Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Excel Trust, Inc. | d8k.htm |
| EX-99.1 - PRESS RELEASE - Excel Trust, Inc. | dex991.htm |
Exhibit 99.2
|
Supplemental Operating and Financial Data
For the Quarter Ended June 30, 2011
Table of Contents
| Page | ||||
| Company Overview |
3 | |||
| Analyst Coverage |
4 | |||
| Summary Financial and Portfolio Data |
5 | |||
| Financial Summary |
||||
| Condensed and Consolidated Balance Sheets |
6 | |||
| Condensed Consolidated and Combined Statements of Operations |
7 | |||
| Reconciliation of Net Income to EBITDA |
8 | |||
| Reconciliation of Net Income to FFO and AFFO |
9 | |||
| Debt Summary |
10 | |||
| Common and Preferred Stock Data |
11 | |||
| Portfolio Summary |
||||
| Acquisitions & Developments |
12 | |||
| Portfolio Summary |
13 | |||
| Major Tenants |
14 | |||
| Expiration Schedule |
15 | |||
| Definitions |
16 | |||
Company Overview
Excel Trust, Inc. is a retail focused REIT that targets community and power centers, grocery anchored neighborhood centers and freestanding retail properties. Excel Trust has elected to be treated as a REIT, for U.S. federal income tax purposes. Excel Trust trades publicly on the NYSE under the symbol “EXL” .
| Corporate Headquarters |
Other Offices | |
| Excel Trust, Inc. |
Salt Lake City, UT | |
| 17140 Bernardo Center Dr., Ste 300 |
Atlanta, GA | |
| San Diego, CA 92128 |
Stockton, CA | |
| Tel: 858-613-1800 |
Scottsdale, AZ | |
| Email: info@exceltrust.com |
||
| Website: www.exceltrust.com |
||
| Executives & Senior Management |
||
| Gary B. Sabin—Chairman & CEO |
Spencer G. Plumb—President & COO | |
| James Y. Nakagawa—CFO |
Mark T. Burton—CIO & SVP, Acquisitions | |
| S. Eric Ottesen—SVP, General Counsel |
William J. Stone—SVP, Asset Management/Development | |
| Matthew S. Romney—SVP, Capital Markets |
||
| Board of Directors |
||
| Gary B. Sabin (Chairman) |
Spencer G. Plumb | |
| Mark T. Burton |
Bruce G. Blakley | |
| Burland B. East III |
Robert E. Parsons, Jr. | |
| Warren R. Staley |
||
| Transfer Agent and Registrar |
Corporate Counsel | |
| Continental Stock Transfer & Trust Company |
Latham & Watkins | |
| 17 Battery Place, 8th Floor |
12636 High Bluff Drive, Suite 400 | |
| New York, New York 10004 |
San Diego, CA 92130 | |
| Tel: 212-509-4000 |
Tel: 858-523-5400 | |
| Email: cstmail@continentalstock.com |
||
| Website: www.continentalstock.com |
||
Reported results and other information herein are preliminary and not final until the filing of Excel Trust’s quarterly report on Form 10-Q with the Securities and Exchange Commission and, therefore, remain subject to adjustment.
Forward-Looking Statements
This document contains forward-looking statements that are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks include, without limitation: adverse economic or real estate developments in the retail industry or the markets in which Excel Trust operates; defaults on or non-renewal of leases by tenants; increased interest rates and operating costs; decreased rental rates or increased vacancy rates; Excel Trust’s failure to obtain necessary outside financing on favorable terms or at all; changes in the availability of additional acquisition opportunities; Excel Trust’s inability to successfully complete real estate acquisitions or successfully operate acquired properties and Excel Trust’s failure to qualify or maintain its status as a REIT. For a further list and description of such risks and uncertainties that could impact Excel Trust’s future results, performance or transactions, see the reports filed by Excel Trust with the Securities and Exchange Commission, including its final prospectus relating to its initial public offering and quarterly reports on Form 10-Q. Excel Trust disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Page 3
Analyst Coverage
| Company | Analyst | Contact | ||
| Barclays Capital |
Ross Smotrich | (212) 526-2306 | ||
| Ryan Bennett | (212) 526-5309 | |||
| KeyBanc |
Jordan Sadler | (917) 368-2280 | ||
| Todd Thomas | (917) 368-2286 | |||
| Morgan Stanley |
Paul Morgan | (415) 576-2627 | ||
| Samir Khanal | (415) 576-2696 | |||
| Raymond James & Assoc. |
Paul D. Puryear | (727) 567-2253 | ||
| R.J. Milligan | (727) 567-2660 | |||
| Stifel, Nicolaus & Co., Inc. |
Nathan Isbee | (443) 224-1346 | ||
| Jennifer Hummert | (443) 224-1288 | |||
| UBS |
Ross Nussbaum | (212) 713-2484 | ||
| Christy McElroy | (203) 719-7831 | |||
| Wells Fargo |
Jeff Donnelly | (617) 603-4262 | ||
| Robert LaQuaglia | (617) 603-4263 | |||
Page 4
Summary Financial and Portfolio Data
For the Quarter Ended June 30, 2011
(Dollars in thousands)
| Portfoilio Summary |
||||
| Total Gross Leasable Square Feet (GLA) (1) |
3,003,828 | |||
| Percent Leased-Operating Portfolio |
94.9 | % | ||
| Percent Occupied-Operating Portfolio |
93.2 | % | ||
| Annualized Base Rent (2) |
$ | 39,823 | ||
| No. leases signed or renewed |
23 | |||
| Sq Ft leases signed or renewed |
90,990 | |||
| Financial Results (Quarter ended June 30, 2011) |
||||
| Net income available to the common stockholders and controlling interest of the Predecessor |
$ | 1,061 | ||
| Net income per diltued share |
$ | 0.06 | ||
| Funds from operations (FFO) |
$ | 3,741 | ||
| FFO per diluted share |
$ | 0.20 | ||
| Adjusted funds from operations (AFFO) |
$ | 4,361 | ||
| AFFO per diluted share |
$ | 0.24 | ||
| EBITDA |
$ | 11,171 | ||
| Assets |
||||
| Gross undepreciated real estate |
$ | 445,740 | ||
| Gross undepreciated assets |
$ | 645,295 | ||
| Total liabilities to gross undepreciated assets |
36.4 | % | ||
| Debt to gross undepreciated assets |
30.9 | % | ||
| Capitalization |
||||
| Common shares outstanding |
30,967,679 | |||
| OP units oustanding |
1,405,405 | |||
|
|
|
|||
| Total common shares and OP units |
32,373,084 | |||
| Closing price at quarter end |
$ | 11.03 | ||
| Equity capitalization at June 30, 2011 |
$ | 357,075 | ||
| Preferred stock (at liquidation preference of $25.00 per share) |
50,000 | |||
| Total debt (3) |
199,537 | |||
|
|
|
|||
| Total capitalization |
$ | 606,612 | ||
|
|
|
|||
| Debt/total capitalization |
32.9 | % | ||
| Debt/EBITDA |
4.5 | |||
| Common Stock Data |
||||
| Range of closing prices for the quarter |
$ | 10.94 - 12.27 | ||
| Weighted average common shares outstanding |
15,856 | |||
| Weighted average common shares outstanding—diluted (FFO and AFFO) |
18,513 | |||
| Shares of common stock outstanding on June 30, 2011 |
30,967,679 | |||
| (1) | Excludes gross leasable area from developments under construction and any planned development. |
| (2) | Annualized Base Rent excludes rental revenue from non-stabilized development properties |
| (3) | Excludes debt discount |
Page 5
Balance Sheets
EXCEL TRUST, INC.
