Exhibit 99.2

 

Supplemental Operating and Financial Data

For the Period Ended September 30, 2013

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Table of Contents

 

 

 

*Note: Financial and portfolio information reflects the consolidated operations of the

company and excludes unconsolidated entities unless otherwise noted.

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Company Overview

Excel Trust, Inc. (“Excel Trust”) is a retail focused REIT that primarily targets community and power centers, grocery anchored neighborhood centers and freestanding retail properties. Excel Trust has elected to be treated as a REIT, for U.S. federal income tax purposes. Excel Trust trades publicly on the NYSE under the symbol “EXL”.

 

Corporate Headquarters				Other Offices
Excel Trust, Inc.				Atlanta, GA		Salt Lake City, UT
17140 Bernardo Center Dr., Ste 300				Dallas, TX		Scottsdale, AZ
San Diego, CA 92128				Orlando, FL		Stockton, CA
Tel: 858-613-1800				Richmond, VA
Email: info@exceltrust.com
Website: www.exceltrust.com
Executives & Senior Management
Gary B. Sabin - Chairman & CEO				Spencer G. Plumb - President & COO
James Y. Nakagawa - CFO, Treasurer				Mark T. Burton - CIO & SVP, Acquisitions
S. Eric Ottesen - SVP, General Counsel				William J. Stone - SVP, Development
Matthew S. Romney - SVP, Capital Markets
Board of Directors
Gary B. Sabin (Chairman)				Spencer G. Plumb
Mark T. Burton				Bruce G. Blakley
Burland B. East III				Robert E. Parsons, Jr.
Warren R. Staley
Transfer Agent and Registrar				Corporate Counsel
Broadridge Corporate Issuer Solutions, Inc.				Latham & Watkins
PO Box 1342				12636 High Bluff Drive, Suite 400
Brentwood, NY 11717				San Diego, CA 92130
Tel: 877-830-4936				Tel: 858-523-5400
Email: shareholder@broadridge.com
Website: www.broadridge.com

Reported results and other information herein are preliminary and not final until the filing of Excel Trust’s report on Form 10-Q or Form 10-K with the Securities and Exchange Commission and, therefore, remain subject to adjustment.

Forward-Looking Statements

This document contains forward-looking statements that are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks include, without limitation: adverse economic or real estate developments in the retail industry or the markets in which Excel Trust operates; defaults on or non-renewal of leases by tenants; increased interest rates and operating costs; decreased rental rates or increased vacancy rates; Excel Trust’s failure to obtain necessary outside financing on favorable terms or at all; changes in the availability of additional acquisition opportunities; Excel Trust’s inability to successfully complete real estate acquisitions or successfully operate acquired properties and Excel Trust’s failure to qualify or maintain its status as a REIT. For a further list and description of such risks and uncertainties that could impact Excel Trust’s future results, performance or transactions, see the reports filed by Excel Trust with the Securities and Exchange Commission, including its final prospectus relating to its initial public offering, quarterly reports on Form 10-Q and annual report on Form 10-K. Excel Trust disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

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Property Locations

 

 

 

4

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Analyst Coverage

 

 

Company		Analyst		Contact
Barclays Capital		Ross Smotrich		(212) 526-2306
		Linda Tsai		(212) 526-9937
Bank of America Merrill Lynch		Craig Schmidt		(646) 855-3640
		Katharine Hutchins		(646) 855-1681
Cantor Fitzgerald		David Toti		(212) 915-1219
		Evan Smith		(212) 915-1220
KeyBanc		Jordan Sadler		(917) 368-2280
		Todd Thomas		(917) 368-2286
Raymond James		Paul D. Puryear		(727) 567-2253
		R.J. Milligan		(727) 567-2660
Sandler O’Neill + Partners		Alexander Goldfarb		(212) 466-7937
		Andrew Schaffer		(212) 466-8062
Stifel, Nicolaus		Nathan Isbee		(443) 224-1346
		Jennifer Hummert		(443) 224-1288
Wells Fargo		Jeff Donnelly		(617) 603-4262
		Tamara Fique		(443) 263-6568

 

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Summary Financial and Portfolio Data (Consolidated)

 

For the Period Ended September 30, 2013
(Dollars and share data in thousands, except per share data)
Portfolio Summary
Total Gross Leasable Square Feet (GLA)-Operating Portfolio (1)			5,956,824
Percent Leased-Operating Portfolio			93.2%
Percent Occupied-Operating Portfolio			92.2%
Annualized Base Rent (2)		$	85,432
Total no. retail leases signed or renewed			44
Total sq. ft. retail leases signed or renewed			156,072
Financial Results
Net income attributable to the common stockholders		$	10,739
Net income per diluted share		$	0.22
Funds from operations (FFO)		$	11,024
FFO per diluted share		$	0.22
Adjusted funds from operations (AFFO)		$	11,685
AFFO per diluted share		$	0.24
EBITDA		$	29,977
Assets
Gross undepreciated real estate		$	1,092,359
Gross undepreciated assets		$	1,256,531
Total liabilities to gross undepreciated assets			45.1%
Debt to gross undepreciated assets			39.8%
Capitalization
Common shares outstanding			48,173
OP units outstanding			1,225
Total common shares and OP units			49,398
Closing price at quarter end		$	12.00
Equity capitalization		$	592,776
Series A convertible preferred shares (at liquidation preference of $25.00 per share)			50,000
Series B preferred shares (at liquidation preference of $25.00 per share)			92,000
Total debt (3)			500,475
Total capitalization		$	1,235,251
Debt/total capitalization			40.5%
Debt/EBITDA			4.2
Common Stock Data
Range of closing prices for the quarter		$	11.51-13.92
Weighted average common shares outstanding - diluted (EPS)			47,497
Weighted average common shares outstanding - diluted (FFO and AFFO)			48,894
Shares of common stock outstanding			48,173

 

 

(1)

Includes retail and office gross leasable area, but excludes gross leasable area from developments under construction and any planned development.

