<PAGE> 1
EXHIBIT 99.1
THE MILLS CORPORATION
SUPPLEMENTAL INFORMATION
TABLE OF CONTENTS
AS OF SEPTEMBER 30, 2000
INFORMATION PAGE
----------- ----
Overview 5-6
Summary of Operating Properties 7
Summary of Properties Under Construction 8
Supplemental Financial Data 9
Property Operating Income 10-13
Unconsolidated Joint Ventures Net Income
and Funds From Operations 14-15
Occupancy Analysis 16
Lease Expiration Schedule 17-19
Rental Rates 20
Average Rents 21-22
Summary of Outstanding Consolidated Indebtedness 23
Summary of Outstanding Unconsolidated Indebtedness 24
Gross Tenant Reported Sales 25
Comparable Specialty Store Tenant Sales 26
Capital Expenditures 27-29
Financial Ratios 30-31
<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, 2000, a 1%
interest as the sole general partner and a 58.68% 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), community shopping center and a portfolio of
single tenant net lease properties. As of September 30, 2000, 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)
Katy Mills Houston, TX (Houston)
Opry Mills Nashville, TN (Nashville)
Block
-----
The Block at Orange Orange, CA (Los Angeles)
Community Center
----------------
Liberty Plaza Philadelphia, PA
</TABLE>
In addition to the operating properties, the Company owns a portfolio of single
tenant net lease properties which are located at various locations in the United
States. Also, the Company is actively involved in the pre-development or
development of a number of new projects, including Arundel Mills (Dorchester,
MD), Discover Mills (Atlanta, GA), Colorado Mills (Denver, Colorado), Vaughan
Mills (Toronto, Cananda) and Meadowlands Mills (Carlstadt, NJ).
5
<PAGE> 3
THE MILLS CORPORATION
OVERVIEW
CAUTIONARY STATEMENT
Certain information contained in this Supplemental Information package may
constitute "forward-looking statements" for the purposes of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. These forward-looking statements are based on current
expectations and are not guarantees of future performance.
Forward-looking statements, 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, are subject to certain risks, trends and uncertainties
that could cause actual results to differ materially from those projected. Among
those risks, trends, and uncertainties are the general economic climate; the
supply and demand for retail properties; interest rate levels; the availability
of financing; and other risks associated with the development, acquisition, and
operation of retail properties, including risks that the development of a
project may not be completed on schedule, that the Company may not be able to
lease available space to tenants at favorable rental rates, that tenants will
not take occupancy or pay rent in accordance with their leases, or that
development or operating costs may be greater than anticipated.
The Company undertakes no duty or obligation to publicly announce any revisions
to, or updates of, these forward-looking statements that may result from future
events or circumstances.
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, 2000:
<TABLE>
<CAPTION>
Anchor Specialty
Total Store Store
Metropolitan Year Ownership GLA GLA GLA
Name/Location Area Serviced Opened Percentage (Sq. Ft.) (1) (sq.ft.) (1) (sq.ft.) (1)
------------------------------------- ------------- ------ ---------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
MILLS
Potomac Mills ....................... Washington D.C./ 1985 100% 1,635,591 1,008,915 626,676
Woodbridge, VA Baltimore
Franklin Mills ...................... Philadelphia/ 1989 100% 1,739,420 1,125,314 614,106
Philadelphia, PA Wilmington
Sawgrass Mills ...................... Fort Lauderdale, FL/ 1990 100% 1,845,342 1,168,725 676,617
Sunrise, FL Miami/Palm Beach
Gurnee Mills ........................ Chicago/Milwaukee 1991 100% 1,699,808 1,076,646 623,162
Gurnee, IL
Ontario Mills ....................... Los Angeles 1996 50% 1,471,096 961,527 509,569
Ontario, CA
Grapevine Mills ..................... Dallas/Fort Worth 1997 37.5% 1,547,611 1,026,628 520,983
Grapevine, TX
Arizona Mills ....................... Phoenix 1997 36.8% 1,233,884 700,731 533,153
Tempe, AZ
The Oasis at Sawgrass ............... Fort Lauderdale, FL/ 1999 50% 290,063 134,860 155,203
Sunrise, FL Miami/Palm Beach
Concord Mills ....................... Charlotte 1999 37.5% 1,257,042 691,338 565,704
Concord, NC
Katy Mills .......................... Houston 1999 62.5% 1,158,553 595,993 562,560
Houston, TX
Opry Mills .......................... Nashville 2000 66.7% 1,086,408 552,882 533,526
Nashville, TN
------------ ------------ ------------
MILLS TOTALS/WEIGHTED AVERAGES .. 14,964,818 9,043,559 5,921,259
============ ============ ============
The Block at Orange ................. Los Angeles/Orange 1998 50% 642,057 384,716 257,341
County ============ ============ ============
Liberty Plaza ....................... Philadelphia 315,027 262,747 52,280
============ ============ ============
<CAPTION>
12 Mos. Ended
Annualized No. of 9/30/00
Metropolitan Percent Base Anchor Specialty Store
Name/Location Area Serviced Leased (2) Rent (4) Stores (3) Sales PSF
------------------------------------- ------------- ---------- -------- ---------- ---------
<S> <C> <C> <C> <C> <C>
MILLS
Potomac Mills ....................... Washington D.C./ 98% $ 22,503,872 19 $ 332
Woodbridge, VA Baltimore
Franklin Mills ...................... Philadelphia/ 96% 18,686,891 18 313
Philadelphia, PA Wilmington
Sawgrass Mills ...................... Fort Lauderdale, FL/ 97% 25,265,858 19 433
Sunrise, FL Miami/Palm Beach
Gurnee Mills ........................ Chicago/Milwaukee 96% 18,043,084 17 300
Gurnee, IL
Ontario Mills ....................... Los Angeles 97% 20,008,015 23 387
Ontario, CA
Grapevine Mills ..................... Dallas/Fort Worth 98% 21,916,337 21 297
Grapevine, TX
Arizona Mills ....................... Phoenix 98% 19,724,207 16 316
Tempe, AZ
The Oasis at Sawgrass ............... Fort Lauderdale, FL/ 88% 5,157,711 3 527
Sunrise, FL Miami/Palm Beach
Concord Mills ....................... Charlotte 91% 19,155,921 16 N/A (5)
Concord, NC
Katy Mills .......................... Houston 92% 17,720,004 12 N/A (5)
Houston, TX
Opry Mills .......................... Nashville 93% 20,579,071 14 N/A (5)
Nashville, TN
------------ ------------
MILLS TOTALS/WEIGHTED AVERAGES .. 96% $208,760,971 178 $ 348
============ ============
The Block at Orange ................. Los Angeles/Orange 95% $ 14,070,722 10 $ 368
County ============ ============
Liberty Plaza ....................... Philadelphia 96% $ 2,274,230 3
============ ============
</TABLE>
(1) Includes 960,933 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; 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, 2000, excluding tenants
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) Annualized Base Rent is defined as the contractual minimum rent of
tenants comprising gross leaseable occupied area at 9/1/00 multiplied by
12, excluding tenants as noted in footnote (1) and ground leases of
152,370 square feet at Franklin Mills and 177,063 square feet at
Grapevine Mills.
(5) Twelve months ended September 30, 2000 sales per square foot information
is not presented for Concord Mills, Katy Mills and Opry Mills which
commenced business September 1999, October 1999 and May 2000,
respectively. These projects have not reached stabilized performance
levels.
7
<PAGE> 5
THE MILLS CORPORATION
SUMMARY OF PROPERTIES UNDER CONSTRUCTION
<TABLE>
<CAPTION>
Estimated
Anticipated Approx. Aggregate
Metropolitan Opening GLA Company Project
Name/Location Area Serviced Date (1) (Sq. Ft.) (1,2) Ownership Cost (1)
------------------------ ------------- ----------- --------------- --------- ------------
(millions)
<S> <C> <C> <C> <C> <C>
Arundel Mills Baltimore/ Fall 1,300,000 37.5% $ 249
Dorchester, MD Washington D.C. 2000
Discover Mills Atlanta Spring 1,200,000 50.0% $ 238
Atlanta, GA 2001
<CAPTION>
Anchor
Required Company's Store
Metropolitan Equity from Equity at Tenant
Name/Location Area Serviced Company 9/30/00 Commitments
------------------------ ------------- ------------- ----------- -------------
(millions)
<S> <C> <C> <C> <C>
Arundel Mills Baltimore/ $ 17.50 $ 17.50 12
Dorchester, MD Washington D.C.
Discover Mills Atlanta $ - $ - 4
Atlanta, GA
</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.
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,
2000 1999 2000 1999
----------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
STATEMENT OF OPERATIONS DATA:
REVENUES:
Minimum rent $24,370 $25,787 $76,292 $77,752
Percentage rent 436 599 1,073 1,133
Recoveries from tenants 12,611 13,254 39,139 39,759
Other property revenue 2,373 2,307 6,873 5,728
Management fee income 2,599 1,005 6,213 3,010
Other fee income 3,187 2,325 8,099 6,310
Interest income 2,521 589 3,833 2,125
----------- ----------- ----------- ----------
Total revenues 48,097 45,866 141,522 135,817
EXPENSES:
Recoverable from tenants 10,968 11,424 33,616 34,634
Other operating 1,352 1,279 3,711 3,733
General and administrative 3,652 3,293 10,787 9,177
Interest expense 13,715 11,781 40,978 34,551
Depreciation and amortization 9,316 8,786 28,549 26,179
----------- ----------- ----------- ----------
Total expenses 39,003 36,563 117,641 108,274
Other income/(expense) 349 (99) (351) 544
Gain on sale of community centers 18,370 - 18,370 -
Equity in earnings of unconsolidated joint ventures 1,860 3,392 6,049 6,749
----------- ----------- ----------- ----------
Income before extraordinary item and minority interests 29,673 12,596 47,949 34,836
Extraordinary losses on debt extinguishments - - (3,147) (2,762)
----------- ----------- ----------- ----------
Income before minority interests 29,673 12,596 44,802 32,074
Minority interests (11,994) (5,115) (18,116) (13,028)
----------- ----------- ----------- ----------
Net income $17,679 $7,481 $26,686 $19,046
=========== =========== =========== ==========
Income per share before extraordinary item (Basic) $0.76 $0.32 $1.23 $0.89
=========== =========== =========== ==========
Income per share before extraordinary item (Diluted) $0.76 $0.32 $1.23 $0.89
=========== =========== =========== ==========
Net income per share (Basic) $0.76 $0.32 $1.15 $0.82
=========== =========== =========== ==========
Net income per share (Diluted) $0.76 $0.32 $1.15 $0.82
=========== =========== =========== ==========
FUNDS FROM OPERATIONS (*):
Income before extraordinary item
and minority interests $29,673 $12,596 $47,949 $34,836
Adjustments:
Add: Depreciation and amortization of real estate
assets 7,936 7,665 24,403 23,153
Add: Real estate depreciation and amortization
of unconsolidated joint ventures 6,633 3,106 19,968 8,690
Less: Gain on disposition of community
centers (18,370) - (18,370) -
----------- ----------- ----------- ----------
Funds from operations $25,872 $23,367 $73,950 $66,679
=========== =========== =========== ==========
BASIC:
Weighted average shares 23,288 23,087 23,231 23,070
Weighted average shares and units 39,116 38,931 39,059 38,914
DILUTED:
Weighted average shares 23,311 23,541 23,287 23,460
Weighted average shares and units 39,139 39,386 39,115 39,304
</TABLE>
Note: Included in total revenues for the three months and nine months
ended September 30, 2000 and 1999 were revenues relating to the
ten community centers that were sold on August 3, 2000. The
total revenues were $1,928 and $5,482 for the three months ended
September 30, 2000 and 1999 and $12,809 and $16,276 for the nine
months ended September 30, 2000 and 1999. Total expenses for
the ten community centers in the respective periods in 2000 and
1999 were $1,958 and $4,519 for the three month period and
$10,827 and $13,495 for the nine month period. Included in the
total expenses for the ten community centers were $766 and
$2,089 of interest expense and $351 and $1,006 of depreciation
expense for the three month period ended September 30, 2000 and
1999, respectively. For the nine month period ended September
30, 2000 and 1999 were $4,877 and $6,116 of interest expense
and $2,581 and $3,053 of depreciation expense.
