per OP Unit held as of December 31, 2010. The dividends and distributions payable are recorded as liabilities in the Company's consolidated balance sheet at December 31, 2010. The dividend has been reflected as a reduction of stockholders' equity and the distribution has been reflected as a reduction of the limited partners' minority interest. These amounts were paid on January 4, 2011.   On December 7, 2009 the Company declared a dividend of $.51 per share for the quarter ended December 31, 2009. The holders of OP Units were entitled to an equal distribution per OP Unit held as of December 31, 2009. The dividends and distributions payable are recorded as liabilities in the Company's consolidated balance sheet at December 31, 2009. The dividend has been reflected as a reduction of stockholders' equity and the distribution has been reflected as a reduction of stockholder equity and the distribution has been reflected as a reduction of the limited partners’ minority interest.  These amounts were paid on January 5, 2010. |
|----|------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | Derivative Instruments and Hedging Activity | On January 2, 2009, the Company entered into an interest rate swap agreement for a notional amount of $24,501,280, effective on January 2, 2009 and ending on July 1, 2013. The notional amount decreases over the term to match the outstanding balance of the hedge borrowing. The Company entered into this derivative instrument to hedge against the risk of changes in future cash flows related to changes in interest rates on $24,501,280 of the total variable-rate borrowings outstanding. Under the terms of the interest rate swap agreement, the Company will receive from the counterparty interest on the notional amount based on 1.5% plus one-month LIBOR and will pay to the counterparty a fixed rate of 3.744%. This swap effectively converted $24,501,280 of variable-rate borrowings to fixed-rate borrowings beginning onJanuary 2, 2009 and through July 1, 2013. Companies are required to recognize all derivative instruments as either assets or liabilities at fair value on the balance sheet. The Company has designated this derivative instrument as a cash flow hedge. As such, changes in the fair value of the derivative instrument are recorded as a component of other comprehensive income (loss) for the year ended December 31, 2010 to the extent of effectiveness. The ineffective portion of the change in fair value of the derivative instrument is recognized in interest expense.  For the year ended December 31, 2010, the Company has determined this derivative instrument to be an effective hedge. The Company does not use derivative instruments for trading or other speculative purposes and it did not have any other derivative instruments or hedging activities as of December 31, 2010. |
|----|---------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | Income Taxes | In June 2006, the Financial Accounting Standards Board (“FASB”) issued an interpretation which clarified the accounting for uncertainty in income taxes recognized in a company’s financial statements.  The interpretation prescribed a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  The interpretation also provided guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. |
|-----|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | The Company was subject to the provisions of FASB Accounting Standard Codification 740-10 (“FASB ASC 740-10”) as of January 1, 2007, and has analyzed its various federal and state filing positions.  The Company believes that its income tax filing positions and deductions are documented and supported.  Additionally the Company believes that its accruals for tax liabilities are adequate.  Therefore, no reserves for uncertain income tax positions have been recorded pursuant to FASB ASC 740-10.  In addition, the Company did not record a cumulative effect adjustment related to the adoption of FASB ASC 740-10.  The Company’s Federal income tax returns are open for examination by taxing authorities for all tax years after December 31,2006.  The Company has elected to record any related interest and penalties, if any as income tax expense on the consolidated statements of income. For income tax purposes, the Company has certain TRS entities that have been established and in which certain real estate activities are conducted. As of December 31, 2010, the Company has estimated a current income tax liability of approximately $17,000 and a deferred income tax liability in the amount of $705,000.  This deferred income tax balance represents the federal and state tax effect of deferring income tax in 2007 on the sale of an asset under section 1031 of the Internal Revenue Code.  This transaction accrued within the TRS entities described above. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.    | Stock Incentive Plan | The Company established a stock incentive plan in 1994 (the “1994 Plan”) under which options were granted.   The options, had an exercise price equal to the initial public offering price ($19.50/share), could be exercised in increments of 25% on each anniversary of the date of the grant, and expire upon employment termination. All options granted under the 1994 Plan have been exercised.  In 2005, the Company’s stockholders approved the 2005 Equity Incentive Plan (the “2005 Plan”), which replaced the 1994 Plan.  The 2005 Plan authorizes the issuance of a maximum of one million shares of common stock. No options were granted during 2010, 2009 or 2008. |
|--------|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 12.    | Stock Based Awards   | As part of the Company's 2005 Equity Incentive Plan, restricted common stock is granted to certain employees. As of December 31, 2010, there was $2,855,235 of total unrecognized compensation costs related to the outstanding restricted stock, which is expected to be recognized over a weighted average period of 3.34 years.  The Company used 0% for both the discount factor and forfeiture rate for determining the fair value of restricted stock.  The forfeiture rate was based on historical results and trends and the Company does not consider discount rates to be material.                                                                                                                                  |

----

|   |   | The holder of a restricted share award is generally entitled at all times on and after the date of issuance of the restricted shares to exercise the rights of a stockholder of the Company, including the right to vote the shares and the right to receive dividends on the shares.  The Company granted 88,550, 74,350 and 46,350 shares of restricted stock in 2010, 2009 and 2008, respectively to employees and sub-contractors under the 2005 Equity Incentive Plan.  The restricted shares vest over a five-year period based on continued service to the Company.  Restricted share activity is summarized as follows: |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                              |   | SharesOutstanding |    |   | WeightedAverage GrantDate Fair Value |   |
|--------|---------------------------------------------------|--------|-------------------|---------|--------|-----------------------------------------------------|--------|
|   | Non-vested restricted shares at January 1, 2008   |   |              | 96,450  |   |                                                | $      | 24.89 |   |
|   | Restricted shares granted                         |   |              | 46,350  |   |                                                | $      | 29.44 |   |
|   | Restricted shares vested                          |   |              | (33,950 | )      |                                                | $      | 28.57 |   |
|   | Restricted shares forfeited                       |   |              | (4,800  | )      |                                                | $      | 31.03 |   |
|   | Non-vested restricted shares at December 31, 2008 |   |              | 104,050 |   |                                                | $      | 30.57 |   |
|   | Restricted shares granted                         |   |              | 74,350  |   |                                                | $      | 15.59 |   |
|   | Restricted shares vested                          |   |              | (37,420 | )      |                                                | $      | 30.46 |   |
|   | Restricted shares forfeited                       |   |              | -       |   |                                                | $      | - |   |
|   | Non-vested restricted shares at December 31, 2009 |   |              | 140,980 |   |                                                | $      | 22.70 |   |
|   | Restricted shares granted                         |   |              | 88,550  |   |                                                | $      | 23.36 |   |
|   | Restricted shares vested                          |   |              | (42,070 | )      |                                                | $      | 25.72 |   |
|   | Restricted shares forfeited                       |   |              | (20,610 | )      |                                                | $      | 25.06 |   |
|   | Non-vested restricted shares at December 31, 2010 |   |              | 166,850 |   |                                                | $      | 22.00 |   |

