Please see important disclosures and analyst certification on page 50 of this report.

Transcription

1 Real Estate - Retail Chris Lucas christopher.lucas@capitalone.com (571) Vineet Khanna vineet.khanna@capitalone.com (571) Sales: Trading: Price Upside Ticker Price Rating Target to Target BFS $65.56 OW $ % DDR $18.82 EW $ % EQY $31.68 EW $ % FRT $ EW $ % KIM $30.50 OW $ % KRG $29.29 EW $ % REG $80.60 OW $ % ROIC $21.97 OW $ % RPAI $16.97 OW $ % RPT $19.38 EW $ % UE $29.16 EW $ % WRI $41.60 OW $ % Core FFO Div. Ticker 2016E 2017E NAV Yield BFS $2.98 $3.28 $ % DDR $1.27 $1.28 $ % EQY $1.40 $1.47 $ % FRT $5.67 $6.14 $ % KIM $1.50 $1.67 $ % KRG $2.06 $2.15 $ % REG $3.27 $3.52 $ % ROIC $1.07 $1.13 $ % RPAI $1.07 $1.02 $ % RPT $1.37 $1.45 $ % UE $1.26 $1.33 $ % WRI $2.31 $2.46 $ % Source: FactSet, SNLFinancial, Capital One Securities Updated 8/12/16 Please see important disclosures and analyst certification on page 50 of this report. Shopping Centers August 15, 2016 Industry Note Shopping Center 2Q Earnings Review: BFS and ROIC Remain Best Ideas Results and management commentary continue to support our investment thesis that solid fundamentals and limited supply drive improved pricing power and earnings growth. However, headwinds to earnings growth remain, including tenant bankruptcies and store closures, incremental disposition plans, and de-leasing to support redevelopment and remerchandising. We expect that companies will continue to focus on retenanting and re/development for the foreseeable future as occupancy remains below peak levels and new supply growth remains well below the long-term average. External growth remains a challenge, with most in our coverage universe reporting cap rates as settling at cycle low levels and in some instances moving lower. As a result of the favorable disposition environment, management teams expressed interest in utilizing dispositions to prune the portfolio of low-growth and non-core assets, as well as to match fund redevelopment and to a lesser extent acquisitions. However, with lower interest rates and higher stock prices driving the group's weighted average cost of capital lower, we expect external growth and exploiting balance sheet opportunities to be incrementally constructive to growth. Our best ideas following 2Q16 earnings are BFS and ROIC. Despite strong price appreciation, we continue to favor BFS as a result of attractive intrinsic and relative multiple valuation as well as solid growth prospects from transitoriented re/development pipelines. We favor ROIC given the strength of its acquisition pipeline and, more importantly, the sector-leading organic growth that appears to have significant visibility through the remainder of the year and into next. Valuation: Shopping Center REIT valuations relative to the broader REIT index expanded in 1H16 as REIT investors shifted toward more defensive sectors, but this has since eased. Specifically, the premium spread decreased to 13.9% currently from 15.8% in May. The long-term average relative 2-year forward FFO multiple to the REIT index multiple is 3.4%. Currently, shopping center REITs trade at a 1,060 bps relative premium to the historic relationship. We suspect the premium for shopping center REITs, in addition to their defensive nature, reflects the strength of organic growth momentum as measured by same-store NOI growth and strong real property investor demand with limited quality supply compressing cap rates. Further limited supply and continued tenant demand for space should drive rents higher. Looking to cap rate trends, shopping center cap rates remain 51 bps above prior-cycle lows, the second highest among the major property types. This should provide for additional upside in share price, especially given the improved quality of many of the shopping center REIT portfolios. Tenant Health & Operating Fundamentals: Sports Authority liquidation permeated through all of the shopping center conference calls. We anticipate that TSA headwinds will be partially felt in 2H16 but more fully felt in 17. Generally, if the Sports Authority leases weren t rejected or purchased in 2Q16, the landlords expect to get the spaces back during 3Q16. Accordingly, 3Q16 results will be impacted by the return of this space, partially offset by recoveries. It is our understanding that TSA will pay 85% of March stub rent on rejected leases. Management teams expect these payments to come during 3Q16. For many, Sports Authority headwinds are expected to be offset by operating portfolio strength, specifically rent commencement from prior retenanting. Releasing activity is expected to take 6-18 months at rents that are at or above 201 St. Charles Avenue, Suite 1830, New Orleans, LA Towers Crescent Drive, Office 554, Vienna, VA 22182

2 Real Estate - Retail Page 2 of 50 August 15, 2016 prior levels. Looking at current operating metrics, SSNOI growth is ahead of the TFQ average and year-ago levels for the group, while occupancy and leased rates are roughly at TFQ levels. We expect volatility in SSNOI growth, occupancy, and leased rates metrics as bankruptcies and retenanting weigh on performance in the near term. Recapture-Remerchandise-Redevelop: Overall operating strategy remains in place with companies continuing to focus on retenanting and re/development for the foreseeable future as occupancy approaches peak levels and new supply growth remains well below the long-term average. Four peers modestly increased their redevelopment pipeline, four were effectively unchanged, and two shrank as a result of delivered projects that were not offset with new projects. Improved cost of capital should support acquisition and development funding on top of continued dispositions. Capital Markets: Our shopping center coverage group, as well as REITs in general, has been taking advantage of the favorable pricing in the equity and debt markets over the past few months, something that was not as readily available earlier in Since the balance sheets of many in our coverage universe are already in solid shape, the group is utilizing the favorable pricing to further improve balance sheet flexibility as well as prefund upcoming maturities. Some of the capital markets activity has been a drag on 16 guidance as management teams are tapping the capital markets ahead of schedule. Further, lower costs of equity and debt capital have allowed some to be more competitive in the acquisition market, a change from prior points in this cycle. Accordingly, there have been indications of lower cap rates and lower IRRs on REITacquired properties, which is consistent with market conditions generally. In 2Q and into 3Q, EQY, FRT, KIM, ROIC, and WRI utilized the ATM market, while REG and ROIC tapped the overnight equity markets. On the debt side, FRT, KIM, and WRI tapped the public unsecured market while EQY, ROIC, and RPT utilized the private placement market. Estimates updated: Following 2Q16 results, we ve updated our estimates for '16, '17, and 18. Our '16 estimates for DDR, REG, ROIC, and WRI moved higher, while our estimates for BFS, KIM, KRG, RPAI, and UE moved lower, and the remainder of the group was unchanged. We now expect '16 core FFOPS for the group to increase by 4.9% unchanged from our prior 4.9% expectation. We expect '17 core FFOPS for the group to grow by 5.6%, also unchanged from our prior 5.6% expectation. Finally, we expect 18 core FFOPS for the group to grow by 5.8% versus 5.7% previously. In the pages that follow, please find our 2Q16 earnings takeaways as well as our updated estimates. 201 St. Charles Avenue, Suite 1830, New Orleans, LA Towers Crescent Drive, Office 554, Vienna, VA 22182