 

(2)

Annualized Base Rent excludes rental revenue from non-stabilized development properties.

 

(3)

Excludes debt discount or premium.

 

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Balance Sheets

EXCEL TRUST, INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

 

The notes in the Form 10-Q or 10-K are an integral part of these condensed consolidated financial statements.

(1) Other assets is primarily comprised of deposits, notes receivable, prepaid expenses and furniture, fixtures, and equipment

 

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Statements of Operations

EXCEL TRUST, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data and dividends per share)

 

The notes in the Form 10-Q or 10-K are an integral part of these condensed consolidated financial statements.

 

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Reconciliation of Net Income to EBITDA

(Earnings before Interest, Taxes, Depreciation & Amortization)

(Dollars in thousands)

Excel Trust, Inc.’s EBITDA and a reconciliation to net income (loss) for the periods presented is as follows:

 

		Three Months Ended   September 30, 2013				Three Months Ended   June 30, 2013				Three Months Ended   March 31, 2013				Three Months Ended   December 31, 2012				Three Months Ended   September 30, 2012
Net income attributable to Excel Trust, Inc.		$	13,483			$	3,367			$	296			$	556			$	501
Add:
Interest expense			4,728				4,517				4,798				4,727				4,169
Depreciation and amortization(1)			11,766				11,149				12,390				10,588				8,602
EBITDA		$	29,977			$	19,033			$	17,484			$	15,871			$	13,272

(1) Total consolidated depreciation and amortization, a portion of which is included in discontinued operations on the statements of operations.

 

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Reconciliation of Net Income to FFO and AFFO

For the Periods Ended June 30, 2013

(In thousands, except per share data)

Excel Trust, Inc.’s FFO and AFFO available to common stockholders and operating partnership unitholders and a reconciliation to net income(loss) for the six months ended June 30, 2013 and 2012 is as follows:

 

		Three Months Ended   September  30, 2013				Three Months Ended   September  30, 2012						Nine Months Ended   September 30, 2013				Nine Months Ended   September 30, 2012
Net income (loss) attributable to the common stockholders		$	10,739			$	(2,243)					$	8,914			$	(6,302)
Add:
Non-controlling interests in operating partnership			279				(73)						240				(230)
Preferred stock dividends			-				-
Depreciation and amortization(1)			11,766				8,602						35,306				25,432
Deduct:
Depreciation and amortization related to joint venture(2)			214				(41)						879				(165)
Gain on acquisition of real estate and sale of land parcel			-				-						-				-
Gain on sale of real estate assets			(11,974)				-						(11,974)				-
Funds from operations (3)		$	11,024			$	6,245					$	33,365			$	18,735
Adjustments:
Transaction costs			600				637						1,046				1,186
Deferred financing costs			387				451						1,300				1,410
Stock-based and other non-cash compensation expense			583				817						1,713				2,406
Changes in fair value of contingent consideration			(10)				(121)						(1,568)				(121)
Changes in fair value of financial instruments			-				(61)						(230)				(1,112)
Straight-line effects of lease revenue			(664)				(632)						(2,588)				(2,009)
Amortization of above- and below-market leases			(14)				158						204				(12)
Non-incremental capital expenditures			(227)				(233)						(577)				(372)
Non-cash expenses (income) related to joint venture			6				-						(275)				-
Adjusted funds from operations (3)		$	11,685			$	7,261					$	32,390			$	20,111
Weighted average common shares outstanding			47,497				33,294						46,674				32,616
Add (4):
OP units			1,225				1,057						1,230				1,218
Restricted stock			172				286						206				323
Contingent consideration related to business combinations			-				90										91
LTIP restricted stock			-				-						-				-
Common stock issuable upon conversion of preferred stock			-				-						-				-
Weighted average common shares outstanding - diluted (FFO and AFFO)			48,894				34,727						48,110				34,248
Funds from operations per share (diluted)(5)		$	0.22			$	0.18					$	0.69			$	0.54
Adjusted funds from operations per share (diluted)(5)		$	0.24			$	0.21					$	0.67			$	0.58
Other Information (6):
Leasing commissions paid		$	396			$	151					$	1,366			$	268
Tenant improvements paid		$	3,391			$	511					$	6,483			$	858

 

 

(1)	Total consolidated depreciation and amortization, a portion of which is included in discontinued operations on the statements of operations (for the three and nine months ended June 30, 2013 and 2012).

 

(2)

Includes a reduction for the portion of consolidated depreciation and amortization expense that would be allocable to non-controlling interests in the operating partnership and an increase for the the Company’s portion of depreciation and amortization expense related to its investment in the unconsolidated La Costa Town Center and The Fountains at Bay Hill properties.

 

(3)	FFO and AFFO are described on the Definitions page.

