 Exhibit 99.1 |
 Investment Considerations
1
Quality retail properties located in supply constrained communities in major
coastal markets of the United States Capital recycling plan divesting lower
tier non-core assets will be substantially completed by the end of 2014
-
Approximately
$2
billion
of
acquisitions
in
target
markets
since
2009
-
Approximately $1 billion of dispositions of non-strategic, non-core assets
since 2011 Upgraded portfolio provides attractive pipeline of re/development
investment opportunities Diversified tenant mix provides stable and growing
stream of cash flow Strong balance sheet with modest leverage, ample
liquidity and well-laddered debt maturities Financial capacity and proven
ability to execute on opportunistic acquisitions and re/developments We are
a premier operator of quality retail properties and are well positioned for continued growth |
 Portfolio Well Diversified in Major Supply Constrained Coastal Markets
2
(1)
Includes
acquisitions
and
dispositions
completed
and
under
contract
as
of
10/29/2014,
and
includes
development
and
redevelopment
properties.
Excludes
land,
non-retail
assets (except Westwood in MD), and unconsolidated JV properties. Estimated fair
market values are based on IFRS values as of 9/30/2014. Maryland base rent is retail only.
(2)
In millions of square feet.
($ Millions, Except Avg. Base Rent)
Estimated FMV: $681
% of FMV: 17%
Estimated FMV: $214
% of FMV: 6%
Estimated FMV: $1,306
% of FMV: 34%
Estimated FMV: $201
% of FMV: 5%
Estimated FMV: $974
% of FMV: 25%
Estimated FMV: $403
% of FMV: 10%
$ FMV
(1)
% FMV
# of
Prop.
GLA
(2)
Avg. Prop.
Value
Avg. Base
Rent PSF
Florida
$1,377
35%
57
7.1
$24
$15
California
$895
23%
11
2.4
$81
$23
New York
$699
18%
8
1.1
$87
$39
Connecticut
$330
9%
8
1.0
$41
$20
Georgia
$201
5%
9
1.0
$22
$16
Maryland
$142
4%
1
0.5
$142
$19
Massachusetts
$135
3%
7
0.6
$19
$19
Louisiana
$74
2%
7
0.9
$11
$10
North Carolina
$23
1%
3
0.4
$8
$7
Total
$3,876
100%
111
14.9
$35
$18 |
 Corporate Snapshot
3
We own, manage, acquire, develop and redevelop quality retail properties located in
supply constrained communities in major coastal markets of the United
States As of September
30, 2014, we owned
111 operating
properties
in 9 states
Our capital recycling program has significantly improved our geographic
diversification and portfolio demographics Our largest geographic markets as
measured by approximate fair market values are New York Metro (27%), South
Florida (25%),
and
California
(23%)
Our properties have average population within 3 miles of 214k and average household
income within 3 miles of $102k
The
grocer
sales
in
our
portfolio
average
in
excess
of
$625
per
square
foot
As
of
September
30,
2014,
our
total
equity
market
capitalization
and
total
enterprise
value
were
$2.9
billion
and
$4.3 billion, respectively
We
have
investment
grade
credit
ratings
of
Baa2
(stable)
from
Moody’s
and
BBB-
(positive)
from
S&P
(4)
(1)
(3)
(2)
(5)
(1)
Includes acquisitions and dispositions completed and under contract as of 10/29/2014, and development
and redevelopment properties. Excludes land, non- retail assets, and unconsolidated JV
properties. Additionally, we have joint venture interests in 18 retail properties and two office buildings totaling
approximately 3.2M sf.
(2)
Based on total estimated fair market value of operating property portfolio as of 9/30/2014.
Includes acquisitions and dispositions completed and under contract as of 10/29/2014, and
development and redevelopment properties. Excludes land, non-retail assets, and unconsolidated JV properties.
(3)
Demographic data based on weighted estimated fair market value of assets. Includes acquisitions and
dispositions completed and under contract as of 10/29/2014, and development and redevelopment
properties. Source: Sites USA.
(4)
Grocer sales based on most recent available data as of 6/30/2014 and weighted by GLA. Excludes
grocers who have vacated but are still paying rent.
(5)
Based on diluted shares of 134.4M.
|
 3Q14
Summary Highlights Earnings
3Q14 Recurring FFO was $0.31/share, up 3% vs. 3Q13. YTD Recurring FFO was
$0.98/share, up 5% vs. prior year, and benefitted by $0.04/share from the
1Q14 pick-up from the Loehmann’s below market lease liability write-off and a bad debt expense reversal.
