Seritage Growth Properties (SRG) 8-K Seritage Growth Properties Reports Fourth Quarter and Full Year 2018 Operating Results

Exhibit 99.2

 

SUPPLEMENTAL INFORMATION       ||      PERIOD ENDED DECEMBER 31,2018

 

INTRODUCTION

Background

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

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

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

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

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

Sears Holdings Bankruptcy and Holdco Master Lease

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

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

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

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

General Information

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

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TABLE OF CONTENTS

SERITAGE GROWTH PROPERTIES

SUPPLEMENTAL INFORMATION

PERIOD ENDED DECEMBER 31, 2018

	Page
COMPANY INFORMATION	1
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheets	2
Consolidated Statements of Operations	3
SUPPLEMENTAL FINANCIAL INFORMATION
Market Capitalization and Financial Ratios	4
Total Net Operating Income	5
EBITDAre and Company EBITDA	6
Funds from Operations and Company FFO	7
Additional Information	8
PROPERTY INFORMATION
Portfolio Overview	10
Leasing Activity	13
Redevelopment Projects	14
Termination Properties	20
Joint Venture Properties	22
Wholly Owned Properties	24
DISCLOSURES
Non-GAAP Measures	30
Forward-Looking Statements	31

ii

COMPANY INFORMATION

Company Contacts
Benjamin Schall	President and Chief Executive Officer	Kenneth Lombard	EVP and Chief Operating Officer
Brian Dickman	EVP and Chief Financial Officer	Matthew Fernand	EVP and General Counsel
James Bry	EVP, Development and Construction	Mary Rottler	EVP, Leasing and Operations
ir@seritage.com	Investor Relations and Communications	646.277.1268

Summary Information

December 31, 2018

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

	Quarter Ended December 31,						Year Ended December 31,
Financial Results	2018			2017			2018			2017
Net income (loss) attributable to Seritage    common shareholders (page 3)	$	(56,038	)	$	(43,456	)	$	(78,375	)	$	(73,999	)
Total NOI (page 5)		34,055			39,560			143,107			174,758
FFO (page 7)		7,009			11,131			24,111			91,690
Company FFO (page 7)		(4,438	)		11,522			15,746			81,797
Net income (loss) per diluted share attributable    to Seritage common shareholders (page 3)	$	(1.57	)	$	(1.27	)	$	(2.20	)	$	(2.19	)
FFO per diluted share (page 7)		0.13			0.20			0.43			1.65
Company FFO per diluted share (page 7)		(0.08	)		0.21			0.28			1.47
Wtd. avg. diluted shares - EPS		35,589			34,094			35,560			33,804
Wtd. avg diluted shares - FFO/share		55,747			55,914			55,713			55,624
Stock trading price range	$31.17 to $47.88			$39.68 to $46.34			$31.17 to $51.53			$38.76 to $48.98
							As of			As of
Financial Ratios (page 4)							December 31, 2018			December 31, 2017
Total debt to total market capitalization								46.1	%		36.8	%
Net debt to Company EBITDA								10.3	x		6.5	x
Company EBITDA to cash interest expense								1.3	x		2.4	x
							As of			As of
Property Data (page 10)							December 31, 2018			December 31, 2017
Number of properties								232			253
Gross leasable area (total / at share)							36,299 / 33,951			39,381 / 37,270
Percentage leased (total / at share)							67.0% / 66.3%			80.8% / 80.0%
				As of December 31, 2018
							% of Total
Tenant				Annual Rent			Annual Rent			Annual Rent PSF
Sears Holdings				$	61,341			29.1	%	$	4.86
In-place diversified, non-Sears leases					66,200			31.4	%		13.13
SNO diversified, non-Sears leases					83,297			39.5	%		17.17
Total				$	210,838			100.0	%	$	9.36
				As of December 31, 2017
							% of Total
Tenant				Annual Rent			Annual Rent			Annual Rent PSF
Sears Holdings				$	102,645			47.8	%	$	4.57
In-place diversified, non-Sears leases					48,624			22.6	%		12.73
SNO diversified, non-Sears leases					63,407			29.6	%		17.94
Total				$	214,676			100.0	%	$	7.20

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CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Balance Sheet (unaudited)

December 31, 2018

(In thousands, except share and per share amounts)

	December 31, 2018			December 31, 2017
ASSETS
Investment in real estate
Land	$	696,792		$	799,971
Buildings and improvements		900,173			829,168
Accumulated depreciation		(137,947	)		(139,483	)
		1,459,018			1,489,656
Construction in progress		292,049			224,904
Net investment in real estate		1,751,067			1,714,560
Real estate held for sale		3,094			—
Investment in unconsolidated joint ventures		398,577			282,990
Cash and cash equivalents		532,857			241,569
Restricted cash		—			175,665
Tenant and other receivables, net		36,926			30,787
Lease intangible assets, net		123,656			310,098
Prepaid expenses, deferred expenses and other assets, net		29,899			20,148
Total assets	$	2,876,076		$	2,775,817
LIABILITIES AND EQUITY
Liabilities
Term loan facility, net	$	1,598,053		$	—
Mortgage loans payable, net		—			1,202,314
Unsecured term loan, net		—			143,210
Accounts payable, accrued expenses and other liabilities		127,565			109,433
Total liabilities		1,725,618			1,454,957
Commitments and contingencies
Shareholders' Equity
Class A common shares $0.01 par value; 100,000,000 shares authorized;    35,667,521 and 32,415,734 shares issued and outstanding    as of December 31, 2018 and December 31, 2017, respectively		357			324
Class B common shares $0.01 par value; 5,000,000 shares authorized;    1,322,365 and 1,328,866 shares issued and outstanding    as of December 31, 2018 and December 31, 2017, respectively		13			13
Class C common shares $0.01 par value; 50,000,000 shares authorized;    nil and 3,151,131 shares issued and outstanding    as of December 31, 2018 and December 31, 2017, respectively		—			31
Series A preferred shares $0.01 par value; 10,000,000 shares authorized;     2,800,000 shares issued and outstanding as of December 31, 2018 and     December 31, 2017; liquidation preference of $70,000		28			28
Additional paid-in capital		1,124,504			1,116,060
Accumulated deficit		(344,132	)		(229,760	)
Total shareholders' equity		780,770			886,696
Non-controlling interests		369,688			434,164
Total equity		1,150,458			1,320,860
Total liabilities and equity	$	2,876,076		$	2,775,817

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CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Operations (unaudited)

December 31, 2018

(In thousands, except per share amounts)

	Quarter Ended December 31,						Year Ended December 31,
	2018			2017			2018			2017
REVENUE
Rental income	$	41,985		$	38,966		$	156,055		$	178,492
Tenant reimbursements		12,962			14,712			57,503			62,525
Management and other fee income		167			-			1,196			—
Total revenue		55,114			53,678			214,754			241,017
EXPENSES
Property operating		8,583			5,715			28,705			19,700
Real estate taxes		9,649			9,946			42,446			45,653
Depreciation and amortization		92,627			91,878			226,675			262,171
General and administrative		9,980			11,263			34,788			27,902
Provision for doubtful accounts		—			39			257			158
Total expenses		120,839			118,841			332,871			355,584
Gain on sale of real estate		2,746			(1,571	)		96,165			11,447
Gain on sale of interests in unconsolidated    joint ventures		—			16,573			—			60,302
Equity in loss of unconsolidated    joint ventures		(3,442	)		(3,562	)		(10,448	)		(7,788	)
Interest and other income		5,588			405			7,886			877
Interest expense		(25,016	)		(17,040	)		(90,020	)		(70,112	)
Change in fair value of interest rate cap		-			(15	)		(23	)		(701	)
Loss before income taxes		(85,849	)		(70,373	)		(114,557	)		(120,542	)
Provision for income taxes		116			(5	)		(321	)		(271	)
Net loss		(85,733	)		(70,378	)		(114,878	)		(120,813	)
Net loss attributable to    non-controlling interests		30,920			27,167			41,406			47,059
Net loss attributable to Seritage	$	(54,813	)	$	(43,211	)	$	(73,472	)	$	(73,754	)
Preferred dividends		(1,225	)		(245	)		(4,903	)		(245	)
Net loss attributable to Seritage common    shareholders	$	(56,038	)	$	(43,456	)	$	(78,375	)	$	(73,999	)
Net loss per share attributable to Seritage    Class A and Class C common shareholders - Basic	$	(1.57	)	$	(1.27	)	$	(2.20	)	$	(2.19	)
Net loss per share attributable to Seritage    Class A and Class C common shareholders - Diluted	$	(1.57	)	$	(1.27	)	$	(2.20	)	$	(2.19	)
Weighted average Class A and Class C common    shares outstanding - Basic		35,589			34,094			35,560			33,804
Weighted average Class A and Class C common    shares outstanding - Diluted		35,589			34,094			35,560			33,804

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SUPPLEMENTAL FINANCIAL INFORMATION

Market Capitalization and Financial Ratios

December 31, 2018

(In thousands, except per share and ratio amounts)

