presentation to goldman, sachs & co. annual real estate / reit conference denver, colorado
DESCRIPTION
Presentation to Goldman, Sachs & Co. Annual Real Estate / REIT Conference Denver, Colorado. May 18, 2004. Founded in 1939 Went public in 1956 Began operating as REIT on January 1, 1998 Three lines of business. $201.0. $291.4. $843.2. The Rouse Company Revenue Contribution. - PowerPoint PPT PresentationTRANSCRIPT
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Presentation to
Goldman, Sachs & Co.Annual Real Estate / REIT ConferenceDenver, Colorado
May 18, 2004
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Founded in 1939
Went public in 1956
Began operating as REIT on January 1, 1998
Three lines of business
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CommunityDevelopment22%
Retail Centers63%
Office and OtherProperties
15% $291.4
$843.2
$201.0
The Rouse CompanyRevenue Contribution
Year-end 2003
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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
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$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
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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
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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
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1966 Columbia Town CenterLong-term Value Creation Begins
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2004 Columbia Town CenterLong-term Value Creation Still in Progress
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Summerlin
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Woodlands Downtown
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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
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Bridgelands9,000 Acre Master-Planned Community
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Park Meadows
Average in-line sales exceed $500 / sf
Average household income of $110,000
18 million visitors per year
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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
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* 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
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* 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
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* 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
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Williams-SonomaWilliams-Sonoma Restoration HardwareRestoration Hardware
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J. CrewJ. Crew Gap KidsGap Kids
Home to quality, reputation retailers
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Crate & BarrelCrate & Barrel Abercrombie & FitchAbercrombie & FitchTalbotsTalbots
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Fabulous DiningFabulous DiningOptionsOptions
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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
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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.
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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%.
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Well Positioned for Future Growth