SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): July 28, 2003
ACADIA REALTY TRUST
(Exact name of registrant as specified in its charter)
Maryland 1-12002 23-2715194
(State or other (Commission (I.R.S. Employer
jurisdiction of incorporation)File Number) Identification No.)
1311 Mamaroneck Avenue
White Plains, New York 10605
(Address of principal executive offices) (Zip Code)
(914) 288-8100
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Exhibit Number Description
- ------------------- --------------------------------
99.1 Financial and Operating Reporting Supplement for the
Quarter Ended June 30, 2003
99.2 Press release dated July 28, 2003
ITEM 9. Regulation FD Disclosure
On July 28, 2003, the Registrant, Acadia Realty Trust, made available
supplemental information concerning the ownership, operations and portfolio of
the Registrant as of June 30, 2003. A copy of this supplemental information is
furnished as Exhibit 99.1 to this report on Form 8-K. The information contained
in Item 9. of this report on Form 8-K, including Exhibit 99.1, shall not be
deemed "filed" with the Securities and Exchange Commission nor incorporated by
reference in any registration statement filed by the Registrant under the
Securities Act of 1933, as amended.
ITEM 12. Results of Operations and Financial Condition
On July 28, 2003, the Registrant announced its consolidated financial results
for the quarter ended June 30, 2003. A copy of the Registrant's earnings press
release is furnished as Exhibit 99.2 to this report on Form 8-K. The information
contained in Item 12. of this report on Form 8-K, including Exhibit 99.2, shall
not be deemed "filed" with the Securities and Exchange Commission nor
incorporated by reference in any registration statement filed by the Registrant
under the Securities Act of 1933, as amended.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ACADIA REALTY TRUST
(Registrant)
Date: July 28, 2003 By: /s/ Michael Nelsen
-------------------
Name: Michael Nelsen
Title: Sr. Vice President and Chief Financial Officer
2
Exhibit 99.1
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Table of Contents
Page
Section I - Overview
Company Information 2
Portfolio Snapshot 3
Organizational Chart 4
Management Team 5
Section II - Financial Information
Market Capitalization 6
Shareholder Information 7
Operating Statements - Consolidated 8
Operating Statements - Joint Venture Activity 9
Operating Statements - Activity by Source 10
Operating Statements - Current v. Historical 11
Net Operating Income - Same Property Performance 12
Funds from Operations ("FFO") and Adjusted FFO ("AFFO") 13
Capital Expenditures 14
Balance Sheets 15
Selected Operating Ratios 16
Debt Analysis - Consolidated 17
Debt Maturity Schedule 19
Unencumbered Properties 20
Page
Section III - Joint Venture - Acadia Strategic Opportunity Fund
Overview 21
Joint Venture Properties - Detail 22
Kroger/Safeway Locations 23
Top 10 Joint Venture Tenants 24
Section IV - Portfolio Information
Properties - Overview 25
Properties by Region - Summary 28
Properties by State - Summary 29
Properties - Detail 30
Leasing Production 33
Top 10 Tenants - Consolidated 34
Anchor Tenant Detail 35
Anchor Lease Expirations - 2003 through 2005 39
Lease Expirations 40
Property Demographics 46
Properties under Redevelopment 47
Residential Properties 48
See acadiarealty.com for current news as well as additional property
details and financial information
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this Supplementary Disclosure constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among others, the
following: general economic and business conditions, which will, among other
things, affect demand for rental space, the availability and creditworthiness of
prospective tenants, lease rents and the availability of financing; adverse
changes in the Company's real estate markets, including, among other things,
competition with other companies; risks of real estate development and
acquisition; governmental actions and initiatives; and environmental/safety
requirements.
1
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Company Information
Acadia Realty Trust, headquartered in White Plains, NY, is a fully integrated
and self-managed real estate investment trust which specializes in the
acquisition, redevelopment and operation of shopping centers which are anchored
by grocery and value-oriented retail. Acadia currently owns (or has interests
in) and operates 62 properties totaling approximately 9 million square feet,
located in the Northeast, Mid-Atlantic and Midwest United States.
All of Acadia's assets are held by, and all its operations are conducted
through, Acadia Realty Limited Partnership (and its majority-owned subsidiaries)
which is currently 95% controlled by Acadia.
Corporate Headquarters 1311 Mamaroneck Avenue Investor Relations Jon Grisham
Suite 260 Vice President
White Plains, NY 10605 (914) 288-8100
jgrisham@acadiarealty.com
New York Stock Exchange Symbol AKR Web Site www.acadiarealty.com
Analyst Coverage Mercury Partners LLC Citigroup - Smith Barney
Paul Adornato, CFA - (203) 769-2982 Jonathan Litt - (212) 816-0231
padornato@mercuryrealestate.com jonathan.litt@citigroup.com
Ross Nussbaum - (212)816-1685
ross.nussbaum@citigroup.com
David Carlisle - (212) 816-1382
RBC Capital Markets: david.s.carlisle@citigroup.com
Jay Leupp - (415) 633-8588
jay.leupp@rbccm.com J.P. Morgan Securities, Inc.
David Ronco - (415) 633-8566 Michael W. Mueller, CFA (212) 622-6689
david.ronco@rbccm.com michael.w.mueller@jpmorgan.com
2
Portfolio Snapshot
[GRAPHIC]
Retail Base Rent by State
[GRAPHIC]
3
Management Team
[GRAPHIC]
4
QUARTERLY SUPPLEMENTAL DISCLOSURE
MARCH 31, 2003
Executive Management Team
Kenneth F. Bernstein Chief Executive Officer and
President
Mr. Bernstein is responsible for strategic planning as well as overseeing
all day to day activities of the Company including operations, acquisitions and
capital markets. Mr. Bernstein served as the Chief Operating Officer of RD
Capital, Inc. from 1990 until the merger of RD Capital with Mark Centers Trust
in August of 1998, forming Acadia Realty Trust. In such capacity, he was
responsible for overseeing the day-to-day operations of RD Capital and its
management companies, Acadia Management Company LLC and Sound View Management
LLC. Prior to joining RD Capital, Mr. Bernstein was an associate with the New
York law firm of Battle Fowler, LLP, from 1986 to 1990. Mr. Bernstein received
his Bachelor of Arts Degree from the University of Vermont and his Juris
Doctorate from Boston University School of Law.
Joel Braun Senior Vice President,
Acquisitions
Mr. Braun is responsible for the sourcing and financial analysis of
acquisition properties for Acadia. Previously, Mr. Braun was Director of
Acquisitions and Finance for Rosenshein Associates, a regional shopping center
developer based in New Rochelle, New York. During this time, Mr. Braun was
instrumental in the initiation and formation of Kranzco Realty Trust, a publicly
traded REIT. Mr. Braun holds a Bachelor's in Business Administration from Boston
University and a Master's Degree in Planning from John Hopkins University.
Joseph Hogan Senior Vice President,
Director of Construction
Most recently, Mr. Hogan served as Vice President with Kimco Realty
Corporation (NYSE:KIM), where he was responsible for business development and
management of all retail and commercial construction projects for Kimco, in
addition to outside customers and development companies. Prior to joining Kimco,
he was with Konover Construction Company, a subsidiary of Konover & Associates
located in West Hartford, Connecticut, where he was responsible for construction
projects throughout the eastern half of the United States.
Robert Masters, Esq. Senior Vice President,
General Counsel,
Corporate Secretary
Prior to joining Acadia in December 1994, Mr. Masters was General Counsel
for API Asset Management for over five years, Senior Vice President Deputy
General Counsel for European American Bank from 1985 to 1990, and Vice President
and Counsel for National Westminster Bank from 1977 to 1985. Mr. Masters
received his Bachelor of Arts from the City University of New York and a J.D.
from New York University Law School. Mr. Masters is also a member of the New
York Bar.
Joseph M. Napolitano, Senior Vice President,
CPM Property Management
Mr. Napolitano is responsible for overseeing the retail property management
department for Acadia Realty Trust. Prior to joining Acadia in 1995, Mr.
Napolitano was employed by Rosen Associates Management Corp. as a Senior
Property Manager overseeing a national portfolio of community shopping centers,
and Roebling Management Co. as a Property Manager responsible for neighborhood
and community shopping centers nationally. Mr. Napolitano holds a Bachelor's in
Business Administration from Adelphi University, Garden City, NY; and is a
Certified Property Manager by the Institute of Property Management (IREM). Mr.
Napolitano is also a member of the New York State Association of Realtors
(NYSAR) International Council of Shopping Center (ICSC), Commercial Investment
Real Estate Institute (CIREI), and the Building Owners and Managers Institute
(BOMI).
Michael Nelsen Senior Vice President,
Chief Financial Officer
Mr. Nelsen oversees all the financial activities and asset management
functions. Mr. Nelsen was most recently President of G. Soros Realty, Inc. and
Director of Real Estate for Soros Private Funds Management LLC. His
responsibilities included asset/portfolio management of real estate operations,
financial reporting, financings, asset acquisitions and dispositions.
Previously, he was a partner in the public accounting firm of David Berdon & Co.
Mr. Nelsen has been a Certified Public Accountant since 1971.
Joseph Povinelli Senior Vice President,
Leasing
Mr. Povinelli joined Acadia in 1999 with 19 years of retail leasing
experience. Since 1987 Mr. Povinelli had served as regional real estate
representative for Vornado Realty Trust, a New Jersey based Real estate
investment trust, and was responsible for the day to day leasing activity of
approximately 3 million square feet of the strip shopping center portfolio.
Prior to this he served as leasing representative for Net Properties Management,
Great Neck, New York, responsible for leasing of the strip shopping center and
office building portfolio of the mid-atlantic and southeast regions of the
company. Mr. Povinelli received a Bachelor of Science degree in Finance and
Economics from C.W. Post College of Long Island Universty.
5
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Total Market Capitalization
Percent of
Percent of Total Market
(amounts in thousands) Total Equity Capitalization
Total Common Shares Outstanding 94.6% 27,234 1
Common Operating Partnership ("OP") Units 4.6% 1,326
-----
Combined Common Shares and OP Units 28,560
Market Price at June 30, 2003 $ 9.15
------
Equity Capitalization - Common Shares and OP Units 261,324
Preferred OP Units - at cost 2 0.8% 2,212
---- -----
Total Equity Capitalization 100.0% 263,536 56.9%
======
Debt Capitalization 199,691 43.1%
-------- -----
Total Market Capitalization $ 463,227 100.0%
========== ======
Total Market Capitalization
[GRAPHIC]
Weighted Average Outstanding Common Shares and O.P. Units
Common
Shares O.P. Units Total
- ---------------------------------------------------------------------------------------
Quarter ended June 30, 2003 - Basic 26,387,010 2,074,017 28,461,027
Quarter ended June 30, 2003 - Diluted 27,175,713 2,074,017 29,249,730
Six months ended June 30, 2003 - Basic 25,884,843 2,563,571 28,448,414
Six months ended June 30, 2003 - Diluted 26,557,627 2,563,571 29,121,198
- ---------------------------------------------------------------------------------------
Quarter ended June 30, 2002 - Basic 24,775,053 3,648,355 28,423,408
Quarter ended June 30, 2002 - Diluted 25,252,842 3,648,355 28,901,197
Six months ended June 30, 2002 - Basic 25,571,325 4,011,813 29,583,137
Six months ended June 30, 2002 - Diluted 26,015,225 4,011,813 30,027,037
1 As of June 30, 2003, the Company had purchased 1,826,265 shares (net of
reissuance of 228,340 shares) under its Stock Repurchase P above at their
stated cost of $1,000 per unit.
2 In connection with the acquisition of the Pacesetter Park Shopping Center
in 1999, the Company issued 2,212 Preferred OP Units which are reflected
3 Fixed-rate debt includes $86.9 million of notional principal fixed through
interest rate swap transactions and conversely, variabl amount.
6
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Shareholder Information
(amounts in thousands)
Ten Largest Institutional/Non-Retail Shareholders 1 Percent of Out-
Common standing Common
Shareholder Shares Held Shares
Yale University 2 8,422 30.9%
Stanford University 2,133 7.8%
The Vanderbilt University 1,347 4.9%
Harvard Private Capital Realty, Inc. 1,340 4.9%
Wellington Management 1,212 4.5%
Carnegie Corporation of New York 943 3.5%
LaSalle Investment Management 503 1.8%
Yale University Retirement Plan 404 1.5%
First Manhattan Capital Management 352 1.3%
ABP 333 1.2%
---- ----
Total of Ten Largest Institutional Shareholders 16,989 62.4%
======= =====
Total of all Institutional Shareholders 19,075 70.0%
======= =====
Operating Partnership
Unit Information
Percent
of Total O.P. Units
Institutional O.P. Unit Holders - 0.0%
Employee/Trustee O.P. Unit Holders 1,068 80.5%
Other O.P. Unit Holders 258 19.5%
---- -----
Total O.P. Units 1,326 100.0%
====== ======
Management and Trustee Ownership
Common Shares (not including options) 250
O.P. Units (see above) 1,068
-----
1,318
1 Based on Schedule 13F filings with the U.S. Securities and Exchange Commission
2 The Company and Yale University have established a voting trust whereby all
shares that Yale University owns in excess of 30% of the Company's
outstanding Common Shares, will be voted in the same proportion (excluding
Yale) as all other shares voted.
Total Share/O.P. Unit Ownership (Combined)
[GRAPHIC]
7
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Statements of Operations - Consolidated 1
- -------------------------------------------
Current Quarter and Year-to-Date
- -------------------------------------------
(in thousands)
----------------------- ----------------------- -----------------------
Year-to-Date Current Quarter Previous
Quarter
6 months 3 months 3 months
ended June 30, ended June 30, ended March 31,
2003 2003 2003
----------------------- ----------------------- -----------------------
Wholly JV's 2 Total Wholly JV's 2 Total Wholly JV's 2 Total
Owned Owned Owned
----------------------- ----------------------- -----------------------
PROPERTY REVENUES
Minimum rents $24,245 $3,813 $28,058 $12,389 $2,093 $14,482 $11,856 $1,720 $13,576
Percentage rents 389 1 390 95 (11) 84 294 12 306
Expense reimbursements 6,613 978 7,591 2,896 455 3,351 3,717 523 4,240
Other property income 312 30 342 161 12 173 151 18 169
----------------------- ----------------------- -----------------------
31,559 4,822 36,381 15,541 2,549 18,090 16,018 2,273 18,291
----------------------- ----------------------- -----------------------
PROPERTY EXPENSES
Property operating 7,596 653 8,249 3,330 292 3,622 4,266 361 4,627
Real estate taxes 4,009 430 4,439 1,812 227 2,039 2,197 203 2,400
----------------------- ----------------------- -----------------------
11,605 1,083 12,688 5,142 519 5,661 6,463 564 7,027
----------------------- ----------------------- -----------------------
NET OPERATING INCOME - PROPERTIES 19,954 3,739 23,693 10,399 2,030 12,429 9,555 1,709 11,264
OTHER INCOME (EXPENSE)
General and administrative (5,145) (1) (5,146) (2,449) (1) (2,450) (2,696) - (2,696)
Abandoned project costs - - - - - - - - -
Lease termination income - - - - - - - - -
Interest income 414 20 434 164 - 164 250 20 270
Asset and property management income 929 - 929 531 - 531 398 - 398
Property management expense (147) - (147) (59) - (59) (88) - (88)
Straight-line rent income 470 (359) 111 229 (221) 8 241 (138) 103
Straight-line rents written off - - - - - - - - -
Other income 1,218 - 1,218 - - - 1,218 - 1,218
----------------------- ----------------------- -----------------------
EBIDTA 17,693 3,399 21,092 8,815 1,808 10,623 8,878 1,591 10,469
Depreciation and amortization (7,489)(1,035) (8,524) (3,888) (565) (4,453) (3,601) (470) (4,071)
Interest expense (5,531)(1,216) (6,747) (2,805) (648) (3,453) (2,726) (568) (3,294)
Impairment of real estate - - - - - - - - -
Gain on sale of properties 1,212 - 1,212 - - - 1,212 - 1,212
----------------------- ----------------------- -----------------------
Income before minority interest 5,885 1,148 7,033 2,122 595 2,717 3,763 553 4,316
Minority interest (1,025) (102) (1,127) (231) (43) (274) (794) (59) (853)
----------------------- ----------------------- -----------------------
NET INCOME $4,860 $1,046 $5,906 $1,891 $552 $2,443 $2,969 $494 $3,463
======================= ======================= =======================
1 Quarterly results are unaudited, although they reflect all adjustments,
which in the opinion of management, are necessary for a fair presentation
of operating results for the interim periods. The Company's equity in the
earnings of unconsolidated partnerships is reflected separately for
revenues and expenses by calculating it's pro-rata share for each of the
above line items. In total, this agrees with the equity in earnings of
unconsolidated partnerships as reported in the Company's Form 10Q's and 10K
for the corresponding periods.
2 The Company currently invests in two JV's. The first is a 22% interest in
Acadia Strategic Opportunity Fund ("Acadia Acquisition"). The second JV is
a 49% interest in a 311,000 square foot shopping center located in White
Plains, NY. See "Statement of Operations - Joint Venture Activity" for
additional detail.
