Document
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| | Page No. |
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| Introductory Notes | | i |
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| Earnings Release | | iii |
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| Financial Information | | |
| Summary Financial Information | | |
| Consolidated Balance Sheets | | |
| Consolidated Statements of Operations and Comprehensive (Loss) Income | | |
| Consolidated Supplemental Details of Assets and Liabilities | | |
| Consolidated Supplemental Details of Operations | | |
| Reconciliation of Non-GAAP Measures | | |
| Same Property Net Operating Income | | |
| NAREIT FFO and Core FFO | | |
| EBITDA, Pro Rata | | |
| Summary of Outstanding Debt | | |
Consolidated Debt Covenants, Interest Rate Swaps, and Capital Expenditures | | |
| Joint Venture Financial Information | | |
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| Portfolio and Leasing Overview | | |
Markets and Tenant Size | | |
| Top 25 Tenants by ABR and Tenant Merchandise Mix | | |
Comparable & Non-Comparable Lease Statistics | | |
| Tenant Lease Expirations | | |
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| Investment Summary | | |
| Acquisitions and Dispositions | | |
| Development Pipeline | | |
| Property Summary | | |
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| Components of NAV as of December 31, 2022 | | |
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| Glossary of Terms | | |
Introductory Notes
About InvenTrust Properties Corp.
InvenTrust Properties Corp. (“we,” the “Company,” “our,” “us,” "IVT" or "InvenTrust") is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. We pursue our business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance ("ESG") practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013. As of December 31, 2022, the Company is an owner and manager of 62 retail properties, representing 10.3 million square feet of retail space. For more information, please visit www.inventrustproperties.com.
The enclosed information should be read in conjunction with our filings with the U.S. Securities and Exchange Commission (“SEC”), including, but not limited to, our Form 10-Qs filed quarterly and Form 10-Ks filed annually. Additionally, the enclosed information does not purport to disclose all items required under Generally Accepted Accounting Principles (“GAAP”). The information provided in this supplemental is unaudited and includes non-GAAP measures (as discussed below), and there can be no assurance that the information will not vary from the final information in the Company’s Form 10-K for the year-ended December 31, 2022. IVT may, but assumes no obligation to, update information in this supplemental.
Forward-Looking Statements Disclaimer
Forward-Looking Statements in this supplemental, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including statements about the Company's 2023 guidance and expected timing and payment of dividends, or regarding management’s intentions, beliefs, expectations, representations, plans or predictions of the future, are typically identified by words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” "continue," “likely,” “will,” “would,” "outlook," "guidance," and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. The following factors, among others, could cause actual results and financial position and timing of certain events to differ materially from those described in the forward-looking statements: interest rate movements; local, regional, national and global economic performance; the impact of inflation on the Company and on its tenants; competitive factors; the impact of e-commerce on the retail industry; future retailer store closings; retailer consolidation; retailers reducing store size; retailer bankruptcies; government policy changes; the effects and duration of the COVID-19 pandemic; and any material market changes and trends that could affect the Company’s business strategy. For further discussion of factors that could materially affect the outcome of our forward-looking statements and our future results and financial condition, see the Risk Factors included in our most recent Annual Report on Form 10-K, as updated by any subsequent Quarterly Report on Form 10-Q, in each case as filed with the SEC. InvenTrust intends that such forward-looking statements be subject to the safe harbors created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, except as may be required by applicable law. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this supplemental. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
Notice Regarding Non-GAAP Financial Measures
In addition to GAAP measures, this supplemental contains and refers to certain non-GAAP measures. We do not consider our non-GAAP measures included in the Glossary of Terms to be alternatives to measures required in accordance with GAAP. Certain non-GAAP measures should not be viewed as an alternative measure of our financial performance as they may not reflect the operations of our entire portfolio, and they may not reflect the impact of general and administrative expenses, depreciation and amortization, interest expense, other income (expense), or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties that could materially impact our results from operations. Additionally, certain non-GAAP measures should not be considered as an indication of our liquidity, nor as an indication of funds available to cover our cash needs, including our ability to fund distributions, and may not be a useful measure of the impact of long-term operating performance on value if we do not continue to operate our business in the manner currently contemplated. Accordingly, non-GAAP measures should be reviewed in connection with other GAAP measurements, and should not be viewed as more prominent measures of performance than net income (loss) or cash flows from operations prepared in accordance with GAAP. Other REITs may use different methodologies for calculating similar non-GAAP measures, and accordingly, our non-GAAP measures may not be comparable to other REITs. Reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures are included in this supplemental on pages 6 and 7 and definitions of our non-GAAP measures are included in the Glossary of Terms on page 23.
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| | Quarter End December 31, 2022 - i |
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Pro Rata Financial Information
The Company owns a 55% interest in IAGM Retail Fund I, LLC (“IAGM” or “JV”), a joint venture partnership between the Company and PGGM Private Real Estate Fund (“PGGM”). IAGM was formed on April 17, 2013 for the purpose of acquiring, owning, managing, and disposing of retail properties and sharing in the profits and losses from those retail properties and their activities. IAGM is the Company’s sole joint venture and is unconsolidated. Throughout this supplemental, where indicated as “pro rata” the Company has included the results from its share of its JV properties when combined with the Company’s wholly-owned properties, with the exception of property count and number of leases. The presentation of pro rata financial information has limitations as an analytical tool, which include but are not limited to: (i) amounts shown on individual line items were calculated by applying our overall economic ownership interest percentage determined when applying the equity method of accounting, and may not represent our legal claim to the assets and liabilities, or the revenues and expenses; and (ii) other REITs may use different methodologies for calculating their pro rata interest. Accordingly, pro rata financial information should be reviewed in connection with other GAAP measurements, and should not be viewed as more prominent measures of performance than net income (loss) or cash flows from operations prepared in accordance with GAAP. For additional detail regarding our JV properties, see the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, in each case as filed with the SEC.
On January 18, 2023, the Company acquired the four remaining retail properties from its unconsolidated joint venture, IAGM, for an aggregate purchase price of $222.3 million by acquiring 100% of the membership interests in each of IAGM’s wholly owned subsidiaries. The Company assumed aggregate mortgage debt of $92.5 million and funded the remaining balance with its available liquidity. Subsequent to the transaction, IAGM proportionately distributed substantially all net proceeds from the sale, of which the Company's share was approximately $71.4 million. In connection with the foregoing, IAGM adopted a liquidation plan on January 11, 2023.
Reduction of Authorized Shares
On April 28, 2022, we filed an amendment to our charter to decrease the number of authorized shares of common stock from 1,460,000,000 to 146,000,000, in proportion with the one-for-ten reverse stock split effected by the Company on August 5, 2021. The authorized shares of preferred stock remain at 40,000,000. The authorized shares of common stock have been retroactively adjusted within the accompanying consolidated financial statements to give effect to the reduction as of December 31, 2022.
Availability of Information on InvenTrust Properties Corp.'s Website and Social Media Channels
Investors and others should note that InvenTrust routinely announces material information to investors and the marketplace using U.S. Securities and Exchange Commission filings, press releases, public conference calls, webcasts and the InvenTrust investor relations website. The Company uses these channels as well as social media channels (e.g., the InvenTrust Twitter account (twitter.com/inventrustprop); and the InvenTrust LinkedIn account (linkedin.com/company/inventrustproperties)) as a means of disclosing information about the Company's business to our colleagues, investors, and the public. While not all of the information that the Company posts to the InvenTrust investor relations website or on the Company’s social media channels is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in InvenTrust to review the information that it shares on www.inventrustproperties.com/investor-relations and on the Company’s social media channels.
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| | Quarter End December 31, 2022 - ii |
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CONTACT:
Dan Lombardo
Vice President of Investor Relations
630-570-0605
dan.lombardo@inventrustproperties.com
InvenTrust Properties Corp. Reports 2022 Fourth Quarter and Full Year Results
DOWNERS GROVE, III – February 14, 2023 – InvenTrust Properties Corp. (“InvenTrust” or the “Company”) (NYSE: IVT) today reported financial and operating results for the fourth quarter and full year ended December 31, 2022 and provided guidance for 2023. For the three months ended December 31, 2022 and 2021, the Company reported a Net Loss of $0.1 million, or $0.00 per diluted share, and a Net Loss of $10.8 million, or $0.16 per diluted share, respectively. For the twelve months ended December 31, 2022 and 2021, the Company reported Net Income of $52.2 million, or $0.77 per diluted share, and a Net Loss of $5.4 million, or $0.08 per diluted share, respectively.
Fourth Quarter and Full Year 2022 Highlights:
•NAREIT FFO for the fourth quarter of $0.35 per diluted share, and $1.66 per diluted share for the full year
•Core FFO for the fourth quarter of $0.34 per diluted share, and $1.57 per diluted share for the full year
•Pro Rata Same Property Net Operating Income (“NOI”) growth of 0.4% for the fourth quarter and growth of 4.6% for the full year
•Leased Occupancy as of December 31, 2022 of 96.1%, a fourth quarter sequential increase of 50 basis points and a full year increase of 220 basis points
•Executed 58 leases totaling approximately 461,000 square feet of pro rata GLA, of which 338,000 square feet was executed at a blended comparable lease spread of 6.1% for the fourth quarter and 8.4% for the full year
Subsequent Highlights:
•On January 18, 2023, the Company acquired the four remaining retail properties from its unconsolidated joint venture, IAGM, for an aggregate purchase price of $222.3 million by acquiring 100% of the membership interests in each of IAGM’s wholly owned subsidiaries. The Company assumed aggregate mortgage debt of $92.5 million and funded the remaining balance with its available liquidity. Subsequent to the transaction, IAGM proportionately distributed substantially all net proceeds from the sale, of which the Company's share was approximately $71.4 million. In connection with the foregoing, IAGM adopted a liquidation plan on January 11, 2023.
”The InvenTrust team executed on all facets of the 2022 business plan,” stated Daniel (DJ) Busch, President and CEO of InvenTrust. “Our operations team continued to capitalize on solid leasing demand while prudently managing expenses in the current inflationary environment. Our investments team successfully rotated capital out of Colorado and further into our target markets driving closer to our goal of 100% concentration in the Sun Belt region. Lastly, we have maintained our disciplined approach to balance sheet management while diversifying our capital sources through the execution of our inaugural private placement of senior notes.”
Mr. Busch continued, “Already in 2023, we have completed the acquisition of the remaining stake in the Company’s joint venture with PGGM. With this transaction, the InvenTrust portfolio is 100% wholly-owned. In addition, the Board of Directors approved a 5% increase in our dividend starting with our April 2023 payment, bringing the Company’s annualized dividend up to $0.86 a share.”
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| | Quarter End December 31, 2022 - iii |
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NET (LOSS) INCOME
•Net Loss for the three months ended December 31, 2022 was $0.1 million, or $0.00 per diluted share, compared to a Net Loss of $10.8 million, or $0.16 per diluted share, for the same period in 2021.
•Net Income for the year ended December 31, 2022 was $52.2 million, or $0.77 per diluted share, compared to a Net Loss of $5.4 million, or $0.08 per diluted share, for the same period in 2021.
NAREIT FFO
•NAREIT FFO for the three months ended December 31, 2022 was $23.8 million, or $0.35 per diluted share, as compared to $9.9 million, or $0.14 per diluted share, for the same period in 2021.
•NAREIT FFO for the year ended December 31, 2022 was $112.0 million, or $1.66 per diluted share, as compared to $84.1 million, or $1.18 per diluted share, for the same period in 2021.
CORE FFO
•Core FFO for the three months ended December 31, 2022 was $23.1 million, or $0.34 per diluted share, compared to $26.3 million, or $0.38 per diluted share, for the same period in 2021.
•Core FFO for the year ended December 31, 2022 was $106.0 million, or $1.57 per diluted share, compared to $99.6 million, or $1.40 per diluted share, for the same period in 2021.
PRO RATA SAME PROPERTY NOI
•Pro Rata Same Property NOI for the three months ended December 31, 2022 was $35.8 million, a 0.4% increase, compared to the same period in 2021. Excluding net out of period rent collection of $0.6 million, Pro Rata Same Property NOI would have increased 2.1% when comparing the three months ended December 31, 2022 to the same period in 2021.
•Pro Rata Same Property NOI for the year ended December 31, 2022 was $141.1 million, a 4.6% increase, compared to the same period in 2021. Excluding net out of period rent collection of $1.7 million, Pro Rata Same Property NOI would have increased 6.0% when comparing the year ended December 31, 2022 to the same period in 2021.
DIVIDEND
•For the quarter ending December 31, 2022, the Board of Directors declared a quarterly cash distribution of $0.2052 per share, payable on January 13, 2023.
•The Board of Directors approved a 5% increase in the Company’s cash dividend. The new annual rate of $0.8620 will be reflected in the quarterly dividend of $0.2155 expected to be paid in April 2023.
PORTFOLIO PERFORMANCE & INVESTMENT ACTIVITY
•As of December 31, 2022, the Company’s Leased Occupancy was 96.1%.
◦Total Anchor Leased Occupancy, which includes spaces greater than or equal to 10,000 square feet, was 98.7% and Small Shop Leased Occupancy was 91.3%. Anchor Leased Occupancy increased by 50 basis points and Small Shop Leased Occupancy increased by 30 basis points on a sequential basis compared to the previous quarter.
◦Leased to Economic Occupancy spread of 220 basis points, which equates to approximately $4.8 million of base rent on an annualized basis.
•Blended re-leasing spreads for comparable new and renewal leases signed in the fourth quarter were 6.1%, and 8.4% for the full year.
•Annualized Base Rent PSF (“ABR”) as of December 31, 2022 for the Pro Rata Combined Portfolio was $19.08, an increase of 2.6% compared to the same period in 2021. Anchor Tenant ABR PSF was $12.43 and Small Shop ABR PSF was $32.12 for the fourth quarter.
•On October 28, 2022, the Company acquired Eastfield Village in Huntersville, North Carolina for $22.5 million. The 96,000 square foot neighborhood center is anchored by Food Lion.
•On December 16, 2022, the Company acquired Stone Ridge Market in San Antonio, Texas, for $58.1 million from its joint venture. The 219,000 square foot community center is shadow anchored by HEB Plus.
