SPRING SUMMER 2016 INVESTOR PRESENTATION

Transcription

1 SPRING SUMMER 2016 INVESTOR PRESENTATION

2 INVESTOR PRESENTATION SPRING SUMMER 2016 THE SHOPS AT OLD ORCHARD, WEST BLOOMFIELD, MI CORPORATE OVERVIEW AND STRATEGY 2

3 STRENGTHENED MANAGEMENT TEAM Envisioning the Future of Retail Today DENNIS GERSHENSON President & Chief Executive Officer GEOFF BEDROSIAN Chief Financial Officer JOHN HENDRICKSON Chief Operating Officer Over 30 years of Real Estate Experience 3

4 CORPORATE OVERVIEW AND STRATEGY We invest in large, multi-anchored, and urban-oriented shopping centers tenanted by best-in-class retailers that generate sustainable increases in cash flow. We promote operating excellence and a disciplined approach to capital allocation with a focus on long-term NAV growth. We add value through tactical and strategic redevelopments that generate solid returns on invested capital. We manage a conservative capital structure to maintain liquidity and flexibility through all economic cycles and that supports dividend growth. 4

5 FIVE-YEAR PORTFOLIO EVOLUTION Total Number of Properties Wholly-Owned Shopping Centers PORTFOLIO 73 CURRENT PORTFOLIO PORTFOLIO 69 CURRENT PORTFOLIO 91.5% 2010 PORTFOLIO Leased Rate 94.7% CURRENT PORTFOLIO Average Anchors per center 2010 PORTFOLIO per center CURRENT PORTFOLIO Average Rent per Square Foot $ PORTFOLIO As of March 31, $13.34 CURRENT PORTFOLIO 5

6 OUR TOP TWENTY CENTERS PROVIDE A SOLID FOUNDATION FOR FUTURE GROWTH [1] Includes shadow anchors. Without shadow anchors, average size is 340,000 square feet and average number of anchors is 7. 6

7 WE PLAN TO EXPAND IN THE TOP MSAs IN STATES WHERE WE CURRENTLY OPERATE RPT s Top 10 Markets = 80% of Annualized Base Rent Primarily first-ring top 40 MSA submarket locations. Strong in-fill markets provide the opportunity for both tactical and strategic redevelopment as tenancies look to locate at our centers. RPT s top 10 markets provide the opportunity for future growth supported by strong regional leasing and asset management teams. Note: 5-mile trade area. 7

8 INVESTOR PRESENTATION SPRING SUMMER 2016 FRONT RANGE VILLAGE, FORT COLLINS, CO PORTFOLIO STRATEGY 8

9 OUR STRATEGIC FOCUS IS TO INCREASE THE VALUE OF OUR SHOPPING CENTERS Operating Excellence Objectives: Execute a bottom-line, financially-oriented business model. Produce sustainable FFO Growth of approximately 4-5% for the foreseeable future. Generate same-center growth of 3.0% - 4.5%, with redevelopment. Generate same-center growth of 2.0% - 3.0%, excluding redevelopment. Value Creation: Continue to execute on value-add redevelopments of $65 - $80 million each year that produce 9% - 10% ROI. Double digit rent increases on small shop tenancies. Implement multi-phase, large scale strategic redevelopments at a number of our shopping centers to solidify regional dominance. Capital Recycling: Continue to sell non-core assets to increase portfolio quality and generate capital for strategic investments, including value-add improvements in the core portfolio as well as selective acquisitions. 9

