I N V E S T O R U P D A T E Third Quarter 2017 Update - PowerPoint PPT Presentation

I N V E S T O R U P D A T E Third Quarter 2017 Update

Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act). Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “should,” “intends,” “plans,” “estimates,” “continue” or “anticipates” and variations of such words or similar expressions or the negative of such words. You can also identify forward-looking statements by discussions of strategies, vision, plans or intentions. Risks, uncertainties and changes in the following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements:  economic, business and financial conditions, and changes in our industry and changes in the real estate markets in particular;  economic and other developments in our target markets where we have a high concentration of properties; our business strategy;   our projected operating results;  rental rates and/or vacancy rates;  frequency and magnitude of defaults on, early terminations of or non-renewal of leases by tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants;   interest rates or operating costs;  real estate and zoning laws and changes in real property tax rates; real estate valuations;   our leverage;  our ability to generate sufficient cash flows to service our outstanding indebtedness and make distributions to our shareholders;  our ability to obtain necessary outside financing; the availability, terms and deployment of capital;   general volatility of the capital and credit markets and the market price of our Class A common stock;  risks generally associated with real estate acquisitions and dispositions, including our ability to identify and pursue acquisition and disposition opportunities; risks generally associated with redevelopment, including the impact of construction delays and cost overruns, our ability to lease redeveloped space and our ability to identify and pursue  redevelopment opportunities;  composition of members of our senior management team;  our ability to attract and retain qualified personnel; our ability to continue to qualify as a real estate investment trust (REIT);   governmental regulations, tax laws and rates and similar matters;  our compliance with laws, rules and regulations; environmental uncertainties and exposure to natural disasters;  insurance coverage;   the likelihood or actual occurrence of terrorist attacks in the U.S.; and  other risk factors, including those detailed in the section titled “Risk Factors” of our most recent Form 10-K and Form 10-Q filed with the SEC. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to us (or to third parties making the forward-looking statements). We undertake no obligation to publicly release any revisions to such forward-looking statements to reflect events or circumstances after the date of this presentation, except as required by applicable law. All information is presented on a consolidated basis and is as of September 30, 2017, unless otherwise noted All 2013 information is presented on a consolidated basis, including our pro rata share of unconsolidated joint ventures, and is as of March 31, 2013, unless otherwise noted All demographic information is sourced from The Nielsen Company, unless otherwise noted All 2013 peer metric information is sourced from company filings as of March 31, 2013, unless otherwise noted 2 All current peer metric information is sourced from company filings as of June 30, 2017 unless otherwise noted

Our Strategy We generate long-term shareholder value through the  ownership, operation and mixed-use redevelopment of high quality, multi-tenant retail assets in our geographically focused portfolio We believe real estate is a local business and that our  approach combined with scale provides for the best value creation over the long term  We believe in maintaining an investment grade rated balance sheet through adhering to a simple, low leverage model We believe in maintaining a best-in-class operating  platform through an intense focus on talent development and the innovative use of technology and systems 3

Our Performance Third quarter 2017 results 2017 guidance 1 Operating FFO/Share $0.26 Net Income Attributable to Common $1.06 - $1.08 Same Store NOI Growth 1.0% Shareholders General & Administrative Expense $7.8 million Operating FFO/Share $1.03 - $1.05 Disposition Activity 2 $1.1 billion Assumptions supporting 2017 Guidance 1 : Acquisition Activity 3 $147.6 million Share Repurchases / Avg. Share Price 4 $49.9 million / $13.09 per share Same Store NOI Growth 1.75% - 2.25% Blended Comparable Re-leasing Spreads 6.7% General & Administrative Expense $39 - $41 million 123 leases representing Leasing Volume 787,000 square feet Disposition Activity $850 million - $1 billion Retail Leased Rate 92.7% Acquisition Activity, including $375 - $475 million Retail ABR psf $18.50 repurchases of common stock 4