CONDENSED AND CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
| June 30, 2011 | March 31, 2011 | December 31, 2010 | September 30, 2010 | June 30, 2010 | ||||||||||||||||
| ASSETS: |
||||||||||||||||||||
| Property: |
||||||||||||||||||||
| Land |
$ | 175,072 | $ | 164,712 | $ | 153,601 | $ | 68,889 | $ | 52,630 | ||||||||||
| Buildings |
215,712 | 191,931 | 178,374 | 112,717 | 78,861 | |||||||||||||||
| Site improvements |
21,732 | 19,231 | 18,832 | 10,193 | 8,401 | |||||||||||||||
| Tenant improvements |
19,353 | 19,720 | 18,242 | 14,201 | 12,927 | |||||||||||||||
| Construction in progress |
13,871 | 10,801 | 4,423 | 1,869 | 1,635 | |||||||||||||||
| Less accumulated depreciation |
(12,586 | ) | (10,529 | ) | (8,360 | ) | (6,501 | ) | (5,274 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Property, net |
433,154 | 395,866 | 365,112 | 201,368 | 149,180 | |||||||||||||||
| Cash and cash equivalents |
88,710 | 3,955 | 6,525 | 57,862 | 91,222 | |||||||||||||||
| Restricted cash |
42,331 | 4,393 | 5,870 | 26,683 | 1,040 | |||||||||||||||
| Tenant receivables, net |
1,829 | 1,860 | 1,945 | 1,247 | 91 | |||||||||||||||
| Lease intangibles, net |
54,727 | 53,791 | 53,024 | 26,274 | 16,263 | |||||||||||||||
| Mortgage loan receivable |
2,000 | 2,000 | 2,000 | — | — | |||||||||||||||
| Deferred rent receivable |
1,897 | 1,498 | 1,148 | 822 | 734 | |||||||||||||||
| Other assets |
8,061 | 6,726 | 5,464 | 3,974 | 1,059 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total assets |
$ | 632,709 | $ | 470,089 | $ | 441,088 | $ | 318,230 | $ | 259,589 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| LIABILITIES AND EQUITY: |
||||||||||||||||||||
| Liabilities: |
||||||||||||||||||||
| Mortgages payable, net |
$ | 198,331 | $ | 150,957 | $ | 137,043 | $ | 69,469 | $ | 49,996 | ||||||||||
| Notes payable |
535 | 37,835 | 85,384 | 35,000 | — | |||||||||||||||
| Accounts payable and other liabilities |
20,762 | 20,190 | 12,944 | 10,119 | 5,681 | |||||||||||||||
| Lease intangibles, net |
9,826 | 7,222 | 7,150 | 4,034 | 3,165 | |||||||||||||||
| Dividends/distributions payable |
5,374 | 3,037 | 1,957 | 1,304 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total liabilities |
234,828 | 219,241 | 244,478 | 119,926 | 58,842 | |||||||||||||||
| Equity: |
||||||||||||||||||||
| Stockholders’ equity |
||||||||||||||||||||
| Preferred stock |
47,721 | 47,628 | — | — | — | |||||||||||||||
| Common stock |
309 | 165 | 156 | 156 | 155 | |||||||||||||||
| Additional paid-in capital |
334,953 | 188,972 | 191,453 | 193,203 | 194,451 | |||||||||||||||
| Cumulative distributions in excess of net income |
(1,818 | ) | (3,754 | ) | (3,725 | ) | (2,852 | ) | (1,752 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 381,165 | 233,011 | 187,884 | 190,507 | 192,854 | ||||||||||||||||
| Accumulated other comprehensive loss |
(748 | ) | (162 | ) | (373 | ) | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total stockholders’ equity |
380,417 | 232,849 | 187,511 | 190,507 | 192,854 | |||||||||||||||
| Non-controlling interests |
17,464 | 17,999 | 9,099 | 7,797 | 7,893 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total equity |
397,881 | 250,848 | 196,610 | 198,304 | 200,747 | |||||||||||||||
| Total liabilities and equity |
$ | 632,709 | $ | 470,089 | $ | 441,088 | $ | 318,230 | $ | 259,589 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
The notes in the Form 10-Q are an integral part of these condensed and consolidated financial statements.
