<PAGE> 1
EXHIBIT 99.1
THE MILLS CORPORATION
SUPPLEMENTAL INFORMATION
TABLE OF CONTENTS
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
INFORMATION PAGE
----------- ----
<S> <C>
Overview 5-6
Summary of Operating Properties 7
Summary of Properties Under Construction 8
Supplemental Financial Data 9
Property Operating Income 10-13
Unconsolidated Joint Ventures Net Income
and Funds From Operations 14-15
Occupancy Analysis 16
Lease Expiration Schedule 17-19
Rental Rates 20
Average Rents 21-22
Summary of Outstanding Consolidated Indebtedness 23
Summary of Outstanding Unconsolidated Indebtedness 24
Gross Tenant Reported Sales 25
Comparable Specialty Store Tenant Sales 26
Capital Expenditures 27-29
</TABLE>
<PAGE> 2
THE MILLS CORPORATION
OVERVIEW
THE COMPANY
The Mills Corporation (the "Company") is a fully integrated, self-managed real
estate investment trust ("REIT") .
The Company conducts all of its business through The Mills Limited Partnership
("the Operating Partnership"), in which it owns, as of June 30, 2000, a 1%
interest as the sole general partner and a 58.62% 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 June 30, 2000, the Operating Partnership owns or
holds an interest in the following operating properties:
<TABLE>
<CAPTION>
Mills Location (Metropolitan Market Served)
----- ------------------------------------
<S> <C>
Franklin Mills Philadelphia, PA (Philadelphia)
Gurnee Mills Gurnee, IL (Chicago)
Potomac Mills Woodbridge, VA (Washington, DC)
Sawgrass Mills Sunrise, FL (Ft. Lauderdale)
Ontario Mills Ontario, CA (Los Angeles)
Grapevine Mills Grapevine, TX (Dallas/Fort Worth)
Arizona Mills Tempe, AZ (Phoenix)
The Oasis at Sawgrass Sunrise, FL (Ft. Lauderdale)
Concord Mills Concord, NC (Charlotte)
Katy Mills Houston, TX (Houston)
Opry Mills Nashville, TN (Nashville)
Block
-----
The Block at Orange Orange, CA (Los Angeles)
Community 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
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 June 30,
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 June 30, 2000:
<TABLE>
<CAPTION>
Anchor Specialty
Total Store Store
Metropolitan Year Ownership GLA GLA GLA
Name/Location Area Serviced Opened Percentage (Sq. Ft.)(1) (sq.ft.)(1) (sq.ft.)(1)
--------------------- ------------- ------ ---------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Mills
Potomac Mills......... Washington D.C./ 1985 100% 1,635,591 1,008,915 626,676
Woodbridge, VA Baltimore
Franklin Mills........ Philadelphia/ 1989 100% 1,742,631 1,128,525 614,106
Philadelphia, PA Wilmington
Sawgrass Mills........ Fort Lauderdale, FL/ 1990 100% 1,845,342 1,168,725 676,617
Sunrise, FL Miami/Palm Beach
Gurnee Mills.......... Chicago/Milwaukee 1991 100% 1,699,808 1,076,646 623,162
Gurnee, IL
Ontario Mills......... Los Angeles 1996 50% 1,471,096 961,527 509,569
Ontario, CA
Grapevine Mills....... Dallas/Fort Worth 1997 37.5% 1,496,414 942,688 553,726
Grapevine, TX
Arizona Mills......... Phoenix 1997 36.8% 1,233,884 700,731 533,153
Tempe, AZ
The Oasis at Sawgrass. Fort Lauderdale, FL/ 1999 50% 290,063 134,860 155,203
Sunrise, FL Miami/Palm Beach
Concord Mills......... Charlotte 1999 37.5% 1,257,046 691,342 565,704
Concord, NC
Katy Mills............ Houston 1999 62.5% 1,159,632 595,993 563,639
Houston, TX
Opry Mills............ Nashville 2000 66.7% 1,085,069 513,350 571,719
Nashville, TN
----------- --------- -----------
Mills Totals/Weighted
Averages........ 14,916,576 8,923,302 5,993,274
=========== ========= =========
The Block at Orange Los Angeles/Orange 1998 50% 645,026 359,701 285,325
County =========== ========= =========
Community Centers (11 Centers) 2,216,420 1,365,729 850,691
=========== ========= =========
</TABLE>
<TABLE>
<CAPTION>
12 Mos. En
Annualized No. of 6/30/00
Percent Base Anchor Specialty St
Name/Location Leased (2) Rent (4) Stores (3) Sales PSF
---------------------- ---------- -------- ---------- ---------
<S> <C> <C> <C> <C>
Mills
Potomac Mills......... 97% $22,405,840 19 $ 333
Woodbridge, VA
Franklin Mills........ 93% 18,131,983 18 320
Philadelphia, PA
Sawgrass Mills........ 96% 24,908,309 18 434
Sunrise, FL
Gurnee Mills.......... 96% 18,051,225 17 299
Gurnee, IL
Ontario Mills......... 97% 19,549,129 23 378
Ontario, CA
Grapevine Mills....... 96% 20,673,472 18 299
Grapevine, TX
Arizona Mills......... 96% 19,249,218 16 316
Tempe, AZ
The Oasis at Sawgrass. 90% 5,339,956 3 502
Sunrise, FL
Concord Mills......... 91% 19,299,974 16 N/A (5)
Concord, NC
Katy Mills............ 91% 17,979,674 13 N/A (5)
Houston, TX
Opry Mills............ 93% 20,537,053 13 N/A (5)
Nashville, TN
------------ --------
Mills Totals/Weighted
Averages......... 95% $206,125,833 174 $ 348
============= ========
The Block at Orange 90% $ 13,544,030 9 $ 361
============= ========
Community Centers (11 Centers) 93% 18,529,036 29
============= ========
</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 June 1, 2000, excluding tenants with
leases having a term of less than 1 year plus gross leaseable area owned
by store tenants described in footnote (1).
(3) Anchor stores include all stores occupying more than 20,000 square feet
and certain store tenants described in footnote (1).
(4) Annualized Base Rent is defined as the contractual minimum rent of tenants
comprising gross leaseable occupied area at 6/1/00 multiplied by 12,
excluding tenants as noted in footnote (1) and ground leases of 152,370
square feet at Franklin Mills and 177,063 square feet at Grapevine Mills.
(5) Twelve months ended June 30, 2000 sales per square foot information is not
available for Concord Mills, Katy Mills and Opry Mills which commenced
business September 1999, October 1999 and May 2000, respectively.
7
<PAGE> 5
THE MILLS CORPORATION
SUMMARY OF PROPERTIES UNDER CONSTRUCTION
<TABLE>
<CAPTION>
Approx.
Anticipated GLA
Metropolitan Opening (Sq. Ft.) Company
Name/Location Area Serviced Date (1) (1,2) Ownership
---------------------- ------------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
Arundel Mills Baltimore/ Fall 1,300,000 37.5%
Dorchester, MD Washington D.C. 2000
Discover Mills Atlanta Spring 1,200,000 50.0%
Atlanta, GA 2001
</TABLE>
<TABLE>
<CAPTION>
Estimated Anchor
Aggregate Required Company's Store
Project Equity from Equity at Tenant
Name/Location Cost (1) Company 6/30/00 Commitments
---------------------- ------------ ------------- ------------- ----------------
(millions) (millions)
<S> <C> <C> <C> <C>
Arundel Mills $ 249 $ 17.50 $ 17.50 10
Dorchester, MD
Discover Mills $ 238 $ - $ - 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 has begun leasing efforts for these projects and has obtained
various letters of interest.
8
<PAGE> 6
THE MILLS CORPORATION
SUPPLEMENTAL FINANCIAL DATA
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2000 1999 2000 1999
------------ ------------ ----------- ----------
STATEMENT OF OPERATIONS DATA:
<S> <C> <C> <C> <C>
REVENUES:
Minimum rent $26,216 $25,948 $51,922 $51,965
Percentage rent 291 338 637 534
Recoveries from tenants 13,142 13,173 26,528 26,505
Other property revenue 2,213 1,756 4,500 3,421
Management fee income 1,821 1,054 3,614 2,005
Other fee income 2,502 1,608 4,912 3,985
Interest income 525 482 1,312 1,536
------------ ----------- ----------- -----------
Total revenues 46,710 44,359 93,425 89,951
EXPENSES:
Recoverable from tenants 11,193 11,488 22,648 23,210
Other operating 1,384 1,252 2,359 2,454
General and administrative 3,800 2,960 7,135 5,884
Interest expense 14,462 11,647 27,263 22,770
Depreciation and amortization 9,990 8,776 19,233 17,393
------------ ----------- ----------- -----------
Total expenses 40,829 36,123 78,638 71,711
Other income/(expense) (329) 822 (700) 643
Equity in earnings of unconsolidated joint ventures 2,521 2,340 4,189 3,357
------------ ----------- ----------- -----------
Income before extraordinary item and minority interests 8,073 11,398 18,276 22,240
Extraordinary losses on debt extinguishments
(1,634) - (3,147) (2,762)
------------ ----------- ----------- -----------
Income before minority interests 6,439 11,398 15,129 19,478
Minority interests (2,598) (4,628) (6,122) (7,913)
------------ ----------- ----------- -----------
Net income $3,841 $6,770 $9,007 $11,565
============ =========== =========== ===========
Income per share before extraordinary item (Basic) $0.21 $0.29 $0.47 $0.57
============ =========== =========== ===========
Income per share before extraordinary item (Diluted) $0.21 $0.29 $0.47 $0.57
============ =========== =========== ===========
Net income per share (Basic) $0.16 $0.29 $0.39 $0.50
============ =========== =========== ===========
Net income per share (Diluted) $0.16 $0.29 $0.39 $0.50
============ =========== =========== ===========
FUNDS FROM OPERATIONS (*):
Income before extraordinary item
and minority interests $8,073 $11,398 $18,276 $22,240
Adjustments:
Add: Depreciation and amortization of real estate
assets 8,739 7,774 16,467 15,488
Add: Real estate depreciation and amortization
of unconsolidated joint ventures 7,648 2,836 13,335 5,584
------------ ----------- ----------- -----------
Funds from operations $24,460 $22,008 $48,078 $43,312
============ =========== =========== ===========
BASIC:
Weighted average shares 23,306 23,107 23,227 23,084
Weighted average shares and units 39,134 38,951 39,055 38,928
DILUTED:
Weighted average shares 23,346 23,640 23,276 23,432
Weighted average shares and units 39,174 39,484 39,105 39,277
</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) AND THE COMMUNITY
CENTERS. THE PURPOSE OF THIS TABLE IS TO PROVIDE DETAILS ABOUT CERTAIN LINE
ITEMS WITHIN THE SUPPLEMENTAL FINANCIAL DATA SHOWN ON PAGE 9 AND IS NOT
INTENDED TO BE A REPRESENTATION OF NET INCOME ACCORDING TO GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES.
FOR THE THREE MONTHS ENDED JUNE 30, 2000
WHOLLY OWNED PROPERTIES
<TABLE>
<CAPTION>
Community
Potomac Franklin Sawgrass Gurnee Mainstreet Centers Total
RENTAL REVENUES: ------- -------- -------- ------ ---------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Minimum rent $ 5,616 $ 4,567 $ 6,370 $ 4,542 $ 676 $ 4,445 $ 26,216
Percentage rent 15 27 140 30 69 10 291
Recoveries from tenants 2,483 2,873 3,732 2,584 55 1,415 13,142
Other revenue 461 197 860 306 179 210 2,213
-------------------------------------------------------------------------------------------
Total rental revenues 8,575 7,664 11,102 7,462 979 6,080 41,862
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,058 2,255 3,404 2,190 - 1,286 11,193
Other operating (1) 174 236 112 134 697 31 1,384
-------------------------------------------------------------------------------------------
Total property operating costs 2,232 2,491 3,516 2,324 697 1,317 12,577
-------------------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $6,343 $5,173 $7,586 $5,138 $282 $4,763 $29,285
===========================================================================================
</TABLE>
<TABLE>
<CAPTION>
UNCONSOLIDATED JOINT VENTURES
Ontario Grapevine Arizona The Block The Oasis Concord Katy
------- --------- ------- --------- --------- ------- ----
<S> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 5,140 $ 5,777 $ 5,339 $ 4,109 $ 1,452 $ 5,073 $ 5,041
Percentage rent 85 - - - - - 23
Recoveries from tenants 2,535 2,750 2,159 961 471 1,503 2,261
Other revenue 2,936 1,764 2,930 383 78 382 311
-------------------------------------------------------------------------------------------
TOTAL RENTAL REVENUES 10,696 10,291 10,428 5,453 2,001 6,958 7,636
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,232 2,478 2,069 1,263 481 1,640 2,216
Other operating (1) 357 63 268 151 92 165 260
-------------------------------------------------------------------------------------------
TOTAL PROPERTY OPERATING COSTS 2,589 2,541 2,337 1,414 573 1,805 2,476
-------------------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 8,107 $ 7,750 $ 8,091 $ 4,039 $ 1,428 $ 5,153 $ 5,160
===========================================================================================
</TABLE>
<TABLE>
<CAPTION>
Opry Other Total
---- ----- -----
<S> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 2,981 $ 38 $ 34,950
Percentage rent - - 108
Recoveries from tenants 1,116 2 13,758
Other revenue 232 - 9,016
-----------------------------------------
Total rental revenues 4,329 40 57,832
PROPERTY OPERATING COSTS:
Recoverable from tenants 994 - 13,373
Other operating (1) 175 49 1,580
-----------------------------------------
Total property operating costs 1,169 49 14,953
-----------------------------------------
PROPERTY OPERATING INCOME $ 3,160 $ (9) $ 42,879
=========================================
</TABLE>
(1) Other operating costs excludes management fees as follows: Potomac Mills
- $245, Franklin Mills - $200, Sawgrass Mills - $264, Gurnee Mills - $184,
Community Centers - $166, Ontario Mills - $218, Grapevine Mills - $359,
Arizona Mills - $305, The Block at Orange - $177, The Oasis at Sawgrass -
$59, Concord Mills - $332, Katy Mills - $179 and Opry Mills - $77.