| 13.    | Profit-Sharing Plan | The Company has a discretionary profit-sharing plan whereby it contributes to the plan such amounts as the Board of Directors of the Company determines. The participants in the plan cannot make any contributions to the plan. Contributions to the plan are allocated to the employees based on their percentage of compensation to the total compensation of all employees for the plan year. Participants in the plan become fully vested after six years of service. No contributions were made to the plan in 2010, 2009 or 2008. |
|--------|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 14.    | Rental Income       | The Company leases premises in its properties to tenants pursuant to lease agreements, which provide for terms ranging generally from five to 25 years. The majority of leases provide for additional rents based on tenants' sales volume.  The weighted average remaining lease term is 11.5 years.                                                                                                                                                                                                                     |
|   |                | As of December 31, 2010, the future minimum rentals for the next five years from rental property under the terms of all noncancellable tenant leases, assuming no new or renegotiated leases are executed for such premises, are as follows (in thousands):                                                                                                                                                                                                                                                                              |

----

|   | 2011       |   | $      | 36,078  |   |
|--------|------------|--------|--------|---------|--------|
|   | 2012       |   |   | 35,054  |   |
|   | 2013       |   |   | 33,029  |   |
|   | 2014       |   |   | 32,086  |   |
|   | 2015       |   |   | 30,566  |   |
|   | Thereafter |   |   | 263,137 |   |
|   | Total      |   | $      | 429,950 |   |

|   |                   | Of these future minimum rentals, approximately 46.5% of the total is attributable to Walgreen, approximately 15.5% of the total is attributable to Borders and approximately 5.5% is attributable to Kmart.  Walgreen operates in the national drugstore chain industry, Borders is an operator of book superstores in the United States and Kmart’s principal business is general merchandise retailing through a chain of discount department stores. Borders Group, Inc. filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Code in February 2011 and announced the closing of over 200 of its stores including five stores leased to Borders by the Company.  The additional loss of any of these anchor tenants or the inability of any of them to pay rent could have an adverse effect on theCompany’s business. The Company’s properties are located primarily in the Midwestern United States and in particular Michigan. Of the Company’s 81 properties, 43 are located in Michigan. |
|--------|------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 15.    | Land Lease Obligations | The Company has entered into certain land lease agreements for four of its properties. Rent expense was $476,531, $387,300 and $294,948 for the years ending December 31, 2010, 2009 and 2008, respectively.  As of December 31, 2010, future annual lease commitments under these agreements are as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

|   | For the Year ending December 31, |   |   |       |
|--------|-----------------------------------------------------------|--------|--------|------------|
|   | 2011                                                      |   | $      | 712,300    |   |
|   | 2012                                                      |   |   | 712,300    |   |
|   | 2013                                                      |   |   | 712,300    |   |
|   | 2014                                                      |   |   | 712,300    |   |
|   | 2015                                                      |   |   | 712,300    |   |
|   | Thereafter                                                |   |   | 15,222,521 |   |
|   |                                                      |   |   |       |   |
|   | Total                                                     |   | $      | 18,784,021 |   |

|   | The Company leases its executive offices from a limited liability company controlled by its Chief Executive Officer’s children.  Under the terms of the lease, which expires on December 31, 2014, the Company is required to pay an annual rental of $90,000 and is responsible for the payment of real estate taxes, insurance and maintenance expenses relating to the building. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 16. | Discontinued Operations | During 2010, the Company sold two single tenant properties and entered into a lease termination agreement for one property for a total of $14.2 million and recognized an aggregate net gain of $4.7 million on the three transactions.  The properties were located in Santa Barbara, California, Marion Oaks, Florida and Aventura, Florida.  Two of the properties were leased to Borders and one was leased to Walgreen.  In addition, the Company has classified two single tenant properties that are leased to Borders and located in Tulsa, Oklahoma as held for sale as of December 31, 2010.  The Company completed the sale of the two single tenant properties on January 24, 2011.  The results of operations for these five properties are presented as discontinued operations in theCompany’s Consolidated Statements of Income.  Revenues for the properties were $2,855,669, $2,858,639 and $2,734,978 for the years ended December 31, 2010, 2009 and 2008 respectively.  Expenses for the properties including a $440,000 impairment charge on the properties held for sale were $1,127,947, $822,988 and $793,097 for the years ended December 31, 2010, 2009 and 2008, respectively.   The Company elected to not allocate consolidated interest expense to the discontinued operations where the debt is not directly attributed to or related to the discontinued operations. |
|-----|-------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17. | Interim Results (Unaudited) | The following summary represents the unaudited results of operations of the Company, expressed in thousands except per share amounts, for the periods from January 1, 2009 through December 31, 2010. Certain amounts have been reclassified to conform to the current presentation of discontinued operations: |
|-----|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Three Months Ended              |   |
|--------|-------------------------------------------|--------|
|   | 2010                                      |   | March 31, |   |   | June 30, |   |   | September 30, |   |   | December 31, |   |
|   | Revenues                                  |   | $ | 8,977 |   |   | $ | 8,759 |   |   | $ | 8,810 |   |   | $ | 9,566 |   |
|   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Net Income (Loss)                         |   | $ | 9,969 |   |   | $ | 4,431 |   |   | $ | 4,541 |   |   | $ | (3,313 | ) |
|   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Earnings (Loss) Per Share – Diluted |   | $ | 1.18 |   |   | $ | .46 |   |   | $ | .46 |   |   | $ | (.46 | ) |

|   | Three Months Ended       |   |
|--------|------------------------------------|--------|
|   | 2009                               |   | March 31, |   |   | June 30, |   |   | September 30, |   |   | December 31, |   |
|   | Revenues                           |   | $ | 8,534 |   |   | $ | 8,406 |   |   | $ | 8,484 |   |   | $ | 8,978 |   |
|   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Net Income                         |   | $ | 4,317 |   |   | $ | 4,508 |   |   | $ | 4,607 |   |   | $ | 4,562 |   |
|   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Earnings Per Share – Diluted |   | $ | .52 |   |   | $ | .54 |   |   | $ | .55 |   |   | $ | .53 |   |

