 Investor Presentation
November 2012
Exhibit 99.1 |
 1
Forward Looking Statements
Certain matters discussed by Equity One in this presentation constitute forward-looking statements
within the meaning of the federal securities laws. Although Equity One believes that the
expectations reflected in such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that these expectations will be achieved. Factors that
could cause actual results to differ materially from current expectations include volatility of
the capital markets, changes in macro-economic conditions and the demand for retail space
in the states in which Equity One owns properties; the continuing financial success of Equity
One’s current and prospective tenants; the risks that Equity One may not be able to proceed with
or obtain necessary approvals for development or redevelopment projects or that it may take
more time to complete such projects or incur costs greater than anticipated; the availability
of properties for acquisition; the ability to sell non-core assets at favorable pricing;
the extent to which continuing supply constraints occur in geographic markets where Equity One
owns properties; the success of its efforts to lease up vacant space; the effects of natural
and other disasters; the ability of Equity One to successfully integrate the operations and systems of
acquired companies and properties; changes in Equity One’s credit ratings; and other risks, which
are described in Equity One’s filings with the Securities and Exchange Commission.
This presentation also contains non-GAAP financial measures, including Funds from Operations, or
FFO. Reconciliations of these non-GAAP financial measures to the most directly
comparable GAAP measures can be found in Equity One’s quarterly supplemental information
package and in filings made with the SEC which are available on its website at
www.equityone.net |
 Mission Statement
2
Improving retail real estate in urban communities |
 Corporate Overview
3
•
Equity One specializes in the acquisition, asset management, development and
redevelopment of quality retail properties primarily located in the coastal
markets of the United States •
We own
160
operating
properties
in
13
states
(1)
•
Our largest markets as measured by approximate fair market values are: South
Florida (27%), Northeast (27%),
California
(21%),
North
Florida
(10%),
and
Atlanta
(8%)
(2)
•
Total equity capitalization / total enterprise value as of 09/30/12: $2.7 billion /
$4.2 billion •
Investment
grade
credit
ratings
of
Baa3
(positive)
from
Moody’s
and
BBB-
(stable)
from
S&P
•
Management and board have substantial ownership stake and experience:
–
Beneficial ownership: 50.1%
(3)
–
Management team has over 80 years of collective experience
(1)
Includes acquisitions & dispositions under contract as of 09/30/2012. Excludes land and
non-core assets not associated with retail centers. Additionally, we have joint venture
interests in nineteen retail properties and two office buildings totaling approximately 2.8 million square feet.
(2)
Based on total estimated fair value as of 09/30/12, inclusive of all acquisitions and dispositions
under contract as of 09/30/2012 and excludes land. Does not include unconsolidated JV
properties. (3)
Beneficial ownership of current executive officers and directors as of 09/30/12 in accordance with
rules of the SEC and including options exercisable within 60 days. Beneficial ownership:
Chaim Katzman 46.5%, Jeff Olson 2.0% and Nathan Hetz 0.5% on a fully diluted basis. |
 Equity
One is on the move… Then vs. Now
4
Asset Composition by Region
•
Approximately
$2
billion
of
acquisitions
completed
since
2009
in
our
target
markets
(3):
–
Approximately $780 million of assets in West Coast markets
–
Approximately $950 million of premium quality assets in Northeast portfolio
–
Completed The Gallery at Westbury Plaza in Nassau County, NY
•
Sold approximately $800 million of non-strategic/non-core assets since
2009, the most prominent being: –
$473 million sale of 36 non-strategic retail assets to Blackstone
–
$191 million asset dispositions related to non-retail CapCo assets
Portfolio
Quality
Metrics
in
2012
vs.
2008
(2)
Dec
2008
Portfolio
$2,365 MM
Sept 2012 Portfolio
(1)
$3,690 MM
Significant Investment Activity has Transformed the Portfolio
(1)
Data includes acquisitions & dispositions under contract as of 09/30/12. Excludes land and
non-core assets not associated with retail centers. Based on IFRS fair market values as of
09/30/12. (2)
Demographic data based on weighted estimated fair market value of assets. Source: Sites USA.
