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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">UNITED STATES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">WASHINGTON, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">FORM 8-K</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">CURRENT REPORT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">PURSUANT TO SECTION 13 OR 15(d) OF THE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SECURITIES EXCHANGE ACT OF 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&#9;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported):
March 9, 2012 (March 9, 2012)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Lightstone Value Plus Real Estate Investment
Trust, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact Name of Registrant as Specified in
Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 32%; border-bottom: black 1pt solid; text-align: center">Maryland</TD>
    <TD STYLE="width: 3%; border-bottom: white 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 31%; border-bottom: black 1pt solid; text-align: center">000-52610</TD>
    <TD STYLE="width: 3%; border-bottom: white 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 31%; border-bottom: black 1pt solid; text-align: center">20-1237795</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(State or other jurisdiction of<BR>
incorporation or organization)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(I.R.S. Employer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Identification No.)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 45%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: center">1985 Cedar Bridge Avenue, Suite 1</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Lakewood, New Jersey 08701</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: center">(Address, including zip code, of Principal Executive Offices)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: center">Registrant's telephone number, including area code: (732) 367-0129</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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Securities Act (17 CFR 230.425)</TD>
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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings 2">&#163;</FONT></TD><TD STYLE="text-align: justify">Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)</TD>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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under the Exchange Act (17 CFR 240.14d-2(b))</TD>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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under the Exchange Act (17 CFR 240.13e-4(c))</TD>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><BR>
&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 8.01</B><FONT STYLE="color: black; letter-spacing: 27pt">&nbsp;</FONT><B>Other
Events.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Estimated Net Asset Value and Estimated Net Asset Value per
Share of Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 15pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The terms &ldquo;we,&rdquo;
&ldquo;our&rdquo; and &ldquo;us&rdquo; refer to Lightstone Value Plus Real Estate Investment Trust, Inc. (the &ldquo;Company&rdquo;),
a Maryland corporation, and, as required by context, Lightstone Value Plus REIT, L.P. and its wholly owned subsidiaries, which
we collectively refer to as &ldquo;the Operating Partnership.&rdquo;&nbsp;&nbsp;Dollar amounts are presented in thousands, except
per share data and where indicated in millions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On March 9, 2012, the Board of
Directors of the Company determined and approved an estimated net asset value of $322.0 million and resulting estimated net
asset value per share of common stock of the Company (&ldquo;common stock&rdquo;) of $10.65, each as of December 31, 2011.
Additionally, the Company believes there <FONT STYLE="font-family: Times New Roman, Times, Serif">have been no material
changes between December 31, 2011 and the date of this filing to the net values of the Company&rsquo;s assets and liabilities
that existed as of December&nbsp;31,&nbsp;2011. </FONT>In connection with such determination, the Company also engaged an
independent third party valuation firm to perform a review of our estimated values of assets and liabilities as of December
31, 2011. The third party valuation firm independently estimated a range of values for our assets and liabilities as of
December 31, 2011 and confirmed that the Company&rsquo;s estimated net asset value was reasonable and within the valuation
firm&rsquo;s estimated range.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The table below provides a summary of the
key components of the Company&rsquo;s estimated net asset value as of December 31, 2011:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 90%">
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Net Assets:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Real Estate Properties</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 70%; font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Consolidated operating properties<SUP>(1)</SUP></TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right">270,519</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left"></TD><TD STYLE="width: 11%; font-size: 10pt; text-align: right"></TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Consolidated development project<SUP>(1)</SUP></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">17,350</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Investment in unconsolidated operating property</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,038</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt">Investment in unconsolidated development projects</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; border-bottom: Black 1pt solid">56,023</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Total real estate properties</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">346,930</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Non-Real Estate Assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Cash and cash equivalents</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">31,525</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Marketable equity