<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
<TABLE>
<CAPTION>
<S> <C>
Date of Report (Date of earliest event reported): Commission File Number:
------------------------------------------------ -----------------------
March 31, 2000 1 - 12994
</TABLE>
THE MILLS CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
<TABLE>
<CAPTION>
<S> <C>
Delaware 52-1802283
-------- ----------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
</TABLE>
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 Mills Corporation made available additional operational information
concerning it, and the properties owned or managed by it as of March
31, 2000, 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 March 31, 2000
</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: May 15, 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 MARCH 31, 2000
INFORMATION PAGE
----------- ----
Overview 5-6
Summary of Operating Properties 7
Summary of Properties Under Construction 8
Supplemental Financial Data 9
Property Operating Income 10-11
Unconsolidated Joint Ventures Net Income
and Funds From Operations 12
Occupancy Analysis 13
Lease Expiration Schedule 14-16
Rental Rates 17
Average Rents 18-19
Summary of Outstanding Consolidated Indebtedness 20
Summary of Outstanding Unconsolidated Indebtedness 21
Gross Tenant Reported Sales 22
Comparable Specialty Store Tenant Sales 23
Capital Expenditures 24-26
<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 March 31, 2000, a 1%
interest as the sole general partner and a 58.45% 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 March 31, 2000, the Operating Partnership owns or holds an
interest in the following operating properties:
<TABLE>
<CAPTION>
Mills Location (Metropolitan Market Served)
----- -------------------------------------
<S> <C>
Franklin Mills Philadelphia, PA (Philadelphia)
Gurnee Mills Gurnee, IL (Chicago)
Potomac Mills Woodbridge, VA (Washington, DC)
Sawgrass Mills Sunrise, FL (Ft. Lauderdale)
Ontario Mills Ontario, CA (Los Angeles)
Grapevine Mills Grapevine, TX (Dallas/Fort Worth)
Arizona Mills Tempe, AZ (Phoenix)
The Oasis at Sawgrass Sunrise, FL (Ft. Lauderdale)
Concord Mills Concord, NC (Charlotte)
Katy Mills Houston, TX (Houston)
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), Discover 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 March 31,
2000 for the Company and the 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 March 31, 2000:
<TABLE>
<CAPTION>
Anchor
Total Store
Metropolitan Year Ownership GLA GLA
Name/Location Area Serviced Opened Percentage (Sq. Ft.) (1) (sq.ft.) (1)
----------------------- ------------- ------ ---------- --------------- --------------
MILLS
<S> <C> <C> <C> <C> <C>
Potomac Mills Washington D.C./ 1985 100% 1,637,120 1,000,557
Woodbridge, VA Baltimore
Franklin Mills Philadelphia/ 1989 100% 1,741,526 1,142,835
Philadelphia, PA Wilmington
Sawgrass Mills Fort Lauderdale, FL/ 1990 100% 1,845,342 1,168,725
Sunrise, FL Miami/Palm Beach
Gurnee Mills Chicago/Milwaukee 1991 100% 1,699,673 1,076,646
Gurnee, IL
Ontario Mills Los Angeles 1996 50% 1,471,096 961,527
Ontario, CA
Grapevine Mills Dallas/Fort Worth 1997 37.5% 1,496,814 953,417
Grapevine, TX
Arizona Mills Phoenix 1997 36.8% 1,233,884 700,731
Tempe, AZ
The Oasis at Sawgrass Fort Lauderdale, FL/ 1999 50% 290,063 134,860
Sunrise, FL Miami/Palm Beach
Concord Mills Charlotte 1999 37.5% 1,235,755 (4) 670,009
Concord, NC
Katy Mills Houston 1999 62.5% 1,160,168 595,993
Houston, TX
------------- -------------
MILLS TOTALS/WEIGHTED AVERAGES 13,811,441 8,405,300
============= =============
The Block at Orange Los Angeles/Orange 1998 50% 644,652 359,701
============= =============
County
COMMUNITY CENTERS (11 CENTERS) 2,216,420 1,365,729
============= =============
<CAPTION>
Specialty 12 Mos. Ended
Store Annualized No. of 3/31/2000
GLA Percent Base Anchor Specialty Store
Name/Location (sq.ft.) (1) Leased (2) Rent (5) Stores (3) Sales PSF
----------------------- -------------- ---------- -------- ---------- ---------
<S> <C> <C> <C> <C> <C>
MILLS
Potomac Mills 636,563 97% $ 21,786,911 18 $ 331
Woodbridge, VA
Franklin Mills 598,691 91% 17,464,511 17 319
Philadelphia, PA
Sawgrass Mills 676,617 95% 24,544,365 18 434
Sunrise, FL
Gurnee Mills 623,027 96% 17,700,047 17 297
Gurnee, IL
Ontario Mills 509,569 97% 19,640,168 23 369
Ontario, CA
Grapevine Mills 543,397 96% 20,600,751 17 297
Grapevine, TX
Arizona Mills 533,153 96% 19,184,491 16 316
Tempe, AZ
The Oasis at Sawgrass.. 155,203 92% 5,728,049 3 N/A (6)
Sunrise, FL
Concord Mills 565,746 89% 18,463,058 15 N/A (6)
Concord, NC
Katy Mills 564,175 91% 18,270,204 13 N/A (6)
Houston, TX
------------ ------------------ ---------
MILLS TOTALS/WEIGHTED AVERAGES 5,406,141 94% $ 183,382,555 157 $ 340
============ ================= =========
The Block at Orange 284,951 90% $ 13,553,183 9 $ 345
============ ================= =========
COMMUNITY CENTERS (11 CENTERS)
850,691 86% $ 17,220,756 26
============ ================= ==========
</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 March 1, 2000, excluding tenants with leases
having a term of less than 1 year plus gross leaseable area owned by store
tenants described in footnote (1).
(3) Anchor stores include all stores occupying more than 20,000 square feet and
certain store tenants described in footnote (1).
(4) 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.
(5) Annualized Base Rent is defined as the contractual minimum rent of tenants
comprising gross leaseable occupied area at 3/31/00 multiplied by 12,
excluding tenants as noted in footnote (1) and ground leases of 152,370
square feet at Franklin Mills and 177,063 square feet at Grapevine Mills.
(6) Twelve months ended March 31, 2000 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
<TABLE>
<CAPTION>
Estimated
Anticipated Approx. Aggregate
Metropolitan Opening GLA Company Project
Name/Location Area Serviced Date (1) (Sq. Ft.) (1,2) Ownership Cost (1)
----------------------- ---------------- ------------ -------------- ------------- -------------
(millions)
<S> <C> <C> <C> <C> <C>
Opry Mills Nashville Spring 1,200,000 66.7% (5) $ 226
Nashville, TN 2000 (6)
Arundel Mills Baltimore/ Fall 1,300,000 37.5% $ 231
Dorchester, MD Washington D.C. 2000
Discover Mills Atlanta Spring 1,200,000 50.0% $ 231
Atlanta, GA 2001
<CAPTION>
Anchor
Required Company's Store
Equity from Equity at Percentage Tenant
Name/Location Company 3/31/00 Pre-leased (4) Commitments
----------------------- ------------- ------------- ----------------- --------------
(millions)
<S> <C> <C> <C> <C>
Opry Mills $ 52.00 $ 52.00(8) 81% 14
Nashville, TN
Arundel Mills $ 17.50 $ 12.93 32% 10
Dorchester, MD
Discover Mills $ - $ - N/A (3) N/A (3)
Atlanta, GA
</TABLE>
(1) Anticipated Opening Dates, Approximate Gross Leaseable Area and Estimated
Aggregate Project Cost may be subject to adjustment as a result of factors
inherent in the development process, some of which may not be under the
direct control of the Company.
(2) Approximate GLA includes space that may be owned by certain anchor store
tenants.
(3) The Company recently has begun leasing efforts for these projects and has
obtained various letters of interest.
(4) Consists of fully executed leases as of March 31, 2000.
(5) The Company has entered into a letter of intent with Kan Am to fund 100%
of the Company's equity requirement for Opry Mills. Upon formation of the
joint venture (which is subject to final documentation), Kan Am will
receive a 33.33% interest in Opry Mills Limited Partnership.
(6) Opry Mills opened May 11, 2000.
8
<PAGE> 6
THE MILLS CORPORATION
SUPPLEMENTAL FINANCIAL DATA
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
2000 1999
------------ ------------
<S> <C> <C>
STATEMENT OF OPERATIONS DATA:
REVENUES:
Minimum rent $25,706 $26,017
Percentage rent 346 196
Recoveries from tenants 13,386 13,332
Other property revenue 2,287 1,665
Management fee income 1,793 951
Other fee income 2,410 2,377
Interest income 787 1,054
------------ ------------
Total revenues 46,715 45,592
EXPENSES:
Recoverable from tenants 11,455 11,722
Other operating 975 1,202
General and administrative 3,335 2,924
Interest expense 12,801 11,123
Depreciation and amortization 9,243 8,617
------------ ------------
Total expenses 37,809 35,588
Other income/(expense) (371) (179)
Equity in earnings of unconsolidated joint ventures 1,668 1,017
------------ ------------
Income before extraordinary item and minority interests 10,203 10,842
Extraordinary losses on debt extinguishments (1,513) (2,762)
------------ ------------
Income before minority interests 8,690 8,080
Minority interests (3,524) (3,285)
------------ ------------
Net income $5,166 $4,795
============ ============
Income per share before extraordinary item (Basic) $0.26 $0.28
============ ============
Income per share before extraordinary item (Diluted) $0.26 $0.28
============ ============
Net income per share (Basic) $0.22 $0.21
============ ============
Net income per share (Diluted) $0.22 $0.21
============ ============
FUNDS FROM OPERATIONS (*):
Income before extraordinary item
and minority interests $10,203 $10,842
Adjustments:
Add: Depreciation and amortization of real estate
assets 7,728 7,714
Add: Real estate depreciation and amortization
of unconsolidated joint ventures 5,687 2,748
------------ ------------
Funds from operations $23,618 $21,304
============ ============
BASIC:
Weighted average shares 23,173 23,111
Weighted average shares and units 39,001 38,956
DILUTED:
Weighted average shares 23,192 23,225
Weighted average shares and units 39,020 39,069
</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
accounting principles generally accepted in the United States (GAAP)),
excluding gains (losses) from debt restructuring and sales of depreciated
property, plus real estate related depreciation and amortization after
adjustments for unconsolidated partnerships and joint ventures. FFO is
presented to assist investors in analyzing the performance of the
Company. The Company's method of calculating FFO may be different from
methods used by other REITs and, accordingly, may not be comparable to
such other REITs. FFO (i) does not represent cash flow from operations as
defined by GAAP, (ii) is not indicative of cash available to fund all
cash flow needs and liquidity, including its ability to make
distributions, and (iii) should not be considered as an alternative to
net income (determined in accordance with GAAP) for purposes of
evaluating the Company's operating performance.
9
<PAGE> 7
THE MILLS CORPORATION
PROPERTY OPERATING INCOME
(IN THOUSANDS)
(UNAUDITED)
THE FOLLOWING TABLE SETS FORTH THE PROPERTY OPERATING INCOME FOR EACH OF THE
MILLS, MAINSTREET (I.E. THE COMPANY'S PUSH CART PROGRAM), THE COMMUNITY CENTERS
AND THE BLOCK. 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 BE A REPRESENTATION OF NET INCOME ACCORDING TO GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES.
