Exhibit 99.2

 

Supplemental Operating and Financial Data

For the Period Ended March 31, 2015

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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

 

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				Greg R. Davis - VP, 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				12670 High Bluff Drive,
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 within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, without limitation: general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants’ financial condition, and competition from other developers, owners and operators of real estate); adverse economic or real estate developments in the retail industry or the markets in which the Company operates; increased interest rates and operating costs; decreased rental rates or increased vacancy rates; the Company’s failure to obtain necessary outside financing on favorable terms or at all; changes in the availability of additional acquisition opportunities; the Company’s inability to successfully complete real estate acquisitions or successfully operate acquired properties; the Company’s failure to qualify or maintain its status as a REIT; risks associated with the Company’s dependence on key personnel whose continued service is not guaranteed; and risks associated with downturns in domestic and local economies, and volatility in the securities markets. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission, including the Company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The Company 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

 

 

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Analyst Coverage

 

 

Company		Analyst		Contact
Barclays Capital		Ross Smotrich		(212) 526-2306
		Linda Tsai		(212) 526-9937
Cantor Fitzgerald		Evan Smith		(212) 915-1220
Hilliard Lyons		Carol Kemple		(502) 588-1839
KeyBanc		Jordan Sadler		(917) 368-2280
		Todd Thomas		(917) 368-2286
Raymond James		Paul D. Puryear		(727) 567-2253
		Collin Mings		(727) 567-2585
Sandler O’Neill + Partners		Alexander Goldfarb		(212) 466-7937
		Ryan Peterson		(212) 466-7927
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 March 31, 2015
(Dollars and share data in thousands, except per share data)
Portfolio Summary
Total Gross Leasable Square Feet (GLA)-Operating Portfolio (1)			7,145,777
Percent Leased-Operating Portfolio			94.4%
Percent Occupied-Operating Portfolio			93.1%
Annualized Base Rent (2)		$	110,296
Total no. retail leases signed or renewed			44
Total sq. ft. retail leases signed or renewed			239,058
Financial Results
Net income (loss) attributable to the common stockholders		$	17,628
Net income (loss) per diluted share		$	0.28
Funds from operations (FFO)		$	15,590
FFO per diluted share		$	0.24
Adjusted funds from operations (AFFO)		$	15,999
AFFO per diluted share		$	0.25
EBITDA		$	45,209
Assets
Gross undepreciated real estate		$	1,459,658
Gross undepreciated assets		$	1,739,871
Total liabilities to gross undepreciated assets			50.7%
Debt to gross undepreciated assets			45.4%
Capitalization
Common shares outstanding			63,403
OP units outstanding			1,020
Total common shares and OP units			64,423
Closing price at quarter end		$	14.02
Equity capitalization		$	903,210
Series A convertible preferred shares (at liquidation preference of $25.00 per share)			29,524
Series B preferred shares (at liquidation preference of $25.00 per share)			92,000
Total debt (3)			789,646
Total capitalization		$	1,814,380
Debt/total capitalization			43.5%
Debt/EBITDA			4.4
Common Stock Data
Range of closing prices for the quarter		$	13.43-14.38
Weighted average common shares outstanding - diluted (EPS)			64,987
Weighted average common shares outstanding - diluted (FFO and AFFO)			63,493
Shares of common stock outstanding			63,403

 

 

(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

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

 

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

 

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Statements of Operations

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

 

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)

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

(Dollars in thousands)

 

		Three Months Ended   March 31, 2015				Three Months Ended   December 31, 2014				Three Months Ended   September 30, 2014				Three Months Ended   June 30, 2014				Three Months Ended   March 31, 2014
Net income attributable to Excel Trust, Inc.		$	20,392			$	3,617			$	1,218			$	1,905			$	2,195
Add:
Interest expense			7,551				6,810				6,387				5,981				4,989
Depreciation and amortization			17,266				16,242				11,212				11,411				11,796
EBITDA		$	45,209			$	26,669			$	18,817			$	19,297			$	18,980

 

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Reconciliation of Net Income to FFO and AFFO

