Supplemental Information
for the Quarter Ended March 31, 2016
Basis of Presentation 
Background
Rouse is a publicly traded real estate investment trust (REIT) focused on the management, redevelopment, repositioning and acquisition of regional malls and the portfolio at the end of the quarter consisted of 36 geographically diverse malls and retail centers, encompassing over 24.8 million square feet in 21 states. On January 12, 2012, General Growth Properties, Inc. (NYSE: GGP) completed the spin-off of Rouse Properties, Inc. (NYSE: RSE) through the distribution of shares of Rouse common stock to holders of GGP common stock. On March 26, 2012, Rouse completed its rights offering and issued 13,333,333 shares of common stock for $191.6 million of net proceeds. On January 13, 2014, Rouse issued 8,050,000 shares of common stock in its equity offering for $150.7 million of net proceeds before deducting for offering expenses.
General Information
Unless the context indicates otherwise, references in the accompanying financial information (the "Supplemental") to the "Corporation", "Rouse", or the "Company" refer to Rouse Properties Inc. Additionally, where reference is made to "GAAP", this refers to accounting principles generally accepted in the United States.
Non-GAAP Measures
The Company makes reference to net operating income (“NOI”) and funds from operations (“FFO”). NOI is defined as operating revenues (minimum rents, including lease termination fees, tenant recoveries, overage rents, and other income) less property and related expenses (property operating expenses, real estate taxes, repairs and maintenance, marketing, other property operating costs, and provision for doubtful accounts). FFO is defined as net income (loss) attributable to common stockholders in accordance with GAAP, excluding impairment write-downs on depreciable real estate, gains (or losses) from cumulative effects of accounting changes, extraordinary items and sales of properties, plus real estate related depreciation and amortization.
The Company also adjusts for the portion of consolidated net income (loss) attributable to non-controlling interests of joint venture partners to reflect FFO allocable to the Company's common shareholders.
In order to present operations in a manner most relevant to its future operations, Core FFO and Core NOI have been presented to exclude certain non-cash and non-recurring revenue and expenses. A reconciliation of NOI to Core NOI and FFO to Core FFO has been included in the "Reconciliation of Core NOI and Core FFO" schedule included within.
NOI, FFO and derivations thereof, are not alternatives to GAAP operating income (loss) or net income (loss) available to common stockholders. For reference, as an aid in understanding management's computation of NOI and FFO, a reconciliation of NOI to operating income and FFO to net income (loss) in accordance with GAAP has been included in the "Reconciliation of Non-GAAP to GAAP Financial Measures" schedule.
Table of Contents
|
| | |
| | | Page |
| Company Information | | |
| | | |
| Financial Overview | | |
| Consolidated Balance Sheets | | |
| Consolidated Statements of Operations and Comprehensive Income (Loss) | | |
| | | |
| Financial Schedules | | |
| Reconciliation of Core NOI and Core FFO - For the Three Month Period Ended | | |
| Core NOI Summary | | |
| Reconciliation of Non-GAAP to GAAP Financial Measures | | |
| Mortgages, Notes and Loans Payable | | |
| Prepaid Expenses and Other Assets and Accounts Payable and Accrued Expenses | | |
| | | |
| Portfolio Operating Metrics | | |
| Capital Expenditures | | |
| Key Operating Performance Indicators | | |
| Summary of Properties | | |
| Lease Expiration Schedule | | |
| Top Ten Tenants | | |
| Leasing Activity | | |
| | | |
| Glossary of Terms | | |
The presentation contains forward-looking statements. Actual results may differ materially from the results suggested by these forward-looking statements, for a number of reasons. Readers are referred to the documents filed by Rouse Properties, Inc. with the Securities and Exchange Commission, which further identify the important risk factors which could cause actual results to differ materially from the forward-looking statements in the Supplemental. The Company disclaims any obligation to update any forward-looking statements.
Company Information
Company Contacts
|
| | | |
| Andrew Silberfein | Chief Executive Officer | | |
| Brian Harper | Chief Operating Officer | | |
| John Wain | Chief Financial Officer | | |
| Susan Elman | Executive Vice President, General Counsel | | |
| Michael Grant | Chief Accounting Officer | | |
| Brad Cohen/Steve Swett | ICR, Investor Relations and Communications | ir@rouseproperties.com | (212) 608-5108 |
Research Coverage
|
| | | |
| Bank of America/Merrill Lynch | Craig Schmidt | craig.schmidt@baml.com | (646) 855-3640 |
| Barclays Capital | Ross Smotrich | ross.smotrich@barcap.com | (212) 526-2306 |
| Boenning & Scattergood | Floris Van Dijkum | fvandijkum@boenninginc.com | (212) 209-3916 |
| Canaccord Genuity | Paul Morgan | pmorgan@canaccordgenuity.com | (415) 325-7269 |
| Green Street Advisors | Daniel Busch | dbusch@greenstreetadvisors.com | (949) 640-8780 |
| KeyBanc | Todd Thomas | tthomas@key.com | (917) 368-2286 |
| RBC | Richard Moore | rich.moore@rbccm.com | (440) 715-2646 |
| Stifel Nicolaus | Nathan Isbee | isbeen@stifel.com | (443) 224-1346 |
Common Share Trading Statistics
|
| | | | | | | | |
| | | March 31, 2016 | | December 31, 2015 |
| High | | $ | 18.40 |
| | $ | 18.61 |
|
| Low | | $ | 13.12 |
| | $ | 14.09 |
|
| Close | | $ | 18.38 |
| | $ | 14.56 |
|
| Volume | | 62,347,900 |
| | 16,646,100 |
|
|
| | |
| Q1 2016 Supplemental Package | | 3 |
Shares Outstanding
|
| | | | |
| | Three Months Ended |
| | March 31, 2016 | | March 31, 2015 |
| Total common shares outstanding | 57,882,048 | | 57,833,216 |
|
Net number of common shares issuable assuming exercise of stock options (1) | 443,250 | | 715,698 |
|
| Total common shares - diluted | 58,325,298 | | 58,548,914 |
|
Weighted average common shares outstanding - diluted (FFO)(2) | 57,997,943 | | 58,287,256 |
|
Weighted average common shares outstanding - basic (GAAP)(3) | 57,643,017 | | 57,603,340 |
|
Weighted average common shares outstanding - diluted (GAAP)(3)(4) | 57,643,017 | | 58,287,256 |
|
(1) Based upon the weighted average stock price for the three months ended March 31, 2016.
(2) Utilized for Funds From Operations (FFO) and Core Funds From Operations (Core FFO) purposes.
(3) Calculated in accordance with GAAP for the three months ended March 31, 2016 and 2015.
