Brixmor Operating Partnership 8-K Results of Operations and Financial Condition

Exhibit 99.1

450 Lexington Avenue : New York, NY 10017 : 800.468.7526

FOR IMMEDIATE RELEASE

CONTACT:

Stacy Slater                            

Senior Vice President, Investor Relations            

800.468.7526                             

stacy.slater@brixmor.com

BRIXMOR PROPERTY GROUP REPORTS THIRD QUARTER 2016 RESULTS

NEW YORK, October 24, 2016 - Brixmor Property Group Inc. (NYSE: BRX) (“Brixmor” or the “Company”) announced today its operating results for the three months ended September 30, 2016. Net income attributable to common stockholders was $0.19 per diluted share compared with $0.18 per diluted share in the comparable 2015 period. Key highlights for the quarter include:

• Executed 2.0 million square feet of new and renewal leases or 3.5 million square feet including options exercised

• Achieved comparable new and renewal rent spreads of 14.7%

• Realized leased occupancy of 92.6%, consistent with the same period in the prior year, despite the impact of retailer bankruptcies

• Increased small shop leased occupancy by 100 basis points year-over-year to 85.0%

• Completed nine anchor space repositioning projects and four outparcel developments and significantly expanded the redevelopment pipeline

• Generated same property NOI growth of 2.0%

• Grew FFO per diluted share 5% year-over-year, excluding non-cash GAAP rental adjustments and items that impact comparability

• Increased dividend 6%

• Issued $500 million of 3.25% Senior Notes due 2023 and amended and restated $2.75 billion credit facility

• Revised NAREIT FFO per share - diluted guidance for 2016 to $2.04 - $2.06 from previous guidance of $2.03 - $2.06

“I’m very pleased with our progress this quarter on all fronts. We increased small shop occupancy, which rose 100 basis points over last year to 85%, while also driving healthy rent spreads and new leasing activity with leading tenants such as Kroger, Total Wine, and Ulta. We drove further value creation by delivering $20 million of anchor space repositioning projects at double digit yields and by expanding our pipeline of reinvestments in our properties to $175 million at an expected yield of 10 - 12%," commented James Taylor, President and Chief Executive Officer. 

Mr. Taylor added, "We also continued to strengthen our balance sheet, with the issuance of $500 million of seven-year Senior Notes and the amendment and restatement of our $2.75 billion credit facility, while Blackstone Real Estate Partners fully monetized their position in Brixmor, enhancing liquidity for our shareholder base. We are very well positioned to accelerate value creation at the asset level and execute our plan of sustainable growth.”

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450 Lexington Avenue : New York, NY 10017 : 800.468.7526

FINANCIAL HIGHLIGHTS

Net Income

• For the three months ended September 30, 2016 and 2015, net income attributable to common stockholders was $57.5 million, or $0.19 per diluted share, and $53.8 million, or $0.18 per diluted share, respectively.

• For the nine months ended September 30, 2016 and 2015, net income attributable to common stockholders was $182.4 million, or $0.61 per diluted share, and $138.3 million, or $0.46 per diluted share, respectively.

NAREIT FFO

• For the three months ended September 30, 2016 and 2015, NAREIT FFO was $154.9 million, or $0.51 per diluted share and $156.2 million, or $0.51 per diluted share, respectively. Results for the three months ended September 30, 2016 include a loss on extinguishment of debt, net and other items that impact FFO comparability of ($2.1) million, or ($0.01) per diluted share. Results for the three months ended September 30, 2015 include an adjustment of tax reserves for pre-IPO transactions and other items that impact FFO comparability of $4.1 million, or $0.01 per diluted share.

• For the nine months ended September 30, 2016 and 2015, NAREIT FFO was $468.9 million, or $1.54 per diluted share and $444.4 million, or $1.46 per diluted share, respectively. Results for the nine months ended September 30, 2016 include expenses related to the previously disclosed Audit Committee review, executive severance expenses and other items that impact FFO comparability of ($9.0) million, or ($0.03) per diluted share. Results for the nine months ended September 30, 2015 include a non-recurring charge related to pre-IPO compensation programs and transaction expenses, offset by an adjustment of tax reserves for pre-IPO transactions, and other items that impact FFO comparability of ($7.1) million, or ($0.02) per diluted share.