Page 6
Statements of Operations
EXCEL TRUST, INC. AND
EXCEL TRUST, INC. PREDECESSOR
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| Predecessor | ||||||||||||||||||||||||
| Three Months Ended June 30, 2011 |
Three Months Ended March 31, 2011 |
Three Months Ended December 31, 2010 |
Three Months Ended September 30, 2010 |
Period from April 28, 2010 to June 30, 2010 |
Period from April 1, 2010 to April 27, 2010 |
|||||||||||||||||||
| Revenues: |
||||||||||||||||||||||||
| Rental revenue |
$ | 10,467 | $ | 8,476 | $ | 6,818 | $ | 3,926 | $ | 1,210 | $ | 317 | ||||||||||||
| Tenant recoveries |
2,220 | 1,899 | 1,483 | 559 | 92 | 31 | ||||||||||||||||||
| Other income |
102 | 104 | 57 | 52 | 34 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total revenues |
12,789 | 10,479 | 8,358 | 4,537 | 1,336 | 348 | ||||||||||||||||||
| Expenses: |
||||||||||||||||||||||||
| Maintenance and repairs |
780 | 639 | 487 | 164 | 56 | 21 | ||||||||||||||||||
| Real estate taxes |
1,377 | 1,135 | 860 | 705 | 120 | 37 | ||||||||||||||||||
| Management fees |
133 | 117 | 70 | 32 | 1 | 10 | ||||||||||||||||||
| Other operating expenses |
797 | 766 | 599 | 184 | 66 | 23 | ||||||||||||||||||
| Changes in fair value of earn—outs |
(328 | ) | — | — | — | — | — | |||||||||||||||||
| General and administrative |
3,140 | 2,650 | 3,096 | 1,885 | 2,136 | 2 | ||||||||||||||||||
| Depreciation and amortization |
6,400 | 4,160 | 3,539 | 2,039 | 674 | 82 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total expenses |
12,299 | 9,467 | 8,651 | 5,009 | 3,053 | 175 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net operating income |
490 | 1,012 | (293 | ) | (472 | ) | (1,717 | ) | 173 | |||||||||||||||
| Interest expense |
(3,503 | ) | (2,565 | ) | (2,069 | ) | (1,273 | ) | (350 | ) | (121 | ) | ||||||||||||
| Interest income |
43 | 40 | 8 | 84 | 74 | — | ||||||||||||||||||
| Gain on acquisition of real estate |
— | 937 | 978 | — | — | — | ||||||||||||||||||
| Gain on changes in fair value of financial instruments |
512 | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| (Loss) income from continuing operations |
(2,458 | ) | (576 | ) | (1,376 | ) | (1,661 | ) | (1,993 | ) | 52 | |||||||||||||
| Income from discontinued operations before gain on sale of real estate assets |
507 | 516 | 472 | 516 | 169 | — | ||||||||||||||||||
| Gain on sale of real estate assets |
3,976 | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Income from discontinued operations |
4,483 | 516 | 472 | 516 | 169 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net income (loss) |
2,025 | (60 | ) | (904 | ) | (1,145 | ) | (1,824 | ) | 52 | ||||||||||||||
| Net income (loss) attributable to non-controlling interests |
89 | (31 | ) | (31 | ) | (45 | ) | (72 | ) | 197 | ||||||||||||||
| Net income (loss) attributable to Excel Trust, Inc. and Excel Trust, Inc. |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Predecessor |
1,936 | (29 | ) | (873 | ) | (1,100 | ) | (1,752 | ) | (145 | ) | |||||||||||||
| Preferred stock dividends |
(875 | ) | (603 | ) | — | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net income (loss) available to the common stockholders and controlling interest of the Predecessor |
$ | 1,061 | $ | (632 | ) | $ | (873 | ) | $ | (1,100 | ) | $ | (1,752 | ) | $ | (145 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Basic and diluted net income (loss) loss per share |
$ | 0.06 | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.07 | ) | $ | (0.11 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Weighted-average common shares outstanding—basic and diluted |
15,856 | 15,513 | 15,510 | 15,510 | 15,460 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Dividends declared per common share |
$ | 0.15 | $ | 0.14 | $ | 0.12 | $ | 0.08 | $ | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
The notes in the Form 10-Q are an integral part of these condensed consolidated and combined financial statements.