(4) Dilutive shares are excluded for the three months ended March 31, 2016, as the Company was in a net loss position.
|
| | |
| Q1 2016 Supplemental Package | | 4 |
Financial Overview
Consolidated Balance Sheets
|
| | | | | | | | |
| (In thousands) |
| March 31, 2016 (Unaudited) |
| December 31, 2015 |
| |
|
|
|
|
| Assets: |
| |
|
| |
|
| Investment in real estate: |
| |
|
| |
|
| Land |
| $ | 427,952 |
| | $ | 428,157 |
|
| Buildings and equipment |
| 2,180,341 |
| | 2,151,443 |
|
| Less accumulated depreciation |
| (257,953 | ) | | (239,091 | ) |
| Net investment in real estate |
| 2,350,340 |
| | 2,340,509 |
|
| Cash and cash equivalents |
| 6,516 |
| | 5,420 |
|
| Restricted cash | | 32,752 |
| | 34,568 |
|
| Accounts receivable, net |
| 43,434 |
| | 43,196 |
|
Deferred expenses, net (1) |
| 45,975 |
| | 44,859 |
|
| Prepaid expenses and other assets, net |
| 44,540 |
| | 49,034 |
|
| Total assets |
| $ | 2,523,557 |
| | $ | 2,517,586 |
|
|
|
|
|
|
|
|
| Liabilities: |
| |
|
| |
|
Mortgages, notes and loans payable, net (1) |
| $ | 1,735,926 |
| | $ | 1,694,841 |
|
| Accounts payable and accrued expenses, net |
| 127,992 |
| | 147,288 |
|
| Total liabilities |
| 1,863,918 |
| | 1,842,129 |
|
|
|
|
|
|
|
|
| Commitments and contingencies |
| — |
|
| — |
|
|
|
|
|
|
|
|
| Mezzanine Equity: | | | | |
| Non-controlling interest in Operating Partnership | | 141,965 |
| | 140,953 |
|
| | | | | |
| Equity: |
| |
|
| |
|
Preferred stock (2) | | — |
| | — |
|
Common stock (3) |
| 581 |
| | 581 |
|
| Additional paid-in capital |
| 643,203 |
| | 643,828 |
|
| Accumulated deficit |
| (131,264 | ) | | (121,182 | ) |
| Accumulated other comprehensive loss | | (4,257 | ) | | (65 | ) |
Treasury stock (4) | | (5,073 | ) | | (3,509 | ) |
| Total stockholders' equity |
| 503,190 |
| | 519,653 |
|
| Non-controlling interest |
| 14,484 |
|
| 14,851 |
|
| Total equity |
| 517,674 |
| | 534,504 |
|
| Total liabilities, mezzanine equity and equity |
| $ | 2,523,557 |
| | $ | 2,517,586 |
|
(1) For the year ended December 31, 2015, deferred financing costs of approximately $11.7 million were reclassified from Deferred expenses, net to Mortgages, notes and loans payable, net due to the adoption of ASU 2015-03: "Simplifying the Presentation of Debt Issuance Costs".
(2) Preferred stock: $0.01 par value; 50,000,000 shares authorized, 0 issued and outstanding at March 31, 2016 and December 31, 2015.
(3) Common stock: $0.01 par value; 500,000,000 shares authorized, 58,287,506 issued and 57,882,048 outstanding at March 31, 2016 and 58,097,933 issued and 57,797,475 outstanding at December 31, 2015.
(4) Treasury stock, at cost, $0.01 par value, 343,055 shares at March 31, 2016 and 238,055 shares at December 31, 2015.
|
| | |
| Q1 2016 Supplemental Package | | 5 |
Financial Overview
Consolidated Statements of Operations and Comprehensive Income (Loss)
|
| | | | | | | |
| Three Months Ended |
| (In thousands, except per share amounts) | March 31, 2016 (Unaudited) | | March 31, 2015 (Unaudited) |
| Revenues: | |
| | |
|
| Minimum rents | $ | 56,265 |
| | $ | 51,534 |
|
| Tenant recoveries | 20,843 |
| | 19,949 |
|
| Overage rents | 1,744 |
| | 1,590 |
|
| Other | 1,780 |
| | 1,488 |
|
| Total revenues | 80,632 |
| | 74,561 |
|
| Expenses: | |
| | |
|
| Property operating costs | 16,959 |
| | 16,875 |
|
| Real estate taxes | 7,032 |
| | 7,474 |
|
| Property maintenance costs | 2,899 |
| | 3,385 |
|
| Marketing | 421 |
| | 389 |
|
| Provision for doubtful accounts | 613 |
| | 497 |
|
| General and administrative | 6,839 |
| | 6,470 |
|
| Provision for impairment | — |
| | 2,900 |
|
| Depreciation and amortization | 26,348 |
| | 25,986 |
|
| Other | 11,361 |
| | 2,159 |
|
| Total operating expenses | 72,472 |
| | 66,135 |
|
| Operating income | 8,160 |
| | 8,426 |
|
| | | | |
| Interest income | 4 |
| | 13 |
|
| Interest expense | (17,953 | ) | | (19,151 | ) |
| Gain on extinguishment of debt | — |
| | 22,840 |
|
| (Loss) income before income taxes and gain on sale of real estate assets | (9,789 | ) | | 12,128 |
|
| Provision for income taxes | (158 | ) | | (236 | ) |
| (Loss) income before gain on sale of real estate assets | (9,947 | ) | | 11,892 |
|
| Gain on sale of real estate assets | — |
| | 32,509 |
|
| Net (loss) income | $ | (9,947 | ) | | $ | 44,401 |
|
| Net (income) loss attributable to non-controlling interests | (135 | ) | | 6 |
|
| Net (loss) income attributable to Rouse Properties Inc. | $ | (10,082 | ) | | $ | 44,407 |
|
| Preferred distributions | (1,750 | ) | | — |
|
| Net (loss) income allocable to common shareholders | $ | (11,832 | ) | | $ | 44,407 |
|
| | | | |
| Per common share data: | | | |
| Net (loss) income per share allocable to common shareholders | | | |
| Basic | $ | (0.21 | ) | | $ | 0.77 |
|
| Diluted | $ | (0.21 | ) | | $ | 0.76 |
|
| | | | |
| Dividends declared per share | $ | — |
| | $ | 0.18 |
|
| | | | |
| Other comprehensive income (loss): | | | |
| Net (loss) income | $ | (9,947 | ) | | $ | 44,401 |
|
| Other comprehensive income (loss): | | | |
| Net unrealized loss on financial instruments | (4,192 | ) | | (406 | ) |
| Comprehensive (loss) income | $ | (14,139 | ) | | $ | 43,995 |
|
|
| | |
| Q1 2016 Supplemental Package | | 6 |
Financial Schedules
Reconciliation of Core NOI and Core FFO - For the Three Month Period Ended |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| March 31, 2016 | | March 31, 2015 |
| (In thousands, except per share amounts) |
| (Unaudited) | | (Unaudited) |
|
| Consolidated |
| Non-controlling Interest (1) | | Rouse Total |
| Core Adjustments |
| Core NOI / FFO | | Consolidated |
| Non-controlling Interest (1) | | Rouse Total |
| Core Adjustments |
| Core NOI / FFO |
| | | | | | | | | | | | | | | | | | | | | |
| Revenues: |
| | | | | | | | | | | | | | | | | | | |
Minimum rents (2) |
| $ | 56,265 |
|
| $ | (1,050 | ) | | $ | 55,215 |
|
| $ | (759 | ) |
| $ | 54,456 |
| | $ | 51,534 |
|
| $ | (1,025 | ) | | $ | 50,509 |
|
| $ | 2,499 |
|
| $ | 53,008 |
|
| Tenant recoveries |
| 20,843 |
|
| (325 | ) | | 20,518 |
|
| — |
|
| 20,518 |
| | 19,949 |
|
| (327 | ) | | 19,622 |
|
| — |
|
| 19,622 |
|
| Overage rents |
| 1,744 |
|
| (67 | ) | | 1,677 |
|
| — |
|