Operating
fundamentals
Same property NOI increased 2.5% vs. 3Q13, driven primarily by new lease rent
commencements and contractual increases. Adjusted to include two
redevelopment assets with stabilized NOI but pending reentry to the SS pool, SS NOI increased 3.9% vs. 3Q13
Consolidated shopping center occupancy was 94.4%, up 20 bps vs. 2Q14 and up 200 bps
vs. 3Q13. Consolidated shop occupancy was 85.5%, up 70 bps vs. 2Q14, and the
highest level in six years. SS occupancy was unchanged at 94.4% vs. 2Q14, and
up 10 bps to 94.4% vs. 3Q13 Executed 122 new leases, renewals and options,
totaling 596k sf at an average rent spread of 9.2% on a same space basis, including
177k sf of new leases at an average rent spread of 2.3% on a same space basis
Average base rents were $17.00/sf, up 1.9% vs. 2Q14 and up 9.5% vs. 3Q13
Disposition
activities
Sold eight non-core assets for $64M during 3Q14. YTD through 10/29/2014,
sold twenty non-core assets for $142M, and had an additional
$8M
of
non-core
assets
under
contract.
The
capitalization
rate
for
assets
sold
and
under
contract
for
sale
was
7.9%
(1)
Development
and
redevelopment
activities
Ended 3Q14 with a $134M active gross re/development pipeline, $52M of which
remained to be incurred At Broadway Plaza Phase I, The Sports Authority, TJ
Maxx, Aldi and Party City have opened, and a new lease was signed with Five
Below. Phase II (33k sf) is under construction and leases have been signed
with Blink Fitness (16k sf) and Starbucks (1.4k sf). At Alafaya Commons,
demolition work ongoing for the 63k sf Academy Sports, which is expected to open in 1Q15
At 101 7th Avenue, work ongoing to prepare the space for a new Barneys New York
flagship store, which is expected to be delivered by 1Q15 so that Barneys
may commence its build-out. Barneys New York is expected to open late 1Q16.
Other re-tenanting / expansion projects underway at Ambassador Row Courtyards,
South Beach Regional, Compo Acres and Darinor Financing
activities
and
balance
sheet
Raised $105M net proceeds in a common stock offering to fund re/development and
repay near-term debt maturities 4
(1)
Capitalization rate is weighted average and excludes an asset which was sold via
short-sale transaction for $5.4M. |
 Quality of Earnings Has Been Upgraded via Capital Recycling
5
Strategy to upgrade and diversify asset base commenced in 2009 and will be
substantially complete by year end 2014
Increased concentration of rents in supply constrained markets characterized by
superior demographics, and reduced exposure to lower quality assets
Population density and average household income of asset base have increased 164%
and 34%, respectively, since 2008
Average base rents have increased 22% since 4Q11 and 37% since 4Q10
Average base rents of Top 25 tenants have increased 48% since 4Q11 and 65% since
4Q10 Top 25 tenants are a well diversified mix of leading retailers including
Trader Joe’s, The Container Store, Nordstrom, CVS Pharmacy, Dick’s
Sporting Goods, and TJX Companies, paying rents commensurate with the high
quality of our real estate Publix
exposure
reduced
from
11%
of
annual
minimum
rents
in
2010
to
3%
in
3Q14
YTD 3Q14, 50% of NOI was generated from high barrier northeast and west coast
markets vs. 15% in 2010 |
 Improved Portfolio Quality Shows in Operating Fundamentals
6
(1)
NOI growth is presented on a same property cash basis for each respective period
end. (2)
For the consolidated shopping center portfolio as of each respective period
end. Excludes development and redevelopment properties, and non-retail assets.
(3)
If adjusted for two redevelopment assets (Boca Village Square and Dick’s
Sporting Goods at Serramonte Shopping Center), which have stabilized cash NOI but are not yet
included in the same property pool, YTD SS NOI increased 3.3% vs. same period of
2013. Consolidated Occupancy
(2)
SS NOI Growth %
(1)
Average Base Rent
(2)
•
Full year target: +2.5% to +3.25%
•
If adjusted for Redev: 3.3% YTD
(3)
•
2.4% YTD impacted by small number
of low value assets that are targeted
for disposition
•
+200 bps YTD
•
Goal at beginning of year: 95%
3.3%
•
+22% since 2011
1.3%
3.3%
3.1%
2.4%
0%
1%
2%
3%
4%
5%
6%
2011
2012
2013
YTD 2014
$13.97
$14.58
$16.16
$17.00
$10
$11
$12
$13
$14
$15
$16
$17
$18
$19
$20
2011
2012
2013
YTD 2014
90.7%
92.1%
92.4%
94.4%
90%
91%
92%
93%
94%
95%
96%
97%
98%
2011
2012
2013
YTD 2014 |
 Improved Portfolio Quality Shows in Operating Fundamentals
7
Rent
Spread
–
Total
New
Leases,
Renewals
&
Options
(1)
Rent Spread –
New Leases
(1)
•
Negotiated renewal spreads were
9.0% YTD and 15.7% for the 3Q
6.3%
12.7%
8.4%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2012
2013
2014 YTD
6.6%
11.1%
6.8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2012
2013
2014 YTD
(1)
Rent spreads for new leases reflect same-space leasing where amount of rent
paid by prior tenant is available regardless of the amount of time the space has been vacant.