FOR THE THREE MONTHS ENDED MARCH 31, 2000
WHOLLY OWNED PROPERTIES
<TABLE>
<CAPTION>
Potomac Franklin Sawgrass Gurnee Mainstreet
------- -------- -------- ------ ---------
<S> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 5,437 $ 4,529 $ 6,236 $ 4,490 $ 557
Percentage rent 19 30 91 35 88
Recoveries from tenants 2,455 3,111 3,862 2,437 -
Other revenue 225 340 949 347 158
--------------------------------------------------------------------
Total rental revenues 8,136 8,010 11,138 7,309 803
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,070 2,264 3,442 2,154 -
Other operating 161 141 111 91 367
-----------------------------------------------------------------------
Total property operating costs (1) 2,231 2,405 3,553 2,254 367
-----------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 5,905 $ 5,605 $ 7,585 5,064 $ 436
=======================================================================
<CAPTION>
Community
Centers Total
------- -----
<S> <C> <C>
RENTAL REVENUES:
Minimum rent $ 4,457 $ 25,706
Percentage rent 83 346
Recoveries from tenants 1,521 13,386
Other revenue 268 2,287
---------------------------------
Total rental revenues 6,329 41,725
PROPERTY OPERATING COSTS:
Recoverable from tenants 1,525 11,455
Other operating 104 975
---------------------------------
Total property operating costs (1) 1,629 12,430
---------------------------------
PROPERTY OPERATING INCOME $ 4,700 29,295
=================================
</TABLE>
UNCONSOLIDATED JOINT VENTURES
<TABLE>
<CAPTION>
Ontario Grapevine Arizona The Block The Oasis Concord
------- -------- -------- --------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 5,031 $ 5,782 $ 5,336 $ 4,254 $ 1,544 $ 4,941
Percentage rent 160 334 6 55 - 126
Recoveries from tenants 2,364 2,805 2,118 1,037 523 1,450
Other revenue 514 616 457 217 23 518
--------------------------------------------------------------------------------------
Total rental revenues 8,069 9,537 7,917 5,563 2,090 7,035
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,068 2,397 2,014 1,258 483 1,228
Other operating 181 128 96 155 23 50
--------------------------------------------------------------------------------------
Total property operating costs(1) 2,249 2,525 2,110 1,413 506 1,278
--------------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 5,820 $ 7,012 $ 5,807 $ 4,150 $ 1,584 $ 5,757
======================================================================================
<CAPTION>
Katy Other Total
----- ----- -----
<S> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 4,659 $ 38 $ 31,585
Percentage rent 144 - 825
Recoveries from tenants 2,179 - 12,476
Other revenue 426 - 2,771
---------------------------------------------
Total rental revenues 7,408 38 47,657
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,130 - 11,578
Other operating 56 64 753
---------------------------------------------
Total property operating costs (1) 2,186 64 12,331
---------------------------------------------
PROPERTY OPERATING INCOME $ 5,222 $ (26) $ 35,326
=============================================
</TABLE>
(1) Total property operating costs excludes management fees as follows: Potomac
Mills - $232, Franklin Mills - $191, Sawgrass Mills - $249, Gurnee Mills -
$180, Community Centers - $193, Ontario Mills - $248, Grapevine Mills -
$406, Arizona Mills - $384, The Block at Orange - $153, The Oasis at
Sawgrass - $48, Concord Mills - $314 and Katy Mills - $162.
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 (i.e. the Company's push cart program). The Community Center
and The Block. 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 be a representation of net income according to generally accepted
accounting principles.
FOR THE THREE MONTHS ENDED MARCH 31, 1999
WHOLLY OWNED PROPERTIES
<TABLE>
<CAPTION>
Potomac Franklin Sawgrass Gurnee Mainstreet
------- -------- -------- --------- ----------
<S> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 5,353 $ 4,682 $ 6,497 $ 4,393 $ 401
Percentage rent 7 37 87 7 58
Recoveries from tenants 2,420 2,956 3,931 2,437
Other revenue 179 179 770 284 232
----------------------------------------------------------------------
Total rental revenues 7,959 7,854 11,285 7,121 691
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,126 2,336 3,556 2,150 -
Other operating 245 203 123 168 373
----------------------------------------------------------------------
Total property operating costs(1) 2,371 2,539 3,679 2,318 373
----------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 5,588 $ 5,315 $ 7,606 $ 4,803 $ 318
======================================================================
<CAPTION>
Community
Centers Total
------- ------
<S> <C> <C>
RENTAL REVENUES:
Minimum rent $ 4,691 $ 26,017
Percentage rent - 196
Recoveries from tenants 1,588 13,332
Other revenue 21 1,665
------------------------------
Total rental revenues 6,300 41,210
PROPERTY OPERATING COSTS:
Recoverable from tenants 1,554 11,722
Other operating 90 1,202
------------------------------
Total property operating costs(1) 1,644 12,924
------------------------------
PROPERTY OPERATING INCOME $ 4,656 $ 28,286
==============================
</TABLE>
<TABLE>
<CAPTION>
UNCONSOLIDATED JOINT VENTURES
Ontario Grapevine Arizona The Block Other Total
------- -------- -------- --------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 4,861 $ 5,351 $ 5,081 $ 3,896 $ 223 $ 19,412
Percentage rent - - 110 - - 110
Recoveries from tenants 2,376 2,470 2,102 1,010 4 7,962
Other revenue 378 414 358 317 - 1,467
------------------------------------------------------------------------------------
Total rental revenues 7,615 8,235 7,651 5,223 227 28,951
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,189 2,356 2,107 1,288 40 7,980
Other operating 236 192 166 76 120 790
------------------------------------------------------------------------------------
Total property operating costs (1) 2,425 2,548 2,273 1,364 160 8,770
------------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 5,190 $ 5,687 $ 5,378 $ 3,859 $ 67 $ 20,181
====================================================================================
</TABLE>
(1) Total property operating costs excludes management fees as follows:
Potomac Mills - $202, Franklin Mills - $193, Sawgrass Mills - $310,
Gurnee Mills - $197, Community Centers - $192, Ontario Mills - $182,
Grapevine Mills - $313, Arizona Mills - $335, The Block at Orange - $189
and Other - $2.
11
<PAGE> 9
THE MILLS CORPORATION
UNCONSOLIDATED JOINT VENTURES
NET INCOME AND FUNDS FROM OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED MARCH 31, 2000
Ontario Grapevine Arizona The Block The Oasis Concord Katy
------- -------- -------- --------- ---------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
REVENUES
Minimum rent $ 5,031 $ 5,782 $ 5,336 $ 4,254 $ 1,544 $ 4,941 $ 4,659
Percentage rent 160 334 6 55 - 126 144
Recoveries from tenants 2,364 2,805 2,118 1,037 523 1,450 2,179
Interest income 934 112 72 486 137 231 372
Other revenue 514 616 457 217 23 518 426
-----------------------------------------------------------------------------------------
Total revenues 9,003 9,649 7,989 6,049 2,227 7,266 7,780
Expenses:
Recoverable from tenants 2,068 2,397 2,014 1,258 483 1,228 2,130
Other operating (1) 429 534 480 308 71 364 218
Interest expense 2,431 2,506 2,634 2,306 673 2,452 2,049
Depreciation and amortization 2,139 2,658 1,868 2,226 986 3,357 3,442
-----------------------------------------------------------------------------------------
Total Expenses 7,067 8,095 6,996 6,098 2,213 7,401 7,839
Gain on Land Sales - - - - - - -
Other - - (8) (14) - - -
-----------------------------------------------------------------------------------------
NET INCOME/(LOSS) 1,936 1,554 985 (63) 14 (135) (59)
=========================================================================================
RECONCILIATION OF NET INCOME TO
FUNDS FROM OPERATIONS
Income before extraordinary items 1,936 1,554 985 (63) 14 (135) (59)
Adjustments:
Add: Depreciation and amortization
of real estate assets 2,103 2,615 1,706 2,065 869 3,132 3,105
-----------------------------------------------------------------------------------------
TOTAL FUNDS FROM OPERATIONS $ 4,039 $ 4,169 $ 2,691 $ 2,002 $ 883 $ 2,997 $ 3,046
=========================================================================================
MILLS ALLOCATIONS:
Mills share of FFO 1,761 1,415 991 491 201 1,124 1,218
Management Fees due Mills 248 271 249 153 48 209 162
-----------------------------------------------------------------------------------------
Total Mills FFO $ 2,009 $ 1,686 $ 1,240 $ 644 $ 249 $ 1,333 $ 1,380
=========================================================================================
Mills share of net income/(loss) $ 844 $ 527 $ 363 $ (15) $ 3 $ (51) $ (24)
=========================================================================================
<CAPTION>
FOR THE THREE MONTHS ENDED MARCH 31, 2000
Other Total
-------- --------
<S> <C> <C>
REVENUES
Minimum rent $ 38 $ 31,585
Percentage rent - 825
Recoveries from tenants - 12,476
Interest income 243 2,587
Other revenue - 2,771
-----------------------
Total revenues 281 50,244
EXPENSES:
Recoverable from tenants - 11,578
Other operating (1) 64 2,468
Interest expense 107 15,158
Depreciation and amortization 270 16,946
-----------------------
Total Expenses 441 46,150
Gain on Land Sales 122 122
Other - (22)
-----------------------
NET INCOME/(LOSS) (38) 4,194
=======================
RECONCILIATION OF NET INCOME TO
FUNDS FROM OPERATIONS
Income before extraordinary items (38) 4,194
Adjustments:
Add: Depreciation and amortization
of real estate assets 270 15,865
-----------------------
TOTAL FUNDS FROM OPERATIONS $ 232 $ 20,059
=======================
MILLS ALLOCATIONS:
Mills share of FFO 154 7,355
Management Fees due Mills - 1,340
-----------------------
Total Mills FFO $ 154 8,695
=======================
Mills share of net income/(loss) 21 $ 1,668
=======================
</TABLE>
(1) Total property operating costs includes management fees as follows:
Ontario Mills - $248, Grapevine Mills - $406, Arizona Mills - $384,
The Block at Orange - $153, The Oasis at Sawgrass - $48, Concord Mills
- $314 and Katy Mills - $162.
12
<PAGE> 10
THE MILLS CORPORATION
OCCUPANCY ANALYSIS
<TABLE>
<CAPTION>
GROSS LEASED & OCCUPIED AREA (S.F.) (1)
GLA Occupied (3)
Project Total GLA at 3/00 %
- ------- --------- --------------- ---------
<S> <C> <C> <C>
Potomac Mills 1,637,120 1,589,429 97.09%
Franklin Mills 1,741,526 1,593,297 91.49%
Sawgrass Mills 1,845,342 1,757,537 95.24%
Gurnee Mills 1,699,673 1,623,889 95.54%
-------------------------------------------------------- -
Total Mills 6,923,661 6,564,152 94.81%
Butterfield 114,610 93,603 81.67%
Coopers Plaza 173,509 100,162 57.73%
Crosswinds 144,273 141,600 98.15%
Fashion Place 147,950 118,018 79.77%
Germantown 177,097 172,121 97.19%
Gwinnett 194,503 161,074 82.81%
Liberty Plaza 315,067 248,856 78.99%
Montgomery Village 117,391 94,601 80.59%
Mt. Prospect 298,600 292,170 97.85%
West Falls Church 87,824 86,488 98.48%
Western Hills 445,596 396,316 88.94%
--------------------------------------------------------
2,216,420 1,905,009 85.95%
--------------------------------------------------------
Total Wholly Owned 9,140,081 8,469,161 92.66%
========================================================
Joint Ventures:
Ontario Mills 1,471,096 1,427,436 97.03%
Grapevine Mills 1,496,814 1,438,159 96.08%
Arizona Mills 1,233,884 1,185,109 96.05%
Concord Mills 1,235,755 1,097,884 88.84%
Katy Mills 1,160,168 1,060,152 91.38%
The Block at Orange 644,652 580,719 90.08%
The Oasis at Sawgrass 290,063 267,590 92.25%
--------------------------------------------------------
Total Joint Ventures 7,532,432 7,057,049 93.69%
========================================================
Total Mills 13,811,441 13,040,482 94.42%
========================================================
Total Wholly Owned
and Joint Ventures 16,672,513 15,526,210 93.12%
========================================================
<CAPTION>
GROSS LEASED & OCCUPIED AREA, NET OF ANCHORS (S.F) (2)
Total GLA Occupied (3)
Project Specialty GLA at 3/00 %
- ------- ------------- --------------- --------
<S> <C> <C> <C>
Potomac Mills 636,563 588,872 92.51%
Franklin Mills 598,691 518,017 86.52%
Sawgrass Mills 676,617 636,964 94.14%
Gurnee Mills 623,027 547,243 87.84%
--------------------------------------------------------
Total Mills 2,534,898 2,291,096 90.38%
Butterfield 72,677 72,677 100.00%
Coopers Plaza 14,953 0 0.00%
Crosswinds 23,298 20,625 88.53%
Fashion Place 74,692 44,760 59.93%
Germantown 130,341 125,365 96.18%
Gwinnett 96,956 63,527 65.52%
Liberty Plaza 52,320 39,458 75.42%
Montgomery Village 80,986 58,196 71.86%
Mt. Prospect 126,005 119,575 94.90%
West Falls Church 49,983 48,647 97.33%
Western Hills 128,480 79,200 61.64%
--------------------------------------------------------
850,691 672,030 79.00%
--------------------------------------------------------
Total Wholly Owned 3,385,589 2,963,126 87.52%
========================================================
Joint Ventures:
Ontario Mills 509,569 465,909 91.43%
Grapevine Mills 543,397 484,742 89.21%
Arizona Mills 533,153 484,378 90.85%
Concord Mills 565,746 427,875 75.63%
Katy Mills 564,175 464,159 82.27%
The Block at Orange 284,951 221,018 77.56%
The Oasis at Sawgrass 155,203 132,730 85.52%
--------------------------------------------------------
Total Joint Ventures 3,156,194 2,680,811 84.94%
========================================================
Total Mills 5,406,141 4,750,889 87.88%
========================================================
Total Wholly Owned
and Joint Ventures 6,541,783 5,643,937 86.28%
=======================================================
<CAPTION>
TOTAL VACANT S.F.