| 1,677 |
| | 1,590 |
|
| (49 | ) | | 1,541 |
|
| — |
|
| 1,541 |
|
| Other |
| 1,780 |
|
| (24 | ) | | 1,756 |
|
| — |
|
| 1,756 |
| | 1,488 |
|
| (9 | ) | | 1,479 |
|
| — |
|
| 1,479 |
|
| Total revenues |
| 80,632 |
|
| (1,466 | ) | | 79,166 |
|
| (759 | ) |
| 78,407 |
|
| 74,561 |
|
| (1,410 | ) | | 73,151 |
|
| 2,499 |
|
| 75,650 |
|
| Operating expenses: |
| | | | |
| | | | | | | | | |
| | | | |
Property operating costs (3) |
| 16,959 |
|
| (229 | ) | | 16,730 |
|
| (39 | ) |
| 16,691 |
| | 16,875 |
|
| (277 | ) | | 16,598 |
|
| (39 | ) |
| 16,559 |
|
| Real estate taxes |
| 7,032 |
|
| (152 | ) | | 6,880 |
|
| — |
|
| 6,880 |
| | 7,474 |
|
| (177 | ) | | 7,297 |
|
| — |
|
| 7,297 |
|
| Property maintenance costs |
| 2,899 |
|
| (24 | ) | | 2,875 |
|
| — |
|
| 2,875 |
| | 3,385 |
|
| (38 | ) | | 3,347 |
|
| — |
|
| 3,347 |
|
| Marketing |
| 421 |
|
| (7 | ) | | 414 |
|
| — |
|
| 414 |
| | 389 |
|
| (1 | ) | | 388 |
|
| — |
|
| 388 |
|
| Provision for doubtful accounts |
| 613 |
|
| (11 | ) | | 602 |
|
| — |
|
| 602 |
| | 497 |
|
| 30 |
| | 527 |
|
| — |
|
| 527 |
|
| Total operating expenses |
| 27,924 |
|
| (423 | ) | | 27,501 |
|
| (39 | ) |
| 27,462 |
| | 28,620 |
|
| (463 | ) | | 28,157 |
|
| (39 | ) |
| 28,118 |
|
| | | | | | |
| | | | | | | | | |
| | | | |
| Net operating income |
| 52,708 |
|
| (1,043 | ) | | 51,665 |
|
| (720 | ) |
| 50,945 |
| | 45,941 |
|
| (947 | ) | | 44,994 |
|
| 2,538 |
|
| 47,532 |
|
| | | | | | |
| | | | | | | | | |
| | | | |
General and administrative (4)(5) |
| 6,839 |
|
| (1 | ) | | 6,838 |
|
| (3 | ) |
| 6,835 |
| | 6,470 |
|
| — |
| | 6,470 |
|
| (5 | ) |
| 6,465 |
|
Other (6) |
| 11,361 |
|
| — |
| | 11,361 |
|
| (11,361 | ) |
| — |
| | 2,159 |
|
| — |
| | 2,159 |
|
| (2,159 | ) |
| — |
|
| Subtotal |
| 34,508 |
|
| (1,042 | ) | | 33,466 |
|
| 10,644 |
|
| 44,110 |
| | 37,312 |
|
| (947 | ) | | 36,365 |
|
| 4,702 |
|
| 41,067 |
|
| | | | | | |
| | | | | | | | | |
| | | | |
| Interest income |
| 4 |
|
| — |
| | 4 |
|
| — |
|
| 4 |
| | 13 |
|
| — |
| | 13 |
|
| — |
|
| 13 |
|
| Interest expense |
| | | | |
| | | | | | | | | |
| | | | |
| Amortization and write-off of market rate adjustments |
| 239 |
|
| — |
| | 239 |
|
| (239 | ) |
| — |
| | (50 | ) |
| — |
| | (50 | ) |
| 50 |
|
| — |
|
| Amortization and write-off of deferred financing costs |
| (901 | ) |
| — |
| | (901 | ) |
| 901 |
|
| — |
| | (899 | ) |
| — |
| | (899 | ) |
| 899 |
|
| — |
|
| Debt extinguishment costs |
| — |
|
| — |
| | — |
|
| — |
|
| — |
| | — |
|
| — |
| | — |
|
| — |
|
| — |
|
| Interest on debt |
| (17,291 | ) |
| 335 |
| | (16,956 | ) |
| — |
|
| (16,956 | ) | | (18,202 | ) |
| 357 |
| | (17,845 | ) |
| — |
|
| (17,845 | ) |
| Provision for income taxes |
| (158 | ) |
| 9 |
| | (149 | ) |
| 149 |
|
| — |
| | (236 | ) |
| — |
| | (236 | ) |
| 236 |
|
| — |
|
| Preferred distributions | | (1,750 | ) | | — |
| | (1,750 | ) | | — |
| | (1,750 | ) | | — |
| | — |
| | — |
| | — |
| | — |
|
| Funds from operations |
| $ | 14,651 |
|
| $ | (698 | ) | | $ | 13,953 |
|
| $ | 11,455 |
|
| $ | 25,408 |
| | $ | 17,938 |
|
| $ | (590 | ) | | $ | 17,348 |
|
| $ | 5,887 |
|
| $ | 23,235 |
|
Funds from operations per share - basic (7) |
|
|
| | |
|
|
|
| $ | 0.44 |
| |
|
| | |
|
|
|
| $ | 0.40 |
|
Funds from operations per share - diluted (8) |
|
|
| | |
|
|
|
| $ | 0.44 |
| |
|
| | |
|
|
|
| $ | 0.40 |
|
(1) Represents our partner's share of operations from consolidated properties.
(2) Core adjustments include the aggregate amounts for straight-line rent of $(795) and $27, above / below market lease amortization of $40 and $2,464 and tenant inducement amortization of $(4) and $8 for the three months ended March 31, 2016 and 2015, respectively.
(3) Core adjustments include above / below market ground lease amortization of $39 for each of the three months ended March 31, 2016 and 2015.
(4) General and administrative costs include $804 and $865 of non-cash stock compensation expense for the three months ended March 31, 2016 and 2015, respectively.
(5) Core adjustments include amounts for the corporate and regional office straight-line rent of $3 and $5 for the three months ended March 31, 2016 and 2015, respectively.
(6) Core adjustments for the three months ended March 31, 2016 primarily include $11.0 million of non-recurring costs related to the potential merger with Brookfield. Core adjustments for the three months ended March 31, 2015 primarily include costs related to the transition from Brookfield's IT platform on to Rouse's IT platform.
(7) Calculated using weighted average number of shares of common stock of 57,643,017 and 57,603,340 for the three months ended March 31, 2016 and 2015, respectively.
(8) Assumes 57,997,943 and 58,287,256 diluted shares of common stock for the three months ended March 31, 2016 and 2015, respectively.
|
| | |
| Q1 2016 Supplemental Package | | 7 |
Financial Schedules
Core NOI Summary
|
| | | | | | | | |
| | | Three Months Ended |
| (In thousands) | | March 31, 2016 (Unaudited) | | March 31, 2015 (Unaudited) |
| | | | | |
| Consolidated net operating income | | $ | 52,708 |
| | $ | 45,941 |
|
| Add / (less) : | | | | |
| Non-controlling interests | | (1,043 | ) | | (947 | ) |
| Core NOI adjustments | | (720 | ) | | 2,538 |
|
| Rouse core net operating income | | 50,945 |
| | 47,532 |
|
| Add / (less): | | | | |
Non same property assets (1) | | (14,303 | ) | | (10,977 | ) |
| Lease termination income and other | | (154 | ) | | (434 | ) |
| Same Property core net operating income | | $ | 36,488 |
| | $ | 36,121 |
|
| Same Property change % | | 1.0 | % | | |
(1) Represents Mt. Shasta, Fig Garden, and The Shoppes at Carlsbad which were acquired in January 2015, June 2015, and November 2015, respectively. Same Property portfolio also excludes Gateway Mall, NewPark Mall, Spring Hill Mall, Grand Traverse Mall and The Shoppes at Bel Air, which are undergoing redevelopment with significant disruption. Vista Ridge Mall is a special consideration asset, which is also excluded from our Same Property portfolio. An asset is designated as a special consideration asset when a property has a heightened probability of being conveyed to its lender absent substantive renegotiation.