For the Period Ended March 31, 2015

(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 three months ended March 31, 2015 and 2014 is as follows:

 

		Three Months Ended   March 31, 2015				Three Months Ended   March 31, 2014
Net income (loss) attributable to the common stockholders		$	17,628			$	(549)
Add:
Non-controlling interests in operating partnership			289				(10)
Depreciation and amortization			17,266				11,796
Deduct:
Depreciation and amortization related to joint venture (1)			68				170
Gain on sale of real estate assets			(19,661)				-
Funds from operations (2)		$	15,590			$	11,407
Adjustments:
Gain on sale of equity securities			(308)				-
Charge for developer profit participation interests			327				-
Transaction costs			405				306
Deferred financing costs			567				424
Stock-based and other non-cash compensation expense			1,063				574
Straight-line effects of lease revenue			(742)				(592)
Amortization of above- and below-market leases			(618)				(138)
Non-incremental capital expenditures			(288)				(111)
Non-cash expenses (income) - including portion of joint ventures			3				(9)
Adjusted funds from operations (2)		$	15,999			$	11,861
Weighted average common shares outstanding			62,473				47,785
Add (3):
OP units			1,020				1,020
Restricted stock			-				-
Weighted average common shares outstanding - diluted (FFO and AFFO)			63,493				48,805
Funds from operations per share (diluted) (4)		$	0.24			$	0.23
Adjusted funds from operations per share (diluted) (4)		$	0.25			$	0.24
Other Information (5):
Leasing commissions paid		$	337			$	272
Tenant improvements paid		$	1,296			$	1,257

 

 

(1)

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

 

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

 

(3)

The calculation of FFO for the three months ended March 31, 2015 and 2014 include 1,020,000 OP units, which are considered antidilutive for purposes of calculating diluted earnings per share. The three months ended March 31, 2015 and 2014 exclude 225,675 and 502,476 shares of restricted stock and 2,010,735 and 3,367,200 shares of common stock, respectively, potentially issuable pursuant to the conversion feature of the preferred stock based on the “if converted” method.

 

(4)

The calculation of funds from operations per share (diluted) and adjusted funds from operations per share (diluted) for the three months ended March 31, 2015 and 2014 includes a reduction of $131,000 and $132,000, respectively, for dividends paid to shares of restricted common stock in excess of earnings.

 

(5)	Excludes development properties and shell construction costs for value-add opportunities at operating properties.

 

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Debt Summary (Consolidated)

For the Period Ended March 31, 2015

(Dollars in thousands)

 

						% Total Debt
Fixed Rate Debt(1)		$	525,601			67%
Variable Rate Debt(2)			264,045			33%
Total Debt(1)		$	789,646			100%
Debt(1)/Gross Undepreciated Assets			45.4%
						% Total Debt
Secured Debt(1)		$	190,646			24%
Unsecured Debt			599,000			76%
Total Debt		$	789,646			100%
Secured Debt to Gross Undepreciated Assets						11.0%
Maturities by Year-Secured(3)		Amount				% Total Debt				Maturities by Year-Unsecured(3)		Amount				Contractual Interest Rate		% Total Debt
2015		$	47,650			6.0%				2015(4)		$	50,000			1.3%		6.3%
2016			3,070			0.4%				2016			-
2017			42,192			5.3%				2017			-
2018			5,995			0.8%				2018			199,000			1.5%		25.2%
2019			6,390			0.8%				2019			-
2020			38,216			4.8%				2020			75,000			4.4%		9.5%
2021			1,447			0.2%				2021			-
2022			33,686			4.3%				2022			-
2023			-			0.0%				2023			25,000			5.2%		3.2%
2024			-			0.0%				2024			250,000			4.6%		31.7%
Beyond 2024			12,000			1.5%				Beyond 2024			-
Total		$	190,646			24.1%				Total			$         599,000			3.3%		75.9%
Mortgage Notes		Amount				Contractual Interest Rate		Maturity
The Promenade		$	45,645			4.8%		Nov-15
5000 South Hulen			13,110			5.6%		Apr-17
Lake Pleasant Pavilion			27,418			6.1%		Oct-17
West Broad Marketplace			3,045			2.5%		Jan-18
Rite Aid, Vestavia			785			7.3%		Oct-18
Living Spaces-Promenade			6,667			7.9%		Nov-19
West Broad Village(2)			39,700			3.3%		May-20
Downtown at the Gardens			42,276			4.6%		Jul-22
Northside Mall(2)			12,000			0.0%		Nov-35
Total			190,646			4.5%
Debt (discount) or premium			2,310
Mortgage notes, net		$	192,956

(1) Amount excludes debt discount or premium.