Page 7
Reconciliation of Net Income to EBITDA
(Earnings before Interest, Taxes, Depreciation & Amortization)
For the Quarter Ended June 30, 2011
(Dollars in thousands)
Excel Trust, Inc.’s EBITDA and a reconciliation to net income for the periods presented is as follows:
| Predecessor | ||||||||||||||||||||||||
| Three Months Ended June 30, 2011 |
Three Months Ended March 31, 2011 |
Three Months Ended December 31, 2010 |
Three Months Ended September 30, 2010 |
Period from April 28, 2010 to June 30, 2010 |
Period from April 1, 2010 to April 27, 2010 |
|||||||||||||||||||
| Net income (loss) available to the common stockholders and controlling interest of the Predecessor |
$ | 1,061 | $ | (632 | ) | $ | (873 | ) | $ | (1,100 | ) | $ | (1,752 | ) | $ | (145 | ) | |||||||
| Add: |
||||||||||||||||||||||||
| Interest expense |
3,503 | 2,565 | 2,069 | 1,273 | 350 | 121 | ||||||||||||||||||
| Depreciation and amortization (1) |
6,607 | 4,369 | 3,733 | 2,248 | 674 | 82 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| EBITDA |
$ | 11,171 | $ | 6,302 | $ | 4,929 | $ | 2,421 | $ | (728 | ) | $ | 58 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| (1) | Total consolidated depreciation and amortization, a portion of which is included in discontinued operations on the statements of operations. |
Page 8
Reconciliation of Net Income to FFO and AFFO
For the Quarter Ended June 30, 2011
(In thousands, except per share amounts)
Excel Trust, Inc.’s FFO and AFFO available to common stockholders and operating partnership unitholders and a reconciliation to net income for the three months ended June 30, 2011 and 2010 is as follows:
| Three Months Ended June 30, 2011 |
Six Months Ended June 30, 2011 |
|||||||
| Net income (loss) available to the common stockholders and controllinginterest of the Predecessor |
$ | 1,061 | $ | 429 | ||||
| Add: |
||||||||
| Non-controlling interests in operating partnership |
94 | 95 | ||||||
| Depreciation and amortization (1) |
6,607 | 10,976 | ||||||
| Deduct: |
||||||||
| Depreciation and amortization related to joint venture |
(45 | ) | (45 | ) | ||||
| Gain on acquisition of real estate |
— | (937 | ) | |||||
| Gain on sale of real estate assets |
(3,976 | ) | (3,976 | ) | ||||
|
|
|
|
|
|||||
| Funds from operations (2) |
$ | 3,741 | $ | 6,542 | ||||
| Add: |
||||||||
| Transaction costs |
256 | 362 | ||||||
| Deferred financing costs |
335 | 569 | ||||||
| Stock-based and other non-cash compensation expense |
1,326 | 1,777 | ||||||
| Deduct: |
||||||||
| Changes in fair value of earn-outs |
(328 | ) | (328 | ) | ||||
| Gain on changes in fair value of financial instruments |
(512 | ) | (512 | ) | ||||
| Straight-line effects of lease revenue |
(427 | ) | (798 | ) | ||||
| Amortization of above and below market leases |
(18 | ) | 25 | |||||
| Non-incremental capital expenditures (3) |
(12 | ) | (54 | ) | ||||
|
|
|
|
|
|||||
| Adjusted funds from operations (2) |
$ | 4,361 | $ | 7,583 | ||||
|
|
|
|
|
|||||
| Weighted average common shares outstanding |
15,856 | 15,686 | ||||||
| Add (4): |
||||||||
| OP units |
1,405 | 1,114 | ||||||
| Restricted common stock |
1,046 | 726 | ||||||
| Contingent consideration related to business combinations |
206 | 175 | ||||||
| Common stock issuable upon conversion of preferred stock |
— | — | ||||||
|
|
|
|
|
|||||
| Weighted average common shares outstanding—diluted (FFO and AFFO) |
18,513 | 17,701 | ||||||
|
|
|
|
|
|||||
| Funds from operations per share (diluted) |
$ | 0.20 | $ | 0.37 | ||||
| Adjusted funds from operations per share (diluted) |
$ | 0.24 | $ | 0.43 | ||||
|
|
|
|
|
|||||
| Other Information (5): |
||||||||
| Leasing commissions paid |
$ | 95 | $ | 252 | ||||
| Tenant improvements paid |
$ | 626 | $ | 981 | ||||
| (1) | Total consolidated depreciation and amortization, a portion of which is included in discontinued operations on the statements of operations. |
| (2) | FFO and AFFO are described on the Definitions page. |
| (3) | Excludes leasing commissions and tenant improvements |
| (4) | The three and six months ended June 30, 2011 include 1,405,000 and 1,114,000 OP units, respectively, and 1,046,000 shares and 726,000 shares of restricted common stock, respectively, which are considered antidilutive for purposes of calculating diluted earnings per share. The three and six months ended June 30, 2011 exclude 3,333,400 shares of common stock potentially issuable pursuant to the conversion feature of the preferred stock based on the “if converted” method. |
| (5) | Excludes development properties. |
Page 9
Debt Summary
For the Quarter Ended June 30, 2011
(Dollars in thousands)
| % Total Debt | ||||||||
| Fixed Rate Debt(1)(2) |
$ | 131,737 | 66 | % | ||||
| Variable Rate Debt |
67,800 | 34 | % | |||||
|
|
|
|
|
|||||
| Total Debt(1) |
$ | 199,537 | 100 | % | ||||
|
Debt(1)/Gross Undepreciated Assets |
30.9 | % | ||||||
| % Total Debt | ||||||||
| Secured Debt(1) |
$ | 199,002 | 100 | % | ||||
| Unsecured Debt |
535 | 0 | % | |||||
|
|
|
|
|
|||||
| Total Debt |
$ | 199,537 | 100 | % | ||||
| Property-Secured |
Amount | Interest Rate | Maturity | |||||||||
| Mariner’s Point |
$ | 3,449 | 7.10 | % | 2011 | |||||||
| Park West Place |