 

(4)

The three months ended September 30, 2013 and 2012 include 1,397,000 and 1,433,000 OP units, shares of restricted stock and additional common shares contingently issuable related to business combinations, which are considered antidilutive for purposes of calculating diluted earnings per share. The three months ended September 30, 2013 and 2012 also exclude 3,356,178 and 3,333,400 shares of common stock, respectively, potentially issuable pursuant to the conversion feature of the preferred stock based on the “if converted” method. The nine months ended September 30, 2013 and 2012 include 1,436,000 and 1,632,000 OP units, shares of restricted stock and additional common shares contingently issuable related to business combinations, which are considered antidilutive for purposes of calculating diluted earnings per share. The nine months ended September 30, 2013 and 2012 also exclude 3,341,076 and 3,333,400, respectively, shares of common stock potentially issuable pursuant to the conversion feature of the preferred stock based on the “if converted” method.

 

(5)

The calculation of funds from operations per share (diluted) and adjusted funds from operations per share (diluted) for the three months ended September 30, 2013 and 2012 includes a reduction of $109,000 and $144,000, respectively, for dividends paid to shares of restricted common stock in excess of earnings. The calculation of funds from operations per share (diluted) and adjusted funds from operations per share (diluted) for the nine months ended September 30, 2013 and 2012 includes a reduction of $326,000 and $432,000, respectively, for dividends paid to shares of restricted common stock in excess of earnings.

 

(6)	Excludes development properties.

 

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Debt Summary (Consolidated)

For the Period Ended September 30, 2013

(Dollars in thousands)

 

						% Total Debt
Fixed Rate Debt(1)		$	225,205			45%
Variable Rate Debt(2)			275,270			55%
Total Debt(1)		$	500,475			100%
Debt(1)/Gross Undepreciated Assets			39.8%
						% Total Debt
Secured Debt(1)(2)		$	306,975			61%
Unsecured Debt			193,500			39%
Total Debt		$	500,475			100%
Secured Debt to Gross Undepreciated Assets						24.4%
Maturities by Year-Secured(3)		Amount				% Total Debt				Maturities by Year-Unsecured(3)		Amount				% Total Debt
2013(4)		$	57,094			11.4%				2013		$	-			0.0%
2014(5)			91,130			18.2%				2014			-			0.0%
2015			47,920			9.6%				2015			-			0.0%
2016			2,364			0.5%				2016(6)			193,500			38.7%
2017			41,415			8.3%				2017			-			0.0%
2018			2,196			0.4%				2018			-			0.0%
2019			5,615			1.1%				2019			-			0.0%
2020			37,419			7.5%				2020			-			0.0%
2021			628			0.1%				2021			-			0.0%
2022			675			0.1%				2022			-			0.0%
Beyond 2022			20,519			4.1%				Beyond 2022			-			0.0%
Total		$	306,975			61.3%				Total		$	193,500			38.7%
Mortgage Notes		Amount				Contractual Interest Rate		Maturity
Park West Place(4)		$	55,800			3.7%		Dec-13
Edwards Theatres, San Marcos			11,605			6.7%		Feb-14
Red Rock Commons(5)			13,970			1.8%		Mar-14
Excel Centre			12,084			6.1%		May-14
Merchant Central			4,395			5.9%		Jul-14
Gilroy Crossing			46,037			5.0%		Oct-14
The Promenade			48,396			4.8%		Oct-15
5000 South Hulen			13,481			5.6%		Apr-17
Lake Pleasant Pavilion			27,933			6.1%		Oct-17
Rite Aid, Vestavia			1,058			7.3%		Oct-18
Sears-Promenade			7,268			7.9%		Nov-19
West Broad Village(7)			39,700			3.3%		May-20
Lowe’s, Shippensburg			13,248			7.2%		Oct-31
Northside Mall			12,000			0.1%		Nov-35
Total			306,975			4.6%
Debt (discount) or premium			1,390
Mortgage notes, net		$	308,365

(1) Includes a mortgage note at our Park West Place property, which bears interest at LIBOR plus 2.25%. However, the Company has executed two interest rate swaps equal to the principal balance, which effectively fix the interest rate at 3.66% for the duration of the term. Amount excludes debt discount or premium.

(2) Includes the Northside Plaza redevelopment revenue bonds to be used for the redevelopment of this property, a construction loan at our Red Rock Commons property, the mortgage note at our Park West Place Property and our unsecured revolving credit facility. The revenue bonds are priced off the SIFMA index and reset weekly (the rate as of September 30, 2013 was 0.08%). The revenue bonds are secured by a $12.1 million letter of credit issued by the Company from the Company’s credit facility. The interest rate on the construction loan bears interest at LIBOR plus 1.65% to 2.25% (rate as of September 30, 2013 was 1.84%).

(3) Includes monthly payments on outstanding principal as well as principal due at maturity.

(4) The Park West Place mortgage note matures in December 2013, but may be extended for an additional year at the Company’s election, through December 2014, after satisfying certain conditions and payment of an extension fee. Contractual Interest Rate includes the effect of interest rate swaps.

(5) The Red Rock construction loan matures in March 2014, but may be extended for an additional year at the Company’s election, through March 2015, after satisfying certain conditions and payment of an extension fee.

(6) Reflects the amount outstanding on the unsecured revolving credit facility at quarter end. The credit facility was amended on October 8, 2013, increasing the borrowing capacity to $300.0 million, reducing the interest rate and extending the maturity date to April 6, 2018.

(7) The West Broad Village mortgage was refinanced in April 2013 at a fixed rate of 3.3%, which also extended the maturity date through May 2020 (approximately $10.3 million of the outstanding balance at March 31, 2013 was prepaid in connection with the refinancing).