	As of			As of
Equity Market Capitalization	December 31, 2018			December 31, 2017
Class A common shares outstanding		35,668			32,416
Class C common shares outstanding		—			3,151
OP units outstanding		20,119			20,218
Total shares & units outstanding		55,787			55,785
Share Price	$	32.33		$	40.46
Equity market capitalization	$	1,803,594		$	2,257,061
Total Market Capitalization
Equity market capitalization	$	1,803,594		$	2,257,061
Preferred equity		70,000			70,000
Total debt		1,600,000			1,355,562
Total market capitalization	$	3,473,594		$	3,682,623
Financial Ratios
Total debt to total market capitalization		46.1	%		36.8	%
Total debt	$	1,600,000		$	1,355,562
Cash and cash equivalents		(532,857	)		(241,569	)
Restricted cash		—			(175,665	)
Net Debt	$	1,067,143		$	938,328
Net debt to Company EBITDA (1)		10.3	x		6.5	x
Gross real estate investments	$	2,156,295		$	2,397,731
Investment in unconsolidated joint ventures		398,577			282,990
Total real estate investments	$	2,554,872		$	2,680,721
Net debt to total real estate investments		41.8	%		35.0	%
Interest expense (net of amounts capitalized) (1)	$	90,020		$	70,112
Amortization of deferred financing costs (1)		(10,323	)		(8,719	)
Cash interest expense (net of amounts capitalized) (1)	$	79,697		$	61,393
Company EBITDA to cash interest expense (net of amounts capitalized) (1)		1.3	x		2.4	x

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

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SUPPLEMENTAL FINANCIAL INFORMATION

Total Net Operating Income

December 31, 2018

(In thousands)

	Quarter Ended December 31,						Year Ended December 31,
NOI and Total NOI	2018			2017			2018			2017
Net loss	$	(85,733	)	$	(70,378	)	$	(114,878	)	$	(120,813	)
Termination fee income		(11,549	)		(1,954	)		(18,711	)		(19,314	)
Management and other fee income		(167	)		—			(1,196	)		—
Depreciation and amortization		92,627			91,878			226,675			262,171
General and administrative expenses		9,980			11,263			34,788			27,902
Equity in loss of unconsolidated    joint ventures		3,442			3,562			10,448			7,788
Gain on sale of interests in unconsolidated    joint ventures		—			(16,573	)		—			(60,302	)
Gain on sale of real estate		(2,746	)		1,571			(96,165	)		(11,447	)
Interest and other income		(5,588	)		(405	)	��	(7,886	)		(877	)
Interest expense		25,016			17,040			90,020			70,112
Change in fair value of interest rate cap		-			15			23			701
Provision for income taxes		(116	)		5			321			271
NOI	$	25,166		$	36,024		$	123,439		$	156,192
NOI of unconsolidated joint ventures		5,036			5,219			19,138			23,547
Straight-line rent adjustment (1)		4,459			(1,522	)		2,170			(3,918	)
Above/below market rental income/expense (1)		(606	)		(161	)		(1,640	)		(1,063	)
Total NOI	$	34,055		$	39,560		$	143,107		$	174,758

	As of December 31,
Annualized Total NOI	2018			2017
Total NOI (per above)	$	34,055		$	39,560
Period adjustments (2)		163			(698	)
Adjusted Total NOI		34,218			38,862
Annualize		x 4			x 4
Adjusted Total NOI annualized		136,872			155,448
Plus: estimated annual Total NOI from SNO leases		80,223			62,376
Less: estimated annual Total NOI from associated    space to be recaptured from Sears		(4,354	)		(4,994	)
Annualized Total NOI	$	212,741		$	212,830

(1) Includes adjustments for unconsolidated joint ventures.

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

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SUPPLEMENTAL FINANCIAL INFORMATION

EBITDAre and Company EBITDA

December 31, 2018

(In thousands)

	Quarter Ended December 31,						Year Ended December 31,
EBITDAre and Company EBITDA	2018			2017			2018			2017
Net loss	$	(85,733	)	$	(70,378	)	$	(114,878	)	$	(120,813	)
Interest expense		25,016			17,040			90,020			70,112
Provision for income and other taxes		(116	)		5			321			271
Depreciation and amortization		92,627			91,878			226,675			262,171
Depreciation and amortization (unconsolidated    joint ventures)		4,860			5,371			15,840			23,954
Gain on sale of interests in unconsolidated    joint ventures		—			(16,573	)		—			(60,302	)
Gain on sale of real estate		(2,746	)		1,571			(96,165	)		(11,447	)
EBITDAre	$	33,908		$	28,914		$	121,813		$	163,946
Termination fee income		(11,549	)		(1,954	)		(18,711	)		(19,314	)
Change in fair value of interest rate cap		—			15			23			701
Company EBITDA	$	22,359		$	26,975		$	103,125		$	145,333

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SUPPLEMENTAL FINANCIAL INFORMATION

Funds from Operations and Company FFO

December 31, 2018

(In thousands, except per share amounts)

	Quarter Ended December 31,						Year Ended December 31,
FFO and Company FFO	2018			2017			2018			2017
Net loss	$	(85,733	)	$	(70,378	)	$	(114,878	)	$	(120,813	)
Real estate depreciation and amortization    (consolidated properties)		91,853			91,385			224,217			260,543
Real estate depreciation and amortization    (unconsolidated joint ventures)		4,860			5,371			15,840			23,954
Gain on sale of interests in unconsolidated    joint ventures		—			(16,573	)		—			(60,302	)
Gain on sale of real estate		(2,746	)		1,571			(96,165	)		(11,447	)
Dividends on preferred shares		(1,225	)		(245	)		(4,903	)		(245	)
FFO attributable to common shareholders    and unitholders	$	7,009		$	11,131		$	24,111		$	91,690
Termination fee income		(11,549	)		(1,954	)		(18,711	)		(19,314	)
Change in fair value of interest rate cap		-			15			23			701
Amortization of deferred financing costs		102			2,330			10,323			8,720
Company FFO attributable to common    shareholders and unitholders	$	(4,438	)	$	11,522		$	15,746		$	81,797
FFO per diluted common share and unit	$	0.13		$	0.20		$	0.43		$	1.65
Company FFO per diluted common share and unit	$	(0.08	)	$	0.21		$	0.28		$	1.47
Weighted Average Common Shares and Units Outstanding
Weighted average common shares outstanding		35,589			34,094			35,560			33,804
Weighted average OP units outstanding		20,158			21,820			20,153			21,820
Weighted average common shares and    units outstanding		55,747			55,914			55,713			55,624

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SUPPLEMENTAL FINANCIAL INFORMATION

Additional Information

December 31, 2018

(In thousands)

	As of		As of
Debt Summary	December 31, 2018		December 31, 2017
Term Loan Facility (drawn / undrawn)	$1,600,000 / 400,000		$	—
Interest rate / undrawn rate	7.00% / 1.00%			—
Maturity	July 2023			—
Mortgage notes payable	$	—	$	1,210,562
Interest rate		—	LIBOR + 470
Maturity		—	July 2019
Unsecured Term Loan	$	—	$	145,000
Interest rate		—		6.75	%
Maturity		—	December 2018
Restricted Cash
Reserve for redevelopment projects / capital expenditures	$	—	$	137,996
Reserve for property operating expenses		—		21,735
Reserve for environmental remediation		—		10,751
Other, including prepaid rental income		—		2,679
Reserve for deferred maintenance		—		2,504
Total restricted cash	$	—	$	175,665
Prepaid Expenses, Deferred Expenses and Other Assets
Deferred expenses	$	9,621	$	4,813
Other assets		5,411		2,493
FF&E		5,299		6,290
Other prepaid expenses		3,605		1,445
Prepaid insurance		3,283		2,352
Prepaid real estate taxes		2,680		2,732
Interest rate cap		—		23
Total prepaid expenses, deferred expenses and other assets	$	29,899	$	20,148
Accounts Payable, Accrued Expenses and Other Liabilities
Accrued development expenditures	$	26,180	$	21,449
Accounts payable and accrued expenses		22,536		9,588
Dividends and distributions payable		15,758		14,559
Accrued real estate taxes		14,108		17,091
Below-market leases		12,281		14,476
Unearned tenant reimbursements		10,975		10,522
Prepaid rental income		9,550		4,156
Environmental reserve		9,477		11,322
Accrued interest		4,978		3,689
Deferred maintenance		1,722		2,581
Total accounts payable, accrued expenses and other liabilities	$	127,565	$	109,433

- 8 -

SUPPLEMENTAL FINANCIAL INFORMATION

Additional Information (cont’d)

December 31, 2018

(In thousands, except per share amounts)

	Quarter Ended December 31,						Year Ended December 31,
Select Non-Cash Items	2018			2017			2018			2017
Straight-line rental income
Wholly-owned	$	(4,575	)	$	1,355		$	(2,825	)	$	3,719
Joint ventures		116			167			655			199
Total	$	(4,459	)	$	1,522		$	(2,170	)	$	3,918
Net amortization of above/below market    rental income/expense
Wholly-owned	$	178		$	139		$	768		$	720
Joint ventures		428			22			872			343
Total	$	606		$	161		$	1,640		$	1,063
Amortization of deferred financing costs	$	(101	)	$	(2,329	)	$	(10,322	)	$	(8,719	)
Stock-based compensation expense		(1,883	)		(5,851	)		(7,472	)		(7,018	)
Dividends
Dividends per Class A and Class C    common share	$	0.25		$	0.25		$	1.00		$	1.00
Declaration date	Oct 23, 2018			Oct 24, 2017
Record date	Dec 31, 2018			Dec 29, 2017
Payment date	Jan 10, 2019			Jan 11, 2018