----

| 18.    | Deferred Revenue  | In July 2004, the Company’s tenant in two joint venture properties located in Ann Arbor, MI and Boynton Beach, FL repaid $13.8 million that had been contributed by the Company’s joint venture partner. As a result of this repayment the Company became the sole member of the limited liability companies holding the properties. Total assets of the two properties were approximately $13.8 million. The Company has treated the $13.8 million repayment of the capital contribution as deferred revenue and accordingly, will recognize rental income over the term of the related leases. |
|--------|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 19.    | Subsequent Events | In January 2011, the Company granted 98,300 shares of restricted stock to employees and associates under the 2005 Equity Incentive Plan.  The restricted shares vest over a five year period based on continued service to the Company.                                                                                                                                                                                                                                                                                                                                                            |
|   |              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |              | The Company evaluates events occurring after the date of the financial statements for events requiring recording or disclosure in the financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

| Column A                    |   | Column B |      |   | Column C     |   |      | Column D      |   |   | Column E                     |   |   | Column F                                     |       |   | Column G      |   | Column H      |
|----------------------------------|--------|---------------|-----------|--------|-------------------|--------|-----------|--------------------|--------|--------|-----------------------------------|--------|--------|---------------------------------------------------|------------|--------|--------------------|--------|--------------------|
|                             |   |          |      |   |              |   |      |               |   |   |                              |   |   |                                              |       |   |               |   |               |   |   |   |   |   |   |   |   | Life on Which |
|                             |   |          |      |   |              |   |      |               |   |   | Costs                             |   |   | Gross Amount at Which Carried |       |   |               |   |               |   |   | Depreciation in  |
|                             |   |          |      |   | Initial Cost |   |      | Capitalized        |   |   | At Close of Period |   |   |                                              |       |   |               |   | Latest Income |
|                             |   |          |      |   |              |   |      | Buildings and |   |   | Subsequent to                |   |   |                                              |       |   | Buildings and |   |               |   |   |   | Accumulated |   |   | Date of |   | Statement |
| Description                      |   | Encumbrance   |      |   | Land              |   |      | Improvements       |   |   | Acquisition                       |   |   | Land                                              |       |   | Improvements       |   |               | Total |   |   | Depreciation |   |   | Construction |   | is Computed |
|                             |   |          |      |   |              |   |      |               |   |   |                              |   |   |                                              |       |   |               |   |               |   |   |   |   |   |   |   |   |   |
| Completed Retail Facilities      |   |          |      |   |              |   |      |               |   |   |                              |   |   |                                              |       |   |               |   |               |   |   |   |   |   |   |   |   |   |
| Sam’s Club, MI             |   | $             | -         |   |              | $      | 550,000   |               |   | $      | 562,404                           |   |   | $                                                 | 1,087,596  |   |               | $      | 550,000            |   |   | $ | 1,650,000 |   |   | $ | 2,200,000 |   |   | $ | 1,453,023 |   |   | 1977 |   | 40 Years |
| Capital Plaza, KY                |   |          | -         |   |              |   | 7,379     |               |   |   | 2,240,607                         |   |   |                                              | 3,434,142  |   |               |   | 7,379              |   |   |   | 5,674,749 |   |   |   | 5,682,128 |   |   |   | 2,318,757 |   |   | 1978 |   | 40 Years |
| Charlevoix Common, MI            |   |          | -         |   |              |   | 305,000   |               |   |   | 5,152,992                         |   |   |                                              | 111,568    |   |               |   | 305,000            |   |   |   | 5,264,560 |   |   |   | 5,569,560 |   |   |   | 2,635,808 |   |   | 1991 |   | 40 Years |
| Chippewa Commons, WI             |   |          | 3,017,460 |   |              |   | 1,197,150 |               |   |   | 6,367,560                         |   |   |                                              | 446,018    |   |               |   | 1,197,150          |   |   |   | 6,813,578 |   |   |   | 8,010,728 |   |   |   | 3,396,021 |   |   | 1990 |   | 40 Years |
| Grayling Plaza, MI               |   |          | -         |   |              |   | 200,000   |               |   |   | 1,778,657                         |   |   |                                              | -          |   |               |   | 200,000            |   |   |   | 1,778,657 |   |   |   | 1,978,657 |   |   |   | 1,190,575 |   |   | 1984 |   | 40 Years |
| Ironwood Commons, MI             |   |          | -         |   |              |   | 167,500   |               |   |   | 8,181,306                         |   |   |                                              | 337,545    |   |               |   | 167,500            |   |   |   | 8,518,851 |   |   |   | 8,686,351 |   |   |   | 4,113,795 |   |   | 1991 |   | 40 Years |
| Marshall Plaza Two, MI           |   |          | -         |   |              |   | -         |               |   |   | 4,662,230                         |   |   |                                              | 115,294    |   |               |   | -                  |   |   |   | 4,777,524 |   |   |   | 4,777,524 |   |   |   | 2,341,816 |   |   | 1990 |   | 40 Years |
| North Lakeland Plaza, FL         |   |          | 3,762,256 |   |              |   | 1,641,879 |               |   |   | 6,364,379                         |   |   |                                              | 1,981,746  |   |               |   | 1,641,879          |   |   |   | 8,346,125 |   |   |   | 9,988,004 |   |   |   | 4,256,627 |   |   | 1987 |   | 40 Years |
| Oscoda Plaza, MI                 |   |          | -         |   |              |   | 183,295   |               |   |   | 1,872,854                         |   |   |                                              | -          |   |               |   | 183,295            |   |   |   | 1,872,854 |   |   |   | 2,056,149 |   |   |   | 1,250,164 |   |   | 1984 |   | 40 Years |