3 SHOPPING CENTER 2Q16 EARNINGS REVIEW Page 3 of 50 Capital One Securities Shopping Center Coverage List General BFS DDR EQY FRT KIM KRG REG ROIC RPAI RPT UE WRI Avg Stock Rating OW EW EW EW OW EW OW OW OW EW EW OW Price (as of 08/12/16) $65.56 $18.82 $31.68 $ $30.50 $29.29 $80.60 $21.97 $16.97 $19.38 $29.16 $ Month price target $74.00 $19.50 $32.00 $ $32.00 $30.00 $88.00 $24.00 $18.50 $21.00 $30.00 $45.00 Variance to Price Target 12.9% 3.6% 1.0% 3.6% 4.9% 2.4% 9.2% 9.2% 9.0% 8.4% 2.9% 8.2% Total return potential 15.7% 7.7% 3.8% 6.1% 8.3% 6.4% 11.7% 12.5% 12.9% 12.7% 5.6% 11.7% Market Cap ($MM) 1,886 6,893 4,555 11,567 12,840 2,499 8,434 2,658 4,028 1,573 3,085 5,379 Dividend yield 2.9% 4.0% 2.8% 2.4% 3.3% 3.9% 2.5% 3.3% 3.9% 4.3% 2.7% 3.5% 3.3% Payout Ratio to 2016 AFFO 77.0% 67.3% 89.8% 74.5% 71.8% 65.0% 62.7% 66.7% 87.2% 63.6% 74.8% 70.5% 72.6% Estimates Last update as of 8/2/2016 8/9/2016 8/9/2016 8/9/2016 8/9/2016 8/9/2016 8/9/2016 8/9/2016 8/9/2016 8/9/2016 8/3/2016 8/9/ Core FFO $2.95 $1.23 $1.32 $5.32 $1.46 $1.99 $3.04 $0.95 $1.06 $1.30 $1.21 $ E Core FFO $2.98 $1.27 $1.40 $5.67 $1.50 $2.06 $3.27 $1.07 $1.07 $1.37 $1.26 $ E Core FFO $3.28 $1.28 $1.47 $6.14 $1.67 $2.15 $3.52 $1.13 $1.02 $1.45 $1.33 $ E Core FFO $3.40 $1.31 $1.57 $6.69 $1.76 $2.25 $3.73 $1.23 $1.07 $1.53 $1.45 $ AFFO $1.96 $1.04 $0.82 $4.45 $1.13 $1.79 $2.61 $0.88 $0.79 $1.16 $0.96 $ E AFFO $2.20 $1.15 $0.97 $4.68 $1.18 $1.73 $2.46 $0.97 $0.78 $1.21 $1.00 $ E AFFO $2.44 $1.13 $0.98 $5.26 $1.42 $1.77 $3.19 $1.08 $0.76 $1.32 $1.07 $ E AFFO $2.58 $1.16 $1.11 $5.89 $1.52 $1.86 $3.38 $1.18 $0.79 $1.39 $1.18 $2.13 Growth Core FFO growth ('15 - '16) 1.1% 3.1% 5.5% 6.6% 2.9% 3.5% 7.5% 12.2% 1.7% 4.8% 3.6% 5.9% 4.9% Core FFO growth ('16 - '17) 10.1% 0.9% 5.7% 8.4% 11.0% 4.3% 7.6% 6.0% (5.4%) 6.1% 6.1% 6.4% 5.6% Core FFO growth ('17 - '18) 3.7% 2.3% 6.6% 8.9% 5.7% 4.6% 5.9% 8.5% 5.6% 5.6% 8.7% 3.6% 5.8% Capital One FFO CAGR ('16 - '18) 6.8% 1.6% 6.1% 8.6% 8.3% 4.4% 6.8% 7.2% (0.1%) 5.9% 7.4% 5.0% 5.7% Street FFO CAGR ('16 - '18) 4.2% 3.8% 7.2% 8.7% 11.1% 5.0% 6.7% 5.7% (1.3%) 5.0% 7.5% 5.3% 5.7% 2016 FFO / Growth ('16 - '17) NA FFO / CAGR ('16 - '18) NA Source: Company filings, Capital One Securities S T. C H A R L E S A V E, S U I T E , N E W O R L E A N S, L A T O W E R S C R E S C E N T D R, S U I T E 5 5 4, V I E N N A, VA