- 9 -

PROPERTY INFORMATION

Portfolio Overview

December 31, 2018

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

Portfolio Summary

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

	Wholly Owned			Unconsolidated
	Portfolio			Joint Ventures			Total
Number of properties		206			26			232
Total GLA		31,602			4,697			36,299
At share		31,602			2,349			33,951
Leased GLA		20,720			3,590			24,310
At share		20,720			1,794			22,514
Percentage leased		65.6	%		76.4	%		67.0	%
At share		65.6	%		76.4	%		66.3	%

Property Type

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

	Number of		Leased		Annual		Rent
Property Type (1)	Properties		GLA		Rent		PSF		Leased
Mall		118		12,019	$	117,094	$	9.74		64.8	%
Shopping Center		114		10,495		93,743		8.93		68.2	%
Total		232		22,514	$	210,837	$	9.36		66.3	%

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

Tenant Overview

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

	Number of		Leased		% of Total			Annual		% of Total			Annual
Tenant	Leases		GLA		Leased GLA			Rent		Annual Rent			Rent PSF
Sears Holdings (1)(2)		105		12,619		56.0	%	$	61,341		29.1	%	$	4.86
In-place diversified, non-Sears leases (2)		236		5,043		22.4	%		66,200		31.4	%		13.13
SNO diversified, non-Sears leases (2)		170		4,852		21.6	%		83,297		39.5	%		17.17
Sub-total diversified, non-Sears leases		406		9,895		44.0	%		149,497		70.9	%		15.11
Total		511		22,514		100.0	%	$	210,838		100.0	%	$	9.36

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

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

- 10 -

PROPERTY INFORMATION

Portfolio Overview (cont’d)

December 31, 2018

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

Top Tenants

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

(dollars in thousands)
Tenant	Number of Leases		Annual Rent		% of Total AnnualRent			Concepts/Brands
Sears Holdings (1)(2)		105	$	61,341		29.1	%	Sears, Sears Auto Center, Kmart
Dave & Busters		10		8,383		4.0	%
Round One Entertainment		8		7,759		3.7	%
At Home		11		6,592		3.1	%
24 Hour Fitness		7		6,405		3.0	%
Burlington Stores		10		6,195		2.9	%
Dick's Sporting Goods		7		5,843		2.8	%
Ross Dress For Less		15		5,512		2.6	%	Ross Dress for Less, dd's Discounts
Cinemark		4		4,899		2.3	%
Equinox Fitness		18		4,760		2.3	%	Equinox, Blink Fitness
Nordstrom Rack		6		4,385		2.1	%
AMC		3		4,202		2.0	%
Primark		3		3,925		1.9	%
Floor & Decor		3		3,082		1.5	%
Hobby Lobby		6		3,038		1.4	%
Bed Bath & Beyond		6		2,491		1.2	%	Bed Bath & Beyond, buybuyBaby, Cost Plus World Market, Christmas Tree Shops andThat!
TJX		8		2,289		1.1	%	TJ Maxx, Marshalls, HomeGoods, HomeSense, Sierra Trading Post
PetSmart		4		2,012		1.0	%

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

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

- 11 -

PROPERTY INFORMATION

Portfolio Overview (cont’d)

December 31, 2018

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

Geographic Summary

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

(in thousands except property count and PSF data)
State	Number of Properties		Annual Rent		% of Total Annual Rent			Rent PSF
California		39	$	40,713		19.3	%	$	8.38
Florida		26		29,933		14.2	%		11.17
Texas		15		12,889		6.1	%		7.52
New York		11		12,183		5.8	%		16.53
Illinois		10		12,133		5.8	%		11.00
New Jersey		5		8,802		4.2	%		15.55
Pennsylvania		7		7,857		3.7	%		11.04
Puerto Rico		6		7,085		3.4	%		7.85
Arizona		11		5,797		2.7	%		5.84
Virginia		5		5,301		2.5	%		9.73
Total Top 10		135	$	142,693		67.7	%	$	9.63
Other (1)		97		68,145		32.3	%		8.85
Total		232	$	210,838		100.0	%	$	9.36

(1) Includes 39 states

- 12 -

PROPERTY INFORMATION

Leasing Activity

December 31, 2018

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

Signed Leases

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

(in thousands except number of leases and PSF data)
	Total								Release of Sears Holdings Space
			Leased		Annual		Annual				Leased		Annual		Annual		Releasing
Period	Leases		GLA		Rent		Rent PSF		Leases		GLA		Rent		Rent PSF		Multiple
2015		9		154	$	4,650	$	30.28		6		130	$	3,820	$	29.41		4.4	x
Q1 2016		7		214		6,990		32.60		7		214		6,990		32.60		5.7	x
Q2 2016		15		422		7,240		17.15		13		363		6,440		17.75		4.7	x
Q3 2016		14		543		7,470		13.74		12		456		6,250		13.70		4.0	x
Q4 2016		29		891		14,900		16.72		27		849		13,930		16.41		4.1	x
2016		65		2,070		36,600		17.68		59		1,882		33,610		17.86		4.5	x
Q1 2017		22		535		8,780		16.41		21		530		8,660		16.34		4.0	x
Q2 2017		28		598		11,340		18.95		26		592		11,240		18.99		3.7	x
Q3 2017		21		601		9,770		16.25		18		486		8,730		17.97		4.6	x
Q4 2017		23		872		14,827		17.00		21		868		14,669		16.90		3.8	x
2017		94		2,606		44,717		17.16		86		2,476		43,299		17.49		4.0	x
Q1 2018		20		391		7,915		20.24		19		389		7,891		20.29		4.1	x
Q2 2018		42		714		10,709		15.00		42		714		10,709		15.00		3.7	x
Q3 2018		22		546		7,487		13.71		18		529		7,012		13.26		3.8	x
Q4 2018		30		664		13,930		20.98		29		659		13,749		20.86		4.0	x
2018		114		2,315		40,041		17.30		108		2,291		39,361		17.18		3.9	x
Total Retail		282		7,145	$	126,008	$	17.64		259		6,779	$	120,090	$	17.72		4.1	x
Other (1)		5		740		5,156
Total		287		7,885	$	131,164

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

SNO Lease Summary

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

(in thousands except number of leases and PSF data)							Total
	Number of						Annual			Annual
	SNO Leases			GLA			Rent			Rent PSF
As of September 30, 2018		156			4,549		$	75,010		$	16.49
Opened		(12	)		(492	)		(5,785	)		11.76
Sold / contributed to JVs / terminated		(5	)		(83	)		(1,758	)		21.18
Signed		31			878			15,830			18.03
As of December 31, 2018		170			4,852		$	83,297		$	17.17

- 13 -

PROPERTY INFORMATION

Redevelopment Projects

December 31, 2018

(In thousands, except number of projects)

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

(in thousands)
					Estimated		Estimated								Estimated
	Number		Project		Development		Project		Projected Annual Income (2)						Incremental
Estimated Project Costs (1)	of Projects		Square Feet		Costs (1)		Costs (1)		Total		Existing		Incremental		Yield (3)
< $10,000		28		2,182	$	125,600	$	127,900	$	23,400	$	5,700	$	17,700
$10,001 - $20,000 (4)		32		3,721		439,000		458,900		63,100		15,300		47,900
> $20,001		22		3,738		803,100		861,900		115,100		23,100		91,900
Announced projects		82		9,641	$	1,367,700	$	1,448,700	$	201,600	$	44,100	$	157,500	10.5-11.5%
Acquired projects		15				63,600		63,600
Total projects		97			$	1,431,300	$	1,512,300

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

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

(3) Projected incremental annual income divided by total estimated project costs.