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| | Quarter End December 31, 2022 - iv |
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LIQUIDITY AND CAPITAL STRUCTURE
•InvenTrust had $514.4 million of total liquidity, as of December 31, 2022 comprised of $164.4 million of Pro Rata Cash and $350.0 million of availability under its Revolving Credit Facility.
•The Company has $13.7 million of debt maturing in 2023 and $15.7 million of debt maturing in 2024.
•The Company's weighted average interest rate on its consolidated debt as of December 31, 2022 was 4.08% and the weighted average remaining term was 5.2 years.
FULL YEAR 2023 OUTLOOK AND GUIDANCE
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| (Unaudited, dollars in thousands, except per share amounts) | Initial 2023 Guidance | | 2022 Actual |
Net Income per diluted share (1) | $0.23 | — | $0.28 | | $0.77 |
NAREIT FFO per diluted share (2) | $1.64 | — | $1.69 | | $1.66 |
| Core FFO per diluted share | $1.59 | — | $1.64 | | $1.57 |
| Same Property NOI (“SPNOI”) Growth | 3.50% | — | 5.00% | | 4.6% |
| General and administrative | $31,250 | — | $32,750 | | $33,342 |
Interest expense, net (3) | $34,500 | — | $35,500 | | $25,957 |
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Net investment activity (4) | ~ $150,000 | | $129,970 |
The Company’s initial 2023 guidance contemplates the following assumptions:
(1) Net Income per diluted share excludes effects from potential acquisitions or dispositions.
(2) NAREIT FFO per diluted share:
•Excludes effects from potential acquisitions or dispositions.
•Excludes any items that impact NAREIT FFO comparability, including loss on debt extinguishment, non-routine or one-time items or which, in our judgement, are not pertinent to measuring on-going operating performance.
•Includes an expectation that some tenants will move from the cash basis of accounting to the accrual basis of accounting which can result in volatility in straight-line rental income adjustments.
(3) Excludes amortization of debt discounts and financing costs.
(4) Net investment activity represents anticipated acquisition activity less disposal activity.
In addition to the foregoing assumptions, the Company's 2023 Outlook and Guidance incorporates a number of other assumptions that are subject to change and may be outside the control of the Company. For example, the Company’s guidance is inclusive of prior period rent that the Company anticipates collecting. If actual results vary from these assumptions, the Company's expectations may change. There can be no assurances that InvenTrust will achieve these results.
The following table provides a reconciliation of the range of the Company's 2023 estimated net income per share to estimated NAREIT FFO and Core FFO per diluted share:
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| (Unaudited) | Low End | | High End |
| Net income | $ | 0.23 | | | $ | 0.28 | |
| Depreciation and amortization related to investment properties | 1.41 | | | 1.41 | |
| NAREIT FFO Applicable to Common Shares and Dilutive Securities | 1.64 | | | 1.69 | |
| Amortization of market-lease intangibles and inducements, net | (0.05) | | | (0.05) | |
| Straight-line rent adjustments, net | (0.05) | | | (0.05) | |
Adjusting items, net (a) | 0.05 | | | 0.05 | |
| Core FFO Applicable to Common Shares and Dilutive Securities | $ | 1.59 | | | $ | 1.64 | |
(a)Adjusting items, net, are primarily amortization of debt discounts and financing costs, depreciation and amortization of corporate assets, and non-operating income and expenses, net, which includes items which are not pertinent to measuring on-going operating performance, such as miscellaneous and settlement income.
The Company does not provide a reconciliation of forward-looking SPNOI to forward-looking GAAP Net Income within this press release because the Company is unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to our results.
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| | Quarter End December 31, 2022 - v |
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Summary Financial Information
In thousands, except share information and per square foot amounts
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| Three Months Ended December 31 | | Year Ended December 31 |
| 2022 | | 2021 | | 2022 | | 2021 |
| Financial Results | | | | | | | |
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| Net (loss) income | $ | (125) | | | $ | (10,751) | | | $ | 52,233 | | | $ | (5,360) | |
| Net (loss) income per diluted share | (0.00) | | | (0.16) | | | 0.77 | | | (0.08) | |
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| NAREIT FFO (page 7) | 23,775 | | | 9,942 | | | 111,976 | | | 84,088 | |
| NAREIT FFO per diluted share | 0.35 | | | 0.14 | | | 1.66 | | | 1.18 | |
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| Core FFO (page 7) | 23,077 | | | 26,283 | | | 105,952 | | | 99,607 | |
| Core FFO per diluted share | 0.34 | | | 0.38 | | | 1.57 | | | 1.40 | |
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| Pro Rata Same Property NOI (page 6) | 35,828 | | | 35,688 | | | 141,077 | | | 134,821 | |
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| Pro Rata Same Property NOI growth | 0.4 | % | | | | 4.6 | % | | |
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Adjusted EBITDA (page 7) | 31,622 | | | 30,643 | | | 132,368 | | | 117,273 | |
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| Dividends declared per share | 0.21 | | | 0.20 | | | 0.82 | | | 0.78 | |
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| Aggregate dividends declared (as a % of Core FFO) | 60.0 | % | | 52.5 | % | | 52.2 | % | | 55.9 | % |
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| As of
December 31, 2022 | | As of
December 31, 2021 | | As of
December 31, 2020 | | As of
December 31, 2019 |
| Capital Information | | | | | | | |
| Shares outstanding | 67,472,553 | | 67,344,374 | | 71,998,654 | | 72,133,163 |
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| Pro Rata Outstanding Debt, net | $ | 805,253 | | | $ | 624,289 | | | $ | 688,422 | | | $ | 714,053 | |
| Less: Pro Rata Cash | (164,448) | | | (79,628) | | | (249,854) | | | (281,430) | |
| Pro Rata Net Debt | $ | 640,805 | | | $ | 544,661 | | | $ | 438,568 | | | $ | 432,623 | |
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| Pro Rata Debt Metrics (trailing 12 months) | | | | | | | |
| Adjusted EBITDA (trailing 12 months) | $ | 132,368 | | | $ | 117,273 | | | $ | 117,078 | | | $ | 137,233 | |
| Net Debt-to-Adjusted EBITDA | 4.8x | | 4.6x | | 3.7x | | 3.2x |
| Fixed charge coverage | 5.0x | | 6.4x | | 5.9x | | 5.4x |
| Net debt to real estate assets, excl property acc depr. | 24.7 | % | | 22.0 | % | | 17.7 | % | | 17.7 | % |
| Net debt to total assets, excl property acc depr. | 21.3 | % | | 19.3 | % | | 14.6 | % | | 14.3 | % |
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| Dividend Paid Per Share | | | | Liquidity and Credit Facility |
| Q4 2022 | | $0.20520 | | | | Pro Rata Cash | | $ | 164,448 | |
| Q3 2022 | | $0.20520 | | | | Available under credit facility | | 350,000 | |
| Q2 2022 | | $0.20520 | | | | Total | | $ | 514,448 | |
| Q1 2022 | | $0.20520 | | | | | | |
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| Same Property | | Same Property | | Total |
| Three Months Ended December 31 | | Year Ended December 31 | | Year Ended December 31 |
| 2022 | | 2021 | | 2022 | | 2021 | | 2022 | | 2021 |
| Portfolio Metrics, Pro Rata | | | | | | | | | | | |
| No. of properties | 56 | | 56 | | 55 | | 55 | | 62 | | 62 |
| GLA (square feet) | 8,710 | | 8,712 | | 8,477 | | 8,479 | | 9,790 | | 9,532 |
| Economic Occupancy | 93.8 | % | | 92.8 | % | | 94.3 | % | | 93.1 | % | | 93.9 | % | | 92.8 | % |
| Leased Occupancy | 96.1 | % | | 94.0 | % | | 96.1 | % | | 94.3 | % | | 96.1 | % | | 93.9 | % |
| ABR PSF | $19.26 | | $18.67 | | $19.22 | | $18.60 | | $19.08 | | $18.59 |
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| | Supplemental - Quarter End December 31, 2022 - 1 |
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Consolidated Balance Sheets
In thousands, except share and per share amounts
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| As of |
| December 31, 2022 | | December 31, 2021 |
| Assets | (unaudited) | | |
| Investment properties | | | |
| Land | $ | 650,764 | | | $ | 598,936 | |
| Building and other improvements | 1,825,893 | | | 1,664,525 | |
| Construction in progress | 5,005 | | | 9,642 | |
| Total | 2,481,662 | | | 2,273,103 | |
| Less accumulated depreciation | (389,361) | | | (350,256) | |
| Net investment properties | 2,092,301 | | | 1,922,847 | |
| Cash, cash equivalents and restricted cash | 137,762 | | | 44,854 | |
| Investment in unconsolidated entities | 56,131 | | | 107,944 | |
| Intangible assets, net | 101,167 | | | 81,026 | |
| Accounts and rents receivable | 34,528 | | | 30,059 | |
| Deferred costs and other assets, net | 51,145 | | | 25,685 | |
| Total assets | $ | 2,473,034 | | | $ | 2,212,415 | |
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| Liabilities | | | |
| Debt, net | $ | 754,551 | | | $ | 533,082 | |
| Accounts payable and accrued expenses | 42,792 | | | 36,208 | |
| Distributions payable | 13,837 | | | 13,802 | |
| Intangible liabilities, net | 29,658 | | | 28,995 | |
| Other liabilities | 28,287 | | | 28,776 | |
| Total liabilities | 869,125 | | | 640,863 | |
| Commitments and contingencies | | | |
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| Stockholders' Equity | | | |
| Preferred stock, $0.001 par value, 40,000,000 shares authorized, none outstanding. | — | | | — | |
Common stock, $0.001 par value, 146,000,000 shares authorized,
67,472,553 shares issued and outstanding as of December 31, 2022 and
67,344,374 shares issued and outstanding as of December 31, 2021 | 67 | | | 67 | |
| Additional paid-in capital | 5,456,968 | | | 5,452,550 | |
| Distributions in excess of accumulated net income | (3,879,847) | | | (3,876,743) | |
| Accumulated comprehensive income (loss) | 26,721 | | | (4,322) | |
| Total stockholders' equity | 1,603,909 | | | 1,571,552 | |
| Total liabilities and stockholders' equity | $ | 2,473,034 | | | $ | 2,212,415 | |
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| | Supplemental - Quarter End December 31, 2022 - 2 |
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Consolidated Statements of Operations and Comprehensive (Loss) Income
In thousands, except share and per share information, unaudited
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| Three Months Ended December 31 | | Year Ended December 31 |
| 2022 | | 2021 | | 2022 | | 2021 |
| Income | | | | | | | |
| Lease income, net | $ | 58,418 | | | $ | 52,481 | | | $ | 232,980 | | | $ | 207,350 | |
| Other property income | 275 | | | 327 | | | 1,161 | | | 1,087 | |
| Other fee income | 578 | | | 772 | | | 2,566 | | | 3,542 | |
| Total income | 59,271 | | | 53,580 | | | 236,707 | | | 211,979 | |
| | | | | | | |
| Operating expenses | | | | | | | |
| Depreciation and amortization | 23,897 | | | 22,143 | | | 94,952 | | | 87,143 | |
| Property operating | 11,983 | | | 8,862 | | | 40,239 | | | 32,788 | |
| Real estate taxes | 7,330 | | | 6,531 | | | 32,925 | | | 31,312 | |
| General and administrative | 10,103 | | | 9,149 | | | 33,342 | | | 38,192 | |
| Direct listing costs | — | | | 18,065 | | | — | | | 19,769 | |
| Total operating expenses | 53,313 | | | 64,750 | | | 201,458 | | | 209,204 | |
| | | | | | | |
| Other income (expense) | | | | | | | |
| Interest expense, net | (8,648) | | | (4,305) | | | (26,777) | | | (16,261) | |
| Loss on extinguishment of debt | (85) | | | — | | | (181) | | | (400) | |
| | | | | | | |
| Gain on sale of investment properties, net | 1,393 | | | 6 | | | 38,249 | | | 1,522 | |
| Equity in (losses) earnings of unconsolidated entities | (121) | | | 3,957 | | | 3,663 | | | 6,398 | |
| Other income and expense, net | 1,378 | | | 761 | | | 2,030 | | | 606 | |
| Total other income (expense), net | (6,083) | | | 419 | | | 16,984 | | | (8,135) | |
| | | | | | | |
| Net (loss) income | $ | (125) | | | $ | (10,751) | | | $ | 52,233 | | | $ | (5,360) | |
| | | | | | | |
| Weighted-average common shares outstanding, basic | 67,428,549 | | | 69,117,723 | | | 67,406,233 | | | 71,072,933 | |
| Weighted-average common shares outstanding, diluted | 67,428,549 | | | 69,117,723 | | | 67,525,935 | | | 71,072,933 | |
| | | | | | | |
| Net (loss) income per common share, basic | $ | (0.00) | | | $ | (0.16) | | | $ | 0.77 | | | $ | (0.08) | |
| Net (loss) income per common share, diluted | $ | (0.00) | | | $ | (0.16) | | | $ | 0.77 | | | $ | (0.08) | |
| | | | | | | |
