Segment Disclosure

3 Months Ended

Mar. 31, 2013

Segment Disclosure

19. Segment Disclosure

The Company’s reportable segments consist of the three types of commercial real estate properties for which management internally evaluates operating performance and financial results: Office Properties, Multi-family Properties (new in 2012) and Retail Properties. The Company was formed for the primary purpose of owning and operating Retail Properties. As such, administrative costs after the Offering are shown under the Retail Properties segment. The Retail Properties operating segment also includes undeveloped land which the Company intends to develop into retail properties.

The Company evaluates the performance of the operating segments based upon property operating income. “Property Operating Income” is defined as operating revenues (rental revenue and tenant recoveries) less property operating expenses (maintenance and repairs, real estate taxes, management fees, and other operating expenses). The Company also evaluates interest expense, interest income and depreciation and amortization by segment. Corporate general and administrative expense, interest expense related to corporate indebtedness and other non-recurring gains or losses are reflected within the Retail Properties operating segment as this constitutes the Company’s primary business objective and represents the majority of its operations. There is no intersegment activity.

The following tables reconcile the Company’s segment activity to its condensed consolidated results of operations and financial position for the three months ended March 31, 2013 and 2012 (in thousands):

	For the Three Months Ended
	March 31, 2013			March 31, 2012
Office Properties:
Total revenues	$	2,050		$	1,832
Property operating expenses		(845	)		(598	)
Property operating income, as defined		1,205			1,234
General and administrative		(5	)		(67	)
Depreciation and amortization		(940	)		(794	)
Interest expense		(192	)		(198	)
Net income	$	68		$	175
Multi-family Properties:
Total revenues	$	1,320		$	—
Property operating expenses		(304	)		—
Property operating income, as defined		1,016			—
General and administrative		(144	)		—
Depreciation and amortization		(1,149	)		—
Net loss	$	(277	)	$	—
Retail Properties:
Total revenues	$	24,159		$	17,948
Property operating expenses		(5,353	)		(3,809	)
Property operating income, as defined		18,806			14,139
General and administrative		(3,685	)		(3,435	)
Depreciation and amortization		(10,301	)		(7,485	)
Interest expense		(4,606	)		(3,476	)
Interest income		50			53
Income from equity in unconsolidated entities		39			—
Changes in fair value of financial instruments and gain on OP unit redemption		230			462
Net income	$	533		$	258
Total Reportable Segments:
Total revenues	$	27,529		$	19,780
Property operating expenses		(6,502	)		(4,407	)
Property operating income, as defined		21,027			15,373
General and administrative		(3,834	)		(3,502	)
Depreciation and amortization		(12,390	)		(8,279	)
Interest expense		(4,798	)		(3,674	)
Interest income		50			53
Income from equity in unconsolidated entities		39			—
Changes in fair value of financial instruments and gain on OP unit redemption		230			462
Net income	$	324		$	433
Attributable to Controlling Interest:
Net income attributable	$	324		$	433
Net loss attributable to non-controlling interests in operating partnership		59			71
Net income attributable to non-controlling interests in consolidated joint ventures		(87	)		(66	)
Net income available to Excel Trust, Inc.	$	296		$	438

	March 31,		December 31,
	2013		2012
Assets:
Office Properties:
Total assets	$	68,532	$	70,473
Multi-family Properties:
Total assets		71,638		72,627
Retail Properties:
Total assets		962,671		936,154
Total Reportable Segments & Consolidated Assets:
Total assets	$	1,102,841	$	1,079,254