Vacancies
Project Anchor Specialty Total
- ------- -------- ---------- -------
<S> <C> <C> <C>
Potomac Mills 0 47,691 47,691
Franklin Mills 67,555 80,674 148,229
Sawgrass Mills 48,152 39,653 87,805
Gurnee Mills 0 75,784 75,784
----------------------------------------------------
Total Mills 115,707 243,802 359,509
Butterfield 21,007 0 21,007
Coopers Plaza 58,394 14,953 73,347
Crosswinds 0 2,673 2,673
Fashion Place 0 29,932 29,932
Germantown 0 4,976 4,976
Gwinnett 0 33,429 33,429
Liberty Plaza 53,349 12,862 66,211
Montgomery Village 0 22,790 22,790
Mt. Prospect 0 6,430 6,430
West Falls Church 0 1,336 1,336
Western Hills 0 49,280 49,280
----------------------------------------------------
132,750 178,661 311,411
----------------------------------------------------
Total Wholly Owned 248,457 422,463 670,920
====================================================
Joint Ventures:
Ontario Mills 0 43,660 43,660
Grapevine Mills 0 58,655 58,655
Arizona Mills 0 48,775 48,775
Concord Mills 0 137,871 137,871
Katy Mills 0 100,016 100,016
The Block at Orange 0 63,933 63,933
The Oasis at Sawgrass 0 22,473 22,473
---------------------------------------------------
Total Joint Ventures 0 475,383 475,383
===================================================
Total Mills 115,707 655,252 770,959
===================================================
Total Wholly Owned
and Joint Ventures 248,457 897,846 1,146,303
===================================================
</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 Grapevine Mills of
177,063 square feet are also included.
(2) Anchor stores include all stores occupying more than 20,000 square feet.
(3) GLA occupied is defined as follows: (i) all space leased and for which rent
is being paid as of March 1, 2000, excluding tenants with
leases that have a term of less than 1 year plus (ii) GLA owned by
certain store tenants.
13
<PAGE> 11
THE MILLS CORPORATION
LEASE EXPIRATION SCHEDULE (4)
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 March 31,
2000 multiplied by 12.
<TABLE>
<CAPTION>
No. of 2000 No. of
Leases Annualized Leases
Expiring Sq Ft Min. Rent psf Expiring Sq Ft
-------- ----- --------- --- -------- -----
<S> <C> <C> <C> <C> <C> <C>
Potomac Mills:
Anchors (2) - - $ - $ - - -
Majors (2) - - - - 2 67,052
Specialty 21 48,147 1,302,481 27.05 25 61,731
Food Court 4 2,942 205,097 69.71 3 2,484
--------------------------------------------------------------------------------------
25 51,089 $ 1,507,578 $ 29.51 30 131,267
Franklin Mills:
Anchors (2) - - $ - $ - 1 70,701
Majors (2) - - - - 1 25,127
Specialty 17 71,622 1,473,089 20.57 37 108,063
Food Court - - - - 1 490
--------------------------------------------------------------------------------------
17 71,622 $ 1,473,089 $ 20.57 40 204,381
Sawgrass Mills:
Anchors (2,3) 1 78,619 $ 255,512 $ 3.25 2 147,915
Majors (2) 1 20,189 240,000 11.89 - -
Specialty 48 155,267 3,608,239 23.24 43 153,076
Food Court 21 17,931 994,014 55.44 4 3,124
--------------------------------------------------------------------------------------
71 272,006 $ 5,097,765 $ 18.74 49 304,115
Gurnee Mills:
Anchors (2) - - $ - $ - 3 231,271
Majors (2) - - - - 1 40,752
Specialty 14 47,708 895,057 18.76 51 168,110
Food Court 1 657 24,309 37.00 14 10,061
--------------------------------------------------------------------------------------
15 48,365 $ 919,366 $ 19.01 69 450,194
Total Mills w/o Joint Ventures:
Anchors (2) 1 78,619 $ 255,512 $ 3.25 6 449,887
Majors (2) 1 20,189 240,000 11.89 4 132,931
Specialty 100 322,744 7,278,866 22.55 156 490,980
Food Court 26 21,530 1,223,420 56.82 22 16,159
--------------------------------------------------------------------------------------
128 443,082 $ 8,997,798 $ 20.31 188 1,089,957
======================================================================================
<CAPTION>
2001 No. of 2002
Annualized Leases Annualized
Min. Rent psf Expiring Sq Ft Min. Rent psf
--------- --- -------- ----- --------- ---
<S> <C> <C> <C> <C> <C> <C>
Potomac Mills:
Anchors (2) $ - $ - - - $ - $ -
Majors (2) 602,846 8.99 - - - -
Specialty 1,693,920 27.44 32 121,924 2,589,492 21.24
Food Court 154,621 62.25 3 1,859 127,485 68.58
-----------------------------------------------------------------------------------------
$ 2,451,387 $ 18.67 35 123,783 $ 2,716,977 $ 21.95
Franklin Mills:
Anchors (2) $ 484,302 $ 6.85 - - $ - $ -
Majors (2) 178,402 7.10 1 30,237 257,015 8.50
Specialty 2,332,893 21.59 27 85,380 1,864,241 21.83
Food Court 15,000 30.61 3 2,512 74,660 29.72
-----------------------------------------------------------------------------------------
$ 3,010,597 $ 14.73 31 118,129 $ 2,195,916 $ 18.59
Sawgrass Mills:
Anchors (2,3) $ 1,101,435 $ 7.45 - - $ - $ -
Majors (2) - - 2 42,657 365,206 8.56
Specialty 3,533,003 23.08 28 72,495 2,245,382 30.97
Food Court 176,752 56.58 2 1,852 87,602 47.30
-----------------------------------------------------------------------------------------
$ 4,811,190 $ 15.82 32 117,004 $ 2,698,190 $ 23.06
Gurnee Mills:
Anchors (2) $ 1,381,540 $ 5.97 1 61,265 $ 495,000 $ 8.08
Majors (2) 289,339 7.10 1 33,627 252,202 7.50
Specialty 3,464,004 20.61 23 71,104 1,544,252 21.72
Food Court 572,738 56.93 5 3,611 228,158 63.18
-----------------------------------------------------------------------------------------
$ 5,707,621 $ 12.68 30 169,607 $ 2,519,612 $ 14.86
Total Mills w/o Joint Ventures:
Anchors (2) $ 2,967,277 $ 6.60 1 61,265 $ 495,000 $ 8.08
Majors (2) 1,070,587 8.05 4 106,521 874,423 8.21
Specialty 11,023,820 22.45 110 350,903 8,243,367 23.49
Food Court 919,111 56.88 13 9,834 517,905 52.66
-----------------------------------------------------------------------------------------
$15,980,795 $ 14.66 128 528,523 $10,130,695 $ 19.17
=========================================================================================
<CAPTION>
No. of After 2002 No. of
Leases Annualized Leases
Expiring Sq Ft Min. Rent psf Expiring Sq Ft
-------- ----- --------- --- -------- -----
<S> <C> <C> <C> <C> <C> <C>
Potomac Mills:
Anchors (2) 5 530,633 $ 3,040,838 $ 5.73 5 530,633
Majors (2) 10 322,872 2,880,095 8.92 12 389,924
Specialty 99 346,885 9,031,358 26.04 177 578,687
Food Court 4 2,900 158,678 54.72 14 10,185
-------------------------------------------------------------------------------------
118 1,203,290 $15,110,969 $ 12.56 208 1,509,429
Franklin Mills:
Anchors (2) 4 357,592 $ 3,089,629 $ 8.64 5 428,293
Majors (2) 7 229,641 2,396,677 10.44 9 285,005
Specialty 60 243,675 5,030,997 20.65 141 508,740
Food Court 8 6,275 267,606 42.65 12 9,277
-------------------------------------------------------------------------------------
79 837,183 $10,784,909 $ 12.88 167 1,231,315
Sawgrass Mills:
Anchors (2,3) 5 432,246 $ 2,888,695 $ 6.68 8 658,780
Majors (2) 5 176,653 2,273,629 12.87 8 239,499
Specialty 67 229,654 6,683,298 29.10 186 610,492
Food Court 2 3,565 91,598 25.69 29 26,472
-------------------------------------------------------------------------------------
79 842,118 $11,937,220 $ 14.18 231 1,535,243
Gurnee Mills:
Anchors (2) 3 298,419 $ 1,449,681 $ 4.86 7 590,955
Majors (2) 5 160,506 1,840,098 11.46 7 234,885
Specialty 63 242,233 5,088,614 21.01 151 529,155
Food Court 6 3,759 175,055 46.57 26 18,088
-------------------------------------------------------------------------------------
77 704,917 $ 8,553,448 $ 12.13 191 1,373,083
Total Mills w/o Joint Ventures:
Anchors (2) 17 1,618,890 $10,468,843 $ 6.47 25 2,208,661
Majors (2) 27 889,672 9,390,499 10.56 36 1,149,313
Specialty 289 1,062,447 25,834,267 24.32 655 2,227,074
Food Court 20 16,499 692,937 42.00 81 64,022
-------------------------------------------------------------------------------------
353 3,587,508 $46,386,546 $ 12.93 797 5,649,070
=====================================================================================
<CAPTION>
Total
Annualized
Min. Rent psf
--------- ---
<S> <C> <C>
Potomac Mills:
Anchors (2) $ 3,040,838 $ 5.73
Majors (2) 3,482,941 8.93
Specialty 14,617,251 25.26
Food Court 645,881 63.41
---------------------------
$21,786,911 $ 14.43
Franklin Mills:
Anchors (2) $ 3,573,931 $ 8.34
Majors (2) 2,832,094 9.94
Specialty 10,701,220 21.03
Food Court 357,266 38.51
---------------------------
$17,464,511 $ 14.18
Sawgrass Mills:
Anchors (2,3) $ 4,245,642 $ 6.44
Majors (2) 2,878,835 12.02
Specialty 16,069,922 26.32
Food Court 1,349,966 51.00
---------------------------
$24,544,365 $ 15.99
Gurnee Mills:
Anchors (2) $ 3,326,221 $ 5.63
Majors (2) 2,381,639 10.14
Specialty 10,991,927 20.77
Food Court 1,000,260 55.30
---------------------------
$17,700,047 $ 12.89
Total Mills w/o Joint Ventures:
Anchors (2) $14,186,632 $ 6.42
Majors (2) 11,575,509 10.07
Specialty 52,380,320 23.52
Food Court 3,353,373 52.38
---------------------------
$81,495,834 $ 14.43
===========================
</TABLE>
(1) Excludes 963,173 square feet of gross leaseable area owned by tenants as
follows: Potomac Mills - 80,000; Franklin Mills - 209,612 square feet;
Sawgrass Mills - 281,774 square feet; Gurnee Mills - 250,806 square feet;
Ontario Mills - 125,000 square feet; and Community Centers - 15,981 square
feet. Ground leases at Franklin Mills of 152,370 square feet and Grapevine
Mills of 177,063 square feet are also excluded.
(2) Anchor tenants are defined as any tenant whose GLA equals or exceeds 50,000
sq. ft. and Major tenants are defined as any tenant whose GLA equals or
exceeds 20,000 sq. ft. but is less than 50,000 sq. ft..
(3) For lease expiration purposes, Sawgrass Mills includes 59,480 square feet
of gross leasable area that is owned in fee by Sawgrass Mills Phase III
(The Oasis), but leased back to Sawgrass Mills and is sublet to Regal
Theatres.
