0001564590-19-005521.txt : 20190228 0001564590-19-005521.hdr.sgml : 20190228 20190228170037 ACCESSION NUMBER: 0001564590-19-005521 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20190228 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190228 DATE AS OF CHANGE: 20190228 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Seritage Growth Properties CENTRAL INDEX KEY: 0001628063 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 383976287 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-37420 FILM NUMBER: 19644489 BUSINESS ADDRESS: STREET 1: 500 FIFTH AVENUE STREET 2: SUITE 1530 CITY: NEW YORK STATE: NY ZIP: 10110 BUSINESS PHONE: 2123557800 MAIL ADDRESS: STREET 1: 500 FIFTH AVENUE STREET 2: SUITE 1530 CITY: NEW YORK STATE: NY ZIP: 10110 FORMER COMPANY: FORMER CONFORMED NAME: Seritage Growth Properties, Inc. DATE OF NAME CHANGE: 20141215 8-K 1 srg-8k_20190228.htm 8-K srg-8k_20190228.htm

 

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):  February 28, 2019

 

SERITAGE GROWTH PROPERTIES

(Exact Name of Registrant as Specified in Its Charter)

 

 

Maryland

 

001-37420

 

38-3976287

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

 

 

 

 

500 Fifth Avenue, Suite 1530

New York, New York

 

10110

(Address of principal executive offices)

 

(Zip code)

 

Registrant’s telephone number, including area code: (212) 355-7800

 

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 (see General Instruction A.2. below):

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

 


Item 1.01.   Entry into a Material Definitive Agreement.

Holdco Master Lease

On February 28, 2019, Seritage SRC Finance LLC and Seritage KMT Finance LLC (together, the “Landlord”), each a subsidiary of Seritage Growth Properties (the “Company”), entered into a Master Lease (the “Holdco Master Lease”) with Transform SR Operations LLC and Transform KM Operations LLC (together, the “Tenant”), each a subsidiary of Transform Holdco LLC. The Holdco Master Lease comprises 51 of the Company’s wholly-owned properties that were leased under the 2015 Sears Holdings Master Lease (as described below) as of the date of the Holdco Master Lease.  A condition to the performance and obligations provided for in the Holdco Master Lease is the rejection of the Master Lease dated July 7, 2015 (as amended, the “2015 Sears Holdings Master Lease ”) between Landlord and Sears Operations LLC and Kmart Operations LLC, as tenant.  The 2015 Sears Holdings Master Lease will be rejected if either (i) the United States Bankruptcy Court for the Southern District of New York issues an order approving the rejection of the 2015 Sears Holdings Master Lease or (ii) the 2015 Sears Holdings Master Lease is deemed to be rejected pursuant to the operation of the Bankruptcy Code.  As a result of this condition there can be no assurance as to the commencement of the Landlord’s and Tenant’s performance and obligations provided for in the Holdco Master Lease and/or the timing thereof.

The Holdco Master Lease is a unitary, non-divisible lease as to all properties, pursuant to which the Tenant’s obligations as to each property are cross-defaulted with all obligations of the Tenant with respect to all other properties. The Holdco Master Lease generally is a triple net lease with respect to all space which will be leased thereunder to the Tenant, subject to proportional sharing by the Tenant for repair and maintenance charges, real property taxes, insurance and other costs and expenses which are common to both the space leased by the Tenant and other space occupied by other tenants in the same or other buildings, space which is recaptured pursuant to the Landlord recapture rights described below and all other space which is constructed on the properties. Under the Holdco Master Lease, the Tenant is required to make all expenditures reasonably necessary to maintain the premises in good appearance, repair and condition for as long as they are in occupancy.

Term and Renewals

Consistent with the 2015 Sears Holdings Master Lease, the Holdco Master Lease will expire in July 2025, and contains the same three options for five-year renewals of the term and a final option for a four-year renewal exists under the 2015 Sears Holdings Master Lease.

Rental Amounts, Rent Concession and Escalators

The Holdco Master Lease provides for an initial base rent amount of approximately $32.5 million annually payable to the Landlord.  In each of the initial term and the first two renewal terms, consistent with the 2015 Sears Holdings Master Lease, base rent under the Holdco Master Lease will be increased in August of each year by 2.0% per annum for each lease year over the rent for the immediately preceding lease year. For subsequent renewal terms, consistent with the 2015 Sears Holdings Master Lease, rent will be set at the commencement of the renewal term for the Holdco Master Lease at a fair market rent based on a customary third-party appraisal process, taking into account all the terms of the Holdco Master Lease and other relevant factors, but in no event will the renewal rent be less than the rent payable in the immediately preceding lease year.  The base rent under the Holdco Master Lease will be subject to adjustment in the form of a rent concession of up to approximately $12 million in each of the first and second years of the Holdco Master Lease, which rent concession is allocated to specific properties in the amount by which such properties are EBITDA negative on a trailing twelve-month basis. If any such EBITDA negative properties are recaptured by the Landlord or terminated by the Tenant, the base rent concession attributable to such property will no longer be applicable.  The Tenant is also responsible for all operating expenses associated with Tenant’s occupancy of the subject properties, including an amount estimated as of the date of the Holdco Master Lease to be approximately $11.5 million of annual reimbursements to Landlord in addition to certain operating expenses to be paid directly by the Tenant, in each instance with no offsetting rent concession.  

Recapture Rights

The Holdco Master Lease, consistent with the 2015 Sears Holdings Master Lease, provides the Company with the right to recapture up to approximately 50% of the space occupied by Tenant at all properties (other than the five Tenant 100% Occupancy Properties described below).  Upon exercise of any 50% recapture right, consistent with the 2015 Sears Holdings Master Lease, the Landlord will generally incur certain costs and expenses for the separation of the recaptured space from the remaining Tenant space and can reconfigure and rent the recaptured space to diversified, tenants on potentially superior terms determined by the Landlord and for its own account.

Additionally, in contrast to the 2015 Sears Holdings Master Lease, which permitted the Landlord to recapture 100% of 21 specified properties (out of the 224 properties originally leased under the 2015 Sears Holdings Master Lease) upon payment of a specified lease recapture payment, the Holdco Master Lease provides the Landlord with the right, beginning in the second year of the term of the Holdco Master Lease, to recapture 100% of the space occupied by the Tenant at any of the properties included in the Holdco Master Lease (other than the five Tenant 100% Occupancy Properties described below) without making a specified lease recapture payment


to the Tenant.  The right to recapture 100% of any property is limited to 10 properties in each year of the Holdco Master Lease term, with carry-over rights if less than 10 properties are recaptured in any year of the Holdco Master Lease Term.  In the event of a 100% recapture of a property (or termination of a property by Tenant pursuant to which Tenant pays a termination fee) and any subsequent re-development of such property for retail purposes, if the property has store space that is suitable for a 10,000 – 20,000 square foot Sears or Kmart store, Tenant will have the right of first offer to lease such space at either (x) the same per square foot rent for such property under the Holdco Master Lease if the space is delivered in a “cold dark shell” condition or (y) if Landlord provides a market tenant allowance, the lesser of (1) the market rent for such space or (2) 200% of the per square foot rent for such property under the Holdco Master Lease, with such election being at Landlord’s discretion.  If Landlord does not provide Tenant with a right of first offer on at least one-third of any such properties that are either recaptured 100% by Landlord or terminated by Tenant (with payment of a termination fee) in a given lease year, then Landlord’s right to exercise 100% recaptures is subject to payment of a recapture fee until such time as Landlord has complied with the foregoing ratio.  

In addition, consistent with the 2015 Sears Holdings Master Lease, the Landlord under the Holdco Master Lease will have the right to recapture any automotive care centers which are free-standing or attached as “appendages” to the properties, all outparcels or outlots and certain portions of parking areas and common areas.  

In contrast to the 2015 Sears Holdings Master Lease, the Landlord is not permitted under the Holdco Master Lease to recapture either 50% or 100% of five specified properties located in Puerto Rico and California (collectively, the “Tenant 100% Occupancy Properties”); however, Landlord is still permitted to recapture any outparcels or outlots and certain portions of parking areas and common areas at these five properties. As is the case with all properties under the Holdco Master Lease, and consistent with the terms of the 2015 Sears Holdings Master Lease, the Tenant is generally prohibited from subleasing any space demised under the Holdco Master Lease, including at the five Tenant 100% Occupancy Properties.  

Tenant Termination Rights

Under the terms of the Holdco Master Lease, the Tenant has the right, at any time, to terminate the Holdco Master Lease with respect to any property upon the payment of a termination fee equal to one year of base rent plus annual taxes and other operating expenses, without the requirement that such property is EBITDA negative as was required under the 2015 Sears Holdings Master Lease.  Additionally, unlike the 2015 Sears Holdings Master Lease, beginning in the second year of the term of the Holdco Master Lease, the Tenant has the right to terminate without payment of a termination fee: (i) up to 16 properties in the second year of the Holdco Master Lease term, (ii) up to 12 properties in the third year of the Holdco Master Lease term, (iii) up to 10 properties in the fourth year of the Holdco Master Lease term, and (iv) thereafter, the remaining properties, in each instance with carry over rights if less than the maximum permitted number of properties are terminated in any lease year.  

Other Provisions

Consistent with the 2015 Sears Holdings Master Lease, Tenant is obligated to continuously operate a Sears or Kmart store (or such store as may be re-branded and/or used for other retail uses pursuant to the Holdco Master Lease) of a minimum size specified in the Holdco Master Lease on each of the properties where such stores operate currently (except for reasonable periods required for alterations or restoration of damage), subject to the recapture and termination rights provided above. The Holdco Master Lease also contains customary provisions contained in master triple net leases governing the leasing of retail properties, including, among others, with respect to maintenance, restoration (and certain termination rights) in the event of casualty and condemnation, cross-default with respect to each property in the Holdco Master Lease, indemnification and assumption of risk of loss, alterations and insurance. The Holdco Master Lease contains customary provisions for the protection of mortgagees, including a provision requiring the parties to enter into a subordination, non-disturbance and attornment agreement.

Mr. Edward S. Lampert, the Company’s Chairman, is the sole stockholder, chief executive officer and director of ESL Investments, Inc., which controls Transform SR Operations LLC and Transform KM Operations LLC. The terms of the Holdco Master Lease were approved by the Company’s Audit Committee and the Company’s Board of Trustees (with Mr. Edward S. Lampert recusing himself).

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that could cause or contribute to such differences include, but are not limited to: our material exposure to Sears Holdings and the effects of its previously announced bankruptcy filing; Sears Holdings’ termination and other rights under its master lease with us; competition in the real estate and retail industries; risks


relating to our recapture and redevelopment activities; contingencies to the commencement of rent under leases; the terms of our indebtedness; restrictions with which we are required to comply in order to maintain REIT status and other legal requirements to which we are subject; failure to achieve expected occupancy and/or rent levels within the projected time frame or at all; and our relatively limited history as an operating company.  For additional discussion of these and other applicable risks, assumptions and uncertainties, see the “Risk Factors” and forward-looking statement disclosure contained in our filings with the Securities and Exchange Commission, including the risk factors relating to Sears Holdings.  While we believe that our forecasts and assumptions are reasonable, we caution that actual results may differ materially.  We intend the forward-looking statements to speak only as of the time made and do not undertake to update or revise them as more information becomes available, except as required by law.

Item 2.02

Results of Operations and Financial Condition.

On February 28, 2019, Seritage Growth Properties issued a press release regarding its financial results for the year ended December 31, 2018. A copy of the press release is furnished as Exhibit 99.1 to this report.

In addition, on February 28, 2019, Seritage Growth Properties published certain supplementary financial information relating to the quarter ended December 31, 2018.  Such information is furnished as Exhibit 99.2 to this report.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits

 

 


SIGNATURE

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.

 

SERITAGE GROWTH PROPERTIES 

 

By:

 

/s/ Matthew Fernand

 

 

Matthew Fernand

 

 

Executive Vice President, General

Counsel & Secretary

 

Date: February 28, 2019

 

EX-99.1 2 srg-ex991_6.htm EX-99.1 srg-ex991_6.htm

Exhibit 99.1

 

Seritage Growth Properties Reports Fourth Quarter and Full Year 2018 Operating Results

– Signed new leases totaling 3.1 million square feet at an average re-leasing multiple of 3.9x –

– Ended year with nearly $1.0 billion of cash on hand and committed capital –

– Subsequent to year end, signed a master lease with successor to Sears Holdings for 51 locations –

New York, NY – February 28, 2019 – Seritage Growth Properties (NYSE: SRG) (the “Company”), a national owner of 232 retail and mixed-use properties totaling approximately 36.3 million square feet of gross leasable area (“GLA”), today reported financial and operating results for the quarter and year ended December 31, 2018.

Summary Financial Results

For the quarter ended December 31, 2018:

Net loss attributable to common shareholders of $56.0 million, or $1.57 per share

Total Net Operating Income (“Total NOI”) of $34.1 million

Funds from Operations (“FFO”) of $7.0 million, or $0.13 per share

Company FFO of ($4.4) million, or ($0.08) per share

For the year ended December 31, 2018:

Net loss attributable to common shareholders of $78.4 million, or $2.20 per share

Total NOI of $143.1 million

FFO of $24.1 million, or $0.43 per share

Company FFO of $15.7 million, or $0.28 per share

“We are very pleased with our fourth quarter performance, which included 878,000 square feet of new leasing at an average re-leasing multiple of 4.0x for space previously occupied by Sears.  Since inception, we have leased nearly 8.0 million square feet at an average re-leasing multiple of 4.1x, and completed or commenced 97 redevelopment projects totaling approximately $1.5 billion of total capital investment with targeted incremental yields of approximately 11% on an unlevered basis,” said Benjamin Schall, President and Chief Executive Officer.  “To fund this transformative redevelopment program, we have maintained access to multiple sources of liquidity and currently have $533 million of cash on hand and a committed $400 million incremental funding facility.  Further, having generated over $230 million in 2018 through the formation of joint ventures and divestiture of smaller market assets, we continue to recycle capital into the highest value creation opportunities in our portfolio.”

Mr. Schall continued, “We have rapidly diversified our tenant base, with over 70% of our annual base rent under lease now derived from diversified, non-Sears tenants (up from 20% at inception).  In February, we signed a new master lease with the successor to Sears Holdings that maintains 51 locations leased to Sears or Kmart, which will become effective following the rejection of the existing Master Lease with Sears Holdings.  The new lease provides Seritage with expanded rights to execute on our redevelopment initiatives. As we look forward, we expect to continue to utilize our platform and expand our relationships with growing retailers, mixed-use developers and institutional capital allocators to further unlock embedded value through our retail redevelopments and larger mixed-use pipeline.”


1


Operating Highlights

Rental Income

During the year ended December 31, 2018, the Company added $45.2 million of new diversified, non-Sears income and increased annual base rent attributable to diversified, non-Sears tenants to 70.9% of total annual base rent from 52.2% as of December 31, 2017, including all signed leases and net of rent attributable to the associated space to be recaptured.

The table below provides a summary of all the Company’s signed leases as of December 31, 2018, including unconsolidated joint ventures presented at the Company’s proportional share:

 

(in thousands except number of leases and PSF data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of

 

 

Leased

 

 

% of Total

 

 

Annual

 

 

% of Total

 

 

Annual

 

Tenant

 

Leases

 

 

GLA

 

 

Leased GLA

 

 

Rent

 

 

Annual Rent

 

 

Rent PSF

 

Sears Holdings (1)(2)

 

 

105

 

 

 

12,619

 

 

 

56.0

%

 

$

61,341

 

 

 

29.1

%

 

$

4.86

 

In-place diversified, non-Sears leases (2)

 

 

236

 

 

 

5,043

 

 

 

22.4

%

 

 

66,200

 

 

 

31.4

%

 

 

13.13

 

SNO diversified, non-Sears leases (2)(3)

 

 

170

 

 

 

4,852

 

 

 

21.6

%

 

 

83,297

 

 

 

39.5

%

 

 

17.17

 

Sub-total diversified, non-Sears leases

 

 

406

 

 

 

9,895

 

 

 

44.0

%

 

 

149,497

 

 

 

70.9

%

 

 

15.11

 

Total

 

 

511

 

 

 

22,514

 

 

 

100.0

%

 

$

210,838

 

 

 

100.0

%

 

$

9.36

 

 

(1)

Number of leases reflects number of properties subject to the 2015 Sears Holdings Master Lease and JV Master Leases.

(2)

Metrics include four properties subject to previously exercised recapture notices and five properties under contract for sale.

(3)

SNO = signed but not yet opened leases.

Leasing

In 2018, the Company signed new leases totaling 3.1 million square feet, representing a 17% increase over 2017 leasing activity, including approximately 878,000 square feet signed in the fourth quarter at an average base rent of $18.03 PSF (retail leases represented 664,000 square feet at an average base rent of $20.98 PSF).

Below is a summary of the Company’s leasing activity, including its proportional share of unconsolidated joint ventures, as of December 31, 2018:

 

(in thousands, except PSF amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Since

 

 

 

Q4 2018

 

 

FY2018

 

 

Inception

 

Leases

 

 

31

 

 

 

119

 

 

$

287

 

Square feet

 

 

878,000

 

 

 

3,055,000

 

 

 

7,885,000

 

Annual base rent

 

$

15,830

 

 

$

45,197

 

 

$

131,164

 

Annual base rent PSF (1)

 

$

20.98

 

 

$

17.30

 

 

$

17.64

 

Re-leasing multiple (1)(2)

 

 

4.0

x

 

 

3.9

x

 

 

4.1

x

 

 

(1)

Reflects retail leases only; excludes certain self storage, auto dealership, medical office and ground leases.

 

(2)

Excludes densification square footage (e.g. new outparcel developments) and backfill of vacant space not previously occupied by Sears.

 


2


Development

In 2018, the Company commenced projects totaling $382 million, including 19 new redevelopments and the expansion of seven previously announced projects. This activity included three new projects representing $65.0 million of capital investment in the fourth quarter.

Below is a summary of the Company’s announced development activity from inception through December 31, 2018, presented at 100% share and including certain assets that have been monetized through sale or joint venture:

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated

 

 

Estimated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated

 

 

Number

 

 

Project

 

 

Development

 

 

Project

 

 

Projected Annual Income (2)

 

 

Incremental

Estimated Project Costs (1)

 

of Projects

 

 

Square Feet

 

 

Costs (1)

 

 

Costs (1)

 

 

Total

 

 

Existing

 

 

Incremental

 

 

Yield (3)

< $10,000

 

 

28

 

 

 

2,182

 

 

$

125,600

 

 

$

127,900

 

 

$

23,400

 

 

$

5,700

 

 

$

17,700

 

 

 

$10,001 - $20,000 (4)

 

 

32

 

 

 

3,721

 

 

 

439,000

 

 

 

458,900

 

 

 

63,100

 

 

 

15,300

 

 

 

47,900

 

 

 

> $20,001

 

 

22

 

 

 

3,738

 

 

 

803,100

 

 

 

861,900

 

 

 

115,100

 

 

 

23,100

 

 

 

91,900

 

 

 

Announced projects

 

 

82

 

 

 

9,641

 

 

$

1,367,700

 

 

$

1,448,700

 

 

$

201,600

 

 

$

44,100

 

 

$

157,500

 

 

10.5-11.5%

Acquired projects

 

 

15

 

 

 

 

 

 

 

63,600

 

 

 

63,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total projects

 

 

97

 

 

 

 

 

 

$

1,431,300

 

 

$

1,512,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Total estimated development costs exclude, and total estimated project costs include, termination fees to recapture 100% of certain properties.

(2)

Projected annual income includes assumptions on stabilized rents to be achieved for space under redevelopment.  There can be no assurance that stabilized rent targets will be achieved.

(3)

Projected incremental annual income divided by total estimated project costs.

(4)

Includes Saugus, MA project which has been temporarily postponed while the Company identifies a new lead tenant.

Transactions

In 2018, the Company contributed its assets in Santa Monica (CA), La Jolla (CA) and West Hartford (CT) into three joint ventures with institutional capital partners representing a total transaction value of $362 million, or $744 PSF, and generated $117.0 million of gross proceeds.

In 2018, the Company also sold 21 properties, primarily those in smaller markets, totaling 2.1 million square feet that generated gross proceeds of $114.3 million, or $54 PSF. These transactions included five dispositions in the fourth quarter that generated gross proceeds of $47.3 million, or $78 PSF.

Balance Sheet

On July 31, 2018, the Company entered into a new $2.0 billion term loan facility with Berkshire Hathaway Life Insurance Company (the “Term Loan Facility”).  The Term Loan Facility, which matures on July 31, 2023, provided for an initial funding of $1.6 billion at closing and includes a committed $400 million incremental funding facility (subject to certain conditions).

The Company used a portion of the proceeds from the initial funding to fully repay its outstanding mortgage loan and unsecured term loan.  The Company expects the remaining proceeds from the initial funding, as well as borrowings under the incremental funding facility, will be used to fund the Company’s redevelopment pipeline and to pay operating expenses of the Company and its subsidiaries.

As of December 31, 2018, the Company had nearly $1.0 billion of identified liquidity, including $532.9 million of cash on the balance sheet, the $400 million incremental funding facility (subject to certain conditions) and assets under contract for sale for anticipated gross proceeds of $59.8 million (assets under contract for sale are subject to customary closing conditions and there can be no assurance that such transactions will be consummated).

The Term Loan Facility includes certain financial metrics, including fixed charge coverage ratios, leverage ratios and a minimum net worth, that could be negatively impacted by a loss of revenue from Sears Holdings, including if the 2015 Sears Holdings Master Lease is rejected and the Holdco Master Lease becomes effective. A failure to satisfy any of these financial metrics will require the Company to seek lender approval to monetize assets via sale or joint venture and also provide the lender the right to request mortgages on its real estate collateral.  The failure to satisfy any of these financial metrics will not result in an event of default, mandatory amortization, cash flow sweep or any similar provision.

3


Dividends

On October 23, 2018, the Company’s Board of Trustees declared a fourth quarter common stock dividend of $0.25 per each Class A and Class C common share.  The common dividend was paid on January 10, 2019 to shareholders of record on December 31, 2018.  Holders of units in Seritage Growth Properties, L.P. (the “Operating Partnership”) were entitled to an equal distribution per each Operating Partnership unit held on December 31, 2018.  On October 23, 2018, the Company’s Board of Trustees also declared a preferred stock dividend of $0.4375 per each Series A Preferred Share.  The preferred dividend was paid on January 14, 2019 to holders of record on December 31, 2018.

On February 20, 2019, the Company’s Board of Trustees declared a first quarter common stock dividend of $0.25 per each Class A and Class C common share.  The common dividend will be paid on April 11, 2019 to shareholders of record on March 29, 2019.  Holders of units in the Operating Partnership are entitled to an equal distribution per each Operating Partnership unit held on March 29, 2019.  On February 20, 2019, the Company’s Board of Trustees also declared a preferred stock dividend of $0.4375 per each Series A Preferred Share.  The preferred dividend will be paid on April 15, 2019 to holders of record on March 29, 2019.