 

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Common and Preferred Stock Data

For the Period Ended September 30, 2013

(In thousands, except per share data)

 

		Three Months Ended    September 30, 2013				Three Months Ended    June 30, 2013				Three Months Ended    March 31, 2013				Three Months Ended    December 31, 2012
Earning per share - share data
Weighted average common shares outstanding - diluted			47,669				47,150				45,352				40,830
Diluted common shares - EPS			47,669				47,150				45,352				40,830
Funds from operations - share data
Weighted average common shares outstanding			47,497				47,150				45,352				40,830
Weighted average OP units outstanding			1,225				1,225				1,241				1,272
Weighted average restricted stock outstanding			172				213				234				254
Dilutive effect of contingent consideration related to business combinations			-				-				-				20
Dilutive effect of LTIP restricted stock outstanding			-				-				190				-
Total potential dilutive common shares			48,894				48,588				47,017				42,376
Total common shares (including restricted stock) outstanding			48,173				48,026				47,033				44,906
Total OP units outstanding			1,225				1,225				1,225				1,245
Total Series A convertible preferred shares oustanding			2,000				2,000				2,000				2,000
Total Series B preferred shares outstanding			3,680				3,680				3,680				3,680
Common share data
High closing share price		$	13.92			$	15.23			$	13.82			$	12.91
Low closing share price		$	11.51			$	12.12			$	12.34			$	11.38
Average closing share price		$	12.61			$	14.08			$	12.89			$	12.15
Closing price at end of period		$	12.00			$	12.81			$	13.65			$	12.67
Dividends per share - annualized		$	0.68			$	0.68			$	0.68			$	0.65
Dividend yield (based on closing share price at end of period)			5.7%				5.3%				5.0%				5.1%
Dividends per share
Common stock (EXL)		$	0.1700			$	0.1700			$	0.1700			$	0.1625
Series A Convertible Perpetual Preferred stock		$	0.4375			$	0.4375			$	0.4375			$	0.4375
Series B Preferred stock		$	0.5078			$	0.5078			$	0.5078			$	0.5078

 

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Acquisitions & Developments

For Fiscal Year 2013

(Dollars in thousands, except price per square foot)

 

Acquisition Property Name		City		State		Year Built (1)		Total  GLA (2)		Acquisition Date				Price Sq. Ft.				Initial Cost Basis (3)				Major Tenants
Tracy Pavilion		Tracy		CA		2006		162,463			1/24/2013			$	189			$	30,738				Marshalls, Ross, PetSmart, Staples, Ulta
Stadium Center		Manteca		CA		2006		160,726			7/1/2013			$	256			$	41,150				Ross, Jo-Ann, Office Max, Old Navy,  Costco (non-owned) and Kohl’s (non-owned)
League City Town Center		League City (Houston)		TX		2008		194,736			8/1/2013			$	203			$	39,500				Ross, TJ Maxx, Michael’s, PetSmart, Staples, SuperTarget (non-owned) and  Home Depot (non-owned)
The Promenade - Living Spaces		Scottsdale		CA		1999		133,120			8/27/2013			$	120			$	16,000				Living Spaces
Total								651,045						$	196			$	127,388
Developments Under Construction		City		State		Estimated Opening Date(4)		GLA to be Constructed		Land(5)				Improvements				Total Carrying   Amount(6)				Remaining Estimated Cost to Complete				% GLA Leased / Committed(7)		Major Tenants
Chimney Rock - Phase II		Odessa		TX		TBD		149,517		$	2,030			$	2,685			$	4,715			$	10,210			38%		Jo-Ann
Red Rock Commons		St. George		UT		Q2 2014		20,444		$	-			$	875			$	875			$	2,367			69%		Café Rio
Park West Place		Stockon		CA		Q2 2014		5,500		$	-			$	473			$	473			$	395			68%		Sally Beauty
Total								175,461		$	2,030			$	4,033			$	6,063			$	12,972
Future Developments / Land		City		State		Estimated GLA to be Constructed / Land		Estimated Start Date		Estimated Project Cost				Projected Use
Plaza at Rockwall - Phase III		Rockwall		TX		22,700		Q4 2013		$	2,248				Additional shop space
Park West Place		Stockton		CA		9,700		TBD			NA				Additional shop space
Shops at Foxwood		Ocala		FL		1.0 acres		TBD			NA				Additional land to be sold or developed
Chimney Rock		Odessa		TX		4.2 acres		TBD			NA				Additional land to be sold or developed
West Broad Village		Richmond		VA		2.2 acres		TBD			NA				Additional land to be sold or developed

 

 

(1) Year built represents the year in which construction was completed.

(2) Total GLA represents total gross leasable area owned by the Company at the property (includes GLA of buildings on ground lease).

(3) The initial cost basis is subject to change based on the final property valuation and may differ from amounts reported in prior periods.

(4) Opening Date represents the date at which the Company estimates that the majority of the gross leasable area will be open for business. A property is reclassified from development to the operating portfolio at the earlier of (i) 85.0% occupancy or (ii) one year from completion and delivery of the space.

(5) The Company has not allocated a separate value to land parcels at certain properties for developments that represent only a small portion of the overall property.

(6) Total Carrying Amount includes land value (where applicable), whereas Construction In Progress (CIP) values for development properties as listed in the Company’s SEC filings excludes land values.

(7) Includes square footage of buildings leased to tenants (including square footage of buildings on outparcels owned by the Company and ground leased to tenants) as well as signed non-binding letters of intent as of October 2013.

