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The Supermarket REIT - Equity One_ Inc

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					The Supermarket REIT
   www.equityone.net

    September 2003
Forward Looking Statements

 Certain matters discussed in this presentation constitute forward-looking statements within the
 meaning of the federal securities laws. Although Equity One believes that the expectations reflected
 in such forward-looking statements are based upon reasonable assumptions, it can give no
 assurance that these expectations will be achieved. Factors that could cause actual results to differ
 materially from current expectations include changes in macro-economic conditions and the demand
 for retail space in Florida, Texas, Georgia, and the other states in which Equity One owns
 properties; the continuing financial success of Equity One's current and prospective tenants;
 continuing supply constraints in Equity One’s geographic markets; the availability of properties for
 acquisition; the success of its efforts to lease up vacant properties; the effects of natural and other
 disasters; the ability of Equity One to successfully integrate the operations and systems of acquired
 companies and properties; and other risks, which are described in Equity One's filings with the
 Securities and Exchange Commission.
Mission Statement



        Equity One seeks to become a
      dominant supermarket-anchored
             shopping center REIT
              in its target markets


                                       3
Company Overview

 • Self-managed supermarket-anchored shopping center REIT

 • 181 properties; 19.6 million square feet

 • Focused on 12 southern states

 • 64.5 million shares outstanding

 • $1.1 billion equity market capitalization

 • $1.9 billion total market capitalization

 • Baa3 / BBB- investment grade bond ratings

                                                            4
Investment Highlights
•   Desirable asset class           Supermarket-anchored shopping centers
                                    comprise 72% of our GLA

•   Excellent market demographics   Florida, Texas & Georgia outperform the U.S.

•   Strong organization, systems    Decades of experience; Integrated operating platform

•   Proven growth capability        $140 million of property acquisitions in 2003
                                    $763 million acquisition of IRT in 2003
                                    $ 70 million of property acquisitions in 2002
                                    $429 million of acquisitions of CEFUS & UIRT in 2001

•   Embedded upside potential       2.2 million square feet available to lease

•   Wall Street sponsorship         Followed by 7 research analysts

•   Attractive valuation @ $17.50   11.9x 2003 consensus FFO of $1.47
                                    11.1x 2004 consensus FFO of $1.57
                                     6.4% dividend yield

•   Significant inside ownership    Management & affiliates own 44% of shares       5
181 Properties in 12 Southern States




  125 Supermarket anchored centers   9 Drug store anchored centers
   40 Retail anchored centers        7 Other properties
                                                                     6
72% of GLA is in Supermarket-Anchored Centers

   • Necessity items & services
   • “Recession-proof” & “internet-proof”
   • Low tenant turnover
   • Sustainable & growing cash flow from creditworthy tenants




                                                                 7
Broad Tenant Diversification
                            Number                   Annualized     % of Aggregate
                              of      GLA (Square   Minimum Rent     Annualized
Tenant                      Leases       Feet)        at 6/30/03    Minimum Rent

Publix                          40      1,734,381     $12,531,057             8.6%
Kroger                          14        740,617       5,417,801             3.7%
Winn Dixie                      16        709,888       4,526,751             3.1%
Wal-Mart                        11        834,994       3,687,045             2.5%
K mart                           7        611,416       3,254,442             2.2%
Blockbuster                     26        156,429       2,319,689             1.6%
Food Lion / Kash N' Karry        8        297,802       1,948,574             1.3%
Eckerd                          26        251,428       1,916,090             1.3%
H.E. Butt Grocery                3        181,108       1,793,855             1.2%
Safeway / Randall's              5        250,734       1,616,186             1.1%

Subtotal                       156      5,768,797     $39,011,490            26.7%
Remaining Tenants             2,935    10,438,556     107,331,681            73.3%
Total                         3,091    16,207,353    $146,343,171           100.0%
 Data as of 6/30/03                                                             8
High Growth Markets
 Florida, Texas & Georgia will outperform the national averages through 2005

                           2.5%


                           2.0%
        Per annum growth




                           1.5%


                           1.0%


                           0.5%


                           0.0%
                                       Population              Employment        Per Capita Retail Sales
                                               United States   Texas   Florida   Georgia
                              Source: US Census Bureau


                                                                                                           9
Florida is our Largest State
                                                                                   Jacksonville

• 80 properties                 Pensacola
                                                      Tallahassee

• 8.8 million sf
      • 45% of total GLA
                                                                                    Orlando
• 92.6% occupancy                                         Tampa/
                                                      St. Petersburg



      Breakdown                                                                                   West Palm Beac


      63    Supermarket anchored            7,577,666 sf                                           Ft. Lauderdale
                                                                       Ft. Myers
                                                                                                   Miami
       4    Drug store anchored              462,810 sf
       8    Other retail anchored            745,438 sf
       1    Mini-storage                      52,880 sf
       4    Retail developments

                                                                                                     10
Texas is our Second Largest State

• 32 properties
• 3.1 million sf
                                                                  Dallas
      • 16% of total portfolio GLA
• 81.3% occupancy


