DISTORTED RENTAL INCOME

The First Hartford Corporation AND Rockland Place Apartments rental income increased approximately $1,847,000 as a result of the following:

During fiscal year 2010, the Company was required, as the managing general partner, pursuant to the applicable accounting guidance, to consolidate Clarendon Hill Somerville Limited Partnership, which acquired a 501 unit apartment complex on April 9, 2010. This resulted in approximately $434,000 of additional rental income during fiscal year 2010.
Rental income from THE APARTMENT COMPLEX IN ROCKLAND, MASSACHUSETTS increased approximately $247,000 during fiscal year 2010 as a result of improved occupancy and a rent increase. The importance of this increase in rental income is DISTORTED BY THE FACT that approximately 99.99% of these properties are owned by the non-controlling partners.

The Company ended the period with approximately $3,425,000 of unrestricted cash and cash equivalents. Unrestricted cash and cash equivalents includes approximately $2,496,000 belonging to less than wholly-owned consolidated partnerships (CP Associates $1,653,000, and Rockland Place LP $843,000). Funds received from CVS Pharmacy which are to be paid out in connection with CVS development projects amounted to approximately $2,672,000 and are included in restricted cash and cash equivalents.