<PAGE> 1
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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): Commission File Number:
- ------------------------------------------------- -----------------------
September 30, 1999 1 - 12994
THE MILLS CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
Delaware 52-1802283
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
1300 Wilson Boulevard, Suite 400, Arlington, Virginia 22209
-----------------------------------------------------------
(Address of principal executive offices - zip code)
(703)526-5000
-------------
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
(former name or former address, if changed since last report)
Not Applicable
- --------------------------------------------------------------------------------
<PAGE> 2
THE MILLS CORPORATION
FORM 8-K
INDEX
ITEM 5. OTHER EVENTS
The Registrant made available additional operational information
concerning the Registrant, The Mills Corporation, and the properties
owned or managed by it as of September 30, 1999, in the form of a
Supplemental Information Package, a copy of which is included as an
exhibit to this filing. The Supplemental Information package is
available upon request as specified therein.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Financial Statements
NONE.
Exhibits:
<TABLE>
<CAPTION>
Page Number in
Exhibit No. Description Filing
- ----------- ----------- ------
<S> <C> <C>
99.1 Supplemental Information as 4
of September 30, 1999
</TABLE>
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: November 15, 1999 THE MILLS CORPORATION
By: /s/ Kenneth R. Parent
-----------------------
Kenneth R. Parent
Executive Vice President, Finance
and Chief Financial Officer
(Principal Financial
and Accounting Officer)
<PAGE> 1
THE MILLS CORPORATION
SUPPLEMENTAL INFORMATION
TABLE OF CONTENTS
AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
INFORMATION PAGE
----------- ----
<S> <C>
Overview 5-6
Summary of Operating Properties 7
Summary of Projects Under Construction/Development 8
Supplemental Financial Data 9
Property Operating Income 10-13
Unconsolidated Joint Venture Net Income
and Funds From Operations 14-15
Occupancy Analysis 16
Lease Expiration Schedule 17-19
Rental Rate Analysis 20
Average Rent Analysis 21
Summary of Outstanding Consolidated Indebtedness 22
Summary of Outstanding Unconsolidated Indebtedness 23
Mills Gross Sales Analysis 24
Mills Comparable Specialty Store Sales Analysis 25
Capital Expenditures 26-28
</TABLE>
<PAGE> 2
THE MILLS CORPORATION
OVERVIEW
THE COMPANY
The Mills Corporation (the "Company") is a fully integrated, self-managed real
estate investment trust ("REIT") .
The Company conducts all of its business through The Mills Limited Partnership
("the Operating Partnership"), in which it owns, as of September 30, 1999, a 1%
interest as the sole general partner and a 58.4% interest as a limited partner.
The Company, through the Operating Partnership, is engaged primarily in the
ownership, development, redevelopment, leasing, acquisition, expansion and
management of super-regional, retail and entertainment-oriented centers (the
"Mills" and "Block" projects) and community shopping centers (the "Community
Centers"). As of September 30, 1999, the Operating Partnership owns or holds an
interest in the following operating properties:
<TABLE>
<CAPTION>
Mills Location (Metropolitan Market Served)
----- -------------------------------------
<S> <C>
Franklin Mills Philadelphia, PA (Philadelphia)
Gurnee Mills Gurnee, IL (Chicago)
Potomac Mills Woodbridge, VA (Washington, DC)
Sawgrass Mills Sunrise, FL (Ft. Lauderdale)
Ontario Mills Ontario, CA (Los Angeles)
Grapevine Mills Grapevine, TX (Dallas/Fort Worth)
Arizona Mills Tempe, AZ (Phoenix)
The Oasis at Sawgrass Sunrise, FL (Ft. Lauderdale)
Concord Mills Concord, NC (Charlotte)
Block
-----
The Block at Orange Orange, CA (Los Angeles)
Community Centers
-----------------
Butterfield Plaza Downers Grove, IL
Coopers Plaza Voorhees, NJ
Crosswinds Center St. Petersburg, FL
Fashion Place Columbia, SC
Germantown Commons Shopping Center Germantown, MD
Gwinnett Marketfair Duluth, GA
Liberty Plaza Philadelphia, PA
Montgomery Village Off-Price Center Gaithersburg, MD
Mount Prospect Plaza Mount Prospect, IL
West Falls Church Outlet Center Falls Church, VA
Western Hills Plaza Cincinnati, OH
</TABLE>
In addition to the operating properties, the Company is actively involved in the
pre-development or development of a number of new projects, including Katy Mills
(Houston, TX), Opry Mills (Nashville, TN), Arundel Mills (Dorchester, MD),
Sugarloaf Mills (Atlanta, GA), Vaughan Mills (Toronto, Cananda) and Meadowlands
Mills (Carlstadt, NJ).
5
<PAGE> 3
THE MILLS CORPORATION
OVERVIEW
PURPOSE OF FILING
The purpose of this supplemental information package is to provide supplemental
information regarding the operations, assets and liabilities as of September 30,
1999 for the Company and Operating Partnership.
CAUTIONARY STATEMENT
Certain matters discussed in this Form 8-K contain "forward-looking statements"
for purposes of Section 27A of the Securities Act of 1933, as amended (the
"Securities Act") and Section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act") relating to, without limitation, future economic
performance, plans and objectives of management for future operations,
projections of revenue and other financial items, demographic projections and
federal income tax considerations, which can be identified by the use of
forward-looking terminology such as "may", "will", "expect", "anticipate",
"estimate" or "continue" or the negative thereof or other variations thereon or
comparable terminology. Such forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ materially
from those described in such forward-looking statements.
6
<PAGE> 4
THE MILLS CORPORATION
SUMMARY OF OPERATING PROPERTIES
The following table sets forth certain information with respect to the
properties as of September 30, 1999:
<TABLE>
<CAPTION>
Anchor
Total Store
Metropolitan Year Ownership GLA GLA
Name/Location Area Serviced Opened Percentage (Sq. Ft.) (1) (sq.ft.) (1)
- ---------------------------------------- ------------- ------ ---------- -------------- -------------
<S> <C> <C> <C> <C> <C>
MILLS
Potomac Mills.................. Washington D.C./ 1985 100% 1,637,065 996,551
Woodbridge, VA Baltimore
Franklin Mills................. Philadelphia/ 1989 100% 1,739,208 1,142,835
Philadelphia, PA Wilmington
Sawgrass Mills................. Fort Lauderdale, FL/ 1990 100% 1,845,342 1,168,725
Sunrise, FL Miami/Palm Beach
Gurnee Mills................... Chicago/Milwaukee 1991 100% 1,699,556 1,076,646
Gurnee, IL
Ontario Mills.................. Los Angeles 1996 50% 1,345,096 (4) 825,820
Ontario, CA
Grapevine Mills................ Dallas/Fort Worth 1997 37.5% 1,241,410 (5) 698,010
Grapevine, TX
Arizona Mills.................. Phoenix 1997 36.8% 1,233,884 700,731
Tempe, AZ
The Oasis at Sawgrass.......... Fort Lauderdale, FL/ 1999 50% 290,063 134,860
Sunrise, FL Miami/Palm Beach
Concord Mills.................. Charlotte 1999 37.5% 1,166,610 (6) 602,770
Concord, NC
-------------- ------------
MILLS TOTALS/WEIGHTED AVERAGES........ 12,198,234 7,346,948
============== ============
The Block at Orange Los Angeles/Orange 1998 50% 644,652 359,701
============== ============
County
COMMUNITY CENTERS (11 CENTERS) 2,220,320 1,363,129
============== ============
</TABLE>
<TABLE>
<CAPTION>
Specialty
Store Annualized
Metropolitan GLA Percent Base
Name/Location Area Serviced (sq.ft.) (1) Leased (2) Rent (7)
- ---------------------------------------- ------------- ------------- ---------- --------
<S> <C> <C> <C> <C>
MILLS
Potomac Mills..................... Washington D.C./ 640,514 96% $21,421,555
Woodbridge, VA Baltimore
Franklin Mills.................... Philadelphia/ 596,373 94% 17,774,915
Philadelphia, PA Wilmington
Sawgrass Mills.................... Fort Lauderdale, FL/ 676,617 97% 24,813,354
Sunrise, FL Miami/Palm Beach
Gurnee Mills...................... Chicago/Milwaukee 622,910 96% 17,889,358
Gurnee, IL
Ontario Mills..................... Los Angeles 519,276 98% 18,120,381
Ontario, CA
Grapevine Mills................... Dallas/Fort Worth 543,400 97% 20,453,424
Grapevine, TX
Arizona Mills..................... Phoenix 533,153 97% 19,307,855
Tempe, AZ
The Oasis at Sawgrass............. Fort Lauderdale, FL/ 155,203 92% $5,702,032
Sunrise, FL Miami/Palm Beach
Concord Mills..................... Charlotte 563,840 88% 17,856,509
Concord, NC
------------ ----------------
MILLS TOTALS/WEIGHTED AVERAGES........ 4,851,286 96% $163,339,383
============ ================
The Block at Orange Los Angeles/Orange 284,951 92% $13,949,857
============ ================
County
COMMUNITY CENTERS (11 CENTERS) 857,191 82% $17,228,273
============ ================
</TABLE>
<TABLE>
<CAPTION>
12 Mos. Ended
No. of 9/30/1999
Metropolitan Anchor Specialty Store
Name/Location Area Serviced Stores (3) Sales PSF
- ---------------------------------------- ------------- ---------- ---------
<S> <C> <C> <C>
MILLS
Potomac Mills..................... Washington D.C./ 17 $ 324
Woodbridge, VA Baltimore
Franklin Mills.................... Philadelphia/ 18 313
Philadelphia, PA Wilmington
Sawgrass Mills.................... Fort Lauderdale, FL/ 20 441
Sunrise, FL Miami/Palm Beach
Gurnee Mills...................... Chicago/Milwaukee 16 287
Gurnee, IL
Ontario Mills..................... Los Angeles 18 357
Ontario, CA
Grapevine Mills................... Dallas/Fort Worth 16 298
Grapevine, TX
Arizona Mills..................... Phoenix 16 300
Tempe, AZ
The Oasis at Sawgrass............. Fort Lauderdale, FL/ 3 N/A(8)
Sunrise, FL Miami/Palm Beach
Concord Mills..................... Charlotte 12 N/A(8)
Concord, NC
-------------
MILLS TOTALS/WEIGHTED AVERAGES........ 136 $ 335
=============
The Block at Orange Los Angeles/Orange 9 N/A(8)
=============
County
COMMUNITY CENTERS (11 CENTERS) 25
=============
</TABLE>
(1) Includes 963,173 square feet of gross leaseable area owned by certain
store tenants as follows: Potomac Mills-80,000 square feet of
gross leaseable area; Franklin Mills-209,612 square feet of gross
leaseable area; Sawgrass Mills-281,774 square feet of gross leaseable
area; Gurnee Mills-250,806 square feet of gross leaseable area;
Liberty Plaza - 13,741 square feet of gross leaseable area; West Falls
Church- 2,240 square feet of gross leaseable area and Ontario Mills -
125,000 square feet of gross leaseable area.
(2) Gross leaseable area leased is defined as follows: all space leased
and for which rent is being paid as of September 1, 1999 (except for
Concord Mills which opened September 17, 1999), excluding tenant with
leases having a term of less than 1 year plus gross leaseable area
owned by store tenants described in footnote (1).
(3) Anchor stores include all stores occupying more than 20,000 square feet
and certain store tenants described in footnote (1).
(4) Ontario Mills will contain approximately 1.7 million square feet of
gross leaseable area, including gross leaseable area owned by certain
anchor store tenants, upon completion.
(5) Grapevine Mills will contain approximately 1.5 million square feet of
gross leaseable area, including gross leaseable area owned by certain
anchor store tenants, upon completion.
(6) Concord Mills will contain approximately 1.3 million square feet of
gross leaseable area, including gross leaseable area owned by certain
anchor store tenants, upon completion.
(7) Annualized Base Rent is defined as the contractual minimum rent of
tenants comprising gross leaseable occupied area at 9/30/99 multiplied by
12, excluding tenants as noted in footnote (1) and ground leases of
152,370 square feet at Franklin Mills and 16,595 square feet at Ontario
Mills.
(8) Twelve months ended September 30, 1999 sales per square foot
information is not available for The Block at Orange, The Oasis at
Sawgrass and Concord Mills, which commenced business in November 1998,
April 1999, and September 1999, respectively.
7
<PAGE> 5
THE MILLS CORPORATION
SUMMARY OF PROPERTIES UNDER CONSTRUCTION/DEVELOPMENT
<TABLE>
<CAPTION>
Anticipated Approx.
Metropolitan Opening GLA Company
Name/Location Area Serviced Date (1) (Sq. Ft.) (1,2) Ownership
- -------------------------------- ------------- ------------------ -------------------- ---------------
<S> <C> <C> <C> <C>
Katy Mills Houston Fall(8) 1,200,000 62.5%
Houston, TX 1999
Opry Mills Nashville Spring 1,200,000 66.7%
Nashville, TN 2000
Arundel Mills Baltimore/ Fall 1,300,000 75%(7)
Dorchester, MD Washington D.C. 2000
Sugarloaf Mills Atlanta Spring N/A(3) 50.0%
Atlanta, GA 2001
Vaughan Mills Toronto 2001 1,400,000 N/A(3)
Toronto, Canada
Meadowlands Mills New York City/ 2002 N/A(3) 66.7%(7)
Carlstadt, NJ Northern New Jersey
</TABLE>
<TABLE>
<CAPTION>
Estimated Anchor
Aggregate Required Store
Metropolitan Project Equity from Percentage Tenant
Name/Location Area Serviced Cost (1) Company Pre-leased (6) Commitments
- -------------------------------- ------------- --------------- -------------- ----------------- ------------
(millions) (millions)
<S> <C> <C> <C> <C> <C>
Katy Mills Houston $229 $26.25 87% 14
Houston, TX
Opry Mills Nashville $222 $52.00 63% 12
Nashville, TN
Arundel Mills Baltimore/ $230 $17.50 N/A(4) N/A (4)
Dorchester, MD Washington D.C.