10 WE ARE TRANSFORMING OUR PORTFOLIO THROUGH A STRATEGIC CAPITAL RECYCLING PLAN Criteria Acquisitions: Multi-anchor often with market leading grocer High barrier-to-entry trade areas Market expansion opportunities to drive efficiencies Typically have value-add opportunities Dispositions: Non-core markets and properties Smaller centers Limited growth properties Results Regional dominant centers that produce sustainable growth in NOI Best-in-class retailers provide recession resistant cash flow High-quality properties that generate higher NOI and NAV Number of Properties (including JVs) 28 Shopping Centers 37 Shopping Centers [1] Owned GLA 3.9 million square feet 8.4 million square feet Average Rent, psf $10.40 $13.97 [2] Average Household Income $68,000 $86,000 Average Center Size 136,000 square feet 270,000 square feet Total Proceeds/Investment $275 million $1.3 billion [1] Includes joint venture acquisitions. [2] Excludes land leases. 10

11 WE BELIEVE LARGE, MULTI-ANCHOR CENTERS PROVIDE BOTH STABILITY AND GROWTH METRIC Scale MULTI-ANCHOR COMMUNITY SHOPPING CENTERS >35 Acres and >350,000 Square Feet Credit Quality >85% of ABR from National and Regional Tenants Anchor Exposure Minimal Risk from Loss of a Single Anchor Growth Opportunities Expansion and Densification Opportunities Merchandise Mix Dynamic Draw Regional 11

12 OUR CENTERS ARE PREDOMINANTLY ANCHORED BY LEADING GROCERS AS WELL AS NECESSITY BASED AND VALUE RETAILERS Single Grocery Anchor Center 6 Centers 4% 1% Single Anchor Center 1 Center Multi-Anchor with Grocery Component 37 Centers 64% 31% Multi-Anchor without Grocery Component 24 Centers Multi-anchor centers provide convenience, variety and flexibility for the consumer, and in turn, stability for the shopping center. Note: Percentage of total annualized base rent. 12

13 MARKET LEADING GROCERY TENANTS of our ABR comes from Multi- Anchor Shopping Centers with a 64% Grocery Component % of ABR National 34% Regional 19% Specialty 11% TOTAL 64% Strong grocer sales = $510 per square foot 13

14 OUR TOP TENANT ROSTER REPRESENTS A DIVERSIFIED LINE-UP OF BEST-IN-CLASS NATIONAL RETAILERS 14

15 OUR FOUR-POINT MANAGEMENT PHILOSOPHY STRATEGICALLY POSITIONS OUR CENTERS IN A DYNAMIC RETAIL LANDSCAPE 15

16 INVESTOR PRESENTATION SPRING SUMMER 2016 WOODBURY LAKES, WOODBURY, MN GROWTH STRATEGY 16

17 WE WILL CONTINUE TO GROW NAV BY MAXIMIZING THE VALUE OF OUR SHOPPING CENTER PORTFOLIO RPT s 20 Largest Properties = >50% of ABR / Avg. cap rate of ~6.0% Provide the greatest opportunity for tactical and strategic value-add redevelopment. Future acquisitions will include centers that support our goal of creating unique places with regional draws in top markets. Properties with long-term growth profiles, strong demographics and embedded value-add redevelopment opportunities = 25% - 35% of ABR Low growth or fully-valued properties = 10% - 15% of ABR The Company plans to sell $100 - $125 million of non-core assets in Proceeds will be used to fund the Company s redevelopment activities and reduce debt. 17

18 A SOLID PIPELINE OF IN-PROCESS REDEVELOPMENT PROJECTS WILL DELIVER VALUE FOR OUR SHAREHOLDERS 9 CENTERS UNDER REDEVELOPMENT FULL-YEAR STABILIZATION $75.4M TOTAL COST 9% - 10% INCREMENTAL RETURN Over 50% of our properties have some form of value-add opportunity = at least $65-80 million annually. Property Location Projected Stabilization Estimated Project Costs Deerfield Towne Center Mason, OH 2017 $7.9 million Hunter s Square Farmington Hills, MI 2016 $6.6 million Mission Bay Boca Raton, FL 2016 $10.3 million Shoppes of Lakeland Lakeland, FL 2017 $1.2 million Spring Meadows Toledo, OH 2016/2017 $11.9 million The Shoppes at Fox River Waukesha, WI 2017 $17.9 million The Shops on Lane Avenue Upper Arlington, OH 2017 $1.8 million Town & Country Crossing Town & Country, MO 2016/2017 $5.7 million West Oaks Novi, MI 2016 $12.1 million TOTAL $75.4 million 18