| Distributions declared per common share outstanding | $ | 0.21 | | | $ | 0.20 | | | $ | 0.82 | | | $ | 0.78 | |
| Distributions paid per common share outstanding | $ | 0.21 | | | $ | 0.20 | | | $ | 0.82 | | | $ | 0.78 | |
| | | | | | | |
| Comprehensive (loss) income | | | | | | | |
| Net (loss) income | $ | (125) | | | $ | (10,751) | | | $ | 52,233 | | | $ | (5,360) | |
| Unrealized (loss) gain on derivatives | (860) | | | 2,235 | | | 32,052 | | | 3,795 | |
| Reclassification (to) from net (loss) income | (1,756) | | | 1,104 | | | (1,009) | | | 4,332 | |
| Comprehensive (loss) income | $ | (2,741) | | | $ | (7,412) | | | $ | 83,276 | | | $ | 2,767 | |
| | | | | | | | |
| | Supplemental - Quarter End December 31, 2022 - 3 |
| | |
| | |
Consolidated Supplemental Details of Assets and Liabilities
In thousands
| | | | | | | | | | | |
| As of |
| December 31, 2022 | | December 31, 2021 |
| Accounts and rents receivable | | | |
| Billed base rent, recoveries, and other revenue | $ | 14,701 | | | $ | 13,394 | |
| Straight-line rent receivables | 19,827 | | | 16,665 | |
| Total | $ | 34,528 | | | $ | 30,059 | |
| | | |
| Deferred cost and other assets, net | | | |
| Fair value of derivatives | $ | 25,201 | | | $ | — | |
| Lease commissions, net | 13,834 | | | 12,427 | |
| Other assets | 4,092 | | | 3,520 | |
| Deferred costs, net | 3,089 | | | 3,280 | |
| Right of use assets, net | 2,650 | | | 2,746 | |
| Loan fees, net | 2,279 | | | 3,712 | |
| Total | $ | 51,145 | | | $ | 25,685 | |
| | | |
| Other liabilities | | | |
| Deferred revenues | $ | 9,531 | | | $ | 6,758 | |
| Unearned income | 7,155 | | | 6,299 | |
| Security deposits | 6,318 | | | 5,466 | |
| Operating lease liabilities | 3,265 | | | 3,189 | |
| Other liabilities | 1,997 | | | 2,168 | |
| Financing lease liabilities | 21 | | | 283 | |
| Fair value of derivatives | — | | | 4,613 | |
| Total | $ | 28,287 | | | $ | 28,776 | |
| | | | | | | | |
| | Supplemental - Quarter End December 31, 2022 - 4 |
| | |
| | |
Consolidated Supplemental Details of Operations
In thousands
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31 | | Year Ended December 31 |
| | 2022 | | 2021 | | 2022 | | 2021 |
| Income | | | | | | | |
| * | Minimum base rent | $ | 37,158 | | | $ | 33,719 | | | $ | 145,467 | | | $ | 128,716 | |
| * | Real estate tax recoveries | 6,964 | | | 6,061 | | | 30,107 | | | 27,874 | |
| * | Common area maintenance, insurance, and other recoveries | 7,610 | | | 6,243 | | | 28,072 | | | 23,948 | |
| * | Ground rent income | 3,813 | | | 3,338 | | | 14,991 | | | 13,167 | |
| Amortization of market-lease intangibles and inducements, net | 995 | | | 914 | | | 5,589 | | | 4,318 | |
| * | Short-term and other lease income | 1,475 | | | 899 | | | 4,333 | | | 3,378 | |
| Termination fee income | (13) | | | 38 | | | 339 | | | 406 | |
| Straight-line rent adjustment, net | 566 | | | 776 | | | 2,645 | | | 3,272 | |
| Reversal of (provision for) uncollectible straight-line rent, net | 124 | | | 126 | | | 1,170 | | | (468) | |
| * | Provision for uncollectible billed rent and recoveries | (425) | | | (631) | | | (1,065) | | | (2,264) | |
| * | Reversal of uncollectible billed rent and recoveries | 151 | | | 998 | | | 1,332 | | | 5,003 | |
| Lease income, net | 58,418 | | | 52,481 | | | 232,980 | | | 207,350 | |
| | | | | | | | |
| * | Other property income | 275 | | | 327 | | | 1,161 | | | 1,087 | |
| | | | | | | | |
| JV property management fee | 283 | | | 406 | | | 1,301 | | | 1,952 | |
| JV asset management fee | 196 | | | 269 | | | 882 | | | 1,128 | |
| JV leasing commissions | 99 | | | 97 | | | 383 | | | 462 | |
| Other fee income | 578 | | | 772 | | | 2,566 | | | 3,542 | |
| | | | | | | | |
| Total income | $ | 59,271 | | | $ | 53,580 | | | $ | 236,707 | | | $ | 211,979 | |
| | | | | | | | |
| Operating Expenses | | | | | | | |
| Depreciation and amortization | $ | 23,897 | | | $ | 22,143 | | | $ | 94,952 | | | $ | 87,143 | |
| | | | | | | | |
| * | Property operating | 11,983 | | | 8,862 | | | 40,239 | | | 32,788 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| * | Real estate taxes | 7,330 | | | 6,531 | | | 32,925 | | | 31,312 | |
| | | | | | | | |
| General and administrative expenses | 7,980 | | | 7,436 | | | 29,297 | | | 31,296 | |
| Stock based compensation costs | 2,686 | | | 2,400 | | | 6,806 | | | 9,543 | |
| Capitalized direct development compensation costs | (563) | | | (687) | | | (2,761) | | | (2,647) | |
| General and administrative | 10,103 | | | 9,149 | | | 33,342 | | | 38,192 | |
| | | | | | | | |
| Direct listing costs | — | | | 18,065 | | | — | | | 19,769 | |
| | | | | | | | |
| Total operating expenses | $ | 53,313 | | | $ | 64,750 | | | $ | 201,458 | | | $ | 209,204 | |
* Component of Net Operating Income
| | | | | | | | |
| | Supplemental - Quarter End December 31, 2022 - 5 |
| | |
| | |
Reconciliation of Non-GAAP Measures
Pro Rata, in thousands
Same Property NOI
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31 | | Year Ended December 31 |
| 2022 | | 2021 | | 2022 | | 2021 |
| Income | | | | | | | |
| Minimum base rent | $ | 33,352 | | | $ | 31,945 | | | $ | 127,514 | | | $ | 119,448 | |
| Real estate tax recoveries | 6,300 | | | 5,558 | | | 25,482 | | | 25,198 | |
| Common area maintenance, insurance, and other recoveries | 6,368 | | | 5,836 | | | 23,864 | | | 22,092 | |
| Ground rent income | 3,401 | | | 3,278 | | | 13,292 | | | 12,816 | |
| Short-term and other lease income | 1,448 | | | 897 | | | 4,250 | | | 3,345 | |
| Provision for uncollectible billed rent and recoveries | (295) | | | (285) | | | (824) | | | (2,603) | |
| Reversal of uncollectible billed rent and recoveries | 124 | | | 570 | | | 1,271 | | | 5,206 | |
| Other property income | 265 | | | 328 | | | 1,123 | | | 1,087 | |
| Total income | 50,963 | | | 48,127 | | | 195,972 | | | 186,589 | |
| | | | | | | |
| Operating Expenses | | | | | | | |
| Property operating | 10,500 | | | 8,374 | | | 35,085 | | | 30,681 | |
| Real estate taxes | 6,601 | | | 6,010 | | | 27,695 | | | 28,467 | |
| Total operating expenses | 17,101 | | | 14,384 | | | 62,780 | | | 59,148 | |
| | | | | | | |
| Same Property NOI | 33,862 | | | 33,743 | | | 133,192 | | | 127,441 | |
| | | | | | | |
| JV Same Property NOI | 1,966 | | | 1,945 | | | 7,885 | | | 7,380 | |
| | | | | | | |
| Pro Rata Same Property NOI | $ | 35,828 | | | $ | 35,688 | | | $ | 141,077 | | | $ | 134,821 | |
| | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| % Change over Prior Period | 0.4 | % | | | | 4.6 | % | | |
| | | | | | | |
| Same Property count | 56 | | | | 55 | | |
Reconciliation of Net (Loss) Income to Pro Rata Same Property NOI
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31 | | Year Ended December 31 |
| 2022 | | 2021 | | 2022 | | 2021 |
| Net (loss) income | $ | (125) | | | $ | (10,751) | | | $ | 52,233 | | | $ | (5,360) | |
| Adjustments to reconcile to non-GAAP metrics: | | | | | | | |
| Other income and expense, net | (1,378) | | | (761) | | | (2,030) | | | (606) | |
| Equity in losses (earnings) of unconsolidated entities | 121 | | | (3,957) | | | (3,663) | | | (6,398) | |
| Interest expense, net | 8,648 | | | 4,305 | | | 26,777 | | | 16,261 | |
| Loss on extinguishment of debt | 85 | | | — | | | 181 | | | 400 | |
| Gain on sale of investment properties, net | (1,393) | | | (6) | | | (38,249) | | | (1,522) | |
| | | | | | | |
| Depreciation and amortization | 23,897 | | | 22,143 | | | 94,952 | | | 87,143 | |
| General and administrative | 10,103 | | | 9,149 | | | 33,342 | | | 38,192 | |
| Direct listing costs | — | | | 18,065 | | | — | | | 19,769 | |
| Other fee income | (578) | | | (772) | | | (2,566) | | | (3,542) | |
| Adjustments to NOI (a) | (1,671) | | | (1,854) | | | (9,743) | | | (7,528) | |
| NOI | 37,709 | | | 35,561 | | | 151,234 | | | 136,809 | |
| NOI from other investment properties | (3,847) | | | (1,818) | | | (18,042) | | | (9,368) | |
| Same Property NOI | 33,862 | | | 33,743 | | | 133,192 | | | 127,441 | |
| IAGM Same Property NOI at share | 1,966 | | | 1,945 | | | 7,885 | | | 7,380 | |
| Pro Rata Same Property NOI | $ | 35,828 | | | $ | 35,688 | | | $ | 141,077 | | | $ | 134,821 | |
(a)Adjustments to NOI include termination fee income and expense and GAAP Rent Adjustments.
| | | | | | | | |
| | Supplemental - Quarter End December 31, 2022 - 6 |
| | |
| | |
Reconciliation of Non-GAAP Measures, continued
In thousands, except share and per share amounts
NAREIT FFO and Core FFO | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31 | | Year Ended December 31 |
| 2022 | | 2021 | | 2022 | | 2021 |
| Net (loss) income | $ | (125) | | | $ | (10,751) | | | $ | 52,233 | | | $ | (5,360) | |
| Depreciation and amortization related to investment properties | 23,698 | | | 21,929 | | | 94,142 | | | 86,257 | |
| | | | | | | |
| Gain on sale of investment properties, net | (1,393) | | | (6) | | | (38,249) | | | (1,522) | |
Unconsolidated joint venture adjustments (a) | 1,595 | | | (1,230) | | | 3,850 | | | 4,713 | |
| NAREIT FFO Applicable to Common Shares and Dilutive Securities | 23,775 | | | 9,942 | | | 111,976 | | | 84,088 | |
| Amortization of market-lease intangibles and inducements, net | (995) | | | (914) | | | (5,589) | | | (4,318) | |
| Straight-line rent adjustments, net | (690) | | | (903) | | | (3,815) | | | (2,805) | |
| Direct listing costs | — | | | 18,065 | | | — | | | 19,769 | |
Adjusting items, net (b) | 705 | | | (13) | | | 2,798 | | | 2,201 | |
Unconsolidated joint venture adjusting items, net (c) | 282 | | | 106 | | | 582 | | | 672 | |
| Core FFO Applicable to Common Shares and Dilutive Securities | $ | 23,077 | | | $ | 26,283 | | | $ | 105,952 | | | $ | 99,607 | |
| | | | | | | |
| Weighted average common shares outstanding - basic | 67,428,549 | | | 69,117,723 | | | 67,406,233 | | | 71,072,933 | |
Dilutive effect of unvested restricted shares (d) | — | | | — | | | 119,702 | | | — | |
| Weighted average common shares outstanding - diluted | 67,428,549 | | | 69,117,723 | | | 67,525,935 | | | 71,072,933 | |
| | | | | | | |
| NAREIT FFO Applicable to Common Shares and Dilutive Securities per share | $ | 0.35 | | | $ | 0.14 | | | $ | 1.66 | | | $ | 1.18 | |
| Core FFO Applicable to Common Shares and Dilutive Securities per share | $ | 0.34 | | | $ | 0.38 | | | $ | 1.57 | | | $ | 1.40 | |
(a)Represents our share of depreciation, amortization and gain on sale related to investment properties held in IAGM.
(b)Adjusting items, net, are primarily loss on extinguishment of debt, amortization of debt discounts and financing costs, depreciation and amortization of corporate assets, and non-operating income and expenses, net, which includes items which are not pertinent to measuring on-going operating performance, such as miscellaneous and settlement income.
(c)Represents our share of amortization of market lease intangibles and inducements, net, straight line rent adjustments, net and adjusting items, net related to IAGM.
(d)For purposes of calculating non-GAAP per share metrics, the same denominator is used as that which would be used in calculating diluted earnings per share in accordance with GAAP. For the three months ended December 31, 2022, three months ended December 31, 2021, and year ended December 31, 2021, unvested restricted shares were antidilutive and therefore excluded from the denominator in the diluted earnings per share calculation in accordance with GAAP.
EBITDA, Pro Rata
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31 | | Year Ended December 31 |
| 2022 | | 2021 | | 2022 | | 2021 |
| Net (loss) income | $ | (125) | | | $ | (10,751) | | | $ | 52,233 | | | $ | (5,360) | |
| Interest expense | 9,206 | | | 4,977 | | | 28,978 | | | 19,362 | |
| Income tax expense (benefit) | 129 | | | 102 | | | 458 | | | 377 | |
| Depreciation and amortization | 25,358 | | | 23,920 | | | 100,731 | | | 95,083 | |
| EBITDA | 34,568 | | | 18,248 | | | 182,400 | | | 109,462 | |
| Adjustments to reconcile to Adjusted EBITDA | | | | | | | |
| Direct listing costs | — | | | 18,065 | | | — | | | 19,769 | |
| | | | | | | |
| Gain on sale of investment properties, net | (1,259) | | | (3,013) | | | (40,178) | | | (4,749) | |
| Loss on debt extinguishment | 95 | | | — | | | 302 | | | 526 | |
Non-operating income and expense, net (a) | (243) | | | (887) | | | (1,070) | | | (893) | |
Other leasing adjustments (b) | (1,539) | | | (1,770) | | | (9,086) | | | (6,842) | |
| Adjusted EBITDA | $ | 31,622 | | | $ | 30,643 | | | $ | 132,368 | | | $ | 117,273 | |
(a)Non-operating income and expense, net, includes other items which are not pertinent to measuring ongoing operating performance, such as miscellaneous and settlement income.