Same Property NOI

• Same property NOI for the three and nine months ended September 30, 2016 increased 2.0% and 2.7%, respectively, from the comparable 2015 period.

Dividend

• The Company’s Board of Directors declared a quarterly cash dividend of $0.26 per common share (equivalent to $1.04 per annum) for the fourth quarter of 2016, which represents a 6% increase.

• The dividend is payable on January 17, 2017 to stockholders of record on January 5, 2017, representing an ex-dividend date of January 3, 2017.

PORTFOLIO AND INVESTMENT ACTIVITY

Value Creation Opportunities

• During the three months ended September 30, 2016, the Company completed nine anchor space repositioning projects and added two new projects to its pipeline.  At September 30, 2016, the anchor space repositioning pipeline was comprised of 15 projects, the aggregate cost of which is expected to be approximately $33 million.

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450 Lexington Avenue : New York, NY 10017 : 800.468.7526

• During the three months ended September 30, 2016, the Company completed four outparcel developments and at September 30, 2016, the outparcel development pipeline was comprised of 11 projects, the aggregate cost of which is expected to be approximately $19 million. In addition, the new development pipeline was comprised of one project, the cost of which is expected to be approximately $19 million.

• The Company also added two new redevelopment projects and moved five anchor space repositioning projects to its redevelopment pipeline.  At September 30, 2016, the redevelopment pipeline was comprised of eight projects, the aggregate cost of which is expected to be approximately $104 million.

Acquisitions

• On September 22, 2016, the Company acquired a 28,500 square foot vacant anchor space for approximately $7 million at Rose Pavilion in Pleasanton, California, a shopping center owned by the Company. The acquired space was subsequently leased to Total Wine & More, as part of a redevelopment of the shopping center.

Dispositions

• During the three months ended September 30, 2016, the Company generated approximately $11 million of gross proceeds through the sale of two properties.

CAPITAL STRUCTURE

Unsecured Notes

• On August 15, 2016, the Company’s Operating Partnership, Brixmor Operating Partnership LP (the “Operating Partnership”), issued $500 million aggregate principal amount of 3.25% Senior Notes due 2023 at 99.736% of par value. Proceeds from the offering were utilized to repay outstanding indebtedness under the Company’s $1.25 billion unsecured revolving credit facility (the “Revolver”) and for general corporate purposes.

Credit Facility

• As previously announced, on July 25, 2016, the Operating Partnership executed an amendment and restatement to its $2.75 billion credit facility (the “Facility”), extending its weighted average maturity and lowering the aggregate pricing. The amended Facility provides for (i) a three-year extension on the Revolver to July 31, 2020 at an effective interest rate of LIBOR plus 145 basis points and (ii) a reallocation of the existing unsecured term loan that was to mature on July 31, 2018 into two tranches (the “Term Loans”), comprised of a $1.0 billion tranche A term loan maturing July 31, 2018 and a $500.0 million tranche B term loan maturing July 31, 2021, both at an effective interest rate of LIBOR plus 135 basis points.

Secured Mortgages

• During the three months ended September 30, 2016, the Company repaid $687 million of mortgage indebtedness, including amortization, at an average interest rate of 5.43%, increasing its unencumbered asset base to 72% of properties at September 30, 2016.

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450 Lexington Avenue : New York, NY 10017 : 800.468.7526

GUIDANCE

• The Company has revised its NAREIT FFO per share - diluted expectations for 2016 and the key underlying assumptions as follows:

2016E (dollars in millions, except per share amounts)	Updated Guidance	Prior Guidance
NAREIT FFO per share - diluted	$2.04 - $2.06	$2.03 - $2.06
Key Underlying Assumptions
Same property NOI growth	2.5 - 3.0%	2.5 - 3.5%
Percent leased (at year-end)	92.8 - 93.0%	92.8 - 93.0%
Total rent spread (cash)	10 - 15%	10 - 15%
Total leasing related capital expenditures	$155 - $175	$155 - $175
Anchor space repositioning and redevelopmentrelated spending	$95 - $110	$95 - $110
General and administrative expenses (1)	$92 - $93	$92 - $94
Audit committee review expenses	$4	$4
Executive severance expenses	$2	$2
Straight-line rental income, amortization of above- and below-market rent and tenant inducements and straight-line ground rent expense	$47 - $49	$47 - $50
Cash interest expense	$233 - $234	$233 - $235
GAAP interest expense	$227 - $228	$227 - $229
Dispositions	$100 - $125	$75 - $175

⁽¹⁾ Does not include any expectations of additional one-time items, including, but not limited to, litigation and other non-routine legal expenses.