The Company has announced that the Board of Trustees does not currently expect to declare additional common dividends for the remainder of 2019, based on its assessment of the Company’s investment opportunities and its expectations of taxable income for the year.  The Board of Trustees will reevaluate this position at the end of 2019, if necessary, to ensure that the Company meets its distribution requirements as a REIT.  The Company has also announced that the Board of Trustees expects that cash dividends for the Company’s preferred shares will continue to be paid each quarter.

Sears Holdings Bankruptcy and Holdco Master Lease

On October 15, 2018, Sears Holdings and certain of its affiliates filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) with the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). On February 11, 2019, Transform Holdco LLC (“Holdco”), an affiliate of ESL Investments, Inc., completed the acquisition of an approximately 425-store retail footprint and other assets and component businesses of Sears Holdings on a going-concern basis.

On February 28, 2019, the Company entered into a master lease with affiliates of Holdco (the “Holdco Master Lease”) comprising 51 of the Company’s wholly-owned properties that remained subject to the master lease with Sears Holdings (the “2015 Sears Holdings Master Lease”) at the time Sears Holdings filed for bankruptcy protection.

A condition to the performance and obligations provided for in the Holdco Master Lease is the rejection of the 2015 Sears Holdings Master Lease.  The 2015 Sears Holdings Master Lease will be rejected if either (i) the Bankruptcy Court issues an order approving the rejection of the 2015 Sears Holdings Master Lease or (ii) the 2015 Sears Holdings Master Lease is deemed to be rejected pursuant to the operation of the Bankruptcy Code.  As a result of this condition, there can be no assurance as to the commencement of our and Holdco’s performance and obligations provided for in the Holdco Master Lease and/or the timing thereof.

The Holdco Master Lease, as executed, contains terms that are similar to the 2015 Sears Holdings Master Lease with the addition of certain enhanced landlord recapture and tenant termination rights.  Additional information regarding the Holdco Master Lease can be found in the Form 8-K filed with the Securities and Exchange Commission on February 28, 2019.

Financial Results

Below is a summary of the Company’s financial results for the quarter and year ended December 31, 2018 and December 31, 2017:

 

(in thousands except per share amounts)

 

Quarter Ended December 31,

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net loss attributable to common shareholders

 

$

(56,038

)

 

$

(43,456

)

 

$

(78,375

)

 

$

(73,999

)

Net loss per share attributable to common shareholders

 

 

(1.57

)

 

 

(1.27

)

 

 

(2.20

)

 

 

(2.19

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total NOI

 

 

34,055

 

 

 

39,560

 

 

 

143,107

 

 

 

174,758

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

 

7,009

 

 

 

11,131

 

 

 

24,111

 

 

 

91,690

 

FFO per share

 

 

0.13

 

 

 

0.20

 

 

 

0.43

 

 

 

1.65

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company FFO

 

 

(4,438

)

 

 

11,522

 

 

 

15,746

 

 

 

81,797

 

Company FFO per share

 

 

(0.08

)

 

 

0.21

 

 

 

0.28

 

 

 

1.47

 


4


Net Loss

Net loss for both the quarter and year ended December 31, 2018 include significant depreciation and amortization expense related to the accelerated amortization of certain lease intangibles as a result of the recapture of space from, or the termination of space by, Sears Holdings, and the demolition of certain buildings for redevelopment.  The quarter and year ended December 31, 2018 also included additional accelerated amortization of certain lease intangibles as a result of Sears Holdings’ bankruptcy filing.

Total NOI

The decrease in Total NOI for both the quarter and year ended December 31, 2018 was driven primarily by reduced rental income under the 2015 Sears Holdings Master Lease as a result of recapture and termination activity at our properties.  In addition, the Company sold 21 wholly-owned properties and 50% interests in three wholly-owned properties in 2018, which contributed to the decrease in Total NOI.

Since inception, nearly 20.0 million square feet of leased space, representing approximately $80.0 million of annual base rent, has been, or will be, taken offline through recapture and termination activity. To date, the Company has signed new leases with diversified, non-Sears tenants for an aggregate annual base rent of $131.2 million across 7.9 million square feet of space. A majority of these newly signed leases are categorized as SNO leases and are expected to begin paying rent throughout the next 24 months.

FFO and Company FFO

The decrease in FFO and Company FFO for both the quarter and year ended December 31, 2018 were driven by the same factors driving the decrease in Total NOI, as well (i) lower straight-line rent as a result of recapture and termination activity at our properties, (ii) the write-off of certain straight-line rent receivables as a result of Sears Holdings’ bankruptcy filing, (iii) higher interest expense resulting from our debt refinancing in the third quarter of 2018, and (iv) dividends related to the $70 million preferred equity raise that was completed late in the fourth quarter of 2017.  In addition, FFO for the quarter ended December 31, 2018 included higher termination fee income which partially offset the other factors driving the decrease in FFO, and both FFO and Company FFO for the year ended December 31, 2018 were impacted by higher G&A expenses, including personnel costs related to our growing platform and certain legal and advisory costs related to Sears Holdings’ bankruptcy filing.

Portfolio Summary

Below is a summary of the Company’s portfolio as December 31, 2018:

 

 

 

Wholly Owned

 

 

Unconsolidated

 

 

 

 

 

 

 

Portfolio

 

 

Joint Ventures

 

 

Total

 

Properties

 

 

206

 

 

 

26

 

 

 

232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Malls

 

 

94

 

 

 

24

 

 

 

118

 

Strip centers and freestanding

 

 

112

 

 

 

2

 

 

 

114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GLA (at share) (000s)

 

 

31,602

 

 

 

2,348

 

 

 

33,950

 

% leased

 

 

65.6

%

 

 

76.4

%

 

 

66.3

%

The unleased space as of December 31, 2018 included approximately 2.5 million SF of remaining lease-up at announced redevelopment projects, and approximately 8.9 million SF of additional leasing opportunity at properties throughout the Company’s portfolio.


5


Announced Development Projects

As of December 31, 2018, the Company had originated 82 redevelopment projects since the Company’s inception.  These projects represent an estimated total investment of $1.45 billion ($1.37 billion at share), of which an estimated $907 million ($849 million at share) remains to be spent, and are expected to generate an incremental yield on cost of approximately 11.0%.

The tables below provide brief descriptions of each of the redevelopment projects originated on the Company’s platform since its inception, including certain assets that have been monetized through sale or joint venture:

 

Total Project Costs under $10 Million

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Estimated

 

Estimated

 

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

Construction

 

Substantial

Property

 

Description

 

Square Feet

 

 

Start

 

Completion

King of Prussia, PA

 

Repurpose former auto center space for Outback Steakhouse, Yard House and small shop retail

 

 

29,100

 

 

Complete

Merrillville, IN

 

Termination property; redevelop existing store for At Home and small shop retail

 

 

132,000

 

 

Complete

Elkhart, IN

 

Termination property; existing store has been released to Big R Stores

 

 

86,500

 

 

Complete

Bowie, MD

 

Recapture and repurpose auto center space for BJ's Brewhouse

 

 

8,200

 

 

Complete

Troy, MI

 

Partial recapture; redevelop existing store for At Home

 

 

100,000

 

 

Complete

Rehoboth Beach, DE

 

Partial recapture; redevelop existing store for andThat! and PetSmart

 

 

56,700

 

 

Complete

Henderson, NV

 

Termination property; redevelop existing store for At Home, Seafood City, Blink Fitness and additional retail

 

 

144,400

 

 

Complete

Cullman, AL

 

Termination property; redevelop existing store for Bargain Hunt, Tractor Supply and Planet Fitness

 

 

99,000

 

 

Complete

Jefferson City, MO

 

Termination property; redevelop existing store for Orscheln Farm and Home

 

 

96,000

 

 

Complete

Guaynabo, PR

 

Partial recapture; redevelop existing store for Planet Fitness, Capri and additional retail and restaurants

 

 

56,100

 

 

Complete

Ft. Wayne, IN

 

Site densification (project expansion); new outparcels for BJ's Brewhouse and Chick-Fil-A

 

 

12,000

 

 

Complete

Westwood, TX

 

Termination property; site has been leased to Sonic Automotive and will be repurposed as an auto dealership

 

 

213,600

 

 

Complete

Albany, NY

 

Recapture and repurpose auto center space for BJ's Brewhouse, Ethan Allen and additional small shop retail

 

 

28,000

 

 

Substantially complete

Kearney, NE

 

Termination property; redevelop existing store for Marshall's, PetSmart, Ross Dress for Less and Five Below

 

 

92,500

 

 

Substantially complete

Dayton, OH

 

Recapture and repurpose auto center space for Outback Steakhouse and additional restaurants

 

 

14,100

 

 

Substantially complete

Florissant, MO

 

Site densification; new outparcel for Chick-Fil-A

 

 

5,000

 

 

Delivered to tenant

St. Clair Shores, MI

 

100% recapture; demolish existing store and develop site for new Kroger grocery store

 

 

107,200

 

 

Delivered to tenant

Hagerstown, MD

 

Recapture and repurpose auto center space for BJ's Brewhouse, Verizon and additional retail

 

 

15,400

 

 

Sold

New Iberia, LA

 

Termination property; redevelop existing store for Ross Dress for Less, Rouses Supermarkets, Hobby Lobby and small shop retail

 

 

93,100

 

 

Underway

 

Q1 2019

North Little Rock, AR

 

Recapture and repurpose auto center space for LongHorn Steakhouse and additional small shop retail

 

 

17,300

 

 

Underway

 

Q2 2019

Hopkinsville, KY

 

Termination property; redevelop existing store for Bargain Hunt, Farmer's Furniture, Harbor Freight Tools and small shop retail

 

 

87,900

 

 

Underway

 

Q2 2019

Mt. Pleasant, PA

 

Termination property; redevelop existing store for Aldi, Big Lots and additional retail

 

 

86,300

 

 

Underway

 

Q3 2019

Oklahoma City, OK

 

Site densification; new fitness center for Vasa Fitness

 

 

59,500

 

 

Underway

 

Q3 2019

Gainesville, FL

 

Termination property; repurpose existing store as office space for Florida Clinical Practice Association / University of Florida College of Medicine

 

 

139,100

 

 

Underway

 

Q4 2019

Layton, UT

 

Termination property; a portion of the space has been leased to Extra Space Storage and will be repurposed as self storage; existing tenants include Vasa Fitness and small shop retail

 

 

172,100

 

 

Q1 2019

 

Q2 2019

Hampton, VA

 

Site densification; new outparcel for  Chick-fil-A

 

 

2,200

 

 

Sold

Houston, TX

 

100% recapture; entered into ground lease with adjacent mall with potential to participate in future redevelopment

 

 

214,400

 

 

Q1 2019

 

Q2 2019

Hialeah, FL

 

Recapture and repurpose auto center space for restaurants and small shop retail

 

 

14,000

 

 

Q2 2019

 

Q1 2020

6


 

Total Project Costs $10 - $20 Million

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Estimated

 

Estimated

 

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

Construction

 

Substantial

Property

 

Description

 

Square Feet

 

 

Start

 

Completion

Braintree, MA

 

100% recapture; redevelop existing store for Nordstrom Rack, Saks OFF 5th and additional retail

 

 

90,000

 

 

Complete

Honolulu, HI

 

100% recapture; redevelop existing store for Longs Drugs (CVS), PetSmart and Ross Dress for Less

 

 

79,000

 

 

Complete

Anderson, SC

 

100% recapture (project expansion); redevelop existing store for Burlington Stores, Gold's Gym, Sportsman's Warehouse, additional retail and restaurants

 

 

111,300

 

 

Complete

Madison, WI

 

Partial recapture; redevelop existing store for Dave & Busters, Total Wine & More, additional retail and restaurants

 

 

75,300

 

 

Substantially complete

Orlando, FL

 

100% recapture; demolish and construct new buildings for Floor & Decor, Orchard Supply Hardware, LongHorn Steakhouse, Mission BBQ, Olive Garden and additional small shop retail and restaurants

 

 

139,200

 

 

Substantially complete

Paducah, KY

 

Termination property; redevelop existing store for Burlington Stores, Ross Dress for Less and additional retail

 

 

102,300

 

 

Substantially complete

Springfield, IL

 

Termination property; redevelop existing store for Burlington Stores, Binny's Beverage Depot, Marshall's, Orangetheory Fitness, Outback Steakhouse, CoreLife Eatery and additional small shop retail

 

 

133,400

 

 

Substantially complete

Thornton, CO

 

Termination property; redevelop existing store for Vasa Fitness and additional junior anchors

 

 

191,600

 

 

Substantially complete

Cockeysville, MD

 

Partial recapture; redevelop existing store for HomeGoods, Michael's Stores, additional junior anchors and restaurants

 

 

83,500

 

 

Substantially complete

Warwick, RI

 

Termination property (project expansion); redevelop existing store and detached auto center for At Home, BJ's Brewhouse, Raymour & Flanigan, additional retail and restaurants

 

 

190,700

 

 

Substantially complete

Salem, NH

 

Densify site with new theatre for Cinemark and recapture and repurpose auto center for restaurant space to join existing tenant Dick's Sporting Goods

 

 

71,200

 

 

Delivered to tenants

Fairfax, VA

 

Partial recapture; redevelop existing store and attached auto center for Dave & Busters, additional junior anchors and restaurants

 

 

110,300

 

 

Delivered to tenants

Temecula, CA

 

Partial recapture; redevelop existing store and detached auto center for Round One, small shop retail and restaurants

 

 

65,100

 

 

Delivered to tenant

Hialeah, FL

 

100% recapture; redevelop existing store for Bed, Bath & Beyond, Ross Dress for Less and dd's Discounts to join current tenant, Aldi

 

 

88,400

 

 

Delivered to tenants

Santa Cruz, CA

 

Partial recapture; redevelop existing store for TJ Maxx, HomeGoods and additional junior anchors

 

 

62,200

 

 

Sold

North Hollywood, CA

 

Partial recapture; redevelop existing store for Burlington Stores and Ross Dress for Less

 

 

79,800

 

 

Underway

 

Q1 2019

North Miami, FL

 

100% recapture; redevelop existing store for Blink Fitness, Burlington Stores, Michael's and Ross Dress for Less

 

 

124,300

 

 

Underway

 

Q2 2019

Canton, OH

 

Partial recapture; redevelop existing store for Dave & Busters and restaurants

 

 

83,900

 

 

Underway

 

Q2 2019

North Riverside, IL

 

Partial recapture; redevelop existing store and detached auto center for Blink Fitness, Round One, additional junior anchors, small shop retail and restaurants

 

 

103,900

 

 

Underway

 

Q2 2019

Olean, NY

 

Termination property (project expansion); redevelop existing store for Marshall's, Ollie's Bargain Basement and additional retail

 

 

125,700

 

 

Underway

 

Q2 2019

West Jordan, UT

 

Termination property (project expansion); redevelop existing store and attached auto center for At Home, Burlington Stores and additional retail

 

 

190,300

 

 

Underway

 

Q2 2019

Las Vegas, NV

 

Partial recapture; redevelop existing store for Round One and additional retail

 

 

78,800

 

 

Underway

 

Q3 2019

Roseville, MI

 

Termination property (project expansion); redevelop existing store for At Home, Hobby Lobby, Chick-fil-A and additional retail

 

 

369,800

 

 

Underway

 

Q3 2019

Yorktown Heights, NY

 

Partial recapture; redevelop existing store for 24 Hour Fitness and retail uses

 

 

85,200

 

 

Underway

 

Q4 2019

Charleston, SC

 

100% recapture (project expansion); redevelop existing store and detached auto center for Burlington Stores and additional retail

 

 

126,700

 

 

Underway

 

Q4 2019

Chicago, IL (Kedzie)

 

Termination property; redevelop existing store for Ross Dress for Less, dd's Discounts, Blink Fitness and additional retail

 

 

123,300

 

 

Underway

 

Q4 2019

El Paso, TX

 

Termination property; redevelop existing store for Ross Dress for Less, dd's Discounts and additional retail

 

 

114,700

 

 

Underway

 

Q4 2019

Warrenton, VA

 

Termination property; redevelop existing store for HomeGoods and additional retail

 

 

97,300

 

 

Q1 2019

 

Q3 2019

Pensacola, FL

 

Termination property; redevelop existing store for BJ's Wholesale, additional retail and restaurants

 

 

134,700

 

 

Q1 2019

 

Q1 2020

Vancouver, WA

 

Partial recapture; redevelop existing store for Round One, Hobby Lobby and additional retail and restaurants

 

 

72,400

 

 

Q1 2019

 

Q2 2020

Manchester, NH

 

Termination property; redevelop existing store for Dick's Sporting Goods, Dave & Busters, additional retail and restaurants

 

 

117,700

 

 

Q3 2019

 

Q3 2020

Saugus, MA

 

Partial recapture; redevelop existing store and detached auto center (note: temporarily postponed while the Company identifies a new lead tenant)

 

 

99,000

 

 

To be determined

7


 

Total Project Costs over $20 Million

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Estimated

 

Estimated

 

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

Construction

 

Substantial

Property

 

Description

 

Square Feet

 

 

Start

 

Completion

Memphis, TN

 

100% recapture; demolish and construct new buildings for LA Fitness, Nordstrom Rack, Ulta Beauty, Hopdoddy Burger Bar and additional junior anchors, restaurants and small shop retail

 

 

135,200

 

 

Complete

St. Petersburg, FL

 

100% recapture; demolish and construct new buildings for Dick's Sporting Goods, Lucky's Market, PetSmart, Five Below, Chili's Grill & Bar, Pollo Tropical, LongHorn Steakhouse, Verizon and additional small shop retail and restaurants

 

 

142,400

 

 

Complete

West Hartford, CT

 

100% recapture; redevelop existing store and detached auto center for buybuyBaby, Cost Plus World Market, REI, Saks OFF Fifth, other junior anchors, Shake Shack and additional small shop retail (note: contributed to West Hartford JV in Q2 2018)

 

 

147,600

 

 

Substantially complete

Wayne, NJ

 

Partial recapture (project expansion); redevelop existing store and detached auto center for Cinemark, Dave & Busters and additional junior anchors and restaurants (note: contributed to GGP II JV in Q3 2017)

 

 

156,700

 

 

Delivered to tenant

Carson, CA

 

100% recapture (project expansion); redevelop existing store for Burlington Stores, Ross Dress for Less, Gold's Gym and additional retail

 

 

163,800

 

 

Underway

 

Q1 2019

Watchung, NJ

 

100% recapture; demolish full-line store and detached auto center and construct new buildings for Cinemark, HomeSense, Sierra Trading Post, Ulta Beauty, Chick-fil-A, small shop retail and additional restaurants

 

 

126,700

 

 

Underway

 

Q2 2019

Austin, TX

 

100% recapture (project expansion); redevelop existing store for AMC Theatres, additional junior anchors and restaurants

 

 

177,400

 

 

Underway

 

Q3 2019

El Cajon, CA

 

100% recapture; redevelop existing store and auto center for Ashley Furniture, Bob's Discount Furniture, Burlington Stores and additional retail and restaurants; a portion of the space has been leased to Extra Space Storage and will be repurposed as self storage

 

 

242,700

 

 

Underway

 

Q3 2019

Anchorage, AK

 

100% recapture; redevelop existing store for Guitar Center, Safeway, Planet Fitness and additional retail to join current tenant, Nordstrom Rack

 

 

142,500

 

 

Underway

 

Q4 2019

Aventura, FL

 

100% recapture; demolish existing store and construct new, multi-level open air retail destination featuring a leading collection of experiential shopping, dining and entertainment concepts alongside a treelined esplanade and activated plazas

 

 

216,600

 

 

Underway

 

Q4 2019

East Northport, NY

 

Termination property; redevelop existing store and attached auto center for AMC Theatres, 24 Hour Fitness, Floor & Decor and small shop retail

 

 

179,700

 

 

Underway

 

Q4 2019

Greendale, WI

 

Termination property; redevelop existing store and attached auto center for Dick's Sporting Goods, Round One, TJ Maxx, additional retail and restaurants

 

 

223,800

 

 

Underway

 

Q4 2019

Reno, NV

 

100% recapture; redevelop existing store and auto center for Round One and additional retail

 

 

169,800

 

 

Underway

 

Q4 2019

San Diego, CA

 

100% recapture; redevelop existing store into two highly-visible, multi-level buildings with exterior facing retail space leased to Equinox Fitness and a premier mix of experiential shopping, dining, and entertainment concepts (note: contributed to UTC JV in Q2 2018)

 

 

206,000

 

 

Underway

 

Q4 2019

Santa Monica, CA

 

100% recapture; redevelop existing building into premier, mixed-use asset featuring unique, small-shop retail and creative office space (note: contributed to Mark 302 JV in Q1 2018)

 

 

96,500

 

 

Underway

 

Q4 2019

Tucson, AZ

 

100% recapture; redevelop existing store and auto center for Round One and additional retail

 

 

224,300

 

 

Underway

 

Q4 2019

Fairfield, CA

 

100% recapture (project expansion); redevelop existing store and auto center for Dave & Busters, AAA Auto Repair Center and additional retail

 

 

146,500

 

 

Underway

 

Q1 2020

Roseville, CA

 

Termination property (project expansion): redevelop existing store and auto center for Cinemark, Round One, AAA Auto Repair Center, additional retail and restaurants

 

 

147,400

 

 

Underway

 

Q2 2020

Plantation, FL

 

100% recapture (project expansion); redevelop existing store and auto center for GameTime, Powerhouse Gym, additional retail and restaurants

 

 

184,400

 

 

Underway

 

Q1 2020

San Antonio, TX

 

Termination property (project expansion); redevelop existing store for Bed Bath & Beyond, buybuyBaby, Tru Fit and additional retail to complement repurposed auto center occupied by Orvis, Jared's Jeweler and Shake Shack

 

 

215,900

 

 

Q1 2019

 

Q2 2020

Asheville, NC

 

100% recapture; redevelop existing store and auto center for Alamo Drafthouse, restaurants and small shop retail

 

 

110,600

 

 

Q1 2019

 

Q3 2020

Orland Park, IL

 

100% recapture; redevelop existing store for AMC Theatres, 24 Hour Fitness, additional retail and restaurants

 

 

181,900

 

 

Q3 2019

 

Q4 2020

 

 

8


Supplemental Report

A Supplemental Report will be available in the Investors section of the Company’s website, www.seritage.com.

Non-GAAP Financial Measures

The Company makes reference to NOI, Total NOI, FFO and Company FFO which are financial measures that include adjustments to accounting principles generally accepted in the United States (“GAAP”).