Including
the
Barneys
New
York
lease
at
101
7
Ave,
new
lease
rent
spreads
were
57.6%
for
2013.
Including
the
Roses
lease
at
Park
Promenade,
new
lease
rent
spreads
were
negative
1.1%
for
2014
YTD.
Including
the
Barneys
New
York
lease
at
101
7
Ave,
total
rent
spreads
were
23.0%
for
2013.
Including
the
Roses
lease
at
Park
Promenade,
total
rent spreads were 4.8% for 2014 YTD.
th
th |
 Progress Against 2014 Strategic Goals
8
Meet or exceed fundamental operating goals
Increase SS NOI +2.5% to 3.5%
Year-end SS occupancy of 95%
Recurring FFO of $1.23 to $1.28 per fully diluted share
Continue to upgrade portfolio quality and demographic
profile through strategic transactions
Core acquisition activity of $100 to $200M, in addition to the
$103M closed in January 2014
JV acquisition activity of $100 to $200M
Non-core asset dispositions of $125 to $175M
Continue to strengthen development and redevelopment
pipeline
Complete construction of Broadway Plaza Phase I, four anchors
commence rent by year-end
Substantially complete construction of redevelopment projects at
Boca Village, Lake Mary Centre, and Boynton Plaza
Substantially advance construction of Broadway Plaza Phase II and
Willows Shopping Center
Establish additional redevelopment and densification plans at
Serramonte and Potrero in the West Coast
Establish redevelopment plans at Westwood in Bethesda, MD
Maintain low leverage and ample liquidity
Continue to strengthen credit metrics and maintain large
unencumbered asset base
Operating
Fundamentals
Capital
Recycling
Value
Creation
Balance Sheet
Management
2014 Goals
3Q14 Progress Assessment
YTD SS NOI +2.4%, revised guidance range 2.5% to 3.25%
SS Occupancy 94.4% at 3Q14, year-end goal still 95%
Raised guidance to range of $1.27 to $1.28/share
Reduced core guidance to zero for 4Q14
Reduced JV guidance to zero for 4Q14
$142M non-core assets sold YTD, an additional $8M under
contract, raised guidance to $150 to $175M
All four anchors at Broadway Plaza Phase I opened, new lease
with Five Below signed bringing leased rate to 78%
Boca Village and Lake Mary Centre (phase I) completed. Boynton
will be substantially completed 1Q15.
Broadway Plaza Phase II construction underway, two leases
signed, center to open 3Q15; Ulta and UFC at Willows opened
Planning progressing for Serramonte next phase and Potrero
Re-zoning process commenced for Westwood redevelopment
Strong balance sheet with improved leverage and liquidity, YTD
net debt/ EBITDA 5.6x
77% unencumbered cash NOI (same property pool) |
 Disciplined Capital Allocation Has Preserved A Strong Balance Sheet
9
Key balance sheet statistics as of September 30, 2014:
In Millions
(1) Excludes any amounts drawn under the revolving credit facility which
expires on 9/30/15. The revolving credit facility was undrawn at 9/30/2014.
Note: Debt maturity schedule as of 9/30/2014. Secured Debt amounts include
scheduled principal amortization. Rates for Secured Debt exclude principal amortization and are based
on weighted average of balances as of 9/30/2014. Credit facility is presented
as due on the initial maturity date. $575M revolving credit facility which
matures September 30, 2015 with a one year extension option
-
In the process of renewing facility sized at $600M
with improved pricing, more favorable covenants,
and increased value from unencumbered asset
pool
Strong lending relationships with both traditional
banks and life insurance companies
Demonstrated access to the public markets
Modest leverage, ample liquidity and well-laddered
debt maturities
5.38%
6.00%
6.12%
3.75%
3.17%
5.29%
5.96%
5.58%
6.25%
6.48%
6.14%
6.39%
$2
$174
$234
$289
$62
$274
$6
$18
$306
$23
$0
$50
$100
$150
$200
$250
$300
$350
2014
2015
2016
2017
2018
2019
2020
2021
2022
Thereafter
Secured Debt
Senior Notes
Term Loan
Credit Facility
-
Net Debt to Adjusted EBITDA: 5.6x
-
Adjusted EBITDA to Interest Expense: 3.6x
-
Adjusted EBITDA to Fixed Charges: 3.2x
-
Net Debt to Total Market Cap: 30.6%
-
Net Debt to Gross Real Estate: 39.9%
-
Weighted
average
term
for
total
debt:
4.3
years
(1)
-
Weighted
average
interest
rate
on
total
debt:
4.96%
(1) |
 Below market
leases
Significant below market leases recently recaptured
-
1175
Third
Avenue
(New
York,
NY)
-
Food
Emporium
paid
$42
psf,
paying
$105
psf
since
2Q13
-
Aventura
Square
(Aventura,
FL)
-
Old
Navy
paid
$18
psf,
lease
expired
1/2014,
executed
renewal
during
2Q13 at $45 psf which commenced 2/2014
-
101
7th
Avenue
(New
York,
NY)
-
Loehmann’s
paid
$25
psf,
Barneys
will
pay
~$80
psf
starting
1Q16
Circle
Center
West
(Long
Beach,
CA)
-
Marshalls
pays
$10
psf,
lease
expires
1Q16,
executed
renewal
during 3Q14 at $21 psf starting 1Q16
Additional below market leases to be captured in coming years are
significant -
Aventura
Square
(Aventura,
FL)
-
DSW
pays
$20
psf,
lease
expires
2018
-
Westwood
(Bethesda,
MD)
-
Giant
Food
pays
$2
psf,
lease
expires
2019
-
Copps
Hill
(Ridgefield,
CT)
-
Kohl’s
pays
$2.40
psf,
lease
expires
2021
-
Circle
Centers
(Long
Beach,
CA)
-
two
additional
anchor
tenants
expiring
2018
and
2022,
~50%
of