Sugarloaf Mills Atlanta $231 $0.00 N/A(4) N/A (4)
Atlanta, GA
Vaughan Mills Toronto N/A(3) N/A(3) N/A(4) N/A (4)
Toronto, Canada
Meadowlands Mills New York City/ N/A(3) N/A(3) N/A(5) N/A (5)
Carlstadt, NJ Northern New Jersey
</TABLE>
(1) Anticipated Opening Dates, Approximate Gross Leaseable Area and
Estimated Aggregate Project Cost may be subject to adjustment as a
result of factors inherent in the development process, some of which
may not be under the direct control of the Company.
(2) Approximate GLA includes space that may be owned by certain anchor
store tenants.
(3) The ownership structure, budgets, start dates and/or opening dates for
these properties have not yet been determined.
(4) The Company recently has begun leasing efforts for these projects and
has obtained various letters of interest.
(5) Leasing activity has not yet commenced for this project. However, the
Company has received letters of interest from 17 anchor store tenants.
(6) Consists of fully executed leases as of September 30, 1999.
(7) The Company's ownership percentage in Meadowlands Mills and Arundel
Mills will be 53.3% and 37.5%, respectively, once all joint venture
partners have executed their respective partnership agreements.
(8) The grand opening for Katy Mills was October 28, 1999.
8
<PAGE> 6
THE MILLS CORPORATION
SUPPLEMENTAL FINANCIAL DATA
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
September 30, September 30,
1999 1998 1999 1998
------------ ------------- ------------- -------------
<S> <C> <C> <C> <C>
STATEMENT OF OPERATIONS DATA:
REVENUES:
Minimum rent $25,787 $25,229 $77,752 $74,802
Percentage rent 599 573 1,133 1,972
Recoveries from tenants 13,254 12,361 39,759 36,534
Other property revenue 2,307 1,972 5,728 4,950
Fee income 3,330 3,006 9,320 7,750
Interest income 589 542 2,125 2,330
------------ ------------- ------------- -------------
Total revenues 45,866 43,683 135,817 128,338
EXPENSES:
Recoverable from tenants 11,424 11,121 34,634 32,021
Other property operating 1,279 1,288 3,733 3,995
General and administrative 3,293 2,311 9,177 7,295
Interest expense 11,781 11,146 34,551 33,060
Depreciation and amortization 8,786 9,114 26,179 27,411
------------ ------------- ------------- -------------
Total expenses 36,563 34,980 108,274 103,782
Other income/(expense) (220) (454) 120 (540)
Equity in earnings of unconsolidated joint ventures 3,513 1,330 7,173 4,161
------------ ------------- ------------- -------------
Income before extraordinary item and minority interest 12,596 9,579 34,836 28,177
Extraordinary losses on debt extinguishments - - (2,762) (422)
Equity in extraordinary losses on debt extinguishments
of unconsolidated joint ventures - (673) - (673)
------------ ------------- ------------- -------------
Income before minority interest 12,596 8,906 32,074 27,082
Minority interest (5,115) (3,621) (13,028) (11,049)
------------ ------------- ------------- -------------
Net income $7,481 $5,285 $19,046 $16,033
============ ============= ============= =============
Income per share before extraordinary item (Basic) $0.32 $0.25 $0.89 $0.73
============ ============= ============= =============
Income per share before extraordinary item (Diluted) $0.32 $0.24 $0.89 $0.72
============ ============= ============= =============
Net income per share (Basic) $0.32 $0.24 $0.82 $0.70
============ ============= ============= =============
Net income per share (Diluted) $0.32 $0.23 $0.82 $0.69
============ ============= ============= =============
FUNDS FROM OPERATIONS (*):
Income before extraordinary item
and minority interest $12,596 $9,579 $34,836 $28,177
Adjustments:
Add: Depreciation and amortization of real estate
assets 7,665 8,222 23,153 24,591
Add: Real estate depreciation and amortization
of unconsolidated joint ventures 3,106 2,453 8,690 7,342
------------ ------------- ------------- -------------
Funds from operations $23,367 $20,254 $66,679 $60,110
============ ============= ============= =============
Funds from operations per share (Basic) $0.60 $0.52 $1.71 $1.55
============ ============= ============= =============
Funds from operations per share (Diluted) $0.59 $0.52 $1.70 $1.53
============ ============= ============= =============
BASIC:
Weighted average shares 23,087 22,881 23,070 22,963
Weighted average shares and units 38,931 38,836 38,914 38,840
DILUTED:
Weighted average shares 23,541 23,450 23,460 23,360
Weighted average shares and units 39,386 39,404 39,304 39,237
=================================================================================================================================
</TABLE>
(*) The Company generally considers Funds From Operations ("FFO") a widely used
and appropriate measure of performance for an equity REIT which provides a
relevant basis for comparison among REITs. FFO as defined by the National
Association of Real Estate Investment Trusts (NAREIT) means income (loss)
before minority interest (determined in accordance with Generally Accepted
Accounting Principles (GAAP)), excluding gains (losses) from debt
restructuring and sales of property, plus real estate related depreciation
and amortization and after adjustments for unconsolidated partnerships and
joint ventures. FFO is presented to assist investors in analyzing the
performance of the Company. 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 (i) does not represent cash flow from
operations as defined by GAAP, (ii) is not indicative of cash available to
fund all cash flow needs and liquidity, including its ability to make
distributions, and (iii) should not be considered as an alternative to net
income (determined in accordance with GAAP) for purposes of evaluating the
Company's operating performance.
9
<PAGE> 7
THE MILLS CORPORATION
PROPERTY OPERATING INCOME
(IN THOUSANDS)
(UNAUDITED)
THE FOLLOWING TABLE SETS FORTH THE PROPERTY OPERATING INCOME FOR EACH OF THE
MILLS, THE BLOCK, MAINSTREET (THE COMPANY'S PUSH CART PROGRAM) AND THE COMMUNITY
CENTERS. THE PURPOSE OF THIS TABLE IS TO PROVIDE DETAILS ABOUT CERTAIN LINE
ITEMS WITHIN THE SUPPLEMENTAL FINANCIAL DATA SHOWN ON PAGE 9 AND IS NOT INTENDED
TO BE A REPRESENTATION OF NET INCOME ACCORDING TO GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES.
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999
WHOLLY OWNED PROPERTIES
<TABLE>
<CAPTION>
Community
Potomac Franklin Sawgrass Gurnee Mainstreet Centers Total
------- -------- -------- ------ ---------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 5,412 $ 4,495 $ 6,435 $ 4,591 $ 543 $ 4,311 $ 25,787
Percentage rent 60 5 398 63 78 (5) 599
Recoveries from tenants 2,406 3,046 3,800 2,428 23 1,551 13,254
Other revenue 230 157 1,064 391 100 365 2,307
-------------------------------------------------------------------------------------------
Total rental revenues 8,108 7,703 11,697 7,473 744 6,222 41,947
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,008 2,327 3,361 2,074 7 1,647 11,424
Other operating 146 196 206 170 457 104 1,279
-------------------------------------------------------------------------------------------
Total property
operating costs 2,154 2,523 3,567 2,244 464 1,751 12,703
===========================================================================================
PROPERTY OPERATING INCOME $ 5,954 $ 5,180 $ 8,130 $ 5,229 $ 280 $ 4,471 $ 29,244
===========================================================================================
<CAPTION>
UNCONSOLIDATED JOINT VENTURES
Ontario Grapevine Arizona The Block The Oasis Concord Other Total
------- --------- ------- --------- --------- ------- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 4,821 $ 5,375 $ 5,266 $ 3,993 $ 1,488 $ 859 $ 38 $ 21,840
Percentage rent 51 - 26 7 - - - 84
Recoveries from tenants 2,358 2,564 2,396 747 385 203 1 8,654
Other revenue (2) 560 556 399 304 36 65 - 1,920
----------------------------------------------------------------------------------------------
Total rental revenues 7,790 8,495 8,087 5,051 1,909 1,127 39 32,498
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,145 2,144 2,084 1,071 452 299 1 8,196
Other operating 90 172 443 231 132 4 45 1,117
----------------------------------------------------------------------------------------------
Total property
operating costs 2,235 2,316 2,527 1,302 584 303 46 9,313
==============================================================================================
PROPERTY OPERATING INCOME $ 5,555 $ 6,179 $ 5,560 $ 3,749 $ 1,325 $ 824 $ (7) $ 23,185
==============================================================================================
</TABLE>
(1) Total property operating costs excludes management fees as follows: Potomac
Mills - $229, Franklin Mills - $194, Sawgrass Mills - $288, Gurnee Mills -
$210, Community Centers - $200, Ontario Mills - $207, Grapevine Mills -
$353, Arizona Mills - $326, The Block at Orange - $154, The Oasis at
Sawgrass - $47 and Concord Mills - $7.
(2) Other revenue for the Block excludes $331 of income related to tax
increment financing for the project, which the Company considers to be
recurring operating income.
10
<PAGE> 8
THE MILLS CORPORATION
PROPERTY OPERATING INCOME
(IN THOUSANDS)
(UNAUDITED)
THE FOLLOWING TABLE SETS FORTH THE PROPERTY OPERATING INCOME FOR EACH OF THE
MILLS, THE BLOCK, MAINSTREET (THE COMPANY'S PUSH CART PROGRAM) AND THE COMMUNITY
CENTERS. THE PURPOSE OF THIS TABLE IS TO PROVIDE DETAILS ABOUT CERTAIN LINE
ITEMS WITHIN THE SUPPLEMENTAL FINANCIAL DATA SHOWN ON PAGE 9 AND IS NOT INTENDED
TO BE A REPRESENTATION OF NET INCOME ACCORDING TO GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES.
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
Potomac Franklin Sawgrass Gurnee
------- -------- -------- ------
<S> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 5,212 $ 4,364 $ 6,465 $ 4,114
Percentage rent 15 13 382 52
Recoveries from tenants 2,231 2,891 3,445 2,342
Other revenue 284 189 994 319
------------------------------------------------------------
Total rental revenues 7,742 7,457 11,286 6,827
PROPERTY OPERATING COSTS:
Recoverable from tenants 1,877 2,328 3,164 2,107
Other operating 176 277 93 265
------------------------------------------------------------
Total property operating costs 2,053 2,605 3,257 2,372
============================================================
PROPERTY OPERATING INCOME $ 5,689 $ 4,852 $ 8,029 $ 4,455
============================================================
</TABLE>
<TABLE>
<CAPTION>
Community
Mainstreet Centers Total
---------- ------- -----
<S> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 401 $ 4,673 $ 25,229
Percentage rent 92 19 573
Recoveries from tenants 17 1,435 12,361
Other revenue 175 11 1,972
-------------------------------------------
Total rental revenues 685 6,138 40,135
PROPERTY OPERATING COSTS:
Recoverable from tenants - 1,645 11,121
Other operating 354 123 1,288
-------------------------------------------
Total property operating costs 354 1,768 12,409
===========================================
PROPERTY OPERATING INCOME $ 331 $ 4,370 $ 27,726
===========================================
</TABLE>
UNCONSOLIDATED JOINT VENTURES
<TABLE>
<CAPTION>
Ontario Grapevine Arizona Other Total
------- --------- ------- ----- -----
<S> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 4,766 $ 5,354 $ 5,116 $117 $ 15,353
Percentage rent (13) (2) (99) - (114)
Recoveries from tenants 2,255 2,038 1,921 7 6,221
Other revenue 475 548 391 19 1,433
------------------------------------------------------------------------------------
Total rental revenues 7,483 7,938 7,329 143 22,893
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,147 1,701 1,947 22 5,817
Other operating 74 76 113 90 353
------------------------------------------------------------------------------------
Total property operating costs 2,221 1,777 2,060 112 6,170
====================================================================================
PROPERTY OPERATING INCOME $ 5,262 $ 6,161 $ 5,269 $ 31 $ 16,723
====================================================================================
</TABLE>
(1) Total property operating costs excludes management fees as follows: Potomac
Mills - $222, Franklin Mills - $178, Sawgrass Mills - $293, Gurnee Mills -
$180, Community Centers - $193, Ontario Mills - $212, Grapevine Mills -
$220, Arizona Mills - $292 and Other - $3.
11
<PAGE> 9
THE MILLS CORPORATION
PROPERTY OPERATING INCOME
(IN THOUSANDS)
(UNAUDITED)
THE FOLLOWING TABLE SETS FORTH THE PROPERTY OPERATING INCOME FOR EACH OF THE
MILLS, THE BLOCK, MAINSTREET (THE COMPANY'S PUSH CART PROGRAM) AND THE COMMUNITY
CENTERS. THE PURPOSE OF THIS TABLE IS TO PROVIDE DETAILS ABOUT CERTAIN LINE
ITEMS WITHIN THE SUPPLEMENTAL FINANCIAL DATA SHOWN ON PAGE 9 AND IS NOT INTENDED
TO BE A REPRESENTATION OF NET INCOME ACCORDING TO GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES.