4 SHOPPING CENTER 2Q16 EARNINGS REVIEW Page 4 of 50 Capital One Securities Shopping Center Coverage List (continued) BFS DDR EQY FRT KIM KRG REG ROIC RPAI RPT UE WRI Avg Valuation FFO Multiples Price / 2015 Core FFO 22.2x 15.3x 24.0x 30.1x 20.9x 14.7x 26.5x 23.1x 16.0x 14.9x 24.1x 19.1x 20.9x Price / 2016E Core FFO 22.0x 14.8x 22.6x 28.3x 20.3x 14.2x 24.6x 20.5x 15.9x 14.1x 23.1x 18.0x 19.9x Price / 2017E Core FFO 20.0x 14.7x 21.6x 26.1x 18.3x 13.6x 22.9x 19.4x 16.6x 13.4x 21.9x 16.9x 18.8x Price / 2018E Core FFO 19.3x 14.4x 20.2x 23.9x 17.3x 13.0x 21.6x 17.9x 15.9x 12.7x 20.1x 16.3x 17.7x Peer Group P / 2017E FFO 18.7x 19.2x 18.5x 18.1x 18.8x 19.3x 18.4x 18.7x 19.0x 19.3x 19.3x 19.0x 18.8x Premium / Discount 7.0% (23.2%) 16.3% 44.0% (3.0%) (29.2%) 24.4% 3.8% (12.3%) (30.7%) 13.7% (10.8%) 0.0% Avg Fwd 2-Yr FFO (2 yrs) 17.5x 13.6x 18.9x 24.7x 17.0x 12.8x 21.1x 17.8x 14.9x 12.8x NA 15.8x 17.0x Avg Fwd 2-Yr Peers (2 yrs) 16.9x 17.3x 16.8x 16.2x 17.0x 17.4x 16.4x 17.1x 17.1x 17.4x 17.1x 17.1x 17.0x Premium / Discount 3.1% (21.4%) 12.9% 52.3% (0.2%) (26.6%) 28.2% 3.9% (12.8%) (26.5%) NA (7.8%) 0.5% Avg Fwd 2-Yr FFO (2 yrs) 1 Yr Ago 16.9x 13.5x 17.7x 22.9x 15.8x 12.4x 19.3x 17.0x 14.3x 13.0x NA 15.4x 16.2x Avg Fwd 2-Yr Peers FFO (2 yrs) 1 Yr Ago 16.1x 16.5x 16.1x 15.5x 16.2x 16.6x 15.8x 16.3x 16.3x 16.5x 16.3x 16.3x 16.2x Premium / Discount 4.7% (17.8%) 10.2% 47.2% (2.5%) (25.1%) 22.7% 4.2% (12.4%) (21.5%) NA (5.5%) 0.4% Price / 2015 AFFO 33.4x 18.1x 38.6x 36.0x 27.0x 16.4x 30.9x 25.0x 21.5x 16.7x 30.4x 25.1x 26.6x Price / 2016E AFFO 29.8x 16.4x 32.7x 34.2x 25.8x 16.9x 32.8x 22.6x 21.8x 16.0x 29.2x 22.7x 25.1x Price / 2017E AFFO 26.9x 16.7x 32.3x 30.5x 21.5x 16.5x 25.3x 20.3x 22.3x 14.7x 27.3x 20.1x 22.9x Price / 2018E AFFO 25.4x 16.2x 28.5x 27.2x 20.1x 15.7x 23.8x 18.6x 21.5x 13.9x 24.7x 19.5x 21.3x Leverage Intrinsic Valuation NAV per share $75.71 $19.81 $30.22 $ $31.03 $29.67 $80.74 $21.39 $19.54 $21.17 $27.42 $41.93 Estimated cap rate 5.4% 6.0% 4.8% 4.5% 5.5% 6.0% 5.0% 4.4% 5.8% 6.5% 5.4% 5.5% 5.4% Implied cap rate 6.0% 6.2% 4.6% 4.2% 5.5% 6.1% 5.0% 4.3% 6.3% 6.9% 5.2% 5.5% 5.5% Cap Rate Spread (bps) (17) (26) (8) (25) 3 9 Price to NAV premium (discount) (13.4%) (5.0%) 4.8% 6.7% (1.7%) (1.3%) (0.2%) 2.7% (13.2%) (8.4%) 6.3% (0.8%) (1.9%) EV / FFQ EBITDA x 17.2x 22.9x 26.8x 22.4x 17.4x 19.7x 22.0x 17.7x 16.5x 21.8x 18.5x 20.2x Debt / EV % 42.6% 23.7% 18.7% 31.2% 41.4% 22.0% 31.1% 35.6% 38.2% 29.6% 28.8% 31.0% Debt / FFQ EBITDA 5.7x 7.5x 5.4x 5.0x 6.9x 7.2x 4.4x 6.8x 6.6x 6.3x 6.5x 5.1x 6.1x Debt + Preferred/ FFQ EBITDA 6.9x 7.9x 5.4x 5.0x 7.9x 7.2x 5.0x 6.8x 7.0x 6.8x 6.5x 5.1x 6.5x Fixed Charge Coverage 2.4x 3.0x 4.9x 5.5x 3.5x 3.7x 3.4x 4.1x 3.3x 3.2x 3.4x 4.4x 3.7x Debt / Total capitalization 29.3% 42.5% 23.5% 18.7% 30.7% 41.1% 22.0% 31.0% 35.4% 38.2% 28.5% 28.7% 30.8% Debt + Preferred/ Total capitalization 35.5% 45.3% 23.5% 18.8% 34.7% 41.1% 24.9% 31.0% 37.5% 41.6% 28.5% 28.7% 32.6% Debt / Total asset value % 44.6% 24.4% 21.4% 33.8% 42.2% 24.2% 34.2% 36.4% 38.2% 30.7% 30.8% 32.9% Debt & Preferred Stock Most Comparable Long Term Bond NA 2/1/25 11/15/22 1/15/24 10/1/26 NA 11/1/25 12/15/24 3/15/25 NA NA 8/15/26 Rate NA 3.63% 3.75% 3.95% 2.80% NA 3.90% 4.00% 4.00% NA NA 3.25% YTM NA 3.38% 3.40% 2.52% 2.90% NA 3.05% 3.83% 4.06% NA NA 3.30% Most Recent Preferred Class/Series C K NA NA K NA 7 NA A NA NA NA Coupon 6.88% 6.25% NA NA 5.63% NA 6.00% NA 7.00% NA NA NA Current Yield 6.48% 5.93% NA NA 5.37% NA 5.64% NA 6.51% NA NA NA First call date 2/12/18 4/9/18 NA NA 12/7/17 NA 8/23/17 NA 12/20/17 NA NA NA 1 Enterprise value calculated as current enterprise value adjusted for projected changes to capital structure 2 As calculated in net asset value analysis Source: Company filings, Capital One Securities

5 SHOPPING CENTER 2Q16 EARNINGS TAKEAWAYS Page 5 of 50

6 SHOPPING CENTER 2Q16 EARNINGS TAKEAWAYS We remain positive on shopping center fundamentals after 2Q16 financial and operating results that were either in line or exceeded expectations. We remain constructive on the group and are increasingly focused on individual situations as valuations appear rich and portfolio quality and strategy execution diverges. With new construction remaining at >35-year lows and modestly improving consumer demand supporting retailer demand for shopping center space, fundamentals remain solid. However, growth remains challenging as tenant bankruptcies and strategic de-leasing have stabilized the leased rate below prior cycle highs and external growth opportunities are limited due to an extremely competitive investment market. We expect internal growth to moderate further as remerchandising builds vacancy and downtime before generating improved NOI quality. However, as the components of organic growth shift from occupancy to rental growth we favor portfolios with a demonstrated ability to drive rent growth. As a result, we expect cash flow growth to accelerate as CAPEX moderates. We continue to favor companies that are playing offense, i.e., those with substantive re/development pipelines, and are more cautious on those that continue to play defense, i.e., those that have ongoing portfolio or balance sheet repositioning efforts. Lastly, with lower interest rates, a functioning debt market, and lower cost of equity capital, acquisitions are likely to play a slightly larger role in driving FFOPS growth. Our best ideas following 2Q16 earnings are BFS and ROIC. Despite strong price appreciation, we continue to favor BFS as a result of attractive intrinsic and relative multiple valuation as well as solid growth prospects from transit-oriented re/development pipelines. We favor ROIC given the strength of its acquisition pipeline and, more importantly, the sector-leading organic growth that appears to have significant visibility through the remainder of the year and into next. Shopping Center Company Takeaways Saul Centers Inc. (BFS) Park Van Ness Leasing Impressive; Results Miss on PVN Delivery Page 6 of 50 DDR Corp. (DDR) Results Beat; Guidance Bumped; Bigger Questions Remain Leadership changes precipitate corporate review at all levels. Complete portfolio review underway to evaluate potential improvements. In addition, a hiring moratorium for mid and senior-level hires is in place until Labor Day. There is one exception, the addition of an independent board member given just 5 board members are independent. Tom August, CEO, is in the process of signing a 3-year contract. Lastly, management guided to month end for decisions for the executive level structure with both a permanent CFO vacancy and prospective CIO role. Balance sheet deleveraging still in focus but details were less consistently conveyed. Asset sales remain on the to-do list but acquisitions were discussed as well as capital markets transactions. Solving for this is likely Tom August s most important action in his new role. Paul Freddo will transition responsibilities to recent hire Vincent A. Corno over the course of the next few quarters, with expectations that Paul will remain through 1H17. Management commented that there may be more development and redevelopment opportunities than DDR had originally focused on in some of the non-prime or prime+ assets. This is a shift in strategy, from the sole focus on high barrier to entry, good quality properties. DDR believes it has the ability to deliver $100MM - $150MM of redevelopment spend annually. The upstate New York portfolio (80% of dispositions under contract of $505MM) is under contract and expected to close in 3Q16. The buyer is working to finalize debt financing. Management is also developing a definitive strategy for Puerto Rico, hoping to gain board approval at the meeting the day after Labor Day. Puerto Rico SSNOI growth was down 0.5%, sequentially higher (~100 bps) but still weighing on overall SSNOI growth by 60 bps. The DDR Domestic Retail Fund I is nearing its 10-year life maturity, and management expects the ~55 properties in the JV portfolio (20% DDR ownership) will be sold in late 4Q16 into 1Q17. Of note, DDR has right of first refusal on these assets and is considering all options. DDR collects $8MM - $10MM in fee income from this JV. Sports Authority turned out better than management expected. DDR has 12 wholly owned Sports Authority boxes and 1 in a 5% owned JV, totaling 70 bps of pro rata ABR. The 12 wholly owned boxes are in prime and prime plus centers, where strong demand for the boxes, highlighted by the purchase of the designation rights by Dick s, TJ Maxx, and Burlington for 4 of DDR s boxes. The remaining 9 boxes are expected back shortly, with rent payments ending in July, creating an 80 bps and 100 bps drag to SSNOI growth in 3Q and 4Q, respectively.