55,800 | 3.91 | % | 2013 | ||||||||
| Five Forks Place |
5,154 | 5.50 | % | 2013 | ||||||||
| Grant Creek Town Center |
15,862 | 5.75 | % | 2013 | ||||||||
| Edwards Theatres |
12,321 | 6.74 | % | 2014 | ||||||||
| Merchant Central |
4,603 | 5.94 | % | 2014 | ||||||||
| Excel Centre |
12,649 | 6.08 | % | 2014 | ||||||||
| Gilroy Crossing |
47,769 | 5.01 | % | 2014 | ||||||||
| 5000 South Hulen |
13,983 | 5.60 | % | 2017 | ||||||||
| Rite Aid-Vestavia Hills |
1,416 | 7.25 | % | 2018 | ||||||||
| Lowe’s |
13,996 | 7.20 | % | 2031 | ||||||||
| Northside Plaza(3) |
12,000 | 0.09 | % | 2035 | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
199,002 | 4.9 | % | |||||||||
| Less: debt discount |
(671 | ) | ||||||||||
|
|
|
|||||||||||
| Mortgage payable, net |
$ | 198,331 | ||||||||||
| (1) | Excludes debt discount of $671 on mortgages payable. |
| (2) | At June 30, 2011, the Company had a note payable from a consolidated joint venture to the Company’s partner in the amount of approximatley $535,000, which bears interest at a rate of 6%. The balance will be repaid concurrent with a capital call from the joint venture partners, which is expected to occur during the three months ended September 30, 2011. |
| (3) | The Northside Plaza debt represents redevelopment revenue bonds to be used for the redevelopment of this property. The bonds are priced off the SIFMA index and reset weekly. The rate as of June 30, 2011 was 0.09%. The bonds are secured by a $12.1 million letter of credit issued by the Company from the Company’s credit facility. |
| * | On July 8, 2010, the Company entered into an unsecured revolving credit facility (the “Credit Agreement”), which was amended on June 3, 2011. The Credit Agreement provides for a revolving credit facility of up to $200.0 million. The Company has the ability to increase the size of the revolving credit facility by up to an additional $200.0 million to a total of $400.0 million, subject to receipt of lender commitments and other conditions precedent. The amended maturity date is July 7, 2014 and can be extended for one year at the Company’s option. The revolving credit facility bears interest at the rate of LIBOR plus a margin of 220 basis points to 300 basis points, depending on the Company’s leverage ratio. The Company will also pay a 0.35% fee for any unused portion of the revolving credit facility. Borrowings from the credit facility were $0 on June 30, 2011. |
Page 10
Common and Preferred Stock Data
For the Quarter Ended June 30, 2011
| Three Months Ended June 30, 2011 |
Three Months Ended March 31, 2011 |
|||||||
| Earning per share—share data |
||||||||
| Weighted average common shares outstanding |
15,856,000 | 15,513,000 | ||||||
|
|
|
|
|
|||||
| Diluted common shares—EPS |
15,856,000 | 15,513,000 | ||||||
|
|
|
|
|
|||||
| Funds from operations—share data |
||||||||
| Weighted average common shares outstanding |
15,856,000 | 15,513,000 | ||||||
| Weighted average OP units outstanding |
1,405,000 | 819,000 | ||||||
| Weighted average restricted stock outstanding |
1,046,000 | 232,000 | ||||||
| Dilutive effect of contingent consideration related to business combinations |
206,000 | 143,000 | ||||||
| Dilutive effect of convertible preferred shares |
— | 3,333,000 | ||||||
|
|
|
|
|
|||||
| Total potential dilutive common shares |
18,513,000 | 20,040,000 | ||||||
|
|
|
|
|
|||||
| Total common shares (including restricted stock) outstanding |
30,967,679 | 16,576,831 | ||||||
| Total OP units outstanding |
1,405,405 | 1,405,405 | ||||||
| Total preferred shares oustanding |
2,000,000 | 2,000,000 | ||||||
| Common share data |
||||||||
| High closing share price |
12.27 | 13.21 | ||||||
| Low closing share price |
10.94 | 11.54 | ||||||
| Average closing share price |
11.72 | 12.42 | ||||||
| Closing price at end of period |
11.03 | 11.79 | ||||||
| Divideds per share—annualized |
$ | 0.60 | $ | 0.56 | ||||
| Dividend yield (based on closing share price at end of period) |
5.4 | % | 4.7 | % | ||||
| Dividends per share |
||||||||
| Common stock (EXL) |
$ | 0.15 | $ | 0.14 | ||||
| Preferred stock (EXL PrA) |
$ | 0.4375 | $ | 0.3743 | ||||
Page 11
Acquisitions & Developments
For Fiscal Year 2011
(Dollars in thousands)
| Acquisition Property Name |
City |
State | Year Built (1) |
Total GLA (2) |
Acquisition Date |
Initial Cost Basis ($ in 000’s) |
Price Sq. Ft. |
Major Tenants | ||||||||||||||||||
| Edwards Theatres |
San Diego (San Marcos) | CA | 1999 | 100,551 | 3/11/2011 | $ | 25,781 | $ | 256.40 | Edwards Theatres, subsidiary Regal Cinemas (NYSE:RGC) | ||||||||||||||||
| Rite Aid-Vestavia Hills (3) |
Vestavia Hills | AL | 1998 | 11,180 | 3/22/2011 | 1,467 | 131.22 | Rite Aid | ||||||||||||||||||
| Gilroy Crossing |
Gilroy | CA | 2004 | 325,431 | 4/5/2011 | 68,500 | 210.49 | Kohl’s, Ross, Michaels, Bed Bath & Beyond, Target (non-owned) | ||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||
| Total |
437,162 | $ | 95,748 | |||||||||||||||||||||||
| Developments Under Construction |
City |
State | Estimated Completion Date |
GLA to be Constructed |
Land (4) | Improvements | Total Carrying Amount (5) |
Remaining Estimated Cost to Complete |
% GLA Leased