(2) Includes the Northside Plaza redevelopment revenue bonds to be used for the redevelopment of this property and our unsecured revolving credit facility. The revenue bonds are priced off the SIFMA index and reset weekly (the rate as of March 31, 2015 was 0.03%). The revenue bonds are secured by a $12.1 million letter of credit issued by the Company from the Company’s credit facility. The construction loan on the West Broad Marketplace property bears interest at LIBOR plus 2.30% (the rate as of March 31, 2015 was 2.49%). The $50.0 million unsecured term loan bears interest at LIBOR plus 1.15% (the rate as of March 31, 2015 was 1.33%). The unsecured revolving credit facility bears interest at LIBOR plus 0.90% to 1.70% (the rate as of March 31, 2015 was 1.48%).

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

(4) The Company entered into a $50.0 million term loan in December 2014, which bears interest at the rate of LIBOR plus a margin of 115 basis points with a maturity date of June 30, 2015. The term loan may be extended for an additional five months at the Company’s option and upon the payment of an extension fee.

 

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Common and Preferred Stock Data

For the Period Ended March 31, 2015

(In thousands, except per share data)

 

		Three Months Ended March 31, 2015				Three Months Ended December 31, 2014				Three Months Ended September 30, 2014				Three Months Ended June 30, 2014
Earning per share - share data
Weighted average common shares outstanding - diluted			64,987				60,416				60,389				48,567
Diluted common shares - EPS			64,987				60,416				60,389				48,567
Funds from operations - share data
Weighted average common shares outstanding			62,473				60,416				60,389				48,567
Weighted average OP units outstanding			1,020				1,020				1,020				1,020
Weighted average restricted stock outstanding			-				699				-				747
Total potential dilutive common shares			63,493				62,135				61,409				50,334
Total common shares (including restricted stock) outstanding			63,403				61,113				61,116				61,117
Total OP units outstanding			1,020				1,020				1,020				1,020
Total Series A convertible preferred shares outstanding			1,181				1,181				1,331				2,000
Total Series B preferred shares outstanding			3,680				3,680				3,680				3,680
Common share data
High closing share price		$	14.38			$	13.50			$	13.41			$	13.92
Low closing share price		$	13.43			$	11.93			$	11.77			$	12.32
Average closing share price		$	13.89			$	12.80			$	12.82			$	12.95
Closing price at end of period		$	14.02			$	13.39			$	11.77			$	13.33
Dividends per share - annualized		$	0.72			$	0.70			$	0.70			$	0.70
Dividend yield (based on closing share price at end of period)			5.1	%			5.2	%			5.9	%			5.3	%
Dividends per share
Common stock (EXL)		$	0.1800			$	0.1750			$	0.1750			$	0.1750
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 the Period Ended March 31, 2015

(Dollars in thousands, except price per square foot)

 