The following table provides a reconciliation of the range of estimated 2016 NAREIT FFO to net income attributable to common stockholders.

(Unaudited, dollars in millions, except per share amounts)
	2016E	2016E Per Common Share - Diluted
Net income attributable to common stockholders	$249 - $255	$0.81 - $0.83
Depreciation and amortization	$381	$1.25
Gain on disposition of operating properties	($10)	($0.03)
Impairment of real estate assets	$2	$0.01
NAREIT FFO	$622 - $628	$2.04 - $2.06

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450 Lexington Avenue : New York, NY 10017 : 800.468.7526

CONNECT WITH BRIXMOR

• For additional information, please visit www.brixmor.com;

• Follow Brixmor on Twitter at www.twitter.com/Brixmor;

• Find Brixmor on LinkedIn at www.linkedin.com/company/brixmor.

CONFERENCE CALL AND SUPPLEMENTAL INFORMATION

The Company will host a teleconference on Tuesday, October 25, 2016 at 10:00 AM ET.   To participate, please dial 888.317.6003 (domestic) or 412.317.6061 (international) at least ten minutes prior to the scheduled start of the call (Passcode: 2633815).  The teleconference can also be accessed via a live webcast at www.brixmor.com in the Investors section. A replay of the teleconference will be available through midnight ET on November 9, 2016 by dialing 877.344.7529 (domestic) or 412.317.0088 (international) (Passcode: 10091678) or via the web through October 25, 2017 at www.brixmor.com in the Investors section.

The Company’s Supplemental Disclosure will be posted at www.brixmor.com in the Investors section.  These materials are also available to all interested parties upon request to the Company at investorrelations@brixmor.com or 800.468.7526.

NON-GAAP DISCLOSURES

NAREIT FFO

NAREIT FFO is a supplemental non-GAAP performance measure utilized to evaluate the operating performance of real estate companies. The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net income (loss) in accordance with GAAP excluding (i) gain (loss) on disposition of operating properties, and (ii) extraordinary items, plus (iii) depreciation and amortization of operating properties, (iv) impairment of operating properties and real estate equity investments, and (v) after adjustments for joint ventures calculated to reflect funds from operations on the same basis. 

The Company presents NAREIT FFO as it considers it an important supplemental measure of its operating performance and the Company believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. The Company believes NAREIT FFO assists investors  in analyzing Brixmor’s comparative operating and financial performance because, by excluding gains and losses related to dispositions of previously depreciated operating properties, real estate-related depreciation and amortization of continuing operations and unconsolidated joint ventures and impairment of operating properties (which can vary among owners of properties in similar condition based on historical cost accounting and useful life estimates), investors can compare the operating performance of a company’s real estate between periods or as compared to different companies. 

NAREIT FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of financial performance and is not an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of liquidity.

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450 Lexington Avenue : New York, NY 10017 : 800.468.7526

Non-GAAP performance measures have limitations as they do not include all items of income and expense that affect operations and, accordingly, should always be considered as supplemental to financial results presented in accordance with GAAP. Computation of NAREIT FFO may differ in certain respects from the methodology utilized by other REITs and, therefore, may not be comparable to similarly titled measures presented by such other REITs. Investors are cautioned that items excluded from NAREIT FFO are significant components in understanding and addressing financial performance.  A reconciliation of NAREIT FFO to Net income is presented in the attached table.

Same Property NOI

Same property NOI is calculated (using properties owned for the entirety of both periods excluding properties under development or pending stabilization), as rental income (base rent, percentage rents, expense reimbursements and other property income) less rental operating expenses (operating costs, real estate taxes and provision for doubtful accounts. Same Property NOI includes unconsolidated joint venture, Montecito Marketplace, at pro rata share.  Same property NOI excludes corporate level income (including management, transaction and other fees), lease termination fees, straight-line rental income, amortization of above- and below-market rent and tenant inducements, straight-line ground rent expense and income / expense associated with the captive insurance entity.

Same property NOI is a supplemental, non-GAAP performance measure utilized to evaluate the operating performance of real estate companies and the Company believes it is frequently used by securities analysts, investors and other interested parties in understanding business and operating results regarding the underlying economics of Brixmor's business operations.