8
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Statements of Operations - Joint Venture
Activity 1
- ---------------------------------------------
Current Quarter and Year-to-
Date
- ----------------------------
(in thousands)
------------------------------------------ ---------------------------------------- -------------------------------
Year-to-Date Current Quarter Previous Quarter
6 months 3 months 3 months
ended June 30, ended June 30, ended March 31,
2003 2003 2003
------------------------------------------ ---------------------------------------- -------------------------------
Acadia Pro- Pro- Pro- Acadia Pro- Pro- Pro- Acadia Pro- Pro- Pro-
rata rata rata rata rata rata rata rata rata
Acquisition share Crossroads share Total Acquisition share Crossroadsshare Total Acquisition share Cross-
roads
share Total
------------------------------------------ ---------------------------------------- -------------------------------
PROPERTY REVENUES
Minimum rents $11,107 $2,469 $2,742 $1,344 $3,813 $6,372 $1,416 $1,381 $677 $2,093 $4,735 $1,053 $1,361 $667 $1,720
Percentage rents 5 1 - - 1 - - (22) (11) (11) 5 1 22 11 12
Expense
reimbursements 1,638 364 1,253 614 978 662 147 628 308 455 976 217 625 306 523
Other property
income 69 15 32 15 30 24 5 15 7 12 45 10 17 8 18
------------------------------------------ ----------------------------------- -----------------------------------
12,819 2,849 4,027 1,973 4,822 7,058 1,568 2,002 981 2,549 5,761 1,281 2,025 992 2,273
------------------------------------------ ----------------------------------- -----------------------------------
PROPERTY EXPENSES
Property
operating 1,806 401 514 252 653 856 190 208 102 292 950 211 306 150 361
Real estate taxes 443 98 678 332 430 248 55 351 172 227 195 43 327 160 203
------------------------------------------ ----------------------------------- -----------------------------------
2,249 499 1,192 584 1,083 1,104 245 559 274 519 1,145 254 633 310 564
------------------------------------------ ----------------------------------- -----------------------------------
NET OPERATING
INCOME -
PROPERTIES 10,570 2,350 2,835 1,389 3,739 5,954 1,323 1,443 707 2,030 4,616 1,027 1,392 682 1,709
OTHER INCOME
(EXPENSE)
General and
administrative (7) (1) - - (1) (6) (1) - - (1) (1) - - - -
Abandoned project
costs - - - - - - - - - - - - - - -
Lease termination
income - - - - - - - - - - - - - - -
Interest income 90 20 - - 20 2 - - - - 88 20 - - 20
Asset and
property
management
income - - - - - - - - - - - - - - -
Asset and
property
management
expense 2 (1,044) - - - - (602) - - - - (442) - - - -
Straight-line
rent income (1,745) (388) 60 29 (359) (1,116) (248) 55 27 (221) (629) (140) 5 2 (138)
Straight-line
rents written
off - - - - - - - - - - - - - - -
Other income - - - - - - - - - - - - - - -
------------------------------------------ ---------------------------------------- -------------------------------
EBIDTA 7,864 1,981 2,895 1,418 3,399 4,232 1,074 1,498 734 1,808 3,632 907 1,397 684 1,591
Depreciation and
amortization 3 (3,147) (700) (284) (335)(1,035) (1,781) (396) (145)(169) (565) (1,366)(304) (139)(166) (470)
Interest expense
3 (2,759) (613) (1,286) (603)(1,216) (1,554) (345) (647)(303) (648) (1,205)(268) (639)(300) (568)
Impairment of
real estate - - - - - - - - - - - - - - -
Gain on sale of
properties - - - - - - - - - - - - - - -
------------------------------------------ ------------------------------------------------------------------------
Income before
minority
interest 1,958 668 1,325 480 1,148 897 333 706 262 595 1,061 335 619 218 553
Minority interest - (60) - (42) (102) - (24) - (19) (43) - (36) - (23) (59)
------------------------------------------ ---------------------------------------- ------------------------------
NET INCOME $1,958 $608 $1,325 $438 $1,046 $897 $309 $706 $243 $552 $1,061 $299 $619 $195 $494
========================================== ======================================== ==============================
1 Quarterly results are unaudited, although they reflect all adjustments,
which in the opinion of management, are necessary for a fair presentation
of operating results for the interim periods. The Company's equity in the
earnings of unconsolidated partnerships is reflected separately for
revenues and expenses by calculating it's pro-rata share for each of the
above line items. In total, this agrees with the equity in earnings of
unconsolidated partnerships as reported in the Company's Form 10Q's and 10K
for the corresponding periods.
The Company currently invests in two JV's. The first is a 22% interest in
Acadia Strategic Opportunity Fund ("Acadia Acquisition"), which owns, or
has an ownership interest in 30 properties totalling approximately
2,044,000 square feet. The second JV investment is a 49% interest in a
311,000 square foot shopping center located in White Plains, NY
("Crossroads").
2 Acadia Acquisition pays asset management and property management fees to
Acadia Realty L.P. As such, the Company does not recognize a pro- rata
share of these expenses in its consolidated financial statements.
3 The Company has obtained two interest rate swaps, effectively fixing the
interest rate on its pro-rata portion of the mortgage debt from its
investment in Crossroads. Acadia's pro-rata share of its interest expense
has been adjusted for the effect of these swaps. In addition to its
pro-rata share of depreciation, the Company recognizes depreciation on its
increased basis in Crossroads.
9
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Statements of Operations - Activity
by Source 1
- -------------------------------------
(in thousands)
-------------------------------- -------------------------------- --------------------------------
Year-to-Date Current Quarter Previous
Quarter
6 months 3 months 3 months
ended June 30, ended June 30, ended March 31,
2003 2003 2003
-------------------------------- -------------------------------- --------------------------------
Retail Multi- Corporate Total Retail Multi- Corporate Total Retail Multi- Corporate Total
Family Family Family
-------------------------------- -------------------------------- --------------------------------
PROPERTY REVENUES
Minimum rents $24,676 $3,382 $- $28,058 $12,783 $1,699 $- $14,482 $11,893 $1,683 $- $13,576
Percentage rents 390 - - 390 84 - - 84 306 - - 306
Expense reimbursements 7,591 - - 7,591 3,351 - - 3,351 4,240 - - 4,240
Other property income 136 206 - 342 85 88 - 173 51 118 - 169
-------------------------------- -------------------------------- --------------------------------
32,793 3,588 - 36,381 16,303 1,787 - 18,090 16,490 1,801 - 18,291
-------------------------------- -------------------------------- --------------------------------
PROPERTY EXPENSES
Property operating 6,550 1,699 - 8,249 2,683 939 - 3,622 3,867 760 - 4,627
Real estate taxes 4,281 158 - 4,439 1,957 82 - 2,039 2,324 76 - 2,400
-------------------------------- -------------------------------- --------------------------------
10,831 1,857 - 12,688 4,640 1,021 - 5,661 6,191 836 - 7,027
-------------------------------- -------------------------------- --------------------------------
NET OPERATING INCOME -
PROPERTIES 21,962 1,731 - 23,693 11,663 766 - 12,429 10,299 965 - 11,264
OTHER INCOME (EXPENSE)
General and
administrative - - (5,146) (5,146) - - (2,450) (2,450) - - (2,696) (2,696)
Abandoned project
costs - - - - - - - - - - - -
Lease termination
income - - - - - - - - - - - -
Interest income - - 434 434 - - 164 164 - - 270 270
Asset and property
management income - - 929 929 - - 531 531 - - 398 398
Other property
management fees (42) (105) - (147) (21) (38) - (59) (21) (67) - (88)
Straight-line rent
income 111 - - 111 8 - - 8 103 - - 103
Straight-line rents
written off - - - - - - - - - - - -
Other income 1,218 - - 1,218 - - - - 1,218 - - 1,218
-------------------------------- -------------------------------- --------------------------------
EBIDTA 23,249 1,626 (3,783) 21,092 11,650 728 (1,755) 10,623 11,599 898 (2,028) 10,469
Depreciation and
amortization (7,728) (649) (147) (8,524) (4,049) (328) (76) (4,453) (3,679) (321) (71) (4,071)
Interest expense (5,980) (767) - (6,747) (3,070) (383) - (3,453) (2,910) (384) - (3,294)
Impairment of real
estate - - - - - - - - - - - -
Gain on sale of
properties 1,212 - - 1,212 - - - - 1,212 - - 1,212
-------------------------------- -------------------------------- --------------------------------
Income before minority
interest 10,753 210 (3,930) 7,033 4,531 17 (1,831) 2,717 6,222 193 (2,099) 4,316
Minority interest (1,464) (22) 359 (1,127) (406) (1) 133 (274) (1,058) (21) 226 (853)
-------------------------------- -------------------------------- --------------------------------
NET INCOME $9,289 $188 $(3,571) $5,906 $4,125 $16 $(1,698) $2,443 $5,164 $172 $(1,873) $3,463
================================ ================================ ================================
1 Quarterly results are unaudited, although they reflect all adjustments,
which in the opinion of management, are necessary for a fair presentation
of operating results for the interim periods. The Company's equity in the
earnings of unconsolidated partnerships is reflected separately for
revenues and expenses by calculating it's pro-rata share for each of the
above line items. In total, this agrees with the equity in earnings of
unconsolidated partnerships as reported in the Company's Form 10Q's and 10K
for the corresponding periods.
10
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Statements of Operations - Current v.
Historical 1
- -----------------------------------------
(in thousands)
--------------------------------------------------------------- --------------------------------- ------------------
Current Quarter Historical Current Year-to-Date Historical Year-
Quarter to-Date
3 months 3 months 6 months 6 months
ended June 30, ended June ended June 30, ended June 30,
30,
2003 2002 2003 2002
--------------------------------------------------------------------------------------------- ----------------------
Discontinued Discontinued Discontinued Discontinued
Wholly JV's 2 Operations Total Wholly JV's Operations Total Wholly JV's 2 Operations Total Wholly JV's Opera-
Owned 3 Owned 3 Owned 3 Owned tions Total
3
--------------------------------------------------------------- --------------------------------- ------------------
PROPERTY
REVENUES
Minimum rents $12,389 $2,093 $- $14,482 $11,690 $613 $1,075 $13,378 $24,245 $3,813 $- $28,058 $23,247 $1,215 $3,973 $28,435
Percentage
rents 95 (11) - 84 122 12 117 251 389 1 - 390 441 57 338 836
Expense
reimbursements 2,896 455 - 3,351 2,741 207 301 3,249 6,613 978 - 7,591 5,266 416 934 6,616
Other property
income 161 12 - 173 144 9 176 329 312 30 - 342 309 19 210 538
-------------------------- ---------------------------- ---------------------------- ------------------------------
15,541 2,549 - 18,090 14,697 841 1,669 17,207 31,559 4,822 - 36,381 29,263 1,707 5,455 36,425
-------------------------- ---------------------------- ---------------------------- ------------------------------
PROPERTY
EXPENSES
Property
operating 3,330 292 - 3,622 2,528 87 312 2,927 7,596 653 - 8,249 5,203 185 999 6,387
Real estate
taxes 1,812 227 - 2,039 2,170 155 187 2,512 4,009 430 - 4,439 4,090 310 719 5,119
-------------------------- ---------------------------- ---------------------------- ------------------------------
5,142 519 - 5,661 4,698 242 499 5,439 11,605 1,083 - 12,688 9,293 495 1,718 11,506
-------------------------- ---------------------------- ---------------------------- ------------------------------
NET OPERATING
INCOME -
PROPERTIES 10,399 2,030 - 12,429 9,999 599 1,170 11,768 19,954 3,739 - 23,693 19,970 1,212 3,737 24,919
OTHER INCOME
(EXPENSE)
General and
administrative (2,449) (1) - (2,450) (2,802) - - (2,802) (5,145) (1) - (5,146) (5,127) - - (5,127)
Abandoned
project costs - - - - - - - - - - - - - - - -
Lease
termination
income - - - - 145 - - 145 - - - - 3,945 - - 3,945
Interest income 164 - - 164 510 - 7 517 414 20 - 434 935 - 21 956
Asset and
property
management
income 531 - - 531 310 - - 310 929 - - 929 641 - - 641
Property
management
expense (59) - - (59) (40) - - (40) (147) - - (147) (80) - - (80)
Straight-line
rent income 229 (221) - 8 202 (9) (23) 170 470 (359) - 111 474 (25) (14) 435
Straight-line
rents written
off - - - - (100) - - (100) - - - - (100) - - (100)
Other income - - - - 159 - - 159 1,218 - - 1,218 291 - - 291
--------------------------------- ------------------------------- --------------------------- ----------------------
EBIDTA 8,815 1,808 - 10,623 8,383 590 1,154 10,127 17,693 3,399 - 21,092 20,949 1,187 3,744 25,880
Depreciation
and
amortization (3,888) (565) - (4,453) (3,673)(166) (436) (4,275)(7,489)(1,035) - (8,524)(7,258)(330) (1,446) (9,034)
Interest
expense (2,805) (648) - (3,453) (2,665)(318) (351) (3,334)(5,531)(1,216) - (6,747)(5,426)(633) (1,407) (7,466)
Impairment of
real estate - - - - - - - - - - - - - - -
Gain on sale of
properties - - - - - - 1,987 1,987 1,212 - - 1,212 1,530 - 1,832 3,362
--------------------------------- ------------------------------- --------------------------------- ----------------
Income before
minority
interest 2,122 595 - 2,717 2,045 106 2,354 4,505 5,885 1,148 - 7,033 9,795 224 2,723 12,742
Minority
interest (231) (43) - (274) (367) (14) (302) (683) (1,025) (102) - (1,127)(2,068) (31) (355) (2,454)
--------------------------------- --------------------------- ------------------------------------------------------
NET INCOME $1,891 $552 $- $2,443 $1,678 $92 $2,052 $3,822 $4,860 $1,046 $- $5,906 $7,727 $193 $2,368 $10,288
================================= =============================== ==================================================
1 Quarterly results are unaudited, although they reflect all adjustments,
which in the opinion of management, are necessary for a fair presentation
of operating results for the interim periods. The Company's equity in the
earnings of unconsolidated partnerships is reflected separately for
revenues and expenses by calculating it's pro-rata share for each of the
above line items. In total, this agrees with the equity in earnings of
unconsolidated partnerships as reported in the Company's Form 10Q's and 10K
for the corresponding periods. Certain 2002 quarterly amounts have been
reclassified to conform with the presentation of discontinued operations
for the year ended December 31, 2002 (see note 3).
2 The Company currently invests in two JV's. The first is a 22% interest in
Acadia Strategic Opportunity Fund ("Acadia Acquisition"). The second JV is
a 49% interest in a 311,000 square foot shopping center located in White
Plains, NY. See "Statement of Operations - Joint Venture Activity" for
additional detail.
3 Discontinued operations represent the activity related to all properties
sold since January 1, 2002. All of these properties were sold prior to
January 1, 2003.
11
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Net Operating Income (NOI) - Same
Property Performance 1
- -----------------------------------------
(in thousands) 2nd Quarter Growth in 6 Months Growth in Same
Same
------------------ ------------------
Property NOI Property NOI
- -
----------------------
Continuing Continuing
Operations Operations
Current Historical Favorable Current Historical Favorable No
Quarter Quarter (unfavorable) Year- Year-to- (unfavorable) Print
to-Date Date
----------------------------------------------------------------
Reconciliation of total NOI to
same property NOI:
Three Three Six Six months Three Three
months months months ended months months
ended ended ended ended ended
June 30, June 30, June 30, June 30, March March
31, 31,
2003 2002 2003 2002 2003 2002
------------------ ------------------ ----------------
NOI - Wholly owned properties $10,399 $11,169 $19,954 $23,707 $2,567 $-
NOI - Joint Ventures
(Unconsolidated partnerships) 2,030 599 3,739 1,212 13,151 -
------------------ ------------------ ----------------
Total NOI 12,429 11,768 23,693 24,919 15,718 -
NOI - Properties Acquired (1,338) - (2,400) - (1,134) -
NOI - Redevelopment Properties (1,172) (375) (2,016) (719) (855) (309)
NOI - Properties Sold / Held for
sale ("Discontinued
Operations") - (1,170) - (3,734) - (2,564)
------------------ ------------------ ----------------
$9,919 $10,223 -3.0% $19,277 $20,466 -5.8% $13,729 $(2,873)
============================== =============================== ================
Same property NOI by portfolio component and
revenues/expenses:
Shopping Center Shopping Center Shopping Center
Portfolio Portfolio Portfolio
Revenues$13,302 $13,295 0.1% $27,483 $26,500 3.7% $14,184 $13,240
Expenses 4,145 3,920 -5.7% 9,929 7,866 -26.2% 5,784 3,946
------------------------------ ------------------------------- ----------------
9,157 9,375 -2.3% 17,554 18,634 -5.8% 8,400 9,294
------------------------------ ------------------------------- ----------------
Residential Residential Residential
Properties (2 Properties (2 Properties (2
properties) properties) properties)
Revenues 1,783 1,730 3.1% 3,581 3,467 3.3% 1,798 1,737
Expenses 1,021 882 -15.8% 1,858 1,635 -13.6% 837 753
------------------------------ ------------------------------- ----------------
762 848 -10.1% 1,723 1,832 -5.9% 961 984
------------------------------ ------------------------------- ----------------
$9,919 $10,223 -3.0% $19,277 $20,466 -5.8% $9,361 $10,278
============================== =============================== ================
1 The above amounts includes the pro-rata activity related to the Company's
joint ventures.
12
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Funds from Operations ("FFO") 1
- ------------------------------------------------------------------------------
(in thousands) 2003 2002
-------- -------
Current Current Previous Historic Historic
Year-to- Quarter Quarter Year-to- Quarter
Date Date
6 months 3 3 months 6 months 3 months
ended months ended ended ended
ended
Funds from operations ("FFO"): Notes June 30, June March June 30, June 30,
2003 30, 31, 2002 2002
2003 2003
- ------------------------------------------------------------------------- ----------------
Net Income $5,906 $2,443 $3,463 $10,288 $3,822
Add back:
Depreciation of real estate and amortization of leasing costs:
Wholly owned and consolidated subsidiaries 6,970 3,571 3,399 8,140 3,801
Unconsolidated subsidiaries 1,010 551 459 316 159
Income attributable to Operating Partnership units 2 641 203 438 1,704 588
Impairment of real estate - - - - -
Gain on sale of properties 3 - - - (1,832) (1,987)
-------- ------- -------- ----------------
14,527 6,768 7,759 18,616 6,383
Less: FFO related to discontinued operations 4 - - - (2,299) (791)
-------- ------- -------- ----------------
FFO - Continuing Operations 6 $14,527 $6,768 $7,759 $16,317 $5,592
======== ======= ======== ================
Adjusted Funds from operations ("AFFO"):
======================================================================================
FFO $14,527 $6,768 $7,759
Straight line rent (111) (8) (103)
Non real-estate depreciation 147 76 71
Amortization of finance costs 388 246 142
Tenant improvements (506) (160) (346)
Leasing commissions (54) (9) (45)
Capital expenditures (1,628) (882) (746)
-------- ------- --------
AFFO $12,763 $6,031 $6,732
======== ======= ========
Funds Available for Distribution ("FAD")
======================================================================================
AFFO $12,763 $6,031 $6,732
Scheduled prinicpal repayments (2,410) (1,185) (1,225)
-------- ------- --------
FAD $10,353 $4,846 $5,507
======== ======= ========
FFO per share - Basic
FFO per share 5,6 $0.51 $0.24 $0.27 $0.62 $0.22
======== ======= ======== ================
FFO per share - Continuing operations 5,6 $0.51 $0.24 $0.27 $0.64 $0.20
======== ======= ======== ================
FFO per share - Diluted
FFO per share 5,6 $0.50 $0.23 $0.27 $0.62 $0.22
======== ======= ======== ================
FFO per share - Continuing operations 5,6 $0.50 $0.23 $0.27 $0.54 $0.20
======== ======= ======== ================
AFFO per share - Basic 5,6 $0.45 $0.21 $0.24
======== ======= ========
AFFO per share - Diluted 5,6 $0.44 $0.21 $0.24
======== ======= ========
FAD per share - Basic 5,6 $0.36 $0.17 $0.19
======== ======= ========
FAD per share - Diluted 5,6 $0.36 $0.17 $0.19
======== ======= ========
1 Quarterly results are unaudited, although they reflect all adjustments,
which in the opinion of management are necessary for a fair presentation of
operating results for the interim periods.
2 Reflects OP Unitholders interest in OP net income.
3 FFO for the quarter ended March 31, 2002 has been restated to include the
$957 gain from the sale of undepreciated property (net of minority interest
of $573). FFO for the quarter ended March 31, 2003 includes a $659 gain on
the sale of undepreciated property.
4 Discontinued operations represent the activity related to all properties
sold since January 1, 2001.
