Taubman Template
Total Page：16
File Type：pdf, Size：1020Kb
Taubman Centers, Inc. Investor Presentation September 2018 Taubman Centers, Inc. (NYSE: TCO) A real estate company founded in 1950, with 68 years in operation First publicly traded UPREIT – IPO 1992 Total market capitalization over $10 billion Joined the S&P 400 MidCap Index in January 2011 We own, operate and develop the best retail assets Our portfolio of malls is the most productive in the U.S. publicly held mall sector Currently own and/or operate 26 retail assets, with 1 project under development 2 Fair Oaks, Va. The Mall at Millenia, Fla. The Mall at Short Hills, N.J. Country Club Plaza, Mo. Beverly Center, Calif. Cherry Creek Shopping Center, Colo. City Creek Center, Utah Dolphin Mall, Fla. We Own, Operate and Develop the Best Retail Assets The Gardens on El Paseo, Calif. Great Lakes Crossing Outlets, Mich. Starfield Hanam, South Korea The Mall of San Juan, Puerto Rico International Plaza, Fla. The Mall at University Town Center, Fla. Waterside Shops, Fla. Westfarms, Conn. We Have the Industry's Premier Portfolio With Five Key Success Factors that Drive Productivity We Strategically Enhance Our Portfolio through: U.S. Development, Taubman Asia, Redevelopment, Acquisitions & Dispositions While Emphasizing a Strong Balance Sheet To Create Significant Shareholder Value 4 We Operate the Best Collection of Retail Assets Industry’s Premier Portfolio South 23 China 18 Korea 10 17 4 20 3 27 16 19 5 8 Macau 2 Asia 6 24 Properties 1 9 11 12 26 Owned Properties 13 14 1 Beverly Center 10 Great Lakes Crossing Outlets 18 Starfield Hanam Los Angeles, Calif. Auburn Hills, Mich. Hanam, South Korea 21 7 2 Cherry Creek Shopping Center 11 The Mall at Green Hills 19 Sunvalley Shopping Center 22 Denver, Colo. Nashville, Tenn. Concord, Calif. 25 3 CityOn.Xi’an 12 International Market Place 20 Twelve Oaks Mall 15 Xi’an, China Waikiki, Honolulu, Hawaii Novi, Mich. Managed/Leased Centers – 4 CityOn.Zhengzhou 13 International Plaza 21 The Mall at University No Ownership Development Properties Zhengzhou, China Tampa, Fla. Town Center Sarasota, Fla. 5 City Creek Center 14 The Mall at Millenia 24 The Boulevard at Studio City 27 Starfield Anseong Salt Lake City, Utah Orlando, Fla. 22 Waterside Shops Macau, China Anseong, South Korea Naples, Fla. 6 Country Club Plaza 15 The Mall of San Juan 25 Miami Worldcenter Kansas City, Mo. San Juan, Puerto Rico 23 Westfarms Miami, Fla. West Hartford, Conn. 7 Dolphin Mall 16 The Mall at Short Hills 26 The Shops at Belmond Miami, Fla. Short Hills, N.J. Charleston Place 8 Fair Oaks 17 Stamford Town Center Charleston, S.C. Fairfax, Va. Stamford, Conn. 9 The Gardens on El Paseo Palm Desert, Calif. 5 Industry’s Premier Portfolio The Best Assets Have Significantly Greater Value US Mall Distribution by Quality 169 140 111 117 119 116 94 99 58 37 44 A++ A+ A A- B+ B B- C+ C C- D Taubman’s portfolio of 20 assets(1) average between A+ and A quality. Roughly 78% of mall asset value is held in ‘A’ malls 23% 20% 21% 14% 10% 7% 3%3% Percent of Industry Value B quality malls, which represent 39% of all malls, account for 20% of value B A++ quality malls, which A CD represent 3.4% of all malls, C quality malls, which represent 30% of account for 23% of all value all malls, account for 3% of value D quality malls, which represent 4% of malls, account for less than 0.1% of value Source: Green Street Advisors. (2018) Annual Grade Review. Grades are based on merchandise mix, productivity, location, condition/appeal and other factors. Note: (1) Excludes Taubman Asia assets, as the Green Street only includes U.S. assets in their database. 6 Industry’s Premier Portfolio The Best Assets Are the Most Productive Highest Portfolio Sales Highest Average Rent Per Square Foot(1)(3) Per Square Foot(2)(3) (June 30, 2018) (June 30, 2018) TCO $845 TCO $61.91 MAC $692 MAC $58.84 SPG $646 PEI $485 SPG $53.84 SKT $391 CBL $32.64 WPG $377 WPG $27.49 CBL $376 $0 $200 $400 $600 $800 $1,000 $0 $10 $20 $30 $40 $50 $60 $70 Source: Company Filings and Supplementals, Company Quarterly Earnings Conference Calls, Taubman Analysis. Note: (1) Typically excludes all non-comparable centers, anchors, temporary tenants and 10,000+ sf tenants. (2) PEI and SKT are excluded as they do not report Avg. Rent Per Square Foot on a comparable basis. (3) TCO amounts represent U.S. comparable centers only. Ticker Identification: TCO – Taubman Centers, Inc., MAC – The Macerich Company, SPG – Simon Property Group, Inc., PEI – Pennsylvania Real Estate Investment Trust, SKT – Tanger Factory Outlet Centers, Inc., CBL – CBL & Associates Properties, Inc., WPG –Washington Prime Group, Inc. 7 We Have the Industry's Premier Portfolio With Five Key Success Factors that Drive Productivity We Strategically Enhance Our