None of NOI, Total NOI, FFO or Company FFO, are measures that (i) represent cash flow from operations as defined by GAAP; (ii) are indicative of cash available to fund all cash flow needs, including the ability to make distributions; (iii) are alternatives to cash flow as a measure of liquidity; or (iv) should be considered alternatives to net income (which is determined in accordance with GAAP) for purposes of evaluating the Company’s operating performance.  Reconciliations of these measures to the respective GAAP measures we deem most comparable have been provided in the tables accompanying this press release.

Net Operating Income ("NOI”), Total NOI and Annualized Total NOI

NOI is defined as income from property operations less property operating expenses.  The Company believes NOI provides useful information regarding Seritage, its financial condition, and results of operations because it reflects only those income and expense items that are incurred at the property level.

The Company also uses Total NOI, which includes its proportional share of unconsolidated properties.  This form of presentation offers insights into the financial performance and condition of the Company as a whole given the Company’s ownership of unconsolidated properties that are accounted for under GAAP using the equity method.  The Company also considers Total NOI to be a helpful supplemental measure of its operating performance because it excludes from NOI variable items such as termination fee income, as well as non-cash items such as straight-line rent and amortization of lease intangibles.

Annualized Total NOI is an estimate, as of the end of the reporting period, of the annual Total NOI to be generated by the Company’s portfolio including all signed leases and modifications to the Company’s master lease with Sears Holdings with respect to recaptured space.   We calculate Annualized Total NOI by adding or subtracting current period adjustments for leases that commenced or expired during the period to Total NOI (as defined) for the period and annualizing, and then adding estimated annual Total NOI attributable to SNO leases and subtracting estimated annual Total NOI attributable to Sears Holdings’ space to be recaptured.

Annualized Total NOI is a forward-looking non-GAAP measure for which the Company does not believe it can provide reconciling information to a corresponding forward-looking GAAP measure without unreasonable effort.

Funds from Operations ("FFO") and Company FFO

FFO is calculated in accordance with NAREIT which defines FFO as net income computed in accordance with GAAP, excluding gains (or losses) from property sales, real estate related depreciation and amortization, and impairment charges on depreciable real estate assets.  The Company considers FFO a helpful supplemental measure of the operating performance for equity REITs and a complement to GAAP measures because it is a recognized measure of performance by the real estate industry.  

The Company makes certain adjustments to FFO, which it refers to as Company FFO, to account for certain non-cash and non-comparable items, such as termination fee income, unrealized loss on interest rate cap, litigation charges, acquisition-related expenses, amortization of deferred financing costs and certain up-front-hiring and personnel costs, that it does not believe are representative of ongoing operating results.  The Company previously referred to this metric as Normalized FFO; the definition and calculation remain the same.

9


Forward-Looking Statements

This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the company’s control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that could cause or contribute to such differences include, but are not limited to: our material exposure to Sears Holdings and the effects of its previously announced bankruptcy filing; Sears Holdings’ termination and other rights under its master lease with us; competition in the real estate and retail industries; risks relating to our recapture and redevelopment activities; contingencies to the commencement of rent under leases; the terms of our indebtedness; restrictions with which we are required to comply in order to maintain REIT status and other legal requirements to which we are subject; and our relatively limited history as an operating company.  For additional discussion of these and other applicable risks, assumptions and uncertainties, see the “Risk Factors” and forward-looking statement disclosure contained in our filings with the Securities and Exchange Commission, including the risk factors relating to Sears Holdings.  While we believe that our forecasts and assumptions are reasonable, we caution that actual results may differ materially.  We intend the forward-looking statements to speak only as of the time made and do not undertake to update or revise them as more information becomes available, except as required by law.

About Seritage Growth Properties

Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 206 wholly-owned properties and 26 joint venture properties totaling approximately 36.3 million square feet of space across 48 states and Puerto Rico.  The Company was formed to unlock the underlying real estate value of a high-quality retail portfolio it acquired from Sears Holdings in July 2015.  Pursuant to a master lease, the Company has the right to recapture certain space from Sears Holdings for retenanting or redevelopment purposes.  The Company’s mission is to create and own revitalized shopping, dining, entertainment and mixed-use destinations that provide enriched experiences for consumers and local communities, and create long-term value for our shareholders.

Contact

Seritage Growth Properties

646-277-1268

IR@Seritage.com

10


Seritage Growth Properties

Consolidated Balance SheetS

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

December 31, 2018

 

 

December 31, 2017

 

ASSETS

 

 

 

 

 

 

 

 

Investment in real estate

 

 

 

 

 

 

 

 

Land

 

$

696,792

 

 

$

799,971

 

Buildings and improvements

 

 

900,173

 

 

 

829,168

 

Accumulated depreciation

 

 

(137,947

)

 

 

(139,483

)

 

 

 

1,459,018

 

 

 

1,489,656

 

Construction in progress

 

 

292,049

 

 

 

224,904

 

Net investment in real estate

 

 

1,751,067

 

 

 

1,714,560

 

Real estate held for sale

 

 

3,094

 

 

 

 

Investment in unconsolidated joint ventures

 

 

398,577

 

 

 

282,990

 

Cash and cash equivalents

 

 

532,857

 

 

 

241,569

 

Restricted cash

 

 

 

 

 

175,665

 

Tenant and other receivables, net

 

 

36,926

 

 

 

30,787

 

Lease intangible assets, net

 

 

123,656

 

 

 

310,098

 

Prepaid expenses, deferred expenses and other assets, net

 

 

29,899

 

 

 

20,148

 

Total assets

 

$

2,876,076

 

 

$

2,775,817

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Term loan facility, net

 

$

1,598,053

 

 

$

 

Mortgage loans payable, net

 

 

 

 

 

1,202,314

 

Unsecured term loan, net

 

 

 

 

 

143,210

 

Accounts payable, accrued expenses and other liabilities

 

 

127,565

 

 

 

109,433

 

Total liabilities

 

 

1,725,618

 

 

 

1,454,957

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

 

 

Class A common shares $0.01 par value; 100,000,000 shares authorized;

   35,667,521 and 32,415,734 shares issued and outstanding

   as of December 31, 2018 and December 31, 2017, respectively

 

 

357

 

 

 

324

 

Class B common shares $0.01 par value; 5,000,000 shares authorized;

   1,322,365 and 1,328,866 shares issued and outstanding

   as of December 31, 2018 and December 31, 2017, respectively

 

 

13

 

 

 

13

 

Class C common shares $0.01 par value; 50,000,000 shares authorized;

   nil and 3,151,131 shares issued and outstanding

   as of December 31, 2018 and December 31, 2017, respectively

 

 

 

 

 

31

 

Series A preferred shares $0.01 par value; 10,000,000 shares authorized;

    2,800,000 shares issued and outstanding as of December 31, 2018 and

    December 31, 2017; liquidation preference of $70,000

 

 

28

 

 

 

28

 

Additional paid-in capital

 

 

1,124,504

 

 

 

1,116,060

 

Accumulated deficit

 

 

(344,132

)

 

 

(229,760

)

Total shareholders' equity

 

 

780,770

 

 

 

886,696

 

Non-controlling interests

 

 

369,688

 

 

 

434,164

 

Total equity

 

 

1,150,458

 

 

 

1,320,860

 

Total liabilities and equity

 

$

2,876,076

 

 

$

2,775,817

 

 

11


Seritage Growth Properties

Consolidated Statements of OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

 

 

 

Quarter Ended December 31,

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

41,985

 

 

$

38,966

 

 

$

156,055

 

 

$

178,492

 

Tenant reimbursements

 

 

12,962

 

 

 

14,712

 

 

 

57,503

 

 

 

62,525

 

Management and other fee income

 

 

167

 

 

 

-

 

 

 

1,196

 

 

 

 

Total revenue

 

 

55,114

 

 

 

53,678

 

 

 

214,754

 

 

 

241,017

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating

 

 

8,583

 

 

 

5,715

 

 

 

28,705

 

 

 

19,700

 

Real estate taxes

 

 

9,649

 

 

 

9,946

 

 

 

42,446

 

 

 

45,653

 

Depreciation and amortization

 

 

92,627

 

 

 

91,878

 

 

 

226,675

 

 

 

262,171

 

General and administrative

 

 

9,980

 

 

 

11,263

 

 

 

34,788

 

 

 

27,902

 

Provision for doubtful accounts

 

 

 

 

 

39

 

 

 

257

 

 

 

158

 

Total expenses

 

 

120,839

 

 

 

118,841

 

 

 

332,871

 

 

 

355,584

 

Gain on sale of real estate

 

 

2,746

 

 

 

(1,571

)

 

 

96,165

 

 

 

11,447

 

Gain on sale of interests in unconsolidated

   joint ventures

 

 

 

 

 

16,573

 

 

 

 

 

 

60,302

 

Equity in loss of unconsolidated

   joint ventures

 

 

(3,442

)

 

 

(3,562

)

 

 

(10,448

)

 

 

(7,788

)

Interest and other income

 

 

5,588

 

 

 

405

 

 

 

7,886

 

 

 

877

 

Interest expense

 

 

(25,016

)

 

 

(17,040

)

 

 

(90,020

)

 

 

(70,112

)

Change in fair value of interest rate cap

 

 

-

 

 

 

(15

)

 

 

(23

)

 

 

(701

)

Loss before income taxes

 

 

(85,849

)

 

 

(70,373

)

 

 

(114,557

)

 

 

(120,542

)

Provision for income taxes

 

 

116

 

 

 

(5

)

 

 

(321

)

 

 

(271

)

Net loss

 

 

(85,733

)

 

 

(70,378

)

 

 

(114,878

)

 

 

(120,813

)

Net loss attributable to

   non-controlling interests

 

 

30,920

 

 

 

27,167

 

 

 

41,406

 

 

 

47,059

 

Net loss attributable to Seritage

 

$

(54,813

)

 

$

(43,211

)

 

$

(73,472

)

 

$

(73,754

)

Preferred dividends

 

 

(1,225

)

 

 

(245

)

 

 

(4,903

)

 

 

(245

)

Net loss attributable to Seritage common

   shareholders

 

$

(56,038

)

 

$

(43,456

)

 

$

(78,375

)

 

$

(73,999

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to Seritage

   Class A and Class C common shareholders - Basic

 

$

(1.57

)

 

$

(1.27

)

 

$

(2.20

)

 

$

(2.19

)

Net loss per share attributable to Seritage

   Class A and Class C common shareholders - Diluted

 

$

(1.57

)

 

$

(1.27

)

 

$

(2.20

)

 

$

(2.19

)

Weighted average Class A and Class C common

   shares outstanding - Basic

 

 

35,589

 

 

 

34,094

 

 

 

35,560

 

 

 

33,804

 

Weighted average Class A and Class C common

   shares outstanding - Diluted

 

 

35,589

 

 

 

34,094

 

 

 

35,560

 

 

 

33,804

 

 

12


Reconciliation of Net Loss to NOI and Total NOI (in thousands)

 

 

 

Quarter Ended December 31,

 

 

Year Ended December 31,

 

NOI and Total NOI

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net loss

 

$

(85,733

)

 

$

(70,378

)

 

$

(114,878

)

 

$

(120,813

)

Termination fee income

 

 

(11,549

)

 

 

(1,954

)

 

 

(18,711

)

 

 

(19,314

)

Management and other fee income

 

 

(167

)

 

 

 

 

 

(1,196

)

 

 

 

Depreciation and amortization

 

 

92,627

 

 

 

91,878

 

 

 

226,675

 

 

 

262,171

 

General and administrative expenses

 

 

9,980

 

 

 

11,263

 

 

 

34,788

 

 

 

27,902

 

Equity in loss of unconsolidated

   joint ventures

 

 

3,442

 

 

 

3,562

 

 

 

10,448

 

 

 

7,788

 

Gain on sale of interests in unconsolidated

   joint ventures

 

 

 

 

 

(16,573

)

 

 

 

 

 

(60,302

)

Gain on sale of real estate

 

 

(2,746

)

 

 

1,571

 

 

 

(96,165

)

 

 

(11,447

)

Interest and other income

 

 

(5,588

)

 

 

(405

)

 

 

(7,886

)

 

 

(877

)

Interest expense

 

 

25,016

 

 

 

17,040

 

 

 

90,020

 

 

 

70,112

 

Change in fair value of interest rate cap

 

 

-

 

 

 

15

 

 

 

23

 

 

 

701

 

Provision for income taxes

 

 

(116

)

 

 

5

 

 

 

321

 

 

 

271

 

NOI

 

$

25,166

 

 

$

36,024

 

 

$

123,439

 

 

$

156,192

 

NOI of unconsolidated joint ventures

 

 

5,036

 

 

 

5,219

 

 

 

19,138

 

 

 

23,547

 

Straight-line rent adjustment (1)

 

 

4,459

 

 

 

(1,522

)

 

 

2,170

 

 

 

(3,918

)

Above/below market rental income/expense (1)

 

 

(606

)

 

 

(161

)

 

 

(1,640

)

 

 

(1,063

)

Total NOI

 

$

34,055

 

 

$

39,560

 

 

$

143,107

 

 

$

174,758

 

 

(1)

Includes adjustments for unconsolidated joint ventures.

 

Computation of Annualized Total NOI (in thousands)

 

 

 

As of December 31,

 

 

 

 

 

Annualized Total NOI

 

2018

 

 

2017

 

 

 

 

 

Total NOI (per above)

 

$

34,055

 

 

$

39,560

 

 

 

 

 

Period adjustments (1)

 

 

163

 

 

 

(698

)

 

 

 

 

Adjusted Total NOI

 

 

34,218

 

 

 

38,862

 

 

 

 

 

Annualize

 

 

x 4

 

 

 

x 4

 

 

 

 

 

Adjusted Total NOI annualized

 

 

136,872

 

 

 

155,448

 

 

 

 

 

Plus: estimated annual Total NOI from SNO leases

 

 

80,223

 

 

 

62,376

 

 

 

 

 

Less: estimated annual Total NOI from associated

   space to be recaptured from Sears

 

 

(4,354

)

 

 

(4,994

)

 

 

 

 

Annualized Total NOI

 

$

212,741

 

 

$

212,830

 

 

 

 

 

 

(1)

Includes adjustments to account for leases not in place for the full period.

 

13


Reconciliation of Net Loss to FFO and Company FFO (in thousands)

 

 

 

Quarter Ended December 31,

 

 

Year Ended December 31,

 

FFO and Company FFO

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net loss

 

$

(85,733

)

 

$

(70,378

)

 

$

(114,878

)

 

$

(120,813

)

Real estate depreciation and amortization

   (consolidated properties)

 

 

91,853

 

 

 

91,385

 

 

 

224,217

 

 

 

260,543

 

Real estate depreciation and amortization

   (unconsolidated joint ventures)

 

 

4,860

 

 

 

5,371

 

 

 

15,840

 

 

 

23,954

 

Gain on sale of interests in unconsolidated

   joint ventures

 

 

 

 

 

(16,573

)

 

 

 

 

 

(60,302

)

Gain on sale of real estate

 

 

(2,746

)

 

 

1,571

 

 

 

(96,165

)

 

 

(11,447

)

Dividends on preferred shares

 

 

(1,225

)

 

 

(245

)

 

 

(4,903

)

 

 

(245

)

FFO attributable to common shareholders

   and unitholders

 

$

7,009

 

 

$

11,131

 

 

$

24,111

 

 

$

91,690

 

Termination fee income

 

 

(11,549

)

 

 

(1,954

)

 

 

(18,711

)

 

 

(19,314

)

Change in fair value of interest rate cap

 

 

-

 

 

 

15

 

 

 

23

 

 

 

701

 

Amortization of deferred financing costs

 

 

102

 

 

 

2,330

 

 

 

10,323

 

 

 

8,720

 

Company FFO attributable to common

   shareholders and unitholders

 

$

(4,438

)

 

$

11,522

 

 

$

15,746

 

 

$

81,797

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO per diluted common share and unit

 

$

0.13

 

 

$

0.20

 

 

$

0.43

 

 

$

1.65

 

Company FFO per diluted common share and unit

 

$

(0.08

)

 

$

0.21

 

 

$

0.28

 

 

$

1.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares and Units Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

35,589

 

 

 

34,094

 

 

 

35,560

 

 

 

33,804

 

Weighted average OP units outstanding

 

 

20,158

 

 

 

21,820

 

 

 

20,153

 

 

 

21,820

 

Weighted average common shares and

   units outstanding

 

 

55,747

 

 

 

55,914

 

 

 

55,713

 

 

 

55,624

 

 

14

EX-99.2 3 srg-ex992_7.htm EX-99.2 srg-ex992_7.htm

Exhibit 99.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL INFORMATION       ||      PERIOD ENDED DECEMBER 31, 2018

 

 

 


INTRODUCTION

 

 

 

Background

Seritage Growth Properties (NYSE: SRG) (“Seritage” or the “Company”) is a fully-integrated, self-administered and self-managed retail REIT with interests in 206 wholly-owned properties and 26 joint venture properties totaling approximately 36.3 million square feet of gross leasable area (“GLA”) across 48 states and Puerto Rico.  

On June 11, 2015, Sears Holdings Corporation (“Sears Holdings”) effected a rights offering (the “Rights Offering”) to Sears Holdings stockholders to purchase common shares of Seritage in order to fund, in part, the $2.7 billion acquisition of 234 of Sears Holdings’ owned properties and one of its ground leased properties (the “Wholly Owned Properties”), as well as its 50% interests in three joint ventures that collectively owned 28 properties, ground leased one property and leased two properties (collectively, the “Original JV Properties”) (collectively, the “Transaction”).  The Rights Offering ended on July 2, 2015, and the Company’s Class A common shares were listed on the New York Stock Exchange on July 6, 2015.

On July 7, 2015, the Company completed the Transaction with Sears Holdings and commenced operations.  The Company’s only operations prior to the completion of the Rights Offering and Transaction were those incidental to the completion of such activities.

As of December 31, 2018, pursuant to a master lease (the “Master Lease”), 86 of the Company’s wholly-owned properties were leased to Sears Holdings and operated under either the Sears or Kmart brand.  The Master Lease provides the Company with the right to recapture certain space from Sears Holdings at each property for retenanting or redevelopment purposes.  At 37 properties, diversified, non-Sears tenants occupied a portion of leasable space alongside Sears and Kmart, 89 properties were leased only to diversified, non-Sears tenants and 31 properties were vacant.  The Company also owned 50% interests in 26 properties through joint venture investments.  A portion of the space at 19 of the Company’s joint venture properties was also leased to Sears Holdings under master lease agreements (the “JV Master Leases”) that provide for similar recapture rights as the Master Lease governing the Company’s wholly-owned properties.

The 86 wholly-owned properties under the Master Lease as of December 31, 2018 included four properties subject to previously exercised recapture notices and five properties under contract for sale.  Taking into account this recapture and transaction activity, the Company leased space at 77 wholly-owned properties and 19 JV properties to Sears Holdings as of December 31, 2018.

Sears Holdings Bankruptcy and Holdco Master Lease

On October 15, 2018, Sears Holdings and certain of its affiliates filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) with the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”).  On February 11, 2019, Transform Holdco LLC (“Holdco”), an affiliate of ESL Investments, Inc., completed the acquisition of an approximately 425-store retail footprint and other assets and component businesses of Sears Holdings on a going-concern basis.

On February [28], 2019, the Company entered into a master lease with affiliates of Holdco (the “Holdco Master Lease”) comprising 51 of the Company’s wholly-owned properties that remained subject to the master lease with Sears Holdings (the “2015 Sears Holdings Master Lease”) at the time Sears Holdings filed for bankruptcy protection.

A condition to the performance and obligations provided for in the Holdco Master Lease is the rejection of the 2015 Sears Holdings Master Lease.  The 2015 Sears Holdings Master Lease will be rejected if either (i) the Bankruptcy Court issues an order approving the rejection of the 2015 Sears Holdings Master Lease or (ii) the 2015 Sears Holdings Master Lease is deemed to be rejected pursuant to the operation of the Bankruptcy Code.  As a result of this condition, there can be no assurance as to the commencement of our and Holdco’s performance and obligations provided for in the Holdco Master Lease and/or the timing thereof.

The Holdco Master Lease, as executed, contains terms that are similar to the 2015 Sears Holdings Master Lease with the addition of certain enhanced landlord recapture and tenant termination rights.  Additional information regarding the Holdco Master Lease can be found in Form 8-K expected to be filed with the Securities and Exchange Commission on February [28], 2019.

General Information

Unless the context indicates otherwise, references in this supplemental information package (the "Supplemental") to "Seritage Growth,” “Seritage,” the “Company,” or “SRG” refer to Seritage Growth Properties and its subsidiaries.  Additionally, where reference is made to "GAAP", this refers to accounting principles generally accepted in the United States.