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) AND THE COMMUNITY
CENTERS. THE PURPOSE OF THIS TABLE IS TO PROVIDE DETAILS ABOUT CERTAIN LINE
ITEMS WITHIN THE SUPPLEMENTAL FINANCIAL DATA SHOWN ON PAGE 9 AND IS NOT
INTENDED TO BE A REPRESENTATION OF NET INCOME ACCORDING TO GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES.
FOR THE THREE MONTHS ENDED JUNE 30, 1999
<TABLE>
<CAPTION>
Community
Potomac Franklin Sawgrass Gurnee Mainstreet Centers Total
------- -------- -------- ------ ---------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 5,444 $ 4,757 $ 6,473 $ 4,388 $ 353 $ 4,533 $ 25,948
Percentage rent 18 18 150 29 66 57 338
Recoveries from tenants 2,447 2,950 3,865 2,386 31 1,494 13,173
Other revenue 195 303 819 286 144 9 1,756
---------------------------------------------------------------------------------------------
Total rental revenues 8,104 8,028 11,307 7,089 594 6,093 41,215
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,108 2,386 3,446 2,102 - 1,446 11,488
Other operating (1) 111 266 124 115 428 208 1,252
---------------------------------------------------------------------------------------------
Total property operating costs 2,219 2,652 3,570 2,217 428 1,654 12,740
---------------------------------------------------------------------------------------------
PROPERTY OPERATING INCOME 5,885 5,376 $7,737 $4,872 $166 $4,439 28,475
=============================================================================================
</TABLE>
<TABLE>
<CAPTION>
UNCONSOLIDATED JOINT VENTURES
Ontario Grapevine Arizona The Block The Oasis Other Total
------- --------- ------- --------- --------- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 4,805 $ 5,272 $ 5,289 $ 3,943 $ 983 $ 117 $ 20,409
Percentage rent 1 - - 3 - - 4
Recoveries from tenants 2,396 2,432 2,140 1,019 255 54 8,296
Other revenue 401 485 420 332 13 - 1,651
---------------------------------------------------------------------------------------------
Total rental revenues 7,603 8,189 7,849 5,297 1,251 171 30,360
PROPERTY OPERATING COSTS:
Recoverable from tenants 2,170 2,116 1,900 1,313 210 8 7,717
Other operating (1) 56 254 177 318 106 55 966
---------------------------------------------------------------------------------------------
Total property operating costs 2,226 2,370 2,077 1,631 316 63 8,683
---------------------------------------------------------------------------------------------
PROPERTY OPERATING INCOME $ 5,377 $ 5,819 $ 5,772 $ 3,666 $ 935 $ 108 $ 21,677
=============================================================================================
</TABLE>
(1) Other operating costs excludes management fees as follows: Potomac Mills
- $234, Franklin Mills - $200, Sawgrass Mills - $299, Gurnee Mills - $191,
Community Centers - $193, Ontario Mills - $201, Grapevine Mills - $345,
Arizona Mills - $357, The Block at Orange - $160 and The Oais at Sawgrass
- $105.
11
<PAGE> 9
THE MILLS CORPORATION
PROPERTY OPERATING INCOME
(IN THOUSANDS)
(UNAUDITED)
THE FOLLOWING TABLE SETS FORTH THE PROPERTY OPERATING INCOME FOR EACH OF THE
MILLS, MAINSTREET (I.E. THE COMPANY'S PUSH CART PROGRAM) AND THE COMMUNITY
CENTERS. THE PURPOSE OF THIS TABLE IS TO PROVIDE DETAILS ABOUT CERTAIN LINE
ITEMS WITHIN THE SUPPLEMENTAL FINANCIAL DATA SHOWN ON PAGE 9 AND IS NOT
INTENDED TO BE A REPRESENTATION OF NET INCOME ACCORDING TO GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES.
FOR THE SIX MONTHS ENDED JUNE 30, 2000
WHOLLY OWNED PROPERTIES
<TABLE>
<CAPTION>
Potomac Franklin Sawgrass Gurnee
------- -------- -------- ------
<S> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 11,053 $ 9,096 $ 12,606 $ 9,032
Percentage rent 34 57 231 65
Recoveries from tenants 4,938 5,984 7,594 5,021
Other revenue 686 537 1,809 653
---------------------------------------------------------
Total rental revenues 16,711 15,674 22,240 14,771
PROPERTY OPERATING COSTS:
Recoverable from tenants 4,128 4,519 6,846 4,344
Other operating (1) 335 377 223 225
---------------------------------------------------------
Total property operating costs 4,463 4,896 7,069 4,569
---------------------------------------------------------
PROPERTY OPERATING INCOME $ 12,248 $ 10,778 $ 15,171 $ 10,202
=========================================================
</TABLE>
<TABLE>
<CAPTION>
WHOLLY OWNED PROPERTIES
Community
Mainstreet Centers Total
---------- ------- -----
<S> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 1,233 $ 8,902 $ 51,922
Percentage rent 157 93 637
Recoveries from tenants 55 2,936 26,528
Other revenue 337 478 4,500
---------------------------------------------
Total rental revenues 1,782 12,409 83,587
PROPERTY OPERATING COSTS:
Recoverable from tenants - 2,811 22,648
Other operating (1) 1,064 135 2,359
---------------------------------------------
Total property operating costs 1,064 2,946 25,007
---------------------------------------------
PROPERTY OPERATING INCOME $ 718 $ 9,463 $ 58,580
=============================================
</TABLE>
UNCONSOLIDATED JOINT VENTURES
<TABLE>
<CAPTION>
Ontario Grapevine Arizona The Block The Oasis
------- --------- ------- --------- ---------
<S> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 10,171 $ 11,559 $ 10,675 $ 8,363 $ 2,996
Percentage rent 245 334 6 55 -
Recoveries from tenants 4,899 5,555 4,277 1,998 994
Other revenue 3,450 2,380 3,387 600 101
-------------------------------------------------------------------------
Total rental revenues 18,765 19,828 18,345 11,016 4,091
PROPERTY OPERATING COSTS
Recoverable from tenants 4,300 4,875 4,083 2,521 964
Other Operating (1) 538 191 364 306 115
-------------------------------------------------------------------------
Total property operating costs 4,838 5,066 4,447 2,827 1,079
-------------------------------------------------------------------------
PROPERTY OPERATING INCOME 13,927 14,762 13,898 8,189 3,012
=========================================================================
</TABLE>
<TABLE>
<CAPTION>
Concord Katy Opry Other Total
------- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 10,014 $ 9,700 $ 2,981 $ 76 $ 66,535
Percentage rent 126 167 - - 933
Recoveries from tenants 2,953 4,440 1,116 2 26,234
Other revenue 900 737 232 - 11,787
----------------------------------------------------------------------
Total rental revenues 13,993 15,044 4,329 78 105,489
PROPERTY OPERATING COSTS
Recoverable from tenants 2,868 4,346 994 - 24,951
Other Operating (1) 215 316 175 113 2,333
----------------------------------------------------------------------
Total property operating costs 3,083 4,662 1,169 113 27,284
----------------------------------------------------------------------
PROPERTY OPERATING INCOME 10,910 10,382 3,160 (35) 78,205
======================================================================
</TABLE>
(1) Other operating costs excludes management fees as follows: Potomac Mills
- $477, Franklin Mills - $391, Sawgrass Mills - $513, Gurnee Mills - $364,
Community Centers - $359, Ontario Mills - $466, Grapevine Mills - $765,
Arizona Mills - $689, The Block at Orange - $330, The Oasis at Sawgrass -
$107, Concord Mills - $646, Katy Mills - $341 and Opry Mills - $77.
12
<PAGE> 10
THE MILLS CORPORATION
PROPERTY OPERATING INCOME
(IN THOUSANDS)
(UNAUDITED)
THE FOLLOWING TABLE SETS FORTH THE PROPERTY OPERATING INCOME FOR EACH OF THE
MILLS, MAINSTREET (I.E. THE COMPANY'S PUSH CART PROGRAM) AND THE COMMUNITY
CENTERS. THE PURPOSE OF THIS TABLE IS TO PROVIDE DETAILS ABOUT CERTAIN LINE
ITEMS WITHIN THE SUPPLEMENTAL FINANCIAL DATA SHOWN ON PAGE 9 AND IS NOT
INTENDED TO BE A REPRESENTATION OF NET INCOME ACCORDING TO GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES.
FOR THE SIX MONTHS ENDED JUNE 30, 1999
WHOLLY OWNED PROPERTIES
<TABLE>
<CAPTION>
Potomac Franklin Sawgrass Gurnee
------- -------- -------- ------
<S> <C> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 10,797 $ 9,439 $ 12,970 $ 8,781
Percentage rent 25 55 237 36
Recoveries from tenants 4,867 5,906 7,796 4,823
Other revenue 374 482 1,589 570
---------------------------------------------------------
Total rental revenues 16,063 15,882 22,592 14,210
PROPERTY OPERATING COSTS:
Recoverable from tenants 4,234 4,722 7,002 4,252
Other operating (1) 356 469 247 283
---------------------------------------------------------
Total property operating costs 4,590 5,191 7,249 4,535
---------------------------------------------------------
PROPERTY OPERATING INCOME $ 11,473 $ 10,691 $ 15,343 $ 9,675
=========================================================
</TABLE>
<TABLE>
<CAPTION>
Community
Mainstreet Centers Total
---------- ------- -----
<S> <C> <C> <C>
RENTAL REVENUES:
Minimum rent $ 754 $ 9,224 $ 51,965
Percentage rent 124 57 534
Recoveries from tenants 31 3,082 26,505
Other revenue 376 30 3,421
----------------------------------------------
Total rental revenues 1,285 12,393 82,425
PROPERTY OPERATING COSTS:
Recoverable from tenants - 3,000 23,210
Other operating (1) 801 298 2,454
----------------------------------------------
Total property operating costs 801 3,298 25,664
----------------------------------------------
PROPERTY OPERATING INCOME $ 484 $ 9,095 $ 56,761
==============================================
</TABLE>
UNCONSOLIDATED JOINT VENTURES
<TABLE>
<CAPTION>
Ontario Grapevine Arizona The Block
<S> <C> <C> <C> <C>
Rental Revenues:
Minimum rent $ 9,666 $ 10,623 $ 10,370 $ 7,839
Percentage rent 1 - 110 3
Recoveries from tenants 4,772 4,902 4,242 2,029
Other revenue 779 899 778 649
---------------------------------------------------------
Total rental revenues 15,218 16,424 15,500 10,520
Property Operating Costs
Recoverable from tenants 4,359 4,472 4,007 2,601
Other operating (1) 292 446 343 394
---------------------------------------------------------
Total property operating costs 4,651 4,918 4,350 2,995
---------------------------------------------------------
Property Operating Income $ 10,567 $ 11,506 $ 11,150 $ 7,525
=========================================================
</TABLE>
<TABLE>
<CAPTION>
The Oasis Other Total
<S> <C> <C> <C>
Rental Revenues:
Minimum rent $ 1,192 $ 131 $ 39,821
Percentage rent - - 114
Recoveries from tenants 255 58 16,258
Other revenue 13 - 3,118
---------------------------------------------
Total rental revenues 1,460 189 59,311
Property Operating Costs
Recoverable from tenants 250 8 15,697
Other operating (1) 108 173 1,756
---------------------------------------------
Total property operating costs 358 181 17,453
---------------------------------------------
Property Operating Income $ 1,102 $ 8 $ 41,858
=============================================
</TABLE>
(1) Other operating costs excludes management fees as follows: Potomac Mills
- $436, Franklin Mills - $393, Sawgrass Mills - $609, Gurnee Mills - $388,
Community Centers - $385, Ontario Mills - $383, Grapevine Mills - $658,
Arizona Mills - $692, The Block at Orange - $349, and The Oasis at
Sawgrass - $34.