|
| | |
| Q1 2016 Supplemental Package | | 8 |
Financial Schedules
Reconciliation of Non-GAAP to GAAP Financial Measures
|
| | | | | | | |
| Three Months Ended |
| (In thousands, except per share) | March 31, 2016 (Unaudited) | | March 31, 2015 (Unaudited) |
| | | |
| Reconciliation of NOI to GAAP Operating Income | | | |
| Rouse NOI: | $ | 51,665 |
| | $ | 44,994 |
|
| Non-controlling interest | 1,043 |
| | 947 |
|
| General and administrative | (6,839 | ) | | (6,470 | ) |
| Other | (11,361 | ) | | (2,159 | ) |
| Depreciation and amortization | (26,348 | ) | | (25,986 | ) |
| Provision for impairment | — |
| | (2,900 | ) |
| Operating income | $ | 8,160 |
| | $ | 8,426 |
|
| | | |
| Reconciliation of FFO to GAAP Net (loss) income allocable to common shareholders | | | |
| FFO: | $ | 13,953 |
| | $ | 17,348 |
|
| Non-controlling interest - Depreciation and amortization/Other | 563 |
| | 596 |
|
| Depreciation and amortization | (26,348 | ) | | (25,986 | ) |
| Provision for impairment | — |
| | (2,900 | ) |
| Gain on extinguishment of debt | — |
| | 22,840 |
|
| Gain on sale of real estate assets | — |
| | 32,509 |
|
| Net (loss) income allocable to common shareholders | $ | (11,832 | ) | | $ | 44,407 |
|
| | | |
| Weighted average number of shares outstanding - Basic | 57,643,017 |
| | 57,603,340 |
|
| | | | |
| Weighted average number of shares outstanding - Diluted | 57,643,017 |
| | 58,287,256 |
|
| | | | |
| Per common share data: | | | |
| Net (loss) income per share allocable to common shareholders | | | |
| Basic | $ | (0.21 | ) | | $ | 0.77 |
|
| Diluted | $ | (0.21 | ) | | $ | 0.76 |
|
|
| | |
| Q1 2016 Supplemental Package | | 9 |
Financial Schedules
Mortgages, Notes, and Loans Payable
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | Ownership % | Initial Maturity | | Extended Maturity | | | Outstanding Balance | | Balloon Payment at Maturity | | Amortization | |
| | Month | Year | | Month | Year | Rate | | | 2016 | 2017 | 2018 | 2019 | 2020 | After | Mortgage Details |
Vista Ridge Mall (1) | 100% | Apr | 2016 | | Apr | 2016 | 6.87 | % | | $ | 64,660 |
| | $ | 64,660 |
| | $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| Non-recourse/fixed |
Turtle Creek Mall (1) | 100% | Jun | 2016 | | Jun | 2016 | 6.54 |
| | 76,343 |
| | 76,079 |
| | 264 |
| — |
| — |
| — |
| — |
| — |
| Non-recourse/fixed |
NewPark Mall (2) | 100% | Sep | 2018 | | Sep | 2019 | 3.22 |
| | 125,000 |
| | 125,000 |
| | — |
| — |
| — |
| — |
| — |
| — |
| Non-recourse/fixed |
West Valley Mall (1) (2) | 100% | Sep | 2018 | | Sep | 2023 | 3.24 |
| | 59,000 |
| | 56,691 |
| | 188 |
| 1,147 |
| 974 |
| — |
| — |
| — |
| Non-recourse/fixed |
The Shoppes at Bel Air (1) (2) | 100% | Nov | 2018 | | Nov | 2019 | 3.34 |
| | 110,450 |
| | 108,800 |
| | — |
| 275 |
| 1,375 |
| — |
| — |
| — |
| Non-recourse/fixed |
The Centre at Salisbury (1) (3) | 100% | Mar | 2019 | | Mar | 2020 | 3.04 |
| | 97,500 |
| | 97,500 |
| | — |
| — |
| — |
| — |
| — |
| — |
| Partial non-recourse/floating |
The Shoppes at Gateway (2) | 100% | Jan | 2020 | | Jan | 2021 | 3.64 |
| | 75,000 |
| | 75,000 |
| | — |
| — |
| — |
| — |
| — |
| — |
| Non-recourse/fixed |
| Pierre Bossier Mall | 100% | May | 2022 | | May | 2022 | 4.94 |
| | 45,672 |
| | 39,891 |
| | 614 |
| 866 |
| 911 |
| 957 |
| 1,000 |
| 1,433 |
| Non-recourse/fixed |
| Pierre Bossier Anchor | 100% | May | 2022 | | Mau | 2022 | 4.85 |
| | 3,528 |
| | 2,894 |
| | 68 |
| 95 |
| 100 |
| 105 |
| 110 |
| 156 |
| Non-recourse/fixed |
| Southland Center (MI) | 100% | Jul | 2022 | | Jul | 2022 | 5.09 |
| | 74,486 |
| | 65,085 |
| | 964 |
| 1,363 |
| 1,435 |
| 1,511 |
| 1,580 |
| 2,548 |
| Non-recourse/fixed |
| Chesterfield Towne Center | 100% | Oct | 2022 | | Oct | 2022 | 4.75 |
| | 105,933 |
| | 92,380 |
| | 1,343 |
| 1,892 |
| 1,985 |
| 2,082 |
| 2,171 |
| 4,080 |
| Non-recourse/fixed |
| Animas Valley | 100% | Nov | 2022 | | Nov | 2022 | 4.41 |
| | 48,924 |
| | 41,844 |
| | 700 |
| 980 |
| 1,025 |
| 1,072 |
| 1,115 |
| 2,188 |
| Non-recourse/fixed |
| Lakeland Mall | 100% | Apr | 2023 | | Apr | 2023 | 4.17 |
| | 66,494 |
| | 55,951 |
| | 965 |
| 1,348 |
| 1,406 |
| 1,467 |
| 1,523 |
| 3,834 |
| Non-recourse/fixed |
| Valley Hills Mall | 100% | July | 2023 | | July | 2023 | 4.47 |
| | 65,070 |
| | 54,921 |
| | 881 |
| 1,237 |
| 1,294 |
| 1,354 |
| 1,409 |
| 3,974 |
| Non-recourse/fixed |
| Chula Vista Center | 100% | July | 2024 | | July | 2024 | 4.18 |
| | 70,000 |
| | 60,814 |
| | — |
| 467 |
| 1,175 |
| 1,225 |
| 1,270 |
| 5,049 |
| Non-recourse/fixed |
| The Mall at Barnes Crossing | 52.8% | Sep | 2024 | | Sep | 2024 | 4.29 |
| | 67,000 |
| | 58,361 |
| | — |
| 268 |
| 1,093 |
| 1,142 |
| 1,184 |
| 4,952 |
| Non-recourse/fixed |
| Bayshore Mall | 100% | Nov | 2024 | | Oct | 2024 | 3.96 |
| | 46,500 |
| | 40,185 |
| | — |
| 130 |
| 804 |
| 837 |
| 866 |
| 3,678 |
| Non-recourse/fixed |
| Mt. Shasta Mall | 100% | Mar | 2025 | | Mar | 2025 | 4.19 |
| | 31,850 |
| | 27,747 |
| | — |
| — |
| 386 |
| 540 |
| 560 |
| 2,617 |
| Non-recourse/fixed |
| Fig Garden Village | 100% | Jun | 2025 | | Jun | 2025 | 4.14 |
| | 74,200 |
| | 67,494 |
| | — |
| — |
| — |
| — |
| 606 |
| 6,100 |
| Non-recourse/fixed |
| Greenville Mall | 100% | Nov | 2025 | | Nov | 2025 | 4.46 |
| | 45,263 |
| | 36,826 |
| | 531 |
| 746 |
| 781 |
| 817 |
| 849 |
| 4,713 |
| Non-recourse/fixed |
| | | | | | | | | | | | | | | | | | | | |
| Total property level debt | | | | | | | 4.28 | % | | $ | 1,352,873 |
| | $ | 1,248,123 |
| | $ | 6,518 |
| $ | 10,814 |
| $ | 14,744 |
| $ | 13,109 |
| $ | 14,243 |
| $ | 45,322 |
| |
| | | | | | | | | | | | | | | | | | | | |
2013 Term Loan (4) | | Nov | 2018 | | Nov | 2018 | 2.79 |
| | 285,000 |
| | 285,000 |
| | — |
| — |
| — |
| — |
| — |
| — |
| Recourse/floating |
2013 Revolver (4) (5) | | Nov | 2017 | | Nov | 2017 | 2.79 |
| | 111,000 |
| | 111,000 |
| | — |
| — |
| — |
| — |
| — |
| — |
| Recourse/floating |
| | | | | | | | | | | | | | | | | | | | |
| Total corporate level debt | | | | | | | | | 396,000 |
| | 396,000 |
|
| — |
| — |
| — |
| — |
| — |
| — |
| |
Total Debt Outstanding (6) (7) | | | | | | | 3.94 | % | | $ | 1,748,873 |
| | $ | 1,644,123 |
| | $ | 6,518 |
| $ | 10,814 |
| $ | 14,744 |
| $ | 13,109 |
| $ | 14,243 |
| $ | 45,322 |
| |
| | | | | | | | | | | | | | | | | | | | |
| Market rate adjustment | | | | | | | | | (760 | ) | | | | | | | | | | |
| Unamortized deferred financing costs | | | | | | | | | (12,187 | ) | | | | | | | | | | |
| Total Mortgages, Notes & Loans Payable | | | | | | | | | $ | 1,735,926 |
| | | | | | | | | | |
| Less: Non controlling interest share of debt | | | | | | | | | | | | | | | | | | | |
| The Mall at Barnes Crossing | 47.2% | Sep | 2024 | | | | 4.29 |
| | (31,624 | ) | | | | | | | | | | |
| Company's Share of Consolidated Debt | | | | | | | 4.28 | % | | $ | 1,704,302 |
| | | | | | | | | | |
(2) The Company entered into an interest rate swap transaction which fixed the interest rate on the loan for this property.
