798288--3/31/2009--Centro_NP

related topics

{debt, indebtedness, cash}

{investment, property, distribution}

{loan, real, estate}

{loss, insurance, financial}

{capital, credit, financial}

{condition, economic, financial}

{cost, regulation, environmental}

{interest, director, officer}

We have substantial short-term liquidity obligations consisting primarily of short-term indebtedness, which we may be unable to refinance on favorable terms or at all. We may need to dispose of a number of properties in order to meet our currently budgeted liquidity needs. Recent disruptions in the financial markets could affect our ability to obtain financing or renegotiate our existing indebtedness on reasonable terms and may have other adverse effects on us. Cross-default provisions in our borrowing arrangements increase the consequences of a default. There are default and cross-default provisions in our borrowing arrangements which may be triggered by actions that could be taken (or which are not taken) by entities that we do not control. We are limited to financing any liquidity requirements from distributions received from the Residual Joint Venture, and equity contributions from Super LLC, that are funded with borrowings from the Residual Credit Facility, and we may be unable to finance such liquidity requirements after exhaustion of the Residual Credit Facility. Our financial covenants will restrict our operating and acquisition activities. Mortgage debt obligations expose us to the possibility of foreclosure, which could result in the loss of our investment in a property or group of properties subject to mortgage debt. Our degree of leverage could limit our ability to obtain additional financing and adversely affect our business and financial condition. The economic performance and value of our properties are subject to risks associated with real estate assets and with the real estate industry. Downturns in the retailing industry likely will have a direct impact on our performance. Failure by any anchor tenant with leases in multiple locations to make rental payments to us, because of a deterioration of its financial condition or otherwise, could seriously harm our performance. We are unable to collect balances due from an increasing number of tenants in bankruptcy and face potential adverse effects as a result. Current and future development and redevelopment of real estate properties may not yield expected returns and may strain management resources. Our current and future joint venture investments could be adversely affected by a lack of sole decision-making authority and our reliance on joint venture partners' financial condition. Potential continued deterioration of investments in / advances to unconsolidated joint ventures. Real estate property investments are illiquid, and therefore we may not be able to dispose of properties when appropriate or on favorable terms. Some potential losses are not covered by insurance, so we could lose a significant portion of our investment in a property. There can be no assurance as to future costs and the scope of coverage that may be available under insurance policies. We currently have variable rate debt obligations, which could be substantial in the future and may impede our operating performance and put us at a competitive disadvantage. Environmental problems that exist at some of our properties could result in significant unexpected costs. We face considerable competition in the leasing market and may be unable to renew leases or re-let space as leases expire. Our ability to continue as a going concern.

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798288--3/31/2009--Centro_NP_LLC