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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549



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FORM 10-K



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

For the fiscal year ended December 31, 2006

or



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

For the transition period from  to

Commission File Number 0-24763



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REGENCY CENTERS, L.P.

(Exact name of registrant as specified in its charter)



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|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Delaware                                                       |  | 59-3429602                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer identification No.)



|                                                             |  |                             
|------------------------------------------------------------ |  | ----------------------------
|One Independent Drive, Suite 114 Jacksonville, Florida 32202 |  | (904) 598-7000              
|(Address of principal executive offices) (zip code)          |  | (Registrants telephone No.)

Securities registered pursuant to Section 12(b) of the Act:

None

(Title of Class)

Not Applicable

(Name of exchange on
which registered)

Securities registered pursuant to Section 12(g) of the Act:

Class B Units of Partnership Interest

Indicate by check mark if the registrant is a well-known
seasoned issuer, as defined in Rule 405 of the Securities Act.YES  x    NO ̈

Indicate by check mark if the registrant is not required to file
reports pursuant to Section 13 or Section 15(d) of the Act.YES ̈NO  x

Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90
days.YES  x    NO ̈

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a
non-accelerated filer. (Check One):

Large accelerated filer  x    Accelerated filer ̈Non-accelerated filer ̈

Indicate by check mark whether the registrant is a shell company.    YES ̈NO  x

The aggregate market value of the voting and non-voting common stock held by non-affiliates of the Registrant and the number of shares of Registrants voting common stock outstanding is not applicable.

Documents Incorporated by Reference

Regency Centers Corporation is the general partner of Regency Centers, L.P. Portions of Regency Centers Corporations Proxy Statement in connection with its 2006 Annual Meeting of Shareholders are incorporated by reference in Part III.



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TABLE OF CONTENTS



|         |  |                                                                                                                  |  |                     
|-------- |  | ---------------------------------------------------------------------------------------------------------------- |  | --------------------
|         |  |                                                                                                                  |  | Form 10-KReport Page
|Item No.
|         |  | PART I                                                                                                           |  |                     
|         |  |                                                                                                                 
|1        |  | Business                                                                                                         |  | 1.                  
|         |  |                                                                                                                 
|1A.      |  | Risk Factors                                                                                                     |  | 4                   
|         |  |                                                                                                                 
|1B.      |  | Unresolved Staff Comments                                                                                        |  | 9                   
|         |  |                                                                                                                 
|2.       |  | Properties                                                                                                       |  | 10                  
|         |  |                                                                                                                 
|3.       |  | Legal Proceedings                                                                                                |  | 27                  
|         |  |                                                                                                                 
|4.       |  | Submission of Matters to a Vote of Security Holders                                                              |  | 27                  
|         |  |                                                                                                                 
|         |  | PART II                                                                                                          |  |                     
|         |  |                                                                                                                 
|5.       |  | Market for the Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |  | 27                  
|         |  |                                                                                                                 
|6.       |  | Selected Financial Data                                                                                          |  | 29                  
|         |  |                                                                                                                 
|7.       |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                            |  | 30                  
|         |  |                                                                                                                 
|7A.      |  | Quantitative and Qualitative Disclosures about Market Risk                                                       |  | 54                  
|         |  |                                                                                                                 
|8.       |  | Consolidated Financial Statements and Supplementary Data                                                         |  | 55                  
|         |  |                                                                                                                 
|9.       |  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                             |  | 55                  
|         |  |                                                                                                                 
|9A.      |  | Controls and Procedures                                                                                          |  | 56                  
|         |  |                                                                                                                 
|9B.      |  | Other Information                                                                                                |  | 56                  
|         |  |                                                                                                                 
|         |  | PART III                                                                                                         |  |                     
|         |  |                                                                                                                 
|10.      |  | Directors, Executive Officers and Corporate Governance                                                           |  | 56                  
|         |  |                                                                                                                 
|11.      |  | Executive Compensation                                                                                           |  | 57                  
|         |  |                                                                                                                 
|12.      |  | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                   |  | 57                  
|         |  |                                                                                                                 
|13.      |  | Certain Relationships and Related Transactions, and Director Independence                                        |  | 58                  
|         |  |                                                                                                                 
|14.      |  | Principal Accounting Fees and Services                                                                           |  | 58                  
|         |  |                                                                                                                 
|         |  | PART IV                                                                                                          |  |                     
|         |  |                                                                                                                 
|15.      |  | Exhibits and Financial Statement Schedules                                                                       |  | 59                  



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Forward-Looking Statements

In addition to historical information, the following information contains forward-looking statements as defined under federal securities laws. These forward-looking statements include statements about anticipated
growth in revenues, the size of our development program, earnings per unit, returns and portfolio value and expectations about our liquidity. These statements are based on current expectations, estimates and projections about the industry and
markets in which Regency Centers Corporation (Regency or Company) and Regency Centers, L.P. (RCLP or the Partnership) operates, and managements beliefs and assumptions. Forward-looking statements
are not guarantees of future performance and involve certain known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but
are not limited to, changes in national and local economic conditions; financial difficulties of tenants; competitive market conditions, including pricing of acquisitions and sales of properties and out-parcels; changes in expected leasing activity
and market rents; timing of acquisitions, development starts and sales of properties and out-parcels; our inability to exercise voting control over the joint ventures through which we own or develop many of our properties; weather; consequences of
any armed conflict or terrorist attack against the United States; the ability to obtain governmental approvals; and meeting development schedules. For additional information, see Risk Factors elsewhere herein. The following discussion
should be read in conjunction with the accompanying Consolidated Financial Statements and Notes thereto of RCLP appearing elsewhere within.

PART I



|Item 1. | Business
|------- | --------

Regency is a qualified real estate
investment trust (REIT), which began operations in 1993. Our primary operating and investment goal is long-term growth in earnings per share and total shareholder return, which we work to achieve by focusing on a strategy of owning,
operating and developing high-quality community and neighborhood shopping centers that are tenanted by market-dominant grocers, category-leading anchors, specialty retailers and restaurants located in areas with above average household incomes and
population densities. All of the operating, investing and financing activities are performed through RCLP, its wholly owned subsidiaries, and through its investments in joint ventures with third parties. Regency currently owns 99% of the
outstanding operating partnership units of RCLP.

At December 31, 2006, we directly owned 218 shopping centers (the Consolidated
Properties) located in 22 states representing 24.7 million square feet of gross leasable area (GLA). Our cost of these shopping centers is $3.5 billion before depreciation. Through joint ventures, we own partial interests in
187 shopping centers (the Unconsolidated Properties) located in 24 states and the District of Columbia representing 22.5 million square feet of GLA. Our investment, at cost, in the Unconsolidated Properties is $434.1 million.
Certain portfolio information described within this Form 10-K is presented (a) on a Combined Basis, which is a total of the Consolidated Properties and the Unconsolidated Properties, (b) for our Consolidated Properties only and
(c) for the Unconsolidated Properties that we own through joint ventures. We believe that presenting the information under these methods provides a more complete understanding of the properties that we wholly-own versus those that we
partially-own, but for which we provide full property management, asset management, investing and financing services. The shopping center portfolio that we manage, on a Combined Basis, represents 405 shopping centers located in 28 states and the
District of Columbia and contains 47.2 million square feet of GLA.

We earn revenues and generate cash flow by leasing space in our
shopping centers to market-leading grocers, major retail anchors, specialty side-shop retailers, and restaurants, including ground leasing or selling building pads (out-parcels) to these tenants. We experience growth in revenues by increasing
occupancy and rental rates at currently owned shopping centers, and by acquiring and developing new shopping centers. Community and neighborhood shopping centers generate substantial daily traffic by conveniently offering daily necessities and
services. This high traffic generates increased sales, thereby driving higher occupancy and rental-rate growth, which we expect will sustain our growth in earnings per unit and increase the value of our portfolio over the long term.

We seek a range of strong national, regional and local specialty retailers, for the same reason that we choose to anchor our centers with leading grocers
and major retailers who provide a mix of goods and services that meet consumer needs. We have created a formal partnering process  the Premier Customer Initiative (PCI)  to promote mutually beneficial relationships with our
specialty retailers. The objective of PCI is for RCLP to build a base of specialty tenants who represent the best-in-class operators in their respective merchandising categories. Such retailers reinforce the consumer appeal and other
strengths of a centers anchor, help to stabilize a centers occupancy, reduce re-leasing downtime, reduce tenant turnover and yield higher sustainable rents.



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We grow our shopping center portfolio through acquisitions of operating centers and new shopping center
development, where we acquire the land and construct the building. Development is customer driven, meaning we generally have an executed lease from the anchor before we start construction. Developments serve the growth needs of our anchors, and
specialty retailers, resulting in modern shopping centers with long-term anchor leases that produce attractive returns on our invested capital. This development process can require up to 36 months, or longer, from initial land or redevelopment
acquisition through construction, lease-up and stabilization of rental income, depending upon the size of the project. Generally, anchor tenants begin operating their stores prior to the completion of construction of the entire center, resulting in
rental income during the development phase.

We intend to maintain a conservative capital structure to fund our growth programs, which
should preserve our investment-grade ratings. Our approach is founded on our self-funding business model. This model utilizes center recycling as a key component, which requires ongoing monitoring of each center to ensure that it
continues to meet our investment standards. We sell the operating properties that no longer measure up to our standards. We also develop certain retail centers because of their attractive profit margins with the intent of selling them to joint
ventures or other third parties upon completion. These sale proceeds are re-deployed into new, higher-quality developments and acquisitions that are expected to generate sustainable revenue growth and more attractive returns.

Joint venturing of shopping centers also provides us with a capital source for new developments and acquisitions, as well as the opportunity to earn fees
for asset and property management services. As asset manager, we are engaged by our partners to apply similar operating, investment, and capital strategies to the portfolios owned by the joint ventures. Joint ventures grow their shopping center
investments through acquisitions from third parties or direct purchases from RCLP. Although selling properties to joint ventures reduces our ownership interest, we continue to share in the risks and rewards of centers that meet our high quality
standards and long-term investment strategy.

Competition

We are among the largest publicly-held owners of shopping centers in the nation based on revenues, number of properties, gross leasable area and market capitalization. There are numerous companies and private
individuals engaged in the ownership, development, acquisition and operation of shopping centers which compete with us in our targeted markets. This results in competition for attracting anchor tenants, as well as the acquisition of existing
shopping centers and new development sites. We believe that the principal competitive factors in attracting tenants in our market areas are location, demographics, rental costs, tenant mix, property age and maintenance. We believe that our
competitive advantages include our locations within our market areas, the design quality of our shopping centers, the strong demographics surrounding our shopping centers, our relationships with our anchor tenants and our side-shop and out-parcel
retailers, our PCI program which allows us to provide retailers with multiple locations, our practice of maintaining and renovating our shopping centers, and our ability to source and develop new shopping centers.

Changes in Policies

Regencys Board of
Directors establishes the policies that govern our investment and operating strategies including, among others, development and acquisition of shopping centers, tenant and market focus, debt and equity financing policies, quarterly distributions to
stockholders, and REIT tax status. The Board of Directors may amend these policies at any time without a vote of Regencys stockholders.

Employees

Our headquarters are located at One Independent Drive, Suite 114, Jacksonville, Florida. We presently maintain 21 market offices
nationwide where we conduct management, leasing, construction, and investment activities. At December 31, 2006, we had 499 employees and we believe that our relations with our employees are good.

Compliance with Governmental Regulations

Under
various federal, state and local laws, ordinances and regulations, we may be liable for the cost to remove or remediate certain hazardous or toxic substances at our shopping centers. These laws often impose liability without regard to whether the
owner knew of, or was responsible for, the presence of the hazardous or toxic substances. The cost of required remediation and the owners liability for remediation could exceed the value of the



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property and/or the aggregate assets of the owner. The presence of such substances, or the failure to properly remediate such substances, may adversely
affect our ability to sell or rent the property or borrow using the property as collateral. We have a number of properties that could require or are currently undergoing varying levels of environmental remediation. Environmental remediation is not
currently expected to have a material financial effect on us due to reserves for remediation, insurance programs designed to mitigate the cost of remediation and various state-regulated programs that shift the responsibility and cost to the state.

Executive Officers

The executive
officers of the Company are appointed each year by the Board of Directors. Each of the executive officers has been employed by the Company in the position or positions indicated in the list and pertinent notes below. Each of the executive officers
has been employed by the Company for more than five years.



|                     |  |     |  |                                                |  |                                          
|-------------------- |  | --- |  | ---------------------------------------------- |  | -----------------------------------------
|Name                 |  | Age |  | Title                                          |  | Executive Officer in Position Shown Since
|Martin E. Stein, Jr. |  | 54  |  | Chairman and Chief ExecutiveOfficer            |  | 1993                                     
|                     |  |     | 
|Mary Lou Fiala       |  | 55  |  | President and Chief OperatingOfficer           |  | 1999                                     
|                     |  |     | 
|Bruce M. Johnson     |  | 59  |  | Managing Director and ChiefFinancial Officer   |  | 1993                                     
|                     |  |     | 
|Brian M. Smith       |  | 52  |  | Managing Director and Chief Investment Officer |  | 2005(1)                                  

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|(1) | Mr. Smith was appointed Chief Investment Officer for the Company in September 2005. Mr. Smith was previously Managing Director  Investments  Pacific,
Mid-Atlantic and Northeast since 1999.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Company Website Access and SEC Filings

The Companys website may be accessed at www.regencycenters.com. All of our filings with the Securities and Exchange Commission
(SEC) can be accessed through our website promptly after filing; however, in the event that the website is inaccessible, then we will provide paper copies of our most recent annual report on Form 10-K, the most recent quarterly report on
Form 10-Q, current reports filed or furnished on Form 8-K, and all related amendments, excluding exhibits, free of charge upon request. These filings are also accessible on the SECs website at www.sec.gov.



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|Item 1A. | Risk Factors
|-------- | ------------

Risk Factors Related to Our Industry and Real
Estate Investments

Our revenues and cash flow could be adversely affected by poor market conditions where properties are geographically
concentrated.

RCLPs performance depends on the economic conditions in markets in which our properties are concentrated. During
the year ended December 31, 2006, our properties in California, Florida and Texas accounted for 45% of our consolidated net operating income. Our revenues and cash available for distribution to stockholders could be adversely affected by this
geographic concentration if market conditions in these areas, such as an oversupply of retail space or a reduction in the demand for shopping centers, become more competitive relative to other geographic areas.

Loss of revenues from major tenants could reduce distributions to stockholders.

We derive significant revenues from anchor tenants such as Kroger, Publix and Safeway that occupy more than one center. Distributions to stockholders could be adversely affected by the loss of revenues in the event a
major tenant:



| |  |  | becomes bankrupt or insolvent;
| | - |  | ------------------------------



| |  |  | experiences a downturn in its business;
| | - |  | ---------------------------------------



| |  |  | materially defaults on its lease;
| | - |  | ---------------------------------



| |  |  | does not renew its leases as they expire; or
| | - |  | --------------------------------------------



| |  |  | renews at lower rental rates.
| | - |  | -----------------------------

Vacated anchor space, including space owned by the anchor, can reduce rental revenues generated by the shopping center because of the loss of the departed anchor tenants customer drawing power. Most anchors have the right to vacate
and prevent re-tenanting by paying rent for the balance of the lease term. If major tenants vacate a property, then other tenants may be entitled to terminate their leases at the property.

Downturns in the retailing industry likely will have a direct adverse impact on our revenues and cash flow.

Our properties consist primarily of grocery-anchored shopping centers. Our performance therefore is generally linked to economic conditions in the market
for retail space. The market for retail space has been or could be adversely affected by any of the following:



| |  |  | the growth of super-centers, such as those operated by Wal-Mart, and their adverse effect on major grocery chains;
| | - |  | ------------------------------------------------------------------------------------------------------------------



| |  |  | the impact of increased energy costs on consumers and its consequential effect on the number of shopping visits to our centers;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------



| |  |  | weakness in the national, regional and local economies;
| | - |  | -------------------------------------------------------



| |  |  | consequences of any armed conflict involving, or terrorist attack against, the United States;
| | - |  | ---------------------------------------------------------------------------------------------



| |  |  | the adverse financial condition of some large retailing companies;
| | - |  | ------------------------------------------------------------------



| |  |  | the ongoing consolidation in the retail sector;
| | - |  | -----------------------------------------------



| |  |  | the excess amount of retail space in a number of markets;
| | - |  | ---------------------------------------------------------



| |  |  | increasing consumer purchases through catalogs or the Internet;
| | - |  | ---------------------------------------------------------------



| |  |  | reduction in the demand by tenants to occupy our shopping centers as a result of reduced consumer demand for certain retail formats such as video rental stores;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the timing and costs associated with property improvements and rentals;
| | - |  | -----------------------------------------------------------------------



| |  |  | changes in taxation and zoning laws; and
| | - |  | ----------------------------------------



| |  |  | adverse government regulation.
| | - |  | ------------------------------

To
the extent that any of these conditions occur, they are likely to impact market rents for retail space and our cash available for distribution to stockholders.



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Unsuccessful development activities or a slowdown in development activities could reduce distributions to
stockholders.

We actively pursue development activities as opportunities arise. Development activities require various government and
other approvals for entitlements which can significantly delay the development process. We may not recover our investment in development projects for which approvals are not received. We incur other risks associated with development activities,
including:



| |  |  | the risk that the current size and continued growth in our development pipeline will strain the organizations capacity to complete the developments within the
targeted timelines and at the expected returns on invested capital;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the risk that we may abandon development opportunities and lose our investment in these developments;
| | - |  | -----------------------------------------------------------------------------------------------------



| |  |  | the risk that development costs of a project may exceed original estimates, possibly making the project unprofitable;
| | - |  | ---------------------------------------------------------------------------------------------------------------------



| |  |  | delays in the development and construction process;
| | - |  | ---------------------------------------------------



| |  |  | lack of cash flow during the construction period; and
| | - |  | -----------------------------------------------------



| |  |  | the risk that occupancy rates and rents at a completed project will not be sufficient to make the project profitable.
| | - |  | ---------------------------------------------------------------------------------------------------------------------

If we sustain material losses due to an unsuccessful development project, our cash flow available for distribution to stockholders will be reduced. Our
earnings and cash flow available for distribution to stockholders also may be reduced if we experience a significant slowdown in our development activities.

Uninsured loss may adversely affect distributions to stockholders.

We carry comprehensive liability, fire, flood, extended
coverage, rental loss and environmental insurance for our properties with policy specifications and insured limits customarily carried for similar properties. We believe that the insurance carried on our properties is adequate in accordance with
industry standards. There are, however, some types of losses, such as from hurricanes, terrorism, wars or earthquakes, which may be uninsurable, or the cost of insuring against such losses may not be economically justifiable. If an uninsured loss
occurs, we could lose both the invested capital in and anticipated revenues from the property, but we would still be obligated to repay any recourse mortgage debt on the property. In that event, our distributions to stockholders could be reduced.

We face competition from numerous sources.

The ownership of shopping centers is highly fragmented, with less than 10% owned by real estate investment trusts. We face competition from other real estate investment trusts as well as from numerous small owners in the acquisition,
ownership and leasing of shopping centers. We compete to develop shopping centers with other real estate investment trusts engaged in development activities as well as with local, regional and national real estate developers.

We compete in the acquisition of properties through proprietary research that identifies opportunities in markets with high barriers to entry and
higher-than-average population growth and household income. We seek to maximize rents per square foot by establishing relationships with supermarket chains that are first or second in their markets or other category-leading anchors and leasing
non-anchor space in multiple centers to national or regional tenants. We compete to develop properties by applying our proprietary research methods to identify development and leasing opportunities and by pre-leasing a significant portion of a
center before beginning construction.

There can be no assurance, however, that other real estate owners or developers will not utilize
similar research methods and target the same markets and anchor tenants that we target. These entities may successfully control these markets and tenants to our exclusion. If we cannot successfully compete in our targeted markets, our cash flow, and
therefore distributions to stockholders, may be adversely affected.

Costs of environmental remediation could reduce our cash flow available for
distribution to stockholders.

Under various federal, state and local laws, an owner or manager of real property may be liable for the
costs of removal or remediation of hazardous or toxic substances on the property. These laws often impose liability



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without regard to whether the owner knew of, or was responsible for, the presence of hazardous or toxic substances. The cost of any required remediation
could exceed the value of the property and/or the aggregate assets of the owner.

We are subject to numerous environmental laws and
regulations as they apply to our shopping centers pertaining to chemicals used by the dry cleaning industry, the existence of asbestos in older shopping centers, and underground petroleum storage tanks (USTs). The presence of, or the failure
to properly remediate, hazardous or toxic substances may adversely affect our ability to sell or rent a contaminated property or to borrow using the property as collateral. Any of these developments could reduce cash flow and distributions to
stockholders.

Risk Factors Related to Our Joint Ventures and Acquisition Structure

We do not have voting control over our joint venture investments, so we are unable to ensure that our objectives will be pursued.

We have invested as a co-venturer in the acquisition or development of properties. As of December 31, 2006, our investments in real estate
partnerships represented 11.8% of our total assets. These investments involve risks not present in a wholly-owned project. We do not have voting control over the ventures. The co-venturer might (1) have interests or goals that are inconsistent
with our interests or goals or (2) otherwise impede our objectives. The co-venturer also might become insolvent or bankrupt.

Our joint ventures
account for a significant portion of our revenues and net income in the form of management fees and are an important part of our growth strategy. The termination of our joint ventures could adversely affect distributions to stockholders.

Our management fee income has increased significantly as our participation in joint ventures has increased. If joint ventures owning a
significant number of properties were dissolved for any reason, we would lose the asset management and property management fees from these joint ventures, which could adversely affect the amount of cash available for distribution to stockholders.

In addition, termination of the joint ventures without replacing them with new joint ventures could adversely affect our growth strategy.
Property sales to the joint ventures provide us with an important source of funding for additional developments and acquisitions. Without this source of capital, our ability to grow and to increase distributions to stockholders could be adversely
affected.

Our partnership structure may limit our flexibility to manage our assets.

Regency invests in retail shopping centers through Regency Centers, L.P., the operating partnership in which we currently own 99% of the outstanding
common partnership units. From time to time, we acquire properties through our operating partnership in exchange for limited partnership interests. This acquisition structure may permit limited partners who contribute properties to us to defer some,
if not all, of the income tax liability that they would incur if they sold the property.

Properties contributed to our operating
partnership may have unrealized gain attributable to the difference between the fair market value and adjusted tax basis in the properties prior to contribution. As a result, the sale of these properties could cause adverse tax consequences to the
limited partners who contributed them.

Generally, our operating partnership has no obligation to consider the tax consequences of its
actions to any limited partner. However, our operating partnership may acquire properties in the future subject to material restrictions on refinancing or resale designed to minimize the adverse tax consequences to the limited partners who
contribute those properties. These restrictions could significantly reduce our flexibility to manage our assets by preventing us from reducing mortgage debt or selling a property when such a transaction might be in our best interest in order to
reduce interest costs or dispose of an under-performing property.



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Risk Factors Related to Our Capital Recycling and Capital Structure

An increase in market capitalization rates could reduce the value of the centers we sell, requiring us to sell more properties than initially planned in order to
fund our development program. An increase in property dispositions would dilute our earnings.

As part of our capital
recycling program, we sell operating properties that no longer meet our investment standards. We also develop certain retail centers because of their attractive margins with the intent of selling them to joint ventures or other third parties for a
profit. These sale proceeds are used to fund the construction of new developments. An increase in market capitalization rates could cause a reduction in the value of centers identified for sale, which would have an adverse impact on our capital
recycling program by reducing the amount of cash generated and profits realized. In order to meet the cash requirements of our development program, we may be required to sell more properties than initially planned, which would have a dilutive impact
on our earnings.

Our debt financing may reduce distributions to stockholders.

We do not expect to generate sufficient funds from operations to make balloon principal payments when due on our debt. If we are unable to refinance our
debt on acceptable terms, we might be forced (1) to dispose of properties, which might result in losses, or (2) to obtain financing at unfavorable terms. Either could reduce the cash flow available for distributions to stockholders.

In addition, if we cannot make required mortgage payments, the mortgagee could foreclose on the property securing the mortgage, causing
the loss of cash flow from that property. Furthermore, substantially all of our debt is cross-defaulted, which means that a default under one loan could trigger defaults under other loans.

Our organizational documents do not limit the amount of debt that may be incurred. The degree to which we are leveraged could have important
consequences, including the following:



| |  |  | leverage could affect our ability to obtain additional financing in the future to repay indebtedness or for working capital, capital expenditures, acquisitions,
development or other general corporate purposes;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | leverage could make us more vulnerable to a downturn in our business or the economy generally; and
| | - |  | --------------------------------------------------------------------------------------------------



| |  |  | as a result, our leverage could lead to reduced distributions to stockholders.
| | - |  | ------------------------------------------------------------------------------

Covenants in our debt agreements may restrict our operating activities and adversely affect our financial condition.

Our revolving line of credit and our unsecured notes contain customary covenants, including compliance with financial ratios, such as ratios of total debt to gross asset value and fixed charge coverage ratios. Our
line of credit also restricts our ability to enter into a transaction that would result in a change of control. These covenants may limit our operational flexibility and our acquisition activities. Moreover, if we breach any of these covenants, the
resulting default could cause the acceleration of our indebtedness, even in the absence of a payment default. If we are not able to refinance our indebtedness after a default, or unable to refinance our indebtedness on favorable terms, distributions
to stockholders and our financial condition would be adversely affected.

We depend on external sources of capital, which may not be available in the
future.

To qualify as a REIT, Regency must, among other things, distribute to its stockholders each year at least 90% of our REIT
taxable income (excluding any net capital gains). Because of these distribution requirements, we likely will not be able to fund all future capital needs, including capital for acquisitions, with income from operations. We therefore will have to
rely on third-party sources of capital, which may or may not be available on favorable terms or at all. Our access to third-party sources of capital depends on a number of things, including the markets perception of our growth potential and
our current and potential future earnings. In addition, our line of credit imposes covenants that limit our flexibility in obtaining other financing, such as a prohibition on negative pledge agreements.



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Additional equity offerings may result in substantial dilution of stockholders interests, and
additional debt financing may substantially increase our degree of leverage.

Risk Factors Related to Interest Rates and the Market for Our Stock

Increased interest rates may reduce distributions to stockholders.

We are obligated on floating rate debt, and if we do not eliminate our exposure to increases in interest rates through interest rate protection or cap
agreements, these increases may reduce cash flow and our ability to make distributions to stockholders.

Although swap agreements enable us
to convert floating rate debt to fixed rate debt and cap agreements enable us to cap our maximum interest rate, they expose us to the risk that the counterparties to these hedge agreements may not perform, which could increase our exposure to rising
interest rates. If we enter into swap agreements, decreases in interest rates will increase our interest expense as compared to the underlying floating rate debt. This could result in our making payments to unwind these agreements, such as in
connection with a prepayment of the floating rate debt. Cap agreements do not protect us from increases up to the capped rate.

Increased market
interest rates could reduce our stock prices.

The annual dividend rate on Regencys common stock as a percentage of its market
price may influence the trading price of Regencys stock. An increase in market interest rates may lead purchasers to demand a higher annual dividend rate, which could adversely affect the market price of our stock. A decrease in the market
price of Regencys common stock could reduce our ability to raise additional equity in the public markets. Selling common stock at a decreased market price would have a dilutive impact on existing shareholders.

Risk Factors Related to Federal Income Tax Laws

If Regency
fails to qualify as a REIT for federal income tax purposes, it would be subject to federal income tax at regular corporate rates.

We
believe that Regency qualifies for taxation as a REIT for federal income tax purposes, and we plan to operate so that we can continue to meet the requirements for taxation as a REIT. If Regency qualifies as a REIT, we generally will not be subject
to federal income tax on our income that we distribute currently to our stockholders. Many of the REIT requirements, however, are highly technical and complex. The determination that we are a REIT requires an analysis of various factual matters and
circumstances, some of which may not be totally within our control and some of which involve questions of interpretation. For example, to qualify as a REIT, at least 95% of our gross income must come from specific passive sources, like rent, that
are itemized in the REIT tax laws. There can be no assurance that the IRS or a court would agree with the positions we have taken in interpreting the REIT requirements. We also are required to distribute to our stockholders at least 90% of our REIT
taxable income (excluding capital gains). The fact that we hold many of our assets through joint ventures and their subsidiaries further complicates the application of the REIT requirements. Even a technical or inadvertent mistake could jeopardize
our REIT status. Furthermore, Congress and the Internal Revenue Service might make changes to the tax laws and regulations, and the courts might issue new rulings, that make it more difficult, or impossible, for us to remain qualified as a REIT.

Also, unless the IRS granted us relief under certain statutory provisions, Regency would remain disqualified as a REIT for four years
following the year we first failed to qualify. If Regency failed to qualify as a REIT, we would have to pay significant income taxes. This likely would have a significant adverse affect on the value of our securities. In addition, we would no longer
be required to pay any dividends to stockholders.

Even if Regency qualifies as a REIT for federal income tax purposes, we are required to
pay certain federal, state and local taxes on our income and property. For example, if we have net income from prohibited transactions, that income will be subject to a 100% tax. In general, prohibited transactions are sales or other
dispositions of property held primarily for sale to customers in the ordinary course of business. The determination as to whether a particular sale is a prohibited transaction depends on the facts and circumstances related to that sale. While we
have undertaken a significant number of asset sales in recent years, we do not believe that those sales should be considered prohibited transactions, but there can be no assurance that the IRS would not contend otherwise.



8



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##### Table of Contents

In addition, any net taxable income earned directly by our taxable affiliates, including Regency Realty
Group, Inc., is subject to federal and state corporate income tax. Several provisions of the laws applicable to REITs and their subsidiaries ensure that a taxable REIT subsidiary will be subject to an appropriate level of federal income taxation.
For example, a taxable REIT subsidiary is limited in its ability to deduct interest payments made to an affiliated REIT. In addition, a REIT has to pay a 100% penalty tax on some payments that it receives if the economic arrangements between the
REIT, the REITs tenants and the taxable REIT subsidiary are not comparable to similar arrangements between unrelated parties. Finally, some state and local jurisdictions may tax some of our income even though as a REIT we are not subject to
federal income tax on that income. To the extent that we and our affiliates are required to pay federal, state and local taxes, we will have less cash available for distributions to our stockholders.

A REIT may not own securities in any one issuer if the value of those securities exceeds 5% of the value of the REITs total assets or the
securities owned by the REIT represent more than 10% of the issuers outstanding voting securities or 10% of the value of the issuers outstanding securities. An exception to these tests allows a REIT to own securities of a subsidiary that
exceed the 5% value test and the 10% value tests if the subsidiary elects to be a taxable REIT subsidiary. We are not able to own securities of taxable REIT subsidiaries that represent in the aggregate more than 20% of the value of our
total assets. We currently own more than 10% of the total value of the outstanding securities of Regency Realty Group, Inc., which has elected to be a taxable REIT subsidiary.

Risk Factors Related to Our Ownership Limitations, the Florida Business Corporation Act and Certain Other Matters

Restrictions on the ownership of our capital stock to preserve our REIT status could delay or prevent a change in control.

Ownership of more than 7% by value of Regencys outstanding capital stock by certain persons is restricted for the purpose of maintaining Regencys qualification as a REIT, with certain exceptions. This 7% limitation may
discourage a change in control and may also (i) deter tender offers for our capital stock, which offers may be attractive to our stockholders, or (ii) limit the opportunity for our stockholders to receive a premium for their capital stock
that might otherwise exist if an investor attempted to assemble a block in excess of 7% of our outstanding capital stock or to effect a change in control.

The issuance of our capital stock could delay or prevent a change in control.

Regencys articles of incorporation
authorize our board of directors to issue up to 30,000,000 shares of preferred stock and 10,000,000 shares of special common stock and to establish the preferences and rights of any shares issued. The issuance of preferred stock or special common
stock could have the effect of delaying or preventing a change in control even if a change in control were in our stockholders interest. The provisions of the Florida Business Corporation Act regarding control share acquisitions and affiliated
transactions could also deter potential acquisitions by preventing the acquiring party from voting the common stock it acquires or consummating a merger or other extraordinary corporate transaction without the approval of Regencys
disinterested stockholders.



|Item 1B. | Unresolved Staff Comments
|-------- | -------------------------

The Partnership has
received no written comments regarding its periodic or current reports from the staff of the Securities and Exchange Commission that were issued 180 days or more preceding December 31, 2006 that remain unresolved.



9



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##### Table of Contents

|Item 2. | Properties
|------- | ----------

The following table is a list of the
shopping centers summarized by state and in order of largest holdings presented on a Combined Basis (includes properties owned by unconsolidated joint ventures):



|                  |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  
|----------------- |  | ----------------- |  | ---------- | ----------------- | ------------- | - |  | -------- | - |  | ------------ |  | ---------- |  | ------------- | - |  | -------- | -
|                  |  | December 31, 2006 |  |            | December 31, 2005 |              
|Location          |  | # Properties      |  | GLA        |                   | % of TotalGLA |   |  | % Leased |   |  | # Properties |  | GLA        |  | % of TotalGLA |   |  | % Leased |  
|California        |  | 71                |  | 9,521,497  |                   | 20.2          | % |  | 88.6     | % |  | 70           |  | 8,855,638  |  | 19.2          | % |  | 93.3     | %
|Florida           |  | 55                |  | 6,175,929  |                   | 13.1          | % |  | 93.1     | % |  | 51           |  | 5,912,994  |  | 12.8          | % |  | 94.5     | %
|Texas             |  | 39                |  | 4,779,440  |                   | 10.1          | % |  | 86.1     | % |  | 38           |  | 5,029,590  |  | 10.9          | % |  | 84.7     | %
|Virginia          |  | 33                |  | 3,884,864  |                   | 8.2           | % |  | 94.1     | % |  | 31           |  | 3,628,732  |  | 7.8           | % |  | 95.0     | %
|Georgia           |  | 32                |  | 2,735,441  |                   | 5.8           | % |  | 92.6     | % |  | 33           |  | 2,850,662  |  | 6.2           | % |  | 95.4     | %
|Colorado          |  | 21                |  | 2,345,224  |                   | 5.0           | % |  | 91.8     | % |  | 22           |  | 2,507,634  |  | 5.4           | % |  | 84.3     | %
|Ohio              |  | 16                |  | 2,292,515  |                   | 4.9           | % |  | 85.3     | % |  | 16           |  | 2,045,260  |  | 4.4           | % |  | 82.3     | %
|Illinois          |  | 16                |  | 2,256,682  |                   | 4.8           | % |  | 95.8     | % |  | 17           |  | 2,410,178  |  | 5.2           | % |  | 95.9     | %
|North Carolina    |  | 16                |  | 2,193,420  |                   | 4.6           | % |  | 92.4     | % |  | 15           |  | 2,114,667  |  | 4.6           | % |  | 91.7     | %
|Maryland          |  | 18                |  | 2,058,329  |                   | 4.4           | % |  | 94.6     | % |  | 21           |  | 2,435,783  |  | 5.3           | % |  | 93.6     | %
|Pennsylvania      |  | 13                |  | 1,649,570  |                   | 3.5           | % |  | 90.1     | % |  | 13           |  | 1,665,005  |  | 3.6           | % |  | 75.3     | %
|Washington        |  | 11                |  | 1,172,684  |                   | 2.5           | % |  | 94.5     | % |  | 12           |  | 1,334,337  |  | 2.9           | % |  | 93.6     | %
|Oregon            |  | 10                |  | 1,011,678  |                   | 2.1           | % |  | 91.5     | % |  | 8            |  | 854,729    |  | 1.8           | % |  | 97.1     | %
|Delaware          |  | 5                 |  | 654,687    |                   | 1.4           | % |  | 91.3     | % |  | 5            |  | 654,687    |  | 1.4           | % |  | 90.3     | %
|Massachusetts     |  | 3                 |  | 568,099    |                   | 1.2           | % |  | 83.7     | % |  |             |  |           |  |              |   |  |         |  
|South Carolina    |  | 9                 |  | 536,847    |                   | 1.1           | % |  | 97.5     | % |  | 6            |  | 624,450    |  | 1.4           | % |  | 97.4     | %
|Arizona           |  | 4                 |  | 496,087    |                   | 1.1           | % |  | 99.3     | % |  | 8            |  | 522,027    |  | 1.1           | % |  | 96.0     | %
|Tennessee         |  | 7                 |  | 488,050    |                   | 1.0           | % |  | 94.4     | % |  | 4            |  | 496,087    |  | 1.1           | % |  | 99.4     | %
|Minnesota         |  | 3                 |  | 483,938    |                   | 1.0           | % |  | 96.5     | % |  | 2            |  | 299097     |  | 0.6           | % |  | 97.3     | %
|Michigan          |  | 4                 |  | 303,412    |                   | 0.6           | % |  | 87.6     | % |  | 3            |  | 282,408    |  | 0.6           | % |  | 95.5     | %
|Kentucky          |  | 2                 |  | 302,670    |                   | 0.6           | % |  | 95.0     | % |  | 2            |  | 302,670    |  | 0.7           | % |  | 94.7     | %
|Wisconsin         |  | 2                 |  | 269,128    |                   | 0.6           | % |  | 97.3     | % |  | 3            |  | 372,382    |  | 0.8           | % |  | 94.4     | %
|Alabama           |  | 2                 |  | 193,558    |                   | 0.4           | % |  | 82.2     | % |  | 3            |  | 267,689    |  | 0.6           | % |  | 84.8     | %
|Indiana           |  | 5                 |  | 193,370    |                   | 0.4           | % |  | 70.9     | % |  | 3            |  | 229,619    |  | 0.5           | % |  | 84.3     | %
|Connecticut       |  | 1                 |  | 179,730    |                   | 0.4           | % |  | 100.0    | % |  | 1            |  | 167,230    |  | 0.4           | % |  | 100.0    | %
|New Jersey        |  | 2                 |  | 156,482    |                   | 0.3           | % |  | 97.8     | % |  | 2            |  | 156,482    |  | 0.3           | % |  | 97.8     | %
|New Hampshire     |  | 2                 |  | 125,173    |                   | 0.3           | % |  | 74.8     | % |  | 2            |  | 112,752    |  | 0.2           | % |  | 67.8     | %
|Nevada            |  | 1                 |  | 119,313    |                   | 0.3           | % |  | 87.4     | % |  | 1            |  | 93,516     |  | 0.2           | % |  | 73.6     | %
|Dist. of Columbia |  | 2                 |  | 39,645     |                   | 0.1           | % |  | 89.4     | % |  | 1            |  | 16,834     |  |              |   |  | 100.0    | %
|                  |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  
|Total             |  | 405               |  | 47,187,462 |                   | 100.0         | % |  | 91.0     | % |  | 393          |  | 46,243,139 |  | 100.0         | % |  | 91.3     | %
|                  |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  



10



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##### Table of Contents

|Item 2. | Properties (continued)
|------- | ----------------------

The following table is a
list of the shopping centers summarized by state and in order of largest holdings presented for Consolidated Properties (excludes properties owned by unconsolidated joint ventures):



|               |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  
|-------------- |  | ----------------- |  | ---------- | ----------------- | ------------- | - |  | -------- | - |  | ------------ |  | ---------- |  | ------------- | - |  | -------- | -
|               |  | December 31, 2006 |  |            | December 31, 2005 |              
|Location       |  | # Properties      |  | GLA        |                   | % of TotalGLA |   |  | % Leased |   |  | # Properties |  | GLA        |  | % of TotalGLA |   |  | % Leased |  
|California     |  | 46                |  | 5,861,515  |                   | 23.8          | % |  | 84.9     | % |  | 45           |  | 5,319,464  |  | 21.8          | % |  | 91.2     | %
|Florida        |  | 34                |  | 4,054,604  |                   | 16.4          | % |  | 93.6     | % |  | 35           |  | 4,185,221  |  | 17.2          | % |  | 95.6     | %
|Texas          |  | 30                |  | 3,629,118  |                   | 14.7          | % |  | 82.5     | % |  | 30           |  | 3,890,913  |  | 16.0          | % |  | 81.6     | %
|Ohio           |  | 14                |  | 2,037,134  |                   | 8.3           | % |  | 83.6     | % |  | 15           |  | 1,936,337  |  | 7.9           | % |  | 81.5     | %
|Georgia        |  | 16                |  | 1,408,407  |                   | 5.7           | % |  | 89.7     | % |  | 16           |  | 1,410,412  |  | 5.8           | % |  | 93.7     | %
|Colorado       |  | 13                |  | 1,158,670  |                   | 4.7           | % |  | 89.0     | % |  | 14           |  | 1,321,080  |  | 5.4           | % |  | 73.4     | %
|Virginia       |  | 9                 |  | 1,018,531  |                   | 4.1           | % |  | 89.1     | % |  | 9            |  | 973,744    |  | 4.0           | % |  | 93.5     | %
|North Carolina |  | 9                 |  | 947,413    |                   | 3.8           | % |  | 95.3     | % |  | 9            |  | 970,506    |  | 4.0           | % |  | 96.6     | %
|Oregon         |  | 7                 |  | 657,008    |                   | 2.7           | % |  | 88.8     | % |  | 5            |  | 500,059    |  | 2.0           | % |  | 97.4     | %
|Pennsylvania   |  | 4                 |  | 587,592    |                   | 2.4           | % |  | 78.1     | % |  | 3            |  | 573,410    |  | 2.3           | % |  | 37.0     | %
|Washington     |  | 6                 |  | 555,666    |                   | 2.3           | % |  | 90.3     | % |  | 7            |  | 717,319    |  | 2.9           | % |  | 89.4     | %
|Tennessee      |  | 7                 |  | 488,050    |                   | 2.0           | % |  | 94.4     | % |  | 6            |  | 624,450    |  | 2.6           | % |  | 97.4     | %
|Illinois       |  | 3                 |  | 415,011    |                   | 1.7           | % |  | 93.6     | % |  | 3            |  | 415,011    |  | 1.7           | % |  | 95.6     | %
|Arizona        |  | 3                 |  | 388,440    |                   | 1.6           | % |  | 99.1     | % |  | 3            |  | 388,440    |  | 1.6           | % |  | 99.3     | %
|Massachusetts  |  | 2                 |  | 382,820    |                   | 1.5           | % |  | 76.1     | % |  |             |  |           |  |              |   |  |         |  
|Michigan       |  | 4                 |  | 303,412    |                   | 1.2           | % |  | 87.6     | % |  | 3            |  | 282,408    |  | 1.1           | % |  | 95.5     | %
|Delaware       |  | 2                 |  | 240,418    |                   | 1.0           | % |  | 98.7     | % |  | 2            |  | 240,418    |  | 1.0           | % |  | 97.8     | %
|Maryland       |  | 1                 |  | 129,940    |                   | 0.5           | % |  | 67.0     | % |  | 1            |  | 121,050    |  | 0.5           | % |  | 49.6     | %
|New Hampshire  |  | 2                 |  | 125,173    |                   | 0.5           | % |  | 74.8     | % |  | 2            |  | 112,752    |  | 0.5           | % |  | 67.8     | %
|Nevada         |  | 1                 |  | 119,313    |                   | 0.5           | % |  | 87.4     | % |  | 1            |  | 93,516     |  | 0.4           | % |  | 73.6     | %
|South Carolina |  | 2                 |  | 91,361     |                   | 0.4           | % |  | 94.7     | % |  | 2            |  | 140,900    |  | 0.6           | % |  | 91.2     | %
|Indiana        |  | 3                 |  | 54,486     |                   | 0.2           | % |  | 23.5     | % |  | 1            |  | 90,735     |  | 0.4           | % |  | 72.2     | %
|Alabama        |  |                  |  |           |                   |              |   |  |         |   |  | 1            |  | 74,131     |  | 0.3           | % |  | 96.8     | %
|               |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  
|Total          |  | 218               |  | 24,654,082 |                   | 100.0         | % |  | 87.3     | % |  | 213          |  | 24,382,276 |  | 100.0         | % |  | 88.0     | %
|               |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  

The Consolidated Properties are encumbered by notes payable of $255.6 million.



11



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##### Table of Contents

|Item 2. | Properties (continued)
|------- | ----------------------

The following table is a
list of the shopping centers summarized by state and in order of largest holdings presented for Unconsolidated Properties (only properties owned by unconsolidated joint ventures):



|                  |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  
|----------------- |  | ----------------- |  | ---------- | ----------------- | ------------- | - |  | -------- | - |  | ------------ |  | ---------- |  | ------------- | - |  | -------- | -
|                  |  | December 31, 2006 |  |            | December 31, 2005 |              
|Location          |  | # Properties      |  | GLA        |                   | % of TotalGLA |   |  | % Leased |   |  | # Properties |  | GLA        |  | % of TotalGLA |   |  | % Leased |  
|California        |  | 25                |  | 3,659,982  |                   | 16.2          | % |  | 94.5     | % |  | 25           |  | 3,536,174  |  | 16.2          | % |  | 96.5     | %
|Virginia          |  | 24                |  | 2,866,333  |                   | 12.7          | % |  | 95.8     | % |  | 22           |  | 2,654,988  |  | 12.2          | % |  | 95.6     | %
|Florida           |  | 21                |  | 2,121,325  |                   | 9.4           | % |  | 92.1     | % |  | 16           |  | 1,727,773  |  | 7.9           | % |  | 91.7     | %
|Maryland          |  | 17                |  | 1,928,389  |                   | 8.6           | % |  | 96.4     | % |  | 20           |  | 2,314,733  |  | 10.6          | % |  | 95.9     | %
|Illinois          |  | 13                |  | 1,841,671  |                   | 8.2           | % |  | 96.3     | % |  | 14           |  | 1,995,167  |  | 9.1           | % |  | 95.9     | %
|Georgia           |  | 16                |  | 1,327,034  |                   | 5.9           | % |  | 95.7     | % |  | 17           |  | 1,440,250  |  | 6.6           | % |  | 97.0     | %
|North Carolina    |  | 7                 |  | 1,246,007  |                   | 5.5           | % |  | 90.1     | % |  | 6            |  | 1,144,161  |  | 5.2           | % |  | 87.6     | %
|Colorado          |  | 8                 |  | 1,186,554  |                   | 5.3           | % |  | 94.5     | % |  | 8            |  | 1,186,554  |  | 5.4           | % |  | 96.3     | %
|Texas             |  | 9                 |  | 1,150,322  |                   | 5.1           | % |  | 97.4     | % |  | 8            |  | 1,138,677  |  | 5.2           | % |  | 95.4     | %
|Pennsylvania      |  | 9                 |  | 1,061,978  |                   | 4.7           | % |  | 96.8     | % |  | 10           |  | 1,091,595  |  | 5.0           | % |  | 95.5     | %
|Washington        |  | 5                 |  | 617,018    |                   | 2.7           | % |  | 98.3     | % |  | 5            |  | 617,018    |  | 2.8           | % |  | 98.4     | %
|Minnesota         |  | 3                 |  | 483,938    |                   | 2.2           | % |  | 96.5     | % |  | 2            |  | 299,097    |  | 1.4           | % |  | 97.3     | %
|South Carolina    |  | 7                 |  | 445,486    |                   | 2.0           | % |  | 98.0     | % |  | 6            |  | 381,127    |  | 1.7           | % |  | 97.9     | %
|Delaware          |  | 3                 |  | 414,269    |                   | 1.8           | % |  | 87.0     | % |  | 3            |  | 414,269    |  | 1.9           | % |  | 85.9     | %
|Oregon            |  | 3                 |  | 354,670    |                   | 1.6           | % |  | 96.5     | % |  | 3            |  | 354,670    |  | 1.6           | % |  | 96.6     | %
|Kentucky          |  | 2                 |  | 302,670    |                   | 1.3           | % |  | 95.0     | % |  | 2            |  | 302,670    |  | 1.4           | % |  | 94.7     | %
|Wisconsin         |  | 2                 |  | 269,128    |                   | 1.2           | % |  | 97.3     | % |  | 3            |  | 372,382    |  | 1.7           | % |  | 94.4     | %
|Ohio              |  | 2                 |  | 255,381    |                   | 1.1           | % |  | 99.0     | % |  | 1            |  | 108,923    |  | 0.5           | % |  | 97.6     | %
|Alabama           |  | 2                 |  | 193,558    |                   | 0.9           | % |  | 82.2     | % |  | 2            |  | 193,558    |  | 0.9           | % |  | 80.2     | %
|Massachusetts     |  | 1                 |  | 185279     |                   | 0.8           | % |  | 99.4     | % |  |             |  |           |  |              |   |  |         |  
|Connecticut       |  | 1                 |  | 179,730    |                   | 0.8           | % |  | 100.0    | % |  | 1            |  | 167,230    |  | 0.8           | % |  | 100.0    | %
|New Jersey        |  | 2                 |  | 156,482    |                   | 0.7           | % |  | 97.8     | % |  | 2            |  | 156,482    |  | 0.7           | % |  | 97.8     | %
|Indiana           |  | 2                 |  | 138,884    |                   | 0.6           | % |  | 89.5     | % |  | 2            |  | 138,884    |  | 0.6           | % |  | 92.2     | %
|Arizona           |  | 1                 |  | 107,647    |                   | 0.5           | % |  | 100.0    | % |  | 1            |  | 107,647    |  | 0.5           | % |  | 100.0    | %
|Dist. of Columbia |  | 2                 |  | 39,645     |                   | 0.2           | % |  | 89.4     | % |  | 1            |  | 16,834     |  | 0.1           | % |  | 100.0    | %
|                  |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  
|Total             |  | 187               |  | 22,533,380 |                   | 100.0         | % |  | 95.0     | % |  | 180          |  | 21,860,863 |  | 100.0         | % |  | 95.1     | %
|                  |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  

The Unconsolidated Properties are encumbered by mortgage loans of $2.4 billion.



12



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##### Table of Contents

|Item 2. | Properties (continued)
|------- | ----------------------

The following table
summarizes the largest tenants occupying our shopping centers for Consolidated Properties plus RCLPs pro-rata share of Unconsolidated Properties as of December 31, 2006 based upon a percentage of total annualized base rent exceeding .5%.



|                  |  |           |  |                                 |  |      |            |                                    |       |                         |     |                         |  
|----------------- |  | --------- |  | ------------------------------- |  | ---- | ---------- | ---------------------------------- | ----- | ----------------------- | --- | ----------------------- | -
|Tenant            |  | GLA       |  | Percent to PartnershipOwned GLA |  | Rent |            | Percentage of Annualized Base
Rent |       | Number of Leased Stores |     | Anchor Owned Stores (a)
|Kroger            |  | 2,825,054 |  | 9.5%                            |  | $    | 26,677,947 |                                    | 6.42% |                         | 61  |                         | 6
|Publix            |  | 1,879,573 |  | 6.3%                            |  |      | 17,136,135 |                                    | 4.12% |                         | 64  |                         | 1
|Safeway           |  | 1,739,928 |  | 5.8%                            |  |      | 16,132,896 |                                    | 3.88% |                         | 59  |                         | 6
|Supervalu         |  | 1,073,407 |  | 3.6%                            |  |      | 12,132,690 |                                    | 2.92% |                         | 34  |                         | 1
|Blockbuster Video |  | 325,679   |  | 1.1%                            |  |      | 6,927,385  |                                    | 1.67% |                         | 86  |                         | 
|CVS               |  | 284,405   |  | 1.0%                            |  |      | 4,419,208  |                                    | 1.06% |                         | 43  |                         | 
|Walgreens         |  | 229,889   |  | 0.8%                            |  |      | 4,087,458  |                                    | 0.98% |                         | 23  |                         | 
|TJX Companies     |  | 369,164   |  | 1.2%                            |  |      | 3,686,315  |                                    | 0.89% |                         | 23  |                         | 
|H.E.B.            |  | 319,534   |  | 1.1%                            |  |      | 3,672,613  |                                    | 0.88% |                         | 5   |                         | 
|Harris Teeter     |  | 296,407   |  | 1.0%                            |  |      | 3,663,500  |                                    | 0.88% |                         | 8   |                         | 
|Sears Holdings    |  | 439,422   |  | 1.5%                            |  |      | 3,240,761  |                                    | 0.78% |                         | 17  |                         | 1
|Washington Mutual |  | 106,099   |  | 0.4%                            |  |      | 3,197,978  |                                    | 0.77% |                         | 42  |                         | 
|Ahold             |  | 202,374   |  | 0.7%                            |  |      | 3,030,936  |                                    | 0.73% |                         | 11  |                         | 
|Starbucks         |  | 95,873    |  | 0.3%                            |  |      | 2,948,145  |                                    | 0.71% |                         | 87  |                         | 
|Hallmark          |  | 160,009   |  | 0.5%                            |  |      | 2,665,788  |                                    | 0.64% |                         | 60  |                         | 
|Bank of America   |  | 65,702    |  | 0.2%                            |  |      | 2,639,990  |                                    | 0.63% |                         | 32  |                         | 
|Longs Drugs      |  | 211,818   |  | 0.7%                            |  |      | 2,516,809  |                                    | 0.61% |                         | 15  |                         | 
|Subway            |  | 90,333    |  | 0.3%                            |  |      | 2,419,034  |                                    | 0.58% |                         | 111 |                         | 
|Movie Gallery     |  | 110,211   |  | 0.4%                            |  |      | 2,331,583  |                                    | 0.56% |                         | 35  |                         | 
|Stater Bros.      |  | 154,211   |  | 0.5%                            |  |      | 2,323,129  |                                    | 0.56% |                         | 5   |                         | 
|Petco             |  | 137,488   |  | 0.5%                            |  |      | 2,322,006  |                                    | 0.56% |                         | 17  |                         | 
|The UPS Store     |  | 97,359    |  | 0.3%                            |  |      | 2,293,231  |                                    | 0.55% |                         | 109 |                         | 

---

|(a) | Stores owned by anchor tenant that are attached to our centers.
|--- | ---------------------------------------------------------------

RCLPs leases have terms generally ranging from three to five years for tenant space under 5,000 square feet. Leases greater than 10,000 square feet generally have lease terms in excess of five years, mostly comprised of anchor
tenants. Many of the anchor leases contain provisions allowing the tenant the option of extending the term of the lease at expiration. The leases provide for the monthly payment in advance of fixed minimum rentals, additional rents calculated as a
percentage of the tenants sales, the tenants pro-rata share of real estate taxes, insurance, and common area maintenance expenses, and reimbursement for utility costs if not directly metered.