                                                    San Antonio

      Breakdown                                                            Houston


      17    Supermarket anchored     1,497,511 sf
      15    Other retail anchored    1,612,948 sf



                                                                                11
Georgia is our Third Largest State

• 24 properties
• 2.9 million sf
      • 15% of total portfolio GLA          Atlanta                    Augusta


• 90.3% occupancy
                                                      Macon

                                                                                 Savannah


      Breakdown                                           Fitzgerald


      17    Supermarket anchored     2,375,184 sf
       6    Other retail anchored     569,910 sf
       1    Retail development



                                                                                       12
Solid Q2 2003 Results
  • Merger Integration is Complete
     • Implemented regional operating structure
     • Completed all accounting, MIS and HR milestones
  • Strengthened Balance Sheet
     • Sold 3 million shares at $16.22 net to Company
  • Advanced Key Developments
     • Huntcrest / Plaza Alegre / Skylake / Crossroads Square
  • Accelerated Leasing Activity Going into Q3
     • 335K square feet of the June activity is not reflected in 6/30 results
     • Created over $2.0MM of incremental AMR
  • 2.1% Same Store NOI Growth (excluding termination fees)
  • $0.36 per share FFO

                                                                            13
Lease Rollovers are Moderate and Balanced

              4,000,000                        Supermarkets

                                               Other Anchors
              3,500,000
                                               Local Tenants

              3,000,000



              2,500,000
Square Feet




              2,000,000



              1,500,000



              1,000,000



               500,000



                     0
                          2003   2004   2005   2006   2007     2008   2009   2010   2011   2012 Thereafter




                   No more than 12% of AMR rolls in any of the next 5 years
                                                                                                             14
External Growth Strategy – Five Components
  1) Individual property acquisitions
        • Closed $140MM in 2003 year-to-date

  2) Portfolios

  3) Companies
       • Closed $763 million acquisition of IRT in 2003
       • Closed 2 transactions in 2001 totaling $425 million
         • 2002 yields of 10.2% (CEFUS) and 11.9% (UIRT)

  4) Developments and Redevelopments
       Skylake               Walden Woods              CVS Plaza
       Crossroads Square Salerno Village               Oakbrook
       Cashmere              Homestead                 Westridge
  5) Recycle capital to increase supermarket anchor base
       • $14.1 million of dispositions 2003 YTD with $1.9 million of gains
       • $32.1 million of dispositions in 2002 with $9.3 million of gains    15
Equity One - Company Timeline
   Year   Event                                              Properties

   1992   Founded by Chaim Katzman / Gazit Inc.                      2
   1994   Doron Valero joined as Chief Operating Officer             8
   1995   Elected REIT Status                                       10
   1998   $52 million Initial Public Offering                       23
   1999   Howard Sipzner joined as Chief Financial Officer          28
   2000   Alony Hetz $32 million Equity Private Placement           30
   2001   $281 million CEFUS Acquisition                            61
          $148 million UIRT Acquisition                             84
   2002   $46 million Equity Offering                               86
   2003   $763 million IRT Acquisition                             180
          $49 million Equity Offering                              181
                                                                          16
Senior Management Team
• Average over 20 years real estate experience
• Management depth allows for continued expansion
                                                     Chaim Katzman
                                                     Chairman & CEO




                              Doron Valero          Arthur Gallagher             Howard Sipzner
                          President & COO         Secretary & Gen. Counsel            CFO




               Development/       Asset       Property                       Accounting/    Investor
Acquisitions                                                  Leasing
               Construction     Management   Management                       Systems       Relations



                                                                                                  17
Equity One Ownership

                  61.7%      Other Officers &
                                Directors
                                           Chaim Katzman
                                  1.8%
            First Capital                       1.3%
               18.5%                                       Gazit-Globe
                                                             22.8%



     Alony Hetz
        7.8%

                                  Public Float
                                    47.8%

          Approximately 31.5 million shares of public float
                                                                         18
Board of Directors
INSIDE DIRECTORS                              INDEPENDENT DIRECTORS
   Chaim Katzman (1)                            Noam Ben-Ozer (2)
      • Chairman and CEO of EQY                    • Co-founder & Chairman of iPhrase
                                                     Technologies, Inc.
   Doron Valero (1)
                                                Robert L. Cooney (2), (3)
      • President and COO of EQY
                                                   • Partner of Cooney, Schroeder & Co.
   Dori Segal                                   Patrick L. Flinn (2)
      • President & CEO of First Capital           • Private Investor
        Realty Inc.
                                                Nathan Hetz
                                                   • CEO & principal shareholder of Alony
                                                     Hetz Properties & Investments, Ltd.
                                                Peter Linneman (1), (3)
                                                   • Professor of Real Estate, Finance &
                                                     Public Policy at the University of
   Committees                                        Pennsylvania, Wharton School of
                                                     Business
   (1) Executive (2) Audit (3) Compensation
                                                Dr. Shaiy Pilpel (2), (3)
                                                   • President of Patten Model, Ltd.
                                                                                            19
Conservative and Flexible Financial Strategy
 • Maintain a strong and diversified equity base

