UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): October 29, 2014
EXCEL TRUST, INC.
(Exact Name of Registrant as Specified in its Charter)
Maryland | 001-34698 | 27-1493212 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File No.) |
(I.R.S. Employer Identification No.) |
Excel Centre
17140 Bernardo Center Drive, Suite 300
San Diego, California 92128
(Address of Principal Executive Offices, Including Zip Code)
(858) 613-1800
(Registrants Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On October 29, 2014 Excel Trust, Inc. (the Company) issued a press release regarding its financial results for the period ended September 30, 2014. Copies of the press release as well as supplemental information are available on the Companys website at www.exceltrust.com, are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.
The information contained in this Current Report, including the exhibits referenced herein, is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of the Companys, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) | The following exhibits are filed herewith: |
Exhibit |
Description of Exhibit | |
99.1 | Press release issued by Excel Trust, Inc. on October 29, 2014. | |
99.2 | Excel Trust, Inc. Supplemental Operating and Financial Data for the period ended September 30 2014 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 29, 2014 | Excel Trust, Inc. | |||||||
By: | /s/ James Y. Nakagawa | |||||||
James Y. Nakagawa | ||||||||
Chief Financial Officer |
Exhibit 99.1
Excel Trust Announces Results For the Quarter Ended September 30, 2014, Declares Dividend
SAN DIEGO October 29, 2014--Excel Trust, Inc. (the Company) announced today financial and operating results for the quarter ended September 30, 2014. A supplemental financial package with additional information can be found on Excel Trusts website under the Investor Relations tab.
Highlights for the Third Quarter 2014
| Reported Adjusted Funds from Operations (AFFO) for the quarter of approximately $12.1 million, or $0.19 per diluted share |
| Reported Funds from Operations (FFO) for the quarter of approximately $8.5 million or $0.14 per diluted share |
| Retired 669,025 shares of Series A convertible preferred stock (resulted in a one-time $1.5 million reduction to FFO; reduced annual preferred dividend payments by an estimated $1.2 million) |
| Declared a fourth quarter 2014 dividend of $0.175 per share of common stock, which equates to an annualized dividend rate of $0.70 per share |
| Acquired Utah portfolio for approximately $148 million (net) |
| In advanced negotiations on ~$150 million in properties targeted for disposition |
Highlights Subsequent to Quarter Close
| Acquired ~340,000 square foot shopping center in Florida |
| Disposed of La Costa Towne Center (JV) in San Diego, CA for approximately $31.6 million |
| Disposed of Lowes in Shippensburg, PA for approximately $24.4 million |
We continue to make progress on the objectives we outlined at the beginning of the year, stated Gary Sabin, Chairman and CEO. We upgraded our portfolio by acquiring well located, dominant shopping centers in Utah and Florida. We improved our balance sheet and our future earnings potential by retiring a portion of our convertible preferred shares. We exited our joint-venture project in San Diego for a profit and moved forward in marketing our dispositions. We believe these activities further enhance our company as we strive to create long-term value for our shareholders.
Financial Results
Excel Trust reported Adjusted Funds From Operations (AFFO) for the third quarter of 2014 of $12.1 million, or $0.19 per diluted share and Funds From Operations (FFO) for the third quarter of $8.5 million or $0.14 per diluted share. Net loss attributable to the common stockholders for the third quarter was $2.8 million, or $0.05 per diluted share. This compares to AFFO of $11.7 million, or $0.24 per diluted share, FFO of $11.0 million or $0.22 per diluted share and net income attributable to the common stockholders of $10.7 million, or $0.22 per diluted share in the three-month period ended September 30, 2013.
Excel Trust reported AFFO for the nine months ended September 30, 2014 of $35.9 million or $0.67 per diluted share and FFO of $30.6 million or $0.57 per diluted share. Net loss attributable to the common stockholders for the nine months ended September 30, 2014 was $4.2 million or $0.09 per diluted share. This compares to AFFO of $32.4 million, or $0.67 per diluted share, FFO of $33.4 million or $0.69 per diluted share and a net gain attributable to the common stockholders of $8.9 million or $0.18 per diluted share in the nine month period ended September 30, 2013.
Deducted from FFO for the quarter ended September 30, 2014 was a one-time charge of approximately $1.5 million related to the Companys retirement of convertible preferred shares. Also deducted from FFO were transaction costs related to acquisitions which totaled approximately $820,000 for the quarter. For the nine months ended September 30, 2014 transaction costs totaled approximately $1,297,000.
Excel Trust considers AFFO and FFO important supplemental measures of its operating performance and believes that they are frequently used by securities analysts, investors and other interested parties in the evaluation of real estate investment trusts (REITs), many of which present AFFO and FFO when reporting their results. A complete reconciliation containing adjustments from GAAP net income available to the common shareholders to AFFO and FFO and a definition of both are included at the end of this release.
Operating Results
At the end of the third quarter 2014, the retail portfolio was 93.8% leased compared to 94.0% in the second quarter 2014. Anchor space was 98.8% leased compared to 99.1% in the second quarter 2014 and inline space was 83.9% leased compared to 84.5% in the second quarter 2014.
During the third quarter 2014, the Company signed 36 retail leases and renewals, totaling 178,752 square feet. The average releasing spread on comparable new leases was 5.9%.
Same Property Net Operating Income increased 3.0% over the same quarter of the prior year.
Summary of Significant Activities During Third Quarter 2014
On September 26, 2014, the Company acquired three shopping centers in the Salt Lake City area for approximately $223 million. Properties included in the transaction were, The Family Center at Fort Union, The Family Center at Orem and The Family Center at Taylorsville. As a part of the transaction, Excel Trust assigned purchase rights for The Family Center at Taylorsville to a third party for approximately $75 million, leaving the Company with approximately $148 million in net acquisitions, and 839,216 square feet of GLA. Major tenants include, Walmart, Smiths Food (Kroger), Ross Dress for Less, Dicks Sporting Goods, Bed Bath & Beyond, Gordmans, Ulta, DSW, Office Max, Dollar Tree, etc.
During the quarter, the Company repurchased 669,025 shares of Series A preferred stock. The repurchased shares of Series A preferred stock were subsequently retired resulting in a one-time charge of approximately $1.5 million.
Significant Activities Subsequent to Third Quarter 2014
On October 1, 2014, the Company acquired Downtown at the Gardens, a 339,669 square foot shopping center in Palm Beach Gardens, FL. Major tenants include Whole Foods, Cheesecake Factory, Cobb Theaters, Urban Outfitters, and Golfsmith. Average household income in a 3 mile radius is estimated to be $107,654 (source: AGS 2014).
On October 9, 2014, the Company completed the disposition of the La Costa Towne Center (joint-venture asset) for approximately $31.6 million, excluding closing costs.
On October 16, 2014, the Company repurchased 150,000 shares of Series A preferred stock.
On October 23, 2014, the Company completed the disposition of its freestanding Lowes property located in Shippensburg, PA for approximately $24.4 million, excluding closing costs.
Fourth Quarter 2014 Dividends Declared
The Board of Directors declared a fourth quarter cash dividend of $0.175 per common share payable on January 15, 2015 to shareholders of record as of December 31, 2014.
The Board of Directors has also declared a dividend of $0.4375 per share on the Companys Series A Cumulative Convertible Perpetual Preferred Shares, and a dividend of $0.5078 on its Series B Cumulative Redeemable Preferred Shares. The dividend on Excel Trusts outstanding Series A and Series B Preferred Shares will be payable on January 15, 2015 to shareholders of record as of December 31, 2014.
Revised 2014 Guidance
Excel Trust is revising its previously announced guidance primarily to account for charges related to the retirement of Series A convertible preferred stock and transaction fees related to the Florida acquisition. The Company expects its AFFO per share for fiscal year 2014 to be between $0.90 and $0.95 and its FFO per share to be between $0.76 and $0.81. The Company will further discuss assumptions surrounding guidance tomorrow on the conference call.
Conference Call
In conjunction with Excel Trusts results, you are invited to listen to its conference call on Thursday, October 30, 2014 at 1:00 p.m. Eastern Time.
PHONE: Conference call access information is as follows:
Dial in number: (800) 299-8538
International Dial in number: (617) 786-2902
Pass code: 34697712
INTERNET: A live webcast of the conference call will be available through Excel Trusts web site at www.exceltrust.com.
REPLAY: A replay of the conference call will be made available through Excel Trusts web site at www.exceltrust.com. A replay will also be available by phone for three days beginning at 4:00 p.m. ET on October 30, 2014. Replay access information is as follows:
Dial in number: (888) 286-8010
International Dial in number: (617) 801-6888
Pass code: 30082346
About Excel Trust
Excel Trust, Inc. is a retail focused REIT that primarily targets community and power centers, grocery anchored neighborhood centers and freestanding retail properties. The Company has elected to be treated as a REIT, for U.S. federal income tax purposes. Excel Trust trades publicly on the NYSE under the symbol EXL. For more information on Excel Trust, Inc., please visit www.exceltrust.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, without limitation: general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants financial condition, and competition from other developers, owners and operators of real estate); adverse economic or real estate developments in the retail industry or the markets in which the Company operates; increased interest rates and operating costs; decreased rental rates or increased vacancy rates; the Companys failure to obtain necessary outside financing on favorable terms or at all; changes in the availability of additional acquisition opportunities; the Companys inability to successfully complete real estate acquisitions or successfully operate acquired properties; the Companys failure to qualify or maintain its status as a REIT; risks associated with the Companys dependence on key personnel whose continued service is not guaranteed; and risks associated with downturns in domestic and local economies, and volatility in the securities markets. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission, including the Companys most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)
Excel Trust considers FFO and AFFO to be important supplemental measures of its operating performance and believes they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO and AFFO when reporting their results. FFO and AFFO are intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate
assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO and AFFO exclude depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, they provide a performance measure that, when compared year-over-year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income.
Excel Trust computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT. As defined by NAREIT, FFO represents net income (loss) (computed in accordance with generally accepted accounting principles, or GAAP), excluding real estate-related depreciation and amortization, impairment charges and net gains (losses) on the disposition of assets and after adjustments for unconsolidated partnerships and joint ventures. Excel Trust computes AFFO by adding to FFO the non-cash compensation expense, amortization of prepaid financing costs and non-recurring transaction costs, and other one-time items, then subtracting or adding straight-line rents, amortization of above and below market leases and non-incremental capital expenditures. Excel Trusts computation of FFO and AFFO may differ from the methodology for calculating FFO and AFFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO and AFFO do not represent amounts available for managements discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties.
