<PAGE> 1
- ------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): Commission File Number:
- ----------------------------------------------- -----------------------
December 31, 1999 1 - 12994
THE MILLS CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
Delaware 52-1802283
-------- ----------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
1300 Wilson Boulevard, Suite 400, Arlington, Virginia 22209
-----------------------------------------------------------
(Address of principal executive offices - zip code)
(703)526-5000
-------------
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
(former name or former address, if changed since last report)
Not Applicable
- ------------------------------------------------------------------------------
<PAGE> 2
THE MILLS CORPORATION
FORM 8-K
INDEX
ITEM 5. OTHER EVENTS
The Registrant made available additional operational information
concerning the Registrant, The Mills Corporation, and the properties
owned or managed by it as of December 31, 1999, in the form of a
Supplemental Information Package, a copy of which is included as an
exhibit to this filing. The Supplemental Information package is
available upon request as specified therein.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Financial Statements
NONE.
Exhibits:
<TABLE>
<CAPTION>
Page Number in
Exhibit No. Description Filing
- ----------- ----------- ------
<S> <C> <C>
99.1 Supplemental Information as 4
of December 31, 1999
</TABLE>
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
Dated: February 25, 2000 THE MILLS CORPORATION
By: /s/ Kenneth R. Parent
----------------------
Kenneth R. Parent
Executive Vice President, Finance
and Chief Financial Officer
(Principal Financial
and Accounting Officer)
<PAGE> 1
THE MILLS CORPORATION
SUPPLEMENTAL INFORMATION
TABLE OF CONTENTS
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
INFORMATION PAGE
----------- ----
<S> <C>
Overview 5-6
Summary of Operating Properties 7
Summary of Projects Under Construction/Development 8
Supplemental Financial Data 9
Property Operating Income 10-13
Unconsolidated Joint Ventures Net Income
and Funds From Operations 14-15
Occupancy Analysis 16
Lease Expiration Schedule 17-19
Rental Rates 20
Average Rents 21
Summary of Outstanding Consolidated Indebtedness 22
Summary of Outstanding Unconsolidated Indebtedness 23
Gross Sales 24
Comparable Specialty Store Tenant Sales 25
Capital Expenditures 26-28
</TABLE>
<PAGE> 2
THE MILLS CORPORATION
OVERVIEW
THE COMPANY
The Mills Corporation (the "Company") is a fully integrated, self-managed real
estate investment trust ("REIT").
The Company conducts all of its business through The Mills Limited Partnership
("the Operating Partnership"), in which it owns, as of December 31, 1999, a 1%
interest as the sole general partner and a 58.4% interest as a limited partner.
The Company, through the Operating Partnership, is engaged primarily in the
ownership, development, redevelopment, leasing, acquisition, expansion and
management of super-regional, retail and entertainment-oriented centers (the
"Mills" and "Block" projects) and community shopping centers (the "Community
Centers"). As of December 31, 1999, the Operating Partnership owns or holds an
interest in the following operating properties:
<TABLE>
<CAPTION>
Mills Location (Metropolitan Market Served)
----- -------------------------------------
<S> <C>
Franklin Mills Philadelphia, PA (Philadelphia)
Gurnee Mills Gurnee, IL (Chicago)
Potomac Mills Woodbridge, VA (Washington, DC)
Sawgrass Mills Sunrise, FL (Ft. Lauderdale)
Ontario Mills Ontario, CA (Los Angeles)
Grapevine Mills Grapevine, TX (Dallas/Fort Worth)
Arizona Mills Tempe, AZ (Phoenix)
The Oasis at Sawgrass Sunrise, FL (Ft. Lauderdale)
Concord Mills Concord, NC (Charlotte)
Katy Mills Houston, TX (Houston)
Block
-----
The Block at Orange Orange, CA (Los Angeles)
Community Centers
-----------------
Butterfield Plaza Downers Grove, IL
Coopers Plaza Voorhees, NJ
Crosswinds Center St. Petersburg, FL
Fashion Place Columbia, SC
Germantown Commons Shopping Center Germantown, MD
Gwinnett Marketfair Duluth, GA
Liberty Plaza Philadelphia, PA
Montgomery Village Off-Price Center Gaithersburg, MD
Mount Prospect Plaza Mount Prospect, IL
West Falls Church Outlet Center Falls Church, VA
Western Hills Plaza Cincinnati, OH
</TABLE>
In addition to the operating properties, the Company is actively involved in the
pre-development or development of a number of new projects, including Opry Mills
(Nashville, TN), Arundel Mills (Dorchester, MD), Sugarloaf Mills (Atlanta, GA),
Vaughan Mills (Toronto, Cananda) and Meadowlands Mills (Carlstadt, NJ).
5
<PAGE> 3
THE MILLS CORPORATION
OVERVIEW
PURPOSE OF FILING
The purpose of this supplemental information package is to provide supplemental
information regarding the operations, assets and liabilities as of December 31,
1999 for the Company and Operating Partnership.
CAUTIONARY STATEMENT
Certain matters discussed in this supplemental information package contain
"forward-looking statements" for purposes of Section 27A of the Securities Act
of 1933, as amended (the "Securities Act") and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act") relating to, without
limitation, future economic performance, plans and objectives of management for
future operations, projections of revenue and other financial items, demographic
projections and federal income tax considerations, which can be identified by
the use of forward-looking terminology such as "may", "will", "expect",
"anticipate", "estimate" or "continue" or the negative thereof or other
variations thereon or comparable terminology. Such forward-looking statements
are subject to certain risks and uncertainties that could cause actual results
to differ materially from those described in such forward-looking statements.
6
<PAGE> 4
THE MILLS CORPORATION
SUMMARY OF OPERATING PROPERTIES
The following table sets forth certain information with respect to the
properties as of December 31, 1999:
<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% 1,637,122 1,000,557 636,565
Woodbridge, VA Baltimore
Franklin Mills.............. Philadelphia/ 1989 100% 1,741,141 1,142,835 598,306
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% 1,699,673 1,076,646 623,027
Gurnee, IL
Ontario Mills............... Los Angeles 1996 50% 1,471,096 (4) 961,527 509,569
Ontario, CA
Grapevine Mills............. Dallas/Fort Worth 1997 37.5% 1,500,470 957,073 543,397
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% 1,235,838 (5) 670,438 565,400
Concord, NC
Katy Mills.................. Houston 1999 62.5% 1,159,821 595,993 563,828
Houston, TX ---------- --------- ---------
MILLS TOTALS/WEIGHTED AVERAGES........... 13,814,450 8,409,385 5,405,065
========== ========= =========
The Block at Orange Los Angeles/Orange 1998 50% 644,652 359,701 284,951
County ========== ========= =========
COMMUNITY CENTERS (11 CENTERS) 2,220,320 1,363,119 857,201
========== ========= =========
</TABLE>
<TABLE>
<CAPTION>
12 Mos. Ended
Annualized No. of 12/31/1999
Metropolitan Percent Base Anchor Specialty Store
Name/Location Area Serviced Leased (2) Rent (6) Stores (3) Sales PSF
- ---------------------------- ------------- ---------- -------- ---------- ---------
<S> <C> <C> <C> <C> <C>
MILLS
Potomac Mills............... Washington D.C./ 97% $ 21,699,801 17 $ 329
Woodbridge, VA Baltimore
Franklin Mills.............. Philadelphia/ 92% 17,448,588 16 316
Philadelphia, PA Wilmington
Sawgrass Mills.............. Fort Lauderdale, FL/ 96% 24,766,417 19 436
Sunrise, FL Miami/Palm Beach
Gurnee Mills................ Chicago/Milwaukee 96% 17,784,832 17 290
Gurnee, IL
Ontario Mills............... Los Angeles 98% 19,867,357 23 361
Ontario, CA
Grapevine Mills............. Dallas/Fort Worth 98% 21,177,189 17 297
Grapevine, TX
Arizona Mills............... Phoenix 98% 19,538,164 16 307
Tempe, AZ
The Oasis at Sawgrass....... Fort Lauderdale, FL/ 94% 5,947,047 3 N/A(7)
Sunrise, FL Miami/Palm Beach
Concord Mills............... Charlotte 89% 18,442,990 15 N/A(7)
Concord, NC
Katy Mills.................. Houston 91% 18,651,953 13 N/A(7)
Houston, TX ------------ -----
MILLS TOTALS/WEIGHTED AVERAGES........... 95% $185,324,338 156 $ 337
============ =====
The Block at Orange Los Angeles/Orange 94% $ 14,399,399 9 338
County ============ =====
COMMUNITY CENTERS (11 CENTERS) 89% $ 18,051,821 27
============ =====
</TABLE>
(1) Includes 963,173 square feet of gross leaseable area owned by certain store
tenants as follows: Potomac Mills-80,000 square feet of gross leaseable
area; Franklin Mills-209,612 square feet of gross leaseable area; Sawgrass
Mills-281,774 square feet of gross leaseable area; Gurnee Mills-250,806
square feet of gross leaseable area; Liberty Plaza - 13,741 square feet of
gross leaseable area; West Falls Church- 2,240 square feet of gross
leaseable area and Ontario Mills - 125,000 square feet of gross leaseable
area.
(2) Gross leaseable area leased is defined as follows: all space leased and for
which rent is being paid as of December 1, 1999, excluding tenant with
leases having a term of less than 1 year plus gross leaseable area owned by
store tenants described in footnote (1).
(3) Anchor stores include all stores occupying more than 20,000 square feet and
certain store tenants described in footnote (1).
(4) Ontario Mills will contain approximately 1.7 million square feet of gross
leaseable area, including gross leaseable area owned by certain anchor
store tenants, upon completion.
(5) Concord Mills will contain approximately 1.3 million square feet of gross
leaseable area, including gross leaseable area owned by certain anchor
store tenants, upon completion.
(6) Annualized Base Rent is defined as the contractual minimum rent of tenants
comprising gross leaseable occupied area at 12/31/99 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.
(7) Twelve months ended December 31, 1999 sales per square foot information is
not available for The Oasis at Sawgrass, Concord Mills and Katy Mills,
which commenced business in April 1999, September 1999 and October 1999,
respectively.
7
<PAGE> 5
THE MILLS CORPORATION
SUMMARY OF PROPERTIES UNDER CONSTRUCTION/DEVELOPMENT
<TABLE>
<CAPTION>
Estimated Anchor
Anticipated Approx. Aggregate Required Store
Metropolitan Opening GLA Company Project Equity from Percentage Tenant
Name/Location Area Serviced Date (1) (Sq. Ft.) (1,2) Ownership Cost (1) Company Pre-leased (6) Commitments
- ------------------- ------------- ----------- --------------- --------- ---------- ----------- -------------- -----------
(millions) (millions)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Opry Mills Nashville Spring 1,200,000 66.7% $ 222 $ 52.00 67% 13
Nashville, TN 2000
Arundel Mills Baltimore/ Fall 1,300,000 37.5% $ 230 $ 17.50 28% 8
Dorchester, MD Washington D.C. 2000
Sugarloaf Mills Atlanta Spring 1,200,000 50.0% $ 231 $ - N/A(4) N/A(4)
Atlanta, GA 2001
Vaughan Mills Toronto 2001 1,400,000 N/A(3) N/A(3) N/A(3) N/A(4) N/A(4)
Toronto, Canada
Meadowlands Mills New York City/ 2002 N/A(3) 66.7%(7) N/A(3) N/A(3) N/A(5) N/A(5)
Carlstadt, NJ Northern New
Jersey
</TABLE>
(1) Anticipated Opening Dates, Approximate Gross Leaseable Area and Estimated
Aggregate Project Cost may be subject to adjustment as a result of factors
inherent in the development process, some of which may not be under the
direct control of the Company.