14
<PAGE> 12
THE MILLS CORPORATION
LEASE EXPIRATION SCHEDULE (4)
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 March 31,
2000 multiplied by 12.
<TABLE>
<CAPTION>
No. of 2000 No. of
Leases Annualized Leases
Expiring Sq Ft Min. Rent psf Expiring Sq Ft
-------- ----- --------- --- -------- -----
<S> <C> <C> <C> <C> <C> <C>
Ontario Mills:
Anchors (2) - - $ - $ - - -
Majors (2) - - - - - -
Specialty 4 11,851 284,679 24.02 44 193,578
Food Court - - - - - -
------------------------------------------------------------ ---------------------
4 11,851 $ 284,679 $ 24.02 44 193,578
Grapevine Mills:
Anchors (2) - - $ - $ - - -
Majors (2) - - - - - -
Specialty 8 19,528 442,957 22.68 10 24,847
Food Court - - - - - -
------------------------------------------------------------ ---------------------
8 19,528 $ 442,957 $ 22.68 10 24,847
Arizona Mills:
Anchors (2) - - $ - $ - - -
Majors (2) - - - - - -
Specialty 9 35,145 812,950 23.13 8 17,212
Food Court - - - - - -
------------------------------------------------------------ ---------------------
9 35,145 $ 812,950 $ 23.13 8 17,212
The Oasis at Sawgrass:
Anchors (2,3) - - $ - $ - - -
Majors (2) - - - - - -
Specialty - - - - - -
Food Court - - - - - -
------------------------------------------------------------ ---------------------
- - $ - $ - - -
Concord Mills:
Anchors (2) - - $ - $ - - -
Majors (2) - - - - - -
Specialty 2 12,107 352,710 29.13 1 2,658
Food Court - - - - - -
------------------------------------------------------------ ---------------------
2 12,107 $ 352,710 $ 29.13 1 2,658
<CAPTION>
2001 No. of 2002
Annualized Leases Annualized
Min. Rent psf Expiring Sq Ft Min. Rent psf
---------- --- -------- ----- --------- ---
<S> <C> <C> <C> <C> <C> <C>
Ontario Mills:
Anchors (2) $ - $ - - - $ - $ -
Majors (2) - - - - - -
Specialty 3,776,522 19.51 23 66,652 1,631,731 24.48
Food Court - - - - - -
------------------------------ --------------------------------------------------------
$ 3,776,522 $ 19.51 23 66,652 $ 1,631,731 $ 24.48
Grapevine Mills:
Anchors (2) $ - $ - - - $ - $ -
Majors (2) - - 1 23,329 279,948 12.00
Specialty 592,505 23.85 54 180,783 3,966,652 21.94
Food Court - - - - - -
------------------------------ --------------------------------------------------------
$ 592,505 $ 23.85 55 204,112 $ 4,246,600 $ 20.81
Arizona Mills:
Anchors (2) $ - $ - - - $ - $ -
Majors (2) - - - - - -
Specialty 444,141 25.80 55 177,952 3,939,815 22.14
Food Court - - - - - -
------------------------------ --------------------------------------------------------
$ 444,141 $ 25.80 55 177,952 $ 3,939,815 $ 22.14
The Oasis at Sawgrass:
Anchors (2,3) $ - $ - - - $ - $ -
Majors (2) - - - - - -
Specialty - - 2 3,132 179,705 57.38
Food Court - - - - - -
------------------------------ --------------------------------------------------------
$ - $ - 2 3,132 $ 179,705 $ 57.38
Concord Mills:
Anchors (2) $ - $ - - - $ - $ -
Majors (2) - - - - - -
Specialty 58,476 22.00 2 2,946 92,894 31.53
Food Court - - - - - -
------------------------------ --------------------------------------------------------
$ 58,476 $ 22.00 2 2,946 $ 92,894 $ 31.53
<CAPTION>
No. of After 2002 No. of
Leases Annualized Leases
Expiring Sq Ft Min. Rent psf Expiring Sq Ft
-------- ----- --------- --- -------- -----
<S> <C> <C> <C> <C> <C> <C>
Ontario Mills:
Anchors (2) 4 286,023 $ 1,883,132 $ 6.58 4 286,023
Majors (2) 18 550,504 6,672,886 12.12 18 550,504
Specialty 65 182,100 4,797,053 26.34 136 454,181
Food Court 3 11,728 594,165 50.66 3 11,728
--------------------------------------------------------------- ------------------------
90 1,030,355 $ 13,947,236 $ 13.54 161 1,302,436
Grapevine Mills:
Anchors (2) 4 393,386 $ 4,358,510 $ 11.08 4 393,386
Majors (2) 12 359,639 4,767,420 13.26 13 382,968
Specialty 77 249,784 5,604,759 22.44 149 474,942
Food Court 1 9,800 588,000 60.00 1 9,800
--------------------------------------------------------------- ------------------------
94 1,012,609 $ 15,318,689 $ 15.13 167 1,261,096
Arizona Mills:
Anchors (2) 5 382,513 $ 3,163,114 $ 8.27 5 382,513
Majors (2) 11 318,218 4,388,224 13.79 11 318,218
Specialty 65 240,145 5,603,745 23.33 137 470,454
Food Court 1 13,924 832,502 59.79 1 13,924
--------------------------------------------------------------- ------------------------
82 954,800 $ 13,987,585 $ 14.65 154 1,185,109
The Oasis at Sawgrass:
Anchors (2,3) 1 32,802 $ 615,322 $ 18.76 1 32,802
Majors (2) 2 42,578 882,869 20.74 2 42,578
Specialty 27 129,598 4,050,153 31.25 29 132,730
Food Court - - - - - -
--------------------------------------------------------------- ------------------------
30 204,978 $ 5,548,344 $ 27.07 32 208,110
Concord Mills:
Anchors (2) 5 433,278 $ 4,714,862 $ 10.88 5 433,278
Majors (2) 10 236,731 3,031,141 12.80 10 236,731
Specialty 111 399,334 9,624,965 24.10 116 417,045
Food Court 1 10,830 588,010 54.29 1 10,830
--------------------------------------------------------------- ------------------------
127 1,080,173 $ 17,958,978 $ 16.63 132 1,097,884
<CAPTION>
Total
Annualized
Min. Rent psf
--------- ---
<S> <C> <C>
Ontario Mills:
Anchors (2) $ 1,883,132 $ 6.58
Majors (2) 6,672,886 12.12
Specialty 10,489,985 23.10
Food Court 594,165 50.66
--------------------------------
$ 19,640,168 $ 15.08
Grapevine Mills:
Anchors (2) $ 4,358,510 $ 11.08
Majors (2) 5,047,368 13.18
Specialty 10,606,873 22.33
Food Court 588,000 60.00
--------------------------------
$ 20,600,751 $ 16.34
Arizona Mills:
Anchors (2) $ 3,163,114 $ 8.27
Majors (2) 4,388,224 13.79
Specialty 10,800,651 22.96
Food Court 832,502 59.79
--------------------------------
$ 19,184,491 $ 16.19
The Oasis at Sawgrass:
Anchors (2,3) $ 615,322 $ 18.76
Majors (2) 882,869 20.74
Specialty 4,229,858 31.87
Food Court - -
--------------------------------
$ 5,728,049 $ 27.52
Concord Mills:
Anchors (2) $ 4,714,862 $ 10.88
Majors (2) 3,031,141 12.80
Specialty 10,129,045 24.29
Food Court 588,010 54.29
--------------------------------
$ 18,463,058 $ 16.82
</TABLE>
(1) Excludes 963,173 square feet of gross leaseable area owned by tenants as
follows: Potomac Mills - 80,000; Franklin Mills - 209,612 square feet;
Sawgrass Mills - 281,774 square feet; Gurnee Mills - 250,806 square feet;
Ontario Mills - 125,000 square feet; and Community Centers - 15,981 square
feet. Ground leases at Franklin Mills of 152,370 square feet and Grapevine
Mills of 177,063 square feet are also excluded.
(2) Anchor tenants are defined as any tenant whose GLA equals or exceeds
50,000 sq. ft. and Major tenants are defined as any tenant whose GLA
equals or exceeds 20,000 sq. ft. but is less than 50,000 sq. ft..
(3) For lease expiration purposes, Sawgrass Mills includes 59,480 square feet
of gross leasable area that is owned in fee by Sawgrass Mills Phase III
(The Oasis), but leased back to Sawgrass Mills and is sublet to Regal
Theatres.
15
<PAGE> 13
THE MILLS CORPORATION
LEASE EXPIRATION SCHEDULE (1)
The following table shows lease expirations assuming that none of the tenants
exercise renewal options. Except as described in footnote (1), the minimum rent
is the monthly contractual minimum rent of the expiring leases as of March 31,
2000 multiplied by 12.