 

 

 

i


TABLE OF CONTENTS

 

 

 

SERITAGE GROWTH PROPERTIES

SUPPLEMENTAL INFORMATION

PERIOD ENDED DECEMBER 31, 2018

 

 

 

 

ii


COMPANY INFORMATION

 

 

 

Company Contacts

 

 

 

 

 

 

Benjamin Schall

 

President and Chief Executive Officer

 

Kenneth Lombard

 

EVP and Chief Operating Officer

Brian Dickman

 

EVP and Chief Financial Officer

 

Matthew Fernand

 

EVP and General Counsel

James Bry

 

EVP, Development and Construction

 

Mary Rottler

 

EVP, Leasing and Operations

ir@seritage.com

 

Investor Relations and Communications

 

646.277.1268

 

 

Summary Information

December 31, 2018

(In thousands, except per share, PSF and ratio amounts)

 

 

Quarter Ended December 31,

 

 

Year Ended December 31,

 

Financial Results

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net income (loss) attributable to Seritage

   common shareholders (page 3)

 

$

(56,038

)

 

$

(43,456

)

 

$

(78,375

)

 

$

(73,999

)

Total NOI (page 5)

 

 

34,055

 

 

 

39,560

 

 

 

143,107

 

 

 

174,758

 

FFO (page 7)

 

 

7,009

 

 

 

11,131

 

 

 

24,111

 

 

 

91,690

 

Company FFO (page 7)

 

 

(4,438

)

 

 

11,522

 

 

 

15,746

 

 

 

81,797

 

Net income (loss) per diluted share attributable

   to Seritage common shareholders (page 3)

 

$

(1.57

)

 

$

(1.27

)

 

$

(2.20

)

 

$

(2.19

)

FFO per diluted share (page 7)

 

 

0.13

 

 

 

0.20

 

 

 

0.43

 

 

 

1.65

 

Company FFO per diluted share (page 7)

 

 

(0.08

)

 

 

0.21

 

 

 

0.28

 

 

 

1.47

 

Wtd. avg. diluted shares - EPS

 

 

35,589

 

 

 

34,094

 

 

 

35,560

 

 

 

33,804

 

Wtd. avg diluted shares - FFO/share

 

 

55,747

 

 

 

55,914

 

 

 

55,713

 

 

 

55,624

 

Stock trading price range

 

$31.17 to $47.88

 

 

$39.68 to $46.34

 

 

$31.17 to $51.53

 

 

$38.76 to $48.98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

As of

 

Financial Ratios (page 4)

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

December 31, 2017

 

Total debt to total market capitalization

 

 

 

 

 

 

 

 

 

 

46.1

%

 

 

36.8

%

Net debt to Company EBITDA

 

 

 

 

 

 

 

 

 

 

10.3

x

 

 

6.5

x

Company EBITDA to cash interest expense

 

 

 

 

 

 

 

 

 

 

1.3

x

 

 

2.4

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

As of

 

Property Data (page 10)

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

December 31, 2017

 

Number of properties

 

 

 

 

 

 

 

 

 

 

232

 

 

 

253

 

Gross leasable area (total / at share)

 

 

 

 

 

 

 

 

 

36,299 / 33,951

 

 

39,381 / 37,270

 

Percentage leased (total / at share)

 

 

 

 

 

 

 

 

 

67.0% / 66.3%

 

 

80.8% / 80.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

% of Total

 

 

 

 

 

Tenant

 

 

 

 

 

Annual Rent

 

 

Annual Rent

 

 

Annual Rent PSF

 

Sears Holdings

 

 

 

 

 

$

61,341

 

 

 

29.1

%

 

$

4.86

 

In-place diversified, non-Sears leases

 

 

 

 

 

 

66,200

 

 

 

31.4

%

 

 

13.13

 

SNO diversified, non-Sears leases

 

 

 

 

 

 

83,297

 

 

 

39.5

%

 

 

17.17

 

Total

 

 

 

 

 

$

210,838

 

 

 

100.0

%

 

$

9.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

% of Total

 

 

 

 

 

Tenant

 

 

 

 

 

Annual Rent

 

 

Annual Rent

 

 

Annual Rent PSF

 

Sears Holdings

 

 

 

 

 

$

102,645

 

 

 

47.8

%

 

$

4.57

 

In-place diversified, non-Sears leases

 

 

 

 

 

 

48,624

 

 

 

22.6

%

 

 

12.73

 

SNO diversified, non-Sears leases

 

 

 

 

 

 

63,407

 

 

 

29.6

%

 

 

17.94

 

Total

 

 

 

 

 

$

214,676

 

 

 

100.0

%

 

$

7.20

 

 

- 1 -


CONSOLIDATED FINANCIAL STATEMENTS

 

 

 

 

Consolidated Balance Sheet (unaudited)

December 31, 2018

(In thousands, except share and per share amounts)

 

 

 

December 31, 2018

 

 

December 31, 2017

 

ASSETS

 

 

 

 

 

 

 

 

Investment in real estate

 

 

 

 

 

 

 

 

Land

 

$

696,792

 

 

$

799,971

 

Buildings and improvements

 

 

900,173

 

 

 

829,168

 

Accumulated depreciation

 

 

(137,947

)

 

 

(139,483

)

 

 

 

1,459,018

 

 

 

1,489,656

 

Construction in progress

 

 

292,049

 

 

 

224,904

 

Net investment in real estate

 

 

1,751,067

 

 

 

1,714,560

 

Real estate held for sale

 

 

3,094

 

 

 

 

Investment in unconsolidated joint ventures

 

 

398,577

 

 

 

282,990

 

Cash and cash equivalents

 

 

532,857

 

 

 

241,569

 

Restricted cash

 

 

 

 

 

175,665

 

Tenant and other receivables, net

 

 

36,926

 

 

 

30,787

 

Lease intangible assets, net

 

 

123,656

 

 

 

310,098

 

Prepaid expenses, deferred expenses and other assets, net

 

 

29,899

 

 

 

20,148

 

Total assets

 

$

2,876,076

 

 

$

2,775,817

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Term loan facility, net

 

$

1,598,053

 

 

$

 

Mortgage loans payable, net

 

 

 

 

 

1,202,314

 

Unsecured term loan, net

 

 

 

 

 

143,210

 

Accounts payable, accrued expenses and other liabilities

 

 

127,565

 

 

 

109,433

 

Total liabilities

 

 

1,725,618

 

 

 

1,454,957

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

 

 

Class A common shares $0.01 par value; 100,000,000 shares authorized;

   35,667,521 and 32,415,734 shares issued and outstanding

   as of December 31, 2018 and December 31, 2017, respectively

 

 

357

 

 

 

324

 

Class B common shares $0.01 par value; 5,000,000 shares authorized;

   1,322,365 and 1,328,866 shares issued and outstanding

   as of December 31, 2018 and December 31, 2017, respectively

 

 

13

 

 

 

13

 

Class C common shares $0.01 par value; 50,000,000 shares authorized;

   nil and 3,151,131 shares issued and outstanding

   as of December 31, 2018 and December 31, 2017, respectively

 

 

 

 

 

31

 

Series A preferred shares $0.01 par value; 10,000,000 shares authorized;

    2,800,000 shares issued and outstanding as of December 31, 2018 and

    December 31, 2017; liquidation preference of $70,000

 

 

28

 

 

 

28

 

Additional paid-in capital

 

 

1,124,504

 

 

 

1,116,060

 

Accumulated deficit

 

 

(344,132

)

 

 

(229,760

)

Total shareholders' equity

 

 

780,770

 

 

 

886,696

 

Non-controlling interests

 

 

369,688

 

 

 

434,164

 

Total equity

 

 

1,150,458

 

 

 

1,320,860

 

Total liabilities and equity

 

$

2,876,076

 

 

$

2,775,817

 

 

- 2 -


CONSOLIDATED FINANCIAL STATEMENTS

 

 

 

Consolidated Statements of Operations (unaudited)

December 31, 2018

(In thousands, except per share amounts)

 

 

 

Quarter Ended December 31,

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

41,985

 

 

$

38,966

 

 

$

156,055

 

 

$

178,492

 

Tenant reimbursements

 

 

12,962

 

 

 

14,712

 

 

 

57,503

 

 

 

62,525

 

Management and other fee income

 

 

167

 

 

 

-

 

 

 

1,196

 

 

 

 

Total revenue

 

 

55,114

 

 

 

53,678

 

 

 

214,754

 

 

 

241,017

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating

 

 

8,583

 

 

 

5,715

 

 

 

28,705

 

 

 

19,700

 

Real estate taxes

 

 

9,649

 

 

 

9,946

 

 

 

42,446

 

 

 

45,653

 

Depreciation and amortization

 

 

92,627

 

 

 

91,878

 

 

 

226,675

 

 

 

262,171

 

General and administrative

 

 

9,980

 

 

 

11,263

 

 

 

34,788

 

 

 

27,902

 

Provision for doubtful accounts

 

 

 

 

 

39

 

 

 

257

 

 

 

158

 

Total expenses

 

 

120,839

 

 

 

118,841

 

 

 

332,871

 

 

 

355,584

 

Gain on sale of real estate

 

 

2,746

 

 

 

(1,571

)

 

 

96,165

 

 

 

11,447

 

Gain on sale of interests in unconsolidated

   joint ventures

 

 

 

 

 

16,573

 

 

 

 

 

 

60,302

 

Equity in loss of unconsolidated

   joint ventures

 

 

(3,442

)

 

 

(3,562

)

 

 

(10,448

)

 

 

(7,788

)

Interest and other income

 

 

5,588

 

 

 

405

 

 

 

7,886

 

 

 

877

 

Interest expense

 

 

(25,016

)

 

 

(17,040

)

 

 

(90,020

)

 

 

(70,112

)

Change in fair value of interest rate cap

 

 

-

 

 

 

(15

)

 

 

(23

)

 

 

(701

)

Loss before income taxes

 

 

(85,849

)

 

 

(70,373

)

 

 

(114,557

)

 

 

(120,542

)

Provision for income taxes

 

 

116

 

 

 

(5

)

 

 

(321

)

 

 

(271

)

Net loss

 

 

(85,733

)

 

 

(70,378

)

 

 

(114,878

)

 

 

(120,813

)

Net loss attributable to

   non-controlling interests

 

 

30,920

 

 

 

27,167

 

 

 

41,406

 

 

 

47,059

 

Net loss attributable to Seritage

 

$

(54,813

)

 

$

(43,211

)

 

$

(73,472

)

 

$

(73,754

)

Preferred dividends

 

 

(1,225

)

 

 

(245

)

 

 

(4,903

)

 

 

(245

)

Net loss attributable to Seritage common

   shareholders

 

$

(56,038

)

 

$

(43,456

)

 

$

(78,375

)

 

$

(73,999

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to Seritage

   Class A and Class C common shareholders - Basic

 

$

(1.57

)

 

$

(1.27

)

 

$

(2.20

)

 

$

(2.19

)

Net loss per share attributable to Seritage

   Class A and Class C common shareholders - Diluted

 

$

(1.57

)

 

$

(1.27

)

 

$

(2.20

)

 

$

(2.19

)

Weighted average Class A and Class C common

   shares outstanding - Basic

 

 

35,589

 

 

 

34,094

 

 

 

35,560

 

 

 

33,804

 

Weighted average Class A and Class C common

   shares outstanding - Diluted

 

 

35,589

 

 

 

34,094

 

 

 

35,560

 

 

 

33,804

 

 

 

 

- 3 -


SUPPLEMENTAL FINANCIAL INFORMATION

 

 

 

 

Market Capitalization and Financial Ratios

December 31, 2018

(In thousands, except per share and ratio amounts)

 

 

 

As of

 

 

As of

 

Equity Market Capitalization

 

December 31, 2018

 

 

December 31, 2017

 

Class A common shares outstanding

 

 

35,668

 

 

 

32,416

 

Class C common shares outstanding

 

 

 

 

 

3,151

 

OP units outstanding

 

 

20,119

 

 

 

20,218

 

Total shares & units outstanding

 

 

55,787

 

 

 

55,785

 

Share Price

 

$

32.33

 

 

$

40.46

 

Equity market capitalization

 

$

1,803,594

 

 

$

2,257,061

 

 

 

 

 

 

 

 

 

 

Total Market Capitalization

 

 

 

 

 

 

 

 

Equity market capitalization

 

$

1,803,594

 

 

$

2,257,061

 

Preferred equity

 

 

70,000

 

 

 

70,000

 

Total debt

 

 

1,600,000

 

 

 

1,355,562

 

Total market capitalization

 

$

3,473,594

 

 

$

3,682,623

 

 

 

 

 

 

 

 

 

 

Financial Ratios

 

 

 

 

 

 

 

 

Total debt to total market capitalization

 

 

46.1

%

 

 

36.8

%

 

 

 

 

 

 

 

 

 

Total debt

 

$

1,600,000

 

 

$

1,355,562

 

Cash and cash equivalents

 

 

(532,857

)

 

 

(241,569

)

Restricted cash

 

 

 

 

 

(175,665

)

Net Debt

 

$

1,067,143

 

 

$

938,328

 

 

 

 

 

 

 

 

 

 

Net debt to Company EBITDA (1)

 

 

10.3

x

 

 

6.5

x

 

 

 

 

 

 

 

 

 

Gross real estate investments

 

$

2,156,295

 

 

$

2,397,731

 

Investment in unconsolidated joint ventures

 

 

398,577

 

 

 

282,990

 

Total real estate investments

 

$

2,554,872

 

 

$

2,680,721

 

 

 

 

 

 

 

 

 

 

Net debt to total real estate investments

 

 

41.8

%

 

 

35.0

%

 

 

 

 

 

 

 

 

 

Interest expense (net of amounts capitalized) (1)

 

$

90,020

 

 

$

70,112

 

Amortization of deferred financing costs (1)

 

 

(10,323

)

 

 

(8,719

)

Cash interest expense (net of amounts capitalized) (1)

 

$

79,697

 

 

$

61,393

 

 

 

 

 

 

 

 

 

 

Company EBITDA to cash interest expense (net of amounts capitalized) (1)

 

 

1.3

x

 

 

2.4

x

 

(1)

For the twelve months ended December 31, 2018 and December 31, 2017, respectively.

 

- 4 -


SUPPLEMENTAL FINANCIAL INFORMATION

 

 

 

Total Net Operating Income

December 31, 2018

(In thousands)

 

 

 

Quarter Ended December 31,

 

 

Year Ended December 31,

 

NOI and Total NOI

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net loss

 

$

(85,733

)

 

$

(70,378

)

 

$

(114,878

)

 

$

(120,813

)

Termination fee income

 

 

(11,549

)

 

 

(1,954

)

 

 

(18,711

)

 

 

(19,314

)

Management and other fee income

 

 

(167

)

 

 

 

 

 

(1,196

)

 

 

 

Depreciation and amortization

 

 

92,627

 

 

 

91,878

 

 

 

226,675

 

 

 

262,171

 

General and administrative expenses

 

 

9,980

 

 

 

11,263

 

 

 

34,788

 

 

 

27,902

 

Equity in loss of unconsolidated

   joint ventures

 

 

3,442

 

 

 

3,562

 

 

 

10,448

 

 

 

7,788

 

Gain on sale of interests in unconsolidated

   joint ventures

 

 

 

 

 

(16,573

)

 

 

 

 

 

(60,302

)

Gain on sale of real estate

 

 

(2,746

)

 

 

1,571

 

 

 

(96,165

)

 

 

(11,447

)

Interest and other income

 

 

(5,588

)

 

 

(405

)

 

 

(7,886

)

 

 

(877

)

Interest expense

 

 

25,016

 

 

 

17,040

 

 

 

90,020

 

 

 

70,112

 

Change in fair value of interest rate cap

 

 

-

 

 

 

15

 

 

 

23

 

 

 

701

 

Provision for income taxes

 

 

(116

)

 

 

5

 

 

 

321

 

 

 

271

 

NOI

 

$

25,166

 

 

$

36,024

 

 

$

123,439

 

 

$

156,192

 

NOI of unconsolidated joint ventures

 

 

5,036

 

 

 

5,219

 

 

 

19,138

 

 

 

23,547

 

Straight-line rent adjustment (1)

 

 

4,459

 

 

 

(1,522

)

 

 

2,170

 

 

 

(3,918

)

Above/below market rental income/expense (1)

 

 

(606

)

 

 

(161

)

 

 

(1,640

)

 

 

(1,063

)

Total NOI

 

$

34,055

 

 

$

39,560

 

 

$

143,107

 

 

$

174,758

 

 

 

 

As of December 31,

 

 

 

 

 

Annualized Total NOI

 

2018

 

 

2017

 

 

 

 

 

Total NOI (per above)

 

$

34,055

 

 

$

39,560

 

 

 

 

 

Period adjustments (2)

 

 

163

 

 

 

(698

)

 

 

 

 

Adjusted Total NOI

 

 

34,218

 

 

 

38,862

 

 

 

 

 

Annualize

 

 

x 4

 

 

 

x 4

 

 

 

 

 

Adjusted Total NOI annualized

 

 

136,872

 

 

 

155,448

 

 

 

 

 

Plus: estimated annual Total NOI from SNO leases

 

 

80,223

 

 

 

62,376

 

 

 

 

 

Less: estimated annual Total NOI from associated

   space to be recaptured from Sears

 

 

(4,354

)

 

 

(4,994

)

 

 

 

 

Annualized Total NOI

 

$

212,741

 

 

$

212,830

 

 

 

 

 

 

(1)

Includes adjustments for unconsolidated joint ventures.

(2)

Includes adjustments to account for leases not in place for the full period.

- 5 -


SUPPLEMENTAL FINANCIAL INFORMATION

 

 

 

EBITDAre and Company EBITDA

December 31, 2018

(In thousands)

 

 

 

Quarter Ended December 31,

 

 

Year Ended December 31,

 

EBITDAre and Company EBITDA

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net loss

 

$

(85,733

)

 

$

(70,378

)

 

$

(114,878

)

 

$

(120,813

)

Interest expense

 

 

25,016

 

 

 

17,040

 

 

 

90,020

 

 

 

70,112

 

Provision for income and other taxes

 

 

(116

)

 

 

5

 

 

 

321

 

 

 

271

 

Depreciation and amortization

 

 

92,627

 

 

 

91,878

 

 

 

226,675

 

 

 

262,171

 

Depreciation and amortization (unconsolidated

   joint ventures)

 

 

4,860

 

 

 

5,371

 

 

 

15,840

 

 

 

23,954

 

Gain on sale of interests in unconsolidated

   joint ventures

 

 

 

 

 

(16,573

)

 

 

 

 

 

(60,302

)

Gain on sale of real estate

 

 

(2,746

)

 

 

1,571

 

 

 

(96,165

)

 

 

(11,447

)

EBITDAre

 

$

33,908

 

 

$

28,914

 

 

$

121,813

 

 

$

163,946

 

Termination fee income

 

 

(11,549

)

 

 

(1,954

)

 

 

(18,711

)

 

 

(19,314

)

Change in fair value of interest rate cap

 

 

 

 

 

15

 

 

 

23

 

 

 

701

 

Company EBITDA

 

$

22,359

 

 

$

26,975

 

 

$

103,125

 

 

$

145,333

 

- 6 -


SUPPLEMENTAL FINANCIAL INFORMATION

 

 

 

Funds from Operations and Company FFO

December 31, 2018

(In thousands, except per share amounts)

 

 

 

Quarter Ended December 31,

 

 

Year Ended December 31,

 

FFO and Company FFO

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net loss

 

$

(85,733

)

 

$

(70,378

)

 

$

(114,878

)

 

$

(120,813

)

Real estate depreciation and amortization

   (consolidated properties)

 

 

91,853

 

 

 

91,385

 

 

 

224,217

 

 

 

260,543

 

Real estate depreciation and amortization

   (unconsolidated joint ventures)

 

 

4,860

 

 

 

5,371

 

 

 

15,840

 

 

 

23,954

 

Gain on sale of interests in unconsolidated

   joint ventures

 

 

 

 

 

(16,573

)

 

 

 

 

 

(60,302

)

Gain on sale of real estate

 

 

(2,746

)

 

 

1,571

 

 

 

(96,165

)

 

 

(11,447

)

Dividends on preferred shares

 

 

(1,225

)

 

 

(245

)

 

 

(4,903

)

 

 

(245

)

FFO attributable to common shareholders

   and unitholders

 

$

7,009

 

 

$

11,131

 

 

$

24,111

 

 

$

91,690

 

Termination fee income

 

 

(11,549

)

 

 

(1,954

)

 

 

(18,711

)

 

 

(19,314

)

Change in fair value of interest rate cap

 

 

-

 

 

 

15

 

 

 

23

 

 

 

701

 

Amortization of deferred financing costs

 

 

102

 

 

 

2,330

 

 

 

10,323

 

 

 

8,720

 

Company FFO attributable to common

   shareholders and unitholders

 

$

(4,438

)

 

$

11,522

 

 

$

15,746

 

 

$

81,797

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO per diluted common share and unit

 

$

0.13

 

 

$

0.20

 

 

$

0.43

 

 

$

1.65

 

Company FFO per diluted common share and unit

 

$

(0.08

)

 

$

0.21

 

 

$

0.28

 

 

$

1.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares and Units Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

35,589

 

 

 

34,094

 

 

 

35,560

 

 

 

33,804

 

Weighted average OP units outstanding

 

 

20,158

 

 

 

21,820

 

 

 

20,153

 

 

 

21,820

 

Weighted average common shares and

   units outstanding

 

 

55,747

 

 

 

55,914

 

 

 

55,713

 

 

 

55,624

 

 

- 7 -


SUPPLEMENTAL FINANCIAL INFORMATION

 

 

 

Additional Information

December 31, 2018

(In thousands)

 

 

 

As of

 

 

As of

 

Debt Summary

 

December 31, 2018

 

 

December 31, 2017

 

Term Loan Facility (drawn / undrawn)

 

$1,600,000 / 400,000

 

 

$

 

Interest rate / undrawn rate

 

7.00% / 1.00%

 

 

 

 

Maturity

 

July 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage notes payable

 

$

 

 

$

1,210,562

 

Interest rate

 

 

 

 

LIBOR + 470

 

Maturity

 

 

 

 

July 2019

 

 

 

 

 

 

 

 

 

 

Unsecured Term Loan

 

$

 

 

$

145,000

 

Interest rate

 

 

 

 

 

6.75

%

Maturity

 

 

 

 

December 2018

 

 

 

 

 

 

 

 

 

 

Restricted Cash

 

 

 

 

 

 

 

 

Reserve for redevelopment projects / capital expenditures

 

$

 

 

$

137,996

 

Reserve for property operating expenses

 

 

 

 

 

21,735

 

Reserve for environmental remediation

 

 

 

 

 

10,751

 

Other, including prepaid rental income

 

 

 

 

 

2,679

 

Reserve for deferred maintenance

 

 

 

 

 

2,504

 

Total restricted cash

 

$

 

 

$

175,665

 

 

 

 

 

 

 

 

 

 

Prepaid Expenses, Deferred Expenses and Other Assets

 

 

 

 

 

 

 

 

Deferred expenses

 

$

9,621

 

 

$

4,813

 

Other assets

 

 

5,411

 

 

 

2,493

 

FF&E

 

 

5,299

 

 

 

6,290

 

Other prepaid expenses

 

 

3,605

 

 

 

1,445

 

Prepaid insurance

 

 

3,283

 

 

 

2,352

 

Prepaid real estate taxes

 

 

2,680

 

 

 

2,732

 

Interest rate cap

 

 

 

 

 

23

 

Total prepaid expenses, deferred expenses and other assets

 

$

29,899

 

 

$

20,148

 

 

 

 

 

 

 

 

 

 

Accounts Payable, Accrued Expenses and Other Liabilities

 

 

 

 

 

 

 

 

Accrued development expenditures

 

$

26,180

 

 

$

21,449

 

Accounts payable and accrued expenses

 

 

22,536

 

 

 

9,588

 

Dividends and distributions payable

 

 

15,758

 

 

 

14,559

 

Accrued real estate taxes

 

 

14,108

 

 

 

17,091

 

Below-market leases

 

 

12,281

 

 

 

14,476

 

Unearned tenant reimbursements

 

 

10,975

 

 

 

10,522

 

Prepaid rental income

 

 

9,550

 

 

 

4,156

 

Environmental reserve

 

 

9,477

 

 

 

11,322

 

Accrued interest

 

 

4,978

 

 

 

3,689

 

Deferred maintenance

 

 

1,722

 

 

 

2,581

 

Total accounts payable, accrued expenses and other liabilities

 

$

127,565

 

 

$

109,433

 

- 8 -


SUPPLEMENTAL FINANCIAL INFORMATION

 

 

 

Additional Information (cont’d)

December 31, 2018

(In thousands, except per share amounts)

 

 

 

Quarter Ended December 31,

 

 

Year Ended December 31,

 

Select Non-Cash Items

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Straight-line rental income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly-owned