13



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##### Table of Contents

|Item 2. | Properties (continued)
|------- | ----------------------

The following table sets
forth a schedule of lease expirations for the next ten years, assuming no tenants renew their leases:



|                      |  |                  |  |                                      |   |  |                                  |             |                                   |       |  
|--------------------- |  | ---------------- |  | ------------------------------------ | - |  | -------------------------------- | ----------- | --------------------------------- | ----- | -
|Lease Expiration Year |  | Expiring GLA (2) |  | Percent of Total Partnership GLA (2) |   |  | Minimum Rent Expiring Leases (3) |             | Percent of Total Minimum Rent (3) |      
|(1)                   |  | 485,733          |  | 2.8                                  | % |  | $                                | 9,146,621   |                                   | 3.1   | %
|2007                  |  | 1,924,969        |  | 11.0                                 | % |  |                                  | 35,170,585  |                                   | 11.7  | %
|2008                  |  | 2,441,464        |  | 14.0                                 | % |  |                                  | 42,275,232  |                                   | 14.1  | %
|2009                  |  | 2,680,219        |  | 15.3                                 | % |  |                                  | 48,562,907  |                                   | 16.2  | %
|2010                  |  | 2,402,453        |  | 13.7                                 | % |  |                                  | 43,146,062  |                                   | 14.4  | %
|2011                  |  | 2,801,981        |  | 16.0                                 | % |  |                                  | 47,813,463  |                                   | 15.9  | %
|2012                  |  | 1,697,300        |  | 9.7                                  | % |  |                                  | 24,925,379  |                                   | 8.3   | %
|2013                  |  | 767,748          |  | 4.4                                  | % |  |                                  | 12,723,505  |                                   | 4.3   | %
|2014                  |  | 750,504          |  | 4.3                                  | % |  |                                  | 10,862,314  |                                   | 3.6   | %
|2015                  |  | 724,034          |  | 4.1                                  | % |  |                                  | 11,813,608  |                                   | 3.9   | %
|2016                  |  | 814,819          |  | 4.7                                  | % |  |                                  | 13,588,941  |                                   | 4.5   | %
|                      |  |                  |  |                                      |   |  |                                  |             |                                   |       |  
|10 Year Total         |  | 17,491,224       |  | 100.0                                | % |  |                                  | 300,028,617 |                                   | 100.0 | %
|                      |  |                  |  |                                      |   |  |                                  |             |                                   |       |  

---

|(1) | leased currently under month to month rent or in process of renewal
|--- | -------------------------------------------------------------------

|(2) | represents GLA for Consolidated Properties plus RCLPs pro-rata share of Unconsolidated Properties
|--- | --------------------------------------------------------------------------------------------------

|(3) | total minimum rent includes current minimum rent and future contractual rent steps for the Consolidated properties plus RCLPs pro-rata share from Unconsolidated Properties,
but excludes additional rent such as percentage rent, common area maintenance, real estate taxes and insurance reimbursements
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



14



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##### Table of Contents

See the following Combined Basis property table and also see Item 7, Managements Discussion and Analysis for
further information about the Partnerships properties.



|                                    |  |               |  |                       |  |                         |  |                   |   |  |                    |  |                                                                                                                                        
|----------------------------------- |  | ------------- |  | --------------------- |  | ----------------------- |  | ----------------- | - |  | ------------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------
|Property Name                       |  | Year Acquired |  | Year Con-structed (1) |  | GrossLeasableArea (GLA) |  | PercentLeased (2) |   |  | GroceryAnchor      |  | Drug Store & Other Anchors > 10,000 Sq Ft                                                                                              
|CALIFORNIA                          |  |               |  |                       |  |                         |  |                   |   |  |                    |  |                                                                                                                                        
|                                    |  |               |  |                       |  |                        
|Los Angeles/ Southern CA            |  |               |  |                       |  |                         |  |                   |   |  |                    |  |                                                                                                                                        
|4S Commons Town Center              |  | 2004          |  | 2004                  |  | 240,239                 |  | 93.7              | % |  | Ralphs             |  | Metropolis Funiture, Griffin Ace Hardware, JimbosNaturally!, Sav-On Drugs, Cost Plus, Bed Bath & Beyond, LA Fitness                  
|Amerige Heights Town Center (4)     |  | 2000          |  | 2000                  |  | 96,679                  |  | 97.9              | % |  | Albertsons         |  | (Target)                                                                                                                               
|Bear Creek Phase II (3)             |  | 2005          |  | 2005                  |  | 23,001                  |  | 80.3              | % |  |                   |  |                                                                                                                                       
|Bear Creek Village Center (4)       |  | 2003          |  | 2004                  |  | 75,220                  |  | 96.1              | % |  | Stater Bros.       |  |                                                                                                                                       
|Brea Marketplace (4)                |  | 2005          |  | 1987                  |  | 298,311                 |  | 69.7              | % |  |                   |  | 24 Hour Fitness, Circuit City, Big 5 Sporting Goods, Toys R Us, Beverages & More, Childtime Childcare, Crown Books Liquidation Center
|Campus Marketplace (4)              |  | 2000          |  | 2000                  |  | 144,289                 |  | 99.2              | % |  | Ralphs             |  | Longs Drug, Discovery Isle Child Development Center                                                                                   
|Costa Verde                         |  | 1999          |  | 1988                  |  | 178,623                 |  | 100.0             | % |  | Albertsons         |  | Bookstar, The Boxing Club                                                                                                              
|El Camino                           |  | 1999          |  | 1995                  |  | 135,728                 |  | 100.0             | % |  | Vons Food& Drug   |  | Sav-On Drugs                                                                                                                           
|El Norte Pkwy Plaza                 |  | 1999          |  | 1984                  |  | 90,679                  |  | 98.3              | % |  | Vons Food& Drug   |  | Longs Drug                                                                                                                            
|Falcon Ridge Town Center (4)        |  | 2003          |  | 2004                  |  | 232,754                 |  | 100.0             | % |  | Stater Bros.       |  | (Target), Sports Authority, Ross Dress for Less, Linens-N-Things, Michaels, Pier 1 Imports                                            
|Falcon Ridge Town Center Phase II   |  | 2005          |  | 2005                  |  | 66,864                  |  | 100.0             | % |  |                   |  | 24 Hour Fitness, Sav On                                                                                                                
|Five Points Shopping Center (4)     |  | 2005          |  | 1960                  |  | 144,553                 |  | 100.0             | % |  | Albertsons         |  | Longs Drug, Ross Dress for Less, Big 5 Sporting Goods                                                                                 
|French Valley                       |  | 2004          |  | 2004                  |  | 99,020                  |  | 98.5              | % |  | Stater Bros.       |  |                                                                                                                                       
|Friars Mission                      |  | 1999          |  | 1989                  |  | 146,898                 |  | 99.0              | % |  | Ralphs             |  | Longs Drug                                                                                                                            
|Garden Village Shopping Center (4)  |  | 2000          |  | 2000                  |  | 112,767                 |  | 100.0             | % |  | Albertsons         |  | Rite Aid                                                                                                                               
|Gelsons Westlake Market Plaza      |  | 2002          |  | 2002                  |  | 84,975                  |  | 97.6              | % |  | GelsonsMarkets    |  | John of Italy Salon & Spa                                                                                                              
|Golden Hills Promenade (3)          |  | 2006          |  | 2006                  |  | 291,732                 |  | 58.0              | % |  |                   |  | Lowes                                                                                                                                 
|Granada Village (4)                 |  | 2005          |  | 1965                  |  | 224,649                 |  | 95.0              | % |  | Ralphs             |  | Rite Aid, TJ Maxx, Stein Mart                                                                                                          
|Hasley Canyon Village               |  | 2003          |  | 2003                  |  | 65,801                  |  | 100.0             | % |  | Ralphs             |  |                                                                                                                                       
|Heritage Plaza                      |  | 1999          |  | 1981                  |  | 231,582                 |  | 99.9              | % |  | Ralphs             |  | Sav-On Drugs, Hands On Bicycles, Inc., Total Woman, Irvine Ace Hardware                                                                
|Indio-Jackson (3)                   |  | 2006          |  | 2006                  |  | 295,194                 |  | 1.7               | % |  |                   |  |                                                                                                                                       
|Laguna Niguel Plaza (4)             |  | 2005          |  | 1985                  |  | 41,943                  |  | 93.7              | % |  | (Albertsons)       |  | Sav-On Drugs                                                                                                                           
|Morningside Plaza                   |  | 1999          |  | 1996                  |  | 91,336                  |  | 98.2              | % |  | Stater Bros.       |  |                                                                                                                                       
|Navajo Shopping Center (4)          |  | 2005          |  | 1964                  |  | 102,138                 |  | 100.0             | % |  | Albertsons         |  | Rite Aid, Kragen Auto Parts                                                                                                            
|Newland Center                      |  | 1999          |  | 1985                  |  | 149,174                 |  | 100.0             | % |  | Albertsons         |  |                                                                                                                                       
|Oakbrook Plaza                      |  | 1999          |  | 1982                  |  | 83,279                  |  | 100.0             | % |  | Albertsons         |  | (Longs Drug)                                                                                                                          
|Park Plaza Shopping Center (4)      |  | 2001          |  | 1991                  |  | 197,166                 |  | 98.9              | % |  | HenrysMarketplace |  | Sav-On Drugs, Petco, Ross Dress For Less, Office Depot                                                                                 
|Plaza Hermosa                       |  | 1999          |  | 1984                  |  | 94,940                  |  | 100.0             | % |  | Vons Food& Drug   |  | Sav-On Drugs                                                                                                                           
|Point Loma Plaza (4)                |  | 2005          |  | 1987                  |  | 212,796                 |  | 94.3              | % |  | Vons Food& Drug   |  | Sport Chalet 5, 24 Hour Fitness, Jo-Ann Fabrics                                                                                        
|Rancho San Diego Village (4)        |  | 2005          |  | 1981                  |  | 152,896                 |  | 90.6              | % |  | Vons Food& Drug   |  | (Longs Drug), 24 Hour Fitness                                                                                                         
|Rio Vista Town Center (3)           |  | 2005          |  | 2005                  |  | 88,760                  |  | 54.3              | % |  | Stater Bros.       |  | (CVS)                                                                                                                                  
|Rona Plaza                          |  | 1999          |  | 1989                  |  | 51,754                  |  | 94.4              | % |  | Food 4 Less        |  |                                                                                                                                       
|Santa Ana Downtown                  |  | 1999          |  | 1987                  |  | 100,306                 |  | 97.8              | % |  | Food 4 Less        |  | Famsa, Inc.                                                                                                                            
|Santa Maria Commons                 |  | 2005          |  | 2005                  |  | 113,514                 |  | 85.3              | % |  |                   |  | Kohls, Rite Aid                                                                                                                       
|Seal Beach (3)(4)                   |  | 2002          |  | 1966                  |  | 102,235                 |  | 91.5              | % |  | Safeway            |  | Sav-On Drugs                                                                                                                           
|Shops of Santa Barbara              |  | 2003          |  | 2004                  |  | 51,568                  |  | 97.3              | % |  |                   |  | Circuit City                                                                                                                           
|Shops of Santa Barbara Phase II (3) |  | 2004          |  | 2004                  |  | 69,354                  |  | 93.7              | % |  | WholeFoods         |  |                                                                                                                                       
|Soquel Canyon Crossings (3)         |  | 2005          |  | 2005                  |  | 38,926                  |  | 90.0              | % |  |                   |  | Rite Aid                                                                                                                               
|Twin Oaks Shopping Center (4)       |  | 2005          |  | 1978                  |  | 98,399                  |  | 100.0             | % |  | Ralphs             |  | Rite Aid                                                                                                                               



15



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##### Table of Contents

|                                       |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                                
|-------------------------------------- |  | ------------- |  | --------------------- |  | ----------------------- |  | ----------------- | - |  | --------------------- |  | -----------------------------------------------------------------------------------------------
|Property Name                          |  | Year Acquired |  | Year Con-structed (1) |  | GrossLeasableArea (GLA) |  | PercentLeased (2) |   |  | GroceryAnchor         |  | Drug Store & Other Anchors > 10,000 Sq Ft                                                      
|CALIFORNIA (continued)                 |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                                
|                                       |  |               |  |                       |  |                        
|Los Angeles/ Southern CA               |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                                
|Twin Peaks                             |  | 1999          |  | 1988                  |  | 198,139                 |  | 100.0             | % |  | Albertsons            |  | Target                                                                                         
|Valencia Crossroads                    |  | 2002          |  | 2003                  |  | 167,857                 |  | 100.0             | % |  | WholeFoods            |  | Kohls                                                                                         
|Ventura Village                        |  | 1999          |  | 1984                  |  | 76,070                  |  | 97.9              | % |  | VonsFood &Drug       |  |                                                                                               
|Vine at Castaic (3)                    |  | 2005          |  | 2005                  |  | 30,268                  |  | 44.5              | % |  |                      |  |                                                                                               
|Vista Village Phase I                  |  | 2002          |  | 2003                  |  | 129,009                 |  | 100.0             | % |  | SproutsMarkets       |  | Krikorian Theaters, Linens-N-Things, (Lowes)                                                 
|Vista Village Phase II                 |  | 2002          |  | 2003                  |  | 55,000                  |  | 100.0             | % |  |                      |  | (Staples)                                                                                      
|Vista Village IV (3)                   |  | 2006          |  | 2006                  |  | 11,000                  |  | 54.5              | % |  |                      |  |                                                                                               
|Westlake Village Plaza and Center      |  | 1999          |  | 1975                  |  | 190,519                 |  | 100.0             | % |  | VonsFood &Drug       |  | (Sav-On Drugs), Longs Drug, Total Woman                                                       
|Westridge                              |  | 2001          |  | 2003                  |  | 94,410                  |  | 100.0             | % |  | Albertsons            |  | Beverages & More!                                                                              
|Woodman Van Nuys                       |  | 1999          |  | 1992                  |  | 107,614                 |  | 100.0             | % |  | Gigante               |  |                                                                                               
|                                       |  |               |  |                       |  |                        
|San Francisco/ Northern CA             |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                                
|                                       |  |               |  |                       |  |                        
|Alameda Bridgeside Shopping Center (3) |  | 2003          |  | 2004                  |  | 105,118                 |  | 81.0              | % |  | Nob Hill              |  |                                                                                               
|Applegate Ranch Shopping Center (3)    |  | 2006          |  | 2006                  |  | 179,450                 |  | 0.0               | % |  | (SuperTarget)         |  | (Super Target), (Home Depot)                                                                   
|Auburn Village (4)                     |  | 2005          |  | 1990                  |  | 133,944                 |  | 97.2              | % |  | Bel AirMarket         |  | Bel Air Market, Goodwill Industries, (Longs Drug)                                             
|Bayhill Shopping Center (4)            |  | 2005          |  | 1990                  |  | 121,846                 |  | 100.0             | % |  | MollieStonesMarket   |  | Longs Drug                                                                                    
|Blossom Valley                         |  | 1999          |  | 1990                  |  | 93,316                  |  | 100.0             | % |  | Safeway               |  | Longs Drug                                                                                    
|Clayton Valley (3)                     |  | 2003          |  | 2004                  |  | 275,785                 |  | 62.4              | % |  |                      |  | Yardbirds Home Center, Longs Drugs, Dollar Tree                                               
|Clovis Commons (3)                     |  | 2004          |  | 2004                  |  | 182,185                 |  | 76.7              | % |  | (SuperTarget)         |  | (Super Target), Petsmart, TJ Maxx, Office Depot                                                
|Corral Hollow (4)                      |  | 2000          |  | 2000                  |  | 167,184                 |  | 100.0             | % |  | Safeway               |  | Longs Drug, Sears Orchard Supply & Hardware                                                   
|Diablo Plaza                           |  | 1999          |  | 1982                  |  | 63,265                  |  | 100.0             | % |  | (Safeway)             |  | (Longs Drug), Jo-Ann Fabrics                                                                  
|El Cerrito Plaza (4)                   |  | 2000          |  | 2000                  |  | 256,035                 |  | 85.3              | % |  | (Luckys),TraderJoes |  | (Longs Drug), Bed, Bath & Beyond, Barnes & Noble, Copelands Sports, Petco, Ross Dress For Less
|Encina Grande                          |  | 1999          |  | 1965                  |  | 102,499                 |  | 99.1              | % |  | Safeway               |  | Walgreens                                                                                      
|Folsom Prairie City Crossing           |  | 1999          |  | 1999                  |  | 90,237                  |  | 100.0             | % |  | Safeway               |  |                                                                                               
|Loehmanns Plaza California             |  | 1999          |  | 1983                  |  | 113,310                 |  | 96.5              | % |  | (Safeway)             |  | Longs Drug, Loehmanns                                                                        
|Mariposa Shopping Center (4)           |  | 2005          |  | 1957                  |  | 126,658                 |  | 100.0             | % |  | Safeway               |  | Longs Drug, Ross Dress for Less                                                               
|Pleasant Hill Shopping Center (4)      |  | 2005          |  | 1970                  |  | 233,679                 |  | 99.2              | % |  |                      |  | Marshalls, Barnes & Noble, Toys R Us, Target                                                 
|Powell Street Plaza                    |  | 2001          |  | 1987                  |  | 165,928                 |  | 100.0             | % |  | TraderJoes           |  | Circuit City, Copeland Sports, Ethan Allen, Jo-Ann Fabrics, Ross Dress For Less                
|San Leandro                            |  | 1999          |  | 1982                  |  | 50,432                  |  | 100.0             | % |  | (Safeway)             |  | (Longs Drug)                                                                                  
|Sequoia Station                        |  | 1999          |  | 1996                  |  | 103,148                 |  | 100.0             | % |  | (Safeway)             |  | Longs Drug, Barnes & Noble, Old Navy, Warehouse Music                                         
|Silverado Plaza (4)                    |  | 2005          |  | 1974                  |  | 84,916                  |  | 99.5              | % |  | Nob Hill              |  | Longs Drug                                                                                    
|Snell & Branham Plaza (4)              |  | 2005          |  | 1988                  |  | 99,349                  |  | 100.0             | % |  | Safeway               |  |                                                                                               
|Stanford Ranch Village (4)             |  | 2005          |  | 1991                  |  | 89,875                  |  | 89.3              | % |  | Bel AirMarket         |  | Plum Pharmacy                                                                                  
|Strawflower Village                    |  | 1999          |  | 1985                  |  | 78,827                  |  | 100.0             | % |  | Safeway               |  | (Longs Drug)                                                                                  
|Tassajara Crossing                     |  | 1999          |  | 1990                  |  | 146,188                 |  | 100.0             | % |  | Safeway               |  | Longs Drug, Ace Hardware                                                                      
|West Park Plaza                        |  | 1999          |  | 1996                  |  | 88,103                  |  | 98.3              | % |  | Safeway               |  | Rite Aid                                                                                       
|Woodside Central                       |  | 1999          |  | 1993                  |  | 80,591                  |  | 100.0             | % |  |                      |  | CEC Entertainment, Marshalls. (Target)                                                         
|Ygnacio Plaza (4)                      |  | 2005          |  | 1968                  |  | 109,701                 |  | 100.0             | % |  | Albertsons            |  | Rite Aid                                                                                       
|                                       |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                                
|Subtotal/Weighted Average (CA)         |  |               |  |                       |  | 9,521,497               |  | 88.6              | % |  |                       |  |                                                                                                
|                                       |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                                
|FLORIDA                                |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                                
|                                       |  |               |  |                       |  |                        
|Ft. Myers / Cape Coral                 |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                                
|First Street Village (3)               |  | 2006          |  | 2006                  |  | 91,860                  |  | 42.7              | % |  | Publix                |  |                                                                                               
|Grande Oak                             |  | 2000          |  | 2000                  |  | 78,784                  |  | 98.2              | % |  | Publix                |  |                                                                                               



16



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##### Table of Contents

|                                         |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                                                  
|---------------------------------------- |  | ------------- |  | --------------------- |  | ----------------------- |  | ----------------- | - |  | ------------- |  | ---------------------------------------------------------------------------------------------------------------------------------
|Property Name                            |  | Year Acquired |  | Year Con-structed (1) |  | GrossLeasableArea (GLA) |  | PercentLeased (2) |   |  | GroceryAnchor |  | Drug Store & Other Anchors > 10,000 Sq Ft                                                                                        
|FLORIDA (continued)                      |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                                                  
|                                         |  |               |  |                       |  |                        
|Jacksonville / North Florida             |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                                                  
|Anastasia Plaza (4)                      |  | 1993          |  | 1988                  |  | 102,342                 |  | 100.0             | % |  | Publix        |  |                                                                                                                                 
|Canopy Oak Center (3)(4)                 |  | 2006          |  | 2006                  |  | 90,043                  |  | 60.3              | % |  | Publix        |  |                                                                                                                                 
|Carriage Gate                            |  | 1994          |  | 1978                  |  | 76,783                  |  | 100.0             | % |  |              |  | Leon County Tax Collector, TJ Maxx                                                                                               
|Courtyard Shopping Center                |  | 1993          |  | 1987                  |  | 137,256                 |  | 100.0             | % |  | (Publix)      |  | Target                                                                                                                           
|East San MarcoCondo (3)(4)              |  | 2006          |  | 2006                  |  |                        |  |                  |   |  |              |  |                                                                                                                                 
|East San MarcoRetail (3)(4)             |  | 2006          |  | 2006                  |  | 54,464                  |  | 56.2              | % |  | Publix        |  |                                                                                                                                 
|Fleming Island                           |  | 1998          |  | 2000                  |  | 136,662                 |  | 97.7              | % |  | Publix        |  | Stein Mart, (Target)                                                                                                             
|Hibernia Plaza (3)                       |  | 2006          |  | 2006                  |  | 59,103                  |  | 66.3              | % |  | Publix        |  | (Walgreens)                                                                                                                      
|Highland Square (4)                      |  | 1998          |  | 1999                  |  | 262,195                 |  | 77.0              | % |  | Publix        |  | CVS, Baileys Powerhouse Gym, Bealls Outlet, Big Lots                                                                           
|Johns Creek Shopping Center             |  | 2003          |  | 2004                  |  | 89,921                  |  | 96.9              | % |  | Publix        |  | Walgreens                                                                                                                        
|Julington Village (4)                    |  | 1999          |  | 1999                  |  | 81,820                  |  | 100.0             | % |  | Publix        |  | (CVS)                                                                                                                            
|Millhopper                               |  | 1993          |  | 1974                  |  | 84,065                  |  | 100.0             | % |  | Publix        |  | CVS, Jo-Ann Fabrics                                                                                                              
|Newberry Square                          |  | 1994          |  | 1986                  |  | 180,524                 |  | 95.8              | % |  | Publix        |  | Jo-Ann Fabrics, K-Mart                                                                                                           
|Oakleaf Plaza (3)                        |  | 2006          |  | 2006                  |  | 73,719                  |  | 61.9              | % |  | Publix        |  |                                                                                                                                 
|Ocala Corners (4)                        |  | 2000          |  | 2000                  |  | 86,772                  |  | 96.6              | % |  | Publix        |  |                                                                                                                                 
|Old St Augustine Plaza                   |  | 1996          |  | 1990                  |  | 232,459                 |  | 100.0             | % |  | Publix        |  | CVS, Burlington Coat Factory, Hobby Lobby                                                                                        
|Palm Harbor Shopping Village (4)         |  | 1996          |  | 1991                  |  | 172,758                 |  | 99.7              | % |  | Publix        |  | CVS, Bealls                                                                                                                      
|Pine Tree Plaza                          |  | 1997          |  | 1999                  |  | 63,387                  |  | 100.0             | % |  | Publix        |  |                                                                                                                                 
|Plantation Plaza (4)                     |  | 2004          |  | 2004                  |  | 77,747                  |  | 100.0             | % |  | Publix        |  |                                                                                                                                 
|Regency Court                            |  | 1997          |  | 1992                  |  | 218,649                 |  | 97.1              | % |  |              |  | Sports Authority, Comp USA, Office Depot, Recreational Factory Warehouse, Sofa Express                                           
|Shoppes at Bartram Park (4)              |  | 2005          |  | 2004                  |  | 77,067                  |  | 100.0             | % |  | Publix        |  |                                                                                                                                 
|                                         |  |               |  |                       |  |                        
|Shoppes at Bartram ParkPhase II (3)(4)  |  | 2005          |  | 2005                  |  | 28,345                  |  | 92.0              | % |  |              |  |                                                                                                                                 
|                                         |  |               |  |                       |  |                        
|Shoppes at Bartram ParkPhase III (3)(4) |  | 2005          |  | 2005                  |  | 12,002                  |  |                  |   |  |              |  |                                                                                                                                 
|Shops at Johns Creek (3)                |  | 2003          |  | 2004                  |  | 15,490                  |  | 89.5              | % |  |              |  |                                                                                                                                 
|Starke                                   |  | 2000          |  | 2000                  |  | 12,739                  |  | 100.0             | % |  |              |  | CVS                                                                                                                              
|Vineyard Shopping Center (4)             |  | 2001          |  | 2002                  |  | 62,821                  |  | 94.2              | % |  | Publix        |  |                                                                                                                                 
|                                         |  |               |  |                       |  |                        
|Miami / Fort Lauderdale                  |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                                                  
|Aventura Shopping Center                 |  | 1994          |  | 1974                  |  | 102,876                 |  | 89.5              | % |  | Publix        |  | CVS                                                                                                                              
|Berkshire Commons                        |  | 1994          |  | 1992                  |  | 106,354                 |  | 100.0             | % |  | Publix        |  | Walgreens                                                                                                                        
|Five Points Plaza (4)                    |  | 2005          |  | 2001                  |  | 44,647                  |  | 100.0             | % |  | Publix        |  |                                                                                                                                 
|Garden Square                            |  | 1997          |  | 1991                  |  | 90,258                  |  | 100.0             | % |  | Publix        |  | CVS                                                                                                                              
|Pebblebrook Plaza (4)                    |  | 2000          |  | 2000                  |  | 76,767                  |  | 100.0             | % |  | Publix        |  | (Walgreens)                                                                                                                      
|Shoppes @ 104 (4)                        |  | 1998          |  | 1990                  |  | 108,192                 |  | 100.0             | % |  | Winn-Dixie    |  | Navarro Discount Pharmacies                                                                                                      
|Welleby                                  |  | 1996          |  | 1982                  |  | 109,949                 |  | 95.7              | % |  | Publix        |  | Bealls                                                                                                                           
|                                         |  |               |  |                       |  |                        
|Tampa / Orlando                          |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                                                  
|Beneva Village Shops                     |  | 1998          |  | 1987                  |  | 141,532                 |  | 100.0             | % |  | Publix        |  | Walgreens, Bealls, Harbor Freight Tools                                                                                          
|Bloomingdale                             |  | 1998          |  | 1987                  |  | 267,736                 |  | 100.0             | % |  | Publix        |  | Ace Hardware, Bealls, Wal-Mart                                                                                                   
|East Towne Shopping Center               |  | 2002          |  | 2003                  |  | 69,841                  |  | 100.0             | % |  | Publix        |  |                                                                                                                                 
|Kings Crossing Sun City (4)              |  | 1999          |  | 1999                  |  | 75,020                  |  | 98.4              | % |  | Publix        |  |                                                                                                                                 
|Lynnhaven (4)                            |  | 2001          |  | 2001                  |  | 63,871                  |  | 93.4              | % |  | Publix        |  |                                                                                                                                 
|Marketplace St Pete                      |  | 1995          |  | 1983                  |  | 90,296                  |  | 97.0              | % |  | Publix        |  | Dollar Duck                                                                                                                      
|Merchants Crossing (4)                   |  | 2006          |  | 1990                  |  | 213,739                 |  | 94.7              | % |  | Publix        |  | Bealls, Office Depot, Walgreens                                                                                                 
|Peachland Promenade (4)                  |  | 1995          |  | 1991                  |  | 82,082                  |  | 100.0             | % |  | Publix        |  |                                                                                                                                 
|Regency Square Brandon                   |  | 1993          |  | 1986                  |  | 349,848                 |  | 97.8              | % |  |              |  | AMC Theater, Dollar Tree, Marshalls, Michaels, S & K Famous Brands, Shoe Carnival, Staples, TJ Maxx, Petco, (Best Buy), (MacDill)
|Regency Village (4)                      |  | 2000          |  | 2002                  |  | 83,170                  |  | 96.2              | % |  | Publix        |  | (Walgreens)                                                                                                                      
|Town Square                              |  | 1997          |  | 1999                  |  | 44,380                  |  | 100.0             | % |  |              |  | Petco, Pier 1 Imports                                                                                                            
|Village Center 6                         |  | 1995          |  | 1993                  |  | 181,110                 |  | 96.5              | % |  | Publix        |  | Walgreens, Stein Mart                                                                                                            
|Willa Springs Shopping Center            |  | 2000          |  | 2000                  |  | 89,930                  |  | 98.9              | % |  | Publix        |  |                                                                                                                                 



17



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##### Table of Contents

|                                        |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                       
|--------------------------------------- |  | ------------- |  | --------------------- |  | ----------------------- |  | ----------------- | - |  | ------------- |  | ------------------------------------------------------------------------------------------------------
|Property Name                           |  | Year Acquired |  | Year Con-structed (1) |  | GrossLeasableArea (GLA) |  | PercentLeased (2) |   |  | GroceryAnchor |  | Drug Store & Other Anchors > 10,000 Sq Ft                                                             
|FLORIDA (continued)                     |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                       
|                                        |  |               |  |                       |  |                        
|West Palm Beach / Treasure Cove         |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                       
|Boynton Lakes Plaza                     |  | 1997          |  | 1993                  |  | 124,924                 |  | 99.4              | % |  | Winn-Dixie    |  | World Gym                                                                                             
|Chasewood Plaza                         |  | 1993          |  | 1986                  |  | 155,603                 |  | 99.4              | % |  | Publix        |  | Bealls, Books-A-Million                                                                               
|East Port Plaza                         |  | 1997          |  | 1991                  |  | 235,842                 |  | 61.8              | % |  | Publix        |  | Walgreens                                                                                             
|Martin Downs Village Center             |  | 1993          |  | 1985                  |  | 121,946                 |  | 95.8              | % |  |              |  | Bealls, Coastal Care                                                                                  
|Martin Downs Village Shoppes            |  | 1993          |  | 1998                  |  | 48,907                  |  | 93.9              | % |  |              |  | Walgreens                                                                                             
|Shops of San Marco (4)                  |  | 2002          |  | 2002                  |  | 96,408                  |  | 97.1              | % |  | Publix        |  | Walgreens                                                                                             
|Town Center at Martin Downs             |  | 1996          |  | 1996                  |  | 64,546                  |  | 100.0             | % |  | Publix        |  |                                                                                                      
|Village Commons Shopping Center (4)     |  | 2005          |  | 1986                  |  | 169,053                 |  | 98.3              | % |  | Publix        |  | CVS                                                                                                   
|Wellington Town Square                  |  | 1996          |  | 1982                  |  | 107,325                 |  | 98.8              | % |  | Publix        |  | CVS                                                                                                   
|                                        |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                       
|Subtotal/Weighted Average (FL)          |  |               |  |                       |  | 6,175,929               |  | 93.1              | % |  |               |  |                                                                                                       
|                                        |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                       
|                                        |  |               |  |                       |  |                        
|TEXAS                                   |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                       
|                                        |  |               |  |                       |  |                        
|Austin                                  |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                       
|Hancock                                 |  | 1999          |  | 1998                  |  | 410,438                 |  | 97.9              | % |  | H.E.B.        |  | Sears, Old Navy, Petco, 24 Hour Fitness                                                               
|Market at Round Rock                    |  | 1999          |  | 1987                  |  | 123,046                 |  | 93.2              | % |  | Albertsons    |  |                                                                                                      
|North Hills                             |  | 1999          |  | 1995                  |  | 144,019                 |  | 96.9              | % |  | H.E.B.        |  |                                                                                                      
|                                        |  |               |  |                       |  |                        
|Dallas / Ft. Worth                      |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                       
|Bethany Park Place                      |  | 1998          |  | 1998                  |  | 74,066                  |  | 98.1              | % |  | Kroger        |  |                                                                                                      
|Cooper Street                           |  | 1999          |  | 1992                  |  | 133,196                 |  | 87.5              | % |  |              |  | (Home Depot), Office Max                                                                              
|Hickory Creek Plaza (3)                 |  | 2006          |  | 2006                  |  | 27,786                  |  |                  |   |  | (Kroger)      |  | (Kroger)                                                                                              
|Highland Village (3)                    |  | 2005          |  | 2005                  |  | 355,906                 |  | 52.8              | % |  |              |  | AMC Theater, Barnes & Noble                                                                           
|Hillcrest Village                       |  | 1999          |  | 1991                  |  | 14,530                  |  | 79.6              | % |  |              |  |                                                                                                      
|Keller Town Center                      |  | 1999          |  | 1999                  |  | 114,937                 |  | 96.3              | % |  | Tom Thumb     |  |                                                                                                      
|Lebanon/Legacy Center                   |  | 2000          |  | 2002                  |  | 56,674                  |  | 100.0             | % |  | (Albertsons)  |  |                                                                                                      
|Main Street Center (4)                  |  | 2002          |  | 2002                  |  | 42,754                  |  | 87.4              | % |  | (Albertsons)  |  |                                                                                                      
|Market at Preston Forest                |  | 1999          |  | 1990                  |  | 91,624                  |  | 96.9              | % |  | Tom Thumb     |  | Petco                                                                                                 
|Mockingbird Common                      |  | 1999          |  | 1987                  |  | 120,321                 |  | 94.3              | % |  | Tom Thumb     |  |                                                                                                      
|Preston Park                            |  | 1999          |  | 1985                  |  | 273,396                 |  | 78.1              | % |  | Tom Thumb     |  | Gap, Williams Sonoma                                                                                  
|Prestonbrook                            |  | 1998          |  | 1998                  |  | 91,537                  |  | 95.4              | % |  | Kroger        |  |                                                                                                      
|Prestonwood Park                        |  | 1999          |  | 1999                  |  | 101,167                 |  | 65.3              | % |  | (Albertsons)  |  |                                                                                                      
|Rockwall Town Center (3)                |  | 2002          |  | 2004                  |  | 46,409                  |  | 63.2              | % |  | (Kroger)      |  | (Walgreens)                                                                                           
|Shiloh Springs                          |  | 1998          |  | 1998                  |  | 110,040                 |  | 96.1              | % |  | Kroger        |  |                                                                                                      
|Signature Plaza                         |  | 2003          |  | 2004                  |  | 32,415                  |  | 79.4              | % |  | (Kroger)      |  |                                                                                                      
|Trophy Club                             |  | 1999          |  | 1999                  |  | 106,507                 |  | 83.4              | % |  | Tom Thumb     |  | (Walgreens)                                                                                           
|Valley Ranch Centre                     |  | 1999          |  | 1997                  |  | 117,187                 |  | 89.0              | % |  | Tom Thumb     |  |                                                                                                      
|                                        |  |               |  |                       |  |                        
|Houston                                 |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                       
|Alden Bridge                            |  | 2002          |  | 1998                  |  | 138,953                 |  | 96.8              | % |  | Kroger        |  | Walgreens                                                                                             
|Atascocita Center                       |  | 2002          |  | 2003                  |  | 97,240                  |  | 83.5              | % |  | Kroger        |  |                                                                                                      
|Cochrans Crossing                      |  | 2002          |  | 1994                  |  | 138,192                 |  | 97.4              | % |  | Kroger        |  | CVS                                                                                                   
|First Colony Marketplace (4)            |  | 2005          |  | 1993                  |  | 111,675                 |  | 97.3              | % |  | RandallsFood  |  | Sears                                                                                                 
|Fort Bend Center                        |  | 2000          |  | 2000                  |  | 30,164                  |  | 79.0              | % |  | (Kroger)      |  |                                                                                                      
|Indian Springs Center (4)               |  | 2002          |  | 2003                  |  | 136,625                 |  | 100.0             | % |  | H.E.B.        |  |                                                                                                      
|Kleinwood Center (4)                    |  | 2002          |  | 2003                  |  | 155,463                 |  | 89.9              | % |  | H.E.B.        |  | (Walgreens)                                                                                           
|Kleinwood Center II                     |  | 2005          |  | 2005                  |  | 45,001                  |  | 100.0             | % |  |              |  | LA Fitness                                                                                            
|Memorial Collection Shopping Center (4) |  | 2005          |  | 1974                  |  | 103,330                 |  | 100.0             | % |  | RandallsFood  |  | Walgreens                                                                                             
|Panther Creek                           |  | 2002          |  | 1994                  |  | 165,560                 |  | 100.0             | % |  | RandallsFood  |  | CVS, Sears Paint & Hardware                                                                           
|South Shore (3)                         |  | 2005          |  | 2005                  |  | 27,922                  |  | 34.0              | % |  | (Kroger)      |  |                                                                                                      
|Spring West Center (3)                  |  | 2003          |  | 2004                  |  | 144,060                 |  | 79.7              | % |  | H.E.B.        |  |                                                                                                      
|Sterling Ridge                          |  | 2002          |  | 2000                  |  | 128,643                 |  | 100.0             | % |  | Kroger        |  | CVS                                                                                                   
|Sweetwater Plaza (4)                    |  | 2001          |  | 2000                  |  | 134,045                 |  | 100.0             | % |  | Kroger        |  | Walgreens                                                                                             
|Weslayan Plaza East (4)                 |  | 2005          |  | 1969                  |  | 169,693                 |  | 100.0             | % |  |              |  | Berings, Ross Dress for Less, Michaels, Linens-N-Things, Berings Warehouse, Chuck E Cheese, Next Level
|Weslayan Plaza West (4)                 |  | 2005          |  | 1969                  |  | 185,732                 |  | 97.3              | % |  | RandallsFood  |  | Walgreens, Petco, Jo Anns                                                                            
|West Village (3)                        |  | 2006          |  | 2006                  |  | 168,182                 |  | 13.1              | % |  |              |  | (Target)                                                                                              
|Woodway Collection (4)                  |  | 2005          |  | 1974                  |  | 111,005                 |  | 98.8              | % |  | RandallsFood  |  | Eckerd                                                                                                
|                                        |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                       
|Subtotal/Weighted Average (TX)          |  |               |  |                       |  | 4,779,440               |  | 86.1              | % |  |               |  |                                                                                                       
|                                        |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                                       



18



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##### Table of Contents

|                                            |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                       
|------------------------------------------- |  | ------------- |  | --------------------- |  | ----------------------- |  | ----------------- | - |  | --------------------- |  | --------------------------------------------------------------------------------------
|Property Name                               |  | Year Acquired |  | Year Con-structed (1) |  | GrossLeasableArea (GLA) |  | PercentLeased (2) |   |  | GroceryAnchor         |  | Drug Store & Other Anchors > 10,000 Sq Ft                                             
|VIRGINIA                                    |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                       
|                                            |  |               |  |                       |  |                        
|Richmond                                    |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                       
|Gayton Crossing (4)                         |  | 2005          |  | 1983                  |  | 156,916                 |  | 91.8              | % |  | Ukrops               |  |                                                                                      
|Glen Lea Centre (4)                         |  | 2005          |  | 1969                  |  | 78,493                  |  | 54.3              | % |  |                      |  | Eckerd                                                                                
|Hanover Village (4)                         |  | 2005          |  | 1971                  |  | 96,146                  |  | 88.0              | % |  |                      |  | Rite Aid                                                                              
|Laburnum Park Shopping Center (4)           |  | 2005          |  | 1977                  |  | 64,992                  |  | 94.1              | % |  | (Ukrops)             |  | Rite Aid                                                                              
|Village Shopping Center (4)                 |  | 2005          |  | 1948                  |  | 111,177                 |  | 96.4              | % |  | Ukrops               |  | CVS                                                                                   
|                                            |  |               |  |                       |  |                        
|Other Virginia                              |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                       
|601 King Street (4)                         |  | 2005          |  | 1980                  |  | 8,349                   |  | 97.8              | % |  |                      |  |                                                                                      
|Ashburn Farm Market Center                  |  | 2000          |  | 2000                  |  | 91,905                  |  | 100.0             | % |  | GiantFood             |  |                                                                                      
|Ashburn Farm Village Center (4)             |  | 2005          |  | 1996                  |  | 88,897                  |  | 100.0             | % |  | ShoppersFoodWarehouse |  |                                                                                      
|Braemar Shopping Center (4)                 |  | 2004          |  | 2004                  |  | 96,439                  |  | 100.0             | % |  | Safeway               |  |                                                                                      
|Brafferton Center (4)                       |  | 2005          |  | 1997                  |  | 94,731                  |  | 97.9              | % |  |                      |  | Sport and Health Clubs                                                                
|Centre Ridge Marketplace (4)                |  | 2005          |  | 1996                  |  | 104,154                 |  | 98.8              | % |  | ShoppersFoodWarehouse |  | Sears                                                                                 
|Cheshire Station                            |  | 2000          |  | 2000                  |  | 97,156                  |  | 100.0             | % |  | Safeway               |  | Petco                                                                                 
|Culpeper Colonnade (3)                      |  | 2006          |  | 2006                  |  | 97,366                  |  | 42.3              | % |  |                      |  | PetSmart, Staples, (Target)                                                           
|Festival at Manchester Lakes (4)            |  | 2005          |  | 1990                  |  | 165,130                 |  | 97.4              | % |  | ShoppersFoodWarehouse |  |                                                                                      
|Fortuna                                     |  | 2004          |  | 2004                  |  | 90,131                  |  | 100.0             | % |  | ShoppersFoodWarehouse |  | (Target), Rite Aid                                                                    
|Fox Mill Shopping Center (4)                |  | 2005          |  | 1977                  |  | 103,269                 |  | 100.0             | % |  | GiantFood             |  |                                                                                      
|Greenbriar Town Center (4)                  |  | 2005          |  | 1972                  |  | 345,935                 |  | 100.0             | % |  | GiantFood             |  | CVS, HMY Roomstore, Total Beverage, Ross Dress for Less, Marshalls, Petco             
|Kamp Washington Shopping Center (4)         |  | 2005          |  | 1960                  |  | 71,825                  |  | 100.0             | % |  |                      |  | Borders Books                                                                         
|Kings Park Shopping Center (4)              |  | 2005          |  | 1966                  |  | 74,703                  |  | 100.0             | % |  | GiantFood             |  | CVS                                                                                   
|Lorton Station Marketplace (4)              |  | 2006          |  | 2005                  |  | 132,445                 |  | 100.0             | % |  | ShoppersFoodWarehouse |  | Advanced Design Group                                                                 
|Lorton Town Center (4)                      |  | 2006          |  | 2005                  |  | 39,177                  |  | 100.0             | % |  |                      |  |                                                                                      
|Lorton Town Center Phase II (3)(4)          |  | 2006          |  | 2005                  |  | 43,000                  |  |                  |   |  |                      |  |                                                                                      
|Market at Opitz Crossing                    |  | 2003          |  | 2003                  |  | 149,810                 |  | 100.0             | % |  | Safeway               |  | Boat U.S., USA Discounters                                                            
|Saratoga Shopping Center (4)                |  | 2005          |  | 1977                  |  | 101,587                 |  | 100.0             | % |  | GiantFood             |  |                                                                                      
|Shops at County Center (3)                  |  | 2005          |  | 2005                  |  | 109,589                 |  | 68.4              | % |  | HarrisTeeter          |  |                                                                                      
|Signal Hill                                 |  | 2003          |  | 2004                  |  | 95,172                  |  | 96.2              | % |  | ShoppersFoodWarehouse |  |                                                                                      
|Somerset Crossing (4)                       |  | 2002          |  | 2002                  |  | 104,128                 |  | 100.0             | % |  | ShoppersFoodWarehouse |  |                                                                                      
|Town Center at Sterling Shopping Center (4) |  | 2005          |  | 1980                  |  | 190,069                 |  | 100.0             | % |  | GiantFood             |  | Washington Sports Club, Party Depot                                                   
|Village Center at Dulles (4)                |  | 2002          |  | 1991                  |  | 298,281                 |  | 100.0             | % |  | ShoppersFoodWarehouse |  | CVS, Advance Auto Parts, Chuck E. Cheese, Golds Gym, Petco, Staples, The Thrift Store
|Willston Centre I (4)                       |  | 2005          |  | 1952                  |  | 105,376                 |  | 99.5              | % |  |                      |  | CVS, Balleys Health Care                                                              
|Willston Centre II (4)                      |  | 2005          |  | 1986                  |  | 127,449                 |  | 100.0             | % |  | Safeway               |  |                                                                                      
|Brookville Plaza (4)                        |  | 1998          |  | 1991                  |  | 63,665                  |  | 100.0             | % |  | Kroger                |  |                                                                                      
|Hollymead Town Center                       |  | 2003          |  | 2004                  |  | 153,742                 |  | 96.3              | % |  | HarrisTeeter          |  | (Target), Petsmart                                                                    
|Statler Square Phase I                      |  | 1998          |  | 1996                  |  | 133,660                 |  | 91.4              | % |  | Kroger                |  | Staples                                                                               
|                                            |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                       
|Subtotal/Weighted Average (VA)              |  |               |  |                       |  | 3,884,864               |  | 94.1              | % |  |                       |  |                                                                                       
|                                            |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                       



19



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##### Table of Contents

|                               |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                   
|------------------------------ |  | ------------- |  | --------------------- |  | ----------------------- |  | ----------------- | - |  | ------------- |  | ----------------------------------------------------------------------------------
|Property Name                  |  | Year Acquired |  | Year Con-structed (1) |  | GrossLeasableArea (GLA) |  | PercentLeased (2) |   |  | GroceryAnchor |  | Drug Store & Other Anchors > 10,000 Sq Ft                                         
|GEORGIA                        |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                   
|                               |  |               |  |                       |  |                        
|Atlanta                        |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                   
|Ashford Place                  |  | 1997          |  | 1993                  |  | 53,450                  |  | 100.0             | % |  |              |  |                                                                                  
|Bethesda Walk (4)              |  | 2004          |  | 2003                  |  | 68,271                  |  | 90.6              | % |  | Publix        |  |                                                                                  
|Briarcliff La Vista            |  | 1997          |  | 1962                  |  | 39,203                  |  | 100.0             | % |  |              |  | Michaels                                                                          
|Briarcliff Village             |  | 1997          |  | 1990                  |  | 187,156                 |  | 89.6              | % |  | Publix        |  | La-Z-Boy Furniture Galleries, Office Depot, Party City, Petco, TJ Maxx            
|Brookwood Village (4)          |  | 2004          |  | 2000                  |  | 28,774                  |  | 75.9              | % |  |              |  | CVS                                                                               
|Buckhead Court                 |  | 1997          |  | 1984                  |  | 58,130                  |  | 81.6              | % |  |              |  |                                                                                  
|Buckhead Crossing (4)          |  | 2004          |  | 1989                  |  | 221,874                 |  | 97.8              | % |  |              |  | Office Depot, HomeGoods, Marshalls, Michaels, Hancock Fabrics, Ross Dress for Less
|Cambridge Square Shopping Ctr  |  | 1996          |  | 1979                  |  | 71,474                  |  | 97.0              | % |  | Kroger        |  |                                                                                  
|Chapel Hill (3)                |  | 2005          |  | 2005                  |  | 55,400                  |  | 6.0               | % |  |              |  | (Kohls)                                                                          
|Cobb Center (4)                |  | 2004          |  | 1996                  |  | 69,547                  |  | 97.8              | % |  | Publix        |  | (Richs Department Store)                                                         
|Coweta Crossing (4)            |  | 2004          |  | 1994                  |  | 68,489                  |  | 100.0             | % |  | Publix        |  |                                                                                  
|Cromwell Square                |  | 1997          |  | 1990                  |  | 70,283                  |  | 91.5              | % |  |              |  | CVS, Hancock Fabrics, Havertys-Antiques & Interiors of Sandy Springs             
|Delk Spectrum                  |  | 1998          |  | 1991                  |  | 100,539                 |  | 93.4              | % |  | Publix        |  |                                                                                  
|Dunwoody Hall                  |  | 1997          |  | 1986                  |  | 89,351                  |  | 100.0             | % |  | Publix        |  | Eckerd                                                                            
|Dunwoody Village               |  | 1997          |  | 1975                  |  | 120,598                 |  | 93.7              | % |  | Fresh Market  |  | Walgreens, Dunwoody Prep                                                          
|Howell Mill Village (4)        |  | 2004          |  | 1984                  |  | 97,990                  |  | 96.0              | % |  | Publix        |  | Eckerd                                                                            
|Lindbergh Crossing (4)         |  | 2004          |  | 1998                  |  | 27,059                  |  | 100.0             | % |  |              |  | CVS                                                                               
|Loehmanns Plaza Georgia        |  | 1997          |  | 1986                  |  | 137,601                 |  | 83.8              | % |  |              |  | Loehmanns, Dance 101                                                             
|Northlake Promenade (4)        |  | 2004          |  | 1986                  |  | 25,394                  |  | 81.1              | % |  |              |  |                                                                                  
|Orchard Square (4)             |  | 1995          |  | 1987                  |  | 93,222                  |  | 97.0              | % |  | Publix        |  | Harbor Freight Tools, Remax Elite                                                 
|Paces Ferry Plaza              |  | 1997          |  | 1987                  |  | 61,696                  |  | 93.5              | % |  |              |  | Harry Norman Realtors                                                             
|Peachtree Parkway Plaza (4)    |  | 2004          |  | 2001                  |  | 95,509                  |  | 92.4              | % |  |              |  | Goodwill                                                                          
|Powers Ferry Kroger (4)        |  | 2004          |  | 1983                  |  | 45,528                  |  | 100.0             | % |  | Kroger        |  |                                                                                  
|Powers Ferry Square            |  | 1997          |  | 1987                  |  | 95,704                  |  | 99.3              | % |  |              |  | CVS, Pearl Arts & Crafts                                                          
|Powers Ferry Village           |  | 1997          |  | 1994                  |  | 78,996                  |  | 99.9              | % |  | Publix        |  | CVS, Mardi Gras                                                                   
|Rivermont Station              |  | 1997          |  | 1996                  |  | 90,267                  |  | 95.9              | % |  | Kroger        |  |                                                                                  
|Rose Creek (4)                 |  | 2004          |  | 1993                  |  | 69,790                  |  | 93.0              | % |  | Publix        |  |                                                                                  
|Roswell Crossing (4)           |  | 2004          |  | 1999                  |  | 201,979                 |  | 95.9              | % |  | Trader Joes  |  | PetsMart, Office Max, Pike Nursery, Party City, Walgreens, LA Fitness             
|Russell Ridge                  |  | 1994          |  | 1995                  |  | 98,559                  |  | 90.4              | % |  | Kroger        |  |                                                                                  
|Thomas Crossroads (4)          |  | 2004          |  | 1995                  |  | 84,928                  |  | 96.3              | % |  | Kroger        |  |                                                                                  
|Trowbridge Crossing (4)        |  | 2004          |  | 1998                  |  | 62,558                  |  | 100.0             | % |  | Publix        |  |                                                                                  
|Woodstock Crossing (4)         |  | 2004          |  | 1994                  |  | 66,122                  |  | 96.2              | % |  | Kroger        |  |                                                                                  
|                               |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                   
|Subtotal/Weighted Average (GA) |  |               |  |                       |  | 2,735,441               |  | 92.6              | % |  |               |  |                                                                                   
|                               |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                   
|                               |  |               |  |                       |  |                        
|COLORADO                       |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                   
|                               |  |               |  |                       |  |                        
|Colorado Springs               |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                   
|Cheyenne Meadows (4)           |  | 1998          |  | 1998                  |  | 89,893                  |  | 100.0             | % |  | King Soopers  |  |                                                                                  
|Falcon Marketplace (3)         |  | 2005          |  | 2005                  |  | 22,920                  |  | 12.2              | % |  | (Wal-Mart)    |  |                                                                                  
|Marketplace at Briargate (3)   |  | 2006          |  | 2006                  |  | 29,075                  |  | 13.3              | % |  | King Soopers  |  |                                                                                  
|Monument Jackson Creek         |  | 1998          |  | 1999                  |  | 85,263                  |  | 100.0             | % |  | King Soopers  |  |                                                                                  
|Woodmen Plaza                  |  | 1998          |  | 1998                  |  | 116,233                 |  | 95.0              | % |  | King Soopers  |  |                                                                                  
|                               |  |               |  |                       |  |                        
|Denver                         |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                   
|Applewood Shopping Center (4)  |  | 2005          |  | 1956                  |  | 375,622                 |  | 93.4              | % |  | King Soopers  |  | Applejack Liquors, Petsmart, Wells Fargo Bank, Wal-Mart                           
|Arapahoe Village (4)           |  | 2005          |  | 1957                  |  | 159,237                 |  | 89.4              | % |  | Safeway       |  | Jo-Ann Fabrics, Petco, Pier 1 Imports                                             
|Belleview Square               |  | 2004          |  | 1978                  |  | 117,085                 |  | 100.0             | % |  | King Soopers  |  |                                                                                  
|Boulevard Center               |  | 1999          |  | 1986                  |  | 88,512                  |  | 96.3              | % |  | (Safeway)     |  | One Hour Optical                                                                  
|Buckley Square                 |  | 1999          |  | 1978                  |  | 116,146                 |  | 96.1              | % |  | King Soopers  |  | True Value Hardware                                                               
|Centerplace of Greeley (4)     |  | 2002          |  | 2003                  |  | 148,575                 |  | 96.7              | % |  | Safeway       |  | (Target), Ross Dress For Less, Famous Footwear                                    
|Cherrywood Square (4)          |  | 2005          |  | 1978                  |  | 86,161                  |  | 95.8              | % |  | King Soopers  |  |                                                                                  
|Crossroads Commons (4)         |  | 2001          |  | 1986                  |  | 144,288                 |  | 91.3              | % |  | Whole Foods   |  | Barnes & Noble, Mann Theatres, Bicycle Village                                    
|Fort Collins Center            |  | 2005          |  | 2005                  |  | 99,359                  |  | 100.0             | % |  |              |  | JC Penney                                                                         
|Hilltop Village (4)            |  | 2002          |  | 2003                  |  | 100,028                 |  | 97.3              | % |  | King Soopers  |  |                                                                                  
|Leetsdale Marketplace          |  | 1999          |  | 1993                  |  | 119,916                 |  | 87.8              | % |  | Safeway       |  |                                                                                  