FFO and AFFO should not be considered alternatives to net income (loss) (computed in accordance with GAAP) as an indicator of Excel Trusts financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of Excel Trusts liquidity, nor are they indicative of funds available to fund Excel Trusts cash needs, including Excel Trusts ability to pay dividends or make distributions.
Summarized Financial Statements
Reported results are preliminary and not final until the filing of Excel Trusts Form 10-Q or 10-K with the Securities and Exchange Commission and, therefore, remain subject to adjustment. The accompanying notes to follow in the Form 10-Q or 10-K are an integral part of these consolidated financial statements.
Balance Sheets
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30, 2014 | December 31, 2013 | |||||||||
ASSETS: |
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Property: |
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Land |
$ | 409,013 | $ | 380,366 | ||||||
Buildings |
754,860 | 642,356 | ||||||||
Site improvements |
69,137 | 63,242 | ||||||||
Tenant improvements |
62,454 | 54,025 | ||||||||
Construction in progress |
26,697 | 7,576 | ||||||||
Less accumulated depreciation |
(83,008) | (61,479) | ||||||||
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Property, net |
1,239,153 | 1,086,086 | ||||||||
Cash and cash equivalents |
6,143 | 3,245 | ||||||||
Restricted cash |
7,707 | 8,147 | ||||||||
Tenant receivables, net |
4,404 | 5,117 | ||||||||
Lease intangibles, net |
81,796 | 78,345 | ||||||||
Deferred rent receivable |
10,824 | 9,226 | ||||||||
Other assets (1) |
36,022 | 20,135 | ||||||||
Real estate held for sale, net of accumulated amortization |
- | - | ||||||||
Investment in unconsolidated entities |
8,378 | 8,520 | ||||||||
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Total assets |
$ | 1,394,427 | $ | 1,218,821 | ||||||
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LIABILITIES AND EQUITY: |
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Liabilities: |
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Mortgages payable, net |
$ | 160,837 | $ | 251,191 | ||||||
Notes payable |
56,000 | 179,500 | ||||||||
Unsecured notes |
348,725 | 100,000 | ||||||||
Accounts payable and other liabilities |
40,821 | 21,700 | ||||||||
Lease intangibles, net |
36,260 | 28,114 | ||||||||
Dividends/distributions payable |
12,918 | 10,932 | ||||||||
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Total liabilities |
655,561 | 591,437 | ||||||||
Equity: |
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Total stockholders equity |
727,094 | 615,446 | ||||||||
Non-controlling interests |
11,772 | 11,938 | ||||||||
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Total equity |
738,866 | 627,384 | ||||||||
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Total liabilities and equity |
$ | 1,394,427 | $ | 1,218,821 | ||||||
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(1) Other assets is primarily comprised of deposits, notes receivable, prepaid expenses and furniture, fixtures, and equipment
Statements of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data and dividends per share)
Three Months Ended September 30, 2014 |
Three Months Ended September 30, 2013 |
Nine Months Ended September 30, 2014 |
Nine Months Ended September 30, 2013 |
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Revenues: |
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Rental revenue |
$ | 24,750 | $ | 23,556 | $ | 74,836 | $ | 67,685 | ||||||||
Tenant recoveries |
5,057 | 5,022 | 15,168 | 14,099 | ||||||||||||
Other income |
427 | 353 | 1,457 | 954 | ||||||||||||
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Total revenues |
30,234 | 28,931 | 91,461 | 82,738 | ||||||||||||
Expenses: |
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Maintenance and repairs |
2,030 | 1,821 | 6,439 | 5,239 | ||||||||||||
Real estate taxes |
3,148 | 3,354 | 9,443 | 9,312 | ||||||||||||
Management fees |
496 | 698 | 1,533 | 1,331 | ||||||||||||
Other operating expenses |
1,632 | 1,845 | 4,978 | 4,707 | ||||||||||||
Changes in fair value of contingent consideration |
- | (10) | - | (1,568) | ||||||||||||
General and administrative |
4,289 | 3,399 | 12,263 | 10,536 | ||||||||||||
Depreciation and amortization |
11,212 | 11,637 | 34,419 | 34,613 | ||||||||||||
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Total expenses |
22,807 | 22,744 | 69,075 | 64,170 | ||||||||||||
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Net operating income |
7,427 | 6,187 | 22,386 | 18,568 | ||||||||||||
Interest expense |
(6,387) | (4,728) | (17,357) | (13,751) | ||||||||||||
Interest income |
103 | 49 | 206 | 146 | ||||||||||||
Income (loss) from equity in unconsolidated entities |
75 | 12 | 240 | (13) | ||||||||||||
Gain on acquisition of real estate and sale of land parcel |
- | - | - | - | ||||||||||||
Changes in fair value of financial instruments and gain on OP unit redemption |
- | - | - | 230 | ||||||||||||
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Net income (loss) from continuing operations |
1,218 | 1,520 | 5,475 | 5,180 | ||||||||||||
Income from discontinued operations before gain on sale of real estate assets |
- | 345 | - | 481 | ||||||||||||
Gain on sale of real estate assets |
- | 11,974 | - | 11,974 | ||||||||||||
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Income from discontinued operations |
- | 12,319 | - | 12,455 | ||||||||||||
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Net income (loss) |
1,218 | 13,839 | 5,475 | 17,635 | ||||||||||||
Net (income) loss attributable to non-controlling interests |
(70) | (356) | (227) | (489) | ||||||||||||
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Net income (loss) attributable to Excel Trust, Inc. |
1,148 | 13,483 | 5,248 | 17,146 | ||||||||||||
Preferred stock dividends |
(2,501) | (2,744) | (7,989) | (8,232) | ||||||||||||
Cost of redemption of preferred stock |
(1,477) | - | (1,477) | - | ||||||||||||
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Net income (loss) attributable to the common stockholders |
$ | (2,830) | $ | 10,739 | $ | (4,218) | $ | 8,914 | ||||||||
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Basic and diluted net income (loss) per share |
$ | (0.05) | $ | 0.22 | $ | (0.09) | $ | 0.18 | ||||||||
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Weighted-average common shares outstanding - basic and diluted |
60,389 | 47,497 | 52,293 | 46,674 | ||||||||||||
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The notes in the Form 10-Q or 10-K are an integral part of these condensed consolidated financial statements.
Reconciliation of Net Income to FFO and AFFO
For the Period Ended September 30, 2014
(In thousands, except per share data)
Excel Trust, Inc.s FFO and AFFO available to common stockholders and operating partnership unitholders and a reconciliation to net income(loss) for the three and nine months ended September 30, 2014 and 2013 is as follows:
Three Months Ended September 30, 2014 |
Three Months Ended September 30, 2013 |
Nine Months Ended September 30, 2014 |
Nine Months Ended September 30, 2013 |
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Net income (loss) attributable to the common stockholders |
$ | (2,830) | $ | 10,739 | $ | (4,218) | $ | 8,914 | ||||||||||
Add: |
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Non-controlling interests in operating partnership |
(21) | 279 | (47) | 240 | ||||||||||||||
Depreciation and amortization (1) |
11,212 | 11,766 | 34,419 | 35,306 | ||||||||||||||
Deduct: |
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Depreciation and amortization related to joint venture (2) |
137 | 214 | 463 | 879 | ||||||||||||||
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Funds from operations (3) |
$ | 8,498 | $ | 11,024 | $ | 30,617 | $ | 33,365 | ||||||||||
Adjustments: |
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Transaction costs |
820 | 600 | 1,297 | 1,046 | ||||||||||||||
Deferred financing costs |
457 | 387 | 1,380 | 1,300 | ||||||||||||||
Stock-based and other non-cash compensation expense |
1,153 | 583 | 3,117 | 1,713 | ||||||||||||||
Changes in fair value of contingent consideration |
- | (10) | - | (1,568) | ||||||||||||||
Changes in fair value of financial instruments |
- | - | - | (230) | ||||||||||||||
Straight-line effects of lease revenue |
(482) | (664) | (1,599) | (2,588) | ||||||||||||||
Amortization of above- and below-market leases |
225 | (14) | (136) | 204 | ||||||||||||||
Cost of redemption of preferred stock |
1,477 | - | 1,477 | - | ||||||||||||||
Non-incremental capital expenditures |
(51) | (227) | (230) | (577) | ||||||||||||||
Non-cash expenses (income) related to joint venture |
1 | 6 | (16) | (275) | ||||||||||||||
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Adjusted funds from operations (3) |
$ | 12,098 | $ | 11,685 | $ | 35,907 | $ | 32,390 | ||||||||||
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Weighted average common shares outstanding |
60,389 | 47,497 | 52,293 | 46,674 | ||||||||||||||
Add (4): |
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OP units |
1,020 | 1,225 | 1,020 | 1,230 | ||||||||||||||
Restricted stock |
- | 172 | - | 206 | ||||||||||||||
Contingent consideration related to business combinations |
- | - | - | |||||||||||||||
LTIP restricted stock |
- | - | - | - | ||||||||||||||
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Weighted average common shares outstanding - diluted (FFO and AFFO) |
61,409 | 48,894 | 53,313 | 48,110 | ||||||||||||||
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Funds from operations per share (diluted) (5) |
$ | 0.14 | $ | 0.22 | $ | 0.57 | $ | 0.69 | ||||||||||
Adjusted funds from operations per share (diluted) (5) |
$ | 0.19 | $ | 0.24 | $ | 0.67 | $ | 0.67 | ||||||||||
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Other Information (6): |
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Leasing commissions paid |
$ | 231 | $ | 396 | $ | 719 | $ | 1,366 | ||||||||||
Tenant improvements paid |
$ | 457 | $ | 3,391 | $ | 2,485 | $ | 6,483 |
(1) | Total consolidated depreciation and amortization, a portion of which is included in discontinued operations on the statements of operations (for the three and nine months ended September 30, 2013). |
(2) | Includes a reduction for the portion of consolidated depreciation and amortization expense that would be allocable to non-controlling interests in the operating partnership and an increase for the the Companys portion of depreciation and amortization expense related to its investment in the unconsolidated La Costa Town Center and The Fountains at Bay Hill properties. |
(3) | FFO and AFFO are described on the Definitions page. |
(4) | The calculation of FFO for the three months ended September 30, 2014 and 2013 include 1,020,000 and 1,397,000 OP units and shares of restricted stock, which are considered antidilutive for purposes of calculating diluted earnings per share. The three months ended September 30, 2014 and 2013 exclude 3,173,142 and 3,356,178 shares of common stock, respectively, potentially issuable pursuant to the conversion feature of the preferred stock based on the if converted method. The calculation of FFO for the nine months ended September 30, 2014 and 2013 include 1,020,000 and 1,436,000 OP units and shares of restricted stock, which are considered antidilutive for purposes of calculating diluted earnings per share. The nine months ended September 30, 2014 and 2013 exclude 3,301,803 and 3,341,076 shares of common stock, respectively, potentially issuable pursuant to the conversion feature of the preferred stock based on the if converted method. |
(5) | The calculation of funds from operations per share (diluted) and adjusted funds from operations per share (diluted) for the three months ended September 30, 2014 and 2013 includes a reduction of $124,000 and $143,000, respectively, for dividends paid to shares of restricted common stock in excess of earnings. The calculation of funds from operations per share (diluted) and adjusted funds from operations per share (diluted) for the nine months ended September 30, 2014 and 2013 includes a reduction of $373,000 and $326,000, respectively, for dividends paid to shares of restricted common stock in excess of earnings. |
(6) | Excludes development properties and shell construction costs for value-add opportunities at operating properties. |
Exhibit 99.2
Supplemental Operating and Financial Data
For the Period Ended September 30, 2014
Table of Contents
Page | ||
Company Overview |
3 | |
Property Locations |
4 | |
Analyst Coverage |
5 | |
Summary Financial and Portfolio Data |
6 | |
Financial Summary |
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Consolidated Balance Sheets |
7 | |
Consolidated Statements of Operations |
8 | |
Reconciliation of Net Income to EBITDA |
9 | |
Reconciliation of Net Income to FFO and AFFO |
10 | |
Debt Summary |
11 | |
Common and Preferred Stock Data |
12 | |
Portfolio Summary |
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Acquisitions & Developments |
13 | |
Operating Portfolio Summary |
14 | |
Summary of Retail Leasing Activity |
15 | |
Same Property Analysis |
16 | |
Major Tenants |
17 | |
Expiration Schedule |
18 | |
Unconsolidated Investments |
19 | |
Definitions |
20 |
*Note: Financial and portfolio information reflects the consolidated operations of the
company and excludes unconsolidated entities unless otherwise noted.