 

$

(4,575

)

 

$

1,355

 

 

$

(2,825

)

 

$

3,719

 

Joint ventures

 

 

116

 

 

 

167

 

 

 

655

 

 

 

199

 

Total

 

$

(4,459

)

 

$

1,522

 

 

$

(2,170

)

 

$

3,918

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net amortization of above/below market

   rental income/expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly-owned

 

$

178

 

 

$

139

 

 

$

768

 

 

$

720

 

Joint ventures

 

 

428

 

 

 

22

 

 

 

872

 

 

 

343

 

Total

 

$

606

 

 

$

161

 

 

$

1,640

 

 

$

1,063

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

$

(101

)

 

$

(2,329

)

 

$

(10,322

)

 

$

(8,719

)

Stock-based compensation expense

 

 

(1,883

)

 

 

(5,851

)

 

 

(7,472

)

 

 

(7,018

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per Class A and Class C

   common share

 

$

0.25

 

 

$

0.25

 

 

$

1.00

 

 

$

1.00

 

Declaration date

 

Oct 23, 2018

 

 

Oct 24, 2017

 

 

 

 

 

 

 

 

 

Record date

 

Dec 31, 2018

 

 

Dec 29, 2017

 

 

 

 

 

 

 

 

 

Payment date

 

Jan 10, 2019

 

 

Jan 11, 2018

 

 

 

 

 

 

 

 

 

 

 

 

- 9 -


PROPERTY INFORMATION

 

 

 

 

Portfolio Overview

December 31, 2018

(In thousands, except number of properties/leases and PSF amounts)

Portfolio Summary

The following table provides a summary of the Company’s portfolio, including JV Properties presented at the Company’s proportional share, as of December 31, 2018:

 

 

 

Wholly Owned

 

 

Unconsolidated

 

 

 

 

 

 

 

Portfolio

 

 

Joint Ventures

 

 

Total

 

Number of properties

 

 

206

 

 

 

26

 

 

 

232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total GLA

 

 

31,602

 

 

 

4,697

 

 

 

36,299

 

At share

 

 

31,602

 

 

 

2,349

 

 

 

33,951

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leased GLA

 

 

20,720

 

 

 

3,590

 

 

 

24,310

 

At share

 

 

20,720

 

 

 

1,794

 

 

 

22,514

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage leased

 

 

65.6

%

 

 

76.4

%

 

 

67.0

%

At share

 

 

65.6

%

 

 

76.4

%

 

 

66.3

%

Property Type

As of December 31, 2018, the portfolio included 118 properties characterized as attached to regional malls and 114 characterized as shopping center or freestanding properties.  The following table provides a summary of the portfolio, including JV Properties presented at the Company’s proportional share, based on these property types and signed leases as of December 31, 2018:

 

 

 

Number of

 

 

Leased

 

 

Annual

 

 

Rent

 

 

 

 

 

Property Type (1)

 

Properties

 

 

GLA

 

 

Rent

 

 

PSF

 

 

Leased

 

Mall

 

 

118

 

 

 

12,019

 

 

$

117,094

 

 

$

9.74

 

 

 

64.8

%

Shopping Center

 

 

114

 

 

 

10,495

 

 

 

93,743

 

 

 

8.93

 

 

 

68.2

%

Total

 

 

232

 

 

 

22,514

 

 

$

210,837

 

 

$

9.36

 

 

 

66.3

%

 

(1)

Company classification.  Mall properties are attached to regional malls; Shopping Center properties include properties attached to, within or adjacent to neighborhood shopping or power centers, as well as freestanding properties.

Tenant Overview

The following table provides a summary of annual base rent for the portfolio, including JV Properties presented at the Company’s proportional share, based on signed leases as of December 31, 2018:

 

 

 

Number of

 

 

Leased

 

 

% of Total

 

 

Annual

 

 

% of Total

 

 

Annual

 

Tenant

 

Leases

 

 

GLA

 

 

Leased GLA

 

 

Rent

 

 

Annual Rent

 

 

Rent PSF

 

Sears Holdings (1)(2)

 

 

105

 

 

 

12,619

 

 

 

56.0

%

 

$

61,341

 

 

 

29.1

%

 

$

4.86

 

In-place diversified, non-Sears leases (2)

 

 

236

 

 

 

5,043

 

 

 

22.4

%

 

 

66,200

 

 

 

31.4

%

 

 

13.13

 

SNO diversified, non-Sears leases (2)

 

 

170

 

 

 

4,852

 

 

 

21.6

%

 

 

83,297

 

 

 

39.5

%

 

 

17.17

 

Sub-total diversified, non-Sears leases

 

 

406

 

 

 

9,895

 

 

 

44.0

%

 

 

149,497

 

 

 

70.9

%

 

 

15.11

 

Total

 

 

511

 

 

 

22,514

 

 

 

100.0

%

 

$

210,838

 

 

 

100.0

%

 

$

9.36

 

 

(1)

Number of leases reflects number of properties subject to the Master Lease and JV Master Leases.

(2)

Metrics include four properties subject to previously exercised recapture notices and five properties under contract for sale.

 

- 10 -


PROPERTY INFORMATION

 

 

 

Portfolio Overview (cont’d)

December 31, 2018

(In thousands, except number of leases and PSF amounts)

Top Tenants

The following table lists the top tenants in the portfolio, including JV Properties presented at the Company’s proportional share, based on signed leases as of December 31, 2018:

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tenant

 

Number of

Leases

 

 

Annual

Rent

 

 

% of Total

Annual Rent

 

 

Concepts/Brands

 

 

 

 

 

 

Sears Holdings (1)(2)

 

 

105

 

 

$

61,341

 

 

 

29.1

%

 

Sears, Sears Auto Center, Kmart

Dave & Busters

 

 

10

 

 

 

8,383

 

 

 

4.0

%

 

 

Round One Entertainment

 

 

8

 

 

 

7,759

 

 

 

3.7

%

 

 

At Home

 

 

11

 

 

 

6,592

 

 

 

3.1

%

 

 

24 Hour Fitness

 

 

7

 

 

 

6,405

 

 

 

3.0

%

 

 

Burlington Stores

 

 

10

 

 

 

6,195

 

 

 

2.9

%

 

 

Dick's Sporting Goods

 

 

7

 

 

 

5,843

 

 

 

2.8

%

 

 

Ross Dress For Less

 

 

15

 

 

 

5,512

 

 

 

2.6

%

 

Ross Dress for Less, dd's Discounts

Cinemark

 

 

4

 

 

 

4,899

 

 

 

2.3

%

 

 

Equinox Fitness

 

 

18

 

 

 

4,760

 

 

 

2.3

%

 

Equinox, Blink Fitness

Nordstrom Rack

 

 

6

 

 

 

4,385

 

 

 

2.1

%

 

 

AMC

 

 

3

 

 

 

4,202

 

 

 

2.0

%

 

 

Primark

 

 

3

 

 

 

3,925

 

 

 

1.9

%

 

 

Floor & Decor

 

 

3

 

 

 

3,082

 

 

 

1.5

%

 

 

Hobby Lobby

 

 

6

 

 

 

3,038

 

 

 

1.4

%

 

 

Bed Bath & Beyond

 

 

6

 

 

 

2,491

 

 

 

1.2

%

 

Bed Bath & Beyond, buybuyBaby, Cost Plus World Market, Christmas Tree Shops andThat!

TJX

 

 

8

 

 

 

2,289

 

 

 

1.1

%

 

TJ Maxx, Marshalls, HomeGoods, HomeSense, Sierra Trading Post

PetSmart

 

 

4

 

 

 

2,012

 

 

 

1.0

%

 

 

 

(1)

Number of leases reflects number of properties subject to the Master Lease and JV Master Leases.

(2)

Taking into account previously exercised recapture notices and assets under contract for sale, there were 96 properties subject to the Master Lease and JV Master Leases as of December 31, 2018.

 

- 11 -


PROPERTY INFORMATION

 

 

 

Portfolio Overview (cont’d)

December 31, 2018

(In thousands, except number of properties and PSF amounts)

Geographic Summary

The following table sets forth information regarding the geographic diversification of the portfolio, including JV Properties presented at the Company’s proportional share, based on signed leases as of December 31, 2018:

 

(in thousands except property count and PSF data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State

 

Number of

Properties

 

 

Annual

Rent

 

 

% of Total

Annual Rent

 

 

Rent

PSF

 

California

 

 

39

 

 

$

40,713

 

 

 

19.3

%

 

$

8.38

 

Florida

 

 

26

 

 

 

29,933

 

 

 

14.2

%

 

 

11.17

 

Texas

 

 

15

 

 

 

12,889

 

 

 

6.1

%

 

 

7.52

 

New York

 

 

11

 

 

 

12,183

 

 

 

5.8

%

 

 

16.53

 

Illinois

 

 

10

 

 

 

12,133

 

 

 

5.8

%

 

 

11.00

 

New Jersey

 

 

5

 

 

 

8,802

 

 

 

4.2

%

 

 

15.55

 

Pennsylvania

 

 

7

 

 

 

7,857

 

 

 

3.7

%

 

 

11.04

 

Puerto Rico

 

 

6

 

 

 

7,085

 

 

 

3.4

%

 

 

7.85

 

Arizona

 

 

11

 

 

 

5,797

 

 

 

2.7

%

 

 

5.84

 

Virginia

 

 

5

 

 

 

5,301

 

 

 

2.5

%

 

 

9.73

 

Total Top 10

 

 

135

 

 

$

142,693

 

 

 

67.7

%

 

$

9.63

 

Other (1)

 

 

97

 

 

 

68,145

 

 

 

32.3

%

 

 

8.85

 

Total

 

 

232

 

 

$

210,838

 

 

 

100.0

%

 

$

9.36

 

 

(1)

Includes 39 states

 

- 12 -


PROPERTY INFORMATION

 

 

 

Leasing Activity

December 31, 2018

(In thousands, except number of leases and PSF amounts)

Signed Leases

The table below provides a summary of the Company’s leasing activity since inception through December 31, 2018, including JV Properties presented at the Company’s proportional share:

 

(in thousands except number of leases and PSF data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Release of Sears Holdings Space

 

 

 

 

 

 

 

Leased

 

 

Annual

 

 

Annual

 

 

 

 

 

 

Leased

 

 

Annual

 

 

Annual

 

 

Releasing

 

Period

 

Leases

 

 

GLA

 

 

Rent

 

 

Rent PSF

 

 

Leases

 

 

GLA

 

 

Rent

 

 

Rent PSF

 

 

Multiple

 

2015

 

 

9

 

 

 

154

 

 

$

4,650

 

 

$

30.28

 

 

 

6

 

 

 

130

 

 

$

3,820

 

 

$

29.41

 

 

 

4.4

x

Q1 2016

 

 

7

 

 

 

214

 

 

 

6,990

 

 

 

32.60

 

 

 

7

 

 

 

214

 

 

 

6,990

 

 

 

32.60

 

 

 

5.7

x

Q2 2016

 

 

15

 

 

 

422

 

 

 

7,240

 

 

 

17.15

 

 

 

13

 

 

 

363

 

 

 

6,440

 

 

 

17.75

 

 

 

4.7

x

Q3 2016

 

 

14

 

 

 

543

 

 

 

7,470

 

 

 

13.74

 

 

 

12

 

 

 

456

 

 

 

6,250

 

 

 

13.70

 

 

 

4.0

x

Q4 2016

 

 

29

 

 

 

891

 

 

 

14,900

 

 

 

16.72

 

 

 

27

 

 

 

849

 

 

 

13,930

 

 

 

16.41

 

 

 

4.1

x

2016

 

 

65

 

 

 

2,070

 

 

 

36,600

 

 

 

17.68

 

 

 

59

 

 

 

1,882

 

 

 

33,610

 

 

 

17.86

 

 

 

4.5

x

Q1 2017

 

 

22

 

 

 

535

 

 

 

8,780

 

 

 

16.41

 

 

 

21

 

 

 

530

 

 

 

8,660

 

 

 

16.34

 

 

 

4.0

x

Q2 2017

 

 

28

 

 

 

598

 

 

 

11,340

 

 

 

18.95

 

 

 

26

 

 

 

592

 

 

 

11,240

 

 

 

18.99

 

 

 

3.7

x

Q3 2017

 

 

21

 

 

 

601

 

 

 

9,770

 

 

 

16.25

 

 

 

18

 

 

 

486

 

 

 

8,730

 

 

 

17.97

 

 

 

4.6

x

Q4 2017

 

 

23

 

 

 

872

 

 

 

14,827

 

 

 

17.00

 

 

 

21

 

 

 

868

 

 

 

14,669

 

 

 

16.90

 

 

 

3.8

x

2017

 

 

94

 

 

 

2,606

 

 

 

44,717

 

 

 

17.16

 

 

 

86

 

 

 

2,476

 

 

 

43,299

 

 

 

17.49

 

 

 

4.0

x

Q1 2018

 

 

20

 

 

 

391

 

 

 

7,915

 

 

 

20.24

 

 

 

19

 

 

 

389

 

 

 

7,891

 

 

 

20.29

 

 

 

4.1

x

Q2 2018

 

 

42

 

 

 

714

 

 

 

10,709

 

 

 

15.00

 

 

 

42

 

 

 

714

 

 

 

10,709

 

 

 

15.00

 

 

 

3.7

x

Q3 2018

 

 

22

 

 

 

546

 

 

 

7,487

 

 

 

13.71

 

 

 

18

 

 

 

529

 

 

 

7,012

 

 

 

13.26

 

 

 

3.8

x

Q4 2018

 

 

30

 

 

 

664

 

 

 

13,930

 

 

 

20.98

 

 

 

29

 

 

 

659

 

 

 

13,749

 

 

 

20.86

 

 

 

4.0

x

2018

 

 

114

 

 

 

2,315

 

 

 

40,041

 

 

 

17.30

 

 

 

108

 

 

 

2,291

 

 

 

39,361

 

 

 

17.18

 

 

 

3.9

x

Total Retail

 

 

282

 

 

 

7,145

 

 

$

126,008

 

 

$

17.64

 

 

 

259

 

 

 

6,779

 

 

$

120,090

 

 

$

17.72

 

 

 

4.1

x

Other (1)

 

 

5

 

 

 

740

 

 

 

5,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

287

 

 

 

7,885

 

 

$

131,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes self storage, auto dealership, office and ground leases; all signed in 2018.

SNO Lease Summary

The table below provides a summary of the Company’s SNO leases from September 30, 2018 to December 31, 2018, including JV Properties presented at the Company’s proportional share:

 

(in thousands except number of leases and PSF data)

 

 

 

 

 

 

 

 

 

Total

 

 

 

Number of

 

 

 

 

 

 

Annual

 

 

Annual

 

 

 

SNO Leases

 

 

GLA

 

 

Rent

 

 

Rent PSF

 

As of September 30, 2018

 

 

156

 

 

 

4,549

 

 

$

75,010

 

 

$

16.49

 

Opened

 

 

(12

)

 

 

(492

)

 

 

(5,785

)

 

 

11.76

 

Sold / contributed to JVs / terminated

 

 

(5

)

 

 

(83

)

 

 

(1,758

)

 

 

21.18

 

Signed

 

 

31

 

 

 

878

 

 

 

15,830

 

 

 

18.03

 

As of December 31, 2018

 

 

170

 

 

 

4,852

 

 

$

83,297

 

 

$

17.17

 

- 13 -


PROPERTY INFORMATION

 

 

 

Redevelopment Projects

December 31, 2018

(In thousands, except number of projects)

Below is a summary of the Company’s announced development activity from inception through December 31, 2018, presented at 100% share and including certain assets that have been monetized through sale or joint venture:

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated

 

 

Estimated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated

 

 

Number

 

 

Project

 

 

Development

 

 

Project

 

 

Projected Annual Income (2)

 

 

Incremental

Estimated Project Costs (1)

 

of Projects

 

 

Square Feet

 

 

Costs (1)

 

 

Costs (1)

 

 

Total

 

 

Existing

 

 

Incremental

 

 

Yield (3)

< $10,000

 

 

28

 

 

 

2,182

 

 

$

125,600

 

 

$

127,900

 

 

$

23,400

 

 

$

5,700

 

 

$

17,700

 

 

 

$10,001 - $20,000 (4)

 

 

32

 

 

 

3,721

 

 

 

439,000

 

 

 

458,900

 

 

 

63,100

 

 

 

15,300

 

 

 

47,900

 

 

 

> $20,001

 

 

22

 

 

 

3,738

 

 

 

803,100

 

 

 

861,900

 

 

 

115,100

 

 

 

23,100

 

 

 

91,900

 

 

 

Announced projects

 

 

82

 

 

 

9,641

 

 

$

1,367,700

 

 

$

1,448,700

 

 

$

201,600

 

 

$

44,100

 

 

$

157,500

 

 

10.5-11.5%

Acquired projects

 

 

15

 

 

 

 

 

 

 

63,600

 

 

 

63,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total projects

 

 

97

 

 

 

 

 

 

$

1,431,300

 

 

$

1,512,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Total estimated development costs exclude, and total estimated project costs include, termination fees to recapture 100% of certain properties.

(2)

Projected annual income includes assumptions on stabilized rents to be achieved for space under redevelopment.  There can be no assurance that stabilized rent targets will be achieved.

(3)

Projected incremental annual income divided by total estimated project costs.

(4)

Includes Saugus, MA project which has been temporarily postponed while the Company identifies a new lead tenant.

- 14 -


PROPERTY INFORMATION

 

 

 

Redevelopment Projects (cont’d)

December 31, 2018

 

The tables below provide brief descriptions of each of the redevelopment projects originated on the Company’s platform since its inception:

 

Total Project Costs under $10 Million

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Estimated

 

Estimated

 

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

Construction

 

Substantial

Property

 

Description

 

Square Feet

 

 

Start

 

Completion

King of Prussia, PA

 

Repurpose former auto center space for Outback Steakhouse, Yard House and small shop retail

 

 

29,100

 

 

Complete

Merrillville, IN

 

Termination property; redevelop existing store for At Home and small shop retail

 

 

132,000

 

 

Complete

Elkhart, IN

 

Termination property; existing store has been released to Big R Stores

 

 

86,500

 

 

Complete

Bowie, MD

 

Recapture and repurpose auto center space for BJ's Brewhouse

 

 

8,200

 

 

Complete

Troy, MI

 

Partial recapture; redevelop existing store for At Home

 

 

100,000

 

 

Complete

Rehoboth Beach, DE

 

Partial recapture; redevelop existing store for andThat! and PetSmart

 

 

56,700

 

 

Complete

Henderson, NV

 

Termination property; redevelop existing store for At Home, Seafood City, Blink Fitness and additional retail

 

 

144,400

 

 

Complete

Cullman, AL

 

Termination property; redevelop existing store for Bargain Hunt, Tractor Supply and Planet Fitness

 

 

99,000

 

 

Complete

Jefferson City, MO

 

Termination property; redevelop existing store for Orscheln Farm and Home

 

 

96,000

 

 

Complete

Guaynabo, PR

 

Partial recapture; redevelop existing store for Planet Fitness, Capri and additional retail and restaurants

 

 

56,100

 

 

Complete

Ft. Wayne, IN

 

Site densification (project expansion); new outparcels for BJ's Brewhouse and Chick-Fil-A

 

 

12,000

 

 

Complete

Westwood, TX

 

Termination property; site has been leased to Sonic Automotive and will be repurposed as an auto dealership

 

 

213,600

 

 

Complete

Albany, NY

 

Recapture and repurpose auto center space for BJ's Brewhouse, Ethan Allen and additional small shop retail

 

 

28,000

 

 

Substantially complete

Kearney, NE

 

Termination property; redevelop existing store for Marshall's, PetSmart, Ross Dress for Less and Five Below

 

 

92,500

 

 

Substantially complete

Dayton, OH

 

Recapture and repurpose auto center space for Outback Steakhouse and additional restaurants

 

 

14,100

 

 

Substantially complete

Florissant, MO

 

Site densification; new outparcel for Chick-Fil-A

 

 

5,000

 

 

Delivered to tenant

St. Clair Shores, MI

 

100% recapture; demolish existing store and develop site for new Kroger grocery store

 

 

107,200

 

 

Delivered to tenant

Hagerstown, MD

 

Recapture and repurpose auto center space for BJ's Brewhouse, Verizon and additional retail

 

 

15,400

 

 

Sold

New Iberia, LA

 

Termination property; redevelop existing store for Ross Dress for Less, Rouses Supermarkets, Hobby Lobby and small shop retail

 

 

93,100

 

 

Underway

 

Q1 2019

North Little Rock, AR

 

Recapture and repurpose auto center space for LongHorn Steakhouse and additional small shop retail

 

 

17,300

 

 

Underway

 

Q2 2019

Hopkinsville, KY

 

Termination property; redevelop existing store for Bargain Hunt, Farmer's Furniture, Harbor Freight Tools and small shop retail

 

 

87,900

 

 

Underway

 

Q2 2019

Mt. Pleasant, PA

 

Termination property; redevelop existing store for Aldi, Big Lots and additional retail

 

 

86,300

 

 

Underway

 

Q3 2019

Oklahoma City, OK

 

Site densification; new fitness center for Vasa Fitness

 

 

59,500

 

 

Underway

 

Q3 2019

Gainesville, FL

 

Termination property; repurpose existing store as office space for Florida Clinical Practice Association / University of Florida College of Medicine

 

 

139,100

 

 

Underway

 

Q4 2019

Layton, UT

 

Termination property; a portion of the space has been leased to Extra Space Storage and will be repurposed as self storage; existing tenants include Vasa Fitness and small shop retail

 

 

172,100

 

 

Q1 2019

 

Q2 2019

Hampton, VA

 

Site densification; new outparcel for  Chick-fil-A

 

 

2,200

 

 

Sold

Houston, TX

 

100% recapture; entered into ground lease with adjacent mall with potential to participate in future redevelopment

 

 

214,400

 

 

Q1 2019

 

Q2 2019

Hialeah, FL

 

Recapture and repurpose auto center space for restaurants and small shop retail

 

 

14,000

 

 

Q2 2019

 

Q1 2020

- 15 -


PROPERTY INFORMATION

 

 

 

Redevelopment Projects (cont’d)

December 31, 2018

 

 

Total Project Costs $10 - $20 Million

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Estimated

 

Estimated

 

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

Construction

 

Substantial

Property

 

Description

 

Square Feet

 

 

Start

 

Completion

Braintree, MA

 

100% recapture; redevelop existing store for Nordstrom Rack, Saks OFF 5th and additional retail

 

 

90,000

 

 

Complete

Honolulu, HI

 

100% recapture; redevelop existing store for Longs Drugs (CVS), PetSmart and Ross Dress for Less

 

 

79,000

 

 

Complete

Anderson, SC

 