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

- 14 -

PROPERTY INFORMATION

Redevelopment Projects (cont’d)

December 31, 2018

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

Total Project Costs under $10 Million
		Total		Estimated	Estimated
		Project		Construction	Substantial
Property	Description	Square Feet		Start	Completion
King of Prussia, PA	Repurpose former auto center space for Outback Steakhouse, Yard House and small shop retail		29,100	Complete
Merrillville, IN	Termination property; redevelop existing store for At Home and small shop retail		132,000	Complete
Elkhart, IN	Termination property; existing store has been released to Big R Stores		86,500	Complete
Bowie, MD	Recapture and repurpose auto center space for BJ's Brewhouse		8,200	Complete
Troy, MI	Partial recapture; redevelop existing store for At Home		100,000	Complete
Rehoboth Beach, DE	Partial recapture; redevelop existing store for andThat! and PetSmart		56,700	Complete
Henderson, NV	Termination property; redevelop existing store for At Home, Seafood City, Blink Fitness and additional retail		144,400	Complete
Cullman, AL	Termination property; redevelop existing store for Bargain Hunt, Tractor Supply and Planet Fitness		99,000	Complete
Jefferson City, MO	Termination property; redevelop existing store for Orscheln Farm and Home		96,000	Complete
Guaynabo, PR	Partial recapture; redevelop existing store for Planet Fitness, Capri and additional retail and restaurants		56,100	Complete
Ft. Wayne, IN	Site densification (project expansion); new outparcels for BJ's Brewhouse and Chick-Fil-A		12,000	Complete
Westwood, TX	Termination property; site has been leased to Sonic Automotive and will be repurposed as an auto dealership		213,600	Complete
Albany, NY	Recapture and repurpose auto center space for BJ's Brewhouse, Ethan Allen and additional small shop retail		28,000	Substantially complete
Kearney, NE	Termination property; redevelop existing store for Marshall's, PetSmart, Ross Dress for Less and Five Below		92,500	Substantially complete
Dayton, OH	Recapture and repurpose auto center space for Outback Steakhouse and additional restaurants		14,100	Substantially complete
Florissant, MO	Site densification; new outparcel for Chick-Fil-A		5,000	Delivered to tenant
St. Clair Shores, MI	100% recapture; demolish existing store and develop site for new Kroger grocery store		107,200	Delivered to tenant
Hagerstown, MD	Recapture and repurpose auto center space for BJ's Brewhouse, Verizon and additional retail		15,400	Sold
New Iberia, LA	Termination property; redevelop existing store for Ross Dress for Less, Rouses Supermarkets, Hobby Lobby and small shop retail		93,100	Underway	Q1 2019
North Little Rock, AR	Recapture and repurpose auto center space for LongHorn Steakhouse and additional small shop retail		17,300	Underway	Q2 2019
Hopkinsville, KY	Termination property; redevelop existing store for Bargain Hunt, Farmer's Furniture, Harbor Freight Tools and small shop retail		87,900	Underway	Q2 2019
Mt. Pleasant, PA	Termination property; redevelop existing store for Aldi, Big Lots and additional retail		86,300	Underway	Q3 2019
Oklahoma City, OK	Site densification; new fitness center for Vasa Fitness		59,500	Underway	Q3 2019
Gainesville, FL	Termination property; repurpose existing store as office space for Florida Clinical Practice Association / University of Florida College of Medicine		139,100	Underway	Q4 2019
Layton, UT	Termination property; a portion of the space has been leased to Extra Space Storage and will be repurposed as self storage; existing tenants include Vasa Fitness and small shop retail		172,100	Q1 2019	Q2 2019
Hampton, VA	Site densification; new outparcel for  Chick-fil-A		2,200	Sold
Houston, TX	100% recapture; entered into ground lease with adjacent mall with potential to participate in future redevelopment		214,400	Q1 2019	Q2 2019
Hialeah, FL	Recapture and repurpose auto center space for restaurants and small shop retail		14,000	Q2 2019	Q1 2020

- 15 -

PROPERTY INFORMATION

Redevelopment Projects (cont’d)

December 31, 2018

Total Project Costs $10 - $20 Million
		Total		Estimated	Estimated
		Project		Construction	Substantial
Property	Description	Square Feet		Start	Completion
Braintree, MA	100% recapture; redevelop existing store for Nordstrom Rack, Saks OFF 5th and additional retail		90,000	Complete
Honolulu, HI	100% recapture; redevelop existing store for Longs Drugs (CVS), PetSmart and Ross Dress for Less		79,000	Complete
Anderson, SC	100% recapture (project expansion); redevelop existing store for Burlington Stores, Gold's Gym, Sportsman's Warehouse, additional retail and restaurants		111,300	Complete
Madison, WI	Partial recapture; redevelop existing store for Dave & Busters, Total Wine & More, additional retail and restaurants		75,300	Substantially complete
Orlando, FL	100% recapture; demolish and construct new buildings for Floor & Decor, Orchard Supply Hardware, LongHorn Steakhouse, Mission BBQ, Olive Garden and additional small shop retail and restaurants		139,200	Substantially complete
Paducah, KY	Termination property; redevelop existing store for Burlington Stores, Ross Dress for Less and additional retail		102,300	Substantially complete
Springfield, IL	Termination property; redevelop existing store for Burlington Stores, Binny's Beverage Depot, Marshall's, Orangetheory Fitness, Outback Steakhouse, CoreLife Eatery and additional small shop retail		133,400	Substantially complete
Thornton, CO	Termination property; redevelop existing store for Vasa Fitness and additional junior anchors		191,600	Substantially complete
Cockeysville, MD	Partial recapture; redevelop existing store for HomeGoods, Michael's Stores, additional junior anchors and restaurants		83,500	Substantially complete
Warwick, RI	Termination property (project expansion); redevelop existing store and detached auto center for At Home, BJ's Brewhouse, Raymour & Flanigan, additional retail and restaurants		190,700	Substantially complete
Salem, NH	Densify site with new theatre for Cinemark and recapture and repurpose auto center for restaurant space to join existing tenant Dick's Sporting Goods		71,200	Delivered to tenants
Fairfax, VA	Partial recapture; redevelop existing store and attached auto center for Dave & Busters, additional junior anchors and restaurants		110,300	Delivered to tenants
Temecula, CA	Partial recapture; redevelop existing store and detached auto center for Round One, small shop retail and restaurants		65,100	Delivered to tenant
Hialeah, FL	100% recapture; redevelop existing store for Bed, Bath & Beyond, Ross Dress for Less and dd's Discounts to join current tenant, Aldi		88,400	Delivered to tenants
Santa Cruz, CA	Partial recapture; redevelop existing store for TJ Maxx, HomeGoods and additional junior anchors		62,200	Sold
NorthHollywood, CA	Partial recapture; redevelop existing store for Burlington Stores and Ross Dress for Less		79,800	Underway	Q1 2019
North Miami, FL	100% recapture; redevelop existing store for Blink Fitness, Burlington Stores, Michael's and Ross Dress for Less		124,300	Underway	Q2 2019
Canton, OH	Partial recapture; redevelop existing store for Dave & Busters and restaurants		83,900	Underway	Q2 2019
North Riverside, IL	Partial recapture; redevelop existing store and detached auto center for Blink Fitness, Round One, additional junior anchors, small shop retail and restaurants		103,900	Underway	Q2 2019
Olean, NY	Termination property (project expansion); redevelop existing store for Marshall's, Ollie's Bargain Basement and additional retail		125,700	Underway	Q2 2019
West Jordan, UT	Termination property (project expansion); redevelop existing store and attached auto center for At Home, Burlington Stores and additional retail		190,300	Underway	Q2 2019
Las Vegas, NV	Partial recapture; redevelop existing store for Round One and additional retail		78,800	Underway	Q3 2019
Roseville, MI	Termination property (project expansion); redevelop existing store for At Home, Hobby Lobby, Chick-fil-A and additional retail		369,800	Underway	Q3 2019
Yorktown Heights, NY	Partial recapture; redevelop existing store for 24 Hour Fitness and retail uses		85,200	Underway	Q4 2019
Charleston, SC	100% recapture (project expansion); redevelop existing store and detached auto center for Burlington Stores and additional retail		126,700	Underway	Q4 2019
Chicago, IL (Kedzie)	Termination property; redevelop existing store for Ross Dress for Less, dd's Discounts, Blink Fitness and additional retail		123,300	Underway	Q4 2019
El Paso, TX	Termination property; redevelop existing store for Ross Dress for Less, dd's Discounts and additional retail		114,700	Underway	Q4 2019

- 16 -

PROPERTY INFORMATION

Redevelopment Projects (cont’d)
December 31, 2018
Total Project Costs $10 - $20 Million (cont’d)
		Total		Estimated	Estimated
		Project		Construction	Substantial
Property	Description	Square Feet		Start	Completion
Warrenton, VA	Termination property; redevelop existing store for HomeGoods and additional retail		97,300	Q1 2019	Q3 2019
Pensacola, FL	Termination property; redevelop existing store for BJ's Wholesale, additional retail and restaurants		134,700	Q1 2019	Q1 2020
Vancouver, WA	Partial recapture; redevelop existing store for Round One, Hobby Lobby and additional retail and restaurants		72,400	Q1 2019	Q2 2020
Manchester, NH	Termination property; redevelop existing store for Dick's Sporting Goods, Dave & Busters, additional retail and restaurants		117,700	Q3 2019	Q3 2020
Saugus, MA	Partial recapture; redevelop existing store and detached auto center (note: temporarily postponed while the Company identifies a new lead tenant)		99,000	To be determined

- 17 -

PROPERTY INFORMATION

Redevelopment Projects (cont’d)