<TABLE>
<CAPTION>
No. of 2000 No. of
Leases Annualized Leases
Expiring Sq Ft Min. Rent psf Expiring
-------- ----- --------- --- --------
<S> <C> <C> <C> <C> <C>
Katy Mills:
Anchors (2) - - $ - $ - -
Majors (2) - - - - -
Specialty 1 1,582 36,386 23.00 1
Food Court - - - - -
----------------------------------------------------------- -----------
1 1,582 $ 36,386 $ 23.00 1
Total Mills with Joint Ventures:
Anchors (2) 1 78,619 $ 255,512 $ 3.25 6
Majors (2) 1 20,189 240,000 11.89 4
Specialty 124 402,957 9,208,548 22.85 220
Food Court 26 21,530 1,223,420 56.82 22
----------------------------------------------------------- -----------
152 523,295 $ 10,927,480 $ 20.88 252
=========================================================== ===========
The Block at Orange:
Anchors (2) - - $ - $ - -
Majors (2) - - - - -
Specialty 2 826 72,210 87.42 5
Food Court - - - - -
----------------------------------------------------------- -----------
2 826 $ 72,210 $ 87.42 5
Community Centers:
Anchors (2) - - $ - $ - -
Majors (2) - - - - 1
Specialty 16 74,880 757,244 10.11 49
Food Court - - - - -
----------------------------------------------------------- -----------
16 74,880 $ 757,244 $ 10.11 50
=========================================================== ===========
Totals:
Anchors (2) 1 78,619 $ 255,512 $ 3.25 6
Majors (2) 1 20,189 240,000 11.89 5
Specialty 142 478,663 10,038,002 20.97 274
Food Court 26 21,530 1,223,420 56.82 22
----------------------------------------------------------- -----------
170 599,001 $ 11,756,934 $ 19.63 307
=========================================================== ===========
</TABLE>
<TABLE>
<CAPTION>
2001 No. of 2002
Annualized Leases Annualized
Sq Ft Min. Rent psf Expiring Sq Ft Min. Rent
----- --------- --- -------- ----- ----------
<S> <C> <C> <C> <C> <C> <C>
Katy Mills:
Anchors (2) - $ - $ - - - $ -
Majors (2) - - - - - -
Specialty 3,327 66,540 20.00 5 7,017 265,154
Food Court - - - - - -
------------------------------------------- ----------------------------------------------
3,327 $ 66,540 $ 20.00 5 7,017 $ 265,154
Total Mills with Joint Ventures:
Anchors (2) 449,887 $ 2,967,277 $ 6.60 1 61,265 $ 495,000
Majors (2) 132,931 1,070,587 8.05 5 129,850 1,154,371
Specialty 732,602 15,962,004 21.79 251 789,385 18,319,318
Food Court 16,159 919,111 56.88 13 9,834 517,905
------------------------------------------- ----------------------------------------------
1,331,579 $ 20,918,979 $ 15.71 270 990,334 $ 20,486,594
=========================================== ==============================================
The Block at Orange:
Anchors (2) - $ - $ - - - $ -
Majors (2) - - - - - -
Specialty 4,634 214,937 46.38 5 7,495 224,909
Food Court - - - - - -
------------------------------------------- ----------------------------------------------
4,634 $ 214,937 $ 46.38 5 7,495 $ 224,909
Community Centers:
Anchors (2) - $ - $ - - - $ -
Majors (2) 24,300 133,650 5.50 2 59,300 245,450
Specialty 176,513 2,369,422 13.42 44 130,054 1,893,771
Food Court - - - - - -
------------------------------------------- ----------------------------------------------
200,813 $ 2,503,072 $ 12.46 46 189,354 $ 2,139,221
=========================================== ==============================================
Totals:
Anchors (2) 449,887 $ 2,967,277 $ 6.60 1 61,265 $ 495,000
Majors (2) 157,231 1,204,237 7.66 7 189,150 1,399,821
Specialty 913,749 18,546,363 20.30 300 926,934 20,437,998
Food Court 16,159 919,111 56.88 13 9,834 517,905
------------------------------------------- ----------------------------------------------
1,537,026 $ 23,636,988 $ 15.38 321 1,187,183 $ 22,850,724
=========================================== ==============================================
</TABLE>
<TABLE>
<CAPTION>
No. of After 2002
Leases Annualized
psf Expiring Sq Ft Min. Rent psf
--- -------- ----- ---------- ---
<S> <C> <C> <C> <C> <C>
Katy Mills:
Anchors (2) $ - 3 322,444 $ 2,480,720 $ 7.69
Majors (2) - 10 273,549 4,346,639 15.89
Specialty 37.79 121 442,150 10,419,370 23.57
Food Court - 1 10,083 655,395 65.00
------------- --------------------- ------------------------------
$ 37.79 135 1,048,226 $ 17,902,124 $ 17.08
Total Mills with Joint Ventures:
Anchors (2) $ 8.08 39 3,469,336 $ 27,684,503 $ 7.98
Majors (2) 8.89 90 2,670,891 33,479,678 12.54
Specialty 23.21 755 2,705,558 65,934,312 24.37
Food Court 52.66 27 72,864 3,951,009 54.22
------------- --------------------- ------------------------------
$ 20.69 911 8,918,649 $ 131,049,502 $ 14.69
============= ===================== ==============================
The Block at Orange:
Anchors (2) $ - 2 172,785 $ 3,467,818 $ 20.07
Majors (2) - 7 186,916 2,846,712 15.23
Specialty 30.01 59 195,125 5,768,476 29.56
Food Court - 10 12,938 958,121 74.05
------------- --------------------- ------------------------------
$ 30.01 78 567,764 $ 13,041,127 $ 22.97
Community Centers:
Anchors (2) $ - 7 596,017 $ 3,752,616 $ 6.30
Majors (2) 4.14 16 528,126 3,932,054 7.45
Specialty 14.56 78 299,838 4,136,549 13.80
Food Court - - - - -
------------- --------------------- ------------------------------
$ 11.30 101 1,423,981 $ 11,821,219 $ 8.30
============= ===================== ==============================
Totals:
Anchors (2) $ 8.08 48 4,238,138 $ 34,904,937 $ 8.24
Majors (2) 7.40 113 3,385,933 40,258,444 11.89
Specialty 22.05 892 3,200,521 75,839,337 23.70
Food Court 52.66 37 85,802 4,909,130 57.21
------------- --------------------- ------------------------------
$ 19.25 1,090 10,910,394 $ 155,911,848 $ 14.29
============= ===================== ==============================
</TABLE>
<TABLE>
<CAPTION>
No. of Total
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Katy Mills:
Anchors (2) 3 322,444 $ 2,480,720 $ 7.69
Majors (2) 10 273,549 4,346,639 15.89
Specialty 128 454,076 10,787,450 23.76
Food Court 1 10,083 655,395 65.00
-----------------------------------------------------------------
142 1,060,152 $ 18,270,204 $ 17.23
Total Mills with Joint Ventures:
Anchors (2) 47 4,059,107 $ 31,402,292 $ 7.74
Majors (2) 100 2,953,861 35,944,636 12.17
Specialty 1,350 4,630,502 109,424,182 23.63
Food Court 88 120,387 6,611,445 54.92
-----------------------------------------------------------------
1,585 11,763,857 $ 183,382,555 $ 15.59
=================================================================
The Block at Orange:
Anchors (2) 2 172,785 $ 3,467,818 $ 20.07
Majors (2) 7 186,916 2,846,712 15.23
Specialty 71 208,080 6,280,532 30.18
Food Court 10 12,938 958,121 74.05
-----------------------------------------------------------------
90 580,719 $ 13,553,183 $ 23.34
Community Centers:
Anchors (2) 7 596,017 $ 3,752,616 $ 6.30
Majors (2) 19 611,726 4,311,154 7.05
Specialty 187 681,285 9,156,986 13.44
Food Court - - - -
-----------------------------------------------------------------
213 1,889,028 $ 17,220,756 $ 9.12
=================================================================
Totals:
Anchors (2) 56 4,827,909 $ 38,622,726 $ 8.00
Majors (2) 126 3,752,503 43,102,502 11.49
Specialty 1,608 5,519,867 124,861,700 22.62
Food Court 98 133,325 7,569,566 56.78
-----------------------------------------------------------------
1,888 14,233,604 $ 214,156,494 $ 15.05
=================================================================
</TABLE>
(1) Excludes 963,173 square feet of gross leaseable area owned by tenants as
follows: Potomac Mills - 80,000; Franklin Mills - 209,612 square feet;
Sawgrass Mills - 281,774 square feet; Gurnee Mills - 250,806 square feet;
Ontario Mills - 125,000 square feet; and Community Centers - 15,981 square
feet. Ground leases at Franklin Mills of 152,370 square feet and Grapevine
Mills of 177,063 square feet are also excluded.
(2) Anchor tenants are defined as any tenant whose GLA equals or exceeds
50,000 sq. ft. and Major tenants are defined as any tenant whose GLA
equals or exceeds 20,000 sq. ft. but is less than 50,000 sq. ft..
16
<PAGE> 14
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 three months ended March
31, 2000 and for the years ended December 31, 1999, 1998, 1997, and 1996.
<TABLE>
<CAPTION>
ANCHOR STORES
----------------------------------------------------------------------------------
STORE OPENINGS STORE CLOSINGS RELEASING
DURING YEAR DURING YEAR SPREAD (2)
------------------------- -------------------------- ------------------------
AVERAGE AVERAGE
BASE RENT TOTAL BASE RENT TOTAL
PER SQ. FT. SQ. FT. PER SQ. FT. SQ. FT.
------------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
POTOMAC MILLS 2000 $ - - $ - - $ - -
1999 12.00 24,077 - - N/A N/A
1998 11.52 65,028 9.46 70,490 2.06 21.75%
1997 7.71 73,432 6.30 97,820 1.41 22.33%
1996 11.43 33,406 11.55 15,178 (0.12) (1.04%)
$
FRANKLIN MILLS 2000 $ - - $ - - - -
1999 - - 7.24 67,555 N/A N/A
1998 13.33 100,127 6.49 85,242 6.85 105.60%
1997 11.27 85,072 7.53 85,072 3.74 49.74%
1996 10.41 18,247 10.25 20,000 0.16 1.56%
GURNEE MILLS 2000 $ - - $ - - $ - -
1999 8.60 55,970(3) - - N/A N/A
1998 7.10 40,752 6.45 40,752 0.65 10.08%
1997 4.92 184,259(3) - - N/A N/A
1996 30.00 20,000 - - N/A N/A
$
SAWGRASS MILLS 2000 $ - - $ - - - -
1999 - - 15.00 28,152 N/A N/A
1998 15.00 28,152 15.00 28,152 - -
1997 8.91 50,579 8.93 50,579 (0.02) (0.21%)
1996 26.39 20,000 14.86 39,275 11.53 77.59%
ONTARIO MILLS 2000 $ - - $ - - $ - -
1999 11.82 135,707(4) 6.33 16,595 5.49 86.73%
1998 - - - - -
GRAPEVINE MILLS 2000 $ - - $ - - $ - -
1999 8.78 82,000(5) - - N/A N/A
$
ARIZONA MILLS 2000 $ - - $ - - - -
1999 - - - - - -
TOTAL MILLS 2000 $ - - $ - - $ - -
1999 10.39 297,754 9.05 112,302 1.34 14.81%
1998 11.94 234,059 8.48 224,636 3.46 40.86%
1997 7.33 393,342 7.32 233,471 0.01 0.15%
1996 18.54 91,653 12.95 74,453 5.59 43.17%
</TABLE>
<TABLE>
<CAPTION>
SPECIALTY STORES
----------------------------------------------------------------------------------
STORE OPENINGS STORE CLOSINGS RELEASING
DURING YEAR DURING YEAR SPREAD (2)
------------------------- ------------------------- --------------------------
AVERAGE AVERAGE
BASE RENT TOTAL BASE RENT TOTAL
PER SQ. FT. SQ. FT. PER SQ. FT. SQ. FT.
------------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
POTOMAC MILLS 2000 $ 28.74 26,011 $ 22.89 31,409 $ 5.85 25.57%
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%
FRANKLIN MILLS 2000 $ 29.10 17,637 $ 23.41 21,273 $ 5.69 24.30%
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%
GURNEE MILLS 2000 $ 27.43 10,604 $ 21.71 26,032 $ 5.72 26.32%
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%
SAWGRASS MILLS 2000 $ 30.26 14,779 $ 28.63 23,145 $ 1.63 5.71%
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%
ONTARIO MILLS 2000 $ 40.00 1,071 $ 23.33 14,646 $ 16.67 71.44%
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 2000 $ 23.26 6,947 $ 24.77 29,977 $ (1.51) (6.10%)
1999 26.81 9,195 27.27 30,776 (0.46) (1.70%)
ARIZONA MILLS 2000 $ 47.38 1,815 $ 23.32 22,596 $ 24.06 103.17%
1999 26.83 16,566 27.49 22,020 (0.66) (2.40%)
TOTAL MILLS 2000 $ 29.03 78,864 $ 23.99 169,078 $ 5.04 21.01%
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%
</TABLE>
<TABLE>
<S> <C>
(1) Katy Mills, Concord Mills, The Oasis at Sawgrass, and The Block at
Orange are excluded from this analysis, due to still being in their
initial lease-up phase. For the same reason, Ontario Mills for 1997 and
Grapevine Mills and Arizona Mills for 1998 are excluded.
(2) The releasing spread is calculated as the difference between per square
foot openings and per square foot closings for the three months ended
March 31, 2000, and for the years ended December 31, 1999, 1998, 1997
and 1996. Openings and closings include renewals but exclude exercised
options. The releasing spreads for the three months ended March 31,
2000 may not be representative of annualized leasing spreads due to the
limited time period.
(3) For 1997, primarily consists of expansion space related to two anchor
stores, Bass Pro and Computer City comprising 125,000 sq. ft. and
25,000 sq. ft., respectively. 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) Consists of expansion space related to Polar Ice.
Note: Totals may not sum due to rounding
</TABLE>
17
<PAGE> 15
AVERAGE RENTS
The following table sets forth, for the three months ended March 31, 2000 and
each of the last four years, certain information regarding operating trends
with respect to the existing Mills and The Block at Orange.
<TABLE>
<CAPTION>
MINIMUM RENT PLUS PERCENTAGE RENT
----------------------------------
TOTAL STORES
AVERAGE ----------------------------------
PERCENT
LEASED (1) TOTAL PER SQ. FT.
---------- --------------- ---------------
<S> <C> <C> <C>
POTOMAC MILLS
2000 97% $ 22,210,243 $ 14.71
1999 96 22,184,170 14.78
1998 95 21,443,619 14.43
1997 96 20,980,272 14.04
1996 96 20,865,975 14.00
FRANKLIN MILLS
2000 91% 18,549,496 13.35
1999 95 18,889,430 13.05
1998 94 17,689,143 12.38
1997 92 16,549,052 11.47
1996 92 16,318,689 11.40
SAWGRASS MILLS
2000 95% 26,665,139 17.34
1999 (2) 97 27,047,670 17.21
1998 (2) 98 26,969,276 17.29
1997 (2) 97 26,448,955 17.08
1996 98 25,787,924 16.55
GURNEE MILLS
2000 96% 18,636,102 13.47
1999 96 18,652,338 13.60
1998 96 17,525,250 13.06
1997 91 15,900,406 13.80
1996 90 15,340,496 13.62
ONTARIO MILLS
2000 97% 21,144,425 16.20
1999 98 19,953,687 16.35
1998 98 19,516,934 16.50
1997 95 18,708,479 17.11
GRAPEVINE MILLS
2000 97% 23,808,244 16.36
1999 (3) 97 21,608,407 17.78
1998 95 21,108,019 18.03
ARIZONA MILLS
2000 97% 21,737,543 18.11
1999 97% 21,527,568 17.97
1998 95 19,165,290 16.82
THE OASIS AT SAWGRASS
2000 92% 6,565,056 31.06
CONCORD MILLS
2000 89% 20,567,269 18.74
KATY MILLS
2000 91% 19,599,102 18.53
TOTAL - MILLS
2000 94% $ 199,482,619 $ 16.42
1999 97 149,863,270 15.73
1998 96 143,417,531 15.41
1997 94 98,587,164 14.65
1996 94 78,313,084 13.97
<CAPTION>
MINIMUM RENT PLUS PERCENTAGE RENT
-----------------------------------
ANCHOR STORES
-----------------------------------
TOTAL PER SQ. FT.