| Petoskey Town Center, MI         |   |          | 3,799,794 |   |              |   | 875,000   |               |   |   | 8,895,289                         |   |   |                                              | 317,371    |   |               |   | 875,000            |   |   |   | 9,212,660 |   |   |   | 10,087,660 |   |   |   | 4,509,610 |   |   | 1990 |   | 40 Years |
| Plymouth Commons, WI             |   |          | -         |   |              |   | 535,460   |               |   |   | 5,667,504                         |   |   |                                              | 282,915    |   |               |   | 535,460            |   |   |   | 5,950,419 |   |   |   | 6,485,879 |   |   |   | 2,972,134 |   |   | 1990 |   | 40 Years |
| Rapids Associates, MI            |   |          | -         |   |              |   | 705,000   |               |   |   | 6,854,790                         |   |   |                                              | 2,098,264  |   |               |   | 705,000            |   |   |   | 8,953,054 |   |   |   | 9,658,054 |   |   |   | 3,637,966 |   |   | 1990 |   | 40 Years |
| Shawano Plaza, WI                |   |          | 3,607,702 |   |              |   | 190,000   |               |   |   | 9,133,934                         |   |   |                                              | 253,763    |   |               |   | 190,000            |   |   |   | 9,387,697 |   |   |   | 9,577,697 |   |   |   | 4,755,999 |   |   | 1990 |   | 40 Years |
| West Frankfort Plaza, IL         |   |          | -         |   |              |   | 8,002     |               |   |   | 784,077                           |   |   |                                              | 150,869    |   |               |   | 8,002              |   |   |   | 934,946 |   |   |   | 942,948 |   |   |   | 604,309 |   |   | 1982 |   | 40 Years |
| Omaha, NE                        |   |          | 1,416,829 |   |              |   | 1,705,619 |               |   |   | 2,053,615                         |   |   |                                              | 2,152      |   |               |   | 1,705,619          |   |   |   | 2,055,767 |   |   |   | 3,761,386 |   |   |   | 777,328 |   |   | 1995 |   | 40 Years |
| Wichita, KS                      |   |          | 691,017   |   |              |   | 1,039,195 |               |   |   | 1,690,644                         |   |   |                                              | (895,334   | )      |               |   | 473,253            |   |   |   | 1,361,252 |   |   |   | 1,834,505 |   |   |   | 648,528 |   |   | 1995 |   | 40 Years |
| Monroeville, PA                  |   |          | 1,959,432 |   |              |   | 6,332,158 |               |   |   | 2,249,724                         |   |   |                                              | (3,380,000 | )      |               |   | 3,583,890          |   |   |   | 1,617,992 |   |   |   | 5,201,882 |   |   |   | 794,180 |   |   | 1996 |   | 40 Years |
| Norman, OK                       |   |          | -         |   |              |   | 879,562   |               |   |   | 1,626,501                         |   |   |                                              | -          |   |               |   | 879,562            |   |   |   | 1,626,501 |   |   |   | 2,506,063 |   |   |   | 579,253 |   |   | 1996 |   | 40 Years |
| Columbus, OH                     |   |          | -         |   |              |   | 826,000   |               |   |   | 2,336,791                         |   |   |                                              | -          |   |               |   | 826,000            |   |   |   | 2,336,791 |   |   |   | 3,162,791 |   |   |   | 871,427 |   |   | 1996 |   | 40 Years |
| Boynton Beach, FL – DSG    |   |          | -         |   |              |   | 1,534,942 |               |   |   | 2,043,122                         |   |   |                                              | 3,704,861  |   |               |   | 1,534,942          |   |   |   | 5,747,983 |   |   |   | 7,282,925 |   |   |   | 738,360 |   |   | 1996 |   | 40 Years |
| Lawrence, KS                     |   |          | 2,354,450 |   |              |   | 981,331   |               |   |   | 3,000,000                         |   |   |                                              | (1,510,873 | )      |               |   | 419,791            |   |   |   | 2,050,667 |   |   |   | 2,470,458 |   |   |   | 1,079,976 |   |   | 1997 |   | 40 Years |
| Waterford, MI                    |   |          | 1,453,483 |   |              |   | 971,009   |               |   |   | 1,562,869                         |   |   |                                              | 135,390    |   |               |   | 971,009            |   |   |   | 1,698,259 |   |   |   | 2,669,268 |   |   |   | 550,898 |   |   | 1997 |   | 40 Years |
| Chesterfield Township, MI        |   |          | 1,595,934 |   |              |   | 1,350,590 |               |   |   | 1,757,830                         |   |   |                                              | (46,164    | )      |               |   | 1,350,590          |   |   |   | 1,711,666 |   |   |   | 3,062,256 |   |   |   | 535,477 |   |   | 1998 |   | 40 Years |
| Grand Blanc, MI                  |   |          | 1,524,709 |   |              |   | 1,104,285 |               |   |   | 1,998,919                         |   |   |                                              | 43,929     |   |               |   | 1,104,285          |   |   |   | 2,042,848 |   |   |   | 3,147,133 |   |   |   | 605,709 |   |   | 1998 |   | 40 Years |
| Pontiac, MI                      |   |          | 1,461,934 |   |              |   | 1,144,190 |               |   |   | 1,808,955                         |   |   |                                              | (113,506   | )      |               |   | 1,144,190          |   |   |   | 1,695,449 |   |   |   | 2,839,639 |   |   |   | 520,938 |   |   | 1998 |   | 40 Years |
| Mt. Pleasant Shopping Center, MI |   |          | -         |   |              |   | 907,600   |               |   |   | 8,081,968                         |   |   |                                              | 815,388    |   |               |   | 907,600            |   |   |   | 8,897,356 |   |   |   | 9,804,956 |   |   |   | 3,507,189 |   |   | 1973 |   | 40 Years |
| Tulsa, OK                        |   |          | -         |   |              |   | 1,100,000 |               |   |   | 2,394,512                         |   |   |                                              | (140,000   | )      |               |   | 1,100,000          |   |   |   | 2,254,512 |   |   |   | 3,354,512 |   |   |   | 759,801 |   |   | 1998 |   | 40 Years |
| Columbia, MD                     |   |          | 2,254,457 |   |              |   | 1,545,509 |               |   |   | 2,093,700                         |   |   |                                              | 286,589    |   |               |   | 1,545,509          |   |   |   | 2,380,289 |   |   |   | 3,925,798 |   |   |   | 684,076 |   |   | 1999 |   | 40 Years |
| Rochester, MI                    |   |          | 2,491,600 |   |              |   | 2,438,740 |               |   |   | 2,188,050                         |   |   |                                              | 1,949      |   |               |   | 2,438,740          |   |   |   | 2,189,999 |   |   |   | 4,628,739 |   |   |   | 629,601 |   |   | 1999 |   | 40 Years |