------------------------------------------------------------------------------
(*) 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 accounting principles generally accepted in the United States
(GAAP)), excluding gains (losses) from debt restructuring and sales of
depreciated property, plus real estate related depreciation and
amortization 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, 2000
<TABLE>
<CAPTION>
WHOLLY OWNED PROPERTIES
Potomac Franklin Sawgrass Gurnee Mainstreet
------- -------- -------- ------ ----------
<S> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 5,587 $ 4,752 $ 6,535 $ 4,597 $ 856
Percentage rent 23 (2) 231 32 131
Recoveries from tenants 2,535 3,280 3,743 2,520 30
Other revenue 412 218 1,004 461 179
-----------------------------------------------------------------------------------
Total rental revenues 8,557 8,248 11,513 7,610 1,196
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,050 2,477 3,357 2,191 -
Other operating (1) 149 132 94 184 617
-----------------------------------------------------------------------------------
Total property operating costs 2,199 2,609 3,451 2,375 617
-----------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 6,358 $ 5,639 $ 8,062 $ 5,235 $ 579
===================================================================================
</TABLE>
<TABLE>
<CAPTION>
Total
w/o Disposed Disposed
Liberty Plaza Properties(2) Properties(2) Total
-------------- ----------- ----------- -----
<S> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $584 $ 22,911 $ 1,459 $ 24,370
Percentage rent - 415 21 436
Recoveries from tenants 153 12,261 350 12,611
Other revenue 1 2,275 98 2,373
------------------------------------------------------------------
Total rental revenues 738 37,862 1,928 39,790
PROPERTY OPERATING COSTS:
Recoverable from tenants 141 10,216 752 10,968
Other operating (1) 87 1,263 89 1,352
------------------------------------------------------------------
Total property operating costs 228 11,479 842 12,320
------------------------------------------------------------------
PROPERTY OPERATING INCOME $510 $ 26,383 $ 1,087 $ 27,470
==================================================================
</TABLE>
UNCONSOLIDATED JOINT VENTURES
<TABLE>
<CAPTION>
Ontario Grapevine Arizona The Block The Oasis
------- --------- ------- --------- ---------
<S> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 5,251 $ 6,101 $ 5,390 $ 4,048 $ 1,397
Percentage rent 40 88 245 44 -
Recoveries from tenants 2,495 2,951 1,929 733 527
Other revenue (2) 873 917 734 158 48
-----------------------------------------------------------------------------------
Total rental revenues 8,659 10,057 8,298 4,983 1,972
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,184 2,444 1,828 957 504
Other operating (1) 814 153 170 411 111
-----------------------------------------------------------------------------------
Total property operating costs 2,998 2,597 1,998 1,368 615
-----------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 5,661 $ 7,460 $ 6,300 $ 3,615 $ 1,357
===================================================================================
</TABLE>
<TABLE>
<CAPTION>
Concord Katy Opry Other Total
------- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 5,168 $ 4,951 $ 5,518 $ 38 $ 37,862
Percentage rent 1 - 48 - 466
Recoveries from tenants 1,682 2,147 1,819 1 14,284
Other revenue (2) 406 322 441 - 3,899
---------------------------------------------------------------------------------
Total rental revenues 7,257 7,420 7,826 39 56,511
PROPERTY OPERATING COSTS:
Recoverable from tenants 1,779 1,967 1,539 - 13,202
Other operating (1) 198 125 257 170 2,409
---------------------------------------------------------------------------------
Total property operating costs 1,977 2,092 1,796 170 15,611
---------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 5,280 $ 5,328 $ 6,030 $ (131) $ 40,900
=================================================================================
</TABLE>
(1) Total property operating costs excludes management fees as follows:
Potomac Mills - $246, Franklin Mills - $182, Sawgrass Mills - $265,
Gurnee Mills - $178, Liberty Plaza - $23, Disposed Properties - $55,
Ontario Mills - $265, Grapevine Mills - $355, Arizona Mills - $392, The
Block at Orange - $154, The Oasis at Sawgrass - $52 Concord Mills - $335,
Katy Mills - $193 and Opry Mills - $256.
(2) On August 3, 2000 the Company sold its interests in ten community centers
(the "Disposed Properties").
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, 1999
<TABLE>
<CAPTION>
WHOLLY OWNED PROPERTIES
Potomac Franklin Sawgrass Gurnee Mainstreet
------- -------- -------- ------ ----------
<S> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 5,412 $ 4,495 $ 6,435 $ 4,591 $ 543
Percentage rent 60 5 398 63 78
Recoveries from tenants 2,406 3,046 3,800 2,428 23
Other revenue 230 157 1,064 391 100
-----------------------------------------------------------------------------------
Total rental revenues 8,108 7,703 11,697 7,473 744
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,008 2,327 3,361 2,074 7
Other operating (1) 146 196 206 170 457
-----------------------------------------------------------------------------------
Total property operating costs 2,154 2,523 3,567 2,244 464
-----------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 5,954 $ 5,180 $ 8,130 $ 5,229 $ 280
===================================================================================
</TABLE>
<TABLE>
<CAPTION> Total
w/o Disposed Disposed
Liberty Plaza Properties (2) Properties (2) Total
-------------- -------------- ------------- -----
<S> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 510 $ 21,986 $ 3,801 $ 25,787
Percentage rent - 604 (5) 599
Recoveries from tenants 229 11,932 1,322 13,254
Other revenue 1 1,943 364 2,307
------------------------------------------------------------------
Total rental revenues 740 36,465 5,482 41,947
PROPERTY OPERATING COSTS:
Recoverable from tenants 312 10,089 1,335 11,424
Other operating (1) 15 1,190 89 1,279
------------------------------------------------------------------
Total property operating costs 327 11,279 1,424 12,703
------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 413 $ 25,186 $ 4,058 $ 29,244
==================================================================
</TABLE>
UNCONSOLIDATED JOINT VENTURES
<TABLE>
<CAPTION>
Ontario Grapevine Arizona The Block The Oasis
------- --------- ------- --------- ---------
<S> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 4,821 $ 5,375 $ 5,266 $ 3,993 $ 1,488
Percentage rent 51 - 26 7 -
Recoveries from tenants 2,358 2,564 2,396 747 385
Other revenue 560 556 399 304 36
----------------------------------------------------------------------------------
Total rental revenues 7,790 8,495 8,087 5,051 1,909
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,145 2,144 2,084 1,071 452
Other operating (1) 90 172 443 231 132
----------------------------------------------------------------------------------
Total property operating costs 2,235 2,316 2,527 1,302 584
----------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 5,555 $ 6,179 $ 5,560 $ 3,749 $ 1,325
==================================================================================
</TABLE>
<TABLE>
<CAPTION>
Concord Other Total
------- ----- -----
<S> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 859 $ 38 $ 21,840
Percentage rent - - 84
Recoveries from tenants 203 1 8,654
Other revenue 65 - 1,920
-------------------------------------------------
Total rental revenues 1,127 39 32,498
PROPERTY OPERATING COSTS:
Recoverable from tenants 299 1 8,196
Other operating (1) 4 45 1,117
-------------------------------------------------
Total property operating costs 303 46 9,313
-------------------------------------------------
PROPERTY OPERATING INCOME $ 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, Liberty Plaza - $20, Disposed Properties - $180, Ontario
Mills - $207, Grapevine Mills - $353, Arizona Mills - $326, The Block at
Orange - $154, The Oasis at Sawgrass - $47 and Concord Mills - $7.
(2) On August 3, 2000, the Company sold its interest in ten community centers
(the "Disposed Properties").
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.
<TABLE>
<CAPTION>
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
WHOLLY OWNED PROPERTIES Total
w/o Disposed
Potomac Franklin Sawgrass Gurnee Mainstreet Liberty Plaza Properties (2)
------- -------- -------- ------ ---------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 16,640 $ 13,848 $ 19,141 $ 13,629 $ 2,089 $ 1,676 $ 67,023
Percentage rent 57 55 462 97 288 - 959
Recoveries from tenants 7,473 9,264 11,337 7,541 85 549 36,249
Other revenue 1,098 755 2,813 1,114 516 41 6,337
---------------------------------------------------------------------------------------
Total rental revenues 25,268 23,922 33,753 22,381 2,978 2,266 110,568
PROPERTY OPERATING COSTS:
Recoverable from tenants 6,178 6,996 10,203 6,535 - 541 30,453
Other operating (1) 484 509 317 409 1,681 111 3,511
---------------------------------------------------------------------------------------
Total property operating costs 6,662 7,505 10,520 6,944 1,681 652 33,964
---------------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 18,606 $ 16,417 $ 23,233 $ 15,437 $ 1,297 $ 1,614 $ 76,604
=======================================================================================
<CAPTION>
WHOLLY OWNED PROPERTIES
Disposed
Properties (2) Total
------------ -----
<S> <C> <C>
RENTAL REVENUES:
Minimum rent $ 9,269 $ 76,292
Percentage rent 114 1,073
Recoveries from tenants 2,890 39,139
Other revenue 536 6,873
-----------------------
Total rental revenues 12,809 123,377
PROPERTY OPERATING COSTS:
Recoverable from tenants 3,163 33,616
Other operating (1) 200 3,711
-----------------------
Total property operating costs 3,363 37,327
-----------------------
PROPERTY OPERATING INCOME $ 9,446 $ 86,050
=======================
<CAPTION>
UNCONSOLIDATED JOINT VENTURES
Ontario Grapevine Arizona The Block The Oasis
------- --------- ------- --------- ---------
<S> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 15,422 $ 17,660 $ 16,065 $ 12,411 $ 4,393
Percentage rent 285 422 251 99 -
Recoveries from tenants 7,394 8,506 6,206 2,731 1,521
Other revenue 4,323 3,297 4,121 758 149
----------------------------------------------------------
Total rental revenues 27,424 29,885 26,643 15,999 6,063
PROPERTY OPERATING COSTS:
Recoverable from tenants 6,484 7,319 5,911 3,478 1,468
Other operating (1) 1,352 344 534 717 226
----------------------------------------------------------
Total property operating costs 7,836 7,663 6,445 4,195 1,694
----------------------------------------------------------
PROPERTY OPERATING INCOME $ 19,588 $ 22,222 $ 20,198 $ 11,804 $ 4,369
==========================================================
<CAPTION>
Concord Katy Opry Other Total
------- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 15,182 $ 14,651 $ 8,499 $ 114 $104,397
Percentage rent 127 167 48 - 1,399
Recoveries from tenants 4,635 6,587 2,935 3 40,518
Other revenue 1,306 1,059 673 - 15,686
---------------------------------------------------------
Total rental revenues 21,250 22,464 12,155 117 162,000
PROPERTY OPERATING COSTS:
Recoverable from tenants 4,647 6,313 2,533 - 38,153
Other operating (1) 413 441 432 283 4,742
---------------------------------------------------------
Total property operating costs 5,060 6,754 2,965 283 42,894
---------------------------------------------------------
PROPERTY OPERATING INCOME $ 16,190 $ 15,710 $ 9,190 $ (166) $119,106
=========================================================
</TABLE>
(1) Total property operating costs excludes management fees as follows:
Potomac Mills - $723, Franklin Mills - $573, Sawgrass Mills - $778,
Gurnee Mills - $542, Liberty Plaza - $69, Disposed Properties - $369,
Ontario Mills - $731, Grapevine Mills - $1,120, Arizona Mills - $1,081,
The Block at Orange - $484, The Oasis at Sawgrass - $159 Concord Mills -
$981, Katy Mills - $534 and Opry Mills - $333.
(2) On August 3, 2000, the Company sold its interest in ten community
centers (the "Disposed Properties").
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.