securities<SUP>(1)</SUP></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">101,928</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-indent: -10pt; padding-left: 10pt">Restricted escrows<SUP>(1)</SUP></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">30,168</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Restricted marketable equity securities<SUP>(1)</SUP></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">45,897</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Mortgage notes receivable<SUP>(1)</SUP></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">29,440</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt">Other assets</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; border-bottom: Black 1pt solid">10,415</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt">Total Non-Real Estate Assets</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">249,373</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt">Total Assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">596,303</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-indent: -10pt; padding-left: 10pt">Liabilities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -10pt; padding-left: 10pt">Mortgage debt<SUP>(1)</SUP></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(220,895</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; text-indent: -10pt; padding-left: 10pt">Margin loan</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(20,400</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt">Other liabilities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right; border-bottom: Black 1pt solid">(26,209</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 20pt">Total Liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: right">(267,504</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt">Non-controlling Interests</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: right">(6,820</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; font-weight: bold; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt">Net Asset Value</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">321,979</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"><B>Diluted Shares of Common Stock Outstanding<SUP>(2)</SUP></B></TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">30,244</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt">Net Asset Value per Share of Common Stock</TD><TD STYLE="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 10pt; font-weight: bold; text-align: right">10.65</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I><U>Notes:</U></I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">Amounts adjusted for non-controlling interests.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">Includes 0.5 million shares of common stock assuming
the conversion of an equal number of common units of limited partnership interest in our Operating Partnership (&ldquo;common
units&rdquo;).</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Methodology</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company&rsquo;s goal in calculating
an estimated net asset value and resulting value per common share is to arrive at values that are reasonable and supportable using
what the Company deems to be appropriate valuation methodologies and assumptions. The following is a summary of the valuation methodologies
used to value the Company&rsquo;s assets and liabilities by key component:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Real Estate Properties: </I>The Company has consolidated
and unconsolidated investments in real estate properties comprised of operating properties and development projects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our real estate assets were valued using
valuation methods that we believe are typically used by investors for properties that are similar to ours, including capitalization
of each property&rsquo;s net operating income, discounted cash flow models
and/or comparison with sales of similar properties. Primary emphasis was based on the discounted cash flow models, with the other
approaches used to confirm the reasonableness of the value conclusion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of December 31, 2011, the value of our
investments in consolidated operating properties, excluding Crowes Crossing, DePaul Plaza and CP Boston, was $231.2 million which
equates to a 7.5% capitalization rate based on their combined historical net operating income for the year ended December 31, 2011.
Crowes Crossing, a retail property which was acquired on October 18, 2011, was valued at its total acquisition cost of $7.5 million,
which equates to a 7.7% capitalization rate based on its 2012 budgeted net operating income. DePaul Plaza, a retail property which
was acquired on November 22, 2011, was valued at its total acquisition cost of $19.8 million, which equates to a 7.2% capitalization
rate based on its 2012 budgeted net operating income. Our 80% ownership interest in CP Boston, a hospitality property which was
acquired on March 21, 2011, was valued at $12.0 million based on the lowest of several unsolicited offers received in late 2011,
which also equates to a 10.4% capitalization rate based on 2012 budgeted net operating income. The value of our 75% ownership interest
in 50-01 2<SUP>nd </SUP>Street, a residential development project, was valued at $17.3 million representing a 6.5% capitalization
rate based on projected net operating income upon stabilization and has been reduced by our proportionate share of its expected
mortgage indebtedness and discounted at a rate of 20%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our investment in unconsolidated operating
property consists of our 49% ownership interest in 1407 Broadway, an office building. The value of our investment in 1407 Broadway
represents a 4.5% capitalization rate based on its historical net operating income for the year ended December 31, 2011 and has
been reduced by our proportionate share of its outstanding mortgage indebtedness. 1407 Broadway is subject to a leasehold interest
and therefore, our valuation is based on a holding period equivalent to the remaining term which was 37 years as of December 31,
2011.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our investment in unconsolidated development
projects represents our ownership interests in outlet center projects located in Grand Prairie, Texas and Livermore, California.