(2) Approximate GLA includes space that may be owned by certain anchor store
tenants.
(3) The ownership structure, budgets, gross leaseable area, start dates and/or
opening dates for these properties have not yet been determined.
(4) The Company recently has begun leasing efforts for these projects and has
obtained various letters of interest.
(5) Leasing activity has not yet commenced for this project. However, the
Company has received letters of interest from 17 anchor store tenants.
(6) Consists of fully executed leases as of December 31, 1999.
(7) The Company's ownership percentage in Meadowlands Mills will be 53.3%, once
all joint venture partners have executed their respective partnership
agreements.
8
<PAGE> 6
THE MILLS CORPORATION
SUPPLEMENTAL FINANCIAL DATA
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED TWELVE MONTHS ENDED
December 31, December 31,
1999 1998 1999 1998
-------- -------- --------- ---------
STATEMENT OF OPERATIONS DATA:
<S> <C> <C> <C> <C>
REVENUES:
Minimum rent $26,655 $26,701 $104,407 $101,503
Percentage rent 2,544 1,860 3,677 3,832
Recoveries from tenants 11,921 14,409 51,680 50,943
Other property revenue 3,050 2,703 8,778 7,653
Management fee income 1,870 559 4,891 2,193
Other fee income 2,348 1,792 8,647 7,908
Interest income 480 908 2,605 3,238
-------- -------- --------- ---------
Total revenues 48,868 48,932 184,685 177,270
EXPENSES:
Recoverable from tenants 9,830 12,340 44,464 44,361
Other property operating 2,451 1,877 6,184 5,872
General and administrative 3,239 2,699 12,416 9,994
Interest expense 12,257 10,984 46,808 44,044
Depreciation and amortization 10,490 9,514 36,669 36,925
-------- -------- --------- ---------
Total expenses 38,267 37,414 146,541 141,196
Other income/(expense) (1,948) (439) (1,828) (979)
Equity in earnings of unconsolidated joint ventures 5,114 3,936 12,287 8,097
-------- -------- --------- ---------
Income before extraordinary item and minority interest 13,767 15,015 48,603 43,192
Extraordinary losses on debt extinguishments - - (2,762) (422)
Equity in extraordinary losses on debt extinguishments
of unconsolidated joint ventures - (2,845) - (3,518)
-------- -------- --------- ---------
Income before minority interest 13,767 12,170 45,841 39,252
Minority interest (5,590) (4,951) (18,618) (16,000)
-------- -------- --------- ---------
Net income $8,177 $7,219 $27,223 $23,252
======== ======== ========= =========
Income per share before extraordinary item (Basic) $0.35 $0.39 $1.25 $1.11
======== ======== ========= =========
Income per share before extraordinary item (Diluted) $0.35 $0.38 $1.24 $1.10
======== ======== ========= =========
Net income per share (Basic) $0.35 $0.31 $1.18 $1.01
======== ======== ========= =========
Net income per share (Diluted) $0.34 $0.31 $1.17 $1.00
======== ======== ========= =========
FUNDS FROM OPERATIONS (*):
Income before extraordinary item
and minority interest $13,767 $15,015 $48,603 $43,192
Adjustments:
Add: Depreciation and amortization of real estate
assets 9,180 8,103 32,333 32,694
Add: Real estate depreciation and amortization
of unconsolidated joint ventures 5,450 1,819 14,140 9,161
-------- -------- --------- ---------
Funds from operations $28,397 $24,937 $95,076 $85,047
======== ======== ========= =========
BASIC:
Weighted average shares 23,144 23,082 23,131 23,011
Weighted average shares and units 38,988 38,926 38,976 38,881
DILUTED:
Weighted average shares 23,144 23,314 23,293 23,361
Weighted average shares and units 38,988 39,158 39,137 39,230
</TABLE>
- --------------------------------------------------------------
(*) The Company generally considers Funds From Operations ("FFO") a widely used
and appropriate measure of performance for an equity REIT which provides a
relevant basis for comparison among REITs. FFO as defined by the National
Association of Real Estate Investment Trusts (NAREIT) means income (loss)
before minority interest (determined in accordance with Generally Accepted
Accounting Principles (GAAP)), excluding gains (losses) from debt
restructuring and sales of property, plus real estate related depreciation
and amortization and after adjustments for unconsolidated partnerships and
joint ventures. FFO is presented to assist investors in analyzing the
performance of the Company. The Company's method of calculating FFO may be
different from methods used by other REITs and, accordingly, may not be
comparable to such other REITs. FFO (i) does not represent cash flow from
operations as defined by GAAP, (ii) is not indicative of cash available to
fund all cash flow needs and liquidity, including its ability to make
distributions, and (iii) should not be considered as an alternative to net
income (determined in accordance with GAAP) for purposes of evaluating the
Company's operating performance.
9
<PAGE> 7
THE MILLS CORPORATION
PROPERTY OPERATING INCOME
(IN THOUSANDS)
(UNAUDITED)
THE FOLLOWING TABLE SETS FORTH THE PROPERTY OPERATING INCOME FOR EACH OF THE
MILLS, 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 DECEMBER 31, 1999
<TABLE>
<CAPTION>
WHOLLY OWNED PROPERTIES
Community
Potomac Franklin Sawgrass Gurnee Mainstreet Centers Total
------- -------- -------- ------ ---------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $5,489 $4,503 $ 6,275 $4,737 $1,126 $4,525 $26,655
Percentage rent 401 392 1,233 445 34 39 2,544
Recoveries from tenants 2,237 2,990 3,175 2,473 8 1,038 11,921
Other revenue 473 507 1,064 810 123 73 3,050
-----------------------------------------------------------------------------
Total rental revenues 8,600 8,392 11,747 8,465 1,291 5,675 44,170
PROPERTY OPERATING COSTS:
Recoverable from tenants 1,781 2,046 2,738 2,120 - 1,145 9,830
Other operating (1) 233 301 250 697 580 390 2,451
-----------------------------------------------------------------------------
Total property operating costs 2,014 2,347 2,988 2,817 580 1,535 12,281
-----------------------------------------------------------------------------
PROPERTY OPERATING INCOME $6,586 $6,045 $ 8,759 $5,648 $ 711 $4,140 $31,889
=============================================================================
</TABLE>
<TABLE>
<CAPTION>
UNCONSOLIDATED JOINT VENTURES
Ontario Grapevine Arizona The Block The Oasis Concord Katy Other Total
------- --------- ------- --------- --------- ------- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $5,020 $ 6,296 $5,350 $ 4,307 $1,541 $4,904 $3,416 $ 13 $30,847
Percentage rent 395 233 406 133 - 38 3 - 1,208
Recoveries from tenants 2,383 2,559 1,743 587 696 1,191 1,091 1 10,251
Other revenue (2) 1,567 919 725 382 54 766 488 - 4,901
---------------------------------------------------------------------------------------
Total rental revenues 9,365 10,007 8,224 5,409 2,291 6,899 4,998 14 47,207
PROPERTY OPERATING COSTS:
Recoverable from tenants 1,792 2,079 1,957 1,089 538 1,323 1,334 (1) 10,111
Other operating (1) 378 305 365 (160) 137 275 79 123 1,502
---------------------------------------------------------------------------------------
Total property operating costs 2,170 2,384 2,322 929 675 1,598 1,413 122 11,613
---------------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $7,195 $ 7,623 $5,902 $ 4,480 $1,616 $5,301 $3,585 $(108) $35,594
=======================================================================================
</TABLE>
(1) Total property operating costs excludes management fees as follows: Potomac
Mills - $270, Franklin Mills - $204, Sawgrass Mills - $321, Gurnee Mills -
$269, Community Centers - $210, Ontario Mills - $259, Grapevine Mills -
$320, Arizona Mills - $339, The Block at Orange - $157, The Oasis at
Sawgrass - $70, Concord Mills - $358 and Katy Mills - $150.
(2) Other revenue for The Block excludes $329 of income related to tax
increment financing for the project, which the Company considers to be
recurring operating income.
10
<PAGE> 8
THE MILLS CORPORATION
PROPERTY OPERATING INCOME
(IN THOUSANDS)
(UNAUDITED)
THE FOLLOWING TABLE SETS FORTH THE PROPERTY OPERATING INCOME FOR EACH OF THE
MILLS, 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 THREE MONTHS ENDED DECEMBER 31, 1998
Community
Potomac Franklin Sawgrass Gurnee Mainstreet Centers Total
------- -------- -------- ------ ---------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $5,425 $4,472 $6,561 $4,515 $1,135 $4,593 $26,701
Percentage rent 178 336 849 275 112 110 1,860
Recoveries from tenants 2,538 3,191 4,497 2,711 11 1,461 14,409
Other revenue 460 436 1,187 441 123 56 2,703
--------------------------------------------------------------------
Total rental revenues 8,601 8,435 13,094 7,942 1,381 6,220 45,673
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,079 2,253 4,152 2,407 - 1,449 12,340
Other operating (1) 189 214 307 393 434 340 1,877
--------------------------------------------------------------------
Total property operating costs 2,268 2,467 4,459 2,800 434 1,789 14,217
--------------------------------------------------------------------
PROPERTY OPERATING INCOME $6,333 $5,968 $8,635 $5,142 $ 947 $4,431 $31,456
====================================================================
</TABLE>
<TABLE>
<CAPTION>
UNCONSOLIDATED JOINT VENTURES
Ontario Grapevine Arizona The Block Other Total
------- --------- ------- --------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $4,889 $5,199 $4,459 $2,108 $ - $16,655
Percentage rent 323 348 255 - - 926
Recoveries from tenants 2,310 2,475 1,891 457 - 7,133
Other revenue 906 893 731 159 3 2,692
--------------------------------------------------------------
Total rental revenues 8,428 8,915 7,336 2,724 3 27,406
PROPERTY OPERATING COSTS:
Recoverable from tenants 1,844 2,232 1,859 633 - 6,568
Other operating (1) 197 319 198 17 120 851
--------------------------------------------------------------
Total property operating costs 2,041 2,551 2,057 650 120 7,419
--------------------------------------------------------------
PROPERTY OPERATING INCOME $6,387 $6,364 $5,279 $2,074 $ (117) $19,987
==============================================================
</TABLE>
(1) Total property operating costs excludes management fees as follows: Potomac
Mills - $256, Franklin Mills - $194, Sawgrass Mills - $337, Gurnee Mills -
$215, Community Centers - $200, Ontario Mills - $260, Grapevine Mills -
$398, Arizona Mills - $316 and The Block at Orange - $28.