----------------- ---------------
<S> <C> <C>
POTOMAC MILLS
2000 $ 6,504,705 $ 7.07
1999 6,228,103 6.93
1998 6,001,966 6.75
1997 6,284,111 6.86
1996 6,142,999 6.76
FRANKLIN MILLS
2000 6,743,563 7.79
1999 6,799,317 7.44
1998 6,050,348 6.61
1997 5,700,661 6.05
1996 5,291,698 5.67
SAWGRASS MILLS
2000 7,013,076 7.81
1999 (2) 7,428,095 8.10
1998 (2) 7,265,079 8.13
1997 (2) 7,384,896 8.28
1996 7,150,346 8.03
GURNEE MILLS
2000 5,719,741 6.93
1999 5,350,186 6.71
1998 5,022,342 6.52
1997 4,418,036 7.42
1996 3,823,991 6.78
ONTARIO MILLS
2000 9,111,343 10.89
1999 7,716,126 10.69
1998 7,300,086 10.61
1997 6,358,058 10.11
GRAPEVINE MILLS
2000 11,311,456 11.86
1999 (3) 8,986,655 12.75
1998 8,797,950 12.74
ARIZONA MILLS
2000 8,268,108 11.80
1999 8,158,743 11.71
1998 7,262,540 10.83
THE OASIS AT SAWGRASS
2000 1,626,254 21.57
CONCORD MILLS
2000 7,898,713 11.79
KATY MILLS
2000 7,439,006 12.48
TOTAL - MILLS
2000 $71,635,965 $ 9.76
1999 50,667,225 8.97
1998 47,700,311 8.65
1997 30,145,762 7.58
1996 22,409,034 6.80
<CAPTION>
MINIMUM RENT PLUS PERCENTAGE RENT
-----------------------------------
SPECIALTY STORES
-----------------------------------
TOTAL PER SQ. FT.
----------------- ----------------
<S> <C> <C>
POTOMAC MILLS
2000 $15,705,538 $ 26.67
1999 15,956,067 26.31
1998 15,441,653 25.91
1997 14,696,161 25.44
1996 14,722,976 23.32
FRANKLIN MILLS
2000 11,805,933 22.56
1999 12,090,113 22.67
1998 11,638,795 22.64
1997 10,848,391 21.68
1996 11,026,991 22.16
SAWGRASS MILLS
2000 19,652,063 30.72
1999 (2) 19,619,575 30.00
1998 (2) 19,704,197 29.57
1997 (2) 19,064,059 29.04
1996 18,637,578 27.90
GURNEE MILLS
2000 12,916,361 23.14
1999 13,302,152 23.20
1998 12,502,908 21.85
1997 11,482,370 20.63
1996 11,516,505 20.50
ONTARIO MILLS
2000 12,033,082 25.67
1999 12,237,561 24.55
1998 12,216,848 24.68
1997 12,350,421 26.59
GRAPEVINE MILLS
2000 12,496,788 24.92
1999 (3) 12,621,752 24.72
1998 12,310,069 25.63
ARIZONA MILLS
2000 13,469,435 26.97
1999 13,368,825 26.69
1998 11,902,750 25.41
THE OASIS AT SAWGRASS
2000 4,932,802 36.31
CONCORD MILLS
2000 12,668,556 29.65
KATY MILLS
2000 12,160,096 26.34
TOTAL - MILLS
2000 $127,846,654 $ 26.61
1999 99,196,045 25.61
1998 95,717,220 25.24
1997 68,441,402 24.84
1996 55,904,050 24.21
</TABLE>
- ---------------------------
(1) Average percent leased is defined as total average space leased and for
which rent was being paid excluding tenants with leases having a term of
less than one year.
(2) Annual rent excludes $500,000 of ground lease rent for 1999 and $800,000
of ground lease rent for 1998 and 1997.
(3) Annual rent excludes$1,014,839 of rent for 1999 related to a tenant that
occupies space that is outside the service road which encompasses the
mall.
Note: The above amounts do not include Mainstreet retail income of
$2,423,346 for 1999, $2,205,661 for 1998, $2,066,991 for 1997, and
$2,088,000 for 1996. 2000 includes an estimate of annualized
percentage rent.
18
<PAGE> 16
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 RENT
-------------------------------------------------------------------
TOTAL STORES ANCHOR STORES
AVERAGE -------------------------------------------------------------------
PERCENT
LEASED (1) TOTAL PER SQ. FT. TOTAL PER SQ. FT.
---------- --------------- --------------- ----------------- ---------------
<S> <C> <C> <C> <C> <C>
THE BLOCK AT ORANGE
2000 92% $ 16,288,683 $ 27.43 $ 6,718,463 $ 18.68
1999 93 16,282,327 27.10 6,715,008 18.67
TOTAL (INCL THE BLOCK)
2000 94% $ 215,771,302 $ 16.94 $ 78,354,428 $ 10.17
1999 96 166,145,597 16.41 57,382,233 9.55
<CAPTION>
MINIMUM RENT PLUS PERCENTAGE RENT
--------------------------------
SPECIALTY STORES
--------------------------------
TOTAL PER SQ. FT.
--------------- ---------------
<S> <C> <C>
THE BLOCK AT ORANGE
2000 $ 9,570,220 $ 40.87
1999 9,567,319 39.67
TOTAL (INCL THE BLOCK)
2000 $ 137,416,874 $ 27.27
1999 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 $557,215
for 2000, $2,423,346 for 1999, $2,205,661 for 1998, $2,066,991 for
1997, and $2,088,000 for 1996. 2000 includes an estimate of
annualized percentage rent.
19
<PAGE> 17
THE MILLS CORPORATION
SUMMARY OF OUTSTANDING CONSOLIDATED INDEBTEDNESS
(DOLLARS IN THOUSANDS)
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
Principal Annual
Balance Interest Maturity
(000's) Interest Rate Type Rate Date
------- ------------------ ----- ----
<S> <C> <C> <C> <C>
Potomac Mills/Gurnee Mills:
Tranche A $201,838 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 107,225 Fixed 7.882% 6/1/2027 (3)
Mortgage Loan 19,506 Fixed 7.440% 6/1/1927 (3)
Mortgage Loan 12,762 Fixed 6.220% 6/1/1927 (3)
Sawgrass Mills 277,750 Variable 275 bp over Libor 6/18/2001
Ten Community Centers 111,410 Fixed 7.300% 2/1/2029
Concord Mills Residual III 8,788 Variable 200 bp over Libor 12/31/2000
------------
Total Property Mortgages 811,279
------------
Corporate Misc 249 Fixed 8.250% 10/31/2000
Corporate Misc 2,400 Fixed 6.200% 7/15/2000
Corporate Line of Credit 90,000 Variable 150 bp over Libor 5/31/2000 (8)
Sawgrass Residual 4,266 Variable 165 bp over Libor 1/18/2001
------------
Total $908,194
============
</TABLE>
<TABLE>
<CAPTION>
Annual Earliest day Recourse to
Interest at which debt Company or
(000's) can be repaid Op. Ptnrshp
------- ------------- -----------
<S> <C> <C> <C>
Potomac Mills/Gurnee Mills:
Tranche A $ 13,936 (2) 0%
Tranche B 1,896 (2) 0%
Tranche C 1,085 (2) 0%
Tranche D 2,310 (2) 0%
Franklin Mills and Liberty Plaza 0%
Tranche A 8,451 (4) 0%
Mortgage Loan 1,451 (4) 0%
Mortgage Loan 794 (4) 0%
Sawgrass Mills 24,671 (5) 0%
Ten Community Centers 8,133 (11) 0%
Concord Mills Residual III 715 (12) 100%
-----------
Total Property Mortgages 63,442
-----------
Corporate Misc 21 (9) 0%
Corporate Misc 149 (9) 0%
Corporate Line of Credit 6,869 (6) (7), (8) 100%
Sawgrass Residual 331 (6) (10) 0%
-----------
Total $ 70,812
===========
</TABLE>
(1) This indebtedness is a 30 year amortizing loan with an anticipated
balloon repayment on December 18, 2003. In the event the mortgage loan
is not repaid by the anticipated balloon repayment date, the annual
interest rate for each tranche will be increased by 2% per annum in
excess of the stated interest rate. In addition, excess cash flow
available after payment of the increased interest rate and scheduled
amortization will be used to reduce the principal balance of the loan.
Principal repayments are based on the scheduled amortization, assuming a
7% mortgage interest rate, over a 30 year period, with the monthly
amortization payments being applied sequentially, beginning with Tranche
A to reduce the principal balance.
(2) Prepayments, in whole or in part, are permitted upon at least 15 days
notice. In addition, the Company is required to pay a prepayment
penalty equal to the greater of (i) 1% of the remaining principal
balance or (ii) a yield preservation payment. Generally, yield
preservation payments are intended to compensate the lender for the
total amount of interest it would have earned on the indebtedness but
for the repayment, less the amount of interest that the lender could
have earn if it invested the repayment in United States Treasury
obligations or other similar securities from the date of the repayment
through the maturity date of the indebtedness.
(3) This indebtedness is a 30 year amortizing loan with an anticipated
balloon repayment on May 5, 2007. In the event the mortgage loan is not
repaid by the anticipated balloon repayment date, the annual interest
rate will be increased by 5% per annum in excess of the stated interest
rate. In addition, excess cash flow available after payment of the
increased interest rate and scheduled amortization will be used to
reduce the principal balance of the loan.
(4) This indebtedness may be prepaid, without a prepayment penalty, beginning
180 days prior to May 5, 2007. Prior to that date, there is no right to
prepay the indebtedness, except that $12.5 million of the principal
balance, which has been allocated to the Liberty Plaza shopping center,
may be defeased through the establishment of defeasance collateral (which
may include government or agency securities that have the full faith and
credit of the United States government).
(5) The indebtedness is a non-amortizing loan with an anticipated balloon
payment date of On June 18, 2001. The loan bears interest at a January
31, 2000, the loan was repaid with proceeds of a new $285,000 permanent
loan. The new indebtedness is a non-amortizing variable rate of 275 bp
over Libor. Prepayment of the entire loan balance is permitted with a
prepayment penalty of $2,215.
(6) Calculated using 30-day LIBOR at 6.1325%, which was the rate at March 31,
2000.
(7) Prepayable, in whole or in part, at any time without prepayment penalty.
(8) 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 3/31/00). The Company is currently negotiating with the lender to
increase the line of credit to $125,000 and will extend the term of the
loan.
(9) Primarily corporate debt with maturities under one year. Prepayable, in
whole or in part, at any time without prepayment penalty.
(10) Prepayable, in whole or in part, at any time, upon 3 days prior notice to
lender without prepayment penalty.
(11) The 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.
(12) 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.
