B. Major Tenants The following schedule presents rental revenue, including percentage rents, from tenants representing more than 10% of our total revenue for the years ended December 31, 1998, 1997 or 1996 (dollars in thousands):

8. Property Acquisitions

During 1998, we invested $193.4 million in 149 new retail properties and properties under development with an initial contractual lease rate of 10.4%. These 149 properties are located in 38 states, will contain approximately 1.6 million leasable square feet and are 100% leased with an average initial lease term of 14.9 years.

During 1997, we invested $142.3 million in 96 new retail properties and properties under development with an initial contractual lease rate of 10.4%. These 96 properties are located in 27 states, contain approximately 1.1 million leasable square feet and are 100% leased with an average initial lease term of 14.4 years.

9. Gain on Sales of Properties

In 1998, we sold five properties (two child care centers, two restaurants and a multi-tenant location) for $2.8 million and recognized a gain of $526,000. In 1997, we sold ten properties (six restaurants, two child care centers, one automotive parts store and a multi-tenant location) for a total of $4.4 million and recognized a gain of $1.1 million. In 1996, we sold seven properties (five restaurants and two multi-tenant locations) for a total of $4.4 million and recognized a gain of $1.5 million.

10. Fair Value of Financial Instruments

We believe that the carrying values reflected in the consolidated balance sheets at December 31, 1998 and 1997 reasonably approximate the fair values for cash and cash equivalents, accounts receivable, due from affiliates and all liabilities except the lines of credit payable and notes payable. In making such assessments, we utilized estimates. The fair value of the lines of credit payable approximates its carrying value because its terms are similar to those available in the market place. The fair value of the notes payable at December 31, 1998 is estimated to be $203.9 million based upon the closing market price per note (i) at December 31, 1998 for the 1998 Notes and (ii) December 26, 1998 (date of the last trade made in 1998) for the 1997 Notes. The fair value of the notes payable at December 31, 1997 approximates their carrying value.

11. Supplemental Disclosure of Cash Flow Information

Interest paid during 1998, 1997 and 1996 was $12.5 million, $6.9 million and $2.0 million, respectively.

The following non-cash investing and financing activities are included in the accompanying consolidated financial statements:

A. In 1998 and 1997, the acquisition of properties resulted in the following non-cash changes (dollars in thousands):

B. In 1998, the former shareholders of the Advisor returned 20,279 shares to the Company. This fulfilled the Advisor shareholders obligation to the Company under an indemnification agreement entered into by both parties (see note 12A). This transaction resulted in the following non-cash changes (dollars in thousands):

C. In 1996, pursuant to the assumption of the defined benefit pension plan by the Company (see note 12A), the Company recorded a due from affiliate and a liability (included in other liabilities) of $73,000. This represents the amount of the increase in the liability to the plan, of which the Company is indemnified by the former shareholders of the Advisor.

12. Employee Benefit Plan

A. As a result of the merger with the Advisor in 1995 (the “Merger”), the Company assumed a defined benefit pension plan (the “Plan”) covering substantially all of its employees. The Plan was terminated on January 2, 1996 and final disbursement of the Plan’s assets occurred on February 24, 1997.