/ Committed (6) |
Major Tenants | ||||||||||||||||||||||||
| Plaza at Rockwall—Phase II |
Rockwall | TX | Q3 2011 | 105,396 | $ | 5,300 | $ | 7,543 | $ | 12,843 | $ | 6,597 | 67 | % | Home Goods, Jo-Ann | |||||||||||||||||||
| Red Rock Commons—Phase I |
St. George | UT | Q2 2012 | 118,500 | 10,823 | 6,328 | 17,151 | 13,480 | 85 | % | Dick’s, PetSmart | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Total |
223,896 | $ | 16,123 | $ | 13,871 | $ | 29,994 | $ | 20,077 | |||||||||||||||||||||||||
| Future Developments / Land |
City |
State | Estimated GLA to be Constructed / Land |
Estimated Start Date |
Estimated Project Cost |
Projected Use | ||||||||||
| Red Rock Commons—Phase II |
St. George | UT | 15,140 | TBD | $ | 1,466 | Additional shop space | |||||||||
| Plaza at Rockwall—Phase III |
Rockwall | TX | 18,400 | TBD | 2,223 | Additional shop space | ||||||||||
| Park West Place |
Stockton | CA | 15,200 | TBD | NA | Additional outparcels to be sold, leased or developed | ||||||||||
| Shops at Foxwood |
Ocala | FL | 1.0 acre | TBD | NA | Additional land to be sold, leased or developed | ||||||||||
| (1) | Year built represents the year in which construction was completed. |
| (2) | Total GLA represents total gross leasable area owned by the Company at the property. |
| (3) | Rite Aid is an outparcel to Vestavia Hills City Center. The purchase of Rite Aid was completed in March 2011. |
| (4) | Plaza at Rockwall—Phase II amount represents the Company’s estimated land value at acquisition date. |
| (5) | Total Carrying Amount includes land value, whereas Construction In Progress (CIP) values for development properties as listed in the Company’s quarterly report on Form 10-Q excludes land values. |
| (6) | Includes square footage of buildings on land owned by the Company and ground leased to tenants, as well as signed non-binding letters of intent as of August, 2011. |
Page 12
Portfolio Summary
For the Quarter Ended June 30, 2011
(Dollars in thousands)
| Property Name |
City |
State | Year Built(1) |
Total GLA(2) |
Acquisition Date |
Price Sq. Ft. |
Initial Cost Basis ($ in 000’s) |
Percent Leased 6/30/2011(3) |
Major Tenants | |||||||||||||||||||||
| Operating Portfolio |
||||||||||||||||||||||||||||||
| Excel Centre |
San Diego | CA | 1999 | 82,157 | * | * | $ | 288 | $ | 23,700 | 96.4 | % | Kaiser Permanente, Swinerton, Excel Trust, UBS | |||||||||||||||||
| Newport Towne Center |
Newport | TN | 2006 | 60,100 | * | * | $ | 108 | $ | 6,500 | 94.9 | % | Stage Stores (DBA Goody’s), Dollar Tree, Super Wal-Mart (non-owned) | |||||||||||||||||
| Five Forks Place |
Simpsonville | SC | 2002 | 61,191 | * | * | $ | 127 | $ | 7,800 | 96.6 | % | Publix | |||||||||||||||||
| 5000 South Hulen |
Fort Worth | TX | 2005 | 86,838 | 5/12/2010 | $ | 252 | $ | 21,900 | 93.8 | % | Barnes & Noble, Old Navy | ||||||||||||||||||
| Walgreens |
Corbin (North) | KY | 2009 | 13,650 | 5/24/2010 | $ | 256 | $ | 3,500 | 100.0 | % | Walgreens | ||||||||||||||||||
| Lowe’s |
Shippensburg | PA | 2008 | 171,069 | 6/22/2010 | $ | 103 | $ | 17,600 | 100.0 | % | Lowe’s | ||||||||||||||||||
| Plaza at Rockwall-Phase I |
Rockwall | TX | 2007 | 328,725 | 6/29/2010 | $ | 108 | $ | 35,500 | 100.0 | % | Best Buy, Dick’s, Staples, Ulta, JC Penney, Belk | ||||||||||||||||||
| Merchant Central |
Milledgeville | GA | 2004 | 45,013 | 6/30/2010 | $ | 136 | $ | 6,100 | 96.4 | % | Dollar Tree, Super Wal-Mart (non-owned) | ||||||||||||||||||
| Mariner’s Point |
St. Marys | GA | 2001 | 45,215 | 7/20/2010 | $ | 146 | $ | 6,600 | 100.0 | % | Shoe Show, Super Wal-Mart (non-owned) | ||||||||||||||||||
| Grant Creek Town Center |
Missoula | MT | 1998 | 164,166 | 8/27/2010 | $ | 130 | $ | 21,300 | 92.3 | % | Ross, TJ Maxx and REI | ||||||||||||||||||
| Vestavia Hills City Center |
Birmingham (Vestavia Hills) | AL | 2002 | 389,985 | 8/30/2010 | $ | 89 | $ | 34,900 | 80.8 | % | Publix, Dollar Tree, Stein Mart, Rave Motion Pictures | ||||||||||||||||||
| Brandywine Crossing |
Brandywine (Washington Metro) | MD | 2009 | 198,384 | 10/1/2010 | $ | 224 | $ | 44,500 | 98.4 | % | Safeway, Marshalls, Jo-Ann, Target (non-owned) Costco (non-owned) | ||||||||||||||||||
| Rosewick Crossing |
La Plata (Washington Metro) | MD | 2008 | 116,095 | 10/1/2010 | $ | 214 | $ | 24,900 | 81.3 | % | Giant Food, Lowe’s (non-owned) | ||||||||||||||||||
| Shops at Foxwood |
Ocala | FL | 2010 | 78,660 | 10/19/2010 | $ | 160 | $ | 12,600 | 92.4 | % | Publix, McDonalds (non-owned) | ||||||||||||||||||
| Northside Plaza |
Dothan | AL | 2010 | 138,311 | 11/15/2010 | $ | 87 | $ | 12,400 | (4) | 87.6 | % | Publix, Hobby Lobby, Books A Million | |||||||||||||||||
| Park West Place |
Stockton | CA | 2005 | 598,287 | 12/14/2010 | $ | 155 | $ | 92,500 | 99.6 | % | Lowe’s, Kohl’s, Sports Authority, Jo-Ann, Ross, PetSmart, Office Depot, Target (non-owned) | ||||||||||||||||||
| Edwards Theatres |
San Diego (San Marcos) | CA | 1999 | 100,551 | 3/11/2011 | $ | 256 | $ | 25,800 | 100.0 | % | Edwards Theatres, subsidiary Regal Cinemas (NYSE:RGC) | ||||||||||||||||||
| Gilroy Crossing |
Gilroy | CA | 2004 | 325,431 | 4/5/2011 | $ | 210 | $ | 68,500 | 99.6 | % | Kohl’s, Ross, Michaels, Bed Bath & Beyond, Target (non-owned) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Total Operating Portfolio |