20



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##### Table of Contents

|                                     |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                      
|------------------------------------ |  | ------------- |  | --------------------- |  | ----------------------- |  | ----------------- | - |  | ------------- |  | -------------------------------------------------------------------------------------
|Property Name                        |  | Year Acquired |  | Year Con-structed (1) |  | GrossLeasableArea (GLA) |  | PercentLeased (2) |   |  | GroceryAnchor |  | Drug Store & Other Anchors > 10,000 Sq Ft                                            
|COLORADO (continued)                 |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                      
|                                     |  |               |  |                       |  |                        
|Denver                               |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                      
|Littleton Square                     |  | 1999          |  | 1997                  |  | 94,257                  |  | 97.9              | % |  | King Soopers  |  | Walgreens                                                                            
|Lloyd King Center                    |  | 1998          |  | 1998                  |  | 83,326                  |  | 100.0             | % |  | King Soopers  |  |                                                                                     
|Loveland Shopping Center (3)         |  | 2005          |  | 2005                  |  | 93,142                  |  | 44.7              | % |  |              |  | Murdochs Ranch                                                                      
|Ralston Square Shopping Center (4)   |  | 2005          |  | 1977                  |  | 82,750                  |  | 100.0             | % |  | King Soopers  |  |                                                                                     
|Stroh Ranch                          |  | 1998          |  | 1998                  |  | 93,436                  |  | 100.0             | % |  | King Soopers  |  |                                                                                     
|                                     |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                      
|Subtotal/Weighted Average (CO)       |  |               |  |                       |  | 2,345,224               |  | 91.8              | % |  |               |  |                                                                                      
|                                     |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                      
|                                     |  |               |  |                       |  |                        
|OHIO                                 |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                      
|                                     |  |               |  |                       |  |                        
|Cincinnati                           |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                      
|Beckett Commons                      |  | 1998          |  | 1995                  |  | 121,498                 |  | 100.0             | % |  | Kroger        |  | Stein Mart                                                                           
|Cherry Grove                         |  | 1998          |  | 1997                  |  | 195,497                 |  | 90.0              | % |  | Kroger        |  | Hancock Fabrics, Shoe Carnival, TJ Maxx                                              
|Hyde Park                            |  | 1997          |  | 1995                  |  | 397,893                 |  | 94.6              | % |  | Kroger,Biggs  |  | Walgreens, Jo-Ann Fabrics, Famous Footwear, Michaels, Staples                        
|Indian Springs Market Center (4)     |  | 2005          |  | 2005                  |  | 146,458                 |  | 100.0             | % |  |              |  | Kohls, Office Depot                                                                 
|Red Bank Village (3)                 |  | 2006          |  | 2006                  |  | 233,084                 |  | 87.4              | % |  |              |  |                                                                                     
|Regency Commons (3)                  |  | 2004          |  | 2004                  |  | 30,770                  |  | 62.9              | % |  |              |  |                                                                                     
|Regency Milford Center (4)           |  | 2001          |  | 2001                  |  | 108,923                 |  | 97.6              | % |  | Kroger        |  | (CVS)                                                                                
|Shoppes at Mason                     |  | 1998          |  | 1997                  |  | 80,800                  |  | 96.5              | % |  | Kroger        |  |                                                                                     
|Westchester Plaza                    |  | 1998          |  | 1988                  |  | 88,182                  |  | 98.4              | % |  | Kroger        |  |                                                                                     
|                                     |  |               |  |                       |  |                        
|Columbus                             |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                      
|East Pointe                          |  | 1998          |  | 1993                  |  | 86,503                  |  | 100.0             | % |  | Kroger        |  |                                                                                     
|Kingsdale Shopping Center            |  | 1997          |  | 1999                  |  | 266,878                 |  | 45.6              | % |  | Giant Eagle   |  |                                                                                     
|Kroger New Albany Center             |  | 1999          |  | 1999                  |  | 91,722                  |  | 97.8              | % |  | Kroger        |  |                                                                                     
|Maxtown Road (Northgate)             |  | 1998          |  | 1996                  |  | 85,100                  |  | 96.7              | % |  | Kroger        |  | (Home Depot)                                                                         
|Park Place Shopping Center           |  | 1998          |  | 1988                  |  | 106,833                 |  | 53.8              | % |  |              |  | Big Lots                                                                             
|Windmiller Plaza Phase I             |  | 1998          |  | 1997                  |  | 141,110                 |  | 100.0             | % |  | Kroger        |  | Sears Orchard                                                                        
|                                     |  |               |  |                       |  |                        
|Other Ohio                           |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                      
|Wadsworth Crossing (3)               |  | 2005          |  | 2005                  |  | 111,264                 |  | 55.6              | % |  |              |  | Bed, Bath & Beyond, TJ Maxx, Staples, Petco, (Kohls), (Lowes), (Target)            
|                                     |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                      
|Subtotal/Weighted Average (OH)       |  |               |  |                       |  | 2,292,515               |  | 85.3              | % |  |               |  |                                                                                      
|                                     |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                      
|                                     |  |               |  |                       |  |                        
|ILLINOIS                             |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                      
|                                     |  |               |  |                       |  |                        
|Chicago                              |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                      
|Baker Hill Center (4)                |  | 2004          |  | 1998                  |  | 135,285                 |  | 89.2              | % |  | Dominicks    |  |                                                                                     
|Brentwood Commons (4)                |  | 2005          |  | 1962                  |  | 125,585                 |  | 88.8              | % |  | Dominicks    |  | Dollar Tree                                                                          
|Civic Center Plaza (4)               |  | 2005          |  | 1989                  |  | 265,024                 |  | 100.0             | % |  | Dominicks(5) |  | Petsmart, Murrays Discount Auto, Home Depot                                         
|Deer Grove Center (4)                |  | 2004          |  | 1996                  |  | 239,356                 |  | 97.2              | % |  | Dominicks    |  | (Target), Linens-N-Things, Michaels, Petco, Factory Card Outlet, Dress Barn, Staples
|Frankfort Crossing Shpg Ctr          |  | 2003          |  | 1992                  |  | 114,534                 |  | 92.8              | % |  | Jewel /OSCO   |  | Ace Hardware                                                                         
|Geneva Crossing (4)                  |  | 2004          |  | 1997                  |  | 123,182                 |  | 100.0             | % |  | Dominicks    |  | Johns Christian Stores                                                              
|Heritage PlazaChicago (4)           |  | 2005          |  | 2005                  |  | 128,871                 |  | 94.8              | % |  | Jewel /OSCO   |  | Ace Hardware                                                                         
|Hinsdale                             |  | 1998          |  | 1986                  |  | 178,975                 |  | 99.4              | % |  | Dominicks    |  | Ace Hardware, Murrays Party Time Supplies                                           
|McHenry Commons Shopping Center (4)  |  | 2005          |  | 1988                  |  | 100,526                 |  | 94.1              | % |  | Dominicks    |  |                                                                                     
|Oaks Shopping Center (4)             |  | 2005          |  | 1983                  |  | 135,007                 |  | 90.1              | % |  | Dominicks    |  |                                                                                     
|Riverside Sq & Rivers Edge (4)      |  | 2005          |  | 1986                  |  | 169,436                 |  | 100.0             | % |  | Dominicks    |  | Ace Hardware, Party City                                                             
|Riverview Plaza (4)                  |  | 2005          |  | 1981                  |  | 139,256                 |  | 97.8              | % |  | Dominicks    |  | Walgreens, Toys R Us                                                               
|Shorewood Crossing (4)               |  | 2004          |  | 2001                  |  | 87,705                  |  | 94.8              | % |  | Dominicks    |  |                                                                                     
|Stearns Crossing (4)                 |  | 2004          |  | 1999                  |  | 96,613                  |  | 100.0             | % |  | Dominicks    |  |                                                                                     
|Stonebrook Plaza Shopping Center (4) |  | 2005          |  | 1984                  |  | 95,825                  |  | 100.0             | % |  | Dominicks    |  |                                                                                     
|Westbrook Commons                    |  | 2001          |  | 1984                  |  | 121,502                 |  | 85.7              | % |  | Dominicks    |  |                                                                                     
|                                     |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                      
|Subtotal/Weighted Average (IL)       |  |               |  |                       |  | 2,256,682               |  | 95.8              | % |  |               |  |                                                                                      
|                                     |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                      



21



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##### Table of Contents

|                               |  |               |  |                       |  |                         |  |                   |   |  |                          |  |                                                                                                                                                                                                                                               
|------------------------------ |  | ------------- |  | --------------------- |  | ----------------------- |  | ----------------- | - |  | ------------------------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Property Name                  |  | Year Acquired |  | Year Con-structed (1) |  | GrossLeasableArea (GLA) |  | PercentLeased (2) |   |  | GroceryAnchor            |  | Drug Store & Other Anchors > 10,000 Sq Ft                                                                                                                                                                                                     
|NORTH CAROLINA                 |  |               |  |                       |  |                         |  |                   |   |  |                          |  |                                                                                                                                                                                                                                               
|                               |  |               |  |                       |  |                        
|Charlotte                      |  |               |  |                       |  |                         |  |                   |   |  |                          |  |                                                                                                                                                                                                                                               
|Carmel Commons                 |  | 1997          |  | 1979                  |  | 132,651                 |  | 96.0              | % |  | FreshMarket              |  | Chuck E. Cheese, Party City, Eckerd                                                                                                                                                                                                           
|Jetton Village (4)             |  | 2005          |  | 1998                  |  | 70,097                  |  | 88.5              | % |  | HarrisTeeter             |  |                                                                                                                                                                                                                                              
|                               |  |               |  |                       |  |                        
|Greensboro                     |  |               |  |                       |  |                         |  |                   |   |  |                          |  |                                                                                                                                                                                                                                               
|Kernersville Plaza             |  | 1998          |  | 1997                  |  | 72,590                  |  | 96.7              | % |  | HarrisTeeter             |  |                                                                                                                                                                                                                                              
|                               |  |               |  |                       |  |                        
|Raleigh / Durham               |  |               |  |                       |  |                         |  |                   |   |  |                          |  |                                                                                                                                                                                                                                               
|Bent Tree Plaza (4)            |  | 1998          |  | 1994                  |  | 79,503                  |  | 98.5              | % |  | Kroger                   |  |                                                                                                                                                                                                                                              
|Cameron Village (4)            |  | 2004          |  | 1949                  |  | 635,918                 |  | 88.4              | % |  | HarrisTeeter,FreshMarket |  | Eckerd, Talbots, Wake County Public Library, Great Outdoor Provision Co., Blockbuster Video, York Properties, Carolina Antique Mall, The Junior League of Raleigh, K&W Cafeteria,
Johnson-Lambe Sporting Goods, Home Economics, Pier 1 Imports
|Fuquay Crossing (4)            |  | 2004          |  | 2002                  |  | 124,774                 |  | 97.1              | % |  | Kroger                   |  | Golds Gym, Dollar Tree                                                                                                                                                                                                                       
|Garner                         |  | 1998          |  | 1998                  |  | 221,776                 |  | 98.3              | % |  | Kroger                   |  | Office Max, Petsmart, Shoe Carnival, (Target), United Artist Theater, (Home Depot)                                                                                                                                                            
|Glenwood Village               |  | 1997          |  | 1983                  |  | 42,864                  |  | 90.5              | % |  | HarrisTeeter             |  |                                                                                                                                                                                                                                              
|Greystone Village (4)          |  | 2004          |  | 1986                  |  | 85,665                  |  | 96.2              | % |  | Food Lion                |  | Eckerd                                                                                                                                                                                                                                        
|Lake Pine Plaza                |  | 1998          |  | 1997                  |  | 87,691                  |  | 96.8              | % |  | Kroger                   |  |                                                                                                                                                                                                                                              
|Maynard Crossing               |  | 1998          |  | 1997                  |  | 122,782                 |  | 100.0             | % |  | Kroger                   |  |                                                                                                                                                                                                                                              
|Middle Creek Commons (3)       |  | 2006          |  | 2006                  |  | 74,098                  |  | 66.8              | % |  | LowesFoods               |  |                                                                                                                                                                                                                                              
|Shoppes of Kildaire (4)        |  | 2005          |  | 1986                  |  | 148,204                 |  | 85.2              | % |  | TraderJoes              |  | Athletic Clubs Inc, Home Comfort Furniture, Golds Gym, Staples                                                                                                                                                                               
|Southpoint Crossing            |  | 1998          |  | 1998                  |  | 103,128                 |  | 98.6              | % |  | Kroger                   |  |                                                                                                                                                                                                                                              
|Sutton Square (4)              |  | 2006          |  | 1985                  |  | 101,846                 |  | 89.2              | % |  | HarrisTeeter             |  | Eckerd                                                                                                                                                                                                                                        
|Woodcroft Shopping Center      |  | 1996          |  | 1984                  |  | 89,833                  |  | 100.0             | % |  | Food Lion                |  | True Value Hardware                                                                                                                                                                                                                           
|                               |  |               |  |                       |  |                         |  |                   |   |  |                          |  |                                                                                                                                                                                                                                               
|Subtotal/Weighted Average (NC) |  |               |  |                       |  | 2,193,420               |  | 92.4              | % |  |                          |  |                                                                                                                                                                                                                                               
|                               |  |               |  |                       |  |                         |  |                   |   |  |                          |  |                                                                                                                                                                                                                                               
|                               |  |               |  |                       |  |                        
|MARYLAND                       |  |               |  |                       |  |                         |  |                   |   |  |                          |  |                                                                                                                                                                                                                                               
|                               |  |               |  |                       |  |                        
|Baltimore                      |  |               |  |                       |  |                         |  |                   |   |  |                          |  |                                                                                                                                                                                                                                               
|Elkridge Corners (4)           |  | 2005          |  | 1990                  |  | 73,529                  |  | 100.0             | % |  | Super Fresh              |  | Rite Aid                                                                                                                                                                                                                                      
|Festival at Woodholme (4)      |  | 2005          |  | 1986                  |  | 81,027                  |  | 93.3              | % |  | TraderJoes              |  |                                                                                                                                                                                                                                              
|Lee Airport (3)                |  | 2005          |  | 2005                  |  | 129,940                 |  | 67.0              | % |  | Giant Food               |  |                                                                                                                                                                                                                                              
|Northway Shopping Center (4)   |  | 2005          |  | 1987                  |  | 98,016                  |  | 96.5              | % |  | ShoppersFoodWarehouse    |  | Goodwill Industries                                                                                                                                                                                                                           
|Parkville Shopping Center (4)  |  | 2005          |  | 1961                  |  | 162,435                 |  | 94.9              | % |  | Super Fresh              |  | Rite Aid, Parkville Lanes, Castlewood Realty                                                                                                                                                                                                  
|Southside Marketplace (4)      |  | 2005          |  | 1990                  |  | 125,147                 |  | 87.2              | % |  | ShoppersFoodWarehouse    |  | Rite Aid                                                                                                                                                                                                                                      
|Valley Centre (4)              |  | 2005          |  | 1987                  |  | 247,312                 |  | 97.1              | % |  |                         |  | TJ Maxx, Sony Theatres, Ross Dress for Less, Homegoods, Staples, Annie Sez                                                                                                                                                                    
|                               |  |               |  |                       |  |                        
|Other Maryland                 |  |               |  |                       |  |                         |  |                   |   |  |                          |  |                                                                                                                                                                                                                                               
|Bowie Plaza (4)                |  | 2005          |  | 1966                  |  | 104,037                 |  | 94.0              | % |  | Giant Food               |  | CVS                                                                                                                                                                                                                                           
|Clinton Park (4)               |  | 2003          |  | 2003                  |  | 206,050                 |  | 97.6              | % |  | Giant Food               |  | Sears, GCO Carpet Outlet, (Toys R Us)                                                                                                                                                                                                       
|Cloppers Mill Village (4)      |  | 2005          |  | 1995                  |  | 137,035                 |  | 98.9              | % |  | ShoppersFoodWarehouse    |  | CVS                                                                                                                                                                                                                                           
|Firstfield Shopping Center (4) |  | 2005          |  | 1978                  |  | 22,328                  |  | 100.0             | % |  |                         |  |                                                                                                                                                                                                                                              
|Goshen Plaza (4)               |  | 2005          |  | 1987                  |  | 45,654                  |  | 100.0             | % |  |                         |  | CVS                                                                                                                                                                                                                                           
|King Farm Apartments (4)       |  | 2004          |  | 2001                  |  | 64,775                  |  | 93.5              | % |  |                         |  |                                                                                                                                                                                                                                              
|King Farm Village Center (4)   |  | 2004          |  | 2001                  |  | 120,326                 |  | 100.0             | % |  | Safeway                  |  |                                                                                                                                                                                                                                              
|Mitchellville Plaza (4)        |  | 2005          |  | 1991                  |  | 156,124                 |  | 95.5              | % |  | Food Lion                |  |                                                                                                                                                                                                                                              
|Takoma Park (4)                |  | 2005          |  | 1960                  |  | 106,469                 |  | 100.0             | % |  | ShoppersFoodWarehouse    |  |                                                                                                                                                                                                                                              
|Watkins Park Plaza (4)         |  | 2005          |  | 1985                  |  | 113,443                 |  | 98.5              | % |  | Safeway                  |  | CVS                                                                                                                                                                                                                                           
|Woodmoor Shopping Center (4)   |  | 2005          |  | 1954                  |  | 64,682                  |  | 95.1              | % |  |                         |  | CVS                                                                                                                                                                                                                                           
|                               |  |               |  |                       |  |                         |  |                   |   |  |                          |  |                                                                                                                                                                                                                                               
|Subtotal/Weighted Average (MD) |  |               |  |                       |  | 2,058,329               |  | 94.6              | % |  |                          |  |                                                                                                                                                                                                                                               
|                               |  |               |  |                       |  |                         |  |                   |   |  |                          |  |                                                                                                                                                                                                                                               



22



---

##### Table of Contents

|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                   
|------------------------------------ |  | ------------- |  | --------------------- |  | ----------------------- |  | ----------------- | - |  | --------------------- |  | ----------------------------------------------------------------------------------
|Property Name                        |  | Year Acquired |  | Year Con-structed (1) |  | GrossLeasableArea (GLA) |  | PercentLeased (2) |   |  | GroceryAnchor         |  | Drug Store & Other Anchors > 10,000 Sq Ft                                         
|PENNSYLVANIA                         |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                   
|                                     |  |               |  |                       |  |                        
|Allentown / Bethlehem                |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                   
|Allen Street Shopping Center (4)     |  | 2005          |  | 1958                  |  | 46,420                  |  | 100.0             | % |  | AhartMarket           |  | Eckerd                                                                            
|Stefko Boulevard Shopping Center (4) |  | 2005          |  | 1976                  |  | 133,824                 |  | 96.2              | % |  | Valley FarmMarket     |  |                                                                                  
|                                     |  |               |  |                       |  |                        
|Harrisburg                           |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                   
|Silver Spring Square (3)             |  | 2005          |  | 2005                  |  | 347,435                 |  | 66.9              | % |  | Wegmans               |  | (Target)                                                                          
|                                     |  |               |  |                       |  |                        
|Philadelphia                         |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                   
|City Avenue Shopping Center (4)      |  | 2005          |  | 1960                  |  | 159,419                 |  | 97.6              | % |  |                      |  | Ross Dress for Less, TJ Maxx, Sears                                               
|Gateway Shopping Center              |  | 2004          |  | 1960                  |  | 219,337                 |  | 93.8              | % |  | Trader Joes          |  | Gateway Pharmacy, Staples, TJ Maxx, Famous Footwear, JoAnn Fabrics                
|Kulpsville Village Center (3)        |  | 2006          |  | 2006                  |  | 14,820                  |  | 100.0             | % |  |                      |  | Walgreens                                                                         
|Mayfair Shopping Center (4)          |  | 2005          |  | 1988                  |  | 112,276                 |  | 97.5              | % |  | Shop NBag            |  | Eckerd, Dollar Tree                                                               
|Mercer Square Shopping Center (4)    |  | 2005          |  | 1988                  |  | 91,400                  |  | 100.0             | % |  | Genuardis            |  |                                                                                  
|Newtown Square Shopping Center (4)   |  | 2005          |  | 1970                  |  | 146,893                 |  | 95.8              | % |  | AcmeMarkets           |  | Eckerd                                                                            
|Towamencin Village Square (4)        |  | 2005          |  | 1990                  |  | 122,916                 |  | 98.7              | % |  | Genuardis            |  | Eckerd, Sears, Dollar Tree                                                        
|Warwick Square Shopping (4)          |  | 2005          |  | 1999                  |  | 89,680                  |  | 92.6              | % |  | Genuardis            |  |                                                                                  
|                                     |  |               |  |                       |  |                        
|Other Pennsylvania                   |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                   
|Kenhorst Plaza (4)                   |  | 2005          |  | 1990                  |  | 159,150                 |  | 95.0              | % |  | RednersMarket        |  | Rite Aid, Sears, US Post Office                                                   
|Hershey                              |  | 2000          |  | 2000                  |  | 6,000                   |  | 100.0             | % |  |                      |  |                                                                                  
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                   
|Subtotal/Weighted Average (PA)       |  |               |  |                       |  | 1,649,570               |  | 90.1              | % |  |                       |  |                                                                                   
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                   
|                                     |  |               |  |                       |  |                        
|WASHINGTON                           |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                   
|                                     |  |               |  |                       |  |                        
|Portland                             |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                   
|Orchard Market Center                |  | 2002          |  | 2004                  |  | 51,959                  |  | 100.0             | % |  |                      |  | Jo-Ann Fabrics, Petco                                                             
|Orchards Phase II (3)                |  | 2005          |  | 2005                  |  | 120,058                 |  | 61.2              | % |  |                      |  | Wallace Theaters, Office Depot                                                    
|                                     |  |               |  |                       |  |                        
|Seattle                              |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                   
|Aurora Marketplace (4)               |  | 2005          |  | 1991                  |  | 106,921                 |  | 100.0             | % |  | Safeway               |  | TJ Maxx                                                                           
|Cascade Plaza (4)                    |  | 1999          |  | 1999                  |  | 211,072                 |  | 97.9              | % |  | Safeway               |  | Bally Total Fitness, Fashion Bug, Jo-Ann Fabrics, Longs Drug, Ross Dress For Less
|Eastgate Plaza (4)                   |  | 2005          |  | 1956                  |  | 78,230                  |  | 100.0             | % |  | Albertsons            |  | Rite Aid                                                                          
|Inglewood Plaza                      |  | 1999          |  | 1985                  |  | 17,253                  |  | 100.0             | % |  |                      |  |                                                                                  
|James Center (4)                     |  | 1999          |  | 1999                  |  | 140,240                 |  | 95.7              | % |  | Fred Myer             |  | Rite Aid                                                                          
|Overlake Fashion Plaza (4)           |  | 2005          |  | 1987                  |  | 80,555                  |  | 100.0             | % |  |                      |  | Marshalls, (Sears)                                                                
|Pine Lake Village                    |  | 1999          |  | 1989                  |  | 102,953                 |  | 100.0             | % |  | QualityFoods          |  | Rite Aid                                                                          
|Sammamish Highland                   |  | 1999          |  | 1992                  |  | 101,289                 |  | 92.6              | % |  | (Safeway)             |  | Bartell Drugs, Ace Hardware                                                       
|Southcenter                          |  | 1999          |  | 1990                  |  | 58,282                  |  | 100.0             | % |  |                      |  | (Target)                                                                          
|Thomas Lake                          |  | 1999          |  | 1998                  |  | 103,872                 |  | 100.0             | % |  | Albertsons            |  | Rite Aid                                                                          
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                   
|Subtotal/Weighted Average (WA)       |  |               |  |                       |  | 1,172,684               |  | 94.5              | % |  |                       |  |                                                                                   
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                   
|                                     |  |               |  |                       |  |                        
|OREGON                               |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                   
|                                     |  |               |  |                       |  |                        
|Portland                             |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                                                   
|Cherry Park Market (4)               |  | 1999          |  | 1997                  |  | 113,518                 |  | 93.2              | % |  | Safeway               |  |                                                                                  
|Greenway Town Center (4)             |  | 2005          |  | 1979                  |  | 93,101                  |  | 100.0             | % |  | UnifiedWesternGrocers |  | Rite Aid, Dollar Tree                                                             



23



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##### Table of Contents

|                               |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|------------------------------ |  | ------------- |  | --------------------- |  | ----------------------- |  | ----------------- | - |  | ------------- |  | -----------------------------------------------------------------------------------------
|Property Name                  |  | Year Acquired |  | Year Con-structed (1) |  | GrossLeasableArea (GLA) |  | PercentLeased (2) |   |  | GroceryAnchor |  | Drug Store & Other Anchors > 10,000 Sq Ft                                                
|OREGON (continued)             |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|                               |  |               |  |                       |  |                        
|Portland                       |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|Hillsboro Market Center (4)    |  | 2000          |  | 2000                  |  | 148,051                 |  | 96.9              | % |  | Albertsons    |  | Petsmart, Marshalls                                                                      
|Murrayhill Marketplace         |  | 1999          |  | 1988                  |  | 149,215                 |  | 99.8              | % |  | Safeway       |  | Segals Baby News                                                                        
|Sherwood Crossroads            |  | 1999          |  | 1999                  |  | 87,966                  |  | 100.0             | % |  | Safeway       |  |                                                                                         
|Sherwood Market Center         |  | 1999          |  | 1995                  |  | 124,257                 |  | 100.0             | % |  | Albertsons    |  |                                                                                         
|Sunnyside 205                  |  | 1999          |  | 1988                  |  | 52,710                  |  | 100.0             | % |  |              |  |                                                                                         
|Tanasbourne Market (3)         |  | 2006          |  | 2006                  |  | 71,000                  |  | 88.0              | % |  | WholeFoods    |  |                                                                                         
|Walker Center                  |  | 1999          |  | 1987                  |  | 89,610                  |  | 100.0             | % |  |              |  | Sportmart                                                                                
|                               |  |               |  |                       |  |                        
|Other Oregon                   |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|Corvallis Market Center (3)    |  | 2006          |  | 2006                  |  | 82,250                  |  | 21.3              | % |  |              |  | TJ Maxx, Michaels                                                                       
|                               |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|Subtotal/Weighted Average (OR) |  |               |  |                       |  | 1,011,678               |  | 91.5              | % |  |               |  |                                                                                          
|                               |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|                               |  |               |  |                       |  |                        
|DELAWARE                       |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|                               |  |               |  |                       |  |                        
|Dover                          |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|White Oak  Dover, DE          |  | 2000          |  | 2000                  |  | 10,908                  |  | 100.0             | % |  |              |  | Eckerd                                                                                   
|                               |  |               |  |                       |  |                        
|Wilmington                     |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|First State Plaza (4)          |  | 2005          |  | 1988                  |  | 164,576                 |  | 93.6              | % |  | Shop Rite     |  | Cinemark                                                                                 
|Newark Shopping Center (4)     |  | 2005          |  | 1987                  |  | 183,017                 |  | 77.6              | % |  |              |  | Blue Hen Lanes, Cinema Center, Dollar Express, La Tolteca Restaurant, Goodwill Industries
|Pike Creek                     |  | 1998          |  | 1981                  |  | 229,510                 |  | 98.7              | % |  | AcmeMarkets   |  | K-Mart, Eckerd                                                                           
|Shoppes of Graylyn (4)         |  | 2005          |  | 1971                  |  | 66,676                  |  | 96.1              | % |  |              |  | Rite Aid                                                                                 
|                               |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|Subtotal/Weighted Average (DE) |  |               |  |                       |  | 654,687                 |  | 91.3              | % |  |               |  |                                                                                          
|                               |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|                               |  |               |  |                       |  |                        
|MASSACHUSETTS                  |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|                               |  |               |  |                       |  |                        
|Boston                         |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|Shops at Saugus (3)            |  | 2006          |  | 2006                  |  | 101,117                 |  | 20.7              | % |  |              |  | La-Z-Boy                                                                                 
|Speedway Plaza (4)             |  | 2006          |  | 1988                  |  | 185,279                 |  | 99.4              | % |  | Stop &Shop    |  | BJs Wholesale                                                                           
|Twin City Plaza                |  | 2006          |  | 2004                  |  | 281,703                 |  | 95.9              | % |  | Shaws        |  | Brooks Pharmacy, K&G Fashion, Dollar Tree, Golds Gym, Marshalls                        
|                               |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|Subtotal/Weighted Average (MA) |  |               |  |                       |  | 568,099                 |  | 83.7              | % |  |               |  |                                                                                          
|                               |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|                               |  |               |  |                       |  |                        
|SOUTH CAROLINA                 |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|                               |  |               |  |                       |  |                        
|Charleston                     |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|Merchants Village (4)          |  | 1997          |  | 1997                  |  | 79,724                  |  | 100.0             | % |  | Publix        |  |                                                                                         
|Orangeburg (3)                 |  | 2006          |  | 2006                  |  | 14,820                  |  | 100.0             | % |  |              |  | Walgreens                                                                                
|Queensborough (4)              |  | 1998          |  | 1993                  |  | 82,333                  |  | 100.0             | % |  | Publix        |  |                                                                                         
|                               |  |               |  |                       |  |                        
|Columbia                       |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|Murray Landing (4)             |  | 2002          |  | 2003                  |  | 64,359                  |  | 93.4              | % |  | Publix        |  |                                                                                         
|North Pointe (4)               |  | 2004          |  | 1996                  |  | 64,257                  |  | 100.0             | % |  | Publix        |  |                                                                                         
|Rosewood Shopping Center (4)   |  | 2001          |  | 2001                  |  | 36,887                  |  | 94.3              | % |  | Publix        |  |                                                                                         
|                               |  |               |  |                       |  |                        
|Greenville                     |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|Fairview Market (4)            |  | 2004          |  | 1998                  |  | 53,888                  |  | 97.4              | % |  | Publix        |  |                                                                                         
|Pelham Commons                 |  | 2002          |  | 2003                  |  | 76,541                  |  | 93.7              | % |  | Publix        |  |                                                                                         
|Poplar Springs (4)             |  | 2004          |  | 1995                  |  | 64,038                  |  | 98.2              | % |  | Publix        |  |                                                                                         
|                               |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          
|Subtotal/Weighted Average (SC) |  |               |  |                       |  | 536,847                 |  | 97.5              | % |  |               |  |                                                                                          
|                               |  |               |  |                       |  |                         |  |                   |   |  |               |  |                                                                                          



24



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##### Table of Contents

|                                    |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|----------------------------------- |  | ------------- |  | --------------------- |  | ----------------------- |  | ----------------- | - |  | -------------- |  | ---------------------------------------------------------------------------------------------------------------
|Property Name                       |  | Year Acquired |  | Year Con-structed (1) |  | GrossLeasableArea (GLA) |  | PercentLeased (2) |   |  | Grocery Anchor |  | Drug Store & Other Anchors > 10,000 Sq Ft                                                                      
|ARIZONA                             |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                        
|Phoenix                             |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|Anthem Marketplace                  |  | 2003          |  | 2000                  |  | 113,292                 |  | 98.8              | % |  | Safeway        |  |                                                                                                               
|Palm Valley Marketplace (4)         |  | 2001          |  | 1999                  |  | 107,647                 |  | 100.0             | % |  | Safeway        |  |                                                                                                               
|Pima Crossing                       |  | 1999          |  | 1996                  |  | 239,438                 |  | 100.0             | % |  |               |  | Bally Total Fitness, Chez Antiques, E & J Designer Shoe Outlet, Paddock Pools Store, Pier 1 Imports, Stein Mart
|Shops at Arizona                    |  | 2003          |  | 2000                  |  | 35,710                  |  | 94.1              | % |  |               |  | Ace Hardware                                                                                                   
|                                    |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|Subtotal/Weighted Average (AZ)      |  |               |  |                       |  | 496,087                 |  | 99.3              | % |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                        
|TENNESSEE                           |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                        
|Nashville                           |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|Harding Place                       |  | 2004          |  | 2004                  |  | 4,849                   |  | 62.3              | % |  |               |  | (Wal-Mart)                                                                                                     
|Lebanon Center (3)                  |  | 2006          |  | 2006                  |  | 63,802                  |  | 71.5              | % |  | Publix         |  |                                                                                                               
|Harpeth Village Fieldstone          |  | 1997          |  | 1998                  |  | 70,091                  |  | 100.0             | % |  | Publix         |  |                                                                                                               
|Nashboro                            |  | 1998          |  | 1998                  |  | 86,811                  |  | 100.0             | % |  | Kroger         |  | (Walgreens)                                                                                                    
|Northlake Village I & II            |  | 2000          |  | 1988                  |  | 141,685                 |  | 94.7              | % |  | Kroger         |  | CVS, Petco                                                                                                     
|Peartree Village                    |  | 1997          |  | 1997                  |  | 109,904                 |  | 100.0             | % |  | Harris Teeter  |  | Eckerd, Office Max                                                                                             
|                                    |  |               |  |                       |  |                        
|Other Tennessee                     |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|Dickson Tn                          |  | 1998          |  | 1998                  |  | 10,908                  |  | 100.0             | % |  |               |  | Eckerd                                                                                                         
|                                    |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|Subtotal/Weighted Average (TN)      |  |               |  |                       |  | 488,050                 |  | 94.4              | % |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                        
|MINNESOTA                           |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                        
|Apple Valley Square (4)             |  | 2006          |  | 1998                  |  | 184,841                 |  | 95.2              | % |  | Rainbow Foods  |  | Petco, Jo-Ann Fabrics, (Burlington Coat Factory)                                                               
|Colonial Square (4)                 |  | 2005          |  | 1959                  |  | 93,200                  |  | 97.9              | % |  | Lunds         |  |                                                                                                               
|Rockford Road Plaza (4)             |  | 2005          |  | 1991                  |  | 205,897                 |  | 97.1              | % |  | Rainbow Foods  |  | Petsmart, Homegoods, TJ Maxx                                                                                   
|                                    |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|Subtotal/Weighted Average (MN)      |  |               |  |                       |  | 483,938                 |  | 96.5              | % |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                        
|MICHIGAN                            |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                        
|Independence Square                 |  | 2003          |  | 2004                  |  | 89,083                  |  | 96.7              | % |  | Kroger         |  |                                                                                                               
|Fenton Marketplace                  |  | 1999          |  | 1999                  |  | 97,224                  |  | 92.9              | % |  | Farmer Jack    |  | Michaels                                                                                                       
|State Street Crossing (3)           |  | 2006          |  | 2006                  |  | 21,004                  |  |                  |   |  |               |  | (Wal-Mart)                                                                                                     
|Waterford Towne Center              |  | 1998          |  | 1998                  |  | 96,101                  |  | 92.9              | % |  | Kroger         |  |                                                                                                               
|                                    |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|Subtotal/Weighted Average (MI)      |  |               |  |                       |  | 303,412                 |  | 87.6              | % |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                        
|KENTUCKY                            |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                        
|Franklin Square (4)                 |  | 1998          |  | 1988                  |  | 203,318                 |  | 93.9              | % |  | Kroger         |  | Rite Aid, Chakeres Theatre, JC Penney, Office Depot                                                            
|Silverlake (4)                      |  | 1998          |  | 1988                  |  | 99,352                  |  | 97.3              | % |  | Kroger         |  |                                                                                                               
|                                    |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|Subtotal/Weighted Average (KY)      |  |               |  |                       |  | 302,670                 |  | 95.0              | % |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                        
|WISCONSIN                           |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                        
|Racine Centre Shopping Center (4)   |  | 2005          |  | 1988                  |  | 135,827                 |  | 98.2              | % |  | Piggly Wiggly  |  | Office Depot, Factory Card Outlet, Dollar Tree                                                                 
|Whitnall Square Shopping Center (4) |  | 2005          |  | 1989                  |  | 133,301                 |  | 96.3              | % |  | Pick N Save  |  | Harbor Freight Tools, Dollar Tree                                                                              
|                                    |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                
|Subtotal/Weighted Average (WI)      |  |               |  |                       |  | 269,128                 |  | 97.3              | % |  |                |  |                                                                                                                
|                                    |  |               |  |                       |  |                         |  |                   |   |  |                |  |                                                                                                                



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|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|------------------------------------ |  | ------------- |  | --------------------- |  | ----------------------- |  | ----------------- | - |  | --------------------- |  | -------------------------------------------------------------
|Property Name                        |  | Year Acquired |  | Year Con-structed (1) |  | GrossLeasableArea (GLA) |  | PercentLeased (2) |   |  | Grocery Anchor        |  | Drug Store & Other Anchors > 10,000 Sq Ft                    
|ALABAMA                              |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                        
|Southgate Village Shopping Ctr (4)   |  | 2001          |  | 1988                  |  | 75,092                  |  | 100.0             | % |  | Publix                |  | Pet Supplies Plus                                            
|Valleydale Village Shop Center (4)   |  | 2002          |  | 2003                  |  | 118,466                 |  | 70.8              | % |  | Publix                |  |                                                             
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|Subtotal/Weighted Average (AL)       |  |               |  |                       |  | 193,558                 |  | 82.2              | % |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                        
|INDIANA                              |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                        
|Chicago                              |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|Airport Crossing (3)                 |  | 2006          |  | 2006                  |  | 11,921                  |  |                  |   |  |                      |  | (Kohls)                                                     
|Augusta Center (3)                   |  | 2006          |  | 2006                  |  | 14,537                  |  | 20.5              | % |  |                      |  |                                                             
|                                     |  |               |  |                       |  |                        
|Indianapolis                         |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|Greenwood Springs                    |  | 2004          |  | 2004                  |  | 28,028                  |  | 35.0              | % |  | (Wal-MartSupercenter) |  | (Gander Mountain)                                            
|Willow Lake Shopping Center (4)      |  | 2005          |  | 1987                  |  | 85,923                  |  | 91.4              | % |  | (Kroger)              |  | Factory Card Outlet                                          
|Willow Lake West Shopping Center (4) |  | 2005          |  | 2001                  |  | 52,961                  |  | 86.5              | % |  | Trader Joes          |  |                                                             
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|Subtotal/Weighted Average (IN)       |  |               |  |                       |  | 193,370                 |  | 70.9              | % |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                        
|CONNECTICUT                          |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|Corbins Corner (4)                  |  | 2005          |  | 1962                  |  | 179,730                 |  | 100.0             | % |  | Trader Joes          |  | Toys R Us, Best Buy, Old Navy, Office Depot, Pier 1 Imports
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|Subtotal/Weighted Average (CT)       |  |               |  |                       |  | 179,730                 |  | 100.0             | % |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                        
|NEW JERSEY                           |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                        
|Haddon Commons (4)                   |  | 2005          |  | 1985                  |  | 52,640                  |  | 93.4              | % |  | Acme Markets          |  | CVS                                                          
|Plaza Square (4)                     |  | 2005          |  | 1990                  |  | 103,842                 |  | 100.0             | % |  | Shop Rite             |  |                                                             
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|Subtotal/Weighted Average (NJ)       |  |               |  |                       |  | 156,482                 |  | 97.8              | % |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                        
|NEW HAMPSHIRE                        |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                        
|Amherst Street Village Center        |  | 2004          |  | 2004                  |  | 33,481                  |  | 91.6              | % |  |                      |  | Petsmart, Walgreens                                          
|Merrimack Shopping Center (3)        |  | 2004          |  | 2004                  |  | 91,692                  |  | 68.7              | % |  | Shaws                |  |                                                             
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|Subtotal/Weighted Average (NH)       |  |               |  |                       |  | 125,173                 |  | 74.8              | % |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                        
|NEVADA                               |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                        
|Anthem Highland Shopping Center (3)  |  | 2004          |  | 2004                  |  | 119,313                 |  | 87.4              | % |  | Albertsons            |  | Sav-On Drugs                                                 
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|Subtotal/Weighted Average (NV)       |  |               |  |                       |  | 119,313                 |  | 87.4              | % |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                        
|DISTRICT OF COLUMBIA                 |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                        
|Shops at The Columbia (4)            |  | 2006          |  | 2006                  |  | 22,811                  |  | 81.5              | % |  | Trader Joes          |  |                                                             
|Spring Valley Shopping Center (4)    |  | 2005          |  | 1930                  |  | 16,834                  |  | 100.0             | % |  |                      |  | CVS                                                          
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|Subtotal/Weighted Average (DC)       |  |               |  |                       |  | 39,645                  |  | 89.4              | % |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              
|Total Weighted Average               |  |               |  |                       |  | 47,187,462              |  | 91.0              | % |  |                       |  |                                                              
|                                     |  |               |  |                       |  |                         |  |                   |   |  |                       |  |                                                              

---

|(1) | Or latest renovation.
|--- | ---------------------

|(2) | Includes development properties. If development properties are excluded, the total percentage leased would be 95.4% for Partnership shopping centers.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Property under development or redevelopment.
|--- | --------------------------------------------

|(4) | Owned by a joint venture with outside investors in which RCLP or an affiliate is the general partner.
|--- | -----------------------------------------------------------------------------------------------------

|(5) | Dark Grocer
|--- | -----------

|Note: | Shadow anchor is indicated by parentheses.
|----- | ------------------------------------------



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##### Table of Contents

|Item 3. | Legal Proceedings
|------- | -----------------

We are a party to various legal
proceedings, which arise, in the ordinary course of our business. We are not currently involved in any litigation nor to our knowledge, is any litigation threatened against us, the outcome of which would, in our judgment based on information
currently available to us, have a material adverse effect on our financial position or results of operations.



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

No matters were submitted for stockholder vote by Regency during the fourth quarter of 2006.

PART II



|Item 5. | Market for the Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|------- | ----------------------------------------------------------------------------------------------------------------

There is no established public trading market for the units of partnership interest in the Partnership (Units), and Units may be transferred
only with the consent of the general partner as provided in the Fourth Amended and Restated Agreement of Limited Partnership (the Partnership Agreement). As of December 31, 2006 there were approximately 32 holders of record in the
aggregate of Original Limited Partnership Units, Additional Units and Series D Preferred Units, determined in accordance with Rule 12g5-1 under the Securities Exchange Act of 1934, as amended. To the Partnerships knowledge, there have been no
bids for the Units and, accordingly, there is no available information with respect to the high and low quotation of the Units for any quarter since Regency became the general partner of the Partnership. Regency directly or indirectly through a
subsidiary holds 99% of the Common Units. Each outstanding Unit other than the Units held directly or indirectly by Regency and the Series D Preferred Units which are convertible into Regency preferred stock may be exchangeable by its holder on a
one share per one Unit basis, for the common stock of Regency or for cash, at Regencys election.

The Partnership Agreement provides
that the Partnership will make priority distributions of Available Cash (as defined in the Partnership Agreement) first to Series D Preferred Units on each March 31, June 30, September 30 and December 31 in a
distribution amount equal to 7.45% of the original capital contribution per Series D Preferred Units. Subject to the prior right of the holders of Series D Preferred Units to receive all distributions accumulated on such Units in full, at the time
of each distribution to holders of common stock of Regency, distributions of Available Cash will then be made pro-rata to the holders of common Units, including Regency.

Regencys common stock is traded on the New York Stock Exchange (NYSE) under the symbol REG. We currently have approximately 23,900 stockholders. The following table sets forth the high
and low prices and the cash dividends declared on our common stock by quarter for 2006 and 2005.



|              |  |           |       |          |       |                        |      |            |       |          |       |                       |    
|------------- |  | --------- | ----- | -------- | ----- | ---------------------- | ---- | ---------- | ----- | -------- | ----- | --------------------- | ---
|              |  | 2006      |       | 2005    
|Quarter Ended |  | HighPrice |       | LowPrice |       | Cash DividendsDeclared |      | High Price |       | LowPrice |       | CashDividendsDeclared
|March 31      |  | $         | 69.00 |          | 58.64 |                        | .595 |            | 55.39 |          | 47.00 |                       | .55
|June 30       |  |           | 67.99 |          | 59.18 |                        | .595 |            | 59.79 |          | 47.30 |                       | .55
|September 30  |  |           | 69.06 |          | 60.86 |                        | .595 |            | 63.20 |          | 55.53 |                       | .55
|December 31   |  |           | 81.42 |          | 67.59 |                        | .595 |            | 60.07 |          | 52.02 |                       | .55

Regency intends to pay regular quarterly distributions to our common stockholders. Future
distributions will be declared and paid at the discretion of Regencys Board of Directors, and will depend upon cash generated by operating activities, our financial condition, capital requirements, annual distribution requirements under the
REIT provisions of the Internal Revenue Code of 1986, as amended, and such other factors as Regencys Board of Directors deem relevant. We anticipate that for the foreseeable future, cash available for distribution will be greater than earnings
and profits due to non-cash expenses, primarily depreciation and amortization, to be incurred by us. Distributions by Regency to the extent of our current and accumulated earnings and profits for federal income tax purposes will be taxable to
stockholders as either ordinary dividend income or capital gain income if so declared by us. Distributions in excess of earnings and profits generally will be treated as a non-taxable return of capital. Such distributions have the effect of
deferring taxation until the sale of a stockholders common stock. In order to maintain



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Regencys qualification as a REIT, Regency must make annual distributions to stockholders of at least 90% of its taxable income. Under certain
circumstances, which we do not expect to occur, we could be required to make distributions in excess of cash available for distributions in order to meet such requirements. Regency currently maintain the Regency Centers Corporation Dividend
Reinvestment and Stock Purchase Plan which enables its stockholders to automatically reinvest distributions, as well as, make voluntary cash payments towards the purchase of additional shares.

Under our loan agreement for our line of credit, distributions may not exceed 95% of Funds from Operations (FFO) based on the immediately
preceding four quarters. FFO is defined in accordance with the NAREIT definition available on their website at www.nareit.com. Also, in the event of any monetary default, Regency may not make distributions to stockholders.

There were no sales of unregistered securities during the periods covered by this report other than a total of 511,314 shares issued during 2006 on a
one-for-one basis for exchangeable common units of our operating partnership, Regency Centers, L.P., pursuant to Section 4(2) of the Securities Act of 1933.



28



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##### Table of Contents

|Item 6. | Selected Consolidated Financial Data
|------- | ------------------------------------

(in thousands, except per unit data and number of properties)

The following table sets forth Selected Consolidated
Financial Data for RCLP on a historical basis for the five years ended December 31, 2006. This information should be read in conjunction with the consolidated financial statements of RCLP (including the related notes thereto) and
Managements Discussion and Analysis of the Financial Condition and Results of Operations, each included elsewhere in this Form 10-K. This historical Selected Consolidated Financial Data has been derived from the audited consolidated financial
statements and restated for discontinued operations.



|                                                         |  |      |           |      |           |      |           |      |           |      |          
|-------------------------------------------------------- |  | ---- | --------- | ---- | --------- | ---- | --------- | ---- | --------- | ---- | ---------
|                                                         |  | 2006 |           | 2005 |           | 2004 |           | 2003 |           | 2002
|Operating Data:                                          |  |      |           |      |           |      |           |      |           |      |          
|Revenues                                                 |  | $    | 420,338   |      | 380,636   |      | 357,641   |      | 332,853   |      | 329,995  
|Operating expenses                                       |  |      | 240,521   |      | 205,560   |      | 195,434   |      | 174,328   |      | 164,500  
|Other expenses (income)                                  |  |      | 14,090    |      | 67,559    |      | 40,802    |      | 33,545    |      | 60,801   
|Minority interests                                       |  |      | 4,863     |      | 263       |      | 319       |      | 501       |      | 492      
|Income from continuing operations                        |  |      | 160,864   |      | 107,254   |      | 121,086   |      | 124,479   |      | 104,202  
|Income from discontinued operations                      |  |      | 64,248    |      | 66,782    |      | 37,649    |      | 39,180    |      | 42,594   
|Net income                                               |  |      | 225,112   |      | 174,036   |      | 158,735   |      | 163,659   |      | 146,796  
|Preferred unit distributions and original issuance costs |  |      | 23,400    |      | 24,849    |      | 28,462    |      | 34,001    |      | 33,475   
|Net income for common unit holders                       |  |      | 201,712   |      | 149,187   |      | 130,273   |      | 129,658   |      | 113,321  
|                                                         |  |      |           |      |          
|Income per common unit - diluted:                        |  |      |           |      |           |      |           |      |           |      |          
|Income from continuing operations                        |  | $    | 1.97      |      | 1.22      |      | 1.47      |      | 1.48      |      | 0.99     
|Net income for common unit holders                       |  | $    | 2.89      |      | 2.23      |      | 2.08      |      | 2.12      |      | 1.84     
|                                                         |  |      |           |      |          
|Balance Sheet Data:                                      |  |      |           |      |           |      |           |      |           |      |          
|Real estate investments before accumulated depreciation  |  | $    | 3,901,633 |      | 3,775,433 |      | 3,332,671 |      | 3,166,346 |      | 3,094,071
|Total assets                                             |  |      | 3,671,785 |      | 3,616,215 |      | 3,243,824 |      | 3,098,229 |      | 3,068,928
|Total debt                                               |  |      | 1,575,386 |      | 1,616,386 |      | 1,493,090 |      | 1,452,777 |      | 1,333,524
|Total liabilities                                        |  |      | 1,734,572 |      | 1,739,225 |      | 1,610,743 |      | 1,562,530 |      | 1,426,349
|General partners capital                                |  |      | 1,591,634 |      | 1,525,517 |      | 1,320,852 |      | 1,220,863 |      | 1,221,720
|                                                         |  |      |           |      |          
|Other Information:                                       |  |      |           |      |           |      |           |      |           |      |          
|Distributions per unit                                   |  | $    | 2.38      |      | 2.20      |      | 2.12      |      | 2.08      |      | 2.04     
|Common units outstanding                                 |  |      | 69,759    |      | 69,218    |      | 64,297    |      | 61,227    |      | 61,512   
|Series A-F Preferred Units outstanding                   |  |      | 500       |      | 1,040     |      | 2,290     |      | 4,640     |      | 4,640    
|Combined Basis gross leasable area (GLA)                 |  |      | 47,187    |      | 46,243    |      | 33,816    |      | 30,348    |      | 29,483   
|Combined Basis number of properties owned                |  |      | 405       |      | 393       |      | 291       |      | 265       |      | 262      
|Ratio of earnings to fixed charges                       |  |      | 2.3       |      | 2.1       |      | 2.1       |      | 1.8       |      | 1.5      



29



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##### Table of Contents

|Item 7. | Managements Discussion and Analysis of Financial Condition and Results of Operations
|------- | -------------------------------------------------------------------------------------

Overview and Operating Philosophy

Regency is a qualified real estate investment trust
(REIT), which began operations in 1993. Our primary operating and investment goal is long-term growth in earnings per share and total shareholder return, which we work to achieve by focusing on a strategy of owning, operating and
developing high-quality community and neighborhood shopping centers that are tenanted by market-dominant grocers, category-leading anchors, specialty retailers and restaurants located in areas with above average household incomes and population
densities. All of Regencys operating, investing and financing activities are performed through its operating partnership, Regency Centers, L.P. (RCLP or Partnership), RCLPs wholly owned subsidiaries, and through
its investments in joint ventures with third parties. Regency currently owns 99% of the outstanding operating partnership units of RCLP.