It includes only the net operating income of properties owned and stabilized for the full period presented, which eliminates disparities in net income due to the acquisition, disposition or stabilization of development properties during the period presented, and therefore, provides a more consistent metric for comparing the performance of properties. Management uses same property NOI to review operating results for comparative purposes with respect to previous periods or forecasts, and also to evaluate future prospects. Same property NOI is not intended to be a performance measure that should be regarded as an alternative to, or more meaningful than, net income (determined in accordance with GAAP) or other GAAP financial measures. Non-GAAP financial measures have limitations as they do not include all items of income and expense that affect operations, and accordingly, should always be considered as supplemental to financial results presented in accordance with GAAP.  Computation of same property NOI may differ in certain respects from the methodology utilized by other REITs and, therefore, may not be comparable to such other REITs. 

ABOUT BRIXMOR PROPERTY GROUP

Brixmor Property Group, a real estate investment trust (REIT), is a leading owner and operator of high-quality, open-air shopping centers. The Company’s more than 500 retail centers comprise 86 million square feet in market-dominant locations across the nation and are supported by a diverse mix of highly productive non-discretionary and value-oriented retailers, as well as service and entertainment users. Brixmor is committed to maximizing the value of its portfolio by prioritizing investments, cultivating relationships and capitalizing on embedded growth opportunities through driving rents, increasing occupancy and pursuing repositioning and redevelopment projects. Headquartered in New York City, Brixmor is a partner to more than 5,500 best-in-class national, regional and local tenants and is the largest landlord to The TJX Companies and The Kroger Company.

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450 Lexington Avenue : New York, NY 10017 : 800.468.7526

SAFE HARBOR LANGUAGE

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to the Company’s expectations regarding the performance of its business, its financial results, its liquidity and capital resources and other non-historical statements. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

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CONSOLIDATED BALANCE SHEETS
Unaudited, dollars in thousands, except share information
				9/30/16			12/31/15
	Assets
		Real estate
			Land	$	2,004,264		$	2,011,947
			Buildings and tenant improvements	8,012,060			7,976,529
			Construction in process	98,573			66,797
			Lease intangibles	845,093			877,577
				10,959,990			10,932,850
			Accumulated depreciation and amortization	(2,100,229		)	(1,880,685		)
		Real estate, net		8,859,761			9,052,165
		Investments in and advances to unconsolidated joint ventures		5,044			5,019
		Cash and cash equivalents		31,143			69,528
		Restricted cash		45,662			41,462
		Marketable securities		26,580			23,001
		Receivables, net of allowance for doubtful accounts of $17,831 and $16,587		176,086			180,486
		Deferred charges and prepaid expenses, net		127,201			109,149
		Other assets		41,232			17,197
	Total assets			$	9,312,709		$	9,498,007
	Liabilities
		Debt obligations, net		$	5,857,431		$	5,974,266
		Accounts payable, accrued expenses and other liabilities		566,744			603,439
	Total liabilities			6,424,175			6,577,705
	Equity
		Common stock, $0.01 par value; authorized 3,000,000,000 shares;
			304,321,127 and 299,138,450 shares outstanding	3,043			2,991
		Additional paid in capital		3,321,475			3,270,246
		Accumulated other comprehensive loss		(15		)	(2,509		)
		Distributions in excess of net income		(440,348		)	(400,945		)
	Total stockholders' equity			2,884,155			2,869,783
		Non-controlling interests		4,379			50,519
	Total equity			2,888,534			2,920,302
	Total liabilities and equity			$	9,312,709		$	9,498,007