The value of our investment in development projects represents a 7.0% capitalization rate based on projected net operating income
upon stabilization and has been reduced by our proportionate share of their expected mortgage indebtedness and discounted at rates
ranging from 8% to 20%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following summarizes the key assumptions
that were used in the discounted cash flow models to estimate the value of the Company&rsquo;s operating properties:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 50%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Weighted-Average Basis</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 76%; font-size: 10pt; text-align: left; padding-left: 1.5pt">Exit capitalization rate</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 20%; font-size: 10pt; text-align: right">8.9</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 1.5pt">Discount rate</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">10.1</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 1.5pt">Annual market rent growth rate</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2.0</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 1.5pt">Annual net operating income growth rate</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2.4</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 1.5pt">Holding period (years)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5.0</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following summarizes the key assumptions
that were used in the discounted cash flow models to estimate the value of the Company&rsquo;s  development properties:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="width: 50%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Weighted-Average Basis</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="width: 76%; font-size: 10pt; text-align: left; padding-left: 1.5pt">Exit capitalization rate</TD><TD STYLE="width: 2%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 20%; font-size: 10pt; text-align: right">6.9</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 1.5pt">Discount rate</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12.8</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,255,204)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-left: 1.5pt">Holding period (years)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2.4</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">While the Company believes that
its assumptions are reasonable, a change in these assumptions would impact the calculations of the estimated value of our
real estate properties. Assuming all other factors remain unchanged, a decrease to the exit capitalization rates of 25
basis points would increase the value of our real estate properties  by $13.3 million and an increase in the exit
capitalization rates of 25 basis points would decrease the value of our real estate properties  by $12.1 million. Similarly,
a decrease to the discount rates of 25 basis points would increase the value of our real estate properties by  $3.5 million
and an increase in the discount rates of 25 basis points would decrease the value of our real estate properties by $3.4
million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">With respect to its investments in real
estate properties as of December 31, 2011, the Company had invested approximately $356.0 million, including certain acquisition
fees and expenses. As of December 31, 2011, the estimated value of the Company&rsquo;s investments in real estate properties using
the valuation methods described above was $346.9 million. The total real estate fair value as of December 31, 2011 compared to
the original acquisition price plus subsequent capital improvements to date, results in an overall decrease in the real estate
value of approximately 2.5%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Cash and Cash Equivalents: </I>The estimated value of the
Company&rsquo;s cash and cash equivalents approximate their carrying values due to their short maturities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Marketable Securities: </I>The estimated values of our marketable
securities are primarily based on level 2 inputs. Level 2 inputs are inputs that are observable, either directly or indirectly,
such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or inputs that are observable
or can be corroborated by observable market data for substantially the full term of the assets or liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Restricted Escrows: </I>The estimated value of the Company&rsquo;s
restricted escrows approximate their carrying values due to their short maturities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Restricted Marketable Equity Securities:</I> The estimated
values of our restricted marketable securities are primarily based on level 2 inputs. Level 2 inputs are inputs that are observable,
either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active;
or inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or
liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Other Assets: </I>Other assets consists of (i) tenant
accounts receivable, net of $2.5 million, (ii) interest receivable from related parties of $2.3 million and (iii) prepaid
expenses and other assets of $5.6 million. The carrying values of these balances were considered to equal their fair value
due to their short maturities. Certain other balances, primarily intangibles and deferred costs, have been eliminated for the
purpose of the valuation because those items are already considered in the valuation of the respective investments in real
estate properties or financial instruments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Mortgage Notes Receivable: </I>The estimated value of the
Company&rsquo;s mortgage notes receivable approximate their carrying values due to their short maturities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Mortgage Debt:</I> The estimated value of the Company&rsquo;s
mortgage debt approximates its carrying value. The estimated value of our debt instruments were estimated using discounted cash
flow models, which incorporate assumptions that we believe reflect the terms currently available on similar borrowing arrangements
to borrowers with credit profiles similar to ours.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Margin Loan:</I> The estimated value of the Company&rsquo;s
margin loan approximates its carrying value because of its short maturity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Other Liabilities:</I> Other liabilities consists of (i)
accounts payable and accrued expenses of $17.7 million, (ii) distributions payable on common shares and units of $5.7 million and
(iii) other liabilities of $2.9 million. The carrying values of these balances were considered to equal their fair value due to