(3)
As of Sept 30, 2012, includes assets under contract as of Sept 30, 2012 and joint venture properties.
Figures are computed based on weighted average estimated fair values. South
Florida 27%
Northeast
27%
California
21%
Central/
North Florida
10%
Atlanta
8%
Other
7%
South Florida
43%
Northeast
7%
Central/
North Florida
22%
Atlanta
12%
Other
16%
169,017
$95,702
82,368
$72,878
3-mile population
3-mile avg. HH income
$522
$406
Grocery sales per sq.ft
108%
30%
33% |
 5
Portfolio Metrics
(1)
New York occupancy rate would be 98% excluding The Gallery at Westbury Plaza, which
is currently 73% leased. (2)
Excludes land and non-core assets not associated with retail centers. Includes
acquisitions and dispositions under contract as of 09/30/12. (3)
Fair value of Westwood Center in Bethesda, MD is based on purchase price when
property is ultimately acquired. (4)
Includes Lake Mary, Sunlake, Pablo and South Beach Regional.
(1)
(3)
(4)
# of
centers
3Q12 Fair
Value
($M)
GLA
3Q12
Occ.
All
Anchor
Shop
Pop.
Avg HH
Income
Grocer
Sales
Balance
Interest Years to
Rate
Maturity
Core Markets
Northeast
Connecticut
7
$252.3
867,764
98.0%
$22.66
$13.27
$31.15
37,706
$140,202
$843
$82.7
5.6%
5.2
Maryland
1
$140.0
466,910
97.8%
$13.84
N/A
N/A
139,570
$200,005
$847
$0.0
0.0%
0.0
Massachusetts
7
$139.7
600,879
99.1%
$18.80
$18.96
$17.47
185,947
$84,412
$347
$7.1
8.1%
11.9
New York
7
$465.1
950,727
86.9%
$32.67
$29.38
$55.71
481,966
$104,881
$1,391
$7.1
7.0%
6.6
Northeast Total
22
$997.2
2,886,280
94.5%
$22.84
$21.20
$31.79
280,001
$124,307
$669
$96.9
5.9%
5.8
Southeast
North and Central Florida
7
$176.8
1,212,742
88.8%
$14.82
$11.27
$21.15
49,068
$91,351
$420
$23.3
5.8%
2.7
Atlanta (Core)
6
$178.7
821,321
95.8%
$16.45
$12.77
$24.70
92,868
$111,775
$571
$39.6
7.0%
4.4
Broward/Miami-
Dade/Palm Beach Counties
40
$914.5
4,826,944
92.2%
$15.07
$10.37
$23.38
130,518
$76,458
$618
$87.6
6.3%
5.4
Florida Treasure/Northeast Coast
6
$73.5
504,568
92.3%
$12.11
$8.35
$19.62
39,678
$70,858
$630
$7.0
5.7%
1.8
Southeast Total
59
$1,343.5
7,365,575
92.1%
$14.98
$10.66
$22.92
109,822
$82,809
$609
$157.5
6.3%
4.6
West Coast
Arizona
1
$26.7
210,396
64.4%
$19.26
$12.54
$26.09
35,703
$74,853
$0
$0.0
0.0%
0.0
Los Angeles
4
$194.5
489,239
98.0%
$20.58
$13.57
$34.69
263,644
$93,587
$508
$74.9
5.5%
6.3
San Francisco
5
$587.9
1,564,570
98.2%
$28.61
$20.80
$39.69
217,182
$95,412
$817
$71.6
6.0%
3.7
West Coast Total
10
$809.1
2,264,205
95.0%
$25.92
$18.23
$37.95
222,360
$94,295
$647
$146.5
5.7%
5.0
Total
91
$3,149.8
12,516,060
93.2%
$18.66
$14.64
$26.87
192,606
$98,897
$630
$400.9
6.0%
5.0
Non-core Markets
Atlanta
13
$103.6
1,042,475
88.4%
$10.40
$7.86
$15.61
49,254
$78,135
$396
$16.5
6.9%
8.7
Tampa/St. Petersburg/Venice/Cape Coral/Naples
10
$87.0
984,807
73.2%
$10.59
$7.63
$17.06
39,344
$83,294
$416
$0.0
0.0%
0.0
Louisiana
12
$101.6
1,311,385
95.4%
$8.59
$6.80
$13.03
58,017
$76,794
$235
$3.1
6.5%
11.4
Jacksonville/North Florida
9
$67.6
819,879
90.2%
$10.22
$8.45
$16.14
43,528
$62,772
$474
$0.0
0.0%
0.0
Orlando/Central Florida
6
$52.9
555,044
85.0%
$11.63
$6.46
$20.25
85,262
$59,855
$365
$0.0
0.0%
0.0
North Carolina
9
$59.2
921,216
74.4%
$8.03
$6.39
$11.96
29,774
$63,967
$289
$6.6
6.3%
0.8
Central/ South Georgia
4
$35.2
624,662
79.6%
$8.10
$6.17
$12.06
60,007
$48,571
$443