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, 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 TWELVE MONTHS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
WHOLLY OWNED PROPERTIES
Community
Potomac Franklin Sawgrass Gurnee Mainstreet Centers Total
------- -------- -------- ------ ---------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $21,698 $18,437 $25,680 $18,109 $2,423 $18,060 $104,407
Percentage rent 486 452 1,868 544 236 91 3,677
Recoveries from tenants 9,510 11,942 14,771 9,724 62 5,671 51,680
Other revenue 1,077 1,146 3,717 1,771 599 468 8,778
--------------------------------------------------------------------------------
Total rental revenues 32,771 31,977 46,036 30,148 3,320 24,290 168,542
PROPERTY OPERATING COSTS:
Recoverable from tenants 8,023 9,095 13,101 8,446 7 5,792 44,464
Other operating (1) 735 966 703 1,150 1,838 792 6,184
--------------------------------------------------------------------------------
Total property operating costs 8,758 10,061 13,804 9,596 1,845 6,584 50,648
--------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $24,013 $21,916 $32,232 $20,552 $1,475 $17,706 $117,894
================================================================================
</TABLE>
<TABLE>
<CAPTION>
UNCONSOLIDATED JOINT VENTURES
Ontario Grapevine Arizona The Block The Oasis Concord Katy Other Total
------- --------- ------- --------- --------- ------- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $19,507 $22,391 $20,986 $16,139 $4,221 $5,763 $3,416 $ 85 $ 92,508
Percentage rent 447 233 542 143 -- 38 3 -- 1,406
Recoveries from tenants 9,513 10,079 8,381 3,363 1,336 1,394 1,091 6 35,163
Other revenue (2) 2,905 2,373 1,902 1,335 103 831 488 -- 9,937
--------------------------------------------------------------------------------------
Total rental revenues 32,372 35,076 31,811 20,980 5,660 8,026 4,998 91 139,014
PROPERTY OPERATING COSTS:
Recoverable from tenants 8,296 8,808 8,048 4,761 1,240 1,622 1,334 8 34,117
Other operating (1) 760 916 1,151 465 377 279 79 341 4,368
--------------------------------------------------------------------------------------
Total property operating costs 9,056 9,724 9,199 5,226 1,617 1,901 1,413 349 38,485
--------------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $23,316 $25,352 $22,612 $15,754 $4,043 $6,125 $3,585 $(258) $100,529
======================================================================================
</TABLE>
(1) Total property operating costs excludes management fees as follows: Potomac
Mills - $935, Franklin Mills - $791, Sawgrass Mills - $1,218, Gurnee Mills
- $867, Community Centers - $795, Ontario Mills - $849, Grapevine Mills -
$1,332, Arizona Mills - $1,357, The Block at Orange - $660, The Oasis at
Sawgrass - $151, Concord Mills - $365, and Katy Mills - $150.
(2) Other revenue for The Block excludes $1,298 of income related to tax
increment financing for the project, which the Company considers to be
recurring operating income.
12
<PAGE> 10
THE MILLS CORPORATION
PROPERTY OPERATING INCOME
(IN THOUSANDS)
(UNAUDITED)
THE FOLLOWING TABLE SETS FORTH THE PROPERTY OPERATING INCOME FOR EACH OF THE
MILLS, 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 TWELVE MONTHS ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
Community
Potomac Franklin Sawgrass Gurnee Mainstreet Centers Total
------- -------- -------- ------ ---------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $21,127 $17,182 $25,918 $17,004 $2,205 $18,067 $101,503
Percentage rent 317 507 1,852 521 306 329 3,832
Recoveries from tenants 9,217 11,744 14,911 9,524 48 5,499 50,943
Other revenue 1,085 1,055 3,482 1,367 521 143 7,653
----------------------------------------------------------------------------
Total rental revenues 31,746 30,488 46,163 28,416 3,080 24,038 163,931
PROPERTY OPERATING COSTS:
Recoverable from tenants 7,644 8,977 13,528 8,486 - 5,726 44,361
Other operating (1) 739 1,018 616 1,221 1,535 743 5,872
----------------------------------------------------------------------------
Total property operating costs 8,383 9,995 14,144 9,707 1,535 6,469 50,233
----------------------------------------------------------------------------
PROPERTY OPERATING INCOME $23,363 $20,493 $32,019 $18,709 $1,545 $17,569 $113,698
============================================================================
</TABLE>
<TABLE>
<CAPTION>
UNCONSOLIDATED JOINT VENTURES
Ontario Grapevine Arizona The Block Other Total
------- --------- ------- --------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $19,003 $20,584 $18,776 $2,415 $ 77 $60,855
Percentage rent 514 524 389 - - 1,427
Recoveries from tenants 8,860 8,763 7,646 476 2 25,747
Other revenue 2,230 2,349 1,945 169 - 6,693
-------------------------------------------------------------------
Total rental revenues 30,607 32,220 28,756 3,060 79 94,722
PROPERTY OPERATING COSTS:
Recoverable from tenants 8,110 8,142 6,987 701 - 23,940
Other operating (1) 717 576 584 32 486 2,395
-------------------------------------------------------------------
Total property operating costs 8,827 8,718 7,571 733 486 26,335
-------------------------------------------------------------------
PROPERTY OPERATING INCOME $21,780 $23,502 $21,185 $2,327 $(407) $68,387
===================================================================
</TABLE>
(1) Total property operating costs excludes management fees as follows: Potomac
Mills - $914, Franklin Mills - $738, Sawgrass Mills - $1,269, Gurnee Mills
- $765, Community Centers - $784, Ontario Mills - $878, Grapevine Mills -
$1,465, Arizona Mills - $1,292 and The Block at Orange - $40.
13
<PAGE> 11
THE MILLS CORPORATION
UNCONSOLIDATED JOINT VENTURES
NET INCOME AND FUNDS FROM OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
FOR THE THREE MONTHS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
The The
Ontario Grapevine Arizona Block Oasis Concord Katy Other Total
------- --------- ------- ----- ----- ------- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
REVENUES:
Minimum rent $5,020 $ 6,296 $5,350 $ 4,307 $1,541 $ 4,904 $3,416 $ 13 $ 30,847
Percentage rent 395 233 406 133 - 38 3 - 1,208
Recoveries from tenants 2,383 2,559 1,743 587 696 1,191 1,091 1 10,251
Interest income 129 543 79 511 306 365 1,681 164 3,778
Other revenue 1,567 919 725 382 54 766 488 - 4,901
------------------------------------------------------------------------------------
Total revenues 9,494 10,550 8,303 5,920 2,597 7,264 6,679 178 50,985
EXPENSES:
Recoverable from tenants 1,792 2,079 1,957 1,089 538 1,323 1,334 (1) 10,111
Other operating (1) 637 625 704 (3) 207 633 229 123 3,155
Interest expense 2,472 2,896 2,600 2,261 253 2,229 1,083 291 14,085
Depreciation and amortization 2,119 3,072 1,927 1,952 1,266 3,138 1,840 1,041 16,355
------------------------------------------------------------------------------------
Total Expenses 7,020 8,672 7,188 5,299 2,264 7,323 4,486 1,454 43,706
Gain on Land Sales - - - - - - - 5,719 5,719
Other - - - (6) - - - (2,055) (2,061)
------------------------------------------------------------------------------------
NET INCOME/(LOSS) 2,474 1,878 1,115 615 333 (59) 2,193 2,388 10,937
====================================================================================
RECONCILIATION OF NET INCOME
TO FUNDS FROM OPERATIONS
Income before extraordinary items 2,474 1,878 1,115 615 333 (59) 2,193 2,388 10,937
Adjustments:
Add: Depreciation and amortization of
real estate assets 2,083 3,030 1,789 1,791 1,149 2,914 1,629 467 14,852
------------------------------------------------------------------------------------
TOTAL FUNDS FROM OPERATIONS $4,557 $ 4,908 $2,904 $ 2,406 $1,482 $ 2,855 $3,822 $ 2,855 $ 25,789
====================================================================================
MILLS ALLOCATIONS:
Mills share of FFO 1,987 1,665 1,069 591 338 999 2,412 1,503 10,564
Management Fees due Mills 259 214 362 157 6 236 150 - 1,384
------------------------------------------------------------------------------------
Total Mills FFO $2,246 $ 1,879 $1,431 $ 748 $ 344 $ 1,235 $2,562 $ 1,503 11,948
====================================================================================
Mills share of net income/(loss) $1,072 $ 636 $ 411 $ 151 $ 76 $ (21) $1,761 $ 1,028 $ 5,114
====================================================================================
</TABLE>
(1) Total property operating costs includes management fees as follows: Ontario
Mills - $259, Grapevine Mills - $320, Arizona Mills - $339, The Block at
Orange - $157, The Oasis at Sawgrass - $70, Concord Mills - $358 and Katy
Mills - $150.
14
<PAGE> 12
THE MILLS CORPORATION
UNCONSOLIDATED JOINT VENTURES
NET INCOME AND FUNDS FROM OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
Ontario Grapevine Arizona The Block The Oasis Concord Katy Other Total
------- --------- ------- --------- --------- ------- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
REVENUES:
Minimum rent $ 19,507 $ 22,391 $ 20,986 $ 16,139 $ 4,221 $ 5,763 $ 3,416 $ 85 $ 92,508
Percentage rent 447 233 542 143 - 38 3 - 1,406
Recoveries from tenants 9,513 10,079 8,381 3,363 1,336 1,394 1,091 6 35,163
Interest income 553 2,004 215 2,237 453 1,075 4,011 189 10,737
Other revenue 2,905 2,373 1,902 1,335 103 831 488 - 9,937
---------------------------------------------------------------------------------------
Total revenues 32,925 37,080 32,026 23,217 6,113 9,101 9,009 280 149,751
EXPENSES:
Recoverable from tenants 8,296 8,808 8,048 4,761 1,240 1,622 1,334 8 34,117
Other operating (1) 1,609 2,248 2,508 1,125 528 644 229 341 9,232
Interest expense 9,784 11,170 9,450 7,676 957 2,494 1,083 651 43,265
Depreciation and
amortization 8,458 9,989 7,343 8,623 2,598 3,264 1,840 1,041 43,156
---------------------------------------------------------------------------------------
Total Expenses 28,147 32,215 27,349 22,185 5,323 8,024 4,486 2,041 129,770
Gain on Land Sales - - - - - - - 8,568 8,568
Other - - (30) (24) - - - (2,055) (2,109)
---------------------------------------------------------------------------------------
NET INCOME 4,778 4,865 4,647 1,008 790 1,077 4,523 4,752 26,440
=======================================================================================
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
Income before extraordinary
items 4,778 4,865 4,647 1,008 790 1,077 4,523 4,752 26,440
Adjustments:
Add: Depreciation and
amortization of real
estate assets 8,315 9,818 6,838 7,984 2,254 3,040 1,629 467 40,345
---------------------------------------------------------------------------------------
TOTAL FUNDS FROM OPERATIONS $ 13,093 $ 14,683 $ 11,485 $ 8,992 $ 3,044 $ 4,117 $ 6,152 $ 5,219 $ 66,785
=======================================================================================
MILLS ALLOCATIONS:
Mills share of FFO 5,707 4,983 4,231 2,208 693 1,441 4,107 3,057 26,427
Management Fees due Mills 849 888 854 660 87 243 150 - 3,731
---------------------------------------------------------------------------------------
Total Mills FFO $ 6,556 $ 5,871 $ 5,085 $ 2,868 $ 780 $ 1,684 $ 4,257 $ 3,057 $ 30,158
=======================================================================================
Mills share of net income $ 2,083 $ 1,651 $ 1,712 $ 247 $ 180 $ 377 $ 3,456 $ 2,581 $ 12,287
=======================================================================================
</TABLE>
(1) Total property operating costs includes management fees as follows:
Potomac Mills - $935, Franklin Mills - $791, Sawgrass Mills - $1,218,
Gurnee Mills - $867, Community Centers - $795, Ontario Mills - $849,
Grapevine Mills - $1,332, Arizona Mills - $1,357, The Block at Orange -
$660, The Oasis at Sawgrass - $151, Concord Mills - $365, and Katy Mills
- $150.
15
<PAGE> 13
THE MILLS CORPORATION
OCCUPANCY ANALYSIS
<TABLE>
<CAPTION>
GROSS LEASED & OCCUPIED GROSS LEASED & OCCUPIED AREA, TOTAL VACANT S.F.
AREA (S.F.) (1) NET OF ANCHTOTAL VACANT S.F.