----

| Column A                      |   | Column B |      |   | Column C     |   |      | Column D      |   |   | Column E                     |   |   | Column F                                     |       |   | Column G      |   | Column H      |
|------------------------------------|--------|---------------|-----------|--------|-------------------|--------|-----------|--------------------|--------|--------|-----------------------------------|--------|--------|---------------------------------------------------|------------|--------|--------------------|--------|--------------------|
|                               |   |          |      |   |              |   |      |               |   |   |                              |   |   |                                              |       |   |               |   |               |   |   |   |   |   |   |   |   | Life on Which |
|                               |   |          |      |   |              |   |      |               |   |   | Costs                             |   |   | Gross Amount at Which Carried |       |   |               |   |               |   |   | Depreciation in |
|                               |   |          |      |   | Initial Cost |   |      | Capitalized        |   |   | at Close of Period |   |   |                                              |       |   |               |   | Latest Income |
|                               |   |          |      |   |              |   |      | Buildings and |   |   | Subsequent to                |   |   |                                              |       |   | Buildings and |   |               |   |   |   | Accumulated |   |   | Date of |   | Statement |
| Description                        |   | Encumbrance   |      |   | Land              |   |      | Improvements       |   |   | Acquisition                       |   |   | Land                                              |       |   | Improvements       |   |               | Total |   |   | Depreciation |   |   | Construction |   | is Computed |
|                               |   |          |      |   |              |   |      |               |   |   |                              |   |   |                                              |       |   |               |   |               |   |   |   |   |   |   |   |   |   |
| Ypsilanti, MI                      |   |          | 2,250,397 |   |              |   | 2,050,000 |               |   |   | 2,222,097                         |   |   |                                              | 29,624     |   |               |   | 2,050,000          |   |   |   | 2,251,721 |   |   |   | 4,301,721 |   |   |   | 619,267 |   |   | 1999 |   | 40 Years |
| Germantown, MD                     |   |          | 2,119,977 |   |              |   | 1,400,000 |               |   |   | 2,288,890                         |   |   |                                              | 45,000     |   |               |   | 1,400,000          |   |   |   | 2,333,890 |   |   |   | 3,733,890 |   |   |   | 650,850 |   |   | 2000 |   | 40 Years |
| Petoskey, MI                       |   |          | 1,565,332 |   |              |   | -         |               |   |   | 2,332,473                         |   |   |                                              | (1,721     | )      |               |   | -                  |   |   |   | 2,330,752 |   |   |   | 2,330,752 |   |   |   | 622,334 |   |   | 2000 |   | 40 Years |
| Flint, MI                          |   |          | 2,361,052 |   |              |   | 2,026,625 |               |   |   | 1,879,700                         |   |   |                                              | (1,201     | )      |               |   | 2,026,625          |   |   |   | 1,878,499 |   |   |   | 3,905,124 |   |   |   | 469,630 |   |   | 2000 |   | 40 Years |
| Flint, MI                          |   |          | 2,031,574 |   |              |   | 1,477,680 |               |   |   | 2,241,293                         |   |   |                                              | -          |   |               |   | 1,477,680          |   |   |   | 2,241,293 |   |   |   | 3,718,973 |   |   |   | 553,316 |   |   | 2001 |   | 40 Years |
| New Baltimore, MI                  |   |          | 1,733,179 |   |              |   | 1,250,000 |               |   |   | 2,285,781                         |   |   |                                              | (16,502    | )      |               |   | 1,250,000          |   |   |   | 2,269,279 |   |   |   | 3,519,279 |   |   |   | 532,037 |   |   | 2001 |   | 40 Years |
| Flint, MI                          |   |          | 3,587,569 |   |              |   | 1,729,851 |               |   |   | 1,798,091                         |   |   |                                              | 660        |   |               |   | 1,729,851          |   |   |   | 1,798,751 |   |   |   | 3,528,602 |   |   |   | 391,566 |   |   | 2002 |   | 40 Years |
| Oklahoma City, OK                  |   |          | 2,728,018 |   |              |   | 1,914,859 |               |   |   | 2,057,034                         |   |   |                                              | (1,540,000 | )      |               |   | 1,082,487          |   |   |   | 1,349,406 |   |   |   | 2,431,893 |   |   |   | 429,143 |   |   | 2002 |   | 40 Years |
| Omaha, NE – Store #166       |   |          | 2,503,244 |   |              |   | 1,530,000 |               |   |   | 2,237,702                         |   |   |                                              | -          |   |               |   | 1,530,000          |   |   |   | 2,237,702 |   |   |   | 3,767,702 |   |   |   | 466,813 |   |   | 2002 |   | 40 Years |
| Indianapolis, IN                   |   |          | 724,734   |   |              |   | 180,000   |               |   |   | 1,117,617                         |   |   |                                              | -          |   |               |   | 180,000            |   |   |   | 1,117,617 |   |   |   | 1,297,617 |   |   |   | 233,206 |   |   | 2002 |   | 40 Years |
| Big Rapids, MI                     |   |          | -         |   |              |   | 1,201,675 |               |   |   | 2,014,107                         |   |   |                                              | (2,000     | )      |               |   | 1,201,675          |   |   |   | 2,012,107 |   |   |   | 3,213,782 |   |   |   | 389,886 |   |   | 2003 |   | 40 Years |
| Flint, MI                          |   |          | -         |   |              |   | -         |               |   |   | 471,272                           |   |   |                                              | (201,809   | )      |               |   | -                  |   |   |   | 269,463 |   |   |   | 269,463 |   |   |   | 71,856 |   |   | 2003 |   | 20 Years |
| Ann Arbor, MI – Headquarters |   |          | 5,781,587 |   |              |   | 1,727,590 |               |   |   | 6,009,488                         |   |   |                                              | -          |   |               |   | 1,727,590          |   |   |   | 6,009,488 |   |   |   | 7,737,078 |   |   |   | 1,226,476 |   |   | 2003 |   | 40 Years |
| Tulsa, OK                          |   |          | -         |   |              |   | 2,000,000 |               |   |   | 2,740,507                         |   |   |                                              | (300,000   | )      |               |   | 2,000,000          |   |   |   | 2,440,507 |   |   |   | 4,440,507 |   |   |   | 512,397 |   |   | 2003 |   | 40 Years |
| Canton Twp., MI                    |   |          | 1,395,634 |   |              |   | 1,550,000 |               |   |   | 2,132,096                         |   |   |                                              | 23,020     |   |               |   | 1,550,000          |   |   |   | 2,155,116 |   |   |   | 3,705,116 |   |   |   | 381,586 |   |   | 2003 |   | 40 Years |
