Supplemental Operating and Financial Data for the Period ended June 30, 2010 1 Plaza at Rockwall Phase I – Rockwall, TX Exhibit 99.2 |
2 Table of Contents Company Overview Analyst Coverage Financial Summary Condensed Consolidated Balance Sheets Condensed Consolidated Statements of Operations Reconciliation of Net Loss Attributable to Common Stockholders to FFO Debt Summary Portfolio Summary Acquisitions and Dispositions Portfolio Summary Major Tenants Lease Expiration Schedule Definitions |
Company Overview As of June 30, 2010 3 Excel Trust, Inc. is a retail focused REIT that targets community and power centers, grocery anchored neighborhood centers and freestanding retail properties. The Company intends to be treated as a REIT, for U.S. federal income tax purposes, commencing with the taxable year ending December 31, 2010. Excel Trust trades publicly on the NYSE under the symbol "EXL" . Company Contact Information Excel Trust, Inc. Matt Romney, SVP, Capital Markets 17140 Bernardo Center Dr., Ste 300 San Diego, CA 92128 Main: 858-613-1800 info@exceltrust.com Company Website http://www.exceltrust.com Forward-Looking Statements This press release 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. |
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 Analyst Coverage As of June 30, 2010 4 |
EXCEL TRUST, INC. AND
EXCEL TRUST, INC. PREDECESSOR
CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
The Company | The Predecessor | |||||||
June 30, 2010 | December 31, 2009 | |||||||
ASSETS: | ||||||||
Property: | ||||||||
Land | $ | 52,630 | $ | 15,300 | ||||
Building | 78,861 | 20,538 | ||||||
Site improvements | 8,401 | 2,445 | ||||||
Tenant improvements | 12,927 | 6,629 | ||||||
Construction in progress | 1,635 | 1,438 | ||||||
Less accumulated depreciation | (5,274 | ) | (4,481 | ) | ||||
Property, net | 149,180 | 41,869 | ||||||
Cash and cash equivalents | 91,222 | 661 | ||||||
Restricted cash | 1,040 | 524 | ||||||
Tenant receivables, net | 91 | 97 | ||||||
Lease intangibles, net | 16,263 | 1,118 | ||||||
Deferred rent receivable | 734 | 583 | ||||||
Other assets | 1,059 | 604 | ||||||
Total assets | $ | 259,589 | $ | 45,456 | ||||
LIABILITIES AND EQUITY: | ||||||||
Liabilities: | ||||||||
Mortgage notes payable, net | $ | 49,996 | $ | 30,190 | ||||
Accounts payable and other liabilities | 5,681 | 3,973 | ||||||
Lease intangibles, net | 3,165 | 555 | ||||||
Due to owner | — | 1,216 | ||||||
Total liabilities | 58,842 | 35,934 | ||||||
Equity: | ||||||||
Stockholders’ equity and owner’s equity | ||||||||
Common stock, $.01 par value, 200,000,000 shares authorized; 15,663,331 shares issued and outstanding | 155 | — | ||||||
Additional paid in capital | 194,451 | — | ||||||
Accumulated earnings | (1,752 | ) | — | |||||
Total stockholders’ deficit | 192,854 | — | ||||||
Owner’s equity | — | 8,622 | ||||||
Non-controlling interests | 7,893 | 900 | ||||||
Total equity | 200,747 | 9,522 | ||||||
Total liabilities and equity | $ | 259,589 | $ | 45,456 | ||||
5
EXCEL TRUST, INC. AND
EXCEL TRUST, INC. PREDECESSOR
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
(Dollars in thousands)
(Unaudited)
The Company | The Predecessor | The Predecessor | ||||||||||
Period from April 28, 2010 to June 30, 2010 | Period April 1, 2010 to April 27, 2010 | Three Months Ended June 30, 2009 | ||||||||||
REVENUES: | ||||||||||||
Rental revenue | $ | 1,453 | $ | 317 | $ | 1,185 | ||||||
Tenant recoveries | 92 | 31 | 82 | |||||||||
Other income | 34 | — | — | |||||||||
Total revenues | 1,579 | 348 | 1,267 | |||||||||
Expenses: | ||||||||||||
Maintenance and repairs | 56 | 21 | 40 | |||||||||
Real estate taxes | 120 | 37 | 102 | |||||||||
Management fees | 3 | 10 | 33 | |||||||||
Other operating expenses | 66 | 23 | 100 | |||||||||
General and administrative | 2,136 | 2 | 14 | |||||||||