(b)Other leasing adjustments includes amortization of market lease intangibles and straight-line rent adjustments.
| | | | | | | | |
| | Supplemental - Quarter End December 31, 2022 - 7 |
| | |
| | |
Summary of Outstanding Debt
In thousands
| | | | | | | | | | | | | | | | | | | | | | | |
| Balance as of
December 31, 2022 | | Ratio | | Weighted Average
Interest Rate | | Weighted Average
Years to Maturity |
| Fixed rate secured debt | $ | 109,812 | | | 15% | | 3.95% | | 3.9 |
| Fixed rate unsecured debt | 550,000 | | | 72% | | 3.82% | | 5.7 |
| Variable rate unsecured debt | 100,000 | | | 13% | | 5.66% | | 4.2 |
| Issuance costs, net of accumulated amortization | (5,261) | | | n/a | | n/a | | n/a |
| Total consolidated debt, net | $ | 754,551 | | | 100% | | 4.08% | | 5.2 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Schedule of Maturities by Year | | | | | | |
| | | | | | | | | | | | |
| | Fixed Rate | | Variable Rate | | | | | | |
| Maturity Year | | Secured
Debt | | Unsecured Debt | | Unsecured Debt | | Total Consolidated Debt | | Total JV Debt at 100% (a) | | Total
Debt |
| 2023 | | 13,732 | | | — | | | — | | | 13,732 | | | 92,468 | | | 106,200 | |
| 2024 | | 15,700 | | | — | | | — | | | 15,700 | | | — | | | 15,700 | |
| 2025 | | 22,880 | | | — | | | — | | | 22,880 | | | — | | | 22,880 | |
| 2026 | | — | | | 200,000 | | | — | | | 200,000 | | | — | | | 200,000 | |
| 2027 | | 26,000 | | | 100,000 | | | 100,000 | | | 226,000 | | | — | | | 226,000 | |
| Thereafter | | 31,500 | | | 250,000 | | | — | | | 281,500 | | | — | | | 281,500 | |
| Issuance costs, net of amortization | | — | | | — | | | — | | | (5,261) | | | (282) | | | (5,543) | |
| Total | | $ | 109,812 | | | $ | 550,000 | | | $ | 100,000 | | | $ | 754,551 | | | $ | 92,186 | | | $ | 846,737 | |
(a)Weighted average term for IAGM debt, of which our share is 55%, is 0.8 years and weighted average rate is 2.75%. The 2023 maturities for JV debt are not inclusive of extension options available to the JV.
Debt Maturities as of December 31, 2022
| | | | | | | | | | | | | | | | | | | | | | | |
| Maturity Date | | Interest Rate | | Interest Rate Type | | Balance |
| Mortgages Payable | | | | | | | |
| Renaissance Center II (a) | 4/6/2023 | | 3.49% | | Fixed | | 13,732 | |
| The Highlands of Flower Mound | 12/1/2025 | | 3.88% | | Fixed | | 22,880 | |
| Escarpment Village | 7/1/2027 | | 3.86% | | Fixed | | 26,000 | |
| Shops at Arbor Trails | 12/5/2029 | | 4.12% | | Fixed | | 31,500 | |
| Total | | | | | | | 94,112 | |
| | | | | | | |
| Pooled Mortgages Payable | | | | | | | |
| Plantation Grove | 6/5/2024 | | 4.24% | | Fixed | | 7,300 | |
| Suncrest Village | 6/5/2024 | | 4.24% | | Fixed | | 8,400 | |
| Total | | | | | | | 15,700 | |
| | | | | | | |
| Total mortgages payable | | | 3.95% | | | | 109,812 | |
| | | | | | | |
| Term loans | | | | | | | |
| $200.0 million 5 year | 9/22/2026 | | 2.71% (b) | | Fixed | | 100,000 | |
| $200.0 million 5 year | 9/22/2026 | | 2.72% (b) | | Fixed | | 100,000 | |
| $200.0 million 5.5 year | 3/22/2027 | | 2.77% (b) | | Fixed | | 50,000 | |
| $200.0 million 5.5 year | 3/22/2027 | | 2.76% (b) | | Fixed | | 50,000 | |
| $200.0 million 5.5 year | 3/22/2027 | | 1M SOFR + 1.30% (c) | | Variable | | 100,000 | |
| Total | | | | | | | 400,000 | |
| | | | | | | |
| Senior Notes | | | | | | | |
| $150.0 million Series A | 8/11/2029 | | 5.07% | | Fixed | | 150,000 | |
| $100.0 million Series B | 8/11/2032 | | 5.20% | | Fixed | | 100,000 | |
| | | | | | | 250,000 | |
| | | | | | | |
| Grand total | | | 4.08% | | | | $ | 759,812 | |
(a)On February 6, 2023, the Company extinguished the $13.7 million mortgage payable secured by Renaissance Center with its available liquidity.
(b)Interest rates reflect the fixed rates achieved through the Company's interest rate swaps.
(c)As of December 31, 2022, 1-Month Term SOFR was 4.36%. On May 11, 2022, the Company transitioned its Amended Revolving Credit Agreement and Amended Term Loan Agreement from 1-Month LIBOR to pricing based on 1-Month Term SOFR.
| | | | | | | | |
| | Supplemental - Quarter End December 31, 2022 - 8 |
| | |
| | |
Consolidated Debt Covenants, Interest Rate Swaps, and Capital Expenditures
Unaudited, dollars in thousands
Debt Covenants (trailing 12 months)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | For the quarter ended |
| Description | | Term Loan Covenants | | Senior Note Covenants | | Q4 2022 | | Q3 2022 | | Q2 2022 | | Q1 2022 |
| Leverage Ratio | | < 60.0% | | < 60.0% | | 28.9% | | 31.4% | | 28.5% | | 28.7% |
| Fixed Charge Coverage Ratio | | > 1.50 | | > 1.50 | | 4.80 | | 5.61 | | 6.38 | | 6.62 |
| Maximum Dividend Payout | | < 95% | | N/A | | 49.4% | | 48.8% | | 48.8% | | 51.5% |
| Maximum Secured Recourse Debt | | < 10% of Total Asset Value | | < 10% of Total Asset Value | | —% | | —% | | —% | | —% |
| Unsecured Interest Coverage Ratio | | > 1.75 | | > 1.75 | | 3.67 | | 3.55 | | 4.28 | | 4.26 |
| Unsecured Leverage Ratio | | < 60% | | < 60% | | 31.0% | | 33.2% | | 27.5% | | 27.8% |
Interest Rate Swaps, Consolidated
The Company is party to four effective interest rate swap agreements and four interest rate forward swap agreements, which address the periods between the maturity dates of the effective swaps and the maturity dates of the Amended Term Loan Agreement. In tandem, the interest rate swaps achieve fixed interest rates for a constant notional amount through the maturity dates of the Amended Term Loan Agreement.
On December 15, 2022, the Company transitioned its interest rate swaps from 1-Month LIBOR to 1-Month Term SOFR.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Effective Interest
Rate Swaps | | Notional Amount | | Company Receives
Variable Rate of | | Company Pays
Fixed Rate of | | Fixed Rate Achieved | | Effective Date | | Maturity Date |
| 5 Year Term Loan | | $ | 100,000 | | | 1-Month SOFR | | 1.41% | | 2.71% | | 12/2/2019 | | 12/21/2023 |
| 5 Year Term Loan | | 100,000 | | | 1-Month SOFR | | 1.42% | | 2.72% | | 12/2/2019 | | 12/21/2023 |
| 5.5 Year Term Loan | | 50,000 | | | 1-Month SOFR | | 1.47% | | 2.77% | | 12/2/2019 | | 6/21/2024 |
| 5.5 Year Term Loan | | 50,000 | | | 1-Month SOFR | | 1.46% | | 2.76% | | 12/2/2019 | | 6/21/2024 |
| | $ | 300,000 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Forward Interest
Rate Swaps | | Notional Amount | | Company Receives
Variable Rate of | | Company Pays
Fixed Rate of | | Fixed Rate Achieved | | Effective Date | | Maturity Date |
| 5 Year Term Loan | | $ | 100,000 | | | 1-Month SOFR | | 1.51% | | 2.81% | | 12/21/2023 | | 9/22/2026 |
| 5 Year Term Loan | | 100,000 | | | 1-Month SOFR | | 1.51% | | 2.81% | | 12/21/2023 | | 9/22/2026 |
| 5.5 Year Term Loan | | 50,000 | | | 1-Month SOFR | | 1.48% | | 2.78% | | 6/21/2024 | | 3/22/2027 |
| 5.5 Year Term Loan | | 50,000 | | | 1-Month SOFR | | 1.54% | | 2.84% | | 6/21/2024 | | 3/22/2027 |
| | $ | 300,000 | | | | | | | | | | | |
Capital Expenditures, Pro Rata
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31 | | Year Ended December 31 |
| 2022 | | 2021 | | 2022 | | 2021 |
| Leasing and Maintenance Capital Expenditures: | | | | | | | |
| Tenant improvements | $ | 2,626 | | | $ | 1,577 | | | $ | 7,422 | | | $ | 6,377 | |
| Leasing commissions | 961 | | | 1,043 | | | 4,693 | | | 4,544 | |
| Maintenance capital expenditures | 3,537 | | | 5,139 | | | 13,209 | | | 11,717 | |
| Total leasing and maintenance capital expenditures (a) | 7,124 | | | 7,759 | | | 25,324 | | | 22,638 | |
| Investment in development and redevelopment projects (b) | 1,418 | | | 1,412 | | | 10,656 | | | 5,833 | |
| Grand total | $ | 8,542 | | | $ | 9,171 | | | $ | 35,980 | | | $ | 28,471 | |
(a)As of December 31, 2022 and 2021, total pro rata accrued leasing and maintenance capital expenditures are $3,492 and $3,944, respectively. These accrued amounts are not reflected in the table above.
(b)As of December 31, 2022 and 2021, total pro rata accrued investment in development and redevelopment projects are $0 and $1,360, respectively. These accrued amounts are not reflected in the table above.
| | | | | | | | |
| | Supplemental - Quarter End December 31, 2022 - 9 |
| | |
| | |
Joint Venture Financial Information
In thousands
Condensed Balance Sheets | | | | | | | | | | | |
| As of |
| December 31
2022 | | December 31
2021 |
| Assets | | | |
| Investment properties | | | |
| Land | $ | 48,774 | | | $ | 89,800 | |
| Building and other improvements | 162,782 | | | 271,637 | |
| Construction in progress | 208 | | | 1,158 | |
| Total | 211,764 | | | 362,595 | |
| Less accumulated depreciation | (50,452) | | | (74,581) | |
| Net investment properties | 161,312 | | | 288,014 | |
| Cash and cash equivalents | 48,779 | | | 77,526 | |
| Intangible assets, net | 9,754 | | | 11,761 | |
| Accounts and rents receivable | 2,408 | | | 4,284 | |
| Deferred costs and other assets, net | 4,624 | | | 5,125 | |
| Total assets | $ | 226,877 | | | $ | 386,710 | |
| | | |
| Liabilities and Equity | | | |
| Mortgages debt, net | $ | 92,186 | | | $ | 165,831 | |
| Accounts payable and accrued expenses | 4,578 | | | 7,747 | |
| Intangible liabilities, net | 4 | | | 2,133 | |
| Other liabilities | 2,810 | | | 2,529 | |
| Total liabilities | 99,578 | | | 178,240 | |
| Equity | 127,299 | | | 208,470 | |
| Total liabilities and equity | $ | 226,877 | | | $ | 386,710 | |
Condensed Statement of Operations
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31 | | Year Ended December 31 |
| 2022 | | 2021 | | 2022 | | 2021 |
| Income | | | | | | | |
| Lease income, net | $ | 6,215 | | | $ | 9,070 | | | $ | 27,542 | | | $ | 41,881 | |
| Other property income | 48 | | | 41 | | | 222 | | | 264 | |
| Total income | 6,263 | | | 9,111 | | | 27,764 | | | 42,145 | |
| | | | | | | |
| Operating Expenses | | | | | | | |
| Depreciation and amortization | 2,656 | | | 3,232 | | | 10,508 | | | 14,437 | |
| Property operating | 1,345 | | | 1,550 | | | 5,149 | | | 7,265 | |
| Real estate taxes | 912 | | | 1,115 | | | 4,086 | | | 7,507 | |
| Asset management fee | 196 | | | 269 | | | 882 | | | 1,128 | |
| General and administrative | 48 | | | 42 | | | 226 | | | 242 | |
| Total operating expenses | 5,157 | | | 6,208 | | | 20,851 | | | 30,579 | |
| | | | | | | |
| Other income (expense) | | | | | | | |
| Interest expense, net | (1,015) | | | (1,222) | | | (4,002) | | | (5,637) | |
| Loss on extinguishment of debt | (17) | | | — | | | (219) | | | (229) | |
| | | | | | | |
| Gain on sale investment properties, net | 12,043 | | | 5,467 | | | 17,038 | | | 18,294 | |
| Other income and expense, net | (162) | | | (56) | | | (19) | | | (180) | |
| Total other income (expense), net | 10,849 | | | 4,189 | | | 12,798 | | | 12,248 | |
| | | | | | | |
| Net income | $ | 11,955 | | | $ | 7,092 | | | $ | 19,711 | | | $ | 23,814 | |
Notes:
Financial information on this page and pages 11, 12 and 13 relate to our JV with IAGM and is shown at 100%. See introductory note for additional details.