market
-
The
Village
Center
(Westport,
CT)
-
in
process
of
re-tenanting
spaces
with
previous
below
market
leases
-
Pleasanton
Plaza
(Pleasanton,
CA)
-
several
below
market
leases
rolling
in
next
several
years
Increase shop
occupancy
Shop occupancy was 85.5% at 9/30/2014, up 10 bps Q/Q same site, driven by 120 bps
gains in Florida Leadership is focused on Florida, which has the greatest
opportunity to drive shop occupancy gains Redevelopment
and site
densification
Acquired properties provide opportunity for redevelopment and densification
-
Serramonte (CA) -
entertainment wing and restaurants will be next phase
-
Westwood (MD) -
opportunity to increase density, will likely include residential component
-
Pleasanton
(CA)
/
Darinor
Plaza
(CT)
-
expansion
and
additional
outparcel
opportunities
Selective core
acquisitions
We will continue to seek acquisitions in our core urban markets
Focus
on
assets
with
highly-productive
anchors,
below
market
anchor
rents,
and
redevelopment
opportunities
Expense control
Intense focus on managing general and administrative costs throughout
organization, and on cost recovery and careful management of
non-recoverable costs Our Path to Sustained NOI Growth
10 |
 Our
Path to Increased Occupancy 11
Key strategic goal heading into 2014 was to increase occupancy from 92.4% at 4Q13
to 95% by 4Q14 through a combination of capital recycling and organic
leasing -
3Q14 consolidated shopping center occupancy increased to 94.4%, up 200 bps vs.
4Q13 -
3Q14 Florida same property occupancy increased 50 bps vs. 2Q14, driven by 35k sf of
net lease-up, primarily shop space (Florida sequential quarter shop
occupancy up 120 bps) -
Continued organic lease-up and disposition of a few non-core assets is
expected to further raise consolidated occupancy by year-end to near
95% Organic growth expected to be driven by
-
Targeting tenants benefitting from improved local economic conditions (food users,
value oriented/ discounters, franchise operators, health and fitness users,
specialty grocers, and mobile phone stores) -
Investment in site redevelopment and anchor re-tenanting, as new and better
anchor tenants drive traffic to shop space and increase demand for shop
space -
Focus on attracting stronger shop operators, including national franchise
operators Continued emphasis is on Florida which contains the greatest
opportunity |
 Leadership is Focused on Leasing Execution
12
Consolidated
shopping
center
occupancy
trends
(1)
New leadership has implemented changes focused on driving occupancy
-
Added four new agents focused on the southeast and Florida assets
-
New leasing commission structure to incent shop leasing
-
Process changes focused on increasing speed of decision making
-
New lease tracking system focused on getting quicker rent commencements
Tenant concentration is well diversified, no tenant generates more than 3.7% of
AMR -
~75% of AMR generated from national / franchise tenants
-
~60% of shopping centers are grocery-anchored
Total
Anchor
Shop
September 30, 2014
94.4%
99.0%
85.5%
March 31, 2014
93.9%
99.3%
83.6%
December 31, 2013
92.4%
97.8%
82.1%
September 30, 2013
92.4%
98.1%
81.5%
(1) Data for occupancy is for the consolidated portfolio, and excludes
development and redevelopment properties, non-retail properties, and unconsolidated joint ventures. |
 Florida comprises 47% of operating portfolio GLA, 39% of YTD total cash NOI, and
35% of estimated fair value Vacant GLA in Florida accounts for approximately
60% of total company vacant GLA, and 98% of vacant Florida GLA is shop
space Florida occupancy was adversely affected by the economic downturn in
2009, but has been showing signs of steady recovery
(1)
Future lease-up in Florida is focused on the following
-
Shop lease-up in targeted food use categories (fast casual, coffee/breakfast,
specialty restaurants) -
Service use categories related to health care, urgent care and dental offices
-
Combining vacant shop space to facilitate new junior anchors
-
Lack of new construction starts provides more opportunities to replace weaker
retailers -
Targeting tenants least impacted by e-commerce (convenience and value oriented
users) Improving
Florida
shop
occupancy,
at
80.9%
at
9/30/2014
including
redevelopment
properties,
has
a
meaningful
impact to NOI
(2)
-
Total
“lost
revenue”
due
to
Florida
shop
vacancy
is
approximately
$11.5M
annually
(2)
-
Every
100
basis
point
increase
in
shop
occupancy
adds
approximately
$600k
revenue
annually
(2)
GLA
Total Occupancy
Avg. Base Rent
September 30, 2014
6,304,360
92.9%
$15.02
September 30, 2013
7,137,706
90.5%
$13.78
September 30, 2012
7,518,394
90.3%
$13.43
September 30, 2011
9,362,192
89.7%
$12.82
Florida –
Past Risk and Drag, Now an Attractive Opportunity
13
(1)
Data for Florida occupancy and average base rents is for the consolidated
portfolio, and excludes redevelopment properties. (2)
Florida shop space lost revenue and occupancy sensitivity analysis is based on the
Florida operating portfolio including redevelopment properties, as presented in the appendix.