Company Overview
Corporate Headquarters | Other Offices | |||||||
Excel Trust, Inc. | Atlanta, GA | Salt Lake City, UT | ||||||
17140 Bernardo Center Dr., Ste 300 | Dallas, TX | Scottsdale, AZ | ||||||
San Diego, CA 92128 | Orlando, FL | Stockton, CA | ||||||
Tel: 858-613-1800 | Richmond, VA | |||||||
Email: info@exceltrust.com | ||||||||
Website: www.exceltrust.com | ||||||||
Executives & Senior Management | ||||||||
Gary B. Sabin - Chairman & CEO | Spencer G. Plumb - President & COO | |||||||
James Y. Nakagawa - CFO, Treasurer | Mark T. Burton - CIO & SVP, Acquisitions | |||||||
S. Eric Ottesen - SVP, General Counsel | Matthew S. Romney - SVP, Capital Markets | |||||||
Board of Directors | ||||||||
Gary B. Sabin (Chairman) | Spencer G. Plumb | |||||||
Mark T. Burton | Bruce G. Blakley | |||||||
Burland B. East III | Robert E. Parsons, Jr. | |||||||
Warren R. Staley | ||||||||
Transfer Agent and Registrar | Corporate Counsel | |||||||
Broadridge Corporate Issuer Solutions, Inc. | Latham & Watkins | |||||||
PO Box 1342 | 12636 High Bluff Drive, Suite 400 | |||||||
Brentwood, NY 11717 | San Diego, CA 92130 | |||||||
Tel: 877-830-4936 | Tel: 858-523-5400 | |||||||
Email: shareholder@broadridge.com | ||||||||
Website: www.broadridge.com |
Reported results and other information herein are preliminary and not final until the filing of Excel Trusts report on Form 10-Q or Form 10-K with the Securities and Exchange Commission and, therefore, remain subject to adjustment.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, without limitation: general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants financial condition, and competition from other developers, owners and operators of real estate); adverse economic or real estate developments in the retail industry or the markets in which the Company operates; increased interest rates and operating costs; decreased rental rates or increased vacancy rates; the Companys failure to obtain necessary outside financing on favorable terms or at all; changes in the availability of additional acquisition opportunities; the Companys inability to successfully complete real estate acquisitions or successfully operate acquired properties; the Companys failure to qualify or maintain its status as a REIT; risks associated with the Companys dependence on key personnel whose continued service is not guaranteed; and risks associated with downturns in domestic and local economies, and volatility in the securities markets. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission, including the Companys most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Page 3
Property Locations
Page 4
Analyst Coverage
Company |
Analyst |
Contact | ||
Barclays Capital |
Ross Smotrich |
(212) 526-2306 | ||
Linda Tsai |
(212) 526-9937 | |||
Cantor Fitzgerald |
David Toti |
(212) 915-1219 | ||
Evan Smith |
(212) 915-1220 | |||
Hilliard Lyons |
Carol Kemple |
(502) 588-1839 | ||
KeyBanc |
Jordan Sadler |
(917) 368-2280 | ||
Todd Thomas |
(917) 368-2286 | |||
Raymond James |
Paul D. Puryear |
(727) 567-2253 | ||
R.J. Milligan |
(727) 567-2660 | |||
Sandler ONeill + Partners |
Alexander Goldfarb |
(212) 466-7937 | ||
Andrew Schaffer |
(212) 466-8062 | |||
Stifel, Nicolaus |
Nathan Isbee |
(443) 224-1346 | ||
Jennifer Hummert |
(443) 224-1288 | |||
Wells Fargo |
Jeff Donnelly |
(617) 603-4262 | ||
Tamara Fique |
(443) 263-6568 |
Page 5
Summary Financial and Portfolio Data (Consolidated)
For the Period Ended September 30, 2014 | ||||
(Dollars and share data in thousands, except per share data) |
||||
Portfolio Summary |
||||
Total Gross Leasable Square Feet (GLA)-Operating Portfolio (1) |
7,057,289 | |||
Percent Leased-Operating Portfolio |
93.4% | |||
Percent Occupied-Operating Portfolio |
92.5% | |||
Annualized Base Rent (2) |
$ | 102,030 | ||
Total no. retail leases signed or renewed |
36 | |||
Total sq. ft. retail leases signed or renewed |
178,752 | |||
Financial Results |
||||
Net income (loss) attributable to the common stockholders |
$ | (2,830) | ||
Net income (loss) per diluted share |
$ | (0.05) | ||
Funds from operations (FFO) |
$ | 8,498 | ||
FFO per diluted share |
$ | 0.14 | ||
Adjusted funds from operations (AFFO) |
$ | 12,098 | ||
AFFO per diluted share |
$ | 0.19 | ||
EBITDA |
$ | 18,817 | ||
Assets |
||||
Gross undepreciated real estate |
$ | 1,322,161 | ||
Gross undepreciated assets |
$ | 1,477,435 | ||
Total liabilities to gross undepreciated assets |
44.4% | |||
Debt to gross undepreciated assets |
38.3% | |||
Capitalization |
||||
Common shares outstanding |
61,116 | |||
OP units outstanding |
1,020 | |||
|
|
|||
Total common shares and OP units |
62,136 | |||
Closing price at quarter end |
$ | 11.77 | ||
Equity capitalization |
$ | 731,341 | ||
Series A convertible preferred shares (at liquidation preference of $25.00 per share) |
33,274 | |||
Series B preferred shares (at liquidation preference of $25.00 per share) |
92,000 | |||
Total debt (3) |
565,749 | |||
|
|
|||
Total capitalization |
$ | 1,422,364 | ||
|
|
|||
Debt/total capitalization |
39.8% | |||
Debt/EBITDA |
7.5 | |||
Common Stock Data |
||||
Range of closing prices for the quarter |
$ | 11.46-13.52 | ||
Weighted average common shares outstanding - diluted (EPS) |
60,389 | |||
Weighted average common shares outstanding - diluted (FFO and AFFO) |
61,409 | |||
Shares of common stock outstanding |
61,116 |
(1) | Includes retail and office gross leasable area, but excludes gross leasable area from developments under construction and any planned development. |
(2) | Annualized Base Rent excludes rental revenue from non-stabilized development properties. |
(3) | Excludes debt discount or premium. |
Page 6
Balance Sheets
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30, 2014 | June 30, 2014 | March 31, 2014 | December 31, 2013 | September 30, 2013 | ||||||||||||||||
ASSETS: |
||||||||||||||||||||
Property: |
||||||||||||||||||||
Land |
$ | 409,013 | $ | 380,363 | $ | 380,368 | $ | 380,366 | $ | 355,509 | ||||||||||
Buildings |
754,860 | 647,401 | 646,062 | 642,356 | 620,840 | |||||||||||||||
Site improvements |
69,137 | 64,769 | 64,283 | 63,242 | 60,459 | |||||||||||||||
Tenant improvements |
62,454 | 56,459 | 55,624 | 54,025 | 52,254 | |||||||||||||||
Construction in progress |
26,697 | 14,980 | 8,028 | 7,576 | 3,297 | |||||||||||||||
Less accumulated depreciation |
(83,008) | (75,834) | (68,635) | (61,479) | (54,409) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Property, net |
1,239,153 | 1,088,138 | 1,085,730 | 1,086,086 | 1,037,950 | |||||||||||||||
Cash and cash equivalents |
6,143 | 183,749 | 5,307 | 3,245 | 3,483 | |||||||||||||||
Restricted cash |
7,707 | 6,973 | 8,535 | 8,147 | 41,139 | |||||||||||||||
Tenant receivables, net |
4,404 | 3,205 | 3,746 | 5,117 | 3,500 | |||||||||||||||
Lease intangibles, net |
81,796 | 68,213 | 73,013 | 78,345 | 80,273 | |||||||||||||||
Deferred rent receivable |
10,824 | 10,342 | 9,819 | 9,226 | 8,462 | |||||||||||||||
Other assets (1) |
36,022 | 22,572 | 21,143 | 20,135 | 18,944 | |||||||||||||||
Real estate held for sale, net of accumulated amortization |
- | - | - | - | - | |||||||||||||||
Investment in unconsolidated entities |
8,378 | 8,303 | 8,405 | 8,520 | 8,371 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 1,394,427 | $ | 1,391,495 | $ | 1,215,698 | $ | 1,218,821 | $ | 1,202,122 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
LIABILITIES AND EQUITY: |
||||||||||||||||||||
Liabilities: |
||||||||||||||||||||
Mortgages payable, net |
$ | 160,837 | $ | 207,048 | $ | 238,543 | $ | 251,191 | $ | 308,365 | ||||||||||
Notes payable |
56,000 | - | 198,000 | 179,500 | 193,500 | |||||||||||||||
Unsecured notes |
348,725 | 348,693 | 100,000 | 100,000 | - | |||||||||||||||
Accounts payable and other liabilities |
40,821 | 29,110 | 23,964 | 21,700 | 25,893 | |||||||||||||||
Lease intangibles, net |
36,260 | 25,845 | 26,967 | 28,114 | 27,884 | |||||||||||||||
Dividends/distributions payable |
12,918 | 13,160 | 10,944 | 10,932 | 10,684 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
655,561 | 623,856 | 598,418 | 591,437 | 566,326 | |||||||||||||||
Equity: |
||||||||||||||||||||
Total stockholders equity |
727,094 | 755,611 | 605,665 | 615,446 | 621,562 | |||||||||||||||
Non-controlling interests |
11,772 | 12,028 | 11,615 | 11,938 | 14,234 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total equity |
738,866 | 767,639 | 617,280 | 627,384 | 635,796 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities and equity |
$ | 1,394,427 | $ | 1,391,495 | $ | 1,215,698 | $ | 1,218,821 | $ | 1,202,122 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) Other assets is primarily comprised of deposits, notes receivable, prepaid expenses and furniture, fixtures, and equipment
Page 7
Statements of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data and dividends per share)
Three Months Ended September 30, 2014 |
Three Months Ended September 30, 2013 |
Nine Months Ended September 30, 2014 |
Nine Months Ended September 30, 2013 |
|||||||||||||||||||
Revenues: |
||||||||||||||||||||||
Rental revenue |
$ | 24,750 | $ | 23,556 | $ | 74,836 | $ | 67,685 | ||||||||||||||
Tenant recoveries |