| | | | | | | | |
| | Supplemental - Quarter End December 31, 2022 - 10 |
| | |
| | |
Joint Venture Supplemental Details of Assets and Liabilities
In thousands
| | | | | | | | | | | |
| As of |
| December 31
2022 | | December 31
2021 |
| Accounts and rents receivable | | | |
| Billed base rent, recoveries, and other revenue | $ | 534 | | | $ | 971 | |
| Straight-line rent receivables | 1,874 | | | 3,313 | |
| Total | $ | 2,408 | | | $ | 4,284 | |
| | | |
| Deferred cost and other assets, net | | | |
| Fair value of derivatives | $ | 2,764 | | | $ | 530 | |
| Lease commissions, net | 1,519 | | | 2,900 | |
| Other assets | 341 | | | 869 | |
| Deferred costs, net | — | | | 826 | |
| Total | $ | 4,624 | | | $ | 5,125 | |
| | | |
| Other liabilities | | | |
| Other liabilities | $ | 1,485 | | | $ | 455 | |
| Unearned income | 731 | | | 1,268 | |
| Security deposits | 594 | | | 806 | |
| Total | $ | 2,810 | | | $ | 2,529 | |
| | | | | | | | |
| | Supplemental - Quarter End December 31, 2022 - 11 |
| | |
| | |
Joint Venture Supplemental Details of Operations
In thousands
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended December 31 | | Year Ended December 31 | | |
| | 2022 | | 2021 | | 2022 | | 2021 | | |
| Income | | | | | | | | | |
| * | Minimum base rent | $ | 4,008 | | | $ | 5,900 | | | $ | 17,450 | | | $ | 27,411 | | | |
| * | Real estate tax recoveries | 685 | | | 957 | | | 2,982 | | | 5,476 | | | |
| * | Common area maintenance, insurance, and other recoveries | 717 | | | 912 | | | 2,721 | | | 4,144 | | | |
| * | Ground rent income | 1,037 | | | 1,118 | | | 4,353 | | | 4,331 | | | |
| Amortization of market-lease intangibles and inducements, net | (270) | | | (193) | | | (862) | | | (810) | | | |
| * | Short-term and other lease income | 65 | | | 205 | | | 462 | | | 693 | | | |
| Termination fee income | — | | | 26 | | | 3 | | | 358 | | | |
| Straight-line rent adjustment, net | 3 | | | 21 | | | 94 | | | 239 | | | |
| Reversal of (provision for) uncollectible straight-line rent, net | — | | | 87 | | | 189 | | | 59 | | | |
| * | Provision for uncollectible billed rent and recoveries | (30) | | | (174) | | | (65) | | | (657) | | | |
| * | Reversal of uncollectible billed rent and recoveries | — | | | 211 | | | 215 | | | 637 | | | |
| Lease income, net | 6,215 | | | 9,070 | | | 27,542 | | | 41,881 | | | |
| | | | | | | | | | |
| * | Other property income | 48 | | | 41 | | | 222 | | | 264 | | | |
| | | | | | | | | | |
| Total income | $ | 6,263 | | | $ | 9,111 | | | $ | 27,764 | | | $ | 42,145 | | | |
| | | | | | | | | | |
| Operating expenses | | | | | | | | | |
| Depreciation and amortization | $ | 2,656 | | | $ | 3,232 | | | $ | 10,508 | | | $ | 14,437 | | | |
| * | Property operating expenses | 1,345 | | | 1,550 | | | 5,149 | | | 7,265 | | | |
| * | Real estate taxes | 912 | | | 1,115 | | | 4,086 | | | 7,507 | | | |
| Asset management fee | 196 | | | 269 | | | 882 | | | 1,128 | | | |
| General and administrative | 48 | | | 42 | | | 226 | | | 242 | | | |
| Total operating expenses | $ | 5,157 | | | $ | 6,208 | | | $ | 20,851 | | | $ | 30,579 | | | |
* Component of Net Operating Income
| | | | | | | | |
| | Supplemental - Quarter End December 31, 2022 - 12 |
| | |
| | |
Summary of Outstanding Joint Venture Debt
In thousands
| | | | | | | | | | | | | | | | | | | | | | | |
| Balance as of
December 31, 2022 | | Ratio | | Weighted Average
Interest Rate | | Weighted Average
Years to Maturity |
| Fixed rate secured debt | $ | 75,000 | | | 81% | | 1.99% | | 0.8 |
| Variable rate secured debt | 17,468 | | | 19% | | 6.01% | | 0.8 |
| Issuance costs, net of accumulated amortization | (282) | | | n/a | | n/a | | n/a |
| Total debt, net | $ | 92,186 | | | 100% | | 2.75% | | 0.8 |
Debt Maturities as of December 31, 2022
| | | | | | | | | | | | | | | | | | | | | | | |
| Maturity Date | | Interest Rate | | Interest Rate Type | | Balance |
| | | | | | | |
Pooled Mortgages Payable (a) | | | | | | | |
| Cross collateralized | 11/2/23 | | 1M SOFR + 1.65% (b) | | Variable | | $ | 17,468 | |
| Cross collateralized, swapped to fixed rate | 11/2/23 | | 2.00% | | Fixed | | 45,000 | |
| Cross collateralized, swapped to fixed rate | 11/2/23 | | 1.97% | | Fixed | | 30,000 | |
| Total | | | | | | | $ | 92,468 | |
(a)The 2023 maturities for JV debt are not inclusive of extension options available to the JV.
(b)As of December 31, 2022, 1-Month Term SOFR was 4.36%. On September 28, 2022, the JV transitioned its pooled mortgages payable from 1-Month LIBOR to pricing based on 1-Month Term SOFR.
| | | | | | | | |
| | Supplemental - Quarter End December 31, 2022 - 13 |
| | |
| | |
Markets and Tenant Size
Pro rata, GLA and dollar amounts in thousands, except per square foot amounts
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Market | | No. of Properties | | ABR | | ABR psf | | ABR as
% of Total | | GLA | | GLA as
% of Total |
| Austin-Round Rock, TX | | 8 | | $ | 32,217 | | | $16.33 | | 18.3 | % | | 2,056 | | 21.0 | % |
| Atlanta Metro Area, GA | | 10 | | 19,342 | | | 19.10 | | 11.1 | % | | 1,058 | | 10.8 | % |
| Miami-Fort Lauderdale-Miami Beach, FL | | 3 | | 18,480 | | | 23.00 | | 10.6 | % | | 859 | | 8.8 | % |
| Dallas-Fort Worth-Arlington, TX | | 7 | | 16,723 | | | 19.86 | | 9.6 | % | | 938 | | 9.6 | % |
| Houston-Sugar Land-Baytown, TX | | 6 | | 12,987 | | | 16.28 | | 7.4 | % | | 904 | | 9.2 | % |
| Raleigh-Cary-Durham, NC | | 5 | | 12,630 | | | 19.34 | | 7.2 | % | | 688 | | 7.0 | % |
| So. California - Los Angeles, CA | | 3 | | 10,547 | | | 20.57 | | 6.0 | % | | 579 | | 5.9 | % |
| Tampa-St. Petersburg, FL | | 3 | | 8,809 | | | 12.85 | | 5.0 | % | | 753 | | 7.7 | % |
| Orlando-Kissimmee, FL | | 4 | | 8,690 | | | 23.66 | | 5.0 | % | | 378 | | 3.9 | % |
| Washington D.C/Richmond Metro Area | | 3 | | 8,276 | | | 24.52 | | 4.7 | % | | 358 | | 3.7 | % |
| Charlotte-Gastonia-Concord, NC | | 3 | | 8,136 | | | 19.65 | | 4.7 | % | | 424 | | 4.3 | % |
| San Antonio, TX | | 2 | | 5,938 | | | 25.26 | | 3.4 | % | | 261 | | 2.7 | % |
| So. California - San Diego, CA | | 2 | | 5,685 | | | 26.06 | | 3.3 | % | | 225 | | 2.3 | % |
| So. California - Inland Empire, CA | | 2 | | 5,684 | | | 23.09 | | 3.3 | % | | 246 | | 2.5 | % |
| Cape Coral-Fort Myers, FL | | 1 | | 636 | | 10.10 | | 0.4 | % | | 63 | | 0.6 | % |
| Total | | 62 | | $ | 174,780 | | | $19.08 | | 100 | % | | 9,790 | | 100 | % |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| State | | No. of Properties | | ABR | | ABR psf | | ABR as
% of Total | | GLA | | GLA as
% of Total |
| Texas | | 23 | | $ | 67,865 | | | $17.64 | | 38.7 | % | | 4,159 | | 42.5 | % |
| Florida | | 11 | | 36,615 | | | 19.08 | | 21.0 | % | | 2,053 | | 21.0 | % |
| California | | 7 | | 21,916 | | | 22.43 | | 12.6 | % | | 1,050 | | 10.7 | % |
| North Carolina | | 8 | | 20,766 | | | 19.46 | | 11.9 | % | | 1,112 | | 11.3 | % |
| Georgia | | 10 | | 19,342 | | | 19.10 | | 11.1 | % | | 1,058 | | 10.8 | % |
| Maryland/Virginia | | 3 | | 8,276 | | | 24.52 | | 4.7 | % | | 358 | | 3.7 | % |
| Total | | 62 | | $ | 174,780 | | | $19.08 | | 100 | % | | 9,790 | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Tenant type | | Leased Occupancy | | ABR | | ABR PSF | | GLA |
20,000 SF+ (a) | | 98.7 | % | | $ | 58,119 | | | $ | 11.24 | | | 5,349 | |
10,000 - 19,999 SF (a) | | 98.8 | % | | 17,258 | | | 19.24 | | | 932 | |
5,000 - 9,999 SF (b) | | 91.6 | % | | 16,577 | | | 26.38 | | | 717 | |
1 - 4,999 SF (b) | | 91.3 | % | | 82,826 | | | 33.58 | | | 2,792 | |
| Total | | 96.1 | % | | $ | 174,780 | | | $ | 19.08 | | | 9,790 | |
| | | | | | | | |
Anchor Tenants (a) | | 98.7 | % | | $ | 75,377 | | | $ | 12.43 | | | 6,281 | |
Small Shops (b) | | 91.3 | % | | $ | 99,403 | | | $ | 32.12 | | | 3,509 | |
| | | | | | | | |
| | | | | | | | |
(a)Tenants with square footage greater than or equal to 10,000 square feet are considered Anchor Tenants.
(b)Tenants with square footage less than 10,000 square feet are considered Small Shops.
| | | | | | | | |
| | Supplemental - Quarter End December 31, 2022 - 14 |
| | |
| | |
Top 25 by Total ABR and Tenant Merchandise Mix
In thousands
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Parent Name | | Tenant Name/Count | | No. of Leases | | Credit Rating
(S&P) | | ABR Pro Rata Portfolio | | % of Total ABR | | GLA Pro Rata Portfolio | | % of Total Occ.GLA |
| Kroger | | Kroger 7 / Kroger Gas 1 / Harris Teeter 3 / Ralphs 3 | | 14 | | BBB | | $ | 8,277 | | | 4.7 | % | | 738 | | 7.5 | % |
| Publix Super Markets, Inc. | | Publix 13 / Publix Liquor 3 | | 16 | | N/A | | 6,885 | | | 3.9 | % | | 635 | | 6.5 | % |
| TJX Companies | | Marshalls 7 / HomeGoods 4 / TJ Maxx 2 | | 13 | | A | | 4,399 | | | 2.5 | % | | 367 | | 3.8 | % |
| Albertsons | | Safeway 1 / Tom Thumb 2 / Market Street 2 / Albertsons 1 | | 6 | | BB | | 4,303 | | | 2.5 | % | | 365 | | 3.7 | % |
| H.E.B. | | | | 5 | | N/A | | 3,669 | | | 2.1 | % | | 362 | | 3.7 | % |
| Amazon, Inc. | | Whole Foods Market 5 | | 5 | | AA | | 2,701 | | | 1.5 | % | | 194 | | 2.0 | % |
| BC Partners | | Petsmart 7 | | 7 | | B+ | | 2,375 | | | 1.4 | % | | 151 | | 1.5 | % |
| Best Buy | | | | 4 | | BBB+ | | 2,236 | | | 1.3 | % | | 138 | | 1.4 | % |
| Ulta Beauty Inc. | | | | 8 | | N/A | | 1,960 | | | 1.1 | % | | 83 | | 0.8 | % |
| Bed Bath & Beyond Inc. | | Bed Bath & Beyond 4 / Buy Buy Baby 1 | | 5 | | D | | 1,888 | | | 1.1 | % | | 150 | | 1.5 | % |
| Dick's Sporting Goods, Inc. | | Dick's Sporting Goods 2 / Going, Going, Gone 1 | | 3 | | BBB | | 1,876 | | | 1.1 | % | | 171 | | 1.7 | % |
| Apollo Global Management, Inc. | | Michael's 6 | | 6 | | N/A | | 1,755 | | | 1.0 | % | | 131 | | 1.3 | % |
| Costco Wholesale | | | | 2 | | A+ | | 1,735 | | | 1.0 | % | | 298 | | 3.0 | % |
| Trader Joe's | | | | 4 | | N/A | | 1,703 | | | 1.0 | % | | 51 | | 0.5 | % |
| Five Below, Inc. | | | | 8 | | N/A | | 1,494 | | | 0.9 | % | | 73 | | 0.7 | % |
| Ross Dress For Less | | | | 4 | | BBB+ | | 1,453 | | | 0.8 | % | | 120 | | 1.2 | % |
| Wells Fargo | | | | 9 | | BBB+ | | 1,450 | | | 0.8 | % | | 35 | | 0.4 | % |
| Bank of America | | | | 7 | | A- | | 1,381 | | | 0.8 | % | | 35 | | 0.4 | % |
| DSW, Inc. | | | | 4 | | N/A | | 1,296 | | | 0.7 | % | | 73 | | 0.7 | % |
| Sprouts Farmers Market | | | | 2 | | N/A | | 1,266 | | | 0.7 | % | | 56 | | 0.6 | % |
| Regal Cinemas | | | | 1 | | D | | 1,253 | | | 0.7 | % | | 61 | | 0.6 | % |
| Massage Envy | | | | 13 | | N/A | | 1,246 | | | 0.7 | % | | 39 | | 0.4 | % |
| Petco Animal Supplies Stores, Inc | | | | 6 | | B+ | | 1,210 | | | 0.7 | % | | 72 | | 0.7 | % |
| Kingswood Capital Management | | Cost Plus World Market 5 | | 5 | | N/A | | 1,113 | | | 0.6 | % | | 91 | | 0.9 | % |
| JP Morgan Chase | | Chase Bank 7 | | 7 | | A+ | | 1,084 | | | 0.6 | % | | 36 | | 0.4 | % |