At December 31, 2006, we directly owned 218 shopping centers (the Consolidated Properties) located in 22 states representing 24.7 million square feet of gross leasable area (GLA). Our cost of these shopping
centers is $3.5 billion before depreciation. Through joint ventures, we own partial interests in 187 shopping centers (the Unconsolidated Properties) located in 24 states and the District of Columbia representing 22.5 million square
feet of GLA. Our investment, at cost, in the Unconsolidated Properties is $434.1 million. Certain portfolio information described below is presented (a) on a Combined Basis, which is a total of the Consolidated Properties and the Unconsolidated
Properties, (b) for our Consolidated Properties only and (c) for the Unconsolidated Properties that we own through joint ventures. We believe that presenting the information under these methods provides a more complete understanding of the
properties that we wholly-own versus those that we partially-own, but for which we provide full property management, asset management, investing and financing services. The shopping center portfolio that we manage, on a Combined Basis, represents
405 shopping centers located in 28 states and the District of Columbia and contains 47.2 million square feet of GLA.

We earn revenues
and generate cash flow by leasing space in our shopping centers to market-leading grocers, major retail anchors, specialty side-shop retailers, and restaurants, including ground leasing or selling building pads (out-parcels) to these tenants. We
experience growth in revenues by increasing occupancy and rental rates at currently owned shopping centers, and by acquiring and developing new shopping centers. Community and neighborhood shopping centers generate substantial daily traffic by
conveniently offering daily necessities and services. This high traffic generates increased sales, thereby driving higher occupancy and rental-rate growth, which we expect will sustain our growth in earnings per unit and increase the value of our
portfolio over the long term.

We seek a range of strong national, regional and local specialty retailers, for the same reason that we
choose to anchor our centers with leading grocers and major retailers who provide a mix of goods and services that meet consumer needs. We have created a formal partnering process  the Premier Customer Initiative (PCI)  to
promote mutually beneficial relationships with our specialty retailers. The objective of PCI is for RCLP to build a base of specialty tenants who represent the best-in-class operators in their respective merchandising categories. Such
retailers reinforce the consumer appeal and other strengths of a centers anchor, help to stabilize a centers occupancy, reduce re-leasing downtime, reduce tenant turnover and yield higher sustainable rents.

We grow our shopping center portfolio through acquisitions of operating centers and new shopping center development, where we acquire the land and
construct the building. Development is customer driven, meaning we generally have an executed lease from the anchor before we start construction. Developments serve the growth needs of our anchors, and specialty retailers, resulting in modern
shopping centers with long-term anchor leases that produce attractive returns on our invested capital. This development process can require up to 36 months, or longer, from initial land or redevelopment acquisition through construction, lease-up and
stabilization of rental income, depending upon the size of the project. Generally, anchor tenants begin operating their stores prior to the completion of construction of the entire center, resulting in rental income during the development phase.



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Regency intends to maintain a conservative capital structure to fund our growth programs, which should
preserve our investment-grade ratings. Our approach is founded on our self-funding business model. This model utilizes center recycling as a key component, which requires ongoing monitoring of each center to ensure that it continues to
meet our investment standards. We sell the operating properties that no longer measure up to our standards. We also develop certain retail centers because of their attractive profit margins with the intent of selling them to joint ventures or other
third parties upon completion. These sale proceeds are re-deployed into new, higher-quality developments and acquisitions that are expected to generate sustainable revenue growth and more attractive returns.

Joint venturing of shopping centers also provides us with a capital source for new developments and acquisitions, as well as the opportunity to earn fees
for asset and property management services. As asset manager, we are engaged by our partners to apply similar operating, investment, and capital strategies to the portfolios owned by the joint ventures. Joint ventures grow their shopping center
investments through acquisitions from third parties or direct purchases from RCLP. Although selling properties to joint ventures reduces our ownership interest, we continue to share in the risks and rewards of centers that meet our high quality
standards and long-term investment strategy. We have no obligations or liabilities of the joint ventures beyond our ownership interest percentage.

We have identified certain significant risks and challenges affecting our industry, and we are addressing them accordingly. An economic downturn could result in declines in occupancy levels at our shopping centers, which would reduce our
rental revenues; however, we believe that our investment focus on neighborhood and community shopping centers that conveniently provide daily necessities will minimize the impact of a downturn in the economy. Increased competition from super-centers
and industry consolidation could result in retailer store closings; however, we closely monitor the operating performance and tenants sales in our shopping centers that operate near super-centers as well as those tenants operating retail
formats that are experiencing significant changes in competition or business practice. We also continue to monitor retail trends and merchandise our shopping centers based on consumer demand. A significant slowdown in retailer demand for new stores
could cause a corresponding reduction in our shopping center development program that would likely reduce our future rental revenues and profits from development sales; as well as, increase our operating expenses as a result of reducing our
capitalized employee costs (See Critical Accounting Policies and Estimates  Capitalization of Costs described further below). However, based upon our current pipeline of development projects undergoing due diligence, which is our best
indication of retailer expansion plans, the presence of our development teams in key markets in combination with their excellent relationships with leading anchor tenants, we believe that we will be able to sustain our development program at current
averages in the foreseeable three to five year period.



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##### Table of Contents

Shopping Center Portfolio

The following tables summarize general operating statistics related to our shopping center portfolio, which we use to evaluate and monitor our performance. The portfolio information below is presented (a) on a
Combined Basis, (b) for Consolidated Properties and (c) for Unconsolidated Properties, the definitions of which are provided above:



|                              |  |                   |  |                  
|----------------------------- |  | ----------------- |  | -----------------
|                              |  | December 31, 2006 |  | December 31, 2005
|Number of Properties (a)      |  | 405               |  | 393              
|Number of Properties (b)      |  | 218               |  | 213              
|Number of Properties (c)      |  | 187               |  | 180              
|                              |  |                  
|Properties in Development (a) |  | 47                |  | 31               
|Properties in Development (b) |  | 43                |  | 30               
|Properties in Development (c) |  | 4                 |  | 1                
|                              |  |                  
|Gross Leasable Area (a)       |  | 47,187,462        |  | 46,243,139       
|Gross Leasable Area (b)       |  | 24,654,082        |  | 24,382,276       
|Gross Leasable Area (c)       |  | 22,533,380        |  | 21,860,863       
|                              |  |                  
|Percent Leased (a)            |  | 91.0%             |  | 91.3%            
|Percent Leased (b)            |  | 87.3%             |  | 88.0%            
|Percent Leased (c)            |  | 95.0%             |  | 95.1%            

We seek to reduce our operating and leasing risks through diversification which we achieve by
geographically diversifying our shopping centers; avoiding dependence on any single property, market, or tenant, and owning a portion of our shopping centers through joint ventures.



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##### Table of Contents

The following table is a list of the shopping centers summarized by state and in order of largest
holdings presented on a Combined Basis:



|                  |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  
|----------------- |  | ----------------- |  | ---------- | ----------------- | ------------- | - |  | -------- | - |  | ------------ |  | ---------- |  | ------------- | - |  | -------- | -
|                  |  | December 31, 2006 |  |            | December 31, 2005 |              
|Location          |  | # Properties      |  | GLA        |                   | % of TotalGLA |   |  | % Leased |   |  | # Properties |  | GLA        |  | % of TotalGLA |   |  | % Leased |  
|California        |  | 71                |  | 9,521,497  |                   | 20.2          | % |  | 88.6     | % |  | 70           |  | 8,855,638  |  | 19.2          | % |  | 93.3     | %
|Florida           |  | 55                |  | 6,175,929  |                   | 13.1          | % |  | 93.1     | % |  | 51           |  | 5,912,994  |  | 12.8          | % |  | 94.5     | %
|Texas             |  | 39                |  | 4,779,440  |                   | 10.1          | % |  | 86.1     | % |  | 38           |  | 5,029,590  |  | 10.9          | % |  | 84.7     | %
|Virginia          |  | 33                |  | 3,884,864  |                   | 8.2           | % |  | 94.1     | % |  | 31           |  | 3,628,732  |  | 7.8           | % |  | 95.0     | %
|Georgia           |  | 32                |  | 2,735,441  |                   | 5.8           | % |  | 92.6     | % |  | 33           |  | 2,850,662  |  | 6.2           | % |  | 95.4     | %
|Colorado          |  | 21                |  | 2,345,224  |                   | 5.0           | % |  | 91.8     | % |  | 22           |  | 2,507,634  |  | 5.4           | % |  | 84.3     | %
|Ohio              |  | 16                |  | 2,292,515  |                   | 4.9           | % |  | 85.3     | % |  | 16           |  | 2,045,260  |  | 4.4           | % |  | 82.3     | %
|Illinois          |  | 16                |  | 2,256,682  |                   | 4.8           | % |  | 95.8     | % |  | 17           |  | 2,410,178  |  | 5.2           | % |  | 95.9     | %
|North Carolina    |  | 16                |  | 2,193,420  |                   | 4.6           | % |  | 92.4     | % |  | 15           |  | 2,114,667  |  | 4.6           | % |  | 91.7     | %
|Maryland          |  | 18                |  | 2,058,329  |                   | 4.4           | % |  | 94.6     | % |  | 21           |  | 2,435,783  |  | 5.3           | % |  | 93.6     | %
|Pennsylvania      |  | 13                |  | 1,649,570  |                   | 3.5           | % |  | 90.1     | % |  | 13           |  | 1,665,005  |  | 3.6           | % |  | 75.3     | %
|Washington        |  | 11                |  | 1,172,684  |                   | 2.5           | % |  | 94.5     | % |  | 12           |  | 1,334,337  |  | 2.9           | % |  | 93.6     | %
|Oregon            |  | 10                |  | 1,011,678  |                   | 2.1           | % |  | 91.5     | % |  | 8            |  | 854,729    |  | 1.8           | % |  | 97.1     | %
|Delaware          |  | 5                 |  | 654,687    |                   | 1.4           | % |  | 91.3     | % |  | 5            |  | 654,687    |  | 1.4           | % |  | 90.3     | %
|Massachusetts     |  | 3                 |  | 568,099    |                   | 1.2           | % |  | 83.7     | % |  |             |  |           |  |              |   |  |         |  
|South Carolina    |  | 9                 |  | 536,847    |                   | 1.1           | % |  | 97.5     | % |  | 6            |  | 624,450    |  | 1.4           | % |  | 97.4     | %
|Arizona           |  | 4                 |  | 496,087    |                   | 1.1           | % |  | 99.3     | % |  | 8            |  | 522,027    |  | 1.1           | % |  | 96.0     | %
|Tennessee         |  | 7                 |  | 488,050    |                   | 1.0           | % |  | 94.4     | % |  | 4            |  | 496,087    |  | 1.1           | % |  | 99.4     | %
|Minnesota         |  | 3                 |  | 483,938    |                   | 1.0           | % |  | 96.5     | % |  | 2            |  | 299097     |  | 0.6           | % |  | 97.3     | %
|Michigan          |  | 4                 |  | 303,412    |                   | 0.6           | % |  | 87.6     | % |  | 3            |  | 282,408    |  | 0.6           | % |  | 95.5     | %
|Kentucky          |  | 2                 |  | 302,670    |                   | 0.6           | % |  | 95.0     | % |  | 2            |  | 302,670    |  | 0.7           | % |  | 94.7     | %
|Wisconsin         |  | 2                 |  | 269,128    |                   | 0.6           | % |  | 97.3     | % |  | 3            |  | 372,382    |  | 0.8           | % |  | 94.4     | %
|Alabama           |  | 2                 |  | 193,558    |                   | 0.4           | % |  | 82.2     | % |  | 3            |  | 267,689    |  | 0.6           | % |  | 84.8     | %
|Indiana           |  | 5                 |  | 193,370    |                   | 0.4           | % |  | 70.9     | % |  | 3            |  | 229,619    |  | 0.5           | % |  | 84.3     | %
|Connecticut       |  | 1                 |  | 179,730    |                   | 0.4           | % |  | 100.0    | % |  | 1            |  | 167,230    |  | 0.4           | % |  | 100.0    | %
|New Jersey        |  | 2                 |  | 156,482    |                   | 0.3           | % |  | 97.8     | % |  | 2            |  | 156,482    |  | 0.3           | % |  | 97.8     | %
|New Hampshire     |  | 2                 |  | 125,173    |                   | 0.3           | % |  | 74.8     | % |  | 2            |  | 112,752    |  | 0.2           | % |  | 67.8     | %
|Nevada            |  | 1                 |  | 119,313    |                   | 0.3           | % |  | 87.4     | % |  | 1            |  | 93,516     |  | 0.2           | % |  | 73.6     | %
|Dist. of Columbia |  | 2                 |  | 39,645     |                   | 0.1           | % |  | 89.4     | % |  | 1            |  | 16,834     |  |              |   |  | 100.0    | %
|                  |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  
|Total             |  | 405               |  | 47,187,462 |                   | 100.0         | % |  | 91.0     | % |  | 393          |  | 46,243,139 |  | 100.0         | % |  | 91.3     | %
|                  |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  



33



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##### Table of Contents

The following table is a list of the shopping centers summarized by state and in order of largest
holdings presented for the Consolidated Properties:



|               |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  
|-------------- |  | ----------------- |  | ---------- | ----------------- | ------------- | - |  | -------- | - |  | ------------ |  | ---------- |  | ------------- | - |  | -------- | -
|               |  | December 31, 2006 |  |            | December 31, 2005 |              
|Location       |  | # Properties      |  | GLA        |                   | % of TotalGLA |   |  | % Leased |   |  | # Properties |  | GLA        |  | % of TotalGLA |   |  | % Leased |  
|California     |  | 46                |  | 5,861,515  |                   | 23.8          | % |  | 84.9     | % |  | 45           |  | 5,319,464  |  | 21.8          | % |  | 91.2     | %
|Florida        |  | 34                |  | 4,054,604  |                   | 16.4          | % |  | 93.6     | % |  | 35           |  | 4,185,221  |  | 17.2          | % |  | 95.6     | %
|Texas          |  | 30                |  | 3,629,118  |                   | 14.7          | % |  | 82.5     | % |  | 30           |  | 3,890,913  |  | 16.0          | % |  | 81.6     | %
|Ohio           |  | 14                |  | 2,037,134  |                   | 8.3           | % |  | 83.6     | % |  | 15           |  | 1,936,337  |  | 7.9           | % |  | 81.5     | %
|Georgia        |  | 16                |  | 1,408,407  |                   | 5.7           | % |  | 89.7     | % |  | 16           |  | 1,410,412  |  | 5.8           | % |  | 93.7     | %
|Colorado       |  | 13                |  | 1,158,670  |                   | 4.7           | % |  | 89.0     | % |  | 14           |  | 1,321,080  |  | 5.4           | % |  | 73.4     | %
|Virginia       |  | 9                 |  | 1,018,531  |                   | 4.1           | % |  | 89.1     | % |  | 9            |  | 973,744    |  | 4.0           | % |  | 93.5     | %
|North Carolina |  | 9                 |  | 947,413    |                   | 3.8           | % |  | 95.3     | % |  | 9            |  | 970,506    |  | 4.0           | % |  | 96.6     | %
|Oregon         |  | 7                 |  | 657,008    |                   | 2.7           | % |  | 88.8     | % |  | 5            |  | 500,059    |  | 2.0           | % |  | 97.4     | %
|Pennsylvania   |  | 4                 |  | 587,592    |                   | 2.4           | % |  | 78.1     | % |  | 3            |  | 573,410    |  | 2.3           | % |  | 37.0     | %
|Washington     |  | 6                 |  | 555,666    |                   | 2.3           | % |  | 90.3     | % |  | 7            |  | 717,319    |  | 2.9           | % |  | 89.4     | %
|Tennessee      |  | 7                 |  | 488,050    |                   | 2.0           | % |  | 94.4     | % |  | 6            |  | 624,450    |  | 2.6           | % |  | 97.4     | %
|Illinois       |  | 3                 |  | 415,011    |                   | 1.7           | % |  | 93.6     | % |  | 3            |  | 415,011    |  | 1.7           | % |  | 95.6     | %
|Arizona        |  | 3                 |  | 388,440    |                   | 1.6           | % |  | 99.1     | % |  | 3            |  | 388,440    |  | 1.6           | % |  | 99.3     | %
|Massachusetts  |  | 2                 |  | 382,820    |                   | 1.5           | % |  | 76.1     | % |  |             |  |           |  |              |   |  |         |  
|Michigan       |  | 4                 |  | 303,412    |                   | 1.2           | % |  | 87.6     | % |  | 3            |  | 282,408    |  | 1.1           | % |  | 95.5     | %
|Delaware       |  | 2                 |  | 240,418    |                   | 1.0           | % |  | 98.7     | % |  | 2            |  | 240,418    |  | 1.0           | % |  | 97.8     | %
|Maryland       |  | 1                 |  | 129,940    |                   | 0.5           | % |  | 67.0     | % |  | 1            |  | 121,050    |  | 0.5           | % |  | 49.6     | %
|New Hampshire  |  | 2                 |  | 125,173    |                   | 0.5           | % |  | 74.8     | % |  | 2            |  | 112,752    |  | 0.5           | % |  | 67.8     | %
|Nevada         |  | 1                 |  | 119,313    |                   | 0.5           | % |  | 87.4     | % |  | 1            |  | 93,516     |  | 0.4           | % |  | 73.6     | %
|South Carolina |  | 2                 |  | 91,361     |                   | 0.4           | % |  | 94.7     | % |  | 2            |  | 140,900    |  | 0.6           | % |  | 91.2     | %
|Indiana        |  | 3                 |  | 54,486     |                   | 0.2           | % |  | 23.5     | % |  | 1            |  | 90,735     |  | 0.4           | % |  | 72.2     | %
|Alabama        |  |                  |  |           |                   |              |   |  |         |   |  | 1            |  | 74,131     |  | 0.3           | % |  | 96.8     | %
|               |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  
|Total          |  | 218               |  | 24,654,082 |                   | 100.0         | % |  | 87.3     | % |  | 213          |  | 24,382,276 |  | 100.0         | % |  | 88.0     | %
|               |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  

The Consolidated Properties are encumbered by mortgage loans of $255.6 million.



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##### Table of Contents

The following table is a list of the shopping centers summarized by state and in order of largest holdings presented for
the Unconsolidated Properties owned in joint ventures:



|                  |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  
|----------------- |  | ----------------- |  | ---------- | ----------------- | ------------- | - |  | -------- | - |  | ------------ |  | ---------- |  | ------------- | - |  | -------- | -
|                  |  | December 31, 2006 |  |            | December 31, 2005 |              
|Location          |  | # Properties      |  | GLA        |                   | % of TotalGLA |   |  | % Leased |   |  | # Properties |  | GLA        |  | % of TotalGLA |   |  | % Leased |  
|California        |  | 25                |  | 3,659,982  |                   | 16.2          | % |  | 94.5     | % |  | 25           |  | 3,536,174  |  | 16.2          | % |  | 96.5     | %
|Virginia          |  | 24                |  | 2,866,333  |                   | 12.7          | % |  | 95.8     | % |  | 22           |  | 2,654,988  |  | 12.2          | % |  | 95.6     | %
|Florida           |  | 21                |  | 2,121,325  |                   | 9.4           | % |  | 92.1     | % |  | 16           |  | 1,727,773  |  | 7.9           | % |  | 91.7     | %
|Maryland          |  | 17                |  | 1,928,389  |                   | 8.6           | % |  | 96.4     | % |  | 20           |  | 2,314,733  |  | 10.6          | % |  | 95.9     | %
|Illinois          |  | 13                |  | 1,841,671  |                   | 8.2           | % |  | 96.3     | % |  | 14           |  | 1,995,167  |  | 9.1           | % |  | 95.9     | %
|Georgia           |  | 16                |  | 1,327,034  |                   | 5.9           | % |  | 95.7     | % |  | 17           |  | 1,440,250  |  | 6.6           | % |  | 97.0     | %
|North Carolina    |  | 7                 |  | 1,246,007  |                   | 5.5           | % |  | 90.1     | % |  | 6            |  | 1,144,161  |  | 5.2           | % |  | 87.6     | %
|Colorado          |  | 8                 |  | 1,186,554  |                   | 5.3           | % |  | 94.5     | % |  | 8            |  | 1,186,554  |  | 5.4           | % |  | 96.3     | %
|Texas             |  | 9                 |  | 1,150,322  |                   | 5.1           | % |  | 97.4     | % |  | 8            |  | 1,138,677  |  | 5.2           | % |  | 95.4     | %
|Pennsylvania      |  | 9                 |  | 1,061,978  |                   | 4.7           | % |  | 96.8     | % |  | 10           |  | 1,091,595  |  | 5.0           | % |  | 95.5     | %
|Washington        |  | 5                 |  | 617,018    |                   | 2.7           | % |  | 98.3     | % |  | 5            |  | 617,018    |  | 2.8           | % |  | 98.4     | %
|Minnesota         |  | 3                 |  | 483,938    |                   | 2.2           | % |  | 96.5     | % |  | 2            |  | 299,097    |  | 1.4           | % |  | 97.3     | %
|South Carolina    |  | 7                 |  | 445,486    |                   | 2.0           | % |  | 98.0     | % |  | 6            |  | 381,127    |  | 1.7           | % |  | 97.9     | %
|Delaware          |  | 3                 |  | 414,269    |                   | 1.8           | % |  | 87.0     | % |  | 3            |  | 414,269    |  | 1.9           | % |  | 85.9     | %
|Oregon            |  | 3                 |  | 354,670    |                   | 1.6           | % |  | 96.5     | % |  | 3            |  | 354,670    |  | 1.6           | % |  | 96.6     | %
|Kentucky          |  | 2                 |  | 302,670    |                   | 1.3           | % |  | 95.0     | % |  | 2            |  | 302,670    |  | 1.4           | % |  | 94.7     | %
|Wisconsin         |  | 2                 |  | 269,128    |                   | 1.2           | % |  | 97.3     | % |  | 3            |  | 372,382    |  | 1.7           | % |  | 94.4     | %
|Ohio              |  | 2                 |  | 255,381    |                   | 1.1           | % |  | 99.0     | % |  | 1            |  | 108,923    |  | 0.5           | % |  | 97.6     | %
|Alabama           |  | 2                 |  | 193,558    |                   | 0.9           | % |  | 82.2     | % |  | 2            |  | 193,558    |  | 0.9           | % |  | 80.2     | %
|Massachusetts     |  | 1                 |  | 185279     |                   | 0.8           | % |  | 99.4     | % |  |             |  |           |  |              |   |  |         |  
|Connecticut       |  | 1                 |  | 179,730    |                   | 0.8           | % |  | 100.0    | % |  | 1            |  | 167,230    |  | 0.8           | % |  | 100.0    | %
|New Jersey        |  | 2                 |  | 156,482    |                   | 0.7           | % |  | 97.8     | % |  | 2            |  | 156,482    |  | 0.7           | % |  | 97.8     | %
|Indiana           |  | 2                 |  | 138,884    |                   | 0.6           | % |  | 89.5     | % |  | 2            |  | 138,884    |  | 0.6           | % |  | 92.2     | %
|Arizona           |  | 1                 |  | 107,647    |                   | 0.5           | % |  | 100.0    | % |  | 1            |  | 107,647    |  | 0.5           | % |  | 100.0    | %
|Dist. of Columbia |  | 2                 |  | 39,645     |                   | 0.2           | % |  | 89.4     | % |  | 1            |  | 16,834     |  | 0.1           | % |  | 100.0    | %
|                  |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  
|Total             |  | 187               |  | 22,533,380 |                   | 100.0         | % |  | 95.0     | % |  | 180          |  | 21,860,863 |  | 100.0         | % |  | 95.1     | %
|                  |  |                   |  |            |                   |               |   |  |          |   |  |              |  |            |  |               |   |  |          |  

The Unconsolidated Properties are encumbered by mortgage loans of $2.4 billion.



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##### Table of Contents

The following summarizes the four largest grocery tenants occupying our shopping centers at December 31, 2006:



|               |  |                     |  |                                        |   |  |                                       |  
|-------------- |  | ------------------- |  | -------------------------------------- | - |  | ------------------------------------- | -
|Grocery Anchor |  | Number ofStores (a) |  | Percentage ofPartnership-owned GLA (b) |   |  | Percentage ofAnnualized Base Rent (b) |  
|Kroger         |  | 67                  |  | 9.5                                    | % |  | 6.4                                   | %
|Publix         |  | 65                  |  | 6.3                                    | % |  | 4.1                                   | %
|Safeway        |  | 65                  |  | 5.8                                    | % |  | 3.9                                   | %
|Super Valu     |  | 35                  |  | 3.6                                    | % |  | 2.9                                   | %

| | 
| | 

| | (a) | For the Combined Properties including stores owned by grocery anchors that are attached to our centers.
| | --- | -------------------------------------------------------------------------------------------------------

| | (b) | GLA and annualized base rent include the Consolidated Properties plus RCLPs pro-rata share of the Unconsolidated Properties.
| | --- | -----------------------------------------------------------------------------------------------------------------------------

Although base rent is supported by long-term lease contracts, tenants who file bankruptcy are able to cancel their leases and close their related stores.
In the event that a tenant with a significant number of leases in our shopping centers files bankruptcy and cancels its leases, we could experience a significant reduction in our revenues. We continually monitor industry trends and sales data to
help us identify declines in retail categories or tenants who might be experiencing financial difficulties. We continue to monitor the video rental industry while its operators transition to different rental formats including on-line rental
programs. At December 31, 2006, we had leases with 137 video rental stores representing $9.8 million of annual rental income pertaining to Consolidated Properties and our pro rata share of the Unconsolidated Properties. We are not aware at this
time of the current or pending bankruptcy of any of our tenants that would cause a significant reduction in our revenues, and no tenant represents more than 7% of the total of our annual base rental revenues and our pro-rata share of the base
revenues of the Unconsolidated Properties.

Liquidity and Capital Resources

We expect that cash generated from operating activities will provide the necessary funds to pay our operating expenses, interest expense, scheduled
principal payments on outstanding indebtedness, capital expenditures necessary to maintain and improve our shopping centers, and distributions to unit holders. Net cash provided by operating activities was $216.8 million, $205.4 million and $181.5
million for the years ended December 31, 2006, 2005 and 2004, respectively. During 2006, 2005 and 2004, we incurred capital expenditures of $14.0 million, $14.4 million and $11.7 million to improve our shopping centers, we paid scheduled
principal payments of $4.5 million, $5.5 million and $5.7 million to our lenders on mortgage loans, and we paid distributions to our unit holders of $185.2 million, $167.4 million and $154.8 million, respectively. The increase in distributions
during 2006 was primarily related to the Companys $200 million equity offering completed during 2005, as described below under Equity Capital Transactions, and an increase in Regencys annual dividend rate of 8.2%.

We intend to continue to grow our portfolio by investing in shopping centers through ground up development of new centers or acquisition of existing
centers. Because development and acquisition activities are discretionary in nature, they are not expected to burden the capital resources we have currently available for liquidity requirements. We expect to meet our long-term capital investment
requirements for development and acquisitions, as well as, the redemption of preferred stock and the repayment of maturing debt from: (i) residual cash generated from operating activities after the payments described above, (ii) proceeds
from the sale of real estate, (iii) joint venturing of real estate, (iv) refinancing of debt, and (v) equity raised in the capital markets.



36



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##### Table of Contents

The following table summarizes net cash flows related to operating, investing and financing activities
(in thousands):



|                                                    |  |      |          |   |      |          |   |      |         |  
|--------------------------------------------------- |  | ---- | -------- | - | ---- | -------- | - | ---- | ------- | -
|                                                    |  | 2006 |          |   | 2005 |          |   | 2004 |        
|Net cash provided by operating activities           |  | $    | 216,815  |   |      | 205,403  |   |      | 181,522 |  
|Net cash provided by (used in) investing activities |  |      | 38,231   |   |      | (484,778 | ) |      | (38,318 | )
|Net cash (used in) provided by financing activities |  |      | (263,458 | ) |      | 226,513  |   |      | (77,753 | )
|                                                    |  |      |          |   |      |          |   |      |         |  
|Net (decrease) increase in cash and equivalents     |  | $    | (8,412   | ) |      | (52,862  | ) |      | 65,451  |  
|                                                    |  |      |          |   |      |          |   |      |         |  

At December 31, 2006, Regency had an unlimited amount under their shelf registration for
equity securities based on the new Securities and Exchange Commission (SEC) rules and RCLP had $600 million available for debt under its shelf registration. We believe that our ability to access the capital markets as a source of funds
to meet capital requirements is good.

At December 31, 2006 we had 47 properties under construction or undergoing major renovations on
a Combined Basis, which when completed, will represent a net investment of $1.1 billion after projected sales of adjacent land and out-parcels. This compares to 31 projects that were under construction at the end of 2005 representing an investment
of $735.1 million upon completion. We estimate that we will earn an average return on our investment on our current development projects of 7.9% on a fully allocated basis including direct internal costs and the cost to acquire any residual
interests held by minority development partners. These average returns are approximately 110 basis points less than the projected yields on the developments that were under construction at the end of 2005, which is primarily the result of higher
costs associated with the acquisition of land and construction. While the average return on investment has declined from historical levels, the Partnership believes that our development returns are sufficient on a risk adjusted basis. Costs
necessary to complete the current development projects, net of projected land sales are estimated to be $532 million and will likely be expended through 2010. The costs to complete these developments will be funded from our $500 million line of
credit, which had $379 million of available funding at December 31, 2006, and from expected proceeds from the future sale of shopping centers as part of the capital recycling program described above. In February 2007, we increased the
commitment of our line of credit to $600 million with the ability to expand it to $750 million as discussed further below in Notes Payable.

On April 11, 2006, we acquired a 100% interest in a shopping center for a purchase price of $63.1 million which includes the assumption of $44.0 million in debt. The acquisition was accounted for as a business combination purchase and
the results of its operations are included in the consolidated financial statements from the date of acquisition. During 2006, we also acquired six shopping centers through our joint ventures for a combined purchase price of $159.3 million as
further described below.

During 2006, we sold 100% of our interest in 11 properties for proceeds of $149.6 million, net of debt repayments
and closing costs. The operating income and gains from these properties and properties classified as held for sale are included in discontinued operations. We also sold partial interests in six completed development properties to our joint ventures
for $135.0 million, or $100 million net after excluding our ownership interests in the joint ventures. The details of the sales to joint ventures are further described below.



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Investments in Unconsolidated Real Estate Partnerships (Joint Ventures)

At December 31, 2006, we had investments in unconsolidated real estate partnerships of $434.1 million. The following is a summary of unconsolidated
combined assets and liabilities of these joint ventures and our pro-rata share (see note below) at December 31, 2006 and 2005 (dollars in thousands):



|                         |  |            |  |           
|------------------------ |  | ---------- |  | ----------
|                         |  | 2006       |  | 2005      
|Number of Joint Ventures |  | 18         |  | 15        
|RCLPs Ownership         |  | 20%-50%    |  | 20%-50%   
|Number of Properties     |  | 187        |  | 180       
|                         |  |           
|Combined Assets          |  | $4,365,675 |  | $4,318,581
|Combined Liabilities     |  | 2,574,860  |  | 2,533,991 
|Combined Equity          |  | 1,790,815  |  | 1,784,590 
|                         |  |           
|RCLPs Share of(1):      |  |            |  |           
|Assets                   |  | $1,106,803 |  | $1,383,069
|Liabilities              |  | 646,346    |  | 818,439   

---

|(1) | Pro rata financial information is not, and is not intended to be, a presentation in accordance with
generally accepted accounting principles. However, management believes that providing such information is useful to investors in assessing the impact of its unconsolidated real estate partnership activities on the operations of RCLP, which includes
such items on a single line presentation under the equity method in its consolidated financial statements.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

We account
for all investments in which we own 50% or less and do not have a controlling financial interest using the equity method. We have determined that these investments are not variable interest entities, and therefore are subject to the voting interest
model in determining our basis of accounting. Major decisions, including property acquisitions not meeting pre-established investment criteria, dispositions, financings, annual budgets and dissolution of the ventures are subject to the approval of
all partners. Investments in real estate partnerships are primarily composed of joint ventures where we invest with three co-investment partners and a recently formed open-end real estate fund (Regency Retail Partners), as further
described below. In addition to earning our pro-rata share of net income in each of these partnerships, we receive fees for asset management, property management, investment and financing services. During the years ended December 31, 2006, 2005
and 2004, we received fees from these joint ventures of $30.8 million, $26.8 million and $9.3 million, respectively. Our investments in real estate partnerships as of December 31, 2006 and 2005 consist of the following (in thousands):



|                                              |  |           |  |      |         |      |        
|--------------------------------------------- |  | --------- |  | ---- | ------- | ---- | -------
|                                              |  | Ownership |  | 2006 |         | 2005
|Macquarie CountryWide-Regency (MCWR I)        |  | 25.00%    |  | $    | 60,651  |      | 61,375 
|Macquarie CountryWide Direct (MCWR I)         |  | 25.00%    |  |      | 6,822   |      | 7,433  
|Macquarie CountryWide-Regency II (MCWR II)(1) |  | 24.95%    |  |      | 234,378 |      | 363,563
|Macquarie CountryWide-Regency III (MCWR II)   |  | 24.95%    |  |      | 1,140   |      | 606    
|Columbia Regency Retail Partners (Columbia)   |  | 20.00%    |  |      | 36,096  |      | 36,659 
|Cameron Village LLC (Columbia)                |  | 30.00%    |  |      | 20,826  |      | 21,633 
|Columbia Regency Partners II (Columbia)       |  | 20.00%    |  |      | 11,516  |      | 2,093  
|RegCal, LLC (RegCal)                          |  | 25.00%    |  |      | 18,514  |      | 14,921 
|Regency Retail Partners (the Fund)            |  | 26.80%    |  |      | 5,139   |      |       
|Other investments in real estate partnerships |  | 50.00%    |  |      | 39,008  |      | 37,334 
|                                              |  |           |  |      |         |      |        
|Total                                         |  |           |  | $    | 434,090 |      | 545,617
|                                              |  |           |  |      |         |      |        

---

|(1) | At December 31, 2005, our ownership interest in Macquarie CountryWide-Regency II was 35% prior to
the partial sale which is described below.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------



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We co-invest with the Oregon Public Employees Retirement Fund in three joint ventures (collectively
Columbia), in which we have ownership interests of 20% or 30%. As of December 31, 2006, Columbia owned 20 shopping centers, had total assets of $558.1 million, and net income of $11.6 million for the year ended. Our share of
Columbias total assets and net income was $123.9 million and $2.3 million, respectively. Our share of Columbia represents 3.4% of our total assets and 1.2% of our net income available for common unit holders. During 2006 Columbia acquired four
shopping centers from unrelated parties for $97.0 million. We contributed $9.6 million for our proportionate share of the purchase price, which was net of $36.4 million of assumed mortgage debt and $13.3 million of financing obtained by Columbia.
Columbia did not acquire any properties in 2005 and sold two shopping centers to an unrelated party for $47.6 million at a gain of $8.9 million.

We co-invest with the California State Teachers Retirement System (CalSTRS) in a joint venture (RegCal) in which we have a 25% ownership interest. As of December 31, 2006, RegCal owned nine shopping
centers, had total assets of $182.9 million, and had net income of $1.7 million for the year ended. Our share of RegCals total assets and net income was $45.7 million and $516,613, respectively. Our share of RegCal represents 1.2% of our total
assets and less than 1% of our net income available for common unit holders, respectively. During 2006 RegCal acquired two shopping centers from unrelated parties for $37.3 million. We contributed $4.1 million for our proportionate share of the
purchase price, which was net of financing obtained by RegCal. During 2005, RegCal acquired two shopping centers from an unrelated party for a purchase price of $20.0 million. The Partnership contributed $1.7 million for its proportionate share of
the purchase price, which was net of loan financing assumed by RegCal.

We co-invest with Macquarie CountryWide Trust of Australia
(MCW) in four joint ventures, two in which we have an ownership interest of 25% (MCWR I), and two in which we have an ownership interest of 24.95% (MCWR II).

As of December 31, 2006, MCWR I owned 50 shopping centers, had total assets of $728.3 million, and net income of $18.2 million for the year ended.
Our share of MCWR Is total assets and net income was $181.5 million and $5.4 million, respectively. During 2006, MCWR I sold two shopping centers for $28.0 million to unrelated parties for a gain of $7.8 million, and acquired one shopping
center from an unrelated party for a purchase price of $25.0 million. We contributed $748,466 for our proportionate share of the purchase price, which was net of $12.5 million of assumed mortgage debt and $10.4 million in 1031 proceeds. During 2005,
MCWR I acquired one shopping center from an unrelated party for a purchase price of $24.4 million. The Partnership contributed $4.5 million for its proportionate share of the purchase price, which was net of loan financing placed on the shopping
center by MCWR I. In addition, MCWR I acquired two properties from the Partnership valued at $31.9 million, for which the Partnership received cash of $25.7 million for MCWs proportionate share. During 2005, MCWR I sold four shopping centers
to unrelated parties for $34.7 million with a gain of $582,910.

On June 1, 2005, MCWR II closed on the acquisition of a retail
shopping center portfolio (the First Washington Portfolio) for a purchase price of approximately $2.8 billion, including the assumption of approximately $68.6 million of mortgage debt and the issuance of approximately $1.6 billion of new
mortgage loans on the properties acquired. The First Washington Portfolio acquisition was accounted for as a purchase business combination by MCWR II. At December 31, 2005, MCWR II was owned 64.95% by an affiliate of MCW, 34.95% by RCLP and
0.1% by Macquarie-Regency Management, LLC (US Manager). US Manager is owned 50% by RCLP and 50% by an affiliate of Macquarie Bank Limited. On January 13, 2006, we sold a portion of our investment in MCWR II to MCW for net cash of
$113.2 million and reduced our ownership interest from 35% to 24.95%, and recorded a gain of $9.5 million on the partial sale of our interest. The proceeds from the sale were used to reduce our unsecured line of credit. At December 31, 2006,
MCWR II is owned 75% by MCWs affiliate, 24.90% by RCLP and 0.1% by US Manager. Including our share of US Manager, our effective ownership is 24.95% and is reflected as such under the equity method in the accompanying consolidated financial
statements.



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As of December 31, 2006, MCWR II owned 97 shopping centers, had total assets of $2.7 billion and a
net loss of $24.7 million for the year ended. Our share of MCWR IIs total assets and net loss was $676.0 million and $7.0 million, respectively. As a result of the significant amount of depreciation and amortization expense being recorded by
MCWR II in connection with the acquisition of the First Washington Portfolio, the joint venture may continue to report a net loss in future years, but is expected to produce positive cash flow from operations. During 2006, MCWR II sold eight
shopping centers for $122.4 million to unrelated parties for a gain of $1.5 million. MCWR II acquired four shopping centers from us for a sales price of $62.4 million, or $46.8 million on a net basis after excluding our 24.95% ownership interest.
During 2005, MCWR II sold one shopping center for $9.7 million to an unrelated party with a gain of $35,127.

Our investment in the four
joint ventures with MCW totals $303.0 million and represents 8.3% of our total assets at December 31, 2006. Our pro-rata share of the assets and net loss of these ventures was $857.5 million and $1.6 million, respectively, which represents
23.4% and less than 1% of our total assets and net income available for common unit holders, respectively.

In December, 2006, we formed
Regency Retail Partners (the Fund), an open-end, infinite-life investment fund in which we currently have an ownership interest of 26.8%. We expect to reduce our ownership interest to 20% during 2007 as other partners are admitted into
the Fund. The Fund will have the exclusive right to acquire all future RCLP-developed large format community centers upon stabilization that meet the Funds investment criteria. A community center is generally defined as a shopping center with
at least 250,000 square feet of GLA including tenant-owned GLA.

As of December 31, 2006, the Fund owned two shopping centers, had
total assets of $76.1 million and net income of $25,633 for the year ended. The Fund acquired two community shopping centers from us for a sales price of $72.6 million, or $53.1 million on a net basis after excluding our 26.8% ownership interest.
Our share of the Funds total assets and net income was $20.4 million and $6,870, respectively. Our share of the Fund represents less than 1% of our total assets and net income available for common unit holders.

Recognition of gains from sales to joint ventures is recorded on only that portion of the sales not attributable to our ownership interest. The gains and
operations are not recorded as discontinued operations because of our continuing involvement in these shopping centers. Columbia, RegCal, the joint ventures with MCW, and the Fund intend to continue to acquire retail shopping centers, some of which
they may acquire directly from us. For those properties acquired from unrelated parties, we are required to contribute our pro-rata share of the purchase price to the partnerships.

Contractual Obligations

We have debt obligations related to our mortgage loans, unsecured notes, and
our unsecured line of credit as described further below. We have shopping centers that are subject to non-cancelable long-term ground leases where a third party owns and has leased the underlying land to us to construct and/or operate a shopping
center. In addition, we have non-cancelable operating leases pertaining to office space from which we conduct our business. The table excludes obligations for approximately $3.8 million related to environmental remediation as discussed below under
Environmental Matters as the timing of the remediation is not currently known. The table also excludes obligations related to construction or development contracts because payments are only due upon the satisfactory performance under the contract.
Costs necessary to complete the 47 development projects currently in process are estimated to be $532 million and will likely be expended through 2010. The following table summarizes our debt maturities including interest, (excluding recorded debt
premiums that are not obligations), and obligations under non-cancelable operating leases as of December 31, 2006 including our pro-rata share of obligations within unconsolidated joint ventures (in thousands):



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|                        |  |      |         |      |         |      |         |      |         |      |         |               |           |       |          
|----------------------- |  | ---- | ------- | ---- | ------- | ---- | ------- | ---- | ------- | ---- | ------- | ------------- | --------- | ----- | ---------
|Contractual Obligations |  | 2007 |         | 2008 |         | 2009 |         | 2010 |         | 2011 |         | Beyond 5years |           | Total
|Notes Payable:          |  |      |         |      |         |      |         |      |         |      |         |               |           |       |          
|RCLP(1)                 |  | $    | 309,306 |      | 110,879 |      | 147,394 |      | 301,393 |      | 382,087 |               | 936,093   |       | 2,187,152
|RCLPs share of JV      |  |      | 23,337  |      | 21,918  |      | 34,868  |      | 163,854 |      | 129,460 |               | 234,839   |       | 608,276  
|                        |  |      |         |      |         |      |        
|Operating Leases:       |  |      |         |      |         |      |         |      |         |      |         |               |           |       |          
|RCLP                    |  |      | 4,740   |      | 4,478   |      | 4,322   |      | 4,169   |      | 4,094   |               | 18,055    |       | 39,858   
|RCLPs share of JV      |  |      |        |      |        |      |        |      |        |      |        |               |          |       |         
|                        |  |      |         |      |         |      |        
|Ground Leases:          |  |      |         |      |         |      |         |      |         |      |         |               |           |       |          
|RCLP                    |  |      | 1,205   |      | 534     |      | 534     |      | 541     |      | 542     |               | 23,456    |       | 26,812   
|RCLPs share of JV      |  |      | 261     |      | 261     |      | 262     |      | 270     |      | 269     |               | 13,383    |       | 14,706   
|                        |  |      |         |      |         |      |         |      |         |      |         |               |           |       |          
|Total                   |  | $    | 338,849 |      | 138,070 |      | 187,380 |      | 470,227 |      | 516,452 |               | 1,225,826 |       | 2,876,804
|                        |  |      |         |      |         |      |         |      |         |      |         |               |           |       |          

---

|(1) | Amounts include interest payments based on contractual terms and current interest rates for variable
rate debt.
|--- | ---------------------------------------------------------------------------------------------------------------

Notes Payable

Outstanding debt at December 31, 2006 and 2005 consists of the following (in thousands):



|                             |  |      |           |      |          
|---------------------------- |  | ---- | --------- | ---- | ---------
|                             |  | 2006 |           | 2005
|Notes Payable:               |  |      |           |      |          
|Fixed rate mortgage loans    |  | $    | 186,897   |      | 175,403  
|Variable rate mortgage loans |  |      | 68,662    |      | 77,906   
|Fixed rate unsecured loans   |  |      | 1,198,827 |      | 1,198,633
|                             |  |      |           |      |          
|Total notes payable          |  |      | 1,454,386 |      | 1,451,942
|Unsecured Line of Credit     |  |      | 121,000   |      | 162,000  
|                             |  |      |           |      |          
|Total                        |  | $    | 1,575,386 |      | 1,613,942
|                             |  |      |           |      |          

Mortgage loans are secured and may be prepaid, but could be subject to yield maintenance premiums.
Mortgage loans are generally due in monthly installments of interest and principal, and mature over various terms through 2017. Variable interest rates on mortgage loans are currently based on LIBOR, plus a spread in a range of 90 to 130 basis
points. Fixed interest rates on mortgage loans range from 5.22% to 8.95% and average 6.53%.

At December 31, 2006, we had an unsecured
revolving line of credit (the Line) with an outstanding balance of $121 million. Contractual interest rates on the Line, which are based on LIBOR plus .75%, were 6.125% and 5.125% at December 31, 2006 and 2005, respectively. The
spread that we pay on the Line is dependent upon maintaining specific investment-grade ratings. We are also required to comply, and are in compliance, with certain financial covenants such as Minimum Net Worth, Total Liabilities to Gross Asset Value
(GAV), Recourse Secured Debt to GAV, Fixed Charge Coverage and other covenants customary with this type of unsecured financing. The Line is used primarily to finance the development and acquisition of real estate, but is also available
for general working-capital purposes.



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In February, 2007, we entered into a new loan agreement under the Line which increased the commitment to
$600 million with the right to increase the facility size to $750 million. The contractual interest rate will be reduced to LIBOR plus .55% based upon our current debt ratings and will have an initial term of 48 months followed by a 12 month
extension option. The Line will continue to be subject to similar financial covenants and investment-grade ratings as exist currently.

As
of December 31, 2006, scheduled principal repayments on notes payable and the Line were as follows (in thousands):



|                                     |  |                            |        |                     |           |               |          
|------------------------------------ |  | -------------------------- | ------ | ------------------- | --------- | ------------- | ---------
|Scheduled Principal Payments by Year |  | ScheduledPrincipalPayments |        | Term LoanMaturities |           | TotalPayments
|2007 (includes the Line)             |  | $                          | 3,505  |                     | 213,134   |               | 216,639  
|2008                                 |  |                            | 3,352  |                     | 19,618    |               | 22,970   
|2009                                 |  |                            | 3,352  |                     | 53,088    |               | 56,440   
|2010                                 |  |                            | 3,190  |                     | 177,208   |               | 180,398  
|2011                                 |  |                            | 3,191  |                     | 251,123   |               | 254,314  
|Beyond 5 Years                       |  |                            | 8,764  |                     | 834,292   |               | 843,056  
|Unamortized debt premiums            |  |                            |       |                     | 1,569     |               | 1,569    
|                                     |  |                            |        |                     |           |               |          
|Total                                |  | $                          | 25,354 |                     | 1,550,032 |               | 1,575,386
|                                     |  |                            |        |                     |           |               |          

Our investments in real estate partnerships had notes and mortgage loans payable of $2.4 billion
at December 31, 2006, which mature through 2028. Our proportionate share of these loans was $610.8 million, of which 94.7% had average fixed interest rates of 5.2% and the remaining had variable interest rates based on LIBOR plus a spread in a
range of 90 to 125 basis points. The loans are primarily non-recourse, but for those that are guaranteed by a joint venture, our liability does not extend beyond our ownership percentage of the joint venture.

We are exposed to capital market risk such as changes in interest rates. In order to manage the volatility related to interest-rate risk, we
originate new debt with fixed interest rates, or we may enter into interest-rate hedging arrangements. We do not utilize derivative financial instruments for trading or speculative purposes. We engage outside experts who evaluate and make
recommendations about hedging strategies when appropriate. We account for derivative instruments under Statement of Financial Accounting Standards SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities as amended
(Statement 133). On March 10, 2006, we entered into four forward-starting interest rate swaps totaling $396.7 million with fixed rates of 5.399%, 5.415%, 5.399% and 5.415%. The Partnership designated these swaps as cash flow hedges
to fix the rate on $400 million of new financing expected to occur in 2010 and 2011 the proceeds of which will be used to repay maturing debt at that time. The change in fair value of these swaps from inception was a liability of $2.9 million at
December 31, 2006, and is recorded in accounts payable and other liabilities in the accompanying consolidated balance sheet and in accumulated other comprehensive income (loss) in the consolidated statement of changes in partners capital
and comprehensive income (loss).

At December 31, 2006, 88.0% of our total debt had fixed interest rates, compared with 85.1% at
December 31, 2005. We intend to limit the percentage of variable interest-rate debt to be no more than 30% of total debt, which we believe to be an acceptable risk. Currently, our variable rate debt represented 12.0% of our total debt. Based
upon the variable interest-rate debt outstanding at December 31, 2006, if variable interest rates were to increase by 1%, our annual interest expense would increase by $1.9 million.



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Equity Transactions

From time to time, we issue equity in the form of exchangeable operating partnership units or preferred units of RCLP, or in the form of common or preferred stock of Regency Centers Corporation. As previously
discussed, these sources of long-term equity financing allow us to fund our growth while maintaining a conservative capital structure.

Preferred Units

We have issued Preferred Units in various amounts since 1998, the net proceeds of which were used to reduce the
balance of the Line. We issue Preferred Units primarily to institutional investors in private placements. Generally, the Preferred Units may be exchanged by the holders for Cumulative Redeemable Preferred Stock at an exchange rate of one share for
one unit. The Preferred Units and the related Preferred Stock are not convertible into Regency common stock. At December 31, 2006 and 2005, only the Series D Preferred Units were outstanding with a face value of $50 million and a fixed
distribution rate of 7.45%. These Units may be called by us in 2009, and have no stated maturity or mandatory redemption. Included in the Series D Preferred Units are original issuance costs of $842,023 that will be expensed if they are redeemed in
the future.