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
WHOLLY OWNED PROPERTIES
<TABLE>
<CAPTION>
Community
Potomac Franklin Sawgrass Gurnee Mainstreet Centers Total
------- -------- -------- ------ ---------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 16,209 $ 13,934 $ 19,405 $ 13,372 $ 1,297 $ 13,535 $ 77,752
Percentage rent 85 60 635 99 202 52 1,133
Recoveries from tenants 7,273 8,952 11,596 7,251 54 4,633 39,759
Other revenue 604 639 2,653 961 476 395 5,728
--------------------------------------------------------------------------------------
Total rental revenues 24,171 23,585 34,289 21,683 2,029 18,615 124,372
PROPERTY OPERATING COSTS:
Recoverable from tenants 6,242 7,049 10,363 6,326 7 4,647 34,634
Other operating 502 665 453 453 1,258 402 3,733
--------------------------------------------------------------------------------------
Total property
operating costs 6,744 7,714 10,816 6,779 1,265 5,049 38,367
--------------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 17,427 $ 15,871 $ 23,473 $ 14,904 $ 764 $ 13,566 $ 86,005
======================================================================================
<CAPTION>
UNCONSOLIDATED JOINT VENTURES
Ontario Grapevine Arizona The Block The Oasis Concord Other Total
------- --------- ------- --------- --------- ------- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 14,487 $ 16,095 $ 15,636 $ 11,832 $ 2,680 $ 859 $ 72 $ 61,661
Percentage rent 52 - 136 10 - - - 198
Recoveries from tenants 7,130 7,520 6,638 2,776 640 203 5 24,912
Other revenue (2) 1,338 1,454 1,177 953 49 65 - 5,036
---------------------------------------------------------------------------------------------
Total rental revenues 23,007 25,069 23,587 15,571 3,369 1,127 77 91,807
PROPERTY OPERATING COSTS:
Recoverable from tenants 6,504 6,729 6,091 3,672 702 299 9 24,006
Other operating 382 611 786 625 240 4 218 2,866
---------------------------------------------------------------------------------------------
Total property
operating costs 6,886 7,340 6,877 4,297 942 303 227 26,872
---------------------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 16,121 $ 17,729 $ 16,710 $ 11,274 $ 2,427 $ 824 $ (150) $ 64,935
=============================================================================================
</TABLE>
(1) Total property operating costs excludes management fees as follows: Potomac
Mills - $665, Franklin Mills - $587, Sawgrass Mills - $897, Gurnee Mills -
$598, Community Centers - $585, Ontario Mills - $590, Grapevine Mills -
$1,012, Arizona Mills - $1,018, The Block at Orange - $503, The Oasis at
Sawgrass - $81 and Concord Mills - $7.
(2) Other revenue for the excludes $969 of income related to tax increment
financing for the project, which the Company considers to be recurring
operating income.
12
<PAGE> 10
THE MILLS CORPORATION
PROPERTY OPERATING INCOME
(IN THOUSANDS)
(UNAUDITED)
THE FOLLOWING TABLE SETS FORTH THE PROPERTY OPERATING INCOME FOR EACH OF THE
MILLS, THE BLOCK, MAINSTREET (THE COMPANY'S PUSH CART PROGRAM) AND THE COMMUNITY
CENTERS. THE PURPOSE OF THIS TABLE IS TO PROVIDE DETAILS ABOUT CERTAIN LINE
ITEMS WITHIN THE SUPPLEMENTAL FINANCIAL DATA SHOWN ON PAGE 9 AND IS NOT INTENDED
TO BE A REPRESENTATION OF NET INCOME ACCORDING TO GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES.
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
Community
Potomac Franklin Sawgrass Gurnee Mainstreet Centers Total
------- -------- -------- ------ ---------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 15,702 $ 12,710 $ 19,357 $ 12,489 $ 1,070 $ 13,474 $ 74,802
Percentage rent 139 171 1,003 246 194 219 1,972
Recoveries from tenants 6,679 8,553 10,414 6,813 37 4,038 36,534
Other revenue 625 619 2,295 926 398 87 4,950
---------------------------------------------------------------------------------------
Total rental revenues 23,145 22,053 33,069 20,474 1,699 17,818 118,258
PROPERTY OPERATING COSTS:
Recoverable from tenants 5,565 6,724 9,376 6,079 - 4,277 32,021
Other operating 550 804 309 828 1,101 403 3,995
---------------------------------------------------------------------------------------
Total property
operating costs 6,115 7,528 9,685 6,907 1,101 4,680 36,016
---------------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 17,030 $ 14,525 $ 23,384 $ 13,567 $ 598 $ 13,138 $ 82,242
=======================================================================================
<CAPTION>
UNCONSOLIDATED JOINT VENTURES
Ontario Grapevine Arizona Other Total
------- --------- ------- ----- -----
<S> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 14,114 $ 15,385 $ 14,317 $ 384 $ 44,200
Percentage rent 191 176 134 - 501
Recoveries from tenants 6,550 6,288 5,755 21 18,614
Other revenue 1,324 1,456 1,214 7 4,001
-----------------------------------------------------------------------
Total rental revenues 22,179 23,305 21,420 412 67,316
PROPERTY OPERATING COSTS:
Recoverable from tenants 6,266 5,910 5,128 68 17,372
Other operating 520 257 386 386 1,549
-----------------------------------------------------------------------
Total property operating costs 6,786 6,167 5,514 454 18,921
-----------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 15,393 $ 17,138 $ 15,906 $ (42) $ 48,395
=======================================================================
</TABLE>
(1) Total property operating costs excludes management fees as follows: Potomac
Mills - $658, Franklin Mills - $544, Sawgrass Mills - $932, Gurnee Mills -
$550, Community Centers - $584, Ontario Mills - $618, Grapevine Mills -
$674, Arizona Mills - $976 and Other - $12.
13
<PAGE> 11
THE MILLS CORPORATION
UNCONSOLIDATED JOINT VENTURES
NET INCOME AND FUNDS FROM OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
Ontario Grapevine Arizona The Block
------- --------- ------- ---------
<S> <C> <C> <C> <C>
REVENUES:
Minimum rent $4,821 $5,375 $5,266 $3,993
Percentage rent 51 - 26 7
Recoveries from tenants 2,358 2,564 2,396 747
Interest income 138 531 87 570
Other revenue 560 556 399 304
------------------------------------------------------
Total revenues 7,928 9,026 8,174 5,621
EXPENSES:
Recoverable from tenants (2,145) (2,144) (2,084) (1,071)
Other operating (1) (297) (525) (769) (385)
Interest expense (2,365) (3,290) (2,374) (1,940)
Depreciation and amortization (2,119) (2,444) (1,875) (2,327)
------------------------------------------------------
Total Expenses (6,926) (8,403) (7,102) (5,723)
Gain on Land Sales - - - -
Other - - - (6)
------------------------------------------------------
NET INCOME (LOSS) 1,002 623 1,072 (108)
======================================================
RECONCILIATION OF NET INCOME TO FUNDS
FROM OPERATIONS
Income before extraordinary items 1,002 623 1,072 (108)
Adjustments:
Add: Depreciation and amortization of
real estate assets 2,083 2,401 1,754 2,165
------------------------------------------------------
TOTAL FUNDS FROM OPERATIONS $3,085 $3,024 $2,826 $2,057
======================================================
MILLS ALLOCATIONS:
Mills share of FFO 1,344 1,042 1,042 505
Management Fees due Mills 207 235 142 154
------------------------------------------------------
Total Mills FFO $1,551 $1,277 $1,184 $659
======================================================
Mills share of net income (loss) $440 $216 $394 $(27)
======================================================
</TABLE>
<TABLE>
<CAPTION>
The Oasis Concord Other Total
--------- ------- ----- -----
<S> <C> <C> <C> <C>
REVENUES:
Minimum rent $1,488 $859 $38 $21,840
Percentage rent - - - 84
Recoveries from tenants 385 203 1 8,654
Interest income 67 269 2,288 3,950
Other revenue 36 65 - 1,920
----------------------------------------------------
Total revenues 1,976 1,396 2,327 36,448
EXPENSES:
Recoverable from tenants (452) (299) (1) (8,196)
Other operating (1) (179) (11) (45) (2,211)
Interest expense (573) (265) (167) (10,974)
Depreciation and amortization (707) (126) - (9,598)
----------------------------------------------------
Total Expenses (1,911) (701) (213) (30,979)
Gain on Land Sales - - 1,269 1,269
Other - - - (6)
----------------------------------------------------
NET INCOME (LOSS) 65 695 3,383 6,732
====================================================
RECONCILIATION OF NET INCOME TO FUNDS
FROM OPERATIONS
Income before extraordinary items 65 695 3,383 6,732
Adjustments:
Add: Depreciation and amortization of
real estate assets 652 126 - 9,181
----------------------------------------------------
TOTAL FUNDS FROM OPERATIONS $717 $ 821 $3,383 $15,913
====================================================
MILLS ALLOCATIONS:
Mills share of FFO 164 287 2,237 6,621
Management Fees due Mills 47 7 - 792
----------------------------------------------------
Total Mills FFO $211 $294 $2,237 7,413
====================================================
Mills share of net income (loss) $15 $243 $2,232 $3,513
====================================================
</TABLE>
(1) Total property operating costs includes management fees as follows: Ontario
Mills - $207, Grapevine Mills -$353, Arizona Mills - $326, The Block at
Orange - $154, The Oasis at Sawgrass - $47 and Concord Mills - $7.
14
<PAGE> 12
THE MILLS CORPORATION
UNCONSOLIDATED JOINT VENTURES
NET INCOME AND FUNDS FROM OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
Ontario Grapevine Arizona The Block
------- --------- ------- ---------
<S> <C> <C> <C> <C>
REVENUES:
Minimum rent $ 14,487 $ 16,095 $ 15,636 $ 11,832
Percentage rent 52 - 136 10
Recoveries from tenants 7,130 7,520 6,638 2,776
Interest income 424 1,461 136 1,726
Other revenue 1,338 1,454 1,177 953
---------------------------------------------------
Total
revenues 23,431 26,530 23,723 17,297
EXPENSES:
Recoverable from tenants (6,504) (6,729) (6,091) (3,672)
Other operating (1) (972) (1,623) (1,804) (1,128)
Interest expense (7,312) (8,274) (6,850) (5,415)
Depreciation and
amortization (6,339) (6,917) (5,416) (6,671)
---------------------------------------------------
Total Expenses (21,127) (23,543) (20,161) (16,886)
Gain on Land Sales - - - -
Other - - (30) (18)
---------------------------------------------------
NET INCOME 2,304 2,987 3,532 393
===================================================
RECONCILIATION OF NET INCOME TO FUNDS FROM
OPERATIONS
Income before extraordinary
items 2,304 2,987 3,532 393
Adjustments:
Add: Depreciation and amortization
of real estate assets 6,232 6,788 5,049 6,193
---------------------------------------------------
TOTAL FUNDS FROM OPERATIONS $ 8,536 $ 9,775 $ 8,581 $ 6,586
===================================================
MILLS ALLOCATIONS:
Mills share of FFO 3,720 3,318 3,162 1,617
Management Fees due Mills 590 674 492 503
---------------------------------------------------
Total Mills FFO $ 4,310 $ 3,992 $ 3,654 $ 2,120
===================================================
Mills share of net income $ 1,011 $ 1,014 $ 1,301 $ 96
===================================================
</TABLE>
<TABLE>
<CAPTION>
The Oasis Concord Other Total
--------- ------- ----- -----
<S> <C> <C> <C> <C>
REVENUES:
Minimum rent $ 2,680 $ 859 $ 72 $ 61,661
Percentage rent - - - 198
Recoveries from tenants 640 203 5 24,912
Interest income 147 710 2,355 6,959
Other revenue 49 65 - 5,036
------------------------------------------------------
Total
revenues 3,516 1,837 2,432 98,766
EXPENSES:
Recoverable from tenants (702) (299) (9) (24,006)
Other operating (1) (321) (11) (218) (6,077)
Interest expense (704) (265) (360) (29,180)
Depreciation and
amortization (1,332) (126) - (26,801)
------------------------------------------------------
Total Expenses (3,059) (701) (587) (86,064)
Gain on Land Sales - - 2,849 2,849
Other - - - (48)
------------------------------------------------------
NET INCOME 457 1,136 4,694 (15,503)
======================================================
RECONCILIATION OF NET INCOME TO FUNDS FROM
OPERATIONS
Income before extraordinary
items 457 1,136 4,694 (15,503)
Adjustments:
Add: Depreciation and amortization
of real estate assets 1,105 126 - 25,493
------------------------------------------------------
TOTAL FUNDS FROM OPERATIONS $ 1,562 $ 1,262 $ 4,694 $ 40,996
======================================================
MILLS ALLOCATIONS:
Mills share of FFO 356 442 3,253 15,868
Management Fees due Mills 81 7 - 2,347
------------------------------------------------------
Total Mills FFO $ 437 $ 449 $ 3,253 $ 18,215
======================================================
Mills share of net income $ 104 $ 398 $ 3,248 $ 7,173
======================================================
</TABLE>
(1) Total property operating costs includes management fees as follows:
Ontario Mills - $590, Grapevine Mills - $1,012, Arizona Mills - $1,018, The
Block at Orange - $503, The Oasis at Sawgrass - $81 and Concord
Mills - $7.
