It's not using ARC. Is this legacy code, or couldn't they get equivalent performance with ARC enabled?
One trouble now is you never know if a library or whatnot will be ARC so it fragments things somewhat.
Overall, yes, it's less smooth to include non-ARC code in an ARC project.
-fobj-arc
and -fno-objc-arc
are handy ways to manage ARC and non-ARC files in your projects, depending on what your yen for -retain and -release are.