Preferred Units of General Partner and Preferred Stock

As of December 31, 2006 we had three series of Preferred stock outstanding, two of which
underlie depositary shares held by the public. The depositary shares each represent 1/10thof a share of the
underlying preferred stock and have a liquidation preference of $25 per depository share. In 2003, we issued 7.45% Series 3 Cumulative Redeemable Preferred Stock underlying 3 million depositary shares. In 2004, we issued 7.25% Series 4
Cumulative Redeemable preferred stock underlying 5 million depositary shares. In 2005, we issued 3 million shares, or $75 million of 6.70% Series 5 Preferred Stock, with a liquidation preference of $25 per share. All series of Preferred
Stock are perpetual, are not convertible into common stock of the Company and are redeemable at par upon our election five years after the issuance date. The terms of the Preferred Stock do not contain any unconditional obligations that would
require us to redeem the securities at any time or for any purpose.

Common Stock

On April 5, 2005, Regency entered into an agreement to sell 4,312,500 shares of common stock to an affiliate of Citigroup Global Markets Inc.
(Citigroup) at $46.60 per share, in connection with a forward sale agreement (the Forward Sale Agreement). On August 1, 2005, Regency issued 3,782,500 shares to Citigroup for net proceeds of approximately $175.5 million
and on September 7, 2005, the remaining 530,000 shares were issued for net proceeds of $24.4 million. The proceeds from these sales were used to reduce the unsecured line of credit and redeem the Series E and Series F Preferred Units.

Critical Accounting Policies and Estimates

Knowledge about our accounting policies is necessary for a complete understanding of our financial results, and discussion and analysis of these results. The preparation of our financial statements requires that we make certain estimates
that impact the balance of assets and liabilities at a financial statement date and the reported amount of income and expenses during a financial reporting period. These accounting estimates are based upon, but not limited to, our judgments about
historical results, current economic activity, and industry accounting standards. They are considered to be critical because of their significance to the financial statements and the possibility that future events may differ from those judgments, or
that the use of different assumptions could result in materially different estimates. We review these estimates on a periodic basis to ensure reasonableness. However, the amounts we may ultimately realize could differ from such estimates.



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Revenue Recognition and Tenant Receivables  Tenant receivables represent revenues recognized in our
financial statements, and include base rent, percentage rent, and expense recoveries from tenants for common area maintenance costs, insurance and real estate taxes. We analyze tenant receivables, historical bad debt levels, customer credit
worthiness and current economic trends when evaluating the adequacy of our allowance for doubtful accounts. In addition, we analyze the accounts of tenants in bankruptcy, and we estimate the recovery of pre-petition and post-petition claims. Our
reported net income is directly affected by our estimate of the recoverability of tenant receivables.

Recognition of Gains from the Sales
of Real Estate  We account for profit recognition on sales of real estate in accordance with SFAS Statement No. 66, Accounting for Sales of Real Estate. Profits from sales of real estate will not be recognized by us unless
(i) a sale has been consummated; (ii) the buyers initial and continuing investment is adequate to demonstrate a commitment to pay for the property; (iii) we have transferred to the buyer the usual risks and rewards of ownership;
and (iv) we do not have significant continuing involvement with the property. Recognition of gains from sales to joint ventures is recorded on only that portion of the sales not attributable to our ownership interest.

Capitalization of Costs  We capitalize the acquisition of land, the construction of buildings and other specifically identifiable development costs
incurred by recording them into Properties in Development on our consolidated balance sheets. Other development costs include pre-development costs essential to the development of the property, as well as, interest, real estate taxes,
and direct employee costs incurred during the development period. Pre-development costs are incurred prior to land acquisition during the due diligence phase and include contract deposits, legal, engineering and other professional fees related to
evaluating the feasibility of developing a shopping center. If we were to determine that the development of a specific project undergoing due diligence was no longer probable, we would immediately expense all related capitalized pre-development
costs not considered recoverable. Interest costs are capitalized into each development project based on applying our weighted average borrowing rate to that portion of the actual development costs expended. We cease interest capitalization when the
property is available for occupancy upon substantial completion of tenant improvements. We have a large staff of employees who support the due diligence, land acquisition, construction, leasing, financial analysis and accounting of our development
program. All direct internal costs related to development activities are capitalized as part of each development project. If future accounting standards limit the amount of internal costs that may be capitalized, or if our development activity were
to decline significantly without a proportionate decrease in internal costs, we could incur a significant increase in our operating expenses.

Real Estate Acquisitions  Upon acquisition of operating real estate properties, we estimate the fair value of acquired tangible assets (consisting of land, building and improvements), and identified intangible assets, liabilities
(consisting of above- and below-market leases, in-place leases and tenant relationships) and assumed debt in accordance with SFAS No. 141, Business Combinations (Statement 141). Based on these estimates, we allocate the
purchase price to the applicable assets and liabilities. We utilize methods similar to those used by independent appraisers in estimating the fair value of acquired assets and liabilities. We evaluate the useful lives of amortizable intangible
assets each reporting period and account for any changes in estimated useful lives over the revised remaining useful life.

Valuation of
Real Estate Investments  Our long-lived assets, primarily real estate held for investment, are carried at cost unless circumstances indicate that the carrying value of the assets may not be recoverable. We review long-lived assets for
impairment whenever events or changes in circumstances indicate such an evaluation is warranted. The review involves a number of assumptions and estimates used to determine whether impairment exists. Depending on the asset, we use varying methods
such as i) estimating future cash flows, ii) determining resale values by market, or iii) applying a capitalization rate to net operating income using prevailing rates in a given market. These methods of determining fair value can fluctuate
significantly as a result of a number of factors, including changes in the general economy of those markets in which we operate, tenant credit quality and demand for new retail stores. If we determine that the carrying amount of a property is not
recoverable and exceeds its fair value, we will write down the asset to fair value for held-and-used assets and to fair value less costs to sell for held-for-sale assets.



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Discontinued Operations  The application of current accounting principles that govern the
classification of any of our properties as held-for-sale on the balance sheet, or the presentation of results of operations and gains on the sale of these properties as discontinued, requires management to make certain significant judgments. In
evaluating whether a property meets the criteria set forth by SFAS No. 144 Accounting for the Impairment and Disposal of Long-Lived Assets (Statement 144), the Partnership makes a determination as to the point in time
that it can be reasonably certain that a sale will be consummated. Given the nature of all real estate sales contracts, it is not unusual for such contracts to allow potential buyers a period of time to evaluate the property prior to formal
acceptance of the contract. In addition, certain other matters critical to the final sale, such as financing arrangements often remain pending even upon contract acceptance. As a result, properties under contract may not close within the expected
time period, or may not close at all. Due to these uncertainties, it is not likely that the Partnership can meet the criteria of Statement 144 prior to the sale formally closing. Therefore, any properties categorized as held for sale represent only
those properties that management has determined are likely to close within the requirements set forth in Statement 144. The Partnership also makes judgments regarding the extent of involvement it will have with a property subsequent to its sale, in
order to determine if the results of operations and gain on sale should be reflected as discontinued. Consistent with Statement 144, any property sold to an entity in which the Partnership has significant continuing involvement (most often joint
ventures) is not considered to be discontinued. In addition, any property which the Partnership sells to an unrelated third party, but retains a property or asset management function, is also not considered discontinued. Therefore, only properties
sold, or to be sold, to unrelated third parties that the Partnership, in its judgment, has no significant continuing involvement with are classified as discontinued.

Investments in Real Estate Joint Ventures  In addition to owning real estate directly, we invest in real estate through our co-investment joint ventures. Joint venturing provides us with a capital source to
acquire real estate, and to earn our pro-rata share of the net income from the joint ventures in addition to fees for services. As asset and property manager, we conduct the business of the Unconsolidated Properties held in the joint ventures in the
same way that we conduct the business of the Consolidated Properties that are wholly-owned; therefore, the Critical Accounting Policies as described are also applicable to our investments in the joint ventures. We account for all investments in
which we own 50% or less and do not have a controlling financial interest using the equity method. We have determined that these investments are not variable interest entities as defined in the FASB Interpretation No. 46(R) Consolidation
of Variable Interest Entities and do not require consolidation under EITF Issue No. 04-5 Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited
Partners Have Certain Rights, and therefore, are subject to the voting interest model in determining our basis of accounting. Major decisions, including property acquisitions and dispositions, financings, annual budgets and dissolution of the
ventures are subject to the approval of all partners, or in the case of The Fund, its advisory committee.

Income Tax Status  The
prevailing assumption underlying the operation of our business is that Regency will continue to operate in order to qualify as a REIT, as defined under the Internal Revenue Code. We are required to meet certain income and asset tests on a periodic
basis to ensure that we continue to qualify as a REIT. As a REIT, we are allowed to reduce taxable income by all or a portion of our distributions to stockholders. We evaluate the transactions that we enter into and determine their impact on our
REIT status. Determining our taxable income, calculating distributions, and evaluating transactions requires us to make certain judgments and estimates as to the positions we take in our interpretation of the Internal Revenue Code. Because many
types of transactions are susceptible to varying interpretations under federal and state income tax laws and regulations, our positions are subject to change at a later date upon final determination by the taxing authorities.



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Recent Accounting Pronouncements

In September 2006, the SECs staff issued Staff Accounting Bulletin (SAB) No. 108 Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial
Statements. This Bulletin requires that registrants quantify errors using both a balance sheet and income statement approach and evaluate whether either approach results in a misstated amount that, when all relevant quantitative and
qualitative factors are considered, is material. The guidance in this Bulletin must be applied to financial reports covering the first fiscal year ending after November 15, 2006. The adoption of SAB 108 did not have a material affect on our
consolidated financial statements.

In September 2006, the FASB issued Statement No. 157 Fair Value Measurements. This
Statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. This Statement applies to accounting pronouncements that require or
permit fair value measurements, except for share-based payments transactions under FASB Statement No. 123(R). This Statement is effective for financial statements issued for fiscal years beginning after November 15, 2007. As Statement
No. 157 does not require any new fair value measurements or remeasurements of previously computed fair values, we do not believe adoption of this Statement will have a material effect on our consolidated financial statements.

In June 2006, the FASB issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement
No. 109 (FIN 48). FIN 48 clarifies the accounting and reporting for uncertainties in income tax law. This Interpretation prescribes a comprehensive model for the financial statement recognition, measurement,
presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. Under FIN 48, tax positions shall initially be recognized in the financial statements when it is more likely than not the position will
be sustained upon examination by the tax authorities. Such tax positions shall initially and subsequently be measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax
authority assuming full knowledge of the position and relevant facts. We will adopt this Interpretation in the first quarter of 2007. The cumulative effects, if any, of applying this Interpretation will be recorded as an adjustment to retained
earnings as of the beginning of the period of adoption. We have begun the process of evaluating the expected effect of FIN 48 and the adoption is not expected to have a material effect on our consolidated financial statements.

In April 2006, the FASB issued FSP FIN 46(R)-6, Determining the Variability to Be Considered in Applying FASB Interpretation No. 46(R),
that became effective beginning in the third quarter of 2006. FSP FIN No. 46(R)-6 clarifies that the variability to be considered in applying Interpretation 46(R) shall be based on an analysis of the design of the variable interest entity. The
adoption of this FSP has not had a material effect on our consolidated financial statements.

In October 2005, the FASB Issued Staff
Position No. FAS 13-1 Accounting for Rental Costs Incurred during a Construction Period. This FSP requires that rental costs associated with ground or building operating leases incurred during a construction period be recognized as
rental expense. However, FSP No. FAS 13-1 does not address lessees that account for the sale or rental of real estate projects under FASB Statement No. 67 Accounting for Costs and Initial Rental Operations of Real Estate Projects,
and therefore we will continue to apply FASB Statement No. 67.



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Results from Operations

Comparison of the years ended December 31, 2006 to 2005

At December 31, 2006, on a Combined Basis, we were operating or
developing 405 shopping centers, as compared to 393 shopping centers at the end of 2005. We identify our shopping centers as either development properties or operating properties. Development properties are defined as properties that are in the
construction or initial lease-up process and have not reached their initial full occupancy (reaching full occupancy generally means achieving at least 93% leased and rent paying on newly constructed or renovated GLA). At December 31, 2006, on a
Combined Basis, we were developing 47 properties, as compared to 31 properties at the end of 2005.

Our revenues increased by $39.7
million, or 10%, to $420.3 million in 2006 as summarized in the following table (in thousands):



|                                                                   |  |      |         |      |         |   |        |       
|------------------------------------------------------------------ |  | ---- | ------- | ---- | ------- | - | ------ | ------
|                                                                   |  | 2006 |         | 2005 |         |   | Change
|Minimum rent                                                       |  | $    | 295,391 |      | 273,405 |   |        | 21,986
|Percentage rent                                                    |  |      | 4,428   |      | 4,364   |   |        | 64    
|Recoveries from tenants                                            |  |      | 86,134  |      | 77,756  |   |        | 8,378 
|Management and other fees                                          |  |      | 31,805  |      | 28,019  |   |        | 3,786 
|Equity in income (loss) of investments in real estate partnerships |  |      | 2,580   |      | (2,908  | ) |        | 5,488 
|                                                                   |  |      |         |      |         |   |        |       
|Total revenues                                                     |  | $    | 420,338 |      | 380,636 |   |        | 39,702
|                                                                   |  |      |         |      |         |   |        |       

The increase in revenues was primarily related to higher minimum rent from growth in rental rates
from renewing expiring leases or re-leasing vacant space in the operating properties, and from new minimum rent generated from recently completed developments commencing operations in the current year. In addition to collecting minimum rent from our
tenants, we also collect percentage rent based upon their sales volumes. Recoveries from tenants represents reimbursements from tenants for their pro-rata share of the operating, maintenance and real estate tax expenses that we incur to operate our
shopping centers.

We earn fees for asset management, property management, leasing, investing and financing services that we provide to our
joint ventures and third parties summarized as follows (in thousands):



|                             |  |      |        |      |        |        |        |  
|---------------------------- |  | ---- | ------ | ---- | ------ | ------ | ------ | -
|                             |  | 2006 |        | 2005 |        | Change |       
|Property management fees     |  | $    | 11,041 |      | 7,496  |        | 3,545  |  
|Asset management fees        |  |      | 5,977  |      | 5,106  |        | 871    |  
|Commissions                  |  |      | 3,104  |      | 947    |        | 2,157  |  
|Investing and financing fees |  |      | 11,683 |      | 14,470 |        | (2,787 | )
|                             |  |      |        |      |        |        |        |  
|                             |  | $    | 31,805 |      | 28,019 |        | 3,786  |  
|                             |  |      |        |      |        |        |        |  

Property management fees increased in 2006 as a result of managing the First Washington Portfolio
for MCWR II, which was acquired on June 1, 2005. This also resulted in higher leasing commissions earned during 2006. Investing and financing fees are transaction based and not necessarily recurring. The fees earned in 2005 related to the
initial acquisition of the First Washington Portfolio by MCWR II. During 2006, we earned additional fees from MCWR II for achieving certain income performance results related to the First Washington Portfolio although lower than the amount earned in
2005.



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##### Table of Contents

Our equity in income of real estate partnerships (joint ventures) increased $5.5 million to $2.6 million
in 2006 as follows (in thousands):



|                                              |  |      |        |   |      |         |   |        |        |  
|--------------------------------------------- |  | ---- | ------ | - | ---- | ------- | - | ------ | ------ | -
|                                              |  | 2006 |        |   | 2005 |         |   | Change |       
|Macquarie CountryWide-Regency (MCWR I)        |  | $    | 4,747  |   |      | 1,601   |   |        | 3,146  |  
|Macquarie CountryWide Direct (MCWR I)         |  |      | 615    |   |      | 578     |   |        | 37     |  
|Macquarie CountryWide-Regency II (MCWR II)    |  |      | (7,005 | ) |      | (11,228 | ) |        | 4,223  |  
|Macquarie CountryWide-Regency III (MCWR II)   |  |      | (38    | ) |      | (47     | ) |        | 9      |  
|Columbia Regency Retail Partners (Columbia)   |  |      | 2,350  |   |      | 4,241   |   |        | (1,891 | )
|Cameron Village LLC (Columbia)                |  |      | (119   | ) |      | (98     | ) |        | (21    | )
|Columbia Regency Partners II (Columbia)       |  |      | 62     |   |      | 63      |   |        | (1     | )
|RegCal, LLC (RegCal)                          |  |      | 517    |   |      | 609     |   |        | (92    | )
|Regency Retail Partners (the Fund)            |  |      | 7      |   |      |        |   |        | 7      |  
|Other investments in real estate partnerships |  |      | 1,444  |   |      | 1,373   |   |        | 71     |  
|                                              |  |      |        |   |      |         |   |        |        |  
|Total                                         |  | $    | 2,580  |   |      | (2,908  | ) |        | 5,488  |  
|                                              |  |      |        |   |      |         |   |        |        |  

The increase was primarily a result of MCWR II earning revenues for a full year from the First
Washington Portfolio as compared to seven months during 2005 and incurring lower amortization expense in the First Washington Portfolio during 2006. MCWR I recorded higher gains in 2006 from the sale of real estate as compared to 2005.

Our operating expenses increased by $35.0 million, or 17%, to $240.5 million in 2006 related to increased operating and maintenance costs, general and
administrative costs and depreciation expense, as further described below. The following table summarizes our operating expenses (in thousands):



|                                             |  |      |         |      |         |        |       
|-------------------------------------------- |  | ---- | ------- | ---- | ------- | ------ | ------
|                                             |  | 2006 |         | 2005 |         | Change
|Operating, maintenance and real estate taxes |  | $    | 94,405  |      | 88,062  |        | 6,343 
|General and administrative                   |  |      | 45,495  |      | 37,815  |        | 7,680 
|Depreciation and amortization                |  |      | 84,694  |      | 76,925  |        | 7,769 
|Other expenses                               |  |      | 15,927  |      | 2,758   |        | 13,169
|                                             |  |      |         |      |         |        |       
|Total operating expenses                     |  | $    | 240,521 |      | 205,560 |        | 34,961
|                                             |  |      |         |      |         |        |       

The increase in operating, maintenance, and real estate taxes was primarily due to shopping center
developments that were recently completed and did not incur operating expenses for a full 12 months during the previous year, and to general price increases incurred by the operating properties. On average, approximately 80% of these costs are
recovered from our tenants as expense reimbursements and included in our revenues.

The increase in general and administrative expense is
related to additional salary costs for new employees hired to manage the First Washington Portfolio under a property management agreement with MCWR II as well as staffing increases related to increases in our shopping center development program.

The increase in depreciation and amortization expense is primarily related to new development properties recently completed and placed in
service in the current year, or if placed in service in the previous year, were not operational for a full 12 months.

The increase in
other expenses pertains to an increase in the income tax provision of Regency Realty Group, Inc. (RRG), our taxable REIT subsidiary, from $493,709 in 2005 to $11.8 million in 2006. RRG is subject to federal and state income taxes and
files separate tax returns. RCLP also incurred intangible taxes of $1.8 million in 2006 as compared to $352,416 in 2005.



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Our interest expense, net of interest capitalization decreased $6.8 million to $79.7 million in 2006 from
$86.5 million in 2005. This decrease is attributable to a higher level of interest incurred that is directly related to the construction of new shopping centers and therefore capitalized into properties under development. During 2006, we capitalized
interest of $24.0 million as compared to $12.4 million in 2005. The average balance of development in process was $553 million in 2006 as compared to $390 million in 2005. Average interest rates on our outstanding debt increased to 6.45% at
December 31, 2006 compared to 6.34% at December 31, 2005. Our weighted average outstanding debt at December 31, 2006 and 2005 was $1.6 billion.

Gains from the sale of real estate were $65.6 million in 2006 as compared to $19.0 million in 2005. 2006 includes $20.2 million from the sale of 30 out-parcels for net proceeds of $53.5 million, $35.9 million from the
sale of six shopping centers to joint ventures for net proceeds of $122.7 million; and a $9.5 million gain related to the partial sale of our interest in MCWR II as discussed previously. 2005 includes $8.7 million in gains from the sale of 26
out-parcels for net proceeds of $29.0 million and $10.3 million in gains related to the sale of three development properties and one operating property. These gains are included in continuing operations rather than discontinued operations because
they were either properties that had no operating income, or they were properties sold to joint ventures where we have continuing involvement through our equity investment.

We review our real estate portfolio for impairment whenever events or changes in circumstances indicate that we may not be able to recover the carrying
amount of an asset. We determine whether impairment has occurred by comparing the propertys carrying value to an estimate of fair value based upon methods described in our Critical Accounting Policies. In the event a property is impaired, we
write down the asset to fair value for held-and-used assets and to fair value less costs to sell for held-for- sale assets. During 2006 and 2005 we established provisions for loss of $500,000 and $550,000 respectively, to
adjust operating properties to their estimated fair values.

Income from discontinued operations was $64.2 million in 2006 related to eight
operating and three development properties sold to unrelated parties for net proceeds of $149.6 million. Income from discontinued operations was $66.8 million in 2005 related to nine operating and five development properties sold to unrelated
parties for net proceeds of $175.2 million and to the operations of shopping centers sold or classified as held-for-sale in 2006 and 2005. In compliance with Statement 144, if we sell an asset in the current year, we are required to reclassify its
operating income into discontinued operations for all prior periods. This practice results in a reclassification of amounts previously reported as continuing operations into discontinued operations. Our income from discontinued operations is shown
net of income taxes totaling $3.6 million for the year ended December 31, 2005.

Net income for common unit holders increased $52.5
million to $201.7 million in 2006 as compared with $149.2 million in 2005 primarily related to increases in revenues described above and higher gains recognized from sale of real estate. Diluted earnings per unit was $2.89 in 2006 as compared to
$2.23 in 2005 or 30% higher.

Comparison of the years ended December 31, 2005 to 2004

At December 31, 2005, on a Combined Basis, we were operating or developing 393 shopping centers, as compared to 291 shopping centers at the end of
2004. At December 31, 2005, on a Combined Basis, we were developing 31 properties, as compared to 34 properties at the end of 2004.



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##### Table of Contents

Our revenues increased by $23 million, or 6%, to $380.6 million in 2005 as summarized in the following
table (in thousands):



|                                                                   |  |      |         |   |      |         |        |         |  
|------------------------------------------------------------------ |  | ---- | ------- | - | ---- | ------- | ------ | ------- | -
|                                                                   |  | 2005 |         |   | 2004 |         | Change |        
|Minimum rent                                                       |  | $    | 273,405 |   |      | 259,684 |        | 13,721  |  
|Percentage rent                                                    |  |      | 4,364   |   |      | 3,738   |        | 626     |  
|Recoveries from tenants                                            |  |      | 77,756  |   |      | 73,362  |        | 4,394   |  
|Management and other fees                                          |  |      | 28,019  |   |      | 10,663  |        | 17,356  |  
|Equity in (loss) income of investments in real estate partnerships |  |      | (2,908  | ) |      | 10,194  |        | (13,102 | )
|                                                                   |  |      |         |   |      |         |        |         |  
|Total revenues                                                     |  | $    | 380,636 |   |      | 357,641 |        | 22,995  |  
|                                                                   |  |      |         |   |      |         |        |         |  

The increase in revenues was primarily related to higher minimum rent from growth in rental rates
from renewing expiring leases or re-leasing vacant space in the operating properties, and from new minimum rent generated from recently completed developments commencing operations in the current year. In addition to collecting minimum rent from our
tenants, we also collect percentage rent based upon their sales volumes. During 2005, increased tenant sales volumes resulted in a 17% increase in our percentage rent. Recoveries from tenants represents reimbursements from tenants for their pro-rata
share of the operating, maintenance and real estate tax expenses that we incur to operate our shopping centers.

We earn fees for asset
management, property management, leasing, investing and financing services that we provide to our joint ventures and third parties summarized as follows (in thousands):



|                             |  |      |        |      |        |        |        |  
|---------------------------- |  | ---- | ------ | ---- | ------ | ------ | ------ | -
|                             |  | 2005 |        | 2004 |        | Change |       
|Property management fees     |  | $    | 7,496  |      | 3,777  |        | 3,719  |  
|Asset management fees        |  |      | 5,106  |      | 3,101  |        | 2,005  |  
|Commissions                  |  |      | 947    |      | 1,263  |        | (316   | )
|Investing and financing fees |  |      | 14,470 |      | 2,522  |        | 11,948 |  
|                             |  |      |        |      |        |        |        |  
|                             |  | $    | 28,019 |      | 10,663 |        | 17,356 |  
|                             |  |      |        |      |        |        |        |  

As a result of MCWR II acquiring the First Washington Portfolio on June 1, 2005, we recorded
$13.8 million in fees related to investment and financing services that we provided to MCWR II. MCWR II paid us approximately $21.2 million for these services, however, the amount recognized as fee income includes only that portion of fees paid by
the venture not owned by us. We managed the First Washington Portfolio for a period of seven months during 2005 and received property management fees from MCWR II, which accounted for the majority of the increase in property management fees above
2004. We also received higher property management and asset management fees from our other joint ventures during 2005 related to acquisitions that they completed during 2004 and 2005.



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##### Table of Contents

Our equity in income of real estate partnerships (joint ventures) declined $13.1 million to a loss of
$2.9 million in 2005 as follows (in thousands):



|                                              |  |      |         |   |      |        |        |         |  
|--------------------------------------------- |  | ---- | ------- | - | ---- | ------ | ------ | ------- | -
|                                              |  | 2005 |         |   | 2004 |        | Change |        
|Macquarie CountryWide-Regency (MCWR I)        |  | $    | 1,601   |   |      | 2,997  |        | (1,396  | )
|Macquarie CountryWide Direct (MCWR I)         |  |      | 578     |   |      | 535    |        | 43      |  
|Macquarie CountryWide-Regency II (MCWR II)    |  |      | (11,228 | ) |      |       |        | (11,228 | )
|Macquarie CountryWide-Regency III (MCWR II)   |  |      | (47     | ) |      |       |        | (47     | )
|Columbia Regency Retail Partners (Columbia)   |  |      | 4,241   |   |      | 4,103  |        | 138     |  
|Cameron Village LLC (Columbia)                |  |      | (98     | ) |      | 8      |        | (106    | )
|Columbia Regency Partners II (Columbia)       |  |      | 63      |   |      | 1      |        | 62      |  
|RegCal, LLC (RegCal)                          |  |      | 609     |   |      | 18     |        | 591     |  
|Other investments in real estate partnerships |  |      | 1,373   |   |      | 2,532  |        | (1,159  | )
|                                              |  |      |         |   |      |        |        |         |  
|Total                                         |  | $    | (2,908  | ) |      | 10,194 |        | (13,102 | )
|                                              |  |      |         |   |      |        |        |         |  

The loss was a result of the significant amount of depreciation and amortization expense recorded
by MCWR II related to its acquisition of the First Washington Portfolio on June 1, 2005. Excluding the depreciation and amortization, MCWR II produced positive cash flow from operations during the period.

Our operating expenses increased by $10.1 million, or 5%, to $205.6 million in 2005 related to increased operating and maintenance costs, general and
administrative costs and depreciation expense, as further described below. The following table summarizes our operating expenses (in thousands):



|                                             |  |      |         |      |         |        |        |  
|-------------------------------------------- |  | ---- | ------- | ---- | ------- | ------ | ------ | -
|                                             |  | 2005 |         | 2004 |         | Change |       
|Operating, maintenance and real estate taxes |  | $    | 88,062  |      | 84,340  |        | 3,722  |  
|General and administrative                   |  |      | 37,815  |      | 30,282  |        | 7,533  |  
|Depreciation and amortization                |  |      | 76,925  |      | 72,769  |        | 4,156  |  
|Other expenses                               |  |      | 2,758   |      | 8,043   |        | (5,285 | )
|                                             |  |      |         |      |         |        |        |  
|Total operating expenses                     |  | $    | 205,560 |      | 195,434 |        | 10,126 |  
|                                             |  |      |         |      |         |        |        |  

The increase in operating, maintenance, and real estate taxes was primarily due to shopping center
developments that were recently completed and did not incur operating expenses for a full 12 months during the previous year, and to general price increases incurred by the operating properties. On average, approximately 80% of these costs are
recovered from our tenants as expense reimbursements and included in our revenues.

The increase in general and administrative expense is
related to additional salary costs for new employees necessary to manage the First Washington Portfolio under a property management agreement with MCWR II and higher stock based compensation expenses associated with the early adoption of Statement
123(R), which requires the expensing of stock options. During 2005, we recorded compensation expense associated with stock options of $1.4 million.

The increase in depreciation and amortization expense is primarily related to new development properties recently completed and placed in service in the current year, or if placed in service in the previous year, were not operational for a
full 12 months.

The reduction in other expenses pertains to a decline in the income tax provision of RRG from $6.5 million in 2004 to
$493,709 in 2005.



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Our interest expense, net of interest capitalization, increased $6.8 million to $86.5 million in 2005
from $79.7 million in 2004 primarily related to the financing of our investment in MCWR II. During 2005, we capitalized interest of $12.4 million as compared to $11.2 million in 2004. Interest incurred that is directly related to the construction of
new shopping centers is capitalized into properties under development. On June 1, 2005 we borrowed $275 million on the Bridge Loan and $122 million on the Line to fund our investment. During July and August, we repaid the Bridge Loan and
reduced the Line using a portion of the proceeds from the $200 million Forward Sale Agreement, a $75 million preferred stock offering and the issuance of $350 million of 5.48% fixed rate debt. Average interest rates on our outstanding debt increased
to 6.34% at December 31, 2005 compared to 6.24% at December 31, 2004. Our weighted average outstanding debt at December 31, 2005 was $1.6 billion compared to $1.5 billion at December 31, 2004.

Gains from the sale of operating properties and properties in development were $19.0 million in 2005 as compared to $39.4 million in 2004. Included in
2005 are gains of $8.7 million from the sale of 26 out-parcels for net proceeds of $29.0 million and gains of $10.3 million related to the sale of three development properties and one operating property. Included in 2004 are gains of $18.9 million
from the sale of 41 out-parcels for net proceeds of $60.4 million and gains of $20.5 million from shopping centers sold. These gains are included in continuing operations rather than discontinued operations because they were either properties that
had no operating income, or they were properties sold to joint ventures where we have continuing involvement through our equity investment.

We review our real estate portfolio for impairment whenever events or changes in circumstances indicate that we may not be able to recover the carrying amount of an asset. We determine whether impairment has occurred by comparing the
propertys carrying value to an estimate of fair value based upon methods described in our Critical Accounting Policies. In the event a property is impaired, we write down the asset to fair value for held-and-used assets and to fair
value less costs to sell for held-for- sale assets. During 2005 and 2004 we established provisions for loss of $550,000 and $810,000 respectively, to adjust operating properties to their estimated fair values. The provision for loss on
properties subsequently sold to third parties is included in operating income from discontinued operations.

Income from discontinued
operations was $66.8 million in 2005 related to 14 properties sold to unrelated parties for net proceeds of $175.2 million and four properties classified as held-for-sale. Income from discontinued operations was $37.6 million in 2004 related to the
operations of shopping centers sold or classified as held-for-sale in 2005 and 2004. In compliance with Statement 144, if we sell an asset in the current year, we are required to reclassify its operating income into discontinued operations for all
prior periods. This practice results in a reclassification of amounts previously reported as continuing operations into discontinued operations. Our income from discontinued operations is shown net of income taxes totaling $3.6 million and $2.3
million for the years ended December 31, 2005 and 2004, respectively.

Net income for common unit holders increased $18.9 million to
$149.2 million in 2005 as compared with $130.3 million in 2004. Diluted earnings per unit were $2.23 in 2005, compared with $2.08 in 2004, or 7% higher, a result of the increase in net income

Environmental Matters

We are subject to numerous
environmental laws and regulations as they apply to our shopping centers pertaining to chemicals used by the dry cleaning industry, the existence of asbestos in older shopping centers, and underground petroleum storage tanks (USTs). We believe
that the tenants who currently operate dry cleaning plants or gas stations do so in accordance with current laws and regulations. Generally, we use all legal means to cause tenants to remove dry cleaning plants from our shopping centers or convert
them to non-chlorinated solvent systems. Where available, we have applied and been accepted into state-sponsored environmental programs. We have a blanket environmental insurance policy that covers us against third-party liabilities and remediation
costs on shopping centers that currently have no known environmental contamination. We have also placed environmental insurance, where possible, on specific properties with known contamination, in order to mitigate our



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environmental risk. We monitor the shopping centers containing environmental issues and in certain cases voluntarily
remediate the sites. We also have legal obligations to remediate certain sites and we are in the process of doing so. We estimate the cost associated with these legal obligations to be approximately $3.8 million, all of which has been reserved. We
believe that the ultimate disposition of currently known environmental matters will not have a material affect on our financial position, liquidity, or operations; however, we can give no assurance that existing environmental studies with respect to
our shopping centers have revealed all potential environmental liabilities; that any previous owner, occupant or tenant did not create any material environmental condition not known to us; that the current environmental condition of the shopping
centers will not be affected by tenants and occupants, by the condition of nearby properties, or by unrelated third parties; or that changes in applicable environmental laws and regulations or their interpretation will not result in additional
environmental liability to us.

Inflation

Inflation has remained relatively low and has had a minimal impact on the operating performance of our shopping centers; however, substantially all of our long-term leases contain provisions designed to mitigate the adverse impact of
inflation. Such provisions include clauses enabling us to receive percentage rent based on tenants gross sales, which generally increase as prices rise; and/or escalation clauses, which generally increase rental rates during the terms of the
leases. Such escalation clauses are often related to increases in the consumer price index or similar inflation indices. In addition, many of our leases are for terms of less than ten years, which permits us to seek increased rents upon re-rental at
market rates. Most of our leases require tenants to pay their pro-rata share of operating expenses, including common-area maintenance, real estate taxes, insurance and utilities, thereby reducing our exposure to increases in costs and operating
expenses resulting from inflation.



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|Item 7A. | Quantitative and Qualitative Disclosures about Market Risk
|-------- | ----------------------------------------------------------

Market Risk

We are exposed to interest-rate changes primarily related to the variable interest rate on the Line and the
refinancing of long-term debt, which currently contain fixed interest rates. The objective of our interest-rate risk management is to limit the impact of interest-rate changes on earnings and cash flows and to lower our overall borrowing costs. To
achieve these objectives, we borrow primarily at fixed interest rates and may enter into derivative financial instruments such as interest-rate swaps, caps or treasury locks in order to mitigate our interest-rate risk on a related financial
instrument. We do not enter into derivative or interest-rate transactions for speculative purposes.

Our interest-rate risk is monitored
using a variety of techniques. The table below presents the principal cash flows (in thousands), weighted average interest rates of remaining debt, and the fair value of total debt (in thousands) as of December 31, 2006, by year of expected
maturity to evaluate the expected cash flows and sensitivity to interest-rate changes.



|                                                 |  |      |         |   |      |        |   |      |        |   |      |         |   |      |         |   |            |         |   |       |           |            |          
|------------------------------------------------ |  | ---- | ------- | - | ---- | ------ | - | ---- | ------ | - | ---- | ------- | - | ---- | ------- | - | ---------- | ------- | - | ----- | --------- | ---------- | ---------
|                                                 |  | 2007 |         |   | 2008 |        |   | 2009 |        |   | 2010 |         |   | 2011 |         |   | Thereafter |         |   | Total |           | Fair Value
|Fixed rate debt                                  |  | $    | 26,977  |   |      | 22,970 |   |      | 56,440 |   |      | 180,398 |   |      | 254,314 |   |            | 843,056 |   |       | 1,384,155 |            | 1,440,585
|Average interest rate for all fixed rate debt    |  |      | 6.61    | % |      | 6.61   | % |      | 6.55   | % |      | 6.26    | % |      | 5.77    | % |            | 5.77    | % |       |           |            |          
|Variable rate LIBOR debt                         |  | $    | 189,662 |   |      |       |   |      |       |   |      |        |   |      |        |   |            |        |   |       | 189,662   |            | 189,662  
|Average interest rate for all variable rate debt |  |      | 5.64    | % |      |       |   |      |       |   |      |        |   |      |        |   |            |        |   |       |           |            |          

We currently have $434.7 million of fixed rate debt maturing in 2010 and 2011. On March 10,
2006, the Partnership entered into four forward-starting interest rate swaps totaling $396.7 million with fixed rates of 5.399%, 5.415%, 5.399% and 5.415%. The Partnership designated these swaps as cash flow hedges to fix $400 million of fixed rate
financing expected to occur in 2010 and 2011, the proceeds of which will be used to repay debt maturing in those years. The change in fair value of these swaps from inception has generated a liability of $2.9 million at December 31, 2006, which
is recorded in accounts payable and other liabilities in the accompanying consolidated balance sheet. As the table incorporates only those exposures that exist as of December 31, 2006, it does not consider those exposures or positions that
could arise after that date. Moreover, because firm commitments are not presented in the table above, the information presented above has limited predictive value. As a result, our ultimate realized gain or loss with respect to interest-rate
fluctuations will depend on the exposures that arise during the period, our hedging strategies at that time, and actual interest rates.



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|Item 8. | Consolidated Financial Statements and Supplementary Data
|------- | --------------------------------------------------------

The Consolidated Financial Statements and supplementary data included in this Report are listed in Part IV, Item 15(a).



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

None.



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##### Table of Contents

|Item 9A. | Controls and Procedures
|-------- | -----------------------

Conclusion Regarding the Effectiveness
of Disclosure Controls and Procedures

Under the supervision and with the participation of Regencys (our General Partner)
management, including its chief executive officer, chief operating officer and chief financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the
Securities Exchange Act of 1934, as amended (the Exchange Act). Based on this evaluation, our chief executive officer, chief operating officer and our chief financial officer concluded that our disclosure controls and procedures were effective as of
the end of the period covered by this annual report. There have been no changes in the Partnerships internal controls over financial reporting identified in connection with this evaluation that occurred during the fourth quarter of 2006 and
that have materially affected, or are reasonably likely to materially affect, the Partnerships internal controls over financial reporting.

Managements Report on Internal Control over Financial Reporting

Our management is responsible for establishing and
maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f). Under the supervision and with the participation of our management, including our chief executive officer, chief operating
officer and chief financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal ControlIntegrated Frameworkissued by the Committee of Sponsoring
Organizations of the Treadway Commission. Based on our evaluation under the framework in Internal Control  Integrated Framework, our management concluded that our internal control over financial reporting was effective as of
December 31, 2006.

KPMG LLP, an independent registered public accounting firm, has issued an attestation report on managements
assessment of the Partnerships internal control over financial reporting as stated in their report which is included herein.

RCLPs system of internal control over financial reporting was designed to provide reasonable assurance regarding the preparation and fair presentation of published financial statements in accordance with accounting principles
generally accepted in the United States. All internal control systems, no mater how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance and may not prevent or
detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.



|Item 9B. | Other Information
|-------- | -----------------

Not applicable

PART III



|Item 10. | Directors, Executive Officers and Corporate Governance
|-------- | ------------------------------------------------------

Information concerning the directors of Regency is incorporated herein by reference to Regencys definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year
covered by this Form 10-K with respect to its 2007 Annual Meeting of Stockholders.

Information regarding executive officers is included in
Part I of this Form 10-K as permitted by General Instruction G(3).

Audit Committee, Independence, Financial Experts.
Incorporated herein by reference to Regencys definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K with respect to its 2007 Annual Meeting
of Stockholders.

Compliance with Section 16(a) of the Exchange Act. Information concerning filings under
Section 16(a) of the Exchange Act by the directors or executive officers of Regency is incorporated herein by reference to Regencys definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after
the end of the fiscal year covered by this Form 10-K with respect to its 2007 Annual Meeting of Stockholders.

Code of Ethics. We
have adopted a code of ethics applicable to Regencys Board of Directors, principal executive officers, principal financial officer, principal accounting officer and persons performing similar functions.



56



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The text of this code of ethics may be found on our web site at www.regencycenters.com. We
intend to post notice of any waiver from, or amendment to, any provision of our code of ethics on our web site.



|Item 11. | Executive Compensation
|-------- | ----------------------

Incorporated herein by
reference to Regencys definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K with respect to its 2007 Annual Meeting of Stockholders.



|Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|-------- | ----------------------------------------------------------------------------------------------

Equity Compensation Plan Information



|                                                           |  |                                                                                                     |  |                                                                                |       |                                                                                                                                                     |    
|---------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------ | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------- | ---
|                                                           |  | (a)                                                                                                 |  | (b)                                                                            |       | (c)                                                                                                                                                
|Plan Category                                              |  | Number of Regency securities to be issued upon exercise
of outstanding options, warrants and rights |  | Weighted-average exercise price of outstanding options, warrants and rights(1) |       | Number of Regency securities remaining available
for future issuance under equity compensation plans (excluding securities reflected in column (a))
|Equity compensation plans approved by security holders     |  | 1,195,551                                                                                           |  | $                                                                              | 48.90 |                                                                                                                                                     |    
|                                                           |  |                                                                                                     | 
|Equity compensation plans not approved by security holders |  | N/A                                                                                                 |  |                                                                                | N/A   |                                                                                                                                                     | N/A
|                                                           |  |                                                                                                     |  |                                                                                |       |                                                                                                                                                     |    
|Total                                                      |  | 1,195,551                                                                                           |  | $                                                                              | 48.90 |                                                                                                                                                     |    
|                                                           |  |                                                                                                     |  |                                                                                |       |                                                                                                                                                     |    

---

|(1) | The weighted average exercise price excludes stock rights awards, which we sometimes refer to as
unvested restricted stock.
|--- | ---------------------------------------------------------------------------------------------------------------------------



|(2) | Our Long Term Omnibus Plan, as amended and approved by stockholders at our 2003 annual meeting, provides
for the issuance of up to 5.0 million shares of common stock or stock options for stock compensation; however, outstanding unvested grants plus vested but unexercised options cannot exceed 12% of our outstanding common stock and common stock
equivalents (excluding options and other stock equivalents outstanding under the plan). The plan permits the grant of any type of share-based award but limits restricted stock awards, stock rights awards, performance shares, dividend equivalents
settled in stock and other forms of stock grants to 2.75 million shares, of which 1.4 million shares were available at December 31, 2006 for future issuance.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Information about security ownership is incorporated herein by reference to Regencys definitive proxy statement to be filed with the Securities and
Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K with respect to its 2007 Annual Meeting of Stockholders.



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|Item 13. | Certain Relationships and Related Transactions, and Director Independence
|-------- | -------------------------------------------------------------------------

Incorporated herein by reference to Regencys definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K with
respect to its 2007 Annual Meeting of Stockholders.



|Item 14. | Principal Accounting Fees and Services
|-------- | --------------------------------------

Incorporated herein by reference to Regencys definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K with respect to its 2007
Annual Meeting of Stockholders.



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##### Table of Contents

PART IV



|Item | 15. Exhibits and Financial Statement Schedules
|---- | ----------------------------------------------



| | (a) | Financial Statements and Financial Statement Schedules:
| | --- | -------------------------------------------------------

Regency Centers, L.P. 2006 financial statements and financial statement schedule, together with the report of KPMG LLP are listed on the index immediately preceding the financial statements at the end of this report.



| | (b) | Exhibits:
| | --- | ---------



|3. | Articles of Incorporation and Bylaws
|-- | ------------------------------------



| | (a) | Restated Certificate of Limited Partnership of Regency Centers, L.P. (incorporated by reference to Exhibit 3(ii) to Regency Centers, L.P.s Form 10-K filed March 15,
2004).
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | Fourth Amended and Restated Agreement of Limited Partnership of Regency Centers, L.P., as amended (incorporated by reference to Exhibit 10(l) of Regency Centers Corporations
Form 10-K filed March 12, 2004).
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (i) | Amendment to Fourth Amended and Restated Agreement of Limited Partnership of Regency Centers, L.P. relating to 6.70% Series 5 Cumulative Redeemable Preferred Units, effective as of
July 28, 2005 (incorporated by reference to Exhibit 3.3 to Regency Centers Corporation Form 8-K filed August 1, 2005).
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 4.(a) | See Exhibit 3(b) for provisions of the Partnership Agreement of Regency Centers, L.P. defining rights of security holders.
| | ----- | --------------------------------------------------------------------------------------------------------------------------



| | (b) | Indenture dated March 9, 1999 between Regency Centers, L.P., the guarantors named therein and First Union National Bank, as trustee (incorporated by reference to Exhibit 4.1 to
the registration statement on Form S-3 of Regency Centers, L.P., No. 333-72899).
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (c) | Indenture dated December 5, 2001 between Regency Centers, L.P., the guarantors named therein and First Union National Bank, as trustee (incorporated by referenced to Exhibit
4.4 of Form 8-K of Regency Centers, L.P. filed December 10, 2001, File No. 0-24763).
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (d) | Indenture dated July 18, 2005 between Regency Centers, L.P., the guarantors named therein and Wachovia Bank, National Association, as trustee (incorporated by referenced to
Exhibit 4.1 of Form S-4 of Regency Centers, L.P. filed August 5, 2005, No. 333-127274).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|10. | Material Contracts
|--- | ------------------



| | (a) | Credit Agreement dated as of March 26, 2004 by and among Regency Centers, L.P., Regency, each of the financial institutions initially a signatory thereto, and Wells Fargo Bank,
National Association (incorporated by reference to Exhibit 10.1 to Regency Centers Corporation Form 10-Q filed May 10, 2004).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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##### Table of Contents

| | (i) | First Amendment dated as of March 28, 2005 to Amended and Restated Credit Agreement by and among Regency Centers, L.P., as Borrower, Regency Centers Corporation, each of the
Lenders signatory thereto, and Wells Fargo Bank, National Association, as Agent (incorporated by reference to Exhibit 10.1 to Regency Centers Corporation Form 8-K filed April 1, 2005).
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | Amended and Restated Limited Liability Company Agreement of Macquarie CountryWide-Regency II, LLC dated as of June 1, 2005 by and among Regency Centers, L.P., Macquarie
CountryWide (US) No. 2 LLC, Macquarie-Regency Management, LLC, Macquarie CountryWide (US) No. 2 Corporation and Macquarie CountryWide Management Limited (incorporated by reference to Exhibit 10.3 to Form 10-Q of Regency Centers Corporation
filed August 8, 2005).
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (c) | Purchase Agreement and Amendment to Amended and Restated Limited Liability Agreement relating to Macquarie CountryWide-Regency II, L.L.C. dated as of January 13, 2006 among
Macquarie CountryWide (U.S.) No. 2 LLC, Regency Centers, L.P., and Macquarie-Regency Management, LLC (incorporated by reference to Exhibit 10.1 to Form 10-Q of Regency Centers Corporation filed May 8, 2006).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (d) | Limited Partnership Agreement dated as of December 21, 2006 of RRP Operating, LP (incorporated by reference to Exhibit 10(u) to Form 10-K of Regency Centers Corporation filed
February 27, 2007).
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|21. | Subsidiaries of the Registrant.
|--- | -------------------------------



|23. | Consent of KPMG LLP.
|--- | --------------------



|31.1 | Rule 15d-14 Certification of Chief Executive Officer.
|---- | -----------------------------------------------------



|31.2 | Rule 15d-14 Certification of Chief Financial Officer.
|---- | -----------------------------------------------------



|31.3 | Rule 15d-14 Certification of Chief Operating Officer.
|---- | -----------------------------------------------------



|32.1 | Section 1350 Certification of Chief Executive Officer.
|---- | ------------------------------------------------------



|32.2 | Section 1350 Certification of Chief Financial Officer.
|---- | ------------------------------------------------------



|32.3 | Section 1350 Certification of Chief Operating Officer.
|---- | ------------------------------------------------------



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SIGNATURES

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



|                  |  |                                                                                                
|----------------- |  | -----------------------------------------------------------------------------------------------
|                  |  | REGENCY CENTERS, L.P.                                                                          
|                  | 
|                  |  | By: REGENCY CENTERS CORPORATIONGeneral Partner                                                 
|                  | 
|February 27, 2007 |  | /s/ Martin E. Stein, Jr. Martin E. Stein, Jr., Chairman of the Board andChief Executive Officer

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



|                  |  |                                                                                                                             
|----------------- |  | ----------------------------------------------------------------------------------------------------------------------------
|                  | 
|February 27, 2007 |  | /s/ Martin E. Stein, Jr. Martin E. Stein, Jr., Chairman of the Board and Chief Executive Officer                            
|                  | 
|February 27, 2007 |  | /s/ Mary Lou Fiala Mary Lou Fiala, President, Chief Operating Officerand Director                                           
|                  | 
|February 27, 2007 |  | /s/ Bruce M. Johnson Bruce M. Johnson, Managing Director, Chief Financial Officer (Principal Financial Officer) and Director
|                  | 
|February 27, 2007 |  | /s/ J. Christian Leavitt J. Christian Leavitt, Senior Vice President, Secretary and Treasurer (Principal Accounting Officer)
|                  | 
|February 27, 2007 |  | /s/ Raymond L. Bank Raymond L. Bank, Director                                                                               
|                  | 
|February 27, 2007 |  | /s/ C. Ronald Blankenship C. Ronald Blankenship, Director                                                                   



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|                  |  |                                                    
|----------------- |  | ---------------------------------------------------
|                  | 
|February 27, 2007 |  | /s/ A. R. Carpenter A. R. Carpenter, Director      
|                  | 
|February 27, 2007 |  | /s/ J. Dix Druce J. Dix Druce, Director            
|                  | 
|February 27, 2007 |  | /s/ Douglas S. Luke Douglas S. Luke, Director      
|                  | 
|February 27, 2007 |  | /s/ John C. Schweitzer John C. Schweitzer, Director
|                  | 
|February 27, 2007 |  | /s/ Thomas G. Wattles Thomas G. Wattles, Director  
|                  | 
|February 27, 2007 |  | /s/ Terry N. Worrell Terry N. Worrell, Director    



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##### Table of Contents

Regency Centers, L.P.

Index to Financial Statements



|                                                                                                                                             |  |     
|-------------------------------------------------------------------------------------------------------------------------------------------- |  | ----
|Regency Centers, L.P.                                                                                                                        |  |     
|                                                                                                                                             | 
|Reports of Independent Registered Public Accounting Firm                                                                                     |  | F-2 
|                                                                                                                                             | 
|Consolidated Balance Sheets as of December 31, 2006 and 2005                                                                                 |  | F-5 
|                                                                                                                                             | 
|Consolidated Statements of Operations for the years ended December 31, 2006, 2005 and 2004                                                   |  | F-6 
|                                                                                                                                             | 
|Consolidated Statements of Changes in Partners Capital and Comprehensive Income (Loss) for the years ended December 31, 2006, 2005 and 2004 |  | F-7 
|                                                                                                                                             | 
|Consolidated Statements of Cash Flows for the years ended December 31, 2006, 2005 and 2004                                                   |  | F-8 
|                                                                                                                                             | 
|Notes to Consolidated Financial Statements                                                                                                   |  | F-10
|                                                                                                                                             | 
|Financial Statement Schedule                                                                                                                 |  |     
|                                                                                                                                             | 
|Schedule III - Regency Centers, L.P. Combined Real Estate and Accumulated Depreciation - December 31, 2006                                   |  | S-1 

All other schedules are omitted because of the absence of conditions under which they are required, materiality or
because information required therein is shown in the consolidated financial statements or notes thereto.



F-1



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##### Table of Contents

Report of Independent Registered Public Accounting Firm

The Unit holders of Regency Centers, L.P. and the Board of Directors
of

Regency Centers Corporation:

We have audited the
accompanying consolidated balance sheets of Regency Centers, L.P. and subsidiaries as of December 31, 2006 and 2005, and the related consolidated statements of operations, changes in partners capital and comprehensive income (loss), and
cash flows for each of the years in the three-year period ended December 31, 2006. In connection with our audits of the consolidated financial statements, we also have audited financial statement schedule III. These consolidated financial
statements and financial statement schedule are the responsibility of the Companys management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedule based on our audits.

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

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of
Regency Centers, L.P. and subsidiaries as of December 31, 2006 and 2005, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2006, in conformity with U.S. generally
accepted accounting principles. Also in our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set
forth therein.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness
of Regency Centers, L.P.s internal control over financial reporting as of December 31, 2006, based on criteria established in Internal ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO), and our report dated March 1, 2007 expressed an unqualified opinion on managements assessment of, and the effective operation of, internal control over financial reporting.



| |  |             
| |  | ------------
| |  | /s/ KPMG LLP

Jacksonville, Florida

Certified Public Accountants

March 1, 2007



F-2



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##### Table of Contents

Report of Independent Registered Public Accounting Firm

The Unit holders of Regency Centers, L.P. and the Board of Directors of

Regency Centers Corporation:

We have audited managements assessment, included in the accompanying Managements Annual Report on
Internal Control Over Financial Reporting, that Regency Centers, L.P. maintained effective internal control over financial reporting as of December 31, 2006, based on criteria established in Internal ControlIntegrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Regency Centers, L.P.s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of
internal control over financial reporting. Our responsibility is to express an opinion on managements assessment and an opinion on the effectiveness of the Companys internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial
reporting, evaluating managements assessment, testing and evaluating the design and operating effectiveness of internal control, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion.