December 31, 2018

Total Project Costs over $20 Million
		Total		Estimated	Estimated
		Project		Construction	Substantial
Property	Description	Square Feet		Start	Completion
Memphis, TN	100% recapture; demolish and construct new buildings for LA Fitness, Nordstrom Rack, Ulta Beauty, Hopdoddy Burger Bar and additional junior anchors, restaurants and small shop retail		135,200	Complete
St. Petersburg, FL	100% recapture; demolish and construct new buildings for Dick's Sporting Goods, Lucky's Market, PetSmart, Five Below, Chili's Grill & Bar, Pollo Tropical, LongHorn Steakhouse, Verizon and additional small shop retail and restaurants		142,400	Complete
WestHartford, CT	100% recapture; redevelop existing store and detached auto center for buybuyBaby, Cost Plus World Market, REI, Saks OFF Fifth, other junior anchors, Shake Shack and additional small shop retail (note: contributed to West Hartford JV in Q2 2018)		147,600	Substantially complete
Wayne, NJ	Partial recapture (project expansion); redevelop existing store and detached auto center for Cinemark, Dave & Busters and additional junior anchors and restaurants (note: contributed to GGP II JV in Q3 2017)		156,700	Delivered to tenant
Carson, CA	100% recapture (project expansion); redevelop existing store for Burlington Stores, Ross Dress for Less, Gold's Gym and additional retail		163,800	Underway	Q1 2019
Watchung, NJ	100% recapture; demolish full-line store and detached auto center and construct new buildings for Cinemark, HomeSense, Sierra Trading Post, Ulta Beauty, Chick-fil-A, small shop retail and additional restaurants		126,700	Underway	Q2 2019
Austin, TX	100% recapture (project expansion); redevelop existing store for AMC Theatres, additional junior anchors and restaurants		177,400	Underway	Q3 2019
El Cajon, CA	100% recapture; redevelop existing store and auto center for Ashley Furniture, Bob's Discount Furniture, Burlington Stores and additional retail and restaurants; a portion of the space has been leased to Extra Space Storage and will be repurposed as self storage		242,700	Underway	Q3 2019
Anchorage, AK	100% recapture; redevelop existing store for Guitar Center, Safeway, Planet Fitness and additional retail to join current tenant, Nordstrom Rack		142,500	Underway	Q4 2019
Aventura, FL	100% recapture; demolish existing store and construct new, multi-level open air retail destination featuring a leading collection of experiential shopping, dining and entertainment concepts alongside a treelined esplanade and activated plazas		216,600	Underway	Q4 2019
East Northport, NY	Termination property; redevelop existing store and attached auto center for AMC Theatres, 24 Hour Fitness, Floor & Decor and small shop retail		179,700	Underway	Q4 2019
Greendale, WI	Termination property; redevelop existing store and attached auto center for Dick's Sporting Goods, Round One, TJ Maxx, additional retail and restaurants		223,800	Underway	Q4 2019
Reno, NV	100% recapture; redevelop existing store and auto center for Round One and additional retail		169,800	Underway	Q4 2019
San Diego, CA	100% recapture; redevelop existing store into two highly-visible, multi-level buildings with exterior facing retail space leased to Equinox Fitness and a premier mix of experiential shopping, dining, and entertainment concepts (note: contributed to UTC JV in Q2 2018)		206,000	Underway	Q4 2019
Santa Monica, CA	100% recapture; redevelop existing building into premier, mixed-use asset featuring unique, small-shop retail and creative office space (note: contributed to Mark 302 JV in Q1 2018)		96,500	Underway	Q4 2019
Tucson, AZ	100% recapture; redevelop existing store and auto center for Round One and additional retail		224,300	Underway	Q4 2019
Fairfield, CA	100% recapture (project expansion); redevelop existing store and auto center for Dave & Busters, AAA Auto Repair Center and additional retail		146,500	Underway	Q1 2020
Roseville, CA	Termination property (project expansion): redevelop existing store and auto center for Cinemark, Round One, AAA Auto Repair Center, additional retail and restaurants		147,400	Underway	Q2 2020
Plantation, FL	100% recapture (project expansion); redevelop existing store and auto center for GameTime, Powerhouse Gym, additional retail and restaurants		184,400	Underway	Q1 2020
San Antonio, TX	Termination property (project expansion); redevelop existing store for Bed Bath & Beyond, buybuyBaby, Tru Fit and additional retail to complement repurposed auto center occupied by Orvis, Jared's Jeweler and Shake Shack		215,900	Q1 2019	Q2 2020

- 18 -

PROPERTY INFORMATION

Redevelopment Projects (cont’d)
December 31, 2018
Total Project Costs over $20 Million (cont’d)
		Total		Estimated	Estimated
		Project		Construction	Substantial
Property	Description	Square Feet		Start	Completion
Asheville, NC	100% recapture; redevelop existing store and auto center for Alamo Drafthouse, restaurants and small shop retail		110,600	Q1 2019	Q3 2020
Orland Park, IL	100% recapture; redevelop existing store for AMC Theatres, 24 Hour Fitness, additional retail and restaurants		181,900	Q3 2019	Q4 2020

- 19 -

PROPERTY INFORMATION

Termination Properties

December 31, 2018

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

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

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

					Announced
Property	Square Feet		Notice	Termination	Redevelopment
Antioch, CA		95,200	August 2018	December 2018
Columbus, MS		117,100	August 2018	December 2018
Dayton, OH		148,800	August 2018	December 2018	Q2 2017
Flagstaff, AZ		66,200	August 2018	December 2018
Ft. Wayne, IN		213,600	August 2018	December 2018	Q3 2016 / Q3 2017
Jackson, MI		144,200	August 2018	December 2018
Manchester, NH		135,100	August 2018	December 2018	Q4 2018
Salem, NH		119,000	August 2018	December 2018	Q4 2017
Savannah, GA		155,700	August 2018	December 2018
Scott Depot, WV		89,800	August 2018	December 2018
Steger, IL		87,400	August 2018	December 2018
Victor, NY		115,300	August 2018	December 2018
West Jordan, UT		117,300	August 2018	December 2018	Q3 2016 / Q3 2018
Chesapeake, VA		169,400	June 2018	November 2018
Clay, NY		138,000	June 2018	November 2018
Havre, MT		94,700	June 2018	November 2018
Newark, CA		145,800	June 2018	November 2018
Oklahoma City, OK		173,700	June 2018	November 2018	Q3 2017
Troy, MI		271,300	June 2018	November 2018	Q3 2016
Virginia Beach, VA		86,900	June 2018	November 2018	Q3 2015
Madison, WI		88,100	June 2018	October 2018	Q2 2016
Thousand Oaks, CA		50,300	June 2018	October 2018	Q3 2015
Cedar Rapids, IA		141,100	April 2018	August 2018
Citrus Heights, CA		280,700	April 2018	August 2018
Gainesville, FL		140,500	April 2018	August 2018	Q2 2018
Maplewood, MN		168,500	April 2018	August 2018
Pensacola, FL		212,300	April 2018	August 2018	Q2 2018
Rochester, NY		128,500	April 2018	August 2018
Roseville, CA		121,000	April 2018	August 2018	Q2 2017 / Q1 2018
San Antonio, TX		187,800	April 2018	August 2018	Q4 2015
Warrenton, VA		113,900	April 2018	August 2018	Q1 2018
Westwood, TX		215,000	June 2017	January 2018 (1)	Q3 2018
Friendswood, TX		166,000	June 2017	November 2017 (1)
Albany, NY		216,200	June 2017	October 2017	Q1 2016
Burnsville, MN		161,700	June 2017	October 2017
Chicago, IL (N Harlem)		293,700	June 2017	October 2017
Cockeysville, MD		83,900	June 2017	October 2017	Q1 2017
East Northport, NY		187,000	June 2017	October 2017	Q2 2017
Greendale, WI		238,400	June 2017	October 2017	Q4 2017
Hagerstown, MD		107,300	June 2017	October 2017	Q1 2016 / Sold
Johnson City, NY		155,100	June 2017	October 2017
Lafayette, LA		194,900	June 2017	October 2017
Mentor, OH		208,700	June 2017	October 2017
Middleburg Heights, OH		351,600	June 2017	October 2017

