Presentation to Goldman, Sachs & Co. Annual Real Estate / REIT Conference Denver, Colorado
description
Transcript of Presentation to Goldman, Sachs & Co. Annual Real Estate / REIT Conference Denver, Colorado
Presentation to
Goldman, Sachs & Co.Annual Real Estate / REIT ConferenceDenver, Colorado
May 18, 2004
Founded in 1939
Went public in 1956
Began operating as REIT on January 1, 1998
Three lines of business
CommunityDevelopment22%
Retail Centers63%
Office and OtherProperties
15% $291.4
$843.2
$201.0
The Rouse CompanyRevenue Contribution
Year-end 2003
Park Meadows Denver, COBridgewater Commons Bridgewater, NJFashion Show Las Vegas, NVOakbrook Center Oakbrook, ILPerimeter Mall Atlanta, GAWater Tower Place Chicago, IL
Rouse presently owns and manages:
Retail portfolio of 37 retail centers
Six large-scale, mixed-use projects
Four community shopping centers
The portfolio includes some of the premier retail properties in the United States:
Premier Properties
$280.0
$327.2
$365.3 $368.3 $375.7
$469.8
$545-$555
$508.9
$100
$600
1997 1998 1999 2000 2001 2002 2003 2004Est.
2004 average sales per square foot were $439; 93% average occupancy
Retail Centers Net Operating Income
1 Excludes urban centers, projects with less than two anchors, and centers open less than two years2 Comparable tenants, excluding spaces >10,000 s.f.
2004 Sales per Square Foot 2
Center Ranking
A+ or A
B
C
RegionalCenters 1
2004 AverageOccupancy
% 2004 NetOperating Income
$ 489
$ 357
$ 286
94 %
94 %
91 %
73 %
24 %
3 %
Rouse Regional CentersKey Performance Measures
Community DevelopmentGeographic Diversity
SummerlinLas Vegas, NevadaSize: 22,500 acres
Saleable acres: 6,660
WoodlandsHouston, TexasSize: 27,000 acresSaleable acres: 5,100
ColumbiaColumbia, MarylandSize: 15,300 acresSaleable acres: 1,500
BridgelandsHouston, Texas
Size: 9,000 acresSaleable acres: 6,700
1966 Columbia Town CenterLong-term Value Creation Begins
2004 Columbia Town CenterLong-term Value Creation Still in Progress
Summerlin
Woodlands Downtown
Development of Planned Communities
From 1997 - 2003
Land sales have generated almost $500 million of net operating income.
Current value of land assets has more than doubled.
Rouse recently began development on the 9,000 acre master-planned community of Bridgelands, Texas.
Net Operating Income
$49.2 $48.0$51.6
$69.9
$78.0$86.2
$123.9
$0
$125
1997 1998 1999 2000 2001 2002 2003
Bridgelands9,000 Acre Master-Planned Community
Park Meadows
Average in-line sales exceed $500 / sf
Average household income of $110,000
18 million visitors per year
Total mall sales
Mall shop sales per square foot
Sales volume of anchor tenants
Average income within five miles
Quality of in-line tenancy
Mall competitive position in market
Portfolio EvaluationRationale and Criteria
* Excludes urban centers, projects with less than two anchors, and centers open less than one year.
Total RegionalCenters*
Mall Ranking
A+ or A B CNumber Percent Number Percent Number Percent
1993 Portfolio51 Centers
5 10% 13 25% 33 65%
1993 Rouse Regional Centers
* Excludes urban centers, projects with less than two anchors, and centers open less than one year.
Total RegionalCenters*
Mall Ranking
A+ or A B CNumber Percent Number Percent Number Percent
Current Portfolio31 Centers
19 61% 10 32% 2 7%
1993 Portfolio51 Centers
5 10% 13 25% 33 65%
Current Rouse Regional Centers
* Excludes urban centers, projects with less than two anchors, and centers open less than one year.
** Includes current and recently opened development projects.
Total RegionalCenters*
2007 Portfolio**34 Centers
Mall Ranking
A+ or A B CNumber Percent Number Percent Number Percent
22 65% 12 35% --
Current Portfolio31 Centers
19 61% 10 32% 2 7%
1993 Portfolio51 Centers
5 10% 13 25% 33 65%
2007 Rouse Regional Centers
Williams-SonomaWilliams-Sonoma Restoration HardwareRestoration Hardware
J. CrewJ. Crew Gap KidsGap Kids
Home to quality, reputation retailers
Crate & BarrelCrate & Barrel Abercrombie & FitchAbercrombie & FitchTalbotsTalbots
Fabulous DiningFabulous DiningOptionsOptions
Park MeadowsOne of our Most Productive Projects
1998 in-line space generated $412 / sf
Sales have grown at compound annual growth rate of better than 5%
98% - 99% average occupancy since 1999
Park MeadowsStrong Financial Results
NOI has grown at compound annual growth rate of better than 4%
More than ½ of inline space at opening continues in operation today. Much of this space will be up for renewal in 2006 or sooner.
Excellent Prospects for Higher Incremental Rent at Park Meadows
Park Meadows current total rent to sales ratio: 12%.
Rouse’s average rent to sales ratio: 14% - 15%
Rouse’s higher quality retail assets rent to sales ratio: 16% - 17%.
Well Positioned for Future Growth