13
<PAGE> 11
THE MILLS CORPORATION
UNCONSOLIDATED JOINT VENTURES
NET INCOME AND FUNDS FROM OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 2000
<TABLE>
<CAPTION>
Ontario Grapevine Arizona The Block The Oasis
------- --------- ------- --------- ---------
<S> <C> <C> <C> <C> <C>
REVENUES:
Minimum rent $ 5,140 $ 5,777 $ 5,339 $ 4,109 $ 1,452
Percentage rent 85 - - - -
Recoveries from tenants 2,535 2,750 2,159 961 471
Interest income 62 90 60 514 137
Other revenue 2,936 1,764 2,930 383 78
---------------------------------------------------------------------
Total revenues 10,758 10,381 10,488 5,967 2,138
EXPENSES:
Recoverable from tenants 2,232 2,478 2,069 1,263 481
Other operating (1) 575 422 573 327 151
Interest expense 2,293 2,360 2,765 2,254 763
Depreciation and amortization 3,120 2,626 3,415 2,306 1,011
---------------------------------------------------------------------
Total Expenses 8,220 7,886 8,822 6,150 2,406
Gain (Loss) on Land Sales - - - - -
Other - - (7) (20) -
---------------------------------------------------------------------
NET INCOME 2,538 2,495 1,659 (203) (268)
=====================================================================
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
Income before extraordinary items 2,538 2,495 1,659 (203) (268)
Adjustments:
Add: Depreciation and amortization of
real estate assets 3,084 2,583 3,252 2,144 894
---------------------------------------------------------------------
TOTAL FUNDS FROM OPERATIONS $ 5,622 $ 5,078 $ 4,911 $ 1,941 $ 626
=====================================================================
MILLS ALLOCATIONS:
Mills share of FFO 2,450 1,721 1,809 477 144
Management Fees due Mills 218 239 199 177 59
---------------------------------------------------------------------
Total Mills FFO $ 2,668 $ 1,960 $ 2,008 $ 654 $ 203
=====================================================================
Mills share of net income $ 1,106 $ 849 $ 611 $ (50) $ (60)
=====================================================================
</TABLE>
<TABLE>
<CAPTION>
Concord Katy Opry Other Total
------- ---- ---- ----- -----
<S> <C> <C> <C> <C>
REVENUES:
Minimum rent $ 5,073 $ 5,041 $ 2,981 $ 38 $ 34,950
Percentage rent - 23 - - 108
Recoveries from tenants 1,503 2,261 1,116 2 13,758
Interest income 193 399 54 109 1,618
Other revenue 382 311 232 - 9,016
--------------------------------------------------------------------
Total revenues 7,151 8,035 4,383 149 59,450
EXPENSES:
Recoverable from tenants 1,640 2,216 994 - 13,373
Other operating (1) 497 439 252 49 3,285
Interest expense 2,828 1,937 1,263 24 16,487
Depreciation and amortization 3,330 3,597 1,564 481 21,450
--------------------------------------------------------------------
Total Expenses 8,295 8,189 4,073 554 54,595
Gain (Loss) on Land Sales - - - 1,885 1,885
Other - - - (5) (32)
--------------------------------------------------------------------
NET INCOME (1,144) (154) 310 1,475 6,708
====================================================================
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
Income before extraordinary items (1,144) (154) 310 1,475 6,708
Adjustments:
Add: Depreciation and amortization of
real estate assets 3,102 3,256 1,366 481 20,162
--------------------------------------------------------------------
TOTAL FUNDS FROM OPERATIONS $ 1,958 $ 3,102 $ 1,676 $ 1,956 $ 26,870
====================================================================
MILLS ALLOCATIONS:
Mills share of FFO 610 1,241 1,268 449 10,169
Management Fees due Mills 222 179 77 - 1,370
--------------------------------------------------------------------
Total Mills FFO $ 832 $ 1,420 $ 1,345 $ 449 $ 11,539
====================================================================
Mills share of net income $ (391) $ (63) $ 231 $ 288 $ 2,521
====================================================================
</TABLE>
(1) Other operating costs includes management fees as follows: Ontario Mills
- $218, Grapevine Mills - $359, Arizona Mills - $305, The Block at Orange
- $177, The Oasis at Sawgrass - $59, Concord Mills - $332, Katy Mills -
$179 and Opry Mills - $77.
14
<PAGE> 12
THE MILLS CORPORATION
UNCONSOLIDATED JOINT VENTURES
NET INCOME AND FUNDS FROM OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2000
<TABLE>
<CAPTION>
Ontario Grapevine Arizona The Block The Oasis
------- --------- ------- --------- ---------
<S> <C> <C> <C> <C> <C>
REVENUES:
Minimum rent $ 10,171 $ 11,559 $ 10,675 $ 8,363 $ 2,996
Percentage rent 245 334 6 55 -
Recoveries from tenants 4,899 5,555 4,277 1,998 994
Interest income 996 202 132 1,000 274
Other revenue 3,450 2,380 3,387 600 101
---------------------------------------------------------------
Total revenues 19,761 20,030 18,477 12,016 4,365
EXPENSES:
Recoverable from tenants 4,300 4,875 4,083 2,521 964
Other operating (1) 1,004 956 1,053 635 222
Interest expense 4,724 4,866 5,399 4,560 1,436
Depreciation and amortization 5,259 5,284 5,283 4,532 1,997
---------------------------------------------------------------
Total Expenses 15,287 15,981 15,818 12,248 4,619
Gain on Land Sales - - - - -
Other - - (15) (34) -
---------------------------------------------------------------
NET INCOME 4,474 4,049 2,644 (266) (254)
===============================================================
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
Income before extraordinary items 4,474 4,049 2,644 (266) (254)
Adjustments:
Add: Depreciation and amortization of
real estate assets 5,187 5,198 4,958 4,209 1,763
---------------------------------------------------------------
TOTAL FUNDS FROM OPERATIONS $ 9,661 $ 9,247 $ 7,602 $ 3,943 $ 1,509
===============================================================
MILLS ALLOCATIONS:
Mills share of FFO 4,210 3,136 2,801 968 345
Management Fees due Mills 466 510 448 330 107
---------------------------------------------------------------
Total Mills FFO $ 4,676 $ 3,646 $ 3,249 $ 1,298 $ 452
===============================================================
Mills share of net income $ 1,950 $ 1,376 $ 974 $ (65) $ (57)
===============================================================
</TABLE>
<TABLE>
<CAPTION>
Concord Katy Opry Other Total
------- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C>
REVENUES:
Minimum rent $ 10,014 $ 9,700 $ 2,981 $ 76 $ 66,535
Percentage rent 126 167 - - 933
Recoveries from tenants 2,953 4,440 1,116 2 26,234
Interest income 424 771 125 281 4,205
Other revenue 900 737 232 - 11,787
-----------------------------------------------------------------
Total revenues 14,417 15,815 4,454 359 109,694
EXPENSES:
Recoverable from tenants 2,868 4,346 994 - 24,951
Other operating (1) 861 657 252 113 5,753
Interest expense 5,280 3,986 1,263 131 31,645
Depreciation and amortization 6,687 7,039 1,564 751 38,396
-----------------------------------------------------------------
Total Expenses 15,696 16,028 4,073 995 100,745
Gain on Land Sales - - - 2,401 2,401
Other - - - (399) (448)
-----------------------------------------------------------------
NET INCOME (1,279) (213) 381 1,366 10,902
=================================================================
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
Income before extraordinary items (1,279) (213) 381 1,366 10,902
Adjustments:
Add: Depreciation and amortization of
real estate assets 6,234 6,361 1,366 751 36,027
-----------------------------------------------------------------
TOTAL FUNDS FROM OPERATIONS $ 4,955 $ 6,148 $ 1,747 $ 2,117 $ 46,929
=================================================================
MILLS ALLOCATIONS:
Mills share of FFO 1,734 2,459 1,268 602 17,524
Management Fees due Mills 431 341 77 - 2,710
-----------------------------------------------------------------
Total Mills FFO $ 2,165 $ 2,800 $ 1,345 $ 602 $ 20,234
=================================================================
Mills share of net income $ (442) $ (86) $ 278 $ 260 $ 4,189
=================================================================
</TABLE>
(1) Other operating costs includes management fees as follows: Ontario Mills -
$466, Grapevine Mills - $765, Arizona Mills - $689, The Block at Orange -
$330, The Oasist at Sawgrass - $107, Concord Mills - $646, Katy Mills -
$341 and Opry Mills - $77.
15
<PAGE> 13
THE MILLS CORPORATION
OCCUPANCY ANALYSIS
<TABLE>
<CAPTION>
GROSS LEASED & OCCUPIED AREA (S.F.) (1)
GLA Occupied (3)
Project Total GLA at 6/00 %
------- --------- ------- ---
<S> <C> <C> <C>
Potomac Mills 1,635,591 1,592,533 97.37%
Franklin Mills 1,742,631 1,627,792 93.41%
Sawgrass Mills 1,845,342 1,769,029 95.86%
Gurnee Mills 1,699,808 1,637,912 96.36%
--------------------------------------------------
Total Mills 6,923,372 6,627,266 95.72%
Butterfield 114,610 114,610 100.00%
Coopers Plaza 173,509 158,556 91.38%
Crosswinds 144,273 141,600 98.15%
Fashion Place 147,950 135,038 91.27%
Germantown 177,097 172,121 97.19%
Gwinnett 194,503 170,643 87.73%
Liberty Plaza 315,067 302,205 95.92%
Montgomery Village 117,391 95,569 81.41%
Mt. Prospect 298,600 293,370 98.25%
West Falls Church 87,824 87,824 100.00%
Western Hills 452,896 399,187 88.14%
--------------------------------------------------
2,223,720 2,070,723 93.12%
--------------------------------------------------
Total Wholly Owned 9,147,092 8,697,989 95.09%
==================================================
Joint Ventures:
Ontario Mills 1,471,096 1,420,523 96.56%
Grapevine Mills 1,496,414 1,437,189 96.04%
Arizona Mills 1,233,884 1,186,795 96.18%
Concord Mills 1,257,046 1,145,426 91.12%
Katy Mills 1,159,632 1,057,476 91.19%
Opry Mills 1,085,069 1,004,560 92.58%
The Oasis at Sawgrass 290,063 260,869 89.94%
The Block at Orange 645,026 583,108 90.40%
--------------------------------------------------
Total Joint Ventures 8,638,230 8,095,946 93.72%
==================================================
Total Mills 14,916,576 14,140,104 94.79%
==================================================
Total Wholly Owned
and Joint Ventures 17,785,322 16,793,935 94.43%
==================================================
</TABLE>
<TABLE>
<CAPTION>
GROSS LEASED & OCCUPIED AREA, NET OF ANCHORS (S.F) (2)
Total GLA Occupied (3)
Project Specialty GLA at 6/00 %
------- ------------- ------- ---
<S> <C> <C> <C>
Potomac Mills 626,676 583,618 93.13%
Franklin Mills 614,106 531,904 86.61%
Sawgrass Mills 676,617 648,456 95.84%
Gurnee Mills 623,162 561,266 90.07%
--------------------------------------------------
Total Mills 2,540,561 2,325,244 91.52%
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 61,780 82.71%
Germantown 130,341 125,365 96.18%
Gwinnett 96,956 73,096 75.39%
Liberty Plaza 52,320 39,458 75.42%
Montgomery Village 80,986 59,164 73.05%
Mt. Prospect 126,005 120,775 95.85%
West Falls Church 49,983 49,983 100.00%
Western Hills 138,380 84,671 61.19%
--------------------------------------------------
860,591 707,594 82.22%
--------------------------------------------------
Total Wholly Owned 3,401,152 3,032,838 89.17%
==================================================
Joint Ventures:
Ontario Mills 509,569 458,996 90.08%
Grapevine Mills 553,726 494,501 89.30%
Arizona Mills 533,153 486,064 91.17%
Concord Mills 565,704 454,084 80.27%
Katy Mills 563,639 461,483 81.88%
Opry Mills 571,719 491,210 85.92%
The Oasis at Sawgrass 155,203 126,009 81.19%
The Block at Orange 285,325 223,407 78.30%
--------------------------------------------------
Total Joint Ventures 3,738,038 3,195,754 85.49%
==================================================
Total Mills 5,993,274 5,297,591 88.39%
==================================================
Total Wholly Owned
and Joint Ventures 7,139,190 6,228,592 87.25%
==================================================
</TABLE>
<TABLE>
<CAPTION>
TOTAL VACANT S.F.
Vacancies
Project Anchor Specialty Total
------- ------ --------- -----
<S> <C> <C> <C>
Potomac Mills 0 43,058 43,058
Franklin Mills 32,637 82,202 114,839
Sawgrass Mills 48,152 28,161 76,313
Gurnee Mills 0 61,896 61,896
--------------------------------------------------
Total Mills 80,789 215,317 296,106
Butterfield 0 0 0
Coopers Plaza 0 14,953 14,953
Crosswinds 0 2,673 2,673
Fashion Place 0 12,912 12,912
Germantown 0 4,976 4,976
Gwinnett 0 23,860 23,860
Liberty Plaza 0 12,862 12,862
Montgomery Village 0 21,822 21,822
Mt. Prospect 0 5,230 5,230
West Falls Church 0 0 0
Western Hills 0 53,709 53,709
--------------------------------------------------
0 152,997 152,997
--------------------------------------------------
Total Wholly Owned 80,789 368,314 449,103
==================================================
Joint Ventures:
Ontario Mills 0 50,573 50,573
Grapevine Mills 0 59,225 59,225
Arizona Mills 0 47,089 47,089
Concord Mills 0 111,620 111,620
Katy Mills 0 102,156 102,156
Opry Mills 0 80,509 80,509
The Oasis at Sawgrass 0 29,194 29,194
The Block at Orange 0 61,918 61,918
--------------------------------------------------
Total Joint Ventures 0 542,284 542,284
==================================================
Total Mills 80,789 695,683 776,472
==================================================
Total Wholly Owned
and Joint Ventures 80,789 910,598 991,387
==================================================
</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 June 1, 2000, excluding tenants with leases that
have a term of less than 1 year plus (ii) GLA owned by certain store
tenants.