- 20 -

PROPERTY INFORMATION

Termination Properties (cont’d)
December 31, 2018
Property	Square Feet		Notice	Termination	Redevelopment
Olean, NY		75,100	June 2017	October 2017	Q1 2017
Overland Park, KS		215,000	June 2017	October 2017
Roseville, MI		277,000	June 2017	October 2017	Q3 2016
Sarasota, FL		204,500	June 2017	October 2017
Toledo, OH		209,900	June 2017	October 2017
Warwick, RI		169,200	June 2017	October 2017	Q3 2016 / Q3 2017
York, PA		82,000	June 2017	October 2017
Chapel Hill, OH		187,179	January 2017	April 2017
Concord, NC		137,499	January 2017	April 2017
Detroit Lakes, MN		79,102	January 2017	April 2017
El Paso, TX		103,657	January 2017	April 2017	Q2 2018
Elkins, WV		94,885	January 2017	April 2017	Sold
Henderson, NV		122,823	January 2017	April 2017	Q1 2017
Hopkinsville, KY		70,326	January 2017	April 2017	Q1 2018
Jefferson City, MO		92,016	January 2017	April 2017	Q2 2017
Kenton, OH		96,066	January 2017	April 2017
Kissimmee, FL		112,505	January 2017	April 2017
Layton, UT		90,010	January 2017	April 2017	Q3 2018
Leavenworth, KS		76,853	January 2017	April 2017
Mt. Pleasant, PA		83,536	January 2017	April 2017	Q2 2018
Muskogee, OK		87,500	January 2017	April 2017	Sold
Owensboro, KY		68,334	January 2017	April 2017	Sold
Paducah, KY		108,244	January 2017	April 2017	Q3 2017
Platteville, WI		94,841	January 2017	April 2017	Sold
Riverside, CA (Iowa Ave.)		94,500	January 2017	April 2017
Sioux Falls, SD		72,511	January 2017	April 2017	Sold
Alpena, MI		118,200	September 2016	January 2017
Chicago, IL (S Kedzie)		118,800	September 2016	January 2017	Q3 2018
Cullman, AL		98,500	September 2016	January 2017	Q2 2017
Deming, NM		96,600	September 2016	January 2017
Elkhart, IN		86,500	September 2016	January 2017	Q4 2016
Harlingen, TX		91,700	September 2016	January 2017	Sold
Houma, LA		96,700	September 2016	January 2017	Sold
Kearney, NE		86,500	September 2016	January 2017	Q3 2016
Manistee, MI		87,800	September 2016	January 2017
Merrillville, IN		108,300	September 2016	January 2017	Q4 2016
New Iberia, LA		91,700	September 2016	January 2017	Q2 2017
Riverton, WY		94,800	September 2016	January 2017
Sault Sainte Marie, MI		92,700	September 2016	January 2017
Sierra Vista, AZ		86,100	September 2016	January 2017	Sold
Springfield, IL		84,200	September 2016	January 2017	Q3 2016
Thornton, CO		190,200	September 2016	January 2017	Q1 2017
Yakima, WA		97,300	September 2016	January 2017	Sold
Total square feet		11,728,387

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

- 21 -

PROPERTY INFORMATION

Joint Venture Properties

December 31, 2018

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

					Total
	Mall Name	City	State	Joint Venture	GLA (1)		Leased (1)
1	Northridge Fashion Center	Northridge	CA	GGP II JV		145,900		100.0	%
2	Altamonte Mall	Altamonte Springs	FL	GGP II JV		107,200		4.1	%
3	Coastland Center	Naples	FL	GGP II JV		80,900		31.0	%
4	Cumberland Mall	Atlanta	GA	GGP II JV		109,400		0.0	%
5	Natick Collection (2)	Natick	MA	GGP I JV		95,400		74.9	%
6	Willowbrook Mall	Wayne	NJ	GGP II JV		140,600		77.7	%
7	Sooner Mall (2)	Norman	OK	GGP I JV		33,400		100.0	%
8	Stonebriar Centre	Frisco	TX	GGP I JV		81,500		100.0	%
9	Alderwood	Lynnwood	WA	GGP I JV		88,800		27.7	%

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

(2) Property is subject to a lease or ground lease agreement.

Simon Joint Venture Properties

					Total
	Mall Name	City	State	Joint Venture	GLA (1)		Leased (1)
1	Santa Rosa Plaza	Santa Rosa	CA	Simon JV		82,700		100.0	%
2	Briarwood	Ann Arbor	MI	Simon JV		85,300		100.0	%
3	The Shops at Nanuet	Nanuet	NY	Simon JV		110,700		100.0	%
4	Woodland Hills Mall	Tulsa	OK	Simon JV		75,100		100.0	%
5	Barton Creek Square	Austin	TX	Simon JV		82,300		100.0	%

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

- 22 -

PROPERTY INFORMATION

Joint Venture Properties (cont’d)

December 31, 2018

Macerich Joint Venture Properties

					Total
	Mall Name	City	State	Joint Venture	GLA (1)		Leased (1)
1	Chandler Fashion Center	Chandler	AZ	Macerich JV		70,700		100.0	%
2	Arrowhead Towne Center	Glendale	AZ	Macerich JV		62,500		100.0	%
3	Los Cerritos Center	Cerritos	CA	Macerich JV		138,800		100.0	%
4	Vintage Faire Mall	Modesto	CA	Macerich JV		74,200		100.0	%
5	Danbury Fair	Danbury	CT	Macerich JV		89,200		100.0	%
6	Deptford Mall	Deptford	NJ	Macerich JV		95,900		100.0	%
7	Freehold Raceway Mall	Freehold	NJ	Macerich JV		69,400		100.0	%
8	Washington Square Mall	Portland	OR	Macerich JV		110,000		100.0	%
9	South Plains Mall	Lubbock	TX	Macerich JV		75,300		100.0	%

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

Invesco Real Estate Joint Venture Properties

					Total
	Property Address	City	State	Joint Venture	GLA (1)		Leased (1)
1	302 Colorado Avenue	Santa Monica	CA	Mark 302 JV		48,200		0.0	%
2	4575 La Jolla Village Drive	San Diego	CA	UTC JV		113,100		23.3	%

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

First Washington Joint Venture Property

					Total
	Property Address	City	State	Joint Venture	GLA (1)		Leased (1)
1	1445 New Britain Avenue	West Hartford	CT	West Hartford JV		81,800		61.7	%

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

- 23 -

PROPERTY INFORMATION

Wholly Owned Properties

December 31, 2018

					Holdco	Total					Land
	Property Address	City	State	Property Type (1)	Master Lease (2)	GLA (3)		Leased (3)			Acres
1	700 East Northern Lights Boulevard	Anchorage	AK	Shopping Center			158,600		81.4	%		26
2	1731 2nd Avenue Southwest	Cullman	AL	Freestanding			88,500		100.0	%		6
3	3930 McCain Boulevard	North Little Rock	AR	Mall	X		177,100		94.2	%		15
4	4800 North US Highway 89	Flagstaff	AZ	Mall			66,200		0.0	%		7
5	6515 East Southern Avenue	Mesa	AZ	Mall			121,900		100.0	%		11
6	10140 North 91st Avenue	Peoria	AZ	Shopping Center			104,400		100.0	%		10
7	7611 West Thomas Road	Phoenix	AZ	Mall			144,200		100.0	%		10
8	12025 North 32nd Street	Phoenix	AZ	Freestanding			151,200		100.0	%		11
9	3400 Gateway Boulevard	Prescott	AZ	Mall	X		102,300		100.0	%		10
10	2250 El Mercado Loop	Sierra Vista	AZ	Mall			94,700		100.0	%		7
11	5950 East Broadway Boulevard	Tucson	AZ	Mall			218,900		23.1	%		20
12	3150 South 4th Avenue	Yuma	AZ	Shopping Center			90,400		100.0	%		14
13	3625 East 18th Street	Antioch	CA	Shopping Center			95,200		0.0	%		7
14	42126 Big Bear Boulevard	Big Bear Lake	CA	Shopping Center	X		80,400		91.2	%		8
15	20700 South Avalon Boulevard	Carson	CA	Mall			182,900		83.7	%		13
16	565 Broadway	Chula Vista	CA	Mall	X		250,100		100.0	%		16
17	5900 Sunrise Mall	Citrus Heights	CA	Mall			289,500		0.0	%		22
18	912 County Line Road	Delano	CA	Freestanding			86,100		100.0	%		6
19	575 Fletcher Parkway	El Cajon	CA	Mall			244,900		76.6	%		22
20	3751 South Dogwood Road	El Centro	CA	Mall			139,700		100.0	%		14
21	1420 Travis Boulevard	Fairfield	CA	Mall			169,500		26.6	%		9
22	5901 Florin Road	Florin	CA	Shopping Center			272,700		100.0	%		20
23	3636 North Blackstone Avenue	Fresno	CA	Shopping Center	X		217,600		100.0	%		13
24	1500 Anna Sparks Way	McKinleyville	CA	Shopping Center	X		94,800		100.0	%		8
25	1011 West Olive Avenue	Merced	CA	Shopping Center			92,600		100.0	%		10
26	5080 East Montclair Plaza Lane	Montclair	CA	Mall	X		174,700		100.0	%		3
27	22550 Town Circle	Moreno Valley	CA	Mall	X		169,400		100.0	%		11
28	6000 Mowry Avenue	Newark	CA	Mall			145,800		0.0	%		10
29	12121 Victory Boulevard	North Hollywood	CA	Shopping Center	X		161,900		100.0	%		4
30	72880 Highway 111	Palm Desert	CA	Mall	X		136,500		100.0	%		8
31	1855 Main Street	Ramona	CA	Shopping Center	X		107,600		94.5	%		10
32	5261 Arlington Avenue	Riverside	CA	Freestanding	X		214,200		100.0	%		19
33	3001 Iowa Avenue	Riverside	CA	Freestanding			132,600		28.7	%		13
34	1191 Galleria Boulevard	Roseville	CA	Mall			131,500		89.9	%		9
35	1700 North Main Street	Salinas	CA	Mall	X		133,000		100.0	%		10
36	100 Inland Center	San Bernardino	CA	Mall	X		264,700		100.0	%		22