| Flint, MI                          |   |          | 4,157,925 |   |              |   | 1,537,400 |               |   |   | 1,961,674                         |   |   |                                              | -          |   |               |   | 1,537,400          |   |   |   | 1,961,674 |   |   |   | 3,499,074 |   |   |   | 335,203 |   |   | 2004 |   | 40 Years |
| Webster, NY                        |   |          | 1,521,318 |   |              |   | 1,600,000 |               |   |   | 2,438,781                         |   |   |                                              | -          |   |               |   | 1,600,000          |   |   |   | 2,438,781 |   |   |   | 4,038,781 |   |   |   | 414,088 |   |   | 2004 |   | 40 Years |
| Albion, NY                         |   |          | 1,859,982 |   |              |   | 1,900,000 |               |   |   | 3,037,864                         |   |   |                                              | -          |   |               |   | 1,900,000          |   |   |   | 3,037,864 |   |   |   | 4,937,864 |   |   |   | 465,175 |   |   | 2004 |   | 40 Years |
| Flint, MI                          |   |          | 3,178,797 |   |              |   | 1,029,000 |               |   |   | 2,165,463                         |   |   |                                              | (6,666     | )      |               |   | 1,029,000          |   |   |   | 2,158,797 |   |   |   | 3,187,797 |   |   |   | 330,525 |   |   | 2004 |   | 40 Years |
| Lansing, MI                        |   |          | -         |   |              |   | 785,000   |               |   |   | 348,501                           |   |   |                                              | 3,045      |   |               |   | 785,000            |   |   |   | 351,546 |   |   |   | 1,136,546 |   |   |   | 57,090 |   |   | 2004 |   | 40 Years |
| Boynton Beach, FL – Borders  |   |          | 1,522,219 |   |              |   | 1,569,000 |               |   |   | 2,363,524                         |   |   |                                              | 108,651    |   |               |   | 1,569,000          |   |   |   | 2,472,175 |   |   |   | 4,041,175 |   |   |   | 391,423 |   |   | 2004 |   | 40 Years |
| Ann Arbor, MI – Store #1     |   |          | 3,826,611 |   |              |   | 1,700,000 |               |   |   | 8,308,854                         |   |   |                                              | 150,000    |   |               |   | 1,700,000          |   |   |   | 8,458,854 |   |   |   | 10,158,854 |   |   |   | 1,533,475 |   |   | 2004 |   | 40 Years |
| Midland, MI                        |   |          | -         |   |              |   | 2,350,000 |               |   |   | 2,313,413                         |   |   |                                              | 2,070      |   |               |   | 2,350,000          |   |   |   | 2,315,483 |   |   |   | 4,665,483 |   |   |   | 315,891 |   |   | 2005 |   | 40 Years |
| Grand Rapids, MI                   |   |          | 3,092,929 |   |              |   | 1,450,000 |               |   |   | 2,646,591                         |   |   |                                              | -          |   |               |   | 1,450,000          |   |   |   | 2,646,591 |   |   |   | 4,096,591 |   |   |   | 352,880 |   |   | 2005 |   | 40 Years |
| Delta Twp., MI                     |   |          | 3,486,583 |   |              |   | 2,075,000 |               |   |   | 2,535,971                         |   |   |                                              | 7,015      |   |               |   | 2,075,000          |   |   |   | 2,542,986 |   |   |   | 4,617,986 |   |   |   | 328,525 |   |   | 2005 |   | 40 Years |
| Roseville., MI                     |   |          | 3,094,032 |   |              |   | 1,771,000 |               |   |   | 2,327,052                         |   |   |                                              | -          |   |               |   | 1,771,000          |   |   |   | 2,327,052 |   |   |   | 4,098,052 |   |   |   | 298,152 |   |   | 2005 |   | 40 Years |
| Mt Pleasant., MI                   |   |          | -         |   |              |   | 1,075,000 |               |   |   | 1,432,390                         |   |   |                                              | 4,787      |   |               |   | 1,075,000          |   |   |   | 1,437,177 |   |   |   | 2,512,177 |   |   |   | 182,629 |   |   | 2005 |   | 40 Years |
| N Cape May, NJ.,                   |   |          | -         |   |              |   | 1,075,000 |               |   |   | 1,430,092                         |   |   |                                              | 495        |   |               |   | 1,075,000          |   |   |   | 1,430,587 |   |   |   | 2,505,587 |   |   |   | 181,800 |   |   | 2005 |   | 40 Years |
| Summit Twp, MI                     |   |          | 1,762,789 |   |              |   | 998,460   |               |   |   | 1,336,357                         |   |   |                                              | -          |   |               |   | 998,460            |   |   |   | 1,336,357 |   |   |   | 2,334,817 |   |   |   | 143,357 |   |   | 2006 |   | 40 Years |
| Livonia, MI                        |   |          | 4,121,763 |   |              |   | 1,200,000 |               |   |   | 3,441,694                         |   |   |                                              | 817,589    |   |               |   | 1,200,000          |   |   |   | 4,259,283 |   |   |   | 5,459,283 |   |   |   | 352,134 |   |   | 2007 |   | 40 Years |
| Barnesville, GA                    |   |          | -         |   |              |   | 932,500   |               |   |   | 2,091,514                         |   |   |                                              | 5,490      |   |               |   | 932,500            |   |   |   | 2,097,004 |   |   |   | 3,029,504 |   |   |   | 168,168 |   |   | 2007 |   | 40 Years |
| East Lansing, MI                   |   |          | -         |   |              |   | 1,450,000 |               |   |   | 1,002,192                         |   |   |                                              | 170,493    |   |               |   | 1,450,000          |   |   |   | 1,172,685 |   |   |   | 2,622,685 |   |   |   | 92,297 |   |   | 2007 |   | 40 Years |
| Plainfield, IN                     |   |          | -         |   |              |   | 4,549,758 |               |   |   | -                                 |   |   |                                              | 62,884     |   |               |   | 4,549,758          |   |   |   | 62,884 |   |   |   | 4,612,642 |   |   |   | - |   |   | 2007 |   | - |
| Macomb Township, MI                |   |          | 4,610,420 |   |              |   | 2,621,500 |               |   |   | 3,484,212                         |   |   |                                              | 799        |   |               |   | 2,621,500          |   |   |   | 3,485,011 |   |   |   | 6,106,511 |   |   |   | 246,838 |   |   | 2008 |   | 40 Years |
| Ypsilanti, MI                      |   |          | -         |   |              |   | 1,850,000 |               |   |   | 3,034,335                         |   |   |                                              | 1,224      |   |               |   | 1,850,000          |   |   |   | 3,035,559 |   |   |   | 4,885,559 |   |   |   | 196,029 |   |   | 2008 |   | 40 Years |
| Shelby Township, MI                |   |          | 3,498,312 |   |              |   | 2,055,174 |               |   |   | 2,533,876                         |   |   |                                              | 44,471     |   |               |   | 2,055,174          |   |   |   | 2,578,347 |   |   |   | 4,633,521 |   |   |   | 154,968 |   |   | 2008 |   | 40 Years |
| Silver Spring Shores, FL           |   |          | -         |   |              |   | 1,975,000 |               |   |   | 2,504,112                         |   |   |                                              | (5,400     | )      |               |   | 1,975,000          |   |   |   | 2,498,712 |   |   |   | 4,473,712 |   |   |   | 125,071 |   |   | 2009 |   | 40 Years |