7 SHOPPING CENTER 2Q16 EARNINGS TAKEAWAYS Page 7 of 50 Shopping Center Company Takeaways (continued) Equity One, Inc. (EQY) Op Metrics Continue to Impress; In-Line Results; Guidance Affirmed Despite 360 bps growth in small-shop occupancy versus year-ago levels, EQY still has more room to grow occupancy. Occupancy growth continues to be driven by gains in Florida, which was +424 bps y/y to 89%. Development of the perimeter parcel at Serramonte continues and EQY has begun to turnover space to tenants, such as Dave & Busters, within the mall expansion component of the project. The 80% leased project is expected to become cash flow positive by 2016YE and stabilize in mid Several of the projects in the redevelopment pipeline require existing anchor approval. Anchors are cooperating to structure agreements that will permit work to commence. Discussions with tenants and municipalities are better than expected based on prior experience. De-leasing will drive near-term occupancy volatility for upcoming redevelopments and optionality for future projects. Recent private placement addresses unsecured debt maturities through 2018 and EQY plans to tap its ATM to maintain current leverage levels. Specifically, 2016 guidance does contemplate some additional equity issuance in 2H16. Of EQY s 4 Sports Authority locations, 3 were rejected during 2Q and management indicated the 4th, Westbury Plaza, would be rejected by the end of July. The categorization of 2Q rent and certain CAM expenses as post-bankruptcy permitted EQY to receive payment for these items during 2Q, as well as most of March rent. Majority of the drag from vacant Sports Authority boxes is expected to be felt in 3Q. Signed leases with Bassett Furniture and Bob s Discount Furniture at Galley at Westbury and Broadway Plaza, respectively, are at rents slightly above prior TSA leases. Openings expected in late 4Q16 or early EQY is in discussions and negotiations for the remaining two Sports Authority locations. Discussions with Staples and Office Depot have not changed since the merger plans fell through. EQY has exposure to 8 Office Depots and 7 Staples with rents slightly below market. Gazit has not been participating in EQY s ATM issuances. Federal Realty Investment Trust (FRT) Results Beat; Op Metrics Solid; Guidance Reduced on Bond Deal Accessing the 30-year bond market ahead of expectation seemed prudent to management, given the favorable pricing (3.75%) and 300 bps+ spread for development returns. Transaction was a $ $0.04/ sh drag on 2016 earnings. As a reminder, FRT expects to incur $250MM of development and redevelopment spend in 2H16. TSA will negatively impact occupancy 50 bps (103 Ksf) by the end of 3Q16. All 5 of FRT s TSA boxes paid rent through 6/30/16. The Sports Authority lease at Montrose Crossing has been assumed by Value City Furniture, and Dick s obtained designation rights for the lease at Easy Bay Bridge. The Crow Canyon lease was rejected effective 7/1/16 and the leases at Brick Plaza and Assembly Square were rejected effective 8/1/16. The $2.1MM of ABR ($20.50/sf) from Sports Authority is expected to be replaced at rents that are 10% - 20% higher. The three TSA locations unaccounted for will weigh on 2016 FFOPS by ~2 cents. Assembly Row phase 1 is complete. 2K Partners Healthcare employees are working at the office building at Assembly Row and employee count should double next year. Phase 2 investment has reached 40% of total while remaining on budget and time. Pike & Rose continues to feel the pressure on residential rents but the leasing pace at Pallas continued to progress with the leased rate moving to 84%. Pallas stabilization is expected to take place by year end. One-third of phase 2 spend has been incurred, with over 50% of phase 2 retail spoken for. At Santana Row, Splunk is expected to take occupancy by January and residential rents continue to grow above expectations. Plans for Sunset Place and CocoWalk continue to progress and should move to investment committee later this year. They will likely involve the addition of office and residential. Sunset Place will require height zoning changes. FRT s return hurdles have come down slightly, partially driven by the company s ability to tap 30-year debt at such low levels. Market cap rates and IRRs have moved down versus 3-6 months ago, with cap rates in FRT s market, especially California, in the 4% range and IRRs in the 5% range.