15
<PAGE> 13
THE MILLS CORPORATION
OCCUPANCY ANALYSIS
<TABLE>
<CAPTION>
GROSS LEASED & OCCUPIED AREA (S.F.) (1)
GLA Occupied (3)
Project Total GLA at 9/99 %
- ------- --------- ------- -
<S> <C> <C> <C>
Potomac
Mills 1,637,065 1,575,890 96.26%
Franklin
Mills 1,739,208 1,632,592 93.87%
Sawgrass Mills 1,845,342 1,789,119 96.95%
Gurnee Mills 1,699,556 1,639,911 96.49%
---------------------------------------------------
Total Mills 6,921,171 6,615,815 95.90%
Butterfield 114,610 110,691 96.58%
Coopers
Plaza 173,509 115,115 66.35%
Crosswinds 144,273 141,600 98.15%
Fashion
Place 147,950 119,418 80.72%
Germantown 177,097 170,037 96.01%
Gwinnett 194,503 188,513 96.92%
Liberty Plaza 315,067 248,856 78.99%
Montgomery Village 117,391 89,469 76.21%
Mt. Prospect 298,600 291,207 97.52%
West Falls Church 87,824 86,488 98.48%
Western Hills 449,496 253,594 56.42%
---------------------------------------------------
2,220,320 1,814,988 81.74%
---------------------------------------------------
Total Wholly Owned 9,141,491 8,452,500 92.46%
===================================================
Joint Ventures:
Ontario Mills 1,345,096 1,321,444 98.24%
Grapevine Mills 1,241,410 1,206,455 97.18%
Arizona Mills 1,233,884 1,197,623 97.06%
Concord
Mills 1,166,010 1,025,844 87.98%
The Block at Orange 644,652 592,076 91.84%
The Oasis at Sawgrass 290,063 266,052 91.72%
---------------------------------------------------
Total Joint Ventures 5,921,115 5,609,494 94.74%
===================================================
Total Mills 12,197,634 11,654,930 95.55%
===================================================
Total Wholly Owned
and Joint Venture 15,062,606 14,061,994 93.36%
====================================================
</TABLE>
<TABLE>
<CAPTION>
GROSS LEASED & OCCUPIED AREA, NET OF ANCHORS (S.F) (2)
Total GLA Occupied (3)
Project Specialty GLA at 9/99 %
- ------- ------------- ------- -
<S> <C> <C> <C>
Potomac
Mills 640,514 599,407 93.58%
Franklin
Mills 596,373 524,675 87.98%
Sawgrass Mills 676,617 640,394 94.65%
Gurnee Mills 622,910 563,265 90.42%
-------------------------------------------------------
Total Mills 2,536,414 2,306,047 91.77%
Butterfield 72,677 68,758 94.61%
Coopers
Plaza 14,953 14,953 100.00%
Crosswinds 23,298 20,625 88.53%
Fashion
Place 74,692 46,160 61.80%
Germantown 130,341 123,281 94.58%
Gwinnett 96,956 90,966 93.82%
Liberty Plaza 52,320 39,458 75.42%
Montgomery Village 80,986 53,064 65.52%
Mt. Prospect 126,005 118,612 94.13%
West Falls Church 49,983 48,647 97.33%
Western Hills 134,980 98,298 72.82%
-------------------------------------------------------
857,191 722,822 84.32%
-------------------------------------------------------
Total Wholly Owned 3,393,605 3,050,563 89.89%
=======================================================
Joint Ventures:
Ontario Mills 519,276 495,624 95.45%
Grapevine Mills 543,400 508,445 93.57%
Arizona Mills 533,153 496,892 93.20%
Concord
Mills 563,240 423,074 75.11%
The Block at Orange 284,951 232,375 81.55%
The Oasis at Sawgrass 155,203 131,192 84.53%
-------------------------------------------------------
Total Joint Ventures 2,599,223 2,287,602 88.01%
=======================================================
Total Mills 4,850,686 4,382,968 90.36%
=======================================================
Total Wholly Owned
and Joint Venture 5,992,828 5,338,165 89.08%
=======================================================
</TABLE>
<TABLE>
<CAPTION>
TOTAL VACANT S.F.
Vacancies
Project Anchor Specialty Total
- ------- ------ --------- -----
<S> <C> <C> <C>
Potomac
Mills 20,068 41,107 61,175
Franklin
Mills 34,918 71,698 106,616
Sawgrass Mills 20,000 36,223 56,223
Gurnee Mills 0 59,645 59,645
--------------------------------------------------
Total Mills 74,986 208,673 283,659
Butterfield 0 3,919 3,919
Coopers
Plaza 58,394 0 58,394
Crosswinds 0 2,673 2,673
Fashion
Place 0 28,532 28,532
Germantown 0 7,060 7,060
Gwinnett 0 5,990 5,990
Liberty Plaza 53,349 12,862 66,211
Montgomery Village 0 27,922 27,922
Mt. Prospect 0 7,393 7,393
West Falls Church 0 1,336 1,336
Western Hills 159,220 36,682 195,902
--------------------------------------------------
270,963 134,369 405,332
==================================================
Total Wholly Owned 345,949 343,042 688,991
==================================================
Joint Ventures:
Ontario Mills 0 23,652 23,652
Grapevine Mills 0 34,955 34,955
Arizona Mills 0 36,261 36,261
Concord
Mills 0 140,166 140,166
The Block at Orange 0 52,576 52,576
The Oasis at Sawgrass 0 24,011 24,011
--------------------------------------------------
Total Joint Ventures 0 311,621 311,621
==================================================
Total Mills 74,986 467,718 542,704
==================================================
Total Wholly Owned
and Joint Venture 345,949 654,663 1,000,612
==================================================
</TABLE>
(1) Includes 963,173 square feet of GLA owned by certain store tenants as
follows: Potomac Mills-80,000 square feet of GLA; Franklin Mills-209,612
square feet of GLA; Sawgrass Mills-281,774 square feet of GLA; Gurnee
Mills-250,806 square feet of GLA; Liberty Plaza- 13,741 square feet of
GLA; West Falls Church- 2,240 square feet of GLA, and Ontario
Mills-125,000 square feet of GLA. A ground lease at Franklin Mills of
152,370 square feet and at Ontario Mills of 16,595 square feet are also
included.
(2) Anchor stores include all stores occupying more than 20,000 square feet.
(3) GLA occupied is defined as follows: (i) all space leased and for which
rent is being paid as of September 1, 1999, excluding tenants with leases
that have a term of less than 1 year plus (ii) GLA owned by certain store
tenants.
16
<PAGE> 14
THE MILLS CORPORATION
LEASE EXPIRATION SCHEDULE
The following table shows lease expirations assuming that none of the tenants
exercise renewal options. Except as described in footnote (1), the minimum rent
is the monthly contractual minimum rent of the expiring leases as of September
30, 1999 multiplied by 12.
<TABLE>
<CAPTION>
No. of 1999 (1)
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Potomac Mills:
Anchors (2) - - $ - $ -
Majors (2) 1 42,212 316,590 7.50
Specialty 9 27,597 595,410 21.58
Food Court 2 1,567 85,934 54.84
-------------------------------------------------
12 71,376 $ 997,334 $ 13.98
Franklin Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 10 36,385 875,034 24.05
Food Court 3 2,870 118,310 41.22
-------------------------------------------------
13 39,255 $ 993,344 $25.30
Sawgrass Mills:
Anchors (2,3) - - - $ -
Majors (2) 1 28,152 422,280 15.00
Specialty 1 700 42,000 60.00
Food Court 1 605 42,500 70.25
-------------------------------------------------
3 29,457 $ 506,780 $17.20
Gurnee Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 6 13,242 307,660 23.23
Food Court - - - -
-------------------------------------------------
6 13,242 $ 307,660 $23.23
Total Mills w/o Joint
Ventures:
Anchors (2) - - $ - $ -
Majors (2) 2 70,364 738,870 10.50
Specialty 26 77,924 1,820,104 23.36
Food Court 6 5,042 246,744 48.94
-------------------------------------------------
34 153,330 $ 2,805,718 $18.30
==================================================
</TABLE>
<TABLE>
<CAPTION>
No. of 2000
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Potomac Mills:
Anchors (2) - - $ - $ -
Majors (2) 1 41,321 309,908 7.50
Specialty 25 71,720 1,822,004 25.40
Food Court 3 2,331 155,647 66.77
---------------------------------------------------
29 115,372 $ 2,287,559 $19.83
Franklin Mills:
Anchors (2) - - $ - $ -
Majors (2) 1 32,637 297,256 9.11
Specialty 24 92,651 1,930,509 20.84
Food Court - - - -
---------------------------------------------------
25 125,288 $ 2,227,765 $17.78
Sawgrass Mills:
Anchors (2,3) 1 78,619 $ 255,512 $ 3.25
Majors (2) 1 20,189 240,000 11.89
Specialty 53 176,310 4,078,023 23.13
Food Court 21 17,595 994,014 56.49
---------------------------------------------------
76 292,713 $ 5,567,549 $19.02
Gurnee Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 18 58,986 1,044,827 17.71
Food Court 1 657 24,309 37.00
---------------------------------------------------
19 59,643 $ 1,069,136 $17.93
Total Mills w/o Joint
Ventures:
Anchors (2) 1 78,619 $ 255,512 $ 3.25
Majors (2) 3 94,147 847,164 9.00
Specialty 120 399,667 8,875,363 22.21
Food Court 25 20,583 1,173,970 57.04
---------------------------------------------------
149 593,016 $11,152,009 $18.81
===================================================
</TABLE>
<TABLE>
<CAPTION>
No. of 2001
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Potomac Mills:
Anchors (2) - - $ - $ -
Majors (2) 2 67,052 602,846 8.99
Specialty 27 69,344 1,849,791 26.68
Food Court 3 2,484 153,037 61.61
----------------------------------------------------
32 138,880 $ 2,605,674 $18.76
Franklin Mills:
Anchors (2) 1 70,701 $ 484,302 $ 6.85
Majors (2) 1 25,127 178,402 7.10
Specialty 35 97,454 2,091,169 21.46
Food Court 2 1,000 40,990 40.99
----------------------------------------------------
39 194,282 $ 2,794,863 $14.39
Sawgrass Mills:
Anchors (2,3) 2 147,915 $ 1,101,435 $ 7.45
Majors (2) - - - -
Specialty 47 165,654 3,937,211 23.77
Food Court 4 3,124 174,901 55.99
----------------------------------------------------
53 316,693 $ 5,213,547 $16.46
Gurnee Mills:
Anchors (2) 3 231,271 $ 1,381,540 $ 5.97
Majors (2) 1 40,752 289,339 7.10
Specialty 54 177,465 3,589,838 20.23
Food Court 14 10,061 572,738 56.93
----------------------------------------------------
72 459,549 $ 5,833,455 $12.69
Total Mills w/o Joint
Ventures:
Anchors (2) 6 449,887 $ 2,967,277 $ 6.60
Majors (2) 4 132,931 1,070,587 8.05
Specialty 163 509,917 11,468,009 22.49
Food Court 23 16,669 941,666 56.49
----------------------------------------------------
196 1,109,404 $16,447,539 $14.83
====================================================
</TABLE>
<TABLE>
<CAPTION>
No. of After 2001
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Potomac Mills:
Anchors (2) 5 530,633 $ 3,040,838 $ 5.73
Majors (2) 7 215,262 1,922,461 8.93
Specialty 116 420,564 10,320,149 24.54
Food Court 6 3,803 246,940 64.93
--------------------------------------------------
134 1,170,262 $15,530,388 $13.27
Franklin Mills:
Anchors (2) 4 357,592 $ 3,089,629 $ 8.64
Majors (2) 8 259,878 2,695,932 10.37
Specialty 73 290,089 5,820,046 20.06
Food Court 6 4,226 153,336 36.28
--------------------------------------------------
91 911,785 $11,758,943 $12.90
Sawgrass Mills:
Anchors (2,3) 5 432,246 $ 2,888,695 $ 6.68
Majors (2) 7 219,310 2,615,290 11.93
Specialty 86 271,594 7,896,743 29.08
Food Court 3 4,812 124,750 25.92
--------------------------------------------------
101 927,962 $13,525,478 $14.58
Gurnee Mills:
Anchors (2) 5 393,311 $ 2,196,884 $ 5.59
Majors (2) 5 160,506 1,827,120 11.38
Specialty 78 295,484 6,251,890 21.16
Food Court 11 7,370 403,213 54.71
--------------------------------------------------
99 856,671 $10,679,107 $12.47
Total Mills w/o Joint
Ventures:
Anchors (2) 19 1,713,782 $11,216,046 $ 6.54
Majors (2) 27 854,956 9,060,803 10.60
Specialty 353 1,277,731 30,288,828 23.71
Food Court 26 20,211 928,239 45.93
--------------------------------------------------
425 3,866,680 $51,493,916 $13.32
==================================================
</TABLE>
<TABLE>
<CAPTION>
No. of Total of
Leases Annualized
Expiring Sq Ft Min. Rentng psf
-------- ----- ----------- ---
<S> <C> <C> <C> <C>
Potomac Mills:
Anchors (2) 5 530,633 $ 3,040,838 $ 5.73
Majors (2) 11 365,847 3,151,805 8.62
Specialty 177 589,225 14,587,354 24.76
Food Court 14 10,185 641,558 62.99
--------------------------------------------------
207 1,495,890 $21,421,555 $14.32
Franklin Mills:
Anchors (2) 5 428,293 $ 3,573,931 $ 8.34
Majors (2) 10 317,642 3,171,590 9.98
Specialty 142 516,579 10,716,758 20.75
Food Court 11 8,096 312,636 38.62
--------------------------------------------------
168 1,270,610 $17,774,915 $13.99
Sawgrass Mills:
Anchors (2,3) 8 658,780 $ 4,245,642 $ 6.44
Majors (2) 9 267,651 3,277,570 12.25
Specialty 187 614,258 15,953,977 25.97
Food Court 29 26,136 1,336,165 51.12
--------------------------------------------------
233 1,566,825 $24,813,354 $15.84
Gurnee Mills:
Anchors (2) 8 624,582 $ 3,578,424 $ 5.73
Majors (2) 6 201,258 2,116,459 10.52
Specialty 156 545,177 11,194,215 20.53
Food Court 26 18,088 1,000,260 55.30
--------------------------------------------------
196 1,389,105 $17,889,358 $12.88
Total Mills w/o Joint
Ventures:
Anchors (2) 26 2,242,288 $14,438,835 $ 6.44
Majors (2) 36 1,152,398 11,717,424 10.17
Specialty 662 2,265,239 52,452,304 23.16
Food Court 80 62,505 3,290,619 52.65
--------------------------------------------------
804 5,722,430 $81,899,182 $14.31
==================================================
</TABLE>
(1) The 1999 amounts represent the total square footage and total annualized
minimum rent that will expire during the last three months of 1999.
(2) Anchor tenants are defined as any tenant whose GLA equals or exceeds
50,000 sq. ft. and Major tenants are defined as any tenant whose GLA
equals or exceeds 20,000 sq. ft. but is less than 50,000 sq. ft..
(3) For lease expiration purposes, Sawgrass Mills includes 59,480 square feet
of gross leaseable area that is now part of Sawgrass Mills Phase III (The
Oasis), since the rent associated with the square footage is assigned to
Sawgrass Mills due to project loan requirements.
17
<PAGE> 15
THE MILLS CORPORATION
LEASE EXPIRATION SCHEDULE
The following table shows lease expirations assuming that none of the tenants
exercise renewal options. Except as described in footnote (1), the minimum rent
is the monthly contractual minimum rent of the expiring leases as of September
30, 1999 multiplied by 12.