16
<PAGE> 14
THE MILLS CORPORATION
LEASE EXPIRATION SCHEDULE (1)
The following table shows lease expirations assuming that none of the tenants
exercise renewal options. Except as described in footnote (1), the minimum rent
is the monthly contractual minimum rent of the expiring leases as of June 30,
2000 multiplied by 12.
<TABLE>
<CAPTION>
No. of 2000
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ----
<S> <C> <C> <C> <C>
Potomac Mills:
Anchors (2) - - $ - $ -
Majors (2) 1 20,114 250,000 12.43
Specialty 13 35,910 916,408 25.52
Food Court 1 833 65,000 78.03
-------------------------------------------------------
15 56,857 $ 1,231,408 $ 21.66
Franklin Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 11 49,150 1,034,027 21.04
Food Court - - - -
-------------------------------------------------------
11 49,150 $ 1,034,027 $ 21.04
Sawgrass Mills:
Anchors (2,3) - - $ - $ -
Majors (2) 1 20,189 240,000 11.89
Specialty 28 96,175 2,147,729 22.33
Food Court 19 15,371 844,014 54.91
-------------------------------------------------------
48 131,735 $ 3,231,743 $ 24.53
Gurnee Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 12 39,129 760,962 19.45
Food Court - - - -
-------------------------------------------------------
12 39,129 $ 760,962 $ 19.45
Total Mills w/o Joint Ventures:
Anchors (2) - - $ - $ -
Majors (2) 2 40,303 490,000 12.16
Specialty 64 220,364 4,859,126 22.05
Food Court 20 16,204 909,014 56.10
-------------------------------------------------------
86 276,871 $ 6,258,140 $ 22.60
=======================================================
<CAPTION>
No. of 2001
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ----
<S> <C> <C> <C> <C>
Potomac Mills:
Anchors (2) - - $ - $ -
Majors (2) 2 67,052 602,846 8.99
Specialty 25 61,731 1,693,920 27.44
Food Court 4 3,349 211,711 63.22
-------------------------------------------------------
31 132,132 $ 2,508,477 $ 18.98
Franklin Mills:
Anchors (2) 1 70,701 $ 484,302 $ 6.85
Majors (2) 1 25,127 178,402 7.10
Specialty 38 111,501 2,423,113 21.73
Food Court 1 490 15,000 30.61
-------------------------------------------------------
41 207,819 $ 3,100,817 $ 14.92
Sawgrass Mills:
Anchors (2,3) 2 147,915 $ 1,101,435 $ 7.45
Majors (2) - - - -
Specialty 42 142,295 3,328,663 23.39
Food Court 4 3,124 176,752 56.58
-------------------------------------------------------
48 293,334 $ 4,606,850 $ 15.71
Gurnee Mills:
Anchors (2) 3 231,271 $ 1,381,540 $ 5.97
Majors (2) 1 40,752 289,339 7.10
Specialty 51 172,594 3,504,924 20.31
Food Court 14 10,061 572,738 56.93
-------------------------------------------------------
69 454,678 $ 5,748,541 $ 12.64
Total Mills w/o Joint Ventures:
Anchors (2) 6 449,887 $ 2,967,277 $ 6.60
Majors (2) 4 132,931 1,070,587 8.05
Specialty 156 488,121 10,950,620 22.43
Food Court 23 17,024 976,201 57.34
-------------------------------------------------------
189 1,087,963 $ 15,964,685 $ 14.67
=======================================================
<CAPTION>
No. of 2002
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ----
<S> <C> <C> <C> <C>
Potomac Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 32 119,645 2,553,568 21.34
Food Court 3 1,859 127,485 68.58
----------------------------------------------------------
35 121,504 $ 2,681,053 $ 22.07
Franklin Mills:
Anchors (2) - - $ - $ -
Majors (2) 1 30,237 257,015 8.50
Specialty 26 84,712 1,844,718 21.78
Food Court 4 3,161 107,660 34.06
----------------------------------------------------------
31 118,110 $ 2,209,393 $ 18.71
Sawgrass Mills:
Anchors (2,3) - - $ - $ -
Majors (2) 2 42,657 365,206 8.56
Specialty 28 72,495 2,257,594 31.14
Food Court 2 1,852 87,602 47.30
----------------------------------------------------------
32 117,004 $ 2,710,402 $ 23.17
Gurnee Mills:
Anchors (2) 1 61,265 $ 495,000 $ 8.08
Majors (2) 1 33,627 252,202 7.50
Specialty 23 71,104 1,588,340 22.34
Food Court 5 3,611 228,158 63.18
----------------------------------------------------------
30 169,607 $ 2,563,700 $ 15.12
Total Mills w/o Joint Ventures:
Anchors (2) 1 61,265 $ 495,000 $ 8.08
Majors (2) 4 106,521 874,423 8.21
Specialty 109 347,956 8,244,220 23.69
Food Court 14 10,483 550,905 52.55
----------------------------------------------------------
128 526,225 $ 10,164,548 $ 19.32
==========================================================
<CAPTION>
No. of After 2002
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ----
<S> <C> <C> <C> <C>
Potomac Mills:
Anchors (2) 6 538,991 $ 3,724,192 $ 6.91
Majors (2) 9 302,758 2,630,095 8.69
Specialty 104 356,147 9,333,281 26.21
Food Court 6 4,144 297,334 71.75
-------------------------------------------------------------
125 1,202,040 $ 15,984,902 $ 13.30
Franklin Mills:
Anchors (2) 4 357,592 $ 3,089,629 $ 8.64
Majors (2) 8 250,249 2,618,213 10.46
Specialty 67 273,745 5,683,148 20.76
Food Court 11 9,145 396,756 43.39
-------------------------------------------------------------
90 890,731 $ 11,787,746 $ 13.23
Sawgrass Mills:
Anchors (2,3) 6 510,865 $ 3,144,207 $ 6.15
Majors (2) 5 176,653 2,273,629 12.87
Specialty 90 311,355 8,699,880 27.94
Food Court 4 5,789 241,598 41.73
-------------------------------------------------------------
105 1,004,662 $ 14,359,314 $ 14.29
Gurnee Mills:
Anchors (2) 3 298,419 $ 1,449,681 $ 4.86
Majors (2) 5 160,506 1,840,098 11.46
Specialty 67 260,351 5,488,879 21.08
Food Court 7 4,416 199,364 45.15
-------------------------------------------------------------
82 723,692 $ 8,978,022 $ 12.41
Total Mills w/o Joint Ventures:
Anchors (2) 19 1,705,867 $ 11,407,709 $ 6.69
Majors (2) 27 890,166 9,362,035 10.52
Specialty 328 1,201,598 29,205,188 24.31
Food Court 28 23,494 1,135,052 48.31
-------------------------------------------------------------
402 3,821,125 $ 51,109,984 $ 13.38
=============================================================
<CAPTION>
No. of Total
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Potomac Mills:
Anchors (2) 6 538,991 $ 3,724,192 $ 6.91
Majors (2) 12 389,924 3,482,941 8.93
Specialty 174 573,433 14,497,177 25.28
Food Court 14 10,185 701,530 68.88
-------------------------------------------------------------
206 1,512,533 $ 22,405,840 $ 14.81
Franklin Mills:
Anchors (2) 5 428,293 $ 3,573,931 $ 8.34
Majors (2) 10 305,613 3,053,630 9.99
Specialty 142 519,108 10,985,006 21.16
Food Court 16 12,796 519,416 40.59
-------------------------------------------------------------
173 1,265,810 $ 18,131,983 $ 14.32
Sawgrass Mills:
Anchors (2,3) 8 658,780 $ 4,245,642 $ 6.44
Majors (2) 8 239,499 2,878,835 12.02
Specialty 188 622,320 16,433,866 26.41
Food Court 29 26,136 1,349,966 51.65
-------------------------------------------------------------
233 1,546,735 $ 24,908,309 $ 16.10
Gurnee Mills:
Anchors (2) 7 590,955 $ 3,326,221 $ 5.63
Majors (2) 7 234,885 2,381,639 10.14
Specialty 153 543,178 11,343,105 20.88
Food Court 26 18,088 1,000,260 55.30
-------------------------------------------------------------
193 1,387,106 $ 18,051,225 $ 13.01
Total Mills w/o Joint Ventures:
Anchors (2) 26 2,217,019 $ 14,869,986 $ 6.71
Majors (2) 37 1,169,921 11,797,045 10.08
Specialty 657 2,258,039 53,259,154 23.59
Food Court 85 67,205 3,571,172 53.14
-------------------------------------------------------------
805 5,712,184 $ 83,497,357 $ 14.62
=============================================================
</TABLE>
(1) Excludes 963,173 square feet of gross leaseable area owned by tenants as
follows: Potomac Mills - 80,000; Franklin Mills - 209,612 square feet;
Sawgrass Mills - 281,774 square feet; Gurnee Mills - 250,806 square feet;
Ontario Mills - 125,000 square feet; and Community Centers - 15,981 square
feet. Ground leases at Franklin Mills of 152,370 square feet and Grapevine
Mills of 177,063 square feet are also excluded.
(2) Anchor tenants are defined as any tenant whose GLA equals or exceeds 50,000
sq. ft. and Major tenants are defined as any tenant whose GLA equals or
exceeds 20,000 sq. ft. but is less than 50,000 sq. ft..
(3) For lease expiration purposes, Sawgrass Mills includes 59,480 square feet
of gross leasable area that is owned in fee by Sawgrass Mills Phase III
(The Oasis), but leased back to Sawgrass Mills and is sublet to Regal
Theatres.
17
<PAGE> 15
THE MILLS CORPORATION
LEASE EXPIRATION SCHEDULE (1)
The following table shows lease expirations assuming that none of the tenants
exercise renewal options. Except as described in footnote (1), the minimum rent
is the monthly contractual minimum rent of the expiring leases as of June 30,
2000 multiplied by 12.