----

| Column A                       |   | Column B |       |   | Column C     |   |        | Column D      |   |   | Column E                     |   |   | Column F                                     |      |   | Column G      |   |        | Column H      |   |
|-------------------------------------|--------|---------------|------------|--------|-------------------|--------|-------------|--------------------|--------|--------|-----------------------------------|--------|--------|---------------------------------------------------|-----------|--------|--------------------|--------|-------------|--------------------|--------|
|                                |   |          |       |   |              |   |        |               |   |   |                              |   |   |                                              |      |   |               |   |        |               |   |   |   |   |   |   |   |   | Life on Which |   |
|                                |   |          |       |   |              |   |        |               |   |   | Costs                             |   |   | Gross Amount at Which Carried |      |   |               |   |        |               |   |   | Depreciation in |   |
|                                |   |          |       |   | Initial Cost |   |        | Capitalized        |   |   | at Close of Period |   |   |                                              |      |   |               |   |        | Latest Income |   |
|                                |   |          |       |   |              |   |        | Buildings and |   |   | Subsequent to                |   |   |                                              |      |   | Buildings and |   |        |               |   |   | Accumulated |   |   | Date of |   |   | Statement |   |
| Description                         |   | Encumbrance   |       |   | Land              |   |        | Improvements       |   |   | Acquisition                       |   |   | Land                                              |      |   | Improvements       |   |        | Total              |   |   | Depreciation |   |   | Construction |   |   | is Computed |   |
|                                |   |          |       |   |              |   |        |               |   |   |                              |   |   |                                              |      |   |               |   |        |               |   |   |   |   |   |   |   |   |   |   |
| Brighton, MI                        |   |          | -          |   |              |   | 1,365,000   |               |   |   | 2,802,036                         |   |   |                                              | 6,370     |   |               |   | 1,365,000   |               |   |   | 2,808,406 |   |   |   | 4,173,406 |   |   |   | 128,586 |   |   | 2009 |   |   | 40 Years |   |
| Port St John, FL                    |   |          | -          |   |              |   | 2,320,860   |               |   |   | 2,402,641                         |   |   |                                              | 880       |   |               |   | 2,320,860   |               |   |   | 2,403,521 |   |   |   | 4,724,381 |   |   |   | 100,132 |   |   | 2009 |   |   | 40 Years |   |
| Lowell, MI                          |   |          | -          |   |              |   | 890,000     |               |   |   | 1,930,182                         |   |   |                                              | 10,191    |   |               |   | 890,000     |               |   |   | 1,940,373 |   |   |   | 2,830,373 |   |   |   | 60,573 |   |   | 2009 |   |   | 40 Years |   |
| Southfield, MI                      |   |          | -          |   |              |   | 1,200,000   |               |   |   | 125,616                           |   |   |                                              | 2,064     |   |               |   | 1,200,000   |               |   |   | 127,680 |   |   |   | 1,327,680 |   |   |   | 3,849 |   |   | 2009 |   |   | 40 Years |   |
| Atchison, KS                        |   |          | -          |   |              |   | 943,750     |               |   |   | 3,021,672                         |   |   |                                              | -         |   |               |   | 943,750     |               |   |   | 3,021,672 |   |   |   | 3,965,422 |   |   |   | 37,771 |   |   | 2009 |   |   | 40 Years |   |
| Johnstown, OH                       |   |          | -          |   |              |   | 485,000     |               |   |   | 2,799,502                         |   |   |                                              | -         |   |               |   | 485,000     |               |   |   | 2,799,502 |   |   |   | 3,284,502 |   |   |   | 34,994 |   |   | 2009 |   |   | 40 Years |   |
| Lake in the Hills, IL               |   |          | -          |   |              |   | 2,135,000   |               |   |   | 3,328,560                         |   |   |                                              | -         |   |               |   | 2,135,000   |               |   |   | 3,328,560 |   |   |   | 5,463,560 |   |   |   | 41,607 |   |   | 2009 |   |   | 40 Years |   |
| Concord, NC                         |   |          | -          |   |              |   | 7,676,305   |               |   |   | -                                 |   |   |                                              | -         |   |               |   | 7,676,305   |               |   |   | - |   |   |   | 7,676,305 |   |   |   | - |   |   | 2010 |   |   | - |   |
| Antioch, IL                         |   |          | -          |   |              |   | 1,087,884   |               |   |   | -                                 |   |   |                                              | -         |   |               |   | 1,087,884   |               |   |   | - |   |   |   | 1,087,884 |   |   |   | - |   |   | 2010 |   |   | - |   |
| St Augustine Shores, IL             |   |          | -          |   |              |   | 1,700,000   |               |   |   | 1,973,929                         |   |   |                                              | -         |   |               |   | 1,700,000   |               |   |   | 1,973,929 |   |   |   | 3,673,929 |   |   |   | 6,016 |   |   | 2010 |   |   | 40 Years |   |