<TABLE>
<CAPTION>
No. of 1999 (1)
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Ontario Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 3 3,470 120,759 34.80
Food Court - - - -
------------------------------------------------------------------------------
3 3,470 $ 120,759 $ 34.80
Grapevine Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 2 4,205 68,590 16.31
Food Court - - - -
------------------------------------------------------------------------------
2 4,205 $ 68,590 $ 16.31
Arizona Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty - - - -
Food Court - - - -
------------------------------------------------------------------------------
- - $ - $ -
The Oasis at Sawgrass
Anchors (2,3) - - $ - $ -
Majors (2) - - - -
Specialty - - - -
Food Court - - - -
------------------------------------------------------------------------------
- - $ - $ -
Concord Mills
Anchors (2,3) - - $ - $ -
Majors (2) - - - -
Specialty - - - -
Food Court - - - -
------------------------------------------------------------------------------
- - $ - $ -
Total Mills with Joint Ventures:
Anchors (2) - - $ - $ -
Majors (2) 2 70,364 738,870 10.50
Specialty 31 85,599 2,009,453 23.48
Food Court 6 5,042 246,744 48.94
------------------------------------------------------------------------------
39 161,025 $2,995,067 $ 18.60
==============================================================================
</TABLE>
<TABLE>
<CAPTION>
No. of 2000
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Ontario Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 6 12,159 344,177 28.31
Food Court - - - -
-----------------------------------------------------------------------------
6 12,159 $ 344,177 $ 28.31
Grapevine Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 7 13,723 358,792 26.15
Food Court - - - -
-----------------------------------------------------------------------------
7 13,723 $ 358,792 $ 26.15
Arizona Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 6 18,768 505,145 26.92
Food Court - - - -
-----------------------------------------------------------------------------
6 18,768 $ 505,145 $ 26.92
The Oasis at Sawgrass
Anchors (2,3) - - $ - $ -
Majors (2) - - - -
Specialty - - - -
Food Court - - - -
-----------------------------------------------------------------------------
- - $ - $ -
Concord Mills
Anchors (2,3) - - $ - $ -
Majors (2) - - - -
Specialty 2 12,107 564,850 46.65
Food Court - - - -
-----------------------------------------------------------------------------
2 12,107 $ 564,850 $ 46.65
Total Mills with Joint Ventures:
Anchors (2) 1 78,619 $ 255,512 $ 3.25
Majors (2) 3 94,147 847,164 9.00
Specialty 141 456,424 10,648,327 23.33
Food Court 25 20,583 1,173,970 57.04
-----------------------------------------------------------------------------
170 649,773 $ 12,924,973 $ 19.89
=============================================================================
</TABLE>
<TABLE>
<CAPTION>
No. of 2001
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Ontario Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 47 199,801 3,869,261 19.37
Food Court - - - -
----------------------------------------------------------------------
47 199,801 $ 3,869,261 $ 19.37
Grapevine Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 11 28,115 640,769 22.79
Food Court - - - -
----------------------------------------------------------------------
11 28,115 $ 640,769 $ 22.79
Arizona Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 8 17,212 444,141 25.80
Food Court - - - -
----------------------------------------------------------------------
8 17,212 $ 444,141 $ 25.80
The Oasis at Sawgrass
Anchors (2,3) - - $ - $ -
Majors (2) - - - -
Specialty - - - -
Food Court - - - -
----------------------------------------------------------------------
- - $ - $ -
Concord Mills
Anchors (2,3) - - $ - $ -
Majors (2) - - - -
Specialty 1 2,658 58,476 22.00
Food Court - - - -
----------------------------------------------------------------------
1 2,658 $ 58,476 $ 22.00
Total Mills with Joint Ventures:
Anchors (2) 6 449,887 $ 2,967,277 $ 6.60
Majors (2) 4 132,931 1,070,587 8.05
Specialty 230 757,703 16,480,656 21.75
Food Court 23 16,669 941,666 56.49
----------------------------------------------------------------------
263 1,357,190 $21,460,186 $ 15.81
======================================================================
</TABLE>
<TABLE>
<CAPTION>
No. of After 2001
Leases Annualized
Expiring Sq Ft Min. Rent psf
------- ----- --------- ---
<S> <C> <C> <C> <C>
Ontario Mills:
Anchors (2) 4 286,023 $ 1,883,132 $ 6.58
Majors (2) 13 414,797 5,000,587 12.06
Specialty 85 251,869 6,308,300 25.05
Food Court 3 11,730 594,165 50.65
------------------------------------------------------------------------
105 964,419 $ 13,786,184 $ 14.29
Grapevine Mills:
Anchors (2) 3 315,042 $ 3,638,510 $ 11.55
Majors (2) 13 382,968 5,038,296 13.16
Specialty 131 452,602 10,120,467 22.36
Food Court 1 9,800 588,000 60.00
------------------------------------------------------------------------
148 1,160,412 $ 19,385,273 $ 16.71
Arizona Mills:
Anchors (2) 5 382,513 $ 3,138,643 $ 8.21
Majors (2) 11 318,218 4,400,131 13.83
Specialty 120 446,988 9,987,293 22.34
Food Court 1 13,924 832,502 59.79
------------------------------------------------------------------------
137 1,161,643 $ 18,358,569 $ 15.80
The Oasis at Sawgrass
Anchors (2,3) 1 32,802 $ 615,322 $ 18.76
Majors (2) 2 42,578 882,869 20.74
Specialty 30 131,192 4,203,841 32.04
Food Court - - - -
------------------------------------------------------------------------
33 206,572 $ 5,702,032 $ 27.60
Concord Mills
Anchors (2,3) 5 433,190 $ 4,908,986 $ 11.33
Majors (2) 7 169,580 2,054,919 12.12
Specialty 110 399,922 9,766,058 24.42
Food Court 1 8,387 503,220 60.00
------------------------------------------------------------------------
123 1,011,079 $ 17,233,183 $ 17.04
Total Mills with Joint Ventures:
Anchors (2) 37 3,163,352 $ 25,400,639 $ 8.03
Majors (2) 73 2,183,097 26,437,605 12.11
Specialty 829 2,960,304 70,674,787 23.87
Food Court 32 64,052 3,446,126 53.80
------------------------------------------------------------------------
971 8,370,805 $125,959,157 $ 15.05
========================================================================
</TABLE>
<TABLE>
<CAPTION>
No. of Total
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Ontario Mills:
Anchors (2) 4 286,023 $ 1,883,132 $ 6.58
Majors (2) 13 414,797 5,000,587 12.06
Specialty 141 467,299 10,642,497 22.77
Food Court 3 11,730 594,165 50.65
-----------------------------------------------------------
161 1,179,849 $ 18,120,381 $ 15.36
Grapevine Mills:
Anchors (2) 3 315,042 $ 3,638,510 $ 11.55
Majors (2) 13 382,968 5,038,296 13.16
Specialty 151 498,645 11,188,618 22.44
Food Court 1 9,800 588,000 60.00
-----------------------------------------------------------
168 1,206,455 $ 20,453,424 $ 16.95
Arizona Mills:
Anchors (2) 5 382,513 $ 3,138,643 $ 8.21
Majors (2) 11 318,218 4,400,131 13.83
Specialty 134 482,968 10,936,579 22.64
Food Court 1 13,924 832,502 59.79
-----------------------------------------------------------
151 1,197,623 $ 19,307,855 $ 16.12
The Oasis at Sawgrass
Anchors (2,3) 1 32,802 $ 615,322 $ 18.76
Majors (2) 2 42,578 882,869 20.74
Specialty 30 131,192 4,203,841 32.04
Food Court - - - -
-----------------------------------------------------------
33 206,572 $ 5,702,032 $ 27.60
Concord Mills
Anchors (2,3) 5 433,190 $ 4,908,986 $ 11.33
Majors (2) 7 169,580 2,054,919 12.12
Specialty 113 414,687 10,389,384 25.05
Food Court 1 8,387 503,220 60.00
-----------------------------------------------------------
126 1,025,844 $ 17,856,509 $ 17.41
Total Mills with Joint Ventures:
Anchors (2) 44 3,691,858 $ 28,623,428 $ 7.75
Majors (2) 82 2,480,539 29,094,226 11.73
Specialty 1,231 4,260,030 99,813,223 23.43
Food Court 86 106,346 5,808,506 54.62
-----------------------------------------------------------
1,443 10,538,773 $163,339,383 $ 15.50
===========================================================
</TABLE>
(1) The 1999 amounts represent the total square footage and total annualized
minimum rent that will expire during the last three months of 1999.
(2) Anchor tenants are defined as any tenant whose GLA equals or exceeds 50,000
sq. ft. and Major tenants are defined as any tenant whose GLA equals or
exceeds 20,000 sq. ft. but is less than 50,000 sq. ft..
(3) For lease expiration purposes, The Oasis excludes 59,480 square feet of
gross leaseable area, since the rent associated with the square footage is
assigned to Sawgrass Mills due to project loan requirements.
18
<PAGE> 16
THE MILLS CORPORATION
LEASE EXPIRATION SCHEDULE
The following table shows lease expirations assuming that none of the tenants
exercise renewal options. Except as described in footnote (1), the minimum rent
is the monthly contractual minimum rent of the expiring leases as of September
30, 1999 multiplied by 12.
<TABLE>
<CAPTION>
No. of 1999 (1) No. of 2000
Leases Annualized Leases Annualized
Expiring Sq Ft Min. Rent psf Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---- -------- ----- --------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
The Block at Orange
Anchors (2) - - $ - $ - - - $ - $ -
Majors (2) - - - - - - - -
Specialty - - - - 2 826 72,210 87.42
Food Court - - - - - - - -
-------------------------------------------------------------------------------------------
- - $ - $ - 2 826 $ 72,210 $ 87.42
Community Centers:
Anchors (2) - - $ - $ - - - $ - $ -
Majors (2) - - - - 1 21,007 278,343 13.25
Specialty 14 35,148 543,933 15.48 25 113,188 1,232,729 10.89
Food Court - - - - - - - -
==========================================================================================
14 35,148 $ 543,933 $ 15.48 26 134,195 $ 1,511,072 $ 11.26
==========================================================================================
Totals
Anchors (2) - - $ - $ - 1 78,619 $ 255,512 $ 3.25
Majors (2) 2 70,364 738,870 10.50 4 115,154 1,125,507 9.77
Specialty 45 120,747 2,553,386 21.15 168 570,438 11,953,266 20.95
Food Court 6 5,042 246,744 48.94 25 20,583 1,173,970 57.04
==========================================================================================
53 196,153 $ 3,539,000 $ 18.04 198 784,794 $ 14,508,255 $ 18.49
==========================================================================================
<CAPTION>
No. of 2001 No. of After 2001
Leases Annualized Leases Annualized
Expiring Sq Ft Min. Rent psf Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---- -------- ----- --------- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
The Block at Orange
Anchors (2) - - $ - $ - 2 172,785 $ 3,473,326 $ 20.10
Majors (2) - - - - 7 186,916 2,839,831 15.19
Specialty 6 5,910 224,875 38.05 61 212,701 6,381,494 30.00
Food Court - - - - 10 12,938 958,121 74.05
---------------------------------------------------------------------------------------------
6 5,910 $ 224,875 $ 38.05 80 585,340 $ 13,652,772 $ 23.32
Community Centers:
Anchors (2) - - $ - $ - 6 466,402 $ 3,202,616 $ 6.87
Majors (2) 1 24,300 133,650 5.50 17 557,821 3,939,691 7.06
Specialty 45 163,423 2,135,106 13.06 110 417,718 5,762,205 13.79
Food Court - - - - - - - -
=============================================================================================
46 187,723 $ 2,268,756 $ 12.09 133 1,441,941 $ 12,904,512 $ 8.95
=============================================================================================
Totals
Anchors (2) 6 449,887 $ 2,967,277 $ 6.60 45 3,802,539 $ 32,076,581 $ 8.44
Majors (2) 5 157,231 1,204,237 7.66 97 2,927,834 33,217,127 11.35
Specialty 281 927,036 18,840,637 20.32 1,000 3,590,723 82,818,486 23.06
Food Court 23 16,669 941,666 56.49 42 76,990 4,404,247 57.21
=============================================================================================
315 1,550,823 $ 23,953,817 $ 15.45 1,184 10,398,086 $ 152,516,441 $ 14.67
=============================================================================================
<CAPTION>
No. of Total
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- ---------- ---
<S> <C> <C> <C> <C>
The Block at Orange
Anchors (2) 2 172,785 $ 3,473,326 $ 20.10
Majors (2) 7 186,916 2,839,831 15.19
Specialty 69 219,437 6,678,579 30.44
Food Court 10 12,938 958,121 74.05
----------------------------------------------------------------
88 592,076 $ 13,949,857 $ 23.56
Community Centers:
Anchors (2) 6 466,402 $ 3,202,616 $ 6.87
Majors (2) 19 603,128 4,351,684 7.22
Specialty 194 729,477 9,673,973 13.26
Food Court - - - -
================================================================
219 1,799,007 $ 17,228,273 $ 9.58
================================================================
Totals
Anchors (2) 52 4,331,045 $ 35,299,370 $ 8.15
Majors (2) 108 3,270,583 36,285,741 11.09
Specialty 1,494 5,208,944 116,165,775 22.30
Food Court 96 119,284 6,766,627 56.73
================================================================
1,750 12,929,856 $ 194,517,513 $ 15.04
================================================================
</TABLE>
(1) The 1999 amounts represent the total square footage and total annualized
minimum rent that will expire during the last three months of 1999.
(2) Anchor tenants are defined as any tenant whose GLA equals or exceeds 50,000
sq. ft. and Major tenants are defined as any tenant whose GLA equals or
exceeds 20,000 sq. ft. but is less than 50,000 sq. ft..
(3) For lease expiration purposes, The Oasis excludes 59,480 square feet of
gross leaseable area, since the rent associated with the square footage is
assigned to Sawgrass Mills due to project loan requirements.
19
<PAGE> 17
RENTAL RATES(1)
The following table sets forth the average base rent per leased square foot of
store openings and closings for each property for the nine months ended
September 30, 1999 and twelve months ended December 31, 1998, 1997, and 1996.
<TABLE>
<CAPTION>
ANCHOR STORES
-----------------------------------------------------------------------------------------------
STORE OPENINGS STORE CLOSINGS RELEASING
DURING YEAR DURING YEAR SPREAD (2)
------------------------------ ------------------------------ --------------------------
AVERAGE AVERAGE
BASE RENT TOTAL BASE RENT TOTAL
PER SQ. FT. SQ. FT. PER SQ. FT. SQ. FT.