<TABLE>
<CAPTION>
No. of 2000
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ----
<S> <C> <C> <C> <C>
Ontario Mills:
Anchors (2) - - $ - $ -
Majors (2) 1 30,639 428,946 14.00
Specialty 4 11,851 284,679 24.02
Food Court - - - -
-------------------------------------------------------
5 42,490 $ 713,625 $ 16.80
Grapevine Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 6 17,056 367,537 21.55
Food Court - - - -
-------------------------------------------------------
6 17,056 $ 367,537 $ 21.55
Arizona Mills:
Anchors (2) - - $ - $ -
Majors (2) 1 37,899 549,751 14.51
Specialty 8 30,976 742,077 23.96
Food Court - - - -
-------------------------------------------------------
9 68,875 $ 1,291,828 $ 18.76
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
Food Court - - - -
-------------------------------------------------------
2 12,107 $ 352,710 $ 29.13
Katy Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 1 1,582 36,386 23.00
Food Court - - - -
-------------------------------------------------------
1 1,582 $ 36,386 $ 23.00
<CAPTION>
No. of 2001
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ----
<S> <C> <C> <C> <C>
Ontario Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 44 192,787 3,748,837 19.45
Food Court - - - -
-------------------------------------------------------
44 192,787 $ 3,748,837 $ 19.45
Grapevine Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 11 24,847 592,505 23.85
Food Court - - - -
-------------------------------------------------------
11 24,847 $ 592,505 $ 23.85
Arizona Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 8 17,212 444,141 25.80
Food Court - - - -
-------------------------------------------------------
8 17,212 $ 444,141 $ 25.80
The Oasis at Sawgrass:
Anchors (2,3) - - $ - $ -
Majors (2) - - - -
Specialty - - - -
Food Court - - - -
-------------------------------------------------------
- - $ - $ -
Concord Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 1 2,658 58,476 22.00
Food Court - - - -
-------------------------------------------------------
1 2,658 $ 58,476 $ 22.00
Katy Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 1 3,327 66,540 20.00
Food Court - - - -
-------------------------------------------------------
1 3,327 $ 66,540 $ 20.00
<CAPTION>
No. of 2002
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ----
<S> <C> <C> <C> <C>
Ontario Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 23 66,652 1,642,333 24.64
Food Court - - - -
----------------------------------------------------------
23 66,652 $ 1,642,333 $ 24.64
Grapevine Mills:
Anchors (2) - - $ - $ -
Majors (2) 1 23,329 279,948 12.00
Specialty 55 182,145 4,016,552 22.05
Food Court - - - -
----------------------------------------------------------
56 205,474 $ 4,296,500 $ 20.91
Arizona Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 53 171,567 3,757,880 21.90
Food Court - - - -
----------------------------------------------------------
53 171,567 $ 3,757,880 $ 21.90
The Oasis at Sawgrass:
Anchors (2,3) - - $ - $ -
Majors (2) - - - -
Specialty 1 1,489 89,340 60.00
Food Court - - - -
----------------------------------------------------------
1 1,489 $ 89,340 $ 60.00
Concord Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 2 2,946 92,894 31.53
Food Court - - - -
----------------------------------------------------------
2 2,946 $ 92,894 $ 31.53
Katy Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 5 7,017 265,154 37.79
Food Court - - - -
----------------------------------------------------------
5 7,017 $ 265,154 $ 37.79
<CAPTION>
No. of After 2002
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ----
<S> <C> <C> <C> <C>
Ontario Mills:
Anchors (2) 4 286,023 $ 1,883,132 $ 6.58
Majors (2) 17 519,865 6,232,561 11.99
Specialty 68 175,978 4,734,476 26.90
Food Court 3 11,728 594,165 50.66
-------------------------------------------------------------
92 993,594 $ 13,444,334 $ 13.53
Grapevine Mills:
Anchors (2) 4 393,386 $ 4,358,510 $ 11.08
Majors (2) 12 348,910 4,615,068 13.23
Specialty 80 260,653 5,855,352 22.46
Food Court 1 9,800 588,000 60.00
-------------------------------------------------------------
97 1,012,749 $ 15,416,930 $ 15.22
Arizona Mills:
Anchors (2) 5 382,513 $ 3,163,114 $ 8.27
Majors (2) 10 280,319 3,838,473 13.69
Specialty 69 252,385 5,921,280 23.46
Food Court 1 13,924 832,502 59.79
-------------------------------------------------------------
85 929,141 $ 13,755,369 $ 14.80
The Oasis at Sawgrass:
Anchors (2,3) 1 32,802 $ 615,322 $ 18.76
Majors (2) 2 42,578 882,869 20.74
Specialty 27 124,520 3,752,425 30.14
Food Court - - - -
-------------------------------------------------------------
30 199,900 $ 5,250,616 $ 26.27
Concord Mills:
Anchors (2) 5 433,278 $ 4,714,862 $ 10.88
Majors (2) 11 258,064 3,287,137 12.74
Specialty 116 425,543 10,205,895 23.98
Food Court 1 10,830 588,000 54.29
-------------------------------------------------------------
133 1,127,715 $ 18,795,894 $ 16.67
Katy Mills:
Anchors (2) 3 322,444 $ 2,480,720 $ 7.69
Majors (2) 10 273,549 4,346,639 15.89
Specialty 120 439,474 10,128,840 23.05
Food Court 1 10,083 655,395 65.00
-------------------------------------------------------------
134 1,045,550 $ 17,611,594 $ 16.84
<CAPTION>
No. of Total
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Ontario Mills:
Anchors (2) 4 286,023 $ 1,883,132 $ 6.58
Majors (2) 18 550,504 6,661,507 12.10
Specialty 139 447,268 10,410,325 23.28
Food Court 3 11,728 594,165 50.66
-------------------------------------------------------------
164 1,295,523 $ 19,549,129 $ 15.09
Grapevine Mills:
Anchors (2) 4 393,386 $ 4,358,510 $ 11.08
Majors (2) 13 372,239 4,895,016 13.15
Specialty 152 484,701 10,831,946 22.35
Food Court 1 9,800 588,000 60.00
-------------------------------------------------------------
170 1,260,126 $ 20,673,472 $ 16.41
Arizona Mills:
Anchors (2) 5 382,513 $ 3,163,114 $ 8.27
Majors (2) 11 318,218 4,388,224 13.79
Specialty 138 472,140 10,865,378 23.01
Food Court 1 13,924 832,502 59.79
-------------------------------------------------------------
155 1,186,795 $ 19,249,218 $ 16.22
The Oasis at Sawgrass:
Anchors (2,3) 1 32,802 $ 615,322 $ 18.76
Majors (2) 2 42,578 882,869 20.74
Specialty 28 126,009 3,841,765 30.49
Food Court - - - -
-------------------------------------------------------------
31 201,389 $ 5,339,956 $ 26.52
Concord Mills:
Anchors (2) 5 433,278 $ 4,714,862 $ 10.88
Majors (2) 11 258,064 3,287,137 12.74
Specialty 121 443,254 10,709,975 24.16
Food Court 1 10,830 588,000 54.29
-------------------------------------------------------------
138 1,145,426 $ 19,299,974 $ 16.85
Katy Mills:
Anchors (2) 3 322,444 $ 2,480,720 $ 7.69
Majors (2) 10 273,549 4,346,639 15.89
Specialty 127 451,400 10,496,920 23.25
Food Court 1 10,083 655,395 65.00
-------------------------------------------------------------
141 1,057,476 $ 17,979,674 $ 17.00
</TABLE>
(1) Excludes 963,173 square feet of gross leaseable area owned by tenants as
follows: Potomac Mills - 80,000; Franklin Mills - 209,612 square feet;
Sawgrass Mills - 281,774 square feet; Gurnee Mills - 250,806 square feet;
Ontario Mills - 125,000 square feet; and Community Centers - 15,981 square
feet. Ground leases at Franklin Mills of 152,370 square feet and Grapevine
Mills of 177,063 square feet are also excluded.
(2) Anchor tenants are defined as any tenant whose GLA equals or exceeds 50,000
sq. ft. and Major tenants are defined as any tenant whose GLA equals or
exceeds 20,000 sq. ft. but is less than 50,000 sq. ft..
(3) For lease expiration purposes, Sawgrass Mills includes 59,480 square feet
of gross leasable area that is owned in fee by Sawgrass Mills Phase III
(The Oasis), but leased back to Sawgrass Mills and is sublet to Regal
Theatres.
18
<PAGE> 16
THE MILLS CORPORATION
LEASE EXPIRATION SCHEDULE (1)
The following table shows lease expirations assuming that none of the tenants
exercise renewal options. Except as described in footnote (1), the minimum rent
is the monthly contractual minimum rent of the expiring leases as of June 30,
2000 multiplied by 12.
<TABLE>
<CAPTION>
No. of 2000
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ----
<S> <C> <C> <C> <C>
Opry Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty - - - -
Food Court - - - -
-------------------------------------------------------
- - $ - $ -
Total Mills with Joint Ventures:
Anchors (2) - - $ - $ -
Majors (2) 4 108,841 1,468,697 13.49
Specialty 85 293,936 6,642,515 22.60
Food Court 20 16,204 909,014 56.10
-------------------------------------------------------
109 418,981 $ 9,020,226 $ 21.53
=======================================================
The Block at Orange:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 4 5,281 304,115 57.59
Food Court - - - -
-------------------------------------------------------
4 5,281 $ 304,115 $ 57.59
Community Centers:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 9 23,790 259,553 10.91
Food Court - - - -
-------------------------------------------------------
9 23,790 $ 259,553 $ 10.91
=======================================================
Totals:
Anchors (2) - - $ - $ -
Majors (2) 4 108,841 1,468,697 13.49
Specialty 98 323,007 7,206,183 22.31
Food Court 20 16,204 909,014 56.10
-------------------------------------------------------
122 448,052 $ 9,583,894 $ 21.39
=======================================================
<CAPTION>
No. of 2001
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ----
<S> <C> <C> <C> <C>
Opry Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty - - - -
Food Court - - - -
-------------------------------------------------------
0 0 $ - $ -
Total Mills with Joint Ventures:
Anchors (2) 6 449,887 $ 2,967,277 $ 6.60
Majors (2) 4 132,931 1,070,587 8.05
Specialty 221 728,952 15,861,119 21.76
Food Court 23 17,024 976,201 57.34
-------------------------------------------------------
254 1,328,794 $ 20,875,184 $ 15.71
=======================================================
The Block at Orange:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 5 4,634 214,937 46.38
Food Court - - - -
-------------------------------------------------------
5 4,634 $ 214,937 $ 46.38
Community Centers:
Anchors (2) - - $ - $ -
Majors (2) 1 24,300 133,650 5.50
Specialty 52 205,936 2,668,204 12.96
Food Court - - - -
-------------------------------------------------------
53 230,236 $ 2,801,854 $ 12.17
=======================================================
Totals:
Anchors (2) 6 449,887 $ 2,967,277 $ 6.60
Majors (2) 5 157,231 1,204,237 7.66
Specialty 278 939,522 18,744,260 19.95
Food Court 23 17,024 976,201 57.34
-------------------------------------------------------
312 1,563,664 $ 23,891,975 $ 15.28
=======================================================
<CAPTION>
No. of 2002
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ----
<S> <C> <C> <C> <C>
Opry Mills:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty - - - -
Food Court - - - -
----------------------------------------------------------
0 0 $ - $ -
Total Mills with Joint Ventures:
Anchors (2) 1 61,265 $ 495,000 $ 8.08
Majors (2) 5 129,850 1,154,371 8.89
Specialty 248 779,772 18,108,373 23.22
Food Court 14 10,483 550,905 52.55
----------------------------------------------------------
268 981,370 $ 20,308,649 $ 20.69
==========================================================
The Block at Orange:
Anchors (2) - - $ - $ -
Majors (2) - - - -
Specialty 6 7,741 244,589 31.60
Food Court - - - -
----------------------------------------------------------
6 7,741 $ 244,589 $ 31.60
Community Centers:
Anchors (2) - - $ - $ -
Majors (2) 1 35,000 87,500 2.50
Specialty 44 130,054 1,907,942 14.67
Food Court - - - -
----------------------------------------------------------
45 165,054 $ 1,995,442 $ 12.09
==========================================================
Totals:
Anchors (2) 1 61,265 $ 495,000 $ 8.08
Majors (2) 6 164,850 1,241,871 7.53
Specialty 298 917,567 20,260,904 22.08
Food Court 14 10,483 550,905 52.55
----------------------------------------------------------
319 1,154,165 $ 22,548,680 $ 19.54
==========================================================
<CAPTION>
No. of After 2002
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ----
<S> <C> <C> <C> <C>
Opry Mills:
Anchors (2) 3 288,296 $ 4,415,547 $ 15.32
Majors (2) 10 244,800 3,414,279 13.95
Specialty 122 462,118 11,946,277 25.85
Food Court 1 9,346 760,950 81.42
-------------------------------------------------------------
136 1,004,560 $ 20,537,053 $ 20.44
Total Mills with Joint Ventures:
Anchors (2) 44 3,844,609 $ 33,038,916 $ 8.59
Majors (2) 99 2,858,251 35,979,061 12.59
Specialty 930 3,342,269 81,749,733 24.46
Food Court 36 89,205 5,154,064 57.78
-------------------------------------------------------------
1,109 10,134,334 $ 155,921,774 $ 15.39
=============================================================
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 58 195,176 5,684,963 29.13
Food Court 8 10,575 780,896 73.84
-------------------------------------------------------------
75 565,452 $ 12,780,389 $ 22.60
Community Centers:
Anchors (2) 9 707,760 $ 4,330,001 $ 6.12
Majors (2) 18 573,433 4,414,450 7.70
Specialty 86 354,469 4,727,736 13.34
Food Court - - - -
-------------------------------------------------------------
113 1,635,662 $ 13,472,187 $ 8.24
=============================================================
Totals:
Anchors (2) 55 4,725,154 $ 40,836,735 $ 8.64
Majors (2) 124 3,618,600 43,240,223 11.95
Specialty 1,074 3,891,914 92,162,432 23.68
Food Court 44 99,780 5,934,960 59.48
-------------------------------------------------------------
1,297 12,335,448 $ 182,174,350 $ 14.77
=============================================================
<CAPTION>
No. of Total
Leases Annualized
Expiring Sq Ft Min. Rent psf
-------- ----- --------- ---
<S> <C> <C> <C> <C>
Opry Mills:
Anchors (2) 3 288,296 $ 4,415,547 $ 15.32
Majors (2) 10 244,800 3,414,279 13.95
Specialty 122 462,118 11,946,277 25.85
Food Court 1 9,346 760,950 81.42
-------------------------------------------------------------
136 1,004,560 $ 20,537,053 $ 20.44
Total Mills with Joint Ventures:
Anchors (2) 51 4,355,761 $ 36,501,193 $ 8.38
Majors (2) 112 3,229,873 39,672,716 12.28
Specialty 1,484 5,144,929 122,361,740 23.78
Food Court 93 132,916 7,590,184 57.11
-------------------------------------------------------------
1,740 12,863,479 $ 206,125,833 $ 16.02
=============================================================
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 73 212,832 6,448,604 30.30
Food Court 8 10,575 780,896 73.84
-------------------------------------------------------------
90 583,108 $ 13,544,030 $ 23.23
Community Centers:
Anchors (2) 9 707,760 $ 4,330,001 $ 6.12
Majors (2) 20 632,733 4,635,600 7.33
Specialty 191 714,249 9,563,435 13.39
Food Court - - - -
-------------------------------------------------------------
220 2,054,742 $ 18,529,036 $ 9.02
=============================================================
Totals:
Anchors (2) 62 5,236,306 $ 44,299,012 $ 8.46
Majors (2) 139 4,049,522 47,155,028 11.64
Specialty 1,748 6,072,010 138,373,779 22.79
Food Court 101 143,491 8,371,080 58.34
-------------------------------------------------------------
2,050 15,501,329 $ 238,198,899 $ 15.37
=============================================================
</TABLE>
(1) Excludes 963,173 square feet of gross leaseable area owned by tenants as
follows: Potomac Mills - 80,000; Franklin Mills - 209,612 square feet;
Sawgrass Mills - 281,774 square feet; Gurnee Mills - 250,806 square feet;
Ontario Mills - 125,000 square feet; and Community Centers - 15,981 square
feet. Ground leases at Franklin Mills of 152,370 square feet and Grapevine
Mills of 177,063 square feet are also excluded.