<TABLE>
<CAPTION>
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
WHOLLY OWNED PROPERTIES
Total
w/o Disposed
Potomac Franklin Sawgrass Gurnee Mainstreet Liberty Plaza Properties (2)
------- -------- -------- ------ ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 16,209 $ 13,934 $ 19,405 $ 13,372 $ 1,297 $ 1,748 $ 65,965
Percentage rent 85 60 635 99 202 - 1,081
Recoveries from tenants 7,273 8,952 11,596 7,251 54 586 35,712
Other revenue 604 639 2,653 961 476 5 5,338
-----------------------------------------------------------------------------------------
Total rental revenues 24,171 23,585 34,289 21,683 2,029 2,339 108,096
PROPERTY OPERATING COSTS:
Recoverable from tenants 6,242 7,049 10,363 6,326 7 657 30,644
Other operating (1) 502 665 453 453 1,258 72 3,403
------------------------------------------------------------------------------------------
Total property operating costs 6,744 7,714 10,816 6,779 1,265 729 34,047
------------------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 17,427 $ 15,871 $ 23,473 $ 14,904 $ 764 $ 1,610 $ 74,049
==========================================================================================
<CAPTION>
WHOLLY OWNED PROPERTIES
Disposed
Properties (2) Total
-------------- -----
<S> <C> <C>
RENTAL REVENUES:
Minimum rent $ 11,787 $ 77,752
Percentage rent 52 1,133
Recoveries from tenants 4,047 39,759
Other revenue 390 5,728
-----------------------
Total rental revenues 16,276 124,372
PROPERTY OPERATING COSTS:
Recoverable from tenants 3,990 34,634
Other operating (1) 330 3,733
-----------------------
Total property operating costs 4,320 38,367
-----------------------
PROPERTY OPERATING INCOME $ 11,956 $ 86,005
=======================
<CAPTION>
UNCONSOLIDATED JOINT VENTURES
Ontario Grapevine Arizona The Block The Oasis
------- --------- ------- --------- ---------
<S> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $14,487 $16,095 $15,636 $11,832 $ 2,680
Percentage rent 52 - 136 10 -
Recoveries from tenants 7,130 7,520 6,638 2,776 640
Other revenue 1,338 1,454 1,177 953 49
--------------------------------------------------------
Total rental revenues 23,007 25,069 23,587 15,571 3,369
PROPERTY OPERATING COSTS:
Recoverable from tenants 6,504 6,729 6,091 3,672 702
Other operating (1) 382 611 786 625 240
--------------------------------------------------------
Total property operating costs 6,886 7,340 6,877 4,297 942
--------------------------------------------------------
PROPERTY OPERATING INCOME $16,121 $17,729 $16,710 $11,274 $ 2,427
========================================================
<CAPTION>
UNCONSOLIDATED JOINT VENTURES
Concord Other Total
------- ----- -----
<S> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 859 $ 72 $61,661
Percentage rent - - 198
Recoveries from tenants 203 5 24,912
Other revenue 65 - 5,036
---------------------------------
Total rental revenues 1,127 77 91,807
PROPERTY OPERATING COSTS:
Recoverable from tenants 299 9 24,006
Other operating (1) 4 218 2,866
---------------------------------
Total property operating costs 303 227 26,872
---------------------------------
PROPERTY OPERATING INCOME $ 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, Liberty Plaza - $70, Disposed Properties - $515,
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) On August 3, 2000, the Company sold its interest in ten community centers
(the "Disposed Properties").
13
<PAGE> 11
THE MILLS CORPORATION
UNCONSOLIDATED JOINT VENTURES
NET INCOME AND FUNDS FROM OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000
Ontario Grapevine Arizona The Block The Oasis
------- --------- ------- --------- ---------
<S> <C> <C> <C> <C> <C>
REVENUES:
Minimum rent $ 5,251 $ 6,101 $ 5,390 $ 4,048 $ 1,397
Percentage rent 40 88 245 44 -
Recoveries from tenants 2,495 2,951 1,929 733 527
Interest income 151 119 54 544 133
Other revenue 873 917 734 158 48
-----------------------------------------------------------
Total revenues 8,810 10,176 8,352 5,527 2,105
EXPENSES:
Recoverable from tenants 2,184 2,444 1,828 957 504
Other operating (1) 1,079 508 562 565 163
Interest expense 2,377 2,432 3,024 2,569 961
Depreciation and amortization 1,325 2,743 337 2,323 1,029
-----------------------------------------------------------
Total Expenses 6,965 8,127 5,751 6,414 2,657
Gain on Land Sales - - - - -
Other - - (7) (15) -
-----------------------------------------------------------
NET INCOME/(LOSS) 1,845 2,049 2,594 (902) (552)
===========================================================
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
Income before extraordinary items 1,845 2,049 2,594 (902) (552)
Adjustments:
Add: Depreciation and amortization of
real estate assets 1,288 2,699 175 2,162 912
-----------------------------------------------------------
TOTAL FUNDS FROM OPERATIONS $ 3,133 $ 4,748 $ 2,769 $ 1,260 $ 360
===========================================================
MILLS ALLOCATIONS:
Mills share of FFO 1,367 1,613 1,020 309 81
Management Fees due Mills 265 204 255 154 52
-----------------------------------------------------------
Total Mills FFO $ 1,632 $ 1,817 $ 1,275 $ 463 $ 133
===========================================================
Mills share of net income/(loss) $ 804 $ 693 $ 956 $ (222) $ (127)
===========================================================
</TABLE>
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000
Concord Katy Opry Other Total
------- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C>
REVENUES:
Minimum rent $ 5,168 $ 4,951 $ 5,518 $ 38 $ 37,862
Percentage rent 1 - 48 - 466
Recoveries from tenants 1,682 2,147 1,819 1 14,284
Interest income 92 1,019 309 245 2,666
Other revenue 406 322 441 - 3,899
-----------------------------------------------------------
Total revenues 7,349 8,439 8,135 284 59,177
EXPENSES:
Recoverable from tenants 1,779 1,967 1,539 - 13,202
Other operating (1) 533 318 513 170 4,411
Interest expense 3,104 2,443 3,390 477 20,777
Depreciation and amortization 3,332 3,842 2,636 377 17,944
-----------------------------------------------------------
Total Expenses 8,748 8,570 8,078 1,024 56,334
Gain on Land Sales - - - 250 250
Other - - - (535) (557)
-----------------------------------------------------------
NET INCOME/(LOSS) (1,399) (131) 57 (1,025) 2,536
===========================================================
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
Income before extraordinary items (1,399) (131) 57 (1,025) 2,536
Adjustments:
Add: Depreciation and amortization of
real estate assets 3,099 3,501 2,332 377 16,545
-----------------------------------------------------------
TOTAL FUNDS FROM OPERATIONS $ 1,700 $ 3,370 $ 2,389 $ (648) $ 19,081
===========================================================
MILLS ALLOCATIONS:
Mills share of FFO 595 1,767 1,728 13 8,493
Management Fees due Mills 242 192 255 - 1,619
-----------------------------------------------------------
Total Mills FFO $ 837 $ 1,959 $ 1,983 $ 13 10,112
===========================================================
Mills share of net income/(loss) $ (496) $ 367 $ 38 $ (155) $ 1,860
===========================================================
</TABLE>
(1) Total property operating costs includes management fees as follows:
Ontario Mills - $265, Grapevine Mills - $355, Arizona Mills - $392, The
Block at Orange - $154, The Oasis at Sawgrass - $52, Concord Mills - $335,
Katy Mills - $193 and Opry Mills $256.
14
<PAGE> 12
THE MILLS CORPORATION
UNCONSOLIDATED JOINT VENTURES
NET INCOME AND FUNDS FROM OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
Ontario Grapevine Arizona The Block The Oasis
------- --------- ------- --------- ---------
<S> <C> <C> <C> <C> <C>
REVENUES:
Minimum rent $ 15,422 $ 17,660 $ 16,065 $ 12,411 $ 4,393
Percentage rent 285 422 251 99 -
Recoveries from tenants 7,394 8,506 6,206 2,731 1,521
Interest income 1,147 321 186 1,544 407
Other revenue 4,323 3,297 4,121 758 149
----------------------------------------------------------------
Total revenues 28,571 30,206 26,829 17,543 6,470
EXPENSES:
Recoverable from tenants 6,484 7,319 5,911 3,478 1,468
Other operating (1) 2,083 1,464 1,615 1,201 385
Interest expense 7,101 7,298 8,423 7,129 2,397
Depreciation and amortization 6,584 8,027 5,620 6,855 3,026
----------------------------------------------------------------
Total Expenses 22,252 24,108 21,569 18,663 7,276
Gain on Land Sales - - - - -
Other - - (22) (49) -
----------------------------------------------------------------
NET INCOME 6,319 6,098 5,238 (1,169) (806)
================================================================
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
Income before extraordinary items 6,319 6,098 5,238 (1,169) (806)
Adjustments:
Add: Depreciation and amortization of
real estate assets 6,475 7,897 5,133 6,371 2,675
----------------------------------------------------------------
TOTAL FUNDS FROM OPERATIONS $ 12,794 $ 13,995 $ 10,371 $ 5,202 $ 1,869
================================================================
MILLS ALLOCATIONS:
Mills share of FFO 5,577 4,750 3,821 1,277 426
Management Fees due Mills 731 714 703 484 159
----------------------------------------------------------------
Total Mills FFO $ 6,308 $ 5,464 $ 4,524 $ 1,761 $ 585
================================================================
Mills share of net income $ 2,754 $ 2,070 $ 1,930 $ (287) $ (184)
================================================================
</TABLE>
<TABLE>
<CAPTION>
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
Concord Katy Opry Other Total
------- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C>
REVENUES:
Minimum rent $ 15,182 $ 14,651 $ 8,499 $ 114 $ 104,397
Percentage rent 127 167 48 - 1,399
Recoveries from tenants 4,635 6,587 2,935 3 40,518
Interest income 516 1,790 434 526 6,871
Other revenue 1,306 1,059 673 - 15,686
----------------------------------------------------------------
Total revenues 21,766 24,254 12,589 643 168,871
EXPENSES:
Recoverable from tenants 4,647 6,313 2,533 - 38,153
Other operating (1) 1,394 974 767 283 10,166
Interest expense 8,384 6,429 4,653 608 52,422
Depreciation and amortization 10,019 10,881 4,200 1,128 56,340
----------------------------------------------------------------
Total Expenses 24,444 24,597 12,153 2,019 157,081
Gain on Land Sales - - - 2,651 2,651
Other - - - (934) (1,005)
----------------------------------------------------------------
NET INCOME (2,678) (343) 436 341 13,436
================================================================
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
Income before extraordinary items (2,678) (343) 436 341 13,436
Adjustments:
Add: Depreciation and amortization of
real estate assets 9,333 9,862 3,698 1,128 52,572
----------------------------------------------------------------
TOTAL FUNDS FROM OPERATIONS $ 6,655 $ 9,519 $ 4,134 $ 1,469 $ 66,008
================================================================
MILLS ALLOCATIONS:
Mills share of FFO 2,329 4,226 2,996 615 26,017
Management Fees due Mills 673 533 332 - 4,329
----------------------------------------------------------------
Total Mills FFO $ 3,002 $ 4,759 $ 3,328 $ 615 $ 30,346
================================================================
Mills share of net income $ (937) $ 281 $ 316 $ 106 $ 6,049
================================================================
</TABLE>
(1) Total property operating costs includes management fees as follows:
Ontario Mills - $731, Grapevine Mills - $1,120, Arizona Mills - $1,081,
The Block at Orange - $484, The Oasis at Sawgrass - $159, Concord Mills -
$981, Katy Mills - $534 and Opry Mills $333.
15
<PAGE> 13
THE MILLS CORPORATION
OCCUPANCY ANALYSIS
<TABLE>
<CAPTION>
GROSS LEASED & OCCUPIED AREA (S.F.) (1)
GLA Occupied (3)
Project Total GLA at 9/00 %
------- --------- ------- -
<S> <C> <C> <C>
Potomac Mills 1,635,591 1,600,159 97.83%
Franklin Mills 1,739,420 1,667,578 95.87%
Sawgrass Mills 1,845,342 1,784,616 96.71%
Gurnee Mills 1,699,808 1,629,887 95.89%
---------------------------------------------------------------
Total Mills 6,920,161 6,682,240 96.56%
Liberty Plaza 315,027 303,136 96.23%
---------------------------------------------------------------
315,027 303,136 96.23%
---------------------------------------------------------------
Total Wholly Owned 7,235,188 6,985,376 96.55%
===============================================================
Joint Ventures:
Ontario Mills 1,471,096 1,433,121 97.42%
Grapevine Mills 1,547,611 1,521,685 98.32%
Arizona Mills 1,233,884 1,206,788 97.80%
Concord Mills 1,257,042 1,149,682 91.46%
Katy Mills 1,158,553 1,061,337 91.61%
Opry Mills 1,086,408 1,006,265 92.62%
The Oasis at Sawgrass 290,063 256,210 88.33%
The Block at Orange 642,057 611,887 95.30%
---------------------------------------------------------------
Total Joint Ventures 8,686,714 8,246,975 94.94%
===============================================================
Total Mills 14,964,818 14,317,328 95.67%
===============================================================
Total Mills and Block 15,606,875 14,929,215 95.66%
===============================================================
Total Wholly Owned
and Joint Ventures 15,921,902 15,232,351 95.67%
===============================================================
</TABLE>
<TABLE>
<CAPTION>
GROSS LEASED & OCCUPIED AREA, NET OF ANCHORS (S.F) (2)
Total GLA Occupied (3)
Project Specialty GLA at 9/00 %
------- ------------- ------- -
<S> <C> <C> <C>
Potomac Mills 626,676 591,244 94.35%
Franklin Mills 614,106 542,264 88.30%
Sawgrass Mills 676,617 635,891 93.98%
Gurnee Mills 623,162 553,241 88.78%
---------------------------------------------------------------
Total Mills 2,540,561 2,322,640 91.42%
Liberty Plaza 52,280 40,389 77.26%
---------------------------------------------------------------
52,280 40,389 77.26%
---------------------------------------------------------------
Total Wholly Owned 2,592,841 2,363,029 91.14%
===============================================================
Joint Ventures:
Ontario Mills 509,569 471,594 92.55%
Grapevine Mills 520,983 495,057 95.02%
Arizona Mills 533,153 506,057 94.92%
Concord Mills 565,704 458,344 81.02%
Katy Mills 562,560 487,784 86.71%
Opry Mills 533,526 453,383 84.98%
The Oasis at Sawgrass 155,203 121,350 78.19%
The Block at Orange 257,341 227,171 88.28%
---------------------------------------------------------------
Total Joint Ventures 3,638,039 3,220,740 88.53%
===============================================================
Total Mills 5,921,259 5,316,209 89.78%
===============================================================
Total Mills and Block 6,178,600 5,543,380 89.72%
===============================================================
Total Wholly Owned
and Joint Ventures 6,230,880 5,583,769 89.61%
===============================================================
</TABLE>
<TABLE>
<CAPTION>
TOTAL VACANT S.F.