$3.1
6.5%
11.4
AL/MS/VA
3
$18.1
258,535
97.9%
$7.27
$5.49
$13.44
21,816
$69,354
$395
$2.8
6.5%
11.4
South Carolina
3
$14.8
196,876
89.3%
$8.24
$7.00
$14.32
30,589
$82,603
$489
$0.0
0.0%
0.0
Total
69
$539.9
6,714,879
85.1%
$9.41
$7.10
$14.91
49,250
$71,348
$396
$32.1
6.7%
7.8
Grand Total
(2)
160
$3,689.7
19,230,939
90.4%
$15.48
$11.97
$22.86
171,628
$94,866
$540
$433.0
6.1%
5.2
In-Place Debt (9/30/12)
Base Rent ($/sf) |
 Concentration of Assets As of September 30, 2012
(1)
6
Region
$(M)
%
South Florida
$988
27%
Northeast
$997
27%
California
$782
21%
Central/North Florida
$384
10%
Atlanta
$282
8%
Other
$257
7%
Total
$3,690
100%
(1)
Data includes acquisitions & dispositions under contract as of 09/30/12.
Excludes land and non-core assets not associated with retail centers. IFRS fair market
values are as of 09/30/12.
Estimated FMV:
$588M
% of FV: 16%
Estimated FMV:
$194M
% of FV: 5%
Estimated FMV:
$997M
% of FV: 27%
Estimated FMV:
$29M
% of FV: 1%
Estimated FMV:
$282M
% of FV: 8%
Estimated FMV:
$988M
% of FV: 27%
Estimated FMV:
$384M
% of FV: 10% |
 2012
Strategic Goals 7
Meet or exceed fundamental operating goals:
•
FFO per share
•
SS NOI growth
•
SS Occupancy
Continue to upgrade portfolio quality and demographic profile through strategic
transactions:
•
Expected to close $280M in acquisitions in 2012 with a focus on the Northeast and
West Coast
•
Identified $215M of non-core assets for dispostion
Maintain low leverage (~40%) and abundant liquidity
Maintain investment grade ratings and improve credit metrics
Upgrade information technology systems –
implement IT strategic plan that is aligned
with our operational strategy
OPERATING
FUNDAMENTALS
PORTFOLIO QUALITY
VALUE CREATION
BALANCE SHEET
MANAGEMENT
OPERATIONS
Continue to strengthen development and redevelopment pipeline:
•
Focus on the remaining lease up of The Gallery at Westbury (targeting 80% lease
rate by 12/31/12)
•
Establish redevelopment and densification plans at Serramonte Center in Daly City,
CA –
Signed lease with Dick’s Sporting Goods (83K sf) at a cost of $18M
•
Finalize development plan and budget for new site in the Bronx (133,000 sf)
–
Work on phase I plan to add entertainment wing |
 Our
Path to Sustained NOI Growth 8
Contractual rent steps
Below market
leases
–
recent
acquisitions
provide
opportunity
to
capture
market
rents
in
coming years
Increase
in
percentage
rent
–
higher
quality
assets
in
more
productive
markets
provide
greater upside
Increase occupancy with an emphasis on small shop space
Expense control and implementation of cost control initiatives within property
operations Reduce concentration of assets in secondary and non-core
markets Expand tenant relations and marketing efforts with national and
regional retailers |
 Enhancing Portfolio Value by Improving Portfolio Quality
9
•
We plan to further diversify our portfolio into supply constrained, urban
markets •
Recent
acquisitions
in
California
and
New
York
highlight
our
focused
approach
on
properties
which
meet
the
following key criteria aimed at enhancing the quality and performance of our
overall portfolio: –
Strong demographics
–
average
3-mile
populations
of
nearly
200,000
as
compared
to
EQY’s
historical
portfolio average of approximately 80,000
–
Strong barriers to entry due to scarcity of land and strict zoning