(2) Anchor tenants are defined as any tenant whose GLA equals or exceeds 50,000
sq. ft. and Major tenants are defined as any tenant whose GLA equals or
exceeds 20,000 sq. ft. but is less than 50,000 sq. ft..
19
<PAGE> 17
RENTAL RATES (1)
The following table sets forth the average base rent per leased square foot of
store openings and closings for each property for the six months ended June 30,
2000 and for the years ended December 31, 1999, 1998, 1997, and 1996.
<TABLE>
<CAPTION>
ANCHOR STORES SPECIALTY STORES
----------------------------------------------------------------------------- ---------------------
STORE OPENINGS STORE CLOSINGS RELEASING STORE OPENINGS
DURING YEAR DURING YEAR SPREAD (2) DURING YEAR
----------------------- ---------------------- ----------------------- ---------------------
AVERAGE AVERAGE AVERAGE
BASE RENT TOTAL BASE RENT TOTAL BASE RENT TOTAL
PER SQ. FT. SQ. FT. PER SQ. FT. SQ. FT. PER SQ. FT. SQ. FT.
------------ -------- ------------ -------- ----------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
POTOMAC MILLS 2000 $ 13.75 62,778 $ 3.43 54,420 $ 10.32 300.81% $ 32.74 34,686
1999 12.00 24,077 - - N/A N/A 26.70 73,060
1998 11.52 65,028 9.46 70,490 2.06 21.75% 27.68 70,769
1997 7.71 73,432 6.30 97,820 1.41 22.33% 22.78 128,964
1996 11.43 33,406 11.55 15,178 (0.12) (1.04%) 23.64 83.594
FRANKLIN MILLS 2000 $ 10.75 20,608 $ - - $ N/A N/A $ 28.58 39,197
1999 - - 7.24 67,555 N/A N/A 21.83 86,646
1998 13.33 100,127 6.49 85,242 6.85 105.60% 19.18 150,869
1997 11.27 85,072 7.53 85,072 3.74 49.74% 20.16 112,670
1996 10.41 18,247 10.25 20,000 0.16 1.56% 20.08 73,880
GURNEE MILLS 2000 $ - - $ - - $ - - $ 23.92 28,008
1999 8.60 55,970(3) - - N/A N/A 22.74 65,922
1998 7.10 40,752 6.45 40,752 0.65 10.08% 21.07 99,886
1997 4.92 184,259(3) - - N/A N/A 20.75 101,771
1996 30.00 20,000 - - N/A N/A 19.01 74,447
SAWGRASS MILLS 2000 $ - - $ - - $ - - $ 33.87 28,496
1999 - - 15.00 28,152 N/A N/A 39.16 31,982
1998 15.00 28,152 15.00 28,152 - - 32.52 48,268
1997 8.91 50,579 8.93 50,579 (0.02) (0.21%) 30.00 72,188
1996 26.39 20,000 14.86 39,275 11.53 77.59% 29.63 58,904
ONTARIO MILLS 2000 $ - - $ - - $ - - $ 31.17 16,329
1999 11.82 135,707(4) 6.33 16,595 5.49 86.73% 29.65 30,580
1998 - - - - - - 27.34 35,616
GRAPEVINE MILLS 2000 $ 14.20 21,556 $ 14.20 32,285 $ - - $ 23.83 20,404
1999 8.78 82,000(5) - - N/A N/A 26.81 9,195
ARIZONA MILLS 2000 $ - - $ - - $ - - $ 28.71 14,055
1999 - - - - - - 26.83 16,566
TOTAL MILLS 2000 $ 13.25 104,942 $ 7.44 86,705 $ 5.81 78.09% $ 29.20 181,175
1999 10.39 297,754 9.05 112,302 1.34 14.81% 26.09 318,864
1998 11.94 234,059 8.48 224,636 3.46 40.86% 23.43 405,408
1997 7.33 393,342 7.32 233,471 0.01 0.15% 22.83 415,593
1996 18.54 91,653 12.95 74,453 5.59 43.17% 22.76 290,825
<CAPTION>
SPECIALTY STORES
----------------------------------------------
STORE CLOSINGS RELEASING
DURING YEAR SPREAD (2)
--------------------- ----------------------
AVERAGE
BASE RENT TOTAL
PER SQ. FT. SQ. FT.
------------ --------
<S> <C> <C> <C> <C>
POTOMAC MILLS 2000 $ 26.35 45,338 $ 6.39 24.24%
1999 23.42 76,881 3.29 14.03%
1998 27.91 62,034 (0.23) (0.79%)
1997 21.77 127,191 1.00 4.61%
1996 21.80 66,607 1.84 8.44%
FRANKLIN MILLS 2000 $ 25.24 29,443 $ 3.34 13.24%
1999 23.34 113,810 (1.50) (6.44%)
1998 17.65 113,961 1.53 8.65%
1997 19.34 106,202 0.83 4.29%
1996 18.61 115,416 1.47 7.90%
GURNEE MILLS 2000 $ 22.04 29,413 $ 1.88 8.52%
1999 19.92 95,997 2.82 14.16%
1998 18.59 88,220 2.48 13.35%
1997 19.24 104,086 1.51 7.87%
1996 18.63 71,457 0.38 2.04%
SAWGRASS MILLS 2000 $ 30.27 25,370 $ 3.60 11.89%
1999 31.15 55,470 8.01 25.71%
1998 26.32 49,373 6.20 23.54%
1997 24.57 64,626 5.42 22.08%
1996 22.24 57,770 7.39 33.23%
ONTARIO MILLS 2000 $ 24.39 36,817 $ 6.77 27.77%
1999 27.97 39,224 1.67 5.97%
1998 27.64 26,400 (0.30) (1.08%)
GRAPEVINE MILLS 2000 $ 24.95 33,675 $ (1.13) (4.52%)
1999 27.27 30,776 (0.46) (1.70%)
ARIZONA MILLS 2000 $ 23.52 33,150 $ 5.19 22.06%
1999 27.49 22,020 (0.66) (2.40%)
TOTAL MILLS 2000 $ 25.18 233,206 $ 4.02 15.95%
1999 24.50 454,633 1.59 6.49%
1998 21.80 339,988 1.63 7.49%
1997 20.92 402,105 1.90 9.10%
1996 19.97 311,250 2.79 13.97%
</TABLE>
(1) Katy Mills, Concord Mills, The Oasis at Sawgrass, and The Block at Orange
are excluded from this analysis, due to still being in their initial
lease-up phase. For the same reason, Ontario Mills for 1997 and Grapevine
Mills and Arizona Mills for 1998 are excluded.
(2) The releasing spread is calculated as the difference between per square
foot openings and per square foot closings for the six months ended June
30, 2000, and for the years ended December 31, 1999, 1998, 1997 and 1996.
Openings and closings include renewals but exclude exercised options. The
releasing spreads for the six months ended June 30, 2000 may not be
representative of annualized leasing spreads due to the limited time
period.
(3) For 1997, primarily consists of expansion space related to two anchor
stores, Bass Pro and Computer City comprising 125,000 sq. ft. and 25,000
sq. ft., respectively. For 1999, consists of expansion space related to
an anchor store, Rinkside Sports comprising 55,970 sq. ft.
(4) Consists of expansion space related to several anchor stores, Sam Ash
Music, Iguana Ameramex, Hollytron, Cost Plus, and Vans Skate Park
comprising 23,086 sq. ft., 23,194 sq. ft., 21,978 sq. ft., 20,121 sq.
ft., and 47,328 sq. ft., respectively.
(5) Consists of expansion space related to Polar Ice.
Note: Totals may not sum due to rounding
20
<PAGE> 18
AVERAGE RENTS
The following table sets forth, for the six months ended June 30, 2000 and each
of the last four years, certain information regarding operating trends with
respect to the existing Mills and The Block at Orange.
<TABLE>
<CAPTION>
MINIMUM RENT PLUS PERCENTAGE RENT
-----------------------------------------------------------------------
AVERAGE TOTAL STORES ANCHOR STORES
PERCENT -------------------------------------------------------------------------------------------
LEASED (1) TOTAL PER SQ. FT. TOTAL PER SQ. FT.
---------- -------------------- -------------------- ----------------------- --------------------
<S> <C> <C> <C> <C> <C>
POTOMAC MILLS
2000 97% $ 22,614,379 $ 15.07 $ 6,886,687 $ 7.53
1999 96 22,184,170 14.78 6,228,103 6.93
1998 95 21,443,619 14.43 6,001,966 6.75
1997 96 20,980,272 14.04 6,284,111 6.86
1996 96 20,865,975 14.00 6,142,999 6.76
FRANKLIN MILLS
2000 91% 18,697,290 13.37 6,819,698 7.82
1999 95 18,889,430 13.05 6,799,317 7.44
1998 94 17,689,143 12.38 6,050,348 6.61
1997 92 16,549,052 11.47 5,700,661 6.05
1996 92 16,318,689 11.40 5,291,698 5.67
SAWGRASS MILLS
2000 95% 26,762,967 17.38 7,014,454 7.81
1999(2) 97 27,047,670 17.21 7,428,095 8.10
1998(2) 98 26,969,276 17.29 7,265,079 8.13
1997(2) 97 26,448,955 17.08 7,384,896 8.28
1996 98 25,787,924 16.55 7,150,346 8.03
GURNEE MILLS
2000 96% 18,876,564 13.64 5,724,482 6.93
1999 96 18,652,338 13.60 5,350,186 6.71
1998 96 17,525,250 13.06 5,022,342 6.52
1997 91 15,900,406 13.80 4,418,036 7.42
1996 90 15,340,496 13.62 3,823,991 6.78
ONTARIO MILLS
2000 96% 21,407,110 16.50 8,959,788 10.71
1999 98 19,953,687 16.35 7,716,126 10.69
1998 98 19,516,934 16.50 7,300,086 10.61
1997 95 18,708,479 17.11 6,358,058 10.11
GRAPEVINE MILLS
2000 97% 23,911,062 16.50 11,387,576 11.97
1999(3) 97 21,608,407 17.78 8,986,655 12.75
1998 95 21,108,019 18.03 8,797,950 12.74
ARIZONA MILLS
2000 97% 21,954,459 18.40 8,082,712 11.53
1999 97 21,527,568 17.97 8,158,743 11.71
1998 95 19,165,290 16.82 7,262,540 10.83
THE OASIS AT SAWGRASS
2000 90% 6,416,807 31.01 1,611,961 21.38
CONCORD MILLS
2000 90% 20,692,068 18.52 8,050,627 11.83
KATY MILLS
2000 91% 20,011,482 18.89 7,501,524 12.59
TOTAL - MILLS
2000 94% $ 201,344,188 $ 16.58 $ 72,039,509 $ 9.80
1999 97 149,863,270 15.73 50,667,225 8.97
1998 96 143,417,531 15.41 47,700,311 8.65
1997 94 98,587,164 14.65 30,145,762 7.58
1996 94 78,313,084 13.97 22,409,034 6.80
<CAPTION>
MINIMUM RENT PLUS PERCENTAGE RENT
--------------------------------------------
SPECIALTY STORES
--------------------------------------------
TOTAL PER SQ. FT.
----------------------- ------------------
<S> <C> <C>
POTOMAC MILLS
2000 $ 15,727,692 $ 26.83
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 11,877,592 22.57
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 19,748,513 30.78
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 13,152,082 23.56
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 12,447,322 27.03
1999 12,237,561 24.55
1998 12,216,848 24.68
1997 12,350,421 26.59
GRAPEVINE MILLS
2000 12,523,486 25.15
1999(3) 12,621,752 24.72
1998 12,310,069 25.63
ARIZONA MILLS
2000 13,871,747 28.18
1999 13,368,825 26.69
1998 11,902,750 25.41
THE OASIS AT SAWGRASS
2000 4,804,846 36.52
CONCORD MILLS
2000 12,641,441 28.94
KATY MILLS
2000 12,509,958 27.00
TOTAL - MILLS
2000 $ 129,304,679 $ 26.97
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.
21
<PAGE> 19
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
-----------------------------------------------------------------------
AVERAGE TOTAL STORES ANCHOR STORES
PERCENT -------------------------------------------------------------------------------------------
LEASED (1) TOTAL PER SQ. FT. TOTAL PER SQ. FT.