Vacancies
Project Anchor Specialty Total
------- ------ --------- -----
<S> <C> <C> <C>
Potomac Mills 0 35,432 35,432
Franklin Mills 0 71,842 71,842
Sawgrass Mills 20,000 40,726 60,726
Gurnee Mills 0 69,921 69,921
--------------------------------------------------------------
Total Mills 20,000 217,921 237,921
Liberty Plaza 0 11,891 11,891
--------------------------------------------------------------
0 11,891 11,891
--------------------------------------------------------------
Total Wholly Owned 20,000 229,812 249,812
==============================================================
Joint Ventures:
Ontario Mills 0 37,975 37,975
Grapevine Mills 0 25,926 25,926
Arizona Mills 0 27,096 27,096
Concord Mills 0 107,360 107,360
Katy Mills 22,440 74,776 97,216
Opry Mills 0 80,143 80,143
The Oasis at Sawgrass 0 33,853 33,853
The Block at Orange 0 30,170 30,170
--------------------------------------------------------------
Total Joint Ventures 22,440 417,299 439,739
==============================================================
Total Mills 42,440 605,050 647,490
==============================================================
Total Mills and Block 42,440 635,220 677,660
==============================================================
Total Wholly Owned
and Joint Ventures 42,440 647,111 689,551
==============================================================
</TABLE>
(1) Includes 960,933 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; and Ontario Mills-125,000 square feet of GLA. A ground lease at
Franklin Mills of 152,370 square feet and at Grapevine Mills of 177,063
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, 2000, 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 (1)
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, 2000 multiplied by 12.
<TABLE>
<CAPTION>
No. of 2000 No. of 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>
Potomac Mills:
Anchors (2) - - $ - $ - - - $ - $ -
Majors (2) 1 20,114 250,000 12.43 2 67,052 602,846 8.99
Specialty 6 17,957 418,323 23.30 24 59,756 1,648,465 27.59
Food Court - - - - 4 3,349 211,316 63.10
--------------------------------------------- -------------------------------------------
7 38,071 $ 668,323 $ 17.55 30 130,157 $ 2,462,627 $ 18.92
Franklin Mills:
Anchors (2) - - $ - $ - 1 70,701 $ $484,302 $ 6.85
Majors (2) - - - - 1 25,127 178,402 7.10
Specialty 9 37,543 793,945 21.15 35 99,655 2,174,540 21.82
Food Court - - - - - - - -
--------------------------------------------- -------------------------------------------
9 37,543 $ 793,945 $ 21.15 37 195,483 $ 2,837,244 $ 14.51
Sawgrass Mills:
Anchors (2,3) - - $ - $ - 2 147,915 $ 1,101,435 $ 7.45
Majors (2) 1 20,189 240,000 11.89 - - - -
Specialty 23 79,563 1,783,660 22.42 42 144,641 3,408,126 23.56
Food Court 12 10,795 528,723 48.98 2 1,711 91,275 53.35
--------------------------------------------- -------------------------------------------
36 110,547 $2,552,383 $ 23.09 46 294,267 $ 4,600,836 $ 15.63
Gurnee Mills:
Anchors (2) - - $ - $ - 3 231,271 $ 1,381,540 $ 5.97
Majors (2) - - - - 1 40,752 289,339 7.10
Specialty 6 21,965 406,773 18.52 48 156,746 3,231,693 20.62
Food Court - - - - 13 9,429 530,238 56.23
--------------------------------------------- -------------------------------------------
6 21,965 $ 406,773 $ 18.52 65 438,198 $ 5,432,810 $ 12.40
Total Mills w/o Joint
Ventures:
Anchors (2) - - $ - $ - 6 449,887 $ 2,967,277 $ 6.60
Majors (2) 2 40,303 490,000 12.16 4 132,931 1,070,587 8.05
Specialty 44 157,028 3,402,701 21.67 149 460,798 10,462,824 22.71
Food Court 12 10,795 528,723 48.98 19 14,489 832,829 57.48
--------------------------------------------- -------------------------------------------
58 208,126 $4,421,424 $ 21.24 178 1,058,105 $15,333,517 $ 14.49
============================================= ===========================================
</TABLE>
<TABLE>
<CAPTION>
No. of 2002 No. of After 2002
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>
Potomac Mills:
Anchors (2) - - $ - $ - 6 538,991 $ 3,724,192 $ 6.91
Majors (2) - - - - 9 302,758 2,630,095 8.69
Specialty 32 119,645 2,568,388 21.47 109 383,701 9,953,928 25.94
Food Court 3 1,859 127,485 68.58 7 4,977 368,834 74.11
--------------------------------------------- ------------------------------------------------
35 121,504 $ 2,695,873 $ 22.19 131 1,230,427 $ 16,677,049 $ 13.55
Franklin Mills:
Anchors (2) - - $ - $ - 4 357,592 $ 3,089,629 $ 8.64
Majors (2) 1 30,237 257,015 8.50 9 279,675 2,912,473 10.41
Specialty 26 84,712 1,850,182 21.84 77 307,558 6,426,035 20.89
Food Court 4 3,161 107,660 34.06 12 9,635 412,708 42.83
--------------------------------------------- ------------------------------------------------
31 118,110 $ 2,214,857 $ 18.75 102 954,460 $ 12,840,845 $ 13.45
Sawgrass Mills:
Anchors (2,3) - - $ - $ - 6 510,865 $ 3,144,206 $ 6.15
Majors (2) 2 42,657 365,206 8.56 6 204,805 2,752,213 13.44
Specialty 27 68,358 2,132,431 31.20 93 317,197 8,975,278 28.30
Food Court 2 1,852 87,602 47.30 13 11,774 655,703 55.69
--------------------------------------------- ------------------------------------------------
31 112,867 $ 2,585,239 $ 22.91 118 1,044,641 $ 15,527,400 $ 14.86
Gurnee Mills:
Anchors (2) 1 61,265 $ 495,000 $ 8.08 3 298,419 $ 1,449,681 $ 4.86
Majors (2) 1 33,627 252,202 7.50 5 160,506 1,840,098 11.46
Specialty 23 71,104 1,598,510 22.48 76 285,338 6,097,988 21.37
Food Court 5 3,611 228,158 63.18 8 5,048 241,864 47.91
--------------------------------------------- ------------------------------------------------
30 169,607 $ 2,573,870 $ 15.18 92 749,311 $ 9,629,631 $ 12.85
Total Mills w/o Joint
Ventures:
Anchors (2) 1 61,265 $ 495,000 $ 8.08 19 1,705,867 $ 11,407,708 $6.69
Majors (2) 4 106,521 874,423 8.21 29 947,744 10,134,879 10.69
Specialty 108 343,819 8,149,511 23.70 355 1,293,794 31,453,229 24.31
Food Court 14 10,483 550,905 52.55 40 31,434 1,679,109 53.42
--------------------------------------------- ------------------------------------------------
127 522,088 $10,069,839 $ 19.29 443 3,978,839 $ 54,674,925 $13.74
============================================= ================================================
</TABLE>
<TABLE>
<CAPTION>
No. of Total
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Potomac Mills:
Anchors (2) 6 538,991 $ 3,724,192 $ 6.91
Majors (2) 12 389,924 3,482,941 8.93
Specialty 171 581,059 14,589,104 25.11
Food Court 14 10,185 707,635 69.48
-----------------------------------------------
203 1,520,159 $ 22,503,872 $14.80
Franklin Mills:
Anchors (2) 5 428,293 $ 3,573,931 $ 8.34
Majors (2) 11 335,039 3,347,890 9.99
Specialty 147 529,468 11,244,702 21.24
Food Court 16 12,796 520,368 40.67
-----------------------------------------------
179 1,305,596 $ 18,686,891 $14.31
Sawgrass Mills:
Anchors (2,3) 8 658,780 $ 4,245,641 $ 6.44
Majors (2) 9 267,651 3,357,419 12.54
Specialty 185 609,759 16,299,495 26.73
Food Court 29 26,132 1,363,303 52.17
-----------------------------------------------
231 1,562,322 $ 25,265,858 $16.17
Gurnee Mills:
Anchors (2) 7 590,955 $ 3,326,221 $ 5.63
Majors (2) 7 234,885 2,381,639 10.14
Specialty 153 535,153 11,334,964 21.18
Food Court 26 18,088 1,000,260 55.30
-----------------------------------------------
193 1,379,081 $ 18,043,084 $13.08
Total Mills w/o Joint
Ventures:
Anchors (2) 26 2,217,019 $14,869,985 $6.71
Majors (2) 39 1,227,499 12,569,889 10.24
Specialty 656 2,255,439 53,468,265 23.71
Food Court 85 67,201 3,591,566 53.45
-----------------------------------------------
806 5,767,158 $84,499,705 $14.65
===============================================
</TABLE>
(1) Excludes 963,173 square feet of gross leaseable area owned by tenants as
follows: Potomac Mills - 80,000; Franklin Mills - 209,612 square feet;
Sawgrass Mills - 281,774 square feet; Gurnee Mills - 250,806 square feet;
Ontario Mills - 125,000 square feet; and Community Centers - 15,981
square feet. Ground leases at Franklin Mills of 152,370 square feet and
Grapevine Mills of 177,063 square feet are also excluded.
(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 leasable area that is owned in fee by Sawgrass Mills Phase III
(The Oasis), but leased back to Sawgrass Mills and is sublet to Regal
Theatres.
17
<PAGE> 15
THE MILLS CORPORATION
LEASE EXPIRATION SCHEDULE (1)
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, 2000 multiplied by 12.