Gla Occupied(3) Total Gla Occupied(3) Vacancies
Project Total Gla At 12/99 % Specialty Gla At 12/99 % Anchor Specialty Total
- ------- --------- -------- - ------------- -------- - ------ --------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Potomac Mills 1,637,122 1,594,827 97.42% 636,565 594,270 93.36% 0 42,295 42,295
Franklin Mills 1,741,141 1,597,093 91.73% 598,306 521,813 87.22% 67,555 76,493 144,048
Sawgrass Mills 1,845,342 1,765,903 95.70% 676,617 642,497 94.96% 45,319 34,120 79,439
Gurnee Mills 1,699,673 1,639,317 96.45% 623,027 562,671 90.31% 0 60,356 60,356
------------------------------------ ------------------------------------ -------------------------------
Total Mills 6,923,278 6,597,140 95.29% 2,534,515 2,321,251 91.59% 112,874 213,264 326,138
Butterfield 114,610 114,610 100.00% 72,677 72,677 100.00% 0 0 0
Coopers Plaza 173,509 115,115 66.35% 14,953 14,953 100.00% 58,394 0 58,394
Crosswinds 144,273 141,600 98.15% 23,298 20,625 88.53% 0 2,673 2,673
Fashion Place 147,950 119,418 80.72% 74,692 46,160 61.80% 0 28,532 28,532
Germantown 177,097 173,097 97.74% 130,341 126,341 96.93% 0 4,000 4,000
Gwinnett 194,503 183,513 94.35% 96,956 85,966 88.66% 0 10,990 10,990
Liberty Plaza 315,067 248,856 78.99% 52,320 39,458 75.42% 53,349 12,862 66,211
Montgomery Village 117,391 94,601 80.59% 80,986 58,196 71.86% 0 22,790 22,790
Mt. Prospect 298,600 290,037 97.13% 126,005 117,442 93.20% 0 8,563 8,563
West Falls Church 87,824 86,488 98.48% 49,983 48,647 97.33% 0 1,336 1,336
Western Hills 449,496 404,281 89.94% 134,980 89,765 66.50% 0 45,215 45,215
------------------------------------ ------------------------------------ -------------------------------
2,220,320 1,971,616 88.80% 857,191 720,230 84.02% 111,743 136,961 248,704
------------------------------------ ------------------------------------ -------------------------------
Total Wholly Owned 9,143,598 8,568,756 93.71% 3,391,706 3,041,481 89.67% 224,617 350,225 574,842
==================================== ==================================== ===============================
Joint Ventures:
Ontario Mills 1,471,096 1,441,011 97.95% 509,569 479,484 94.10% 0 30,085 30,085
Grapevine Mills 1,500,470 1,464,845 97.63% 543,397 507,772 93.44% 0 35,625 35,625
Arizona Mills 1,233,884 1,205,890 97.73% 533,153 505,159 94.75% 0 27,994 27,994
Concord Mills 1,235,838 1,096,988 88.76% 565,400 426,550 75.44% 0 138,850 138,850
Katy Mills 1,159,821 1,058,211 91.24% 563,828 462,218 81.98% 0 101,610 101,610
The Block at Orange 644,652 607,432 94.23% 284,951 247,731 86.94% 0 37,220 37,220
The Oasis at Sawgrass 290,063 273,739 94.37% 155,203 138,879 89.48% 0 16,324 16,324
------------------------------------ ------------------------------------ -------------------------------
Total Joint Ventures 7,535,824 7,148,116 94.86% 3,155,501 2,767,793 87.71% 0 387,708 387,708
==================================== ==================================== ===============================
Total Mills 13,814,450 13,137,824 95.10% 5,405,065 4,841,313 89.57% 112,874 563,752 676,626
==================================== ==================================== ===============================
Total Wholly Owned
and Joint Venture 16,679,422 15,716,872 94.23% 6,547,207 5,809,274 88.73% 224,617 737,933 962,550
==================================== ==================================== ===============================
</TABLE>
(1) Includes 963,173 square feet of GLA owned by certain store tenants as
follows: Potomac Mills-80,000 square feet of GLA; Franklin Mills-209,612
square feet of GLA; Sawgrass Mills-281,774 square feet of GLA; Gurnee
Mills-250,806 square feet of GLA; Liberty Plaza- 13,741 square feet of
GLA; West Falls Church- 2,240 square feet of GLA, and Ontario
Mills-125,000 square feet of GLA. A ground lease at Franklin Mills of
152,370 square feet and at Ontario Mills of 16,595 square feet are also
included.
(2) Anchor stores include all stores occupying more than 20,000 square feet.
(3) GLA occupied is defined as follows: (i) all space leased and for which
rent is being paid as of December 1, 1999, excluding tenants with leases
that have a term of less than 1 year plus (ii) GLA owned by certain store
tenants.
16
<PAGE> 14
THE MILLS CORPORATION
LEASE EXPIRATION SCHEDULE (3)
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 December
31, 1999 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 (1) - - $ - $ - - - $ - $ -
Majors (1) 2 83,533 626,498 7.50 2 67,052 602,846 8.99
Specialty 26 66,678 1,706,556 25.59 27 69,344 1,850,960 26.69
Food Court 5 3,898 240,855 61.79 3 2,484 153,506 61.80
----------------------------------------- ----------------------------------------
33 154,109 $ 2,573,909 $ 16.70 32 138,880 $ 2,607,312 $ 18.77
Franklin Mills:
Anchors (1) - - $ - $ - 1 70,701 $ 484,302 $ 6.85
Majors (1) - - - - 1 25,127 178,402 7.10
Specialty 24 87,924 1,827,158 20.78 37 107,409 2,335,638 21.75
Food Court 3 2,870 118,310 41.22 2 1,000 40,990 40.99
----------------------------------------- ----------------------------------------
27 90,794 $ 1,945,468 $ 21.43 41 204,237 $ 3,039,332 $ 14.88
Sawgrass Mills:
Anchors (1,2) 1 78,619 $ 255,512 $ 3.25 2 147,915 $ 1,101,435 $ 7.45
Majors (1) 1 20,189 240,000 11.89 - - - -
Specialty 49 159,647 3,786,418 23.72 47 164,740 3,941,804 23.93
Food Court 22 18,536 1,036,516 55.92 4 3,124 176,752 56.58
----------------------------------------- ----------------------------------------
73 276,991 $ 5,318,446 $ 19.20 53 315,779 $ 5,219,991 $ 16.53
Gurnee Mills:
Anchors (1) - - $ - $ - 3 231,271 $ 1,381,540 $ 5.97
Majors (1) - - - - 1 40,752 289,339 7.10
Specialty 21 66,071 1,211,857 18.34 53 174,782 3,569,870 20.42
Food Court 1 657 24,309 37.00 14 10,061 572,738 56.93
----------------------------------------- ----------------------------------------
22 66,728 $ 1,236,166 $ 18.53 71 456,866 $ 5,813,487 $ 12.72
Total Mills w/o Joint Ventures:
Anchors (1) 1 78,619 $ 255,512 $ 3.25 6 449,887 $ 2,967,277 $ 6.60
Majors (1) 3 103,722 866,498 8.35 4 132,931 1,070,587 8.05
Specialty 120 380,320 8,531,989 22.43 164 516,275 11,698,272 22.66
Food Court 31 25,961 1,419,990 54.70 23 16,669 943,986 56.63
----------------------------------------- ----------------------------------------
155 588,622 $ 11,073,989 $ 18.81 197 1,115,762 $16,680,122 $ 14.95
========================================= ========================================
</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 (1) - - $ - $ - 5 530,633 $ 3,040,838 $ 5.73
Majors (1) - - - - 8 239,339 2,211,385 9.24
Specialty 32 121,924 2,592,939 21.27 93 326,139 8,426,478 25.84
Food Court 3 1,859 127,485 68.58 3 1,944 119,455 61.45
------------------------------------------- ---------------------------------------------
35 123,783 $ 2,720,424 $ 21.98 109 1,098,055 $ 13,798,156 $ 12.57
Franklin Mills:
Anchors (1) - - $ - $ - 4 357,592 $ 3,089,629 $ 8.64
Majors (1) 1 30,237 257,015 8.50 7 229,641 2,438,917 10.62
Specialty 26 83,912 1,808,558 21.55 55 234,472 4,716,333 20.11
Food Court 3 2,512 74,660 29.72 3 1,714 78,676 45.90
------------------------------------------- ---------------------------------------------
30 116,661 $ 2,140,233 $ 18.35 69 823,419 $ 10,323,555 $ 12.54
Sawgrass Mills:
Anchors (1,2) - - $ - $ - 5 432,246 $ 2,888,695 $ 6.68
Majors (1) 2 42,657 365,491 8.57 5 176,653 2,273,629 12.87
Specialty 28 72,411 2,193,327 30.29 65 222,060 6,382,088 28.74
Food Court 2 1,852 87,602 47.30 1 2,960 37,148 12.55
------------------------------------------- ---------------------------------------------
32 116,920 $ 2,646,420 $ 22.63 76 833,919 $ 11,581,560 $ 13.89
Gurnee Mills:
Anchors (1) 1 61,265 $ 495,000 $ 8.08 3 298,419 $ 1,449,681 $ 4.86
Majors (1) 1 33,627 252,202 7.50 5 160,506 1,827,120 11.38
Specialty 24 73,363 1,553,646 21.18 59 230,367 4,754,317 20.64
Food Court 5 3,611 228,158 63.18 6 3,759 175,055 46.57
------------------------------------------- ---------------------------------------------
31 171,866 $ 2,529,006 $ 14.71 73 693,051 $ 8,206,173 $ 11.84
Total Mills w/o Joint Ventures:
Anchors (1) 1 61,265 $ 495,000 $ 8.08 17 1,618,890 $ 10,468,843 $ 6.47
Majors (1) 4 106,521 874,708 8.21 25 806,139 8,751,051 10.86
Specialty 110 351,610 8,148,470 23.17 272 1,013,038 24,279,216 23.97
Food Court 13 9,834 517,905 52.66 13 10,377 410,334 39.54
----------------------------------------- ----------------------------------------------
128 529,230 $ 10,036,083 $ 18.96 327 3,448,444 $ 43,909,444 $ 12.73
=========================================== =============================================
</TABLE>
<TABLE>
<CAPTION>
No. Of Total
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- ---------- ---
<S> <C> <C> <C> <C>
Potomac Mills:
Anchors (1) 5 530,633 $ 3,040,838 $ 5.73
Majors (1) 12 389,924 3,440,729 8.82
Specialty 178 584,085 14,576,933 24.96
Food Court 14 10,185 641,301 62.97
--------------------------------------------
209 1,514,827 $ 21,699,801 $ 14.32
Franklin Mills:
Anchors (1) 5 428,293 $ 3,573,931 $ 8.34
Majors (1) 9 285,005 2,874,334 10.09
Specialty 142 513,717 10,687,687 20.80
Food Court 11 8,096 312,636 38.62
--------------------------------------------
167 1,235,111 $ 17,448,588 $ 14.13
Sawgrass Mills:
Anchors (1,2) 8 658,780 $ 4,245,642 $ 6.44
Majors (1) 8 239,499 2,879,120 12.02
Specialty 189 618,858 16,303,637 26.34
Food Court 29 26,472 1,338,018 50.54
--------------------------------------------
234 1,543,609 $ 24,766,417 $ 16.04
Gurnee Mills:
Anchors (1) 7 590,955 $ 3,326,221 $ 5.63
Majors (1) 7 234,885 2,368,661 10.08
Specialty 157 544,583 11,089,690 20.36
Food Court 26 18,088 1,000,260 55.30
--------------------------------------------
197 1,388,511 $ 17,784,832 $ 12.81
Total Mills w/o Joint Ventures:
Anchors (1) 25 2,208,661 $ 14,186,632 $ 6.42
Majors (1) 36 1,149,313 11,562,844 10.06
Specialty 666 2,261,243 52,657,947 23.29
Food Court 80 62,841 3,292,215 52.39
--------------------------------------------
807 5,682,058 $ 81,699,638 $ 14.38
============================================
</TABLE>
(1) 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..