“Lost revenue”
includes estimated base rents and estimated NNN reimbursements.
|
 South
Florida 14 |
 Jacksonville
15 |
 Orlando
16 |
 Tampa
17 |
 Sun
Coast 18 |
 Significant Development and Redevelopment Opportunities Will Help
Drive Future Growth
19
Large scale expansions
and new ground up
construction
Broadway Plaza -
based on retail demand, expanded project and building new 33k sf two-story
building
adjacent
to
existing
Phase
I
development.
Blink
signed
as
anchor
for
second
level.
Serramonte
Center
-
restaurant
outparcels,
entertainment
wing,
new
anchors
(e.g.,
Dick’s)
Westwood
Center
-
redevelop
“1950s”
neighborhood
center
to
capitalize
on
superior
demographics
Potrero
Center
-
further
densify
site
and
consider
multi-family
component
Consolidate poorly
utilized shop space for
junior and mid box
anchors
Kirkman
Shoppes
-
L.A.
Fitness
(41k
sf)
backfilling
poorly
configured
corner
space,
also
adding
new
free-standing 16k sf Walgreens outparcel
Pablo
Plaza
-
identified
30k
sf
of
shops
that
can
be
backfilled
with
junior
boxes
Replace
underperforming anchor
stores with stronger
operators
101
7th
Avenue
-
replacing
Loehmann’s
with
Barneys
New
York
Lake
Mary
Centre
(phase
II)
-
backfilling
Kmart
box
with
Academy
Sports
and
another
junior
anchor
Charlotte
Square
-
have
backfilled
local
furniture
operator
with
Wal-Mart
Neighborhood
Market
Expand successful
anchor tenants
Boynton
Plaza
-
building
Publix
a
new
54k
sf
store
Ambassador
Row
Courtyards
-
adding
Cost
Plus
World
Market
in
reconfigured
space
South
Beach
Regional
-
adding
Trader
Joe’s
to
backfill
poorly
configured
shop
space,
also
adding
Ulta
Countryside
Shops
-
build
new
Publix
and
backfill
existing
box
with
value-oriented
retail
/
restaurants
Add outparcels / expand
existing food users
Darinor
Plaza
-
adding
new
Starbucks
pad
Our upgraded portfolio of larger dominant assets contains a pipeline of attractive
redevelopment opportunities |
 Several Significant Re/Development Assets Will Help to Drive
Growth from In-Place Cash NOI to Future Cash NOI
20
Re/Development Asset
Market
2014E NOI
Future NOI
(1)
Estimated
Timing
Estimated
Cap Rate
(2)
The Gallery At Westbury Plaza
Long Island, NY
~ $12M
$14M +
2016
5.0%
Broadway Plaza
Bronx, NY
< $0.5M
$5M +
2016-2017
5.0%
Willows Shopping Center
Concord, CA
< $5M
$6M +
2016
5.0%
101
7
th
Avenue
New York, NY
$0M
~ $3.9M
2016-2017
4.0%
Boynton Plaza
Boynton Beach, FL
~ $1.1M
~ $2M
2016
5.5%
Lake Mary Centre
Lake Mary, FL
~ $2.8M
$4M +
2016
6.0%
Kirkman Shoppes
Orlando, FL
~ $1.1M
~ $2.4M
2016
6.5%
Boca Village Square
Boca Raton, FL
~ $1.2M
~ $2M
2016
5.0%
(1) Estimated future NOI represents annual run rate upon stabilization of
anchor rents and, if applicable, other expected center lease-up.