Value-add Opportunities		City		State		Estimated Opening Date(1)		GLA to be Constructed		Land(2)				Improvements				Total Carrying   Amount(3)				Remaining Estimated Cost to Complete				% GLA Leased / Committed(4)		Major Tenants
Plaza at Rockwall - Phase III		Rockwall		TX		Q4 2015		10,560		$	-			$	221			$	221			$	2,119			80%		Chico’s, Soma, James Avery
Stadium Center - Expansion		Manteca		CA		Q4 2015		12,808		$	-			$	103			$	103			$	2,697			100%		Ulta
Chimney Rock - Phase III		Odessa		TX		Q4 2015		13,500		$	-			$	124			$	124			$	2,743			100%		Petco
Total								36,868		$	-			$	448			$	448			$	7,559
Developments Under Construction		City		State		Estimated Opening Date(1)		GLA to be Constructed		Land(2)				Improvements				Total Carrying Amount(3)				Remaining Estimated Cost to Complete				% GLA Leased / Committed(4)		Major Tenants
Chimney Rock - Phase II		Odessa		TX		Q4 2015		79,626		$	2,030			$	7,627			$	9,657			$	4,009			61%		Dickey’s BBQ, Mattress Firm, Northern Tool
Southlake Park Village		Southlake (Dallas)		TX		Q2 2015		186,045		$	16,060			$	31,841			$	47,901			$	11,599			72%		Fresh Market, REI, Michael’s
West Broad Marketplace		Richmond		VA		TBD		400,000		$	20,904			$	4,180			$	25,084			$	54,416			61%		Cabela’s, Wegmans
Total								665,671		$	38,994			$	43,648			$	82,642			$	70,024
Future Developments / Land		City		State		Estimated GLA to be Constructed / Land		Estimated Start Date		Estimated Project Cost				Projected Use
Plaza at Rockwall - Phase IV		Rockwall		TX		10,500		TBD			n/a				Additional shop space
Park West Place - Expansion B		Stockton		CA		9,700		TBD			n/a				Additional shop space
Stadium Center - Expansion		Manteca		CA		8,500		TBD			n/a				Additional shop space
Chimney Rock - Phase IV		Odessa		TX		5.2 acres		TBD			n/a				Additional land to be sold or developed
Shops at Foxwood		Ocala		FL		1.0 acres		TBD			n/a				Additional land to be sold or developed
West Broad Village - Expansion B		Richmond		VA		1.2 acres		TBD			n/a				Additional land to be sold or developed
League City Town Center		League City		TX		0.9 acres		TBD			n/a				Additional land to be sold or developed
Brandywine Crossing - Phase II		Brandywine		MD		1.0 acres		TBD			n/a				Additional land to be sold or developed

 

 

(1) 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.

(2) 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.

(3) 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.

(4) 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 April 2015.

 

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Operating Portfolio Summary (Consolidated)