8 SHOPPING CENTER 2Q16 EARNINGS TAKEAWAYS Page 8 of 50 Shopping Center Company Takeaways (continued) Kimco Realty Corp. (KIM) More Balance Sheet Simplification - Canadian Bonds & '17 Notes to be Redeemed Strategic Initiatives for Further Simplification Announced; Results in Line KIM s strategic exit from Canada is over 90% complete, and management is further simplifying KIM s capital structure by redeeming Canadian bonds. Merging the primary TRS into the parent will transfer long-term hold assets into the REIT structure, simplifying the ownership structure and making KIM s holdings more operationally and tax efficient. Supply and demand remain in balance, with limited new development and demand from retailers with new formats, off-price specialty and traditional grocers, pet stores, home improvement, fitness, and wellness and beauty. Retailers acquired 2 Sports Authority leases in the bankruptcy auction, reducing KIM s exposure to 1.1% of ABR. KIM also purchased 1 lease at its property in Farmington, CT that had a $4/sf rent and 52 years of remaining term. Of the remaining 23 boxes, KIM has 1 fully executed lease (33% increase over prior rent) and is working on LOIs for 18. Management expects the boxes will be absorbed and commenced over the next 6-12 months. TSA is expected to weigh on 2017 SSNOI by 50 bps 60 bps. KIM announced the planned acquisition of Kentlands Marketplace, a 250 Ksf Whole Foods ($1.3K/sf in grocer sales) anchored center in Gaithersburg, MD. The company expects to close on the $95MM acquisition in the next couple of weeks. Market participants have indicated the going in yield is ~4%. The transaction market remains competitive, with centers trading hands for sub 5% cap rates in major metro markets and single-tenant ground leases with strong credits trading in the low 4% range, going below 4% in some instances. Management tapped the unsecured bond market to fund prepayment of $427.9MM of debt, raising $500MM of 10-year debt at 2.895%. Pricing was 135 bps over the US Treasury benchmark of 1.625%. No additional ATM usage is contemplated in current guidance. KIM is considering monetizing a portion of its Albertsons investment this year as it waits for the IPO market to shift in its favor and to establish built-in gain basis for the tax-free merger. Transactional income remains expected for later in Kite Realty Group Trust (KRG) Reported Results Roughly in Line; Deal Prospects in the Rearview Mirror 2Q results included a $2.8MM expense related to a potential transaction that KRG ultimately did not pursue. KRG s approach to transaction includes several objectives. Specifically, pro-forma portfolio metrics, risk mitigation, and capital allocation. The company looks for portfolios that enhance KRG s asset composition and NAV, maintain or improve its balance sheet metrics, and grow free cash flow per share. In our view, the rumored acquisition of the WPG community center portfolio matched up well geographically and would have provided KRG the raw material to substantially ramp redevelopment and remerchandising efforts. Nearly 90% of leases executed in 2Q included fixed CAM language. The increased focus on fixed CAM improved KRG s recovery ratio, coming in over 90% in the quarter. KRG s 3-R initiative is expected to impact SSNOI growth by up to 100 bps per quarter, while Sports Authority is expected to be an 80 bps drag. Of the company s 3 TSA locations, the 1 at Portofino was purchased by PGA TOUR Superstore while the other 2 were rejected at the end of June. Management expects to secure new tenants for these 2 in the next 9-12 months. The company is in the process of refinancing its two project-specific construction loans at Delray Marketplace and Parkside Town Commons with expectations that these will be completed during 3Q16. The reduction in 2016 disposition guidance is driven by the potential for ~$25MM of previously contemplated 2016 dispositions to fall into 2017.

9 SHOPPING CENTER 2Q16 EARNINGS TAKEAWAYS Page 9 of 50 Shopping Center Company Takeaways (cont.) Regency Centers Corp. (REG) Results Beat; Guidance Increased; Operating Metrics Remain Impressive The Market Common Clarendon and Klahanie acquisitions are expected to generate mid 6% IRRs. Management expects 2H16 SSNOI growth to moderate due to higher comps from rent-paying occupancy and previously announced bankruptcies. Target acquired REG s Sports Authority lease in Northern California, which results in no downtime or rent loss. Sports Authority vacated 1 box at the end of 2Q but results don t include any NOI loss yet. The two remaining stores were closed as of 8/3/16 and management expects to lease them at slight discounts to in-place rents with months downtime. REG expects bankruptcies to have a 50 bps drag to SSNOI growth in 2H16. REG has not identified a specific use for the remaining portion of its forward equity offering, which has to be settled by June Management is targeting unlevered IRRs in the 6% - 6.5% range, which is below where they were ~3 years ago. Retail Opportunity Investment Corp. (ROIC) In-Line Results; Guidance Bumped Again SSNOI growth of 4.9% included ~110 bps drag from two sporting goods store closures. Despite the impact from these two closures, management continues to expect 2016FY SSNOI growth to come in between 5% and 6%. Crossroads redevelopment accelerated on TSA closure as TSA lease carried restrictions. ROIC has LOIs from several national retailers with rent spreads ranging from 25% to 50% higher. $200MM private placement that priced in June at a spread of 230 bps over the 10-year, 1.65%, for a fixed rate of 3.95% is expected to close in September. Guidance does not contemplate any additional equity raises for the remainder of Acquisitions for 2016 expected to total $389MM consisting of $100MM in additional acquisitions, at 5%, plus the $289MM acquired or under contract. The current pipeline of deals includes some OP unit deals as well as some portfolio deals. Fully leased and marketed properties are currently trading hands in the sub 5% cap range with a few even in the sub 4% cap range, and management expects cap rates will trend lower in 2H16. Management expects to sell $25MM - $50MM in 2016, focused on a few properties in Sacramento. New tenants representing $2MM of cash ABR took occupancy during 2Q, of which $300K flowed through during the quarter. At the end of 2Q16, the economic spread between occupied and leased space was ~300 bps, representing $6MM+ in additional incremental cash ABR. Management expects the majority of this will commence through the remainder of ROIC is close to finalizing several key deals to recapture several large anchor spaces, which it is re-leasing to multiple smaller right-sized very strong national anchor retailers. Management expects these recaptures will increase the cash flow by as much as 150% in some cases. Retail Properties of America Inc. (RPAI) Results Beat; Operating Metrics Steady; Guidance Tweaked Despite landing Paylocity as an anchor tenant, representing 309 Ksf or 35% of the space at Zurich Towers, management noted that an additional 200 Ksf is necessary in order to take the asset to market for sale. Management is hoping to complete the disposition in 2017 and noted a price of $150MM. Management noted that $10MM of annual NOI comes off line in November when Zurich vacates. Paylocity cash rents begin in 2018, which management noted works out to $0.06 FFOPS. We have modeled $0.045/sh of revenue drag and an additional $0.04/sh of expense drag in We currently value the Zurich building at $100/sf or $0.37/sh, which is roughly 60% of management s disposition goal. 2Q16 SSNOI growth included 110 bps benefit from the inclusion of 5 properties that were acquired in 1Q15, which grew ~26% q/q, benefitting from lease-up at Downtown Crown. Further, the Sports Authority bankruptcy drag on SSNOI growth (60 bps) is expected to be offset by TSA rent recoveries and lease assumptions (30 bps), Circuit City bankruptcy proceeds received (10 bps), and portfolio outperformance (20 bps). Of the 10 TSA locations, Dick s acquired designation rights for the TSA lease at Northgate in Seattle. Dick s must decide to assume or reject the lease by 9/11/16 and is responsible for all rents until it decides. Of the remaining 9, 1 was rejected in 1Q16, 3 were rejected effective 6/30/16, and the rest (5) were rejected effective 7/31/16. RPAI received March rent for the 3 leases that were rejected effective 6/30/16 and guidance assumes RPAI receives 85% of March stub rent for the remaining 5 leases. 1 of the 9 Sports Authority locations is located at one of RPAI s redevelopment projects, Capital Centre, in DC. The remaining 8 represent 352 Ksf, of which 65 Ksf has been leased, and RPAI is in active negotiations for 4 locations totaling 167 Ksf. RPAI expects to add Towson Circle to its active redevelopment section in its supplemental by year end. It plans to increase the density at the site, turning the existing configuration into a mixeduse development that will include double-sided street-level retail with approximately 375 residential units above.