A companys internal control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material
effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.

In our opinion, managements assessment that Regency Centers, L.P. maintained effective internal control over financial reporting as of
December 31, 2006, is fairly stated, in all material respects, based on criteria established in Internal ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Also, in our
opinion, Regency Centers, L.P. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2006, based on criteria established in Internal Control



F-3



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##### Table of Contents

Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Regency
Centers, L.P. and subsidiaries as of December 31, 2006 and 2005, and the related consolidated statements of operations, changes in partners capital and comprehensive income (loss), and cash flows for each of the years in the three-year
period ended December 31, 2006, and related financial statement schedule and our report dated March 1, 2007 expressed an unqualified opinion on those consolidated financial statements and related financial statement schedule.



| |  |             
| |  | ------------
| |  | /s/ KPMG LLP

Jacksonville, Florida

Certified Public Accountants

March 1, 2007



F-4



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##### Table of Contents

REGENCY CENTERS, L.P.

Consolidated Balance Sheets

December 31, 2006 and 2005

(in
thousands, except unit data)



|                                                                                                                                                     |  |      |           |   |      |           |  
|---------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | --------- | - | ---- | --------- | -
|                                                                                                                                                     |  | 2006 |           |   | 2005 |          
|Assets                                                                                                                                               |  |      |           |   |      |           |  
|Real estate investments at cost (notes 2, 4 and 12):                                                                                                 |  |      |           |   |      |           |  
|Land                                                                                                                                                 |  | $    | 862,851   |   |      | 853,275   |  
|Buildings and improvements                                                                                                                           |  |      | 1,963,634 |   |      | 1,926,297 |  
|                                                                                                                                                     |  |      |           |   |      |           |  
|                                                                                                                                                     |  |      | 2,826,485 |   |      | 2,779,572 |  
|Less: accumulated depreciation                                                                                                                       |  |      | 427,389   |   |      | 380,613   |  
|                                                                                                                                                     |  |      |           |   |      |           |  
|                                                                                                                                                     |  |      | 2,399,096 |   |      | 2,398,959 |  
|Properties in development, net                                                                                                                       |  |      | 615,450   |   |      | 413,677   |  
|Operating properties held for sale, net                                                                                                              |  |      | 25,608    |   |      | 36,567    |  
|Investments in real estate partnerships (note 4)                                                                                                     |  |      | 434,090   |   |      | 545,617   |  
|                                                                                                                                                     |  |      |           |   |      |           |  
|Net real estate investments                                                                                                                          |  |      | 3,474,244 |   |      | 3,394,820 |  
|                                                                                                                                                     |  |     
|Cash and cash equivalents                                                                                                                            |  |      | 34,046    |   |      | 42,458    |  
|Notes receivable (note 5)                                                                                                                            |  |      | 19,988    |   |      | 46,473    |  
|Tenant receivables, net of allowance for uncollectible accounts of $3,532 and $3,849 at December 31, 2006 and 2005,
respectively                     |  |      | 67,162    |   |      | 56,878    |  
|Deferred costs, less accumulated amortization of $36,227 and $31,846 at December 31, 2006 and 2005, respectively                                     |  |      | 40,989    |   |      | 41,657    |  
|Acquired lease intangible assets, less accumulated amortization of $10,511 and $6,593 at December 31, 2006 and 2005, respectively (note
6)           |  |      | 12,315    |   |      | 10,182    |  
|Other assets                                                                                                                                         |  |      | 23,041    |   |      | 23,747    |  
|                                                                                                                                                     |  |      |           |   |      |           |  
|                                                                                                                                                     |  | $    | 3,671,785 |   |      | 3,616,215 |  
|                                                                                                                                                     |  |      |           |   |      |           |  
|Liabilities and Partners Capital                                                                                                                    |  |      |           |   |      |           |  
|Liabilities:                                                                                                                                         |  |      |           |   |      |           |  
|Notes payable (note 7)                                                                                                                               |  | $    | 1,454,386 |   |      | 1,451,942 |  
|Unsecured line of credit (note 7)                                                                                                                    |  |      | 121,000   |   |      | 162,000   |  
|Accounts payable and other liabilities                                                                                                               |  |      | 140,940   |   |      | 110,800   |  
|Acquired lease intangible liabilities, net (note 6)                                                                                                  |  |      | 7,729     |   |      | 4,207     |  
|Tenants security and escrow deposits                                                                                                                |  |      | 10,517    |   |      | 10,276    |  
|                                                                                                                                                     |  |      |           |   |      |           |  
|Total liabilities                                                                                                                                    |  |      | 1,734,572 |   |      | 1,739,225 |  
|                                                                                                                                                     |  |      |           |   |      |           |  
|                                                                                                                                                     |  |     
|Limited partners interest in consolidated partnerships                                                                                              |  |      | 17,797    |   |      | 11,088    |  
|                                                                                                                                                     |  |      |           |   |      |           |  
|                                                                                                                                                     |  |     
|Commitments and contingencies (notes 12 and 13)                                                                                                      |  |      |           |   |      |           |  
|                                                                                                                                                     |  |     
|Partners Capital (notes 8, 9, 10 and 11):                                                                                                           |  |      |           |   |      |           |  
|Series D preferred units, par value $100: 500,000 units issued and outstanding at December 31, 2006 and 2005                                         |  |      | 49,158    |   |      | 49,158    |  
|Preferred units of general partner, par value $0.01: 800,000 units issued and outstanding at December 31, 2006 and 2005, liquidation
preference $250 |  |      | 275,000   |   |      | 275,000   |  
|General partner; 69,017,995 and 67,966,343 units outstanding at December 31, 2006 and 2005, respectively                                             |  |      | 1,591,634 |   |      | 1,525,517 |  
|Limited partners; 740,826 and 1,252,140 units outstanding at December 31, 2006 and 2005, respectively                                                |  |      | 16,941    |   |      | 27,919    |  
|Accumulated other comprehensive loss                                                                                                                 |  |      | (13,317   | ) |      | (11,692   | )
|                                                                                                                                                     |  |      |           |   |      |           |  
|Total partners capital                                                                                                                              |  |      | 1,919,416 |   |      | 1,865,902 |  
|                                                                                                                                                     |  |      |           |   |      |           |  
|                                                                                                                                                     |  | $    | 3,671,785 |   |      | 3,616,215 |  
|                                                                                                                                                     |  |      |           |   |      |           |  

See accompanying notes to consolidated financial statements.



F-5



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##### Table of Contents

REGENCY CENTERS, L.P.

Consolidated Statements of Operations

For the years ended December 31, 2006, 2005 and 2004

(in thousands, except per unit data)



|                                                                                                           |  |      |         |   |      |         |   |      |         |  
|---------------------------------------------------------------------------------------------------------- |  | ---- | ------- | - | ---- | ------- | - | ---- | ------- | -
|                                                                                                           |  | 2006 |         |   | 2005 |         |   | 2004 |        
|Revenues:                                                                                                  |  |      |         |   |      |         |   |      |         |  
|Minimum rent (note 12)                                                                                     |  | $    | 295,391 |   |      | 273,405 |   |      | 259,684 |  
|Percentage rent                                                                                            |  |      | 4,428   |   |      | 4,364   |   |      | 3,738   |  
|Recoveries from tenants                                                                                    |  |      | 86,134  |   |      | 77,756  |   |      | 73,362  |  
|Management, acquisition and other fees                                                                     |  |      | 31,805  |   |      | 28,019  |   |      | 10,663  |  
|Equity in income (loss) of investments in real estate partnerships (note 4)                                |  |      | 2,580   |   |      | (2,908  | ) |      | 10,194  |  
|                                                                                                           |  |      |         |   |      |         |   |      |         |  
|Total revenues                                                                                             |  |      | 420,338 |   |      | 380,636 |   |      | 357,641 |  
|                                                                                                           |  |      |         |   |      |         |   |      |         |  
|                                                                                                           |  |      |        
|Operating expenses:                                                                                        |  |      |         |   |      |         |   |      |         |  
|Depreciation and amortization                                                                              |  |      | 84,694  |   |      | 76,925  |   |      | 72,769  |  
|Operating and maintenance                                                                                  |  |      | 51,580  |   |      | 49,501  |   |      | 48,219  |  
|General and administrative                                                                                 |  |      | 45,495  |   |      | 37,815  |   |      | 30,282  |  
|Real estate taxes                                                                                          |  |      | 42,825  |   |      | 38,561  |   |      | 36,121  |  
|Other expenses                                                                                             |  |      | 15,927  |   |      | 2,758   |   |      | 8,043   |  
|                                                                                                           |  |      |         |   |      |         |   |      |         |  
|Total operating expenses                                                                                   |  |      | 240,521 |   |      | 205,560 |   |      | 195,434 |  
|                                                                                                           |  |      |         |   |      |         |   |      |         |  
|                                                                                                           |  |      |        
|Other expense (income)                                                                                     |  |      |         |   |      |         |   |      |         |  
|Interest expense, net of interest income of $4,312, $2,361 and $3,125 in 2006, 2005 and 2004, respectively |  |      | 79,690  |   |      | 86,530  |   |      | 79,739  |  
|Gain on sale of operating properties and properties in development                                         |  |      | (65,600 | ) |      | (18,971 | ) |      | (39,387 | )
|Provision for loss on operating properties                                                                 |  |      |        |   |      |        |   |      | 450     |  
|                                                                                                           |  |      |         |   |      |         |   |      |         |  
|Total other expense (income)                                                                               |  |      | 14,090  |   |      | 67,559  |   |      | 40,802  |  
|                                                                                                           |  |      |         |   |      |         |   |      |         |  
|                                                                                                           |  |      |        
|Income before minority interests                                                                           |  |      | 165,727 |   |      | 107,517 |   |      | 121,405 |  
|                                                                                                           |  |      |        
|Minority interest of limited partners                                                                      |  |      | (4,863  | ) |      | (263    | ) |      | (319    | )
|                                                                                                           |  |      |         |   |      |         |   |      |         |  
|                                                                                                           |  |      |        
|Income from continuing operations                                                                          |  |      | 160,864 |   |      | 107,254 |   |      | 121,086 |  
|                                                                                                           |  |      |        
|Discontinued operations (note 3):                                                                          |  |      |         |   |      |         |   |      |         |  
|Operating income from discontinued operations                                                              |  |      | 5,067   |   |      | 12,501  |   |      | 18,429  |  
|Gain on sale of operating properties and properties in development                                         |  |      | 59,181  |   |      | 54,281  |   |      | 19,220  |  
|                                                                                                           |  |      |         |   |      |         |   |      |         |  
|Income from discontinued operations                                                                        |  |      | 64,248  |   |      | 66,782  |   |      | 37,649  |  
|                                                                                                           |  |      |         |   |      |         |   |      |         |  
|                                                                                                           |  |      |        
|Net income                                                                                                 |  |      | 225,112 |   |      | 174,036 |   |      | 158,735 |  
|                                                                                                           |  |      |        
|Preferred unit distributions                                                                               |  |      | (23,400 | ) |      | (24,849 | ) |      | (28,462 | )
|                                                                                                           |  |      |         |   |      |         |   |      |         |  
|                                                                                                           |  |      |        
|Net income for common unit holders                                                                         |  | $    | 201,712 |   |      | 149,187 |   |      | 130,273 |  
|                                                                                                           |  |      |         |   |      |         |   |      |         |  
|                                                                                                           |  |      |        
|Income per common unit - basic (note 11):                                                                  |  |      |         |   |      |         |   |      |         |  
|Continuing operations                                                                                      |  | $    | 1.98    |   |      | 1.23    |   |      | 1.47    |  
|Discontinued operations                                                                                    |  |      | 0.93    |   |      | 1.02    |   |      | 0.61    |  
|                                                                                                           |  |      |         |   |      |         |   |      |         |  
|Net income for common unit holders per unit                                                                |  | $    | 2.91    |   |      | 2.25    |   |      | 2.08    |  
|                                                                                                           |  |      |         |   |      |         |   |      |         |  
|                                                                                                           |  |      |        
|Income per common unit - diluted (note 11):                                                                |  |      |         |   |      |         |   |      |         |  
|Continuing operations                                                                                      |  | $    | 1.97    |   |      | 1.22    |   |      | 1.47    |  
|Discontinued operations                                                                                    |  |      | 0.92    |   |      | 1.01    |   |      | 0.61    |  
|                                                                                                           |  |      |         |   |      |         |   |      |         |  
|Net income for common unit holders per unit                                                                |  | $    | 2.89    |   |      | 2.23    |   |      | 2.08    |  
|                                                                                                           |  |      |         |   |      |         |   |      |         |  

See accompanying notes to consolidated financial statements.



F-6



---

##### Table of Contents

REGENCY CENTERS, L.P.

Consolidated Statements of Changes in Partners Capital and Comprehensive Income
(Loss)

For the years ended December 31, 2006, 2005 and 2004

(in thousands)



|                                                                                               |  |                |          |   |                                          |           |   |                 |         |   |                                     |         |   |                                            |         |   |                       |           |  
|---------------------------------------------------------------------------------------------- |  | -------------- | -------- | - | ---------------------------------------- | --------- | - | --------------- | ------- | - | ----------------------------------- | ------- | - | ------------------------------------------ | ------- | - | --------------------- | --------- | -
|                                                                                               |  | PreferredUnits |          |   | General PartnerPreferred andCommon Units |           |   | LimitedPartners |         |   | RestrictedStockDeferredCompensation |         |   | AccumulatedOtherComprehensiveIncome (Loss) |         |   | TotalPartnersCapital |          
|Balance at December 31, 2003                                                                   |  | $              | 223,526  |   |                                          | 1,295,863 |   |                 | 26,544  |   |                                     | (15,060 | ) |                                            | 175     |   |                       | 1,531,048 |  
|Comprehensive Income:                                                                          |  |                |          |   |                                          |           |   |                 |         |   |                                     |         |   |                                            |         |   |                       |           |  
|Net income                                                                                     |  |                | 19,829   |   |                                          | 136,327   |   |                 | 2,579   |   |                                     |        |   |                                            |        |   |                       | 158,735   |  
|Loss on settlement of derivative instruments                                                   |  |                |         |   |                                          |          |   |                 |        |   |                                     |        |   |                                            | (5,895  | ) |                       | (5,895    | )
|Amortization of loss on derivative instruments                                                 |  |                |         |   |                                          |          |   |                 |        |   |                                     |        |   |                                            | 429     |   |                       | 429       |  
|                                                                                               |  |                |          |   |                                          |           |   |                 |         |   |                                     |         |   |                                            |         |   |                       |           |  
|Total comprehensive income                                                                     |  |                |          |   |                                          |           |   |                 |         |   |                                     |         |   |                                            |         |   |                       | 153,269   |  
|Redemption of preferred units                                                                  |  |                | (121,764 | ) |                                          |          |   |                 |        |   |                                     |        |   |                                            |        |   |                       | (121,764  | )
|Cash distributions for dividends                                                               |  |                |         |   |                                          | (129,470  | ) |                 | (2,508  | ) |                                     |        |   |                                            |        |   |                       | (131,978  | )
|Preferred unit distribution                                                                    |  |                | (19,829  | ) |                                          | (8,633    | ) |                 |        |   |                                     |        |   |                                            |        |   |                       | (28,462   | )
|Units converted for cash                                                                       |  |                |         |   |                                          |          |   |                 | (20,402 | ) |                                     |        |   |                                            |        |   |                       | (20,402   | )
|Series 4 Preferred units issued (note 9)                                                       |  |                |         |   |                                          | 125,000   |   |                 |        |   |                                     |        |   |                                            |        |   |                       | 125,000   |  
|Restricted Stock issued                                                                        |  |                |         |   |                                          | 11,938    |   |                 |        |   |                                     | (11,938 | ) |                                            |        |   |                       |          |  
|Amortization of restricted stock deferred compensation                                         |  |                |         |   |                                          |          |   |                 |        |   |                                     | 10,154  |   |                                            |        |   |                       | 10,154    |  
|Common Units issued as a result of common stock issued by Regency, net of repurchases          |  |                |         |   |                                          | 75,989    |   |                 |        |   |                                     |        |   |                                            |        |   |                       | 75,989    |  
|Common Units exchanged for common stock of Regency                                             |  |                |         |   |                                          | 7,154     |   |                 | (7,154  | ) |                                     |        |   |                                            |        |   |                       |          |  
|Units issued for acquisition of real estate                                                    |  |                |         |   |                                          |          |   |                 | 38,400  |   |                                     |        |   |                                            |        |   |                       | 38,400    |  
|Reallocation of limited partners interest                                                     |  |                |         |   |                                          | 6,684     |   |                 | (6,684  | ) |                                     |        |   |                                            |        |   |                       |          |  
|                                                                                               |  |                |          |   |                                          |           |   |                 |         |   |                                     |         |   |                                            |         |   |                       |           |  
|Balance at December 31, 2004                                                                   |  | $              | 101,762  |   |                                          | 1,520,852 |   |                 | 30,775  |   |                                     | (16,844 | ) |                                            | (5,291  | ) |                       | 1,631,254 |  
|Comprehensive Income (note 8):                                                                 |  |                |          |   |                                          |           |   |                 |         |   |                                     |         |   |                                            |         |   |                       |           |  
|Net income                                                                                     |  |                | 8,105    |   |                                          | 162,647   |   |                 | 3,284   |   |                                     |        |   |                                            |        |   |                       | 174,036   |  
|Loss on settlement of derivative instruments                                                   |  |                |         |   |                                          |          |   |                 |        |   |                                     |        |   |                                            | (7,310  | ) |                       | (7,310    | )
|Amortization of loss on derivative instruments                                                 |  |                |         |   |                                          |          |   |                 |        |   |                                     |        |   |                                            | 909     |   |                       | 909       |  
|Total comprehensive income                                                                     |  |                |          |   |                                          |           |   |                 |         |   |                                     |         |   |                                            |         |   |                       | 167,635   |  
|Redemption of preferred units                                                                  |  |                | (52,604  | ) |                                          |          |   |                 |        |   |                                     |        |   |                                            |        |   |                       | (52,604   | )
|Cash distributions to partners                                                                 |  |                |         |   |                                          | (143,755  | ) |                 | (2,917  | ) |                                     |        |   |                                            |        |   |                       | (146,672  | )
|Preferred unit distribution                                                                    |  |                | (8,105   | ) |                                          | (16,744   | ) |                 |        |   |                                     |        |   |                                            |        |   |                       | (24,849   | )
|Series 5 Preferred units issued (note 9)                                                       |  |                |         |   |                                          | 75,000    |   |                 |        |   |                                     |        |   |                                            |        |   |                       | 75,000    |  
|Reclassification of unearned deferred compensation upon adoption of FAS 123(R)                 |  |                |         |   |                                          | (16,844   | ) |                 |        |   |                                     | 16,844  |   |                                            |        |   |                       |          |  
|Regency Restricted Stock issued, net of amortization (note 10)                                 |  |                |         |   |                                          | 16,955    |   |                 |        |   |                                     |        |   |                                            |        |   |                       | 16,955    |  
|Common Units issued as a result of common stock issued by Regency, net of repurchases (note 9) |  |                |         |   |                                          | 199,183   |   |                 |        |   |                                     |        |   |                                            |        |   |                       | 199,183   |  
|Common Units exchanged for common stock of Regency                                             |  |                |         |   |                                          | 6,386     |   |                 | (6,386  | ) |                                     |        |   |                                            |        |   |                       |          |  
|Reallocation of limited partners interest                                                     |  |                |         |   |                                          | (3,163    | ) |                 | 3,163   |   |                                     |        |   |                                            |        |   |                       |          |  
|                                                                                               |  |                |          |   |                                          |           |   |                 |         |   |                                     |         |   |                                            |         |   |                       |           |  
|Balance at December 31, 2005                                                                   |  | $              | 49,158   |   |                                          | 1,800,517 |   |                 | 27,919  |   |                                     |        |   |                                            | (11,692 | ) |                       | 1,865,902 |  
|Comprehensive Income (note 8):                                                                 |  |                |          |   |                                          |           |   |                 |         |   |                                     |         |   |                                            |         |   |                       |           |  
|Net income                                                                                     |  |                | 3,725    |   |                                          | 218,511   |   |                 | 2,876   |   |                                     |        |   |                                            |        |   |                       | 225,112   |  
|Amortization of loss on derivative instruments                                                 |  |                |         |   |                                          |          |   |                 |        |   |                                     |        |   |                                            | 1,306   |   |                       | 1,306     |  
|Change in fair value of derivative instruments                                                 |  |                |         |   |                                          |          |   |                 |        |   |                                     |        |   |                                            | (2,931  | ) |                       | (2,931    | )
|                                                                                               |  |                |          |   |                                          |           |   |                 |         |   |                                     |         |   |                                            |         |   |                       |           |  
|Total comprehensive income                                                                     |  |                |          |   |                                          |           |   |                 |         |   |                                     |         |   |                                            |         |   |                       | 223,487   |  
|Cash distributions to partners                                                                 |  |                |         |   |                                          | (163,311  | ) |                 | (2,642  | ) |                                     |        |   |                                            |        |   |                       | (165,953  | )
|Preferred unit distribution                                                                    |  |                | (3,725   | ) |                                          | (19,675   | ) |                 |        |   |                                     |        |   |                                            |        |   |                       | (23,400   | )
|Regency Restricted Stock issued, net of amortization (note 10)                                 |  |                |         |   |                                          | 16,584    |   |                 |        |   |                                     |        |   |                                            |        |   |                       | 16,584    |  
|Common Units issued as a result of common stock issued by Regency, net of repurchases          |  |                |         |   |                                          | 2,796     |   |                 |        |   |                                     |        |   |                                            |        |   |                       | 2,796     |  
|Common Units exchanged for common stock of Regency                                             |  |                |         |   |                                          | 21,495    |   |                 | (21,495 | ) |                                     |        |   |                                            |        |   |                       |          |  
|Reallocation of limited partners interest                                                     |  |                |         |   |                                          | (10,283   | ) |                 | 10,283  |   |                                     |        |   |                                            |        |   |                       |          |  
|                                                                                               |  |                |          |   |                                          |           |   |                 |         |   |                                     |         |   |                                            |         |   |                       |           |  
|Balance at December 31, 2006                                                                   |  | $              | 49,158   |   |                                          | 1,866,634 |   |                 | 16,941  |   |                                     |        |   |                                            | (13,317 | ) |                       | 1,919,416 |  
|                                                                                               |  |                |          |   |                                          |           |   |                 |         |   |                                     |         |   |                                            |         |   |                       |           |  

See accompanying notes to consolidated financial statements.



F-7



---

##### Table of Contents

REGENCY CENTERS, L.P.

Consolidated Statements of Cash Flows

For the years ended December 31, 2006, 2005 and 2004



|                                                                                               |  |      |          |   |      |          |   |      |          |  
|---------------------------------------------------------------------------------------------- |  | ---- | -------- | - | ---- | -------- | - | ---- | -------- | -
|                                                                                               |  | 2006 |          |   | 2005 |          |   | 2004 |         
|Cash flows from operating activities:                                                          |  |      |          |   |      |          |   |      |          |  
|Net income                                                                                     |  | $    | 225,112  |   |      | 174,036  |   |      | 158,735  |  
|Adjustments to reconcile net income to net cash provided by operating activities:              |  |      |          |   |      |          |   |      |          |  
|Depreciation and amortization                                                                  |  |      | 87,413   |   |      | 84,449   |   |      | 82,890   |  
|Deferred loan cost and debt premium amortization                                               |  |      | 4,411    |   |      | 2,740    |   |      | 1,739    |  
|Stock based compensation                                                                       |  |      | 17,950   |   |      | 18,755   |   |      | 14,425   |  
|Minority interest of limited partners                                                          |  |      | 4,863    |   |      | 263      |   |      | 319      |  
|Equity in (income) loss of investments in real estate partnerships                             |  |      | (2,580   | ) |      | 2,908    |   |      | (10,194  | )
|Net gain on sale of properties                                                                 |  |      | (124,781 | ) |      | (76,664  | ) |      | (60,539  | )
|Provision for loss on operating properties                                                     |  |      | 500      |   |      | 550      |   |      | 810      |  
|Distributions in excess of earnings from operations of investments in real estate partnerships |  |      | 28,788   |   |      | 28,661   |   |      | 13,342   |  
|Hedge settlement                                                                               |  |      |         |   |      | (7,310   | ) |      | (5,720   | )
|Changes in assets and liabilities:                                                             |  |      |          |   |      |          |   |      |          |  
|Tenant receivables                                                                             |  |      | (10,284  | ) |      | (1,186   | ) |      | (5,849   | )
|Deferred leasing costs                                                                         |  |      | (7,285   | ) |      | (6,829   | ) |      | (6,199   | )
|Other assets                                                                                   |  |      | (3,508   | ) |      | (13,426  | ) |      | 1,449    |  
|Accounts payable and other liabilities                                                         |  |      | (2,638   | ) |      | (818     | ) |      | (2,946   | )
|Above and below market lease intangibles, net                                                  |  |      | (1,387   | ) |      | (954     | ) |      | (954     | )
|Tenants security and escrow deposits                                                          |  |      | 241      |   |      | 228      |   |      | 214      |  
|                                                                                               |  |      |          |   |      |          |   |      |          |  
|Net cash provided by operating activities                                                      |  |      | 216,815  |   |      | 205,403  |   |      | 181,522  |  
|                                                                                               |  |      |          |   |      |          |   |      |          |  
|                                                                                               |  |      |         
|Cash flows from investing activities:                                                          |  |      |          |   |      |          |   |      |          |  
|Acquisition of operating real estate                                                           |  |      | (19,337  | ) |      |         |   |      | (60,358  | )
|Development of real estate including land acquired                                             |  |      | (404,836 | ) |      | (326,662 | ) |      | (340,217 | )
|Proceeds from sale of real estate investments                                                  |  |      | 455,972  |   |      | 237,135  |   |      | 317,178  |  
|Repayment (issuance) of notes receivable, net                                                  |  |      | 14,770   |   |      | (8,456   | ) |      | 64,009   |  
|Investments in real estate partnerships                                                        |  |      | (21,790  | ) |      | (417,713 | ) |      | (66,299  | )
|Distributions received from investments in real estate partnerships                            |  |      | 13,452   |   |      | 30,918   |   |      | 47,369   |  
|                                                                                               |  |      |          |   |      |          |   |      |          |  
|Net cash provided by (used in) investing activities                                            |  |      | 38,231   |   |      | (484,778 | ) |      | (38,318  | )
|                                                                                               |  |      |          |   |      |          |   |      |          |  
|                                                                                               |  |      |         
|Cash flows from financing activities:                                                          |  |      |          |   |      |          |   |      |          |  
|Net proceeds from Common Units issued as a result of Common stock issued by Regency            |  |      | 5,994    |   |      | 205,601  |   |      | 81,662   |  
|Redemption of preferred units                                                                  |  |      |         |   |      | (54,000  | ) |      | (125,000 | )
|Cash paid for conversion of Common Units by limited partner                                    |  |      |         |   |      |         |   |      | (20,402  | )
|(Distributions to) contributions from limited partners in consolidated partnerships            |  |      | (2,619   | ) |      | (50      | ) |      | 373      |  
|Distributions paid to preferred unit holders                                                   |  |      | (23,400  | ) |      | (23,453  | ) |      | (25,226  | )
|Cash distributions to partners                                                                 |  |      | (161,777 | ) |      | (143,921 | ) |      | (129,600 | )
|Net proceeds from issuance of preferred units                                                  |  |      |         |   |      | 72,716   |   |      | 120,712  |  
|Repayment of fixed rate unsecured notes                                                        |  |      |         |   |      | (100,000 | ) |      | (200,000 | )
|Proceeds from issuance of fixed rate unsecured notes                                           |  |      |         |   |      | 349,505  |   |      | 148,646  |  
|(Repayment) proceeds of unsecured line of credit, net                                          |  |      | (41,000  | ) |      | (38,000  | ) |      | 5,000    |  
|Proceeds from notes payable                                                                    |  |      |         |   |      | 10,000   |   |      | 84,223   |  
|Repayment of notes payable                                                                     |  |      | (36,131  | ) |      | (43,169  | ) |      | (8,176   | )
|Scheduled principal payments                                                                   |  |      | (4,516   | ) |      | (5,499   | ) |      | (5,711   | )
|Deferred loan costs                                                                            |  |      | (9       | ) |      | (3,217   | ) |      | (4,254   | )
|                                                                                               |  |      |          |   |      |          |   |      |          |  
|Net cash (used in) provided by financing activities                                            |  |      | (263,458 | ) |      | 226,513  |   |      | (77,753  | )
|                                                                                               |  |      |          |   |      |          |   |      |          |  
|                                                                                               |  |      |         
|Net (decrease) increase in cash and cash equivalents                                           |  |      | (8,412   | ) |      | (52,862  | ) |      | 65,451   |  
|                                                                                               |  |      |         
|Cash and cash equivalents at beginning of the year                                             |  |      | 42,458   |   |      | 95,320   |   |      | 29,869   |  
|                                                                                               |  |      |          |   |      |          |   |      |          |  
|                                                                                               |  |      |         
|Cash and cash equivalents at end of the year                                                   |  | $    | 34,046   |   |      | 42,458   |   |      | 95,320   |  
|                                                                                               |  |      |          |   |      |          |   |      |          |  



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##### Table of Contents

REGENCY CENTERS, L.P.

Consolidated Statements of Cash Flows

For the years ended December 31, 2006, 2005 and 2004

(in thousands)



|                                                                                                                                                                          |  |      |        |      |        |      |       
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ------ | ---- | ------ | ---- | ------
|                                                                                                                                                                          |  | 2006 |        | 2005 |        | 2004
|Supplemental disclosure of cash flow informationcash paid for interest (net of capitalized interest of $23,952, $12,400 and 11,228 in
2006, 2005 and 2004, respectively) |  | $    | 82,285 |      | 84,839 |      | 85,416
|                                                                                                                                                                          |  |      |        |      |        |      |       
|                                                                                                                                                                          |  |      |       
|Supplemental disclosure of non-cash transactions:                                                                                                                         |  |      |        |      |        |      |       
|Mortgage debt assumed by purchaser on sale of real estate                                                                                                                 |  | $    |       |      |       |      | 44,684
|                                                                                                                                                                          |  |      |        |      |        |      |       
|Regency common stock issued for partnership units exchanged                                                                                                               |  | $    | 21,495 |      | 6,386  |      | 7,154 
|                                                                                                                                                                          |  |      |        |      |        |      |       
|Mortgage loans assumed for the acquisition of real estate                                                                                                                 |  | $    | 44,000 |      |       |      | 61,717
|                                                                                                                                                                          |  |      |        |      |        |      |       
|Real estate contributed as investments in real estate partnerships                                                                                                        |  | $    | 15,967 |      | 10,715 |      | 31,312
|                                                                                                                                                                          |  |      |        |      |        |      |       
|Exchangeable operating partnership units issued for the acquisition of real estate                                                                                        |  | $    |       |      |       |      | 38,400
|                                                                                                                                                                          |  |      |        |      |        |      |       
|Regency common stock issued for dividend reinvestment plan                                                                                                                |  | $    | 3,806  |      | 2,752  |      | 2,379 
|                                                                                                                                                                          |  |      |        |      |        |      |       
|Notes receivable taken in connection with out-parcel sales                                                                                                                |  | $    | 490    |      | 12,370 |      | 3,255 
|                                                                                                                                                                          |  |      |        |      |        |      |       
|Change in fair value of derivative instrument                                                                                                                             |  | $    | 2,931  |      |       |      |      
|                                                                                                                                                                          |  |      |        |      |        |      |       

See accompanying notes to consolidated financial statements.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|1. | Summary of Significant Accounting Policies
|-- | ------------------------------------------



| | (a) | Organization and Principles of Consolidation
| | --- | --------------------------------------------

General

Regency Centers Corporation (Regency or the Company) began its operations as a Real Estate
Investment Trust (REIT) in 1993, and is the managing general partner of its operating partnership, Regency Centers, L.P. (RCLP or the Partnership). Regency currently owns approximately 99% of the outstanding
common partnership units (Units) of the Partnership. Regency engages in the ownership, management, leasing, acquisition, and development of retail shopping centers through the Partnership, and has no other assets or liabilities other
than through its investment in the Partnership. At December 31, 2006, the Partnership directly owned 218 retail shopping centers and held partial interests in an additional 187 retail shopping centers through investments in joint ventures.

Consolidation

The
accompanying consolidated financial statements include the accounts of the Partnership and its wholly owned subsidiaries, and joint ventures in which the Partnership has a majority ownership or controlling interest. The equity interests of third
parties held in the Partnership or its majority owned joint ventures are included in the consolidated financial statements as preferred units, exchangeable operating partnership units or limited partners interest in consolidated partnerships.
All significant inter-company balances and transactions have been eliminated in the consolidated financial statements.

Investments in joint
ventures not controlled by the Partnership (Unconsolidated Joint Ventures) are accounted for under the equity method. The Partnership has evaluated its investment in the Unconsolidated Joint Ventures and has concluded that they are not
variable interest entities as defined in the Financial Accounting Standards Board (FASB) Interpretation No. 46(R) Consolidation of Variable Interest Entities (FIN 46R). The venture partners in the
Unconsolidated Joint Ventures have significant ownership rights, including approval over operating budgets and strategic plans, capital spending, sale or financing, and admission of new partners; therefore, the Partnership has concluded that the
equity method of accounting is appropriate for these interests which do not require consolidation under EITF Issue No. 04-5 Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or
Similar Entity When the Limited Partners Have Certain Rights. Under the equity method of accounting, investments in the Unconsolidated Joint Ventures are initially recorded at cost, and subsequently increased for additional contributions and
allocations of income and reduced for distributions received and allocation of losses. These investments are included in the consolidated financial statements as Investments in real estate partnerships.

Ownership of the Company

Regency has
a single class of common stock outstanding and three series of preferred stock outstanding (Series 3, 4, and 5 Preferred Stock). The dividends on the Series 3, 4, and 5 Preferred Stock are cumulative and payable in arrears on the last day of each
calendar quarter. The Company owns corresponding Series 3, 4, and 5 preferred unit interests (Series 3, 4, and 5 Preferred Units) in the Partnership that entitle the Company to income and distributions from the Partnership in amounts
equal to the dividends paid on the Companys Series 3, 4, and 5 Preferred Stock.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



| | (a) | Organization and Principles of Consolidation (continued)
| | --- | --------------------------------------------------------

Ownership of the Operating Partnership

The Partnerships capital includes general and limited common partnership
Units, Series 3, 4, and 5 Preferred Units owned by the Company, and Series D Preferred Units owned by institutional investors.

At
December 31, 2006, the Company owned approximately 99% or 69,017,995 Partnership Units of the total 69,758,821 Partnership Units outstanding. Each outstanding common Partnership Unit not owned by the Company is exchangeable for one share of
Regency common stock. The Company revalues the minority interest associated with the Units each quarter to maintain a proportional relationship between the book value of equity associated with common stockholders relative to that of the Unit holders
since both have equivalent rights and Units are convertible into shares of common stock on a one-for-one basis.

Net income and
distributions of the Partnership are allocable first to the Preferred Units, and the remaining amounts to the general and limited partners Units in accordance with their ownership percentage. The Series 3, 4, and 5 Preferred Units owned by the
Company are eliminated in consolidation.



| | (b) | Revenues
| | --- | --------

The Partnership leases space to tenants under
agreements with varying terms. Leases are accounted for as operating leases with minimum rent recognized on a straight-line basis over the term of the lease regardless of when payments are due. Accrued rents are included in tenant receivables. As
part of the leasing process, the Partnership may provide the lessee with an allowance for the construction of leasehold improvements. Leasehold improvements are capitalized as part of the building and recorded as tenant improvements and depreciated
over the shorter of the useful life of the improvements or the lease term. If the allowance represents a payment for a purpose other than funding leasehold improvements, or in the event the Partnership is not considered the owner of the
improvements, the allowance is considered to be a lease incentive and is recognized over the lease term as a reduction of rental revenue. Factors considered during this evaluation include, among others, who holds legal title to the improvements, and
other controlling rights provided by the lease agreement (e.g. unilateral control of the tenant space during the build-out process). Determination of the appropriate accounting for a tenant allowance is made on a case-by-case basis, considering the
facts and circumstances of the individual tenant lease. Lease revenue recognition commences when the lessee is given possession of the leased space upon completion of tenant improvements when the Partnership is the owner of the leasehold
improvements; however, when the leasehold improvements are owned by the tenant, the lease inception date is when the tenant obtains possession of the leased space for purposes of constructing its leasehold improvements.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



| | (b) | Revenues (continued)
| | --- | --------------------

Substantially all of the lease
agreements contain provisions that provide for additional rents based on tenants sales volume (percentage rent) and reimbursement of the tenants share of real estate taxes, insurance and common area maintenance (CAM) costs.

Percentage rents are recognized when the tenants achieve the specified targets as defined in their lease agreements. Recovery of real
estate taxes, insurance and CAM costs are recognized as the respective costs are incurred in accordance with the lease agreements.

The
Partnership accounts for profit recognition on sales of real estate in accordance with Statement of Financial Accounting Standards (SFAS) Statement No. 66, Accounting for Sales of Real Estate. In summary, profits from
sales will not be recognized by the Partnership unless a sale has been consummated; the buyers initial and continuing investment is adequate to demonstrate a commitment to pay for the property; the Partnerships receivable, if applicable,
is not subject to future subordination; the Partnership has transferred to the buyer the usual risks and rewards of ownership; and the Partnership does not have substantial continuing involvement with the property.

The Partnership has been engaged by joint ventures under agreements to provide asset management, property management; and leasing, investing and financing
services for such ventures shopping centers. The fees are market based and generally calculated as a percentage of either revenues earned or the estimated values of the properties managed, and are recognized as services are rendered, when fees
due are determinable and collectibility is reasonably assured.



| | (c) | Real Estate Investments
| | --- | -----------------------

Land, buildings and improvements
are recorded at cost. All specifically identifiable costs related to development activities are capitalized into properties in development on the consolidated balance sheets. The capitalized costs include pre-development costs essential to the
development of the property, development costs, construction costs, interest costs, real estate taxes, and direct employee costs incurred during the period of development.

The Partnership incurs costs prior to land acquisition including contract deposits, as well as legal, engineering and other external professional fees related to evaluating the feasibility of developing a shopping
center. These pre-development costs are included in properties in development. If the Partnership determines that the development of a particular shopping center is no longer probable, any related pre-development costs previously incurred are
immediately expensed. At December 31, 2006 and 2005, the Partnership had capitalized pre-development costs of $23.3 million and $12.2 million, respectively of which $10.0 million and $5.7 million, respectively were refundable deposits.

The Partnerships method of capitalizing interest is based upon applying its weighted average borrowing rate to that portion of the
actual development costs expended. The Partnership ceases cost capitalization when the property is available for occupancy upon substantial completion of tenant improvements. In no event would the Partnership capitalize interest on the project
beyond 12 months after substantial completion of the building shell.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



| | (c) | Real Estate Investments (continued)
| | --- | -----------------------------------

Maintenance and
repairs that do not improve or extend the useful lives of the respective assets are recorded in operating and maintenance expense.

Depreciation is computed using the straight-line method over estimated useful lives of up to 40 years for buildings and improvements, term of lease for tenant improvements, and three to seven years for furniture and equipment.

The Partnership and the unconsolidated joint ventures allocate the purchase price of assets acquired (net tangible and identifiable intangible assets)
and liabilities assumed based on their relative fair values at the date of acquisition pursuant to the provisions of SFAS No. 141, Business Combinations (Statement 141). Statement 141 provides guidance on allocating a
portion of the purchase price of a property to intangible assets. The Partnerships methodology for this allocation includes estimating an as-if vacant fair value of the physical property, which is allocated to land, building and
improvements. The difference between the purchase price and the as-if vacant fair value is allocated to intangible assets. There are three categories of intangible assets to be considered: (i) value of in-place leases,
(ii) above and below-market value of in-place leases and (iii) customer relationship value.

The value of in-place leases is
estimated based on the value associated with the costs avoided in originating leases compared to the acquired in-place leases as well as the value associated with lost rental and recovery revenue during the assumed lease-up period. The value of
in-place leases is recorded to amortization expense over the remaining initial term of the respective leases.

Above-market and below-market
in-place lease values for acquired properties are recorded based on the present value 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 comparable in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The value of above-market leases is amortized as a reduction of minimum rent over the remaining terms of the respective leases.
The value of below-market leases is accreted as an increase to minimum rent over the remaining terms of the respective leases, including renewal options.

The Partnership allocates no value to customer relationship intangibles if it has pre-existing business relationships with the major retailers in the acquired property since they provide no incremental value over the
Partnerships existing relationships.

The Partnership follows the provisions of SFAS No. 144, Accounting for the Impairment
or Disposal of Long-Lived Assets (Statement 144). In accordance with Statement 144, the Partnership classifies an operating property as held-for-sale when it determines that the property is available for immediate sale in its
present condition, the property is being actively marketed for sale and management is reasonably certain that a sale will be consummated. Operating properties held-for-sale are carried at the lower of cost or fair value less costs to sell.
Depreciation and amortization are suspended during the held-for-sale period. The operations of properties held-for-sale are reclassified into discontinued operations for all periods presented.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



| | (c) | Real Estate Investments (continued)
| | --- | -----------------------------------

In accordance with
Statement 144, when the Partnership sells a property and will not have continuing involvement or significant cash flows after disposition, the operations and cash flows of the property are eliminated and its operations and gain on sale are reported
in discontinued operations so that the operations and cash flows are clearly distinguished. Once classified in discontinued operations, these properties are eliminated from ongoing operations. Prior periods are also represented to reflect the
operations of these properties as discontinued operations. When the Partnership sells operating properties to its joint ventures or to third parties, and it will have continuing involvement, the operations and gains on sales are included in income
from continuing operations.

The Partnership reviews its real estate portfolio for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable based upon expected undiscounted cash flows from the property. The Partnership determines impairment by comparing the propertys carrying value to an estimate of fair value based upon
varying methods such as i) estimating future cash flows, ii) determining resale values by market, or iii) applying a capitalization rate to net operating income using prevailing rates in a given market. These methods of determining fair value can
fluctuate significantly as a result of a number of factors, including changes in the general economy of those markets in which the Partnership operates, tenant credit quality and demand for new retail stores. In the event that the carrying amount of
a property is not recoverable and exceeds its fair value, the Partnership will write down the asset to fair value for held-and-used assets and to fair value less costs to sell for held-for-sale assets. During 2006, 2005 and
2004, the Partnership established a provision for loss of $500,000, $550,000 and $810,000 based upon the criteria described above. The provision for loss on properties subsequently sold to third parties is included in operating income from
discontinued operations.



| | (d) | Income Taxes
| | --- | ------------

The Partnerships taxable income and
loss is reported by its partners, of which the Company as general partner and 99% owner, is allocated its proportionate share of tax attributes.

The Company believes it qualifies, and intends to continue to qualify, as a REIT under the Internal Revenue Code (the Code). As a REIT, the Company will generally not be subject to federal income tax, provided that distributions
to its stockholders are at least equal to REIT taxable income.

Income taxes are accounted for under the asset and liability method.
Deferred tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets
and liabilities are measured using the enacted tax rates in effect for the year in which these temporary differences are expected to be recovered or settled.

Earnings and profits, which determine the taxability of dividends to stockholders, differs from net income reported for financial reporting purposes primarily because of differences in depreciable lives and cost bases
of the shopping centers, as well as other timing differences.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



| | (d) | Income Taxes (continued)
| | --- | ------------------------

The net book basis of real
estate assets exceeds the tax basis by approximately $158.4 million and $161.9 million at December 31, 2006 and 2005, respectively, primarily due to the difference between the cost basis of the assets acquired and their carryover basis recorded
for tax purposes.

The following summarizes the tax status of Regencys dividends paid during the respective years:



|                               |  |      |      |   |      |      |   |      |      |  
|------------------------------ |  | ---- | ---- | - | ---- | ---- | - | ---- | ---- | -
|                               |  | 2006 |      |   | 2005 |      |   | 2004 |     
|Dividend per share             |  | $    | 2.38 |   |      | 2.20 |   |      | 2.12 |  
|Ordinary income                |  |      | 64   | % |      | 79   | % |      | 82   | %
|Capital gain                   |  |      | 21   | % |      | 11   | % |      | 6    | %
|Return of capital              |  |      |     |   |      |     |   |      | 3    | %
|Unrecaptured Section 1250 gain |  |      | 15   | % |      | 10   | % |      | 9    | %

Regency Realty Group, Inc. (RRG), a wholly-owned subsidiary of RCLP, is a Taxable REIT
Subsidiary as defined in Section 856(l) of the Code. RRG is subject to federal and state income taxes and files separate tax returns. Income tax expense consists of the following for the years ended December 31, 2006, 2005 and 2004 (in
thousands):



|                         |  |      |        |      |       |   |      |        |  
|------------------------ |  | ---- | ------ | ---- | ----- | - | ---- | ------ | -
|                         |  | 2006 |        | 2005 |       |   | 2004 |       
|Income tax expense       |  |      |        |      |       |   |      |        |  
|Current                  |  | $    | 10,256 |      | 4,980 |   |      | 10,730 |  
|Deferred                 |  |      | 1,516  |      | (891  | ) |      | (1,978 | )
|                         |  |      |        |      |       |   |      |        |  
|Total income tax expense |  | $    | 11,772 |      | 4,089 |   |      | 8,752  |  
|                         |  |      |        |      |       |   |      |        |  

Income tax expense is included in either other expenses if the related income is from continuing
operations or discontinued operations on the consolidated statements of operations as follows for the years ended December 31, 2006, 2005 and 2004 (in thousands):



|                         |  |      |        |      |       |      |      
|------------------------ |  | ---- | ------ | ---- | ----- | ---- | -----
|                         |  | 2006 |        | 2005 |       | 2004
|Income tax expense from: |  |      |        |      |       |      |      
|Continuing operations    |  | $    | 11,772 |      | 494   |      | 6,487
|Discontinued operations  |  |      |       |      | 3,595 |      | 2,265
|                         |  |      |        |      |       |      |      
|Total income tax expense |  | $    | 11,772 |      | 4,089 |      | 8,752
|                         |  |      |        |      |       |      |      



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



| | (d) | Income Taxes (continued)
| | --- | ------------------------

Income tax expense differed from
the amounts computed by applying the U.S. Federal income tax rate of 35% to pretax income for the years ended December 31, 2006 and 2005, respectively and 34% for the year ended December 31, 2004 as follows (in thousands):



|                                                  |  |      |        |      |       |      |      
|------------------------------------------------- |  | ---- | ------ | ---- | ----- | ---- | -----
|                                                  |  | 2006 |        | 2005 |       | 2004
|Computed expected tax expense                     |  | $    | 4,094  |      | 3,304 |      | 5,759
|Increase in income tax resulting from state taxes |  |      | 456    |      | 368   |      | 913  
|All other items                                   |  |      | 7,222  |      | 417   |      | 2,080
|                                                  |  |      |        |      |       |      |      
|Total income tax expense                          |  | $    | 11,772 |      | 4,089 |      | 8,752
|                                                  |  |      |        |      |       |      |      

All other items principally represent the tax effect of gains associated with the sale of
properties to unconsolidated ventures.

RRG had net deferred tax assets of $9.7 million and $11.2 million at December 31, 2006 and
2005, respectively. The majority of the deferred tax assets relate to deferred interest expense and tax costs capitalized on projects under development. No valuation allowance was provided and the Company believes it is more likely than not that the
future benefits associated with these deferred tax assets will be realized.



| | (e) | Deferred Costs
| | --- | --------------

Deferred costs include leasing costs and
loan costs, net of accumulated amortization. Such costs are amortized over the periods through lease expiration or loan maturity, respectively. Deferred leasing costs consist of internal and external commissions associated with leasing the
Partnerships shopping centers. Net deferred leasing costs were $33.3 million and $30.6 million at December 31, 2006 and 2005, respectively. Deferred loan costs consist of initial direct and incremental costs associated with financing
activities. Net deferred loan costs were $7.7 million and $11.1 million at December 31, 2006 and 2005, respectively.



| | (f) | Earnings per Unit and Treasury Stock
| | --- | ------------------------------------

Basic net income per
unit is computed based upon the weighted average number of common units outstanding during the period. Diluted net income per unit also includes common unit equivalents for stock options, restricted stock and exchangeable operating partnership
units, if dilutive. See note 11 for the calculation of earnings per unit (EPU).

Repurchases of the Companys common stock
are recorded at cost and are reflected as Treasury stock in the Companys consolidated statements of stockholders equity and comprehensive income (loss) and recorded in General Partner Preferred and Common Units of the Partnerships
consolidated statement of changes in partners capital and comprehensive income (loss). Outstanding shares do not include treasury shares. Concurrent with the Treasury stock repurchases by Regency, the Partnership repurchases the same amount of
general partnership units from Regency.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



| | (g) | Cash and Cash Equivalents
| | --- | -------------------------

Any instruments which have an
original maturity of 90 days or less when purchased are considered cash equivalents. Cash distributions of normal operating earnings from investments in real estate partnerships are included in cash flows from operations in the consolidated
statements of cash flows. Cash distributions from the sale or loan proceeds from the placement of debt on a property included in investments in real estate partnerships is included in cash flows from investing activities in the consolidated
statements of cash flows.



| | (h) | Estimates
| | --- | ---------

The preparation of financial statements in
conformity with U.S. generally accepted accounting principles requires the Partnerships management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and
liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.



| | (i) | Stock-Based Compensation
| | --- | ------------------------

Regency grants stock-based
compensation to its employees and directors. When Regency issues common shares as compensation, it receives a comparable number of common units from the Partnership including stock options. Regency is committed to contribute to the Partnership all
proceeds from the exercise of stock options or other stock-based awards granted under Regencys Long-Term Omnibus Plan. Accordingly, Regencys ownership in the Partnership will increase based on the amount of proceeds contributed to the
Partnership for the common units it receives. As a result of the issuance of common units to Regency for stock-based compensation, the Partnership accounts for stock-based compensation in the same manner as Regency.

In December 2004, the FASB issued SFAS No. 123(R) Share-Based Payment (Statement 123(R)), which is an amendment of SFAS
No. 123. Statement 123(R) supersedes Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees (Opinion 25). Statement 123(R) requires all share-based payments to employees, including
grants of employee stock options, be recognized in the consolidated statements of operations based on their fair values and pro-forma disclosure is no longer an alternative. The Partnership elected early adoption of Statement 123(R) on
January 1, 2005, even though it was not effective until January 1, 2006. As permitted by Statement 123(R), the Partnership applied the modified prospective method in which compensation cost is recognized beginning with the
effective date (a) based on the requirements of Statement 123(R) for all share-based payments granted after the effective date and (b) based on the requirements of Statement 123 for all awards granted to employees prior to the
effective date of Statement 123(R) that remain unvested on the effective date. See Note 10 for further discussion.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



| | (j) | Segment Reporting
| | --- | -----------------

The Partnerships business is
investing in retail shopping centers through direct ownership or through joint ventures. The Partnership actively manages its portfolio of retail shopping centers and may from time to time make decisions to sell lower performing properties or
developments not meeting its long-term investment objectives. The proceeds from sales are reinvested into higher quality retail shopping centers through acquisitions or new developments, which management believes will meet its planned rate of
return. It is managements intent that all retail shopping centers will be owned or developed for investment purposes; however, the Partnership may decide to sell all or a portion of a development upon completion. The Partnerships revenue
and net income are generated from the operation of its investment portfolio. The Partnership also earns fees from third parties for services provided to manage and lease retail shopping centers owned through joint ventures.