Total | 3,003,828 | $ | 155 | $ | 466,600 | 94.9 | % | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Developments Under Construction |
City | State | Estimated Completion Date |
GLA to be Constructed |
Land Value (5) | Improvements | Total Carrying Amount (6) |
% GLA Leased / Committed (7) |
Major Tenants | |||||||||||||||||||||
| Plaza at Rockwall—Phase II |
Rockwall | TX | Q3 2011 | 105,396 | 5,300 | 7,543 | 12,843 | 67 | % | Home Goods, Jo-Ann | ||||||||||||||||||||
| Red Rock Commons—Phase I |
St. George | UT | Q2 2012 | 118,500 | 10,823 | 6,328 | 17,151 | 85 | % | Dick’s, PetSmart | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Total |
223,896 | 16,123 | 13,871 | $ | 29,994 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Total Portfolio (8) |
3,227,724 | $ | 496,594 | |||||||||||||||||||||||||||
| ** | Acquired from Predecessor as part of the Company’s formation transactions. |
| (1) | Year built represents the year in which construction was completed, . |
| (2) | Total GLA represents total gross leasable area owned by the Company at the property. |
| (3) | The Company’s Q1 2011 supplemental disclosed occupancy in this column. Going forward the Company intends to disclose both occupancy and leased percentages in the supplemental (see Expiration Schedule for details). |
| (4) | The Company has a 50% interest in the property. |
| (5) | Plaza at Rockwall—Phase II amount represents the Company’s estimated land value at acquisition date. |
| (6) | Total Carrying Amount includes land value, whereas Construction In Progress (CIP) values for development properties as listed in the Company’s quarterly report on Form 10-Q exludes land values. |
| (7) | Includes square footage of buildings on outparcels owned by the Company and ground leased to tenants as well as signed non-binding letters of intent as of August 2011. |
| (8) | Figure excludes Future Development / Land (see Acquisitions & Developments page for details) |
Page 13
Major Tenants By GLA
For the Quarter Ended June 30, 2011
| Total GLA(1) |
3,003,828 | |||
|
|
|
| Tenants |
# Stores | Square Feet | % of Total GLA | |||||||||||
| 1 | Lowe’s | 2 | 325,863 | 10.8 | % | |||||||||
| 2 | Publix | 4 | 199,751 | 6.6 | % | |||||||||
| 3 | Kohl’s | 2 | 176,656 | 5.9 | % | |||||||||
| 4 | JC Penney | 1 | 103,256 | 3.4 | % | |||||||||
| 5 | Edwards Theatres | 1 | 100,551 | 3.3 | % | |||||||||
| 6 | Ross Dress for Less | 3 | 90,348 | 3.0 | % | |||||||||
| 7 | Belk | 1 | 75,524 | 2.5 | % | |||||||||
| 8 | Sports Authority | 2 | 71,018 | 2.4 | % | |||||||||
| 9 | Giant Food | 1 | 61,932 | 2.1 | % | |||||||||
| 10 | Jo-Ann | 2 | 60,619 | 2.0 | % | |||||||||
|
|
|
|
|
|
|
|||||||||
| Total Top 10 GLA | 19 | 1,265,518 | 42.1 | % | ||||||||||
Major Tenants By Rent
| Annualized Base Rent (1)(2) |
$ | 39,822,560 | ||
|
|
|
| Tenants |
# Stores | Square Feet | Rent Per Sq Ft | ABR | % ABR | |||||||||||||||||
| 1 | Lowe’s | 2 | 325,863 | $ | 6.74 | $ | 2,195,000 | 5.5 | % | |||||||||||||
| 2 | Edwards Theatres | 1 | 100,551 | $ | 21.72 | $ | 2,184,131 | 5.5 | % | |||||||||||||
| 3 | Publix | 4 | 199,751 | $ | 10.75 | $ | 2,148,036 | 5.4 | % | |||||||||||||
| 4 | Kohl’s | 2 | 176,656 | $ | 7.63 | $ | 1,347,488 | 3.4 | % | |||||||||||||
| 5 | Kaiser Permanente | 1 | 30,052 | $ | 41.92 | $ | 1,259,634 | 3.2 | % | |||||||||||||
| 6 | Ross Dress for Less | 3 | 90,348 | $ | 11.87 | $ | 1,072,740 | 2.7 | % | |||||||||||||
| 7 | Sports Authority | 2 | 71,018 | $ | 13.63 | $ | 967,980 | 2.4 | % | |||||||||||||
| 8 | Jo-Ann | 2 | 60,619 | $ | 13.52 | $ | 819,685 | 2.1 | % | |||||||||||||
| 9 | Dick’s Sporting Goods | 1 | 50,000 | $ | 16.30 | $ | 815,186 | 2.0 | % | |||||||||||||
| 10 | Barnes & Noble | 2 | 48,051 | $ | 16,56 | $ | 795,771 | 2.0 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total Top 10 Annualized Rent | 20 | 1,152,909 | $ | 11.80 | $ | 13,605,651 | 34.2 | % | ||||||||||||||
| (1) | Only contemplates tenants from the Operating Portfolio |
| (2) | Annualized Base Rent is described on the Definitions page. |
Page 14
Expiration Schedule
For the Quarter Ended June 30, 2011
| Total GLA - Operating Portfolio |
3,003,828 | |||
| Total GLA Occupied |
2,800,757 | |||
|
|
|
|||
| % Occupied |
93.2 | % | ||
| Total GLA—Operating Portfolio |
3,003,828 | |||
| Total GLA Leased |
2,849,476 | |||
|
|
|
|||
| % Leased |
94.9 | % | ||
| Retail GLA—Operating Portfolio(1) |
2,921,671 | |||
| Retail GLA Occupied |
2,721,587 | |||
|
|
|
|||
| % Occupied |
93.2 | % | ||
| Retail GLA—Operating Portfolio(1) |
2,921,671 | |||
| Retail GLA Leased |
2,770,306 | |||
|
|
|
|||
| % Leased |
94.8 | % | ||
| % of Occupied Retail GLA |
Total Occupied Retail ABR |
% of Total Occupied Retail ABR |
||||||||||||||
| Occupied Retail Anchor GLA(2) |
2,004,759 | 73.7 | % | $ | 21,671,885 | 58.4 | % | |||||||||
| Occupied Retail Inline GLA(2)(3) |
716,828 | 26.3 | % | 15,451,526 | 41.6 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Occupied Retail GLA |
2,721,587 | 100.0 | % | $ | 37,123,411 | 100.0 | % | |||||||||
| Year |
Anchor GLA Expiring |
% of Occupied GLA |
Anchor Rent Per SF |