---------- -------------------- -------------------- ----------------------- --------------------
<S> <C> <C> <C> <C> <C>
THE BLOCK AT ORANGE
2000 91% $ 16,680,813 $ 28.35 $ 6,783,970 $ 18.86
1999 93 16,282,327 27.10 6,715,008 18.67
TOTAL (INCL THE BLOCK)
2000 94% $ 218,025,001 $ 17.12 $ 78,823,479 $ 10.22
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 $ 9,896,843 $ 43.26
1999 9,567,319 39.67
TOTAL (INCL THE BLOCK)
2000 $ 139,201,522 $ 27.71
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
$1,232,866 for 2000, $2,423,346 for 1999, $2,205,661 for 1998,
$2,066,991 for 1997, and $2,088,000 for 1996. 2000 includes an
estimate of annualized percentage rent.
22
<PAGE> 20
THE MILLS CORPORATION
SUMMARY OF OUTSTANDING CONSOLIDATED INDEBTEDNESS
(DOLLARS IN THOUSANDS)
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
Principal Annual
Balance Annual Interest Maturity Interest
(000's) Interest Rate Type Rate Date (000's)
------- ------------------ ---- ---- -------
<S> <C> <C> <C> <C> <C>
Potomac Mills/Gurnee Mills:
Tranche A $200,958 Fixed 6.905% 12/17/26 (1) $13,875
Tranche B 27,000 Fixed 7.021% 12/17/26 (1) 1,896
Tranche C 15,000 Fixed 7.235% 12/17/26 (1) 1,085
Tranche D 30,000 Fixed 7.701% 12/17/26 (1) 2,310
Franklin Mills and Liberty Plaza
Tranche A 106,941 Fixed 7.882% 06/01/27 (3) 8,429
Mortgage Loan 19,452 Fixed 7.440% 06/01/27 (3) 1,447
Mortgage Loan 12,717 Fixed 6.220% 06/01/27 (3) 791
Sawgrass Mills 285,000 Variable 275 bp over Libor 06/18/01 26,767 (6)
Ten Community Centers 111,197 Fixed 7.300% 02/01/29 8,117
Concord Mills Residual III 8,788 Variable 200 bp over Libor 12/31/00 759 (6)
---------- ---------
Total Property Mortgages 817,053 65,476
---------- ---------
Corporate Misc 147 Fixed 8.250% 10/31/00 12
Corporate Misc 2,400 Fixed 6.200% 07/15/00 149
Foodbrand 9,630 Fixed 10.340% 07/15/05 996
Corporate Line of Credit 50,000 Variable 225 bp over Libor 06/01/03 4,446 (6)
Corporate Line of Credit 61,045 Variable 275 bp over Libor 06/01/02 (8) 5,733 (6)
Sawgrass Residual 4,266 Variable 165 bp over Libor 01/18/01 331 (6)
---------- ---------
Total $944,541 $77,143
========== =========
<CAPTION>
Earliest day Recourse to
at which debt Company or
can be repaid Op. Ptnrshp
------------- -----------
<S> <C> <C>
Potomac Mills/Gurnee Mills:
Tranche A (2) 0%
Tranche B (2) 0%
Tranche C (2) 0%
Tranche D (2) 0%
Franklin Mills and Liberty Plaza 0%
Tranche A (4) 0%
Mortgage Loan (4) 0%
Mortgage Loan (4) 0%
Franklin Mills and Liberty Plaza (4) 0%
Sawgrass Mills (5) 0%
Ten Community Centers (11) 0%
Concord Mills Residual III (12) 100%
Total Property Mortgages
Corporate Misc (9) 0%
Corporate Misc (9) 0%
Foodbrand (14) 100%
Corporate Line of Credit (7), (13) 0%
Corporate Line of Credit (7), (8) 100%
Sawgrass Residual (10) 0%
Total
</TABLE>
(1) This indebtedness is a 30 year amortizing loan with an anticipated
balloon repayment on December 18, 2003. In the event the mortgage loan is
not repaid by the anticipated balloon repayment date, the annual interest
rate for each tranche will be increased by 2% per annum in excess of the
stated interest rate. In addition, excess cash flow available after
payment of the increased interest rate and scheduled amortization will be
used to reduce the principal balance of the loan. Principal repayments
are based on the scheduled amortization, assuming a 7% mortgage interest
rate, over a 30 year period, with the monthly amortization payments being
applied sequentially, beginning with Tranche A to reduce the principal
balance.
(2) Prepayments, in whole or in part, are permitted upon at least 15 days
notice. In addition, the Company is required to pay a prepayment penalty
equal to the greater of (i) 1% of the remaining principal balance or (ii)
a yield preservation payment. Generally, yield preservation payments are
intended to compensate the lender for the total amount of interest it
would have earned on the indebtedness but for the repayment, less the
amount of interest that the lender could have earn if it invested the
repayment in United States Treasury obligations or other similar
securities from the date of the repayment through the maturity date of
the indebtedness.
(3) This indebtedness is a 30 year amortizing loan with an anticipated
balloon repayment on May 5, 2007. In the event the mortgage loan is not
repaid by the anticipated balloon repayment date, the annual interest
rate will be increased by 5% per annum in excess of the stated interest
rate. In addition, excess cash flow available after payment of the
increased interest rate and scheduled amortization will be used to reduce
the principal balance of the loan.
(4) This indebtedness may be prepaid, without a prepayment penalty, beginning
180 days prior to May 5, 2007. Prior to that date, there is no right to
prepay the indebtedness, except that $12.5 million of the principal
balance, which has been allocated to the Liberty Plaza shopping center,
may be defeased through the establishment of defeasance collateral (which
may include government or agency securities that have the full faith and
credit of the United States government).
(5) The indebtedness is a non-amortizing loan with an anticipated balloon
payment date of June 18, 2001. Prepayment on the entire loan balance is
permitted with a prepayment penalty of $2,215.
(6) Calculated using 30-day LIBOR at 6.64188%, which was the rate at June 30,
2000.
(7) Prepayable, in whole or in part, at any time without prepayment penalty.
(8) The total commitment under the Line of Credit is $75,000. Funds are
available subject to certain performance measures and restrictive
covenants. This loan bears interest at a variable rate ranging from 175
bp to 275 bp over Libor subject to certain leverage tests (Libor + 275 bp
at 6/30/00).
(9) Primarily corporate debt with maturities under one year. Prepayable, in
whole or in part, at any time without prepayment penalty.
(10) Prepayable, in whole or in part, at any time, upon 3 days prior notice to
lender without prepayment penalty.
(11) The 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. The
indebtedness matures on December 31, 2000.
(13) The $50 million portion of the line of credit is secured by the Company's
interest in the Franklin Mills property. The loan has mandatory principal
repayments in the amount of $5 million due on or before June 1, 2001 and
$10 million due on or before June 1, 2002.
(14) The indebtedness relates to capital leases for fixtures and equipment for
Foodbrand operations at Katy Mills, Franklin Mills and Opry Mills. The
leases have five year terms and are guaranteed by the Company.
23
<PAGE> 21
THE MILLS CORPORATION
SUMMARY OF OUTSTANDING UNCONSOLIDATED INDEBTEDNESS
(DOLLARS IN THOUSANDS)
AS OF JUNE 30, 2000
<TABLE>
<CAPTION>
Principal Annual
Balance Total Interest Rate Annual Interest Maturity Interest
(000's) Commitment Type Rate Date (000's)
------- ---------- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C> <C>
Arizona Mills $ 142,214 $ 142,214 Variable 130 bp over Libor (5) 02/01/02 $11,294 (4)
Grapevine Mills 155,000 155,000 Fixed 6.465% 09/01/32 (8) 10,021
Ontario Mills 142,868 145,000 Fixed 6.750% 12/01/28 (9) 9,644
City Block at Orange 128,616 136,000 Variable 135 bp over Libor (6) 01/22/02 10,279 (4)
Sawgrass Phase III 44,000 44,000 Variable 110 bp over Libor (7) 01/18/01 3,406 (4)
Sawgrass Phase III 3,346 6,500 Variable 275 bp over Libor 01/18/01 314 (4)
Concord Mills 176,869 199,000 Variable 120 bp over Libor (13) 12/02/01 13,870 (4)
Katy Mills 163,663 168,000 Variable 175 bp over Libor 03/31/02 13,734 (4)
Opry Mills 147,973 168,000 Variable 200 bp over Libor 10/01/02 12,788 (4)
Arundel Mills 23,055 191,000 Variable 165 bp over Libor 05/30/03 1,912 (4)
Arundel Mills 10,000 10,000 Variable 225 bp over Libor 10/31/00 889 (4)
Sugarloaf Mills 7,000 12,000 Variable 350 bp over Libor 12/20/00 710 (4)
----------- ----------- --------
Total $1,144,604 $1,376,714 $88,861
=========== =========== ========
<CAPTION>
Earliest day Recourse to
at which debt Company or
can be repaid Op. Ptnrshp
------------- -----------
<S> <C> <C>
Arizona Mills (1) 9.2% (10)
Grapevine Mills (2) 0.0%
Ontario Mills (3) 0.0%
City Block at Orange (3) 26.7% (11)
Sawgrass Phase III (15) 0.0% (12)
Sawgrass Phase III (15) 0.0% (12)
Concord Mills (2) 10.0% (13)
Katy Mills (15) 25.0% (14)
Opry Mills (16) 100.0% (17)
Arundel Mills (18) 50.0% (19)
Arundel Mills (18) 50.0% (19)
Sugarloaf Mills (18) 100.0% (20)
Total
</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 6.64188%, which was the rate at June 30,
2000.
(5) The loan is a construction facility with a maximum availability of
$142,214. The rate is capped at 9.5% until maturity, plus credit spread,
based on one month LIBOR.
(6) Interest Rate shall be LIBOR plus (a) 165 basis points until the
following conditions have been satisfied: (i) the Construction Phase
Completion Date has occurred, (ii) the Grand Opening Date has occurred,
(iii) 33% of the Specialty Space has been and continues to be leased to
Specialty Tenants and 55% of the Anchor Space has been and continues to
be leased to Anchors, (iv) the DSC Ratio for any Calculation Period is
equal to or greater than 1.00 and (v) no Event of Default is continuing.
Once these conditions have been satisfied the Interest Rate shall be
LIBOR plus 150 bp. A further reduction to Libor plus 135 bp shall occur
once the DSC Ratio for any period is equal to or greater than 1.25.
Interest Rate will reduce to LIBOR plus 125 bp when the DSC Ratio for any
period is equal to or greater than 1.40. Interest Rate will reduce to
LIBOR plus 115 bp when the DSC Ratio for any period is equal to or
greater than 1.50.
(7) Interest Rate shall be LIBOR plus (a) 165 basis points until the
following conditions have been satisfied: (i) the Construction Phase
Completion Date has occurred and the project has achieved a DSC ratio of
1.00, the interest rate shall be LIBOR plus 150 bp; (ii) the project has
achieved a DSC ratio of 1.30 and a debt yield of 12.0% for a minimum of
three months, the interest rate shall be LIBOR plus 125 bp; (iii) the
project has achieved a DSC ratio of 1.35 and a debt yield of 12.5% for a
subsequent three months, the interest rate will be LIBOR plus 110 bp.
(8) This indebtedness is a 30 year amortizing loan with an anticipated
repayment date on October 1, 2008. The loan has an interest only period
through September 1, 2002. In the event the mortgage loan is not repaid
by the anticipated balloon repayment date, the annual interest rate will
be the greater of (i) the loan interest rate plus 2% or (ii) the yield
calculated by linear interpolation of the yields of noncallable United
States Treasury obligations with terms (one longer and one shorter) most
nearly approximating the period from such date of determination to the
anticipated repayment date.
(9) This indebtedness is a 30 year amortizing loan with an anticipated
repayment date on December 1, 2008. In the event the mortgage is not
repaid by the anticipated balloon repayment date, the annual interest
rate will be the greater of (i) the loan interest rate plus 5% or (ii)
the Treasury Rate plus 5%.
(10) Principal is guaranteed on a several basis by each partner (the Company's
share is 36.8%) reduced as follows: (i) as of closing, the "Guaranteed
Amount" was 100% of Loan Amount; (ii) upon completion of construction,
opening and achieving $16,000 of "In-Place Minimum Rent," the Guaranteed
Amount will reduce to 50%; (iii) upon achieving a 13.5% "Debt Yield,"
("Debt Yield" is defined as EBITDA to total loan commitment) the
Guaranteed Amount will reduce to 25% of the Loan Amount; (iv) upon
achieving a 15% "Debt Yield," the Guaranteed Amount will reduce to 15% of
the Loan Amount; and (v) upon achieving a 17% Debt Yield and an appraised
value indicating a loan to value ratio of no greater than 55%, the
Guaranteed Amount will reduce to $0. As of June 30, 2000, the Company's
share of the Guaranteed Amount was reduced from 36.8% to 9.2% according
to the above formula.
