Q1 2015 Company Presentation
Company and Portfolio Overview
Portfolio Overview Strong Anchor Tenants Operating Portfolio Statistics Jumbo anchors/shadow anchors (100k+ sq ft) draw from 40 Number of properties in portfolio (1) a large trade area; make the centers difficult to replicate Credit tenants provide stability to revenues; over 80% Approx. total GLA (SF) (1) 7.6M national and regional tenants Weighted average lease term (2) 7 Weighted average portfolio age (2) 8 Percent leased (1) 93.9% Portfolio price/sq. ft. (1) $200 3 / 5 mile weighted average HH income (1) $92K / $89K 3 / 5 mile weighted average population (1) 59K / 140K Notes: (1) As of 12/31/2014, excludes unconsolidated properties and development properties (2) As of 12/31/2014, excludes unconsolidated properties and development properties; weighted by GLA (3) Source: AGS 2014. Weighted by GLA; includes properties under development using pro forma GLA 2
High Quality Anchor Tenants BAML - General Merchandiser Top 10 Tenants by Annualized Base Rent (1) % ABR Score (2) Dick’s Sporting Goods 2.6% EXL 3.86 KRG Ross Dress for Less 2.5% RPT FRT Publix 2.4% KIM DDR Kohl‘s 2.1% BRX ROIC PetSmart 2.0% RPAI CDR Edwards Theatres (Regal Cinemas) 2.0% WRI AAT BFS Whole Foods 1.9% EQY IRC TJX Companies 1.8% AKR UBA Bed Bath & Beyond 1.7% REG 2.94 0 1 2 3 4 5 Jo-Ann 1.7% (1) As of 12/31/2014 (2) Bank of America Merrill Lynch Research, May 2014 3
Stable Anchors with Staggered Maturities Inline -% of Total Anchor - % of Total Total Retail GLA Expiring Anchor vs. Inline - GLA 2015 2016 2017 2018 31% 2019 Anchor 2020 Inline 2021 69% 2022 2023 Beyond 2023 0% 10% 20% 30% Note: As of 12/31/2014 4
Executing the Strategy - Acquisitions ~80% of ABR comes from Top 50 US MSA’s (1) 2014 – Acquired ~$417M around hubs/management offices Northern West Broad Marketplace Highland Reserve $52.5M California $20M (land) 21% of ABR Riverpoint Marketplace $43.8M Ft. Union $131.5M Orem $17M (sold 1-30-2015 for $21.5M) East Coast 11% of ABR Southeast 11% of ABR Southern California 5% of ABR Legend Downtown at Western the Gardens $140.2M EXL 2014 Acquisition States Florida EXL Property 29% of ABR 12% of ABR Texas EXL Office 11% of ABR (1) Company filings and metropolitan statistical data (per website) 5
Sharpening our Focus - Dispositions Current Southeast Portfolio Pro-Forma Proposed Dispositions (1) Mid Atlantic Mid Atlantic Southeast Southeast Florida Florida (1) Contemplates the potential impact of properties in the southeast being marketed. Sales are subject to due diligence and other customary closing conditions. There can be no assurances that due diligence or other conditions will be satisfied or that the sales will close on the terms described herein, or at all. 6
Sharpening our Focus – Disposition Profile Core Portfolio: Dominant Properties in Stronger Markets (1) Average Shopping Center 3 mile - 5 mile - Size (sq ft owned) 3 mile - AHHI 5 mile - AHHI Population Population 200,000 $100,000 189,000 160,000 $92,000 180,000 $89,000 139,000 $90,000 140,000 160,000 $77,000 120,000 $80,000 140,000 $75,000 120,000 100,000 $70,000 100,000 80,000 69,000 $60,000 73,000 80,000 59,000 60,000 60,000 $50,000 40,000 40,000 23,000 $40,000 20,000 20,000 $30,000 - - Pro-Forma SE Dispositions EXL Portfolio Pro-Forma SE Dispositions EXL Portfolio Pro-forma SE Dispositions EXL Portfolio (1) Contemplates the potential impact of properties in the southeast being marketed. Sales are subject to due diligence and other customary closing conditions. There can be no assurances that due diligence or other conditions will be satisfied or that the sales will close on the terms described herein, or at all. 7
Recent Acquisitions
Shops at Fort Union – Salt Lake City, UT Dominant Center / Infill Location Value proposition: Acquired dominant asset via relationship driven portfolio transaction Part of three property portfolio purchased for ~$223M (subsequently sold two assets for ~$97M) Retail: 97% leased ~689K sq. ft. shopping center Tenants include Walmart, Gordmans, Smith’s Food, Ross Dress for Less, Dick’s Sporting Goods, Bed Bath & Beyond, Ulta, DSW, Office Max, Dollar Tree, etc. Strong in-fill demographics: 3 / 5 mile average HH income is $75K / $80K; population is 129K / 318K (1) 9 (1) Source: AGS 2014