Inline GLA Expiring |
% of Occupied GLA |
Inline Rent Per Sq Ft |
Total Retail GLA Expiring |
% of Occupied GLA |
Total ABR Expiring |
% of Total ABR |
Average Rent Per SF |
|||||||||||||||||||||||||||||||||
|
2011(3) |
36,500 | 1.8 | % | $ | 7.15 | 82,480 | 11.5 | % | $ | 13.81 | 118,980 | 4.4 | % | $ | 1,399,861 | 3.8 | % | $ | 11.77 | |||||||||||||||||||||||||
| 2012 |
38,000 | 1.9 | % | $ | 12.37 | 54,406 | 7.6 | % | $ | 19.78 | 92,406 | 3.4 | % | $ | 1,546,410 | 4.2 | % | $ | 16.73 | |||||||||||||||||||||||||
| 2013 |
40,072 | 2.0 | % | $ | 12.63 | 90,241 | 12.6 | % | $ | 20.19 | 130,313 | 4.8 | % | $ | 2,410,484 | 6.5 | % | $ | 18.50 | |||||||||||||||||||||||||
| 2014 |
77,357 | 3.9 | % | $ | 15.71 | 139,256 | 19.4 | % | $ | 21.28 | 216,613 | 8.0 | % | $ | 4,178,073 | 11.3 | % | $ | 19.29 | |||||||||||||||||||||||||
| 2015 |
245,287 | 12.2 | % | $ | 12.92 | 121,196 | 16.9 | % | $ | 22.88 | 366,483 | 13.5 | % | $ | 5,953,373 | 16.0 | % | $ | 16.24 | |||||||||||||||||||||||||
| 2016 |
92,812 | 4.6 | % | $ | 11.26 | 77,014 | 10.7 | % | $ | 19.86 | 169,826 | 6.2 | % | $ | 2,574,261 | 6.9 | % | $ | 15.16 | |||||||||||||||||||||||||
| 2017 |
— | 0.0 | % | $ | 0.00 | 19,479 | 2.7 | % | $ | 25.72 | 19,479 | 0.7 | % | $ | 500,913 | 1.3 | % | $ | 25.72 | |||||||||||||||||||||||||
| 2018 |
121,702 | 6.1 | % | $ | 16.66 | 13,989 | 2.0 | % | $ | 28.34 | 135,691 | 5.0 | % | $ | 2,423,637 | 6.5 | % | $ | 17.86 | |||||||||||||||||||||||||
| 2019 |
174,821 | 8.7 | % | $ | 18.59 | 24,207 | 3.4 | % | $ | 22.56 | 199,028 | 7.3 | % | $ | 3,795,900 | 10.2 | % | $ | 19.07 | |||||||||||||||||||||||||
| 2020 |
49,384 | 2.5 | % | $ | 12.20 | 41,723 | 5.8 | % | $ | 20.40 | 91,107 | 3.3 | % | $ | 1,453,337 | 3.9 | % | $ | 15.95 | |||||||||||||||||||||||||
| Beyond 2020 |
1,128,824 | 56.3 | % | $ | 8.09 | 52,837 | 7.4 | % | $ | 31.41 | 1,181,661 | 43.4 | % | $ | 10,887,162 | 29.3 | % | $ | 9.21 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| Total |
2,004,759 | 100.0 | % | $ | 10.81 | 716,828 | 100.0 | % | $ | 21.08 | 2,721,587 | 100.0 | % | $ | 37,123,411 | 100.0 | % | $ | 13.64 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
| (1) | Retail figures exclude the Excel Centre because it is an office building and currently serves as headquarters for Excel Trust. |
| (2) | Anchor Tenants and Inline Tenants are described on the Definitions page. |
| (3) | Includes month-to-month leases |
Page 15
Definitions
Adjusted Funds From Operations (AFFO): Adjusted Funds From Operations (AFFO) is a non-GAAP financial measure we believe is a useful supplemental measure of our performance. We compute AFFO by adding to FFO the non-cash compensation expense, amortization of prepaid financing costs and non-recurring transaction costs, and other one-time items, then subtracting straight-line rents, amortization of above and below market leases and non-incremental capital expenditures. Our computation may differ from the methodology for calculating AFFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. AFFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of Excel Trust’s financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of Excel Trust’s liquidity, nor is it indicative of funds available to fund Excel Trust’s cash needs, including Excel Trust’s ability to pay dividends or make distributions.
Anchor Tenant: A tenant who occupies 10,000 square feet or more and belongs to a national or regional chain of stores.
Annualized Base Rent: Annualized Base Rent is obtained by annualizing the contractual rental rate (excluding reimbursements and percentage rent) during the final month of a reporting period.
Funds From Operations (FFO): Excel Trust considers FFO an important supplemental measure of its operating performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year-over-year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income.
Excel Trust computes FFO in accordance with standards established by the Board of Governors of NAREIT in its March 1995 White Paper (as amended in November 1999 and April 2002). As defined by NAREIT, FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus real estate related depreciation and amortization (excluding amortization of loan origination costs) and after adjustments for unconsolidated partnerships and joint ventures. Excel Trust’s computation may differ from the methodology for calculating FFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO does not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. FFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of Excel Trust’s financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of Excel Trust’s liquidity, nor is it indicative of funds available to fund Excel Trust’s cash needs, including Excel Trust’s ability to pay dividends or make distributions.
Inline Tenant: Any tenant who does not qualify as an anchor tenant.
Leased: A space is considered leased when both Excel Trust and the tenant have executed the lease.
Occupied: A space is considered occupied when the tenant has occupied the space and rent has commenced. If a tenant has vacated and Excel Trust has agreed to terminate the lease the space is considered unoccupied.
Page 16