(3) LIBOR (30 day) plus 260 basis points.
(4) LIBOR (30 day) plus 235 basis points.
(5) As of March 31, 2016 the Company had drawn $111.0 million on the Revolver.
|
| | |
| Q1 2016 Supplemental Package | | 10 |
Financial Schedules
Mortgages, Notes, and Loans Payable (continued)
(6) The following properties were included in our 2013 Senior Facility collateral pool as of March 31, 2016:
|
| | | |
| Birchwood Mall | Lansing Mall | The Shoppes at Carlsbad | Southland Mall |
| Cache Valley Mall | The Mall at Sierra Vista | Sikes Senter | Three Rivers Mall |
| Colony Square Mall | Mall St. Vincent | Silver Lake Mall | Westwood Mall |
| Grand Traverse Mall | North Plains Mall | Spring Hill Mall | White Mountain Mall |
(7) Approximately 72% or $1.26 billion of the Rouse debt had a fixed interest rate and 28% or $493.5 million of the Rouse debt had a variable interest rate.
|
| | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | 2016 | 2017 | 2018 | 2019 | 2019 | After | Total |
Balloon payment | $ | 140,739 |
| $ | 111,000 |
| $ | 575,491 |
| $ | 97,500 |
| $ | 75,000 |
| $ | 644,393 |
| $ | 1,644,123 |
|
| Amortization | 6,518 |
| 10,814 |
| 14,744 |
| 13,109 |
| 14,243 |
| 45,322 |
| 104,750 |
|
| Debt maturity and amortization | $ | 147,257 |
| $ | 121,814 |
| $ | 590,235 |
| $ | 110,609 |
| $ | 89,243 |
| $ | 689,715 |
| $ | 1,748,873 |
|
| Weighted average interest rate of expiring debt | 6.69 | % | 2.78 | % | 3.03 | % | 3.04 | % | 3.64 | % | 4.45 | % | 3.94 | % |
|
| | | | | | | | | | | | | | | | |
| (In thousands) | | Property-Level Debt | | Term Loan | | Revolver | | Total |
| Beginning balance as of January 1, 2016 | | $ | 1,362,853 |
| | $ | 285,000 |
| | $ | 59,000 |
| | $ | 1,706,853 |
|
| The Centre at Salisbury Payoff | | (115,000 | ) | | — |
| | — |
| | (115,000 | ) |
| The Centre at Salisbury Refinance | | 97,500 |
| | — |
| | — |
| | 97,500 |
|
| NewPark Mall Subsequent Funding | | 10,750 |
| | — |
| | — |
| | 10,750 |
|
| Q1 2016 Mortgage loan amortization | | (3,230 | ) | | — |
| | — |
| | (3,230 | ) |
| Drawdowns on 2013 Revolver | | — |
| | — |
| | 63,000 |
| | 63,000 |
|
| Paydowns on 2013 Revolver | | — |
| | — |
| | (11,000 | ) | | (11,000 | ) |
| Ending balance as of March 31, 2016 | | $ | 1,352,873 |
| | $ | 285,000 |
| | $ | 111,000 |
| | $ | 1,748,873 |
|
| | | | | | | | | |
| Weighted Average Balance | | $ | 1,365,381 |
| | $ | 285,000 |
| | $ | 78,758 |
| | $ | 1,729,139 |
|
|
| | |
| Q1 2016 Supplemental Package | | 11 |
Financial Schedules
Prepaid Expenses and Other Assets, Net
|
| | | | | | | |
| (In thousands) | March 31, 2016 (Unaudited) | | December 31, 2015 |
| | | | |
| Above-market tenant leases, net | $ | 36,999 |
| | $ | 40,180 |
|
| Prepaid expenses | 3,629 |
| | 4,372 |
|
| Below-market ground leases, net | 2,951 |
| | 2,990 |
|
| Deposits | 494 |
| | 424 |
|
| Other | 467 |
| | 1,068 |
|
| Total prepaid expenses and other assets, net | $ | 44,540 |
| | $ | 49,034 |
|
Accounts Payable and Accrued Expenses, Net
|
| | | | | | | |
| (In thousands) | March 31, 2016 (Unaudited) | | December 31, 2015 |
| | | | |
| Below market tenant leases, net | $ | 39,419 |
| | $ | 42,592 |
|
| Construction payable | 36,582 |
| | 47,572 |
|
| Accounts payable and accrued expenses | 9,799 |
| | 8,096 |
|
| Accrued payroll and employee liabilities | 9,367 |
| | 7,778 |
|
| Accrued real estate taxes | 8,463 |
| | 8,773 |
|
| Accrued interest | 7,378 |
| | 6,868 |
|
| Asset retirement obligation liability | 6,154 |
| | 6,085 |
|
| Derivative liability | 4,274 |
| | 677 |
|
| Deferred income | 3,880 |
| | 5,420 |
|
| Tenant and other deposits | 1,659 |
| | 1,706 |
|
| Accrued dividend | — |
| | 10,472 |
|
| Other | 1,017 |
| | 1,249 |
|
| Total accounts payable and accrued expenses, net | $ | 127,992 |
| | $ | 147,288 |
|
|
| | |
| Q1 2016 Supplemental Package | | 12 |
Portfolio Operating Metrics
Strategic Capital Redevelopment Projects:
($ in thousands)
|
| | | | | | | | | | | | | | |
| Property | | Description | | Total Project Square Feet | | Total Net Estimated Project Cost | | Cost to Date | | Estimated Stabilized Yield (1) | | Construction Start Date | | Substantial Completion Date |
| NewPark Mall Newark, CA | | 140,000 SF of new entertainment space, including AMC Theater and a two level restaurant pavilion with patio seating. | | 175,000 | | $64,232(2) | | $60,313 | | 9.5 - 10.5% | | Q3 2014 | | Q4 2015 - Q2 2016 |
| The Shoppes at Gateway Springfield, OR | | De-mall and construct new exterior facing junior boxes including Marshall's, Hobby Lobby, Petco and new outparcels. | | 288,000 | | $45,200 | | $42,104 | | 8 - 9% | | Q3 2014 | | Q4 2015 |
| Southland Center Taylor, MI | | Demolish vacant anchor and construct new 50,000 SF Cinemark Theater and restaurant collection. | | 62,000 | | $15,300 | | $10,431 | | 9 - 10% | | Q2 2015 | | Q1 2016 |
Southland Mall
Hayward, CA | | Redevelop former Kohl's anchor for new Dick's Sporting Goods, convert inline space to new Cinemark Theater, junior boxes and full service and fast casual restaurants. | | 243,000 | | $46,150 | | $11,576 | | 9 - 10% | | Q3 2015 | | Q4 2016 - Q2 2017 |
Spring Hill Mall
West Dundee, IL | | Replace former JCPenney anchor and inline space with new 37,000 SF Cinemark Theater, street scape, multi-tenant buildings and restaurant collection. | | 93,000 | | $23,966(3) | | $17,998 | | 8 - 9% | | Q3 2015 | | Q4 2016 |
(1) Estimated stabilized yield based on total net estimated project cost.
