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I N V E S T O R U P D A T E First Quarter 2017 Update - PowerPoint PPT Presentation

Sep 05, 2023 •251 likes •783 views

I N V E S T O R U P D A T E First Quarter 2017 Update Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor from civil liability provided for such statements by the Private

  1. I N V E S T O R U P D A T E First Quarter 2017 Update

  2. Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act). Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). You can identify forward-looking statements by the use of forward-looking terminology such as “believes”, “expects”, “may”, “should”, “intends”, “plans”, “estimates”, “continue” or “anticipates” and variations of such words or similar expressions or the negative of such words. You can also identify forward-looking statements by discussions of strategies, vision, plans or intentions. Risks, uncertainties and changes in the following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements:  economic, business and financial conditions, and changes in our industry and changes in the real estate markets in particular;  economic and other developments in our target markets where we have a high concentration of properties; our business strategy;   our projected operating results;  rental rates and/or vacancy rates;  frequency and magnitude of defaults on, early terminations of or non-renewal of leases by tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants;   interest rates or operating costs;  real estate and zoning laws and changes in real property tax rates; real estate valuations;   our leverage;  our ability to generate sufficient cash flows to service our outstanding indebtedness and make distributions to our shareholders;  our ability to obtain necessary outside financing; the availability, terms and deployment of capital;   general volatility of the capital and credit markets and the market price of our Class A common stock;  risks generally associated with real estate acquisitions and dispositions, including our ability to identify and pursue acquisition and disposition opportunities; risks generally associated with redevelopment, including the impact of construction delays and cost overruns, our ability to lease redeveloped space and our ability to identify and pursue  redevelopment opportunities;  composition of members of our senior management team;  our ability to attract and retain qualified personnel; our ability to continue to qualify as a real estate investment trust (REIT);   governmental regulations, tax laws and rates and similar matters;  our compliance with laws, rules and regulations; environmental uncertainties and exposure to natural disasters;  insurance coverage;   the likelihood or actual occurrence of terrorist attacks in the U.S.; and  other risk factors, including those detailed in the section titled “Risk Factors” of our most recent Form 10-K filed with the SEC. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to us (or to third parties making the forward-looking statements). We undertake no obligation to publicly release any revisions to such forward-looking statements to reflect events or circumstances after the date of this presentation, except as required by applicable law. All information is presented on a consolidated basis and is as of March 31, 2017, unless otherwise noted All 2013 information is presented on a consolidated basis, including our pro rata share of unconsolidated joint ventures, and is as of March 31, 2013, unless otherwise noted All demographic information is sourced from The Nielsen Company, unless otherwise noted All 2013 peer metric information is sourced from company filings as of March 31, 2013, unless otherwise noted 2 All current peer metric information is sourced from company filings as of December 31, 2016, unless otherwise noted

  3. Our Strategy We generate long-term shareholder value through the  ownership, operation and redevelopment of high quality, multi-tenant retail assets in our target markets We believe real estate is a local business and that our  approach combined with scale provides for the best value creation over the long term  We believe in maintaining an investment grade rated balance sheet through adhering to a simple, low leverage model We believe in maintaining a best-in-class operating  platform through an intense focus on talent development and the innovative use of technology and systems 3

  4. Our Performance First quarter 2017 results 2017 guidance 1 Net Loss Attributable to Common $(0.05) Shareholders/Share Net Income Attributable to Common $0.91 - $0.96 Shareholders Operating FFO/Share $0.28 Same Store NOI Growth 2.0% Operating FFO/Share $1.00 - $1.05 General & Administrative Expense $11.2 million Assumptions supporting 2017 Guidance 1 : Disposition Activity 2 $568.8 million Acquisition Activity 3 $125.5 million Same Store NOI Growth 1.25% - 2.25% Blended Comparable Re-leasing Spreads 10.0% General & Administrative Expense $42 - $44 million 121 leases representing Leasing Volume 466,000 square feet Disposition Activity $800 - $900 million Retail Leased Rate 94.3% Acquisition Activity $375 - $475 million Retail ABR psf $17.52 4