<TABLE>
<CAPTION>
No. of 2000 No. of 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>
Ontario Mills:
Anchors (2) - - $ - $ - - - $ - $ -
Majors (2) 1 30,639 428,496 13.99 - - - -
Specialty 4 7,935 240,907 30.36 44 192,787 3,748,837 19.45
Food Court - - - - - - - -
------------------------------------------ --------------------------------------------
5 38,574 $ 669,403 $ 17.35 44 192,787 $3,748,837 $ 19.45
Grapevine Mills:
Anchors (2) - - $ - $ - - - $ - $ -
Majors (2) - - - - - - - -
Specialty 5 15,446 327,387 21.20 12 30,278 640,784 21.16
Food Court - - - - - - - -
------------------------------------------ --------------------------------------------
5 15,446 $ 327,387 $ 21.20 12 30,278 $ 640,784 $ 21.16
Arizona Mills:
Anchors (2) - - $ - $ - - - $ - $ -
Majors (2) 1 37,899 549,751 14.51 - - - -
Specialty 7 26,691 639,837 23.97 8 17,212 444,141 25.80
Food Court - - - - - - - -
------------------------------------------ --------------------------------------------
8 64,590 $1,189,588 $ 18.42 8 17,212 $ 444,141 $ 25.80
The Oasis at Sawgrass:
Anchors (2,3) - - $ - $ - - - $ - $ -
Majors (2) - - - - - - - -
Specialty - - - - - - - -
Food Court - - - - - - - -
------------------------------------------ --------------------------------------------
- - $ - $ - - - $ - $ -
Concord Mills:
Anchors (2) - - $ - $ - - - $ - $ -
Majors (2) - - - - - - - -
Specialty 2 12,107 148,137 12.24 1 2,658 58,476 22.00
Food Court - - - - - - - -
------------------------------------------ --------------------------------------------
2 12,107 $ 148,137 $ 12.24 1 2,658 $ 58,476 $ 22.00
Katy Mills:
Anchors (2) - - $ - $ - - - $ - $ -
Majors (2) - - - - - - - -
Specialty 1 1,582 36,386 23.00 3 10,308 138,540 13.44
Food Court - - - - - - - -
------------------------------------------ --------------------------------------------
1 1,582 $ 36,386 $ 23.00 3 10,308 $ 138,540 $ 13.44
</TABLE>
<TABLE>
<CAPTION>
No. of 2002 No. of After 2002
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>
Ontario Mills:
Anchors (2) - - $ - $ - 5 345,298 $ 2,495,443 $ 7.23
Majors (2) - - - - 16 460,590 5,620,250 12.20
Specialty 22 62,969 1,568,704 24.91 73 196,175 5,311,213 27.07
Food Court - - - - 3 11,728 594,165 50.66
----------------------------------------------- -------------------------------------------------
22 62,969 $ 1,568,704 $ 24.91 97 1,013,791 $ 14,021,071 $ 13.83
Grapevine Mills:
Anchors (2) - - $ - $ - 4 393,386 $ 4,358,510 $ 11.08
Majors (2) 1 23,329 279,948 12.00 15 432,850 5,827,372 13.46
Specialty 52 163,627 3,709,013 22.67 84 275,906 6,185,323 22.42
Food Court - - - - 1 9,800 588,000 60.00
----------------------------------------------- -------------------------------------------------
53 186,956 $ 3,988,961 $ 21.34 104 1,111,942 $ 16,959,205 $ 15.25
Arizona Mills:
Anchors (2) - - $ - $ - 5 382,513 $ 3,163,114 $ 8.27
Majors (2) - - - - 10 280,319 3,838,473 13.69
Specialty 52 168,940 3,697,459 21.89 71 279,290 6,558,930 23.48
Food Court - - - - 1 13,924 832,502 59.79
----------------------------------------------- -------------------------------------------------
52 168,940 $ 3,697,459 $ 21.89 87 956,046 $ 14,393,019 $ 15.05
The Oasis at Sawgrass:
Anchors (2,3) - - $ - $ - 1 32,802 $ 615,322 $ 18.76
Majors (2) - - - - 2 42,578 882,869 20.74
Specialty - - - - 25 121,350 3,659,520 30.16
Food Court - - - - - - - -
----------------------------------------------- -------------------------------------------------
- - $ - $ - 28 196,730 $ 5,157,711 $ 26.22
Concord Mills:
Anchors (2) - - $ - $ - 5 433,278 $ 4,714,862 $ 10.88
Majors (2) - - - - 11 258,064 3,299,960 12.79
Specialty 2 2,946 92,894 31.53 116 429,799 10,253,592 23.86
Food Court - - - - 1 10,830 588,000 54.29
----------------------------------------------- -------------------------------------------------
2 2,946 $ 92,894 $ 31.53 133 1,131,971 $ 18,856,414 $ 16.66
Katy Mills:
Anchors (2) - - $ - $ - 3 322,444 $ 2,480,720 $ 7.69
Majors (2) - - - - 9 251,109 3,729,539 14.85
Specialty 4 5,416 201,114 37.13 123 460,395 10,478,310 22.76
Food Court - - - - 1 10,083 655,395 65.00
----------------------------------------------- -------------------------------------------------
4 5,416 $ 201,114 $ 37.13 136 1,044,031 $ 17,343,964 $ 16.61
</TABLE>
<TABLE>
<CAPTION>
No. of Total
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Ontario Mills:
Anchors (2) 5 345,298 $ 2,495,443 $ 7.23
Majors (2) 17 491,229 6,048,746 12.31
Specialty 143 459,866 10,869,661 23.64
Food Court 3 11,728 594,165 50.66
-----------------------------------------------
168 1,308,121 $ 20,008,015 $ 15.30
Grapevine Mills:
Anchors (2) 4 393,386 $ 4,358,510 $ 11.08
Majors (2) 16 456,179 6,107,320 13.39
Specialty 153 485,257 10,862,507 22.39
Food Court 1 9,800 588,000 60.00
-----------------------------------------------
174 1,344,622 $ 21,916,337 $ 16.30
Arizona Mills:
Anchors (2) 5 382,513 $ 3,163,114 $ 8.27
Majors (2) 11 318,218 4,388,224 13.79
Specialty 138 492,133 11,340,367 23.04
Food Court 1 13,924 832,502 59.79
-----------------------------------------------
155 1,206,788 $ 19,724,207 $ 16.34
The Oasis at Sawgrass:
Anchors (2,3) 1 32,802 $ 615,322 $ 18.76
Majors (2) 2 42,578 882,869 20.74
Specialty 25 121,350 3,659,520 30.16
Food Court - - - -
-----------------------------------------------
28 196,730 $ 5,157,711 $ 26.22
Concord Mills:
Anchors (2) 5 433,278 $ 4,714,862 $ 10.88
Majors (2) 11 258,064 3,299,960 12.79
Specialty 121 447,510 10,553,099 23.58
Food Court 1 10,830 588,000 54.29
-----------------------------------------------
138 1,149,682 $ 19,155,921 $ 16.66
Katy Mills:
Anchors (2) 3 322,444 $ 2,480,720 $ 7.69
Majors (2) 9 251,109 3,729,539 14.85
Specialty 131 477,701 10,854,350 22.72
Food Court 1 10,083 655,395 65.00
-----------------------------------------------
144 1,061,337 $ 17,720,004 $ 16.70
</TABLE>
(1) Excludes 963,173 square feet of gross leaseable area owned by tenants as
follows: Potomac Mills - 80,000; Franklin Mills - 209,612 square feet;
Sawgrass Mills - 281,774 square feet; Gurnee Mills - 250,806 square feet;
Ontario Mills - 125,000 square feet; and Community Centers - 15,981 square
feet. Ground leases at Franklin Mills of 152,370 square feet and
Grapevine Mills of 177,063 square feet are also excluded.
(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 leasable area that is owned in fee by Sawgrass Mills Phase III
(The Oasis), but leased back to Sawgrass Mills and is sublet to Regal
Theatres.
18
<PAGE> 16
THE MILLS CORPORATION
LEASE EXPIRATION SCHEDULE (1)
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, 2000 multiplied by 12.
<TABLE>
<CAPTION>
No. of 2000 No. of 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>
Opry Mills:
Anchors (2) - - $ - $ - - - $ - $ -
Majors (2) - - - - - - - -
Specialty - - - - - - - -
Food Court - - - - - - - -
------------------------------------------ --------------------------------------------
- - $ - $ - 0 0 $ - $ -
Total Mills with Joint
Ventures:
Anchors (2) - - $ - $ - 6 449,887 $ 2,967,277 $ 6.60
Majors (2) 4 108,841 1,468,247 13.49 4 132,931 1,070,587 8.05
Specialty 63 220,789 4,795,355 21.72 217 714,041 15,493,602 21.70
Food Court 12 10,795 528,723 48.98 19 14,489 832,829 57.48
------------------------------------------ --------------------------------------------
79 340,425 $ 6,792,325 $ 19.95 246 1,311,348 $20,364,295 $15.53
========================================== ============================================
The Block at Orange:
Anchors (2) - - $ - $ - - - $ - $ -
Majors (2) - - - - - - - -
Specialty 4 5,281 304,115 57.59 5 4,634 214,937 46.38
Food Court - - - - - - - -
------------------------------------------ --------------------------------------------
4 5,281 $ 304,115 $ 57.59 5 4,634 $ 214,937 $46.38
Liberty Plaza:
Anchors (2) - - $ - $ - - - $ - $ -
Majors (2) - - - - - - - -
Specialty 1 5,553 79,191 14.26 2 3,400 12,346 3.63
Food Court - - - - - - - -
------------------------------------------ --------------------------------------------
1 5,553 $ 79,191 $ 14.26 2 3,400 $ 12,346 $ 3.63
========================================== ============================================
Totals:
Anchors (2) - - $ - $ - 6 449,887 $ 2,967,277 $ 6.60
Majors (2) 4 108,841 1,468,247 13.49 4 132,931 1,070,587 8.05
Specialty 68 231,623 5,178,661 22.36 224 722,075 15,720,885 21.77
Food Court 12 10,795 528,723 48.98 19 14,489 832,829 57.48
------------------------------------------ --------------------------------------------
84 351,259 $ 7,175,631 $ 20.43 253 1,319,382 $20,591,578 $15.61
========================================== ============================================
</TABLE>
<TABLE>
<CAPTION>
No. of 2002 No. of After 2002
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>
Opry Mills:
Anchors (2) - - $ - $ - 3 288,296 $ 4,415,547 $ 15.32
Majors (2) - - - - 11 264,586 3,831,260 14.48
Specialty - - - - 123 443,237 11,571,314 26.11
Food Court - - - - 1 10,146 760,950 75.00
----------------------------------------------- -------------------------------------------------
0 0 $ - $ - 138 1,006,265 $ 20,579,071 $ 20.45
Total Mills with Joint
Ventures:
Anchors (2) 1 61,265 $ 495,000 $ 8.08 45 3,903,884 $ 33,651,226 $ 8.62
Majors (2) 5 129,850 1,154,371 8.89 103 2,937,840 37,164,602 12.65
Specialty 240 747,717 17,418,695 23.30 970 3,499,946 85,471,431 24.42
Food Court 14 10,483 550,905 52.55 48 97,945 5,698,121 58.18
----------------------------------------------- -------------------------------------------------
260 949,315 $19,618,971 $20.67 1,166 10,439,615 $ 161,985,380 $ 15.52
=============================================== =================================================
The Block at Orange:
Anchors (2) - - $ - $ - 2 172,785 $ 3,467,818 $ 20.07
Majors (2) - - - - 8 211,931 3,221,937 15.20
Specialty 5 6,060 185,754 30.65 62 200,621 5,895,265 29.39
Food Court - - - - 8 10,575 780,896 73.84
----------------------------------------------- -------------------------------------------------
5 6,060 $ 185,754 $30.65 80 595,912 $ 13,365,916 $ 22.43
Liberty Plaza:
Anchors (2) - - $ - $ - 3 262,747 $ 1,872,270 $ 7.13
Majors (2) - - - - - - - -
Specialty - - - - 5 17,695 310,423 17.54
Food Court - - - - - - - -
----------------------------------------------- -------------------------------------------------
0 0 $ - $ - 8 280,442 $ 2,182,693 $ 7.78
=============================================== =================================================
Totals:
Anchors (2) 1 61,265 $ 495,000 $ 8.08 50 4,339,416 $ 38,991,314 $ 8.99
Majors (2) 5 129,850 1,154,371 8.89 111 3,149,771 40,386,539 12.82
Specialty 245 753,777 17,604,449 23.35 1,037 3,718,262 91,677,119 24.66
Food Court 14 10,483 550,905 52.55 56 108,520 6,479,017 59.70
----------------------------------------------- -------------------------------------------------
265 955,375 $19,804,725 $20.73 1,254 11,315,969 $ 177,533,989 $ 15.69
=============================================== =================================================
</TABLE>
<TABLE>
<CAPTION>
No. of Total
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Opry Mills:
Anchors (2) 3 288,296 $ 4,415,547 $ 15.32
Majors (2) 11 264,586 3,831,260 14.48
Specialty 123 443,237 11,571,314 26.11
Food Court 1 10,146 760,950 75.00
-----------------------------------------------
138 1,006,265 $ 20,579,071 $ 20.45
Total Mills with Joint
Ventures:
Anchors (2) 52 4,415,036 $ 37,113,503 $ 8.41
Majors (2) 116 3,309,462 40,857,807 12.35
Specialty 1,490 5,182,493 123,179,083 23.77
Food Court 93 133,712 7,610,578 56.92
-----------------------------------------------
1,751 13,040,703 $ 208,760,971 $ 16.01
===============================================
The Block at Orange:
Anchors (2) 2 172,785 $ 3,467,818 $ 20.07
Majors (2) 8 211,931 3,221,937 15.20
Specialty 76 216,596 6,600,071 30.47
Food Court 8 10,575 780,896 73.84
-----------------------------------------------
94 611,887 $ 14,070,722 $ 23.00
Liberty Plaza:
Anchors (2) 3 262,747 $ 1,872,270 $ 7.13
Majors (2) - - - -
Specialty 8 26,648 401,960 15.08
Food Court - - - -
-----------------------------------------------
11 289,395 $ 2,274,230 $ 7.86
===============================================
Totals:
Anchors (2) 57 4,850,568 $ 42,453,591 $ 8.75
Majors (2) 124 3,521,393 44,079,744 12.52
Specialty 1,574 5,425,737 130,181,114 23.99
Food Court 101 144,287 8,391,474 58.16
-----------------------------------------------
1,856 13,941,985 $ 225,105,923 $ 16.15
===============================================
</TABLE>
(1) Excludes 963,173 square feet of gross leaseable area owned by tenants as
follows: Potomac Mills - 80,000; Franklin Mills - 209,612 square feet;
Sawgrass Mills - 281,774 square feet; Gurnee Mills - 250,806 square feet;
Ontario Mills - 125,000 square feet; and Community Centers - 15,981 square
feet. Ground leases at Franklin Mills of 152,370 square feet and
Grapevine Mills of 177,063 square feet are also excluded.