(2) After deducting the benefit of the net present value of municipal incentive currently estimated at $9.6 million.
(3) After deducting the benefit of the net present value of municipal incentive currently estimated at $6.5 million.
Total Portfolio Capital Expenditures:
|
| | | | |
| | | Three Months Ended |
| (In thousands) | | March 31, 2016 |
Ordinary capital expenditures (1) | | $ | 1,995 |
|
| Cosmetic capital expenditures | | 1,449 |
|
Tenant improvements and allowances (2) | | 7,590 |
|
| Total | | $ | 11,034 |
|
(1) Includes non-tenant recurring and non-recurring capital expenditures.
(2) Includes tenant improvements and allowances on current operating properties, excluding anchors and strategic projects.
|
| | |
| Q1 2016 Supplemental Package | | 13 |
Portfolio Operating Metrics
Key Operating Performance Indicators
As of March 31, 2016
|
| | | | | | | | | | | | |
GLA Summary (1) |
| | | Number of Properties | | Mall and Freestanding GLA | | Anchor GLA (Rouse Owned) | | Office GLA | | Anchor GLA (Tenant Owned) | | Total Area |
| | | | | (GLA in thousands) |
| Total Rouse Properties Portfolio | | 36 | | 11,815 | | 5,482 | | 34 | | 7,539 | | 24,870 |
| | | | | | | | | | | | | |
|
| | | | |
Operating Metrics (1) |
| | | | | |
| | | Tenant Sales (2) | | Occupancy Cost (3) |
| Total Operating Portfolio | | $357 | | 11.1% |
|
| | | |
| | Operating Property Portfolio |
| | In-Place Rent < 10k SF (4) |
| | March 31, 2016 | | March 31, 2015 |
| Freestanding | $21.64 | | $19.18 |
| Mall | 41.68 | | 38.49 |
| Total Operating Property portfolio | $39.01 | | $36.03 |
(1) See Property Schedule on page 15 for individual details.
(2) Trailing twelve month tenant sales for mall and freestanding stores less than 10,000 square feet for those tenants reporting.
(3) Represents mall and freestanding tenants less than 10,000 square feet utilizing comparative tenant sales.
(4) Weighted average rent of mall and freestanding stores as of March 31, 2016 and 2015. Rent is presented on a cash basis and consists of base minimum rent,
common area costs, and real estate taxes.
|
| | |
| Q1 2016 Supplemental Package | | 14 |
Portfolio Operating Metrics
Summary of Properties (1)
As of March 31, 2016 |
| | | | | | | | | | | | | | | | |
| Property Name | Location | Anchors / Major Tenants | Mall and Freestanding GLA | Office GLA | Anchor GLA (Rouse Owned) | Anchor GLA (Tenant Owned) | Total GLA | % Leased | % Occupied |
| Animas Valley Mall | Farmington, NM | Dillard's, JCPenney, Sears | 277,848 |
| — |
| 188,817 |
| — |
| 466,665 |
| 91.5 | % | 88.5 | % |
| Barnes Crossing, The Mall at | Tupelo, MS | Belk, Belk Home, JCPenney, Sears | 370,450 |
| — |
| 250,965 |
| 100,954 |
| 722,369 |
| 98.5 |
| 94.4 |
|
| Bayshore Mall | Eureka, CA | Wal Mart, Kohl's, Sears | 362,790 |
| — |
| 161,209 |
| 59,235 |
| 583,234 |
| 86.0 |
| 86.0 |
|
| Birchwood Mall | Port Huron, MI | Target, Macy's, JCPenney, Carson's, Sears | 303,098 |
| — |
| 161,216 |
| 264,918 |
| 729,232 |
| 90.6 |
| 90.6 |
|
| Cache Valley Mall | Logan, UT | Herberger's, JCPenney | 237,250 |
| — |
| 109,476 |
| — |
| 346,726 |
| 95.0 |
| 90.7 |
|
| Chesterfield Towne Center | Richmond, VA | Macy's, JCPenney, At Home, Sears | 483,639 |
| — |
| 543,572 |
| — |
| 1,027,211 |
| 93.5 |
| 89.8 |
|
| Chula Vista Center | Chula Vista, CA | Macy's, AMC, JCPenney, Burlington, Sears | 323,463 |
| — |
| 163,232 |
| 377,600 |
| 864,295 |
| 91.7 |
| 90.6 |
|
| Colony Square Mall | Zanesville, OH | Elder-Beerman, JCPenney, Dunham's Sports, Cinemark | 354,859 |
| — |
| 78,440 |
| 58,997 |
| 492,296 |
| 85.6 |
| 85.5 |
|
| Fig Garden Village | Fresno, CA | Whole Foods, CVS | 259,451 |
| 33,181 |
| — |
| — |
| 292,632 |
| 91.6 |
| 91.6 |
|
| Greenville Mall | Greenville, NC | Belk, Belk Ladies, JCPenney, Dunham's Sports | 224,806 |
| — |
| 178,510 |
| 46,051 |
| 449,367 |
| 93.8 |
| 93.8 |
|
| Lakeland Square | Lakeland, FL | Dillard's, Macy's, JCPenney, Cinemark, Sears | 361,426 |
| — |
| 186,358 |
| 347,353 |
| 895,137 |
| 91.4 |
| 85.1 |
|
| Lansing Mall | Lansing, MI | Macy's, Regal Cinema, JCPenney, Younkers | 483,659 |
| — |
| 210,900 |
| 103,000 |
| 797,559 |
| 91.2 |
| 92.0 |
|
| Mall St. Vincent | Shreveport-Bossier City, LA | Dillard's, Sears | 194,744 |
| — |
| — |
| 348,000 |
| 542,744 |
| 81.4 |
| 76.8 |
|
| Mt. Shasta | Redding, CA | Macy's, JCPenney, Sears | 188,643 |
| — |
| 130,444 |
| 202,594 |
| 521,681 |
| 98.3 |
| 89.3 |
|
| North Plains Mall | Clovis, NM | Dillard's, JCPenney, Sears, Beall's | 131,488 |
| — |
| 170,496 |
| — |
| 301,984 |
| 94.0 |
| 94.0 |
|
| Pierre Bossier Mall | Bossier City, LA | Dillard's, JCPenney, Sears, Virginia College | 264,906 |
| — |
| 59,156 |
| 288,328 |
| 612,390 |
| 85.2 |
| 85.1 |
|
| Salisbury, The Centre at | Salisbury, MD | Macy's, Dick's, Regal Cinema, Boscov's, Sears | 391,571 |
| — |
| 272,304 |
| 140,000 |
| 803,875 |