- 24 -

PROPERTY INFORMATION

Wholly Owned Properties

December 31, 2018

					Holdco	Total					Land
	Property Address	City	State	Property Type (1)	Master Lease (2)	GLA (3)		Leased (3)			Acres
37	1178 El Camino Real	San Bruno	CA	Mall	X		276,600		100.0	%		13
38	2180 Tully Road	San Jose	CA	Mall	X		262,500		100.0	%		22
39	200 Town Center East	Santa Maria	CA	Mall	X		108,600		100.0	%		5
40	895 Faulkner Road	Santa Paula	CA	Freestanding	X		71,300		100.0	%		10
41	40710 Winchester Road	Temecula	CA	Mall	X		120,100		94.8	%		10
42	145 West Hillcrest Drive	Thousand Oaks	CA	Shopping Center			164,000		69.3	%		11
43	3295 East Main Street	Ventura	CA	Mall	X		178,600		100.0	%		2
44	1209 Plaza Drive	West Covina	CA	Mall	X		142,000		100.0	%		16
45	100 Westminster Mall	Westminster	CA	Mall			197,900		0.0	%		14
46	10785 West Colfax Avenue	Lakewood	CO	Shopping Center			153,000		100.0	%		8
47	1400 East 104th Avenue	Thornton	CO	Shopping Center			186,800		30.5	%		25
48	850 Hartford Turnpike	Waterford	CT	Mall			149,300		100.0	%		11
49	19563 Coastal Highway	Rehoboth Beach	DE	Freestanding	X		123,300		100.0	%		13
50	5900 Glades Road	Boca Raton	FL	Mall			178,500		2.4	%		19
51	303 U.S. Highway 301 Boulevard West	Bradenton	FL	Mall			99,900		100.0	%		15
52	7350 Manatee Avenue West	Bradenton	FL	Shopping Center	X		82,900		100.0	%		9
53	27001 U.S. 19 North	Clearwater	FL	Mall			211,200		41.4	%		14
54	1625 Northwest 107th Avenue	Doral	FL	Mall			212,900		100.0	%		13
55	4125 Cleveland Avenue	Ft. Myers	FL	Mall	X		146,800		100.0	%		12
56	6201 West Newberry Road	Gainesville	FL	Mall			139,100		100.0	%		8
57	1675 West 49th Street	Hialeah	FL	Mall	X		197,400		100.0	%		8
58	1460 West 49th Street	Hialeah	FL	Freestanding			106,300		100.0	%		9
59	2211 West Vine Street	Kissimmee	FL	Shopping Center			148,900		24.4	%		14
60	3800 US Highway 98 North	Lakeland	FL	Mall			156,200		100.0	%		12
61	1050 South Babcock Street	Melbourne	FL	Freestanding			102,600		100.0	%		14
62	19505 Biscayne Boulevard	Miami	FL	Mall			173,300		13.8	%		12
63	20701 Southwest 112th Avenue	Miami	FL	Mall	X		170,100		100.0	%		15
64	10700 Biscayne Boulevard	North Miami	FL	Freestanding			119,900		95.0	%		11
65	3100 Southwest College Road	Ocala	FL	Mall			146,200		100.0	%		12
66	380 Blanding Boulevard	Orange Park	FL	Shopping Center			87,400		100.0	%		9
67	3111 East Colonial Drive	Orlando	FL	Mall			130,400		92.3	%		18
68	733 North Highway 231	Panama City	FL	Mall			139,300		100.0	%		15
69	7171 North Davis Highway	Pensacola	FL	Shopping Center			127,900		79.5	%		15
70	8000 West Broward Boulevard	Plantation	FL	Mall			184,300		60.0	%		18
71	8201 South Tamiami Trail	Sarasota	FL	Mall			204,500		0.0	%		15
72	4501 66th Street North	St. Petersburg	FL	Freestanding	X		120,600		100.0	%		11

- 25 -

PROPERTY INFORMATION

Wholly Owned Properties

December 31, 2018

						Holdco	Total					Land
	Property Address		City	State	Property Type (1)	Master Lease (2)	GLA (3)		Leased (3)			Acres
73	2300 Tyrone Boulevard North		St. Petersburg	FL	Mall			147,800		97.4	%		14
74	7810 Abercorn Street		Savannah	GA	Mall			167,300		6.9	%		15
75	500 North Nimitz Highway		Honolulu	HI	Freestanding			76,100		100.0	%		4
76	1501 Highway 169 North		Algona	IA	Freestanding	X		99,300		100.0	%		7
77	4600 1st Avenue Northeast		Cedar Rapids	IA	Mall			146,000		0.0	%		12
78	1405 South Grand Avenue		Charles City	IA	Freestanding	X		96,600		100.0	%		11
79	2307 Superior Street		Webster City	IA	Shopping Center			40,800		100.0	%		4
80	460 North Milwaukee Street		Boise	ID	Mall			123,600		100.0	%		8
81	4730 West Irving Park Road		Chicago	IL	Freestanding			371,700		14.3	%		6
82	1601 North Harlem Avenue		Chicago	IL	Freestanding			293,700		12.9	%		7
83	5050 South Kedzie Avenue		Chicago	IL	Shopping Center			129,300		68.6	%		9
84	17550 Halsted Street		Homewood	IL	Shopping Center			196,100		100.0	%		19
85	3340 Mall Loop Drive		Joliet	IL	Mall			204,600		100.0	%		17
86	2860 South Highland Avenue		Lombard	IL	Freestanding			139,300		100.0	%		8
87	7503 West Cermak Road		North Riverside	IL	Mall	X		202,500		93.7	%		13
88	2 Orland Square Drive		Orland Park	IL	Mall			160,000		52.4	%		16
89	2500 Wabash Avenue		Springfield	IL	Shopping Center			131,400		83.3	%		14
90	3231 Chicago Road		Steger	IL	Freestanding			87,400		0.0	%		3
91	3101 Northview Drive		Elkhart	IN	Shopping Center			86,600		100.0	%		8
92	4201 Coldwater Road		Ft. Wayne	IN	Mall			93,400		12.8	%		15
93	101 West Lincoln Highway		Merrillville	IN	Shopping Center			170,900		83.0	%		17
94	4820 South 4th Street Trafficway		Leavenworth	KS	Freestanding			83,600		0.0	%		9
95	9701 Metcalf Avenue		Overland Park	KS	Shopping Center			215,000		5.6	%		19
96	3010 Fort Campbell Boulevard		Hopkinsville	KY	Shopping Center			92,900		69.5	%		13
97	5101 Hinkleville Road		Paducah	KY	Mall			97,300		68.7	%		9
98	5715 Johnston Street		Lafayette	LA	Mall			194,900		0.0	%		16
99	900 East Admiral Doyle Drive	��	New Iberia	LA	Freestanding			114,600		100.0	%		12
100	200 Grossman Drive		Braintree	MA	Shopping Center			89,800		94.5	%		34
101	1325 Broadway		Saugus	MA	Mall	X		210,800		68.8	%		16
102	15700 Emerald Way		Bowie	MD	Shopping Center			131,000		100.0	%		11
103	126 Shawan Road		Cockeysville	MD	Shopping Center			137,100		33.8	%		12
104	3207 Solomons Island Road		Edgewater	MD	Shopping Center	X		117,100		100.0	%		14
105	417 Main Street		Madawaska	ME	Shopping Center			49,700		100.0	%		2
106	2355 US Highway 23 South		Alpena	MI	Freestanding			118,200		0.0	%		12
107	1250 Boardman-Jackson Crossing		Jackson	MI	Shopping Center			152,700		5.6	%		15
108	2100 Southfield Road		Lincoln Park	MI	Shopping Center			301,700		100.0	%		17