(2) For lease expiration purposes, Sawgrass Mills includes 59,480 square feet
of gross leaseable area that is now part of Sawgrass Mills Phase III (The
Oasis), since the rent associated with the square footage is assigned to
Sawgrass Mills due to project loan requirements.
(3) 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.
17
<PAGE> 15
THE MILLS CORPORATION
LEASE EXPIRATION SCHEDULE (3)
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 December
31, 1999 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 (1) - - $ - $ - - - $ - $ -
Majors (1) - - - - - - - -
Specialty 6 9,872 306,440 31.04 47 199,801 3,895,178 19.50
Food Court - - - - - - - -
------------------------------------------------ ------------------------------------------------
6 9,872 $ 306,440 $ 31.04 47 199,801 $ 3,895,178 $ 19.50
Grapevine Mills:
Anchors (1) - - $ - $ - - - $ - $ -
Majors (1) - - - - - - - -
Specialty 8 16,419 382,112 23.27 11 26,709 627,739 23.50
Food Court - - - - - - - -
------------------------------------------------ ------------------------------------------------
8 16,419 $ 382,112 $ 23.27 11 26,709 $ 627,739 $ 23.50
Arizona Mills:
Anchors (1) - - $ - $ - - - $ - $ -
Majors (1) - - - - - - - -
Specialty 6 18,768 505,145 26.92 8 17,212 444,141 25.80
Food Court - - - - - - - -
------------------------------------------------ ------------------------------------------------
6 18,768 $ 505,145 $ 26.92 8 17,212 $ 444,141 $ 25.80
The Oasis at Sawgrass
Anchors (1,2) - - $ - $ - - - $ - $ -
Majors (1) - - - - - - - -
Specialty - - - - - - - -
Food Court - - - - - - - -
------------------------------------------------ ------------------------------------------------
- - $ - $ - - - $ - $ -
Concord Mills
Anchors (1) - - $ - $ - - - $ - $ -
Majors (1) - - - - - - - -
Specialty 2 12,107 352,710 29.13 1 2,658 58,476 22.00
Food Court - - - - - - - -
------------------------------------------------ ------------------------------------------------
2 12,107 $ 352,710 $ 29.13 1 2,658 $ 58,476 $ 22.00
<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 (1) - - $ - $ - 4 286,023 $ 1,883,132 $ 6.58
Majors (1) - - - - 18 550,504 6,594,169 11.98
Specialty 24 70,772 1,716,121 24.25 65 187,311 4,878,152 26.04
Food Court - - - - 3 11,728 594,165 50.66
------------------------------------------------ ---------------------------------------------------
24 70,772 $ 1,716,121 $ 24.25 90 1,035,566 $ 13,949,618 $ 13.47
Grapevine Mills:
Anchors (1) - - $ - $ - 4 397,042 $ 4,358,510 $ 10.98
Majors (1) 1 23,329 279,948 12.00 12 359,639 4,758,348 13.23
Specialty 55 182,280 4,007,068 21.98 77 272,564 6,175,464 22.66
Food Court - - - - 1 9,800 588,000 60.00
------------------------------------------------ ---------------------------------------------------
56 205,609 $ 4,287,016 $ 20.85 94 1,039,045 $ 15,880,322 $ 15.28
Arizona Mills:
Anchors (1) - - $ - $ - 5 382,513 $ 3,163,114 $ 8.27
Majors (1) - - - - 11 318,218 4,385,067 13.78
Specialty 58 198,373 4,221,874 21.28 65 256,882 5,986,321 23.30
Food Court - - - - 1 13,924 832,502 59.79
------------------------------------------------ ---------------------------------------------------
58 198,373 $ 4,221,874 $ 21.28 82 971,537 $ 14,367,004 $ 14.79
The Oasis at Sawgrass
Anchors (1,2) - - $ - $ - 1 32,802 $ 615,322 $ 18.76
Majors (1) - - - - 2 42,578 882,869 20.74
Specialty 2 3,132 179,705 57.38 30 135,747 4,269,151 31.45
Food Court - - - - - - - -
------------------------------------------------ ---------------------------------------------------
2 3,132 $ 179,705 $ 57.38 33 211,127 $ 5,767,342 $ 27.32
Concord Mills
Anchors (1) - - $ - $ - 5 433,278 $ 4,714,862 $ 10.88
Majors (1) - - - - 10 237,160 3,038,151 12.81
Specialty 2 2,946 92,894 31.53 109 398,009 9,597,897 24.11
Food Court - - - - 1 10,830 588,000 54.29
------------------------------------------------ ---------------------------------------------------
2 2,946 $ 92,894 $ 31.53 125 1,079,277 $ 17,938,910 $ 16.62
<CAPTION>
No. of Total
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Ontario Mills:
Anchors (1) 4 286,023 $ 1,883,132 $ 6.58
Majors (1) 18 550,504 6,594,169 11.98
Specialty 142 467,756 10,795,891 23.08
Food Court 3 11,728 594,165 50.66
-----------------------------------------------------
167 1,316,011 $ 19,867,357 $ 15.10
Grapevine Mills:
Anchors (1) 4 397,042 $ 4,358,510 $ 10.98
Majors (1) 13 382,968 5,038,296 13.16
Specialty 151 497,972 11,192,383 22.48
Food Court 1 9,800 588,000 60.00
-----------------------------------------------------
169 1,287,782 $ 21,177,189 $ 16.44
Arizona Mills:
Anchors (1) 5 382,513 $ 3,163,114 $ 8.27
Majors (1) 11 318,218 4,385,067 13.78
Specialty 137 491,235 11,157,481 22.71
Food Court 1 13,924 832,502 59.79
-----------------------------------------------------
154 1,205,890 $ 19,538,164 $ 16.20
The Oasis at Sawgrass
Anchors (1,2) 1 32,802 $ 615,322 $ 18.76
Majors (1) 2 42,578 882,869 20.74
Specialty 32 138,879 4,448,856 32.03
Food Court - - - -
-----------------------------------------------------
35 214,259 $ 5,947,047 $ 27.76
Concord Mills
Anchors (1) 5 433,278 $ 4,714,862 $ 10.88
Majors (1) 10 237,160 3,038,151 12.81
Specialty 114 415,720 10,101,977 24.30
Food Court 1 10,830 588,000 54.29
-----------------------------------------------------
130 1,096,988 $ 18,442,990 $ 16.81
</TABLE>
(1) 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..
(2) For lease expiration purposes, The Oasis excludes 59,480 square feet of
gross leaseable area, since the rent associated with the square footage is
assigned to Sawgrass Mills due to project loan requirements.
(3) 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.
<PAGE> 16
THE MILLS CORPORATION
LEASE EXPIRATION SCHEDULE (3)
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 December
31, 1999 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
-------- ----- ---------- --- -------- ----- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Katy Mills
Anchors (1) - - $ - $ - - - $ -
Majors (1) - - - - - - -
Specialty 1 1,582 36,386 23.00 1 3,327 66,540
Food Court - - - - - - -
--------------------------------------------------------- -----------------------------------------------------
1 1,582 $ 36,386 $23.00 1 3,327 $ 66,540
Total Mills with
Joint Ventures:
Anchors (1) 1 78,619 $ 255,512 $ 3.25 6 449,887 $ 2,967,277
Majors (1) 3 103,722 866,498 8.35 4 132,931 1,070,587
Specialty 143 439,068 10,114,782 23.04 232 765,982 16,790,346
Food Court 31 25,961 1,419,990 54.70 23 16,669 943,986
--------------------------------------------------------- -----------------------------------------------------
178 647,370 $12,656,782 $19.55 265 1,365,469 $21,772,196
========================================================= =====================================================
The Block at Orange
Anchors (1) - - $ - $ - - - $ -
Majors (1) - - - - - - -
Specialty 2 826 72,210 87.42 6 5,946 227,569
Food Court - - - - - - -
--------------------------------------------------------- -----------------------------------------------------
2 826 $ 72,210 $87.42 6 5,946 $ 227,569
Community Centers:
Anchors (1) - - $ - $ - - - $ -
Majors (1) 1 21,007 283,595 13.50 1 24,300 133,650
Specialty 28 118,258 1,292,259 10.93 47 169,173 2,261,380
Food Court - - - - - - -
--------------------------------------------------------- -----------------------------------------------------
29 139,265 $ 1,575,854 $11.32 48 193,473 $ 2,395,030
========================================================= =====================================================
Totals
Anchors (1) 1 78,619 $ 255,512 $ 3.25 6 449,887 $ 2,967,277
Majors (1) 4 124,729 1,150,093 9.22 5 157,231 1,204,237
Specialty 173 558,152 11,479,251 20.57 285 941,101 19,279,295
Food Court 31 25,961 1,419,990 54.70 23 16,669 943,986
--------------------------------------------------------- -----------------------------------------------------
209 787,461 $14,304,846 $18.17 319 1,564,888 $24,394,795
========================================================= =====================================================
<CAPTION>
No. of 2002 No. of
Leases Annualized Leases
psf Expiring Sq Ft Min. Rent psf Expiring Sq Ft
--- -------- ----- ---------- --- -------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Katy Mills
Anchors (1) $ - - - $ - $ - 3 322,444
Majors (1) - - - - - 10 273,549
Specialty 20.00 5 7,017 265,154 37.79 122 440,209
Food Court - - - - - 1 10,083
--------- ------------------------------------------------------------------- --------------------------------
$20.00 5 7,017 $ 265,154 $37.79 136 1,046,285
Total Mills with
Joint Ventures:
Anchors (1) $ 6.60 1 61,265 $ 495,000 $ 8.08 39 3,472,992
Majors (1) 8.05 5 129,850 1,154,656 8.89 88 2,587,787
Specialty 21.92 256 816,130 18,631,286 22.83 740 2,703,760
Food Court 56.63 13 9,834 517,905 52.66 20 66,742
--------- ----------------------------------------------------------------------------------------------------
$15.94 275 1,017,079 $20,798,847 $20.45 887 8,831,281
========= =================================================================== ================================
The Block at Orange
Anchors (1) $ - - - $ - $ - 2 172,785
Majors (1) - - - - - 7 186,916
Specialty 38.27 5 7,495 224,909 30.01 62 220,526
Food Court - - - - - 10 12,938
---------------------------------------------------------------------------------------------------------------
$38.27 5 7,495 $ 224,909 $30.01 81 593,165
Community Centers:
Anchors (1) $ - - - $ - $ - 7 596,017
Majors (1) 5.50 2 59,300 245,450 4.14 16 528,126
Specialty 13.37 46 132,654 1,923,505 14.50 73 306,800
Food Court - - - - - - -
--------- ----------------------------------------------------------------------------------------------------
$12.38 48 191,954 $ 2,168,955 $11.30 96 1,430,943
========= ====================================================================================================
Totals
Anchors (1) $ 6.60 1 61,265 $ 495,000 $ 8.08 48 4,241,794
Majors (1) 7.66 7 189,150 1,400,106 7.40 111 3,302,829
Specialty 20.49 307 956,279 20,779,700 21.73 875 3,231,086
Food Court 56.63 13 9,834 517,905 52.66 30 79,680
------------------------------------------------------------------------------ --------------------------------
$15.59 328 1,216,528 $23,192,711 $19.06 1,064 10,855,389
========= =================================================================== ================================
<CAPTION>
After 2002 No. of Total
Annualized Leases Annualized
Min. Rent psf Expiring Sq Ft Min. Rent psf
---------- --- -------- ----- ---------- ---
<S> <C> <C> <C> <C> <C> <C>
Katy Mills
Anchors (1) $ 2,893,633 $ 8.97 3 322,444 $ 2,893,633 $8.97
Majors (1) 4,346,639 15.89 10 273,549 4,346,639 15.89
Specialty 10,388,206 23.60 129 452,135 10,756,286 23.79
Food Court 655,395 65.00 1 10,083 655,395 65.00
-------------------------- -------------------------------------------------------------
$ 18,283,873 $17.48 143 1,058,211 $ 18,651,953 $17.63
Total Mills with
Joint Ventures:
Anchors (1) $28,097,416 $ 8.09 47 4,062,763 $ 31,815,205 $7.83
Majors (1) 32,756,294 12.66 100 2,954,290 35,848,035 12.13
Specialty 65,574,407 24.25 1,371 4,724,940 111,110,821 23.52
Food Court 3,668,396 54.96 87 119,206 6,550,277 54.95
-------------------------- -------------------------------------------------------------
$130,096,513 $14.73 1,605 11,861,199 $185,324,338 $15.62
========================== =============================================================
The Block at Orange
Anchors (1) $ 3,473,326 $20.10 2 172,785 $ 3,473,326 $20.10
Majors (1) 2,839,831 15.19 7 186,916 2,839,831 15.19
Specialty 6,603,433 29.94 75 234,793 7,128,121 30.36
Food Court 958,121 74.05 10 12,938 958,121 74.05
-------------------------- -------------------------------------------------------------
$ 13,874,711 $23.39 94 607,432 $ 14,399,399 $23.71
Community Centers:
Anchors (1) $ 3,752,616 $ 6.30 7 596,017 $ 3,752,616 $ 6.30
Majors (1) 3,895,320 7.38 20 632,733 4,558,015 7.20
Specialty 4,264,046 13.90 194 726,885 9,741,190 13.40
Food Court - - - - - -
-------------------------- -------------------------------------------------------------
$ 11,911,982 $ 8.32 221 1,955,635 $ 18,051,821 $ 9.23
========================== =============================================================
Totals
Anchors (1) $ 35,323,358 $ 8.33 56 4,831,565 $ 39,041,147 $ 8.08
Majors (1) 39,491,445 11.96 127 3,773,939 43,245,881 11.46
Specialty 76,441,886 23.66 1,640 5,686,618 127,980,132 22.51
Food Court 4,626,517 58.06 97 132,144 7,508,398 56.82
-------------------------- -------------------------------------------------------------
$155,883,206 $14.36 1,920 14,424,266 $217,775,558 $15.10
========================== =============================================================
</TABLE>
(1) 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..