5 Assumes full conversion of O.P. Units into Common Shares. Diluted FFO
assumes conversion of Preferred O.P. Units as well as assumed exercise of
outstanding share options. Quarterly Preferred OP Unit distributions of $50
are added back for the purposes of calculating diluted FFO. Refer to
"Market Capitalization" for weighted-average basic and diluted shares.
6 FFO for the quarter ended March 31, 2002 includes $3,800 ($0.13 per share)
of lease termination income received during the period and FFO for the
quarter ended March 31, 2003 includes a $1,218 ($0.04 per share) lump sum
rent payment in connection with a tenant's assignment of an anchor lease at
the Branch Plaza.
13
QUARTERLY SUPPLEMENTAL
DISCLOSURE
JUNE 30, 2003
Capital Expenditures
----------------------------
--------------- ---------------
Six months Three months Three months
ended ended ended
June 30, 2003 June 30, 2003 March 31, 2003
--------------- --------------- -------------------------
Leasing Commissions: $54 $9 $45
--------------- --------------- -------------------------
Tenant Improvements: 506 160 346
--------------- --------------- -------------------------
Capital Expenditures:
Retail 931 526 405
Residential 697 356 341
--------------- --------------- -------------------------
1,628 882 746
--------------- --------------- -------------------------
Redevelopments 1: 3,120 2,044 1,076
--------------- --------------- -------------------------
Total $5,308 $3,095 $2,213
=============== =============== =========================
Expenditures for real estate
and
improvements as reported on the
Company's Statement of Cash Flows $5,254 $3,086 $2,168
Expenditures included in deferred
leasing 54 9 45
--------------- --------------- -------------------------
costs in Statement of Cash Flows $5,308 $3,095 $2,213
=============== =============== =========================
1 Represents costs (including leasing commissions) exclusively at the Gateway
Shopping Center and Elmwood Park Shopping Center.
14
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Consolidated Balance Sheets
- ------------------------------------------------------
(in thousands)
June 30, December 31,
2003 2002
--------- ---------------------------------------
ASSETS
Real estate
Land $54,890 $54,890
Buildings and improvements 365,151 352,359
Construction in progress 3,356 6,629
--------- ---------------------------------------
423,397 413,878
Less: accumulated depreciation (91,612) (85,062)
--------- ---------------------------------------
Net real estate 331,785 328,816
Cash and cash equivalents 34,194 45,168
Cash in escrow 4,236 3,447
Investments in unconsolidated partnerships 12,533 6,164
Rents receivable, net of $1,710 and $1,374
allowance, respectively 2,808 2,567
Straight-line rents receivable, net of $910
allowance 4,861 4,392
Notes Receivable 3,563 6,795
Prepaid expenses 1,189 2,042
Deferred charges, net 9,946 10,360
Other assets 2,191 1,184
--------- ---------------------------------------
$407,306 $410,935
========= =======================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgage notes payable $199,691 $202,361
Accounts payable and accrued expenses 9,973 8,528
Dividends and distributions payable 4,191 3,744
Due to related parties 49 174
Deferred gain on sale of properties - 1,212
Interest rate swap payable 6,225 5,470
Other liabilities 2,606 2,998
--------- ---------------------------------------
Total liabilities 222,735 224,487
--------- ---------------------------------------
Minority interest in Operating Partnership 9,989 22,746
Minority interests in majority owned
partnerships 1,827 2,379
--------- ---------------------------------------
Total minority interests 11,816 25,125
--------- ---------------------------------------
Shareholders' equity:
Common shares 27 25
Additional paid-in capital 183,568 170,851
Accumulated other comprehensive income (8,161) (6,874)
Deficit (2,679) (2,679)
--------- ---------------------------------------
Total shareholders' equity 172,755 161,323
--------- ---------------------------------------
$407,306 $410,935
========= =======================================
15
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Selected Operating Ratios
- -------------------------------
Quarter ended June 6 months ended
30, June 30,
---------- ---------
2003 2002 2003 2002
--------- --------- -------- --------
Coverage Ratios 1
- -------------------------------
Interest Coverage Ratio
EBIDTA 2 $10,623 $9,982 $21,092 $21,935
Divided by Interest expense 3,453 3,334 6,747 7,466
--------- --------- -------- --------
3.08 x 2.99 x 3.13 x 2.94 x
Fixed Charge Coverage Ratio
EBIDTA $10,623 $9,982 $21,092 $21,935
Divided by ( Interest expense 3,453 3,334 6,747 7,466
+ Preferred
Dividends) 3 50 50 100 100
--------- --------- -------- --------
3.03 x 2.95 x 3.08 x 2.90 x
Debt Service Coverage Ratio
EBIDTA $10,623 $9,982 $21,092 $21,935
Divided by ( Interest expense 3,453 3,334 6,747 7,466
+ Principal
Amortization)4 1,185 1,001 2,410 2,169
--------- --------- -------- --------
2.29 x 2.30 x 2.30 x 2.28 x
Payout Ratios
- -------------------------------
FFO Payout Ratio
Dividends (Shares) & Distributions (O.P. Units)
paid - $0.14.5 per Share/O.P. Unit for
2003
and $0.13 for 2002. $4,141 $3,695 $8,267 $7,390
FFO 2 6,768 6,238 14,527 14,671
--------- --------- -------- --------
61% 59% 57% 50%
AFFO Payout Ratio
Dividends (Shares) &
Distributions (O.P. Units) $4,141 $8,267
AFFO 6,031 12,763
--------- --------
69% 65%
FAD Payout Ratio
Dividends (Shares) &
Distributions (O.P. Units) $4,141 $8,267
AFFO 4,846 10,353
--------- --------
85% 80%
Overhead Ratios
- -------------------------------
G&A/Real Estate Revenues
General and Administrative
expense $2,450 $2,802 $5,146 $5,127
Real Estate Revenues 18,090 17,207 36,381 36,425
--------- --------- -------- --------
14% 16% 14% 14%
---------
Leverage Ratios
- -------------------------------
Debt/Total Market
Capitalization 5
Debt $199,691 $211,348
Total Market Capitalization 463,227 445,211
--------- ---------
43% 47%
Debt + Preferred Equity
(Preferred O.P. Units) $201,903 $213,560
Total Market Capitalization 463,227 445,211
--------- ---------
44% 48%
----------
Notes:
1 Quarterly results for 2003 and 2002 are unaudited, although they reflect
all adjustments, which in the opinion of management, are necessary for a
fair presentation of operating results for the interim periods. The
coverage ratios include the Company's pro-rata share of EBIDTA, interest
expense and principal amortization related to the Company's joint venture
investments in unconsolidated partnerships.
2 EBIDTA and FFO for the quarter ended March 31, 2002 have been adjusted to
exclude non- recurring income of $3,945 representing lease termination
income received from predominantly one tenant during the period. Gross
property revenues already exclude these amounts. The adjustments are as
follows:
Quarter ended June 30,Six months ended June 30,
2002 2002
-------------------------------------------------
EBIDTA FFO EBIDTA FFO
Gross amounts $10,127 $6,383 $25,880 $18,616
Adjustment for material non-
recurring items (145) (145) (3,945) (3,945)
--------- --------- -------- --------
As adjusted and used above $9,982 $6,238 $21,935 $14,671
========= ========= ======== ========
3 Represents preferred distributions on Preferred Operating partnership
Units.
4 Includes the Company's pro-rata share of joint venture principal
amortization. $205 of the 2003 quarterly amortization is from the
self-liquidating amortization related to the Kroger/Safeway portfolio. On
the JV level, this consists of $34,450 of debt which self- amortizes over
seven years.
5 Including the Company's pro-rata share of joint venture debt, the Debt to
Total Market Capitalization increases to 48% and 49% as of June 30, 2003
and 2002, respectively.
16
QUARTERLY SUPPLEMENTAL DISCLOSURE
June 30, 2003
Debt Analysis - Consolidated Debt
(amounts in thousands)
Principal Variable
Balance at Interest Rate as of Maturity
Property Lender Notes June 30, Rate June 30, Date
2003 2003
---------------------------------------------------------------------------------------------------------------------------------
FIXED-RATE
DEBT
------------
Merrillville SunAmerica Life Insurance
Plaza Co. $13,554 6.46% 7/1/2007
Crescent Metropolitan Life Insurance
Plaza Co. 8,585 8.13% 11/1/2010
East End Metropolitan Life Insurance
Centre Co. 15,723 8.13% 11/1/2010
GHT Bank of America, N.A.
Apartments 10,869 7.55% 1/1/2011
Colony Bank of America, N.A.
Apartments 5,434 7.55% 1/1/2011
239 RBS Greenwich Capital
Greenwich
Avenue 16,000 5.19% 6/1/2013
---------- -------------
TOTAL/WEIGHTED AVERAGE - FIXED-RATE
DEBT 70,165 7.00%
---------- -------------
VARIABLE-
RATE DEBT
------------
Soundview Fleet National Bank, N.A. L + 175
Marketplace 8,666 3.07% 8/1/2003
Greenridge Metropolitan Life Insurance L + 200
Plaza Co. 5,927 3.31% 11/1/2003
Luzerne Metropolitan Life Insurance L + 200
Street Co.
Plaza 1,555 3.31% 11/1/2003
Berlin Washington Mutual Bank, L + 175
Shopping F.A.
Center 1,799 3.13% 4/1/2005
Bradford Washington Mutual Bank, L + 175
Towne F.A.
Center 7,355 3.13% 4/1/2005
Ledgewood Washington Mutual Bank, L + 175
Mall F.A. 30,281 3.13% 4/1/2005
New Louden Washington Mutual Bank, L + 175
Center F.A. 7,153 3.13% 4/1/2005
Route 6 Washington Mutual Bank, L + 175
Plaza F.A. 4,732 3.13% 4/1/2005
Village Sun America Life Insurance L + 173
Apartments Co. 9,322 3.02% 10/1/2005
Abington Fleet National Bank, N.A. L + 175
Towne
Center 1 3.07% 1/1/2007
Branch Fleet National Bank, N.A. L + 175
Shopping
Center 1 12,098 3.07% 1/1/2007
Methuen Fleet National Bank, N.A. L + 175
Shopping
Center 1 3.07% 1/1/2007
Walnut Hill Washington Mutual Bank, L + 185
Plaza F.A. 2 6,876 3.23% 1/1/2007
Bloomfield Washington Mutual Bank, L + 185
Town Square F.A. 2 13,506 3.23% 1/1/2007
Town Line Fleet National Bank, N.A. L + 175
Plaza 3 4,904 2.84% 3/15/2007
Gateway Fleet National Bank, N.A. L + 175
Shopping
Center 4 6,300 2.84% 5/1/2007
Village Fleet National Bank, N.A. L + 175
Commons
Shopping
Center 9,052 3.02% 6/1/2007
Elmwood ParkWashington Mutual Bank, L + 170
Shopping F.A.
Center 5 - - 11/22/2007
Marketplace Fleet National Bank, N.A. L + 150
of Absecon 6 - - 3/1/2008
---------- ------------------------
TOTAL/WEIGHTED AVERAGE - VARIABLE-RATE L + 174
DEBT 7 129,526 3.11%
---------- ------------------------
TOTAL/WEIGHTED AVERAGE - ALL DEBT $199,691 4.47%
========== ===========
- -----------------------------------------------------------------------------------------------------------------------------------
Notes:
------------
1 There is an additional $7,650 currently available under this facility which
the Company is required to fully draw down prior to December 2003. An
additional $3,000 (net of a $150 holdback) is available through December
2004 based upon additional lease-up at the collateral properties.
2 There is an additional $5,000 (less certain holdbacks totalling $600)
currently available under this facility which the Company is required to
fully draw down prior to December 21, 2003.
3 There is an additional $2,000 available under this facility which is also
periodically used for standby letters of credit.
4 There is an additional $3,000 available under this facility.
5 This is a revolving facility for up to $20,000 which bears interest at
LIBOR plus 170 basis points (3.30% all-in rate floor).
6 This is a revolving facility for up to $7,400 which bears interest at LIBOR
plus 150 basis points (175 basis points if the loan to collateral value is
> 50%). 7 The Company has hedged $86,910 of it's variable-rate debt with
five variable to fixed-rate swap agreements with Fleet Bank, N.A. as
follows:
Notional All-in Rate Maturity Date
principal
----------------------------------------------------------
$30,000 6.55% 4/1/2005
20,000 6.28%10/1/2006
15,708 6.17% 1/1/2007
12,151 5.86% 1/1/2007
9,051 6.22% 6/1/2007
---------------------------------------
$86,910 6.29%
=======================================
17
QUARTERLY SUPPLEMENTAL DISCLOSURE
June 30, 2003
Debt Analysis - Unconsolidated Debt (Joint Ventures)
Acadia Principal Acadia's Variable
Realty
Lender/ Trust Balance Prorata Interest Rate as of Maturity
at
FIXED-RATE Joint Venture Partner Ownership June 30, Share Rate June 30, Date
DEBT 2003 2003
-------------------------------------------------------------------- ------------------------------------------------------------
Crossroads Bank of New York/
Shopping
Center 1 49.0% $33,275 $16,305 7.16% 10/1/2007
Heyman-Greenburgh Associates LLC
and
RMC Development Company LLC
Brandywine UBS Warburg Real Estate
Town Center Investments, Inc./ 22.2% 30,000 6,667 4.69% 2/11/2008
Acadia Strategic Opportunity Fund
Kroger Cortlandt Deposit
Portfolio 2 Corporation/ 22.2% 14,850 2,475 6.62% 2/1/2009
Acadia Strategic Opportunity Fund
Safeway Cortlandt Deposit
Portfolio 2 Corporation/ 22.2% 14,678 2,446 6.51% 1/15/2009
Acadia Strategic Opportunity Fund
Brandywine UBS Warburg Real Estate
Town Center Investments, Inc./ 22.2% 21,570 4,793 7.01% 7/11/2012
Acadia Strategic Opportunity Fund
Market UBS Warburg Real Estate
Square Investments, Inc./
Shopping
Center 22.2% 16,360 3,636 7.32% 6/11/2012
Acadia Strategic Opportunity Fund
Amherst The Ohio National Life Insurance
Marketplace Company/
Acadia Strategic
Opportunity Fund 22.2% 4,981 1,107 8.20% 6/1/2022
Sheffield Canada Life Insurance
Crossing Company/
Acadia Strategic
Opportunity Fund 22.2% 7,393 1,643 8.00% 1/1/2023
------------------- -------------
TOTAL/WEIGHTED AVERAGE - FIXED-RATE
UNCONSOLIDATED DEBT 143,107 39,072 6.72%
------------------- -------------
VARIABLE-
RATE DEBT
------------
Granville Bank One, NA/
Center
Acadia Strategic L + 200
Opportunity Fund 22.2% 5,912 1,314 3.30% 10/5/2007
------------------- -----------
TOTAL/WEIGHTED AVERAGE - ALL UNCONSOLIDATED DEBT $149,019 $40,386 6.61%
=================== ===========
Summary - Consolidated and Unconsolidated Debt Notes
--------------------------------------------------------------------------------------------------------------------------------
Weighted % of Wholly-Owned
% of Outstanding Avg. Wholly- and Unconsolidated
Owned
Total Balance Int. Rate Only Combined Basis
------------------------------------------------------------------
Consolidated Debt
Fixed-Rate Debt 2 3 65% $157,075 6.61% 79% 82%
Variable-Rate Debt 2 3 17% 42,616 3.11% 21% 18%
---------- -------------------------------------------------------
Total Consolidated Debt 82% 199,691 5.86% 100% 100%
---------- ------------------------===============================
Unconsolidated Debt (Joint Ventures)
Fixed-Rate Debt 17% 39,072 6.72%
Variable-Rate Debt 1% 1,314 3.30%
---------- ------------------------
Total Unconsolidated Debt 18% 40,386 6.61%
---------- ------------------------
Total Debt 4 100% $240,077 5.99%
========== ========================
Notes:
------------
1 Although this is variable debt, Acadia has effectively fixed its pro-rata
share of debt through two swap transactions. $5,000 is fixed at 7.53% and
the remaining balance is fixed at 6.99%.
2 AmCap, ASOF's joint venture partner on this investment, is allocated 25% of
the debt and equity. As such, ASOF's pro-rata share of the above debt is
75% x 22.22%.
3 Fixed-rate debt includes $86,910 of notional principal fixed through swap
transactions. Conversely, variable-rate debt excludes this amount.
4 The above balances do not include FAS 141 adjustments totaling $5,666 as of
June 30, 2003.
18
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Future Debt Maturities
- ----------------------------------------
(in thousands) Weighted Average Interest
Rate of Maturing Debt
------------------------------------
Consolidated Debt
Scheduled
Year Amortization Maturities Total Total Debt Fixed-Rate Variable-Rate
Debt Debt
- --------------------------------------------------------------------------------------------------
2003 $1,759 $16,083 $17,842 3.18% n/a 3.18%
2004 3,494 - 3,494 n/a n/a n/a
2005 2,718 57,842 60,560 3.11% n/a 3.06%
2006 2,399 - 2,399 n/a n/a n/a
2007 1,322 60,947 62,269 3.77% 6.46% 3.07%
Thereafter 4,017 49,110 53,127 7.12% 7.12% n/a
----------------------------------
$15,709 $183,982 $199,691
==================================
Unconsolidated Debt (Joint Ventures) 1
2003 $246 $- $246 n/a n/a n/a
2004 1,599 - 1,599 n/a n/a n/a
2005 1,645 - 1,645 n/a n/a n/a
2006 1,692 - 1,692 n/a n/a n/a
2007 1,517 16,033 17,550 6.87% 7.16% 3.30%
Thereafter 5,185 12,469 17,654 5.98% 5.98% n/a
----------------------------------
$11,884 $28,502 $40,386
==================================
Capitalized interest related to the Company's development projects is as
follows:
(in thousands)
1st Quarter 2003 $187
2nd Quarter 2003 76
------------
Year-to-Date $263
============
1 The above amounts represent the Company's pro-rata share of joint venture
mortgage debt.
19
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Unencumbered Properties
- ---------------------------------------
Center Location GLA
- --------------------------------------------------------------
Blackman Plaza Wilkes-Barre,
PA 121,341
Hobson West Plaza Naperville, IL 99,038
Mad River Station Dayton, OH 154,474
Mark Plaza Edwardsville,
PA 214,036
Pacesetter Park Shopping Center Ramapo, New
York 96,252
Pittston Plaza Pittston, PA 79,494
Plaza 422 Lebanon, PA 154,791
--------
Total GLA of Unencumbered Properties 919,426
========
Total net operating income for the year ended December 31,
2002
associated with unencumbered
properties $4,940
========
20
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Acadia Strategic Opportunity Fund -
Overview
- -------------------------------------------
Item NotesDescription
- ---------------------------------------------------
Date formed September 2001
Properties owned
Ohio 1 Amherst Marketplace
1 Granville Centre
1 Sheffield Crossing
Delaware 1 Brandywine Town Center
1 Market Square Shopping Center
Various 2 25 Kroger/Safeway locations
Partnership structure
Equity 22.22% - Acadia
Contribution:
77.78% - Four institutional investors (current
significant
shareholders in Acadia as well)
Cash flow distribution:22.22% - Acadia
77.78% - Four institutional investors
Promote: 20% to Acadia once all partners (including Acadia) have
received 9% preferred return and return of equity
Remaining 80% is distributed to all the partners
(including Acadia).
