I N V E S T O R U P D A T E Third Quarter 2016 Update - PowerPoint PPT Presentation

I N V E S T O R U P D A T E Third Quarter 2016 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,” “continues” 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 the state of Texas and in other 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, 2016, 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 2016 peer metric information is sourced from company filings as of June 30, 2016, unless otherwise noted

Our Strategy We generate long-term shareholder value through the  ownership, operation and redevelopment of high quality, multi-tenant retail assets in our target markets 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 2016 results 2016 guidance 1 Net Income Attributable to Common $0.30 Shareholders Net Income Attributable to Common $1.03 - $1.05 Shareholders Operating FFO/Share $0.27 Operating FFO/Share $1.06 - $1.08 Same Store NOI Growth 4.6% Assumptions supporting 2016 Guidance 1 : General & Administrative Expense $11.1 million Disposition Activity 2 $502.5 million Same Store NOI Growth 3.0% - 3.5% Acquisition Activity 3 $408.3 million General & Administrative Expense $45 - $46 million Blended Comparable Re-leasing Spreads 8.2% Disposition Activity $600 - $700 million 135 leases representing Leasing Volume 1,121,000 square feet Acquisition Activity $400 - $450 million Retail Occupancy 92.6% Unsecured Debt Capital $200 million Retail Leased Rate 94.5% 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 $6.2B 1 I N V E S T M E N T G R A D E BBB- Baa3 S & P Moody’s 5

26.5 MILLION SQUARE FEET 1 7 4 R E TA I L O P E R AT I N G P R O P E R T I E S TA R G E T M A R K E T S ( R A R A N K B Y B Y A A B R B R 1 ) D A L L A S AT L A N TA D. C . / B A LT I M O R E H O U S TO N N E W YO R K S A N A N TO N I O C H I C AG O P H O E N I X S E AT T L E A U S T I N 6

2016 93. 6 % Multi-Tenant Retail 4. 0 % 2. 4 % Single-User Retail Zurich Towers Based on ABR 7

SIGNIFICANT MULTI-TENANT RETAIL PRESENCE IN TOP NATIONAL MSA S 79% 65% 72% Located in Top 50 MSAs Located in Target Markets Located in Top 30 MSAs Based on ABR 8

Real Estate Driven - Evolving Multi-Tenant Retail Asset Mix 39 % 41 % 36 % 23 % 45 % 16 % 2016 2016 2016 2013 2013 2013 NEIGHBORHOOD/ LIFESTYLE CENTERS/ POWER CENTERS COMMUNITY CENTERS MIXED-USE PROPERTIES Avg. Household Income $85,000 Avg. Household Income $113,000 Avg. Household Income $88,000 Population 155,000 Population 447,000 Population 111,000 Est. Population Growth 5.4% Est. Population Growth 5.9% Est. Population Growth 5.5% 3-mile radius 5-mile radius 5-mile radius Asset mix based on ABR 9

Peer Comparison | Our High Quality Portfolio $30 Target 40% Markets $24.52 $25 33.5% 35% $16.83 $20.09 $19.70 $19.43 30% $20 $19.04 $17.32 $16.86 25% $14.92 $14.78 $15 20% $12.85 18.0% 16.7% 14.0% 13.0% 15% $10 9.0% 8.6% 10% $5 5% 1.5% 0% $0 FRT EQY REG ROIC RPAI WRI UE DDR KIM BRX EQY RPAI KIM WRI REG BRX DDR FRT ABR PSF ABR - % GROWTH (2013-2016) 10

Peer Comparison | Our Dominant Locations 250 45% Target 38% Markets 40% 195 200 35% 173 153 122 30% 151 150 25% 25% 122 22% 22% 113 111 110 106 18% 20% 100 82 77 15% 13% 10% 9% 10% 50 5% - 0% EQY UE FRT RPAI ROIC KIM WRI REG DDR BRX FRT REG RPAI EQY WRI KIM BRX DDR RETAIL – THREE MILE POPULATION 1 SUPERZIP - % OF VALUE 2 11

Manageable Retail Lease Expiration Profile 1 45.0% 40.0% 38.8% 35.0% 30.0% 25.0% 20.0% 16.7% 11.7% 11.4% 15.0% 12.4% 10.0% 7.6% 5.0% 10.2% 11.3% 10.3% 39.3% 6.5% 14.0% 0.0% 2017 2018 2019 2020 2021 Thereafter % of Total GLA % of Total ABR 12

Tenant Profile & Anchor Strength Compelling Grocer Profile: Top Retail Tenants Grocer sales of approximately $525 psf 1 % of Retail % of Retail Moody's / S&P Tenant ABR Occupied GLA Credit Rating Best Buy Co., Inc. 3.0% 3.3% Baa1/BBB- Ahold U.S.A. Inc. 2.6% 2.3% NR/NR The TJX Companies, Inc. 2.4% 4.2% A2/A+ Ross Stores, Inc. 2.4% 3.6% A3/A- Bed Bath & Beyond Inc. 2.0% 2.6% Baa1/BBB+ PetSmart, Inc. 2.0% 2.3% NR/B+ Regal Entertainment Group 1.7% 0.9% B1/B+ Michaels Stores, Inc. 1.5% 2.1% B1/B+ AB Acquisition LLC 1.5% 1.9% NR/NR The Home Depot, Inc. 1.4% 2.5% A2/A 13

Our Value Proposition ABR per occupied square foot vs. implied cap rate 1 7.50% 7.00% DDR RPAI BRX 6.50% $ 16. 83 | 6 . 90 % WRI 6.00% ABR per occupied sf Implied cap rate KIM UE 5.50% REG EQY 5.00% ROIC 4.50% FRT 4.00% 3.50% $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 $26.00 14

P O R T F O L I O T R A N S F O R M A T I O N 15