| Totals | | | | 164 | | | | $ | 60,008 | | | 34.2 | % | | 4,525 | | 45.9 | % |
Tenant Merchandise Mix
| | | | | | | | | | | | | | |
| Tenant Category | | ABR Pro Rata Portfolio | | % of Total ABR |
| Grocery/Drug Stores | | $ | 35,281 | | | 20.1 | % |
| Soft Goods | | 29,151 | | 16.7 | % |
| Quick Service Restaurants | | 20,958 | | 12.0 | % |
| Personal Health and Beauty Services | | 19,635 | | 11.2 | % |
| Medical | | 15,217 | | 8.7 | % |
| Full Service Restaurants | | 14,749 | | 8.4 | % |
| Banks | | 8,322 | | 4.8 | % |
| Other | | 6,381 | | 3.7 | % |
| Pet Supplies | | 5,969 | | 3.4 | % |
| Fitness | | 5,930 | | 3.4 | % |
| Office/Communications | | 5,915 | | 3.4 | % |
| Other Essential Retail/Services | | 4,028 | | 2.3 | % |
| Entertainment | | 1,741 | | 1.0 | % |
| Hardware/Auto | | 1,503 | | 0.9 | % |
| | $ | 174,780 | | | 100 | % |
| | | | | | | | |
| | Supplemental - Quarter End December 31, 2022 - 15 |
| | |
| | |
Comparable and Non-Comparable Lease Statistics
Pro Rata, GLA in thousands
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| No. of Leases Executed | | GLA | | ABR PSF | | Prior
ABR PSF | | % Change over Prior Lease | | WA Lease Term (Years) | | Tenant Improvement Allowance
($ PSF) | | Lease
Commissions
($ PSF) |
| | | | | | | | | | | | | | | |
| Comparable Leases | | | | | | | | | | | | |
| Total New and Renewal Leases | | | | | | | | | | | | |
| Q4 2022 | 43 | | 338 | | $17.15 | | $16.17 | | 6.1% | | 8.4 | | $3.75 | | $0.64 |
| Q3 2022 | 58 | | 369 | | 18.18 | | 16.83 | | 8.0% | | 4.8 | | 0.45 | | 0.29 |
| Q2 2022 | 51 | | 143 | | 29.63 | | 25.56 | | 15.9% | | 7.4 | | 10.38 | | 4.10 |
| Q1 2022 | 44 | | 120 | | 26.96 | | 25.71 | | 4.9% | | 4.8 | | 4.90 | | 0.87 |
| Total | 196 | | 970 | | $20.59 | | $18.99 | | 8.4% | | 6.4 | | $3.61 | | $1.04 |
| | | | | | | | | | | | | | | |
| No. of Leases Executed | | GLA | | ABR PSF | | Prior
ABR PSF | | % Change over Prior Lease | | WA Lease Term (Years) | | Tenant Improvement Allowance
($ PSF) | | Lease
Commissions
($ PSF) |
| New Leases | | | | | | | | | | | | | | |
| Q4 2022 | 4 | | 62 | | $11.73 | | $9.83 | | 19.3% | | 15.1 | | $20.57 | | $3.50 |
| Q3 2022 | 6 | | 7 | | 39.50 | | 36.57 | | 8.0% | | 8.9 | | 20.90 | | 14.49 |
| Q2 2022 | 10 | | 63 | | 23.77 | | 16.85 | | 41.1% | | 10.0 | | 23.49 | | 9.36 |
| Q1 2022 | 1 | | 11 | | 15.50 | | 13.00 | | 19.2% | | 11.0 | | 45.00 | | 9.86 |
| Total | 21 | | 143 | | $18.74 | | $14.53 | | 29.0% | | 12.2 | | $23.69 | | $7.12 |
| | | | | | | | | | | | | | | |
| No. of Leases Executed | | GLA | | ABR PSF | | Prior
ABR PSF | | % Change over Prior Lease | | WA Lease Term (Years) | | Tenant Improvement Allowance
($ PSF) | | Lease
Commissions
($ PSF) |
| Renewals | | | | | | | | | | | | | | | |
| Q4 2022 | 39 | | 276 | | $18.36 | | $17.58 | | 4.4% | | 6.9 | | $— | | $— |
| Q3 2022 | 52 | | 362 | | 17.75 | | 16.43 | | 8.0% | | 4.8 | | 0.04 | | — |
| Q2 2022 | 41 | | 80 | | 34.19 | | 32.33 | | 5.8% | | 5.4 | | 0.19 | | — |
| Q1 2022 | 43 | | 109 | | 28.07 | | 26.94 | | 4.2% | | 4.2 | | 1.02 | | — |
| Total | 175 | | 827 | | $20.91 | | $19.75 | | 5.9% | | 5.5 | | $0.17 | | $— |
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| No. of Leases Executed | | GLA | | ABR PSF | | | | | | WA Lease Term (Years) | | Tenant Improvement Allowance
($ PSF) | | Lease
Commissions
($ PSF) |
| Non-Comparable Leases |
| Q4 2022 | 15 | | 123 | | $11.92 | | | | | | 6.1 | | $16.83 | | $5.40 |
| Q3 2022 | 18 | | 31 | | 30.61 | | | | | | 7.2 | | 25.91 | | 11.51 |
| Q2 2022 | 21 | | 135 | | 17.57 | | | | | | 7.3 | | 29.90 | | 4.72 |
| Q1 2022 | 18 | | 55 | | 28.51 | | | | | | 9.6 | | 37.93 | | 10.62 |
| Total | 72 | | 344 | | $18.45 | | | | | | 7.2 | | $26.14 | | $6.51 |
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| | Supplemental - Quarter End December 31, 2022 - 16 |
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Tenant Lease Expirations
Pro Rata, GLA and ABR in thousands, except per square foot amounts
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Anchor Tenants | | | | | | | | |
| | | | | | | | | | | | | | |
| | Lease
Expiration Year | | No. of Expiring Leases (a) | | GLA of
Expiring Leases
(square feet) | | Percent of
Total GLA of
Expiring Leases | | ABR of
Expiring Leases | | Percent of
Total ABR | | Expiring
ABR PSF (b) |
| | 2023 | | 4 | | | 168 | | | 2.8 | % | | $ | 1,491 | | | 1.9 | % | | $8.88 |
| | 2024 | | 24 | | | 527 | | | 8.7 | % | | 7,280 | | | 9.4 | % | | 13.81 | |
| | 2025 | | 20 | | | 790 | | | 13.0 | % | | 9,417 | | | 12.1 | % | | 11.92 | |
| | 2026 | | 17 | | | 478 | | | 7.9 | % | | 5,615 | | | 7.2 | % | | 11.75 | |
| | 2027 | | 42 | | | 1,402 | | | 22.9 | % | | 20,355 | | | 26.1 | % | | 14.52 | |
| | 2028 | | 23 | | | 533 | | | 8.8 | % | | 7,457 | | | 9.6 | % | | 13.99 | |
| | 2029 | | 10 | | | 342 | | | 5.6 | % | | 4,114 | | | 5.3 | % | | 12.03 | |
| | 2030 | | 8 | | | 204 | | | 3.4 | % | | 2,991 | | | 3.8 | % | | 14.66 | |
| | 2031 | | 6 | | | 294 | | | 4.8 | % | | 2,659 | | | 3.4 | % | | 9.04 | |
| | 2032 | | 10 | | | 370 | | | 6.1 | % | | 4,912 | | | 6.3 | % | | 13.28 | |
| | Thereafter | | 23 | | | 972 | | | 16.0 | % | | 11,562 | | | 14.9 | % | | 11.90 | |
| | Other (c) | | — | | | — | | | — | % | | — | | | — | % | | — | |
| | Sub total | | 187 | | | 6,080 | | | 100 | % | | $ | 77,853 | | | 100 | % | | $12.80 |
| | Vacant space | | | | 201 | | | | | | | | | |
| | Total | | | | 6,281 | | | | | | | | | |
| | | | | | | | | | | | | | |
| Small Shops | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | 2023 | | 134 | | | 280 | | | 9.0 | % | | $ | 8,119 | | | 7.5 | % | | $29.00 |
| | 2024 | | 160 | | | 390 | | | 12.6 | % | | 12,272 | | | 11.3 | % | | 31.47 |
| | 2025 | | 158 | | | 338 | | | 10.9 | % | | 11,116 | | | 10.3 | % | | 32.89 |
| | 2026 | | 187 | | | 444 | | | 14.3 | % | | 14,882 | | | 13.8 | % | | 33.52 |
| | 2027 | | 222 | | | 524 | | | 16.8 | % | | 18,446 | | | 17.0 | % | | 35.20 |
| | 2028 | | 110 | | | 278 | | | 8.9 | % | | 10,417 | | | 9.6 | % | | 37.47 |
| | 2029 | | 91 | | | 237 | | | 7.6 | % | | 8,376 | | | 7.7 | % | | 35.34 |
| | 2030 | | 59 | | | 145 | | | 4.7 | % | | 5,682 | | | 5.3 | % | | 39.19 |
| | 2031 | | 68 | | | 208 | | | 6.7 | % | | 7,810 | | | 7.2 | % | | 37.55 |
| | 2032 | | 81 | | | 198 | | | 6.4 | % | | 7,975 | | | 7.4 | % | | 40.28 |
| | Thereafter | | 15 | | | 45 | | | 1.4 | % | | 2,348 | | | 2.2 | % | | 52.18 |
| | Other (c) | | 11 | | | 23 | | | 0.7 | % | | 768 | | | 0.7 | % | | 33.39 | |
| | Totals | | 1,296 | | | 3,110 | | | 100 | % | | $ | 108,211 | | | 100 | % | | $34.79 |
| | Vacant space | | | | 399 | | | | | | | | | |
| | Total | | | | 3,509 | | | | | | | | | |
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| Total Pro Rata | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | 2023 | | 138 | | | 448 | | | 4.9 | % | | $ | 9,610 | | | 5.2 | % | | $21.45 |
| | 2024 | | 184 | | | 917 | | | 10.0 | % | | 19,552 | | | 10.5 | % | | 21.32 | |
| | 2025 | | 178 | | | 1,128 | | | 12.3 | % | | 20,533 | | | 11.0 | % | | 18.20 | |
| | 2026 | | 204 | | | 922 | | | 10.0 | % | | 20,497 | | | 11.0 | % | | 22.23 | |
| | 2027 | | 264 | | | 1,926 | | | 21.0 | % | | 38,801 | | | 20.9 | % | | 20.15 | |
| | 2028 | | 133 | | | 811 | | | 8.8 | % | | 17,874 | | | 9.6 | % | | 22.04 | |
| | 2029 | | 101 | | | 579 | | | 6.3 | % | | 12,490 | | | 6.7 | % | | 21.57 | |
| | 2030 | | 67 | | | 349 | | | 3.8 | % | | 8,673 | | | 4.7 | % | | 24.85 | |
| | 2031 | | 74 | | | 502 | | | 5.5 | % | | 10,469 | | | 5.6 | % | | 20.85 | |
| | 2032 | | 91 | | | 568 | | | 6.1 | % | | 12,887 | | | 6.9 | % | | 22.69 | |
| | Thereafter | | 38 | | | 1,017 | | | 11.0 | % | | 13,910 | | | 7.5 | % | | 13.68 | |
| | Other (c) | | 11 | | | 23 | | | 0.3 | % | | 768 | | | 0.4 | % | | 33.39 | |
| | Totals | | 1,483 | | | 9,190 | | | 100 | % | | $ | 186,064 | | | 100 | % | | $20.25 |
| | Vacant space | | | | 600 | | | | | | | | | |
| | Total | | | | 9,790 | | | | | | | | | |
(a)No. of expiring leases includes IAGM properties at 100%.
(b)Expiring ABR PSF reflects ABR PSF at the time of lease expiration.
(c)Other lease expirations include the GLA, ABR and ABR PSF of month-to-month leases.
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| | Supplemental - Quarter End December 31, 2022 - 17 |
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Acquisitions and Dispositions
Dollars and GLA in thousands
Acquisitions
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| Ownership | | Date | | Property | | Market | | Acquisition Price | | GLA | | Leased Occ. (a) | | Anchor Tenants (b) |
| | | | | | | | | | | | | | |
| 100% | | 2/2/22 | | Shops at Arbor Trails | | Austin-Round Rock, TX | | $ | 112,190 | | | 357 | | 99.2% | | Costco, Whole Foods Market |
| 100% | | 2/2/22 | | Escarpment Village | | Austin-Round Rock, TX | | 77,150 | | | 170 | | 99.9% | | HEB |
| 100% | | 4/21/22 | | The Highlands of Flower Mound (c) | | Dallas-Fort Worth-Arlington, TX | | 38,000 | | | 175 | | 90.8% | | Target*, Bed Bath & Beyond, Market by Macy's, Party City, Skechers, World Market |
| 100% | | 5/4/22 | | Bay Landing | | Cape Coral - Fort Myers, FL | | 10,425 | | | 63 | | 100% | | The Fresh Market, HomeGoods |
| 100% | | 6/10/22 | | Kyle Marketplace- Outparcel (d) | | Austin-Round Rock, TX | | 705 | | | n/a | | n/a | | HEB |
| 100% | | 10/28/22 | | Eastfield Village | | Charlotte-Gastonia-Concord, NC | | 22,500 | | | 96 | | 93.3% | | Food Lion, Gold's Gym |
| 100% | | 12/16/22 | | Stone Ridge Market (c) | | San Antonio, TX | | 58,100 | | | 219 | | 88.2% | | HEB Plus*, Burlington, PetSmart |
| | | | | | | | $ | 319,070 | | | 1,080 | | | | |
(a)Leased Occupancy at date of acquisition.
(b)Grocers listed first and bolded, remaining anchor tenants are shown alphabetically. Shadow anchors are noted with an asterisk.
(c)These retail properties were acquired from the JV.
(d)The outparcel of vacant land acquired is adjacent to this retail property.
Dispositions
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| Ownership | | Date | | Property | | Market | | Disposition Price | | GLA | | Leased Occ. (a) | | Anchor Tenants (b) |
| | | | | | | | | | | | | | |
| 100% | | 6/30/22 | | Centerplace of Greeley | | Denver-Colorado Springs-Greeley, CO | | $ | 37,550 | | | 152 | | 100% | | Safeway, Target*, Famous Footwear, Kohl's*, Ross Dress for Less |
| 100% | | 6/30/22 | | Cheyenne Meadows | | Denver-Colorado Springs-Greeley, CO | | 17,900 | | | 90 | | 98.4% | | King Soopers |
| 100% | | 12/15/22 | | The Shops at Walnut Creek | | Denver-Colorado Springs-Greeley, CO | | 55,000 | | | 225 | | 93.4% | | Target*, Dollar Tree, Michaels, Old Navy, PetSmart, TJ Maxx |
| | | | | | | | $ | 110,450 | | | 467 | | | | |
(a)Leased Occupancy at date of disposition.