19 TOWN & COUNTRY (Town & Country, MO) Tactical In-Process Redevelopment Location: Desirable sub-market of St. Louis, Missouri. Average 5-Mile Household Income: $118,000. Average 5-Mile Population: 170,000. Re-Anchoring and Expansion Opportunity: Center re-anchoring and expansion to include two new high-quality national anchors. Execution: Adding 31,000 square foot Stein Mart on undeveloped pad site and a 20,000 square foot Home Goods in vacant/relocated in-line space. Created Promenade shopping district featuring restaurants and upscale shopping. In 2013, RPT added a 9,000 square foot Cooper s Hawk Restaurant. NET VALUE CREATED Incremental NOI [1] Cap Rate Contraction [2] Total $2.2 Million 2.0 Million $4.2 Million [1] Value of incremental NOI adjusted for redevelopment capital of $5.7 million. [2] Assumes a 25 BP decrease in cap rate. 19

20 MISSION BAY PLAZA (Boca Raton, FL) Tactical In-Process Redevelopment Location: Desirable Boca Raton market. Average 5-Mile Household Income: $87,196. Average 5-Mile Population: 173,721. Re-anchoring and Expansion Opportunity: Expansion of successful anchor and replacement of underperforming tenancy. Transitioning community center to regional dominant multi-anchor center. Execution: Expanding LA Fitness by 6,000 square feet to accommodate successful proto-type. Replacing under-performing Toys R Us with a 46,000 square foot Dick s Sporting Goods. Creating entertainment and restaurant corridor. NET VALUE CREATED Incremental NOI [1] Cap Rate Contraction [2] Total $1.9 Million 4.4 Million $6.3 Million [1] Value of incremental NOI adjusted for redevelopment capital of $10.3 million. [2] Assumes a 25 BP decrease in cap rate. 20

21 WEST OAKS (Novi, MI) Tactical In-Process Redevelopment Location: Affluent, growing sub-market in Metropolitan Detroit. Average 5-Mile Household Income: $101,000. Average 5-Mile Population: 154,000. Re-anchoring and Expansion Opportunity: Expand shopping center, right-size and re-tenant anchor space, and relocate high-performing retailers. Execution: Expanding center by 15,000 square feet and downsized Gander Mountain to accommodate new Nordstrom Rack, only their second store in Metropolitan Detroit. Negotiated early termination of Best Buy for the addition of the first Container Store in Michigan. Relocating strong performing David s Bridal. Generate new sales of $15 million annually. 10% increase in rental rates projected on 21,000 square feet of lease roll-over through NET VALUE CREATED Incremental NOI [1] Cap Rate Contraction [2] Total $8.4 Million 3.3 Million $11.7 Million [1] Value of incremental NOI adjusted for redevelopment capital of $12.1 million. [2] Assumes a 25 BP decrease in cap rate. 21

22 HUNTER S SQUARE (Farmington Hills, MI) Tactical In-Process Redevelopment Location: Affluent metropolitan Detroit sub-market. Average 5-Mile Household Income: $110,000. Average 5-Mile Population: 169,000. Re-anchoring Opportunity: Fill underperforming and vacant anchors with two best-in-class national retailers. Execution: Adding leading national tenants Saks OFF 5 th and DSW. Generate new sales of $10 million annually. 15% increase in rental rates projected on lease rollover of 74,000 square feet through NET VALUE CREATED Incremental NOI [1] Cap Rate Contraction [2] Total $5.7 Million 2.9 Million $8.6 Million [1] Value of incremental NOI adjusted for redevelopment capital of $6.6 million. [2] Assumes a 25 BP decrease in cap rate. 22