Fees to Acadia Asset management fee equal to 1.5% of total committed
capital ($70 million which excludes Acadia's $20
million))
Property management fee equal to 4% of gross property
revenues
Market rate leasing fees
Construction/project management fees equal to the
lesser of 7.5% of hard costs or allocable costs of
Acadia
Mortgage Debt 3 $116 million as of June 30, 2003
95% ($110 million) fixed-rate and 5% floating ($6
million) at a total blended rate of 6.3%
as of June 30,
2003
1 See details of these properties including occupancy, tenants, expirations
and demographics in Section IV of this supplement
2 See enclosed map in this section for these locations
3 See details of this debt in Section II of this supplement
21
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
ASOF
Properties -
Detail
- --------------
---------------------------------------------------------------------------------------------------------
Annualized Base Rent
Gross Leasable Area Occupancy Annualized Base Rent per Occupied Square
Foot
-----------------------------------------------------------------------------------------------------------
Anchors Shops Total Anchors Shops Total Anchors Shops Total Anchors Shops Total
---------------------------------------------------------------------------------------------------------
Midwest
- --------------
Ohio
- --------------
Amherst
Marketplace 76,737 3,200 79,937 100.00%100.00%100.00% $765,711 $33,396 $799,107 $9.98 $10.44 $10.00
Granville
Centre 90,047 41,222 131,269 100.00% 73.58% 91.70% 991,612 307,678 1,299,290 11.01 10.14 10.79
Sheffield
Crossing 59,159 53,475 112,634 100.00% 88.11% 94.36% 620,578 483,032 1,103,610 10.49 10.25 10.38
---------------------------------------------------------------------------------------------------------
Total -
Midwest
Region 225,943 97,897 323,840 100.00% 82.38% 94.67% 2,377,901 824,106 3,202,007 10.52 10.22 10.44
---------------------------------------------------------------------------------------------------------
Mid-Atlantic
- --------------
Delaware
- --------------
Brandywine
Town Center 1 614,289 - 614,289 99.33% - 99.33% 8,467,744 - 8,467,744 13.88 - 13.88
Market Square
Shopping
Center 31,375 56,385 87,760 100.00% 91.49% 94.53% 365,712 1,169,641 1,535,353 11.66 22.67 18.51
---------------------------------------------------------------------------------------------------------
Total - Mid-
Atlantic 645,664 56,385 702,049 99.36% 91.49% 98.73% 8,833,456 1,169,641 10,003,097 13.77 22.67 14.43
---------------------------------------------------------------------------------------------------------
Various
- --------------
Kroger/Safeway
Portfolio (25
Properties) 21,018,100 - 1,018,100 100.00% - 100.00% 9,965,897 - 9,965,897 9.79 - 9.79
---------------------------------------------------------------------------------------------------------
Total - Joint
Venture
Properties 1,889,707 154,282 2,043,989 99.78% 85.71% 98.72%$21,177,254 $1,993,747 $23,171,001 $11.23 $15.08 $11.48
=========================================================================================================
General note - The above occupancy and rent amounts do not include space
which is currently leased, but for which rent payment has not yet commenced.
Tenants who comprise greater than 10% of a center's GLA are considered anchor
tenants for the purposes of the above table.
1 Does not include approximately 240,000 square feet of new space in Phase
II, which will be paid for by the JV on an "earnout basis" only if, and
when it is leased.
2 ASOF has a 75% economic interest in this portfolio of 25 Kroger/Safeway
22
Kroger/Safeway Portfolio
[GRAPHIC]
Kroger locations Safeway locations
Cary, NC Atlanta, TX
Cincinnati, OH Batesville, AR
Conroe, TX Benton, AR
Great Bend, KS Carthage, TX
Hanrahan, LA Little Rock, AR
Indianapolis, IN Longview, WA
Irving, TX Mustang, OK
Pratt, KS Roswell, NM
Roanoke, VA Ruidoso, NM
Shreveport, LA San Ramon, CA
Wichita, KS (2 stores) Springerville, AZ
Tucson, AZ
Tulsa, OK
General note: As of all of these leases are triple-net, Acadia has no property
management responsibilites for these locations.
23
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
ACADIA STRATEGIC OPPORTUNITY FUND
Top 10 Tenants - Ranked by Annualized Base Rent
- -----------------------------------------------------------------------------------------------------
Percentage of Total
Represented by
Tenant
-------------------
Number of
Stores in Total Annualized Total Annualized
Base Base
Ranking Tenant JV GLA Rent 1 Portfolio Rent 2
Portfolio GLA 2
- ------------------------------------------------------------------------------------------------------------------------
1 Safeway 3 13 467,300 $3,743,629 22.9% 18.1%
2 Kroger 4 12 550,800 3,730,794 26.9% 18.0%
3 Lowe's 1 140,000 1,750,000 6.8% 8.5%
4 Giant Eagle 2 125,396 1,251,154 6.1% 6.1%
5 Bed, Bath & Beyond 1 45,114 868,426 2.2% 4.2%
6 Transunion Settlement 5 1 39,714 858,930 1.9% 4.2%
7 Regal Cinema 1 65,641 821,825 3.2% 4.0%
8 Target 1 138,000 800,000 6.8% 3.9%
9 Dick's Sporting Goods 1 50,000 725,156 2.4% 3.5%
10 Big Bear 1 55,096 589,527 2.7% 2.9%
---------------------------------------------------
Total 34 1,677,061 $15,139,441 82.0% 73.2%
===================================================
1 Base rents do not include percentage rents (except where noted), additional
rents for property expense reimbursements, and contractual rent escalations
due after June 30, 2003.
2 GLA does not include approximately 240,000 square feet of new space in
Phase II of the Brandywine Town Center, which will be paid for by the JV on
an "earnout basis" only if, and when it is leased. Base rents for the
Kroger/Safeway portfolio include 75% of the total rents. The remaining 25%
is allocated to AmCap, the joint venture partner in this portfolio.
3 Safeway has sub-leased 7 of these locations to supermarket tenants, 1
location to a non-supermarket tenant and ceased operations at one other
location. Safeway is obligated to pay rent through the full term of all
these leases which expire in 2009.
4 Kroger has sub-leased 4 of these locations to supermarket tenants, 2
locations to a non-supermarket tenant and ceased operations at one other
location. Kroger is obligated to pay rent through the full term of all
these leases which expire in 2009.
5 Subsidiary of Transunion
24
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Retail
Properties -
Summary
Listing
-------------
Property Totals
-----------------------
Year Grocery Other Anchor Annualized Annualized
Anchor
Constructed(C) Occupancy Current Current Lease and Base Base
Lease and
Shopping Center Location Acquired(A) GLA Option Option Expiraton Rent Rent psf
% Expiraton
- -------------------------------------------------------------------------------------------------------------------
NEW YORK REGION
- ------------------
New York
Soundview Port King Kullen Clearview Cinema
Marketplace Washington 1998 (A) 182,660 92% 2007/2022 2010/2030 $2,609,713 $15.56
Village Commons Smithtown Daffy's 2008/2028
Shopping Center 1998 (A) 87,227 96% 1,975,730 23.49
Walgreens 2021/--
Branch Shopping Smithtown Waldbaum's (A&P) 2013/2028
Plaza 1998 (A) 125,640 92% 2,013,829 17.43
New Loudon Center Latham Price Marshalls 2004/2009
Chopper
1982 (A) 253,003 70% 2015/2035 1,550,544 8.79
Pacesetter Park Pomona Stop & Shop (Ahold) 2020/2040
Shopping Center 1999 (A) 96,252 84% 866,889 10.71
New Jersey
Elmwood Park Elmwood Park Pathmark Walgreen's 2022/2062
Shopping Center 1998 (A) 149,038 96% 2017/2052 3,127,059 21.79
Marketplace of Absecon Acme Eckerd Drug
Absecon 1998 (A) 105,251 93% 2015/2055 2020/2040 1,479,421 15.19
Berlin Shopping Berlin Acme Kmart 2004/2029
Center 1994 (A) 188,717 80% 2005/2015 800,374 5.31
Ledgewood Mall Ledgewood 1983 (A) 513,704 89% Wal-mart 2019/2049 4,197,748 9.21
Macy's 2005/2025
The Sports' Authority 2007/2037
Circuit City
2020/2040
Marshall's 2007/2027
NEW ENGLAND REGION
- ------------------
Connecticut
Town Line Plaza Rocky Hill GU Markets Wal-mart (not owned)
1998 (A) 206,178 100% 2017/2052 1,343,848 12.34
239 Greenwich Greenwich Restoration Hardware
Avenue 1998 (A) 16,834 100% 2015/2025 1,254,282 74.51
Chico's Fashion 2010/2020
Massachusetts
Methuen Shopping Methuen DeMoulas Wal-mart 2011/2051
Center Market
1998 (A) 130,238 100% 2005/2015 828,772 6.36
Crescent Plaza Brockton Shaw's Home Depot 2021/2056
1984 (A) 218,277 99% 2012/2042 1,660,527 7.70
Rhode Island
Walnut Hill Plaza Woonsocket Shaw's Sears 2003/2033
1998 (A) 284,464 99% 2013/2043 2,139,128 7.58
Vermont
The Gateway Burlington Shaw's
Shopping Center 1999 (A) 100,574 83% 2024/2053 1,511,686 18.21
25
MIDWEST REGION
- ------------------
Illinois
Hobson West Plaza Naperville 1998 (A) 99,038 99% Eagle Food Centers 2007/2032 1,128,453 11.53
Indiana
Merrillville Plaza Merrillville 1998 (A) 235,591 100% TJ Maxx 2004/2014 2,554,212 10.84
JC Penney 2008/2018
OfficeMax 2008/2028
Michigan
Bloomfield Town Bloomfield Costco (notTJ Maxx2009/2014
Square Hills 1998 (A) 216,489 84% owned) 1,721,770 9.43
Marshall's 2011/2026
Home Goods 2010/2025
Ohio
Mad River Station Dayton Babies "R" Us
1999 (A) 154,474 83% 2005/2020 1,551,857 12.07
Office Depot
2005/2010
MID-ATLANTIC
REGION
- ------------------
Pennsylvania
Abington Towne Abington TJ Maxx 2010/2020
Center 1998 (A) 216,365 97% 779,745 14.62
Target (not owned)
Blackman Plaza Wilkes-Barre 1968 (C) 121,341 92% Kmart 2004/2049 261,504 2.34
Bradford Towne Towanda P&C Foods Kmart 2019/2069
Centre (Penn
Traffic)
1993 (C) 256,939 89% 2014/2024 1,417,821 6.19
East End Center Wilkes-Barre 1986 (C) 308,283 54% Price Chopper 2008/2028 1,215,320 7.27
Greenridge Plaza Scranton 1986 (C) 198,393 53% Giant Food (Ahold) 2021/2051 641,089 6.10
Luzerne Street Scranton Price Eckerd Drug
Shopping Center Chopper 2004/2019
1983 (A) 57,988 94% 2004/2024 272,150 4.98
Mark Plaza Edwardsville Redner's Kmart 2004/2054
Markets
1968 (C) 214,036 91% 2018/2028 946,877 4.85
Pittston Plaza Pittston Redner's Eckerd Drugs
Market 2006/2016
1994 (C) 79,494 98% 2018/2028 599,728 7.69
Plaza 422 Lebanon 1972 (C) 154,791 87% Home Depot 2021/2056 195,480 3.85
Route 6 Mall Honesdale Weis Kmart 2020/2070
Markets
(not
1994 (C) 175,507 99% owned) 1,061,248 6.10
---------- -----------------------
5,146,786 $41,706,804 $10.00
========== =======================
26
JOINT VENTURE PROPERTIES
- -------------------------------
(excludes jont venture owned Kroger/Safeway
Portfolio)
NEW YORK REGION
- ------------------
New York
Crossroads White Plains Waldbaum's Kmart 2012/2037
Shopping Center (A&P)
1998 310,919 99% 2007/2032 $5,466,478 $17.80
(49% JV interest) B. Dalton 2012/2022
Pay Half 2018/--
Modell's 2009/2019
MID-ATLANTIC
REGION
- ------------------
Delaware
Brandywine Town Wilmington
Center 1 2003 (A) 614,289 99% 8,467,744 13.88
(22% JV interest)
Market Square Wilmington Trader TJ Maxx 2006/2016
Shopping Center Joe's
(gourmet
2003 (A) 87,760 95% grocery) 1,535,353 18.51
(22% JV interest) 2013/2028
MIDWEST REGION
- ------------------
Ohio
Amherst Cleveland Giant Eagle
Marketplace 2002 (A) 79,937 100% 2021/2041 799,107 10.00
(22% JV interest)
Granville Centre Columbus Big Bear California Fitness
(Penn 2017/2027
Traffic)
2002 (A) 131,269 92% 2020/2050 1,299,290 10.79
(22% JV interest)
Sheffield CrossingCleveland Giant Eagle
2002 (A) 112,634 94% 2022/2042 1,103,610 10.38
---------- -----------------------
(22% JV interest)
1,336,808 $18,671,582 $14.29
========== =======================
1 Does not include 240,000 square feet of new space in Phase II of the
Brandywine Town Center, which will be paid for by the Company on an
"earnout basis" only if, and when it is leased.
27
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Retail
Properties
by Region
- ----------------
(excludes jont venture owned Kroger/Safeway
Portfolio)
----------------------------------------------------------------------------------------------------------
Annualized Base Rent
Gross Leasable Area Occupancy Annualized Base Rent per Occupied Square
Foot
----------------------------------------------------------------------------------------------------------
Wholly-Owned
Properties
- ----------------
Anchors 1 Shops Total AnchorsShops Total Anchors Shops Total Anchors Shops Totals
----------------------------------------------------------------------------------------------------------
New York Region 1,032,506 668,986 1,701,492 88.01%84.19%86.51% $9,254,202 $9,367,105 $18,621,307 $10.18 $16.63 $12.65
New England 640,880 315,685 956,565 100.00%92.85%97.64% 5,891,556 2,846,687 8,738,243 10.84 9.71 10.44
Midwest 305,549 400,043 705,592 100.00%84.78%91.37% 2,349,833 4,606,459 6,956,292 7.69 13.58 10.79
Mid-Atlantic 1,281,243 501,894 1,783,137 83.65%77.44%81.90% 4,226,210 3,164,752 7,390,962 5.09 8.14 6.06
----------------------------------------------------------------------------------------------------------
Total Wholly-
Owned
Properties 3,260,178 1,886,608 5,146,786 89.78%83.97%87.65%$21,721,801 $19,985,003 $41,706,804 $8.39 $12.62 $10.00
----------------------------------------------------------------------------------------------------------
Joint Venture
Properties
- ----------------
Midwest 2 225,943 97,897 323,840 100.00%82.38%94.67% $2,377,901 $824,106 $3,202,007 $10.52 $10.22 $10.44
Mid-Atlantic 2,3 645,664 56,385 702,049 99.36%91.49%98.73% 8,833,456 1,169,641 10,003,097 13.77 22.67 14.43
New York Region
4 191,363 119,556 310,919 100.00%96.76%98.75% 1,939,927 3,526,551 5,466,478 10.14 30.48 17.80
----------------------------------------------------------------------------------------------------------
Total Joint
Venture
Properties 1,062,970 273,838 1,336,808 99.61%90.53%97.75%$13,151,284 $5,520,298 $18,671,582 $12.42 $22.27 $14.29
==========================================================================================================
General note - The above occupancy and rent amounts do not include space
which is currently leased, but for which rent payment has not yet commenced.
Tenants who comprise greater than 10% of a center's GLA are considered anchor
tenants for the purposes of the above table.
1 Anchor GLA includes a total of 254,916 square feet which is not owned by
the Company. This square footage has been excluded for calculating
annualized base rent per square foot.
2 The Company has a 22% interest in Acadia Strategic Opportunity Fund which
owns these properties.
3 Does not include 240,000 square feet of new space in Phase II of the
Brandywine Town Center, which will be paid for by the Company on an
"earnout basis" only if, and when it is leased.
4 The Company has a 49% interest in two partnerships which, together, own the
Crossroads Shopping Center.
28
QUARTERLY SUPPLEMENTAL
DISCLOSURE
JUNE 30, 2003
Retail Properties by State -
Summary
- -----------------------------
(excludes jont venture owned Kroger/Safeway
Portfolio)
---------------------------------------------------------------------------------------------------------------------
Annualized Base Rent
Gross Leasable Area Occupancy Annualized Base Rent per Occupied Square
Foot
-------------------------------------------------------------------------------------------
Wholly-Owned Ownership Percent Number of
Properties of
- -------------
base properties Anchors 2 Shops Total Anchors Shops Total Anchors Shops Total Anchors Shops Totals
% rent 1
-----------------------------------------------------------------------------------------------------------------------
NEW YORK
REGION
New Jersey 100% 20.3% 4 590,959 365,751 956,710 92.00% 82.98% 88.55% $5,380,740 $4,223,862 $9,604,602 $9.90 $13.92 $11.34
New York 100% 19.1% 5 441,547 303,235 744,782 82.67% 85.66% 83.88% 3,873,462 5,143,243 9,016,705 10.61 19.80 14.43
NEW ENGLAND
REGION
Connecticut 100% 5.5% 2 178,799 44,213 223,012 100.00%100.00%100.00% 1,984,282 613,848 2,598,130 24.35 13.88 20.67
Massachusetts 100% 5.3% 2 276,989 71,526 348,515 100.00% 96.33% 99.25% 1,855,550 633,749 2,489,299 6.70 9.20 7.20
Rhode Island 100% 4.5% 1 113,092 171,372 284,464 100.00% 98.59% 99.15% 755,724 1,383,404 2,139,128 6.68 8.19 7.58
Vermont 100% 3.2% 1 72,000 28,574 100,574 100.00% 38.59% 82.55% 1,296,000 215,686 1,511,686 18.00 19.56 18.21
MIDWEST
REGION
Illinois 100% 2.4% 1 42,037 57,001 99,038 100.00% 97.88% 98.78% 170,000 958,453 1,128,453 4.04 17.18 11.53
Indiana 100% 5.4% 1 101,357 134,234 235,591 100.00%100.00%100.00% 880,417 1,673,795 2,554,212 8.69 12.47 10.84
Michigan 100% 3.6% 1 103,970 112,519 216,489 100.00% 69.95% 84.38% 767,849 953,921 1,721,770 7.39 12.12 9.43
Ohio 100% 3.3% 1 58,185 96,289 154,474 100.00% 73.13% 83.25% 531,567 1,020,290 1,551,857 9.14 14.49 12.07
MID-
ATLANTIC
REGION
Pennsylvania 100% 15.6% 10 1,281,243 501,894 1,783,137 83.65% 77.44% 81.90% 4,226,210 3,164,752 7,390,962 5.09 8.14 6.06
-------------------------------------------------------------------------------------------------------------
Total
- Wholly-Owned
Properties 88.1% 29 3,260,178 1,886,608 5,146,786 89.78% 83.97% 87.65% 21,721,801 19,985,003 41,706,804 8.39 12.62 10.00
-------------------------------------------------------------------------------------------------------------
Joint Venture
Properties 3
- -------------
Ohio 4 22% 1.5% 3 225,943 97,897 323,840 100.00% 82.38% 94.67% $2,377,901 $824,106 $3,202,007 $10.52 $10.22 $10.44
Delaware 4,5 22% 4.7% 2 645,664 56,385 702,049 99.36% 91.49% 98.73% 8,833,456 1,169,641 10,003,097 13.77 22.67 14.43
New York 6 49% 5.7% 1 191,363 119,556 310,919 100.00% 96.76% 98.75% 1,939,927 3,526,551 5,466,478 10.14 30.48 17.80
-----------
--------------------------------------------------------------------------------------------------
Total Joint
Venture
Properties 11.9% 6 1,062,970 273,838 1,336,808 99.61% 90.53% 97.75%$13,151,284 $5,520,298 $18,671,582 $12.42 $22.27 $14.29
-----------------======================================================================================================
100.0% 35
=================
General note - The above occupancy and rent amounts do not include space
which is currently leased, but for which rent payment has not yet commenced.