(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..
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, 2000 and for the years ended December 31, 1999, 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 2000 $13.75 62,778 $ 3.43 54,420 $10.32 300.81%
1999 12.00 24,077 - - N/A N/A
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 2000 $10.31 50,034 $ - - $ N/A N/A
1999 - - 7.24 67,555 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 2000 $ - - $ - - $ - -
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 2000 $17.00 28,152 $ - - $ N/A N/A
1999 - - 15.00 28,152 N/A N/A
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 2000 $ - - $ - - $ - -
1999 11.82 135,707(4) 6.33 16,595 5.49 86.73%
1998 - - - - - -
GRAPEVINE MILLS 2000 $14.42 105,496 $14.20 32,285 $ 0.22 1.55%
1999 8.78 82,000(5) - - N/A N/A
ARIZONA MILLS 2000 $ - - $ - - $ - -
1999 - - - - - -
TOTAL MILLS 2000 $13.71 246,460 $ 7.44 86,705 $ 6.27 84.28%
1999 10.39 297,754 9.05 112,302 1.34 14.81%
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%
</TABLE>
<TABLE>
<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 $ 29.11 51,114 $ 27.94 54,140 $ 1.18 4.21%
26.70 73,060 23.42 76,881 3.29 14.03%
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 $ 25.96 58,146 $ 24.27 38,032 $ 1.69 6.98%
21.83 86,646 23.34 113,810 (1.50) (6.44%)
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 $ 25.15 37,321 $ 19.36 46,751 $ 5.79 29.90%
22.74 65,922 19.92 95,997 2.82 14.16%
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 $ 35.36 36,134 $ 27.80 45,573 $ 7.55 27.16%
39.16 31,982 31.15 55,470 8.01 25.71%
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 $ 30.12 37,372 $ 23.87 45,262 $ 6.24 26.15%
29.65 30,580 27.97 39,224 1.67 5.97%
27.34 35,616 27.64 26,400 (0.30) (1.08%)
GRAPEVINE MILLS $ 25.60 35,376 $ 24.49 43,912 $ 1.11 4.55%
26.81 9,195 27.27 30,776 (0.46) (1.70%)
ARIZONA MILLS $ 27.42 42,184 $ 23.89 41,286 $ 3.53 14.77%
26.83 16,566 27.49 22,020 (0.66) (2.40%)
TOTAL MILLS $ 28.23 297,647 $ 24.61 314,956 $ 3.62 14.71%
26.09 318,864 24.50 454,633 1.59 6.49%
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) Katy Mills, Concord Mills, The Oasis at Sawgrass, and The Block at
Orange are excluded from this analysis, due to still being in their
initial lease-up phase. For the same reason, Ontario Mills for 1997 and
Grapevine Mills and Arizona Mills for 1998 are excluded.
(2) The releasing spread is calculated as the difference between per square
foot openings and per square foot closings for the six months ended June
30, 2000, and for the years ended December 31, 1999, 1998, 1997 and
1996. Openings and closings include renewals but exclude exercised
options. The releasing spreads for the nine months ended September 30,
2000 may not be representative of annualized leasing spreads due to the
limited time period.
(3) For 1997, primarily consists of expansion space related to two anchor
stores, Bass Pro and Computer City comprising 125,000 sq. ft. and 25,000
sq. ft., respectively. For 1999, consists of expansion space related to
an anchor store, Rinkside Sports comprising 55,970 sq. ft.
(4) Consists of expansion space related to several anchor stores, Sam Ash
Music, Iguana Ameramex, Hollytron, Cost Plus, and Vans Skate Park
comprising 23,086 sq. ft., 23,194 sq. ft., 21,978 sq. ft., 20,121 sq.
ft., and 47,328 sq. ft., respectively.
(5) Consists of expansion space related to Polar Ice.
Note: Totals may not sum due to rounding
20
<PAGE> 18
AVERAGE RENTS
The following table sets forth, for the nine months ended September 30, 2000
and each of the last four years, certain information regarding operating
trends with respect to the existing Mills and The Block at Orange.
<TABLE>
<CAPTION>
MINIMUM RENT PLUS PERCENTAGE RENT
---------------------------------------------------------------------------------------------
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
2000 97% $ 22,567,154 $15.00 $ 6,934,756 $ 7.54 $ 15,632,398 $26.70
1999 96 22,184,170 14.78 6,228,103 6.93 15,956,067 26.31
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
2000 92% 18,790,389 13.33 6,866,693 7.80 11,923,696 22.54
1999 95 18,889,430 13.05 6,799,317 7.44 12,090,113 22.67
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
2000 95% 27,166,175 17.56 7,645,745 8.42 19,520,430 30.55
1999 (2) 97 27,047,670 17.21 7,428,095 8.10 19,619,575 30.00
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
2000 95% 18,985,957 13.74 5,677,775 6.88 13,308,182 23.92
1999 96 18,652,338 13.60 5,350,186 6.71 13,302,152 23.20
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
2000 97% 21,922,527 16.87 9,111,536 10.89 12,810,991 27.66
1999 98 19,953,687 16.35 7,716,126 10.69 12,237,561 24.55
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
2000 97% 24,460,446 16.76 11,653,073 12.10 12,807,373 25.80
1999 (3) 97 21,608,407 17.78 8,986,655 12.75 12,621,752 24.72
1998 95 21,108,019 18.03 8,797,950 12.74 12,310,069 25.63
ARIZONA MILLS
2000 97% 21,981,301 18.39 8,012,652 11.43 13,968,649 28.25
1999 97 21,527,568 17.97 8,158,743 11.71 13,368,825 26.69
1998 95 19,165,290 16.82 7,262,540 10.83 11,902,750 25.41
THE OASIS AT SAWGRASS
2000 88% 6,083,660 29.84 1,531,228 20.31 4,552,432 35.44
CONCORD MILLS
2000 90% 20,438,493 18.11 7,927,214 11.59 12,511,279 28.15
KATY MILLS
2000 92% 19,785,562 18.64 7,039,847 11.91 12,745,715 27.10
TOTAL - MILLS
2000 95% $202,181,664 $16.58 $ 72,400,519 $ 9.81 $129,781,145 $27.00
1999 97 149,863,270 15.73 50,667,225 8.97 99,196,045 25.61
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
</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.
(3) Annual rent excludes $1,014,839 of rent for 1999 related to a tenant that
occupies space that is outside the service road which encompasses the
mall.
Note: The above amounts do not include Mainstreet retail income of
$2,088,630 for 2000, $2,423,346 for 1999, $2,205,661 for 1998,
$2,066,991 for 1997, and $2,088,000 for 1996. 2000 includes an
estimate of annualized percentage rent.
21
<PAGE> 19
AVERAGE RENTS
The following table sets forth, for the nine months ended September 30, 2000 and
each of the last four years, certain information regarding operating trends with
respect to the existing Mills and The Block at Orange.
<TABLE>
<CAPTION>
MINIMUM RENT PLUS PERCENTAGE RENT
---------------------------------------------------------------------------------------------
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>
THE BLOCK AT ORANGE
2000 93% $ 17,024,291 $ 28.83 $ 6,819,112 $ 18.81 $ 10,205,179 $ 44.76
1999 93 16,282,327 27.10 6,715,008 18.67 9,567,319 39.67
TOTAL (INCL THE BLOCK)
2000 94% $ 219,205,955 $ 17.15 $ 79,219,631 $ 10.23 $ 139,986,324 $ 27.90
1999 96 166,145,597 16.41 57,382,233 9.55 108,763,364 26.43
</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.
(3) Annual rent excludes $1,014,839 of rent for 1999 related to a tenant that
occupies space that is outside the service road which encompasses the
mall.
Note: The above amounts do not include Mainstreet retail income of $2,088,630
for 2000, $2,423,346 for 1999, $2,205,661 for 1998, $2,066,991 for 1997,
and $2,088,000 for 1996. 2000 includes an estimate of annualized
percentage rent.
22
<PAGE> 20
THE MILLS CORPORATION
SUMMARY OF OUTSTANDING CONSOLIDATED INDEBTEDNESS
(DOLLARS IN THOUSANDS)
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Principal
Balance Annual Interest Maturity
(000's) Interest Rate Type Rate Date
------- ------------------ ---- ----
<S> <C> <C> <C> <C>
Potomac Mills/Gurnee Mills:
Tranche A $200,061 Fixed 6.905% 12/17/26 (1)
Tranche B 27,000 Fixed 7.021% 12/17/26 (1)
Tranche C 15,000 Fixed 7.235% 12/17/26 (1)
Tranche D 30,000 Fixed 7.701% 12/17/26 (1)
Franklin Mills and Liberty Plaza
Tranche A 106,652 Fixed 7.882% 6/1/27 (3)
Mortgage Loan 19,396 Fixed 7.440% 6/1/27 (3)
Mortgage Loan 12,673 Fixed 6.220% 6/1/27 (3)
Sawgrass Mills 285,000 Variable 275 bp over Libor 6/18/01
CVS Portfolio (25 stores) 35,967 Fixed 7.960% 10/10/10
CVS Portfolio (25 stores) 28,330 Fixed 9.350% 1/10/23
Concord Mills Residual III 8,788 Variable 200 bp over Libor 12/31/00 (11)
-----------------
Total Property Mortgages 768,867
-----------------
Corporate Misc 36 Fixed 8.250% 10/31/00
Corporate Misc 2,400 Fixed 7.180% 7/15/01
Mainstreet Retail 13,275 Variable 425 bp over Libor 7/21/10
Foodbrand 12,423 Fixed 11.070% 7/15/05
Corporate Term Loan 50,000 Variable 225 bp over Libor 6/1/03
Corporate Line of Credit 75,000 Variable 275 bp over Libor 6/1/02 (8)
Sawgrass Residual 4,266 Variable 165 bp over Libor 1/18/01
-----------------
Total $926,267
=================
</TABLE>
<TABLE>
<CAPTION>
Annual Earliest day Recourse to
Interest at which debt Company or
(000's) can be repaid Op. Ptnrshp
------- ------------- -----------
<S> <C> <C> <C>
Potomac Mills/Gurnee Mills:
Tranche A $ 13,813 (2) 0%
Tranche B 1,896 (2) 0%
Tranche C 1,085 (2) 0%
Tranche D 2,310 (2) 0%
Franklin Mills and Liberty Plaza 0%
Tranche A 8,406 (4) 0%
Mortgage Loan 1,443 (4) 0%
Mortgage Loan 788 (4) 0%
Sawgrass Mills 26,697 (6) (5) 0%
CVS Portfolio (25 stores) 2,863 (15) 0%
CVS Portfolio (25 stores) 2,649 (16) 0%
Concord Mills Residual III 757 (6) (7) 100%
-------------
Total Property Mortgages 62,707
-------------
Corporate Misc 3 (9) 0%
Corporate Misc 172 (9) 0%
Mainstreet Retail 1,443 (14) 100% (14)
Foodbrand 1,375 (13) 100%
Corporate Term Loan 4,434 (6) (7),(12) 0% (12)
Corporate Line of Credit 7,026 (6) (7), (8) 100%
Sawgrass Residual 331 (6) (10) 0%
-------------
Total $ 77,491
=============
</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) 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 have earn if it invested the
repayment 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) The indebtedness is a non-amortizing loan with an anticipated balloon
payment date of June 18, 2001. Prepayment on the entire loan balance is
permitted with a prepayment penalty of $2,215.