23 THE SHOPPES AT FOX RIVER (Waukesha, WI) Tactical In-Process Redevelopment Location: High-growth sub-market of Milwaukee, Wisconsin. Average 5-Mile Household Income: $78,000. Average 5-Mile Population: 91,000. Expansion Opportunity: Multiple phased expansion adding over 250,000 square feet of new GLA. Execution: Phase I development of T.J. Maxx, ULTA, Rue 21 and Charming Charlie on adjacent land purchased as part of original acquisition. Phase II expansion Hobby Lobby. Phase III anchored by Ross Dress for Less will add over 100,000 additional square feet. NET VALUE CREATED Incremental NOI [1] Cap Rate Contraction [2] Total $6.1 Million 1.9 Million $8.0 Million [1] Value of incremental NOI adjusted for redevelopment capital of $17.9 million. [2] Assumes a 25 BP decrease in cap rate. 23

24 STRATEGICALLY REPOSITIONING REGIONAL DOMINANT SHOPPING CENTERS FOR FUTURE GROWTH Future of Retail: Densification Retail Mix Placemaking Community Perfectly Positioned To Execute On Strategic Development The acquisition of large, multi-anchored and urban-oriented shopping centers has seeded our strategic redevelopment pipeline, which presents the opportunity to enhance unique regional destinations. Our larger legacy shopping centers with significant parking fields present an opportunity for densification and expansion. 24

25 ENHANCING REGIONAL DOMINANT CENTERS ACQUIRED IN 2013 AND 2014 THROUGH STRATEGIC REDEVELOPMENT $322M TOTAL INVESTMENT Bridgewater Falls - Hamilton, OH Cincinnati #28 MSA MAJOR TENANTS: $16.00 AVERAGE RENT PER SQUARE FOOT 1.5M OWNED GLA Deerfield Towne Center Mason, OH Cincinnati #28 MSA MAJOR TENANTS: Front Range Village Fort Collins, CO Denver #21 MSA MAJOR TENANTS: $80K TRADE AREA INCOME Woodbury Lakes Woodbury, MN Minneapolis/St. Paul #16 MSA MAJOR TENANTS: 25

26 DEERFIELD TOWNE CENTER (Mason, OH) Strategic In-Process Redevelopment Location: Prosperous sub-market of Cincinnati, Ohio. Average 5-Mile Household Income: $111,000. Average 5-Mile Population: 143,000. Expansion Opportunity: Densification of site creating exciting town square area as well as lease-up of desirable lifestyle retail space. Opportunity to add retail/office/residential. Execution: Phase I densification of site to include 15,000 square feet of new GLA, site improvements, and upgrades to 64,000 square feet of shop area. Addition of new Crunch Fitness in 20,000 square feet in NET VALUE CREATED Incremental NOI [1] Cap Rate Contraction [2] Total $3.8 Million 4.1 Million $7.9 Million [1] Value of incremental NOI adjusted for redevelopment capital of $7.9 million. [2] Assumes a 25 BP decrease to cap rate. 26

27 FRONT RANGE VILLAGE Multi-phase Conceptual Plan Multi-Phase Opportunities Include: Site densification, including new retail, office and the potential for multifamily. Optimization of village area into one-of-a kind regional shopping destination. Significant ancillary rental growth. Redevelopment will be completed in phases. 27

28 WOODBURY LAKES Multi-phase Conceptual Plan Multi-Phase Opportunities Include: Addition of new anchors and entertainment component. Beautification and densification. Significant residual rent growth. Redevelopment will be completed in phases. 28