10 SHOPPING CENTER 2Q16 EARNINGS TAKEAWAYS Page 10 of 50 Shopping Center Company Takeaways (continued) Ramco-Gershenson Properties Trust (RPT) Results Beat; Guidance Narrowed Marketing two Michigan shopping centers with expectations if successful to reach the midpoint of the $100MM - $125MM disposition guidance. RPT added Front Range Village Shopping Center to its active redevelopment projects during the quarter and plans to add several additional value-add projects by year end. These will offset the ~$36MM expected to be completed later this year. 2Q16 SSNOI growth of 4.8% included a 90 bps benefit from the reversal of $360K in bad debt expense from Sports Authority. Of RPT s 4 Sports Authority locations (120 bps of occupancy), 1 in Michigan closed in June and locations in Colorado and Wisconsin closed at the end of July. Management has seen solid interest for these locations and expects to replace or exceed TSA s $12/sf ABR with downtime of 6-12 months. Dick s bought the designation rights to RPT s fourth Sports Authority leases and is negotiating an amendment that will permit Dick s to assume the lease in the Florida center. Management continues to expect a $700K y/y increase in ancillary income for Of the 15 anchor leases signed prior to the end of 2015, 7 have opened year to date with 3 opening during the quarter. This should add ~1 penny to 2016 results and 2 cents to RPT concluded the best outcome for its Aquia office building was to convey the property to the lender via a deed-in-lieu. This conveyance is expected to be finalized in the next few weeks. The $75MM private placement RPT expects to close in November 2016, along with dispositions, will fund the 2017 maturity of mortgage debt at River City Marketplace and Crofton Centre totaling $126MM and 2019 mortgage maturities of $38MM and $3MM, respectively, are manageable and put the company s balance sheet in solid shape. Management expects to fund the redevelopment pipeline with disposition proceeds. Management mentioned Logan s Roadhouse as a tenant on its watch list, along with Total Hockey and Gander Mountain. Logan s recently filed for bankruptcy, announcing the closure of 18 stores. RPT s exposure to Logan s is 4 locations totaling $400K of ABR. Urban Edge Properties (UE) In-Line Quarter; Solid Op Metrics; Maintain Equalweight Weingarten Realty Investors (WRI) In-Line Results; Guidance Bumped; $285MM Acquisition Announced Acquisitions are expected to support organic growth. Management expects the Palms at Town and Country to drive NOI growth of at least 3.5% - 4.0% annually. The $285MM acquisition price yielded a 5.0% going-in cap rate but has significant densification, remerchandising, and mark to market opportunities. WRI s Deerfield acquisition is expected to drive NOI at 3% CAGR over the next 10 years, supported by the addition of an out-parcel building and anchor repositionings. WRI noted cap rate compression occurred over the last several months as high-quality core assets remain competitively bid. Management indicated cap rates with coastal markets were in the 4.25% to 5.25% range and other strong metros were experiencing cap rates in the 4.5% to 5.5% range. Walter Reed land is expected to close in early 2017 with development of the majority of the retail portion commencing in WRI continues to diligence the Atlanta Civic Center redevelopment and estimates the net investment for the retail portion will be ~$50MM. WRI could close on the land as early as 3Q16. WRI updated Sports Authority actions to its portfolio. During 2Q16, TSA closed its sole location in Texas and subsequently closed 2 additional locations. Management expects all but 1 of its 7 locations will be rejected during 3Q16. Dick s purchased the designation rights for 1 location with management expecting this lease to be terminated in the next 60 days. The initial 7 Sports Authority leases represent 10 bps of occupancy, 2 cents of 16 FFOPS, 4 cents of 17 FFOPS, and 50 bps of 16 SSNOI. Management expects to re-lease the properties over the next 6 months with commencement taking place in months with little change in rents. WRI continues to reserve unpaid pre-petition rents and expenses totaling $800K. Most of March base rent totaling $300K is expected to be paid.

11 SHOPPING CENTER SPORTS AUTHORITY SUMMARY Page 11 of 50 Sports Authority (TSA): Bad Debt # % of ABR % of GLA 2Q Treatment & Outlook in SSNOI BFS 0 0.0% 0.0% N/A Yes DDR % 0.9% Designation rights purchased by Dick s, TJ Maxx, and Burlington for 4 of DDR s boxes Management expects to get the remaining 9 boxes back shortly, with rent payments ending in July No Expect an 80 bps and 100 bps drag to SSNOI growth in 3Q and 4Q, respectively EQY 1 N/A N/A 3 of EQY's initial 4 TSA leases were rejected during 2Q; Westbury Plaza expected to be rejected by the end of July Because 2Q rent and CAM expenses were post-bankruptcy, EQY received payment for these, as well as most of Yes FRT 5 0.6% 0.9% March rent, during 2Q Expect 50 bps (103Ksf) occupancy drag by the end of 3Q16; received 3Q; rent leases for signed all 5 TSA for locations 2 of 4 boxes through with 6/30/16 late Value City Furniture assumed the lease at Montrose Crossings; Dick's obtained designation rights for lease at Yes KIM % 1.4% East Bay Bridge Retailers 3 remaining acquired leases 2 to of weight KIM s on TSA 2016 leases; FFOPS KIM by purchased 2 cents; expect 1 lease to at re-lease its property at rents in Farmington, that are 10%-12% CT higher Of the remaining 23 boxes, KIM has 1 fully executed lease (33% increase over prior rent) and is working on LOIs Yes KRG 3 N/A N/A for 18 Sports 50bps - Authority 60 bps drag is expected on 2017 to SSNOI have an growth; 80 bps boxes drag; expected Management to be expects absorbed, to secure specifically new commenced, tenants for these over 2 the in the next 9-12 months No REG 3 0.5% 0.5% Bankruptcies to have a 50 bps drag to SSNOI growth in 2H16; ; other months were rejected downtime; at the re-lease end of at June slight discounts to in-place rents Yes ROIC 1 0.5% N/A Target acquired TSA lease in Northern California; TSA vacated 1 box at end of 2Q, but no NOI loss in the quarter Has LOIs from 2 stores several were national closed retailers as of 8/3/16 with rents 25%-50% higher Lease had some restrictions regarding potential adjacent expansion activity; in better position for next expansion Yes RPAI 9 1.2% 1.5% phase Dick s at acquired Crossroads designation rights for TSA lease at Northgate; 65Ksf has been re-leased; in active negotiations for 4 locations totaling 167Ksf Yes RPT 4 1.0% 1.1% 2Q16 SSNOI growth included 3 leases 90 bps rejected benefit effective from reversal 6/30/16; of guidance $360K in assumes bad debt recapture expense from of 85% TSA of March stub 1 location in MI closed in June and locations in CO and WI closed at the end of July; Dick s bought the designation rights to FL lease Yes UE 0 0.0% 0.0% N/A $12/sf ABR with downtime of 6-12 months Yes WRI 6 0.8% 0.8% 1 TSA closed during 2Q; subsequently closed 2 additional locations; expect all but 1 of 7 locations will be rejected during 3Q16 Dick s purchased designation rights for 1; expect this lease to be terminated in the next 60 days -lease the properties over next 6 months; commencement in months with little change in rents Yes Source: Company filings, Capital One Securities