(6) Calculated using 30-day LIBOR at 6.6175%, which was the rate at
September 30, 2000.
(7) Prepayable, in whole or in part, at any time without prepayment penalty.
(8) The total commitment under the Line of Credit is $75,000. Funds are
available subject to certain performance measures and restrictive
covenants. This loan bears interest at a variable rate ranging from 175
bp to 275 bp over Libor subject to certain leverage tests (Libor + 275 bp
at 9/30/00).
(9) Primarily corporate debt with maturities under one year. Prepayable, in
whole or in part, at any time without prepayment penalty.
(10) Prepayable, in whole or in part, at any time, upon 3 days prior notice
to lender without prepayment penalty.
(11) The total commitment under this loan is $9,000. Funds are available
subject to certain performance measures and restrictive covenants. The
indebtedness matures on December 31, 2000. The loan is guaranteed by the
Company.
(12) The $50 million term loan is secured by the Company's interest in the
Franklin Mills property. The loan has mandatory principal repayments in
the amount of $5 million due on or before June 1, 2001 and $10 million
due on or before June 1, 2002.
(13) The indebtedness relates to capital leases for fixtures and equipment for
Foodbrand operations at Katy Mills, Franklin Mills and Opry Mills. The
leases have five year terms and are guaranteed by the Company.
(14) The indebtedness is a 10 year amortizing loan with a repayment date of
July 21, 2010. Interest is payable at variable rate of LIBOR plus 425 bp
for the first 24 months of the loan. After the first 24 months, the
interest rate will be payable at a variable rate which will be the higher
of LIBOR plus 425 bp or the 7 year Treasury Rate. The collateral for the
loan is all the pushcarts and kiosks that are owned by Mainstreet Retail,
an affiliate of the Company. Also, the loan is guaranteed by the Company.
(15) The indebtedness a non amortizing loan with an anticipated balloon
repayment date of October 10, 2010. Interest is payable at a fixed rate
of 7.96%. The loan may be prepaid upon 30 days notice to lender. The
indebtedness may only be prepaid in whole prior to July 31, 2005, along
with a prepayment penalty of not less than 1% of the principal amount
prepaid. After July 31, 2005, the indebtedness may be prepaid in whole or
in part, along with a prepayment penalty that will be subject to a
reinvestment yield calculation.
(16) The indebtedness a non amortizing loan with an anticipated balloon
repayment date of January 10, 2023. Interest is payable at a fixed rate
of 9.35%. The loan may be prepaid upon 30 days notice to lender. The
indebtedness may only be prepaid in whole prior to July 31, 2005, along
with a prepayment penalty of not less than 1% of the principal amount
prepaid. After July 31, 2005, the indebtedness may be prepaid in whole or
in part, along with a prepayment penalty that will be subject to a
reinvestment yield calculation.
23
<PAGE> 21
THE MILLS CORPORATION
SUMMARY OF OUTSTANDING UNCONSOLIDATED INDEBTEDNESS
(DOLLARS IN THOUSANDS)
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Principal
Balance Total Interest Rate Annual Interest
(000's) Commitment Type Rate
------- ---------- ---- ----
<S> <C> <C> <C> <C>
Arizona Mills $ 142,214 $ 142,214 (22) Variable 130 bp over Libor (5)
Grapevine Mills 155,000 155,000 Fixed 6.465%
Ontario Mills 142,509 145,000 Fixed 6.750%
Block at Orange 129,941 136,000 Variable 135 bp over Libor (6)
Sawgrass Phase III 44,000 44,000 Variable 110 bp over Libor (7)
Sawgrass Phase III 3,495 6,500 Variable 275 bp over Libor
Concord Mills 177,379 199,000 Variable 120 bp over Libor (13)
Katy Mills 164,270 168,000 Variable 175 bp over Libor
Opry Mills 162,483 176,500 (18) Fixed (17) 200 bp over Libor
Arundel Mills 74,706 191,000 Variable 165 bp over Libor
Arundel Mills 10,000 10,000 Variable 225 bp over Libor
Discover Mills 7,000 12,000 Variable 350 bp over Libor
----------------- ---------------
Total $ 1,212,997 $ 1,385,214
================= ===============
</TABLE>
<TABLE>
<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 $ 11,260 (4) (1) 9.2% (10)
Grapevine Mills 9/1/32 (8) 10,021 (2) 0.0%
Ontario Mills 12/1/28 (8) 9,619 (3) 0.0%
City Block at Orange 1/22/02 10,353 (4) (3) 26.7% (11)
Sawgrass Phase III 1/18/01 3,396 (4) (15) 0.0% (12)
Sawgrass Phase III 1/18/01 327 (4) (15) 0.0% (12)
Concord Mills 12/2/01 13,867 (4) (2) 10.0% (13)
Katy Mills 3/31/02 13,745 (4) (15) 25.0% (14)
Opry Mills 10/1/02 14,002 (4) (16) 100.0% (18)
Arundel Mills 5/30/03 6,176 (4) (19) 50.0% (20)
Arundel Mills 11/30/00 887 (4) (19) 50.0% (20)
Discover Mills 12/20/00 708 (4) (19) 100.0% (21)
------------
Total $ 94,361
============
</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 6.6175%, which was the rate at
September 30, 2000.
(5) The loan is a construction facility with a maximum availability of
$142,214. The rate is capped at 9.5% until maturity, plus credit
spread, based on one month LIBOR.
(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, 2000, 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, 2000 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 June 30, 2000, 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. As of September 30, 2000, the guarantee amount was 10%.
(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 September 30, 2000, the guarantee amount
was 25%.
(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 interest rate is considered as fixed, since the variable portion of
the interest rate has a cap of 7.00% and a floor of 6.275%.
(18) 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%. On September 29, 2000, the Company entered into a modification
agreement whereby the loan commitment was increased from $168,000 to
$176,500. As of September 30, 2000, the guarantee amount was 100%.
(19) Prepayable, in whole or in part, at any time upon 5 days prior notice
to lender without prepayment penalty. Any partial prepayments shall be
in $100,000 increments.
(20) Principal is guaranteed severally by the Company and Simon Property
Group.
(21) Principal is guaranteed by the Company.
(22) The Company refinanced this loan on October 2, 2000 with a new mortgage
loan in the amount of $146,000. The new indebtedness is a 30 year
amortizing loan with an anticipated balloon repayment date of October 5,
2010. Interest is payable at a fixed rate of 7.895%.
24
<PAGE> 22
THE MILLS CORPORATION
GROSS TENANT REPORTED SALES (1) (2)
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Twelve Months ended September 30, 2000
--------------------------------------
Sq Ft Sales psf
----- ----- ---
<S> <C> <C> <C>
Potomac Mills:
Anchor/Majors 935,540 $ 217,641,936 $ 233
Specialty 569,599 189,141,445 332
Temporary/Kiosk - 5,169,937 -
----------------------------------------------
1,505,139 $ 411,953,318 $ 274
Franklin Mills:
Anchor/Majors 954,566 $ 157,546,111 $ 165
Specialty 519,175 162,646,584 313
Temporary/Kiosk - 8,297,053 -
----------------------------------------------
1,473,741 $ 328,489,748 $ 223
Sawgrass Mills:
Anchor/Majors 1,126,738 $ 356,070,659 $ 316
Specialty 632,724 274,146,673 433
Temporary/Kiosk - 13,656,229 -
----------------------------------------------
1,759,462 $ 643,873,561 $ 366
Gurnee Mills:
Anchor/Majors 844,872 $ 136,707,864 $ 162
Specialty 541,518 162,325,032 300
Temporary/Kiosk - 7,023,615 -
----------------------------------------------
1,386,390 $ 306,056,511 $ 221
Ontario Mills:
Anchor/Majors 946,810 $ 156,255,812 $ 165
Specialty 455,213 175,957,015 387
Temporary/Kiosk - 6,417,917 -
----------------------------------------------
1,402,023 $ 338,630,744 $ 242
Grapevine Mills:
Anchor/Majors 857,188 $ 185,407,585 $ 216
Specialty 490,587 145,920,922 297
Temporary/Kiosk - 10,783,248 -
----------------------------------------------
1,347,775 $ 342,111,755 $ 254
Arizona Mills:
Anchor/Majors 673,896 $ 118,408,694 $ 176
Specialty 472,561 149,450,464 316
Temporary/Kiosk - 7,995,264 -
----------------------------------------------
1,146,457 $ 275,854,422 $ 241
The Oasis at Sawgrass:
Anchor/Majors 134,860 $ 14,370,257 $ 107
Specialty 130,003 68,543,237 527
Temporary/Kiosk - - -
----------------------------------------------
264,863 $ 82,913,494 $ 313
Total Mills
Anchor/Majors 6,474,470 $ 1,342,408,918 $ 207
Specialty 3,811,380 1,328,131,372 348
Temporary Kiosk - 59,343,263 -
----------------------------------------------
10,285,850 $ 2,729,883,553 $ 265
==============================================
The Block at Orange
Anchor/Majors 359,798 $ 64,877,554 $ 180
Specialty 227,881 83,880,377 368
Temporary/Kiosk - 5,486,156 -
----------------------------------------------
587,679 $ 154,244,087 $ 262
Total Mills and The Block
Anchor/Majors 6,834,268 $ 1,407,286,472 $ 206
Specialty 4,039,261 1,412,011,749 350
Temporary Kiosk - 64,829,419 -
----------------------------------------------
10,873,529 $ 2,884,127,640 $ 265
==============================================
</TABLE>
<TABLE>
<CAPTION>
Twelve Months ended September 30, 1999 Twelve Months ended December 31, 1999
-------------------------------------- -------------------------------------
Sq Ft Sales psf Sq Ft Sales psf
----- ----- --- ----- ----- ---
<S> <C> <C> <C> <C> <C> <C>
Potomac Mills:
Anchor/Majors 904,826 $ 202,736,680 $ 224 908,839 $ 203,605,964 $ 224
Specialty 595,506 192,900,739 324 589,380 194,162,316 329
Temporary/Kiosk - 3,170,979 - - 4,402,397 -
---------------------------------------------- ----------------------------------------------
1,500,332 $ 398,808,398 $ 266 1,498,219 $ 402,170,677 $ 268
Franklin Mills:
Anchor/Majors 962,442 $ 156,248,099 $ 162 958,557 $ 161,484,240 $ 168
Specialty 540,541 169,002,646 313 522,365 164,958,255 316
Temporary/Kiosk - 1,594,403 - - 6,502,230 -
---------------------------------------------- ----------------------------------------------
1,502,983 $ 326,845,148 $ 217 1,480,922 $ 332,944,725 $ 225
Sawgrass Mills:
Anchor/Majors 1,142,301 $ 338,340,060 $ 296 1,140,813 $ 342,642,918 $ 300
Specialty 654,591 288,953,311 441 648,498 282,866,635 436
Temporary/Kiosk - 8,017,991 - - 9,002,205 -
---------------------------------------------- ----------------------------------------------
1,796,892 $ 635,311,362 $ 354 1,789,311 $ 634,511,758 $ 355
Gurnee Mills:
Anchor/Majors 829,648 $ 144,598,168 $ 174 832,290 $ 139,416,739 $ 168
Specialty 572,196 164,268,524 287 567,505 164,669,598 290
Temporary/Kiosk - 7,063,556 - - 7,067,600 -
---------------------------------------------- ----------------------------------------------
1,401,844 $ 315,930,248 $ 225 1,399,795 $ 311,153,937 $ 222
Ontario Mills:
Anchor/Majors 847,994 $ 139,859,145 $ 165 871,267 $ 145,908,434 $ 167
Specialty 482,017 172,120,742 357 479,270 173,224,557 361
Temporary/Kiosk - 8,187,482 - - 7,306,868 -
---------------------------------------------- ----------------------------------------------
1,330,011 $ 320,167,369 $ 241 1,350,537 $ 326,439,859 $ 242
Grapevine Mills:
Anchor/Majors 665,583 $ 114,102,906 $ 171 803,425 $ 172,500,779 $ 215
Specialty 507,180 151,335,145 298 506,035 150,259,271 297
Temporary/Kiosk - 8,400,083 - - 9,030,995 -
---------------------------------------------- ----------------------------------------------
1,172,763 $ 273,838,134 $ 233 1,309,460 $ 331,791,045 $ 253
Arizona Mills:
Anchor/Majors 663,358 $ 118,177,120 $ 178 674,963 $ 118,027,825 $ 175
Specialty 485,915 145,762,505 300 489,120 150,345,621 307
Temporary/Kiosk - 7,039,689 - - 7,321,984 -
---------------------------------------------- ----------------------------------------------
1,149,273 $ 270,979,314 $ 236 1,164,083 $ 275,695,430 $ 237
The Oasis at Sawgrass:
Anchor/Majors N/A (1) N/A (1) N/A (1) N/A (1) N/A (1) N/A (1)
Specialty N/A (1) N/A (1) N/A (1) 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)
---------------------------------------------- ----------------------------------------------
N/A (1) N/A (1) N/A (1) N/A (1) N/A (1) N/A (1)
Total Mills
Anchor/Majors 6,016,152 $ 1,214,062,178 $ 202 6,190,154 $1,283,586,899 $ 207
Specialty 3,837,946 1,284,343,612 335 3,802,173 1,280,486,253 337
Temporary Kiosk - 43,474,183 - - 50,634,279 -
---------------------------------------------- ----------------------------------------------
9,854,098 $ 2,541,879,973 $ 258 9,992,327 $2,614,707,431 $ 262
============================================== ==============================================
The Block at Orange
Anchor/Majors N/A (1) N/A (1) N/A (1) 357,956 $ 63,274,627 $ 177
Specialty N/A (1) N/A (1) N/A (1) 239,765 80,930,385 338
Temporary/Kiosk N/A (1) N/A (1) N/A (1) - 7,208,445 -
---------------------------------------------- ----------------------------------------------
N/A (1) N/A (1) N/A (1) 597,721 $ 151,413,457 $ 253
Total Mills and The BlocK
Anchor/Majors 6,016,152 $ 1,214,062,178 $ 202 6,548,110 $1,346,861,526 $ 206
Specialty 3,837,946 1,284,343,612 335 4,041,938 1,361,416,638 337
Temporary Kiosk - 43,474,183 - - 57,842,724 -
---------------------------------------------- ----------------------------------------------
9,854,098 $ 2,541,879,973 $ 258 10,590,048 $2,766,120,888 $ 261
============================================== ==============================================
</TABLE>
(1) Concord Mills, Katy Mills and Opry Mills which opened September 1999,
October 1999 and May 2000, respectively are excluded from this analysis,
since these projects have not reached stabilized performance levels.