29 INVESTOR PRESENTATION SPRING SUMMER 2016 BRIDGEWATER FALLS, HAMILTON, OH FINANCIAL MARKERS AND GUIDANCE 29

30 FIVE YEARS OF PORTFOLIO ENHANCEMENT PRODUCING EVER-IMPROVING METRICS New COO and CFO as well as reorganization of asset management teams focused on operating excellence, driving financial performance and growth in NAV positions the Company for future success. 5 YEARS OF SAME-CENTER NOI GROWTH 5 YEARS OF INCREASING OPERATING FFO W/O LAND SALES = 8.9% CAGR 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.4% 3.3% 3.0% 3.3% 3.9% [1] 2.3% $1.40 $1.30 $1.20 $1.10 $1.00 $0.90 $0.80 $0.95 $1.04 $1.13 $1.26 $ % $ % $ % $ GUIDANCE = 3.0% - 4.0% 2016 GUIDANCE = $ $1.38 [1] includes redevelopment 30

31 SAME-CENTER NOI GROWTH Contractual Rent Steps Average annual rent steps typically 1-3%. Rent Growth Approximately 10-15% of the portfolio GLA turns in a year, with rent growth of ~10%. Redevelopment Miscellaneous Assumes $20-$25 million of completed redevelopment projects each year. Other Income Other items include percentage rent and ancillary income. SUSTAINABLE SAME CENTER NOI GROWTH 3.0% 4.5% 31

32 2016 GUIDANCE 2016 FFO and Operating FFO per diluted share, as well as certain other key measures: Reported Funds From Operations $ $1.40 Less: Gain on Land Sales $ $0.02 Operating Funds from Operations $ $1.38 Same-Center NOI Increase with Redevelopment Same-Center NOI Increase without Redevelopments Dispositions Acquisitions General and Administrative Expense 3.0% - 4.0% 2.0% - 3.0% $100 million - $125 million Opportunistic $22 million - $23 million Debt to EBITDA 6.2x 6.4x The Company's 2016 guidance excludes any unforeseen one-time items including provisions for impairment, transactions costs, gain or loss on extinguishment of debt and other items. 32

33 INVESTOR PRESENTATION SPRING SUMMER 2016 HUNTER S SQUARE, FARMINGTON HILLS, MI CAPITAL MANAGEMENT 33

34 INVESTMENT GRADE PROFILE RPT S balance sheet is comparable to its peers with investment grade ratings. LOW LEVERAGE FLEXIBLE STRUCTURE Net Debt / Market Capitalization 40% Unencumbered Assets / Unsecured Debt 2.6X Net Debt + Preferred / Market Capitalization 44% Fixed-Rate Debt / Total Debt 90% Net Debt to EBITDA 6.6X Secured Debt / Total Capitalization 11% STRONG COVERAGE AMPLE LIQUIDITY Interest Coverage 3.7X Revolving Line Availability $274M Fixed Charge Coverage 3.0X Free Cash Flow $25 - $30M As of March 31,

35 Millions PROACTIVE BALANCE SHEET MANAGEMENT 6.5 YEARS AVERAGE TERM $2.0B UNENCUMBERED POOL 90% FIXED RATE DEBT <$132M MAXIMUM DEBT EXPIRING IN ANY YEAR $300 $250 $200 $150 $100 $50 $ Mortgage Unsecured As of March 31,

36 TOTAL MARKET CAPITALIZATION $2.7B TOTAL CAPITALIZATION $1.5B COMMON EQUITY Total Common Equity $1,467,840 Total Debt $1,072,538 Senior Unsecured Debt $460,000 Mortgage Debt $300,960 Term Loans $210,000 Revolving Line of Credit $76,000 Junior Subordinated Note $28,125 Capital Lease $1,108 Cash ($3,655) Convertible Perpetual Preferred Shares $120,703 Total Market Capitalization $2,661,081 As of March 31,

37 KEY TAKEAWAYS 37

38 INVESTOR PRESENTATION SPRING SUMMER 2016 LAKELAND PARK CENTER, LAKELAND, FL APPENDIX 38

39 PROFILE OF TOP TWENTY SHOPPING CENTERS RPT s 20 Largest Centers = 54% of Total ABR Market Dominant 445,000 Square Feet [1] ; ABR psf of $16.66 [2] Low Risk with High Growth Potential Average Age of Portfolio Strong Markets Average 8 Anchors [1] per Center and over 100,000 Square Feet of Small Shop Space 15 of RPT s top 20 Properties acquired within the last five years Average Household Income of $84,000 Average Population of 170,000 Stable Income Stream 86% National/Regional Tenants [1] Includes shadow anchors. Without shadow anchors, average size is 340,000 square feet and average number of anchors is 7. [2] Excludes land leases. 39