The Partnerships portfolio is located throughout the United States; however, management does not distinguish or group its operations on a
geographical basis for purposes of allocating resources or measuring performance. The Partnership reviews operating and financial data for each property on an individual basis, therefore, the Partnership defines an operating segment as its
individual properties. No individual property constitutes more than 10% of the Partnerships combined revenue, net income or assets, and thus the individual properties have been aggregated into one reportable segment based upon their
similarities with regard to both the nature and economics of the centers, tenants and operational processes, as well as long-term average financial performance. In addition, no single tenant accounts for 7% or more of revenue and none of the
shopping centers are located outside the United States.



| | (k) | Derivative Financial Instruments
| | --- | --------------------------------

The Partnership adopted
SFAS No. 133 Accounting for Derivative Instruments and Hedging Activities (Statement 133) as amended by SFAS No. 149. Statement 133 requires that all derivative instruments, whether designated in hedging
relationships or not, be recorded on the balance sheet at their fair value. Gains or losses resulting from changes in the values of those derivatives are accounted for depending on the use of the derivative and whether it qualifies for hedge
accounting. The Partnerships use of derivative financial instruments is normally to mitigate its interest rate risk on a related financial instrument or forecasted transaction through the use of interest rate swaps. The Partnership designates
these interest rate swaps as cash flow hedges.

Statement 133 requires that changes in fair value of derivatives that qualify as cash flow
hedges be recognized in other comprehensive income (OCI) while the ineffective portion of the derivatives change in fair value be recognized in the income statement as interest expense. Upon the settlement of a hedge, gains and
losses associated with the transaction are recorded in OCI and amortized over the underlying term of the hedge transaction. The Partnership formally documents all relationships between hedging instruments and hedged items, as well as its risk
management objectives and strategies for undertaking various hedge transactions. The Partnership assesses, both at inception of the hedge and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly
effective in offsetting changes in the cash flows of the hedged items.



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Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



| | (k) | Derivative Financial Instruments (continued)
| | --- | --------------------------------------------

In assessing
the hedge, the Partnership uses standard market conventions and techniques such as discounted cash flow analysis, option pricing models and termination costs at each balance sheet date. All methods of assessing fair value result in a general
approximation of value, and such value may never actually be realized. See Note 8 for further discussion.



| | (l) | Financial Instruments with Characteristics of Both Liabilities and Equity
| | --- | -------------------------------------------------------------------------

In May 2003, the FASB issued SFAS No. 150, Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity (Statement 150). Statement 150 affects the
accounting for certain financial instruments, which requires companies having consolidated entities with specified termination dates to treat minority owners interests in such entities as liabilities in an amount based on the fair value of the
entities. Although Statement 150 was originally effective July 1, 2003, the FASB has indefinitely deferred certain provisions related to classification and measurement requirements for mandatory redeemable financial instruments that become
subject to Statement 150 solely as a result of consolidation, including minority interests of entities with specified termination dates.

At
December 31, 2006, the Partnership held a majority interest in two consolidated entities with specified termination dates of 2017 and 2049. The minority owners interests in these entities will be settled upon termination by distribution
or transfer of either cash or specific assets of the underlying entities. The estimated fair value of minority interests in entities with specified termination dates was approximately $8.3 million at December 31, 2006. The related carrying
value is $1.3 million and $1.1 million as of December 31, 2006 and 2005, respectively which is included within limited partners interest in consolidated partnerships in the accompanying consolidated balance sheet. The Partnership has no
other financial instruments that are affected by Statement 150.



| | (m) | Recent Accounting Pronouncements
| | --- | --------------------------------

In September 2006, the
Securities and Exchange Commissions (SEC) staff issued Staff Accounting Bulletin (SAB) No. 108 Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial
Statements. This Bulletin requires that registrants quantify errors using both a balance sheet and income statement approach and evaluate whether either approach results in a misstated amount that, when all relevant quantitative and
qualitative factors are considered, is material. The guidance in this Bulletin must be applied to financial reports covering the first fiscal year ending after November 15, 2006. The adoption of SAB 108 did not have a material effect on the
Partnerships consolidated financial statements.

In September 2006, the FASB issued Statement No. 157 Fair Value
Measurements. This Statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. This Statement applies to accounting
pronouncements that require or permit fair value measurements, except for share-based payments transactions under FASB Statement No. 123(R). This Statement is effective for financial statements issued for fiscal years beginning after
November 15, 2007. As Statement No. 157 does not require any new fair value measurements or remeasurements of previously computed fair values, the Partnership does not believe adoption of this Statement will have a material effect on its
consolidated financial statements.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



| | (m) | Recent Accounting Pronouncements (continued)
| | --- | --------------------------------------------

In July
2006, the FASB issued FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109 (FIN 48). FIN 48 clarifies the accounting and reporting for
uncertainties in income tax law. This Interpretation prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax
returns. Under FIN 48, tax positions shall initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions shall initially and
subsequently be measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.The Partnership will
adopt this Interpretation in the first quarter of 2007. The cumulative effects, if any, of applying this Interpretation will be recorded as an adjustment to retained earnings as of the beginning of the period of adoption. The Partnership
has begun the process of evaluating the expected effect of FIN 48 and the adoption is not expected to have a material effect on the Partnerships consolidated financial statements.

In April 2006, the FASB issued FSP FIN 46(R)-6, Determining the Variability to Be Considered in Applying FASB Interpretation No. 46(R),
which became effective in the third quarter of 2006. FSP FIN No. 46(R)-6 clarifies that the variability to be considered in applying Interpretation 46(R) shall be based on an analysis of the design of the variable interest entity. The adoption
of this FSP did not have an effect on the Partnerships consolidated financial statements.

In October 2005, the FASB issued FSP No.
FAS 13-1 Accounting for Rental Costs Incurred during a Construction Period. This FSP requires that rental costs associated with ground or building operating leases incurred during a construction period be recognized as rental expense.
However, FSP No. FAS 13-1 does not address lessees that account for the sale or rental of real estate projects under FASB Statement No. 67 Accounting for Costs and Initial Rental Operations of Real Estate Projects, and therefore the
Partnership will continue to apply FASB Statement No. 67.



| | (n) | Reclassifications
| | --- | -----------------

Certain reclassifications have been
made to the 2005 and 2004 amounts to conform to classifications adopted in 2006.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|2. | Real Estate Investments
|-- | -----------------------

During 2006, the Partnership
acquired one shopping center for a purchase price of $63.1 million which included the assumption of $44.0 million in debt. In accordance with Statement 141, acquired lease intangible assets and acquired lease intangible liabilities of $6.1 million
and $5.0 million, respectively were recorded for this acquisition. The acquisition was accounted for as a purchase business combination and the results of its operations are included in the consolidated financial statements from the date of
acquisition. During 2005, the Partnerships acquisition activity was through its joint ventures discussed further in Note 4.



|3. | Discontinued Operations
|-- | -----------------------

RCLP maintains a conservative
capital structure to fund its growth programs without compromising its investment-grade ratings. This approach is founded on a self-funding business model which utilizes center recycling as a key component and requires ongoing monitoring
of each center to ensure that it meets RCLPs investment standards. This recycling strategy calls for the Partnership to sell properties that do not measure up to its standards and re-deploy the proceeds into new, higher-quality developments
and acquisitions that are expected to generate sustainable revenue growth and more attractive returns.

During 2006, the Partnership sold
100% of its interest in 11 properties for net proceeds of $149.6 million. The combined operating income and gains from these properties and properties classified as held-for-sale are included in discontinued operations. The revenues from properties
included in discontinued operations, including properties sold in 2006, 2005 and 2004, as well as operating properties held for sale, were $14.6 million, $32.8 million and $44.2 million for the three years ended December 31, 2006, 2005 and
2004, respectively. The operating income and gains from properties included in discontinued operations are reported net of income taxes, if the property is sold by RRG, as follows for the years ended December 31, 2006, 2005 and 2004 (in
thousands):



|                             |  |                 |       |                          |        |                 |        |                          |        |                 |        |                          |       
|---------------------------- |  | --------------- | ----- | ------------------------ | ------ | --------------- | ------ | ------------------------ | ------ | --------------- | ------ | ------------------------ | ------
|                             |  | 2006            |       | 2005                     |        | 2004           
|                             |  | OperatingIncome |       | Gain onsale ofproperties |        | OperatingIncome |        | Gain onsale ofproperties |        | OperatingIncome |        | Gain onsale ofproperties
|Operations and gain          |  | $               | 5,067 |                          | 59,181 |                 | 12,684 |                          | 57,693 |                 | 18,763 |                          | 21,151
|Less: Income taxes           |  |                 |      |                          |       |                 | 183    |                          | 3,412  |                 | 334    |                          | 1,931 
|                             |  |                 |       |                          |        |                 |        |                          |        |                 |        |                          |       
|Discontinued operations, net |  | $               | 5,067 |                          | 59,181 |                 | 12,501 |                          | 54,281 |                 | 18,429 |                          | 19,220
|                             |  |                 |       |                          |        |                 |        |                          |        |                 |        |                          |       



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|4. | Investments in Real Estate Partnerships
|-- | ---------------------------------------

The Partnership
accounts for all investments in which it owns 50% or less and does not have a controlling financial interest using the equity method. The Partnership has determined that these investments are not variable interest entities as defined in FIN 46(R)
and do not require consolidation under EITF 04-5, and therefore, subject to the voting interest model in determining its basis of accounting. Major decisions, including property acquisitions and dispositions, financings, annual budgets and
dissolution of the ventures are subject to the approval of all partners. The Partnerships combined investment in these partnerships was $434.1 million and $545.6 million at December 31, 2006 and 2005, respectively. Any difference between
the carrying amount of these investments and the underlying equity in net assets is amortized or accreted to equity in income (loss) of investments in real estate partnerships over the expected useful lives of the properties and other intangible
assets which range in lives from 10 to 40 years. Net income from these partnerships, which includes all operating results, as well as gains and losses on sales of properties within the joint ventures, is allocated to the Partnership in accordance
with the respective partnership agreements. Such allocations of net income or loss are recorded in equity in income (loss) of investments in real estate partnerships in the accompanying consolidated statements of operations.

Investments in real estate partnerships are comprised primarily of joint ventures with three unrelated co-investment partners and a recently formed
open-end real estate fund (Regency Retail Partners), as further described below. In addition to the Partnership earning its pro-rata share of net income (loss) in each of the partnerships, these partnerships pay the Partnership fees for
asset management, property management, investment and financing services. During 2006, 2005 and 2004, the Partnership received fees from these joint ventures of $30.8 million, $26.8 million and $9.3 million, respectively.

The Partnership co-invests with the Oregon Public Employees Retirement Fund in three joint ventures (collectively Columbia) in which the
Partnership has ownership interests of 20% or 30%. As of December 31, 2006, Columbia owned 20 shopping centers, had total assets of $558.1 million, and net income of $11.6 million for the year ended. The Partnerships share of
Columbias total assets and net income was $123.9 million and $2.3 million, respectively. During 2006 Columbia acquired four shopping centers from third parties for $97.0 million. The Partnership contributed $9.6 million for its proportionate
share of the purchase price, which was net of $36.4 million of assumed mortgage debt and $13.3 million of financing obtained by Columbia. Columbia did not acquire any properties in 2005 and sold two shopping centers to an unrelated party for $47.6
million at a gain of $8.9 million.

The Partnership co-invests with the California State Teachers Retirement System
(CalSTRS) in a joint venture (RegCal) in which the Partnership has an ownership interest of 25%. As of December 31, 2006, RegCal owned nine shopping centers, had total assets of $182.9 million, and net income of $1.7
million for the year ended. The Partnerships share of RegCals total assets and net income was $45.7 million and $516,613, respectively. During 2006, RegCal acquired two shopping centers from unrelated parties for a purchase price of
$37.3 million. The Partnership contributed $4.1 million for its proportionate share of the purchase price, which was net of financing obtained by RegCal. During 2005, RegCal acquired two shopping centers from an unrelated party for a purchase price
of $20.0 million. The Partnership contributed $1.7 million for its proportionate share of the purchase price, which was net of loan financing assumed by RegCal.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|4. | Investments in Real Estate Partnerships (continued)
|-- | ---------------------------------------------------

The
Partnership co-invests with Macquarie CountryWide Trust of Australia (MCW) in four joint ventures, two in which the Partnership has an ownership interest of 25% (collectively, MCWR I), and two in which it has an ownership
interest of 24.95% (collectively, MCWR II).

As of December 31, 2006, MCWR I owned 50 shopping centers, had total assets of
$728.3 million, and net income of $18.2 million for the year ended. RCLPs share of MCWR Is total assets and net income was $181.5 million and $5.4 million, respectively. During 2006 MCWR I purchased one shopping center from a third party
for $25.0 million. The Partnership contributed $748,466 for its proportionate share of the purchase price, which was net of $12.5 million of assumed mortgage debt and $10.4 million in 1031 proceeds. During 2006, MCWR I sold two shopping centers to
unrelated parties for $28.0 million for a gain of $7.8 million. During 2005, MCWR I acquired one shopping center from an unrelated party for a purchase price of $24.4 million. The Partnership contributed $4.5 million for its proportionate share of
the purchase price, which was net of loan financing placed on the shopping center by MCWR I. In addition, MCWR I acquired two properties from the Partnership valued at $31.9 million, for which the Partnership received cash of $25.7 million for
MCWs proportionate share. During 2005, MCWR I sold four shopping centers to unrelated parties for $34.7 million with a gain of $582,910.

On June 1, 2005, MCWR II closed on the acquisition of a retail shopping center portfolio (the First Washington Portfolio) for a purchase price of approximately $2.8 billion, including the assumption of approximately $68.6
million of mortgage debt and the issuance of approximately $1.6 billion of new mortgage loans on the properties acquired. The First Washington Portfolio acquisition was accounted for as a purchase business combination by MCWR II. At
December 31, 2005, MCWR II was owned 64.95% by an affiliate of MCW, 34.95% by RCLP and 0.1% by Macquarie-Regency Management, LLC (US Manager). US Manager is owned 50% by RCLP and 50% by an affiliate of Macquarie Bank Limited. On
January 13, 2006, the Partnership sold a portion of its investment in MCWR II to MCW which reduced its ownership interest from 35% to 24.95% for net cash of $113.2 million which is reflected in proceeds from sale of real estate investments in
the consolidated statements of cash flows. The proceeds from the sale were used to reduce the unsecured line of credit. At December 31, 2006, MCWR II is owned 75% by a MCW affiliate, 24.90% by RCLP and 0.1% by US Manager. Including its 50%
share of US Manager, RCLPs effective ownership is 24.95% and is reflected as such under the equity method in the accompanying consolidated financial statements.

RCLP was paid an acquisition fee by MCWR II related to the acquisition of the First Washington Portfolio in 2005. RCLP has the ability to receive additional acquisition fees of approximately $14.2 million (the
Contingent Acquisition Fees) subject to achieving certain targeted income levels in 2006 and 2007. The Contingent Acquisition Fees will only be recognized if earned, and the recognition of income will be limited to that percentage of
MCWR II, or 75.05%, of the joint venture not owned by the Partnership. During 2006, $9.0 million of the Contingent Acquisition Fees was earned and approximately $6.8 million was recognized by the Partnership.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|4. | Investments in Real Estate Partnerships (continued)
|-- | ---------------------------------------------------

As of
December 31, 2006, MCWR II owned 97 shopping centers, had total assets of $2.7 billion and recorded a net loss of $24.7 million for the year ended. RCLPs share of MCWR IIs total assets and net loss was $676.0 million and $7.0
million, respectively. As a result of the significant amount of depreciation and amortization expense recorded by MCWR II in connection with the acquisition of the First Washington Portfolio, the joint venture may continue to report a net loss in
future years, but is expected to produce positive cash flow from operations. During 2006, MCWR II acquired four development properties from the Partnership for a net sales price of $62.4 million and RCLP received cash of $58.4 million. During 2006,
MCWR II sold eight shopping centers for $122.4 million to unrelated parties for a gain of $1.5 million. During 2005, MCWR II sold one shopping center for $9.7 million to an unrelated party with a gain of $35,127.

In December 2006, RCLP formed Regency Retail Partners (the Fund), an open-end, infinite-life investment fund in which its ownership interest
is 26.8%. The Partnership expects to reduce its ownership interest to 20% during 2007 as other partners invest in the Fund. The Fund will have the exclusive right to acquire all RCLP-developed large format community centers upon stabilization that
meet the Funds investment criteria.

As of December 31, 2006, the Fund owned two shopping centers, had total assets of $76.1
million, and recorded net income of $25,633 for the year ended. RCLPs share of the Funds total assets and net income was $20.4 million and $6,870, respectively. At closing, the Fund acquired two properties from the Partnership valued at
$72.6 million, for which the Partnership received cash of $63.7 million for the Funds proportionate share.

Recognition of gains from
sales to joint ventures is recorded on only that portion of the sales not attributable to the Partnerships ownership interest. The gains, operations and cash flows are not recorded as discontinued operations because of RCLPs substantial
continuing involvement in these shopping centers. Columbia, RegCal, and the joint ventures with MCW and the Fund intend to continue to acquire retail shopping centers, some of which they may acquire directly from the Partnership. For those
properties acquired from third parties, the Partnership is required to contribute its pro-rata share of the purchase price to the partnerships.



|                                              |  |           |   |  |      |         |      |        
|--------------------------------------------- |  | --------- | - |  | ---- | ------- | ---- | -------
|                                              |  | Ownership |   |  | 2006 |         | 2005
|Macquarie CountryWide-Regency (MCWR I)        |  | 25.00     | % |  | $    | 60,651  |      | 61,375 
|Macquarie CountryWide Direct (MCWR I)         |  | 25.00     | % |  |      | 6,822   |      | 7,433  
|Macquarie CountryWide-Regency II (MCWR II)(1) |  | 24.95     | % |  |      | 234,378 |      | 363,563
|Macquarie CountryWide-Regency III (MCWR II)   |  | 24.95     | % |  |      | 1,140   |      | 606    
|Columbia Regency Retail Partners (Columbia)   |  | 20.00     | % |  |      | 36,096  |      | 36,659 
|Cameron Village LLC (Columbia)                |  | 30.00     | % |  |      | 20,826  |      | 21,633 
|Columbia Regency Partners II (Columbia)       |  | 20.00     | % |  |      | 11,516  |      | 2,093  
|RegCal, LLC (RegCal)                          |  | 25.00     | % |  |      | 18,514  |      | 14,921 
|Regency Retail Partners (the Fund)            |  | 26.80     | % |  |      | 5,139   |      |       
|Other investments in real estate partnerships |  | 50.00     | % |  |      | 39,008  |      | 37,334 
|                                              |  |           |   |  |      |         |      |        
|Total                                         |  |           |   |  | $    | 434,090 |      | 545,617
|                                              |  |           |   |  |      |         |      |        

---

|(1) | At December 31, 2005, RCLPs ownership interest in Macquarie CountryWide- Regency II was 35%.
|--- | ---------------------------------------------------------------------------------------------



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|4. | Investments in Real Estate Partnerships (continued)
|-- | ---------------------------------------------------

Summarized financial information for the unconsolidated investments on a combined basis, is as follows (in thousands):



|                                           |  |                   |           |                   |          
|------------------------------------------ |  | ----------------- | --------- | ----------------- | ---------
|                                           |  | December 31, 2006 |           | December 31, 2005
|Investment in real estate, net             |  | $                 | 4,029,389 |                   | 3,957,507
|Acquired lease intangible assets, net      |  |                   | 200,835   |                   | 259,033  
|Other assets                               |  |                   | 135,451   |                   | 102,041  
|                                           |  |                   |           |                   |          
|Total assets                               |  | $                 | 4,365,675 |                   | 4,318,581
|                                           |  |                   |           |                   |          
|Notes payable                              |  | $                 | 2,435,229 |                   | 2,372,601
|Acquired lease intangible liabilities, net |  |                   | 69,336    |                   | 86,108   
|Other liabilities                          |  |                   | 70,295    |                   | 75,282   
|Members capital                           |  |                   | 1,790,815 |                   | 1,784,590
|                                           |  |                   |           |                   |          
|Total liabilities and equity               |  | $                 | 4,365,675 |                   | 4,318,581
|                                           |  |                   |           |                   |          

Unconsolidated investments in real estate partnerships had notes payable of $2.4 billion as of
December 31, 2006 and 2005 and the Partnerships proportionate share of these loans was $610.8 million and $764.2 million, respectively. The loans are primarily non-recourse, but for those that are guaranteed by a joint venture,
RCLPs guarantee does not extend beyond its ownership percentage of the joint venture.

The revenues and expenses for the
unconsolidated investments on a combined basis are summarized as follows (in thousands):



|                              |  |      |         |   |      |         |   |      |         |  
|----------------------------- |  | ---- | ------- | - | ---- | ------- | - | ---- | ------- | -
|                              |  | 2006 |         |   | 2005 |         |   | 2004 |        
|Total revenues                |  | $    | 413,864 |   |      | 303,448 |   |      | 110,939 |  
|                              |  |      |         |   |      |         |   |      |         |  
|Operating expenses:           |  |      |         |   |      |         |   |      |         |  
|Depreciation and amortization |  |      | 173,812 |   |      | 145,669 |   |      | 28,538  |  
|Operating and maintenance     |  |      | 57,844  |   |      | 42,206  |   |      | 16,513  |  
|General and administrative    |  |      | 6,839   |   |      | 6,119   |   |      | 3,628   |  
|Real estate taxes             |  |      | 48,983  |   |      | 33,726  |   |      | 13,448  |  
|                              |  |      |         |   |      |         |   |      |         |  
|Total operating expenses      |  |      | 287,478 |   |      | 227,720 |   |      | 62,127  |  
|                              |  |      |         |   |      |         |   |      |         |  
|Other expense (income):       |  |      |         |   |      |         |   |      |         |  
|Interest expense, net         |  |      | 125,378 |   |      | 83,352  |   |      | 20,000  |  
|Gain on sale of real estate   |  |      | (9,225  | ) |      | (9,499  | ) |      | (18,977 | )
|Other income                  |  |      | 384     |   |      | (356    | ) |      |        |  
|                              |  |      |         |   |      |         |   |      |         |  
|Total other expense (income)  |  |      | 116,537 |   |      | 73,497  |   |      | 1,023   |  
|                              |  |      |         |   |      |         |   |      |         |  
|Net income                    |  | $    | 9,849   |   |      | 2,231   |   |      | 47,789  |  
|                              |  |      |         |   |      |         |   |      |         |  



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|5. | Notes Receivable
|-- | ----------------

The Partnership has notes receivables
outstanding of $20.0 million and $46.5 million at December 31, 2006 and 2005, respectively. The notes bear interest ranging from 6.75% to 8.0% with maturity dates through November 2014.



|6. | Acquired Lease Intangibles
|-- | --------------------------

During 2006, the Partnership
acquired one shopping center and in accordance with Statement 141, acquired lease intangible assets and acquired lease intangible liabilities of $6.1 million and $5.0 million, respectively were recorded for the acquisition. The Partnership has
acquired lease intangible assets of $12.3 million of which $11.7 million relates to in-place leases at December 31, 2006. These in-place leases have a remaining weighted average amortization period of approximately 6.3 years and the aggregate
amortization expense was approximately $3.8 million, $4.0 million and $2.2 million for the years ended December 31, 2006, 2005 and 2004, respectively. The Partnership has above market lease intangible assets of $623,130 recorded net of a
reduction to minimum rent of $81,753 at December 31, 2006. The remaining weighted average amortization period is approximately 7.2 years. Acquired lease intangible liabilities are all related to below-market rents and recorded net of previously
accreted minimum rent of $4.3 million and $2.9 million at December 31, 2006 and 2005, respectively. The remaining weighted average accretion period is approximately 7.2 years.

The estimated aggregate amortization and accretion amounts from acquired lease intangibles for each of the next five years are as follows (in thousands):



|                         |  |                      |  |             
|------------------------ |  | -------------------- |  | ------------
|Year Ending
December 31, |  | Amortization Expense |  | Minimum Rent
|2007                     |  | $2,686               |  | 1,297       
|2008                     |  | 1,464                |  | 1,130       
|2009                     |  | 1,377                |  | 1,121       
|2010                     |  | 1,347                |  | 570         
|2011                     |  | 1,008                |  | 541         



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|7. | Notes Payable and Unsecured Line of Credit
|-- | ------------------------------------------

The
Partnerships outstanding debt at December 31, 2006 and 2005 consists of the following (in thousands):



|                             |  |      |           |      |          
|---------------------------- |  | ---- | --------- | ---- | ---------
|                             |  | 2006 |           | 2005
|Notes Payable:               |  |      |           |      |          
|Fixed rate mortgage loans    |  | $    | 186,897   |      | 175,403  
|Variable rate mortgage loans |  |      | 68,662    |      | 77,906   
|Fixed rate unsecured loans   |  |      | 1,198,827 |      | 1,198,633
|                             |  |      |           |      |          
|Total notes payable          |  |      | 1,454,386 |      | 1,451,942
|Unsecured line of credit     |  |      | 121,000   |      | 162,000  
|                             |  |      |           |      |          
|Total                        |  | $    | 1,575,386 |      | 1,613,942
|                             |  |      |           |      |          

The Partnership has an unsecured revolving line of credit (the Line) with a commitment
of $500 million and the right to expand the Line by an additional $150 million subject to additional lender syndication. The Line has a three-year term which expires in 2007 with a one-year extension at the Partnerships option with an interest
rate of LIBOR plus .75%. At December 31, 2006, the balance on the Line was $121 million. Contractual interest rates on the Line, which are based on LIBOR plus .75%, were 6.125% and 5.125% at December 31, 2006 and 2005, respectively.

The spread paid on the Line is dependent upon the Partnership maintaining specific investment-grade ratings. The Partnership is also
required to comply, and is in compliance, with certain financial covenants such as Minimum Net Worth, Total Liabilities to Gross Asset Value (GAV) and Recourse Secured Debt to GAV, Fixed Charge Coverage and other covenants customary with
this type of unsecured financing. The Line is used primarily to finance the development of real estate, but is also available for general working-capital purposes.

In February, 2007, RCLP entered into a new loan agreement under the Line which increased the commitment to $600 million with the right to increase the facility size to $750 million. The contractual interest rate will
be reduced to LIBOR plus .55% and will have an initial term of 48 months followed by a 12 month extension option.

Mortgage loans are
secured by certain real estate properties and may be prepaid, but could be subject to a yield-maintenance premium or prepayment penalty. Mortgage loans are generally due in monthly installments of interest and principal and mature over various terms
through 2017. The Partnership intends to repay mortgage loans at maturity from proceeds from the Line. Variable interest rates on mortgage loans are currently based on LIBOR plus a spread in a range of 90 to 135 basis points. Fixed interest rates on
mortgage loans range from 5.22% to 8.95%.

The fair value of the Partnerships variable rate notes payable and the Line are considered
to approximate fair value, since the interest rates on such instruments re-price based on current market conditions. The fair value of fixed rate loans are estimated using cash flows discounted at current market rates available to the Partnership
for debt with similar terms and average maturities. Fixed rate loans assumed in connection with real estate acquisitions are recorded in the accompanying consolidated financial statements at fair value. Based on the estimates used by the
Partnership, the fair value of notes payable and the Line is approximately $1.6 billion at December 31, 2006.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|7. | Notes Payable and Unsecured Line of Credit (continued)
|-- | ------------------------------------------------------

As
of December 31, 2006, scheduled principal repayments on notes payable and the Line were as follows (in thousands):



|                                     |  |                            |        |                     |           |               |          
|------------------------------------ |  | -------------------------- | ------ | ------------------- | --------- | ------------- | ---------
|Scheduled Principal Payments by Year |  | ScheduledPrincipalPayments |        | Term LoanMaturities |           | TotalPayments
|2007 (includes the Line)             |  | $                          | 3,505  |                     | 213,134   |               | 216,639  
|2008                                 |  |                            | 3,352  |                     | 19,618    |               | 22,970   
|2009                                 |  |                            | 3,352  |                     | 53,088    |               | 56,440   
|2010                                 |  |                            | 3,190  |                     | 177,208   |               | 180,398  
|2011                                 |  |                            | 3,191  |                     | 251,123   |               | 254,314  
|Beyond 5 Years                       |  |                            | 8,764  |                     | 834,292   |               | 843,056  
|Unamortized debt premiums            |  |                            |       |                     | 1,569     |               | 1,569    
|                                     |  |                            |        |                     |           |               |          
|Total                                |  | $                          | 25,354 |                     | 1,550,032 |               | 1,575,386
|                                     |  |                            |        |                     |           |               |          



|8. | Derivative Financial Instruments
|-- | --------------------------------

The Partnership uses
derivative instruments primarily to manage exposures to interest rate risks. In order to manage the volatility relating to interest rate risk, the Partnership may enter into interest rate hedging arrangements from time to time. None of the
Partnerships derivatives are designated as fair value hedges. The Partnership does not utilize derivative financial instruments for trading or speculative purposes.

On March 10, 2006, the Partnership entered into four forward-starting interest rate swaps totaling $396.7 million with fixed rates of 5.399%, 5.415%, 5.399% and 5.415%. The Partnership designated these swaps as
cash flow hedges to fix $400 million fixed rate financing expected to occur in 2010 and 2011. The change in fair value of these swaps from inception generated a liability of $2.9 million at December 31, 2006, which is recorded in accounts
payable and other liabilities in the accompanying consolidated balance sheet.

On April 1, 2005, the Partnership entered into three
forward-starting interest rate swaps of approximately $65.6 million each with fixed rates of 5.029%, 5.05% and 5.05% to fix the rate on unsecured notes issued in July 2005. On July 13, 2005, the Partnership settled the swaps with a payment to
the counter-parties for $7.3 million. During 2003, the Partnership entered into two forward-starting interest rate swaps for a total of $144.2 million to fix the rate on a refinancing in April 2004. On March 31, 2004, the Partnership settled
these swaps with a payment to the counter-party for $5.7 million. The adjustment to interest expense recorded in 2006 related to the settlement of these swaps is approximately $1.3 million and the unamortized balance at December 31, 2006 is
$10.4 million.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|8. | Derivative Financial Instruments (continued)
|-- | --------------------------------------------

All of these
swaps qualify for hedge accounting under Statement 133. Realized losses associated with the swaps settled in 2005 and 2004 and unrealized losses associated with the swaps entered into in 2006 have been included in accumulated other comprehensive
income (loss) in the Companys consolidated statements of stockholders equity and comprehensive income (loss) and the Partnerships consolidated statement of changes in partners capital and comprehensive income (loss). The
unamortized balance of the realized losses is being amortized as additional interest expense over the ten year terms of the hedged loans. Unrealized losses will not be amortized until such time that the expected debt issuance is completed in 2010
and 2011 as long as the swaps continue to qualify for hedge accounting.



|9. | Regencys Stockholders Equity and Partners Capital
|-- | ----------------------------------------------------



| | (a) | Preferred Units
| | --- | ---------------

At December 31, 2006 and 2005, the
face value of the Series D Preferred Units was $50 million with a fixed distribution rate of 7.45% and recorded on the accompanying consolidated balance sheets net of original issuance costs.

On August 1, 2005, the Partnership redeemed the $30 million Series E Preferred Units and expensed related issuance costs of $762,180. On
September 7, 2005, the Partnership redeemed the $24 million Series F Preferred Units and expensed their related issuance costs of $634,201. The redemptions were funded from the net proceeds from issuing common stock related to a Forward Sale
Agreement as discussed further below.

Terms and conditions for the Series D Preferred Units outstanding as of December 31, 2006 are
summarized as follows:



|                  |  |                    |  |                   |  |                        |  |                           
|----------------- |  | ------------------ |  | ----------------- |  | ---------------------- |  | --------------------------
|Units Outstanding |  | Amount Outstanding |  | Distribution Rate |  | Callableby Partnership |  | Exchangeableby Unit holder
|500,000           |  | $50,000,000        |  | 7.450%            |  | 09/29/09               |  | 01/01/16                  

The Preferred Units, which may be called by RCLP at par beginning September 29, 2009, have no
stated maturity or mandatory redemption and pay a cumulative, quarterly dividend at a fixed rate. The Preferred Units may be exchanged by the holder for Cumulative Redeemable Preferred Stock (Preferred Stock) at an exchange rate of one
share for one unit. The Preferred Units and the related Preferred Stock are not convertible into common stock of the Company.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|9. | Regencys Stockholders Equity and Partners Capital (continued)
|-- | ----------------------------------------------------------------



| | (b) | Preferred Units of General Partner and Regency Preferred Stock
| | --- | --------------------------------------------------------------

Terms and conditions of the three series of Preferred stock and units outstanding as of December 31, 2006 are summarized as follows:



|         |  |                   |  |                  |  |                       |  |                   |  |                    
|-------- |  | ----------------- |  | ---------------- |  | --------------------- |  | ----------------- |  | -------------------
|Series   |  | SharesOutstanding |  | DepositaryShares |  | LiquidationPreference |  | Distribution Rate |  | Callable by Company
|Series 3 |  | 300,000           |  | 3,000,000        |  | $75,000,000           |  | 7.450%            |  | 04/03/08           
|Series 4 |  | 500,000           |  | 5,000,000        |  | 125,000,000           |  | 7.250%            |  | 08/31/09           
|Series 5 |  | 3,000,000         |  |                 |  | 75,000,000            |  | 6.700%            |  | 08/02/10           
|         |  |                   |  |                  |  |                       |  |                   |  |                    
|         |  | 3,800,000         |  | 8,000,000        |  | $275,000,000          |  |                   |  |                    
|         |  |                   |  |                  |  |                       |  |                   |  |                    

In 2005, the Company issued 3 million shares, or $75 million, of 6.70% Series 5 Preferred
Stock with a liquidation preference of $25 per share of which the proceeds were used to reduce the balance of the Line. The Series 3 and 4 depositary shares, which have a liquidation preference of $25, and the Series 5 preferred shares are
perpetual, are not convertible into common stock of the Company, and are redeemable at par upon Regencys election five years after the issuance date. None of the terms of the Preferred Stock contain any unconditional obligations that would
require the Company to redeem the securities at any time or for any purpose. The proceeds from these preferred stock transactions were contributed to the Partnership in exchange for 300,000 shares of Series 3 Preferred Units, 500,000 of Series 4
Preferred Units and 3,000,000 of Series 5 Preferred Units which were issued to and held by Regency with terms exactly the same as the Series 3, Series 4 and Series 5 Cumulative Redeemable Preferred Stock.



| | (c) | Common Stock
| | --- | ------------

On April 5, 2005, the Company entered
into an agreement to sell 4,312,500 shares of its common stock to an affiliate of Citigroup Global Markets Inc. (Citigroup) at $46.60 per share, in connection with a forward sale agreement (the Forward Sale Agreement). On
August 1, 2005, the Company issued 3,782,500 shares to Citigroup for net proceeds of approximately $175.5 million and on September 7, 2005, the remaining 530,000 shares were issued for net proceeds of $24.4 million. The proceeds from the
sale were used to reduce the Line and redeem the Series E and Series F Preferred Units.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|10. | Stock-Based Compensation and Other Employee Plan
|--- | ------------------------------------------------

The
Partnership recorded stock-based compensation expense for the years ended December 31, 2006, 2005 and 2004 as follows, the components of which are further described below (in thousands):



|                                         |  |      |        |      |        |      |       
|---------------------------------------- |  | ---- | ------ | ---- | ------ | ---- | ------
|                                         |  | 2006 |        | 2005 |        | 2004
|Restricted stock                         |  | $    | 16,584 |      | 16,955 |      | 10,154
|Stock options, dividends and equivalents |  |      | 960    |      | 1,440  |      | 3,928 
|Directors fees paid in common stock     |  |      | 406    |      | 360    |      | 343   
|                                         |  |      |        |      |        |      |       
|Total                                    |  | $    | 17,950 |      | 18,755 |      | 14,425
|                                         |  |      |        |      |        |      |       

The recorded amounts of stock-based compensation expense represent amortization of deferred
compensation related to share based payments in accordance with Statement 123(R). Compensation expense that is specifically identifiable to development activities is capitalized to the associated development project and is included above.

During 2004, as permitted by Statement 123, the Partnership accounted for share-based payments to employees using Opinion 25s
intrinsic value method and recognized no compensation cost for employee stock options. Had the Partnership adopted Statement 123(R) in 2004, the impact of that standard would have approximated the impact of Statement 123 in the disclosure of
pro-forma net income and earnings per share described as follows (in thousands except per unit data):



|                                                                                                                 |  |                   |        
|---------------------------------------------------------------------------------------------------------------- |  | ----------------- | -------
|                                                                                                                 |  | December 31, 2004
|Net income for common unit holders as reported                                                                   |  | $                 | 130,273
|Add: stock-based employee compensation expense included in reported net income                                   |  |                   | 14,425 
|Deduct: total stock-based employee compensation expense determined under fair value based methods for all awards |  |                   | 21,067 
|                                                                                                                 |  |                   |        
|Pro-forma net income                                                                                             |  | $                 | 123,631
|                                                                                                                 |  |                   |        
|Earnings per unit:                                                                                               |  |                   |        
|Basic  as reported                                                                                              |  | $                 | 2.08   
|                                                                                                                 |  |                   |        
|Basic  pro-forma                                                                                                |  | $                 | 1.98   
|                                                                                                                 |  |                   |        
|Diluted  as reported                                                                                            |  | $                 | 2.08   
|                                                                                                                 |  |                   |        
|Diluted  pro-forma                                                                                              |  | $                 | 1.97   
|                                                                                                                 |  |                   |        

The Company has a Long-Term Omnibus Plan (the Plan) under which the Board of Directors
may grant stock options and other stock-based awards to officers, directors and other key employees. The Plan allows the Company to issue up to 5.0 million shares in the form of common stock or stock options, but limits the issuance of common
stock excluding stock options to no more than 2.75 million shares. At December 31, 2006, there were approximately 1.4 million shares available for grant under the Plan either through options or restricted stock. The Plan also limits
outstanding awards to no more than 12% of outstanding common stock.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|10. | Stock-Based Compensation and Other Employee Plan (continued)
|--- | ------------------------------------------------------------

Stock options are granted under the Plan with an exercise price equal to the stocks fair market value at the date of grant. All stock options granted have ten-year lives, contain vesting terms of one to five years from the date of
grant and some have dividend equivalent rights. Stock options granted prior to 2005 also contained reload rights, which allowed an option holder to receive new options each time existing options were exercised if the existing options
were exercised under specific criteria provided for in the Plan. In January 2005, the Company acquired the reload rights of existing stock options from the option holders by granting 771,645 options to 37 employees for an exercise price
of $51.36, the fair value on the date of grant, and granted 7,906 restricted shares to 11 employees representing value of $363,664, substantially canceling all of the reload rights on existing stock options. These stock options and
restricted shares vest 25% per year and are expensed over a four-year period beginning in 2005 in accordance with Statement 123(R). Options granted under the reload buy-out plan do not earn dividend equivalents.

The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton closed-form (Black Scholes) option
valuation model that uses the assumptions noted in the following table. Expected volatilities are based on historical volatility of the Companys stock and other factors. The Company uses historical data and other factors to estimate option
exercises and employee terminations within the valuation model. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The
risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

The Partnership believes that the use of the Black-Scholes model meets the fair value measurement objectives of Statement 123(R) and reflects all substantive characteristics of the instruments being valued. The following table represents
the assumptions used for the Black-Scholes option-pricing model for options granted in the respective year:



|                                                  |  |      |      |   |      |      |   |      |      |  
|------------------------------------------------- |  | ---- | ---- | - | ---- | ---- | - | ---- | ---- | -
|                                                  |  | 2006 |      |   | 2005 |      |   | 2004 |     
|Per share weighted average value of stock options |  | $    | 8.35 |   |      | 5.91 |   |      | 4.75 |  
|Expected dividend yield                           |  |      | 3.8  | % |      | 4.3  | % |      | 4.0  | %
|Risk-free interest rate                           |  |      | 4.9  | % |      | 3.7  | % |      | 2.9  | %
|Expected volatility                               |  |      | 20.0 | % |      | 18.0 | % |      | 19.0 | %
|Expected life in years                            |  |      | 2.1  |   |      | 4.4  |   |      | 2.1  |  



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|10. | Stock-Based Compensation and Other Employee Plan (continued)
|--- | ------------------------------------------------------------

The following table reports stock option activity during the year ended December 31, 2006:



|                                                |  |                  |   |  |                              |       |                                       |     |                                |   |       
|----------------------------------------------- |  | ---------------- | - |  | ---------------------------- | ----- | ------------------------------------- | --- | ------------------------------ | - | ------
|                                                |  | Number ofOptions |   |  | WeightedAverageExercisePrice |       | Remaining Contractual Term (in years) |     | Intrinsic Value (in thousands)
|Outstanding - December 31, 2005                 |  | 2,024,900        |   |  |                              | 47.91 |                                       |     |                                |   |       
|                                                |  |                  |   | 
|Granted                                         |  | 18,827           |   |  |                              | 70.98 |                                       |     |                                |   |       
|Exercised                                       |  | (834,893         | ) |  |                              | 46.96 |                                       |     |                                |   |       
|Forfeited                                       |  | (13,283          | ) |  |                              | 51.36 |                                       |     |                                |   |       
|                                                |  |                  |   |  |                              |       |                                       |     |                                |   |       
|Outstanding - December 31, 2006                 |  | 1,195,551        |   |  | $                            | 48.90 |                                       | 7.5 |                                | $ | 34,997
|                                                |  |                  |   |  |                              |       |                                       |     |                                |   |       
|Vested and expected to vest - December 31, 2006 |  | 1,181,055        |   |  | $                            | 48.87 |                                       | 7.5 |                                | $ | 34,607
|                                                |  |                  |   |  |                              |       |                                       |     |                                |   |       
|Exercisable - December 31, 2006                 |  | 626,779          |   |  | $                            | 46.66 |                                       | 7.0 |                                | $ | 19,748
|                                                |  |                  |   |  |                              |       |                                       |     |                                |   |       

The total intrinsic value of options exercised during the years ended December 31, 2006, 2005
and 2004 was $17.3 million, $7.2 million and $30.7 million, respectively. As of December 31, 2006, there was $2.0 million of unrecognized compensation cost related to non-vested stock options granted under the Plan. That cost is expected to be
recognized through 2008. The Company issues new shares to fulfill option exercises from its authorized shares available.

The following
table presents information regarding unvested option activity during the period ended December 31, 2006:



|                                |  |                            |  |                                     |     
|------------------------------- |  | -------------------------- |  | ----------------------------------- | ----
|                                |  | Non-vestedNumber ofOptions |  | WeightedAverageGrant-DateFair Value
|Non-vested at January 1, 2006   |  | 779,145                    |  | $                                   | 5.86
|Less: 2006 Vesting              |  | 197,091                    |  |                                     | 5.75
|Less: Forfeited                 |  | 13,283                     |  |                                     | 5.90
|                                |  |                            |  |                                     |     
|Non-vested at December 31, 2006 |  | 568,771                    |  | $                                   | 5.90
|                                |  |                            |  |                                     |     



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|10. | Stock-Based Compensation and Other Employee Plan (continued)
|--- | ------------------------------------------------------------

The Company grants restricted stock under the Plan to its employees as a form of long-term compensation and retention. The terms of each grant vary depending upon the participants responsibilities and position within the Company. The
Companys stock grants to date can be categorized into three types: (a) 4-year vesting, (b) performance-based vesting, and (c) 8-year cliff vesting.



| |  | The 4-year vesting grants vest 25% per year beginning in the year of grant. These grants are not subject to future performance measures.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------



| |  | Performance grants are earned subject to future performance measurements, which include individual performance measures, annual growth in earnings, compounded three-year growth in
earnings, and a three-year total shareholder return peer comparison (TSR Grant). Once the performance criteria are met and the actual number of shares earned is determined, certain shares will vest immediately while others will vest over
an additional service period.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The 8-year cliff vesting grants fully vest at the end of the eighth year from the date of grant; however, as a result of the achievement of future performance, primarily growth in
earnings, the vesting of these grants may be accelerated over a shorter term.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Performance grants and 8-year cliff vesting
grants are currently only granted to the Companys senior management. The Company considers the likelihood of meeting the performance criteria based upon managements estimates and analysis of future earnings growth from which it
determines the amounts recognized as expense on a periodic basis. The Company determines the grant date fair value of TSR Grants based upon a Monte Carlo Simulation model. Compensation expense is measured at the grant date and recognized over the
vesting period.

The following table reports restricted stock activity during the year ended December 31, 2006:



|                              |  |                 |   |  |                              |        |                           |   |      
|----------------------------- |  | --------------- | - |  | ---------------------------- | ------ | ------------------------- | - | -----
|                              |  | Number ofShares |   |  | IntrinsicValue(in thousands) |        | WeightedAverageGrantPrice
|Unvested at December 31, 2005 |  | 923,765         |   |  |                              |        |                           |   |      
|                              |  |                 |  
|Shares Granted                |  | 295,208         |   |  |                              |        |                           | $ | 63.75
|Shares Vested and Distributed |  | (415,830        | ) |  |                              |        |                           |   |      
|Shares Forfeited              |  | (24,083         | ) |  |                              |        |                           |   |      
|                              |  |                 |   |  |                              |        |                           |   |      
|Unvested at December 31, 2006 |  | 779,060         |   |  | $                            | 60,899 |                           | $ | 51.67
|                              |  |                 |   |  |                              |        |                           |   |      



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|10. | Stock-Based Compensation and Other Employee Plan (continued)
|--- | ------------------------------------------------------------

The weighed-average grant price for restricted stock granted during the years 2006, 2005 and 2004 was $63.75, $51.38 and $39.79, respectively. The total intrinsic value of restricted stock vested during the years ended December 31,
2006, 2005 and 2004 was $26.3 million, $16.5 million and $11.0 million, respectively. As of December 31, 2006, there was $22.7 million of unrecognized compensation cost related to non-vested restricted stock granted under the Plan, which is
recorded when recognized in additional paid in capital of the Companys consolidated statements of stockholders equity and comprehensive income (loss) and the general partner preferred and common units column of the Partnerships
consolidated statement of changes in partners capital and comprehensive income (loss). This unrecognized compensation cost will be recognized over the next three years through 2009.

The Company maintains a 401(k) retirement plan covering substantially all employees, which permits participants to defer up to the maximum allowable
amount determined by the IRS of their eligible compensation. This deferred compensation, together with Company matching contributions equal to 100% of employee deferrals up to a maximum of $3,500 of their eligible compensation is fully vested and
funded as of December 31, 2006. Costs relating to the matching portion of the plan were approximately $1.1 million, $603,415 and $588,482 for the years ended December 31, 2006, 2005 and 2004, respectively.



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|11. | Earnings per Unit
|--- | -----------------

The following summarizes the
calculation of basic and diluted earnings per unit for the three years ended December 31, 2006, 2005 and 2004, respectively (in thousands except per unit data):



|                                                                                         |  |      |         |      |         |      |        
|---------------------------------------------------------------------------------------- |  | ---- | ------- | ---- | ------- | ---- | -------
|                                                                                         |  | 2006 |         | 2005 |         | 2004
|Numerator:                                                                               |  |      |         |      |         |      |        
|Income from continuing operations                                                        |  | $    | 160,864 |      | 107,254 |      | 121,086
|Discontinued operations                                                                  |  |      | 64,248  |      | 66,782  |      | 37,649 
|                                                                                         |  |      |         |      |         |      |        
|Net income                                                                               |  |      | 225,112 |      | 174,036 |      | 158,735
|Less: Preferred unit distributions and original issuance costs                           |  |      | 23,400  |      | 24,849  |      | 28,462 
|                                                                                         |  |      |         |      |         |      |        
|Net income for common unit holders                                                       |  |      | 201,712 |      | 149,187 |      | 130,273
|Less: Dividends paid on unvested restricted stock                                        |  |      | 978     |      | 1,109   |      | 1,041  
|                                                                                         |  |      |         |      |         |      |        
|Net income for common units holders - basic                                              |  |      | 200,734 |      | 148,078 |      | 129,232
|Add: Dividends paid on Treasury Method restricted stock                                  |  |      | 164     |      | 216     |      | 232    
|                                                                                         |  |      |         |      |         |      |        
|Net income for common unit holders  diluted                                             |  | $    | 200,898 |      | 148,294 |      | 129,464
|                                                                                         |  |      |         |      |         |      |        
|Denominator:                                                                             |  |      |         |      |         |      |        
|Weighted average common units outstanding for basic EPU                                  |  |      | 68,979  |      | 65,804  |      | 61,818 
|Incremental units to be issued under common stock options using the Treasury method      |  |      | 326     |      | 226     |      | 217    
|Incremental units to be issued under unvested restricted stock using the Treasury method |  |      | 69      |      | 98      |      | 110    
|Incremental units to be issued under Forward                                             |  |      |         |      |         |      |        
|Equity Offering using the Treasury method                                                |  |      |        |      | 149     |      |       
|                                                                                         |  |      |         |      |         |      |        
|Weighted average common units outstanding for diluted EPU                                |  |      | 69,374  |      | 66,277  |      | 62,145 
|                                                                                         |  |      |         |      |         |      |        
|Income per common unit  basic                                                           |  |      |         |      |         |      |        
|Income from continuing operations                                                        |  | $    | 1.98    |      | 1.23    |      | 1.47   
|Discontinued operations                                                                  |  |      | 0.93    |      | 1.02    |      | 0.61   
|                                                                                         |  |      |         |      |         |      |        
|Net income for common unit holders per unit                                              |  | $    | 2.91    |      | 2.25    |      | 2.08   
|                                                                                         |  |      |         |      |         |      |        
|Income per common unit  diluted                                                         |  |      |         |      |         |      |        
|Income from continuing operations                                                        |  | $    | 1.97    |      | 1.22    |      | 1.47   
|Discontinued operations                                                                  |  |      | 0.92    |      | 1.01    |      | 0.61   
|                                                                                         |  |      |         |      |         |      |        
|Net income for common unit holders per unit                                              |  | $    | 2.89    |      | 2.23    |      | 2.08   
|                                                                                         |  |      |         |      |         |      |        



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|12. | Operating Leases
|--- | ----------------

The Partnerships properties are
leased to tenants under operating leases with expiration dates extending to the year 2032. Future minimum rents under noncancelable operating leases as of December 31, 2006 excluding both tenant reimbursements of operating expenses and
additional percentage rent based on tenants sales volume are as follows (in thousands):



|                         |  |           
|------------------------ |  | ----------
|Year Ending
December 31, |  | Amount    
|2007                     |  | $287,017  
|2008                     |  | 268,928   
|2009                     |  | 234,918   
|2010                     |  | 199,077   
|2011                     |  | 162,253   
|Thereafter               |  | 987,961   
|                         |  |           
|Total                    |  | $2,140,154
|                         |  |           

The shopping centers tenant base includes primarily national and regional supermarkets, drug
stores, discount department stores and other retailers and, consequently, the credit risk is concentrated in the retail industry. There were no tenants that individually represented more than 7% of the Partnerships future minimum rents.

The Partnership has shopping centers that are subject to non-cancelable long-term ground leases where a third party owns and has leased the
underlying land to RCLP to construct and/or operate a shopping center. In addition, the Partnership has non-cancelable operating leases pertaining to office space from which it conducts its business. The following table summarizes the future
obligations under non-cancelable operating leases as of December 31, 2006 (in thousands):



|                         |  |        
|------------------------ |  | -------
|Year Ending
December 31, |  | Amount 
|2007                     |  | $5,945 
|2008                     |  | 5,012  
|2009                     |  | 4,856  
|2010                     |  | 4,710  
|2011                     |  | 4,636  
|Thereafter               |  | 41,511 
|                         |  |        
|Total                    |  | $66,670
|                         |  |        



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|13. | Commitments and Contingencies
|--- | -----------------------------

The Partnership is involved
in litigation on a number of matters and is subject to certain claims which arise in the normal course of business, none of which, in the opinion of management, is expected to have a material adverse effect on the Partnerships consolidated
financial position, results of operations or liquidity. The Partnership is also subject to numerous environmental laws and regulations as they apply to real estate pertaining to chemicals used by the dry cleaning industry, the existence of asbestos
in older shopping centers, and underground petroleum storage tanks (USTs). The Partnership believes that the tenants who currently operate dry cleaning plants or gas stations do so in accordance with current laws and regulations. The
Partnership has placed environmental insurance, where possible, on specific properties with known contamination, in order to mitigate its environmental risk. The Partnership monitors the shopping centers containing environmental issues and in
certain cases voluntarily remediates the sites. The Partnership also has legal obligations to remediate certain sites and is in the process of doing so. The Partnership estimates the cost associated with these legal obligations to be approximately
$3.8 million of which has been accrued. The Partnership believes that the ultimate disposition of currently known environmental matters will not have a material affect on its financial position, liquidity, or operations; however, it can give no
assurance that existing environmental studies with respect to the shopping centers have revealed all potential environmental liabilities; that any previous owner, occupant or tenant did not create any material environmental condition not known to
it; that the current environmental condition of the shopping centers will not be affected by tenants and occupants, by the condition of nearby properties, or by unrelated third parties; or that changes in applicable environmental laws and
regulations or their interpretation will not result in additional environmental liability to the Partnership.



|14. | Market and Dividend Information (Unaudited)
|--- | -------------------------------------------

The
Companys common stock is traded on the New York Stock Exchange (NYSE) under the symbol REG. The Company currently has approximately 23,900 shareholders. The following table sets forth the high and low sales prices and
the cash dividends declared on the Companys common stock by quarter for 2006 and 2005:



|              |            |        |           |       |                         |      |            |       |           |       |                         |    
|------------- | ---------- | ------ | --------- | ----- | ----------------------- | ---- | ---------- | ----- | --------- | ----- | ----------------------- | ---
|Quarter Ended |            | 2006   |           | 2005 
|              | High Price |        | Low Price |       | Cash Dividends Declared |      | High Price |       | Low Price |       | Cash Dividends Declared
|March 31      |            | $69.00 |           | 58.64 |                         | .595 |            | 55.39 |           | 47.00 |                         | .55
|June 30       |            | 67.99  |           | 59.18 |                         | .595 |            | 59.79 |           | 47.30 |                         | .55
|September 30  |            | 69.06  |           | 60.86 |                         | .595 |            | 63.20 |           | 55.53 |                         | .55
|December 31   |            | 81.42  |           | 67.59 |                         | .595 |            | 60.07 |           | 52.02 |                         | .55



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##### Table of Contents

Regency Centers, L.P.