Tenants who comprise greater than 10% of a center's GLA are considered anchor
tenants for the purposes of the above table.
1 The Company's pro-rata share of base rent from joint venture properties has
been included for the purpose of calculating percentage of base rent by
state.
2 Anchor GLA includes a total of 254,916 square feet which is not owned by
the Company. This square footage has been excluded for calculating
annualized base rent per square foot.
3 Does not include approximately 1 million square feet relating to a
portfolio of 25 supermarket triple-net leases acquired by ASOF in January
of 2003.
4 The Company has a 22% interest in Acadia Strategic Opportunity Fund which
owns these properties.
5 Does not include 240,000 square feet of new space in Phase II of the
Brandywine Town Center, which will be paid for by the Company on an
"earnout basis" only if, and when it is leased.
6 The Company has a 49% interest in two partnerships which, together, own the
Crossroads Shopping Center.
29
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Retail
Properties -
Detail
- --------------
------------------------------------------------------------------------------------------------------------
Annualized Base Rent
Gross Leasable Area Occupancy Annualized Base Rent per Occupied Square
Foot
--------------------------------------------------------------------------------------------------------------
Anchors Shops Total Anchors Shops Total Anchors Shops Total Anchors Shops Total
------------------------------------------------------------------------------------------------------------
WHOLLY-OWNED PROPERTIES:
New York
Region
- --------------
New York
- --------------
Soundview
Marketplace 73,500 109,160 182,660 100.00% 86.29% 91.81% $1,158,850 $1,450,863 $2,609,713 $15.77 $15.40 $15.56
Village
Commons
Shopping
Center 25,192 62,035 87,227 100.00% 94.97% 96.42% 428,213 1,547,517 1,975,730 17.00 26.27 23.49
Branch Plaza 63,000 62,640 125,640 100.00% 83.91% 91.98% 837,240 1,176,589 2,013,829 13.29 22.39 17.43
New Loudon
Center 227,803 25,200 253,003 66.40%100.00% 69.75% 1,125,174 425,370 1,550,544 7.44 16.88 8.79
Pacesetter
Park Shopping
Center 52,052 44,200 96,252 100.00% 65.33% 84.08% 323,985 542,904 866,889 6.22 18.80 10.71
------------------------------------------------------------------------------------------------------------
Total - New
York 441,547 303,235 744,782 82.67% 85.66% 83.88% 3,873,462 5,143,243 9,016,705 10.61 19.80 14.43
------------------------------------------------------------------------------------------------------------
New Jersey
- --------------
Elmwood Park
Shopping
Center 62,610 86,428 149,038 100.00% 93.63% 96.31% 1,390,460 1,736,599 3,127,059 22.21 21.46 21.79
Marketplace of
Absecon 58,031 47,220 105,251 100.00% 83.33% 92.52% 927,574 551,847 1,479,421 15.98 14.02 15.19
Berlin
Shopping
Center 127,850 60,867 188,717 100.00% 37.42% 79.82% 619,400 180,974 800,374 4.84 7.95 5.31
Ledgewood Mall 342,468 171,236 513,704 86.20% 93.70% 88.70% 2,443,306 1,754,442 4,197,748 8.28 10.93 9.21
------------------------------------------------------------------------------------------------------------
Total - New
Jersey 590,959 365,751 956,710 92.00% 82.98% 88.55% 5,380,740 4,223,862 9,604,602 9.90 13.92 11.34
------------------------------------------------------------------------------------------------------------
Total - New
York Region 1,032,506 668,986 1,701,492 88.01% 84.19% 86.51% 9,254,202 9,367,105 18,621,307 10.18 16.63 12.65
------------------------------------------------------------------------------------------------------------
New England
- --------------
Connecticut
- --------------
Town Line
Plaza 1 161,965 44,213 206,178 100.00%100.00%100.00% 730,000 613,848 1,343,848 11.29 13.88 12.34
239 Greenwich
Avenue 2 16,834 - 16,834 100.00% - 100.00% 1,254,282 - 1,254,282 74.51 - 74.51
------------------------------------------------------------------------------------------------------------
Total -
Connecticut 178,799 44,213 223,012 100.00%100.00%100.00% 1,984,282 613,848 2,598,130 24.35 13.88 20.67
------------------------------------------------------------------------------------------------------------
Massachusetts
- --------------
Methuen
Shopping
Center 120,004 10,234 130,238 100.00%100.00%100.00% 736,464 92,308 828,772 6.14 9.02 6.36
Crescent Plaza 156,985 61,292 218,277 100.00% 95.72% 98.80% 1,119,086 541,441 1,660,527 7.13 9.23 7.70
------------------------------------------------------------------------------------------------------------
Total -
Massachusetts 276,989 71,526 348,515 100.00% 96.33% 99.25% 1,855,550 633,749 2,489,299 6.70 9.20 7.20
------------------------------------------------------------------------------------------------------------
Rhode Island
- --------------
Walnut Hill
Plaza 113,092 171,372 284,464 100.00% 98.59% 99.15% 755,724 1,383,404 2,139,128 6.68 8.19 7.58
------------------------------------------------------------------------------------------------------------
Vermont
- --------------
The Gateway
Shopping
Center 3 72,000 28,574 100,574 100.00% 38.59% 82.55% 1,296,000 215,686 1,511,686 18.00 19.56 18.21
------------------------------------------------------------------------------------------------------------
Total - New
England
Region 640,880 315,685 956,565 100.00% 92.85% 97.64% 5,891,556 2,846,687 8,738,243 10.84 9.71 10.44
------------------------------------------------------------------------------------------------------------
General note - The above occupancy and rent amounts do not include space
which is currently leased, but for which rent payment has not yet commenced.
Tenants who comprise greater than 10% of a center's GLA are considered anchor
tenants for the purposes of the above table.
1 Anchor GLA includes a 97,300 square foot Wal-Mart store which is not owned
by the Company. This square footage has been excluded for calculating
annualized base rent per square foot.
2 239 Greenwich Avenue contains 16,834 square feet of retail GLA and 21
residential units encompassing 14,434 square feet. Residential activities
are not included above.
3 The newly built 72,000 square foot Shaw's supermarket opened during the 2nd
quarter 2003 at this redevelopment project. The balance of the newly
constructed small shop space is in its initial lease-up phase.
30
WHOLLY-OWNED PROPERTIES (continued):
Midwest
- --------------
Illinois
- --------------
Hobson West
Plaza 42,037 57,001 99,038 100.00% 97.88% 98.78% $170,000 $958,453 $1,128,453 $4.04 $17.18 $11.53
Indiana
- --------------
Merrillville
Plaza 101,357 134,234 235,591 100.00%100.00%100.00% 880,417 1,673,795 2,554,212 8.69 12.47 10.84
Michigan
- --------------
Bloomfield
Towne Square 103,970 112,519 216,489 100.00% 69.95% 84.38% 767,849 953,921 1,721,770 7.39 12.12 9.43
Ohio
- --------------
Mad River
Station 1 58,185 96,289 154,474 100.00% 73.13% 83.25% 531,567 1,020,290 1,551,857 9.14 14.49 12.07
------------------------------------------------------------------------------------------------------------
Total -
Midwest
Region 305,549 400,043 705,592 100.00% 84.78% 91.37% 2,349,833 4,606,459 6,956,292 7.69 13.58 10.79
------------------------------------------------------------------------------------------------------------
Mid-Atlantic
- --------------
Pennsylvania
- --------------
Abington Towne
Center 2 184,616 31,749 216,365 100.00% 82.93% 97.50% 256,500 523,245 779,745 9.50 19.87 14.62
Blackman Plaza 104,956 16,385 121,341 100.00% 42.72% 92.27% 204,664 56,840 261,504 1.95 8.12 2.34
Bradford Towne
Centre 146,499 110,440 256,939 100.00% 74.90% 89.21% 887,469 530,352 1,417,821 6.06 6.41 6.19
East End
Center 176,200 132,083 308,283 28.38% 88.65% 54.20% 357,500 857,820 1,215,320 7.15 7.33 7.27
Greenridge
Plaza 145,420 52,973 198,393 42.70% 81.07% 52.95% 279,405 361,684 641,089 4.50 8.42 6.10
Luzerne Street
Shopping
Center 3 54,618 3,370 57,988 100.00% - 94.19% 272,150 - 272,150 4.98 - 4.98
Mark Plaza 157,595 56,441 214,036 100.00% 67.02% 91.30% 652,095 294,782 946,877 4.14 7.79 4.85
Pittston Plaza 67,568 11,926 79,494 100.00% 87.39% 98.11% 496,446 103,282 599,728 7.35 9.91 7.69
Plaza 422 124,113 30,678 154,791 100.00% 32.60% 86.64% 132,030 63,450 195,480 3.24 6.34 3.85
Route 6 Plaza 119,658 55,849 175,507 100.00% 97.27% 99.13% 687,951 373,297 1,061,248 5.75 6.87 6.10
------------------------------------------------------------------------------------------------------------
Total -
Pennsylvania 1,281,243 501,894 1,783,137 83.65% 77.44% 81.90% 4,226,210 3,164,752 7,390,962 5.09 8.14 6.06
------------------------------------------------------------------------------------------------------------
Total - Mid-
Atlantic
Region 1,281,243 501,894 1,783,137 83.65% 77.44% 81.90% 4,226,210 3,164,752 7,390,962 5.09 8.14 6.06
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
TOTAL WHOLLY-
OWNED
PROPERTIES 3,260,178 1,886,608 5,146,786 89.78% 83.97% 87.65%$21,721,801 $19,985,003 $41,706,804 $8.39 $12.62 $10.00
------------------------------------------------------------------------------------------------------------
General note - The above occupancy and rent amounts do not include space
which is currently leased, but for which rent payment has not yet commenced.
Tenants who comprise greater than 10% of a center's GLA are considered anchor
tenants for the purposes of the above table.
1 The GLA for this property includes 27,702 square feet of office space.
2 Anchor GLA includes a 157,616 square foot Target store which is not owned
by the Company. This square footage has been excluded for calculating
annualized base rent per square foot.
3 The Price Chopper supermarket which leases 40,618 square feet is not
operating in the space, but remains obligated under the lease and continues
to pay rent.
31
JOINT VENTURE
PROPERTIES: 1
Midwest
- --------------
Ohio
- --------------
Amherst
Marketplace 2 76,737 3,200 79,937 100.00%100.00%100.00% $765,711 $33,396 $799,107 $9.98 $10.44 $10.00
Granville
Centre 2 90,047 41,222 131,269 100.00% 73.58% 91.70% 991,612 307,678 1,299,290 11.01 10.14 10.79
Sheffield
Crossing 2 59,159 53,475 112,634 100.00% 88.11% 94.36% 620,578 483,032 1,103,610 10.49 10.25 10.38
------------------------------------------------------------------------------------------------------------
Total -
Midwest
Region 225,943 97,897 323,840 100.00% 82.38% 94.67% 2,377,901 824,106 3,202,007 10.52 10.22 10.44
------------------------------------------------------------------------------------------------------------
Mid-Atlantic
- --------------
Delaware
- --------------
Brandywine
Town Center
2,3 614,289 - 614,289 99.33% - 99.33% 8,467,744 - 8,467,744 13.88 - 13.88
Market Square
Shopping
Center 2 31,375 56,385 87,760 100.00% 91.49% 94.53% 365,712 1,169,641 1,535,353 11.66 22.67 18.51
------------------------------------------------------------------------------------------------------------
Total - Mid-
Atlantic 645,664 56,385 702,049 99.36% 91.49% 98.73% 8,833,456 1,169,641 10,003,097 13.77 22.67 14.43
------------------------------------------------------------------------------------------------------------
New York
Region
- --------------
New York
- --------------
Crossroads
Shopping
Center 4 191,363 119,556 310,919 100.00% 96.76% 98.75% 1,939,927 3,526,551 5,466,478 10.14 30.48 17.80
------------------------------------------------------------------------------------------------------------
Total - Joint
Venture
Properties 1,062,970 273,838 1,336,808 99.61% 90.53% 97.75%$13,151,284 $5,520,298 $18,671,582 $12.42 $22.27 $14.29
============================================================================================================
General note - The above occupancy and rent amounts do not include space
which is currently leased, but for which rent payment has not yet commenced.
Tenants who comprise greater than 10% of a center's GLA are considered anchor
tenants for the purposes of the above table.
1 In January of 2003, the Acadia Strategic Opportunity Fund ("ASOF") acquired
approximately 2 million additional square feet in two separate
transactions. Approximately 1 million square feet relates to a portfolio of
25 supermarket triple-net leases which is not reflected above. See section
III of this supplement for additonal detail on this portfolio.
2 The Company has a 22% interest in ASOF which owns the property.
3 Does not include approximately 240,000 square feet of new space in Phase
II, which will be paid for by the JV on an "earnout basis" only if, and
when it is leased.
4 The Company has a 49% interest in two partnerships which, together, own the
Crossroads Shopping Center.
32
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
--------------------- ---------------------
Six months ended Three months ended Three months ended
Leasing Production Notes: June 30, 2003 June 30, 2003 March 31, 2003 4
New leases 1
Number of new leases commencing 22 7 15
GLA 71,141 33,745 37,396
New base rent $13.10 $8.82 $16.97
Previous base rent (and percentage rent) $11.13 $7.07 $14.79
Percentage growth in base rent 17.8% 24.8% 14.7%
Average cost per square foot $3.63 $4.20 $3.12
Renewal leases
Number of renewal leases commencing 18 11 7
GLA 57,982 40,456 17,526
Renewal percentage 2 54% 76% 32%
New base rent $17.26 $17.01 $17.83
Expiring base rent (and percentage rent) $16.20 $15.76 $17.20
Percentage growth in base rent 6.6% 7.9% 3.7%
Average cost per square foot $0.00 $0.00 $0.00
Total new and renewal Leases
Number of renewal leases commencing 40 18 22
GLA 129,123 74,201 54,922
New base rent $14.97 $13.29 $17.24
Expiring base rent (and percentage rent) $13.40 $11.81 $15.56
Percentage growth in base rent 3 11.7% 12.5% 10.8%
Average cost per square foot $2.00 $1.91 $2.12
--------------------- ---------------------
1 Does not include leased square footage and costs related to first
generation space and the Company's major redevelopment projects.
2 1st Quarter 2003 renenwal percentage was adversely impacted by the closing
of a small business which operated at three locations in the Company's
portfolio totaling 25,000 square feet. Adjusting for this impac, the
renewal percentage 1st Quarter was 78% and for the six months 77%.
3 Rent is presented on a cash basis. Rents have not been averaged over terms.
Previous/expiring rent is that as of time of expiration and includes any
percentage rent paid as well. New rent is that which is initially paid at
commencement.
4 Restated from 1st Quarter 2003 Supplement
33
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Top Tenants
- Ranked
by
Annualized
Base Rent
-----------
(Combined basis - Includes pro-rata share of GLA and rent for JV properties)
Wholly-Owned Acadia Strategic Crossroads Percentage of Total
Opportunity Fund Shopping Center
Combined Represented by
100% 22% 49% Retail Tenant
---------------------------------------------------------------------------------------------------
Average
Number of Gross
Retail stores in Total Annualized Total Annualized Total Annualized Total Annualized Total Annual- Average Occupancy
Base Base Base Base ized Base
Ranking Tenant combined GLA Rent 1 GLA Rent 1 GLA Rent 1 GLA Rent 1 Portfolio Rent 2 Sales Cost 3
portfolio GLA 2 (per sq.
ft.)
- ------------------------------------------------------------------------------------------------------------------------------------
1 Shaw's 3 174,617 $2,310,685 - $- - $- 174,617 $2,310,685 3.0% 4.7% $474 * 2.6%
2 Kmart 6 520,221 1,870,484 49,355 277,463 569,576 2,147,947 9.9% 4.4% 195 3.2%
3 T.J. Maxx 9 238,061 1,802,571 6,972 81,269 - - 245,033 1,883,840 4.3% 3.8% 225 * 5.1%
4 Wal-Mart 2 210,114 1,515,409 - - - - 210,114 1,515,409 3.7% 3.1% 329 * 3.3%
Price Chopper
5 4 3 168,068 1,295,727 - - - - 168,068 1,295,727 2.9% 2.6% - -
6 Eckerd Drug 5 8 89,620 1,054,296 - - - - 89,620 1,054,296 1.6% 2.2% 428 * 4.0%
A&P/ *
7 Waldbaum's 2 64,665 730,000 - - 18,722 246,960 83,387 976,960 1.4% 2.0% 362 5.5%
8 Pathmark 1 47,773 955,460 - - - - 47,773 955,460 0.8% 2.0% - -
Restoration
9 Hardware 1 12,293 929,600 - - - - 12,293 929,600 0.2% 1.9% 242 33.0%
Acme
10 (Albertson's) 2 76,864 918,664 - - - - 76,864 918,664 1.3% 1.9% 370 4.2%
Redner's
11 Supermarket 2 111,739 863,432 - - - - 111,739 863,432 1.9% 1.8% 253 3.9%
12 Safeway 6 13 - - 103,834 831,909 - - 103,834 831,909 1.8% 1.7% - -
13 Kroger 7 12 - - 122,388 829,065 - - 122,388 829,065 2.1% 1.7% - -
14 Macy's 1 73,349 610,745 - - - - 73,349 610,745 1.3% 1.2% 208 6.0%
15 Home Depot 8 1 190,090 602,126 - - - - 190,090 602,126 3.3% 1.2% - -
--------------------------------------------------------------------------------------------------------------
Total 66 1,977,474 $15,459,199 233,194 $1,742,243 68,077 $524,423 2,278,745 $17,725,865 39.6% 36.2%
==============================================================================================================
1 Base rents do not include percentage rents (except where noted), additional
rents for property expense reimbursements, and contractual rent escalations
due after June 30, 2003.
2 Represents total GLA and annualized base rent for the Company's retail
properties including its pro-rata share of joint venture properties.
