Guidance Range for the
                                                                                    Year Ending December 31, 2009
(In thousands, except per share and operating partnership unit data)                   Low                   High
Net loss                                                                               ($108,500 )          ($106,250 )
Plus real estate related depreciation and amortization                                    27,500               27,500
Less noncontrolling interests in real estate partnerships, before real
estate related depreciation and amortization                                                (800 )               (800 )

Funds from Operations (FFO)                                                              (81,800 )            (79,550 )
Plus amortization of intangibles related to purchase accounting, net of
income tax benefit                                                                         4,000                4,000

Funds from Operations Modified (FFOM)                                                    (77,800 )            (75,550 )
Impairment charges, net of income tax benefit                                            101,700              101,700

FFOM, excluding impairment charges                                                        23,900               26,150

Debt extinguishment charges, net of income tax benefit                                     2,100                2,100

FFOM, excluding impairment charges and debt extinguishment charges               $        26,000         $     28,250


FFO per share and unit - diluted                                                          ($2.00 )             ($1.94 )
FFOM per share and unit - diluted                                                         ($1.90 )             ($1.84 )
FFOM per share and unit - diluted, excluding impairment charges                  $          0.58         $       0.64
FFOM per share and unit - diluted, excluding impairment charges and debt
extinguishment charges                                                           $          0.63         $       0.69
Weighted average shares and units outstanding - diluted                                   40,950               40,950


FFO is a supplemental non-GAAP financial measure used by the real estate
industry to measure the operating performance of real estate companies. FFOM
adds back to traditionally defined FFO non-cash amortization of non-real estate
related intangible assets associated with purchase accounting. The Company
presents FFO and FFOM because it considers them important supplemental measures
of operational performance. The Company believes FFO is frequently used by
securities analysts, investors and other interested parties in the evaluation of
REITs, many of which present FFO when reporting their results. FFO is intended
to exclude GAAP historical cost depreciation and amortization of real estate and
related assets, which assumes that the value of real estate assets diminishes
ratably over time. Historically, however, real estate values have risen or
fallen with market conditions. Because FFO excludes

depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing a perspective not immediately apparent from net income. The Company computes FFO in accordance with standards established by the Board of Governors of NAREIT in its March 1995 White Paper (as amended in November 1999 and April 2002), which may differ from the methodology for calculating FFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO and FFOM do not represent amounts available for management's discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. FFO and FFOM should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of the Company's performance, nor are they indicative of funds available to fund its cash needs, including its ability to pay dividends or make distributions. A reconciliation from GAAP net loss to FFO and FFOM is included in the table above.
The Company's 2009 guidance for FFO and FFOM is based on a number of other assumptions, many of which are outside the Company's control and all of which are subject to change. The Company's guidance may change as actual and anticipated results vary from these assumptions. Dividends
In order to maintain financial flexibility in light of the current state of the capital markets, and after taking into account the dividend and distribution payments for the increased number of shares of common stock and operating partnership units expected to be outstanding upon completion of the public offering of common stock, the Company expects to reduce its current dividend and distribution payments of $0.225 per share of common stock and operating partnership unit for the balance of 2009. Assuming the completion of the offering, the Company currently expects to pay dividends and distributions of $0.10 per share of common stock and operating partnership unit, respectively, in each of the second, third and fourth quarters of 2009. The Company expects to fund dividends and distributions out of cash flow from operations for the balance of 2009, and currently expects to pay all future 2009 dividends and distributions in cash.
While the statements above concerning the remaining dividends and distributions for 2009 are the Company's current expectations, the actual dividends and distributions payable will be determined by the Company's board of directors based upon circumstances at the time of authorization, and the actual dividend paid may vary from currently expected amounts.
The information in this Current Report, including the exhibits hereto, is being furnished and shall not be deemed "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended. ITEM 9.01 Financial Statements and Exhibits.