12 SHOPPING CENTER GROUP METRICS Page 12 of 50

13 SHOPPING CENTER GROUP METRICS Page 13 of 50 Overall, shopping center performance remained robust in 2Q16, with same-store NOI growth averaging 3.6% for our coverage group, which compares to 3.3% in 1Q16 and 3.4% a year ago. Of note, some same-store numbers were negatively impacted in 2Q by retailer bankruptcies and remerchandising efforts. While retailer bankruptcies may present near-term headwinds, solid leasing spreads and volumes, as well as non-existent new supply, should permit the group to re-lease the returned or recaptured space at strong spreads and with stronger tenants. Lease spreads remained strong, up 11.2% for comparable leases, 110 bps below the trailing-four-quarter average but still remarkably strong this late in the cycle. New lease spreads came in at 21.2% compared to the trailing-four-quarter average of 21.5%. New lease spreads can be volatile from quarter to quarter, but we expect new lease spreads to remain strong in the near term given the lack of new supply and active recapture programs. Each metric has its advantages, as new leases provide a sense as to the mark-to-market trend while the renewal rate can represent a contractual rent markup. Renewals also typically are done as is without inducements or concessions. Shopping Center Group Operating Metrics as of June 30, 2016 Same-store NOI growth Occupancy Leased ABR psf Comparable Lease Spread New Lease Spread 2Q16 TFQ Avg. 2Q16 TFQ Avg. 2Q16 TFQ Avg. 2Q16 Yr/Yr % 2Q16 TFQ Avg. 2Q16 TFQ Avg. BFS 3.3% 2.9% NA NA 94.9% 95.0% $ % NA NA NA NA DDR 3.1% 3.3% 94.4% 94.2% 96.1% 95.9% $ % 9.1% 9.5% 27.7% 20.8% EQY 4.5% 4.5% NA NA 96.3% 95.8% $ % 7.0% 16.2% 6.4% 9.3% FRT 2.9% 2.1% 92.9% 94.1% 94.5% 94.9% $ % 12.0% 17.7% 23.0% 26.0% KIM 2.8% 2.1% NA NA 96.0% 95.5% $ % 16.2% 10.0% 29.8% 26.8% KRG 3.6% 3.5% NA NA 95.2% 95.3% $ % 9.4% 11.3% 19.5% 21.3% REG 3.2% 3.1% NA NA 96.0% 96.0% $ % 12.2% 11.1% 29.0% 18.4% ROIC 4.9% 5.9% NA NA 97.2% 97.2% $ % 18.9% 18.7% 24.7% 39.4% RPAI 4.2% 2.6% 93.4% 93.4% 94.9% 94.6% $ % 8.2% 8.2% 16.3% 16.1% RPT 3.8% 1.5% 94.1% 93.7% 94.8% 94.6% $ % 8.0% 9.1% 33.0% 21.8% UE 4.2% 4.0% NA NA 96.2% 96.1% $ % 4.4% 9.7% (5.8%) 10.3% WRI 2.6% 2.8% 93.1% 93.5% 94.9% 95.3% $ % 18.2% 13.6% 29.4% 26.2% Avg. 3.6% 3.2% 93.6% 93.8% 95.6% 95.5% $ % 11.2% 12.3% 21.2% 21.5% Note: Same-store NOI growth excludes impact from redev. (where provided) and lease termination fees. Source: Company filings, Capital One Securities

14 FRT RPT RPAI DDR Peer Avg. WRI ROIC EQY RPAI KRG DDR Peer Avg. REG FRT RPT UE KIM WRI ROIC BFS DDR EQY FRT KIM KRG REG ROIC RPAI RPT UE* WRI Peer Avg. RPAI RPT DDR UE KIM REG KRG Peer Avg. WRI EQY FRT ROIC SHOPPING CENTER GROUP METRICS Page 14 of 50 Shopping Center Group Metric Trends Same-Store NOI Growth Trends (%) Comparable Lease Spread Trends (%) 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 2Q16 same-store NOI growth is +42 bps q/q and -18 bps yr/yr. Results benefitted from retenanting offset by bankruptcies/fallout and additional retenanting, which will likely weigh on SSNOI performance in the near-term. 12Q Avg.* TFQ Avg. 2Q % 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% Comparable lease spreads remain in the high single-digit to low double-digit area, with continued strength driven by strong demand and limited supply. 2Q16 TFQ Avg 0.0% 0.0% *UE data available beginning 1Q15 Occupied-Leased Spread (bps) New Lease Spread Trends (%) The spread between the % leased and % occupied is an indicator of NOI that should come online in the near-term. Accordingly, a wider spread should support improved SSNOI growth. 2Q16 TFQ Avg 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% (5.0%) (10.0%) New lease spreads remain strong, indicative of increased tenant demand and limited available space. We expect this trend to continue. 2Q16 TFQ Avg Note: Same-store NOI growth excludes redevelopment where information is provided Source: Company filings, Capital One Securities

15 DDR EQY FRT KIM KRG REG ROIC RPAI RPT UE WRI DDR EQY FRT KIM KRG REG ROIC RPAI RPT UE WRI $14.88 $14.78 $15.54 $20.09 $19.68 $19.43 $16.82 $ % 66.4% 58.2% 74.6% 68.9% 61.2% 55.2% 70.5% 70.5% 62.7% $16.86 $ % $ % 33.6% 41.8% 25.4% 31.1% 38.8% 44.8% 29.5% 29.5% 37.3% 14.7% BFS DDR EQY FRT KIM KRG REG ROIC RPAI RPT UE WRI Peer Avg. BFS DDR EQY FRT KIM KRG REG ROIC RPAI RPT UE WRI Peer Avg. SHOPPING CENTER GROUP METRICS Page 15 of 50 Shopping Center Group Metric Trends Average Base Rent ($/sf) Trends Average Base Rent Yr/Yr Growth Trends $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 $0.00 ABR psf continues to move higher; in line with commentary that landlords have been able to increase rents on tenants as well as other landlord-favorable terms. 12Q Avg.* TFQ Avg. 2Q % 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% ABR psf yr/yr growth remains strong. Many of the maturing leases are '08-'11 vintage, which should drive continued ABR psf growth as negotiating leverage has improved considerably. 12Q Avg.* TFQ Avg.* 2Q16 *UE data available beginning 1Q15 *UE data available beginning 1Q15 Average Base Rent ($/sf) Trends - Anchor & Non-Anchor Anchor & Non-Anchor Mix (% of Total GLA) $45.00 $40.00 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $5.00 Total Anchor Non-Anchor 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Non-Anchor Anchor $0.00 0% Source: Company filings, Capital One Securities

16 $11.82 $15.78 $18.50 $11.39 $12.04 $13.20 $13.46 $13.34 $10.92 $13.94 $12.42 $24.31 $29.53 $38.31 $25.74 $24.18 $30.52 $26.79 $26.04 $21.04 $36.77 $25.93 SHOPPING CENTER GROUP METRICS Page 16 of 50 Shopping Center Group Metric Trends Anchor Average Base Rent ($/sf) Trends Non-Anchor Average Base Rent ($/sf) Trends $20.00 $45.00 $18.00 $40.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 Avg., $13.03 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 Avg., $26.92 $2.00 $5.00 $0.00 DDR EQY FRT KIM KRG REG ROIC RPAI RPT UE WRI $0.00 DDR EQY FRT KIM KRG REG ROIC RPAI RPT UE WRI Anchor Average Base Rent Yr/Yr Growth Trends Non-Anchor Average Base Rent Yr/Yr Growth Trends 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 3.4% 8.6% 5.4% 3.8% 3.7% Avg., 3.8% 1.6% 5.2% 3.3% 5.1% 0.6% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 3.5% 3.9% 2.8% 4.8% 2.5% 4.0% 6.2% 5.5% Avg., 4.1% 4.0% 2.7% 0.0% DDR EQY FRT KIM KRG REG ROIC RPAI RPT UE 0.0% DDR EQY FRT KIM KRG REG ROIC RPAI RPT UE Source: Company filings, Capital One Securities