40 RPT S 20 LARGEST MARKET DOMINANT CENTERS BY RENT 1. River City Marketplace, FL 2. Front Range Village, CO ABR: $9.5 million $17.26 PSF Total GLA: 899,588 (Owned 557,087) Major Tenants: Bed Bath & Beyond, Best Buy, Wal-Mart, Ross Dress For Less, Lowe s, Gander Mountain and PetSmart ABR: $8.5 million $19.20 PSF Total GLA: 792,945 (Owned 459,307) Major Tenants: Target, Lowe s, Sprouts Market, ULTA Beauty, Charming Charlie, DSW and Microsoft 3. Deerfield Towne Center, OH 4. Bridgewater Falls, OH ABR: $8.3 million $19.24 PSF Total GLA: 463,246 Major Tenants: Whole Foods, Bed Bath & Beyond, buy buy Baby, Dick s Sporting Goods, ULTA Beauty, Charming Charlie and Crunch Fitness ABR: $6.8 million $16.88 PSF Total GLA: 627,202 (Owned 503,502) Major Tenants: Target, Bed Bath & Beyond, T.J. Maxx, Dick s Sporting Goods, Old Navy, ULTA Beauty and Michaels Recently acquired. 40

41 RPT S 20 LARGEST MARKET DOMINANT CENTERS BY RENT 5. Woodbury Lakes, MN 6. Tel-Twelve, MI ABR: $6.0 million $21.96 PSF Total GLA: 317,603 (Owned 305,086) Major Tenants: buy buy Baby, Charming Charlie, DSW, Gap, H&M, Michaels, Victoria s Secret and Trader Joe s 7. Hunter s Square, MI ABR: $5.9 million Total GLA: 523,411 Major Tenants: Meijer, DSW, Lowe s, Michaels, Pier 1 Imports and PetSmart 8. West Oaks, MI $17.90 PSF JUST OPENED: Saks Fifth Avenue Off 5 th and DSW OPENING SOON: Container Store and Nordstrom Rack ABR: $5.9 million $16.71 PSF Total GLA: 353,951 Major Tenants: Bed Bath & Beyond, Old Navy, buy buy Baby, T.J. Maxx, Marshalls, Saks Fifth Avenue OFF 5TH and DSW ABR: $5.7 million $17.66 PSF Total GLA: 676,071 (Owned 419,919) Major Tenants: Kohl s, DSW, Gander Mountain, Old Navy, Jo-Ann Fabrics and Marshalls Recently acquired. 41

42 RPT S 20 LARGEST MARKET DOMINANT CENTERS BY RENT 9. Harvest Junction, CO 10. Mission Bay Plaza, FL OPENING SOON: Expanded LA Fitness and Dick s ABR: $5.7 million $15.76 PSF Total GLA: 495,185 (Owned 360,185) Major Tenants: Ross Dress For Less, Marshalls, Michaels, Best Buy, Dick s Sporting Goods and DSW ABR: $5.3 million $22.08 PSF Total GLA: 257,600 Major Tenants: The Fresh Market, LA Fitness, OfficeMax, Golfsmith and Dick s Sporting Goods 11. Jackson Crossing, MI 12. Millennium Park, MI ABR: $4.4 million $11.50 PSF Total GLA: 674,480 (Owned 420,238) Major Tenants: Target, Kohl s, Bed Bath & Beyond, Best Buy, T.J. Maxx and Jackson 10 Theater ABR: $4.2 million $15.28 PSF Total GLA: 625,209 (Owned 272,568) Major Tenants: Home Depot, Marshalls, Michaels, PetSmart, ULTA Beauty, Costco and Meijer Recently acquired. 42