| Atlantic Beach, FL                  |   |          | -          |   |              |   | 1,650,000   |               |   |   | 1,904,357                         |   |   |                                              | -         |   |               |   | 1,650,000   |               |   |   | 1,904,357 |   |   |   | 3,554,357 |   |   |   | 7,842 |   |   | 2010 |   |   | 40 Years |   |
| Mansfield, CT                       |   |          | -          |   |              |   | 700,000     |               |   |   | 1,902,191                         |   |   |                                              | -         |   |               |   | 700,000     |               |   |   | 1,902,191 |   |   |   | 2,602,191 |   |   |   | 5,944 |   |   | 2010 |   |   | 40 Years |   |
| Spring Grove, IL                    |   |          | -          |   |              |   | 1,191,199   |               |   |   | -                                 |   |   |                                              | -         |   |               |   | 1,191,199   |               |   |   | - |   |   |   | 1,191,199 |   |   |   | - |   |   | 2010 |   |   | - |   |
| Ann Arbor, MI                       |   |          | -          |   |              |   | -           |               |   |   | 3,061,507                         |   |   |                                              | -         |   |               |   | -           |               |   |   | 3,061,507 |   |   |   | 3,061,507 |   |   |   | 19,134 |   |   | 2010 |   |   | 40 Years |   |
| Tallahassee, FL                     |   |          | -          |   |              |   | -           |               |   |   | 1,482,462                         |   |   |                                              | -         |   |               |   | -           |               |   |   | 1,482,462 |   |   |   | 1,482,462 |   |   |   | 1,539 |   |   | 2010 |   |   | 40 Years |   |
| Sub Total                           |   |          | 99,907,034 |   |              |   | 111,358,465 |               |   |   | 218,707,048                       |   |   |                                              | 8,942,995 |   |               |   | 106,650,343 |               |   |   | 232,358,165 |   |   |   | 339,008,508 |   |   |   | 67,383,413 |   |   |   |   |   |   |   |
|                                |   |          |       |   |              |   |        |               |   |   |                              |   |   |                                              |      |   |               |   |        |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail Facilities Under Development |   |          |       |   |              |   |        |               |   |   |                              |   |   |                                              |      |   |               |   |        |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |          |       |   |              |   |        |               |   |   |                              |   |   |                                              |      |   |               |   |        |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                               |   |          | -          |   |              |   | 80,000      |               |   |   | 404,324                           |   |   |                                              | -         |   |               |   | 80,000      |               |   |   | 404,324 |   |   |   | 484,324 |   |   |   | - |   |   | N/A |   |   | N/A |   |
|                                |   |          |       |   |              |   |        |               |   |   |                              |   |   |                                              |      |   |               |   |        |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |          | -          |   |              |   | 80,000      |               |   |   | 404,324                           |   |   |                                              | -         |   |               |   | 80,000      |               |   |   | 404,324 |   |   |   | 484,324 |   |   |   | - |   |   |   |   |   |   |   |
| Total                               |   | $             | 99,907,034 |   |              | $      | 111,438,465 |               |   | $      | 219,111,372                       |   |   | $                                                 | 8,942,995 |   |               | $      | 106,730,343 |               |   | $ | 232,762,489 |   |   | $ | 339,492,832 |   |   | $ | 67,383,413 |   |   |   |   |   |   |   |

----

| 1) | Reconciliation of Real Estate Properties |
|----|------------------------------------------|

|                               |   | 2010   |        |   | 2009   |   |        | 2008   |   |
|------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
|                               |   |   |        |   |   |   |        |   |   |
| Balance at January 1               |   | $      | 320,444,168 |   |   | $      | 311,342,882 |   |   | $ | 289,073,696 |   |
| Construction and acquisition costs |   |   | 39,107,853  |   |   |   | 9,101,286   |   |   |   | 22,269,186 |   |
| Impairment charge                  |   |   | (8,140,000  | )      |   |   | -           |   |   |   | - |   |
| Disposition of real estate         |   |   | (11,919,189 | )      |   |   | -           |   |   |   | - |   |
|                               |   |   |        |   |   |   |        |   |   |   |   |   |
| Balance at December 31             |   | $      | 339,492,832 |   |   | $      | 320,444,168 |   |   | $ | 311,342,882 |   |

| 2) | Reconciliation of Accumulated Depreciation |
|----|--------------------------------------------|

|                              |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|-----------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                              |   |   |       |   |   |   |       |   |   |
| Balance at January 1              |   | $      | 64,076,469 |   |   | $      | 58,502,384 |   |   | $ | 53,250,564 |   |
| Current year depreciation expense |   |   | 5,759,599  |   |   |   | 5,574,085  |   |   |   | 5,251,820 |   |
| Disposition of real estate        |   |   | (2,452,655 | )      |   |   | -          |   |   |   | - |   |
|                              |   |   |       |   |   |   |       |   |   |   |   |   |
| Balance at December 31            |   | $      | 67,383,413 |   |   | $      | 64,076,469 |   |   | $ | 58,502,384 |   |

| 3) | Tax Basis of Buildings and Improvements |
|----|-----------------------------------------|

----