For the Period Ended March 31, 2015

(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 3/31/15		Percent Leased 12/31/14		Major Tenants
Operating Portfolio
West Broad Village(3)		Richmond		VA		2009		397,656		10/19/2012		$257		$170,200		76.8%		77.0%		Whole Foods, REI, HomeGoods, Dave & Buster’s, South University
Downtown at the Gardens		Palm Beach Gardens		FL		2005		339,559		10/1/2014		$413		$140,200		97.3%		99.2%		Whole Foods, Golfsmith, Urban Outfitters, Yard House, Cobb Theatres
The Shops at Fort Union		Salt Lake City		UT		1974/2007		688,549		9/26/2014		$191		$131,500		96.9%		96.9%		Walmart, Smiths (Kroger), Gordmans, Dick’s, Bed, Bath & Beyond, Babies’ R’ Us, Ross, OfficeMax, Michaels, DSW, Petco, Ulta
The Promenade(4)		Scottsdale		AZ		1999		566,663		7/11/2011		$222		$126,000		94.3%		94.2%		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		603,464		12/14/2010		$153		$92,500		99.8%		99.4%		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		100.0%		100.0%		Kohl’s, Ross, Michaels, Bed Bath & Beyond, Target (non-owned)
Brandywine Crossing(5)		Brandywine		MD		2009/2014		231,036		10/1/2010		$242		$56,000		95.3%		96.9%		Safeway, Marshalls, Jo-Ann, Target (non-owned), Costco (non-owned)
Highland Reserve		Roseville		CA		2004		191,415		12/29/2014		$274		$52,500		100.0%		98.5%		Kohl’s, Sport Chalet, PetSmart, BevMo!, and Target (non-owned)
Plaza at Rockwall		Rockwall		TX		2007/2012		432,096		6/29/2010		$118		$50,800		99.2%		99.2%		Best Buy, Dick’s, Staples, Ulta, JC Penney, Belk, HomeGoods, Jo-Ann
Riverpoint Marketplace		Sacramento		CA		2009		133,928		12/19/2014		$327		$43,800		97.0%		97.0%		Ross, Petco, Ikea (non-owned), Walmart (non-owned), and Home Depot (non-owned)
Lake Pleasant Pavilion		Phoenix (Peoria)		AZ		2007		178,376		5/16/2012		$234		$41,800		91.8%		89.0%		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		95.5%		95.5%		Ross, Jo-Ann, Office Max, Old Navy, Costco (non-owned) and Kohl’s (non-owned)
Dellagio		Orlando		FL		2009		123,318		10/19/2012		$325		$40,100		80.1%		80.6%		Flemings, Fifth Third Bank
League City Town Center		League City (Houston)		TX		2008		194,736		8/1/2013		$203		$39,500		96.4%		96.4%		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		89.1%		88.5%		Publix, Dollar Tree, Stein Mart, Rave Motion Pictures
The Crossings of Spring Hill		Nashville (Spring Hill)		TN		2008		219,880		12/19/2011		$141		$31,000		95.5%		94.8%		SuperTarget (non-owned), Kohl’s (non-owned), PetSmart, Ross, Bed Bath & Beyond
Tracy Pavilion		Tracy		CA		2006		162,463		1/24/2013		$189		$30,700		95.7%		95.7%		Marshalls, Ross, PetSmart, Staples, Ulta
Red Rock Commons		St. George		UT		2012		134,152		4/23/2010		$214		$28,700		100.0%		99.1%		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		La Plata		MD		2008		115,972		10/1/2010		$215		$24,900		81.8%		81.8%		Giant Food, Lowe’s (non-owned)
EastChase Market Center		Montgomery		AL		2008		181,431		2/17/2012		$136		$24,700		98.9%		98.9%		Dick’s, Jo-Ann, Bed Bath & Beyond, Michaels, Old Navy, Costco (non-owned)
Chimney Rock		Odessa		TX		2012		204,270		8/30/2012		$117		$23,800		97.5%		97.5%		Academy Sports, Best Buy, Marshalls, Kirkland’s, Ulta
Excel Centre		San Diego		CA		1999		82,157		4/23/2010		$288		$23,700		90.4%		90.4%		Kaiser Permanente, Excel Trust, UBS
5000 South Hulen		Fort Worth		TX		2005		86,833		5/12/2010		$252		$21,900		95.4%		98.6%		Barnes & Noble, Old Navy
Anthem Highlands		Las Vegas (Henderson)		NV		2006		118,763		12/1/2011		$147		$17,500		91.3%		91.3%		Albertsons, CVS, Wells Fargo, Bank of America
Centennial Crossroads		Las Vegas		NV		2003		105,415		11/22/2013		$156		$16,400		87.3%		87.3%		Vons, Chase Bank
LA Fitness		San Diego		CA		2006		38,000		10/4/2013		$376		$14,300		100.0%		100.0%		LA Fitness
Pavilion Crossing		Brandon		FL		2012		68,400		10/1/2012		$192		$13,100		98.2%		100.0%		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		85.8%		85.8%		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		87.6%		87.6%		Walgreens
Five Forks Place		Simpsonville		SC		2002		61,191		4/23/2010		$127		$7,800		98.5%		100.0%		Publix
Mariner’s Point		St. Marys		GA		2001		45,215		7/20/2010		$146		$6,600		84.1%		91.2%		Shoe Show, Super Wal-Mart (non-owned)
Newport Towne Center		Newport		TN		2006		60,100		4/23/2010		$108		$6,500		88.3%		82.6%		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		83.9%		89.2%		Dollar Tree, Super Wal-Mart (non-owned)
Cedar Square		Duncanville (Dallas)		TX		2014		14,490		11/4/2013		$77		$1,116		100.0%		100.0%		Walgreens
Total Operating Portfolio		Total						7,145,777				$201		$1,507,266		94.4%		93.9%

 

 

(1) Year built represents the year in which construction was completed or the date of the last major renovation.

(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) Includes additional land parcels acquired in November 2014 with an initial cost basis of approximately $11.5 million.