their short maturities. Certain other balances, primarily intangibles, loans due to affiliates and deferred gain on disposition
have been eliminated for the purpose of the valuation because those items are already considered in the valuation of the respective
investments in real estate properties or financial instruments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Non-controlling Interests: </I>Non-controlling interests
consists of Series A preferred limited partnership units in the Operating Partnership (&ldquo;Series A Preferred Units&rdquo;)
at their liquidation preference of $93.6 million plus accrued distributions on Series A Preferred Units, common units and subordinated
profits interests in our Operating Partnership aggregating $1.6 million less notes receivable due from non-controlling interests
of $88.5 million, which are secured by the Series A Preferred Units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Limitations of Estimated Value per Share of Common Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This valuation was performed so the Company
could provide the relevant information and valuations to broker-dealers to enable them to include a valuation per share of common
stock in their customer account statements pursuant to NASD Rule 2340. The current fair value of the shares of common stock may
be higher or lower than the valuation. There currently is no public market for the shares of common stock and the Company does
not expect one to develop. The Company currently has no plans to list its shares of common stock on a national securities exchange
or over-the-counter market, or to include its shares of common stock for quotation on any national securities market. Accordingly,
it is not possible to determine the market value of the shares of common stock. Privately negotiated sales and sales through intermediaries
currently are the only means available to a common shareholder to liquidate an investment in shares of common stock. During the
period January 1, 2009 through December 31, 2011, the Company has purchased shares of common stock through our share redemption
program and pursuant to an issuer tender offer dated October 3, 2011. In addition, the Company has issued shares of common stock
through our distribution reinvestment program.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As with any valuation methodology, our methodology
is based upon a number of estimates and assumptions that may not be accurate or complete. Different parties with different assumptions
and estimates could derive a different estimated value per share of common stock. Accordingly, with respect to the estimated value
per share of common stock, the Company can give no assurance that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">a shareholder would be able to resell his or her shares
of common stock at this estimated value;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">a shareholder would ultimately realize distributions
per share of common stock equal to the Company&rsquo;s estimated value per share of common stock upon liquidation of the Company&rsquo;s
assets and settlement of its liabilities or a sale of the Company;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the Company&rsquo;s shares of common stock would trade
at the estimated value per share of common stock on a national securities exchange;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">an independent third-party appraiser or other third-party
valuation firm would agree with the Company&rsquo;s estimated value per share of common stock; or</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the methodology used to estimate the Company&rsquo;s
value per share of common stock would be acceptable to FINRA or for compliance with ERISA reporting requirements.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Further, the estimated value per share of
common stock as of December 31, 2011 is based on the estimated value of the Company&rsquo;s assets less the estimated value of
the Company&rsquo;s liabilities divided by the number of diluted shares of common stock outstanding, all as of December&nbsp;31,&nbsp;2011.
The value of the shares of common stock will fluctuate over time in response to developments related to individual assets in the
portfolio and the management of those assets and in response to the real estate and finance markets. Different parties using different
assumptions and estimates could derive a different net asset value and resulting estimated value per share of common stock, and
these differences could be significant. Markets for real estate and real estate-related investments can fluctuate and values are
expected to change in the future. The Company currently plans to update the estimated value per share of common stock on an annual
basis, but is not required to update the estimated value per share of common stock more frequently than every 18 months.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Dividend Reinvestment Program</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our distribution reinvestment program provides
our shareholders with an opportunity to purchase additional shares of our common stock at a discount by reinvesting distributions.
Our share repurchase program may provide our shareholders with limited, interim liquidity by enabling them to sell their shares
back to us, subject to restrictions. On March 9, 2012, in conjunction with our estimate of the value of a share of our common stock
as of December 31, 2011 for purposes of ERISA, our Board of Directors confirmed the purchase price under our distribution reinvestment
program as $10.12 per common share, which is a 5% discount to the estimated value per share of common stock of $10.65 as of December
31, 2011. Under our distribution reinvestment program, a shareholder may acquire, from time to time, additional shares of our common
stock by reinvesting cash distributions payable by us to such shareholder, without incurring any brokerage commission, fees or
service charges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">However, our Board of Directors reserves
the right to terminate the program for any reason without cause by providing written notice of termination of the distribution
reinvestment program to all participants or written notice of termination of the share repurchase program to all shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Forward-Looking Statements </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>&nbsp;The foregoing includes forward-looking
statements. These statements include statements regarding the intent, belief or current expectations of the Company and members
of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use
of words such as &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;seeks,&rdquo; &ldquo;anticipates,&rdquo; &ldquo;believes,&rdquo;
&ldquo;estimates,&rdquo; &ldquo;expects,&rdquo; &ldquo;plans,&rdquo; &ldquo;intends,&rdquo; &ldquo;should&rdquo; or similar expressions.