----------- ------- ----------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
POTOMAC MILLS 1999 $ - - $ - - $ - -
1998 11.52 65,028 9.46 70,490 2.06 21.75%
1997 7.71 73,432 6.30 97,820 1.41 22.33%
1996 11.43 33,406 11.55 15,178 (0.12) (1.04%)
FRANKLIN MILLS 1999 $ - - $ 5.49 34,918 $ N/A N/A
1998 13.33 100,127 6.49 85,242 6.85 105.60%
1997 11.27 85,072 7.53 85,072 3.74 49.74%
1996 10.41 18,247 10.25 20,000 0.16 1.56%
GURNEE MILLS 1999 $ 8.60 55,970(3) $ - - $ N/A N/A
1998 7.10 40,752 6.45 40,752 0.65 10.08%
1997 4.92 184,259(3) - - N/A N/A
1996 30.00 20,000 - - N/A N/A
SAWGRASS MILLS 1999 $ - - $ - - $ - -
1998 15.00 28,152 15.00 28,152 - -
1997 8.91 50,579 8.93 50,579 (0.02) (0.21%)
1996 26.39 20,000 14.86 39,275 11.53 77.59%
ONTARIO MILLS 1999 $ - - $ - - $ - -
1998 - - - - - -
TOTAL MILLS 1999 $ 8.60 55,970 $ 6.48 68,545 $ 2.12 32.72%
1998 11.94 234,059 8.48 224,636 3.46 40.86%
1997 7.33 393,342 7.32 233,471 0.01 0.15%
1996 18.54 91,653 12.95 74,453 5.59 43.17%
<CAPTION>
SPECIALTY STORES
--------------------------------------------------------------------------------------------
STORE OPENINGS STORE CLOSINGS RELEASING
DURING YEAR DURING YEAR SPREAD (2)
----------------------------- ----------------------------- --------------------------
AVERAGE AVERAGE
BASE RENT TOTAL BASE RENT TOTAL
PER SQ. FT. SQ. FT. PER SQ. FT. SQ. FT.
----------- ------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
POTOMAC MILLS $ 26.41 58,887 $23.03 64,596 $ 3.38 14.68%
27.68 70,769 27.91 62,034 (0.23) (0.79%)
22.78 128,964 21.77 127,191 1.00 4.61%
23.64 83.594 21.80 66,607 1.84 8.44%
FRANKLIN MILLS $ 20.30 42,302 $23.05 79,023 $(2.75) (11.93%)
19.18 150,869 17.65 113,961 1.53 8.65%
20.16 112,670 19.34 106,202 0.83 4.29%
20.08 73,880 18.61 115,416 1.47 7.90%
GURNEE MILLS $ 23.96 44,664 $19.29 75,695 $ 4.68 24.24%
21.07 99,886 18.59 88,220 2.48 13.35%
20.75 101,771 19.24 104,086 1.51 7.87%
19.01 74,447 18.63 71,457 0.38 2.04%
SAWGRASS MILLS $ 42.38 13,982 $31.96 43,106 $10.42 32.60%
32.52 48,268 26.32 49,373 6.20 23.54%
30.00 72,188 24.57 64,626 5.42 22.08%
29.63 58,904 22.24 57,770 7.39 33.23%
ONTARIO MILLS $ 27.31 25,864 $28.05 34,965 $(0.74) (2.64%)
27.34 35,616 27.64 26,400 (0.30) (6.26%)
TOTAL MILLS $ 25.76 185,699 $23.93 300,340 $ 1.70 7.65%
23.43 405,408 21.80 339,988 1.63 7.49%
22.83 415,593 20.92 402,105 1.90 9.10%
22.76 290,825 19.97 311,250 2.79 13.97%
</TABLE>
(1) Concord Mills, The Oasis at Sawgrass, The Block at Orange, Grapevine Mills
and Arizona Mills are excluded from this analysis, due to still being in
their initial lease-up phase. For the same reason, Ontario Mills for 1997
is excluded.
(2) The releasing spread is calculated as the difference between per square
foot openings and per square foot closings for the nine months ended
September 30, 1999 and twelve months ended December 31, 1998, 1997, 1996.
Openings and closings include renewals but exclude exercised options.
(3) For 1997, consists primarily of expansion space related to two anchor
stores, Bass Pro and Computer City comprising 125,000 sq. ft. and 25,000
sq. ft., respectively. The Bass Pro lease is expected to provide
substantial percentage rent in addition to the base rent included above.
For 1999, consists of expansion space related to an anchor store, Rinkside
Sports comprising 55,970 sq. ft..
Note: Totals may not sum due to rounding
20
<PAGE> 18
AVERAGE RENTS
The following table sets forth, for each of the last three years and the nine
months of 1999 annualized, certain information regarding operating trends with
respect to the existing Mills and The Block at Orange.
<TABLE>
<CAPTION>
MINIMUM RENT PLUS PERCENTAGE RENTS
-------------------------------------------------------------------------------
AVERAGE TOTAL STORES ANCHOR STORES SPECIALTY STORES
PERCENT ------------------------------------------------------------------------------------
LEASED (1) TOTAL PER SQ. FT. TOTAL PER SQ. FT. TOTAL PER SQ. FT.
---------- ----- ----------- ----- ----------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
POTOMAC MILLS
1999 (3rd Qtr) 96% $ 22,185,003 $14.76 $ 6,218,798 $ 6.94 $ 15,966,205 $26.32
1998 95 21,443,619 14.43 6,001,966 6.75 15,441,653 25.91
1997 96 20,980,272 14.04 6,284,111 6.86 14,696,161 25.44
1996 96 20,865,975 14.00 6,142,999 6.76 14,722,976 23.32
FRANKLIN MILLS
1999 (3rd Qtr) 96% 19,094,020 13.01 7,010,031 7.54 12,083,989 22.48
1998 94 17,689,143 12.38 6,050,348 6.61 11,638,795 22.64
1997 92 16,549,052 11.47 5,700,661 6.05 10,848,391 21.68
1996 92 16,318,689 11.40 5,291,698 5.67 11,026,991 22.16
SAWGRASS MILLS
1999 (2) (3rd Qtr) 98% 27,704,545 17.52 7,488,197 8.11 20,216,347 30.72
1998 (2) 98 26,969,276 17.29 7,265,079 8.13 19,704,197 29.57
1997 (2) 97 26,448,955 17.08 7,384,896 8.28 19,064,059 29.04
1996 98 25,787,924 16.55 7,150,346 8.03 18,637,578 27.90
GURNEE MILLS
1999 (3rd Qtr) 96% 18,592,769 13.62 5,410,140 6.86 13,182,630 22.86
1998 96 17,525,250 13.06 5,022,342 6.52 12,502,908 21.85
1997 91 15,900,406 13.80 4,418,036 7.42 11,482,370 20.63
1996 90 15,340,496 13.62 3,823,991 6.78 11,516,505 20.50
ONTARIO MILLS
1999 (3rd Qtr) 98% 20,015,488 16.66 7,441,181 10.62 12,574,307 25.11
1998 98 19,516,934 16.50 7,300,086 10.61 12,216,848 24.68
1997 95 18,708,479 17.11 6,358,058 10.11 12,350,421 26.59
GRAPEVINE MILLS
1999 (3rd Qtr) 97% 21,569,125 17.84 8,942,220 12.81 12,626,905 24.70
1998 95 21,108,019 18.03 8,797,950 12.74 12,310,069 25.63
ARIZONA MILLS
1999 (3rd Qtr) 97% 21,158,591 17.70 7,969,445 11.46 13,189,146 26.36
1998 95 19,165,290 16.82 7,262,540 10.83 11,902,750 25.41
TOTAL - MILLS
1999 (3rd Qtr) 97% $ 150,319,541 $15.78 $ 50,480,012 $ 8.96 $ 99,839,529 $25.66
1998 96 143,417,531 15.41 47,700,311 8.65 95,717,220 25.24
1997 94 98,587,164 14.65 30,145,762 7.58 68,441,402 24.84
1996 94 78,313,084 13.97 22,409,034 6.80 55,904,050 24.21
THE BLOCK AT ORANGE
1999 (3rd Qtr) 93% 16,000,763 26.65 6,800,282 18.91 9,200,482 38.24
TOTAL (INCL THE BLOCK)
1999 (3rd Qtr) 97% $ 166,320,304 16.43 $ 57,280,293 9.56 $ 109,040,011 26.39
</TABLE>
- ---------------------
(1) Average percent leased is defined as total average space leased and for
which rent was being paid excluding tenants with leases having a term of
less than one year.
(2) Annual rent excludes $500,000 of ground lease rent for 1999 and $800,000 of
ground lease rent for 1998 and 1997.
Note: The above amounts do not include Mainstreet retail income of $1,498,769
for 1999, $2,205,661 for 1998, $2,066,991 for 1997, and $2,088,000 for
1996. 1999 includes an estimate of annualized percentage rents.
21
<PAGE> 19
THE MILLS CORPORATION
SUMMARY OF OUTSTANDING CONSOLIDATED INDEBTEDNESS
(DOLLARS IN THOUSANDS)
AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
Principal
Balance Annual Interest
(000's) Term Rate
------- ---- ----
<S> <C> <C> <C>
Potomac Mills/Gurnee Mills:
Tranche A $203,555 Fixed 6.905%
Tranche B 27,000 Fixed 7.021%
Tranche C 15,000 Fixed 7.235%
Tranche D 30,000 Fixed 7.701%
Franklin Mills and Liberty Plaza
Tranche A 107,775 Fixed 7.882%
Mortgage Loan 19,613 Fixed 7.440%
Mortgage Loan 12,848 Fixed 6.220%
Sawgrass Mills:
Tranche A 115,000 Fixed 6.450%
Tranche B 10,000 Variable with cap 85 bp over Libor (6)
Tranche C 20,000 Variable with cap 230 bp over Libor (6)
Sawgrass Mills - Phase II 18,000 Fixed 6.970%
Ten Community Centers 111,912 Fixed 7.300%
Concord Mills Residual III 8,672 Variable 200 bp over Libor
----------
Total Property Mortgages 699,375
----------
Sawgrass Mills Mezzanine Loan 57,000 Variable 475 bp over Libor
Corporate Misc 457 Fixed 8.250%
Corporate Misc 2,400 Fixed 6.200%
Corporate Line of Credit 93,000 Variable 150 bp over Libor
Corporate Misc 15,000 Variable 125 bp over Libor
Sawgrass Residual 4,700 Variable 165 bp over Libor
==========
Total $871,932
==========
<CAPTION>
Annual Earliest day Recourse to
Maturity Interest at which debt Company or
Date (000's) can be repaid Op. Ptnrshp
---- ------- ------------- -----------
<S> <C> <C> <C> <C>
Potomac Mills/Gurnee Mills:
Tranche A 12/17/26(1) $14,054 (2) 0%
Tranche B 12/17/26(1) 1,896 (2) 0%
Tranche C 12/17/26(1) 1,085 (2) 0%
Tranche D 12/17/26(1) 2,310 (2) 0%
Franklin Mills and Liberty Plaza 0%
Tranche A 6/1/27(3) 8,495 (4) 0%
Mortgage Loan 6/1/27(3) 1,459 (4) 0%
Mortgage Loan 6/1/27(3) 799
Sawgrass Mills:
Tranche A 1/18/01 7,418 (5) 0%
Tranche B 1/18/01 625 (7) (5) 0%
Tranche C 1/18/01 1,540 (7) (5) 0%
Sawgrass Mills - Phase II 1/18/01 1,255 (8) 0% (14)
Ten Community Centers 2/1/29 8,170 (15) 0%
Concord Mills Residual III 12/31/00 642 (16) 100%
----------
Total Property Mortgages 49,748
----------
Sawgrass Mills Mezzanine Loan 10/1/00 5,786 (7) (17) 0% (18)
Corporate Misc 10/31/00 38 (11) 0%
Corporate Misc 7/15/00 149 (11) 0%
Corporate Line of Credit 4/1/00 6,417 (7) (8), (10) 100%
Corporate Misc 1/18/00 998 (7) (13) 100%
Sawgrass Residual 1/18/01 331 (7) (12) 0%
==========
Total $63,467
==========
</TABLE>
(1) This indebtedness is a 30 year amortizing loan with an anticipated balloon
repayment on December 18, 2003. In the event the mortgage loan is not
repaid by the anticipated balloon repayment date, the annual interest rate
for each tranche will be increased by 2% per annum in excess of the stated
interest rate. In addition, excess cash flow available after payment of the
increased interest rate and scheduled amortization will be used to reduce
the principal balance of the loan. Principal repayments are based on the
scheduled amortization, assuming a 7% mortgage interest rate, over a 30
year period, with the monthly amortization payments being applied
sequentially, beginning with Tranche A to reduce the principal balance.
(2) Optional payments of principal are not permitted prior to December 17,
1999. After such date, prepayments, in whole or in part, are permitted upon
at least 15 days notice. In addition, the Company is required to pay a
prepayment penalty equal to the greater of (i) 1% of the remaining
principal balance or (ii) a yield preservation payment. Generally, yield
preservation payments are intended to compensate the lender for the total
amount of interest it would have earned on the indebtedness but for the
repayment, less the amount of interest that the lender could earn if it
invested the repayment amount in United States Treasury obligations or
other similar securities from the date of the repayment through the
maturity date of the indebtedness.
(3) This indebtedness is a 30 year amortizing loan with an anticipated balloon
repayment on May 5, 2007. In the event the mortgage loan is not repaid by
the anticipated balloon repayment date, the annual interest rate will be
increased by 5% per annum in excess of the stated interest rate. In
addition, excess cash flow available after payment of the increased
interest rate and scheduled amortization will be used to reduce the
principal balance of the loan.
(4) This indebtedness may be prepaid, without a prepayment penalty, beginning
180 days prior to May 5, 2007. Prior to that date, there is no right to
prepay the indebtedness, except that $12.5 million of the principal
balance, which has been allocated to the Liberty Plaza shopping center, may
be defeased through the establishment of defeasance collateral (which may
include government or agency securities that have the full faith and credit
of the United States government).