 • Increase FFO and dividend while decreasing payout ratio

 • Use moderate leverage emphasizing fixed rate and unsecured debt

 • Pursue an upgrade from Baa3/BBB- to Baa2/BBB

 • Continuous improvement of key ratios
     • Leverage
     • Interest and fixed charge coverage
     • Operating margins

 • Transparent and timely financial reporting



                                                                     20
Balance Sheet Snapshot
  ($ in millions)                                                         06/30/03
Credit Facility Size / Usage                                             $345 / $99 ($183 as of 8/31/03)
Total Debt                                                                    $690
    Fixed Rate / Floating                                                86% / 14% (only 4% is not hedged)
Debt to Total Market Capitalization                                            38%
EBITDA / Interest Coverage Ratio                                             3.1
Moody’s / S&P Rating                                                Baa3 / BBB-
                                           Loan Maturity Schedule as of 06/30/03
                                                                                                   Balloon
                                                                                                   Unsecured Notes
               $100
                                                                                                   Amortization

                $80
  $ Millions




                $60


                $40


                $20


                $0                                                                                                   21
                      2003   2004   2005     2006   2007   2008   2009      2010     2011   2012      After
Equity One Debt Summary as of 6/30/03
Type                        Amount   Pricing   Term / Duration


Unsecured Credit Facility   $99MM    L + 100   2/12/06 + 1 year extension


Unsecured Notes             $150MM    7.55%    4.5 years average life


Secured Mortgage Debt       $420MM    7.43%    6.8 years average life


   Sub-total                $669MM


Fair Market Value Premium $ 21MM


   Total Debt               $690MM
                                                                            22
Wells Fargo Unsecured Credit Facility

Facility Size                                              $340MM
Facility Balance                            as of 6/30/03 $ 98MM
                                            as of 9/01/03 $183MM
Pricing (@ Baa3 / BBB-)                           LIBOR + 100 bps


Key Covenants                                                 Test
  Debt : GAV (EBITDA @ 9.125%)                               < 60%
  Unencumbered Pool (NOI @ 9.25%) : Unsecured Liabilities > 1.667 (1.70 after Feb. 2004)
  Secured Debt Limitation : GAV                              < 40%
  Unencumbered NOI : Unsecured Interest                     > 2.00x
  EBITDA : Interest                                         > 1.90x
  EBITDA : Fixed Charges                                    > 1.65x



                                                                                      23
Key Indenture Covenants (1995 and 1998 Series)


Total Debt : Total Assets                           < 60%


Secured Debt : Total Assets                         < 40%


Unencumbered Assets : Unsecured Debt               > 150%


Consolidated Income available for Debt Service :
   Annual Service Charge                           > 1.50x




                                                             24
Increasing Dividend, Declining Payout Ratio
                         $1.70                                                                                                           95%
                                       9 1%
                         $1.60                                                                                                 $ 1.5 7
                                                      88%                                                                                90%
                         $1.50                                                                                       $ 1.4 7
   Dividends per share




                         $1.40                                   82%                                   $ 1.3 8                           85%




                                                                                                                                               FFO Payout Ratio
                                                                                           $ 1.3 4
                                                                               $ 1.3 1
                         $1.30
                                                                $ 1.2 5                                 78%
                                                                                                                                         80%
                         $1.20                                                  79%         79%
                                                     $ 1.14                                                                $ 1.12
                                                                                                                 $ 1.10
                         $1.10                                            $ 1.0 4     $ 1.0 6     $ 1.0 8
                                                                                                                               7 1%
                                                                                                                                         75%
                                      $ 1.0 4               $ 1.0 2
                                                $ 1.0 0                                                             75%
                         $1.00   $ 0 .9 5
                                                                                                                                         70%
                         $0.90
                         $0.80                                                                                                           65%
                                      1997          1998       1999           2000*       2001        2002         2003** 2004***

                                                          Dividend                  FFO           FFO Payout Ratio

                                 *     2000 dividend excludes $0.06 special dividend
                                 **    2003 FFO per analyst consensus; $0.28 dividend as of 9/30/03 annualized
                                 *** 2004 FFO per analyst consensus; $0.28 dividend annualized                                                                    25
Wall Street REIT Analyst Coverage
     Firm       Target       Opinion        2003     2004      Date

BB&T              $15.00   Strong Buy        $1.46            10-31-02

Bear Stearns       18.50   Outperform         1.48    $1.58   08-01-03

JP Morgan                  Neutral            1.46     1.53   07-31-03

Legg Mason         16.00   Hold               1.46     1.56   07-31-03

McDonald           19.00   Buy                1.48     1.60   08-05-03

Piper Jaffray      15.75   Market Perform     1.47            04-21-03

Raymond James      17.25   Outperform         1.46     1.56   05-29-03

Consensus         $16.92                     $1.47    $1.57

                                                                      26
Why Equity One?
• Desirable asset class

• Excellent market demographics

• Strong organization, systems

• Proven growth capability

• Embedded upside potential

• Flexible and conservative balance sheet

• Wall Street sponsorship

• Attractive valuation
                                            27
The Supermarket REIT
   www.equityone.net

    September 2003

				
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