(2) Anchor/Major sales include sales from certain anchor tenants that own
their parcels.
25
<PAGE> 23
THE MILLS CORPORATION
COMPARABLE SPECIALTY STORE TENANT SALES
NINE MONTHS 2000 VS. NINE MONTHS 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
YTD YTD
Sep. 30, 2000 Sep. 30, 1999 Percentage
Sales Sales Change
----- ----- ------
Property Name:
--------------
<S> <C> <C> <C>
Potomac Mills $ 110,323 $ 113,739 -3.0%
Franklin Mills 94,174 97,962 -3.9%
Sawgrass Mills 158,046 156,432 1.0%
Gurnee Mills 82,618 85,847 -3.8%
Ontario Mills 100,412 93,598 7.3%
Grapevine Mills 82,722 84,390 -2.0%
Arizona Mills 86,234 80,652 6.9%
------------------- ------------------ -------------------
Total Mills $ 714,529 $ 712,620 0.3%
=================== ================== ===================
The Block at Orange $ 52,535 $ 48,232 8.9%
------------------- ------------------ -------------------
Total including The Block $ 767,064 $ 760,852 0.8%
=================== ================== ===================
</TABLE>
Note: Comparable sales presented above are based on tenant reported sales
for the nine months ended September 30, 2000 versus the nine months ended
September 30 1999 and include only those tenants that have been in
occupancy for past 21 month period ended September 30, 2000.
26
<PAGE> 24
THE MILLS CORPORATION
CAPITAL EXPENDITURES
MILLS, BLOCK AND COMMUNITY CENTERS COMBINED (9), (10), (11)
<TABLE>
<CAPTION>
Nine Months Ended Year ended December 31,
September 30, 2000 1999 1998
---------------------- -------------------- ----------------
<S> <C> <C> <C>
RECURRING NON-TENANT CAPITAL EXPENDITURES (1)
Costs $ 643,300 $ 284,206 $ 1,356,290
Per Square Foot (2) 0.05 0.03 0.12
RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 2,577,533 $ 3,934,656 $ 4,497,574
Per Square Foot Improved (4) 6.63 8.52 7.85
Per Square Foot (2) 0.28 0.38 0.46
TOTAL RECURRING COSTS
Costs $ 3,220,834 $ 4,218,862 $ 5,853,864
Per Square Foot (2) 0.33 0.41 0.58
NON RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 16,705,915 (7) $ 22,811,936 (7) $ 18,774,753 (7)
Per Square Foot Improved (5) 50.24 51.85 71.68
Per Square Foot (2) 1.28 1.91 1.58
WORK IN PROCESS (6)
Cummulative Costs $ 8,097,414 $ 2,676,259 $ 8,447,326
Cummulative Per Square Foot Improved (8) 33.59 18.81 25.99
</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 Mills Phase III (The Oasis),
Ontario Mills and Grapevine Mills.
(8) Calculated as Work In Process divided by GLA of all space with work in
process.
(9) Excludes projects that have not completed at least one entire fiscal year.
(10) Capital expenditures include only the Company's share of costs related to
the joint venture projects. The capital expenditures for the twelve
months ended December 31, 1999 and 1998 have been adjusted to include
only the Company's share of costs related to the joint ventures versus
the total costs for the joint ventures as reported previously.
(11) The Company sold ten of its eleven community centers on August 3, 2000.
27
<PAGE> 25
THE MILLS CORPORATION
CAPITAL EXPENDITURES
MILLS AND BLOCK PORTFOLIO (9), (10)
<TABLE>
<CAPTION>
Nine Months Ended Year ended December 31,
September 30, 2000 1999 1998
---------------------- ------------------- --------------------
<S> <C> <C> <C>
RECURRING NON-TENANT CAPITAL EXPENDITURES (1)
Costs $ 495,992 $ 111,657 $ 852,262
Per Square Foot (2) 0.05 0.01 0.10
RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 1,833,785 $ 3,647,528 $ 3,304,643
Per Square Foot Improved (4) 6.93 9.28 8.53
Per Square Foot (2) 0.27 0.44 0.44
TOTAL RECURRING COSTS
Costs $ 2,329,777 $ 3,759,185 $ 4,156,905
Per Square Foot (2) 0.32 0.45 0.54
NON RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 13,762,744 (7) $ 16,842,194 (7) $ 18,038,585 (7)
Per Square Foot Improved (5) 51.38 64.28 96.48
Per Square Foot (2) 1.27 1.73 1.86
WORK IN PROCESS (6)
Cummulative Costs $ 3,273,183 $ 1,955,746 $ 6,779,660
Cummulative Per Square Foot Improved (8) 19.29 38.97 38.45
</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 Mills Phase III (The Oasis), Ontario Mills and Grapevine Mills.
(8) Calculated as Work In Process divided by GLA of all space with work in
process.
(9) Excludes projects that have not completed at least one entire fiscal
year.
(10) Capital expenditures include only the Company's share of costs related
to the joint venture projects. The capital expenditures for the twelve
months ended December 31, 1999 and 1998 have been adjusted to include
only the Company's share of costs related to the joint ventures versus
the total costs for the joint ventures as reported previously.
28
<PAGE> 26
THE MILLS CORPORATION
CAPITAL EXPENDITURES
COMMUNITY CENTERS (8)
<TABLE>
<CAPTION>
Nine Months Ended Year ended December 31,
September 30, 2000 1999 1998
---------------------- ----------------- --------------------
<S> <C> <C> <C>
RECURRING NON-TENANT CAPITAL EXPENDITURES (1)
Costs $ 147,308 $ 172,549 $ 504,028
Per Square Foot (2) 0.07 0.08 0.23
RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 743,748 $ 287,128 $ 1,192,931
Per Square Foot Improved (4) 5.66 3.83 6.10
Per Square Foot (1) 0.34 0.13 0.54
TOTAL RECURRING COSTS
Costs $ 891,057 $ 459,677 $ 1,696,959
Per Square Foot (2) 0.40 0.21 0.77
NON RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 2,943,172 $ 5,969,742 $ 736,168
Per Square Foot Improved (5) 45.50 33.49 9.76
Per Square Foot (2) 1.34 2.71 0.33
WORK IN PROCESS (6)
Cummulative Costs $ 4,824,231 $ 720,513 $ 1,667,666
Cummulative Per Square Foot Improved (7) 85.37 7.83 11.22
</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) Calculated as Work In Process divided by GLA of all space with work in
process.
(8) The Company sold ten of its eleven community centers on August 3, 2000.
29
<PAGE> 27
THE MILLS CORPORATION
KEY FINANCIAL RATIOS
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
SEPTEMBER 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
As of the
Twelve Months Ended September 30,
2000 1999
----------------- ----------------
<S> <C> <C>
COVERAGE RATIOS (Trailing 12 months EBITDA with JV's, Interest Expense with JV's)
Consolidated Interest Expense 53,235 45,114
JV Portion of Interest Expense 24,355 12,838
----------------- ----------------
Total Interest Expense 77,590 57,952
Interest Coverage Ratio (EBITDA / Interest Expense) 2.42 2.70
Fixed Charge Ratio (EBITDA / Interest Expense and Principle Amortization) 2.22 2.45
LEVERAGE RATIOS
Consolidated Debt to Market Capitalization Ratio 55.5% 55.4%
Total Debt to Market Capitalization Ratio (Includes Mills' Share of JV Debt) 65.6% 62.5%
DIVIDEND PAYOUT RATIOS (Trailing 12 months)
Dividends Paid 81,082 77,859
Funds from Operations 102,347 91,615
Adjusted Funds from Operations 96,913 86,584
FFO Payout Ratio (Dividend / FFO) 0.79 0.85
AFFO Payout Ratio (Dividend / AFFO) 0.84 0.90
DEBT INDICATORS
Weighted Average Maturity (Includes Mills' Share of JV Debt) 3.45 4.25
Weighted Average Interest Rate (Consolidated Debt Only) 8.37% 7.26%
Weighted Average Interest Rate (Includes Mills' Share of JV Debt) 8.19% 7.16%
Fixed Rate Debt % (Consolidated Debt) 52.9% 76.1%
Fixed Rate Debt % (Includes Mills' Share of JV Debt) (1) 51.2% 66.7%
</TABLE>
(1) Assume Opry Mills as fixed rate debt, since the variable rate
portion of interest rate has a cap of 7.00% and a floor of
6.275%.
30
<PAGE> 28
THE MILLS CORPORATION
KEY FINANCIAL RATIOS
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
SEPTEMBER 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
As of the
Twelve Months Ended September 30,
2000 1999
------------------ -------------------
<S> <C> <C>
MARKET CAPITALIZATION CALCULATIONS
----------------------------------
Shares and units outstanding (end of quarter) 39,139 39,386
Stock price (end of quarter) $ 18.938 $ 17.813
------------------ -------------------
Equity Market Capitalization (A) $ 741,195 $ 701,583
Consolidated Debt (end of quarter) 926,267 871,932
Mills' Share of JV Debt (end of quarter) 484,136 296,913
------------------ -------------------
Total Debt (B) 1,410,403 1,168,845
Total Market Capitalization (A) + (B) 2,151,598 1,870,428
================== ===================
EBITDA CALCULATION
------------------
Income Before Extraordinary Items and Minority Interest 61,716 49,851
Less: Gain on sale of community centers (18,370) --
Less: Equity in Earnings of Unconsolidated JV's before
Extraordinary Items (11,163) (11,320)
Plus: Consolidated Depreciation and Amortization 39,039 35,693
Plus: Consolidated Interest Expense 53,235 45,114
Plus: JV Share of EBITDA from JV Investments 63,406 37,286
------------------ -------------------
Total EBITDA 187,863 156,624
================== ===================
FFO and AFFO (Trailing 12 months)
---------------------------------
Funds From Operations 102,347 91,615
Less: Recurring Capital Expenditures (5,434) (5,031)
------------------ -------------------
Adjusted Funds From Operations 96,913 86,584
================== ===================
</TABLE>