Depreciation and amortization | 746 | 82 | 461 | |||||||||
Total expenses | 3,127 | 175 | 750 | |||||||||
(1,548 | ) | 173 | 517 | |||||||||
Net operating (loss) income | ||||||||||||
Interest expense | (350 | ) | (121 | ) | (328 | ) | ||||||
Interest income | 74 | — | 1 | |||||||||
Net (loss) income | (1,824 | ) | 52 | 190 | ||||||||
Non-controlling interest | (72 | ) | 197 | — | ||||||||
Net (loss) income attributable to the common shareholders and controlling interest | $ | (1,752 | ) | $ | (145 | ) | $ | 190 | ||||
Basic and diluted loss per share | $ | (0.11 | ) | |||||||||
Weighted-average common shares outstanding - basic and diluted | 15,460 | |||||||||||
6
EXCEL TRUST, INC. AND
EXCEL TRUST, INC. PREDECESSOR
CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
(Dollars in thousands)
(Unaudited)
The Company | The Predecessor | The Predecessor | ||||||||||
Period from April 28, 2010 to June 30, 2010 | Period January 1, 2010 to April 27, 2010 | Six Months Ended June 30, 2009 | ||||||||||
REVENUES: | ||||||||||||
Rental revenue | $ | 1,453 | $ | 1,455 | $ | 2,243 | ||||||
Tenant recoveries | 92 | 113 | 154 | |||||||||
Other income | 34 | — | ||||||||||
Total revenues | 1,579 | 1,568 | 2,397 | |||||||||
Expenses: | ||||||||||||
Maintenance and repairs | 56 | 98 | 111 | |||||||||
Real estate taxes | 120 | 140 | 217 | |||||||||
Management fees | 3 | 43 | 65 | |||||||||
Other operating expenses | 66 | 98 | 209 | |||||||||
General and administrative | 2,136 | 8 | 35 | |||||||||
Depreciation and amortization | 746 | 542 | 1,154 | |||||||||
Total expenses | 3,127 | 929 | 1,791 | |||||||||
(1,548 | ) | 639 | 606 | |||||||||
Net operating (loss) income | ||||||||||||
Interest expense | (350 | ) | (483 | ) | (655 | ) | ||||||
Interest income | 74 | — | 3 | |||||||||
Net (loss) income | (1,824 | ) | 156 | (46 | ) | |||||||
Non-controlling interests | (72 | ) | 290 | — | ||||||||
Net (loss) income attributable to the common shareholders and controlling interest | $ | (1,752 | ) | $ | (134 | ) | $ | (46 | ) | |||
Basic and diluted loss per share | $ | (0.11 | ) | |||||||||
Weighted-average common shares outstanding - basic and diluted | 15,460 | |||||||||||
7
8 Reconciliation of Net Loss Attributable to Common Stockholders to Funds From Operations As of June 30, 2010 Excel Trust’s FFO available to common stockholders and operating partnership unitholders and a reconciliation to net income for the period from April 28, 2010 through June 30, 2010 is as follows: Net loss attributable to common stockholders $ (1,752,000) Adjustments to reconcile to Funds from Operations: Depreciation and amortization expense $ 746,000 Funds From Operations – Basic and Diluted $ (1,006,000) Weighted Average Shares For Diluted FFO per Share – Basic and Diluted 15,460,000 FFO per Share - Basic and Diluted $ (0.07) Other items included in funds from operations: Organizational and other non-recurring costs related to the IPO $ (1,023,000) Straight-line rents $ 73,000 Amortization of above/below market leases and lease incentives $ 90,000 (1) (1) For definitions and discussion of FFO, see page 14. |
9 Debt Summary As of June 30, 2010 (Dollars in thousands) Fixed Rate Debt $51,406 Variable Debt $0 Total Debt $51,406 Total Maturities Amount % Total Debt Remainder 2010 $473 0.9% 2011 $1,004 2.0% 2012 $1,063 2.1% 2013 $5,824 11.3% 2014 $16,984 33.0% 2015 $654 1.3% Beyond 2015 $25,404 49.4% Totals $51,406 100.0% Property Interest Rate Maturity Date Due at Maturity Excel Centre 6.08% 5/31/14 $11,922 Five Forks Place 5.50% 6/30/13 $4,801 5000 South Hulen 5.60% 4/1/17 $12,675 Lowe's 7.20% 10/10/31 $108 Merchants Central 5.94% 7/1/14 $4,317 |