The valuation methodology for the Company&rsquo;s real estate properties assumes the properties realize the projected cash flows
and expected exit capitalization rates and that investors would be willing to invest in such properties at yields equal to the
expected discount rates. Though these are the Company&rsquo;s best estimates as of December 31, 2011, the Company can give no assurance
in this regard. These statements also depend on factors such as the Company&rsquo;s ability to maintain occupancy levels and lease
rates at its properties, the borrowers under the Company&rsquo;s loan investments continuing to make required payments under the
investments, the ability of certain borrowers to maintain occupancy levels and lease rates at the properties securing the Company&rsquo;s
investments, and other risks identified in Part I, Item IA of the Company&rsquo;s annual report on Form 10-K for the year ended
December 31, 2010 as filed with the SEC on March 31, 2011 and the risks identified in the Company&rsquo;s final prospectus, dated
May 2, 2011, filed pursuant to Rule 423(b)(3) under the Securities Act of 1933, as amended. Actual events may cause the value and
returns on the Company&rsquo;s investments to be less than that used for purposes of the Company estimated value per share of common
stock. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SIGNATURES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the requirements
of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 49%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">LIGHTSTONE VALUE PLUS REAL</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ESTATE INVESTMENT TRUST, INC.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Date:&nbsp;March 9, 2012</TD>
    <TD>By:&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Donna Brandin</TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Donna Brandin</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>Chief Financial Officer and Principal Accounting Officer</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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[{"type": "8-K", "sequence": "1", "filename": "v305238_8k.htm", "description": "8-K", "secsgml_size_bytes": 63024}]
{"company-data": {"conformed-name": "Lightstone Value Plus Real Estate Investment Trust, Inc.", "cik": "0001296884", "assigned-sic": "6798", "irs-number": "201237795", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-52610", "film-number": "12679325"}, "business-address": {"street1": "C/O THE LIGHTSTONE GROUP", "street2": "326 THIRD STREET", "city": "LAKEWOOD", "state": "NJ", "zip": "08701", "phone": "(732)367-0129"}, "mail-address": {"street1": "C/O THE LIGHTSTONE GROUP", "street2": "326 THIRD STREET", "city": "LAKEWOOD", "state": "NJ", "zip": "08701"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
March 9, 2012 (March 9, 2012)
Lightstone Value Plus Real Estate Investment
Trust, Inc.
(Exact Name of Registrant as Specified in
Charter)
Maryland
000-52610
20-1237795
(State or other jurisdiction of
incorporation or organization)
(Commission File Number)
(I.R.S. Employer
Identification No.)
1985 Cedar Bridge Avenue, Suite 1
Lakewood, New Jersey 08701
(Address, including zip code, of Principal Executive Offices)
Registrant's telephone number, including area code: (732) 367-0129
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
£
Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
£
Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
£
Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
£
Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01
Other
Events.
Estimated Net Asset Value and Estimated Net Asset Value per
Share of Common Stock
The terms "we,"
"our" and "us" refer to Lightstone Value Plus Real Estate Investment Trust, Inc. (the "Company"),
a Maryland corporation, and, as required by context, Lightstone Value Plus REIT, L.P. and its wholly owned subsidiaries, which
we collectively refer to as "the Operating Partnership."  Dollar amounts are presented in thousands, except
per share data and where indicated in millions.
On March 9, 2012, the Board of
Directors of the Company determined and approved an estimated net asset value of $322.0 million and resulting estimated net
asset value per share of common stock of the Company ("common stock") of $10.65, each as of December 31, 2011.
Additionally, the Company believes there
have been no material
changes between December 31, 2011 and the date of this filing to the net values of the Company's assets and liabilities
that existed as of December 31, 2011.
In connection with such determination, the Company also engaged an
independent third party valuation firm to perform a review of our estimated values of assets and liabilities as of December
31, 2011. The third party valuation firm independently estimated a range of values for our assets and liabilities as of
December 31, 2011 and confirmed that the Company's estimated net asset value was reasonable and within the valuation
firm's estimated range.