(b)Grocers listed first and bolded, remaining anchor tenants are shown alphabetically. Shadow anchors are noted with an asterisk.
Joint Venture Dispositions
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| Ownership | | Date | | Property | | Market | | Disposition Price (a) | | GLA (a) | | Leased Occ. (b) | | Anchor Tenants (c) |
| | | | | | | | | | | | | | |
| 55% | | 3/3/22 | | Price Plaza | | Houston-Sugar Land-Baytown, TX | | $ | 39,100 | | | 206 | | 95.0% | | Sam's Club*, Walmart* |
| 55% | | 4/21/22 | | The Highlands of Flower Mound | | Dallas-Fort Worth-Arlington, TX | | 38,000 | | | 175 | | 90.8% | | Target*, Bed Bath & Beyond, Market by Macy's, Party City, Skechers, World Market |
| 55% | | 12/16/22 | | Stone Ridge Market | | San Antonio, TX | | 58,100 | | | 219 | | 88.2% | | HEB Plus*, Burlington, PetSmart |
| 55% | | 12/22/22 | | Stables Town Center I (d) | | Houston-Sugar Land-Baytown, TX | | 7,800 | | | 43 | | 53.5% | | Walgreens |
| | | | | | | | $ | 143,000 | | | 643 | | | | |
(a)Disposition Price and GLA for the Joint Venture Disposition activity are reflected at 100%.
(b)Leased Occupancy at date of disposition.
(c)Grocers listed first and bolded, remaining anchor tenants are shown alphabetically. Shadow anchors are noted with an asterisk.
(d)The Company disposed of 43 square feet out of a total 191 square feet through a partial sale of the property to an unrelated third party.
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| | Supplemental - Quarter End December 31, 2022 - 18 |
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Development Pipeline
In thousands
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| Active Redevelopments | | | | | | | | | | |
| Ownership | | Property | | Market | | Project Description | | Estimated Completion Quarter (a) | | Projected Incremental Costs | | Costs to Date | | Estimated Incremental Yield on Cost |
| 55% | | Cyfair Town Center | | Houston-Sugar Land-Baytown, TX | | Outparcel redevelopment to include a drive-through. | | 3Q - 2023 | | $320 | | $120 | | |
| 100% | | Southern Palm Crossing | | Miami-Fort Lauderdale-Miami Beach, FL | | Redevelopment of a former bank building for a freestanding building with a drive-through. | | 4Q - 2023 | | 1,400 | | 300 | | |
| | Totals | | | | | | | | $1,720 | | $420 | | 7-10% |
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(a) Our estimated timing of completion may be impacted by factors outside of our control, including global supply constraints or government restrictions. | | | | |
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| Recently Completed Redevelopments | | | |
| Ownership | | Property | | Market | | Project Description | | Completion Quarter | | Completed Costs | | Costs to Date | | |
| 100% | | Eldridge Town Center | | Houston-Sugar Land-Baytown, TX | | Demolition of bank building and ground up construction of freestanding Chipotle building with a drive-through. | | 3Q - 2022 | | $1,600 | | $1,600 | | |
| 55% | | Cyfair Town Center | | Houston-Sugar Land-Baytown, TX | | Renovation and re-merchandising of center including façade and common area enhancements, upgraded signage and rebranding. | | 3Q - 2022 | | $2,600 | | $2,600 | | |
| 100% | | Suncrest Village | | Orlando-Kissimmee, FL | | Redevelopment of center including demolition and expansion of the Publix grocery store, upgrades to the façade, signage enhancement, and common area improvements. | | 3Q - 2022 | | $10,800 | | $10,800 | | |
| 100% | | Eldridge Town Center | | Houston-Sugar Land-Baytown, TX | | Demolition and reconstruction of fuel facility. | | 4Q - 2021 | | $1,000 | | $1,000 | | |
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| Potential Developments and Redevelopments | | | | | | | | | | |
| Ownership | | Property | | Market | | Project Description | | | | | | | | |
| 100% | | Gateway Market Center | | Tampa-St. Petersburg, FL | | Extensive repositioning and reconfiguration of the shopping center to right size anchor space, add freestanding buildings and improve vehicular access. |
| 100% | | Garden Village | | So. California - Los Angeles, CA | | Demolition of outparcel buildings and reconstruction for freestanding buildings with drive-throughs. |
| 100% | | Kyle Marketplace | | Austin-Round Rock, TX | | New development, including addition of outparcel buildings. |
| 100% | | Antoine Town Center | | Houston-Sugar Land-Baytown, TX | | New development, including addition of an outparcel building with a drive-through. |
| 100% | | Sarasota Pavilion | | Tampa-St. Petersburg, FL | | Redevelopment of a former bank building for a multi-tenant building with a drive-through and anchor re-positioning. |
| 100% | | Westpark Shopping Center | | Washington D.C./Richmond Metro Area | | New development, including addition of outparcel buildings. |
| 100% | | River Oaks Shopping Center | | So. California - Los Angeles, CA | | Redevelopment of an outparcel and common area improvements. |
| 100% | | Buckhead Crossing | | Atlanta Metro Area, GA | | Re-merchandising of the shopping center including façade and common area enhancements, anchor space repositioning and addition of a freestanding building. |
| 100% | | Sandy Plains Centre | | Atlanta Metro Area, GA | | Redevelopment and expansion of the shopping center. | | | | | | | | |
| 100% | | Shops at Arbor Trails | | Austin-Round Rock, TX | | Redevelopment of an outparcel and common area improvements. | | |
| 100% | | Bay Landing | | Cape Coral-Fort Myers, FL | | New development of building area adjacent to existing stores. | | | |
| 100% | | The Parke | | Austin-Round Rock, TX | | Anchor repositioning and expansion. | | |
| 100% | | Pavilion at LaQuinta | | So. California - Inland Empire | | Redevelopment of an outparcel. | | |
| 55% | | Bay Colony | | Houston-Sugar Land-Baytown, TX | | Redevelopment of an existing outparcel building. |
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| | Supplemental - Quarter End December 31, 2022 - 19 |
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Property Summary
GLA in thousands
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| No. | Property | Ownership | Market | State | Center
Type (a) | GLA (b) | Leased Occupancy | ABR
PSF | Grocery
Anchor (c) | Major Anchors (d) |
| 1 | Antoine Town Center | 100% | Houston-Sugar Land-Baytown | TX | N | 110 | 100% | $14.00 | Yes | Kroger |
| 2 | Bay Colony | 55% | Houston-Sugar Land-Baytown | TX | C | 416 | 93.0% | $16.40 | Yes | HEB, Kohl's, Petco, Social Security Administration, The University of Texas Medical Branch, Walgreens |
| 3 | Bay Landing (e) | 100% | Cape Coral-Fort Myers | FL | N | 63 | 100% | $10.10 | Yes | The Fresh Market, HomeGoods |
| 4 | Bear Creek Village Center | 100% | So. California - Inland Empire | CA | N | 80 | 100% | $25.29 | Yes | Stater Brothers |
| 5 | Bent Tree Plaza | 100% | Raleigh-Cary-Durham | NC | N | 80 | 100% | $13.78 | Yes | Food Lion |
| 6 | Blackhawk Town Center | 55% | Houston-Sugar Land-Baytown | TX | N | 127 | 99.1% | $13.94 | Yes | HEB, Walgreens |
| 7 | Buckhead Crossing | 100% | Atlanta Metro Area | GA | P | 221 | 96.5% | $21.04 | No | HomeGoods, Marshalls, Michaels, Office Depot, Ross Dress for Less, The Tile Shop |
| 8 | Campus Marketplace | 100% | So. California - San Diego | CA | N | 144 | 98.9% | $31.02 | Yes | Ralphs, CVS, Discovery Isle Child Development Center |
| 9 | Cary Park Town Center | 100% | Raleigh-Cary-Durham | NC | N | 93 | 100% | $16.70 | Yes | Harris Teeter, CVS |
| 10 | Commons at University Place | 100% | Raleigh-Cary-Durham | NC | N | 92 | 100% | $16.85 | Yes | Harris Teeter, CVS |
| 11 | Coweta Crossing | 100% | Atlanta Metro Area | GA | N | 68 | 100% | $10.88 | Yes | Publix |
| 12 | Custer Creek Village | 100% | Dallas-Fort Worth-Arlington | TX | N | 96 | 100% | $15.12 | Yes | Tom Thumb |
| 13 | Cyfair Town Center | 55% | Houston-Sugar Land-Baytown | TX | C | 433 | 92.3% | $16.31 | Yes | Kroger, Cinemark USA, Crunch Fitness, J.C. Penney |
| 14 | Eastfield Village (e) | 100% | Charlotte-Gastonia-Concord | NC | C | 96 | 93.3% | $17.57 | Yes | Food Lion, Gold's Gym |
| 15 | Eldorado Marketplace | 100% | Dallas-Fort Worth-Arlington | TX | C | 189 | 95.7% | $23.67 | Yes | Market Street, PetSmart, Phenix Salon Suites |
| 16 | Eldridge Town Center &
Windermere Village | 100% | Houston-Sugar Land-Baytown | TX | C | 175 | 90.6% | $18.10 | Yes | Kroger, Kohl's*, Petco |
| 17 | Escarpment Village (e) | 100% | Austin-Round Rock | TX | N | 170 | 99.9% | $21.44 | Yes | HEB |
| 18 | Garden Village | 100% | So. California - Los Angeles | CA | N | 117 | 90.2% | $18.10 | Yes | Albertson's, Rite Aid |
| 19 | Gateway Market Center | 100% | Tampa-St. Petersburg | FL | P | 231 | 100% | $10.79 | Yes | Publix, Target*, HomeGoods, Party City, PetSmart, TJ Maxx, Tuesday Morning |
| 20 | Kennesaw Marketplace | 100% | Atlanta Metro Area | GA | C | 130 | 100% | $35.17 | Yes | Whole Foods Market, Academy Sports + Outdoors*, Guitar Center*, Hobby Lobby*, Petco* |
| 21 | Kyle Marketplace | 100% | Austin-Round Rock | TX | C | 225 | 100% | $17.04 | Yes | HEB |
| 22 | Lakeside & Lakeside Crossing | 100% | Orlando-Kissimmee | FL | N | 76 | 100% | $46.76 | Yes | Trader Joe's |
| 23 | Market at Westlake | 100% | Austin-Round Rock | TX | N | 30 | 100% | $21.63 | No | Walgreens |
| 24 | Northcross Commons | 100% | Charlotte-Gastonia-Concord | NC | N | 63 | 100% | $24.15 | Yes | Whole Foods Market |
| 25 | Old Grove Marketplace | 100% | So. California - San Diego | CA | N | 81 | 100% | $17.20 | Yes | Ralphs, Lowe's* |
| 26 | Pavilion at LaQuinta | 100% | So. California - Inland Empire | CA | P | 166 | 100% | $22.02 | Yes | Sprouts Farmers Market, Bed Bath & Beyond, Best Buy, DSW, OfficeMax |
| 27 | Peachland Promenade | 100% | Tampa-St. Petersburg | FL | N | 177 | 97.0% | $13.94 | Yes | Publix, Goodwill, My Salon Suite, Planet Fitness |
| 28 | PGA Plaza Palm Beach Gardens | 100% | Miami-Fort Lauderdale-Miami Beach | FL | C | 121 | 96.8% | $34.33 | Yes | Trader Joe's, Marshalls, Ulta |
| 29 | Plantation Grove | 100% | Orlando-Kissimmee | FL | N | 74 | 100% | $15.62 | Yes | Publix |
| 30 | Plaza Midtown | 100% | Atlanta Metro Area | GA | N | 70 | 93.2% | $26.75 | Yes | Publix |
| 31 | Prestonwood Town Center (f) | 100% | Dallas-Fort Worth-Arlington | TX | P | 233 | 99.4% | $21.35 | Yes | Walmart*, Barnes & Noble, DSW, Michaels, Petco, Ulta |
| 32 | Renaissance Center | 100% | Raleigh-Cary-Durham | NC | P | 363 | 94.6% | $22.43 | No | Ashley HomeStore, Best Buy, Nordstrom Rack, Old Navy, Popshelf, REI, Ulta, UNC Health Care, World Market |
| 33 | Rio Pinar Plaza | 100% | Orlando-Kissimmee | FL | N | 131 | 98.4% | $18.83 | Yes | Publix, Planet Fitness |
| 34 | River Oaks | 100% | So. California - Los Angeles | CA | C | 275 | 96.1% | $20.58 | Yes | Sprouts Farmers Market, Target, Big 5 Sports Goods, Five Below, Total Wine & More, Ulta |
| 35 | Riverview Village | 100% | Dallas-Fort Worth-Arlington | TX | N | 89 | 98.4% | $12.93 | Yes | Tom Thumb, Petco |
| 36 | Riverwalk Market | 100% | Dallas-Fort Worth-Arlington | TX | N | 90 | 100% | $20.99 | Yes | Market Street |
| 37 | Rose Creek | 100% | Atlanta Metro Area | GA | N | 70 | 100% | $11.36 | Yes | Publix |
| 38 | Sandy Plains Centre | 100% | Atlanta Metro Area | GA | C | 131 | 93.7% | $22.98 | Yes | Kroger, Pet Supplies Plus, Walgreens* |
| | | | | | | | |
| | Supplemental - Quarter End December 31, 2022 - 20 |
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Property Summary
GLA in thousands
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| No. | Property | Ownership | Market | State | Center
Type (a) | GLA (b) | Leased Occupancy | ABR
PSF | Grocery
Anchor (c) | Major Anchors (d) |
| 39 | Sarasota Pavilion | 100% | Tampa-St. Petersburg | FL | P | 345 | 85.9% | $13.88 | Yes | Publix, Bank of America, Beall's, Bed Bath & Beyond, Marshalls, Michaels, PetSmart, Ross Dress for Less, SunTrust Bank |
| 40 | Scofield Crossing | 100% | Austin-Round Rock | TX | N | 95 | 97.2% | $17.41 | Yes | Hana World Market, Goodwill |
| 41 | Shops at Arbor Trails (e) | 100% | Austin-Round Rock | TX | C | 357 | 100% | $13.68 | Yes | Costco, Whole Foods Market, Chuy's*, Frost Bank*, Haverty's Furniture, Kerbey Lane Cafe*, Marshalls |
| 42 | Shops at Fairview Town Center | 100% | Dallas-Fort Worth-Arlington | TX | N | 66 | 97.4% | $24.18 | Yes | Whole Foods Market |
| 43 | Shops at the Galleria | 100% | Austin-Round Rock | TX | P | 537 | 95.2% | $13.78 | No | Best Buy, Five Below, Home Consignment Center, HomeGoods, Lowe's, Marshalls, Michaels, OfficeMax, Old Navy, PetSmart, Signature Bridal Salon and Bestow Bridal, Spec's Wine Spirits & Finer Foods, World Market |
| 44 | Sonterra Village | 100% | San Antonio | TX | N | 42 | 100% | $33.00 | Yes | Trader Joe's |
| 45 | Southern Palm Crossing | 100% | Miami-Fort Lauderdale-Miami Beach | FL | P | 345 | 97.0% | $16.69 | Yes | Costco Wholesale, Going Going Gone, Marshalls |