  5. N Y S E : R P A I T O TA L C A P I TA L I Z AT I O N $5.6B 1 I N V E S T M E N T G R A D E BBB- Baa3 S & P Moody’s 5

  6. 25.4 MILLION SQUARE FEET 1 4 9 R E TA I L O P E R AT I N G P R O P E R T I E S TA R G E T M A R K E T S ( R A R A N K B Y B Y A A B R B R 1 ) D A L L A S AT L A N TA D. C . / B A LT I M O R E H O U S TO N N E W YO R K S A N A N TO N I O C H I C AG O P H O E N I X S E AT T L E A U S T I N 6

  7. 97. 0 % Multi-Tenant Retail 3. 0 % Single-User Retail Based on Retail ABR 7

  8. SIGNIFICANT MULTI-TENANT RETAIL PRESENCE 1 IN TOP NATIONAL MSA S 81% 69% 76% Located in Top 50 MSAs Located in Target Markets Located in Top 30 MSAs Based on ABR 8

  9. Real Estate Driven - Evolving Multi-Tenant Retail Asset Mix 39 % 38 % 36 % 26 % 45 % 2017 16 % 2017 2017 2013 2013 2013 NEIGHBORHOOD/ LIFESTYLE CENTERS/ POWER CENTERS COMMUNITY CENTERS MIXED-USE PROPERTIES Avg. Household Income $90,000 Avg. Household Income $122,000 Avg. Household Income $94,000 Population 156,000 Population 417,000 Population 117,000 Est. Population Growth 5.7% Est. Population Growth 6.0% Est. Population Growth 5.4% 3-mile radius 5-mile radius 5-mile radius Asset mix based on ABR 9

  10. Peer Comparison | Our High Quality Portfolio Target $30 Markets $26.91 25% $25 21.2% $17.52 20% 19.1% 18.0% $20.21 $19.92 $20 $19.66 15.9% $17.93 $17.13 15% $15.46 $15.08 12.5% $15 11.4% $12.99 10.2% 10% $10 5% $5 0% $0 FRT REG ROIC RPAI WRI UE DDR KIM BRX RPAI KIM WRI REG DDR FRT BRX RETAIL ABR PSF RETAIL ABR PSF - % GROWTH (2013-2017) 10

  11. Peer Comparison | Our Dominant Locations 200 191 40% 180 37% 167 153 160 35% 140 132 30% 125 120 26% 116 120 25% 25% 96 100 86 18% 20% 80 14% 15% 60 10% 10% 9% 10% 40 7% 20 5% - 0% UE FRT REG RPAI KIM WRI ROIC DDR BRX FRT RPAI REG WRI KIM DDR ROIC BRX UE RETAIL – THREE MILE POPULATION 1 SUPERZIP - % OF VALUE 2 11

  12. Tenant Profile & Anchor Strength Top Retail Tenants Compelling Grocer Profile % of Retail % of Retail Moody's / S&P Tenant ABR Occupied GLA Credit Rating Best Buy Co., Inc. 3.0% 3.3% Baa1/BBB- Ahold U.S.A. Inc. 2.6% 2.3% NR/NR Ross Stores, Inc. 2.4% 3.6% A3/A- The TJX Companies, Inc. 2.2% 3.9% A2/A+ Bed Bath & Beyond Inc. 2.0% 2.5% Baa1/BBB+ PetSmart, Inc. 1.9% 2.3% B1/B+ Regal Entertainment Group 1.7% 0.9% B1/B+ Michaels Stores, Inc. 1.5% 2.2% B1/BB- AB Acquisition LLC 1.5% 2.0% NR/NR Ascena Retail Group, Inc. 1.4% 1.1% Ba2/BB- 12

  13. Tenant Considerations Zero Tenant Exposure Backfill Opportunities = Value Creation  Two locations, 111,000 square Five locations, 161,000 square  feet, ~30 basis points of retail feet, ~45 basis points of retail ABR ABR  Mark to market opportunity of Mark to market opportunity of  0% to +10% +20% assuming single tenant backfills  Expect +/- 12 months of downtime  Expect +/- 12 months of downtime 1 Nine locations, 44,000 square   16 locations, 49,000 square feet, ~20 basis points of retail feet, ~30 basis points of retail ABR ABR  Two of our nine locations were Not affected by announced  on the initial closing list store closings 13

  14. Case Study: Accretive Backfilling In 2015, we proactively recaptured 15 anchor boxes, representing 537,000 square feet REDUCED EXPOSURE UPGRADED RETAILERS RESULTS Comparable re-leasing spreads +19% Downtime < 12 months 14

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