The table below provides a summary of the
key components of the Company's estimated net asset value as of December 31, 2011:
Net Assets:
Real Estate Properties
Consolidated operating properties
(1)
$
270,519
Consolidated development project
(1)
17,350
Investment in unconsolidated operating property
3,038
Investment in unconsolidated development projects
56,023
Total real estate properties
$
346,930
Non-Real Estate Assets
Cash and cash equivalents
31,525
Marketable equity securities
(1)
101,928
Restricted escrows
(1)
30,168
Restricted marketable equity securities
(1)
45,897
Mortgage notes receivable
(1)
29,440
Other assets
10,415
Total Non-Real Estate Assets
249,373
Total Assets
596,303
Liabilities:
Mortgage debt
(1)
(220,895
)
Margin loan
(20,400
)
Other liabilities
(26,209
)
Total Liabilities
(267,504
)
Non-controlling Interests
(6,820
)
Net Asset Value
$
321,979
Diluted Shares of Common Stock Outstanding
(2)
30,244
Net Asset Value per Share of Common Stock
$
10.65
Notes:
(1)
Amounts adjusted for non-controlling interests.
(2)
Includes 0.5 million shares of common stock assuming
the conversion of an equal number of common units of limited partnership interest in our Operating Partnership ("common
units").
2
Methodology
The Company's goal in calculating
an estimated net asset value and resulting value per common share is to arrive at values that are reasonable and supportable using
what the Company deems to be appropriate valuation methodologies and assumptions. The following is a summary of the valuation methodologies
used to value the Company's assets and liabilities by key component:
Real Estate Properties:
The Company has consolidated
and unconsolidated investments in real estate properties comprised of operating properties and development projects.
Our real estate assets were valued using
valuation methods that we believe are typically used by investors for properties that are similar to ours, including capitalization
of each property's net operating income, discounted cash flow models
and/or comparison with sales of similar properties. Primary emphasis was based on the discounted cash flow models, with the other
approaches used to confirm the reasonableness of the value conclusion.
As of December 31, 2011, the value of our
investments in consolidated operating properties, excluding Crowes Crossing, DePaul Plaza and CP Boston, was $231.2 million which
equates to a 7.5% capitalization rate based on their combined historical net operating income for the year ended December 31, 2011.
Crowes Crossing, a retail property which was acquired on October 18, 2011, was valued at its total acquisition cost of $7.5 million,
which equates to a 7.7% capitalization rate based on its 2012 budgeted net operating income. DePaul Plaza, a retail property which
was acquired on November 22, 2011, was valued at its total acquisition cost of $19.8 million, which equates to a 7.2% capitalization
rate based on its 2012 budgeted net operating income. Our 80% ownership interest in CP Boston, a hospitality property which was
acquired on March 21, 2011, was valued at $12.0 million based on the lowest of several unsolicited offers received in late 2011,
which also equates to a 10.4% capitalization rate based on 2012 budgeted net operating income. The value of our 75% ownership interest
in 50-01 2
nd
Street, a residential development project, was valued at $17.3 million representing a 6.5% capitalization
rate based on projected net operating income upon stabilization and has been reduced by our proportionate share of its expected
mortgage indebtedness and discounted at a rate of 20%.
Our investment in unconsolidated operating
property consists of our 49% ownership interest in 1407 Broadway, an office building. The value of our investment in 1407 Broadway
represents a 4.5% capitalization rate based on its historical net operating income for the year ended December 31, 2011 and has
been reduced by our proportionate share of its outstanding mortgage indebtedness. 1407 Broadway is subject to a leasehold interest
and therefore, our valuation is based on a holding period equivalent to the remaining term which was 37 years as of December 31,
2011.
Our investment in unconsolidated development
projects represents our ownership interests in outlet center projects located in Grand Prairie, Texas and Livermore, California.
The value of our investment in development projects represents a 7.0% capitalization rate based on projected net operating income
upon stabilization and has been reduced by our proportionate share of their expected mortgage indebtedness and discounted at rates
ranging from 8% to 20%.
The following summarizes the key assumptions
that were used in the discounted cash flow models to estimate the value of the Company's operating properties:
Weighted-Average Basis
Exit capitalization rate
8.9
%
Discount rate
10.1
%
Annual market rent growth rate
2.0
%
Annual net operating income growth rate
2.4
%
Holding period (years)
5.0
The following summarizes the key assumptions
that were used in the discounted cash flow models to estimate the value of the Company's  development properties:
Weighted-Average Basis
Exit capitalization rate
6.9
%
Discount rate
12.8
%
Holding period (years)
2.4
While the Company believes that
its assumptions are reasonable, a change in these assumptions would impact the calculations of the estimated value of our
real estate properties. Assuming all other factors remain unchanged, a decrease to the exit capitalization rates of 25
basis points would increase the value of our real estate properties  by $13.3 million and an increase in the exit
capitalization rates of 25 basis points would decrease the value of our real estate properties  by $12.1 million. Similarly,
a decrease to the discount rates of 25 basis points would increase the value of our real estate properties by  $3.5 million
and an increase in the discount rates of 25 basis points would decrease the value of our real estate properties by $3.4
million.