(2) Estimated
capitalization
rate
for
similar
quality
assets
in
similar
markets
in
today’s
transaction
environment. |
 The
Gallery at Westbury Plaza Garden City, NY
21
Location
Garden City, NY
GLA
312k sf
Development budget
(1)
$128.6M
Estimated cost to complete as of 9/30/2014
$4.9M
Lease-up and operating status
Opened Fall 2012. Project was substantially completed 4Q13 and was
94% leased as of 9/30/2014. Will enter the same property pool in 1Q15.
Key tenants
Saks Off Fifth, Bloomingdale’s, Nordstrom Rack, Old Navy, Trader Joe’s,
Ulta, Home Goods, GAP, Banana Republic, The Container Store, Shake
Shack, Starbucks, SA Elite, Verizon, Bank of America, Famous Footwear,
Charming Charlie, GNC, Lane Bryant, Noodles, Ruby & Jenna, Red Mango
Expected stabilized yield
~11%
(1)
Net estimated cost including estimate of tax refunds for eligible costs incurred as
part of participation in New York State’s Brownfield Cleanup Program. |
 The
Gallery at Westbury Plaza Garden City, NY (Continued)
22 |
 Broadway Plaza Development Bronx, New York
23 |
 Broadway Plaza Development Bronx, New York (Continued) 24
(1) Includes land cost.
Location
Bronx, NY
GLA
148k sf total project GLA, with Phase I comprising 115k sf
and Phase II comprising an additional 33k sf on corner of
Broadway and West 230th.
Development budget
$66.5M
Incurred as of 9/30/2014
(1)
$52.2M
Estimated cost to complete
$14.3M
Phase I
All four anchors including The Sports Authority (30k sf), TJ
Maxx (24k sf), Aldi (18k sf), and Party City (10k sf),
representing 72% of GLA, opened for business. Recently
signed lease with Five Below (9k sf), and in discussions
on remaining space.
Lease-up -
Phase II
Leases signed with Blink Fitness (16k sf) for the entire
second level, and Starbucks (1.4k sf) on the ground floor.
Phase II is under construction and is expected to begin
opening in stages in 3Q15.
Target NOI stabilization
1Q16
Expected stabilized yield
8% -
9% |
 Broadway Plaza Development Bronx, New York (Continued) 25
Broadway View |
 Broadway Plaza Development Bronx, New York (Continued) 26 |
 Serramonte Shopping Center Daly City, California
27
Expansion
(1)
The budget was increased by $2M from the original budget due to the tenant’s
request for modifications to the space in exchange for increased rent.
Dick’s redevelopment
•
The new Dick’s Sporting Goods was completed
within budget and turned over to the tenant, and
a successful grand opening occurred in April
•
Dick’s is the mall’s fourth anchor, joining Target,
JC Penney, and Macy’s
•
Phase I of a multi-year, multi-phase plan to re-
brand and expand the property
Dick’s GLA
84k sf
Dick’s budget / incurred
(1)
$19M
Dick’s expected stabilized yield
~10%
Expected to enter SS NOI pool in 3Q15
Future redevelopment
•
Future phases at Serramonte may add 100k to
200k sf of additional GLA including a grocery
store, pharmacy, discounters, a theater, more
restaurants, and entertainment |
 Serramonte Shopping Center Daly City, California
(Continued) 28
Expansion Projects |
 Potrero Shopping Center San Francisco, California
29
Background
Future redevelopment goals
•
Densify the site with additional retail and
potentially residential units
•
200 Potrero Avenue, an adjacent 30k sf
building acquired in 4Q12 for $6M, provides
additional flexibility to relocate tenants and
improve Potrero Center over time
•
Potrero Shopping Center was acquired in
March 2012 for $111M |
 Westwood Shopping Center Bethesda, Maryland
30
Description
•
22 acre property in Bethesda, Maryland comprised of
seven parcels, including 214k sf of retail space and
252k sf of residential space
•
Superior demographics with 3 mile population of
140k and average household income of $200k+
•
Closed on final two parcels in January 2014, bringing
total investment in property to $140M
Opportunity
•
Redevelop “1950s”
shopping center in heart of highly
affluent D.C. suburb, including upgrading tenant mix
•
Significant below market lease with anchor Giant