(2) For lease expiration purposes, The Oasis excludes 59,480 square feet of
gross leaseable area, since the rent associated with the square footage is
assigned to Sawgrass Mills due to project loan requirements.
(3) 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.
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 twelve months ended
December 31, 1999, 1998, 1997, 1996 and 1995.
<TABLE>
<CAPTION>
ANCHOR STORES
----------------------------------------------------------------------------------------------
STORE OPENINGS STORE CLOSINGS RELEASING
DURING YEAR DURING YEAR SPREAD (2)
------------------------------ ------------------------------ --------------------------
AVERAGE AVERAGE
BASE RENT TOTAL BASE RENT TOTAL
PER SQ. FT. SQ. FT. PER SQ. FT. SQ. FT.
--------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
POTOMAC MILLS 1999 $ 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%)
1995 8.74 20,048 8.61 78,572 0.13 1.51%
FRANKLIN MILLS 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%
1995 - - - - - -
GURNEE MILLS 1999 $ 8.60 55,970 (3) $ - - $ N/A N/A
1998 7.10 40,752 6.45 40,752 0.65 10.08%
1997 4.92 184,259 (3) - - N/A N/A
1996 30.00 20,000 - - N/A N/A
1995 - - 8.08 74,218 N/A N/A
SAWGRASS MILLS 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%
1995 12.80 25,110 - - N/A N/A
ONTARIO MILLS 1999 $ 11.82 135,707 (4) $ 6.33 16,595 $ 5.49 86.73%
1998 - - - - - -
GRAPEVINE MILLS 1999 $ 8.78 82,000 (5) $ - - $ N/A N/A
ARIZONA MILLS 1999 $ - - $ - - $ - -
TOTAL MILLS 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%
1995 11.00 45,158 8.36 152,790 2.64 31.58%
<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> <C>
POTOMAC MILLS 1999 $ 26.70 73,060 $ 23.42 76,881 $ 3.29 14.03%
1998 27.68 70,769 27.91 62,034 (0.23) (0.79%)
1997 22.78 128,964 21.77 127,191 1.00 4.61%
1996 23.64 83.594 21.80 66,607 1.84 8.44%
1995 24.91 49,135 18.89 82,912 6.02 31.87%
FRANKLIN MILLS 1999 $ 21.83 86,646 $ 23.34 113,810 $ (1.50) (6.44%)
1998 19.18 150,869 17.65 113,961 1.53 8.65%
1997 20.16 112,670 19.34 106,202 0.83 4.29%
1996 20.08 73,880 18.61 115,416 1.47 7.90%
1995 19.49 46,453 21.90 77,713 (2.41) (11.00%)
GURNEE MILLS 1999 $ 22.74 65,922 $ 19.92 95,997 $ 2.82 14.16%
1998 21.07 99,886 18.59 88,220 2.48 13.35%
1997 20.75 101,771 19.24 104,086 1.51 7.87%
1996 19.01 74,447 18.63 71,457 0.38 2.04%
1995 16.95 48,988 17.79 55,864 (0.84) (4.72%)
SAWGRASS MILLS 1999 $ 39.16 31,982 $ 31.15 55,470 $ 8.01 25.71%
1998 32.52 48,268 26.32 49,373 6.20 23.54%
1997 30.00 72,188 24.57 64,626 5.42 22.08%
1996 29.63 58,904 22.24 57,770 7.39 33.23%
1995 24.58 173,744 23.11 55,108 1.47 6.36%
ONTARIO MILLS 1999 $ 29.65 30,580 $ 27.97 39,224 $ 1.67 5.97%
1998 27.34 35,616 27.64 26,400 (0.30) (1.08%)
GRAPEVINE MILLS 1999 $ 26.81 9,195 $ 27.27 30,776 $ (0.46) (1.70%)
ARIZONA MILLS 1999 $ 26.83 16,566 $ 27.49 22,020 $ (0.66) (2.40%)
TOTAL MILLS 1999 $ 26.09 318,864 $ 24.50 454,633 $ 1.59 6.49%
1998 23.43 405,408 21.80 339,988 1.63 7.49%
1997 22.83 415,593 20.92 402,105 1.90 9.10%
1996 22.76 290,825 19.97 311,250 2.79 13.97%
1995 22.71 318,320 20.38 271,597 2.33 11.43%
</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 is excluded.
(2) The releasing spread is calculated as the difference between per square
foot openings and per square foot closings for the twelve months ended
December 31, 1999, 1998, 1997, 1996 and 1995. Openings and closings include
renewals but exclude exercised options.
(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. The Bass Pro lease is expected to provide
substantial percentage rent in addition to the base rent stated above. 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) Consist 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 each of the last five years, certain
information regarding operating trends with respect to the existing Mills and
The Block at Orange.
<TABLE>
<CAPTION>
MINIMUM RENT PLUS PERCENTAGE RENTS
-----------------------------------------------------------------------------
AVERAGE TOTAL STORES ANCHOR STORES SPECIALTY STORES
PERCENT ---------------------------- --------------------------- ------------------------------
LEASED (1) TOTAL PER SQ. FT. TOTAL PER SQ. FT. TOTAL PER SQ. FT.
---------- ------------- ------------ ------------ ------------ ---------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
POTOMAC MILLS
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
1995 96 19,905,334 13.30 5,839,132 6.57 14,066,202 23.14
FRANKLIN MILLS
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
1995 95 16,837,997 11.33 5,401,107 5.69 11,436,890 21.29
SAWGRASS MILLS
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
1995 95 22,738,214 15.66 6,670,486 7.68 16,067,728 27.58
GURNEE MILLS
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
1995 91 15,089,531 12.89 3,898,381 6.36 11,191,150 20.08
ONTARIO MILLS
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
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
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
TOTAL - MILLS
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
1995 95 74,571,076 13.31 21,809,106 6.57 52,761,970 23.09
THE BLOCK AT ORANGE
1999 93% 16,282,327 27.10 6,715,008 18.67 9,567,319 39.67
TOTAL (INCL THE BLOCK)
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
$2,423,346 for 1999, $2,205,661 for 1998, $2,066,991 for 1997, and
$2,088,000 for 1996. 1999 includes an estimate of annualized
percentage rents. The Oasis at Sawgrass, Concord Mills and Katy Mills
are excluded, since the projects opened in the second quarter, third
quarter and fourth quarter of 1999, respectively.
21
<PAGE> 19
THE MILLS CORPORATION
SUMMARY OF OUTSTANDING CONSOLIDATED INDEBTEDNESS
(DOLLARS IN THOUSANDS)
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Principal
Balance Annual Interest Maturity
(000's) Term Rate Date
------- ---- ---- ----
<S> <C> <C> <C> <C>
Potomac Mills/Gurnee Mills:
Tranche A $202,704 Fixed 6.905% 12/17/2026 (1)
Tranche B 27,000 Fixed 7.021% 12/17/2026 (1)
Tranche C 15,000 Fixed 7.235% 12/17/2026 (1)
Tranche D 30,000 Fixed 7.701% 12/17/2026 (1)
Franklin Mills and Liberty Plaza
Tranche A 107,502 Fixed 7.882% 6/1/2027 (3)
Mortgage Loan 19,560 Fixed 7.440% 6/1/2027 (3)
Mortgage Loan 12,805 Fixed 6.220% 6/1/2027 (3)
Sawgrass Mills:
Tranche A 115,000 Fixed 6.450% 1/18/2001
Tranche B 10,000 Variable with cap 85 bp over Libor (6) 1/18/2001
Tranche C 20,000 Variable with cap 230 bp overLibor (6) 1/18/2001
Sawgrass Mills - Phase II 18,000 Fixed 6.970% 1/18/2001
Ten Community Centers 111,662 Fixed 7.300% 2/1/2029
Concord Mills Residual III 8,956 Variable 200 bp over Libor 12/31/2000
----------
Total Property Mortgages 698,189
----------
Sawgrass Mills Mezzanine Loan 57,000 Variable 475 bp over Libor 10/1/2000
Corporate Misc 354 Fixed 8.250% 10/31/2000
Corporate Misc 2,400 Fixed 6.200% 7/15/2000
Corporate Line of Credit 100,000 Variable 150 bp over Libor 4/1/2000
Corporate Misc 15,000 Variable 125 bp over Libor 1/18/2001
Sawgrass Residual 4,330 Variable 165 bp over Libor 1/18/2001
==========
Total $877,273
==========
</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: $13,996 (2) 0%
Tranche A 1,896 (2) 0%
Tranche B 1,085 (2) 0%
Tranche C 2,310 (2) 0%
Tranche D 0%
Franklin Mills and Liberty Plaza 8,473 (4) 0%
Tranche A 1,455 (4) 0%
Mortgage Loan 796
Mortgage Loan
Sawgrass Mills:
7,418 (5) 0%
Tranche A 667 (7) (5) 0%
Tranche B 1,625 (7) (5) 0%
Tranche C 1,255 (5) 0% (14)
Sawgrass Mills - Phase II 8,151 (15) 0%
Ten Community Centers 701 (16) 100%
Concord Mills Residual III --------
49,829
Total Property Mortgages --------
6,026 (7) (5) 0%
Sawgrass Mills Mezzanine Loan 29 (11) 0%
Corporate Misc 149 (11) 0%
Corporate Misc 7,323 (7) (8),(10) 100%
Corporate Line of Credit 1,061 (7) (13) 100%
Corporate Misc 331 (7) (12) 0%
Sawgrass Residual ========
$64,749
Total ========
</TABLE>
(1) This indebtedness is a 30 year amortizing loan with an anticipated balloon
repayment on December 18, 2003. In the event the mortgage loan is not
repaid by the anticipated balloon repayment date, the annual interest rate
for each tranche will be increased by 2% per annum in excess of the stated
interest rate. In addition, excess cash flow available after payment of the
increased interest rate and scheduled amortization will be used to reduce
the principal balance of the loan. Principal repayments are based on the
scheduled amortization, assuming a 7% mortgage interest rate, over a 30
year period, with the monthly amortization payments being applied
sequentially, beginning with Tranche A to reduce the principal balance.