 

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Summary of Retail Leasing Activity (Consolidated)

For the Period Ended March 31, 2015

 

 

 

(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 March 31, 2015

(In thousands, except per share amounts)

 

		Three Months Ended     March 31, 2015				Three Months Ended     March 31, 2014				Percentage     Change
Same Property Portfolio (1)
Number of properties			33				33
Rentable square feet			5,751,681				5,751,681
Percent leased			93.6%				92.9%				0.8%
Percentage of total operating portfolio			80.5%				100.0%
Total revenues		$	28,630			$	28,551				0.3%
Total expenses			7,313				7,367				-0.7%
Same property - net operating income (GAAP basis)		$	21,317			$	21,184				0.6%
Less: straight line rents, fair-value lease revenue, lease incentive revenue			(392)				(574)				-31.7%
Same property - net operating income (cash basis)		$	20,925			$	20,610				1.5%

 

 

(1)

Includes all properties purchased prior to January 1, 2014 (three month analysis). Excludes adjustments relating to prior year reimbursements. Also excludes our Lowe’s properties, which was sold in October 2014 and our Cedar Square property, in which the inline retail portion of the property was sold in November 2014.

 

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Major Tenants By GLA (Consolidated)

For the Period Ended March 31, 2015

(Dollars in thousands, except rent per square foot)

 

Total GLA-Operating Portfolio(1)						7,145,777
		Tenants		# Stores		Square Feet		% of Total GLA
1		Kohl’s		3		264,904		3.7%
2		Publix		5		245,351		3.4%
3		Ross Dress For Less		8		229,126		3.2%
4		TJX Companies		7		191,207		2.7%
5		Dick’s Sporting Goods		4		189,336		2.6%
6		Bed Bath & Beyond		6		170,099		2.4%
7		Lowe’s		1		154,794		2.2%
8		PetSmart		8		150,798		2.1%
9		Jo-Ann		6		139,922		2.0%
10		Living Spaces(2)		1		133,120		1.9%
		Total Top 10 GLA		49		1,868,657		26.2%

Major Tenants By ABR (Consolidated)

 

Annualized Base Rent-Operating Portfolio (3)												$            110,296
		Tenants		# Stores		Square Feet		Rent Per Sq. Ft.				ABR				% ABR
1		Ross Dress For Less		8		229,126		$	12.73			$	2,916			2.6%
2		Publix		5		245,351			11.15			$	2,735			2.5%
3		Kohl’s		3		264,904			9.41			$	2,493			2.3%
4		PetSmart		8		150,798			15.96			$	2,407			2.2%
5		Dick’s Sporting Goods		4		189,336			12.65			$	2,395			2.2%
6		Edwards Theatres (Regal Cinemas)		1		100,551			23.35			$	2,348			2.1%
7		Whole Foods		2		102,742			21.42			$	2,201			2.0%
8		TJX Companies		7		191,207			10.66			$	2,037			1.8%
9		Michaels		6		134,772			13.51			$	1,821			1.7%
10		Kaiser Permanente		1		38,432			45.97			$	1,767			1.6%
		Total Top 10 Annualized Rent		45		1,647,219		$	14.04			$	23,120			21.0%

(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 March 31, 2015

 

 

		Occupied Retail GLA				% of Occupied Retail GLA		Total Occupied Retail ABR				% of Total Occupied Retail ABR
Occupied Retail Anchor GLA(3)			4,567,575			69.4%		$	56,887			52.8%
Occupied Retail Inline GLA(3)			2,012,599			30.6%			50,907			47.2%
Total Occupied Retail GLA			6,580,174			100.0%		$	107,794			100.0%

 