Food expiring 2019 with no options
•
Re-zoning process has commenced |
 Westwood Shopping Center Bethesda, Maryland (Continued) 31 |
 Willows Shopping Center Redevelopment
Concord, CA
32
Redevelopment Plan
Challenges
Too many interior facing shop spaces
Poor traffic patterns limiting shopping in
the rear of the center
Insufficient gathering spaces and
amenities to take advantage of the
center’s longstanding connection to the
community
Architectural design is unconventional
and outdated
Create new access road to improve
circulation and visibility for shop
tenants
New architectural design to improve
roof lines, refresh color scheme and
use modern materials
Create a community plaza with play
areas and green space well suited to
host events and drive ancillary income
Prior Site Plan |
 Willows Shopping Center Redevelopment
Concord, CA (Continued)
33
Proposed Site Plan
Location
Concord, CA
GLA total center
252k sf
GLA redevelopment
49k sf (19%)
Redevelopment budget / to be incurred
$13.5M / $5.8M
Project
•
~$1M has been invested to replace a 12k sf dated restaurant building with a
popular new concept, Lazy Dog, occupying 9k sf
•
An additional $12M will be invested to construct 20k sf of new buildings for a new
Ulta junior anchor, an expanded UFC Gym, and new shop space; renovate
facades on 20k sf of challenging shop space; and construct two new
vehicular roads and an open pedestrian area
•
New 10k sf Ulta and 5k sf UFC expansion recently opened
•
Interior courtyard reconfiguration and road started in 2Q14, expected to complete
early 2015 Target stabilization date
3Q 2015
Expected stabilized yield
~8% |
 101
7th Avenue New York, New York 34
Background
•
57k sf
four-story retail condominium acquired 2Q11
with Loehmann’s
as sole tenant
•
Lease expiration date was March 2016
•
$25 psf, $1.4M per year, well below market
•
Loehmann’s
filed bankruptcy 4Q13
Barneys New York
•
Executed lease in 4Q13 with Barneys
•
Barneys returns “home”
to location of original
flagship store in Manhattan
•
Barneys plans to invest significant capital to
redevelop store
•
New rent of $4.5M per year commencing by 2Q16,
221% spread
•
20-year term with option increases
Total Redevelopment Budget
$12.5M |
 Florida Redevelopment Opportunities
35
Lake Mary Centre, Lake Mary, FL
Boynton Plaza, Boynton Beach, FL
Budget
(1)
$7.6M
Incurred as of 9/30/2014
$4.4M
Target stabilization
(2)
2Q15
Description
•
Publix expansion
•
54k sf project GLA, 107k sf
property GLA
Budget
$12.5M
Incurred as of 9/30/2014
$5.6M
Target stabilization
(2)(3)
2Q15
Description
•
The Fresh Market and Ross
opened for business 2Q14 in the
former Albertson’s space
•
Signed 63k sf lease with Academy
Sports for majority of former Kmart
space, expected to be delivered in
1Q15
(1)
Net estimated project cost.
(2)
Date that construction is expected to be complete and the anchor(s) commence
rent. (3)
The first phase comprised of The Fresh Market and Ross was stabilized in 2Q14, and
the second phase comprised of Academy Sports is expected to stabilize in 2Q15. |
 Florida Redevelopment Opportunities
(Continued) 36
Kirkman Shoppes, Orlando, FL
Budget
$13.1M
Incurred as of 9/30/2014
$6.8M
Target stabilization
(1)
3Q15
Description
•
Anchor re-tenanting with 41k sf
L.A. Fitness under construction,
expected to open 1Q15 and
commence rent 3Q15
•
16k sf free-standing Walgreens with
construction well underway and the
store is expected to open 1Q15
(1)
Date that construction is expected to be complete and the anchor(s) commence
rent. |
 Florida Redevelopment Opportunities
(Continued) 37
Boca Village Square, Boca Raton, FL
Budget
(1)
$10.9M
Incurred as of 9/30/2014
$9.1M
Target stabilization
(2)
3Q14
Description
•
Redevelopment of CVS Pharmacy
adding a drive-thru
•
Eliminating interior courtyard space
and enhancing shop visibility
•
42k sf project GLA, 92k sf property
GLA
•
Property is pending twelve month
stabilization and is expected to
enter the SS NOI pool in 4Q15
(1)
Net estimated project cost.