5,057 | 5,022 | 15,168 | 14,099 | ||||||||||||||||||
Other income |
427 | 353 | 1,457 | 954 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Total revenues |
30,234 | 28,931 | 91,461 | 82,738 | ||||||||||||||||||
Expenses: |
||||||||||||||||||||||
Maintenance and repairs |
2,030 | 1,821 | 6,439 | 5,239 | ||||||||||||||||||
Real estate taxes |
3,148 | 3,354 | 9,443 | 9,312 | ||||||||||||||||||
Management fees |
496 | 698 | 1,533 | 1,331 | ||||||||||||||||||
Other operating expenses |
1,632 | 1,845 | 4,978 | 4,707 | ||||||||||||||||||
Changes in fair value of contingent consideration |
- | (10) | - | (1,568) | ||||||||||||||||||
General and administrative |
4,289 | 3,399 | 12,263 | 10,536 | ||||||||||||||||||
Depreciation and amortization |
11,212 | 11,637 | 34,419 | 34,613 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Total expenses |
22,807 | 22,744 | 69,075 | 64,170 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Net operating income |
7,427 | 6,187 | 22,386 | 18,568 | ||||||||||||||||||
Interest expense |
(6,387) | (4,728) | (17,357) | (13,751) | ||||||||||||||||||
Interest income |
103 | 49 | 206 | 146 | ||||||||||||||||||
Income (loss) from equity in unconsolidated entities |
75 | 12 | 240 | (13) | ||||||||||||||||||
Gain on acquisition of real estate and sale of land parcel |
- | - | - | - | ||||||||||||||||||
Changes in fair value of financial instruments and gain on OP unit redemption |
- | - | - | 230 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Net income (loss) from continuing operations |
1,218 | 1,520 | 5,475 | 5,180 | ||||||||||||||||||
Income from discontinued operations before gain on sale of real estate assets |
- | 345 | - | 481 | ||||||||||||||||||
Gain on sale of real estate assets |
- | 11,974 | - | 11,974 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Income from discontinued operations |
- | 12,319 | - | 12,455 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Net income (loss) |
1,218 | 13,839 | 5,475 | 17,635 | ||||||||||||||||||
Net (income) loss attributable to non-controlling interests |
(70) | (356) | (227) | (489) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Net income (loss) attributable to Excel Trust, Inc. |
1,148 | 13,483 | 5,248 | 17,146 | ||||||||||||||||||
Preferred stock dividends |
(2,501) | (2,744) | (7,989) | (8,232) | ||||||||||||||||||
Cost of redemption of preferred stock |
(1,477) | - | (1,477) | - | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Net income (loss) attributable to the common stockholders |
$ | (2,830) | $ | 10,739 | $ | (4,218) | $ | 8,914 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Basic and diluted net income (loss) per share |
$ | (0.05) | $ | 0.22 | $ | (0.09) | $ | 0.18 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Weighted-average common shares outstanding - basic and diluted |
60,389 | 47,497 | 52,293 | 46,674 | ||||||||||||||||||
|
|
|
|
|
|
|
|
The notes in the Form 10-Q or 10-K are an integral part of these condensed consolidated financial statements.
Page 8
Reconciliation of Net Income to EBITDA
(Earnings before Interest, Taxes, Depreciation & Amortization)
Excel Trust, Inc.s EBITDA and a reconciliation to net income (loss) for the periods presented is as follows:
Three Months Ended September 30, 2014 |
Three Months Ended June 30, 2014 |
Three Months Ended March 31, 2014 |
Three Months Ended December 31, 2013 |
Three Months Ended September 30, 2013 |
||||||||||||||||
Net income attributable to Excel Trust, Inc. |
$ | 1,218 | $ | 1,905 | $ | 2,195 | $ | 2,378 | $ | 13,483 | ||||||||||
Add: |
||||||||||||||||||||
Interest expense |
6,387 | 5,981 | 4,989 | 5,193 | 4,728 | |||||||||||||||
Depreciation and amortization(1) |
|
11,212
|
|
|
11,411
|
|
|
11,796
|
|
|
11,534
|
|
|
11,766
|
| |||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
EBITDA |
$ | 18,817 | $ | 19,297 | $ | 18,980 | $ | 19,105 | $ | 29,977 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(1) Total consolidated depreciation and amortization, a portion of which is included in discontinued operations on the statements of operations for the three months ended September 30, 2013.
Page 9
Reconciliation of Net Income to FFO and AFFO
For the Period Ended September 30, 2014
(In thousands, except per share data)
Excel Trust, Inc.s FFO and AFFO available to common stockholders and operating partnership unitholders and a reconciliation to net income(loss) for the three and nine months ended September 30, 2014 and 2013 is as follows:
Three Months Ended September 30, 2014 |
Three Months Ended September 30, 2013 |
Nine Months Ended September 30, 2014 |
Nine Months Ended September 30, 2013 |
|||||||||||||||
Net income (loss) attributable to the common stockholders |
$ | (2,830) | $ | 10,739 | $ | (4,218) | $ | 8,914 | ||||||||||
Add: |
||||||||||||||||||
Non-controlling interests in operating partnership |
(21) | 279 | (47) | 240 | ||||||||||||||
Depreciation and amortization (1) |
11,212 | 11,766 | 34,419 | 35,306 | ||||||||||||||
Deduct: |
||||||||||||||||||
Depreciation and amortization related to joint venture (2) |
137 | 214 | 463 | 879 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Funds from operations (3) |
$ | 8,498 | $ | 11,024 | $ | 30,617 | $ | 33,365 | ||||||||||
Adjustments: |
||||||||||||||||||
Transaction costs |
820 | 600 | 1,297 | 1,046 | ||||||||||||||
Deferred financing costs |
457 | 387 | 1,380 | 1,300 | ||||||||||||||
Stock-based and other non-cash compensation expense |
1,153 | 583 | 3,117 | 1,713 | ||||||||||||||
Changes in fair value of contingent consideration |
- | (10) | - | (1,568) | ||||||||||||||
Changes in fair value of financial instruments |
- | - | - | (230) | ||||||||||||||
Straight-line effects of lease revenue |
(482) | (664) | (1,599) | (2,588) | ||||||||||||||
Amortization of above- and below-market leases |
225 | (14) | (136) | 204 | ||||||||||||||
Cost of redemption of preferred stock |
1,477 | - | 1,477 | - | ||||||||||||||
Non-incremental capital expenditures |
(51) | (227) | (230) | (577) | ||||||||||||||
Non-cash expenses (income) related to joint venture |
1 | 6 | (16) | (275) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Adjusted funds from operations (3) |
$ | 12,098 | $ | 11,685 | $ | 35,907 | $ | 32,390 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Weighted average common shares outstanding |
60,389 | 47,497 | 52,293 | 46,674 | ||||||||||||||
Add (4) : |
||||||||||||||||||
OP units |
1,020 | 1,225 | 1,020 | 1,230 | ||||||||||||||
Restricted stock |
- | 172 | - | 206 | ||||||||||||||
Contingent consideration related to business combinations |
- | - | - | |||||||||||||||
LTIP restricted stock |
- | - | - | - | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Weighted average common shares outstanding - diluted (FFO and AFFO) |
61,409 | 48,894 | 53,313 | 48,110 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Funds from operations per share (diluted) (5) |
$ | 0.14 | $ | 0.22 | $ | 0.57 | $ | 0.69 | ||||||||||
Adjusted funds from operations per share (diluted) (5) |
$ | 0.19 | $ | 0.24 | $ | 0.67 | $ | 0.67 | ||||||||||
|
|
|
|
|
|
|
||||||||||||
Other Information (6) : |
||||||||||||||||||
Leasing commissions paid |
$ | 231 | $ | 396 | $ | 719 | $ | 1,366 | ||||||||||
Tenant improvements paid |
$ | 457 | $ | 3,391 | $ | 2,485 | $ | 6,483 |
(1) | Total consolidated depreciation and amortization, a portion of which is included in discontinued operations on the statements of operations (for the three and nine months ended September 30, 2013). |
(2) | Includes a reduction for the portion of consolidated depreciation and amortization expense that would be allocable to non-controlling interests in the operating partnership and an increase for the Companys portion of depreciation and amortization expense related to its investment in the unconsolidated La Costa Town Center and The Fountains at Bay Hill properties. |
(3) | FFO and AFFO are described on the Definitions page. |
(4) | The calculation of FFO for the three months ended September 30, 2014 and 2013 include 1,020,000 and 1,397,000 OP units and shares of restricted stock, which are considered antidilutive for purposes of calculating diluted earnings per share. The three months ended September 30, 2014 and 2013 exclude 3,173,142 and 3,356,178 shares of common stock, respectively, potentially issuable pursuant to the conversion feature of the preferred stock based on the if converted method. The calculation of FFO for the nine months ended September 30, 2014 and 2013 include 1,020,000 and 1,436,000 OP units and shares of restricted stock, which are considered antidilutive for purposes of calculating diluted earnings per share. The nine months ended September 30, 2014 and 2013 exclude 3,301,803 and 3,341,076 shares of common stock, respectively, potentially issuable pursuant to the conversion feature of the preferred stock based on the if converted method. |
(5) | The calculation of funds from operations per share (diluted) and adjusted funds from operations per share (diluted) for the three months ended September 30, 2014 and 2013 includes a reduction of $124,000 and $143,000, respectively, for dividends paid to shares of restricted common stock in excess of earnings. The calculation of funds from operations per share (diluted) and adjusted funds from operations per share (diluted) for the nine months ended September 30, 2014 and 2013 includes a reduction of $373,000 and $326,000, respectively, for dividends paid to shares of restricted common stock in excess of earnings. |