 

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Portfolio Summary (Consolidated)

For the Period Ended September 30, 2013

(Dollars in thousands, except price per square foot)

 

Property Name		City		State		Year Built(1)		Total GLA(2)				Acquisition Date		Price Sq. Ft.		Initial Cost Basis		Percent Leased 9/30/2013		Percent Leased 6/30/2013		Major Tenants
Operating Portfolio
West Broad Village(3)		Richmond		VA		2009			396,975			10/19/2012		$257		$170,200		78.8%		76.3%		Whole Foods, REI, HomeGoods, Dave & Buster’s, South University
The Promenade(4)		Scottsdale		AZ		1999			566,663			7/11/2011		$222		$126,000		94.0%		97.2%		Nordstrom Rack, Trader Joe’s, OfficeMax, PetSmart, Old Navy, Michael’s, Stein Mart, Cost Plus, Living Spaces, Lowe’s (non-owned)
Park West Place		Stockton		CA		2005			600,562			12/14/2010		$154		$92,500		99.6%		99.6%		Lowe’s, Kohl’s, Sports Authority, Jo-Ann, Ross, PetSmart, Office Depot, Target (non-owned)
Gilroy Crossing		Gilroy		CA		2004			325,431			4/5/2011		$210		$68,400		98.7%		98.1%		Kohl’s, Ross, Michaels, Bed Bath & Beyond, Target (non-owned)
Promenade Corporate Center		Scottsdale		AZ		2004			256,182			1/23/2012		$207		$53,000		78.9%		83.6%		Fitch, Healthcare Trust of America, Regus, Meridian Bank
Plaza at Rockwall		Rockwall		TX		2007/2012			432,131			6/29/2010		$118		$50,800		98.4%		98.4%		Best Buy, Dick’s, Staples, Ulta, JC Penney, Belk, HomeGoods, Jo-Ann
Brandywine Crossing		Washington Metro (Brandywine)		MD		2009			198,384			10/1/2010		$224		$44,500		96.1%		97.1%		Safeway, Marshalls, Jo-Ann, Target (non-owned), Costco (non-owned)
Lake Pleasant Pavilion		Phoenix (Peoria)		AZ		2007			178,376			5/16/2012		$234		$41,800		88.4%		94.5%		Target (non-owned), Marshalls, Bed Bath & Beyond, BevMo!, Tilly’s, Kirkland’s, The Dress Barn
Stadium Center		Manteca		CA		2006			160,726			7/1/2013		$256		$41,150		96.3%		n/a		Ross, Jo-Ann, Office Max, Old Navy, Costco (non-owned) and Kohl’s (non-owned)
Dellagio		Orlando		FL		2009			123,198			10/19/2012		$325		$40,100		93.3%		90.6%		Flemings, Fifth Third Bank
League City Town Center		League City (Houston)		TX		2008			194,736			8/1/2013		$203		$39,500		100.0%		n/a		Ross, TJ Maxx, Michael’s, PetSmart, Staples, SuperTarget (non-owned) and Home Depot (non-owned)
Vestavia Hills City Center		Birmingham (Vestavia Hills)		AL		2002			391,899			8/30/2010		$89		$34,900		82.2%		82.2%		Publix, Dollar Tree, Stein Mart, Rave Motion Pictures
The Crossings of Spring Hill		Nashville (Spring Hill)		TN		2008			219,842			12/19/2011		$141		$31,000		98.0%		96.9%		SuperTarget (non-owned), Kohl’s (non-owned), PetSmart, Ross, Bed Bath & Beyond
Tracy Pavilion		Tracy		CA		2006			162,463			1/24/2013		$189		$30,738		91.4%		92.4%		Marshalls, Ross, PetSmart, Staples, Ulta
Red Rock Commons		St. George		UT		2012			118,593			**		$242		$28,700		100.0%		100.0%		Dick’s, PetSmart, Old Navy, Gap Outlet, Ulta
Edwards Theatres		San Diego (San Marcos)		CA		1999			100,551			3/11/2011		$261		$26,200		100.0%		100.0%		Edwards Theatres (a subsidiary of Regal Cinemas)
Rosewick Crossing		Washington Metro (La Plata)		MD		2008			115,972			10/1/2010		$215		$24,900		85.2%		85.2%		Giant Food, Lowe’s (non-owned)
EastChase Market Center		Montgomery		AL		2008			181,431			2/17/2012		$136		$24,700		98.9%		97.4%		Dick’s, Jo-Ann, Bed Bath & Beyond, Michaels, Old Navy, Costco (non-owned)
Chimney Rock		Odessa		TX		2012			151,339			8/30/2012		$157		$23,800		97.8%		97.8%		Academy Sports, Best Buy, Marshalls, Kirkland’s, Ulta
Excel Centre		San Diego		CA		1999			82,157			**		$288		$23,700		86.8%		85.3%		Kaiser Permanente, Excel Trust, UBS
5000 South Hulen		Fort Worth		TX		2005			86,833			5/12/2010		$252		$21,900		94.9%		94.9%		Barnes & Noble, Old Navy
Lowe’s		Shippensburg		PA		2008			171,069			6/22/2010		$103		$17,600		100.0%		100.0%		Lowe’s
Anthem Highlands		Las Vegas (Henderson)		NV		2006			118,763			12/1/2011		$147		$17,500		89.2%		86.9%		Albertsons, CVS, Wells Fargo, Bank of America
Pavilion Crossing		Brandon		FL		2012			68,400			10/1/2012		$192		$13,100		96.2%		94.4%		Publix
Shops at Foxwood		Ocala		FL		2010			78,660			10/19/2010		$160		$12,600		90.8%		90.8%		Publix, McDonald’s (non-owned)
Northside Plaza		Dothan		AL		2010			171,670			11/15/2010		$70		$12,400		94.8%		94.8%		Publix, Hobby Lobby, Books A Million
Meadow Ridge Plaza		Orlando		FL		2007			45,199			10/19/2012		$215		$9,700		88.9%		86.1%		Fifth Third Bank
Shoppes of Belmere		Orlando		FL		2008			26,502			10/19/2012		$366		$9,700		100.0%		100.0%		CVS
Lake Burden Shoppes		Orlando		FL		2008			20,598			10/19/2012		$413		$8,500		100.0%		100.0%		Walgreens
Five Forks Place		Simpsonville		SC		2002			61,191			**		$127		$7,800		98.0%		98.0%		Publix
Mariner’s Point		St. Marys		GA		2001			45,215			7/20/2010		$146		$6,600		91.2%		95.6%		Shoe Show, Super Wal-Mart (non-owned)
Newport Towne Center		Newport		TN		2006			60,100			**		$108		$6,500		98.0%		94.3%		Stage Stores (DBA Goody’s), Dollar Tree, Super Wal-Mart (non-owned)
Merchant Central		Milledgeville		GA		2004			45,013			6/30/2010		$136		$6,100		89.2%		83.9%		Dollar Tree, Super Wal-Mart (non-owned)
Total Operating Portfolio		Total							5,956,824					$184		$1,166,588		93.2%		93.1%
Developments Under Construction		City		State		Estimated Opening Date(5)		GLA to be Constructed				Land Value(6)		Improvements		Total Carrying Amount  (7)		% GLA Leased / Committed (8)		% GLA Leased / Committed(8)		Major Tenants
Chimney Rock - Phase II		Odessa		TX		TBD			149,517			2,030		2,685		$4,715		38%		33%		Jo-Ann
Red Rock Commons		St. George		UT		Q2 2014			20,444			0		875		$875		69%		n/a		Café Rio
Park West Place		Stockon		CA		Q2 2014			5,500			0		473		$473		68%		45%		Sally Beauty
		Total							175,461			2,030		4,033		$6,063
		Total Portfolio (7)							6,132,285							$1,172,651