3 Occupancy cost = Gross rents (base rent, percentage rent and expense
reimbursements) divided by sales. * indicates not all locations are
required to report sales. Amount is left blank if the tenant is not
required to report sales at any of the locations.
4 The tenant is currently not operating the store at the Luzerne Street
Shopping Center. They are obligated, and continue, to pay annual minimum
rent of $177,650 until the lease expires in April 30, 2004.
5 Subsidiary of JC Penney. The store at the Berlin Shopping Center has ceased
operating but continues to pay annual rent of $29,129 pursuant to the lease
which expires November 30, 2004. The Route 6 Plaza location has been sublet
to Advance Auto and expires 2011.
6 Safeway has sub-leased 7 of these locations to supermarket tenants, 1
location to a non-supermarket tenant and ceased operations at one other
location. Safeway is obligated to pay rent through the full term of all
these leases which expire in 2009.
7 Kroger has sub-leased 4 of these locations to supermarket tenants, 2
locations to a non-supermarket tenant and ceased operations at one other
location. Kroger is obligated to pay rent through the full term of all
these leases which expire in 2009.
8 Home Depot has acquired the former Ames lease ( 83,330 square feet) at the
Plaza 422 and is in the process of expanding the store to 102,000 square
feet. When complete (estimated 1st quarter 2004), they will pay base rent
of approximatly $408,000. However, they are not obligated to pay rent
during the construction period and, as such, the rent is not included in
the above amounts.
34
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Anchor Detail
-----------------------------------
(excludes jont venture owned Kroger/Safeway
Portfolio)
- ---------------------------------------------------------------------------------------------------
Annual Annual
Property/Tenant Name Square Lease Base Base
(Type of Center) Footage Expiration Rent Rent Options/Required
PSF Notice
- ---------------------------------------------------------------------------------------------------
THE COMPANY CONSIDERS THOSE TENANTS WHO COMPRISE GREATER THAN 10% OF A CENTER'S GLA AS
ANCHOR TENANTS
(The below detail does not include space which is currently leased, but for which rent
payment has not yet commenced)
Retail Anchor Properties- Wholly Owned
- ------------------------------------------
New York Region
- ------------------------------------------
New York
-----------------------------------------
Soundview Marketplace, Port Washington
King Kullen (7) 5 Year (12
48,100 9/26/2007 $562,600 $11.70 Months)
Clearview Cinema (4) 5 Year (12
25,400 5/31/2010 596,250 23.47 Months)
----------- -------------------
Property total 73,500 1,158,850 15.77
----------- -------------------
Smithtown Shopping Center, Smithtown
Daffy's (4) 5 Year (12
16,125 1/7/2008 274,125 17.00 Months)
Walgreen's 9,067 12/31/2021 154,088 16.99 -
----------- -------------------
Property total 25,192 428,213 17.00
----------- -------------------
The Branch Shopping Center, Smithtown
Waldbaum's (A&P) (1) 10 Year &
63,000 11/30/2013 837,240 13.29 (1) 5 Year
----------- -------------------
Property Total: 63,000 837,240 13.29
----------- -------------------
New Loudon Center, Latham
Club Pro (1) 5 Year (12
47,805 4/30/2006 260,537 5.45 Months)
Marshall's (1) 5 Year (12
26,015 1/31/2004 104,060 4.00 Months)
Price Chopper (4) 5 Year (12
77,450 5/31/2015 760,577 9.82 Months)
----------- -------------------
Property total 151,270 1,125,174 7.44
----------- -------------------
Pacesetter Park Shopping Center, Pomona
Stop & Shop (Ahold subsidiary) 52,052 8/31/2020 323,985 6.22 (2) 10 Year
----------- -------------------
Property total 52,052 323,985 6.22
----------- -------------------
New Jersey
-----------------------------------------
Elmwood Park Shopping Center, Elmwood Park
Walgreen's (8) 5 Year (12
14,837 5/31/2022 435,000 29.32 Months)
Pathmark (7) 5 Year (12
47,773 11/30/2017 955,460 20.00 Months)
----------- -------------------
Property total 62,610 1,390,460 22.21
----------- -------------------
Marketplace of Absecon, Absecon
Eckerd Drug (4) 5 Year (6
13,207 8/30/2020 329,310 24.93 Months)
Acme Markets (8) 5 Year (12
44,824 4/30/2015 598,264 13.35 Months)
----------- -------------------
Property total 58,031 927,574 15.98
----------- -------------------
Berlin Shopping Center, Berlin
Acme Markets (2) 5 Year (6
32,040 4/30/2005 320,400 10.00 Months)
Kmart (4) 5 Year (6
95,810 11/30/2004 299,000 3.12 Months)
----------- -------------------
Property total 127,850 619,400 4.84
----------- -------------------
Ledgewood Mall, Ledgewood (Enclosed Mall)
Circuit City (4) 5 Year (6
33,294 1/31/2020 449,469 13.50 Months)
Marshall's (4) 5 Year (6
27,228 1/31/2007 326,736 12.00 Months)
The Sports Authority (6) 5 Year (15
52,205 5/31/2007 225,000 4.31 Months)
Macy's Department Store 1 (4) 5 Year (6
61,900 1/31/2005 553,500 8.94 Months)
Wal*Mart (6) 5 Year (6
120,570 3/31/2019 888,601 7.37 Months)
----------- -------------------
Property total 295,197 2,443,306 8.28
----------- -------------------
Total: New York Region 908,702 9,254,202 10.18
----------- -------------------
1 The tenant has additional expansion space bringing the total space to
74,815 s.f. with total rents of $618,075.
35
Retail Anchor Properties- Wholly Owned (continued)
- -----------------------------------------------------
New England
- ------------------------------------------
Connecticut
-----------------------------------------
Town Line Plaza, Rocky Hill
Wal*Mart 1 97,300 - $- $- REA Agreement
GU Markets (7) 5 Year (6
64,665 3/8/2017 730,000 11.29 Months)
----------- -------------------
Property total 161,965 730,000 11.29
----------- -------------------
239 Greenwich Ave., Greenwich
Chico's Fashion 4,541 1/31/2010 324,682 71.50 (2) 5 Years
Restoration Hardware (2) 5 Years (6
12,293 4/30/2015 929,600 75.62 Months)
----------- -------------------
Property total 16,834 1,254,282 74.51
----------- -------------------
Massachusetts
-----------------------------------------
Methuen Shopping Center, Methuen
Demoulas Super Markets 30,460 1/31/2005 109,656 3.60 (2) 5 Year
Wal*Mart (8) 5 Year (6
89,544 10/23/2011 626,808 7.00 Months)
----------- -------------------
Property total 120,004 736,464 6.14
----------- -------------------
Crescent Plaza, Brockton
Home Depot (7) 5 Year (1
106,760 10/31/2021 602,126 5.64 Year)
Shaws Supermarkets (6) 5 Year (6
50,225 12/31/2012 516,960 10.29 Months)
----------- -------------------
Property total 156,985 1,119,086 7.13
----------- -------------------
Rhode Island
-----------------------------------------
Walnut Hill Plaza, Woonsocket
Sears (5) 5 Year (12
60,700 8/31/2008 258,000 4.25 Months)
Shaws Supermarkets (6) 5 Year (9
52,392 12/31/2013 497,724 9.50 Months)
----------- -------------------
Property total 113,092 755,724 6.68
----------- -------------------
Vermont
-----------------------------------------
Gateway Shopping Center
Shaws Supermarkets (1) 10 Yr., (3)
5 Yr. & (1) 4
72,000 3/31/2024 1,296,000 18.00 Yr.
----------- -------------------
Property total 72,000 1,296,000 18.00
----------- -------------------
Total : New England 640,880 5,891,556 10.84
----------- -------------------
Midwest
- -------
Illinois
-----------------------------------------
Hobson West Plaza, Naperville
Eagle Food Centers (5) 5 Year (6
42,037 11/30/2007 170,000 4.04 Months)
----------- -------------------
Property total 42,037 170,000 4.04
----------- -------------------
Indiana
-----------------------------------------
Merrillville Plaza, Merrillville
JC Penney (2) 5 Year (12
50,000 1/31/2008 495,000 9.90 Months)
OfficeMax (4) 5 Year (6
26,157 7/31/2008 202,717 7.75 Months)
TJ Maxx (2) 5 Year (6
25,200 1/31/2004 182,700 7.25 Months)
----------- -------------------
Property total 101,357 880,417 8.69
----------- -------------------
Michigan
-----------------------------------------
Bloomfield Town Square, Bloomfield Hills
Home goods 39,646 5/31/2010 307,257 7.75 (3) 5 Year
Marshall's (3) 5 Year (6
28,324 9/30/2011 226,592 8.00 Months)
TJ Maxx (1) 5 Year (6
36,000 1/31/2009 234,000 6.50 Months)
----------- -------------------
Property total 103,970 767,849 7.39
----------- -------------------
Ohio
------
Mad River Station, Dayton
Babies 'R' Us 33,147 2/28/2005 243,630 7.35 (3) 5 Year
Office Depot (1) 5 Year (6
25,038 8/31/2005 287,937 11.50 Months)
----------- -------------------
Property total 58,185 531,567 9.14
----------- -------------------
Total: Midwest 305,549 2,349,833 7.69
----------- -------------------
1 This space is contiguous to the Company's property and is not owned by the
Company.
36
Retail Anchor Properties- Wholly Owned (continued)
- -----------------------------------------------------
Mid-Atlantic
- ------------------------------------------
Pennsylvania
-----------------------------------------
Abington Town Center, Abington
TJ Maxx (2) 5 Year (6
27,000 11/30/2010 $256,500 $9.50 Months)
Target 1 Condominium
157,616 - - - Agreement
----------- -------------------
Property total 184,616 256,500 9.50
----------- -------------------
Blackman Plaza, Wilkes-Barre
Kmart (9) 5 Year (12
104,956 10/31/2004 204,664 1.95 Months)
----------- -------------------
Property total 104,956 204,664 1.95
----------- -------------------
Bradford Towne Centre, Towanda
Kmart (10) 5 Year (6
94,841 3/31/2019 474,205 5.00 Months)
P & C Foods (Penn Traffic) (2) 5 Year (6
51,658 9/30/2014 413,264 8.00 Months)
----------- -------------------
Property total 146,499 887,469 6.06
----------- -------------------
East End Center, Wilkes-Barre
Price Chopper (4) 5 Year (6
50,000 4/30/2008 357,500 7.15 Months)
----------- -------------------
Property total 50,000 357,500 7.15
-----------
Greenridge Plaza, Scranton
Giant Food Stores (Ahold) (6) 5 Year
62,090 4/30/2021 279,405 4.50 (Auto)
----------- -------------------
Property total 62,090 279,405 4.50
----------- -------------------
Luzerne Street Shopping Center, Scranton
Eckerd Drugs (3) 5 Year (6
14,000 4/30/2004 94,500 6.75 Months)
Price Chopper 2 (4) 5 Year (12
40,618 4/30/2004 177,650 4.37 Months)
----------- -------------------
Property total 54,618 272,150 4.98
----------- -------------------
Mark Plaza, Edwardsville
Kmart (10) 5 Year (12
104,956 10/31/2004 204,664 1.95 Months)
Redner's Market (2) 5 Year (6
52,639 5/31/2018 447,432 8.50 Months)
----------- -------------------
Property total 157,595 652,096 4.14
----------- -------------------
Pittston Plaza, Pittston
Eckerd Drugs (2) 5 Year (6
8,468 6/30/2006 80,446 9.50 Months)
Redner's Market 59,100 12/31/2018 416,000 7.04 (2) 5 Year
----------- -------------------
Property total 67,568 496,446 7.35
----------- -------------------
Plaza 422, Lebanon
Giant Food Stores 2 40,783 12/31/2003 132,030 3.24 (5) 5 Year
Home Depot 3 83,330 - -
----------- -------------------
Property total 124,113 132,030 1.06
----------- -------------------
Route 6 Mall, Honesdale
Kmart (10) 5 Year
119,658 4/30/2020 687,950 5.75 (Automatic)
----------- -------------------
Property total 119,658 687,950 5.75
----------- -------------------
Total : Mid-Atlantic 1,071,713 4,226,210 5.09
----------- -------------------
Total: Retail Anchor Properties - Wholly
Owned Properties 2,926,844 $21,721,801 $8.39
=========== ===================
1 Target owns the portion of the main building (157,616 square feet) that
their store is located in.
2 This tenant has ceased operations at this location, however continues to
pay rent pursuant to the lease.
3 Home Depot has acquired the former Ames lease ( 83,330 square feet) at the
Plaza 422 and is in the process of expanding the store to 102,000 square
feet. When complete (estimated 1st quarter 2004), they will pay base rent
of approximatly $408,000. However, they are not obligated to pay rent
during the construction period and, as such, the rent is not included in
the above amounts.
37
Joint Venture Properties
- ------------------------------------------
New York Region
- ------------------------------------------
New York
-----------------------------------------
Crossroads Shopping Center, White Plains
Kmart (5) 5 Year (9
100,725 1/31/2012 $566,250 $5.62 Months)
Waldbaum's (A&P) (5) 5 Year (9
38,208 12/31/2007 504,000 13.19 Months)
B. Dalton (2) 5 Year (18
12,430 5/28/2012 345,927 27.83 Months)
Pay Half 15,000 1/31/2018 330,000 22.00 -
Modell's (2) 5 Year (12
25,000 2/28/2009 193,750 7.75 Months)
----------- -------------------
Property total 191,363 1,939,927 10.14
----------- -------------------
Total : New York Region 191,363 1,939,927 10.14
----------- -------------------
Mid-Atlantic Region
- ------------------------------------------
Delaware
-----------------------------------------
Brandywine Town Center
Annie Sez (3) 5 Year (9
13,324 1/31/2007 266,500 20.00 Months)
Kay-Bee Toys (2) 5 Year (9
20,138 7/31/2012 382,622 19.00 Months)
Michaels (3) 5 Year (9
24,876 2/28/2011 547,272 22.00 Months)
Old Navy (1) 5 Year (6
24,631 4/30/2011 541,872 22.00 Months)
Petsmart (2) 5 Year
23,963 6/30/2017 455,297 19.00 (Automatic)
Thomasville Furniture (2) 5 Year (9
18,893 11/30/2011 449,842 23.81 Months)
Bed, Bath & Beyond (3) 5 Year (6
50,977 1/31/2014 868,426 17.04 Months)
Dick's Sporting Goods (3) 5 Year (6
50,000 5/31/2013 725,156 14.50 Months)
Lowe's Home Centers (6) 5 Year
140,000 8/31/2018 1,750,000 12.50 (Automatic)
Regal Cinemas (4) 5 Year (4
65,641 6/1/2017 821,825 12.52 Months)
Transunion Settlement (1) 5 Year (9
39,714 3/31/2013 858,930 21.63 Months)
Target (5) 10 Year (12
138,000 1/31/2018 800,000 5.80 Months)
----------- -------------------
Property total 610,157 8,467,742 13.88
----------- -------------------
Market Square Shopping Center
TJ Maxx (2) 5 Year (9
31,375 1/31/2006 365,714 11.66 Months)
----------- -------------------
Total : Mid-Atlantic Region 641,532 8,833,456 13.77
----------- -------------------
Midwest Region
- ------------------------------------------
Ohio
------
Amherst Marketplace
Giant Eagle (4) 5 Year (6
66,237 9/3/2021 630,576 9.52 Months)
CVS 1 (3) 5 Year (6
10,500 3/31/2012 135,135 12.87 Months)
----------- -------------------
Property total 76,737 765,711 9.98
----------- -------------------
Granville Centre
Big Bear Supermarket (Penn Traffic) 55,096 1/28/2020 589,527 10.70 (6) 5 Year
California Fitness 34,951 1/31/2017 402,085 11.50 (2) 5 Year
----------- -------------------
Property total 90,047 991,612 11.01
----------- -------------------
Sheffield Crossing
Giant Eagle (4) 5 Year (6
59,159 5/31/2022 620,578 10.49 Months)
----------- -------------------
Property total 59,159 620,578 10.49
----------- -------------------
Total: Midwest 225,943 2,377,901 10.52
----------- -------------------
Total: Joint Venture Properties 1,058,838 $13,151,284 $12.42
=========== ===================
1 This tenant has ceased operations at this location, however continues to
pay rent pursuant to the lease.
38
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Anchor Lease Expirations - Next 3 Years
--------------------------------------------------
------------------------------------------------------------------------------------------------------------
Gross Leased Area Annualized Base Rent
------------------- ------------------------------------------
Percent Percent Average
Square of of per
Center Anchor footage all anchors Amount all Sq. Ft.
anchors
------------------------------------------------------------------------------------------------------------
2003
Plaza 422 Giant Food Stores
1 40,783 1.53% $132,030 0.61% $3.24
------------------- ------------------------------------------
2004
New Louden Center Marshalls 26,015 0.97% 104,060 0.48% 4.00
Merrillville Plaza T.J. Maxx 25,200 0.94% 182,700 0.84% 7.25
Luzerne Street Eckerd Drug
Shopping Center 14,000 0.52% 94,500 0.44% 6.75
Luzerne Street Price Chopper 1
Shopping Center 40,618 1.52% 177,650 0.82% 4.37
Blackman Plaza K-Mart 104,956 3.93% 204,664 0.94% 1.95
Mark Plaza K-Mart 104,956 3.93% 204,664 0.94% 1.95
Berlin Shopping CenterK-Mart 95,810 3.59% 299,000 1.38% 3.12
------------------- ------------------------------------------
Total 2004 411,555 15.40% 1,267,238 5.83% 3.08
------------------- ------------------------------------------
2005
Methuen Shopping Demoulas
Center Supermarket 30,460 1.14% 109,656 0.50% 3.60
Ledgewood Mall Macy's 2 61,900 2.32% 553,500 2.55% 8.94
Mad River Shopping Babies 'R' Us
Center 33,147 1.24% 243,630 1.12% 7.35
Berlin Shopping CenterAcme Markets 32,040 1.20% 320,400 1.48% 10.00
Mad River Shopping Office Depot
Center 25,038 0.94% 287,937 1.33% 11.50
------------------- ------------------------------------------
Total 2005 182,585 6.83% 1,515,123 6.98% 8.30
------------------- ------------------------------------------
Total - Next 3 Years $634,923 23.76% $2,914,391 13.42% $4.59
=================== ==========================================
1 This tenant has ceased operations at this location, however continues to
pay rent pursuant to the lease.
2 The tenant has additional expansion space bringing the total space to
74,815 s.f. with total rents of $618,075.
39
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Lease
Expirations
-----------------------------------------
----------------------------------------------------------------------
Gross Leased Area Annualized Base Rent
--------------------- ---------------------
Number of Percent Percent Average
Leases Square of of per
Expiring Footage Total Amount Total Sq. Ft.