| 97.1 |
| 93.3 |
|
| Sierra Vista, The Mall at | Sierra Vista, AZ | Dillard's, Cinemark, Sears | 170,185 |
| — |
| — |
| 196,492 |
| 366,677 |
| 95.1 |
| 95.1 |
|
| Sikes Senter | Wichita Falls, TX | Dillard's, Dillard's Men's and Home, JCPenney, At Home | 294,145 |
| — |
| 374,690 |
| — |
| 668,835 |
| 86.8 |
| 81.5 |
|
| Silver Lake Mall | Coeur D' Alene, ID | Macy's, JCPenney, Sears, Sports Authority | 152,941 |
| — |
| 172,253 |
| — |
| 325,194 |
| 85.7 |
| 85.7 |
|
| Southland Center | Taylor, MI | Macy's, Cinemark, JCPenney | 372,898 |
| — |
| 215,787 |
| 292,377 |
| 881,062 |
| 97.8 |
| 95.9 |
|
| Southland Mall | Hayward, CA | Macy's, JCPenney, Sears | 573,588 |
| — |
| 347,032 |
| 292,000 |
| 1,212,620 |
| 92.7 |
| 87.5 |
|
| Three Rivers Mall | Kelso, WA | JCPenney, Macy's, Sportsman's Warehouse, Regal Cinema | 304,805 |
| — |
| 98,566 |
| — |
| 403,371 |
| 82.1 |
| 82.1 |
|
| Turtle Creek, The Mall at | Jonesboro, AR | Dillard's, Target, JCPenney | 346,078 |
| — |
| — |
| 364,199 |
| 710,277 |
| 91.0 |
| 86.9 |
|
| Valley Hills Mall | Hickory, NC | Belk, Dillard's, JCPenney, Sears | 311,365 |
| — |
| — |
| 611,516 |
| 922,881 |
| 92.2 |
| 89.8 |
|
| Washington Park Mall | Bartlesville, OK | JCPenney, Dillard's, Sears | 161,933 |
| — |
| 122,894 |
| 71,402 |
| 356,229 |
| 89.2 |
| 89.2 |
|
| West Valley Mall | Tracy, CA | Macy's, Target, Cinemark, JCPenney, Sears | 535,463 |
| — |
| 236,454 |
| 111,836 |
| 883,753 |
| 96.4 |
| 94.8 |
|
| Westwood Mall | Jackson, MI | Wal-Mart, JCPenney, Younkers | 143,730 |
| — |
| 70,500 |
| 301,188 |
| 515,418 |
| 89.0 |
| 89.0 |
|
| White Mountain Mall | Rock Springs, WY | Herberger's, JCPenney | 246,285 |
| — |
| 94,482 |
| — |
| 340,767 |
| 98.6 |
| 91.5 |
|
| Total Operating Portfolio | | 8,827,507 |
| 33,181 |
| 4,597,753 |
| 4,578,040 |
| 18,036,481 |
| 91.8 | % | 89.3 | % |
| Bel Air, The Shoppes at | Mobile, AL | Belk, Dillard's, Target, JCPenney | 399,081 |
| — |
| 325,148 |
| 440,865 |
| 1,165,094 |
| 88.4 |
| 74.8 |
|
| Carlsbad, The Shoppes at | Carlsbad, CA | Macy's, Macy's Men & Home, JCPenney, Regal Cinema, 24 Hour Fitness, Sears | 518,979 |
| | — |
| 570,051 |
| 1,089,030 |
| 82.2 |
| 80.7 |
|
| Gateway Mall | Springfield, OR | Kohl's, Sears, Target, Cabella's, Walmart Neighborhood Grocery, Cinemark | 479,604 |
| — |
| 218,055 |
| 113,613 |
| 811,272 |
| 95.1 |
| 88.1 |
|
| Grand Traverse Mall | Traverse City, MI | Macy's, Target, JCPenney | 316,000 |
| — |
| — |
| 283,349 |
| 599,349 |
| 97.1 |
| 77.3 |
|
| Newpark Mall | Newark, CA | Macys, JCPenney, Burlington Coat, AMC, Sears | 485,784 |
| — |
| 207,372 |
| 335,870 |
| 1,029,026 |
| 90.5 |
| 70.4 |
|
| Spring Hill Mall | West Dundee, IL | Kohl's, Carson Pirie Scott, Macy's, Sears | 397,143 |
| — |
| 134,148 |
| 547,432 |
| 1,078,723 |
| 90.5 |
| 84.0 |
|
| Vista Ridge Mall | Lewisville, TX | Dillard's, JCPenney, Macy's, Cinemark, Sears | 390,648 |
| — |
| — |
| 670,210 |
| 1,060,858 |
| 79.9 |
| 79.4 |
|
| Redevelopment and special consideration assets | | 2,987,239 |
| — |
| 884,723 |
| 2,961,390 |
| 6,833,352 |
| 88.8 | % | 79.4 | % |
| Total Rouse Portfolio | | | 11,814,746 |
| 33,181 |
| 5,482,476 |
| 7,539,430 |
| 24,869,833 |
| 91.1 | % | 86.9 | % |
(1) All properties are 100% owned by Rouse Properties Inc., and subsidiaries with the exception of The Mall at Barnes Crossing of which Rouse owns a 52.8% interest.
|
| | |
| Q1 2016 Supplemental Package | | 15 |
Portfolio Operating Metrics
Lease Expiration Schedule (1)
As of March 31, 2016
|
| | | | | | | | | | | | |
| Year | | Number of Expiring Leases | | Expiring GLA | | Expiring Rates ($ psf) (2) | | Percent of Total Gross Rent |
Specialty Leasing (3) | | 472 | | 1,139,115 |
| | $ | 12.96 |
| | |
| Permanent Leasing | | | | | | | | |
| 2015 and Prior | | 13 | | 25,648 |
| | 76.54 |
| | 0.7 | % |
| 2016 | | 233 | | 653,255 |
| | 35.03 |
| | 7.9 | % |
| 2017 | | 432 | | 1,436,715 |
| | 33.49 |
| | 16.6 | % |
| 2018 | | 266 | | 1,096,605 |
| | 34.05 |
| | 12.9 | % |
| 2019 | | 169 | | 758,502 |
| | 32.95 |
| | 8.6 | % |
| 2020 | | 142 | | 597,256 |
| | 28.98 |
| | 6.0 | % |
| 2021 | | 126 | | 758,070 |
| | 25.24 |
| | 6.6 | % |
| 2022 | | 88 | | 394,241 |
| | 34.01 |
| | 4.6 | % |
| 2023 | | 87 | | 439,510 |
| | 32.74 |
| | 5.0 | % |
| 2024 | | 95 | | 664,630 |
| | 22.73 |
| | 5.2 | % |
| 2025 | | 117 | | 851,783 |
| | 27.09 |
| | 8.0 | % |
| 2026 | | 117 | | 816,426 |
| | 27.80 |
| | 7.8 | % |
| 2027 and thereafter | | 63 | | 1,127,116 |
| | 26.05 |
| | 10.1 | % |
| Total Permanent Leasing | | 1,948 | | 9,619,757 |
| | $ | 30.09 |
| | 100 | % |
| Total Leasing | | 2,420 | | 10,758,872 |
| | | | |
(1) Represents contractual obligations for space in regional malls and excludes traditional anchor stores.
(2) Excluded from the Expiring Rate are freestanding spaces, kiosks and leases paying percent rent in lieu of base minimum rent.