(2) Optional payments of principal are not permitted prior to December 17,
1999. After such date, prepayments, in whole or in part, are permitted upon
at least 15 days notice. In addition, the Company is required to pay a
prepayment penalty equal to the greater of (i) 1% of the remaining
principal balance or (ii) a yield preservation payment. Generally, yield
preservation payments are intended to compensate the lender for the total
amount of interest it would have earned on the indebtedness but for the
repayment, less the amount of interest that the lender could earn if it
invested the repayment amount in United States Treasury obligations or
other similar securities from the date of the repayment through the
maturity date of the indebtedness.
(3) This indebtedness is a 30 year amortizing loan with an anticipated balloon
repayment on May 5, 2007. In the event the mortgage loan is not repaid by
the anticipated balloon repayment date, the annual interest rate will be
increased by 5% per annum in excess of the stated interest rate. In
addition, excess cash flow available after payment of the increased
interest rate and scheduled amortization will be used to reduce the
principal balance of the loan.
(4) This indebtedness may be prepaid, without a prepayment penalty, beginning
180 days prior to May 5, 2007. Prior to that date, there is no right to
prepay the indebtedness, except that $12.5 million of the principal
balance, which has been allocated to the Liberty Plaza shopping center, may
be defeased through the establishment of defeasance collateral (which may
include government or agency securities that have the full faith and credit
of the United States government).
(5) On January 31, 2000, the loan was repaid with proceeds of a new $285,000
permanent loan. The new indebtedness is a non-amortizing loan with an
anticipated balloon payment date of June 18, 2001. The loan bears interest
at a variable rate of 275 bp over Libor.
(6) The loan agreement provides for a cap on LIBOR at 14% for the life of the
loan.
(7) Calculated using 30-day LIBOR at 5.8225%, which was the rate at December
31, 1999.
(8) Prepayable, in whole or in part, at any time without prepayment penalty.
(9) This indebtedness may be prepaid, in whole or in part, upon 30 days notice
to the lender and the payment of a prepayment penalty. The penalty
percentage due on prepayment is 1.5% of the outstanding principal. During
the last three months of its term, the indebtedness may be prepaid without
penalty.
(10) The total commitment under the Line of Credit is $100,000. Funds are
available subject to certain performance measures and restrictive
covenants. This loan bears interest at a variable rate ranging from 100 bp
to 165 bp over Libor subject to certain leverage tests (Libor + 150 bp at
12/31/99). The line of credit matures April 1, 2000 with a one-year option
to extend.
(11) Primarily corporate debt with maturities under one year. Prepayable, in
whole or in part, at any time without prepayment penalty.
(12) Prepayable, in whole or in part, at any time, upon 3 days prior notice to
lender without prepayment penalty.
(13) Prepayable, in whole or in part, at any time, upon 5 days prior notice to
lender without prepayment penalty.
(14) Principal is guaranteed by the Company if the Phase II project fails to
achieve a DSC (debt service coverage) ratio of 1.35 and a debt yield of
12.5%. As of December 31, 1999, the guaranteed amount was 0%.
(15) The indebtedness is a 30 year amortizing loan with an anticipated balloon
repayment date of February 1, 2009. Interest is payable at a fixed rate of
7.30%. The principal is guaranteed by the Company. In the event the
mortgage is not repaid by the anticipated balloon repayment date, the
interest rate will be the greater of (I) the loan interest rate plus 2% or
(ii) the yield calculated by the linear interpolation of the yields of
noncallable United States Treasury obligations with terms (one longer and
one shorter) most nearly approximating the period from such date of
determination to the anticipated repayment date.
(16) The total commitment under this loan is $9,000. Funds are available subject
to certain performance measures and restrictive covenants. Interest accrues
at 200 bp over LIBOR. The indebtedness matures on December 31, 2000.
22
<PAGE> 20
THE MILLS CORPORATION
SUMMARY OF OUTSTANDING UNCONSOLIDATED INDEBTEDNESS
(DOLLARS IN THOUSANDS)
AS OF DECEMBER 31, 1999
<TABLE>
<CAPTION>
Principal
Balance Total Annual Interest Maturity
(000's) Commitment Term Rate Date
------- ---------- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Arizona Mills $142,214 $142,214 Variable 130 bp over Libor (4),(5) 2/1/2002
Grapevine Mills 155,000 155,000 Fixed 6.465% 9/1/2032 (8)
Ontario Mills 143,594 145,000 Fixed 6.750% 12/1/2028 (9)
City Block at Orange 127,495 136,000 Variable 135 bp over Libor (6) 1/22/2002
Sawgrass Phase III 44,000 44,000 Variable 165 bp over Libor (7) 1/18/2001
Sawgrass Phase III 1,958 6,500 Variable 275 bp over Libor 1/18/2001
Concord Mills 164,442 199,000 Variable 120 bp over Libor 12/2/2001
Katy Mills 131,286 168,000 Variable 200 bp over Libor 3/31/2002
Opry Mills 21,866 168,000 Variable 200 bp over Libor 10/1/2002
Arundel Mills 10,000 10,000 Variable 165 bp over Libor 12/9/2000
Sugarloaf Mills 6,120 12,000 Variable 350 bp over Libor 12/20/2000
========== ============
Total $947,975 $1,185,714
========== ============
</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> <C>
Arizona Mills $10,129 (1) 9.2% (10)
Grapevine Mills 10,021 (2) 0.0%
Ontario Mills 9,693 (3) 0.0%
City Block at Orange 9,145 (4) (3) 26.7% (11)
Sawgrass Phase III 3,288 (4) (15) 0.0% (12)
Sawgrass Phase III 54 (4) (15) 0.0% (12)
Concord Mills 11,795 (4) (2) 25.0% (13)
Katy Mills 10,270 (4) (15) 100.0% (14)
Opry Mills 1,710 (4) (16) 100.0% (17)
Arundel Mills 747 (18) 100.0% (19)
Sugarloaf Mills 571 (18) 100.0% (20)
==========
Total $67,422
==========
</TABLE>
(1) The indebtedness may be prepaid, in whole or in part, upon 5 business days
notice to the Administrative Agent, provided that (i) an partial prepayment
shall be in principal amount of not less than $1 million and an integral
multiple of $100,000; and (ii) each prepayment under this shall include all
interest accrued on the amount of principal prepaid (and all late charges
and other sums that may be payable) through the date of prepayment.
(2) This indebtedness may be prepaid, in whole or in part, upon 3 business days
notice to the Administrative Agent.
(3) The Company shall have the right to make prepayments of the loan, without
penalty and a late charge, as the case may be following the occurrence of
an Event of Default under any of the Loan Documents), in whole or in part,
upon not less than 5 Business Days prior written notice to Lender. No
prepayment of all or part of the Loan, including any mandatory prepayment
of the Loan made as a result of an acceleration of the Loan or pursuant to
the immediately preceding sentence, shall be permitted unless same is made
together with the payment of all interest accrued on the Loan through the
date of prepayment and an amount equal to all Breakage Costs and
reasonable, out-of-pocket attorneys' fees and disbursements incurred by
Lender and any participants in good faith as a result of the prepayment.
(4) Calculated using 30-day LIBOR at 5.8225%, which was the rate at December
31, 1999.
(5) The loan is a construction facility with a maximum availability of $142.
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 December 31, 1999, the Company's share of the
Guaranteed Amount was reduced from 36.8% to 9.2% according to the above
formula.
(11) Principal is guaranteed by the Company, reduced as follows: (i) as of
closing, the "Guaranteed Amount" was 100% of Loan Amount; (ii) upon
construction completion, grand opening and a Debt Service Coverage ratio of
1.00 the Guaranteed Amount will reduce to $68,000; (iii) upon achieving a
DSC ratio of 1.25 the Guaranteed Amount will reduce to $34,000; (iv) upon
achieving a DSC Ratio of 1.40 the Guaranteed Amount will reduce to 10%; and
(v) upon achieving a DSC Ratio of 1.50 the Guaranteed Amount will reduce to
0%. As of December 31, 1999 the guarantee amount was $34,000.
(12) Principal is guaranteed by the Company, reduced as follows: (i) as of
closing, the "Guaranteed Amount" was 100% of Loan Amount; (ii) upon
achieving a DSC Ratio of 1.35 and a debt yield of 12.5% will reduce to 0%.
As of December 31, 1999, the guarantee amount was 0%.
(13) The loan commitment has a term of three years with two one-year options.
The interest rate will be Libor plus 135 basis points until completion and
occupancy requirements are met. Once achieved, the interest rate will be
Libor plus 120 basis points. The interest rate can be further reduced to
Libor plus 110 basis points when the project achieves a debt service
coverage for three months of 1.35. The new loan is guaranteed severally by
the Company (50%) and Simon Property Group, L.P. (50%) and can be reduced
as follows: (i) as of closing, the "Guaranteed Amount" was 100% of loan
amount; (ii) 50% upon achieving completion and occupancy requirements;
(iii) 35% upon achieving a DSC ratio of 1.20 for three consecutive months;
(iv) 20% upon achieving a DSC ratio of 1.35 for three consecutive months
subsequent to the prior condition. As of December 31, 1999, the guarantee
amount was 25%
(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 December 31, 1999, the guarantee amount
was 100%.
(15) This indebtedness may be prepaid, in whole or in part, upon 5 business days
notice to the Administrative Agent.
(16) The indebtedness may be prepaid, in whole or in part, upon 3 business days
notice to the Administrative Agent, provided that each prepayment under
this loan shall include all interest accrued on the amount of principal
prepaid (and all late charges and other sums that may be payable) through
the date of prepayment.
(17) The loan commitment has a term of three years with a one-year extension
option. The principal is guaranteed by the Company and can be reduced as
follows: (I) as of closing, the "Guaranteed Amount" was 100% of loan
amount; (ii) upon completion of construction, fulfilling certain occupancy
requirements as defined per construction loan agreement and a debt service
coverage ratio of 1.10 the Guaranteed Amount will reduce to 50%.
(18) 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.
(19) Principal is guaranteed severally by the Company and Simon Property Group.
(20) Principal is guaranteed by the Company.