(6) | Excludes development properties and shell construction costs for value-add opportunities at operating properties. |
Page 10
Debt Summary (Consolidated)
For the Period Ended September 30, 2014
(Dollars in thousands)
% Total Debt | ||||||||||||||||||
Fixed Rate Debt(1) |
$ | 497,749 | 88% | |||||||||||||||
Variable Rate Debt(2) | 68,000 | 12% | ||||||||||||||||
|
||||||||||||||||||
Total Debt(1) |
$ | 565,749 | 100% | |||||||||||||||
Debt(1)/Gross Undepreciated Assets |
38.3% | |||||||||||||||||
% Total Debt | ||||||||||||||||||
Secured Debt(1) |
$ | 159,749 | 28% | |||||||||||||||
Unsecured Debt |
406,000 | 72% | ||||||||||||||||
|
||||||||||||||||||
Total Debt |
$ | 565,749 | 100% | |||||||||||||||
Secured Debt to Gross Undepreciated Assets |
|
10.8% | ||||||||||||||||
Maturities by Year-Secured(3) | Amount | % Total Debt | Maturities by Year-Unsecured(3) | Amount | Contractual Interest Rate |
% Total Debt | ||||||||||||
|
| |||||||||||||||||
2014 |
$ | 971 | 0.2% | 2014 |
$ | - | ||||||||||||
2015 |
47,918 | 8.5% | 2015 |
- | ||||||||||||||
2016 |
2,362 | 0.4% | 2016 |
- | ||||||||||||||
2017 |
41,446 | 7.3% | 2017 |
- | ||||||||||||||
2018 |
2,196 | 0.4% | 2018 |
56,000 | ||||||||||||||
2019 |
5,615 | 1.0% | 2019 |
- | ||||||||||||||
2020 |
37,419 | 6.6% | 2020 |
75,000 | 4.4% | 13.3% | ||||||||||||
2021 |
628 | 0.1% | 2021 |
- | ||||||||||||||
2022 |
675 | 0.1% | 2022 |
- | ||||||||||||||
2023 |
725 | 0.1% | 2023 |
25,000 | 5.2% | 4.4% | ||||||||||||
Beyond 2023 |
19,794 | 3.5% | Beyond 2023 |
250,000 | 4.6% | 44.2% | ||||||||||||
|
| |||||||||||||||||
Total |
$ | 159,749 | 28.2% | Total |
$ | 406,000 | 4.0% | 71.8% | ||||||||||
Mortgage Notes | Amount | Contractual Interest Rate |
Maturity | |||||||||||||||
|
||||||||||||||||||
The Promenade |
$ | 46,586 | 4.8% | Oct-15 | ||||||||||||||
5000 South Hulen |
13,237 | 5.6% | Apr-17 | |||||||||||||||
Lake Pleasant Pavilion |
27,597 | 6.1% | Oct-17 | |||||||||||||||
Rite Aid, Vestavia |
880 | 7.3% | Oct-18 | |||||||||||||||
Living Spaces-Promenade |
6,875 | 7.9% | Nov-19 | |||||||||||||||
West Broad Village |
39,700 | 3.3% | May-20 | |||||||||||||||
Lowes, Shippensburg |
12,874 | 7.2% | Oct-31 | |||||||||||||||
Northside Mall |
12,000 | 0.1% | Nov-35 | |||||||||||||||
|
||||||||||||||||||
Total |
159,749 | 4.7% | ||||||||||||||||
Debt (discount) or premium |
1,088 | |||||||||||||||||
|
|
|||||||||||||||||
Mortgage notes, net |
$ | 160,837 | ||||||||||||||||
|
(1) Amount excludes debt discount or premium.
(2) Includes the Northside Plaza redevelopment revenue bonds to be used for the redevelopment of this property and our unsecured revolving credit facility. The revenue bonds are priced off the SIFMA index and reset weekly (the rate as of September 30, 2014 was 0.05%). The revenue bonds are secured by a $12.1 million letter of credit issued by the Company from the Companys credit facility. The unsecured revolving credit facility also bears interest at LIBOR plus 0.90% to 1.70% (the rate as of September 30, 2014 was 1.45%).
(3) Includes monthly payments on outstanding principal as well as principal due at maturity.
Page 11
Common and Preferred Stock Data
For the Period Ended September 30, 2014
(In thousands, except per share data)
Three Months Ended September 30, 2014 |
Three Months Ended June 30, 2014 |
Three Months Ended March 31, 2014 |
Three Months Ended December 31, 2013 |
|||||||||||||
Earning per share - share data |
||||||||||||||||
Weighted average common shares outstanding - diluted |
60,389 | 48,567 | 47,785 | 47,672 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted common shares - EPS |
60,389 | 48,567 | 47,785 | 47,672 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Funds from operations - share data |
||||||||||||||||
Weighted average common shares outstanding |
60,389 | 48,567 | 47,785 | 47,672 | ||||||||||||
Weighted average OP units outstanding |
1,020 | 1,020 | 1,020 | 1,100 | ||||||||||||
Weighted average restricted stock outstanding |
- | 747 | - | 141 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total potential dilutive common shares |
61,409 | 50,334 | 48,805 | 48,913 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total common shares (including restricted stock) outstanding |
61,116 | 61,117 | 48,455 | 48,381 | ||||||||||||
Total OP units outstanding |
1,020 | 1,020 | 1,020 | 1,020 | ||||||||||||
Total Series A convertible preferred shares oustanding |
1,331 | 2,000 | 2,000 | 2,000 | ||||||||||||
Total Series B preferred shares outstanding |
3,680 | 3,680 | 3,680 | 3,680 | ||||||||||||
Common share data |
||||||||||||||||
High closing share price |
$ | 13.41 | $ | 13.92 | $ | 12.80 | $ | 12.41 | ||||||||
Low closing share price |
$ | 11.77 | $ | 12.32 | $ | 11.01 | $ | 11.39 | ||||||||
Average closing share price |
$ | 12.82 | $ | 12.95 | $ | 11.95 | $ | 11.82 | ||||||||
Closing price at end of period |
$ | 11.77 | $ | 13.33 | $ | 12.68 | $ | 11.39 | ||||||||
Dividends per share - annualized |
$ | 0.70 | $ | 0.70 | $ | 0.70 | $ | 0.70 | ||||||||
Dividend yield (based on closing share price at end of period) |
5.9 | % | 5.3 | % | 5.5 | % | 6.1 | % | ||||||||
Dividends per share |
||||||||||||||||
Common stock (EXL) |
$ | 0.1750 | $ | 0.1750 | $ | 0.1750 | $ | 0.1750 | ||||||||
Series A Convertible Perpetual Preferred stock |
$ | 0.4375 | $ | 0.4375 | $ | 0.4375 | $ | 0.4375 | ||||||||
Series B Preferred stock |
$ | 0.5078 | $ | 0.5078 | $ | 0.5078 | $ | 0.5078 |
Page 12
Acquisitions & Developments
For the Period Ended September 30, 2014
(Dollars in thousands, except price per square foot)
Acquisition Property Name | City | State | Year Built(1) |
Total GLA(2) |
Acquisition Date |
Price Sq. Ft. |
Initial Cost Basis(3) |
Major Tenants | ||||||||||||||||||||
The Family Center at Fort Union |
Salt Lake City | UT | 1974/2007 | 688,549 | 9/26/2014 | $ | 191 | $ | 131,400 | |
Walmart, Smiths (Kroger), Gordmans, Dicks, Bed, Bath & Beyond, Babies R Us, Ross, OfficeMax, Michaels, DSW, Petco, Ulta | |||||||||||||||||
The Family Center at Orem |
Orem | UT | 1991 | 150,667 | 9/26/2014 | $ | 113 | $ | 17,000 | |
Dicks, Jo-Ann, Babies R Us, Dollar Tree, Toys R Us (non-owned), RC Willey (non-owned) | |||||||||||||||||
Total |
839,216 | $ | 117 | $ | 148,400 | |||||||||||||||||||||||
Value-add Opportunities | City | State | Estimated Opening Date(1) |
GLA to be Constructed |
Land(2) | Improvements | Total
Amount(3) |
Remaining Estimated Cost to Complete |
% GLA Leased / Committed(4) |
Major Tenants | ||||||||||||||||||
Red Rock Commons |
St. George | UT | Q3 2014 | 15,606 | $ | - | $ | 2,962 | $ | 2,962 | $ | - | 84% | Café Rio, Charming Charlies | ||||||||||||||
West Broad Village - Expansion A |
Richmond | VA | Q4 2014 | 10,000 | $ | - | $ | 2,205 | $ | 2,205 | $ | 284 | 100% | Children of America | ||||||||||||||
Total |
25,606 | $ | - | $ | 5,167 | $ | 5,167 | $ | 284 | |||||||||||||||||||
Developments Under Construction | City | State | Estimated Opening Date(1) |
GLA to be Constructed |
Land(2) | Improvements | Total
Amount(3) |
Remaining Estimated Cost to Complete |
% GLA Leased / Committed(4) |
Major Tenants | ||||||||||||||||||
Chimney Rock - Phase II |
Odessa | TX | TBD | 110,086 | $ | 2,030 | $ | 3,779 | $ | 5,809 | $ | 9,253 | 44% | Dickeys BBQ, Mattress Firm, Northern Tool | ||||||||||||||
Southlake Park Village |
Southlake (Dallas) | TX | Q2 2015 | 186,043 | $ | 16,060 | $ | 20,727 | $ | 36,787 | $ | 19,637 | 67% | Fresh Market, REI | ||||||||||||||
Total |
296,129 | $ | 18,090 | $ | 24,506 | $ | 42,596 | $ | 28,890 | |||||||||||||||||||
Future Developments / Land | City | State | Estimated GLA to be Constructed / Land |
Estimated Start Date |
Estimated Project Cost |
Projected Use | ||||||||||||||||||||||
Plaza at Rockwall - Phase III |
Rockwall | TX | 22,700 | TBD | $ | 2,248 | Additional shop space | |||||||||||||||||||||
Park West Place - Expansion B |
Stockton | CA | 9,700 | TBD | NA | Additional shop space | ||||||||||||||||||||||
Shops at Foxwood |
Ocala | FL | 1.0 acres | TBD | NA | Additional land to be sold or developed | ||||||||||||||||||||||
Chimney Rock - Phase III |
Odessa | TX | 4.2 acres | TBD | NA | Additional land to be sold or developed | ||||||||||||||||||||||
West Broad Village - Expansion B |
Richmond | VA | 1.2 acres | TBD | NA | Additional land to be sold or developed | ||||||||||||||||||||||
Stadium Center - Expansion |
Manteca | CA | 2.0 acres | TBD | NA | Additional land to be sold or developed | ||||||||||||||||||||||
League City Town Center |
League City | TX | 0.9 acres | TBD | NA | Additional land to be sold or developed |
(1) Opening Date represents the date at which the Company estimates that the majority of the gross leasable area will be open for business. A property is reclassified from development to the operating portfolio at the earlier of (i) 85.0% occupancy or (ii) one year from completion and delivery of the space.