Downtown at the Gardens – Palm Beach Gardens, FL Irreplaceable real estate sourced through relationships Value proposition: capitalized on relationship with seller to purchase off-market one of the region’s most dominant properties at an attractive price Retail purchased for ~$140M Tenants include Whole Foods, Cheesecake Factory, Golfsmith, Cobb Theaters, West Elm, and Urban Outfitters Retail: 99% leased ~339K sq. ft. shopping center Strong demographics: 3 / 5 mile average HH income is $107K / $103K; population is 65K / 147K (1) 10 (1) Source: AGS 2014
Riverpoint Marketplace – Sacramento, CA Draws from Large Trade / Freeway Visibility Value proposition: Acquired dominant asset in target market Retail: 97% leased 133K sq. ft. shopping center acquired for $43.8M Tenants include Ikea (non-owned), Super Walmart (non-owned), Home Depot(non- owned), Ross Dress for Less, and Petco I-80 frontage with 92K VPD; draws from a large trade area as a result of its strong anchor tenants Demos: 3 / 5 mile average HH income is $62K / $69K; population is 53K / 172K (1) 11 (1) Source: AGS 2014
Highland Reserve Marketplace – Roseville, CA Dominant Retail Corridor / Strong Demographics Value proposition: Located around a management hub in strong retail corridor; surrounded by healthy demographics Retail: 98.5% leased ~191K sq. ft. shopping center acquired for $52.5M Tenants include Target (non-owned), Kohl's, Sport Chalet, PetSmart, and BevMo. Strong in-fill demographics: 3 / 5 mile average HH income is $90K / $91K; population is 93K / 190K (1) 12 (1) Source: AGS 2014
West Broad Marketplace – Richmond, VA Dominant Anchors Surrounded by Strong Incomes Value proposition: Located around a management hub with 50% of GLA pre-leased to destination retailers Cabela’s / Wegman’s on signed ground leases; account for ~50% of GLA Well located: frontage on I-64 Cabela’s – reports that average store visit is 3-4 hours; can draw customers from as far as 100 miles Wegman’s –reported 2013 sales psf of ~$839; can draw customers from 30-40 miles Strong demographics: 3 / 5 mile average HH income is $130K / $111K; population is 46K / 108K (1) 13 (1) Source: AGS 2014
Portfolio Examples
The Promenade – Scottsdale, AZ Class A property in heart of dominant retail corridor Value proposition: capitalized on economic downturn and relationship with seller to purchase one of the region’s most dominant properties at an attractive price Retail purchased for ~$110M on 7/2011, office towers purchased for $56M in shares and cash on 1/2012, $16M ground lease on 10/2013 Tenants include Lowe’s (non-owned), Nordstrom Rack, Old Navy, Stein Mart, Trader Joe’s, Cost Plus World Market Retail: 94% leased ~730K sq. ft. power center (~567K sq. ft. owned) Office: 83% leased ~256K sq. ft. Class A office towers Robust sales per sq. ft.: Nordstrom Rack: ~$900, Trader Joe’s: ~$2,600 Strong demographics: 3 / 5 mile average HH income is $104K / $102K; population is 58K / 178K (1) 15 (1) Source: AGS 2014
West Broad Village – Richmond VA High end mixed use center with leasing upside Value proposition: Purchased off-market near the value of the property debt due to direct negotiations with seller; upside potential from undeveloped pads and vacant retail space ~77% leased mixed use center with ~397K sq. ft. of retail and office, 339 apartments, Starwood Loft (non-owned) and 493 townhomes (non-owned) Acquired for $171M as part of a portfolio transaction Major tenants: Whole Foods, HomeGoods, REI, Wells Fargo, Kona Grill, Bonefish, Dave & Buster’s, First Market Bank, Mimi’s Cafe Population in 3 / 5 mile radius: 78K / 153K (1) Avg. HH income in 3 / 5 mile radius: $103K / $97K (1) 16 (1) Source: AGS 2014
Plaza at Rockwall – Rockwall, TX Power Center with Additional Value Created Through Expansion Value proposition: Leveraged relationships with both the developer and equity partner to acquire the property below market ; developed an additional 100K sq. ft. of retail space on vacant land included in deal, increasing yield to nearly 10% 99% leased 432K sq. ft. Class “A” power center acquired 6/2010 for $41M Anchored by JC Penney, Belk, Dick’s, Staples, Best Buy Developed and stabilized vacant land, Located in Dallas suburb, ranked 2 nd wealthiest county in TX (1) 2 nd best county in US for job growth (13% between 2010-12) (2) Average HH income of $102K in a 3-mile radius (3) Located at I-30 and Hwy 205 with highest daily traffic counts in county (98K and 23K, respectively) (4) Notes: (1) Source: 2000 Census based on median income 17 (2) Source: CNN Money, August 2013 (2) Source: AGS 2013 (3) Source: Texas DOT, 2009
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