17 SHOPPING CENTER 2Q16 PERFORMANCE & GUIDANCE REVIEW Page 17 of 50

18 BFS DDR EQY FRT KIM KRG REG ROIC RPAI RPT UE WRI DDR EQY FRT KIM KRG REG ROIC RPAI RPT UE WRI SHOPPING CENTER 2Q16 PERFORMANCE Page 18 of 50 Shopping Center Group 2Q16 Performance vs Estimates Six of our covered shopping center REITs beat our expectations and seven beat consensus expectations on a core FFOPS basis. Further, four beat our AFFOPS estimates, while five beat consensus estimates. 2Q results included some noise from tenant bankruptcies and retenanting activity. Strong fundamentals continue to drive solid results; however, we expect that the downtime associated with re/development and retenanting projects will begin to weigh on near-term results. Regardless, we expect these projects to drive long-term results and value creation. 2Q16 Actual vs COS vs Consensus, Core FFOPS 2Q16 Actual vs COS vs Consensus, AFFOPS 10.0% 8.0% 6.0% 4.0% COS Consensus 20.0% 15.0% 10.0% 5.0% 0.0% COS Consensus 2.0% (5.0%) 0.0% (2.0%) (4.0%) (10.0%) (15.0%) (20.0%) (25.0%) (6.0%) (30.0%) Source: Company filings, FactSet, Capital One Securities

19 SHOPPING CENTER 2016 GUIDANCE REVIEW Page 19 of 50 Shopping Center Group 2016 Guidance Summary & Review Current 2016 guidance indicates 4.0% yr/yr FFOPS growth, which compares to 5% in 2015 and is up from initial 2016 guidance of 3.5%. Similarly, initial 2015 guidance indicated y/y FFOPS growth of 2.3% and ramped up to 4.0%. 6 of the 10 REITs in our coverage universe that provide guidance increased core FFOPS guidance, with 2 increasing the low end of guidance and 4 increasing the overall guidance range. Further, 2 left guidance unchanged, 1 lowered guidance, and another narrowed guidance. Despite prospective tenant bankruptcy and remerchandising headwinds all but one of the management teams left SSNOI growth guidance unchanged. Same-store NOI growth guidance of 3.3% is up 10 bps versus initial guidance and compares to 2015 s 2.8% results will showcase some of the embedded benefit from remerchandising done in 2015, but we suspect that ongoing remerchandising activity will continue to be a bit of a drag on SSNOI growth. Leased rates stabilized below prior-cycle highs as a result of headwinds from tenant bankruptcies and active strategic de-leasing for future redevelopment and remerchandising, providing upside opportunity. Some in our coverage universe remain net sellers, at the midpoint; however only a few (DDR, KIM, RPAI) will be meaningful net sellers. Other marginal net sellers intend to utilize disposition proceeds to fund re/development. Overall, individual annual acquisition activity is expected to average ~$337MM while disposition activity is expected to average ~$366MM. This compares to prior guidance of ~$261MM in acquisitions and ~$342MM in dispositions Current Guidance Core FFOPS Core FFOPS Y/Y Chg. Same-store NOI growth O/L Rate O/L Rate: Y/Y Chg. (bps) Acquisitions ($MM) Dispositions ($MM) Ticker Low Mid High Low Mid High Low Mid High Low Mid High Low Mid High Low Mid High Low Mid High DDR $1.23 $1.25 $ % 1.4% 2.6% 2.5% 3.0% 3.5% 95.6% 95.9% 96.1% EQY $1.36 $1.38 $ % 4.4% 5.9% 3.3% 3.8% 4.3% 96.0% 96.3% 96.5% NA NA NA NA NA NA FRT $5.62 $5.65 $ % 6.2% 6.8% 3.0% 3.3% 3.5% NA NA NA NA NA NA NA NA NA NA NA NA KIM $1.48 $1.50 $ % 2.8% 4.1% 2.5% 3.0% 3.5% 95.7% 96.0% 96.2% ,000 1,075 1,150 KRG $2.04 $2.06 $ % 3.3% 4.3% 2.5% 2.8% 3.0% 95.0% 95.3% 95.5% REG $3.22 $3.25 $ % 6.7% 7.5% 2.8% 3.1% 3.5% 96.0% 96.3% 96.5% ROIC $1.03 $1.05 $ % 10.1% 12.2% 5.0% 5.5% 6.0% NA NA NA NA NA NA RPAI $1.04 $1.06 $ % -0.1% 1.3% 2.5% 3.0% 3.5% NA NA NA NA NA NA RPT $1.33 $1.35 $ % 3.5% 5.1% 2.0% 2.5% 3.0% NA NA NA NA NA NA NA NA NA WRI $2.28 $2.30 $ % 5.4% 6.4% 2.5% 3.0% 3.5% NA NA NA NA NA NA Change in 2016 Guidance Core FFOPS (% Chg.) Y/Y Chg. (bps) Same-store NOI (bps) O/L Rate (bps) O/L Rate: Y/Y Chg. (bps) Acquisitions (%) Dispositions (%) Ticker Low Mid High Low Mid High Low Mid High Low Mid High Low Mid High Low Mid High Low Mid High DDR 2.5% 1.6% 0.8% % 0% 0% 0% 0% 0% EQY 0.0% 0.0% 0.0% NA NA NA NA NA NA FRT -0.5% -0.5% -0.5% (56) (56) (56) NA NA NA NA NA NA NA NA NA NA NA NA KIM 0.0% 0.0% 0.0% % 0% 0% 21% 19% 18% KRG 1.0% 0.5% 0.0% (25.0) (50.0) 0.0 (25.0) (50.0) 0.0 (25.0) (50.0) NA NA NA 0% -12% -20% REG 0.6% 0.5% 0.3% % 87% -2% 53% 37% 25% ROIC 1.0% 1.0% 0.9% NA NA NA NA NA NA 30% 30% 30% -50% -25% 0% RPAI 1.0% 0.5% 0.0% NA NA NA NA NA NA 0% 0% 0% 0% 0% 0% RPT 0.8% 0.0% -0.7% 77 0 (77) NA NA NA NA NA NA NA NA NA 0% 0% 0% WRI 0.4% 0.4% 0.4% NA NA NA NA NA NA 240% 164% 122% 0% 0% 0% Note: Same-store NOI growth excludes redevelopment where information is provided Source: Company filings, FactSet, Capital One Securities