(2) The Company has not allocated a separate value to land parcels at certain properties for developments that represent only a small portion of the overall property.
(3) Total Carrying Amount includes land value (where applicable), whereas Construction In Progress (CIP) values for development properties as listed in the Companys SEC filings excludes land values.
(4) Includes square footage of buildings leased to tenants (including square footage of buildings on outparcels owned by the Company and ground leased to tenants) as well as signed non-binding letters of intent as of October 2014.
Page 13
Operating Portfolio Summary (Consolidated)
For the Period Ended September 30, 2014
(Dollars in thousands, except price per square foot)
Property Name | City | State | Year Built(1) |
Total GLA(2) |
Acquisition Date |
Price Sq. Ft. |
Initial Cost Basis |
Percent Leased 9/30/14 |
Percent Leased 6/30/14 |
Major Tenants | ||||||||||
Operating Portfolio | ||||||||||||||||||||
West Broad Village(3) |
Richmond | VA | 2009 | 396,923 | 10/19/2012 | $257 | $170,200 | 77.9% | 78.8% | Whole Foods, REI, HomeGoods, Dave & Busters, South University | ||||||||||
The Family Center at Fort Union |
Salt Lake City | UT | 1974/2007 | 688,549 | 9/26/2014 | $191 | $131,400 | 97.0% | n/a | Walmart, Smiths (Kroger), Gormans, Dicks, Bed, Bath & Beyond, Babies R Us, Ross, OfficeMax, Michaels, DSW, Petco, Ulta | ||||||||||
The Promenade(4) | Scottsdale | AZ | 1999 | 566,663 | 7/11/2011 | $222 | $126,000 | 92.7% | 94.3% | Nordstrom Rack, Trader Joes, OfficeMax, PetSmart, Old Navy, Michaels, Stein Mart, Cost Plus, Living Spaces, Lowes (non-owned) | ||||||||||
Park West Place | Stockton | CA | 2005 | 603,464 | 12/14/2010 | $153 | $92,500 | 99.4% | 99.4% | Lowes, Kohls, Sports Authority, Jo-Ann, Ross, PetSmart, Office Depot, Target (non-owned) | ||||||||||
Gilroy Crossing | Gilroy | CA | 2004 | 325,431 | 4/5/2011 | $210 | $68,400 | 100.0% | 99.6% | Kohls, Ross, Michaels, Bed Bath & Beyond, Target (non-owned) | ||||||||||
Promenade Corporate Center |
Scottsdale | AZ | 2004 | 256,182 | 1/23/2012 | $207 | $53,000 | 83.3% | 84.0% | Fitch, Healthcare Trust of America, Regus, Meridian Bank | ||||||||||
Plaza at Rockwall | Rockwall | TX | 2007/2012 | 432,096 | 6/29/2010 | $118 | $50,800 | 99.2% | 99.2% | Best Buy, Dicks, Staples, Ulta, JC Penney, Belk, HomeGoods, Jo-Ann | ||||||||||
Brandywine Crossing |
Brandywine | MD | 2009 | 198,384 | 10/1/2010 | $224 | $44,500 | 96.4% | 96.9% | Safeway, Marshalls, Jo-Ann, Target (non-owned), Costco (non-owned) | ||||||||||
Lake Pleasant Pavilion |
Phoenix (Peoria) |
AZ | 2007 | 178,376 | 5/16/2012 | $234 | $41,800 | 89.0% | 91.8% | Target (non-owned), Marshalls, Bed Bath & Beyond, BevMo!, Tillys, Kirklands, The Dress Barn | ||||||||||
Stadium Center | Manteca | CA | 2006 | 160,726 | 7/1/2013 | $256 | $41,150 | 96.3% | 96.3% | Ross, Jo-Ann, Office Max, Old Navy, Costco (non-owned) and Kohls (non-owned) | ||||||||||
Dellagio | Orlando | FL | 2009 | 123,198 | 10/19/2012 | $325 | $40,100 | 79.0% | 84.7% | Flemings, Fifth Third Bank | ||||||||||
League City Town Center |
League City (Houston) |
TX | 2008 | 194,736 | 8/1/2013 | $203 | $39,500 | 96.4% | 96.4% | Ross, TJ Maxx, Michaels, PetSmart, Staples, SuperTarget (non-owned) and Home Depot (non-owned) | ||||||||||
Vestavia Hills City Center |
Birmingham (Vestavia Hills) |
AL | 2002 | 391,899 | 8/30/2010 | $89 | $34,900 | 83.6% | 83.6% | Publix, Dollar Tree, Stein Mart, Rave Motion Pictures | ||||||||||
The Crossings of Spring Hill |
Nashville (Spring Hill) |
TN | 2008 | 219,880 | 12/19/2011 | $141 | $31,000 | 99.2% | 99.1% | SuperTarget (non-owned), Kohls (non-owned), PetSmart, Ross, Bed Bath & Beyond | ||||||||||
Tracy Pavilion | Tracy | CA | 2006 | 162,463 | 1/24/2013 | $189 | $30,738 | 100.0% | 95.0% | Marshalls, Ross, PetSmart, Staples, Ulta | ||||||||||
Red Rock Commons |
St. George | UT | 2012 | 118,593 | 4//23/2010 | $242 | $28,700 | 100.0% | 100.0% | Dicks, PetSmart, Old Navy, Gap Outlet, Ulta | ||||||||||
Edwards Theatres | San Diego (San Marcos) |
CA | 1999 | 100,551 | 3/11/2011 | $261 | $26,200 | 100.0% | 100.0% | Edwards Theatres (a subsidiary of Regal Cinemas) | ||||||||||
Rosewick Crossing | La Plata | MD | 2008 | 115,972 | 10/1/2010 | $215 | $24,900 | 81.8% | 81.8% | Giant Food, Lowes (non-owned) | ||||||||||
EastChase Market Center |
Montgomery | AL | 2008 | 181,431 | 2/17/2012 | $136 | $24,700 | 98.9% | 98.9% | Dicks, Jo-Ann, Bed Bath & Beyond, Michaels, Old Navy, Costco (non-owned) | ||||||||||
Chimney Rock | Odessa | TX | 2012 | 190,770 | 8/30/2012 | $125 | $23,800 | 97.3% | 97.3% | Academy Sports, Best Buy, Marshalls, Kirklands, Ulta | ||||||||||
Excel Centre | San Diego | CA | 1999 | 82,157 | 4//23/2010 | $288 | $23,700 | 90.4% | 90.4% | Kaiser Permanente, Excel Trust, UBS | ||||||||||
5000 South Hulen | Fort Worth | TX | 2005 | 86,833 | 5/12/2010 | $252 | $21,900 | 98.6% | 96.7% | Barnes & Noble, Old Navy | ||||||||||
Lowes | Shippensburg | PA | 2008 | 171,069 | 6/22/2010 | $103 | $17,600 | 100.0% | 100.0% | Lowes | ||||||||||
Anthem Highlands | Las Vegas (Henderson) |
NV | 2006 | 118,763 | 12/1/2011 | $147 | $17,500 | 91.3% | 89.2% | Albertsons, CVS, Wells Fargo, Bank of America | ||||||||||
The Family Center at Orem |
Orem | UT | 1991 | 150,667 | 9/26/2014 | $113 | $17,000 | 84.9% | n/a | Dicks, Jo-Ann, Babies R Us, Dollar Tree, Toys R Us (non-owned), RC Willey (non-owned) | ||||||||||
Centennial Crossroads |
Las Vegas | NV | 2003 | 105,415 | 11/22/2013 | $156 | $16,400 | 88.8% | 88.8% | Vons, Chase Bank | ||||||||||
LA Fitness | San Diego | CA | 2006 | 38,000 | 10/4/2013 | $376 | $14,300 | 100.0% | 100.0% | LA Fitness | ||||||||||
Pavilion Crossing | Brandon | FL | 2012 | 68,400 | 10/1/2012 | $192 | $13,100 | 100.0% | 100.0% | Publix | ||||||||||
Shops at Foxwood | Ocala | FL | 2010 | 78,660 | 10/19/2010 | $160 | $12,600 | 90.8% | 90.8% | Publix, McDonalds (non-owned) | ||||||||||
Northside Plaza | Dothan | AL | 2010 | 171,670 | 11/15/2010 | $70 | $12,400 | 94.8% | 94.8% | Publix, Hobby Lobby, Books A Million | ||||||||||
Meadow Ridge Plaza |
Orlando | FL | 2007 | 45,199 | 10/19/2012 | $215 | $9,700 | 83.0% | 83.0% | Fifth Third Bank | ||||||||||
Shoppes of Belmere |
Orlando | FL | 2008 | 26,502 | 10/19/2012 | $366 | $9,700 | 100.0% | 100.0% | CVS | ||||||||||
Lake Burden Shoppes |
Orlando | FL | 2008 | 20,598 | 10/19/2012 | $413 | $8,500 | 87.6% | 100.0% | Walgreens | ||||||||||
Five Forks Place | Simpsonville | SC | 2002 | 61,191 | 4//23/2010 | $127 | $7,800 | 100.0% | 100.0% | Publix | ||||||||||
Mariners Point | St. Marys | GA | 2001 | 45,215 | 7/20/2010 | $146 | $6,600 | 91.2% | 91.2% | Shoe Show, Super Wal-Mart (non-owned) | ||||||||||
Newport Towne Center |
Newport | TN | 2006 | 60,100 | 4//23/2010 | $108 | $6,500 | 82.6% | 88.9% | Stage Stores (DBA Goodys), Dollar Tree, Super Wal-Mart (non-owned) | ||||||||||
Merchant Central | Milledgeville | GA | 2004 | 45,013 | 6/30/2010 | $136 | $6,100 | 89.2% | 89.2% | Dollar Tree, Super Wal-Mart (non-owned) | ||||||||||
Cedar Square | Duncanville (Dallas) |
TX | 1978 | 75,550 | 11/4/2013 | $57 | $4,300 | 90.8% | 93.1% | Bealls, Walgreens | ||||||||||
Total Operating Portfolio |
Total | 7,057,289 | $182 | $1,350,088 | 93.4% | 93.5% |
(1) Year built represents the year in which construction was completed or the date of the last major renovation.