20
<PAGE> 18
THE MILLS CORPORATION
SUMMARY OF OUTSTANDING UNCONSOLIDATED INDEBTEDNESS
(DOLLARS IN THOUSANDS)
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
Principal Annual
Balance Total Interest Rate Interest
(000's) Commitment Type Rate
------ ---------- ---- ----
<S> <C> <C> <C> <C>
Arizona Mills $ 142,214 142,214 Variable 130 bp over Libor (5)
Grapevine Mills 155,000 155,000 Fixed 6.465%
Ontario Mills 143,221 145,000 Fixed 6.750%
City Block at Orange 127,978 136,000 Variable 135 bp over Libor (6)
Sawgrass Phase III 44,000 44,000 Variable 110 bp over Libor (7)
Sawgrass Phase III 2,806 6,500 Variable 275 bp over Libor
Concord Mills 176,643 199,000 Variable 120 bp over Libor (13)
Katy Mills 153,404 168,000 Variable 175 bp over Libor
Opry Mills 73,140 168,000 Variable 200 bp over Libor
Arundel Mills 10,000 10,000 Variable 165 bp over Libor
Sugarloaf Mills 12,000 12,000 Variable 350 bp over Libor
--------------- ---------------
Total $ 1,040,406 1,185,714
=============== ===============
<CAPTION>
Annual Earliest day Recourse to
Maturity Interest at which debt Company or
Date (000's) can be repaid Op. Ptnrshp
---- ------- ------------- -----------
<S> <C> <C> <C> <C>
Arizona Mills 2/1/2002 $10,570 (4) (1) 9.2% (10)
Grapevine Mills 9/1/2032 (8) 10,021 (2) 0.0%
Ontario Mills 12/1/2028 (9) 9,667 (3) 0.0%
City Block at Orange 1/22/2002 9,576 (4) (3) 26.7% (11)
Sawgrass Phase III 1/18/2001 3,182 (4) (15) 0.0% (12)
Sawgrass Phase III 1/18/2001 249 (4) (15) 0.0% (12)
Concord Mills 12/2/2001 12,952 (4) (2) 10.0% (13)
Katy Mills 3/31/2002 12,092 (4) (15) 25.0% (14)
Opry Mills 10/1/2002 5,948 (4) (16) 100.0% (17)
Arundel Mills 12/9/2000 778 (4) (18) 50.0% (19)
Sugarloaf Mills 12/20/2000 1,156 (4) (18) 100.0% (20)
---------
Total $76,191
=========
</TABLE>
(1) The indebtedness may be prepaid, in whole or in part, upon 5 business
days notice to the Administrative Agent, provided that (i) an partial
prepayment shall be in principal amount of not less than $1 million and
an integral multiple of $100,000; and (ii) each prepayment under this
shall include all interest accrued on the amount of principal prepaid
(and all late charges and other sums that may be payable) through the
date of prepayment.
(2) This indebtedness may be prepaid, in whole or in part, upon 3 business
days notice to the Administrative Agent.
(3) The Company shall have the right to make prepayments of the loan, without
penalty and a late charge, as the case may be following the occurrence of
an Event of Default under any of the Loan Documents), in whole or in
part, upon not less than 5 Business Days prior written notice to Lender.
No prepayment of all or part of the Loan, including any mandatory
prepayment of the Loan made as a result of an acceleration of the Loan or
pursuant to the immediately preceding sentence, shall be permitted unless
same is made together with the payment of all interest accrued on the
Loan through the date of prepayment and an amount equal to all Breakage
Costs and reasonable, out-of-pocket attorneys' fees and disbursements
incurred by Lender and any participants in good faith as a result of the
prepayment.
(4) Calculated using 30-day LIBOR at 6.1325%, which was the rate at March 31,
2000.
(5) The loan is a construction facility with a maximum availability of
$142,214. The rate is capped at 9.5% until maturity, plus credit spread,
based on one month LIBOR.
(6) Interest Rate shall be LIBOR plus (a) 165 basis points until the
following conditions have been satisfied: (i) the Construction Phase
Completion Date has occurred, (ii) the Grand Opening Date has occurred,
(iii) 33% of the Specialty Space has been and continues to be leased to
Specialty Tenants and 55% of the Anchor Space has been and continues to
be leased to Anchors, (iv) the DSC Ratio for any Calculation Period is
equal to or greater than 1.00 and (v) no Event of Default is continuing.
Once these conditions have been satisfied the Interest Rate shall be
LIBOR plus 150 bp. A further reduction to Libor plus 135 bp shall occur
once the DSC Ratio for any period is equal to or greater than 1.25.
Interest Rate will reduce to LIBOR plus 125 bp when the DSC Ratio for any
period is equal to or greater than 1.40. Interest Rate will reduce to
LIBOR plus 115 bp when the DSC Ratio for any period is equal to or
greater than 1.50.
(7) Interest Rate shall be LIBOR plus (a) 165 basis points until the
following conditions have been satisfied: (i) the Construction Phase
Completion Date has occurred and the project has achieved a DSC ratio of
1.00, the interest rate shall be LIBOR plus 150 bp; (ii) the project has
achieved a DSC ratio of 1.30 and a debt yield of 12.0% for a minimum of
three months, the interest rate shall be LIBOR plus 125 bp; (iii) the
project has achieved a DSC ratio of 1.35 and a debt yield of 12.5% for a
subsequent three months, the interest rate will be LIBOR plus 110 bp.
(8) This indebtedness is a 30 year amortizing loan with an anticipated
repayment date on October 1, 2008. The loan has an interest only period
through September 1, 2002. In the event the mortgage loan is not repaid by
the anticipated balloon repayment date, the annual interest rate will be
the greater of (i) the loan interest rate plus 2% or (ii) the yield
calculated by linear interpolation of the yields of noncallable United
States Treasury obligations with terms (one longer and one shorter) most
nearly approximating the period from such date of determination to the
anticipated repayment date.
(9) This indebtedness is a 30 year amortizing loan with an anticipated
repayment date on December 1, 2008. In the event the mortgage is not
repaid by the anticipated balloon repayment date, the annual interest rate
will be the greater of (i) the loan interest rate plus 5% or (ii) the
Treasury Rate plus 5%.
(10) Principal is guaranteed on a several basis by each partner (the Company's
share is 36.8%) reduced as follows: (i) as of closing, the "Guaranteed
Amount" was 100% of Loan Amount; (ii) upon completion of construction,
opening and achieving $16,000 of "In-Place Minimum Rent," the Guaranteed
Amount will reduce to 50%; (iii) upon achieving a 13.5% "Debt Yield,"
("Debt Yield" is defined as EBITDA to total loan commitment) the
Guaranteed Amount will reduce to 25% of the Loan Amount; (iv) upon
achieving a 15% "Debt Yield," the Guaranteed Amount will reduce to 15%
of the Loan Amount; and (v) upon achieving a 17% Debt Yield and an
appraised value indicating a loan to value ratio of no greater than 55%,
the Guaranteed Amount will reduce to $0. As of March 31, 2000, the
Company's share of the Guaranteed Amount was reduced from 36.8% to 9.2%
according to the above formula.
(11) Principal is guaranteed by the Company, reduced as follows: (i) as of
closing, the "Guaranteed Amount" was 100% of Loan Amount; (ii) upon
construction completion, grand opening and a Debt Service Coverage ratio
of 1.00 the Guaranteed Amount will reduce to $68,000; (iii) upon
achieving a DSC ratio of 1.25 the Guaranteed Amount will reduce to
$34,000; (iv) upon achieving a DSC Ratio of 1.40 the Guaranteed Amount
will reduce to 10%; and (v) upon achieving a DSC Ratio of 1.50 the
Guaranteed Amount will reduce to 0%. As of March 31, 2000 the guarantee
amount was $34,000.
(12) Principal is guaranteed by the Company, reduced as follows: (i) as of
closing, the "Guaranteed Amount" was 100% of Loan Amount; (ii) upon
achieving a DSC Ratio of 1.35 and a debt yield of 12.5% will reduce to
0%. As of March 31, 2000, the guarantee amount was 0%.
(13) The loan commitment has a term of three years with two one-year options.
The interest rate will be Libor plus 135 basis points until completion and
occupancy requirements are met. Once achieved, the interest rate will be
Libor plus 120 basis points. The interest rate can be further reduced to
Libor plus 110 basis points when the project achieves a debt service
coverage for three months of 1.35. The new loan is guaranteed severally
by the Company (50%) and Simon Property Group, L.P. (50%) and can be
reduced as follows: (i) as of closing, the "Guaranteed Amount" was 100% of
loan amount; (ii) 50% upon achieving completion and occupancy
requirements; (iii) 35% upon achieving a DSC ratio of 1.20 for three
consecutive months; (iv) 20% upon achieving a DSC ratio of 1.35 for three
consecutive months subsequent to the prior condition. As of March 31,
2000, the guarantee amount was 10%.
(14) The loan commitment has a term of three years with a one-year extension
option. The principal is guaranteed by the Company and can be reduced as
follows: (i) as of closing, the "Guaranteed Amount" was 100% of loan
amount; (ii) upon completion of construction, grand opening and a Debt
Service Coverage ratio of 1.00 the Guaranteed Amount will reduce to 50%;
(iii) upon achieving a Debt Service Coverage ratio of 1.25 the Guaranteed
Amount will reduce to 25%. As of March 31, 2000, the guarantee amount was
25%.
(15) This indebtedness may be prepaid, in whole or in part, upon 5 business
days notice to the Administrative Agent.
(16) The indebtedness may be prepaid, in whole or in part, upon 3 business
days notice to the Administrative Agent, provided that each prepayment
under this loan shall include all interest accrued on the amount of
principal prepaid (and all late charges and other sums that may be
payable) through the date of prepayment.
(17) The 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.
21
<PAGE> 19
THE MILLS CORPORATION
GROSS TENANT REPORTED SALES (1) (2)
MARCH 31, 2000
<TABLE>
<CAPTION>
Twelve Months ended March 31, 2000 Twelve Months ended March 31, 1999
------------------------------------ --------------------------------------
Sq Ft Sales psf Sq Ft Sales psf
----- ----- --- ----- ----- ---
<S> <C> <C> <C> <C> <C> <C>
Potomac Mills:
Anchor/Majors 909,858 $ 206,081,187 $ 226 904,826 $194,776,724 $ 215
Specialty 584,207 193,630,312 331 584,059 187,087,091 320
Temporary/Kiosk - 4,524,187 - - 5,077,507 -
-------------------------------------- ---------------------------------------
1,494,065 $ 404,235,686 $ 271 1,488,885 $386,941,322 $ 260
Franklin Mills:
Anchor/Majors 956,789 $ 157,426,586 $ 165 981,348 156,995,958 $ 160
Specialty 516,725 165,044,020 319 540,324 161,506,770 299
Temporary/Kiosk - 5,766,896 - - 2,924,479 -
-------------------------------------- ---------------------------------------
1,473,514 $ 328,237,502 $ 223 1,521,672 321,427,207 $ 211
Sawgrass Mills:
Anchor/Majors 1,133,775 $ 346,459,410 $ 306 1,226,593 347,580,604 $ 283
Specialty 642,871 278,882,369 434 663,410 295,500,839 445
Temporary/Kiosk - 10,904,907 - - 9,933,193 -
-------------------------------------- ---------------------------------------
1,776,646 $ 636,246,686 $ 358 1,890,003 653,014,636 $ 346
Gurnee Mills:
Anchor/Majors 837,424 $ 138,378,972 $ 165 825,925 140,331,068 $ 170
Specialty 554,590 164,676,367 297 572,137 160,611,454 281
Temporary/Kiosk - 7,113,366 - - 6,416,242 -
-------------------------------------- ---------------------------------------
1,392,014 $ 310,168,705 $ 223 1,398,062 307,358,764 $ 220
Ontario Mills:
Anchor/Majors 900,958 $ 149,732,671 $ 166 839,068 135,438,800 $ 161
Specialty 471,040 173,894,528 369 484,657 168,313,818 347
Temporary/Kiosk - 7,415,951 - - 8,204,025 -
-------------------------------------- ---------------------------------------
1,371,998 $ 331,043,150 $ 241 1,323,725 311,956,643 236
Grapevine Mills:
Anchor/Majors 854,482 $ 187,169,681 $ 219 689,039 114,761,275 $ 167
Specialty 502,463 149,067,457 297 494,393 146,276,684 296
Temporary/Kiosk - 8,056,594 - - 9,210,464 -
-------------------------------------- ---------------------------------------
1,356,945 $ 344,293,732 $ 254 1,183,432 270,248,423 $ 228