(3) Includes Specialty Leasing license agreements with terms in excess of 12 months.
|
| | |
| Q1 2016 Supplemental Package | | 16 |
Portfolio Operating Metrics
Top Ten Tenants
As of March 31, 2016
|
| | | | | | | | | | |
| | | | | | | | | Locations |
| Retail Portfolio | | Primary DBA | | Percent of Minimum Rent, Tenant Recoveries and Other (1) | | Square Footage (000's) | | Total | | Rouse Owned |
| L Brands, Inc. | | Bath & Body Works, Victoria's Secret, White Barn Candle Co. | | 4.5% | | 273 | | 65 | | 65 |
| Foot Locker, Inc. | | Champs Sports, Footaction USA, Foot Locker, Kids Foot Locker, Lady Foot Locker | | 3.4 | | 249 | | 55 | | 55 |
| Signet Jewelers, Ltd | | Belden Jewelers, JB Robinson Jewelers, Kay Jewelers, Osterman Jewelers, Weisfields Jewelers, Zales, Gordon's, Piercing Pagoda | | 3.3 | | 91 | | 69 | | 69 |
| JCPenney Company, Inc. | | JCPenney | | 2.6 | | 2,798 | | 29 | | 18(2) |
| Cinemark USA, Inc. | | Cinemark Movies | | 2.0 | | 356 | | 8 | | 8 |
| Genesco Inc. | | Hat Shack, Hat World, Journey's, Lids, Lids Locker Room, Underground Station | | 1.8 | | 86 | | 59 | | 59 |
| Macy's Inc. | | Macy's | | 1.8 | | 2,360 | | 18 | | 5 |
| Sears Holdings Corporation | | Sears | | 1.8 | | 2,980 | | 23 | | 11 |
| American Eagle Outfitters, Inc. | | Aerie, American Eagle Outfitters | | 1.7 | | 104 | | 18 | | 18 |
| Ascena Retail Group, Inc. | | Ann Taylor, Loft, Dressbarn, Justice, Limited Too, Maurices, Lane Bryant | | 1.7 | | 209 | | 41 | | 41 |
| Totals | | | | 24.6% | | 9,506 | | 385 | | 349 |
(1) Represents the trailing twelve months of minimum rent, tenant recoveries and other.
(2) Does not include three locations in which Rouse owns the land which is ground leased to JCPenney.
|
| | |
| Q1 2016 Supplemental Package | | 17 |
Portfolio Operating Metrics
Leasing Activity
As of March 31, 2016
|
| | | | | | | | | | | |
| | TOTAL LEASING ACTIVITY (1) | | |
| New Leases | Number of Leases | Square Feet | Term | | Initial Inline Rent PSF (2) | | Initial Freestanding Rent PSF | | Average Inline Rent PSF (3) | | Average Freestanding Rent PSF |
| Under 10,000 sq. ft. | 52 | 167,620 | 8.7 | | $35.57 | | $41.66 | | $39.10 | | $45.47 |
| Over 10,000 sq. ft. | 6 | 135,344 | 11.7 | | 16.61 | | — | | 18.04 | | — |
| Total New Leases | 58 | 302,964 | 10.0 | | 26.73 | | 41.66 | | 29.28 | | 45.47 |
| | | | | | | | | | | | |
| Renewal Leases | | | | | | | | | | | |
| Under 10,000 sq. ft. | 55 | 172,511 | 2.8 | | $33.84 | | $24.33 | | $34.81 | | $25.91 |
| Over 10,000 sq. ft. | 2 | 21,003 | 7.4 | | 18.45 | | — | | 19.34 | | — |
| Total Renewal Leases | 57 | 193,514 | 3.3 | | 32.07 | | 24.33 | | 33.04 | | 25.91 |
| | | | | | | | | | | | |
| Sub-Total | 115 | 496,478 | 7.4 | | 28.80 | | 33.89 | | 30.73 | | 36.70 |
| | | | | | | | | | | | |
| Percent in Lieu | 30 | 107,365 | n.a. | | n.a. | | n.a | | n.a. | | n.a |
| | | | | | | | | | | | |
| Total Q1 2016 | 145 | 603,843 | 7.4 | | $28.80 | | $33.89 | | $30.73 | | $36.70 |
|
| | | | | | | | | | | | | |
| SUITE TO SUITE - NEW & RENEWAL LEASE SPREAD (4) |
| | | | | | | | | | Initial Rent Spread | | Average Rent Spread |
| | Number of Leases | Square Feet | Term | Initial Rent PSF (2) | Average Rent PSF (3) | | Expiring Rent PSF (5) | | $ | % | | $ | % |
| Three Months Ended March 31, 2016 | 75 | 235,483 | 5.9 | $35.80 | $38.21 | | $30.06 | | $5.74 | 19.1% | | $8.15 | 27.1% |
(1) Excluding anchors and specialty leasing.
(2) Represents initial rent at time of rent commencement consisting of base minimum rent, common area costs, and real estate taxes.
(3) Represents average rent over the lease term consisting of base minimum rent, common area costs, and real estate taxes.
(4) Excluding anchors, percent in lieu, and specialty leasing.
(5) Represents expiring rent at end of lease consisting of base minimum rent, common area costs, and real estate taxes.
|
| | |
| Q1 2016 Supplemental Package | | 18 |
Glossary of Terms
|
| |
| Anchor/Traditional Anchor | Department stores and discount department stores in traditional anchor spaces whose merchandise appeals to a broad range of shoppers or spaces which are greater than 70,000 square feet. |
| Average Rent | Represents average rent over the term consisting of base minimum rent, common area costs, and real estate taxes. |
| Average Rent Spread | Dollar spread between Average Rent and Expiring Rent. |
| Expiring Rent | Represents rent at the end of the lease consisting of base minimum rent, common area costs, and real estate taxes. |
| Freestanding | Outparcel retail locations (locations that are not attached to the primary complex of buildings that comprise a shopping center). Excludes anchor stores. |
| Gross Leasable Area (GLA) | Total gross leasable space at 100%. |
| In-Place Rent | Weighted average rental rate of mall stores as of a point in time. Rent is presented on a cash basis and consists of base minimum rent, common area costs, and real estate taxes. |
| Initial Rent | Represents initial rent at the beginning of the term consisting of base minimum rent, common area costs, and real estate taxes. |
| Initial Rent Spread | Dollar spread between Initial Rent and Expiring Rent. |
| Leased Area | Leased area represents the sum of: (1) tenant occupied space lease and (2) all leases signed for currently vacant space and (3) tenants no longer occupying space, but still paying rent for all inline mall shop and freestanding retail locations, excluding anchors (Leased Area). Leased percentage is the Leased Area over the mall and Freestanding Area. |
| Mall | All mall shop locations excluding anchor and freestanding stores. |
| Occupancy Cost | Ratio of total tenant charges (rent and reimbursement of common area charges, real estate tax and insurance) to comparative sales for tenants less than 10,000 square feet. |
| Occupied Area | Occupied area represents the sum of: (1) tenant occupied space under lease and (2) tenants no longer occupying space, but still paying rent for all inline mall shop and freestanding retail locations, excluding anchors (Occupied Area). Occupied percentage is the Occupied Area over the Mall and Freestanding Area. |
| Operating Portfolio | Portfolio excluding properties undergoing substantial redevelopment and special consideration properties. |
| Specialty Leasing | Temporary tenants typically on license agreements with terms in excess of twelve months and are generally cancellable by the Company with notice ranging from 30-90 days. |
| Tenant Sales | Rolling twelve month sales for mall and freestanding stores less than 10,000 square feet for those tenants reporting. |
|
| | |
| Q1 2016 Supplemental Package | | 19 |