restrictions –
Highly productive anchor sales volumes
–
Below market anchor rents
–
Redevelopment and densification opportunities
•
These
acquisitions
have
enabled
us
to
diversify
our
portfolio
into
higher
quality
centers
in
major
MSAs
which
will ultimately result in greater stability and higher internal growth
|
 Enhancing Portfolio Value through Development and Redevelopment
10
Our redevelopment strategy is based on a careful assessment of risk:
•
Projects undertaken in select target markets where management has extensive
knowledge •
Majority
of
new
leases
related
to
development
space
signed
prior
to
construction
•
Development
skill
set
greatly
enhanced
with
new
senior
executive
team
members:
•
Michael
Berfield
–
Northeast
•
Jeff
Mooallem
–
West
Coast
•
New ground up development projects limited to urban locations sought after by big
box retail •
Redevelopment projects provide growth in asset value while minimizing risk of in
place income •
Recent track record demonstrates successful execution by narrowing focus to a
select few projects
•
Targeted level of development/redevelopment projects (approx. 10% of total asset
value) is reasonable and appropriate given lower risk profile of selected
opportunities in urban markets |
 Development / Redevelopment Update
11
•
The Gallery at Westbury Plaza
•
Recent activity at The Gallery at Westbury includes signed leases with Starbucks,
Red Mango, Jenna & Molly, Banana Republic Outlet, GAP Outlet, Lane
Bryant, Bank of America, Noodles & Co., and GNC
•
Stores
now
open
include
The
Container
Store,
Trader
Joe’s,
Saks
Off
5
th
,
Ulta,
Bloomingdale’s,
Nordstrom Rack, SA Elite and Verizon
•
Old Navy and Shake Shack will open in November
•
Serramonte
•
Multi-phased expansion, development and re-tenanting to begin with the
construction of a new two level Dick’s
Sporting
Goods –
their
largest
one
in
California
and
flagship
San
Francisco store
•
Actively discussing
new
tenanting
options
–
big
box
retail,
entertainment, value/convenience retail
•
Future phases will
explore
250,000
sf
of
additional
retail
space
plus
a
residential
component
•
Boca Village / Pine Ridge
•
Addresses layout / structural design weakness
•
Reduces shop tenant exposure
•
Target stabilization late 2013 / early 2014
•
Bronx site
•
Acquired 80,000
sf
land
parcel
located
at
the
intersection
of
230
street
and
the
Broadway near
Kingsbridge in the Bronx
•
Expected to construct a new 133,000-square-foot, two-story
multi-tenant retail development •
Expected to start construction in early 2013 with a targeted stabilization date in
2015 th |
 Disciplined Growth While Improving Leverage Metrics
12
Gross Assets
(1)
Equity Raised
Fixed Charge Coverage
(4)
Total Debt to Gross Real Estate
(5)
Secured Debt to Gross Real Estate
(5)
(1)
Gross Assets represents Total Assets plus Accumulated Depreciation.
(2)
Represents 866,373 shares issued to DIM Vastgoed at closing price of $14.12 on
1/9/09 and 536,601 at a closing price of $18.36 on 2/19/10. (3)
Based on total capitalization of $600 million for Capital & Counties less $327
million of debt. (4)
Represents adjusted EBITDA to fixed charges. Adjusted EBITDA excludes gains/losses
on property sales, debt extinguishment, impairments, and other non-recurring items.