100% recapture (project expansion); redevelop existing store for Burlington Stores, Gold's Gym, Sportsman's Warehouse, additional retail and restaurants

 

 

111,300

 

 

Complete

Madison, WI

 

Partial recapture; redevelop existing store for Dave & Busters, Total Wine & More, additional retail and restaurants

 

 

75,300

 

 

Substantially complete

Orlando, FL

 

100% recapture; demolish and construct new buildings for Floor & Decor, Orchard Supply Hardware, LongHorn Steakhouse, Mission BBQ, Olive Garden and additional small shop retail and restaurants

 

 

139,200

 

 

Substantially complete

Paducah, KY

 

Termination property; redevelop existing store for Burlington Stores, Ross Dress for Less and additional retail

 

 

102,300

 

 

Substantially complete

Springfield, IL

 

Termination property; redevelop existing store for Burlington Stores, Binny's Beverage Depot, Marshall's, Orangetheory Fitness, Outback Steakhouse, CoreLife Eatery and additional small shop retail

 

 

133,400

 

 

Substantially complete

Thornton, CO

 

Termination property; redevelop existing store for Vasa Fitness and additional junior anchors

 

 

191,600

 

 

Substantially complete

Cockeysville, MD

 

Partial recapture; redevelop existing store for HomeGoods, Michael's Stores, additional junior anchors and restaurants

 

 

83,500

 

 

Substantially complete

Warwick, RI

 

Termination property (project expansion); redevelop existing store and detached auto center for At Home, BJ's Brewhouse, Raymour & Flanigan, additional retail and restaurants

 

 

190,700

 

 

Substantially complete

Salem, NH

 

Densify site with new theatre for Cinemark and recapture and repurpose auto center for restaurant space to join existing tenant Dick's Sporting Goods

 

 

71,200

 

 

Delivered to tenants

Fairfax, VA

 

Partial recapture; redevelop existing store and attached auto center for Dave & Busters, additional junior anchors and restaurants

 

 

110,300

 

 

Delivered to tenants

Temecula, CA

 

Partial recapture; redevelop existing store and detached auto center for Round One, small shop retail and restaurants

 

 

65,100

 

 

Delivered to tenant

Hialeah, FL

 

100% recapture; redevelop existing store for Bed, Bath & Beyond, Ross Dress for Less and dd's Discounts to join current tenant, Aldi

 

 

88,400

 

 

Delivered to tenants

Santa Cruz, CA

 

Partial recapture; redevelop existing store for TJ Maxx, HomeGoods and additional junior anchors

 

 

62,200

 

 

Sold

North Hollywood, CA

 

Partial recapture; redevelop existing store for Burlington Stores and Ross Dress for Less

 

 

79,800

 

 

Underway

 

Q1 2019

North Miami, FL

 

100% recapture; redevelop existing store for Blink Fitness, Burlington Stores, Michael's and Ross Dress for Less

 

 

124,300

 

 

Underway

 

Q2 2019

Canton, OH

 

Partial recapture; redevelop existing store for Dave & Busters and restaurants

 

 

83,900

 

 

Underway

 

Q2 2019

North Riverside, IL

 

Partial recapture; redevelop existing store and detached auto center for Blink Fitness, Round One, additional junior anchors, small shop retail and restaurants

 

 

103,900

 

 

Underway

 

Q2 2019

Olean, NY

 

Termination property (project expansion); redevelop existing store for Marshall's, Ollie's Bargain Basement and additional retail

 

 

125,700

 

 

Underway

 

Q2 2019

West Jordan, UT

 

Termination property (project expansion); redevelop existing store and attached auto center for At Home, Burlington Stores and additional retail

 

 

190,300

 

 

Underway

 

Q2 2019

Las Vegas, NV

 

Partial recapture; redevelop existing store for Round One and additional retail

 

 

78,800

 

 

Underway

 

Q3 2019

Roseville, MI

 

Termination property (project expansion); redevelop existing store for At Home, Hobby Lobby, Chick-fil-A and additional retail

 

 

369,800

 

 

Underway

 

Q3 2019

Yorktown Heights, NY

 

Partial recapture; redevelop existing store for 24 Hour Fitness and retail uses

 

 

85,200

 

 

Underway

 

Q4 2019

Charleston, SC

 

100% recapture (project expansion); redevelop existing store and detached auto center for Burlington Stores and additional retail

 

 

126,700

 

 

Underway

 

Q4 2019

Chicago, IL (Kedzie)

 

Termination property; redevelop existing store for Ross Dress for Less, dd's Discounts, Blink Fitness and additional retail

 

 

123,300

 

 

Underway

 

Q4 2019

El Paso, TX

 

Termination property; redevelop existing store for Ross Dress for Less, dd's Discounts and additional retail

 

 

114,700

 

 

Underway

 

Q4 2019

- 16 -


PROPERTY INFORMATION

 

 

 

Redevelopment Projects (cont’d)

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Project Costs $10 - $20 Million (cont’d)

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Estimated

 

Estimated

 

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

Construction

 

Substantial

Property

 

Description

 

Square Feet

 

 

Start

 

Completion

Warrenton, VA

 

Termination property; redevelop existing store for HomeGoods and additional retail

 

 

97,300

 

 

Q1 2019

 

Q3 2019

Pensacola, FL

 

Termination property; redevelop existing store for BJ's Wholesale, additional retail and restaurants

 

 

134,700

 

 

Q1 2019

 

Q1 2020

Vancouver, WA

 

Partial recapture; redevelop existing store for Round One, Hobby Lobby and additional retail and restaurants

 

 

72,400

 

 

Q1 2019

 

Q2 2020

Manchester, NH

 

Termination property; redevelop existing store for Dick's Sporting Goods, Dave & Busters, additional retail and restaurants

 

 

117,700

 

 

Q3 2019

 

Q3 2020

Saugus, MA

 

Partial recapture; redevelop existing store and detached auto center (note: temporarily postponed while the Company identifies a new lead tenant)

 

 

99,000

 

 

To be determined

- 17 -


PROPERTY INFORMATION

 

 

 

Redevelopment Projects (cont’d)

December 31, 2018

 

 

Total Project Costs over $20 Million

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Estimated

 

Estimated

 

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

Construction

 

Substantial

Property

 

Description

 

Square Feet

 

 

Start

 

Completion

Memphis, TN

 

100% recapture; demolish and construct new buildings for LA Fitness, Nordstrom Rack, Ulta Beauty, Hopdoddy Burger Bar and additional junior anchors, restaurants and small shop retail

 

 

135,200

 

 

Complete

St. Petersburg, FL

 

100% recapture; demolish and construct new buildings for Dick's Sporting Goods, Lucky's Market, PetSmart, Five Below, Chili's Grill & Bar, Pollo Tropical, LongHorn Steakhouse, Verizon and additional small shop retail and restaurants

 

 

142,400

 

 

Complete

West Hartford, CT

 

100% recapture; redevelop existing store and detached auto center for buybuyBaby, Cost Plus World Market, REI, Saks OFF Fifth, other junior anchors, Shake Shack and additional small shop retail (note: contributed to West Hartford JV in Q2 2018)

 

 

147,600

 

 

Substantially complete

Wayne, NJ

 

Partial recapture (project expansion); redevelop existing store and detached auto center for Cinemark, Dave & Busters and additional junior anchors and restaurants (note: contributed to GGP II JV in Q3 2017)

 

 

156,700

 

 

Delivered to tenant

Carson, CA

 

100% recapture (project expansion); redevelop existing store for Burlington Stores, Ross Dress for Less, Gold's Gym and additional retail

 

 

163,800

 

 

Underway

 

Q1 2019

Watchung, NJ

 

100% recapture; demolish full-line store and detached auto center and construct new buildings for Cinemark, HomeSense, Sierra Trading Post, Ulta Beauty, Chick-fil-A, small shop retail and additional restaurants

 

 

126,700

 

 

Underway

 

Q2 2019

Austin, TX

 

100% recapture (project expansion); redevelop existing store for AMC Theatres, additional junior anchors and restaurants

 

 

177,400

 

 

Underway

 

Q3 2019

El Cajon, CA

 

100% recapture; redevelop existing store and auto center for Ashley Furniture, Bob's Discount Furniture, Burlington Stores and additional retail and restaurants; a portion of the space has been leased to Extra Space Storage and will be repurposed as self storage

 

 

242,700

 

 

Underway

 

Q3 2019

Anchorage, AK

 

100% recapture; redevelop existing store for Guitar Center, Safeway, Planet Fitness and additional retail to join current tenant, Nordstrom Rack

 

 

142,500

 

 

Underway

 

Q4 2019

Aventura, FL

 

100% recapture; demolish existing store and construct new, multi-level open air retail destination featuring a leading collection of experiential shopping, dining and entertainment concepts alongside a treelined esplanade and activated plazas

 

 

216,600

 

 

Underway

 

Q4 2019

East Northport, NY

 

Termination property; redevelop existing store and attached auto center for AMC Theatres, 24 Hour Fitness, Floor & Decor and small shop retail

 

 

179,700

 

 

Underway

 

Q4 2019

Greendale, WI

 

Termination property; redevelop existing store and attached auto center for Dick's Sporting Goods, Round One, TJ Maxx, additional retail and restaurants

 

 

223,800

 

 

Underway

 

Q4 2019

Reno, NV

 

100% recapture; redevelop existing store and auto center for Round One and additional retail

 

 

169,800

 

 

Underway

 

Q4 2019

San Diego, CA

 

100% recapture; redevelop existing store into two highly-visible, multi-level buildings with exterior facing retail space leased to Equinox Fitness and a premier mix of experiential shopping, dining, and entertainment concepts (note: contributed to UTC JV in Q2 2018)

 

 

206,000

 

 

Underway

 

Q4 2019

Santa Monica, CA

 

100% recapture; redevelop existing building into premier, mixed-use asset featuring unique, small-shop retail and creative office space (note: contributed to Mark 302 JV in Q1 2018)

 

 

96,500

 

 

Underway

 

Q4 2019

Tucson, AZ

 

100% recapture; redevelop existing store and auto center for Round One and additional retail

 

 

224,300

 

 

Underway

 

Q4 2019

Fairfield, CA

 

100% recapture (project expansion); redevelop existing store and auto center for Dave & Busters, AAA Auto Repair Center and additional retail

 

 

146,500

 

 

Underway

 

Q1 2020

Roseville, CA

 

Termination property (project expansion): redevelop existing store and auto center for Cinemark, Round One, AAA Auto Repair Center, additional retail and restaurants

 

 

147,400

 

 

Underway

 

Q2 2020

Plantation, FL

 

100% recapture (project expansion); redevelop existing store and auto center for GameTime, Powerhouse Gym, additional retail and restaurants

 

 

184,400

 

 

Underway

 

Q1 2020

San Antonio, TX

 

Termination property (project expansion); redevelop existing store for Bed Bath & Beyond, buybuyBaby, Tru Fit and additional retail to complement repurposed auto center occupied by Orvis, Jared's Jeweler and Shake Shack

 

 

215,900

 

 

Q1 2019

 

Q2 2020

- 18 -


PROPERTY INFORMATION

 

 

 

Redevelopment Projects (cont’d)

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Project Costs over $20 Million (cont’d)

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Estimated

 

Estimated

 

 

 

 

 

 

 

 

 

 

 

 

Project

 

 

Construction

 

Substantial

Property

 

Description

 

Square Feet

 

 

Start

 

Completion

Asheville, NC

 

100% recapture; redevelop existing store and auto center for Alamo Drafthouse, restaurants and small shop retail

 

 

110,600

 

 

Q1 2019

 

Q3 2020

Orland Park, IL

 

100% recapture; redevelop existing store for AMC Theatres, 24 Hour Fitness, additional retail and restaurants

 

 

181,900

 

 

Q3 2019

 

Q4 2020

- 19 -


PROPERTY INFORMATION

 

 

 

Termination Properties

December 31, 2018

As of December 31, 2018, Sears Holdings had terminated the Master Lease, or provided notice of its intent to terminate the Master Lease, with respect to 87 stores totaling 11.7 million square feet of gross leasable area.

As of December 31, 2018, the Company had completed or commenced redevelopment projects at 39 of the terminated properties and will continue to announce redevelopment activity as new leases are signed to occupy the space formerly occupied by Sears Holdings.  As of December 31, 2018, the Company had also sold ten of the terminated properties.

The table below includes the 87 properties at which Sears Holdings has terminated the Master Lease, or provided notice of its intent to terminate the Master Lease, as of December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

Announced

Property

 

Square Feet

 

 

Notice

 

Termination

 

Redevelopment

Antioch, CA

 

 

95,200

 

 

August 2018

 

December 2018

 

 

Columbus, MS

 

 

117,100

 

 

August 2018

 

December 2018

 

 

Dayton, OH

 

 

148,800

 

 

August 2018

 

December 2018

 

Q2 2017

Flagstaff, AZ

 

 

66,200

 

 

August 2018

 

December 2018

 

 

Ft. Wayne, IN

 

 

213,600

 

 

August 2018

 

December 2018

 

Q3 2016 / Q3 2017

Jackson, MI

 

 

144,200

 

 

August 2018

 

December 2018

 

 

Manchester, NH

 

 

135,100

 

 

August 2018

 

December 2018

 

Q4 2018

Salem, NH

 

 

119,000

 

 

August 2018

 

December 2018

 

Q4 2017

Savannah, GA

 

 

155,700

 

 

August 2018

 

December 2018

 

 

Scott Depot, WV

 

 

89,800

 

 

August 2018

 

December 2018

 

 

Steger, IL

 

 

87,400

 

 

August 2018

 

December 2018

 

 

Victor, NY

 

 

115,300

 

 

August 2018

 

December 2018

 

 

West Jordan, UT

 

 

117,300

 

 

August 2018

 

December 2018

 

Q3 2016 / Q3 2018

Chesapeake, VA

 

 

169,400

 

 

June 2018

 

November 2018

 

 

Clay, NY

 

 

138,000

 

 

June 2018

 

November 2018

 

 

Havre, MT

 

 

94,700

 

 

June 2018

 

November 2018

 

 

Newark, CA

 

 

145,800

 

 

June 2018

 

November 2018

 

 

Oklahoma City, OK

 

 

173,700

 

 

June 2018

 

November 2018

 

Q3 2017

Troy, MI

 

 

271,300

 

 

June 2018

 

November 2018

 

Q3 2016

Virginia Beach, VA

 

 

86,900

 

 

June 2018

 

November 2018

 

Q3 2015

Madison, WI

 

 

88,100

 

 

June 2018

 

October 2018

 

Q2 2016

Thousand Oaks, CA

 

 

50,300

 

 

June 2018

 

October 2018

 

Q3 2015

Cedar Rapids, IA

 

 

141,100

 

 

April 2018

 

August 2018

 

 

Citrus Heights, CA

 

 

280,700

 

 

April 2018

 

August 2018

 

 

Gainesville, FL

 

 

140,500

 

 

April 2018

 

August 2018

 

Q2 2018

Maplewood, MN

 

 

168,500

 

 

April 2018

 

August 2018

 

 

Pensacola, FL

 

 

212,300

 

 

April 2018

 

August 2018

 

Q2 2018

Rochester, NY

 

 

128,500

 

 

April 2018

 

August 2018

 

 

Roseville, CA

 

 

121,000

 

 

April 2018

 

August 2018

 

Q2 2017 / Q1 2018

San Antonio, TX

 

 

187,800

 

 

April 2018

 

August 2018

 

Q4 2015

Warrenton, VA

 

 

113,900

 

 

April 2018

 

August 2018

 

Q1 2018

Westwood, TX

 

 

215,000

 

 

June 2017

 

January 2018 (1)

 

Q3 2018

Friendswood, TX

 

 

166,000

 

 

June 2017

 

November 2017 (1)

 

 

Albany, NY

 

 

216,200

 

 

June 2017

 

October 2017

 

Q1 2016

Burnsville, MN

 

 

161,700

 

 

June 2017

 

October 2017

 

 

Chicago, IL (N Harlem)

 

 

293,700

 

 

June 2017

 

October 2017

 

 

Cockeysville, MD

 

 

83,900

 

 

June 2017

 

October 2017

 

Q1 2017

East Northport, NY

 

 

187,000

 

 

June 2017

 

October 2017

 

Q2 2017

Greendale, WI

 

 

238,400

 

 

June 2017

 

October 2017

 

Q4 2017

Hagerstown, MD

 

 

107,300

 

 

June 2017

 

October 2017

 

Q1 2016 / Sold

Johnson City, NY

 

 

155,100

 

 

June 2017

 

October 2017

 

 

Lafayette, LA

 

 

194,900

 

 

June 2017

 

October 2017

 

 

Mentor, OH

 

 

208,700

 

 

June 2017

 

October 2017

 

 

Middleburg Heights, OH

 

 

351,600

 

 

June 2017

 

October 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

- 20 -


PROPERTY INFORMATION

 

 

 

Termination Properties (cont’d)

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property

 

Square Feet

 

 

Notice

 

Termination

 

Redevelopment

Olean, NY

 

 

75,100

 

 

June 2017

 

October 2017

 

Q1 2017

Overland Park, KS

 

 

215,000

 

 

June 2017

 

October 2017

 

 

Roseville, MI

 

 

277,000

 

 

June 2017

 

October 2017

 

Q3 2016

Sarasota, FL

 

 

204,500

 

 

June 2017

 

October 2017

 

 

Toledo, OH

 

 

209,900

 

 

June 2017

 

October 2017

 

 

Warwick, RI

 

 

169,200

 

 

June 2017

 

October 2017

 

Q3 2016 / Q3 2017

York, PA

 

 

82,000

 

 

June 2017

 

October 2017

 

 

Chapel Hill, OH

 

 

187,179

 

 

January 2017

 

April 2017

 

 

Concord, NC

 

 

137,499

 

 

January 2017

 

April 2017

 

 

Detroit Lakes, MN

 

 

79,102

 

 

January 2017

 

April 2017

 

 

El Paso, TX

 

 

103,657

 

 

January 2017

 

April 2017

 

Q2 2018

Elkins, WV

 

 

94,885

 

 

January 2017

 

April 2017

 

Sold

Henderson, NV

 

 

122,823

 

 

January 2017

 

April 2017

 

Q1 2017

Hopkinsville, KY

 

 

70,326

 

 

January 2017

 

April 2017

 

Q1 2018

Jefferson City, MO

 

 

92,016

 

 

January 2017

 

April 2017

 

Q2 2017

Kenton, OH

 

 

96,066

 

 

January 2017

 

April 2017

 

 

Kissimmee, FL

 

 

112,505

 

 

January 2017

 

April 2017

 

 

Layton, UT

 

 

90,010

 

 

January 2017

 

April 2017

 

Q3 2018

Leavenworth, KS

 

 

76,853

 

 

January 2017

 

April 2017

 

 

Mt. Pleasant, PA

 

 

83,536

 

 

January 2017

 

April 2017

 

Q2 2018

Muskogee, OK

 

 

87,500

 

 

January 2017

 

April 2017

 

Sold

Owensboro, KY

 

 

68,334

 

 

January 2017

 

April 2017

 

Sold

Paducah, KY

 

 

108,244

 

 

January 2017

 

April 2017

 

Q3 2017

Platteville, WI

 

 

94,841

 

 

January 2017

 

April 2017

 

Sold

Riverside, CA (Iowa Ave.)

 

 

94,500

 

 

January 2017

 

April 2017

 

 

Sioux Falls, SD

 

 

72,511

 

 

January 2017

 

April 2017

 

Sold

Alpena, MI

 

 

118,200

 

 

September 2016

 

January 2017

 

 

Chicago, IL (S Kedzie)

 

 

118,800

 

 

September 2016

 

January 2017

 

Q3 2018

Cullman, AL

 

 

98,500

 

 

September 2016

 

January 2017

 

Q2 2017

Deming, NM

 

 

96,600

 

 

September 2016

 

January 2017

 

 

Elkhart, IN

 

 

86,500

 

 

September 2016

 

January 2017

 

Q4 2016

Harlingen, TX

 

 

91,700

 

 

September 2016

 

January 2017

 

Sold

Houma, LA

 

 

96,700

 

 

September 2016

 

January 2017

 

Sold

Kearney, NE

 

 

86,500

 

 

September 2016

 

January 2017

 

Q3 2016

Manistee, MI

 

 

87,800

 

 

September 2016

 

January 2017

 

 

Merrillville, IN

 

 

108,300

 

 

September 2016

 

January 2017

 

Q4 2016

New Iberia, LA

 

 

91,700

 

 

September 2016

 

January 2017

 

Q2 2017

Riverton, WY

 

 

94,800

 

 

September 2016

 

January 2017

 

 

Sault Sainte Marie, MI

 

 

92,700

 

 

September 2016

 

January 2017

 

 

Sierra Vista, AZ

 

 

86,100

 

 

September 2016

 

January 2017

 

Sold

Springfield, IL

 

 

84,200

 

 

September 2016

 

January 2017

 

Q3 2016

Thornton, CO

 

 

190,200

 

 

September 2016

 

January 2017

 

Q1 2017

Yakima, WA

 

 

97,300

 

 

September 2016

 

January 2017

 

Sold

Total square feet

 

 

11,728,387

 

 

 

 

 

 

 

 

(1)

The Company and Sears Holdings agreed to extend occupancy beyond October 2017 under the existing Master Lease terms.

 

- 21 -


PROPERTY INFORMATION

 

 

 

Joint Venture Properties

December 31, 2018

Brookfield Retail Partners (formerly GGP, Inc.) Joint Venture Properties

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

Mall Name

 

City

 

State

 

Joint Venture

 

GLA (1)

 

 

Leased (1)

 

1

 

Northridge Fashion Center

 

Northridge

 

CA

 

GGP II JV

 

 

145,900

 

 

 

100.0

%

2

 

Altamonte Mall

 

Altamonte Springs

 

FL

 

GGP II JV

 

 

107,200

 

 

 

4.1

%

3

 

Coastland Center

 

Naples

 

FL

 

GGP II JV

 

 

80,900

 

 

 

31.0

%

4

 

Cumberland Mall

 

Atlanta

 

GA

 

GGP II JV

 

 

109,400

 

 

 

0.0

%

5

 

Natick Collection (2)

 

Natick

 

MA

 

GGP I JV

 

 

95,400

 

 

 

74.9

%

6

 

Willowbrook Mall

 

Wayne

 

NJ

 

GGP II JV

 

 

140,600

 

 

 

77.7

%

7

 

Sooner Mall (2)

 

Norman

 

OK

 

GGP I JV

 

 

33,400

 

 

 

100.0

%

8

 

Stonebriar Centre

 

Frisco

 

TX

 

GGP I JV

 

 

81,500

 

 

 

100.0

%

9

 

Alderwood

 

Lynnwood

 

WA

 

GGP I JV

 

 

88,800

 

 

 

27.7

%

 

(1)

Based on signed leases as of December 31, 2018; GLA presented at the Company's proportional share.