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CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited, dollars in thousands, except per share amounts
				Three Months Ended						Nine Months Ended
				9/30/16			9/30/15			9/30/16			9/30/15
	Revenues
		Rental income		$	247,859		$	245,829		$	744,580		$	733,429
		Expense reimbursements		69,469			65,304			200,944			200,570
		Other revenues		1,249			1,892			6,214			6,430
	Total revenues			318,577			313,025			951,738			940,429
	Operating expenses
		Operating costs		31,041			27,952			97,507			93,779
		Real estate taxes		47,812			45,472			130,886			133,635
		Depreciation and amortization		98,337			102,439			294,634			315,424
		Provision for doubtful accounts		2,218			1,953			6,579			6,973
		Impairment of real estate assets		1,971			—			1,971			807
		General and administrative		21,787			22,030			69,709			73,030
	Total operating expenses			203,166			199,846			601,286			623,648
	Other income (expense)
		Dividends and interest		89			57			481			241
		Interest expense		(57,855		)	(61,567		)	(171,482		)	(186,289		)
		Gain on sale of real estate assets		2,450			—			10,232			9,224
		Gain (loss) on extinguishment of debt, net		(1,042		)	137			(949		)	922
		Other		(1,370		)	2,880			(4,258		)	(115		)
	Total other expense			(57,728		)	(58,493		)	(165,976		)	(176,017		)
	Income before equity in income of unconsolidated joint ventures			57,683			54,686			184,476			140,764
	Equity in income of unconsolidated joint ventures			122			133			348			358
	Net income			57,805			54,819			184,824			141,122
	Net (income) attributable to non-controlling interests			(313		)	(1,046		)	(2,399		)	(2,814		)
	Net income attributable to common stockholders			$	57,492		$	53,773		$	182,425		$	138,308
	Per common share:
		Net income attributable to common stockholders:
			Basic	$	0.19		$	0.18		$	0.61		$	0.46
			Diluted	$	0.19		$	0.18		$	0.61		$	0.46
		Weighted average shares:
			Basic	303,013			298,464			300,697			297,714
			Diluted	303,521			298,936			301,146			304,706

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FUNDS FROM OPERATIONS (FFO)
Unaudited, dollars in thousands, except per share amounts
			Three Months Ended							Nine Months Ended
			9/30/16				9/30/15			9/30/16			9/30/15
	Net income		$	57,805			$	54,819		$	184,824		$	141,122
		Gain on disposition of operating properties	(2,450		)		—			(10,232		)	(9,224		)
		Depreciation and amortization- real estate related- continuing operations	97,570				101,360			292,295			311,637
		Depreciation and amortization- real estate related- unconsolidated joint ventures	23				16			68			59
		Impairment of real estate assets	1,971				—			1,971			807
	NAREIT FFO		$	154,919			$	156,195		$	468,926		$	444,401
	NAREIT FFO per share/OP Unit - diluted		$	0.51			$	0.51		$	1.54		$	1.46
	Weighted average shares/OP Units outstanding - basic and diluted (1)		305,167				304,752			305,026			304,716
	Items that impact FFO comparability
		Litigation and other non-routine legal expenses	$	(614	)		$	—		$	(958	)	$	—
		Shareholder equity offering expenses	(314		)		—			(764		)	(606		)
		Transaction expenses	(85		)	—	—			(296		)	(1,487		)
		Executive equity based compensation (2)	—				—			(88		)	—
		Executive severance expenses	—				—			(2,260		)	—
		Audit committee review expenses	—				—			(3,711		)	—
		Non-recurring charge related to pre-IPO compensation programs	—				—			—			(9,875		)
		Adjustment of tax reserves for pre-IPO transactions	—				3,949			—			3,949
		Gain (loss) on extinguishment of debt, net	(1,042		)		137			(949		)	922
	Total items that impact FFO comparability		$	(2,055	)		$	4,086		$	(9,026	)	$	(7,097	)
	Items that impact FFO comparability, net per share		$	(0.01	)		$	0.01		$	(0.03	)	$	(0.02	)
	Additional Disclosures
		Straight-line rental income, net (3)	$	3,324			$	4,508		$	9,838		$	13,814
		Amortization of above- and below-market rent and tenant inducements, net (4)	9,090				9,938			28,766			34,391
		Straight-line ground rent (expense) income (5)	(78		)		11			(975		)	34
	Dividends declared per share/OP Unit		$	0.245			$	0.225		$	0.735		$	0.675
	Shares/OP Unit dividends declared		$	74,651			$	68,464		$	223,932		$	205,398
	Share/OP Unit dividend payout ratio (as % of NAREIT FFO)		48.2		%		43.8		%	47.8		%	46.2		%
(1) Basic and diluted shares/OP Units outstanding reflects an assumed conversion of vested OP Units to common stock of the Company and the vesting of certain equity awards.
(2) Represents equity based compensation expense associated with executive departures for the nine months ended September 30, 2016.
(3) Includes unconsolidated joint venture Montecito Marketplace straight-line rental income of $10 and $5 at pro rata share for the three and nine months ended September 30, 2016,
respectively; and straight-line rental expense of $5 and $8 at pro rata share for the three and nine months ended September 30, 2015, respectively.
(4) Includes unconsolidated joint venture Montecito Marketplace amortization of above- and below-market rent and tenant inducements of $7 and $22 at pro rata share for the three and nine
months ended September 30, 2016, respectively; and $8 and $24 at pro rata share for the three and nine months ended September 30, 2015, respectively.
(5) Straight-line ground rent (expense) income is included in Operating costs on the Consolidated Statements of Operations.