Arizona Mills:
Anchor/Majors 686,380 $ 119,437,835 $ 174 673,225 113,937,091 $ 169
Specialty 485,171 153,155,303 316 470,756 138,589,961 294
Temporary/Kiosk - 6,054,356 - - 10,433,707 -
-------------------------------------- ---------------------------------------
1,171,551 $ 278,647,494 $ 238 1,143,981 262,960,759 $ 230
Total Mills
Anchor/Majors 6,279,666 $1,304,686,342 $ 208 6,140,024 1,203,821,520 $ 196
Specialty 3,757,067 1,278,350,356 340 3,809,736 1,257,886,617 330
Temporary Kiosk - 49,836,257 - - 52,199,617 -
-------------------------------------- ---------------------------------------
10,036,733 $2,632,872,955 $ 262 9,949,760 2,513,907,754 $ 253
====================================== =======================================
The Block at Orange
Anchor/Majors 357,875 $ 62,451,708 $ 175 N/A (1) N/A (1) N/A (1)
Specialty 236,494 81,508,401 345 N/A (1) N/A (1) N/A (1)
Temporary/Kiosk - 6,374,024 - N/A (1) N/A (1) N/A (1)
-------------------------------------- ---------------------------------------
594,369 $ 150,334,133 $ 253 N/A (1) N/A (1) N/A (1)
Total Mills and The Block
Anchor/Majors 6,637,541 $1,367,138,050 $ 206 6,140,024 1,203,821,520 $ 196
Specialty 3,993,561 1,359,858,757 341 3,809,736 1,257,886,617 330
Temporary Kiosk - 56,210,281 - - 52,199,617 -
-------------------------------------- ---------------------------------------
10,631,102 $2,783,207,088 $ 262 9,949,760 $2,513,907,754 $ 253
====================================== =======================================
<CAPTION>
Twelve Months ended December 31, 1999
--------------------------------------
Sq Ft Sales psf
----- ----- ----
<S> <C> <C> <C>
Potomac Mills:
Anchor/Majors 908,839 $ 203,605,964 $ 224
Specialty 589,380 194,162,316 329
Temporary/Kiosk - 4,402,397 -
--------------------------------------
1,498,219 $ 402,170,677 $ 268
Franklin Mills:
Anchor/Majors 958,557 $ 161,484,240 $ 168
Specialty 522,365 164,958,255 316
Temporary/Kiosk - 6,502,230 -
--------------------------------------
1,480,922 $ 332,944,725 $ 225
Sawgrass Mills:
Anchor/Majors 1,140,813 $ 342,642,918 $ 300
Specialty 648,498 282,866,635 436
Temporary/Kiosk - 9,002,205 -
--------------------------------------
1,789,311 $ 634,511,758 $ 355
Gurnee Mills:
Anchor/Majors 832,290 $ 139,416,739 $ 168
Specialty 567,505 164,669,598 290
Temporary/Kiosk - 7,067,600 -
--------------------------------------
1,399,795 $ 311,153,937 $ 222
Ontario Mills:
Anchor/Majors 871,267 $ 145,908,434 $ 167
Specialty 479,270 173,224,557 361
Temporary/Kiosk - 7,306,868 -
--------------------------------------
1,350,537 $ 326,439,859 $ 242
Grapevine Mills:
Anchor/Majors 803,425 $ 172,500,779 $ 215
Specialty 506,035 150,259,271 297
Temporary/Kiosk - 9,030,995 -
--------------------------------------
1,309,460 $ 331,791,045 $ 253
Arizona Mills:
Anchor/Majors 674,963 $ 118,027,825 $ 175
Specialty 489,120 150,345,621 307
Temporary/Kiosk - 7,321,984 -
--------------------------------------
1,164,083 $ 275,695,430 $ 237
Total Mills
Anchor/Majors 6,190,154 $1,283,586,899 $ 207
Specialty 3,802,173 1,280,486,253 337
Temporary Kiosk - 50,634,279 -
-------------------------------------
9,992,327 $2,614,707,431 $ 262
======================================
The Block at Orange
Anchor/Majors 357,956 $ 63,274,627 $ 177
Specialty 239,765 80,930,385 338
Temporary/Kiosk - 7,208,445 -
--------------------------------------
597,721 $ 151,413,457 $ 253
Total Mills and The Block
Anchor/Majors 6,548,110 $1,346,861,526 $ 206
Specialty 4,041,938 1,361,416,638 337
Temporary Kiosk - 57,842,724 -
--------------------------------------
10,590,048 $2,766,120,888 $ 261
======================================
</TABLE>
(1) The Oasis at Sawgrass, Concord Mills, and Katy Mills are excluded from
this analysis, since they did not open until April 1999, September 1999,
and October 1999, respectively, and do not have twenty-four months of
sales data for comparison.
(2) Anchor/Major sales include sales from certain anchor tenants that own
their parcels.
22
<PAGE> 20
THE MILLS CORPORATION
COMPARABLE SPECIALTY STORE TENANT SALES
THREE MONTHS 2000 VS. THREE MONTHS 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
YTD YTD
Mar. 31, 2000 Mar. 31, 1999 Percentage
Sales Sales Change
----- ----- ------
Property Name:
- -------------
<S> <C> <C> <C>
Potomac Mills $ 32,554 $ 32,977 -1.3%
Franklin Mills 28,361 29,446 -3.7%
Sawgrass Mills 58,292 59,555 -2.1%
Gurnee Mills 26,630 26,370 1.0%
Ontario Mills 30,584 27,709 10.4%
Grapevine Mills 25,994 26,263 -1.0%
Arizona Mills 28,026 26,193 7.0%
----------- ----------- ---------
Total Mills $ 230,441 $ 228,513 0.8%
=========== =========== =========
The Block at Orange $ 14,615 $ 13,797 5.9%
----------- ----------- ---------
Total including The Block $ 245,056 $ 242,310 1.1%
=========== =========== =========
</TABLE>
Note: Comparable sales presented above are based on tenant reported sales for
the three months of 2000 versus the three months of 1999 and include
only those tenants that have been in occupancy for the past 15 months.
23
<PAGE> 21
THE MILLS CORPORATION
CAPITAL EXPENDITURES
<TABLE>
<CAPTION>
MILLS, BLOCK and COMMUNITY CENTERS COMBINED (9, 10)
Three Months Ended Year ended December 31,
March 31, 2000 1999 1998
------------------ ---------------- ---------------
<S> <C> <C> <C>
RECURRING NON-TENANT CAPITAL EXPENDITURES (1)
Costs $ 39,989 $ 284,206 $ 1,356,290
Per Square Foot (2) 0.00 0.03 0.12
RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 687,082 $ 3,934,656 $ 4,497,574
Per Square Foot Improved (4) 9.77 8.52 7.85
Per Square Foot (2) 0.07 0.38 0.46
TOTAL RECURRING COSTS
Costs $ 727,071 $ 4,218,862 $ 5,853,864
Per Square Foot (2) 0.08 0.41 0.58
NON RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 4,909,436 (7) $ 22,811,936 (7) $ 18,774,753 (7)
Per Square Foot Improved (5) 63.00 51.85 71.68
Per Square Foot (2) 0.38 1.91 1.58
WORK IN PROCESS (6)
Cummulative Costs $ 4,823,367 $ 2,676,259 $ 8,447,326
Cummulative Per Square Foot Improved (8) 13.25 18.81 25.99
</TABLE>
(1) Recurring non-tenant capital expenditures include expenditures that are
not tenant related nor recoverable from tenants.
(2) Includes annual costs divided by total GLA (excluding space owned by
certain anchor store tenants) of the Properties
(3) Tenant Improvements/Leasing costs include tenant specific costs
including tenant improvements, tenant allowances and capitalized
internal leasing costs.
(4) Calculated as Recurring Tenant Improvements/Leasing Costs divided by GLA
of all Recurring Store Openings (including spaces requiring no
expenditures).
(5) Calculated as Non-Recurring Tenant Improvements/Leasing Costs divided by
GLA of all Non-Recurring Store Openings.
(6) Work in process that will be shown as Recurring or Non-Recurring when
the work is completed.
(7) Includes expansion costs for Franklin Mills and Gurnee Mills and
non-recurring remerchandising costs. Excludes expansion costs for
Sawgrass Mills Phase III (The Oasis), Ontario Mills and Grapevine Mills.
(8) Calculated as Work In Process divided by GLA of all space with work in
process.
(9) Excludes projects that have not completed at least one full calendar
year of operations.
(10) Capital expenditures include only the Company's share of costs related
to the joint venture projects. The capital expenditures for the twelve
months ended December 31, 1999 and 1998 have been adjusted to include
only the Company's share of costs related to the joint ventures versus
the total costs for the joint ventures as reported previously.
24
<PAGE> 22
THE MILLS CORPORATION
CAPITAL EXPENDITURES
<TABLE>
<CAPTION>
MILLS AND BLOCK PORTFOLIO (9, 10)
Three Months Ended Year ended December 31,
March 31, 2000 1999 1998
----------------- --------------- ---------------
<S> <C> <C> <C>
RECURRING NON-TENANT CAPITAL EXPENDITURES (1)
Costs $ 3,035 $ 111,657 $ 852,262
Per Square Foot (2) 0.00 0.01 0.10
RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 636,783 $ 3,647,528 $ 3,304,643
Per Square Foot Improved (4) 9.90 9.28 8.53
Per Square Foot (2) 0.08 0.44 0.44
TOTAL RECURRING COSTS
Costs $ 639,818 $ 3,759,185 $ 4,156,905
Per Square Foot (2) 0.08 0.45 0.54
NON RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 4,722,793 (7) $ 16,842,194 (7) $ 18,038,585 (7)
Per Square Foot Improved (5) 65.24 64.28 96.48
Per Square Foot (2) 0.44 1.73 1.86
WORK IN PROCESS (6)
Cummulative Costs $ 3,850,162 $ 1,955,746 $ 6,779,660
Cummulative Per Square Foot Improved (8) 17.50 38.97 38.45
</TABLE>
(1) Recurring non-tenant capital expenditures include expenditures that are
not tenant related nor recoverable from tenants.
(2) Includes annual costs divided by total GLA (excluding space owned by
certain anchor store tenants) of the Properties
(3) Tenant Improvements/Leasing costs include tenant specific costs including
tenant improvements, tenant allowances and capitalized internal leasing
costs.
(4) Calculated as Recurring Tenant Improvements/Leasing Costs divided by GLA
of all Recurring Store Openings (including spaces requiring no
expenditures).
(5) Calculated as Non-Recurring Tenant Improvements/Leasing Costs divided by
GLA of all Non-Recurring Store Openings.
(6) Work in process that will be shown as Recurring or Non-Recurring when
the work is completed.
(7) Includes expansion costs for Franklin Mills and Gurnee Mills and
non-recurring remerchandising costs. Excludes expansion costs for
Sawgrass Mills Phase III (The Oasis), Ontario Mills and Grapevine Mills.
(8) Calculated as Work In Process divided by GLA of all space with work in
process.
(9) Excludes projects that have not completed at least one full calendar
year of operations.
(10) Capital expenditures include only the Company's share of costs related to
the joint venture projects. The capital expenditures for the twelve
months ended December 31, 1999 and 1998 have been adjusted to include
only the Company's share of costs related to the joint ventures versus
the total costs for the joint ventures as reported previously.
25
<PAGE> 23
<TABLE>
<CAPTION>
COMMUNITY CENTERS
Three Months Ended Year ended December 31,
March 31, 2000 1999 1998
----------------- --------------- ---------------
<S> <C> <C> <C>
RECURRING NON-TENANT CAPITAL EXPENDITURES (1)
Costs $ 36,954 $ 172,549 $ 504,028
Per Square Foot (2) 0.02 0.08 0.23
RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 50,299 $ 287,128 $ 1,192,931
Per Square Foot Improved (4) 7.94 3.83 6.10
Per Square Foot (1) 0.02 0.13 0.54
TOTAL RECURRING COSTS
Costs $ 87,253 $ 459,677 $ 1,696,959
Per Square Foot (2) 0.04 0.21 0.77
NON RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 186,643 $ 5,969,742 $ 736,168
Per Square Foot Improved (5) 33.71 33.49 9.76
Per Square Foot (2) 0.08 2.71 0.33
WORK IN PROCESS (6)
Cummulative Costs $ 973,205 $ 720,513 $ 1,667,666
Cummulative Per Square Foot Improved (7) 6.76 7.83 11.22
</TABLE>
(1) Recurring non-tenant capital expenditures include expenditures that are
not tenant related nor recoverable from tenants.
(2) Includes annual costs divided by total GLA (excluding space owned by
certain anchor store tenants) of the Properties
(3) Tenant Improvements/Leasing costs include tenant specific costs
including tenant improvements, tenant allowances and capitalized
internal leasing costs.
(4) Calculated as Recurring Tenant Improvements/Leasing Costs divided by GLA
of all Recurring Store Openings (including spaces requiring no
expenditures).
(5) Calculated as Non-Recurring Tenant Improvements/Leasing Costs divided by
GLA of all Non-Recurring Store Openings.
(6) Work in process that will be shown as Recurring or Non-Recurring when
the work is completed.
(7) Calculated as Work In Process divided by GLA of all space with work in
process.
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