----------------------------------------------------------------------
Wholly-Owned Propeties
Anchor Tenant Expirations
2003 1 40,783 1.53% 132,030 0.61% 3.24
2004 7 411,555 15.40% 1,267,238 5.83% 3.08
2005 5 182,585 6.83% 1,515,123 6.98% 8.30
2006 3 139,603 5.22% 340,983 1.57% 2.44
2007 4 169,570 6.35% 1,284,336 5.91% 7.57
2008 5 202,982 7.60% 1,587,342 7.31% 7.82
2009 1 36,000 1.35% 234,000 1.08% 6.50
2010 4 96,587 3.61% 1,484,688 6.84% 15.37
2011 2 117,868 4.41% 853,400 3.93% 7.24
2012 1 50,225 1.88% 516,960 2.38% 10.29
2013 2 115,392 4.32% 1,334,964 6.15% 11.57
2014 1 51,658 1.93% 413,264 1.90% 8.00
2015 3 134,567 5.04% 2,288,441 10.53% 17.01
2017 2 112,438 4.21% 1,685,460 7.76% 14.99
2018 2 111,739 4.18% 863,432 3.97% 7.73
2019 2 215,411 8.06% 1,362,806 6.27% 6.33
2020 4 218,211 8.17% 1,790,715 8.24% 8.21
2021 3 177,917 6.66% 1,035,619 4.77% 5.82
2022 1 14,837 0.56% 435,000 2.00% 29.32
2024 1 72,000 2.69% 1,296,000 5.97% 18.00
--------------------------------- -----------------------------
Total Occupied 54 2,671,928 100.00% $21,721,801 100.00% $8.39
-------------------------------------------
Anchor GLA Owned by Tenants 254,916
Total Vacant 333,334
------------
Total Square Feet 3,260,178
============
-------------------------------------------
40
Wholly-Owned Propeties
Shop Tenant
Expirations
Month to Month 15 45,403 2.86% $377,664 1.89% $8.32
2003 21 39,400 2.49% 627,433 3.14% 15.92
2004 58 234,761 14.82% 2,797,887 14.00% 11.92
2005 50 253,773 16.02% 2,898,494 14.50% 11.42
2006 48 179,505 11.33% 2,191,873 10.97% 12.21
2007 50 204,214 12.89% 2,828,763 14.15% 13.85
2008 43 204,400 12.90% 2,789,380 13.96% 13.65
2009 26 128,724 8.13% 1,637,799 8.20% 12.72
2010 15 115,134 7.27% 929,740 4.65% 8.08
2011 16 77,149 4.87% 1,255,299 6.28% 16.27
2012 7 22,549 1.42% 467,933 2.34% 20.75
2013 7 16,891 1.07% 357,167 1.79% 21.15
2014 2 26,472 1.67% 167,024 0.84% 6.31
2015 2 15,616 0.99% 290,532 1.45% 18.60
2020 2 17,945 1.13% 326,120 1.63% 18.17
2022 1 2,205 0.14% 41,895 0.21% 19.00
--------------------------------- -----------------------------
Total Occupied 363 1,584,141 100.00% $19,985,003 100.00% $12.62
-------------------------------------------
Total Vacant 302,467
------------
Total Square Feet 1,886,608
============
41
Wholly-Owned Propeties
Total Tenant
Expirations
Month to Month 15 45,403 1.07% $377,664 0.91% $8.32
2003 22 80,183 1.88% 759,463 1.82% 9.47
2004 65 646,316 15.19% 4,065,125 9.75% 6.29
2005 55 436,358 10.25% 4,413,617 10.58% 10.11
2006 51 319,108 7.50% 2,532,856 6.07% 7.94
2007 54 373,784 8.78% 4,113,099 9.86% 11.00
2008 48 407,382 9.57% 4,376,722 10.49% 10.74
2009 27 164,724 3.87% 1,871,799 4.49% 11.36
2010 19 211,721 4.97% 2,414,428 5.79% 11.40
2011 18 195,017 4.58% 2,108,699 5.06% 10.81
2012 8 72,774 1.71% 984,893 2.36% 13.53
2013 9 132,283 3.11% 1,692,131 4.06% 12.79
2014 3 78,130 1.84% 580,288 1.39% 7.43
2015 5 150,183 3.53% 2,578,973 6.18% 17.17
2017 2 112,438 2.64% 1,685,460 4.04% 14.99
2018 2 111,739 2.63% 863,432 2.07% 7.73
2019 2 215,411 5.06% 1,362,806 3.27% 6.33
2020 6 236,156 5.55% 2,116,835 5.08% 8.96
2021 3 177,917 4.18% 1,035,619 2.48% 5.82
2022 2 17,042 0.40% 476,895 1.14% 27.98
2024 1 72,000 1.69% 1,296,000 3.11% 18.00
--------------------------------- -----------------------------
Total Occupied 417 4,256,069 100.00% 41,706,804 100.00% 10.00
-------------------------------------------
Anchor GLA Owned by Tenants 254,916
Total Vacant 635,801
------------
Total Square Feet 5,146,786
============
42
Joint Venture Properties (excludes jont venture owned Kroger/Safeway Portfolio)
Anchor Tenant Expirations
2006 1 31,375 2.96% 365,712 2.78% 11.66
2007 2 51,532 4.87% 770,500 5.86% 14.95
2009 1 25,000 2.36% 193,750 1.47% 7.75
2011 3 68,400 6.46% 1,538,986 11.70% 22.50
2012 4 143,793 13.58% 1,429,935 10.87% 9.94
2013 2 89,714 8.47% 1,584,086 12.05% 17.66
2014 1 50,977 4.81% 868,426 6.60% 17.04
2017 3 124,555 11.76% 1,679,208 12.77% 13.48
2018 3 293,000 27.68% 2,880,000 21.91% 9.83
2020 1 55,096 5.20% 589,527 4.48% 10.70
2021 1 66,237 6.26% 630,576 4.79% 9.52
2022 1 59,159 5.59% 620,578 4.72% 10.49
--------------------------------- -----------------------------
Total Occupied 23 1,058,838 100.00% $13,151,284 100.00% $12.42
-------------------------------------------
Total Vacant 4,132
------------
Total Square Feet 1,062,970
============
43
Joint Venture Properties
Shop Tenant
Expirations
Month to Month 2 9,165 3.70% $226,518 4.10% $24.72
2003 5 21,273 8.58% 387,359 7.02% 18.21
2004 11 55,238 22.27% 1,461,386 26.48% 26.46
2005 7 20,555 8.29% 508,425 9.21% 24.73
2006 8 20,444 8.25% 391,258 7.09% 19.14
2007 10 26,369 10.64% 687,286 12.45% 26.06
2008 10 32,140 12.96% 727,038 13.17% 22.62
2009 3 5,362 2.16% 172,102 3.12% 32.10
2011 2 4,265 1.72% 97,787 1.77% 22.93
2012 3 15,750 6.35% 322,073 5.83% 20.45
2013 3 20,795 8.39% 259,662 4.70% 12.49
2018 1 6,957 2.81% 50,004 0.91% 7.19
2019 1 3,141 1.27% 42,000 0.76% 13.37
2022 1 6,462 2.61% 187,400 3.39% 29.00
--------------------------------- -----------------------------
Total Occupied 67 247,916 100.00% $5,520,298 100.00% $22.27
-------------------------------------------
Total Vacant 25,922
------------
Total Square Feet 273,838
============
44
Joint Venture Properties
Total Tenant
Expirations
Month to Month 2 9,165 0.70% $226,518 1.21% $24.72
2003 5 21,273 1.63% 387,359 2.07% 18.21
2004 11 55,238 4.23% 1,461,386 7.83% 26.46
2005 7 20,555 1.57% 508,425 2.72% 24.73
2006 9 51,819 3.97% 756,970 4.05% 14.61
2007 12 77,901 5.96% 1,457,786 7.81% 18.71
2008 10 32,140 2.46% 727,038 3.89% 22.62
2009 4 30,362 2.32% 365,852 1.96% 12.05
2011 5 72,665 5.56% 1,636,773 8.77% 22.52
2012 7 159,543 12.21% 1,752,008 9.38% 10.98
2013 5 110,509 8.46% 1,843,748 9.87% 16.68
2014 1 50,977 3.90% 868,426 4.65% 17.04
2017 3 124,555 9.53% 1,679,208 8.99% 13.48
2018 4 299,957 22.95% 2,930,004 15.71% 9.77
2019 1 3,141 0.24% 42,000 0.22% 13.37
2020 1 55,096 4.22% 589,527 3.16% 10.70
2021 1 66,237 5.07% 630,576 3.38% 9.52
2022 2 65,621 5.02% 807,978 4.33% 12.31
--------------------------------- -----------------------------
Total Occupied 90 1,306,754 100.00% 18,671,582 100.00% 14.29
-------------------------------------------
Total Vacant 30,054
------------
Total Square Feet 1,336,808
============
45
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Property
Demographics
- --------------------------------
- ----------------------------------------------------------------- -----------------------------------
3-Mile Radius
-----------------------------------
Trade Total #
Area Base Total Total HouseholdsMedian Avg. HH
HH
Property / City State(Miles) Rent GLA Pop. ("HH") Income Income
JV
Ownership %
- ----------------------------------------------------------------- ------------------------------------
Brandywine Wilmington DE
Town Center
& Mkt
Sq./22.22% 3 10,003,097 702,049 40,591 15,566 $70,145 $87,971
Elmwood ParkElmwood Park NJ
Shopping
Ctr. 3 3,127,059 149,038 252,916 84,197 $44,191 $61,068
Abington Abington PA
Towne
Center 3 779,745 216,365 90,807 35,613 $55,130 $74,846
Granville Columbus OH
Center /
22.22% 3 1,299,290 131,269 112,286 49,559 $45,721 $56,925
Hobson West Naperville IL
Plaza 3 1,128,453 99,038 95,042 32,948 $82,298 $103,749
Methuen Methuen MA
Shopping
Ctr. 5 828,772 130,238 82,654 30,553 $37,421 $52,017
Crossroads White Plains NY
Shopping
Ctr. / 49% 3 5,466,478 310,919 102,957 39,813 $59,646 $86,839
The Branch Smithtown NY
Plaza 3 2,013,829 125,640 66,533 22,196 $80,908 $97,724
Village Smithtown NY
Commons
Shopping
Ctr. 3 1,975,730 87,227 66,271 22,034 $82,794 $100,446
Bloomfield Bloomfield Hills MI
Town Square 5 1,721,770 216,489 61,631 24,011 $49,857 $83,461
Crescent Brockton MA
Plaza 3 1,660,527 218,277 98,955 34,754 $39,202 $52,875
239 Greenwich CT
Greenwich
Avenue 5 1,254,282 16,834 66,991 25,410 $70,619 $113,557
Soundview Port Washington NY
Marketplace 3 2,609,713 182,660 42,480 15,035 $88,897 $123,512
Town Line Rocky Hill CT
Plaza 3 1,343,848 206,178 43,708 18,392 $60,038 $75,504
New Loudon Latham NY
Center 5 1,550,544 253,003 44,153 17,525 $44,595 $58,526
Pacesetter Pomona NY
Park
Shopping
Ctr. 3 866,889 96,252 39,938 13,037 $71,075 $92,040
Mad River Dayton OH
Station 5 1,551,857 154,474 58,108 25,182 $50,359 $62,777
Greenridge Scranton PA
Plaza 3 641,089 198,393 88,733 36,946 $30,723 $38,790
Mark Plaza Edwardsville PA 5 946,877 214,036 90,532 38,714 $28,086 $38,397
Luzerne Scranton PA
Street
Shopping
Ctr. 3 272,150 57,988 89,062 36,973 $30,970 $39,323
East End Wilkes-Barre PA
Center 5 1,215,320 308,283 52,381 21,864 $28,656 $39,768
Blackman Wilkes-Barre PA
Plaza 5 261,504 121,341 62,458 26,393 $27,479 $37,619
Sheffield Sheffield OH
Crossing /
22.22% 3 1,103,610 112,634 32,599 12,608 $41,912 $50,765
Amherst Amherst OH
Marketplace
/ 22.22% 3 799,107 79,937 54,629 21,303 $40,830 $48,704
Walnut Hill Woonsocket RI
Plaza 5 2,139,128 284,464 59,068 24,020 $32,605 $44,830
Ledgewood Ledgewood NJ
Mall 5 4,197,748 513,704 39,321 14,812 $72,358 $90,603
Berlin Berlin NJ
Shopping
Ctr. 3 800,374 188,717 29,619 10,417 $55,284 $65,695
MerrillvilleHobart IN
Plaza 5 2,554,212 235,591 21,008 8,295 $56,061 $65,230
The Gateway So. Burlington VT
Shopping
Ctr. 3 1,511,686 100,574 45,990 19,115 $35,139 $54,003
Marketplace Absecon NJ
of Absecon 3 1,479,421 105,251 30,343 10,516 $44,240 $53,982
Pittston Pittston PA
Plaza 3 599,728 79,494 40,766 17,194 $28,200 $37,109
Plaza 422 Lebanon PA 3 195,480 154,791 44,886 18,014 $31,027 $39,952
Route 6 Honesdale PA
Plaza 5 1,061,248 175,507 8,434 3,520 $33,818 $42,503
Bradford Towanda PA
Towne
Centre 10 1,417,821 256,939 5,417 2,256 $33,937 $41,666
- ----------------------------------------------------------------- -----------------------------------
60,378,386 6,483,594
--------------------- -----------------------------------
59,546 22,968 $51,177 $66,743
-----------------------------------
-----------------------------------
67,956 25,123 $55,417 $73,064
-----------------------------------
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Property
Demographics
- --------------------------------
- ---------------------------------------------------------- -------------------------------
5-Mile Radius 10-Mile Radius
---------------------------------------------- -------------------------------
Total Median Avg. HH Total Median
# HH # HH
Property / Pop. HH Income Income Pop. HH Income
JV
Ownership %
- ------------------------------------------------------------------------------------------
Brandywine
Town Center
& Mkt
Sq./22.22% 115,509 46,245 $63,181 $59,045 - - $-
Elmwood Park
Shopping
Ctr. 604,387 209,582 $49,412 $67,557 - - -
Abington
Towne
Center 316,194 123,852 $49,479 $67,255 - - -
Granville
Center /
22.22% 265,455 113,546 $46,746 $59,386 - - -
Hobson West
Plaza 219,460 77,196 $77,091 $96,876 - - -
Methuen
Shopping
Ctr. 200,868 74,426 $40,606 $55,989 - - -
Crossroads
Shopping
Ctr. / 49% 199,222 73,477 $67,992 $102,645 - - -
The Branch
Plaza 195,670 63,278 $74,644 $88,242 - - -
Village
Commons
Shopping
Ctr. 183,612 59,340 $76,842 $91,507 - - -
Bloomfield
Town Square 165,071 62,680 $56,286 $89,068 - - -
Crescent
Plaza 164,499 58,369 $43,599 $56,535 - - -
239
Greenwich
Avenue 140,966 51,265 $65,356 $108,235 - - -
Soundview
Marketplace 137,254 49,982 $82,830 $115,646 - - -
Town Line
Plaza 148,879 59,310 $49,080 $68,253 - - -
New Loudon
Center 146,563 59,410 $41,551 $54,174 - - -
Pacesetter
Park
Shopping
Ctr. 134,683 40,424 $64,652 $84,328 - - -
Mad River
Station 133,120 55,823 $50,541 $63,278 - - -
Greenridge
Plaza 128,607 52,993 $32,446 $41,441 - - -
Mark Plaza 124,503 52,875 $28,794 $39,583 - - -
Luzerne
Street
Shopping
Ctr. 119,331 49,490 $31,439 $39,606 - - -
East End
Center 118,978 50,532 $28,517 $39,139 - - -
Blackman
Plaza 118,011 50,151 $28,229 $38,259 - - -
Sheffield
Crossing /
22.22% 117,103 44,793 $41,567 $50,186 - - -
Amherst
Marketplace
/ 22.22% 99,027 38,334 $37,223 $45,538 - - -
Walnut Hill
Plaza 93,988 36,923 $40,811 $54,959 - - -
Ledgewood
Mall 92,079 33,550 $71,399 $89,911 263,597 94,154 $76,368
Berlin
Shopping
Ctr. 90,611 32,636 $54,209 $65,720 - - -
Merrillville
Plaza 84,295 31,487 $48,370 $54,246 209,428 86,555 $29,751
The Gateway
Shopping
Ctr. 69,036 27,944 $37,547 $55,060 - - -
Marketplace
of Absecon 68,091 23,902 $42,882 $54,526 - - -
Pittston
Plaza 72,123 30,327 $29,150 $38,323 - - -
Plaza 422 61,225 24,051 $33,664 $42,971 - - -
Route 6
Plaza 12,078 4,944 $35,972 $44,544 - - -
Bradford
Towne
Centre 8,567 3,463 $34,547 $42,463 17,148 6,584 $34,707
- ---------------------------------------------------------- -------------------------------
---------------------------------------------- -------------------------------
138,979 53,026 $50,361 $63,803 187,984 70,014 $54,815
---------------------------------------------- -------------------------------
---------------------------------------------- -------------------------------
161,302 59,124 $54,630 $71,318 203,892 76,581 $54,564
---------------------------------------------- -------------------------------
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Property
Demographics
- --------------------------------
- --------------------------------- ------------------------------------------------------ -------------------------------
10-Mile Radius GLA * 3 mile radius
--------------------- -------------------------------
Average Total Total
HH
-------------------------------
Avg. HH Average Income PopulationPopulation Total
HH
Property / Income County MSA Income MSA MSA (MSA) Rank Pop.