3
With respect to its investments in real
estate properties as of December 31, 2011, the Company had invested approximately $356.0 million, including certain acquisition
fees and expenses. As of December 31, 2011, the estimated value of the Company's investments in real estate properties using
the valuation methods described above was $346.9 million. The total real estate fair value as of December 31, 2011 compared to
the original acquisition price plus subsequent capital improvements to date, results in an overall decrease in the real estate
value of approximately 2.5%.
Cash and Cash Equivalents:
The estimated value of the
Company's cash and cash equivalents approximate their carrying values due to their short maturities.
Marketable Securities:
The estimated values of our marketable
securities are primarily based on level 2 inputs. Level 2 inputs are inputs that are observable, either directly or indirectly,
such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or inputs that are observable
or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Restricted Escrows:
The estimated value of the Company's
restricted escrows approximate their carrying values due to their short maturities.
Restricted Marketable Equity Securities:
The estimated
values of our restricted marketable securities are primarily based on level 2 inputs. Level 2 inputs are inputs that are observable,
either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active;
or inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or
liabilities.
Other Assets:
Other assets consists of (i) tenant
accounts receivable, net of $2.5 million, (ii) interest receivable from related parties of $2.3 million and (iii) prepaid
expenses and other assets of $5.6 million. The carrying values of these balances were considered to equal their fair value
due to their short maturities. Certain other balances, primarily intangibles and deferred costs, have been eliminated for the
purpose of the valuation because those items are already considered in the valuation of the respective investments in real
estate properties or financial instruments.
Mortgage Notes Receivable:
The estimated value of the
Company's mortgage notes receivable approximate their carrying values due to their short maturities.
Mortgage Debt:
The estimated value of the Company's
mortgage debt approximates its carrying value. The estimated value of our debt instruments were estimated using discounted cash
flow models, which incorporate assumptions that we believe reflect the terms currently available on similar borrowing arrangements
to borrowers with credit profiles similar to ours.
Margin Loan:
The estimated value of the Company's
margin loan approximates its carrying value because of its short maturity.
Other Liabilities:
Other liabilities consists of (i)
accounts payable and accrued expenses of $17.7 million, (ii) distributions payable on common shares and units of $5.7 million and
(iii) other liabilities of $2.9 million. The carrying values of these balances were considered to equal their fair value due to
their short maturities. Certain other balances, primarily intangibles, loans due to affiliates and deferred gain on disposition
have been eliminated for the purpose of the valuation because those items are already considered in the valuation of the respective
investments in real estate properties or financial instruments.
Non-controlling Interests:
Non-controlling interests
consists of Series A preferred limited partnership units in the Operating Partnership ("Series A Preferred Units")
at their liquidation preference of $93.6 million plus accrued distributions on Series A Preferred Units, common units and subordinated
profits interests in our Operating Partnership aggregating $1.6 million less notes receivable due from non-controlling interests
of $88.5 million, which are secured by the Series A Preferred Units.
Limitations of Estimated Value per Share of Common Stock
This valuation was performed so the Company
could provide the relevant information and valuations to broker-dealers to enable them to include a valuation per share of common
stock in their customer account statements pursuant to NASD Rule 2340. The current fair value of the shares of common stock may
be higher or lower than the valuation. There currently is no public market for the shares of common stock and the Company does
not expect one to develop. The Company currently has no plans to list its shares of common stock on a national securities exchange
or over-the-counter market, or to include its shares of common stock for quotation on any national securities market. Accordingly,
it is not possible to determine the market value of the shares of common stock. Privately negotiated sales and sales through intermediaries
currently are the only means available to a common shareholder to liquidate an investment in shares of common stock. During the
period January 1, 2009 through December 31, 2011, the Company has purchased shares of common stock through our share redemption
program and pursuant to an issuer tender offer dated October 3, 2011. In addition, the Company has issued shares of common stock
through our distribution reinvestment program.