(5) Optional payments of principal on Tranche A of this indebtedness are not
permitted prior to June 20, 2000 other than in connection with certain
casualty or condemnation events occurring with respect to Sawgrass Mills.
On and after such date, Tranche A may be prepaid in full, but not in part,
without any prepayment penalty. Optional prepayments of Tranches B and C of
the indebtedness may be made, in whole or in part, at any time without any
prepayment penalty, but only if payments of interest are current with
respect to each outstanding Tranche and an event of default is not then
continuing.
(6) The loan agreement provides for a cap on LIBOR at 14% for the life of the
loan.
(7) Calculated using 30-day LIBOR at 5.40%, which was the rate at September 30,
1999.
(8) Prepayable, in whole or in part, at any time without prepayment penalty.
(9) This indebtedness may be prepaid, in whole or in part, upon 30 days notice
to the lender and the payment of a prepayment penalty. The penalty
percentage due on prepayment is 1.5% of the outstanding principal. During
the last three months of its term, the indebtedness may be prepaid without
penalty.
(10) The total commitment under the Line of Credit is $100,000. Funds are
available subject to certain performance measures and restrictive
covenants. This loan bears interest at a variable rate ranging from 100 bp
to 165 bp over Libor subject to certain leverage tests (Libor + 150 bp at
9/30/99). The line of credit matures April 1, 2000 with a one-year option
to extend.
(11) Primarily corporate debt with maturities under one year. Prepayable, in
whole or in part, at any time without prepayment penalty.
(12) Prepayable, in whole or in part, at any time, upon 3 days prior notice to
lender without prepayment penalty.
(13) Prepayable, in whole or in part, at any time, upon 5 days prior notice to
lender without prepayment penalty.
(14) Principal is guaranteed by the Company if the Phase II project fails to
achieve a DSC (debt service coverage) ratio of 1.35 and a debt yield of
12.5%. As of September 30, 1999, the guaranteed amount was 0%.
(15) The indebtedness is a 30 year amortizing loan with an anticipated balloon
repayment date of February 1, 2009. Interest is payable at a fixed rate of
7.30%. The principal is guaranteed by the Company. In the event the
mortgage is not repaid by the anticipated balloon repayment date, the
interest rate will be the greater of (I) the loan interest rate plus 2% or
(ii) the yield calculated by the linear interpolation of the yields of
noncallable United States Treasury obligations with terms (one longer and
one shorter) most nearly approximating the period from such date of
determination to the anticipated repayment date.
(16) The total commitment under this loan is $9,000. Funds are available subject
to certain performance measures and restrictive covenants. Interest accrues
at 200 bp over LIBOR. The indebtedness matures on December 31, 2000.
(17) Optional payments of principal are not permitted prior to September 11,
1999. After September 11, 1999 but before December 11, 1999, the indebtness
may be prepaid in whole or in part with at least 5 business days notice
with a prepayment premium equal to 1% of the principal indebtness being
repaid. After December 11, 1999, the indebtness may be prepaid in whole or
or in part with at least 5 business days notice without a prepayment fee.
(18) The loan is secured by the Company's interest in the property.
22
<PAGE> 20
THE MILLS CORPORATION
SUMMARY OF OUTSTANDING UNCONSOLIDATED INDEBTEDNESS
(DOLLARS IN THOUSANDS)
AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
Principal
Balance Total Annual Interest
(000's) Commitment Term Rate
------- ---------- ---- ----
<S> <C> <C> <C> <C>
Arizona Mills $142,214 $142,214 Variable 130 bp over Libor (4),(5)
Grapevine Mills 155,000 155,000 Fixed 6.465%
Ontario Mills 143,961 145,000 Fixed 6.750%
City Block at Orange 127,302 136,000 Variable 135 bp over Libor (6)
Sawgrass Phase III 41,164 44,000 Variable 165 bp over Libor (7)
Concord Mills 146,879 199,000 Variable 135 bp over Libor
Katy Mills 92,803 168,000 Variable 200 bp over Libor
Opry Mills 0 168,000 Variable 200 bp over Libor
--------- -----------
Total $849,323 $1,157,214
========= ===========
<CAPTION>
Annual Earliest day Recourse to
Maturity Interest at which debt Company or
Date (000's) can be repaid Op. Ptnrshp
---- ------- ------------- -----------
<S> <C> <C> <C> <C>
Arizona Mills 2/1/02 9,528 (1) 9.2% (10)
Grapevine Mills 9/1/32 (8) 10,021 (2) 0.0%
Ontario Mills 12/1/28 (9) 9,717 (3) 0.0%
City Block at Orange 1/22/02 8,593 (4) (3) 26.7% (11)
Sawgrass Phase III 1/18/01 2,902 (4) (15) 0.0% (12)
Concord Mills 12/2/01 9,914 (4) (2) 50.0% (13)
Katy Mills 3/31/02 6,867 (4) (15) 100.0% (14)
Opry Mills 10/1/02 0 (4) (16) 100.0% (17)
-------
Total $57,542
=======
</TABLE>
(1) The indebtedness may be prepaid, in whole or in part, upon 5 business days
notice to the Administrative Agent, provided that (i) an partial prepayment
shall be in principal amount of not less than $1 million and an integral
multiple of $100,000; and (ii) each prepayment under this shall include all
interest accrued on the amount of principal prepaid (and all late charges
and other sums that may be payable) through the date of prepayment.
(2) This indebtedness may be prepaid, in whole or in part, upon 3 business days
notice to the Administrative Agent.
(3) The Company shall have the right to make prepayments of the loan, without
penalty and a late charge, as the case may be following the occurrence of
an Event of Default under any of the Loan Documents), in whole or in part,
upon not less than 5 Business Days prior written notice to Lender. No
prepayment of all or part of the Loan, including any mandatory prepayment
of the Loan made as a result of an acceleration of the Loan or pursuant to
the immediately preceding sentence, shall be permitted unless same is made
together with the payment of all interest accrued on the Loan through the
date of prepayment and an amount equal to all Breakage Costs and
reasonable, out-of-pocket attorneys' fees and disbursements incurred by
Lender and any participants in good faith as a result of the prepayment.
(4) Calculated using 30-day LIBOR at 5.40%, which was the rate at September 30,
1999.
(5) The Applicable Margin may be reduced to 115 basis points if the Company
receives a "private letter bank loan rating equal to or better than "A-".
(6) Interest Rate shall be LIBOR plus (a) 165 basis points until the following
conditions have been satisfied: (i) the Construction Phase Completion Date
has occurred, (ii) the Grand Opening Date has occurred, (iii) 33% of the
Specialty Space has been and continues to be leased to Specialty Tenants
and 55% of the Anchor Space has been and continues to be leased to Anchors,
(iv) the DSC Ratio for any Calculation Period is equal to or greater than
1.00 and (v) no Event of Default is continuing. Once these conditions have
been satisfied the Interest Rate shall be LIBOR plus 150 bp. A further
reduction to Libor plus 135 bp shall occur once the DSC Ratio for any
period is equal to or greater than 1.25. Interest Rate will reduce to LIBOR
plus 125 bp when the DSC Ratio for any period is equal to or greater than
1.40. Interest Rate will reduce to LIBOR plus 115 bp when the DSC Ratio for
any period is equal to or greater than 1.50.
(7) Interest Rate shall be LIBOR plus (a) 165 basis points until the following
conditions have been satisfied: (i) the Construction Phase Completion Date
has occurred and the project has achieved a DSC ratio of 1.00, the interest
rate shall be LIBOR plus 150 bp; (ii) the project has achieved a DSC ratio
of 1.30 and a debt yield of 12.0% for a minimum of three months, the
interest rate shall be LIBOR plus 125 bp; (iii) the project has achieved a
DSC ratio of 1.35 and a debt yield of 12.5% for a subsequent three months,
the interest rate will be LIBOR plus 110 bp.
(8) This indebtedness is a 30 year amortizing loan with an anticipated
repayment date on October 1, 2008. The loan has an interest only period
through September 1, 2002. In the event the mortgage loan is not repaid by
the anticipated balloon repayment date, the annual interest rate will be
the greater of (i) the loan interest rate plus 2% or (ii) the yield
calculated by linear interpolation of the yields of noncallable United
States Treasury obligations with terms (one longer and one shorter) most
nearly approximating the period from such date of determination to the
anticipated repayment date.
(9) This indebtedness is a 30 year amortizing loan with an anticipated
repayment date on December 1, 2008. In the event the mortgage is not repaid
by the anticipated balloon repayment date, the annual interest rate will be
the greater of (i) the loan interest rate plus 5% or (ii) the Treasury Rate
plus 5%.
(10) Principal is guaranteed on a several basis by each partner (the Company's
share is 36.8%) reduced as follows: (i) as of closing, the "Guaranteed
Amount" was 100% of Loan Amount; (ii) upon completion of construction,
opening and achieving $16,000 of "In-Place Minimum Rent," the Guaranteed
Amount will reduce to 50%; (iii) upon achieving a 13.5% "Debt Yield,"
("Debt Yield" is defined as EBITDA to total loan commitment) the Guaranteed
Amount will reduce to 25% of the Loan Amount; (iv) upon achieving a 15%
"Debt Yield," the Guaranteed Amount will reduce to 15% of the Loan Amount;
and (v) upon achieving a 17% Debt Yield and an appraised value indicating a
loan to value ratio of no greater than 55%, the Guaranteed Amount will
reduce to $0. As of September 30, 1999, the Company's share of the
Guaranteed Amount was reduced from 36.8% to 9.2% according to the above
formula.
(11) Principal is guaranteed by the Company, reduced as follows: (i) as of
closing, the "Guaranteed Amount" was 100% of Loan Amount; (ii) upon
construction completion, grand opening and a Debt Service Coverage ratio of
1.00 the Guaranteed Amount will reduce to $68,000; (iii) upon achieving a
DSC ratio of 1.25 the Guaranteed Amount will reduce to $34,000; (iv) upon
achieving a DSC Ratio of 1.40 the Guaranteed Amount will reduce to 10%; and
(v) upon achieving a DSC Ratio of 1.50 the Guaranteed Amount will reduce to
0%. As of September 30, 1999 the guarantee amount was $34,000.
(12) Principal is guaranteed by the Company, reduced as follows: (i) as of
closing, the "Guaranteed Amount" was 100% of Loan Amount; (ii) upon
achieving a DSC Ratio of 1.35 and a debt yield of 12.5% will reduce to 0%.
As of September 30, 1999, the guarantee amount was 0%.
(13) The loan commitment has a term of three years with two one-year options.
The interest rate will be Libor plus 135 basis points until completion and
occupancy requirements are met. Once achieved, the interest rate will be
Libor plus 120 basis points. The interest rate can be further reduced to
Libor plus 110 basis points when the project achieves a debt service
coverage for three months of 1.35. The new loan is guaranteed severally by
the Company (50%) and Simon Property Group, L.P. (50%) and can be reduced
as follows: (i) as of closing, the "Guaranteed Amount" was 100% of loan
amount; (ii) 50% upon achieving completion and occupancy requirements;
(iii) 35% upon achieving a DSC ratio of 1.20 for three consecutive months;
(iv) 20% upon achieving a DSC ratio of 1.35 for three consecutive months
subsequent to the prior condition.
(14) The loan commitment has a term of three years with a one-year extension
option. The principal is guaranteed by the Company and can be reduced as
follows: (i) as of closing, the "Guaranteed Amount" was 100% of loan
amount; (ii) upon completion of construction, grand opening and a Debt
Service Coverage ratio of 1.00 the Guaranteed Amount will reduce to 50%;
(iii) upon achieving a Debt Service Coverage ratio of 1.25 the Guaranteed
Amount will reduce to 25%. As of Septemer 30, 1999, the guarantee amount
was 100%.
(15) This indebtedness may be prepaid, in whole or in part, upon 5 business days
notice to the Administrative Agent.
(16) The indebtedness may be prepaid, in whole or in part, upon 3 business days
notice to the Administrative Agent, provided that each prepayment under
this loan shall include all interest accrued on the amount of principal
prepaid (and all late charges and other sums that may be payable) through
the date of prepayment.
(17) The loan commitment has a term of three years with a one-year extension
option. The principal is guaranteed by the Company and can be reduced as
follows: (i) as of closing, the "Guaranteed Amount" was 100% of loan
amount; (ii) upon completion of construction, fulfilling certain occupancy
requirements as defined per construction loan agreement and a debt service
coverage ratio of 1.10 the Guaranteed Amount will reduce to 50%.