(2)
Date that construction is expected to be complete and the anchor(s) commence
rent. |
 4Q
2013 Acquisition: Pleasanton Plaza Pleasanton, CA
38
Acquisition Date
October 2013
Price
$30.9M
Debt Assumed
$20.0M due
6/2015
Total GLA
163k
Leased Rate at 9/30/2014
95%
3 Mile Avg. Income
>$120k
Asset Strategy
•
Anchors significantly below market
•
Expansion and redevelopment opportunities
•
Potential to add one or more outparcels
•
Upgrade facade, parking lot, and add amenities and restaurants
|
 4Q
2013 Acquisition: The Village Center Westport, CT
39
Acquisition Date
October 2013
Price
$54.3M
Debt Assumed
$15.7M due
6/2019
Total GLA
89k
Leased Rate at 9/30/2014
86%
3 Mile Avg. Income
>$220k
Asset Strategy
•
Forcing vacancy of selected shop
spaces in preparation for an upscale
redevelopment that will entail a
complete remerchandising with
improvement to tenant mix and
upgraded retailer quality
•
Create new shopping destination in
Westport with own identity and brand
on self contained 7 ½
acre site
•
Offer “main-street”
quality shopping
experience, but with greater
convenience for consumers |
 Appendix
•
Summary of Pro Forma Portfolio Metrics
40 |
 9/30/14
Occupancy In-Place Debt (9/30/14)
No. of
Centers
3Q14 Fair
Value ($000)
Value per
Property
($000)
GLA
Total
Anchor
Shop
Base
Rent PSF
Avg 3-mi
Population
Avg 3-mi
HH Income
Grocer
Sales
PSF
Balance
($000)
Interest
Rate
Years to
Maturity
CONSOLIDATED PORTFOLIO
Florida
South Florida
33
973,607
$
29,503
$
4,331,675
94.1%
99.6%
85.4%
16.02
$
133,146
77,481
$
626
$
95,326
$
6.33%
4.9
Jacksonville
7
130,067
$
18,581
$
929,403
91.0%
100.0%
72.7%
12.63
$
42,854
87,826
$
336
$
-
$
-
-
Orlando
7
118,619
$
16,946
$
926,265
85.4%
95.3%
74.3%
13.81
$
78,356
77,913
$
207
$
-
$
-
-
Tampa
4
86,325
$
21,581
$
454,761
87.3%
100.0%
70.4%
17.29
$
45,514
96,273
$
519
$
15,595
$
5.75%
1.7
Sun Coast
6
68,400
$
11,400
$
426,891
92.1%
100.0%
79.8%
12.43
$
40,357
65,077
$
756
$
4,378
$
6.50%
9.4
Florida Total
57
1,377,018
$
24,158
$
7,068,995
92.0%
99.2%
80.9%
15.17
$
109,795
79,057
$
609
$
115,299
$
6.26%
4.7
California
San Francisco
6
680,946
$
113,491
$
1,790,587
97.1%
100.0%
90.8%
22.86
$
214,319
98,936
$
800
$
73,713
$
5.74%
1.7
Los Angeles
5
214,467
$
42,893
$
593,939
98.1%
100.0%
95.0%
22.38
$
240,280
95,327
$
513
$
85,138
$
5.46%
4.5
California Total
11
895,413
$
81,401
$
2,384,526
97.3%
100.0%
92.1%
22.74
$
220,537
98,071
$
619
$
158,850
$
5.59%
3.2
New York
8
698,322
$
87,290
$
1,092,227
97.8%
100.0%
85.3%
39.05
$
570,823
107,919
$
1,550
$
22,877
$
6.52%
2.5
Connecticut
8
330,067
$
41,258
$
983,845
96.4%
98.5%
92.1%
20.27
$
37,399
154,164
$
912
$
95,972
$
5.72%
3.7
Georgia
9
200,871
$
22,319
$
983,592
93.3%
100.0%
82.8%
15.83
$
99,107
114,596
$
536
$
6,937
$
7.94%
6.6
Maryland
1
142,131
$
142,131
$
466,173
97.0%
100.0%
86.2%
19.35
$
142,569
216,130
$
832
$
-
$
-
-
Massachusetts
7
135,230
$
19,319
$
602,929
98.1%
100.0%
84.3%
18.71
$
187,219
91,408
$
348
$
6,654
$
8.07%
9.9
Louisiana
7
74,098
$
10,585
$
883,066
93.9%
93.3%
95.1%
9.90
$
65,310
82,217
$
218
$
-
$
-
-
North Carolina
3
23,200
$
7,733
$
436,511
95.1%
100.0%
80.9%
6.71
$
28,591
52,509
$
367
$
-
$
-
-
Pro Forma Consolidated Portfolio
111
3,876,349
$
34,922
$
14,901,864
94.2%
99.1%
84.6%
18.26
$
214,278
102,244
$
626
$
406,589
$
5.94%
3.9
(1) Fair value of Broadway Plaza is based on the budgeted construction cost, as it is currently in
development. (2) New York occupancy rates exclude Broadway Plaza (in development).
(3) Pro forma for dispositions completed and under contract as of 10/29/2014. Includes
development and redevelopment properties. Excludes
land, non-retail assets (with exception of Westwood in Bethesda, MD), and unconsolidated JV properties. Maryland base rent is retail only.
Summary of Pro Forma Portfolio Metrics
41
(1)
(2)
(3) |
 Certain matters discussed by Equity One in this presentation constitute
forward-looking statements within the meaning of the federal securities
laws. Forward-looking statements can be identified by the use of forward-looking terminology such as
“may,”
“will,”
“might,”
“would,”
“expect,”
“anticipate,”
“estimate,”
“could,”
“should,”
“believe,”
“intend,”
“project,”
“forecast,”
“target,”
“plan,”
or “continue”
or the negative of these words or other variations or comparable terminology.
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 and actual results could differ materially from current
expectations. Factors that could cause actual results to differ
from expectations 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. Forward-Looking
Statements 42 |
 |