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As with any valuation methodology, our methodology
is based upon a number of estimates and assumptions that may not be accurate or complete. Different parties with different assumptions
and estimates could derive a different estimated value per share of common stock. Accordingly, with respect to the estimated value
per share of common stock, the Company can give no assurance that:
·
a shareholder would be able to resell his or her shares
of common stock at this estimated value;
·
a shareholder would ultimately realize distributions
per share of common stock equal to the Company's estimated value per share of common stock upon liquidation of the Company's
assets and settlement of its liabilities or a sale of the Company;
·
the Company's shares of common stock would trade
at the estimated value per share of common stock on a national securities exchange;
·
an independent third-party appraiser or other third-party
valuation firm would agree with the Company's estimated value per share of common stock; or
·
the methodology used to estimate the Company's
value per share of common stock would be acceptable to FINRA or for compliance with ERISA reporting requirements.
Further, the estimated value per share of
common stock as of December 31, 2011 is based on the estimated value of the Company's assets less the estimated value of
the Company's liabilities divided by the number of diluted shares of common stock outstanding, all as of December 31, 2011.
The value of the shares of common stock will fluctuate over time in response to developments related to individual assets in the
portfolio and the management of those assets and in response to the real estate and finance markets. Different parties using different
assumptions and estimates could derive a different net asset value and resulting estimated value per share of common stock, and
these differences could be significant. Markets for real estate and real estate-related investments can fluctuate and values are
expected to change in the future. The Company currently plans to update the estimated value per share of common stock on an annual
basis, but is not required to update the estimated value per share of common stock more frequently than every 18 months.
Dividend Reinvestment Program
Our distribution reinvestment program provides
our shareholders with an opportunity to purchase additional shares of our common stock at a discount by reinvesting distributions.
Our share repurchase program may provide our shareholders with limited, interim liquidity by enabling them to sell their shares
back to us, subject to restrictions. On March 9, 2012, in conjunction with our estimate of the value of a share of our common stock
as of December 31, 2011 for purposes of ERISA, our Board of Directors confirmed the purchase price under our distribution reinvestment
program as $10.12 per common share, which is a 5% discount to the estimated value per share of common stock of $10.65 as of December
31, 2011. Under our distribution reinvestment program, a shareholder may acquire, from time to time, additional shares of our common
stock by reinvesting cash distributions payable by us to such shareholder, without incurring any brokerage commission, fees or
service charges.
However, our Board of Directors reserves
the right to terminate the program for any reason without cause by providing written notice of termination of the distribution
reinvestment program to all participants or written notice of termination of the share repurchase program to all shareholders.
Forward-Looking Statements
The foregoing includes forward-looking
statements. These statements include statements regarding the intent, belief or current expectations of the Company and members
of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use
of words such as "may," "will," "seeks," "anticipates," "believes,"
"estimates," "expects," "plans," "intends," "should" or similar expressions.
The valuation methodology for the Company's real estate properties assumes the properties realize the projected cash flows
and expected exit capitalization rates and that investors would be willing to invest in such properties at yields equal to the
expected discount rates. Though these are the Company's best estimates as of December 31, 2011, the Company can give no assurance
in this regard. These statements also depend on factors such as the Company's ability to maintain occupancy levels and lease
rates at its properties, the borrowers under the Company's loan investments continuing to make required payments under the
investments, the ability of certain borrowers to maintain occupancy levels and lease rates at the properties securing the Company's
investments, and other risks identified in Part I, Item IA of the Company's annual report on Form 10-K for the year ended
December 31, 2010 as filed with the SEC on March 31, 2011 and the risks identified in the Company's final prospectus, dated
May 2, 2011, filed pursuant to Rule 423(b)(3) under the Securities Act of 1933, as amended. Actual events may cause the value and
returns on the Company's investments to be less than that used for purposes of the Company estimated value per share of common
stock.
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SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
LIGHTSTONE VALUE PLUS REAL
ESTATE INVESTMENT TRUST, INC.
Date: March 9, 2012
By:
/s/ Donna Brandin
Donna Brandin
Chief Financial Officer and Principal Accounting Officer
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