23
<PAGE> 21
THE MILLS CORPORATION
GROSS SALES (1) (2)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
Twelve Months ended December 31, 1999 Twelve Months ended December 31, 1998
----------------------------------------------- --------------------------------------------
Sq Ft Sales psf Sq Ft Sales psf
----- ----- --- ----- ----- ---
<S> <C> <C> <C> <C> <C> <C>
Potomac Mills:
Anchor/Majors 908,839 $ 203,605,964 $ 224 951,043 $ 191,678,102 202
Specialty 589,380 194,162,316 329 580,658 185,618,081 320
Temporary/Kiosk - 4,402,397 - - 5,155,021 -
------------------------------------------------- -----------------------------------------------------
1,498,219 $ 402,170,677 $ 268 1,531,701 $ 382,451,204 $ 250
Franklin Mills:
Anchor/Majors 958,557 $ 161,484,240 $ 168 971,940 $ 155,395,973 $ 160
Specialty 522,365 164,958,255 316 527,403 155,109,858 294
Temporary/Kiosk - 6,502,230 - - 3,496,367 -
------------------------------------------------- -----------------------------------------------------
1,480,922 $ 332,944,725 $ 225 1,499,343 $ 314,002,198 $ 209
Sawgrass Mills:
Anchor/Majors 1,140,813 $ 342,642,918 $ 300 1,174,642 $ 353,258,477 $ 301
Specialty 648,498 282,866,635 436 664,466 297,963,690 448
Temporary/Kiosk - 9,002,205 - - 10,588,716 -
------------------------------------------------- -----------------------------------------------------
1,789,311 $ 634,511,758 $ 355 1,839,108 $ 661,810,883 $ 360
Gurnee Mills:
Anchor/Majors 832,290 $ 139,416,739 $ 168 831,201 $ 141,156,686 $ 170
Specialty 567,505 164,669,598 290 565,887 159,651,566 282
Temporary/Kiosk - 7,067,600 - - 6,515,341 -
------------------------------------------------- -----------------------------------------------------
1,399,795 $ 311,153,937 $ 222 1,397,088 $ 307,323,593 $ 220
Ontario Mills:
Anchor/Majors 871,267 $ 145,908,434 $ 167 823,815 $ 136,055,601 $ 165
Specialty 479,270 173,224,557 361 482,653 166,299,546 345
Temporary/Kiosk - 7,306,868 - - 8,188,974 -
------------------------------------------------- -----------------------------------------------------
1,350,537 $ 326,439,859 $ 242 1,306,468 $ 310,544,121 $ 238
Grapevine Mills:
Anchor/Majors 803,425 $ 172,500,779 $ 215 657,994 $ 117,597,419 $ 179
Specialty 506,035 150,259,271 297 481,255 144,338,088 300
Temporary/Kiosk - 9,030,995 - - 9,710,374 -
------------------------------------------------- -----------------------------------------------------
1,309,460 $ 331,791,045 $ 253 1,139,249 $ 271,645,881 $ 238
Arizona Mills:
Anchor/Majors 674,963 $ 118,027,825 $ 175 669,035 $ 113,812,451 $ 170
Specialty 489,120 150,345,621 307 455,674 137,253,170 301
Temporary/Kiosk - 7,321,984 - - 8,300,350 -
------------------------------------------------- -----------------------------------------------------
1,164,083 $ 275,695,430 $ 237 1,124,709 $ 259,365,971 $ 231
Total Mills
Anchor/Majors 6,190,154 $ 1,283,586,899 $ 207 6,079,670 $ 1,208,954,709 $ 199
Specialty 3,802,173 1,280,486,253 337 3,757,996 1,246,233,999 332
Temporary Kiosk - 50,634,279 - - 51,955,143 -
------------------------------------------------- -----------------------------------------------------
9,992,327 $ 2,614,707,431 $ 262 9,837,666 $ 2,507,143,851 $ 255
================================================= =====================================================
</TABLE>
(1) The Block at Orange, The Oasis at Sawgrass, Concord Mills, and Katy Mills
are excluded from this analysis, since they did not open until November
1998, April 1999, September 1999, and October 1999, respectively, and do
not have twenty-four months of sales data for comparison. The Block at
Orange is the only additional project with at least twelve months of sales
data. The Block at Orange sales of the year ended December 31, 1999, were
$63,274,627 on 357,956 sq. ft. of anchor/major space ($177 per sq. ft.),
$80,930,385 on 239,765 sq. ft. of specialty store space ($338 per sq. ft.)
and $7,208,445 of Temp/Kiosk sales.
(2) Anchor/Major sales include sales from certain anchor tenants that own their
parcels.
24
<PAGE> 22
THE MILLS CORPORATION
COMPARABLE SPECIALTY STORE TENANT SALES
TWELVE MONTHS 1999 VS. TWELVE MONTHS 1998
(IN THOUSANDS)
<TABLE>
<CAPTION>
YTD YTD
Dec. 31, 1999 Dec. 31, 1998 Percentage
Sales Sales Change
----- ----- ------
<S> <C> <C> <C>
Property Name:
- -------------
Potomac Mills $160,980 $157,668 2.1%
Franklin Mills $111,519 $111,130 0.4%
Sawgrass Mills $261,830 $271,528 -3.6%
Gurnee Mills $120,419 $120,181 0.2%
Ontario Mills $139,214 $132,716 4.9%
Grapevine Mills $104,780 $104,726 0.1%
Arizona Mills $92,374 $88,247 4.7%
----------------- ------------------ ----------------
Total $991,116 $986,196 0.5%
================= ================== ================
</TABLE>
Note: Comparable sales presented above are based on tenant reported sales
for the twelve months of 1999 versus the twelve months of 1998 and
include only those tenants that have been in occupancy for the past 24
months. Properties that have less than 24 months of operations have
been excluded.
25
<PAGE> 23
THE MILLS CORPORATION
CAPITAL EXPENDITURES
MILLS AND COMMUNITY CENTERS COMBINED (9)
<TABLE>
<CAPTION>
Twelve Months Ended Year ended December 31,
December 31, 1999 1998 1997
-------------------------- ----------------- ---------------
<S> <C> <C> <C>
RECURRING NON-TENANT CAPITAL EXPENDITURES (1)
Costs $313,462 $1,453,123 $435,742
Per Square Foot (2) 0.03 0.12 0.05
RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $4,594,831 $5,467,329 $5,143,206
Per Square Foot Improved (4) 8.52 7.85 11.90
Per Square Foot (2) 0.38 0.46 0.62
TOTAL RECURRING COSTS
Costs $4,908,293 $6,920,452 $5,578,948
Per Square Foot (2) 0.41 0.58 0.67
NON RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $22,881,626 (7) $18,911,845 (7) $41,571,485 (7)
Per Square Foot Improved (5) 51.85 71.68 73.69
Per Square Foot (2) 1.91 1.58 5.03
WORK IN PROCESS (6)
Cummulative Costs $2,676,259 $8,447,326 $4,703,992
Cummulative Per Square Foot Improved (8) 18.81 25.99 14.59
</TABLE>
(1) Recurring non-tenant capital expenditures include expenditures that are not
tenant related nor recoverable from tenants.
(2) Includes annual costs divided by total GLA (excluding space owned by
certain anchor store tenants) of the Properties
(3) Tenant Improvements/Leasing costs include tenant specific costs including
tenant improvements, tenant allowances and capitalized internal leasing
costs.
(4) Calculated as Recurring Tenant Improvements/Leasing Costs divided by GLA of
all Recurring Store Openings (including spaces requiring no expenditures).
(5) Calculated as Non-Recurring Tenant Improvements/Leasing Costs divided by
GLA of all Non-Recurring Store Openings.
(6) Work in process that will be shown as Recurring or Non-Recurring when the
work is completed.
(7) Includes expansion costs for Franklin Mills and Gurnee Mills and
non-recurring remerchandising costs. Excludes expansion costs for Sawgrass
Phase III.
(8) Calculated as Work In Process divided by GLA of all space with work in
process.
(9) Excludes projects that have less than 12 months of operations.
26
<PAGE> 24
THE MILLS CORPORATION
CAPITAL EXPENDITURES
MILLS PORTFOLIO (9)
<TABLE>
<CAPTION>
Twelve Months Ended Year ended December 31,
December 31, 1999 1998 1997
-------------------------- ----------------- ---------------
<S> <C> <C> <C>
RECURRING NON-TENANT CAPITAL EXPENDITURES (1)
Costs $140,913 $949,095 $388,003
Per Square Foot (2) 0.01 0.10 0.06
RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $4,307,703 $4,274,398 $4,518,073
Per Square Foot Improved (4) 9.28 8.53 13.35
Per Square Foot (2) 0.44 0.44 0.75
TOTAL RECURRING COSTS
Costs $4,448,616 $5,223,493 $4,906,076
Per Square Foot (2) 0.45 0.54 0.81
NON RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $16,911,884 (7) $18,175,677 (7) $41,010,815 (7)
Per Square Foot Improved (5) 64.28 96.48 78.37
Per Square Foot (2) 1.73 1.86 6.77
WORK IN PROCESS (6)
Cummulative Costs $1,955,746 $6,779,660 $3,989,739
Cummulative Per Square Foot Improved (8) 38.97 38.45 31.27
</TABLE>
(1) Recurring non-tenant capital expenditures include expenditures that are not
tenant related nor recoverable from tenants.
(2) Includes annual costs divided by total GLA (excluding space owned by
certain anchor store tenants) of the Properties
(3) Tenant Improvements/Leasing costs include tenant specific costs including
tenant improvements, tenant allowances and capitalized internal leasing
costs.
(4) Calculated as Recurring Tenant Improvements/Leasing Costs divided by GLA of
all Recurring Store Openings (including spaces requiring no expenditures).
(5) Calculated as Non-Recurring Tenant Improvements/Leasing Costs divided by
GLA of all Non-Recurring Store Openings.
(6) Work in process that will be shown as Recurring or Non-Recurring when the
work is completed.
(7) Includes expansion costs at Franklin Mills and Gurnee Mills and
non-recurring remerchandising costs. Excludes costs relating to Sawgrass
Phase III expansion.
(8) Calculated as Work In Process divided by GLA of all space with work in
process.
(9) Excludes projects that have less than 12 months of operations.
27
<PAGE> 25
THE MILLS CORPORATION
CAPITAL EXPENDITURES
COMMUNITY CENTERS
<TABLE>
<CAPTION>
Twelve Months Ended Year ended December 31,
December 31, 1999 1998 1997
-------------------------- ----------------- ---------------
<S> <C> <C> <C>
RECURRING NON-TENANT CAPITAL EXPENDITURES (1)
Costs $172,549 $504,028 $47,739
Per Square Foot (2) 0.08 0.23 0.02
RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $287,128 $1,192,931 $625,133
Per Square Foot Improved (4) 3.83 6.10 6.68
Per Square Foot (1) 0.13 0.54 0.28
TOTAL RECURRING COSTS
Costs $459,677 $1,696,959 $672,872
Per Square Foot (2) 0.21 0.77 0.31
NON RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $5,969,742 $736,168 $560,670
Per Square Foot Improved (5) 33.49 9.76 13.73
Per Square Foot (2) 2.71 0.33 0.25
WORK IN PROCESS (6)
Cummulative Costs $720,513 $1,667,666 $714,253
Cummulative Per Square Foot Improved (7) 7.83 11.22 3.66
</TABLE>
(1) Recurring non-tenant capital expenditures include expenditures that are not
tenant related nor recoverable from tenants.
(2) Includes annual costs divided by total GLA (excluding space owned by
certain tenants) of the Community Centers
(3) Tenant Improvements/Leasing costs include tenant specific costs including
tenant improvements, tenant allowances and capitalized internal leasing
costs.
(4) Calculated as Recurring Tenant Improvements/Leasing Costs divided by GLA of
all Recurring Store Openings (including spaces requiring no expenditures).
(5) Calculated as Non-Recurring Tenant Improvements/Leasing Costs divided by
GLA of all Non-Recurring Store Openings.
(6) Work in process that will be shown as Recurring or Non-Recurring when the
work is completed.
(7) Calculated as Work In Process divided by GLA of all space with work in
process.
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