(11) Principal is guaranteed by the Company, reduced as follows: (i) as of
closing, the "Guaranteed Amount" was 100% of Loan Amount; (ii) upon
construction completion, grand opening and a Debt Service Coverage ratio
of 1.00 the Guaranteed Amount will reduce to $68,000; (iii) upon
achieving a DSC ratio of 1.25 the Guaranteed Amount will reduce to
$34,000; (iv) upon achieving a DSC Ratio of 1.40 the Guaranteed Amount
will reduce to 10%; and (v) upon achieving a DSC Ratio of 1.50 the
Guaranteed Amount will reduce to 0%. As of June 30, 2000 the guarantee
amount was $34,000.
(12) Principal is guaranteed by the Company, reduced as follows: (i) as of
closing, the "Guaranteed Amount" was 100% of Loan Amount; (ii) upon
achieving a DSC Ratio of 1.35 and a debt yield of 12.5% will reduce to
0%. As of June 30, 2000, the guarantee amount was 0%.
(13) The loan commitment has a term of three years with two one-year options.
The interest rate will be Libor plus 135 basis points until completion
and occupancy requirements are met. Once achieved, the interest rate will
be Libor plus 120 basis points. The interest rate can be further reduced
to Libor plus 110 basis points when the project achieves a debt service
coverage for three months of 1.35. The new loan is guaranteed severally
by the Company (50%) and Simon Property Group, L.P. (50%) and can be
reduced as follows: (i) as of closing, the "Guaranteed Amount" was 100%
of loan amount; (ii) 50% upon achieving completion and occupancy
requirements; (iii) 35% upon achieving a DSC ratio of 1.20 for three
consecutive months; (iv) 20% upon achieving a DSC ratio of 1.35 for three
consecutive months subsequent to the prior condition. As of June 30,
2000, the guarantee amount was 10%.
(14) The loan commitment has a term of three years with a one-year extension
option. The principal is guaranteed by the Company and can be reduced as
follows: (i) as of closing, the "Guaranteed Amount" was 100% of loan
amount; (ii) upon completion of construction, grand opening and a Debt
Service Coverage ratio of 1.00 the Guaranteed Amount will reduce to 50%;
(iii) upon achieving a Debt Service Coverage ratio of 1.25 the Guaranteed
Amount will reduce to 25%. As of June 30, 2000, the guarantee amount was
25%.
(15) This indebtedness may be prepaid, in whole or in part, upon 5 business
days notice to the Administrative Agent.
(16) The indebtedness may be prepaid, in whole or in part, upon 3 business
days notice to the Administrative Agent, provided that each prepayment
under this loan shall include all interest accrued on the amount of
principal prepaid (and all late charges and other sums that may be
payable) through the date of prepayment.
(17) The 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.
24
<PAGE> 22
THE MILLS CORPORATION
GROSS TENANT REPORTED SALES (1) (2)
JUNE 30, 2000
<TABLE>
<CAPTION>
Twelve Months ended June 30, 2000 Twelve Months ended June 30, 1999
---------------------------------------- -------------------------------------
Sq Ft Sales psf Sq Ft Sales psf
----- ----- --- ----- ----- ---
<S> <C> <C> <C> <C> <C> <C>
Potomac Mills:
Anchor/Majors 923,435 $ 211,655,680 $229 904,826 $ 200,551,312 $222
Specialty 573,213 190,689,770 333 587,957 190,018,961 323
Temporary/Kiosk - 4,836,698 - - 4,114,097 -
-------------------------------------------- ----------------------------------------
1,496,648 $ 407,182,148 $272 1,492,783 $ 394,684,370 $264
Franklin Mills:
Anchor/Majors 962,159 $ 159,444,823 $166 968,092 $ 153,244,354 $158
Specialty 513,067 164,381,876 320 542,651 166,811,030 307
Temporary/Kiosk - 6,230,772 - - 4,793,768 -
-------------------------------------------- ----------------------------------------
1,475,226 $ 330,057,471 $224 1,510,743 $ 324,849,152 $215
Sawgrass Mills:
Anchor/Majors 1,126,737 $ 349,289,042 $310 1,109,979 $ 334,669,756 $302
Specialty 639,626 277,368,348 434 661,947 293,734,248 444
Temporary/Kiosk - 8,220,435 - - 17,740,081 -
-------------------------------------------- ----------------------------------------
1,766,363 $ 634,877,825 $359 1,771,926 $ 646,144,085 $365
Gurnee Mills:
Anchor/Majors 843,010 $ 138,230,507 $164 825,725 $ 145,319,645 $176
Specialty 547,792 163,847,041 299 558,324 160,927,535 288
Temporary/Kiosk - 7,141,796 - - 7,585,941 -
-------------------------------------------- ----------------------------------------
1,390,802 $ 309,219,344 $222 1,384,049 $ 313,833,121 $227
Ontario Mills:
Anchor/Majors 928,121 $ 153,680,701 $166 842,304 $ 139,662,513 $166
Specialty 459,244 173,600,304 378 483,315 170,723,896 353
Temporary/Kiosk - 6,811,701 - - 7,915,682 -
-------------------------------------------- ----------------------------------------
1,387,365 $ 334,092,706 $241 1,325,619 $ 318,302,091 $240
Grapevine Mills:
Anchor/Majors 847,860 $ 185,712,493 $219 701,060 $ 114,973,392 $164
Specialty 495,967 148,264,834 299 505,258 145,973,287 289
Temporary/Kiosk - 9,833,096 - - 8,763,636 -
-------------------------------------------- ----------------------------------------
1,343,827 $ 343,810,423 $256 1,206,318 $ 269,710,315 $224
Arizona Mills:
Anchor/Majors 678,299 $ 120,035,702 $177 692,169 $ 115,040,237 $166
Specialty 475,110 150,263,508 316 476,805 140,772,419 295
Temporary/Kiosk - 3,083,420 - - 12,364,708 -
-------------------------------------------- ----------------------------------------
1,153,409 $ 273,382,630 $237 1,168,974 $ 268,177,364 $229
The Oasis at Sawgrass:
Anchor/Majors 134,860 $ 13,785,489 $102 N/A (1) N/A (1) N/A (1)
Specialty 129,892 65,169,101 502 N/A (1) N/A (1) N/A (1)
Temporary/Kiosk - - - N/A (1) N/A (1) N/A (1)
-------------------------------------------- ----------------------------------------
264,752 $ 78,954,590 $298 N/A (1) N/A (1) N/A (1)
Total Mills
Anchor/Majors 6,444,481 $1,331,834,437 $207 6,044,155 $1,203,461,209 $199
Specialty 3,833,911 1,333,584,782 348 3,816,257 1,268,961,376 333
Temporary Kiosk - 46,157,918 - - 63,277,913 -
-------------------------------------------- ----------------------------------------
10,278,392 $2,711,577,137 $264 9,860,412 $2,535,700,498 $257
============================================ ========================================
The Block at Orange
Anchor/Majors 357,794 $ 64,131,854 $179 N/A (1) N/A (1) N/A (1)
Specialty 231,251 83,414,403 361 N/A (1) N/A (1) N/A (1)
Temporary/Kiosk - 5,265,610 - N/A (1) N/A (1) N/A (1)
-------------------------------------------- ----------------------------------------
589,045 $ 152,811,867 $259 N/A (1) N/A (1) N/A (1)
Total Mills and The Block
Anchor/Majors 6,802,275 $1,395,966,291 $205 6,044,155 $1,203,461,209 $199
Specialty 4,065,162 1,416,999,185 349 3,816,257 1,268,961,376 333
Temporary Kiosk - 51,423,528 - - 63,277,913 -
-------------------------------------------- ----------------------------------------
10,867,437 $2,864,389,004 $264 9,860,412 $2,535,700,498 $257
============================================ ========================================
<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
The Oasis at Sawgrass:
Anchor/Majors N/A (1) N/A (1) N/A (1)
Specialty N/A (1) N/A (1) N/A (1)
Temporary/Kiosk N/A (1) N/A (1) N/A (1)
-----------------------------------------
N/A (1) N/A (1) N/A (1)
Total Mills
Anchor/Majors 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) Concord Mills, Katy Mills and Opry Mills are excluded from the respective
periods where they did not have twelve months of tenant reported sales
data, since they did not open until September 1999, October 1999 and May
2000, respectively.
(2) Anchor/Major sales include sales from certAnchor/Major sales include
sales from certain anchor tenants that own their parcels.
25
<PAGE> 23
THE MILLS CORPORATION
COMPARABLE SPECIALTY STORE TENANT SALES
SIX MONTHS 2000 VS. SIX MONTHS 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
YTD YTD
Jun. 30, 2000 Jun. 30, 1999 Percentage
Sales Sales Change
----- ----- ------
Property Name:
--------------
<S> <C> <C> <C>
Potomac Mills $ 69,502 $ 71,236 -2.4%
Franklin Mills 60,316 61,523 -2.0%
Sawgrass Mills 104,088 103,533 0.5%
Gurnee Mills 54,300 55,751 -2.6%
Ontario Mills 63,796 59,023 8.1%
Grapevine Mills 54,250 54,525 -0.5%
Arizona Mills 57,630 53,141 8.5%
----------- ---------- --------
Total Mills $ 463,882 $ 458,732 1.1%
=========== ========== ========
The Block at Orange $ 31,544 $ 28,026 12.6%
----------- ---------- --------
Total including The Block $ 495,426 $ 486,758 1.8%
=========== ========== ========
</TABLE>
Note: Comparable sales presented above are based on tenant reported sales for
the six months of 2000 versus the six months of 1999 and include only
those tenants that have been in occupancy for the past 18 months.
26
<PAGE> 24
THE MILLS CORPORATION
CAPITAL EXPENDITURES
MILLS, BLOCK AND COMMUNITY CENTERS COMBINED (9, 10)
<TABLE>
<CAPTION>
Six Months Ended Year ended December 31,
June 30, 2000 1999 1998
---------------- ----------- -----------
<S> <C> <C> <C>
RECURRING NON-TENANT CAPITAL EXPENDITURES (1)
Costs $ 200,840 $ 284,206 $ 1,356,290
Per Square Foot (2) 0.02 0.03 0.12
RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 1,666,280 $ 3,934,656 $ 4,497,574
Per Square Foot Improved (4) 6.16 8.52 7.85
Per Square Foot (2) 0.18 0.38 0.46
Total Recurring Costs
Costs $ 1,867,120 $ 4,218,862 $ 5,853,864
Per Square Foot (2) 0.19 0.41 0.58
NON RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $10,419,463 (7) $22,811,936 (7) $18,774,753 (7)
Per Square Foot Improved (5) 49.13 51.85 71.68
Per Square Foot (2) 0.80 1.91 1.58
WORK IN PROCESS (6)
Cummulative Costs $ 6,255,912 $ 2,676,259 $ 8,447,326
Cummulative Per Square Foot Improved (8) 24.03 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 less than 12 months 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.
27
<PAGE> 25
THE MILLS CORPORATION
CAPITAL EXPENDITURES
MILLS AND BLOCK PORTFOLIO (9, 10)
<TABLE>
<CAPTION>
Six Months Ended Year ended December 31,
June 30, 2000 1999 1998
--------------- ----------- -----------
<S> <C> <C> <C>
RECURRING NON-TENANT CAPITAL EXPENDITURES (1)
Costs $ 74,181 $ 111,657 $ 852,262
Per Square Foot (2) 0.01 0.01 0.10
RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 985,610 $ 3,647,528 $ 3,304,643
Per Square Foot Improved (4) 7.14 9.28 8.53
Per Square Foot (2) 0.15 0.44 0.44
Total Recurring Costs
Costs $ 1,059,791 $ 3,759,185 $ 4,156,905
Per Square Foot (2) 0.16 0.45 0.54
NON RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $10,034,253 (7) $16,842,194 (7) $18,038,585 (7)
Per Square Foot Improved (5) 58.18 64.28 96.48
Per Square Foot (2) 0.93 1.73 1.86
WORK IN PROCESS (6)
Cummulative Costs $ 2,097,813 $ 1,955,746 $ 6,779,660
Cummulative Per Square Foot Improved (8) 14.52 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 less than 12 months 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.
28
<PAGE> 26
THE MILLS CORPORATION
CAPITAL EXPENDITURES
COMMUNITY CENTERS
<TABLE>
<CAPTION>
Six Months Ended Year ended December 31,
March 31, 2000 1999 1998
---------------- ---------- ----------
<S> <C> <C> <C>
RECURRING NON-TENANT CAPITAL EXPENDITURES (1)
Costs $ 126,659 $ 172,549 $ 504,028
Per Square Foot (2) 0.06 0.08 0.23
RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 680,669 $ 287,128 $1,192,931
Per Square Foot Improved (4) 4.63 3.83 6.10
Per Square Foot (1) 0.31 0.13 0.54
Total Recurring Costs
Costs $ 807,328 $ 459,677 $1,696,959
Per Square Foot (2) 0.37 0.21 0.77
NON RECURRING TENANT IMPROVEMENTS/LEASING COSTS (3)
Costs $ 385,211 $5,969,742 $ 736,168
Per Square Foot Improved (5) 9.71 33.49 9.76
Per Square Foot (2) 0.17 2.71 0.33
WORK IN PROCESS (6)
Cummulative Costs $4,158,099 $ 720,513 $1,667,666
Cummulative Per Square Foot Improved (7) 35.89 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.
28