Portfolio through: U.S. Development, Taubman Asia, Redevelopment, Acquisitions & Dispositions While Emphasizing a Strong Balance Sheet To Create Significant Shareholder Value 8 Productivity Five Key Success Factors The best retail assets have five key success factors that drive productivity, ultimately resulting in NOI and FFO growth. Omnichannel Complementary Premier In-Line Best Demographics Tenants Best Locations High Quality Anchors & Department Stores Best Retail Assets Sales Productivity & Rent Growth NOI FFO Growth Growth 9 Productivity We Have the Best Locations Highest Concentration of Asset Value in Top U.S. 50 Markets 100% 90% 80% 70% 60% 50% 89% 40% 82% 80% 30% 63% 60% 47% 20% 10% 25% 0% TCO MAC SPG GGP PEI WPG CBL Source: Green Street Advisors. U.S. Mall Outlook 2018, Mall REIT Asset Value Concentration by Market. Leading retailers and emerging concepts choose to showcase their brand in the best markets and highest quality assets 10 Productivity With Industry-Leading Demographics U.S. Mall REIT Demographics – 15 Mile Radius Median Household Income Average Household Income TCO $79,583 TCO 102,637 SPG $72,720 SPG 93,663 PEI $72,633 PEI 92,299 MAC $71,732 MAC 91,941 GGP $67,571 GGP 86,725 WPG $60,100 WPG 76,992 CBL $58,452 CBL 74,991 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $0 $20,000 $40,000 $60,000 $80,000$100,000$120,000 Population % of Household Earnings > $100K MAC 2,365,786 TCO 34.6% TCO 1,670,468 SPG 32.1% PEI 1,451,252 PEI 32.0% SPG 1,415,527 MAC 31.2% GGP 1,271,894 GGP 29.7% WPG 761,512 WPG 25.2% CBL 495,314 CBL 25.1% 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Source: Evercore ISI Research Reports dated March 13, 2018. © Copyright 2018. Evercore Group L.L.C. All rights reserved. 11 Productivity Complementing Our Retailer’s Omnichannel Strategy Successful retailers understand that a combination of both physical and digital channels best meets their customer needs Retailer’s Physical locations are an Physical omnichannel locations eCommerce important distribution strategy channel that reduce order Retailer’s fulfillment and customer Omnichannel acquisition costs, while Strategy improving website traffic eCommerce and brand recognition Taubman’s “A” quality portfolio complements retailer's omnichannel Internet only retailers are moving into physical stores in high- strategy by positioning quality malls as the omnichannel strategy grows in the their brand among high- modern retail landscape end, productive retailers in the best markets 12 Productivity Attracting the Premier Brands Brands that have chosen a Taubman “Online” retailers that Center as their first U.S. Mall location are now tenants in Taubman Centers 13 Superior Collection of Brands - Attracting Both Productivity Customers & Retailers to our Centers Beverly Center Cherry Creek Shopping Center City Creek Center Country Club Plaza Dolphin Mall Fair Oaks The Gardens on El Paseo Great Lakes Crossing Outlets The Mall at Green Hills International Market Place International Plaza The Mall at Millenia The Mall of San Juan The Mall at Short Hills Stamford Town Center Sunvalley Twelve Oaks Mall The Mall at University Town Center Waterside Shops Westfarms Note: Excludes Taubman Asia 14 Productivity Evolution of Taubman’s Retailer Mix ◼ New high-productivity retailers have naturally taken greater space throughout our portfolio, while formerly prominent tenants have decreased their footprint over the last 10 years ◼ The evolution of Taubman’s tenant mix has contributed to our sales growth over the last decade ◼ The below table highlights a sample of significant changes within our tenant base over the last 10 years Change in GLA (Sqft.) Change in GLA (Sqft.) Tenant Tenant 2017 vs. 2007 2017 vs. 2007 -165,000 +298,000 -131,000 +134,000 -86,000 +57,000 -63,000 +56,000 -48,000 +34,000 Tenant Sales per Square Foot (2007 through 2017) 800 3.9% CAGR 700 600 Foot ($) 500 Tenant Sales per Square Square per TenantSales 400 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 15 Productivity Strong Tenant Demand for Space Occupancy and Leased Space Percentage 96.7% 95.8% 96.0% 96.1% 95.6% 95.9% 94.8% Expect About 95.0% 94.1% 94.2% 93.9% 95% comparable center occupancy 90.0% at year-end 2018 85.0% Ending Occupancy 80.0% Percentage – All Centers Leased Percentage – 75.0% All Centers 2013 2014 2015 2016 2017 New Concepts Recently Added to TCO’s Portfolio Emerging Brands Food 16 Productivity Best-in-Class Anchor Quality Greatest Exposure to High Quality Specialty Department Stores TCO CBL MAC PEI SPG WPG Anchors are a critical 15 30 35 16 107 26 factor in assessing mall 9 1 12 1 28 0 quality 5 1 1 0 6 1 Strong anchors attract 4 0 2 0 12 0 both retailers and 3 0 2 1 10 0 customers 3 0 3 1 9 0 Taubman’s portfolio is well-positioned; Total Fashion Dept.