 

 

** Acquired from Predecessor as part of the Company’s formation transactions.

(1) Year built represents the year in which construction was completed.

(2) Total GLA represents total gross leasable area owned by the Company at the property (includes GLA of buildings on ground lease).

(3) The West Broad Village property is a mixed use shopping center that includes retail, office and 339 apartment units on the upper levels of the shopping center. However, the property’s total GLA listed herein excludes square footage of the apartments. As such, the approximate initial cost basis of the apartments of $68 million has been deducted from the price per square foot calculation.

(4) Includes an additional land parcel acquired in August 2013 with an initial cost basis of approximately $16.0 million.

(5) Opening Date represents the date at which the Company estimates that the majority of the gross leasable area will be open for business. A property is reclassified from development to the operating portfolio at the earlier of (i) 85.0% occupancy or (ii) one year from completion and delivery of the space.

(6) The Company has not allocated a separate value to land parcels at certain properties for developments that represent only a small portion of the overall property.

(7) Total Carrying Amount includes land value (where applicable), whereas Construction In Progress (CIP) values for development properties as listed in the Company’s SEC filings excludes land values.

(8) Includes square footage of buildings leased to tenants (including square footage of buildings on outparcels owned by the Company and ground leased to tenants) as well as signed non-binding letters of intent as of October 2013.

 

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Summary of Retail Leasing Activity (Consolidated)

For the Period Ended September 30, 2013

 

 

 

(1) Excludes month-to-month leases and leases involving office GLA.

(2) Lease rate represents final cash rent from the previous lease and the initial cash rent from the new lease and excludes the impact of changes in lease rates during the term.

(3) Represents leases signed on spaces for which there was a tenant within the last 12 months. Excludes leases signed at development properties.

 

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Same Property Analysis

For the Period Ended September 30, 2013

(In thousands, except per share amounts)

 

		Three Months Ended    September 30, 2013				Three Months Ended    September 30, 2012				Percentage     Change				Nine Months Ended    September 30, 2013				Nine Months Ended    September 30, 2012				Percentage     Change
Same Property Portfolio (1)
Number of properties			23				23								19				19
Rentable square feet			4,473,563				4,473,563								3,537,008				3,537,008
Percent leased			93.8%				94.6%				-0.9%				94.6%				94.7%				-0.1%
Percentage of total operating portfolio			75.1%				93.3%								59.4%				73.7%
Rental revenue		$	16,533			$	16,246				1.8%			$	40,722			$	40,804				-0.1%
Tenant recoveries			3,811				3,925				-2.9%				9,979				9,351				6.7%
Other income			56				89				-37.1%				60				86				-30.2%
Total revenues		$	20,400			$	20,260				0.7%			$	50,811			$	50,241				1.1%
Maintenance and repairs			1,342				1,351				-0.7%				3,061				3,180				-3.7%
Real estate taxes			2,645				2,454				7.8%				6,212				5,858				6.0%
Management fees			445				433				2.8%				1,062				1,029				3.2%
Other operating expenses			1,231				956				28.8%				2,226				2,168				2.7%
Total expenses			5,663				5,194				9.0%				12,561				12,235				2.7%
Same property - net operating income (GAAP basis)		$	14,737			$	15,066				-2.2%			$	38,250			$	38,006				0.6%
Less: straight line rents, fair-value lease revenue, lease incentive revenue			64				(304)				-121.1%				(551)				(1,378)				-60.0%
Same property - net operating income (cash basis)		$	14,801			$	14,762				0.3%			$	37,699			$	36,628				2.9%

(1)

Includes all properties purchased prior to July 1, 2012, including the Plaza at Rockwall property (a portion of which was under development through Q2 2012) for the three months ended September 30, 2013. Includes all properties purchased prior to January 1, 2012, for the nine months ended September 30, 2013. Excludes our La Costa Town Center property, which was contributed to a joint venture in September 2012.