(2) Total GLA represents total gross leasable area owned by the Company at the property (includes GLA of buildings on ground lease).
(3) The West Broad Village property is a mixed use shopping center that includes retail, office and 339 apartment units on the upper levels of the shopping center. However, the propertys total GLA listed herein excludes square footage of the apartments. As such, the approximate initial cost basis of the apartments of $68 million has been deducted from the price per square foot calculation.
(4) Includes an additional land parcel acquired in August 2013 with an initial cost basis of approximately $16.0 million.
Page 14
Summary of Retail Leasing Activity (Consolidated)
For the Period Ended September 30, 2014
Number of Leases(1) |
GLA | Weighted Average- New Lease Rate(2) |
Weighted Average- Prior Lease Rate(2) |
Percentage Increase or (Decrease) |
Tenant Improvement Allowance per Sq. Ft. |
Weighted-Average Lease Term (Yrs.) |
||||||||||||||||||||||
|
| |||||||||||||||||||||||||||
Comparable Leases |
||||||||||||||||||||||||||||
New leases(3) |
8 | 14,608 | $ | 21.85 | $ | 20.63 | 5.9% | $ | 19.81 | 3.8 | ||||||||||||||||||
Renewals/Options |
15 | 98,084 | 12.93 | 12.21 | 5.9% | - | 4.8 | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||
Total: Comparable Leases |
23 | 112,692 | $ | 14.09 | $ | 13.30 | 5.9% | $ | 2.57 | 4.7 | ||||||||||||||||||
Non-Comparable Leases |
||||||||||||||||||||||||||||
Operating portfolio |
7 | 16,745 | $ | 17.12 | n/a | n/a | $ | 1.56 | 5.2 | |||||||||||||||||||
Development |
6 | 49,315 | 22.08 | n/a | n/a | 27.47 | 10.5 | |||||||||||||||||||||
|
| |||||||||||||||||||||||||||
Total: Non-Comparable Leases |
13 | 66,060 | $ | 20.82 | n/a | n/a | $ | 20.90 | 9.1 | |||||||||||||||||||
Total Leasing Activity |
36 | 178,752 | $ | 16.58 | n/a | n/a | $ | 9.34 | 6.3 | |||||||||||||||||||
|
|
|
|
(1) Excludes month-to-month leases and leases involving office GLA.
(2) Lease rate represents final cash rent from the previous lease and the initial cash rent from the new lease and excludes the impact of changes in lease rates during the term.
(3) Represents leases signed on spaces for which there was a tenant within the last 12 months. Excludes leases signed at development properties.
Page 15
Same Property Analysis
For the Period Ended September 30, 2014
(In thousands, except per share amounts)
Three Months Ended
September 30, 2014 |
Three Months Ended
September 30, 2013 |
Percentage
Change |
Nine Months Ended
September 30, 2014 |
Nine Months Ended
September 30, 2013 |
Percentage
Change |
|||||||||||||||||||
Same Property Portfolio (1) |
||||||||||||||||||||||||
Number of properties |
31 | 31 | 30 | 30 | ||||||||||||||||||||
Rentable square feet |
5,510,526 | 5,510,526 | 5,348,063 | 5,348,063 | ||||||||||||||||||||
Percent leased |
92.9% | 92.0% | 0.9% | 92.7% | 92.1% | 0.7% | ||||||||||||||||||
Percentage of total operating portfolio |
78.1% | 100.0% | 75.8% | 97.1% | ||||||||||||||||||||
Total revenues (2) |
$ | 26,554 | $ | 27,009 | -1.7% | $ | 78,309 | $ | 78,114 | 0.2% | ||||||||||||||
Total expenses |
6,811 | 7,538 | -9.6% | 20,474 | 20,443 | 0.2% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Same property - net operating income (GAAP basis) |
$ | 19,743 | $ | 19,471 | 1.4% | $ | 57,835 | $ | 57,671 | 0.3% | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Less: straight line rents, fair-value lease revenue, lease incentive revenue |
(56) | (354) | -84.2% | (980) | (1,998) | -51.0% | ||||||||||||||||||
Same property - net operating income (cash basis) |
$ | 19,687 | $ | 19,117 | 3.0% | $ | 56,855 | $ | 55,673 | 2.1% | ||||||||||||||
|
|
|
|
|
|
|
|
(1) | Includes all properties purchased prior to July 1, 2013 (three month analysis) and January 1, 2013 (nine month analysis). Excludes adjustments relating to prior year reimbursements. |
(2) | Total revenues for the nine months ended September 30, 2014 includes a reduction of approximately $195,000 in recorded revenues related to a lease termination payment received at one property in 2014. Total revenues for the nine months ended September 30, 2013 includes a reduction of approximately $203,000 in recorded revenues for percentage rents received at one property (pertaining to 2012) that were recognized on a cash basis due to the lack of significant previous operating history. Beginning in 2013, the Company now records an accrual for percentage rent revenues in the fourth quarter of each fiscal year. |
Page 16
Major Tenants By GLA (Consolidated)
For the Period Ended September 30, 2014
(Dollars in thousands, except rent per square foot)
Total GLA-Operating Portfolio(1) | 7,057,289 | |||||||
|
||||||||
Tenants | # Stores | Square Feet | % of Total GLA | |||||
| ||||||||
1 | Lowes | 2 | 325,863 | 4.2% | ||||
2 | Publix | 5 | 245,351 | 3.1% | ||||
3 | Dicks Sporting Goods | 5 | 243,508 | 3.1% | ||||
4 | Ross Dress For Less | 7 | 201,742 | 2.6% | ||||
5 | Kohls | 2 | 176,656 | 2.3% | ||||
6 | Bed Bath & Beyond | 6 | 170,099 | 2.2% | ||||
7 | Jo-Ann | 7 | 167,795 | 2.1% | ||||
8 | TJX Companies | 6 | 166,207 | 2.1% | ||||
9 | Living Spaces(2) | 1 | 133,120 | 1.7% | ||||
10 | PetSmart | 7 | 131,691 | 1.7% | ||||
| ||||||||
Total Top 10 GLA | 48 | 1,962,032 | 25.1% |
Major Tenants By ABR (Consolidated)
Annualized Base Rent-Operating Portfolio (3) | $ 102,030 | |||||||||||||||
|
||||||||||||||||
Tenants | # Stores | Square Feet | Rent Per Sq. Ft. | ABR | % ABR | |||||||||||
| ||||||||||||||||
1 | Dicks Sporting Goods | 5 | 243,508 | $ | 12.33 | $ | 3,003 | 2.9% | ||||||||
2 | Publix | 5 | 245,351 | $ | 11.15 | $ | 2,735 | 2.7% | ||||||||
3 | Ross Dress For Less | 7 | 201,742 | $ | 12.21 | $ | 2,463 | 2.4% | ||||||||
4 | Edwards Theatres (Regal Cinemas) | 1 | 100,551 | $ | 23.35 | $ | 2,348 | 2.3% | ||||||||
5 | Lowes | 2 | 325,863 | $ | 6.74 | $ | 2,195 | 2.2% | ||||||||
6 | Bed Bath & Beyond | 6 | 170,099 | $ | 11.73 | $ | 1,995 | 2.0% | ||||||||
7 | PetSmart | 7 | 131,691 | $ | 15.03 | $ | 1,979 | 1.9% | ||||||||
8 | Jo-Ann | 7 | 167,795 | $ | 11.63 | $ | 1,951 | 1.9% | ||||||||
9 | TJX Companies | 6 | 166,207 | $ | 10.33 | $ | 1,716 | 1.7% | ||||||||
10 | Kaiser Permanente | 1 | 38,432 | $ | 44.46 | $ | 1,709 | 1.7% | ||||||||
Total Top 10 Annualized Rent | 47 | 1,791,239 | $ | 12.33 | $ | 22,094 | 21.7% | |||||||||
(1) Includes gross leasable area associated with buildings on ground lease.