- 26 -

PROPERTY INFORMATION

Wholly Owned Properties

December 31, 2018

					Holdco	Total					Land
	Property Address	City	State	Property Type (1)	Master Lease (2)	GLA (3)		Leased (3)			Acres
109	1560 US 31 South	Manistee	MI	Shopping Center			94,700		0.0	%		12
110	32123 Gratiot Avenue	Roseville	MI	Mall			367,900		51.9	%		21
111	2760 I-75 Business Spur	Sault Sainte Marie	MI	Freestanding			92,700		0.0	%		11
112	22801 Harper Avenue	St. Clair Shores	MI	Freestanding			103,000		100.0	%		11
113	300 West 14 Mile Road	Troy	MI	Mall			384,100		27.0	%		30
114	3100 Washtenaw Road	Ypsilanti	MI	Freestanding			99,400		100.0	%		12
115	14250 Buck Hill Road	Burnsville	MN	Mall			161,700		0.0	%		15
116	1305 Highway 10 West	Detroit Lakes	MN	Shopping Center			87,100		9.2	%		15
117	3001 White Bear Avenue North	Maplewood	MN	Mall			175,000		0.0	%		14
118	425 Rice Street	St. Paul	MN	Freestanding			217,900		100.0	%		17
119	11 South Kingshighway Street	Cape Girardeau	MO	Freestanding			75,000		100.0	%		6
120	1 Flower Valley Shopping Center	Florissant	MO	Shopping Center			124,000		100.0	%		11
121	2304 Missouri Boulevard	Jefferson City	MO	Freestanding			97,700		100.0	%		10
122	3700 South Campbell Avenue	Springfield	MO	Shopping Center			112,900		100.0	%		8
123	2308 Highway 45 North	Columbus	MS	Shopping Center			166,700		27.2	%		18
124	3180 Highway 2 West	Havre	MT	Freestanding			94,700		0.0	%		9
125	1 South Tunnel Road	Asheville	NC	Mall			110,600		40.7	%		16
126	545 Concord Parkway North	Concord	NC	Shopping Center			171,300		19.7	%		26
127	1302 Bridford Parkway	Greensboro	NC	Shopping Center			171,700		77.6	%		16
128	1 20th Avenue Southeast	Minot	ND	Shopping Center	X		110,400		100.0	%		13
129	4700 2nd Avenue	Kearney	NE	Freestanding			64,900		100.0	%		8
130	1500 South Willow Street	Manchester	NH	Mall			114,100		70.5	%		11
131	310 Daniel Webster Highway	Nashua	NH	Mall	X		167,100		100.0	%		7
132	50 Fox Run Road	Portsmouth	NH	Mall			127,000		100.0	%		13
133	77 Rockingham Park Boulevard	Salem	NH	Mall			207,200		59.4	%		14
134	1500 Highway 35	Middletown	NJ	Freestanding			191,100		100.0	%		23
135	1640 Route 22	Watchung	NJ	Freestanding			116,400		86.9	%		19
136	1205 East Pine Street	Deming	NM	Freestanding			96,600		0.0	%		10
137	10405 South Eastern Avenue	Henderson	NV	Shopping Center			143,500		100.0	%		12
138	4000 Meadows Lane	Las Vegas	NV	Mall	X		139,200		77.6	%		11
139	5400 Meadowood Mall Circle	Reno	NV	Mall			183,700		22.5	%		3
140	1425 Central Avenue	Albany	NY	Mall			277,900		18.6	%		21
141	4155 State Route 31	Clay	NY	Mall			146,500		0.0	%		12
142	4000 Jericho Turnpike	East Northport	NY	Shopping Center			179,700		92.7	%		18
143	195 North Broadway	Hicksville	NY	Freestanding			284,800		34.3	%		30
144	601 Harry L Drive	Johnson City	NY	Mall			155,100		0.0	%		11

- 27 -

PROPERTY INFORMATION

Wholly Owned Properties

December 31, 2018

					Holdco	Total					Land
	Property Address	City	State	Property Type (1)	Master Lease (2)	GLA (3)		Leased (3)			Acres
145	2801 West State Street	Olean	NY	Freestanding			118,000		46.9	%		13
146	317 Greece Ridge Center Drive	Rochester	NY	Mall			128,500		0.0	%		15
147	171 Delaware Avenue	Sidney	NY	Shopping Center	X		94,400		100.0	%		19
148	200 Eastview Mall	Victor	NY	Mall			123,000		0.0	%		14
149	600 Lee Boulevard	Yorktown Heights	NY	Mall			160,000		100.0	%		12
150	4100 Belden Village Avenue Northwest	Canton	OH	Mall	X		219,400		100.0	%		19
151	2000 Brittain Road	Chapel Hill	OH	Mall			193,100		0.0	%		21
152	2700 Miamisburg Centerville Road	Dayton	OH	Mall			192,500		3.6	%		16
153	1005 East Columbus Street	Kenton	OH	Freestanding			96,100		0.0	%		11
154	502 Pike Street	Marietta	OH	Freestanding	X		87,500		100.0	%		7
155	7875 Johnnycake Ridge Road	Mentor	OH	Mall			208,700		0.0	%		20
156	6950 West 130th Street	Middleburg Heights	OH	Shopping Center			351,600		0.0	%		15
157	1447 North Main Street	North Canton	OH	Shopping Center	X		87,100		100.0	%		9
158	555 South Avenue	Tallmadge	OH	Freestanding	X		84,200		100.0	%		8
159	3408 West Central Avenue	Toledo	OH	Shopping Center			209,900		0.0	%		11
160	4400 South Western Avenue	Oklahoma City	OK	Freestanding			223,700		22.4	%		24
161	3132 East 51st Street	Tulsa	OK	Freestanding			87,200		100.0	%		9
162	1180 Southeast 82nd Avenue	Happy Valley	OR	Mall			144,300		100.0	%		12
163	1180 Walnut Bottom Road	Carlisle	PA	Shopping Center			117,800		100.0	%		3
164	3975 Columbia Avenue	Columbia	PA	Shopping Center	X		86,700		100.0	%		8
165	160 North Gulph Road (4)	King Of Prussia	PA	Mall			210,900		100.0	%		14
166	1745 Quentin Road	Lebanon	PA	Shopping Center	X		117,200		100.0	%		15
167	100 Cross Roads Plaza	Mount Pleasant	PA	Shopping Center			83,500		69.9	%		10
168	400 North Best Avenue	Walnutport	PA	Freestanding	X		121,200		100.0	%		16
169	1094 Haines Road	York	PA	Shopping Center			82,000		0.0	%		6
170	PR 167 & Las Cumbres	Bayamon	PR	Shopping Center	X		115,200		100.0	%		10
171	400 Calle Betances	Caguas	PR	Mall	X		138,700		100.0	%		8
172	Avenue 65 Infanteria	Carolina	PR	Mall	X		198,000		100.0	%		11
173	Martinez Nadal Avenue	Guaynabo	PR	Shopping Center	X		217,100		94.4	%		18
174	PR Road 2, Km 149.5	Mayaguez	PR	Shopping Center	X		118,200		100.0	%		13
175	2643 Ponce Bypass	Ponce	PR	Shopping Center	X		126,900		100.0	%		9
176	650 Bald Hill Road	Warwick	RI	Shopping Center			211,700		96.5	%		20
177	3801B Clemson Boulevard	Anderson	SC	Shopping Center			117,100		100.0	%		12
178	7801 Rivers Avenue	Charleston	SC	Mall			127,500		46.8	%		14
179	2800 North Germantown Parkway	Cordova	TN	Mall			160,900		100.0	%		12
180	4570 Poplar Avenue	Memphis	TN	Freestanding			112,700		80.7	%		11

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PROPERTY INFORMATION

Wholly Owned Properties

December 31, 2018

					Holdco	Total					Land
	Property Address	City	State	Property Type (1)	Master Lease (2)	GLA (3)		Leased (3)			Acres
181	12625 North Interstate Highway 35	Austin	TX	Shopping Center			172,000		26.2	%		25
182	3450 West Camp Wisdom Road	Dallas	TX	Mall			205,300		100.0	%		13
183	9484 Dyer Street	El Paso	TX	Freestanding			112,000		54.0	%		11
184	300 Baybrook Mall	Friendswood	TX	Mall			166,000		0.0	%		13
185	303 Memorial City	Houston	TX	Mall			214,400		100.0	%		20
186	12605 North Gessner Road	Houston	TX	Freestanding			134,000		100.0	%		11
187	6301 Northwest Loop 410	Ingram	TX	Mall			168,400		100.0	%		12
188	2501 Irving Mall	Irving	TX	Mall			88,200		95.8	%		18
189	201 Central Park Mall	San Antonio	TX	Freestanding			198,900		71.3	%		15
190	4000 North Shepherd	Shepherd	TX	Freestanding	X		201,700		100.0	%		12
191	13131 Preston Road	Valley View	TX	Mall			235,000		2.5	%		23
192	9570 Southwest Freeway	Westwood	TX	Freestanding			213,600		100.0	%		18
193	2010 North Main Street	Layton	UT	Shopping Center			176,800		91.0	%		14
194	7453 South Plaza Center Drive	West Jordan	UT	Shopping Center			190,300		96.3	%		12
195	5901 Duke Street	Alexandria	VA	Mall	X		262,100		100.0	%		18
196	1401 Greenbrier Parkway	Chesapeake	VA	Mall			169,400		0.0	%		15
197	12000 Fair Oaks Mall	Fairfax	VA	Mall			220,700		68.1	%		15
198	4588 Virginia Beach Boulevard	Virginia Beach	VA	Mall			197,300		56.0	%		14
199	141 West Lee Highway	Warrenton	VA	Shopping Center			86,100		25.4	%		9
200	2200 148th Avenue Northeast	Redmond	WA	Shopping Center			267,400		0.0	%		15
201	8800 Northeast Vancouver Mall Drive	Vancouver	WA	Mall			129,700		77.0	%		10
202	5200 South 76th Street	Greendale	WI	Mall			187,500		76.1	%		21
203	53 West Towne Mall	Madison	WI	Mall			142,400		38.1	%		18
204	101 Great Teays Boulevard	Scott Depot	WV	Freestanding			90,100		0.0	%		8
205	2150 South Douglas Highway	Gillette	WY	Freestanding			94,600		52.0	%		10
206	1960 North Federal Boulevard	Riverton	WY	Freestanding			94,800		0.0	%		9
	Total - Wholly-Owned Properties						31,602,200		65.6	%		2,688

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

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

(3) Based on signed leases as of December 31, 2018.

(4) Property is subject to a ground lease.

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DISCLOSURES

Non-GAAP Measures

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

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

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

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

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

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

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

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

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

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

Funds From Operations ("FFO") and Company FFO

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

- 30 -

DISCLOSURES

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

Forward-Looking Statements

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

- 31 -

Seritage Growth Properties

500 Fifth Avenue | New York, NY 10110

212-355-7800 | www.seritage.com