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SAME PROPERTY NOI ANALYSIS & RECONCILIATION OF NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
Unaudited, dollars in thousands
			Three Months Ended							Nine Months Ended
			9/30/16			9/30/15			Change	9/30/16			9/30/15			Change
	Same Property NOI Analysis (1)
	Number of properties		514			514			—	512			512			—
	Percent billed		90.6		%	90.9		%	(0.3%)	90.6		%	90.9		%	(0.3%)
	Percent leased		92.6		%	92.5		%	0.1%	92.6		%	92.5		%	0.1%
	Revenues
		Base rent	$	229,585		$	224,100			$	681,672		$	665,299
		Ancillary and other	4,494			4,899				12,210			12,975
		Expense reimbursements	69,483			65,154				199,963			199,799
		Percentage rents	1,043			1,535				5,336			5,082
			304,605			295,688			3.0%	899,181			883,155			1.8%
	Operating expenses
		Operating costs	(31,107		)	(29,210		)		(96,355		)	(94,758		)
		Real estate taxes	(47,743		)	(45,318		)		(130,018		)	(133,071		)
		Provision for doubtful accounts	(2,171		)	(1,973		)		(6,564		)	(6,858		)
			(81,021		)	(76,501		)	5.9%	(232,937		)	(234,687		)	(0.7%)
	Same property NOI		$	223,584		$	219,187		2.0%	$	666,244		$	648,468		2.7%
	Same property NOI excluding redevelopments (2)		$	214,634		$	210,210		2.1%	$	639,633		$	622,476		2.8%
	NOI margin		73.4		%	74.1		%	(0.7%)	74.1		%	73.4		%	0.7%
	Expense recovery ratio		88.1		%	87.4		%	0.7%	88.3		%	87.7		%	0.6%
	Percent contribution to same property NOI growth:
			Change			Percent Contribution				Change			Percent Contribution
		Base rent	$	5,485		2.5%				$	16,373		2.6%
		Ancillary and other	(405		)	(0.2%)				(765		)	(0.1%)
		Net recoveries	7			0.0%				1,620			0.2%
		Percentage rents	(492		)	(0.2%)				254			0.0%
		Provision for doubtful accounts	(198		)	(0.1%)				294			0.0%
						2.0%							2.7%
	Reconciliation of Net Income Attributable to Common Stockholders to Same Property NOI
	Same property NOI (1)		$	223,584		$	219,187			$	666,244		$	648,468
	Adjustments:
		Non-same property NOI	396			2,301				5,080			6,272
		Lease termination fees	1,174			1,548				7,537			2,266
		Straight-line rental income, net	3,314			4,513				9,833			13,822
		Amortization of above- and below-market rent and tenant inducements, net	9,083			9,930				28,744			34,367
		Fee Income	217			359				855			1,380
		Straight-line ground rent (expense) income	(78		)	11				(975		)	34
		Depreciation and amortization	(98,337		)	(102,439		)		(294,634		)	(315,424		)
		Impairment of real estate assets	(1,971		)	—				(1,971		)	(807		)
		General and administrative	(21,787		)	(22,030		)		(69,709		)	(73,030		)
		Total other expense	(57,728		)	(58,493		)		(165,976		)	(176,017		)
		Equity in income of unconsolidated joint ventures	122			133				348			358
		Pro rata share of same property NOI of unconsolidated joint ventures	(184		)	(201		)		(552		)	(567		)
		Net income attributable to non-controlling interests	(313		)	(1,046		)		(2,399		)	(2,814		)
	Net income attributable to common stockholders		$	57,492		$	53,773			$	182,425		$	138,308
(1) Includes unconsolidated joint venture, Montecito Marketplace, at pro rata share, except for number of properties, percent billed and percent leased which are at 100%.
(2) Excludes eight redevelopment properties.

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