 

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Major Tenants By GLA (Consolidated)

For the Period Ended September 30, 2013

(Dollars in thousands, except rent per square foot)

 

Total GLA-Operating Portfolio(1)						5,956,824
		Tenants		# Stores		Square Feet		% of Total GLA
1		Lowe’s		2		325,863		5.5%
2		Publix		5		245,351		4.1%
3		Ross Dress For Less		7		201,168		3.4%
4		TJX Companies		7		194,207		3.3%
5		Kohl’s		2		176,656		3.0%
6		Dick’s Sporting Goods		3		140,018		2.4%
7		Jo-Ann		6		139,922		2.3%
8		Living Spaces(2)		1		133,120		2.2%
9		Bed Bath & Beyond		5		131,864		2.2%
10		PetSmart		7		131,691		2.2%
		Total Top 10 GLA		45		1,819,860		30.6%

Major Tenants By ABR (Consolidated)

 

Annualized Base Rent-Operating Portfolio (3)												$            85,432
		Tenants		# Stores		Square Feet		Rent Per Sq. Ft.				ABR				% ABR
1		Publix		5		245,351		$	11.15			$	2,734			3.2%
2		Ross Dress For Less		7		201,168		$	11.35			$	2,283			2.7%
3		Lowe’s		2		325,863		$	6.74			$	2,195			2.6%
4		Edwards Theatres (Regal Cinemas)		1		100,551		$	21.72			$	2,184			2.6%
5		TJX Companies		7		194,207		$	10.22			$	1,984			2.3%
6		PetSmart		7		131,691		$	14.66			$	1,931			2.3%
7		Dick’s Sporting Goods		3		140,018		$	12.69			$	1,776			2.1%
8		Kaiser Permanente		1		38,432		$	42.99			$	1,652			1.9%
9		Jo-Ann		6		139,922		$	11.37			$	1,591			1.9%
10		Bed Bath & Beyond		5		131,864		$	10.93			$	1,441			1.7%
		Total Top 10 Annualized Rent		44		1,649,067		$	11.99			$	19,771			23.1%

(1) Includes gross leasable area associated with buildings on ground lease.

(2) Living Spaces is sub-leasing the building from Sears.

(3) Annualized Base Rent does not include rental revenue from multi-family properties and is further described on the Definitions page.

 

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Expiration Schedule (Consolidated)

For the Period Ended September 30, 2013

 

 

		Occupied Retail GLA				% of Occupied Retail GLA		Total Occupied Retail ABR				% of Total Occupied Retail ABR
Occupied Retail Anchor GLA(3)			3,629,154			69.5%		$	41,522			52.4%
Occupied Retail Inline GLA(3)			1,589,446			30.5%			37,740			47.6%
Total Occupied Retail GLA			5,218,600			100.0%		$	79,262			100.0%

 

Year				Anchor GLA Expiring				% of Total Retail GLA		Anchor Rent Per Sq. Ft.				Inline GLA Expiring		% of Total Retail GLA		Inline Rent Per Sq. Ft.				Total Occupied Retail GLA Expiring		% of Total Retail GLA		Total Occupied Retail ABR Expiring				% of Total Retail ABR		Average Rent Per Sq. Ft.
2013		(4)			13,916			0.3%		$	12.15			53,129		1.0%		$	22.31			67,045		1.3%		$	1,354			1.7%		$	20.20
2014					110,579			2.1%		$	13.60			218,624		4.2%		$	22.50			329,203		6.3%		$	6,422			8.1%			19.51
2015					448,563			8.6%		$	13.52			224,505		4.3%		$	22.91			673,068		12.9%		$	11,209			14.1%			16.65
2016					184,021			3.5%		$	9.39			204,744		3.9%		$	24.10			388,765		7.4%		$	6,662			8.4%			17.14
2017					51,839			1.0%		$	14.21			203,394		3.9%		$	23.25			255,233		4.9%		$	5,464			6.9%			21.41
2018					318,514			6.1%		$	13.97			168,859		3.2%		$	23.40			487,373		9.3%		$	8,400			10.6%			17.24
2019					461,499			8.8%		$	13.80			126,900		2.4%		$	23.31			588,399		11.3%		$	9,326			11.8%			15.85
2020					174,498			3.3%		$	18.32			75,088		1.4%		$	24.91			249,586		4.8%		$	5,067			6.4%			20.30
2021					96,163			1.8%		$	4.68			72,852		1.4%		$	18.62			169,015		3.2%		$	1,806			2.3%			10.69
2022					312,047			6.0%		$	12.49			56,383		1.1%		$	20.17			368,430		7.1%		$	5,035			6.4%			13.67
Beyond 2022					1,457,515			27.9%		$	8.91			184,968		3.5%		$	29.59			1,642,483		31.5%		$	18,517			23.4%			11.27
Total					3,629,154			69.5%		$	11.45			1,589,446		30.5%		$	23.69			5,218,600		100.0%		$	79,262			100.0%		$	15.19

(1) Retail figures exclude the Excel Centre and Promenade Corporate Center office properties.

