Sandeep Mathrani runs our retail business. Since Sandeep joined in 2002, we have invested $1.5 billion(5) in our retail business. Sandeep's mantra is to grow. Each acquisition has its own raison d'etre, be it precious Manhattan street retail where we "work" under market leases, or bread and butter in-fill strip centers, or better yet, large complex fixer-uppers such as Bergen Mall, Springfield Mall, etc. These tired fixer-uppers are in triple A locations and will benefit enormously from the retenanting, modernization and renovations we plan. All of us are wildly enthusiastic about this business.

We own 1,348,000 square feet of New York street retail, with an EBITDA of almost $100 million.

This income stream commands the lowest cap rate in all of real-estate-land, certainly in the low 4's today. Last year we added to this nucleus by making what The Wall Street Journal reported to be "the most expensive U.S. real-estate purchase ever,(6)" $6,647 per square foot for the retail block front on Madison Avenue from 69th to 70th Street. Tenants here are Cartier, Gucci and Chloe. Further, we acquired 100 feet of retail frontage on Madison Avenue at 66th Street, diagonally across from Armani, together with the 37-unit rental apartment building above.(7) Please see the Appendix for detail of 2005 and 2006 to date additions to our retail portfolio.