Feldman Mall Properties, Inc.
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REAL ESTATE ACTIVITY

Golden Triangle Mall – Denton, Texas

During April 2006, the Company completed the acquisition of the Golden Triangle Mall in the Northeastern Dallas suburb of Denton, TX, for approximately $40.2 million, or $139 per square foot. Including non-owned anchors, the Golden Triangle Mall is a 765,000 square foot regional mall. The Company purchased approximately 288,000 square feet of retail space. The mall is currently 92% occupied, including temporary tenants, but excluding anchors. Excluding the anchors and temporary tenants, the mall is 88% leased. Non-owned anchor tenants include: Foley’s (expected to be converted to Macy’s this fall), Dillard’s, Sears, JCPenney, DSW and Dillard’s Men. These non-owned anchors currently occupy approximately 470,000 square feet of the mall’s total square footage. Additional name brand tenants include Ross Dress for Less, Barnes & Noble, Victoria’s Secret, American Eagle Outfitters, Pacific Coast Sun Wear and Bath & Body Works.

“With an estimated population growth in excess of 20% over the next five years and an average household income of approximately $80,000 (according to Claritas, Inc.), Denton is an up and coming Dallas suburb primed for retail demand,” stated Larry Feldman. “Our primary focus at the mall will first be to attract key retailers that draw in the more affluent shoppers of the Denton/Dallas area. To do this, we will create a more upscale look and feel to the mall through a variety of capital improvements including the addition of one or more sit down restaurants.”

In addition to adding an upscale eatery or two, the Company’s capital improvement plan includes the addition of a food court, the addition of a possible entertainment use, enhancing signage from the freeway and updating common areas with lighting upgrades, soft seating, ceiling and floor accents.

Mr. Feldman added, “The Golden Triangle Mall is a perfect fit for FMP. It is located in a major market, it has immediate access to a major interstate and the mall is in the path of explosive population growth.”

Funding for this acquisition was derived from the Company’s secured line of credit totaling $24.6 million and the remainder from the $28.6 million received from the trust preferred securities issued in March 2006.

Joint Venture with Kimco Realty on Foothills Mall – Tucson, Arizona

On June 29, 2006, the Company completed a joint venture agreement with a subsidiary of Kimco Realty Corporation (NYSE: KIM) in connection with the Foothills Mall, located in the suburbs of Tucson, Arizona. The execution of the agreement was previously announced on February 22, 2006.

Under the terms of the joint venture, a subsidiary of FMP conveyed the property to the joint venture at an agreed upon value of $104.0 million, plus closing costs. Kimco’s initial contribution to the joint venture was $14.8 million, and at closing, the Company received a distribution of approximately $40.0 million and will retain a $7.2 million equity interest in the property. In connection with the recapitalization of the mall, the Company also refinanced the property with an $81.0 million 10-year fixed rate first mortgage that bears interest at 6.08%.

FMP will be the managing member of the joint venture and will be responsible for the management, leasing and construction of the property at customary market fees.

Contemporaneous with the execution of this joint venture agreement in February of this year, Kimco provided FMP with a bridge loan facility in the amount of $17.2 million. The Company has repaid $5.0 million that was outstanding on the bridge loan facility and the facility has been extinguished in accordance with the terms of the joint venture.

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