N Y S E : R P A I T O TA L C A P I TA L I Z AT I O N $4.9B 1 I N V E S T M E N T G R A D E BBB- Baa3 S & P Moody’s 5

Geographically Focused Portfolio OVER 80% OF OUR MULTI-TENANT ABR IS IN THE TOP 25 MSAs S E A T T L E N E W Y O R K C H I C A G O D . C . / B A L T I M O R E P H O E N I X D A L L A S A T L A N T A A U S T I N H O U S T O N 21.6 MILLION S A N A N T O N I O SQUARE FEET 1 2 0 R E T A I L O P E R A T I N G P R O P E R T I E S 6

Real Estate Driven - Evolving Multi-Tenant Retail Asset Mix 39 % 37 % 33 % 30 % 45 % 2017 16 % 2017 2017 2013 2013 2013 NEIGHBORHOOD/ LIFESTYLE CENTERS/ POWER CENTERS COMMUNITY CENTERS MIXED-USE PROPERTIES Avg. Household Income $93,000 Avg. Household Income $123,000 Avg. Household Income $96,000 Population 173,000 Population 416,000 Population 124,000 Est. Population Growth 6.2% Est. Population Growth 6.1% Est. Population Growth 5.6% 3-mile radius 5-mile radius 5-mile radius Asset mix based on ABR 7

Peer Comparison | Our High Quality Portfolio $30 $26.92 30% 28% $25.04 $25 25% $20.59 $20.05 $20 21% 20% $18.50 $18.37 20% $17.24 18% $16.09 17% $15.25 16% $15 $13.21 15% 12% 11% $10 10% 6% $5 5% $0 0% FRT AAT REG ROIC RPAI WRI UE DDR KIM BRX RPAI WRI KIM REG DDR ROIC BRX FRT AAT RETAIL ABR PSF RETAIL ABR PSF - % GROWTH (2013-2017) 8

Peer Comparison | Our Dominant Locations 200 181 40% 180 171 37% 153 160 35% 138 140 29% 30% 123 121 117 120 25% 105 25% 95 100 86 19% 19% 20% 80 14% 15% 60 11% 11% 10% 40 10% 7% 20 5% - 0% UE FRT REG RPAI KIM WRI ROIC AAT DDR BRX FRT RPAI REG WRI AAT KIM ROIC DDR BRX UE RETAIL – THREE MILE POPULATION 1 SUPERZIP - % OF VALUE 2 9

Peer Comparison | Portfolio Composition 35% 30% 30% 27% 25% 21% 20% 15% 10% 5% 5% 2% 2% 2% 1% 1% 0% 0% RPAI FRT AAT REG UE DDR WRI BRX KIM ROIC % VALUE IN LIFESTYLE/STREET RETAIL 1 10

Tenant Profile & Anchor Strength Top Retail Tenants Compelling Grocer Profile Moody's / % of Retail % of Retail S&P Credit ABR Occupied GLA Rating Best Buy Co., Inc. 3.0% 3.4% Baa1/BBB- Bed Bath & Beyond Inc. 2.1% 2.8% Baa1/BBB The TJX Companies, Inc. 2.1% 3.8% A2/A+ Ross Stores, Inc. 2.0% 3.2% A3/A- Regal Entertainment Group 1.9% 1.1% B1/BB- PetSmart, Inc. 1.8% 2.1% B1/B AB Acquisition LLC 1.7% 2.3% NR/NR Ahold U.S.A. Inc. 1.7% 1.3% NR/NR Michaels Stores, Inc. 1.4% 2.1% Ba2/BB- Gap Inc. 1.4% 1.5% Baa2/BB+ 11

Tenant Considerations Backfill Opportunities = Value Creation Zero Tenant Exposure Five loca Fi cations, 161, 161,000 00 s square feet Mark to market opportunity of +20% assuming single tenant  backfills Expect +/- 12 months of downtime  Re-leased one location (34,000 sf) with a 69.2% lease spread  One location is at a redevelopment property  Two wo lo locati tions, ns, 1 111,000 sq square f feet 1 Mark to market opportunity of 0% to +10%  Expect +/- 12 months of downtime  Sold one asset in the third quarter 2017  12

Case Study: Accretive Backfilling In 2015, we proactively recaptured 15 anchor boxes, representing 537,000 square feet REDUCED EXPOSURE UPGRADED RETAILERS RESULTS Comparable re-leasing spreads +19% Downtime < 12 months 13