(2) Same property GLA % leased (sequential) excludes any properties that were reclassified to the operating portfolio, acquired or disposed of during the current quarter.

(3) Anchor Tenants and Inline Tenants are described on the Definitions page.

(4) Includes month-to-month leases and ground leases, but excludes percentage rent.

 

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Unconsolidated Investments

For the Period Ended September 30, 2013

(Dollars in thousands)

 

Financial Information

Leasing Information

Investment Partner

Formation/Acquisition Date

Property

City

State

Total   GLA(1)

Total Assets

Total Debt

Ownership Interest

Percent Leased

ABR

GEM

September 7, 2012

La Costa Town Center

Carlsbad

CA

121,185

$25,139

$14,100

20%

68.0%

$1,595

MDC

October 19, 2012

The Fountains at Bay Hill

Orlando

FL

103,767

$40,452

$23,535

50%

100.0%

$3,088

(1) Total GLA represents total gross leasable area owned by the Company at the property (includes GLA of buildings on ground lease).

Summary Financial Information:

 

 

Balance Sheet		September 30, 2013				Company Pro Rata																December 31, 2012				Company Pro Rata
Assets:
Investments in Real Estate		$	60,551			$	23,269															$	61,156			$	23,553
Cash & cash equivalents			370				184																224				111
Other assets			4,670				1,802																6,756				2,500
Total assets		$	65,591			$	25,255															$	68,136			$	26,164
Liabilities and members’ equity:
Mortgage notes payable and secured loan		$	37,635			$	14,588															$	37,962			$	14,751
Other liabilities			10,935				5,180																12,300				5,566
Members’ equity			17,021				5,487																17,874				5,847
Total liabilities and equity		$	65,591			$	25,255															$	68,136			$	26,164
Company’s investment in unconsolidated entities						$	8,371																			$	8,654
Income Statement(2)		Three Months Ended September 30, 2013				Company Pro Rata																Nine Months Ended September 30, 2013				Company Pro Rata
Total revenues		$	1,408			$	575															$	5,514			$	1,952
Expenses:
Property operating expenses			304				108																968				329
General and administrative			118				24																495				102
Depreciation and amortization			695				272																2,998				1,055
Total expenses			1,117				404																4,461				1,486
Interest expense			(485)				(159)																(1,455)				(479)
Net income (loss)		$	(194)			$	12															$	(402)			$	(13)
Company’s loss from equity in unconsolidated entities						$	12																			$	(13)

(2) Represents results since the formation of the La Costa joint-venture partnership on September 7, 2012 and the purchase of the Fountains at Bay Hill property on October 19, 2012.

 

Unconsolidated Debt:
La Costa Town Center		September 30, 2013
Proportionate share of debt:		$	2,820
Maturity date:			October 1, 2014
Current interest rate:			5.9%
Fountains at Bay Hill:		September 30, 2013
Proportionate share of debt:		$	11,768
Maturity date:			April 2, 2015
Current interest rate:			3.4%

 

19

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Definitions

Adjusted Funds From Operations (AFFO): Adjusted Funds From Operations (AFFO) is a non-GAAP financial measure we believe is a useful supplemental measure of our performance. We compute AFFO by adding to FFO the non-cash compensation expense, amortization of prepaid financing costs and non-recurring transaction costs, and other one-time items, then subtracting straight-line rents, amortization of above and below market leases and non-incremental capital expenditures. Our computation may differ from the methodology for calculating AFFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. AFFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of Excel Trust’s financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of Excel Trust’s liquidity, nor is it indicative of funds available to fund Excel Trust’s cash needs, including Excel Trust’s ability to pay dividends or make distributions.

Anchor Tenant: A tenant who occupies 10,000 square feet or more.

Annualized Base Rent: Annualized Base Rent is obtained by annualizing the cash rental rate (excluding reimbursements and percentage rent) for the final month of a reporting period. Annualized Base Rent does not include rental revenue from multi-family properties.

EBITDA: Earnings (excluding preferred stock dividends) before interest, taxes, depreciation and amortization.

Funds From Operations (FFO): Excel Trust considers FFO an important supplemental measure of its operating performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year-over-year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income.

Excel Trust computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT. As defined by NAREIT, FFO represents net income (loss) (computed in accordance with generally accepted accounting principles, or GAAP), excluding real estate-related depreciation and amortization, impairment charges and net gains (losses) on the disposition of real estate assets and after adjustments for unconsolidated partnerships and joint ventures. Excel Trust’s computation may differ from the methodology for calculating FFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO does not represent amounts available for management’s discretionary use because of needed capital service obligations, or other commitments and uncertainties. FFO should not be considered as an alternative to net income (loss) replacement or expansion, debt (computed in accordance with GAAP) as an indicator of Excel Trust’s financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of Excel Trust’s liquidity, nor is it indicative of funds available to fund Excel Trust’s cash needs, including Excel Trust’s ability to pay dividends or make distributions.

Inline Tenant: Any tenant who does not qualify as an anchor tenant.

Leased: A space is considered leased when both Excel Trust and the tenant have executed the lease agreement.

Occupied: A space is considered occupied when the tenant has access to the space and revenue recognition has commenced (includes month-to-month tenants). If a tenant has vacated a space and Excel Trust has agreed to terminate the lease, the space is considered unoccupied as of the date of execution of the amended lease agreement.

 

Page 20