23
<PAGE> 21
THE MILLS CORPORATION
GROSS SALES
SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
Twelve Months ended September 30, 1999
--------------------------------------
Sq Ft Sales psf
----- ----- ---
<S> <C> <C> <C>
Potomac Mills:
Anchor/Majors (1) 904,826 $ 202,736,680 $ 224
Specialty 595,506 192,900,739 324
Temporary/Kiosk - 3,170,979 -
-----------------------------------------------------------------
1,500,332 $ 398,808,398 $ 266
Franklin Mills:
Anchor/Majors (1) 962,442 $ 156,248,099 $ 162
Specialty 540,541 169,002,646 313
Temporary/Kiosk - 1,594,403 -
-----------------------------------------------------------------
1,502,983 $ 326,845,148 $ 217
Sawgrass Mills:
Anchor/Majors (1) 1,142,301 $ 338,340,060 $ 296
Specialty 654,591 288,953,311 441
Temporary/Kiosk - 8,017,991 -
-----------------------------------------------------------------
1,796,892 $ 635,311,362 $ 354
Gurnee Mills:
Anchor/Majors (1) 829,648 $ 144,598,168 $ 174
Specialty 572,196 164,268,524 287
Temporary/Kiosk - 7,063,556 -
-----------------------------------------------------------------
1,401,844 $ 315,930,248 $ 225
Ontario Mills:
Anchor/Majors (1) 847,994 $ 139,859,145 $ 165
Specialty 482,017 172,120,742 357
Temporary/Kiosk - 8,187,482 -
-----------------------------------------------------------------
1,330,011 $ 320,167,369 $ 241
Total Mills w/o Grapvine
Mills and Arizona Mills
Anchor/Majors (1) 4,687,211 $ 981,782,152 $ 209
Specialty 2,844,851 987,245,962 347
Temporary/Kiosk - 28,034,411 -
-----------------------------------------------------------------
7,532,062 $ 1,997,062,525 $ 265
Grapevine Mills:
Anchor/Majors 665,583 $ 114,102,906 $ 171
Specialty 507,180 151,335,145 298
Temporary/Kiosk - 8,400,083 -
-----------------------------------------------------------------
1,172,763 $ 273,838,134 $ 233
Arizona Mills:
Anchor/Majors 663,358 $ 118,177,120 $ 178
Specialty 485,915 145,762,505 300
Temporary/Kiosk - 7,039,689 -
-----------------------------------------------------------------
1,149,273 $ 270,979,314 $ 236
Total Mills
Anchor/Majors (1) 6,016,152 $ 1,214,062,178 $ 202
Specialty 3,837,946 1,284,343,612 335
Temporary Kiosk - 43,474,183 -
-----------------------------------------------------------------
9,854,098 $ 2,541,879,973 $ 258
=================================================================
</TABLE>
<TABLE>
<CAPTION>
Twelve Months ended September 30, 1998
--------------------------------------
Sq Ft Sales psf
----- ----- ---
<S> <C> <C> <C>
Potomac Mills:
Anchor/Majors (1) 899,424 $ 186,521,953 $ 207
Specialty 571,082 185,932,544 326
Temporary/Kiosk - 6,985,853 -
-----------------------------------------------------------------
1,470,506 $ 379,440,350 $ 258
Franklin Mills:
Anchor/Majors (1) 976,512 $ 163,371,002 $ 167
Specialty 503,938 147,931,968 294
Temporary/Kiosk - 4,279,323 -
-----------------------------------------------------------------
1,480,450 $ 315,582,293 $ 213
Sawgrass Mills:
Anchor/Majors (1) 1,171,647 $ 356,448,960 $ 304
Specialty 666,950 301,898,936 453
Temporary/Kiosk - 12,947,770 -
-----------------------------------------------------------------
1,838,597 $ 671,295,666 $ 365
Gurnee Mills:
Anchor/Majors (1) 811,690 $ 134,915,392 $ 166
Specialty 571,208 158,379,065 277
Temporary/Kiosk - 7,491,381 -
-----------------------------------------------------------------
1,382,898 $ 300,785,838 $ 218
Ontario Mills:
Anchor/Majors (1) 825,593 $ 136,743,331 $ 166
Specialty 476,471 164,766,035 346
Temporary/Kiosk - 7,553,640 -
-----------------------------------------------------------------
1,302,064 $ 309,063,006 $ 237
Total Mills w/o Grapvine
Mills and Arizona Mills
Anchor/Majors (1) 4,684,866 $ 978,000,638 $ 209
Specialty 2,789,649 958,908,548 344
Temporary/Kiosk - 39,257,967 -
-----------------------------------------------------------------
7,474,515 $ 1,976,167,153 $ 264
Grapevine Mills:
Anchor/Majors N/A (1) N/A (1) N/A (1)
Specialty N/A (1) N/A (1) N/A (1)
Temporary/Kiosk N/A (1) N/A (1) N/A (1)
-----------------------------------------------------------------
N/A (1) N/A (1) N/A (1)
Arizona Mills:
Anchor/Majors N/A (1) N/A (1) N/A (1)
Specialty N/A (1) N/A (1) N/A (1)
Temporary/Kiosk N/A (1) N/A (1) N/A (1)
-----------------------------------------------------------------
N/A (1) N/A (1) N/A (1)
Total Mills
Anchor/Majors (1) 4,684,866 $ 978,000,638 $ 209
Specialty 2,789,649 958,908,548 344
Temporary Kiosk - 39,257,967 -
-----------------------------------------------------------------
7,474,515 $ 1,976,167,153 $ 264
=================================================================
</TABLE>
<TABLE>
<CAPTION>
Twelve Months ended December 31, 1998
-------------------------------------
Sq Ft Sales psf
----- ----- ---
<S> <C> <C> <C>
Potomac Mills:
Anchor/Majors (1) 951,043 $ 191,678,102 $ 202
Specialty 580,658 185,618,081 320
Temporary/Kiosk - 5,155,021 -
------------------------------------------------------------
1,531,701 $ 382,451,204 $ 250
Franklin Mills:
Anchor/Majors (1) 971,940 $ 155,395,973 $ 160
Specialty 527,403 155,109,858 294
Temporary/Kiosk - 3,496,367 -
------------------------------------------------------------
1,499,343 $ 314,002,198 $ 209
Sawgrass Mills:
Anchor/Majors (1) 1,174,642 $ 353,258,477 $ 301
Specialty 664,466 297,963,690 448
Temporary/Kiosk - 10,588,716 -
------------------------------------------------------------
1,839,108 $ 661,810,883 $ 360
Gurnee Mills:
Anchor/Majors (1) 831,201 $ 141,156,686 $ 170
Specialty 565,887 159,651,566 282
Temporary/Kiosk - 6,515,341 -
------------------------------------------------------------
1,397,088 $ 307,323,593 $ 220
Ontario Mills:
Anchor/Majors (1) 823,815 $ 136,055,601 $ 165
Specialty 482,653 166,299,546 345
Temporary/Kiosk - 8,188,974 -
------------------------------------------------------------
1,306,468 $ 310,544,121 $ 238
Total Mills w/o Grapvine
Mills and Arizona Mills
Anchor/Majors (1) 4,752,641 $ 977,544,839 $ 206
Specialty 2,821,067 964,642,741 342
Temporary/Kiosk - 33,944,419 -
------------------------------------------------------------
7,573,708 $ 1,976,131,999 $ 261
Grapevine Mills:
Anchor/Majors 657,994 $ 117,597,419 $ 179
Specialty 481,255 144,338,088 300
Temporary/Kiosk - 9,710,374 -
------------------------------------------------------------
1,139,249 $ 271,645,881 $ 238
Arizona Mills:
Anchor/Majors 669,035 $ 113,812,451 $ 170
Specialty 455,674 137,253,170 301
Temporary/Kiosk - 8,300,350 -
------------------------------------------------------------
1,124,709 $ 259,365,971 $ 231
Total Mills
Anchor/Majors (1) 6,079,670 $ 1,208,954,709 $ 199
Specialty 3,757,996 1,246,233,999 332
Temporary Kiosk - 51,955,143 -
------------------------------------------------------------
9,837,666 $ 2,507,143,851 $ 255
============================================================
</TABLE>
(1) Anchor/Major sales include sales from certain anchor tenants that own
their parcels.
24
<PAGE> 22
THE MILLS CORPORATION
COMPARABLE SPECIALTY STORES TENANT SALES
NINE MONTHS 1999 VS. NINE MONTHS 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
YTD YTD
Sept. 30, 1999 Sept. 30, 1998 Percentage
Sales Sales Change
----- ----- ------
<S> <C> <C> <C>
Property Name:
- --------------
Potomac Mills $112,854 $108,933 3.6%
Franklin Mills $ 77,758 $ 76,591 1.5%
Sawgrass Mills $193,470 $202,013 -4.2%
Gurnee Mills $ 83,146 $ 82,454 0.8%
Ontario Mills $100,776 $ 95,725 5.3%
-------- -------- -------
Total $568,004 $565,716 0.4%
======== ======== =======
</TABLE>
Note: Comparable sales presented above are based on tenant reported sales
for the nine months of 1999 versus the nine months of 1998 and include
only those tenants that have been in occupancy for the past 21 months.
Properties that have less than 24 months of operations have been
excluded.
25
<PAGE> 23
THE MILLS CORPORATION
CAPITAL EXPENDITURES
MILLS AND COMMUNITY CENTERS COMBINED (9)
<TABLE>
<CAPTION>
Nine Months Ended Year ended December 31,
September 30, 1999 1998 1997
------------------------- --------------- --------------
<S> <C> <C> <C>
RECURRING NON-TENANT CAPITAL EXPENDITURES (1)
Costs $ 182,777 $ 1,453,123 $ 435,742
Per Square Foot (2) 0.02 0.12 0.05
RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 2,237,452 $ 5,467,329 $ 5,143,206
Per Square Foot Improved (4) 12.18 7.85 11.90
Per Square Foot (2) 0.19 0.46 0.62
TOTAL RECURRING COSTS
Costs $ 2,420,229 $ 6,920,452 $ 5,578,948
Per Square Foot (2) 0.20 0.58 0.67
NON RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 13,254,647 (7) $ 18,911,845 (7) $ 41,571,485 (7)
Per Square Foot Improved (5) 60.10 71.68 73.69
Per Square Foot (2) 1.10 1.58 5.03
WORK IN PROCESS (6)
Cummulative Costs $ 4,951,289 $ 8,447,326 $ 4,703,992
Cummulative Per Square Foot Improved (8) 22.15 25.99 14.59
</TABLE>
(1) Recurring non-tenant capital expenditures include expenditures that are not
tenant related nor recoverable from tenants.
(2) Includes annual costs divided by total GLA (excluding space owned by
certain anchor store tenants) of the Properties
(3) Tenant Improvements/Leasing costs include tenant specific costs including
tenant improvements, tenant allowances and capitalized internal leasing
costs.
(4) Calculated as Recurring Tenant Improvements/Leasing Costs divided by GLA of
all Recurring Store Openings (including spaces requiring no expenditures).
(5) Calculated as Non-Recurring Tenant Improvements/Leasing Costs divided by
GLA of all Non-Recurring Store Openings.
(6) Work in process that will be shown as Recurring or Non-Recurring when the
work is completed.
(7) Includes expansion costs for Franklin Mills and Gurnee Mills and
non-recurring remerchandising costs. Excludes expansion costs for Sawgrass
Phase III.
(8) Calculated as Work In Process divided by GLA of all space with work in
process.
(9) Excludes projects that have less than twelve months of operations.
26
<PAGE> 24
THE MILLS CORPORATION
CAPITAL EXPENDITURES
MILLS PORTFOLIO (9)
<TABLE>
<CAPTION>
Nine Months Ended Year ended December 31,
September 30, 1999 1998 1997
------------------- ------------- --------------
<S> <C> <C> <C>
RECURRING NON-TENANT CAPITAL EXPENDITURES (1)
Costs $ 96,330 $ 949,095 $ 388,003
Per Square Foot (2) 0.01 0.10 0.06
RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 2,046,080 $ 4,274,398 $ 4,518,073
Per Square Foot Improved (4) 12.05 8.53 13.35
Per Square Foot (2) 0.21 0.44 0.75
TOTAL RECURRING COSTS
Costs $ 2,142,410 $ 5,223,493 $ 4,906,076
Per Square Foot (2) 0.22 0.54 0.81
NON RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 12,844,158 (7) $ 18,175,677 (7) $ 41,010,815 (7)
Per Square Foot Improved (5) 65.74 96.48 78.37
Per Square Foot (2) 1.31 1.86 6.77
WORK IN PROCESS (6)
Cummulative Costs $ 1,453,714 $ 6,779,660 $ 3,989,739
Cummulative Per Square Foot Improved (8) 19.59 38.45 31.27
</TABLE>
(1) Recurring non-tenant capital expenditures include expenditures that are not
tenant related nor recoverable from tenants.
(2) Includes annual costs divided by total GLA (excluding space owned by
certain anchor store tenants) of the Properties
(3) Tenant Improvements/Leasing costs include tenant specific costs including
tenant improvements, tenant allowances and capitalized internal leasing
costs.
(4) Calculated as Recurring Tenant Improvements/Leasing Costs divided by GLA of
all Recurring Store Openings (including spaces requiring no expenditures).
(5) Calculated as Non-Recurring Tenant Improvements/Leasing Costs divided by
GLA of all Non-Recurring Store Openings.
(6) Work in process that will be shown as Recurring or Non-Recurring when the
work is completed.
(7) Includes expansion costs at Franklin Mills and Gurnee Mills and
non-recurring remerchandising costs. Excludes costs relating to Sawgrass
Phase III expansion.
(8) Calculated as Work In Process divided by GLA of all space with work in
process.
(9) Excludes projects that have less than twelve months of operations.
27
<PAGE> 25
THE MILLS CORPORATION
CAPITAL EXPENDITURES
COMMUNITY CENTERS
<TABLE>
<CAPTION>
Nine Months Ended Year ended December 31,
September 30, 1999 1998 1997
---------------------- --------------- --------------
<S> <C> <C> <C>
RECURRING NON-TENANT CAPITAL EXPENDITURES (1)
Costs $ 86,447 $ 504,028 $ 47,739
Per Square Foot (2) 0.04 0.23 0.02
RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 191,372 $ 1,192,931 $ 625,133
Per Square Foot Improved (4) 13.85 6.10 6.68
Per Square Foot (1) 0.09 0.54 0.28
TOTAL RECURRING COSTS
Costs $ 277,819 $ 1,696,959 $ 672,872
Per Square Foot (2) 0.13 0.77 0.31
NON RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 410,489 $ 736,168 $ 560,670
Per Square Foot Improved (5) 16.30 9.76 13.73
Per Square Foot (2) 0.19 0.33 0.25
WORK IN PROCESS (6)
Cummulative Costs $ 3,497,575 $ 1,667,666 $ 714,253
Cummulative Per Square Foot Improved (7) 23.42 11.22 3.66
</TABLE>
(1) Recurring non-tenant capital expenditures include expenditures that are not
tenant related nor recoverable from tenants.
(2) Includes annual costs divided by total GLA (excluding space owned by
certain tenants) of the Community Centers
(3) Tenant Improvements/Leasing costs include tenant specific costs including
tenant improvements, tenant allowances and capitalized internal leasing
costs.
(4) Calculated as Recurring Tenant Improvements/Leasing Costs divided by GLA of
all Recurring Store Openings (including spaces requiring no expenditures).
(5) Calculated as Non-Recurring Tenant Improvements/Leasing Costs divided by
GLA of all Non-Recurring Store Openings.
(6) Work in process that will be shown as Recurring or Non-Recurring when the
work is completed.
(7) Calculated as Work In Process divided by GLA of all space with work in
process.
28