43 RPT S 20 LARGEST MARKET DOMINANT CENTERS BY RENT 13. Troy Marketplace, MI 14. The Shops at Lane Avenue, OH ABR: $3.7 million Total GLA: 238,354 (Owned 217,754) Major Tenants: Nordstrom Rack, Golfsmith, LA Fitness, PetSmart and Total Hockey $17.17 PSF JUST OPENED: ULTA Beauty ABR: $3.4 million $22.07 PSF Total GLA: 168,936 Major Tenants: Whole Foods Market, Bed Bath & Beyond, Pier 1 Imports, ULTA Beauty, Rusty Bucket, White House Black Market and Chico s 15. The Shoppes at Fox River, WI 16. Heritage Place, MO OPENING SOON: Ross Dress for Less ABR: $3.4 million $14.45 PSF ABR: $3.4 million $13.63 PSF Total GLA: 369,774 (Owned 237,392) Major Tenants: Target, Hobby Lobby, Petco, Pick n Save, T.J. Maxx and ULTA Beauty Total GLA: 269,105 Major Tenants: Dierberg s Market, Marshalls, Petco and T.J. Maxx Recently acquired. 43

44 RPT S 20 LARGEST MARKET DOMINANT CENTERS BY RENT 17. Town & Country Crossing, MO 18. Mount Prospect Plaza, IL OPENING SOON: Stein Mart and Home Goods ABR: $3.3 million $26.35 PSF Total GLA: 282,667 (Owned 145,830) Major Tenants: Whole Foods Market, Target, Stein Mart, Home Goods and Cooper s Hawk Winery & Restaurant 19. Marketplace of Delray, FL ABR: $3.3 million Total GLA: 300,682 Major Tenants: Marshalls, Ross Dress For Less, LA Fitness, Aldi, Petco, and Walgreens 20. Winchester Center, MI $11.49 PSF JUST OPENED: Stein Mart ABR: $3.3 million $13.66 PSF Total GLA: 241,715 Major Tenants: Beall s Outlet, Dollar Tree, Office Depot, Ross Dress For Less, Winn-Dixie ABR: $3.2 million $10.31 PSF Total GLA: 320,134 Major Tenants: Dick s Sporting Goods, Marshalls, Stein Mart, Bed Bath & Beyond, PetSmart and Michaels Recently acquired. 44

45 SAFE HARBOR Information included herein contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. You can identify these forward-looking statements by our use of the words believe, anticipate, plan, expect, may, might, should, will, intend, estimate, predict and similar expressions, whether in the negative or affirmative. These forward-looking statements represent our expectations or beliefs concerning future events, including: statements regarding future developments and joint ventures, rents, returns, and earnings; statements regarding the continuation of trends; and any statements regarding the sufficiency of our cash balances and cash generated from operating, investing, and financing activities for our future liquidity and capital resource needs. We caution that although forward-looking statements reflect our good faith beliefs and reasonable judgment based upon current information, these statements are not guarantees of future performance and are qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements, because of risks, uncertainties, and factors including, but not limited to: our success or failure in implementing our business strategy; economic conditions generally and in the commercial real estate and finance markets specifically; our cost of capital, which depends in part on our asset quality, our relationships with lenders and other capital providers; our business prospects and outlook; changes in governmental regulations, tax rates and similar matters; and our continuing to qualify as a REIT. Further, we have included important factors under the heading Risk Factors and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2015, and other periodic reports, that we believe could cause our actual results to differ materially from the forward-looking statements that we make. All forward-looking statements are made as of the date hereof or the date specified herein, based on information available to us as of such date. Except as required by law, we do not undertake any obligation to update our forward-looking statements or the risk factors contained herein to reflect new information or future events or otherwise. You are cautioned not to place undue reliance on forward-looking statements. 45

46 SPRING SUMMER 2016 INVESTOR PRESENTATION