Notes to Consolidated Financial Statements

December 31, 2006



|15. | Summary of Quarterly Financial Data (Unaudited)
|--- | -----------------------------------------------

Presented
below is a summary of the consolidated quarterly financial data for the years ended December 31, 2006 and 2005 (in thousands except per unit data):



|                                        |  |              |         |   |               |         |   |              |         |   |               |         |  
|--------------------------------------- |  | ------------ | ------- | - | ------------- | ------- | - | ------------ | ------- | - | ------------- | ------- | -
|                                        |  | FirstQuarter |         |   | SecondQuarter |         |   | ThirdQuarter |         |   | FourthQuarter |        
|2006:                                   |  |              |         |   |               |         |   |              |         |   |               |         |  
|Revenues as originally reported         |  | $            | 104,069 |   |               | 108,825 |   |              | 105,633 |   |               | 111,048 |  
|Reclassified to discontinued operations |  |              | (3,489  | ) |               | (3,624  | ) |              | (2,123  | ) |               |        |  
|                                        |  |              |         |   |               |         |   |              |         |   |               |         |  
|Adjusted Revenues                       |  | $            | 100,580 |   |               | 105,201 |   |              | 103,510 |   |               | 111,048 |  
|                                        |  |              |         |   |               |         |   |              |         |   |               |         |  
|Net income for common unit holders      |  | $            | 67,036  |   |               | 32,620  |   |              | 39,885  |   |               | 62,172  |  
|                                        |  |              |         |   |               |         |   |              |         |   |               |         |  
|Net income per unit:                    |  |              |         |   |               |         |   |              |         |   |               |         |  
|Basic                                   |  | $            | 0.97    |   |               | 0.47    |   |              | 0.57    |   |               | 0.89    |  
|                                        |  |              |         |   |               |         |   |              |         |   |               |         |  
|Diluted                                 |  | $            | 0.97    |   |               | 0.47    |   |              | 0.57    |   |               | 0.89    |  
|                                        |  |              |         |   |               |         |   |              |         |   |               |         |  
|2005:                                   |  |              |         |   |               |         |   |              |         |   |               |         |  
|Revenues as originally reported         |  | $            | 101,688 |   |               | 111,485 |   |              | 93,626  |   |               | 98,411  |  
|Reclassified to discontinued operations |  |              | (9,023  | ) |               | (6,680  | ) |              | (5,501  | ) |               | (3,370  | )
|                                        |  |              |         |   |               |         |   |              |         |   |               |         |  
|Adjusted Revenues                       |  | $            | 92,665  |   |               | 104,805 |   |              | 88,125  |   |               | 95,041  |  
|                                        |  |              |         |   |               |         |   |              |         |   |               |         |  
|Net income for common unit holders      |  | $            | 35,548  |   |               | 41,149  |   |              | 28,160  |   |               | 44,329  |  
|                                        |  |              |         |   |               |         |   |              |         |   |               |         |  
|Net income per unit:                    |  |              |         |   |               |         |   |              |         |   |               |         |  
|Basic                                   |  | $            | 0.55    |   |               | 0.64    |   |              | 0.42    |   |               | 0.64    |  
|                                        |  |              |         |   |               |         |   |              |         |   |               |         |  
|Diluted                                 |  | $            | 0.55    |   |               | 0.63    |   |              | 0.41    |   |               | 0.64    |  
|                                        |  |              |         |   |               |         |   |              |         |   |               |         |  



F-39



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##### Table of Contents

REGENCY CENTERS, L.P.

Combined Real Estate and Accumulated Depreciation

December 31, 2006

(in thousands)



|                              |  |              |  |                         |  |                               |            |  |        |  |                         |  |                          |  |        |  |                          |  |                          |  |          
|----------------------------- |  | ------------ |  | ----------------------- |  | ----------------------------- | ---------- |  | ------ |  | ----------------------- |  | ------------------------ |  | ------ |  | ------------------------ |  | ------------------------ |  | ---------
|                              |  | Initial Cost |  | Cost Capitalized        |  |                               | Total Cost |  |        |  | Total CostNet of        |  |                         
|                              |  | Land         |  | Building & Improvements |  | Subsequent to Acquisition (a) |            |  | Land   |  | Building & Improvements |  | Properties held for Sale |  | Total  |  | Accumulated Depreciation |  | Accumulated Depreciation |  | Mortgages
|4S COMMONS TOWN CENTER        |  | 28,009       |  | 32,692                  |  |                              |            |  | 28,009 |  | 32,692                  |  |                         |  | 60,701 |  | 95                       |  | 60,606                   |  |         
|ALDEN BRIDGE                  |  | 12,937       |  | 10,146                  |  | 1,902                         |            |  | 13,810 |  | 11,175                  |  |                         |  | 24,985 |  | 2,406                    |  | 22,579                   |  | 9,733    
|AMHERST STREET VILLAGE CENTER |  | 1,609        |  | 5,759                   |  |                              |            |  | 1,609  |  | 5,759                   |  |                         |  | 7,368  |  | 163                      |  | 7,205                    |  |         
|ANTHEM MARKETPLACE            |  | 6,846        |  | 13,563                  |  | (107                          | )          |  | 6,714  |  | 13,588                  |  |                         |  | 20,302 |  | 1,573                    |  | 18,729                   |  | 14,870   
|ASHBURN FARM MARKET CENTER    |  | 9,869        |  | 4,747                   |  | (11                           | )          |  | 9,835  |  | 4,770                   |  |                         |  | 14,605 |  | 1,320                    |  | 13,285                   |  |         
|ASHFORD PLACE                 |  | 2,804        |  | 9,944                   |  | (339                          | )          |  | 2,584  |  | 9,825                   |  |                         |  | 12,409 |  | 3,210                    |  | 9,199                    |  | 3,521    
|ATASCOCITA CENTER             |  | 1,008        |  | 2,237                   |  | 6,435                         |            |  | 3,997  |  | 5,683                   |  |                         |  | 9,680  |  | 510                      |  | 9,170                    |  |         
|ATASCOCITA SHELL STATION      |  | 1,474        |  |                        |  |                              |            |  | 1,474  |  |                        |  |                         |  | 1,474  |  |                         |  | 1,474                    |  |         
|AVENTURA SHOPPING CENTER      |  | 2,751        |  | 9,318                   |  | 1,050                         |            |  | 2,751  |  | 10,368                  |  |                         |  | 13,119 |  | 6,329                    |  | 6,790                    |  | 8,750    
|BECKETT COMMONS               |  | 1,625        |  | 5,845                   |  | 5,011                         |            |  | 1,625  |  | 10,856                  |  |                         |  | 12,481 |  | 2,086                    |  | 10,395                   |  |         
|BELLEVIEW SQUARE              |  | 8,132        |  | 8,610                   |  | 299                           |            |  | 8,132  |  | 8,909                   |  |                         |  | 17,041 |  | 994                      |  | 16,047                   |  | 9,341    
|BENEVA VILLAGE SHOPS          |  | 2,484        |  | 8,851                   |  | 1,093                         |            |  | 2,484  |  | 9,944                   |  |                         |  | 12,428 |  | 2,240                    |  | 10,188                   |  |         
|BERKSHIRE COMMONS             |  | 2,295        |  | 8,151                   |  | 535                           |            |  | 2,295  |  | 8,686                   |  |                         |  | 10,981 |  | 3,060                    |  | 7,921                    |  | 8,750    
|BETHANY PARK PLACE            |  | 4,605        |  | 5,792                   |  | (203                          | )          |  | 4,290  |  | 5,904                   |  |                         |  | 10,194 |  | 2,519                    |  | 7,675                    |  |         
|BLOOMINGDALE                  |  | 3,862        |  | 14,101                  |  | 704                           |            |  | 3,862  |  | 14,805                  |  |                         |  | 18,667 |  | 3,632                    |  | 15,035                   |  |         
|BLOSSOM VALLEY                |  | 7,804        |  | 10,321                  |  | 468                           |            |  | 7,804  |  | 10,789                  |  |                         |  | 18,593 |  | 2,233                    |  | 16,360                   |  |         
|BOULEVARD CENTER              |  | 3,659        |  | 9,658                   |  | 803                           |            |  | 3,659  |  | 10,461                  |  |                         |  | 14,120 |  | 2,254                    |  | 11,866                   |  |         
|BOYNTON LAKES PLAZA           |  | 2,783        |  | 10,043                  |  | 945                           |            |  | 2,628  |  | 11,143                  |  |                         |  | 13,771 |  | 2,741                    |  | 11,030                   |  |         
|BRIARCLIFF LA VISTA           |  | 694          |  | 2,463                   |  | 829                           |            |  | 694    |  | 3,292                   |  |                         |  | 3,986  |  | 1,373                    |  | 2,613                    |  |         
|BRIARCLIFF VILLAGE            |  | 4,597        |  | 16,304                  |  | 8,358                         |            |  | 4,597  |  | 24,662                  |  |                         |  | 29,259 |  | 8,053                    |  | 21,206                   |  |         
|BUCKHEAD COURT                |  | 1,738        |  | 6,163                   |  | 1,981                         |            |  | 1,628  |  | 8,254                   |  |                         |  | 9,882  |  | 2,631                    |  | 7,251                    |  |         
|BUCKLEY SQUARE                |  | 2,970        |  | 5,126                   |  | 702                           |            |  | 2,970  |  | 5,828                   |  |                         |  | 8,798  |  | 1,380                    |  | 7,418                    |  |         
|CAMBRIDGE SQUARE SHOPPING CTR |  | 792          |  | 2,916                   |  | 1,339                         |            |  | 734    |  | 4,313                   |  |                         |  | 5,047  |  | 1,228                    |  | 3,819                    |  |         
|CARMEL COMMONS                |  | 2,466        |  | 8,903                   |  | 3,547                         |            |  | 2,466  |  | 12,450                  |  |                         |  | 14,916 |  | 3,168                    |  | 11,748                   |  |         
|CARRIAGE GATE                 |  | 741          |  | 2,495                   |  | 2,393                         |            |  | 833    |  | 4,796                   |  |                         |  | 5,629  |  | 2,292                    |  | 3,337                    |  |         
|CHASEWOOD PLAZA               |  | 1,675        |  | 11,391                  |  | 12,273                        |            |  | 4,612  |  | 20,727                  |  |                         |  | 25,339 |  | 7,591                    |  | 17,748                   |  | 8,750    
|CHERRY GROVE                  |  | 3,533        |  | 12,710                  |  | 2,662                         |            |  | 3,533  |  | 15,372                  |  |                         |  | 18,905 |  | 3,481                    |  | 15,424                   |  |         
|CHESHIRE STATION              |  | 10,182       |  | 8,443                   |  | (421                          | )          |  | 9,896  |  | 8,308                   |  |                         |  | 18,204 |  | 2,642                    |  | 15,562                   |  |         
|CLOVIS COMMONS                |  | 11,097       |  | 22,699                  |  |                              |            |  | 11,097 |  | 22,699                  |  |                         |  | 33,796 |  | 701                      |  | 33,095                   |  |         
|COCHRANS CROSSING            |  | 13,154       |  | 10,066                  |  | 2,205                         |            |  | 13,154 |  | 12,271                  |  |                         |  | 25,425 |  | 2,536                    |  | 22,889                   |  |         
|COOPER STREET                 |  | 2,079        |  | 10,682                  |  | 84                            |            |  | 2,079  |  | 10,766                  |  |                         |  | 12,845 |  | 2,152                    |  | 10,693                   |  |         
|COSTA VERDE                   |  | 12,740       |  | 25,261                  |  | 1,150                         |            |  | 12,740 |  | 26,411                  |  |                         |  | 39,151 |  | 6,600                    |  | 32,551                   |  |         
|COURTYARD SHOPPING CENTER     |  | 1,762        |  | 4,187                   |  | (78                           | )          |  | 5,867  |  | 4                       |  |                         |  | 5,871  |  |                         |  | 5,871                    |  |         
|CROMWELL SQUARE               |  | 1,772        |  | 6,285                   |  | 605                           |            |  | 1,772  |  | 6,890                   |  |                         |  | 8,662  |  | 2,183                    |  | 6,479                    |  |         
|DELK SPECTRUM                 |  | 2,985        |  | 11,049                  |  | 752                           |            |  | 2,985  |  | 11,801                  |  |                         |  | 14,786 |  | 2,712                    |  | 12,074                   |  |         
|DIABLO PLAZA                  |  | 5,300        |  | 7,536                   |  | 493                           |            |  | 5,300  |  | 8,029                   |  |                         |  | 13,329 |  | 1,775                    |  | 11,554                   |  |         
|DICKSON TN                    |  | 675          |  | 1,568                   |  |                              |            |  | 675    |  | 1,568                   |  |                         |  | 2,243  |  | 283                      |  | 1,960                    |  |         
|DUNWOODY HALL                 |  | 1,819        |  | 6,451                   |  | 5,739                         |            |  | 2,529  |  | 11,480                  |  |                         |  | 14,009 |  | 3,388                    |  | 10,621                   |  |         
|DUNWOODY VILLAGE              |  | 2,326        |  | 7,216                   |  | 8,945                         |            |  | 3,336  |  | 15,151                  |  |                         |  | 18,487 |  | 4,307                    |  | 14,180                   |  |         
|EAST POINTE                   |  | 1,868        |  | 6,743                   |  | 205                           |            |  | 1,730  |  | 7,086                   |  |                         |  | 8,816  |  | 1,959                    |  | 6,857                    |  |         
|EAST PORT PLAZA               |  | 3,257        |  | 11,611                  |  | (1,579                        | )          |  | 3,257  |  | 10,032                  |  |                         |  | 13,289 |  | 1,700                    |  | 11,589                   |  |         
|EAST TOWNE SHOPPING CENTER    |  | 2,957        |  | 4,881                   |  | 41                            |            |  | 2,957  |  | 4,922                   |  |                         |  | 7,879  |  | 753                      |  | 7,126                    |  |         
|EL CAMINO                     |  | 7,600        |  | 10,852                  |  | 664                           |            |  | 7,600  |  | 11,516                  |  |                         |  | 19,116 |  | 2,513                    |  | 16,603                   |  |         
|EL NORTE PKWY PLAZA           |  | 2,834        |  | 6,332                   |  | 900                           |            |  | 2,834  |  | 7,232                   |  |                         |  | 10,066 |  | 1,569                    |  | 8,497                    |  |         
|ENCINA GRANDE                 |  | 5,040        |  | 10,379                  |  | 931                           |            |  | 5,040  |  | 11,310                  |  |                         |  | 16,350 |  | 2,362                    |  | 13,988                   |  |         
|FENTON MARKETPLACE            |  | 3,020        |  | 10,153                  |  | (334                          | )          |  | 2,615  |  | 10,224                  |  |                         |  | 12,839 |  | 1,398                    |  | 11,441                   |  |         
|FLEMING ISLAND                |  | 3,077        |  | 6,292                   |  | 5,151                         |            |  | 3,077  |  | 11,443                  |  |                         |  | 14,520 |  | 2,278                    |  | 12,242                   |  | 2,288    
|FOLSOM PRAIRIE CITY CROSSING  |  | 3,944        |  | 11,258                  |  | 1,942                         |            |  | 4,164  |  | 12,980                  |  |                         |  | 17,144 |  | 1,826                    |  | 15,318                   |  |         
|FORT BEND CENTER              |  | 6,966        |  | 4,197                   |  | (4,413                        | )          |  | 2,552  |  | 4,198                   |  |                         |  | 6,750  |  | 934                      |  | 5,816                    |  |         
|FORTUNA                       |  | 8,336        |  | 6,898                   |  | 1,041                         |            |  | 7,925  |  | 8,350                   |  |                         |  | 16,275 |  | 664                      |  | 15,611                   |  |         
|FRANKFORT CROSSING SHPG CTR   |  | 8,325        |  | 6,067                   |  | 558                           |            |  | 7,417  |  | 7,533                   |  |                         |  | 14,950 |  | 1,796                    |  | 13,154                   |  |         



1



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##### Table of Contents

REGENCY CENTERS, L.P.

Combined Real Estate and Accumulated Depreciation

December 31, 2006

(in thousands)



|                               |  |              |  |                         |  |                               |            |  |        |  |                         |  |                          |  |        |  |                          |  |                          |  |          
|------------------------------ |  | ------------ |  | ----------------------- |  | ----------------------------- | ---------- |  | ------ |  | ----------------------- |  | ------------------------ |  | ------ |  | ------------------------ |  | ------------------------ |  | ---------
|                               |  | Initial Cost |  | Cost Capitalized        |  |                               | Total Cost |  |        |  | Total CostNet of        |  |                         
|                               |  | Land         |  | Building & Improvements |  | Subsequent to Acquisition (a) |            |  | Land   |  | Building & Improvements |  | Properties held for Sale |  | Total  |  | Accumulated Depreciation |  | Accumulated Depreciation |  | Mortgages
|FRIARS MISSION                 |  | 6,660        |  | 27,277                  |  | 626                           |            |  | 6,660  |  | 27,903                  |  |                         |  | 34,563 |  | 5,446                    |  | 29,117                   |  | 949      
|GARDEN SQUARE                  |  | 2,074        |  | 7,615                   |  | 635                           |            |  | 2,136  |  | 8,188                   |  |                         |  | 10,324 |  | 2,021                    |  | 8,303                    |  | 8,750    
|GARNER                         |  | 5,591        |  | 19,897                  |  | 1,940                         |            |  | 5,591  |  | 21,837                  |  |                         |  | 27,428 |  | 4,570                    |  | 22,858                   |  |         
|GATEWAY SHOPPING CENTER        |  | 51,719       |  | 4,545                   |  | 1,580                         |            |  | 52,610 |  | 5,234                   |  |                         |  | 57,844 |  | 1,652                    |  | 56,192                   |  | 21,427   
|GELSONS WESTLAKE MARKET PLAZA |  | 2,332        |  | 8,316                   |  | 3,523                         |            |  | 3,157  |  | 11,014                  |  |                         |  | 14,171 |  | 1,251                    |  | 12,920                   |  |         
|GLENWOOD VILLAGE               |  | 1,194        |  | 4,235                   |  | 1,065                         |            |  | 1,194  |  | 5,300                   |  |                         |  | 6,494  |  | 1,720                    |  | 4,774                    |  |         
|GRANDE OAK                     |  | 5,569        |  | 5,900                   |  | (481                          | )          |  | 5,091  |  | 5,897                   |  |                         |  | 10,988 |  | 1,325                    |  | 9,663                    |  |         
|HANCOCK                        |  | 8,232        |  | 24,249                  |  | 3,313                         |            |  | 8,232  |  | 27,562                  |  |                         |  | 35,794 |  | 6,048                    |  | 29,746                   |  |         
|HARDING PLACE                  |  | 545          |  | 567                     |  |                              |            |  | 545    |  | 567                     |  |                         |  | 1,112  |  | 23                       |  | 1,089                    |  |         
|HARPETH VILLAGE FIELDSTONE     |  | 2,284        |  | 5,559                   |  | 3,858                         |            |  | 2,284  |  | 9,417                   |  |                         |  | 11,701 |  | 2,109                    |  | 9,592                    |  |         
|HASLEY CANYON VILLAGE          |  | 6,163        |  | 6,569                   |  | 1,101                         |            |  | 6,180  |  | 7,653                   |  |                         |  | 13,833 |  | 653                      |  | 13,180                   |  |         
|HERITAGE LAND                  |  | 12,390       |  |                        |  |                              |            |  | 12,390 |  |                        |  |                         |  | 12,390 |  |                         |  | 12,390                   |  |         
|HERITAGE PLAZA                 |  |             |  | 23,676                  |  | 2,008                         |            |  |       |  | 25,684                  |  |                         |  | 25,684 |  | 5,637                    |  | 20,047                   |  |         
|HERSHEY                        |  | 7            |  | 807                     |  | 1                             |            |  | 7      |  | 808                     |  |                         |  | 815    |  | 124                      |  | 691                      |  |         
|HILLCREST VILLAGE              |  | 1,600        |  | 1,798                   |  | 84                            |            |  | 1,600  |  | 1,882                   |  |                         |  | 3,482  |  | 380                      |  | 3,102                    |  |         
|HINSDALE                       |  | 4,218        |  | 15,040                  |  | 2,899                         |            |  | 5,734  |  | 16,423                  |  |                         |  | 22,157 |  | 3,499                    |  | 18,658                   |  |         
|HOLLYMEAD                      |  | 12,781       |  | 16,989                  |  | 987                           |            |  | 13,038 |  | 17,719                  |  |                         |  | 30,757 |  | 900                      |  | 29,857                   |  |         
|HYDE PARK                      |  | 9,240        |  | 33,340                  |  | 6,540                         |            |  | 9,768  |  | 39,352                  |  |                         |  | 49,120 |  | 9,703                    |  | 39,417                   |  |         
|INDEPENDENCE SQUARE            |  | 4,963        |  | 7,911                   |  | 56                            |            |  | 4,966  |  | 7,964                   |  |                         |  | 12,930 |  | 1,014                    |  | 11,916                   |  |         
|INGLEWOOD PLAZA                |  | 1,300        |  | 1,862                   |  | 297                           |            |  | 1,300  |  | 2,159                   |  |                         |  | 3,459  |  | 478                      |  | 2,981                    |  |         
|JOHNS CREEK SHOPPING CENTER   |  | 5,480        |  | 7,758                   |  | 184                           |            |  | 5,489  |  | 7,933                   |  |                         |  | 13,422 |  | 838                      |  | 12,584                   |  |         
|KELLER TOWN CENTER             |  | 2,294        |  | 12,239                  |  | 516                           |            |  | 2,294  |  | 12,755                  |  |                         |  | 15,049 |  | 2,593                    |  | 12,456                   |  |         
|KERNERSVILLE PLAZA             |  | 1,742        |  | 6,081                   |  | 558                           |            |  | 1,742  |  | 6,639                   |  |                         |  | 8,381  |  | 1,483                    |  | 6,898                    |  | 4,425    
|KINGSDALE SHOPPING CENTER      |  | 3,867        |  | 14,020                  |  | 6,414                         |            |  | 4,028  |  | 20,273                  |  |                         |  | 24,301 |  | 4,990                    |  | 19,311                   |  |         
|KROGER NEW ALBANY CENTER       |  | 2,770        |  | 6,379                   |  | 1,265                         |            |  | 3,844  |  | 6,570                   |  |                         |  | 10,414 |  | 2,022                    |  | 8,392                    |  | 6,162    
|LAKE PINE PLAZA                |  | 2,008        |  | 6,909                   |  | 679                           |            |  | 2,008  |  | 7,588                   |  |                         |  | 9,596  |  | 1,702                    |  | 7,894                    |  | 5,517    
|LEBANON/LEGACY CENTER          |  | 3,906        |  | 7,391                   |  | 418                           |            |  | 3,913  |  | 7,802                   |  |                         |  | 11,715 |  | 1,394                    |  | 10,321                   |  |         
|LEETSDALE MARKETPLACE          |  | 3,420        |  | 9,934                   |  | 317                           |            |  | 3,420  |  | 10,251                  |  |                         |  | 13,671 |  | 2,071                    |  | 11,600                   |  |         
|LITTLETON SQUARE               |  | 2,030        |  | 8,255                   |  | 409                           |            |  | 2,030  |  | 8,664                   |  |                         |  | 10,694 |  | 1,701                    |  | 8,993                    |  |         
|LLOYD KING CENTER              |  | 1,779        |  | 8,855                   |  | 1,138                         |            |  | 1,779  |  | 9,993                   |  |                         |  | 11,772 |  | 2,128                    |  | 9,644                    |  |         
|LOEHMANNS PLAZA CALIFORNIA     |  | 5,420        |  | 8,679                   |  | 540                           |            |  | 5,420  |  | 9,219                   |  |                         |  | 14,639 |  | 2,027                    |  | 12,612                   |  |         
|LOEHMANNS PLAZA GEORGIA        |  | 3,982        |  | 14,118                  |  | 1,550                         |            |  | 3,982  |  | 15,668                  |  |                         |  | 19,650 |  | 5,052                    |  | 14,598                   |  |         
|MACARTHUR PARK REPURCHASE      |  | 1,930        |  |                        |  | (758                          | )          |  | 1,172  |  |                        |  |                         |  | 1,172  |  |                         |  | 1,172                    |  |         
|MARKET AT OPITZ CROSSING       |  | 9,902        |  | 8,339                   |  | 909                           |            |  | 9,902  |  | 9,248                   |  |                         |  | 19,150 |  | 1,696                    |  | 17,454                   |  | 12,053   
|MARKET AT PRESTON FOREST       |  | 4,400        |  | 10,753                  |  | 107                           |            |  | 4,400  |  | 10,860                  |  |                         |  | 15,260 |  | 2,123                    |  | 13,137                   |  |         
|MARKET AT ROUND ROCK           |  | 2,000        |  | 9,676                   |  | 338                           |            |  | 2,000  |  | 10,014                  |  |                         |  | 12,014 |  | 2,054                    |  | 9,960                    |  |         
|MARKETPLACE ST PETE            |  | 1,287        |  | 4,663                   |  | 738                           |            |  | 1,287  |  | 5,401                   |  |                         |  | 6,688  |  | 1,592                    |  | 5,096                    |  |         
|MARTIN DOWNS VILLAGE CENTER    |  | 2,000        |  | 5,133                   |  | 4,394                         |            |  | 2,438  |  | 9,089                   |  |                         |  | 11,527 |  | 4,107                    |  | 7,420                    |  |         
|MARTIN DOWNS VILLAGE SHOPPES   |  | 700          |  | 1,208                   |  | 3,672                         |            |  | 817    |  | 4,763                   |  |                         |  | 5,580  |  | 1,747                    |  | 3,833                    |  |         
|MAXTOWN ROAD (NORTHGATE)       |  | 1,753        |  | 6,244                   |  | 196                           |            |  | 1,753  |  | 6,440                   |  |                         |  | 8,193  |  | 1,508                    |  | 6,685                    |  |         
|MAYNARD CROSSING               |  | 4,066        |  | 14,084                  |  | 1,450                         |            |  | 4,066  |  | 15,534                  |  |                         |  | 19,600 |  | 3,476                    |  | 16,124                   |  | 9,931    
|MILLHOPPER                     |  | 1,073        |  | 3,594                   |  | 1,724                         |            |  | 1,073  |  | 5,318                   |  |                         |  | 6,391  |  | 3,003                    |  | 3,388                    |  |         
|MOCKINGBIRD COMMON             |  | 3,000        |  | 9,676                   |  | 809                           |            |  | 3,000  |  | 10,485                  |  |                         |  | 13,485 |  | 2,306                    |  | 11,179                   |  |         
|MONUMENT JACKSON CREEK         |  | 2,999        |  | 6,476                   |  | 118                           |            |  | 2,999  |  | 6,594                   |  |                         |  | 9,593  |  | 1,907                    |  | 7,686                    |  |         
|MORNINGSIDE PLAZA              |  | 4,300        |  | 13,120                  |  | 454                           |            |  | 4,300  |  | 13,574                  |  |                         |  | 17,874 |  | 2,800                    |  | 15,074                   |  |         
|MURRAYHILL MARKETPLACE         |  | 2,600        |  | 15,753                  |  | 2,342                         |            |  | 2,670  |  | 18,025                  |  |                         |  | 20,695 |  | 4,121                    |  | 16,574                   |  | 8,647    
|NASHBORO                       |  | 1,824        |  | 7,168                   |  | 474                           |            |  | 1,824  |  | 7,642                   |  |                         |  | 9,466  |  | 1,497                    |  | 7,969                    |  |         
|NEWBERRY SQUARE                |  | 2,341        |  | 8,467                   |  | 1,680                         |            |  | 2,404  |  | 10,084                  |  |                         |  | 12,488 |  | 4,061                    |  | 8,427                    |  |         
|NEWLAND CENTER                 |  | 12,500       |  | 12,221                  |  | (1,739                        | )          |  | 12,500 |  | 10,482                  |  |                         |  | 22,982 |  | 2,733                    |  | 20,249                   |  |         
|NORTH HILLS                    |  | 4,900        |  | 18,972                  |  | 355                           |            |  | 4,900  |  | 19,327                  |  |                         |  | 24,227 |  | 3,841                    |  | 20,386                   |  | 6,103    
|NORTHLAKE VILLAGE I            |  | 2,662        |  | 9,685                   |  | 1,511                         |            |  | 2,662  |  | 11,196                  |  |                         |  | 13,858 |  | 1,895                    |  | 11,963                   |  |         



2



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##### Table of Contents

REGENCY CENTERS, L.P.

Combined Real Estate and Accumulated Depreciation

December 31, 2006

(in thousands)



|                            |  |              |  |                         |  |                               |            |  |        |  |                         |  |                          |  |        |  |                          |  |                          |  |          
|--------------------------- |  | ------------ |  | ----------------------- |  | ----------------------------- | ---------- |  | ------ |  | ----------------------- |  | ------------------------ |  | ------ |  | ------------------------ |  | ------------------------ |  | ---------
|                            |  | Initial Cost |  | Cost Capitalized        |  |                               | Total Cost |  |        |  | Total CostNet of        |  |                         
|                            |  | Land         |  | Building & Improvements |  | Subsequent to Acquisition (a) |            |  | Land   |  | Building & Improvements |  | Properties held for Sale |  | Total  |  | Accumulated Depreciation |  | Accumulated Depreciation |  | Mortgages
|OAKBROOK PLAZA              |  | 4,000        |  | 6,366                   |  | 298                           |            |  | 4,000  |  | 6,664                   |  |                         |  | 10,664 |  | 1,554                    |  | 9,110                    |  |         
|OLD ST AUGUSTINE PLAZA      |  | 2,047        |  | 7,355                   |  | 3,946                         |            |  | 2,368  |  | 10,980                  |  |                         |  | 13,348 |  | 2,904                    |  | 10,444                   |  |         
|ORCHARD MARKET CENTER       |  | 2,451        |  | 3,212                   |  |                              |            |  | 2,451  |  | 3,212                   |  |                         |  | 5,663  |  | 143                      |  | 5,520                    |  |         
|PACES FERRY PLAZA           |  | 2,812        |  | 9,968                   |  | 2,483                         |            |  | 2,812  |  | 12,451                  |  |                         |  | 15,263 |  | 3,858                    |  | 11,405                   |  |         
|PANTHER CREEK               |  | 14,414       |  | 12,079                  |  | 2,564                         |            |  | 14,414 |  | 14,643                  |  |                         |  | 29,057 |  | 3,011                    |  | 26,046                   |  | 10,097   
|PARK PLACE SHOPPING CENTER  |  | 2,232        |  | 7,974                   |  | 1,375                         |            |  | 2,232  |  | 9,349                   |  |                         |  | 11,581 |  | 2,020                    |  | 9,561                    |  |         
|PEARTREE VILLAGE            |  | 5,197        |  | 8,733                   |  | 10,970                        |            |  | 5,197  |  | 19,703                  |  |                         |  | 24,900 |  | 4,981                    |  | 19,919                   |  | 10,979   
|PELHAM COMMONS              |  | 3,714        |  | 5,436                   |  | 42                            |            |  | 3,714  |  | 5,478                   |  |                         |  | 9,192  |  | 1,041                    |  | 8,151                    |  |         
|PHENIX CROSSING             |  | 1,544        |  |                        |  |                              |            |  | 1,544  |  |                        |  |                         |  | 1,544  |  |                         |  | 1,544                    |  |         
|PIKE CREEK                  |  | 5,077        |  | 18,860                  |  | 1,750                         |            |  | 5,077  |  | 20,610                  |  |                         |  | 25,687 |  | 4,871                    |  | 20,816                   |  |         
|PIMA CROSSING               |  | 5,800        |  | 24,892                  |  | 1,774                         |            |  | 5,800  |  | 26,666                  |  |                         |  | 32,466 |  | 5,356                    |  | 27,110                   |  |         
|PINE LAKE VILLAGE           |  | 6,300        |  | 10,522                  |  | 147                           |            |  | 6,300  |  | 10,669                  |  |                         |  | 16,969 |  | 2,137                    |  | 14,832                   |  |         
|PINE TREE PLAZA             |  | 539          |  | 1,996                   |  | 4,304                         |            |  | 668    |  | 6,171                   |  |                         |  | 6,839  |  | 1,321                    |  | 5,518                    |  |         
|PLAZA HERMOSA               |  | 4,200        |  | 9,370                   |  | 645                           |            |  | 4,200  |  | 10,015                  |  |                         |  | 14,215 |  | 2,045                    |  | 12,170                   |  |         
|POWELL STREET PLAZA         |  | 8,248        |  | 29,279                  |  | 499                           |            |  | 8,248  |  | 29,778                  |  |                         |  | 38,026 |  | 3,758                    |  | 34,268                   |  |         
|POWERS FERRY SQUARE         |  | 3,608        |  | 12,791                  |  | 4,950                         |            |  | 3,687  |  | 17,662                  |  |                         |  | 21,349 |  | 5,527                    |  | 15,822                   |  |         
|POWERS FERRY VILLAGE        |  | 1,191        |  | 4,224                   |  | 331                           |            |  | 1,191  |  | 4,555                   |  |                         |  | 5,746  |  | 1,469                    |  | 4,277                    |  | 2,574    
|PRESTON PARK                |  | 6,400        |  | 46,896                  |  | 5,873                         |            |  | 6,400  |  | 52,769                  |  |                         |  | 59,169 |  | 10,394                   |  | 48,775                   |  |         
|PRESTONBROOK                |  | 4,704        |  | 10,762                  |  | 194                           |            |  | 7,069  |  | 8,591                   |  |                         |  | 15,660 |  | 2,641                    |  | 13,019                   |  |         
|PRESTONWOOD PARK            |  | 8,077        |  | 14,938                  |  | 390                           |            |  | 8,077  |  | 15,328                  |  |                         |  | 23,405 |  | 3,343                    |  | 20,062                   |  |         
|REGENCY COURT               |  | 3,571        |  | 12,664                  |  | (2,368                        | )          |  |       |  |                        |  | 13,867                   |  | 13,867 |  |                         |  | 13,867                   |  |         
|REGENCY SQUARE BRANDON      |  | 578          |  | 18,157                  |  | 10,928                        |            |  | 4,770  |  | 24,893                  |  |                         |  | 29,663 |  | 12,418                   |  | 17,245                   |  |         
|RIVERMONT STATION           |  | 2,887        |  | 10,445                  |  | 181                           |            |  | 2,887  |  | 10,626                  |  |                         |  | 13,513 |  | 2,580                    |  | 10,933                   |  |         
|RONA PLAZA                  |  | 1,500        |  | 4,356                   |  | 272                           |            |  | 1,500  |  | 4,628                   |  |                         |  | 6,128  |  | 892                      |  | 5,236                    |  |         
|RUSSELL RIDGE               |  | 2,153        |  |                        |  | 6,960                         |            |  | 2,215  |  | 6,898                   |  |                         |  | 9,113  |  | 2,132                    |  | 6,981                    |  | 5,664    
|SAMMAMISH HIGHLAND          |  | 9,300        |  | 7,553                   |  | 284                           |            |  | 9,300  |  | 7,837                   |  |                         |  | 17,137 |  | 1,590                    |  | 15,547                   |  |         
|SAN LEANDRO                 |  | 1,300        |  | 7,891                   |  | 315                           |            |  | 1,300  |  | 8,206                   |  |                         |  | 9,506  |  | 1,743                    |  | 7,763                    |  |         
|SANTA ANA DOWNTOWN          |  | 4,240        |  | 7,319                   |  | 933                           |            |  | 4,240  |  | 8,252                   |  |                         |  | 12,492 |  | 1,967                    |  | 10,525                   |  |         
|SEQUOIA STATION             |  | 9,100        |  | 17,900                  |  | 197                           |            |  | 9,100  |  | 18,097                  |  |                         |  | 27,197 |  | 3,641                    |  | 23,556                   |  |         
|SHERWOOD CROSSROADS         |  | 2,731        |  | 3,612                   |  | 1,788                         |            |  | 2,731  |  | 5,400                   |  |                         |  | 8,131  |  | 701                      |  | 7,430                    |  |         
|SHERWOOD MARKET CENTER      |  | 3,475        |  | 15,898                  |  | 184                           |            |  | 3,475  |  | 16,082                  |  |                         |  | 19,557 |  | 3,369                    |  | 16,188                   |  |         
|SHILOH SPRINGS              |  | 4,968        |  | 7,859                   |  | 4,514                         |            |  | 5,739  |  | 11,602                  |  |                         |  | 17,341 |  | 4,670                    |  | 12,671                   |  |         
|SHOPPES AT MASON            |  | 1,577        |  | 5,358                   |  | 112                           |            |  | 1,577  |  | 5,470                   |  |                         |  | 7,047  |  | 1,250                    |  | 5,797                    |  | 3,600    
|SIGNAL HILL                 |  | 7,287        |  | 10,084                  |  | (177                          | )          |  | 7,098  |  | 10,096                  |  |                         |  | 17,194 |  | 1,030                    |  | 16,164                   |  |         
|SIGNATURE PLAZA             |  | 2,055        |  | 4,159                   |  | (26                           | )          |  | 2,396  |  | 3,792                   |  |                         |  | 6,188  |  | 365                      |  | 5,823                    |  |         
|SOUTH MOUNTAIN              |  | 934          |  |                        |  | (168                          | )          |  | 766    |  |                        |  |                         |  | 766    |  |                         |  | 766                      |  |         
|SOUTHCENTER                 |  | 1,300        |  | 12,251                  |  | 417                           |            |  | 1,300  |  | 12,668                  |  |                         |  | 13,968 |  | 2,496                    |  | 11,472                   |  |         
|SOUTHPOINT CROSSING         |  | 4,399        |  | 11,116                  |  | 1,011                         |            |  | 4,399  |  | 12,127                  |  |                         |  | 16,526 |  | 2,545                    |  | 13,981                   |  |         
|STARKE                      |  | 71           |  | 1,674                   |  | 9                             |            |  | 71     |  | 1,683                   |  |                         |  | 1,754  |  | 256                      |  | 1,498                    |  |         
|STATLER SQUARE PHASE I      |  | 2,228        |  | 7,480                   |  | 851                           |            |  | 2,228  |  | 8,331                   |  |                         |  | 10,559 |  | 1,947                    |  | 8,612                    |  |         
|STERLING RIDGE              |  | 12,846       |  | 10,085                  |  | 2,008                         |            |  | 12,846 |  | 12,093                  |  |                         |  | 24,939 |  | 2,484                    |  | 22,455                   |  | 10,260   
|STRAWFLOWER VILLAGE         |  | 4,060        |  | 7,233                   |  | 596                           |            |  | 4,060  |  | 7,829                   |  |                         |  | 11,889 |  | 1,655                    |  | 10,234                   |  |         
|STROH RANCH                 |  | 4,138        |  | 7,111                   |  | 1,046                         |            |  | 4,280  |  | 8,015                   |  |                         |  | 12,295 |  | 2,253                    |  | 10,042                   |  |         
|SUNNYSIDE 205               |  | 1,200        |  | 8,703                   |  | 635                           |            |  | 1,200  |  | 9,338                   |  |                         |  | 10,538 |  | 1,919                    |  | 8,619                    |  |         
|TASSAJARA CROSSING          |  | 8,560        |  | 14,900                  |  | 208                           |            |  | 8,560  |  | 15,108                  |  |                         |  | 23,668 |  | 3,001                    |  | 20,667                   |  |         
|MARKET AT OPITZ CROSSING    |  | 3,293        |  | 2,320                   |  | 750                           |            |  | 3,173  |  | 3,190                   |  |                         |  | 6,363  |  | 501                      |  | 5,862                    |  | 4,714    
|SHOPS AT ARIZONA            |  | 9,477        |  | 1,323                   |  | 8                             |            |  | 9,477  |  | 1,331                   |  |                         |  | 10,808 |  | 1,038                    |  | 9,770                    |  | 7,916    
|SHOPS OF SANTA BARBARA      |  | 6,000        |  | 10,302                  |  | 294                           |            |  | 6,000  |  | 10,596                  |  |                         |  | 16,596 |  | 2,150                    |  | 14,446                   |  |         
|THOMAS LAKE                 |  | 1,364        |  | 4,985                   |  | 159                           |            |  | 1,364  |  | 5,144                   |  |                         |  | 6,508  |  | 1,324                    |  | 5,184                    |  |         
|TOWN CENTER AT MARTIN DOWNS |  | 438          |  | 1,555                   |  | 7,015                         |            |  | 883    |  | 8,125                   |  |                         |  | 9,008  |  | 1,923                    |  | 7,085                    |  |         
|TOWN SQUARE                 |  | 4,356        |  | 4,896                   |  | (8,973                        | )          |  | 279    |  |                        |  |                         |  | 279    |  |                         |  | 279                      |  |         



3



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##### Table of Contents

REGENCY CENTERS, L.P.

Combined Real Estate and Accumulated Depreciation

December 31, 2006

(in thousands)



|                                   |  |              |  |                         |  |                               |            |  |         |  |                         |  |                          |  |           |  |                          |  |                          |  |          
|---------------------------------- |  | ------------ |  | ----------------------- |  | ----------------------------- | ---------- |  | ------- |  | ----------------------- |  | ------------------------ |  | --------- |  | ------------------------ |  | ------------------------ |  | ---------
|                                   |  | Initial Cost |  | Cost Capitalized        |  |                               | Total Cost |  |         |  | Total CostNet of        |  |                         
|                                   |  | Land         |  | Building & Improvements |  | Subsequent to Acquisition (a) |            |  | Land    |  | Building & Improvements |  | Properties held for Sale |  | Total     |  | Accumulated Depreciation |  | Accumulated Depreciation |  | Mortgages
|TRACE CROSSING                     |  | 2,595        |  | 10,467                  |  | 310                           |            |  | 2,595   |  | 10,777                  |  |                         |  | 13,372    |  | 2,051                    |  | 11,321                   |  |         
|TROPHY CLUB                        |  | 17,174       |  | 44,849                  |  | (738                          | )          |  | 17,245  |  | 44,040                  |  |                         |  | 61,285    |  | 1,057                    |  | 60,228                   |  | 44,000   
|TWIN PEAKS                         |  | 5,200        |  | 25,120                  |  | 348                           |            |  | 5,200   |  | 25,468                  |  |                         |  | 30,668    |  | 5,107                    |  | 25,561                   |  |         
|VALENCIA CROSSROADS                |  | 17,913       |  | 17,357                  |  | 233                           |            |  | 17,921  |  | 17,582                  |  |                         |  | 35,503    |  | 3,839                    |  | 31,664                   |  |         
|VALLEY RANCH CENTRE                |  | 3,021        |  | 10,728                  |  | (2,008                        | )          |  |        |  |                        |  | 11,741                   |  | 11,741    |  |                         |  | 11,741                   |  |         
|VENTURA VILLAGE                    |  | 4,300        |  | 6,351                   |  | 244                           |            |  | 4,300   |  | 6,595                   |  |                         |  | 10,895    |  | 1,361                    |  | 9,534                    |  |         
|VILLAGE CENTER 6                   |  | 3,885        |  | 10,799                  |  | 2,726                         |            |  | 3,885   |  | 13,525                  |  |                         |  | 17,410    |  | 3,723                    |  | 13,687                   |  |         
|VISTA VILLAGE                      |  | 9,721        |  | 24,832                  |  | 41                            |            |  | 9,719   |  | 24,875                  |  |                         |  | 34,594    |  | 2,928                    |  | 31,666                   |  |         
|WALKER CENTER                      |  | 3,840        |  | 6,418                   |  | 471                           |            |  | 3,840   |  | 6,889                   |  |                         |  | 10,729    |  | 1,483                    |  | 9,246                    |  |         
|WATERFORD TOWNE CENTER             |  | 5,650        |  | 6,844                   |  | 2,022                         |            |  | 6,493   |  | 8,023                   |  |                         |  | 14,516    |  | 2,596                    |  | 11,920                   |  |         
|WELLEBY                            |  | 1,496        |  | 5,372                   |  | 2,233                         |            |  | 1,496   |  | 7,605                   |  |                         |  | 9,101     |  | 2,919                    |  | 6,182                    |  |         
|WELLINGTON TOWN SQUARE             |  | 1,914        |  | 7,198                   |  | 4,755                         |            |  | 2,041   |  | 11,826                  |  |                         |  | 13,867    |  | 2,593                    |  | 11,274                   |  |         
|WEST PARK PLAZA                    |  | 5,840        |  | 4,992                   |  | 353                           |            |  | 5,840   |  | 5,345                   |  |                         |  | 11,185    |  | 1,107                    |  | 10,078                   |  |         
|WESTBROOK COMMONS                  |  | 3,366        |  | 11,928                  |  | 1,106                         |            |  | 3,366   |  | 13,034                  |  |                         |  | 16,400    |  | 1,992                    |  | 14,408                   |  |         
|WESTCHESTER PLAZA                  |  | 1,857        |  | 6,456                   |  | 1,025                         |            |  | 1,857   |  | 7,481                   |  |                         |  | 9,338     |  | 2,198                    |  | 7,140                    |  |         
|WESTLAKE VILLAGE CENTER            |  | 7,043        |  | 25,744                  |  | 1,326                         |            |  | 7,043   |  | 27,070                  |  |                         |  | 34,113    |  | 6,042                    |  | 28,071                   |  |         
|WESTRIDGE                          |  | 9,516        |  | 10,789                  |  | 582                           |            |  | 9,516   |  | 11,371                  |  |                         |  | 20,887    |  | 1,464                    |  | 19,423                   |  |         
|WHITE OAKDOVER, DE                |  | 2,147        |  | 2,927                   |  | 139                           |            |  | 2,144   |  | 3,069                   |  |                         |  | 5,213     |  | 958                      |  | 4,255                    |  |         
|WILLA SPRINGS SHOPPING CENTER      |  | 2,004        |  | 9,267                   |  | (38                           | )          |  | 2,144   |  | 9,089                   |  |                         |  | 11,233    |  | 1,715                    |  | 9,518                    |  |         
|WINDMILLER PLAZA PHASE I           |  | 2,620        |  | 11,191                  |  | 2,167                         |            |  | 2,599   |  | 13,379                  |  |                         |  | 15,978    |  | 2,853                    |  | 13,125                   |  |         
|WOODCROFT SHOPPING CENTER          |  | 1,419        |  | 5,212                   |  | 877                           |            |  | 1,419   |  | 6,089                   |  |                         |  | 7,508     |  | 1,749                    |  | 5,759                    |  |         
|WOODMAN VAN NUYS                   |  | 5,500        |  | 6,835                   |  | 344                           |            |  | 5,500   |  | 7,179                   |  |                         |  | 12,679    |  | 1,567                    |  | 11,112                   |  | 4,218    
|WOODMEN PLAZA                      |  | 6,014        |  | 10,078                  |  | 2,399                         |            |  | 7,621   |  | 10,870                  |  |                         |  | 18,491    |  | 3,841                    |  | 14,650                   |  |         
|WOODSIDE CENTRAL                   |  | 3,500        |  | 8,846                   |  | 287                           |            |  | 3,500   |  | 9,133                   |  |                         |  | 12,633    |  | 1,803                    |  | 10,830                   |  |         
|OPERATING BUILD TO SUIT PROPERTIES |  | 20,082       |  | 43,317                  |  | (1                            | )          |  | 20,078  |  | 43,320                  |  |                          |  | 63,398    |  | 3,615                    |  | 59,783                   |  |         
|                                   |  |              |  |                         |  |                               |            |  |         |  |                         |  |                          |  |           |  |                          |  |                          |  |          
|                                   |  | 852,232      |  | 1,766,116               |  | 233,745                       |            |  | 862,851 |  | 1,963,634               |  | 25,608                   |  | 2,852,093 |  | 427,389                  |  | 2,424,704                |  | 253,989  
|                                   |  |              |  |                         |  |                               |            |  |         |  |                         |  |                          |  |           |  |                          |  |                          |  |          

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|(a) | The negative balance for costs capitalized subsequent to acquisition could include out-parcels sold, provision for loss recorded and development transfers subsequent to the initial
costs.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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##### Table of Contents

REGENCY CENTERS, L.P.

Combined Real Estate and Accumulated Depreciation

December 31, 2006

(in thousands)

Depreciation and amortization of the
Partnerships investment in buildings and improvements reflected in the statements of operation is calculated over the estimated useful lives of the assets as follows:



|                           |  |                |  | 
|-------------------------- |  | -------------- |  | 
|Buildings and improvements |  | up to 40 years |  | 

The aggregate cost for Federal income tax purposes was approximately $2.3 billion at December 31, 2006.

The changes in total real estate assets for the years ended December 31, 2006, 2005 and 2004:



|                                                                     |  |      |           |   |      |           |   |      |           |  
|-------------------------------------------------------------------- |  | ---- | --------- | - | ---- | --------- | - | ---- | --------- | -
|                                                                     |  | 2006 |           |   | 2005 |           |   | 2004 |          
|Balance, beginning of year                                           |  | $    | 2,816,139 |   |      | 2,726,778 |   |      | 2,656,376 |  
|Developed or acquired properties                                     |  |      | 233,138   |   |      | 303,303   |   |      | 322,660   |  
|Sale of properties                                                   |  |      | (209,396  | ) |      | (221,188  | ) |      | (261,098  | )
|Provision for loss on operating properties                           |  |      | (500      | ) |      | (550      | ) |      | (810      | )
|Reclass accumulated depreciation to adjust building basis            |  |      |          |   |      |          |   |      | (1,010    | )
|Reclass accumulated depreciation related to properties held for sale |  |      | (4,164    | ) |      | (7,094    | ) |      | (997      | )
|Improvements                                                         |  |      | 16,876    |   |      | 14,890    |   |      | 11,658    |  
|                                                                     |  |      |           |   |      |           |   |      |           |  
|Balance, end of year                                                 |  | $    | 2,852,093 |   |      | 2,816,139 |   |      | 2,726,779 |  
|                                                                     |  |      |           |   |      |           |   |      |           |  

The changes in accumulated depreciation for the years ended December 31, 2006, 2005 and 2004:



|                                                                     |  |      |         |   |      |         |   |      |         |  
|-------------------------------------------------------------------- |  | ---- | ------- | - | ---- | ------- | - | ---- | ------- | -
|                                                                     |  | 2006 |         |   | 2005 |         |   | 2004 |        
|Balance, beginning of year                                           |  | $    | 380,612 |   |      | 338,610 |   |      | 285,665 |  
|Sale of properties                                                   |  |      | (20,907 | ) |      | (21,183 | ) |      | (16,151 | )
|Reclass accumulated depreciation to adjust building basis            |  |      |        |   |      |        |   |      | (1,010  | )
|Reclass accumulated depreciation related to properties held for sale |  |      | (4,164  | ) |      | (7,094  | ) |      | (997    | )
|Depreciation for year                                                |  |      | 71,848  |   |      | 70,279  |   |      | 71,103  |  
|                                                                     |  |      |         |   |      |         |   |      |         |  
|Balance, end of year                                                 |  | $    | 427,389 |   |      | 380,612 |   |      | 338,610 |  
|                                                                     |  |      |         |   |      |         |   |      |         |  



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