10 Acquisitions and Dispositions As of June 30, 2010 (Dollars in thousands) Property Name City ST Date Acquisition Price Excel Centre San Diego CA * $23,700 Newport Towne Center Newport TN * $6,500 Five Forks Place Simpsonville SC * $7,800 Red Rock Commons St. George UT * $11,700 5000 South Hulen Fort Worth TX 5/12/2010 $21,900 Jewel-Osco Morris IL 5/14/2010 $8,200 Walgreens Corbin (North) KY 5/24/2010 $3,500 Walgreens Corbin (South) KY 5/24/2010 $4,200 Walgreens Barbourville KY 5/24/2010 $4,200 Shop ’n Save (SuperValu) Ballwin MO 5/28/2010 $8,500 Walgreens Beckley WV 6/17/2010 $7,200 Lowe's Shippensburg PA 6/22/2010 $17,600 Plaza at Rockwall - Phase I Rockwall TX 6/29/2010 $35,500 Plaza at Rockwall - Phase II Rockwall TX 6/29/2010 $5,300 Merchant Central Milledgeville GA 6/30/2010 $6,100 Total $171,900 * Acquired from Predecessor as part of the Company’s formation transactions. |
11 Portfolio Summary As of June 30, 2010 (Dollars in thousands) Bldg. Acquisition Price Property Name City State Sq. Ft. Price Sq. Ft. % Leased Major Tenants Excel Centre San Diego CA 82,157 $23,700 $288 100% Excel Trust, Kaiser Permanente, UBS Newport Town Center Newport TN 60,100 $6,500 $108 91% Stage Stores (DBA Goody's), Dollar Tree, Super Wal-Mart Shadow Anchor Five Forks Place Simpsonville SC 61,191 $7,800 $127 98% Publix 5000 South Hulen Fort Worth TX 86,838 $21,900 $252 92% Barnes and Noble, Old Navy Jewel-Osco Morris IL 51,762 $8,200 $158 100% Jewel Osco Walgreens Corbin (North) KY 13,650 $3,500 $256 100% Walgreens Walgreens Corbin (South) KY 13,650 $4,200 $308 100% Walgreens Walgreens Barbourville KY 13,650 $4,200 $308 100% Walgreens Shop ’n Save (SuperValu) Ballwin MO 53,411 $8,500 $159 100% Shop n Save Walgreens Beckley WV 14,820 $7,200 $486 100% Walgreens Lowe's Shippensburg PA 171,069 $17,600 $103 100% Lowe's Plaza at Rockwall - Phase I Rockwall TX 332,989 $35,500 $107 95% Best Buy, Dick's, Staples, Ulta, JC Penney, Belk Merchant Central Milledgeville GA 45,013 $6,100 $136 97% Dollar Tree, Super Wal-Mart Shadow Anchor Totals 1,000,300 $154,900 $155 97% Properties for Development Red Rock Commons St. George UT TBD $11,700 Plaza at Rockwall - Phase II Rockwall TX TBD $5,300 Totals $17,000 Total Portfolio $171,900 |
12 Major Tenants By GLA As of June 30, 2010 Sorted by Total GLA Total GLA 1,000,300 Tenants Number of Stores Square Feet % of Total GLA Lowe's 1 171,069 17% JC Penney 1 103,256 10% Belk 1 75,524 8% Walgreens 4 55,770 6% Shop ’n Save (SuperValu) 1 53,411 5% Jewel-Osco 1 51,762 5% Dick's Sporting Goods 1 50,000 5% Publix 1 44,271 4% Kaiser Permanente 1 30,052 3% Best Buy 1 30,000 3% Major Tenants By Rent As of June 30, 2010 Sorted by Annualized Rent-Total Portfolio Tenants Number of Stores Square Feet Rent per sq. ft. Annualized Rent Walgreens 4 55,770 $27.41 $1,528,600 Lowe's 1 171,069 $8.62 $1,475,000 Kaiser Permanente 1 30,052 $40.50 $1,217,038 Dicks Sporting Goods 1 50,000 $16.30 $815,186 Shop ’n Save (SuperValu) 1 53,411 $13.50 $721,049 Jewel-Osco 1 51,762 $12.75 $660,122 Swinerton 1 13,503 $36.99 $499,486 Publix 1 44,271 $10.60 $469,273 Barnes & Noble 1 25,002 $18.00 $450,036 Best Buy 1 30,000 $15.00 $450,000 |
*Retail figures exclude the Excel Centre because it is an office building and currently serves as headquarters for Excel Trust. 13 Lease Expiration Schedule As of June 30, 2010 Retail GLA (sq ft)* 918,143 Retail GLA Leased (sq ft) 888,042 % Retail Leased 96.72% Year of Number of Square Footage of Average Rent Per % GLA Lease Expiration Leases Expiring Sq ft of Leases Expiring Square ft - Leases Expiring Expiring 2010 1 826 $38 0.09% 2011 24 58,958 $19 6.42% 2012 5 11,741 $18 1.28% 2013 9 20,101 $24 2.19% 2014 10 26,160 $13 2.85% 2015 12 64,195 $17 6.99% 2016 1 3,649 $25 0.40% 2017 1 4,835 $32 0.53% 2018 6 117,931 $17 12.84% 2019 1 3,149 $36 0.34% 2020 6 8,990 $25 0.98% |
Funds From Operations (FFO): Excel Trust considers FFO an important supplemental measure of its operating performance and believes 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. Definitions As of June 30, 2010 14 |