Year				Anchor GLA Expiring				% of Total Occupied Retail GLA		Anchor Rent Per Sq. Ft.				Inline GLA Expiring		% of Total Occupied Retail GLA		Inline Rent Per Sq. Ft.				Total Occupied Retail GLA Expiring		% of Total Occupied Retail GLA		Total Occupied Retail ABR Expiring				% of Total Retail ABR		Average Rent Per Sq. Ft.
2015		(4)			112,405			1.7%		$	13.43			227,141		3.5%		$	22.44			339,546		5.2%		$	6,605			6.1%		$	19.45
2016					197,167			3.0%		$	11.68			245,385		3.7%		$	25.76			442,552		6.7%		$	8,624			8.0%		$	19.49
2017					100,652			1.5%		$	14.06			294,911		4.5%		$	23.60			395,563		6.0%		$	8,375			7.8%		$	21.17
2018					307,656			4.7%		$	14.04			269,819		4.1%		$	24.31			577,475		8.8%		$	10,878			10.1%		$	18.84
2019					685,232			10.4%		$	14.72			326,973		5.0%		$	23.98			1,012,205		15.4%		$	17,926			16.6%		$	17.71
2020					691,664			10.5%		$	14.73			173,981		2.6%		$	24.42			865,645		13.2%		$	14,437			13.4%		$	16.68
2021					222,282			3.4%		$	13.07			103,134		1.6%		$	23.50			325,416		4.9%		$	5,328			4.9%		$	16.37
2022					324,317			4.9%		$	12.78			65,133		1.0%		$	21.62			389,450		5.9%		$	5,552			5.2%		$	14.26
2023					124,354			1.9%		$	12.85			82,017		1.2%		$	29.66			206,371		3.1%		$	4,030			3.7%		$	19.53
2024					284,865			4.3%		$	10.29			129,623		2.0%		$	25.70			414,488		6.3%		$	6,262			5.8%		$	15.11
Beyond 2024					1,516,981			23.1%		$	10.21			94,482		1.4%		$	45.34			1,611,463		24.5%		$	19,777			18.3%		$	12.27
Total					4,567,575			69.4%		$	12.45			2,012,599		30.6%		$	25.29			6,580,174		100.0%		$	107,794			100.0%		$	16.38

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

(2) Same property GLA percent leased (sequential) excludes any properties that were reclassified to the operating portfolio, acquired, or disposed of during the 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 March 31, 2015

(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

MDC

October 19, 2012

The Fountains at Bay Hill

Orlando

FL

103,767

$39,205

$23,805

50%

92.4%

$

3,016

(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(2)		March 31, 2015				Company Pro Rata																December 31, 2014				Company Pro Rata
Assets:
Investments in Real Estate		$	36,238			$	18,119															$	36,387			$	18,194
Cash & cash equivalents			922				461																868				434
Other assets			2,045				1,023																2,102				1,051
Total assets		$	39,205			$	19,603															$	39,357			$	19,679
Liabilities and members’ equity:
Mortgage notes payable and secured loan		$	23,805			$	11,903															$	23,952			$	11,976
Other liabilities			1,886				943																1,857				929
Members’ equity			13,514				6,757																13,548				6,774
Total liabilities and equity		$	39,205			$	19,603															$	39,357			$	19,679
Company’s investment in unconsolidated entities						$	6,671																			$	6,689
Income Statement		Three Months Ended March 31, 2015				Company Pro Rata																Three Months Ended March 31, 2014				Company Pro Rata
Total revenues		$	904			$	452															$	1,355			$	560
Expenses:
Property operating expenses			150				75																307				107
General and administrative			-				-																-				-
Depreciation and amortization			252				126																593				230
Total expenses			402				201																900				337
Interest expense			(235)				(117)																(476)				(154)
Net income (loss)		$	267			$	134															$	(21)			$	69
Company’s income (loss) from equity in unconsolidated entities(2)						$	134																			$	69

(2) The Company’s income from equity in unconsolidated entities for the three months ended March 31, 2014 includes the Company’s proportionate shares of operating losses from its investment in La Costa Town Center prior to its sale on October 9, 2014. The investment is no longer included in the Company’s financial statements as of March 31, 2015.

 

Unconsolidated Debt(3):
Fountains at Bay Hill:		March 31, 2015
Proportionate share of debt:		$	11,903
Maturity date:			December 1, 2021
Fixed interest rate:			3.75%

(3) The outstanding mortgage note was refinanced in October 2014, which increased the notional amount, extended the maturity date and fixed the interest rate at 3.75%.

 

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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