JV (MSA) Rank (OOO's)
Ownership %
- --------------------------------------------------------------------------------------------- -------------------------------
Brandywine Bergen Wilmington-
Town Center Newark, DE
& Mkt
Sq./22.22% $- $56,144 39 591.6 93 28,496,870,959
Elmwood Park Bergen Bergen-
Shopping Passaic, NJ
Ctr. - $65,835 12 1,380.2 49 37,694,094,808
Abington Bucks Philadelphia,
Towne PA
Center - $59,999 24 5,114.3 4 19,647,456,555
Granville Franklin Columbus, OH
Center /
22.22% - $52,656 58 1,554.7 40 14,739,670,934
Hobson West DuPage Chicago, IL
Plaza - $61,428 18 8,337.3 3 9,412,769,596
Methuen Essex Boston, MA-NH
Shopping
Ctr. - $64,057 14 4,018.1 9 10,764,691,652
Crossroads WestchesterNew York, NY
Shopping
Ctr. / 49% - $56,293 44 9,371.7 2 32,011,287,483
The Branch Suffolk Nassau-
Plaza - Suffolk, NY $69,576 5 2,764.8 16 8,359,206,120
Village Suffolk Nassau-
Commons Suffolk, NY
Shopping
Ctr. - $69,576 5 2,764.8 16 5,780,620,517
Bloomfield Oakland Detroit, MI
Town Square - $52,017 64 4,454.7 6 13,342,433,559
Crescent Plymouth Boston, MA-NH
Plaza - $64,057 14 4,018.1 9 21,599,600,535
239 Fairfield New Haven-
Greenwich Meriden, CT
Avenue - $56,725 36 825.5 71 1,127,726,494
Soundview Nassau Nassau-
Marketplace - Suffolk, NY $69,576 5 2,764.8 16 7,759,396,800
Town Line Hartford Hartford, CT
Plaza - $60,824 20 1,150.5 53 9,011,628,024
New Loudon Albany Albany-
Center Schenectady-
- Troy, NY $46,217 144 876.7 69 11,170,841,459
Pacesetter Rockland New York, NY
Park
Shopping
Ctr. - $56,293 44 9,371.7 2 3,844,112,376
Mad River Montgomery Dayton-
Station Springfield,
- OH $48,767 95 950.5 64 8,976,175,192
Greenridge Lackawanna Scranton-
Plaza Wilkes
Barre-
- Hazelton, PA$41,544 223 623.8 86 17,604,006,069
Mark Plaza Luzerne Scranton-
Wilkes
Barre-
- Hazelton, PA$41,544 223 623.8 86 19,377,107,152
Luzerne Lackawanna Scranton-
Street Wilkes
Shopping Barre-
Ctr. - Hazelton, PA$41,544 223 623.8 86 5,164,527,256
East End Luzerne Scranton-
Center Wilkes
Barre-
- Hazelton, PA$41,544 223 623.8 86 16,148,171,823
Blackman Luzerne Scranton-
Plaza Wilkes
Barre-
- Hazelton, PA$41,544 223 623.8 86 7,578,716,178
Sheffield Lorain Cleveland-
Crossing / Lorain-
22.22% - Elyria $48,822 93 2,254.5 24 3,671,755,766
Amherst Lorain Cleveland-
Marketplace Lorain-
/ 22.22% - Elyria $48,822 93 2,254.5 24 4,366,878,373
Walnut Hill Providence Providence-
Plaza Fall River,
- RI $47,124 129 988.4 63 16,802,719,552
Ledgewood Morris Newark, NJ
Mall $97,665 $66,660 9 2,041.8 26 20,199,354,984
Berlin Burlington Philadelphia,
Shopping PA, NJ
Ctr. - $59,999 24 5,114.3 4 5,589,608,823
Merrillville Lake Gary, IN
Plaza $41,041 $45,397 158 633.3 84 4,949,295,728
The Gateway Chittenden Burlington,
Shopping VT
Ctr. - $50,683 77 200.5 208 4,625,398,260
Marketplace Atlantic Atlantic
of Absecon City-Cape
- May, NJ $44,744 169 357.6 145 3,193,631,093
Pittston Luzerne Scranton-
Plaza Wilkes
Barre-
- Hazelton, PA$41,544 223 623.8 86 3,240,652,404
Plaza 422 Lebanon Harrisburg-
Lebanon-
- Carlisle, PA$52,510 59 692.5 85 6,947,948,826
Route 6 Wayne
Plaza - N/A - - - - 1,480,226,038
Bradford Bradford
Towne
Centre $42,850 N/A - - - - 1,391,838,563
- --------------------------------- ------------------------------------------------------ ----------------
386,070,419,951
--------------------- ----------------
$70,411
---------------------
---------------------
$70,449
---------------------
46
QUARTERLY SUPPLEMENTAL DISCLOSURE
JUNE 30, 2003
Properties Under Redevelopment
Gateway Shopping Center
The Company's redevelopment program focuses on selecting well-located
neighborhood and community shopping centers and creating significant value
through retenanting and property redevelopment. At the beginning of 2003, the
Company had one ongoing redevelopment project at the Gateway Shopping Center as
follows:
The redevelopment of the Gateway Shopping Center, a partially enclosed mall
located in South Burlington, Vermont, includes the demolition of 90% of the
property and the construction of a new anchor supermarket. Following the
bankruptcy of the former anchor Grand Union, the lease was assigned to and
assumed by Shaw's supermarket. Construction of a new 72,000 square foot Shaw's
supermarket has been completed and Shaw's opened for business during the second
quarter 2003. This replaced the undersized 32,000 square foot Grand Union
supermarket which formerly anchored the center. Total costs to date for this
project (including the original acquisition of the property in 1999) were $16.5
million. The Company expects remaining redevelopment costs of approximately $1.4
million to complete this project, primarily for an additional 15,000 of
small-shop space, which it anticipates leasing in the second half of 2003 and
first half of 2004.
47
QUARTERLY SUPPLEMENTAL DISCLOSURE
June 30, 2003
Residential (Multi-family) Properties
- ---------------------------------------------------------------- ---------
% %
Occupied Occupied
Property Location Square Units June 30, March 31, Occupied
Feet 2003 2003
- ----------------------------------------------------------------------------------------------------------- --------
Mid-Atlantic
North Carolina
- ----------------------------------------------------------------
Village Apartments Winston
Salem 578,606 600 86% 84% 516
Mid-West
Missouri
- ----------------------------------------------------------------
Gate House, Holiday House, Tiger Village, Columbia 628,891 874 92% 95% 805
----------------------------------
Colony Apartments 1
Totals 1,207,497 1,474 90% 91% 1,321
==================================
1 As this property has tenants associated with the University of Missouri,
occupancy trends are correlated to semester sessions
48
Exhibit 99.2
Acadia Realty Trust Announces Second Quarter 2003 Operating Results;
Earnings from Continuing Operations up 15%; Raises Earnings Guidance
for 2003
NEW YORK--(BUSINESS WIRE)--July 28, 2003--Acadia Realty Trust
(NYSE: AKR - "Acadia" or the "Company"), a real estate investment
trust ("REIT") and owner and operator of shopping centers anchored by
grocery and value-oriented retail, today reported operating results
for the quarter and six months ended June 30, 2003.
Second Quarter 2003 Highlights
Financial Information
-- Diluted funds from operations ("FFO") of $0.23 per share in
2003, up 15% over 2002 FFO from continuing operations
-- Income from continuing operations of $0.09 per share in 2003,
up from $0.07 in 2002
-- Maintained conservative FFO payout ratio of 61%
-- 82% of portfolio debt is now fixed-rate
-- 43% debt to total market capitalization
-- Fixed-charge coverage in excess of 3.0 to 1
Portfolio Information
-- Shaw's supermarket open at the Newly Redeveloped Gateway
Shopping Center
-- Commenced redevelopment at Plaza 422 - Home Depot to replace
former Ames
-- Portfolio occupancy up 27 basis points over first quarter 2003
-- 12.5% increase in rents for new and renewal leases
Second Quarter Operating Results - FFO up 15% over 2002 from
Continuing Operations
FFO for the second quarter 2003 was $6.8 million, or $0.23 per
share on a fully diluted basis. This represented a 15% increase over
2002 FFO from continuing operations of $6.4 million, or $0.20 per
share. FFO from discontinued operations contributed an additional
$0.02 in second quarter 2002. FFO for the six months ended June 30,
2003 was $14.5 million, or $0.50 per share. This compares to FFO from
continuing operations of $0.54 for the same period in 2002, which
includes $0.13 of lease termination income received from a single
tenant. FFO from discontinued operations contributed an additional
$0.08 in 2002.
Net income for the second quarter 2003 was $2.4 million, or $0.09
per share on a fully diluted basis. This compares with income from
continuing operations for 2002 of $1.8 million, or $0.07 per share.
Including income from discontinued operations of $2.1 million, net
income for 2002 was $3.8 million, or $0.15 per share. Net income for
the six months ended June 30, 2003 was $5.9 million, or 0.23 per share
compared to 2002 net income of $10.3 million or $0.40 per share.
Included in 2002 is $3.8 million of lease termination income received
from a single tenant and $2.4 million in income from discontinued
operations, totaling $0.22 per share.
Outlook -Guidance for 2003 Increased
The Company currently forecasts its 2003 FFO will range from $0.92
to $0.95 per share. This compares to the previous 2003 forecast of
$0.88 to $0.92 per share. Management will discuss further details for
the 2003 forecast in the conference call to be conducted July 29,
2003.
Portfolio Activity - Occupancy Up - Redevelopment Plans for Two of
the Four Former Ames Locations Finalized
Second quarter occupancy increased 27 basis points over first
quarter 2003, from 87.4% for first quarter 2003 to 87.7% for the
second quarter 2003. Excluding the impact of the Ames closings, which
occurred during the fourth quarter of 2002, year-over-year occupancy
was up 110 basis points. Including the effect from the Ames closings
which represents 4.7% of the Company's portfolio occupancy, 2003
occupancy was down 3.6% over 2002 occupancy of 91.3%.
During the first quarter 2003, the Company executed new and
renewal leases totaling 98,000 square feet at an average increase in
rents of 12.5% on a cash basis.
Excluding the $455,000 effect from the Ames locations, same store
net operating income ("NOI") was up 1.5% second quarter 2003 over
2002. Including the impact from these closings, NOI declined $304,000,
or 3.0%.
Redevelopment and Re-anchoring of Former Ames locations
Acadia now has redevelopment/re-anchoring plans finalized for two
of the four former Ames locations in its portfolio. As previously
discussed, Home Depot has signed a lease to expand the former Ames
space at the Plaza 422 located in Lebanon, PA. During the second
quarter, demolition of the partially enclosed mall section of the
property was completed and construction of a 102,000 square foot Home
Depot is now underway with an expected opening in first quarter 2004.
The Company has also finalized the re-anchoring plan for the New
Loudon Shopping Center located in Latham, NY. A department store will
replace the former Ames at a 15% increase in base rent. Rent from the
new anchor is also anticipated to commence during the first quarter of
2004. In total, these two properties are expected to contribute $0.035
of incremental FFO for 2004. The Company has two remaining former Ames
locations which it currently forecasts will be re-anchored by 2005.
Shaw's Opens at the Newly Redeveloped Gateway Shopping Center
The de-malling and re-anchoring of the Gateway Shopping Center
located in South Burlington, VT, was substantially completed during
the second quarter 2003. The project, formerly a partially enclosed
mini-mall with an undersized Grand Union, is now a contemporary,
open-air community shopping center with a 72,000 square foot Shaw's
supermarket. Shaw's opened for business during the second quarter on
schedule. The Company anticipates this center, which is already 83%
occupied, will contribute $0.025 of FFO in 2003 and approximately
$0.035 for annual 2004 following the full lease-up of the remaining
15,000 square feet of newly constructed small shop space.
Other Portfolio Activity
Kmart assumed all five of its leases within Acadia's portfolio
effective with its reorganization in May 2003. All of these stores are
paying full rents with occupancy costs under 3% and average sales of
$176 per square foot. In addition, the Company has one Kmart store at
a joint venture property which was also assumed by Kmart.
Balance Sheet - Solid Financial Position
During the second quarter 2003, Acadia further solidified its
balance sheet. The Company has increased the fixed-rate component of
its portfolio mortgage debt to 82%, which includes its pro-rata share
of joint venture debt. Further evidencing the strength of the
Company's balance sheet are conservative financial ratios as well as
sufficient in-place working capital to continue to fund all of its
foreseeable near-term internal and external capital requirements:
-- Dividend payout ratio for the quarter was 61% of FFO
-- Fixed-charge ratio was greater than 3.0 times (EBITDA /
interest expense plus preferred distributions)
-- Blended cost of Acadia's portfolio debt was 6.0%
-- Debt to total market capitalization at June 30, 2003 was 43%
compared to 49% as of year-end 2002
-- Acadia currently has $34 million of cash on hand at
quarter-end with an additional $45 million available under
current credit facilities
Management Comments
Commenting on the results for the quarter, Kenneth Bernstein,
President and CEO, stated, "We are quite pleased with our second
quarter results. Our earnings growth, balance sheet strength,
portfolio performance and progress in our redevelopment programs are
all strong indicators that our key initiatives are on track.
Notwithstanding the continuing macro uncertainties in our economy, we
are excited by the potential for strong internal growth - driven by
our current redevelopment pipeline - coupled with the opportunity for
external growth from our acquisition joint venture. This combination
should enable us to continue to create strong shareholder value going
forward."
Investor Conference Call
Kenneth Bernstein, President and CEO, and Michael Nelsen, Sr. Vice
President and CFO, will conduct a conference call July 29, 2003 at 12
noon EST to review the Company's earnings and operating results. The
live conference call can be accessed by dialing 888-339-2688
(internationally 617-847-3007). No passcode is required.
The call will also be webcast and can be accessed in a listen-only
mode at Acadia's web site at www.acadiarealty.com. If you are unable
to participate during the live webcast, the call will be archived and
available on Acadia's website. Alternatively, to access the replay by
phone, dial 888-286-8010 (internationally 617-801-6888). The passcode
will be 43055996. The phone replay will be available through Tuesday,
August 12, 2003.
Acadia Realty Trust, headquartered in White Plains, NY, is a fully
integrated and self-managed real estate investment trust which
specializes in the acquisition, redevelopment and operation of
shopping centers which are anchored by grocery and value-oriented
retail. Acadia currently owns (or has interests in) and operates 62
properties totaling approximately nine million square feet, located
primarily in the Eastern United States.
Certain matters in this press release may constitute
forward-looking statements within the meaning of federal securities
law and as such may involve known and unknown risk, uncertainties and
other factors which may cause the actual results, performances or
achievements of Acadia to be materially different from any future
results, performances or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements speak only
as of the date of this document. Acadia expressly disclaims any
obligation or undertaking to release publicly any updates or revisions
to any forward-looking statements contained herein to reflect any
change in Acadia's expectations with regard thereto or change in
events, conditions or circumstances on which any such statement is
based.
The Company considers funds from operations ("FFO") as defined by
the National Association of Real Estate Investment Trusts ("NAREIT")
to be an appropriate supplemental disclosure of operating performance
for an equity REIT due to its widespread acceptance and use within the
REIT and analyst communities. FFO is presented to assist investors in
analyzing the performance of the Company. However, the Company's
method of calculating FFO may be different from methods used by other
REITs and, accordingly, may not be comparable to such other REITs. FFO
does not represent cash generated from operations as defined by
generally accepted accounting principles ("GAAP") and is not
indicative of cash available to fund all cash needs, including
distributions. It should not be considered as an alternative to net
income for the purpose of evaluating the Company's performance or to
cash flows as a measure of liquidity.
For more information visit Acadia Realty Trust's Web site at
www.acadiarealty.com
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
For the Quarters and Six Months ended June 30, 2003 and 2002
(amounts in thousands, except per share data)
STATEMENTS OF INCOME
For the quarters For the six months
Revenues ended June 30, ended June 30,
2003 2002 2003 2002
------- ------- ------- -------
Minimums rents $12,618 $11,892 $24,715 $23,721
Percentage rents 95 122 389 441
Expense reimbursements 2,896 2,741 6,613 5,266
Lease termination income -- 145 -- 3,945
Other property income 161 144 312 309
Other 695 979 2,561 1,867
------- ------- ------- -------
Total revenues 16,465 16,023 34,590 35,549
------- ------- ------- -------
Operating expenses
Property operating 3,389 2,668 7,743 5,383
Real estate taxes 1,812 2,170 4,009 4,090
General and administrative 2,449 2,802 5,145 5,127
Depreciation and amortization 3,888 3,673 7,489 7,258
------- ------- ------- -------
Total operating expenses 11,538 11,313 24,386 21,858
------- ------- ------- -------
Operating income 4,927 4,710 10,204 13,691
Equity in earnings of unconsolidated
partnerships 595 106 1,148 224
Interest expense (2,805) (2,665) (5,531) (5,426)
Gain on sale -- -- 1,212 1,530
Minority interest (274) (381) (1,127) (2,099)
------- ------- ------- -------
Income from continuing operations 2,443 1,770 5,906 7,920
------- ------- ------- -------
Discontinued operations:
Operating income from discontinued
operations -- 367 -- 891
Gain on sale of properties -- 1,987 -- 1,832
Minority interest -- (302) -- (355)
------- ------- ------- -------
Income from discontinued operations -- 2,052 -- 2,368
------- ------- ------- -------
Net income $ 2,443 $ 3,822 $ 5,906 $10,288
======= ======= ======= =======
Net income per Common Share - Basic $ .09 $ .15 $ .23 $ .40
======= ======= ======= =======
Weighted average Common Shares -
Basic 26,387 24,775 25,885 25,571
======= ======= ======= =======
Net income per Common Share -
Diluted $ .09 $ .15 $ .23 $ .40
======= ======= ======= =======
Weighted average Common Shares -
Diluted 27,176 25,253 26,558 26,015
======= ======= ======= =======
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
For the Quarters and Six Months ended June 30, 2003 and 2002
(amounts in thousands, except per share data)
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS (a)
For the quarters For the six months
ended June 30, ended June 30,
2003 2002 2003 2002
------ ------- ------- -------
Net income $2,443 $ 3,822 $ 5,906 $10,288
Depreciation of real estate and
amortization of leasing costs:
Wholly owned and consolidated
partnerships 3,571 3,801 6,970 8,140
Unconsolidated partnerships 551 159 1,010 316
Income attributable to minority
interest in Operating Partnership 203 588 641 1,704
Gain on sale of properties -- (1,987) -- (1,832)
------ ------- ------- -------
Funds from operations $6,768 $ 6,383 $14,527 $18,616
====== ======= ======= =======
Funds from operations per share -
Basic (b) $ .24 $ .22 $ .51 $ .62
====== ======= ======= =======
Funds from operations per share -
Diluted (b) $ .23 $ .22 $ .50 $ .62
====== ======= ======= =======
Funds from operations per share -
Continuing operations - Diluted
(b) $ .23 $ .20 $ .50 $ .54
====== ======= ======= =======
ACADIA REALTY TRUST AND SUBSIDIARIES
Financial Highlights
As of June 30, 2003 and December 31, 2002
(amounts in thousands, except per share data)
SELECTED BALANCE SHEET INFORMATION
June 30, December 31,
2003 2002
------------------------------------
Cash and cash equivalents $34,194 $45,168
Rental property, at cost 423,397 413,878
Total assets 407,306 410,935
Mortgage notes payable 199,691 202,361
Total liabilities 222,735 224,487
Fixed rate debt: (c) 157,075 145,236
% of outstanding debt 79 % 72 %
Weighted average
interest rate 6.6 % 6.8 %
Variable rate debt $42,616 $57,125
% of outstanding debt 21 % 28 %
Weighted average
interest rate 3.1 % 3.3 %
Total weighted average interest
rate 5.9 % 5.8 %
Notes:
(a) Consistent with the NAREIT definition, the Company defines FFO as
net income (computed in accordance with GAAP), excluding gains (or
losses) from sales of depreciated property, plus depreciation and
amortization, and after adjustments for unconsolidated
partnerships and joint ventures. Included in FFO for the six
months ended June 30, 2003 and 2002 are gains from the sale of
land of $659 and $957, respectively (amounts are net of minority
interests).
(b) Assumes full conversion of a weighted average 2,074 and 3,648 OP
Units into Common Shares for the quarters ended June 30, 2003 and
2002, and 2,564 and 4,012 OP Units into Common Shares for the six
months ended June 30, 2003 and 2002.
(c) Fixed-rate debt includes $86,910 of notional principal fixed
through swap transactions. Conversely, variable-rate debt excludes
this amount.
CONTACT: Acadia Realty Trust
Jon Grisham, 914/288-8142