(2)

Property is subject to a lease or ground lease agreement.

Simon Joint Venture Properties

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

Mall Name

 

City

 

State

 

Joint Venture

 

GLA (1)

 

 

Leased (1)

 

1

 

Santa Rosa Plaza

 

Santa Rosa

 

CA

 

Simon JV

 

 

82,700

 

 

 

100.0

%

2

 

Briarwood

 

Ann Arbor

 

MI

 

Simon JV

 

 

85,300

 

 

 

100.0

%

3

 

The Shops at Nanuet

 

Nanuet

 

NY

 

Simon JV

 

 

110,700

 

 

 

100.0

%

4

 

Woodland Hills Mall

 

Tulsa

 

OK

 

Simon JV

 

 

75,100

 

 

 

100.0

%

5

 

Barton Creek Square

 

Austin

 

TX

 

Simon JV

 

 

82,300

 

 

 

100.0

%

 

(1)

Based on signed leases as of December 31, 2018; GLA presented at the Company's proportional share.

 

- 22 -


PROPERTY INFORMATION

 

 

 

Joint Venture Properties (cont’d)

December 31, 2018

Macerich Joint Venture Properties

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

Mall Name

 

City

 

State

 

Joint Venture

 

GLA (1)

 

 

Leased (1)

 

1

 

Chandler Fashion Center

 

Chandler

 

AZ

 

Macerich JV

 

 

70,700

 

 

 

100.0

%

2

 

Arrowhead Towne Center

 

Glendale

 

AZ

 

Macerich JV

 

 

62,500

 

 

 

100.0

%

3

 

Los Cerritos Center

 

Cerritos

 

CA

 

Macerich JV

 

 

138,800

 

 

 

100.0

%

4

 

Vintage Faire Mall

 

Modesto

 

CA

 

Macerich JV

 

 

74,200

 

 

 

100.0

%

5

 

Danbury Fair

 

Danbury

 

CT

 

Macerich JV

 

 

89,200

 

 

 

100.0

%

6

 

Deptford Mall

 

Deptford

 

NJ

 

Macerich JV

 

 

95,900

 

 

 

100.0

%

7

 

Freehold Raceway Mall

 

Freehold

 

NJ

 

Macerich JV

 

 

69,400

 

 

 

100.0

%

8

 

Washington Square Mall

 

Portland

 

OR

 

Macerich JV

 

 

110,000

 

 

 

100.0

%

9

 

South Plains Mall

 

Lubbock

 

TX

 

Macerich JV

 

 

75,300

 

 

 

100.0

%

 

(1)

Based on signed leases as of December 31, 2018; GLA presented at the Company's proportional share.

Invesco Real Estate Joint Venture Properties

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

Property Address

 

City

 

State

 

Joint Venture

 

GLA (1)

 

 

Leased (1)

 

1

 

302 Colorado Avenue

 

Santa Monica

 

CA

 

Mark 302 JV

 

 

48,200

 

 

 

0.0

%

2

 

4575 La Jolla Village Drive

 

San Diego

 

CA

 

UTC JV

 

 

113,100

 

 

 

23.3

%

 

(1)

Based on signed leases as of December 31, 2018; GLA presented at the Company's proportional share.

First Washington Joint Venture Property

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

Property Address

 

City

 

State

 

Joint Venture

 

GLA (1)

 

 

Leased (1)

 

1

 

1445 New Britain Avenue

 

West Hartford

 

CT

 

West Hartford JV

 

 

81,800

 

 

 

61.7

%

 

(1)

Based on signed leases as of December 31, 2018; GLA presented at the Company's proportional share.

 

 

- 23 -


PROPERTY INFORMATION

 

 

 

Wholly Owned Properties

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

Holdco

 

Total

 

 

 

 

 

 

Land

 

 

 

Property Address

 

City

 

State

 

Property Type (1)

 

Master Lease (2)

 

GLA (3)

 

 

Leased (3)

 

 

Acres

 

1

 

700 East Northern Lights Boulevard

 

Anchorage

 

AK

 

Shopping Center

 

 

 

 

158,600

 

 

 

81.4

%

 

 

26

 

2

 

1731 2nd Avenue Southwest

 

Cullman

 

AL

 

Freestanding

 

 

 

 

88,500

 

 

 

100.0

%

 

 

6

 

3

 

3930 McCain Boulevard

 

North Little Rock

 

AR

 

Mall

 

X

 

 

177,100

 

 

 

94.2

%

 

 

15

 

4

 

4800 North US Highway 89

 

Flagstaff

 

AZ

 

Mall

 

 

 

 

66,200

 

 

 

0.0

%

 

 

7

 

5

 

6515 East Southern Avenue

 

Mesa

 

AZ

 

Mall

 

 

 

 

121,900

 

 

 

100.0

%

 

 

11

 

6

 

10140 North 91st Avenue

 

Peoria

 

AZ

 

Shopping Center

 

 

 

 

104,400

 

 

 

100.0

%

 

 

10

 

7

 

7611 West Thomas Road

 

Phoenix

 

AZ

 

Mall

 

 

 

 

144,200

 

 

 

100.0

%

 

 

10

 

8

 

12025 North 32nd Street

 

Phoenix

 

AZ

 

Freestanding

 

 

 

 

151,200

 

 

 

100.0

%

 

 

11

 

9

 

3400 Gateway Boulevard

 

Prescott

 

AZ

 

Mall

 

X

 

 

102,300

 

 

 

100.0

%

 

 

10

 

10

 

2250 El Mercado Loop

 

Sierra Vista

 

AZ

 

Mall

 

 

 

 

94,700

 

 

 

100.0

%

 

 

7

 

11

 

5950 East Broadway Boulevard

 

Tucson

 

AZ

 

Mall

 

 

 

 

218,900

 

 

 

23.1

%

 

 

20

 

12

 

3150 South 4th Avenue

 

Yuma

 

AZ

 

Shopping Center

 

 

 

 

90,400

 

 

 

100.0

%

 

 

14

 

13

 

3625 East 18th Street

 

Antioch

 

CA

 

Shopping Center

 

 

 

 

95,200

 

 

 

0.0

%

 

 

7

 

14

 

42126 Big Bear Boulevard

 

Big Bear Lake

 

CA

 

Shopping Center

 

X

 

 

80,400

 

 

 

91.2

%

 

 

8

 

15

 

20700 South Avalon Boulevard

 

Carson

 

CA

 

Mall

 

 

 

 

182,900

 

 

 

83.7

%

 

 

13

 

16

 

565 Broadway

 

Chula Vista

 

CA

 

Mall

 

X

 

 

250,100

 

 

 

100.0

%

 

 

16

 

17

 

5900 Sunrise Mall

 

Citrus Heights

 

CA

 

Mall

 

 

 

 

289,500

 

 

 

0.0

%

 

 

22

 

18

 

912 County Line Road

 

Delano

 

CA

 

Freestanding

 

 

 

 

86,100

 

 

 

100.0

%

 

 

6

 

19

 

575 Fletcher Parkway

 

El Cajon

 

CA

 

Mall

 

 

 

 

244,900

 

 

 

76.6

%

 

 

22

 

20

 

3751 South Dogwood Road

 

El Centro

 

CA

 

Mall

 

 

 

 

139,700

 

 

 

100.0

%

 

 

14

 

21

 

1420 Travis Boulevard

 

Fairfield

 

CA

 

Mall

 

 

 

 

169,500

 

 

 

26.6

%

 

 

9

 

22

 

5901 Florin Road

 

Florin

 

CA

 

Shopping Center

 

 

 

 

272,700

 

 

 

100.0

%

 

 

20

 

23

 

3636 North Blackstone Avenue

 

Fresno

 

CA

 

Shopping Center

 

X

 

 

217,600

 

 

 

100.0

%

 

 

13

 

24

 

1500 Anna Sparks Way

 

McKinleyville

 

CA

 

Shopping Center

 

X

 

 

94,800

 

 

 

100.0

%

 

 

8

 

25

 

1011 West Olive Avenue

 

Merced

 

CA

 

Shopping Center

 

 

 

 

92,600

 

 

 

100.0

%

 

 

10

 

26

 

5080 East Montclair Plaza Lane

 

Montclair

 

CA

 

Mall

 

X

 

 

174,700

 

 

 

100.0

%

 

 

3

 

27

 

22550 Town Circle

 

Moreno Valley

 

CA

 

Mall

 

X

 

 

169,400

 

 

 

100.0

%

 

 

11

 

28

 

6000 Mowry Avenue

 

Newark

 

CA

 

Mall

 

 

 

 

145,800

 

 

 

0.0

%

 

 

10

 

29

 

12121 Victory Boulevard

 

North Hollywood

 

CA

 

Shopping Center

 

X

 

 

161,900

 

 

 

100.0

%

 

 

4

 

30

 

72880 Highway 111

 

Palm Desert

 

CA

 

Mall

 

X

 

 

136,500

 

 

 

100.0

%

 

 

8

 

31

 

1855 Main Street

 

Ramona

 

CA

 

Shopping Center

 

X

 

 

107,600

 

 

 

94.5

%

 

 

10

 

32

 

5261 Arlington Avenue

 

Riverside

 

CA

 

Freestanding

 

X

 

 

214,200

 

 

 

100.0

%

 

 

19

 

33

 

3001 Iowa Avenue

 

Riverside

 

CA

 

Freestanding

 

 

 

 

132,600

 

 

 

28.7

%

 

 

13

 

34

 

1191 Galleria Boulevard

 

Roseville

 

CA

 

Mall

 

 

 

 

131,500

 

 

 

89.9

%

 

 

9

 

35

 

1700 North Main Street

 

Salinas

 

CA

 

Mall

 

X

 

 

133,000

 

 

 

100.0

%

 

 

10

 

36

 

100 Inland Center

 

San Bernardino

 

CA

 

Mall

 

X

 

 

264,700

 

 

 

100.0

%

 

 

22

 

- 24 -


PROPERTY INFORMATION

 

 

 

Wholly Owned Properties

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

Holdco

 

Total

 

 

 

 

 

 

Land

 

 

 

Property Address

 

City

 

State

 

Property Type (1)

 

Master Lease (2)

 

GLA (3)

 

 

Leased (3)

 

 

Acres

 

37

 

1178 El Camino Real

 

San Bruno

 

CA

 

Mall

 

X

 

 

276,600

 

 

 

100.0

%

 

 

13

 

38

 

2180 Tully Road

 

San Jose

 

CA

 

Mall

 

X

 

 

262,500

 

 

 

100.0

%

 

 

22

 

39

 

200 Town Center East

 

Santa Maria

 

CA

 

Mall

 

X

 

 

108,600

 

 

 

100.0

%

 

 

5

 

40

 

895 Faulkner Road

 

Santa Paula

 

CA

 

Freestanding

 

X

 

 

71,300

 

 

 

100.0

%

 

 

10

 

41

 

40710 Winchester Road

 

Temecula

 

CA

 

Mall

 

X

 

 

120,100

 

 

 

94.8

%

 

 

10

 

42

 

145 West Hillcrest Drive

 

Thousand Oaks

 

CA

 

Shopping Center

 

 

 

 

164,000

 

 

 

69.3

%

 

 

11

 

43

 

3295 East Main Street

 

Ventura

 

CA

 

Mall

 

X

 

 

178,600

 

 

 

100.0

%

 

 

2

 

44

 

1209 Plaza Drive

 

West Covina

 

CA

 

Mall

 

X

 

 

142,000

 

 

 

100.0

%

 

 

16

 

45

 

100 Westminster Mall

 

Westminster

 

CA

 

Mall

 

 

 

 

197,900

 

 

 

0.0

%

 

 

14

 

46

 

10785 West Colfax Avenue

 

Lakewood

 

CO

 

Shopping Center

 

 

 

 

153,000

 

 

 

100.0

%

 

 

8

 

47

 

1400 East 104th Avenue

 

Thornton

 

CO

 

Shopping Center

 

 

 

 

186,800

 

 

 

30.5

%

 

 

25

 

48

 

850 Hartford Turnpike

 

Waterford

 

CT

 

Mall

 

 

 

 

149,300

 

 

 

100.0

%

 

 

11

 

49

 

19563 Coastal Highway

 

Rehoboth Beach

 

DE

 

Freestanding

 

X

 

 

123,300

 

 

 

100.0

%

 

 

13

 

50

 

5900 Glades Road

 

Boca Raton

 

FL

 

Mall

 

 

 

 

178,500

 

 

 

2.4

%

 

 

19

 

51

 

303 U.S. Highway 301 Boulevard West

 

Bradenton

 

FL

 

Mall

 

 

 

 

99,900

 

 

 

100.0

%

 

 

15

 

52

 

7350 Manatee Avenue West

 

Bradenton

 

FL

 

Shopping Center

 

X

 

 

82,900

 

 

 

100.0

%

 

 

9

 

53

 

27001 U.S. 19 North

 

Clearwater

 

FL

 

Mall

 

 

 

 

211,200

 

 

 

41.4

%

 

 

14

 

54

 

1625 Northwest 107th Avenue

 

Doral

 

FL

 

Mall

 

 

 

 

212,900

 

 

 

100.0

%

 

 

13

 

55

 

4125 Cleveland Avenue

 

Ft. Myers

 

FL

 

Mall

 

X

 

 

146,800

 

 

 

100.0

%

 

 

12

 

56

 

6201 West Newberry Road

 

Gainesville

 

FL

 

Mall

 

 

 

 

139,100

 

 

 

100.0

%

 

 

8

 

57

 

1675 West 49th Street

 

Hialeah

 

FL

 

Mall

 

X

 

 

197,400

 

 

 

100.0

%

 

 

8

 

58

 

1460 West 49th Street

 

Hialeah

 

FL

 

Freestanding

 

 

 

 

106,300

 

 

 

100.0

%

 

 

9

 

59

 

2211 West Vine Street

 

Kissimmee

 

FL

 

Shopping Center

 

 

 

 

148,900

 

 

 

24.4

%

 

 

14

 

60

 

3800 US Highway 98 North

 

Lakeland

 

FL

 

Mall

 

 

 

 

156,200

 

 

 

100.0

%

 

 

12

 

61

 

1050 South Babcock Street

 

Melbourne

 

FL

 

Freestanding

 

 

 

 

102,600

 

 

 

100.0

%

 

 

14

 

62

 

19505 Biscayne Boulevard

 

Miami

 

FL

 

Mall

 

 

 

 

173,300

 

 

 

13.8

%

 

 

12

 

63

 

20701 Southwest 112th Avenue

 

Miami

 

FL

 

Mall

 

X

 

 

170,100

 

 

 

100.0

%

 

 

15

 

64

 

10700 Biscayne Boulevard

 

North Miami

 

FL

 

Freestanding

 

 

 

 

119,900

 

 

 

95.0

%

 

 

11

 

65

 

3100 Southwest College Road

 

Ocala

 

FL

 

Mall

 

 

 

 

146,200

 

 

 

100.0

%

 

 

12

 

66

 

380 Blanding Boulevard

 

Orange Park

 

FL

 

Shopping Center

 

 

 

 

87,400

 

 

 

100.0

%

 

 

9

 

67

 

3111 East Colonial Drive

 

Orlando

 

FL

 

Mall

 

 

 

 

130,400

 

 

 

92.3

%

 

 

18

 

68

 

733 North Highway 231

 

Panama City

 

FL

 

Mall

 

 

 

 

139,300

 

 

 

100.0

%

 

 

15

 

69

 

7171 North Davis Highway

 

Pensacola

 

FL

 

Shopping Center

 

 

 

 

127,900

 

 

 

79.5

%

 

 

15

 

70

 

8000 West Broward Boulevard

 

Plantation

 

FL

 

Mall

 

 

 

 

184,300

 

 

 

60.0

%

 

 

18

 

71

 

8201 South Tamiami Trail

 

Sarasota

 

FL

 

Mall

 

 

 

 

204,500

 

 

 

0.0

%

 

 

15

 

72

 

4501 66th Street North

 

St. Petersburg

 

FL

 

Freestanding

 

X

 

 

120,600

 

 

 

100.0

%

 

 

11

 

- 25 -


PROPERTY INFORMATION

 

 

 

Wholly Owned Properties

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

Holdco

 

Total

 

 

 

 

 

 

Land

 

 

 

Property Address

 

City

 

State

 

Property Type (1)

 

Master Lease (2)

 

GLA (3)

 

 

Leased (3)

 

 

Acres

 

73

 

2300 Tyrone Boulevard North

 

St. Petersburg

 

FL

 

Mall

 

 

 

 

147,800

 

 

 

97.4

%

 

 

14

 

74

 

7810 Abercorn Street

 

Savannah

 

GA

 

Mall

 

 

 

 

167,300

 

 

 

6.9

%

 

 

15

 

75

 

500 North Nimitz Highway

 

Honolulu

 

HI

 

Freestanding

 

 

 

 

76,100

 

 

 

100.0

%

 

 

4

 

76

 

1501 Highway 169 North

 

Algona

 

IA

 

Freestanding

 

X

 

 

99,300

 

 

 

100.0

%

 

 

7

 

77

 

4600 1st Avenue Northeast

 

Cedar Rapids

 

IA

 

Mall

 

 

 

 

146,000

 

 

 

0.0

%

 

 

12

 

78

 

1405 South Grand Avenue

 

Charles City

 

IA

 

Freestanding

 

X

 

 

96,600

 

 

 

100.0

%

 

 

11

 

79

 

2307 Superior Street

 

Webster City

 

IA

 

Shopping Center

 

 

 

 

40,800

 

 

 

100.0

%

 

 

4

 

80

 

460 North Milwaukee Street

 

Boise

 

ID

 

Mall

 

 

 

 

123,600

 

 

 

100.0

%

 

 

8

 

81

 

4730 West Irving Park Road

 

Chicago

 

IL

 

Freestanding

 

 

 

 

371,700

 

 

 

14.3

%

 

 

6

 

82

 

1601 North Harlem Avenue

 

Chicago

 

IL

 

Freestanding

 

 

 

 

293,700

 

 

 

12.9

%

 

 

7

 

83

 

5050 South Kedzie Avenue

 

Chicago

 

IL

 

Shopping Center

 

 

 

 

129,300

 

 

 

68.6

%

 

 

9

 

84

 

17550 Halsted Street

 

Homewood

 

IL

 

Shopping Center

 

 

 

 

196,100

 

 

 

100.0

%

 

 

19

 

85

 

3340 Mall Loop Drive

 

Joliet

 

IL

 

Mall

 

 

 

 

204,600

 

 

 

100.0

%

 

 

17

 

86

 

2860 South Highland Avenue

 

Lombard

 

IL

 

Freestanding

 

 

 

 

139,300

 

 

 

100.0

%

 

 

8

 

87

 

7503 West Cermak Road

 

North Riverside

 

IL

 

Mall

 

X

 

 

202,500

 

 

 

93.7

%

 

 

13

 

88

 

2 Orland Square Drive

 

Orland Park

 

IL

 

Mall

 

 

 

 

160,000

 

 

 

52.4

%

 

 

16

 

89

 

2500 Wabash Avenue

 

Springfield

 

IL

 

Shopping Center

 

 

 

 

131,400

 

 

 

83.3

%

 

 

14

 

90

 

3231 Chicago Road

 

Steger

 

IL

 

Freestanding

 

 

 

 

87,400

 

 

 

0.0

%

 

 

3

 

91

 

3101 Northview Drive

 

Elkhart

 

IN

 

Shopping Center

 

 

 

 

86,600

 

 

 

100.0

%

 

 

8

 

92

 

4201 Coldwater Road

 

Ft. Wayne

 

IN

 

Mall

 

 

 

 

93,400

 

 

 

12.8

%

 

 

15

 

93

 

101 West Lincoln Highway

 

Merrillville

 

IN

 

Shopping Center

 

 

 

 

170,900

 

 

 

83.0

%

 

 

17

 

94

 

4820 South 4th Street Trafficway

 

Leavenworth

 

KS

 

Freestanding

 

 

 

 

83,600

 

 

 

0.0

%

 

 

9

 

95

 

9701 Metcalf Avenue

 

Overland Park

 

KS

 

Shopping Center

 

 

 

 

215,000

 

 

 

5.6

%

 

 

19

 

96

 

3010 Fort Campbell Boulevard

 

Hopkinsville

 

KY

 

Shopping Center

 

 

 

 

92,900

 

 

 

69.5

%

 

 

13

 

97

 

5101 Hinkleville Road

 

Paducah

 

KY

 

Mall

 

 

 

 

97,300

 

 

 

68.7

%

 

 

9

 

98

 

5715 Johnston Street

 

Lafayette

 

LA

 

Mall

 

 

 

 

194,900

 

 

 

0.0

%

 

 

16

 

99

 

900 East Admiral Doyle Drive

 

New Iberia

 

LA

 

Freestanding

 

 

 

 

114,600

 

 

 

100.0

%

 

 

12

 

100

 

200 Grossman Drive

 

Braintree

 

MA

 

Shopping Center

 

 

 

 

89,800

 

 

 

94.5

%

 

 

34

 

101

 

1325 Broadway

 

Saugus

 

MA

 

Mall

 

X

 

 

210,800

 

 

 

68.8

%

 

 

16

 

102

 

15700 Emerald Way

 

Bowie

 

MD

 

Shopping Center

 

 

 

 

131,000

 

 

 

100.0

%

 

 

11

 

103

 

126 Shawan Road

 

Cockeysville

 

MD

 

Shopping Center

 

 

 

 

137,100

 

 

 

33.8

%

 

 

12

 

104

 

3207 Solomons Island Road

 

Edgewater

 

MD

 

Shopping Center

 

X

 

 

117,100

 

 

 

100.0

%

 

 

14

 

105

 

417 Main Street

 

Madawaska

 

ME

 

Shopping Center

 

 

 

 

49,700

 

 

 

100.0

%

 

 

2

 

106

 

2355 US Highway 23 South

 

Alpena

 

MI

 

Freestanding

 

 

 

 

118,200

 

 

 

0.0

%

 

 

12

 

107

 

1250 Boardman-Jackson Crossing

 

Jackson

 

MI

 

Shopping Center

 

 

 

 

152,700

 

 

 

5.6

%

 

 

15

 

108

 

2100 Southfield Road

 

Lincoln Park

 

MI

 

Shopping Center

 

 

 

 

301,700

 

 

 

100.0

%

 

 

17

 

- 26 -


PROPERTY INFORMATION

 

 

 

Wholly Owned Properties

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

Holdco

 

Total

 

 

 

 

 

 

Land

 

 

 

Property Address

 

City

 

State

 

Property Type (1)

 

Master Lease (2)

 

GLA (3)

 

 

Leased (3)

 

 

Acres

 

109

 

1560 US 31 South

 

Manistee

 

MI

 

Shopping Center

 

 

 

 

94,700

 

 

 

0.0

%

 