(2) Living Spaces is sub-leasing the building from Sears.
(3) Annualized Base Rent does not include rental revenue from multi-family properties and is further described on the Definitions page.
Page 17
Expiration Schedule (Consolidated)
For the Period Ended September 30, 2014
Occupied Retail GLA |
% of Occupied Retail GLA |
Total Occupied Retail ABR |
% of Total Occupied Retail ABR | |||||||||
Occupied Retail Anchor GLA(3) |
4,407,628 | 70.6% | $ | 51,263 | 54.4% | |||||||
Occupied Retail Inline GLA(3) |
1,835,737 | 29.4% | 42,974 | 45.6% | ||||||||
|
| |||||||||||
Total Occupied Retail GLA |
6,243,365 | 100.0% | $ | 94,237 | 100.0% |
Year | Anchor GLA Expiring |
% of Total Occupied Retail GLA |
Anchor Rent Per Sq. Ft. |
Inline GLA Expiring |
% of Total Occupied Retail GLA |
Inline Rent Per Sq. Ft. |
Total Occupied Retail GLA Expiring |
% of Total Occupied Retail GLA |
Total Occupied Retail ABR Expiring |
% of Total Retail ABR |
Average Rent Per Sq. Ft. |
|||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||
2014 |
(4) |
11,000 | 0.2% | $ | 10.91 | 66,221 | 1.1% | $ | 20.31 | 77,221 | 1.2% | $ | 1,465 | 1.6% | $ | 18.97 | ||||||||||||||||||
2015 |
337,472 | 5.4% | $ | 11.52 | 251,568 | 4.0% | $ | 21.92 | 589,040 | 9.4% | $ | 9,400 | 10.0% | 15.96 | ||||||||||||||||||||
2016 |
265,018 | 4.2% | $ | 11.60 | 246,647 | 4.0% | $ | 24.63 | 511,665 | 8.2% | $ | 9,149 | 9.7% | 17.88 | ||||||||||||||||||||
2017 |
100,652 | 1.6% | $ | 14.06 | 263,020 | 4.2% | $ | 22.80 | 363,672 | 5.8% | $ | 7,413 | 7.9% | 20.38 | ||||||||||||||||||||
2018 |
317,428 | 5.1% | $ | 13.36 | 235,733 | 3.8% | $ | 24.36 | 553,161 | 8.9% | $ | 9,984 | 10.6% | 18.05 | ||||||||||||||||||||
2019 |
702,225 | 11.2% | $ | 14.07 | 256,082 | 4.1% | $ | 21.22 | 958,307 | 15.3% | $ | 15,315 | 16.3% | 15.98 | ||||||||||||||||||||
2020 |
398,103 | 6.4% | $ | 15.31 | 108,067 | 1.7% | $ | 22.61 | 506,170 | 8.1% | $ | 8,537 | 9.1% | 16.87 | ||||||||||||||||||||
2021 |
134,163 | 2.1% | $ | 11.99 | 73,639 | 1.2% | $ | 19.73 | 207,802 | 3.3% | $ | 3,062 | 3.2% | 14.74 | ||||||||||||||||||||
2022 |
339,920 | 5.4% | $ | 12.48 | 60,333 | 1.0% | $ | 20.85 | 400,253 | 6.4% | $ | 5,500 | 5.8% | 13.74 | ||||||||||||||||||||
2023 |
178,526 | 2.9% | $ | 12.36 | 62,752 | 1.0% | $ | 27.04 | 241,278 | 3.9% | $ | 3,902 | 4.1% | 16.17 | ||||||||||||||||||||
Beyond 2023 |
1,623,121 | 26.0% | $ | 8.93 | 211,675 | 3.4% | $ | 28.42 | 1,834,796 | 29.4% | $ | 20,510 | 21.8% | 11.18 | ||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||
Total |
4,407,628 | 70.6% | $ | 11.63 | 1,835,737 | 29.4% | $ | 23.41 | 6,243,365 | 100.0% | $ | 94,237 | 100.0% | $ | 15.09 | |||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||||
(1) Retail figures exclude the Excel Centre and Promenade Corporate Center office properties.
(2) Same property GLA percent leased (sequential) excludes any properties that were reclassified to the operating portfolio, acquired, or disposed of during the quarter.
(3) Anchor Tenants and Inline Tenants are described on the Definitions page.
(4) Includes month-to-month leases and ground leases, but excludes percentage rent.
Page 18
Unconsolidated Investments
For the Period Ended September 30, 2014
(Dollars in thousands)
Financial Information | Leasing Information | |||||||||||||||||||
Investment Partner | Formation/Acquisition Date | Property | City | State | Total GLA(1) |
Total Assets | Total Debt | Ownership Interest | Percent Leased | ABR | ||||||||||
|
|
| ||||||||||||||||||
GEM | September 7, 2012 | La Costa Town Center | Carlsbad | CA | 122,096 | $24,925 | $14,100 | 20% | 36.7% | $1,189 | ||||||||||
MDC | October 19, 2012 | The Fountains at Bay Hill | Orlando | FL | 103,767 | $39,401 | $23,083 | 50% | 100.0% | $3,073 | ||||||||||
|
|
|
(1) Total GLA represents total gross leasable area owned by the Company at the property (includes GLA of buildings on ground lease).
Summary Financial Information:
Balance Sheet |
September 30, 2014 | Company Pro Rata | December 31, 2013 | Company Pro Rata | ||||||||||||||||||||||||
Assets: |
||||||||||||||||||||||||||||
Investments in Real Estate |
$ | 60,187 | $ | 22,999 | $ | 60,391 | $ | 23,187 | ||||||||||||||||||||
Cash & cash equivalents |
294 | 146 | 277 | 136 | ||||||||||||||||||||||||
Other assets |
3,845 | 1,541 | 4,944 | 1,772 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total assets |
$ | 64,326 | $ | 24,686 | $ | 65,612 | $ | 25,095 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Liabilities and members equity: |
||||||||||||||||||||||||||||
Mortgage notes payable and secured loan |
$ | 37,183 | $ | 14,362 | $ | 37,523 | $ | 14,532 | ||||||||||||||||||||
Other liabilities |
10,275 | 5,041 | 10,236 | 5,008 | ||||||||||||||||||||||||
Members equity |
16,868 | 5,283 | 17,853 | 5,555 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total liabilities and equity |
$ | 64,326 | $ | 24,686 | $ | 65,612 | $ | 25,095 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Companys investment in unconsolidated entities |
$ | 8,378 | $ | 8,303 | ||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||
Income Statement |
Three Months Ended September 30, 2014 |
Company Pro Rata | Nine Months Ended September 30, 2014 |
Company Pro Rata | ||||||||||||||||||||||||
Total revenues |
$ | 1,345 | $ | 557 | $ | 4,120 | $ | 1,686 | ||||||||||||||||||||
Expenses: |
||||||||||||||||||||||||||||
Property operating expenses |
360 | 129 | 972 | 337 | ||||||||||||||||||||||||
General and administrative |
5 | 2 | 9 | 3 | ||||||||||||||||||||||||
Depreciation and amortization |
516 | 195 | 1,666 | 637 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total expenses |
881 | 326 | 2,647 | 977 | ||||||||||||||||||||||||
Interest expense |
(478) | (156) | (1,431) | (469) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net income (loss) |
$ | (14) | $ | 75 | $ | 42 | $ | 240 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Companys loss from equity in unconsolidated entities |
$ | 75 | $ | 240 | ||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||
|
Unconsolidated Debt: | ||||
|
||||
La Costa Town Center |
September 30, 2014 | |||
Proportionate share of debt: |
$ | 2,820 | ||
Maturity date: |
October 1, 2014 | |||
Current interest rate: |
5.9% | |||
Fountains at Bay Hill: |
September 30, 2014 | |||
Proportionate share of debt: |
$ | 11,542 | ||
Maturity date: |
April 2, 2015 | |||
Current interest rate: |
3.4% |
Page 19
Definitions
Adjusted Funds From Operations (AFFO): Adjusted Funds From Operations (AFFO) is a non-GAAP financial measure we believe is a useful supplemental measure of our performance. We compute AFFO by adding to FFO the non-cash compensation expense, amortization of prepaid financing costs and non-recurring transaction costs, and other one-time items, then subtracting straight-line rents, amortization of above and below market leases and non-incremental capital expenditures. Our computation may differ from the methodology for calculating AFFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. AFFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of Excel Trusts financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of Excel Trusts liquidity, nor is it indicative of funds available to fund Excel Trusts cash needs, including Excel Trusts ability to pay dividends or make distributions.
Anchor Tenant: A tenant who occupies 10,000 square feet or more.
Annualized Base Rent: Annualized Base Rent is obtained by annualizing the cash rental rate (excluding reimbursements and percentage rent) for the final month of a reporting period. Annualized Base Rent does not include rental revenue from multi-family properties.
EBITDA: Earnings (excluding preferred stock dividends) before interest, taxes, depreciation and amortization.
Funds From Operations (FFO): Excel Trust considers FFO an important supplemental measure of its operating performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year-over-year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income.
Excel Trust computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT. As defined by NAREIT, FFO represents net income (loss) (computed in accordance with generally accepted accounting principles, or GAAP), excluding real estate-related depreciation and amortization, impairment charges and net gains (losses) on the disposition of real estate assets and after adjustments for unconsolidated partnerships and joint ventures. Excel Trusts computation may differ from the methodology for calculating FFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO does not represent amounts available for managements discretionary use because of needed capital service obligations, or other commitments and uncertainties. FFO should not be considered as an alternative to net income (loss) replacement or expansion, debt (computed in accordance with GAAP) as an indicator of Excel Trusts financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of Excel Trusts liquidity, nor is it indicative of funds available to fund Excel Trusts cash needs, including Excel Trusts ability to pay dividends or make distributions.
Inline Tenant: Any tenant who does not qualify as an anchor tenant.
Leased: A space is considered leased when both Excel Trust and the tenant have executed the lease agreement.
Occupied: A space is considered occupied when the tenant has access to the space and revenue recognition has commenced (includes month-to-month tenants). If a tenant has vacated a space and Excel Trust has agreed to terminate the lease, the space is considered unoccupied as of the date of execution of the amended lease agreement.
Page 20
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