| 46 | Stables Town Center | 55% | Houston-Sugar Land-Baytown | TX | N | 148 | 94.5% | $17.54 | Yes | Kroger |
| 47 | Stevenson Ranch | 100% | So. California - Los Angeles | CA | C | 187 | 91.7% | $22.05 | Yes | Ralphs, Furniture Design Center, L.A. Fitness, PetSmart |
| 48 | Stone Ridge Market (e) | 100% | San Antonio | TX | C | 219 | 88.2% | $23.55 | Yes | HEB Plus*, Burlington, PetSmart |
| 49 | Suncrest Village | 100% | Orlando-Kissimmee | FL | N | 97 | 95.3% | $18.01 | Yes | Publix, Orange County Tax Collector |
| 50 | Sycamore Commons | 100% | Charlotte-Gastonia-Concord | NC | P | 265 | 100% | $19.32 | Yes | Costco Wholesale*, Bed Bath & Beyond, Best Buy, Dick's Sporting Goods, Lowe's*, Michaels, Old Navy, Ulta, World Market |
| 51 | The Centre on Hugh Howell | 100% | Atlanta Metro Area | GA | N | 83 | 94.3% | $11.92 | Yes | Publix |
| 52 | The Highlands of Flower Mound (e) | 100% | Dallas-Fort Worth-Arlington | TX | P | 175 | 89.8% | $18.06 | Yes | Target*, Bed Bath & Beyond, Market by Macy's, Party City, Skechers, World Market |
| 53 | The Parke | 100% | Austin-Round Rock | TX | P | 406 | 99.1% | $16.46 | Yes | Whole Foods Market, Buy Buy Baby, Dick's Sporting Goods, DSW, La-Z Boy, Marshalls, Michaels, Nordstrom, Old Navy, Petco, Tuesday Morning, Ulta, World Market |
| 54 | The Pointe at Creedmoor | 100% | Raleigh-Cary-Durham | NC | N | 60 | 100% | $16.82 | Yes | Harris Teeter |
| 55 | The Shops at Town Center | 100% | Washington D.C/Richmond Metro Area | MD | N | 125 | 97.3% | $30.20 | Yes | Safeway |
| 56 | Thomas Crossroads | 100% | Atlanta Metro Area | GA | N | 105 | 96.6% | $9.89 | Yes | Kroger |
| 57 | Travilah Square Shopping Center | 100% | Washington D.C/Richmond Metro Area | MD | N | 56 | 93.2% | $48.57 | Yes | Trader Joe's |
| 58 | Trowbridge Crossing | 100% | Atlanta Metro Area | GA | N | 63 | 95.4% | $12.10 | Yes | Publix |
| 59 | University Oaks | 100% | Austin-Round Rock | TX | P | 236 | 84.3% | $20.93 | No | DSW, IKEA*, J.C. Penney*, Jo-Ann Fabrics, PetSmart, Ross Dress for Less, Spec's Wine Spirits & Finer Foods |
| 60 | Westfork & Paraiso | 100% | Miami-Fort Lauderdale-Miami Beach | FL | N | 393 | 93.6% | $25.22 | Yes | Costco Wholesale*, Publix, Baptist Outpatient Services, Dollar Tree, Pembroke Pink Imaging, Petco, Regal Cinemas, Ross Dress for Less, TJ Maxx, Ulta |
| 61 | Westpark Shopping Center | 100% | Washington D.C/Richmond Metro Area | VA | C | 177 | 100% | $14.74 | Yes | Publix, Christmas Tree Shops, Planet Fitness, The Tile Shop |
| 62 | Windward Commons | 100% | Atlanta Metro Area | GA | N | 117 | 99.9% | $15.20 | Yes | Kroger |
| Totals, with JV at 100% | | | | | 10,295 | 95.9% | $18.95 | | |
| Totals, Pro Rata | | | | | 9,790 | 96.1% | $19.08 | | |
(a)N = Neighborhood center, P = Power Center, C = Community Center
(b)The GLA of properties owned by our joint venture are included at 100%.
(c)Grocers may be leased or shadow-anchors and includes traditional, specialty grocers, and large format retailers (i.e. Walmart, Target, and Costco).
(d)Grocers listed first and bolded, remaining anchor tenants are shown alphabetically. Shadow anchors are noted with an asterisk.
(e)Properties are excluded from Same Property for the three months and year ended December 31, 2022.
(f)Prestonwood Town Center is excluded from Same Property for the year ended December 31, 2022.
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| | Supplemental - Quarter End December 31, 2022 - 21 |
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Components of Net Asset Value as of December 31, 2022
In thousands, except share information
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| NOI Excluding Termination Fee Income and Expense, and GAAP Rent Adjustments, Most Recent Quarter | | | | Page No. |
| NOI, excluding ground rent | | $ | 33,895 | | | 5 |
| Ground rent income | | 3,813 | | 5 |
| NOI | | 37,708 | | | 5 |
| | | | |
| JV NOI at share, excluding ground rent (a) | | $ | 1,623 | | | 12 |
| JV Ground rent income at share | | 570 | | 12 |
| JV NOI at share | | 2,193 | | | |
| | | | |
| Annualized NOI, excluding ground rent income | | $ | 135,580 | | | |
| Annualized JV NOI at share, excluding ground rent income | | 6,492 | | |
| Annualized ground rent income | | 17,532 | | |
| | | | |
| Projected remaining development | | | | |
| Net Consolidated Project Costs | | $ | 1,100 | | | 19 |
| Net JV Project Costs at share | | 110 | | 19 |
| Estimated Range for Incremental Yield | | 7-10% | | 19 |
| | | | |
| Fee Income, Most Recent Quarter | | | | |
| JV Management Fees & Commissions | | $ | 578 | | | 5 |
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| Other Assets | | | | |
| Cash, cash equivalents and restricted cash | | $ | 137,762 | | | 2 |
| Billed base rent, recoveries, and other revenue | | 14,701 | | 4 |
| Undeveloped Land | | — | | |
| Land Held for Development | | — | | |
| Total JV Other Assets, at share (b) | | 27,122 | | 10, 11 |
| | | | |
| Liabilities | | | | |
| Debt | | $ | 759,812 | | | 8 |
| Issuance costs, net of accumulated amortization | | (5,261) | | 8 |
| Accounts payable and accrued expenses | | 42,792 | | 2 |
| Distributions payable | | 13,837 | | 2 |
| Other liabilities | | 28,287 | | 2 |
| Projected remaining consolidated project costs | | 1,100 | | 19 |
| Total JV Other Liabilities, at share (c) | | 54,876 | | 10, 19 |
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| Common Shares Outstanding | | 67,472,553 | | 1 |
(a)Includes elimination of our share of the management fee expense of $283 for the three months ended December 31, 2022.
(b)Total JV other assets, at share, includes the JV's share of cash and cash equivalents and receivables for base rent, recoveries, and other revenue.
(c)Total JV liabilities, at share, includes the JV's share of mortgage debt, issuance costs, net of accumulated amortization, accounts payable and accrued expenses, other liabilities, and projected remaining project costs.
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| | Supplemental - Quarter End December 31, 2022 - 22 |
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| Terms | | Definitions |
| ABR Per Square Foot (ABR PSF) | | ABR PSF is the ABR divided by the occupied square footage for that period. |
| Adjusted EBITDA | | Our non-GAAP measure of Adjusted EBITDA excludes gains (or losses) resulting from debt extinguishments, transaction expenses, straight-line rent adjustments, amortization of above and below market leases and lease inducements, and other unique revenue and expense items which some may consider not pertinent to measuring a particular company’s on-going operating performance. Adjustments for our unconsolidated joint venture are calculated to reflect our proportionate share of the joint venture's Adjusted EBITDA on the same basis. |
| Annualized Base Rent (ABR) | | Annualized Base Rent (ABR) is the base rent for the period multiplied by twelve months. Base rent is inclusive of ground rent and any abatement concessions, but excludes Specialty Lease income. |
| Anchor Tenant | | Tenants with square footage greater than or equal to 10,000 square feet are considered Anchor Tenants. |
| Community Center | | Community Centers are generally open air and designed for tenants that offer a larger array of apparel and other soft goods. Typically, community centers contain anchor stores and other national retail tenants. |
| Comparable Lease | | A Comparable Lease meets all of the following criteria: terms greater than or equal to one year, unit was vacant less than one year prior to executed lease, square footage of unit remains unchanged or within 10% of prior unit square footage, and has a rent structure consistent with the previous tenant. |
Earnings Before Interest, Taxes, Depreciation, and Amortization
(EBITDA) | | Our non-GAAP measure of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is net income (or loss) in accordance with GAAP, plus federal and state tax expense, interest expense, and depreciation and amortization. Adjustments for our unconsolidated joint venture are calculated to reflect our proportionate share of the joint venture's EBITDA on the same basis. |
| Economic Occupancy | | Upon Rent Commencement Date, the percentage of occupied GLA divided by total GLA. For purposes of calculating occupancy, Specialty Lease GLA is deemed vacant. |
| GAAP Rent Adjustments | | GAAP Rent Adjustments consist of straight-line rent adjustments, amortization of market lease intangibles, and amortization of lease incentives. |
| Gross Leasable Area (GLA) | | Measure of the total amount of leasable space at a property in square feet. |
| Leased Occupancy | | Economic Occupancy plus the percentage of signed and not yet commenced GLA divided by total GLA. |
| NAREIT Funds From Operations (NAREIT FFO) and Core FFO | | Our non-GAAP measure of NAREIT Funds from Operations ("NAREIT FFO"), based on the National Association of Real Estate Investment Trusts ("NAREIT") definition, is net income (or loss) in accordance with GAAP, excluding gains (or losses) resulting from dispositions of properties, plus depreciation and amortization and impairment charges on depreciable real property. Adjustments for our unconsolidated joint venture are calculated to reflect our proportionate share of the joint venture's NAREIT FFO on the same basis. Core Funds From Operations (“Core FFO”) is an additional supplemental non-GAAP financial measure of our operating performance. In particular, Core FFO provides an additional measure to compare the operating performance of different REITs without having to account for certain remaining amortization assumptions within NAREIT FFO and other unique revenue and expense items which some may consider not pertinent to measuring a particular company’s on-going operating performance. |
| Neighborhood Center | | Neighborhood Centers are convenience oriented with tenants such as a grocery store anchor, a drugstore, and other small retailers. |
| Net Debt-to-Adjusted EBITDA | | Net Debt-to-Adjusted EBITDA is Pro Rata net debt divided by Adjusted EBITDA on a trailing twelve month basis. |
| Net Operating Income (NOI) | | NOI excludes general and administrative expenses, direct listing costs, depreciation and amortization, provision for asset impairment, other income and expense, net, gains (losses) from sales of properties, gains (losses) on extinguishment of debt, interest expense, net, equity in earnings (losses) from unconsolidated entities, lease termination income and expense, and GAAP rent adjustments. |
| New Lease | | New Leases are classified as leases where a new tenant will be occupying a unit or an existing tenant is relocating from one unit to another (unless the tenant is moving from a temporary space back to the original unit). |
| Power Center | | Power Centers consist of category-dominant anchors, such as discount department stores, off-price stores, or wholesale clubs, with only a few small shop tenants. |
| Prior Contractual Rent | | Base rent charged for a particular unit, prior to the current term’s first year rent. If the prior lease terminated prior to the contractual expiration date, the prior contractual rent amount is the rent charged in the final month of occupancy. |
| Pro Rata | | Where appropriate, the Company has included the results from its ownership share of its joint venture properties when combined with the Company's wholly-owned properties, defined as "Pro Rata," with the exception of property count and number of leases. |
| Pro Rata Net Debt | | Pro rata net debt is total outstanding debt, net, less cash and cash equivalents, including our JV share. |
| Renewal Lease | | Terms have been extended on an existing lease in the same unit. This may happen via an amendment, extension agreement or exercised option. |
| Same Property | | Information provided on a same-property basis includes the results of properties that were owned and operated for the entirety of both periods presented. |
| Shadow Anchor Tenant | | Shadow Anchor Tenant represents tenants that are situated on parcels which are owned by unrelated third parties, but, due to their location within or immediately adjacent to a property, appear to the consumer as a retail tenant of the property and, as a result, attract additional consumer traffic to the property. |
| Small Shop Tenant | | Tenants with square footage less than 10,000 square feet are considered Small Shops. |
| Specialty Lease | | Specialty leasing represents leases of less than one year in duration for inline space and includes any term length for a common area space, and is excluded from the ABR and leased square footage figures when computing the ABR per square foot. |
| Wholly-owned | | Wholly-owned properties are those properties owned outright by the Company and does not include properties owned through an investment in a joint venture. |
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| | Supplemental - Quarter End December 31, 2022 - 23 |
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