(5)
Gross Real Estate represents Total Real Estate Assets plus Accumulated
Depreciation. (2)
(3)
(2) |
 Balance Sheet Discipline –
Demonstrated Via Modest Leverage
13
•
Key leverage ratios as of 9/30/12:
–
Net Debt to Total Market Cap: 34.0%
–
Net Debt to Gross Real Estate: 42.4%
–
Net
Debt
to
Adjusted
EBITDA
(1)
:
6.8x
–
Adjusted EBITDA to interest expense coverage: 2.8x
–
Adjusted EBITDA to fixed charges: 2.6x
–
Weighted
average
term
to
maturity
for
our
total
debt
years:
5.8
years
(2)
Source: Company filings and SNL financial. Credit ratings from S&P and Moody's
as of 9/30/12. 30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
EQY (BBB-/Baa3)
KIM (BBB+/Baa1)
FRT (BBB+/Baa1)
REG (BBB/NR)
WRI (BBB/Baa2)
Q3
2012 Leverage (Total Debt + Preferred / Gross Assets)
(1)
Based on Net Debt as of 9/30/12 and Adjusted EBITDA (excluding gains/losses on property sales, debt
extinguishment, impairments, and other non-recurring items) calculated by annualizing 3Q12
adjusted EBITDA as reported in the 9/30/12 Supplement. (2)
Based on the pro-forma term to maturity including the effect of the October $300M bond offering
and pending redemption of the 2014 bonds. |
 Current Liquidity Position
14
•
Cash and cash equivalents amounted to $28.9 million as of September 30, 2012
•
New upsized revolving credit facility has capacity of $575 million and matures
September 30, 2015 with a one year extension option
•
We maintain a manageable debt maturity schedule with maturities through 2017:
Note: Cash includes $2.3M in Escrow account. Debt maturity schedule as of 9/30/12.
Includes scheduled principal amortization. Credit facilities are shown as due on
the
initial
maturity
dates,
though
certain
extension
options
may
be
available.
Debt maturity schedule presents pro-forma effect of the $300M bonds issued in
October 2012 and the corresponding redemption of the 2014 bonds. •
Strong lending relationships with both traditional banks and life insurance
companies •
Demonstrated access to the public markets
Debt Maturity Schedule (includes amortization)
$3
$55
$15
$233
$220
$289
$63
$273
$344
$0
$50
$100
$150
$200
$250
$300
$350
2012
2013
2014
2015
2016
2017
2018
2019
Thereafter
Secured Debt
Senior Notes
Term Loan
Credit Facility |
 Investment Thesis
15
Well-located, high quality, and productive grocery-anchored shopping
centers with an intensive focus on asset management
Investment strategy focused on identified core markets leading to an upgrade in
portfolio quality and further geographic diversity
A healthy financial structure including a strong balance sheet, modest leverage
and ample liquidity
We are a premier operator positioned for growth
A management team who has proven to execute a stated strategy of significant
portfolio improvement while maintaining financial discipline
|
 Appendix
–
Recent
Acquisitions
•
Westwood Complex
•
Clocktower
•
2 Avenue
•
Darinor Plaza
•
Broadway Plaza
•
Potrero
•
Serramonte Shopping Center
•
The Gallery at Westbury Plaza and Westbury Plaza
nd
16 |
 Westwood Complex, Bethesda, MD
17 |
 Westwood
Complex
–
Competition
Map
18 |
 Clocktower –
Queens, NY
19 |
 2 Avenue between 64 & 65 Street
20
nd
th
th |
 Darinor Plaza, Connecticut
21 |
 Broadway Plaza, Bronx, NY
22 |
 Broadway Plaza, Bronx, NY
23 |
 Development Option -
Broadway Plaza, Bronx, NY
24 |
 Schematic -
Broadway Plaza, Bronx, NY
25 |
 Potrero Center, San Francisco, CA
26 |
 Serramonte Shopping Center
27 |
 The
Gallery at Westbury Plaza and Westbury Plaza 28
|
 The
Gallery at Westbury Plaza 29 |