 

12

 

110

 

32123 Gratiot Avenue

 

Roseville

 

MI

 

Mall

 

 

 

 

367,900

 

 

 

51.9

%

 

 

21

 

111

 

2760 I-75 Business Spur

 

Sault Sainte Marie

 

MI

 

Freestanding

 

 

 

 

92,700

 

 

 

0.0

%

 

 

11

 

112

 

22801 Harper Avenue

 

St. Clair Shores

 

MI

 

Freestanding

 

 

 

 

103,000

 

 

 

100.0

%

 

 

11

 

113

 

300 West 14 Mile Road

 

Troy

 

MI

 

Mall

 

 

 

 

384,100

 

 

 

27.0

%

 

 

30

 

114

 

3100 Washtenaw Road

 

Ypsilanti

 

MI

 

Freestanding

 

 

 

 

99,400

 

 

 

100.0

%

 

 

12

 

115

 

14250 Buck Hill Road

 

Burnsville

 

MN

 

Mall

 

 

 

 

161,700

 

 

 

0.0

%

 

 

15

 

116

 

1305 Highway 10 West

 

Detroit Lakes

 

MN

 

Shopping Center

 

 

 

 

87,100

 

 

 

9.2

%

 

 

15

 

117

 

3001 White Bear Avenue North

 

Maplewood

 

MN

 

Mall

 

 

 

 

175,000

 

 

 

0.0

%

 

 

14

 

118

 

425 Rice Street

 

St. Paul

 

MN

 

Freestanding

 

 

 

 

217,900

 

 

 

100.0

%

 

 

17

 

119

 

11 South Kingshighway Street

 

Cape Girardeau

 

MO

 

Freestanding

 

 

 

 

75,000

 

 

 

100.0

%

 

 

6

 

120

 

1 Flower Valley Shopping Center

 

Florissant

 

MO

 

Shopping Center

 

 

 

 

124,000

 

 

 

100.0

%

 

 

11

 

121

 

2304 Missouri Boulevard

 

Jefferson City

 

MO

 

Freestanding

 

 

 

 

97,700

 

 

 

100.0

%

 

 

10

 

122

 

3700 South Campbell Avenue

 

Springfield

 

MO

 

Shopping Center

 

 

 

 

112,900

 

 

 

100.0

%

 

 

8

 

123

 

2308 Highway 45 North

 

Columbus

 

MS

 

Shopping Center

 

 

 

 

166,700

 

 

 

27.2

%

 

 

18

 

124

 

3180 Highway 2 West

 

Havre

 

MT

 

Freestanding

 

 

 

 

94,700

 

 

 

0.0

%

 

 

9

 

125

 

1 South Tunnel Road

 

Asheville

 

NC

 

Mall

 

 

 

 

110,600

 

 

 

40.7

%

 

 

16

 

126

 

545 Concord Parkway North

 

Concord

 

NC

 

Shopping Center

 

 

 

 

171,300

 

 

 

19.7

%

 

 

26

 

127

 

1302 Bridford Parkway

 

Greensboro

 

NC

 

Shopping Center

 

 

 

 

171,700

 

 

 

77.6

%

 

 

16

 

128

 

1 20th Avenue Southeast

 

Minot

 

ND

 

Shopping Center

 

X

 

 

110,400

 

 

 

100.0

%

 

 

13

 

129

 

4700 2nd Avenue

 

Kearney

 

NE

 

Freestanding

 

 

 

 

64,900

 

 

 

100.0

%

 

 

8

 

130

 

1500 South Willow Street

 

Manchester

 

NH

 

Mall

 

 

 

 

114,100

 

 

 

70.5

%

 

 

11

 

131

 

310 Daniel Webster Highway

 

Nashua

 

NH

 

Mall

 

X

 

 

167,100

 

 

 

100.0

%

 

 

7

 

132

 

50 Fox Run Road

 

Portsmouth

 

NH

 

Mall

 

 

 

 

127,000

 

 

 

100.0

%

 

 

13

 

133

 

77 Rockingham Park Boulevard

 

Salem

 

NH

 

Mall

 

 

 

 

207,200

 

 

 

59.4

%

 

 

14

 

134

 

1500 Highway 35

 

Middletown

 

NJ

 

Freestanding

 

 

 

 

191,100

 

 

 

100.0

%

 

 

23

 

135

 

1640 Route 22

 

Watchung

 

NJ

 

Freestanding

 

 

 

 

116,400

 

 

 

86.9

%

 

 

19

 

136

 

1205 East Pine Street

 

Deming

 

NM

 

Freestanding

 

 

 

 

96,600

 

 

 

0.0

%

 

 

10

 

137

 

10405 South Eastern Avenue

 

Henderson

 

NV

 

Shopping Center

 

 

 

 

143,500

 

 

 

100.0

%

 

 

12

 

138

 

4000 Meadows Lane

 

Las Vegas

 

NV

 

Mall

 

X

 

 

139,200

 

 

 

77.6

%

 

 

11

 

139

 

5400 Meadowood Mall Circle

 

Reno

 

NV

 

Mall

 

 

 

 

183,700

 

 

 

22.5

%

 

 

3

 

140

 

1425 Central Avenue

 

Albany

 

NY

 

Mall

 

 

 

 

277,900

 

 

 

18.6

%

 

 

21

 

141

 

4155 State Route 31

 

Clay

 

NY

 

Mall

 

 

 

 

146,500

 

 

 

0.0

%

 

 

12

 

142

 

4000 Jericho Turnpike

 

East Northport

 

NY

 

Shopping Center

 

 

 

 

179,700

 

 

 

92.7

%

 

 

18

 

143

 

195 North Broadway

 

Hicksville

 

NY

 

Freestanding

 

 

 

 

284,800

 

 

 

34.3

%

 

 

30

 

144

 

601 Harry L Drive

 

Johnson City

 

NY

 

Mall

 

 

 

 

155,100

 

 

 

0.0

%

 

 

11

 

- 27 -


PROPERTY INFORMATION

 

 

 

Wholly Owned Properties

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

Holdco

 

Total

 

 

 

 

 

 

Land

 

 

 

Property Address

 

City

 

State

 

Property Type (1)

 

Master Lease (2)

 

GLA (3)

 

 

Leased (3)

 

 

Acres

 

145

 

2801 West State Street

 

Olean

 

NY

 

Freestanding

 

 

 

 

118,000

 

 

 

46.9

%

 

 

13

 

146

 

317 Greece Ridge Center Drive

 

Rochester

 

NY

 

Mall

 

 

 

 

128,500

 

 

 

0.0

%

 

 

15

 

147

 

171 Delaware Avenue

 

Sidney

 

NY

 

Shopping Center

 

X

 

 

94,400

 

 

 

100.0

%

 

 

19

 

148

 

200 Eastview Mall

 

Victor

 

NY

 

Mall

 

 

 

 

123,000

 

 

 

0.0

%

 

 

14

 

149

 

600 Lee Boulevard

 

Yorktown Heights

 

NY

 

Mall

 

 

 

 

160,000

 

 

 

100.0

%

 

 

12

 

150

 

4100 Belden Village Avenue Northwest

 

Canton

 

OH

 

Mall

 

X

 

 

219,400

 

 

 

100.0

%

 

 

19

 

151

 

2000 Brittain Road

 

Chapel Hill

 

OH

 

Mall

 

 

 

 

193,100

 

 

 

0.0

%

 

 

21

 

152

 

2700 Miamisburg Centerville Road

 

Dayton

 

OH

 

Mall

 

 

 

 

192,500

 

 

 

3.6

%

 

 

16

 

153

 

1005 East Columbus Street

 

Kenton

 

OH

 

Freestanding

 

 

 

 

96,100

 

 

 

0.0

%

 

 

11

 

154

 

502 Pike Street

 

Marietta

 

OH

 

Freestanding

 

X

 

 

87,500

 

 

 

100.0

%

 

 

7

 

155

 

7875 Johnnycake Ridge Road

 

Mentor

 

OH

 

Mall

 

 

 

 

208,700

 

 

 

0.0

%

 

 

20

 

156

 

6950 West 130th Street

 

Middleburg Heights

 

OH

 

Shopping Center

 

 

 

 

351,600

 

 

 

0.0

%

 

 

15

 

157

 

1447 North Main Street

 

North Canton

 

OH

 

Shopping Center

 

X

 

 

87,100

 

 

 

100.0

%

 

 

9

 

158

 

555 South Avenue

 

Tallmadge

 

OH

 

Freestanding

 

X

 

 

84,200

 

 

 

100.0

%

 

 

8

 

159

 

3408 West Central Avenue

 

Toledo

 

OH

 

Shopping Center

 

 

 

 

209,900

 

 

 

0.0

%

 

 

11

 

160

 

4400 South Western Avenue

 

Oklahoma City

 

OK

 

Freestanding

 

 

 

 

223,700

 

 

 

22.4

%

 

 

24

 

161

 

3132 East 51st Street

 

Tulsa

 

OK

 

Freestanding

 

 

 

 

87,200

 

 

 

100.0

%

 

 

9

 

162

 

1180 Southeast 82nd Avenue

 

Happy Valley

 

OR

 

Mall

 

 

 

 

144,300

 

 

 

100.0

%

 

 

12

 

163

 

1180 Walnut Bottom Road

 

Carlisle

 

PA

 

Shopping Center

 

 

 

 

117,800

 

 

 

100.0

%

 

 

3

 

164

 

3975 Columbia Avenue

 

Columbia

 

PA

 

Shopping Center

 

X

 

 

86,700

 

 

 

100.0

%

 

 

8

 

165

 

160 North Gulph Road (4)

 

King Of Prussia

 

PA

 

Mall

 

 

 

 

210,900

 

 

 

100.0

%

 

 

14

 

166

 

1745 Quentin Road

 

Lebanon

 

PA

 

Shopping Center

 

X

 

 

117,200

 

 

 

100.0

%

 

 

15

 

167

 

100 Cross Roads Plaza

 

Mount Pleasant

 

PA

 

Shopping Center

 

 

 

 

83,500

 

 

 

69.9

%

 

 

10

 

168

 

400 North Best Avenue

 

Walnutport

 

PA

 

Freestanding

 

X

 

 

121,200

 

 

 

100.0

%

 

 

16

 

169

 

1094 Haines Road

 

York

 

PA

 

Shopping Center

 

 

 

 

82,000

 

 

 

0.0

%

 

 

6

 

170

 

PR 167 & Las Cumbres

 

Bayamon

 

PR

 

Shopping Center

 

X

 

 

115,200

 

 

 

100.0

%

 

 

10

 

171

 

400 Calle Betances

 

Caguas

 

PR

 

Mall

 

X

 

 

138,700

 

 

 

100.0

%

 

 

8

 

172

 

Avenue 65 Infanteria

 

Carolina

 

PR

 

Mall

 

X

 

 

198,000

 

 

 

100.0

%

 

 

11

 

173

 

Martinez Nadal Avenue

 

Guaynabo

 

PR

 

Shopping Center

 

X

 

 

217,100

 

 

 

94.4

%

 

 

18

 

174

 

PR Road 2, Km 149.5

 

Mayaguez

 

PR

 

Shopping Center

 

X

 

 

118,200

 

 

 

100.0

%

 

 

13

 

175

 

2643 Ponce Bypass

 

Ponce

 

PR

 

Shopping Center

 

X

 

 

126,900

 

 

 

100.0

%

 

 

9

 

176

 

650 Bald Hill Road

 

Warwick

 

RI

 

Shopping Center

 

 

 

 

211,700

 

 

 

96.5

%

 

 

20

 

177

 

3801B Clemson Boulevard

 

Anderson

 

SC

 

Shopping Center

 

 

 

 

117,100

 

 

 

100.0

%

 

 

12

 

178

 

7801 Rivers Avenue

 

Charleston

 

SC

 

Mall

 

 

 

 

127,500

 

 

 

46.8

%

 

 

14

 

179

 

2800 North Germantown Parkway

 

Cordova

 

TN

 

Mall

 

 

 

 

160,900

 

 

 

100.0

%

 

 

12

 

180

 

4570 Poplar Avenue

 

Memphis

 

TN

 

Freestanding

 

 

 

 

112,700

 

 

 

80.7

%

 

 

11

 

- 28 -


PROPERTY INFORMATION

 

 

 

Wholly Owned Properties

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

Holdco

 

Total

 

 

 

 

 

 

Land

 

 

 

Property Address

 

City

 

State

 

Property Type (1)

 

Master Lease (2)

 

GLA (3)

 

 

Leased (3)

 

 

Acres

 

181

 

12625 North Interstate Highway 35

 

Austin

 

TX

 

Shopping Center

 

 

 

 

172,000

 

 

 

26.2

%

 

 

25

 

182

 

3450 West Camp Wisdom Road

 

Dallas

 

TX

 

Mall

 

 

 

 

205,300

 

 

 

100.0

%

 

 

13

 

183

 

9484 Dyer Street

 

El Paso

 

TX

 

Freestanding

 

 

 

 

112,000

 

 

 

54.0

%

 

 

11

 

184

 

300 Baybrook Mall

 

Friendswood

 

TX

 

Mall

 

 

 

 

166,000

 

 

 

0.0

%

 

 

13

 

185

 

303 Memorial City

 

Houston

 

TX

 

Mall

 

 

 

 

214,400

 

 

 

100.0

%

 

 

20

 

186

 

12605 North Gessner Road

 

Houston

 

TX

 

Freestanding

 

 

 

 

134,000

 

 

 

100.0

%

 

 

11

 

187

 

6301 Northwest Loop 410

 

Ingram

 

TX

 

Mall

 

 

 

 

168,400

 

 

 

100.0

%

 

 

12

 

188

 

2501 Irving Mall

 

Irving

 

TX

 

Mall

 

 

 

 

88,200

 

 

 

95.8

%

 

 

18

 

189

 

201 Central Park Mall

 

San Antonio

 

TX

 

Freestanding

 

 

 

 

198,900

 

 

 

71.3

%

 

 

15

 

190

 

4000 North Shepherd

 

Shepherd

 

TX

 

Freestanding

 

X

 

 

201,700

 

 

 

100.0

%

 

 

12

 

191

 

13131 Preston Road

 

Valley View

 

TX

 

Mall

 

 

 

 

235,000

 

 

 

2.5

%

 

 

23

 

192

 

9570 Southwest Freeway

 

Westwood

 

TX

 

Freestanding

 

 

 

 

213,600

 

 

 

100.0

%

 

 

18

 

193

 

2010 North Main Street

 

Layton

 

UT

 

Shopping Center

 

 

 

 

176,800

 

 

 

91.0

%

 

 

14

 

194

 

7453 South Plaza Center Drive

 

West Jordan

 

UT

 

Shopping Center

 

 

 

 

190,300

 

 

 

96.3

%

 

 

12

 

195

 

5901 Duke Street

 

Alexandria

 

VA

 

Mall

 

X

 

 

262,100

 

 

 

100.0

%

 

 

18

 

196

 

1401 Greenbrier Parkway

 

Chesapeake

 

VA

 

Mall

 

 

 

 

169,400

 

 

 

0.0

%

 

 

15

 

197

 

12000 Fair Oaks Mall

 

Fairfax

 

VA

 

Mall

 

 

 

 

220,700

 

 

 

68.1

%

 

 

15

 

198

 

4588 Virginia Beach Boulevard

 

Virginia Beach

 

VA

 

Mall

 

 

 

 

197,300

 

 

 

56.0

%

 

 

14

 

199

 

141 West Lee Highway

 

Warrenton

 

VA

 

Shopping Center

 

 

 

 

86,100

 

 

 

25.4

%

 

 

9

 

200

 

2200 148th Avenue Northeast

 

Redmond

 

WA

 

Shopping Center

 

 

 

 

267,400

 

 

 

0.0

%

 

 

15

 

201

 

8800 Northeast Vancouver Mall Drive

 

Vancouver

 

WA

 

Mall

 

 

 

 

129,700

 

 

 

77.0

%

 

 

10

 

202

 

5200 South 76th Street

 

Greendale

 

WI

 

Mall

 

 

 

 

187,500

 

 

 

76.1

%

 

 

21

 

203

 

53 West Towne Mall

 

Madison

 

WI

 

Mall

 

 

 

 

142,400

 

 

 

38.1

%

 

 

18

 

204

 

101 Great Teays Boulevard

 

Scott Depot

 

WV

 

Freestanding

 

 

 

 

90,100

 

 

 

0.0

%

 

 

8

 

205

 

2150 South Douglas Highway

 

Gillette

 

WY

 

Freestanding

 

 

 

 

94,600

 

 

 

52.0

%

 

 

10

 

206

 

1960 North Federal Boulevard

 

Riverton

 

WY

 

Freestanding

 

 

 

 

94,800

 

 

 

0.0

%

 

 

9

 

 

 

Total - Wholly-Owned Properties

 

 

 

 

 

 

 

 

31,602,200

 

 

 

65.6

%

 

 

2,688

 

 

(1)

Company classification.  Mall properties are attached to regional malls; Shopping Center properties include properties attached, within or adjacent to neighborhood shopping or power centers, as well as freestanding properties.

(2)

Denotes property subject to the Holdco Master Lease. The Holdco Master Lease cannot become effective until the Master Lease is rejected.

(3)

Based on signed leases as of December 31, 2018.

(4)

Property is subject to a ground lease.

 

 

- 29 -


DISCLOSURES

 

 

 

 

Non-GAAP Measures

The Company makes reference to NOI, Total NOI, EBITDAre, Company EBITDA, FFO and Company FFO which are financial measures that include adjustments to accounting principles generally accepted in the United States (“GAAP”).

None of NOI, Total NOI, EBITDAre, Company EBITDA, FFO or Company FFO, are measures that (i) represent cash flow from operations as defined by GAAP; (ii) are indicative of cash available to fund all cash flow needs, including the ability to make distributions; (iii) are alternatives to cash flow as a measure of liquidity; or (iv) should be considered alternatives to net income (which is determined in accordance with GAAP) for purposes of evaluating the Company’s operating performance.  Reconciliations of these measures to the respective GAAP measures we deem most comparable have been provided in this Supplemental Information package.

Net Operating Income ("NOI”), Total NOI and Annualized Total NOI

NOI is defined as income from property operations less property operating expenses.  The Company believes NOI provides useful information regarding Seritage, its financial condition, and results of operations because it reflects only those income and expense items that are incurred at the property level.

The Company also uses Total NOI, which includes its proportional share of unconsolidated properties.  This form of presentation offers insights into the financial performance and condition of the Company as a whole given the Company’s ownership of unconsolidated properties that are accounted for under GAAP using the equity method.  The Company also considers Total NOI to be a helpful supplemental measure of its operating performance because it excludes from NOI variable items such as termination fee income, as well as non-cash items such as straight-line rent and amortization of lease intangibles.

Annualized Total NOI is an estimate, as of the end of the reporting period, of the annual Total NOI to be generated by the Company’s portfolio including all signed leases and modifications to the Company’s master lease with Sears Holdings with respect to recaptured space.   We calculate Annualized Total NOI by adding or subtracting current period adjustments for leases that commenced or expired during the period to Total NOI (as defined) for the period and annualizing, and then adding estimated annual Total NOI attributable to SNO leases and subtracting estimated annual Total NOI attributable to Sears Holdings’ space to be recaptured.

Annualized Total NOI is a forward-looking non-GAAP measure for which the Company does not believe it can provide reconciling information to a corresponding forward-looking GAAP measure without unreasonable effort.

Earnings before Interest Expense, Income Tax, Depreciation, and Amortization for Real Estate ("EBITDAre") and Company EBITDA

EBITDAre is calculated in accordance with the definition set forth by the National Association of Real Estate Investment Trusts ("NAREIT"), which may not be comparable to measures calculated by other companies who do not use the NAREIT definition of EBITDA.  EBITDAre is calculated as net income computed in accordance with GAAP, excluding interest expense, income tax expense, depreciation and amortization, gains (or losses) from property sales and impairment charges on depreciable real estate assets.  The Company believes EBITDAre provides useful information to investors regarding our results of operations because it removes the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization).  Management also believes the use of EBITDAre facilitates comparisons between us and other equity REITs and real property owners that are not REITs.

The Company makes certain adjustments to EBITDAre, which it refers to as Company EBITDA, to account for certain non-cash and non-comparable items, such as termination fee income, unrealized loss on interest rate cap, litigation charges, acquisition-related expenses and certain up-front-hiring and personnel costs that it does not believe are representative of ongoing operating results.

Funds From Operations ("FFO") and Company FFO

FFO is calculated in accordance with NAREIT, which defines FFO as net income computed in accordance with GAAP, excluding gains (or losses) from property sales, real estate related depreciation and amortization, and impairment charges on depreciable real estate assets.  The Company considers FFO a helpful supplemental measure of the operating performance for equity REITs and a complement to GAAP measures because it is a recognized measure of performance by the real estate industry.  

- 30 -


DISCLOSURES

 

 

 

The Company makes certain adjustments to FFO, which it refers to as Company FFO, to account for certain non-cash and non-comparable items, such as lease termination income, loss on interest rate cap, litigation charges, acquisition-related expenses, and certain up-front-hiring and personnel costs, that it does not believe are representative of ongoing operating results.  The Company previously referred to this metric as Normalized FFO; the definition and calculation remain the same.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the company’s control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that could cause or contribute to such differences include, but are not limited to: our material exposure to Sears Holdings and the effects of its previously announced bankruptcy filing; Sears Holdings’ termination and other rights under its master lease with us; competition in the real estate and retail industries; risks relating to our recapture and redevelopment activities; contingencies to the commencement of rent under leases; the terms of our indebtedness; restrictions with which we are required to comply in order to maintain REIT status and other legal requirements to which we are subject; and our relatively limited history as an operating company.  For additional discussion of these and other applicable risks, assumptions and uncertainties, see the “Risk Factors” and forward-looking statement disclosure contained in our filings with the Securities and Exchange Commission, including the risk factors relating to Sears Holdings.  While we believe that our forecasts and assumptions are reasonable, we caution that actual results may differ materially.  We intend the forward-looking statements to speak only as of the time made and do not undertake to update or revise them as more information becomes available, except as required by law.

 

- 31 -


 

 

 

Seritage Growth Properties

500 Fifth Avenue | New York, NY 10110

212-355-7800 | www.seritage.com

 

GRAPHIC 4 gwh50rcnxjfh000001.jpg GRAPHIC begin 644 gwh50rcnxjfh000001.jpg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end GRAPHIC 5 gwh50rcnxjfh000002.jpg GRAPHIC begin 644 gwh50rcnxjfh000002.jpg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gwh50rcnxjfh000035.jpg GRAPHIC begin 644 gwh50rcnxjfh000035.jpg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end GRAPHIC 7 gr5hlbqaavqf000001.jpg GRAPHIC begin 644 gr5hlbqaavqf000001.jpg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end