Item 2. Properties
ITEM 2. PROPERTIES
As of December 31, 2021, we owned interests in a portfolio of 180 operating retail properties totaling approximately 29.0 million square feet and one office property with 0.3 million square feet in 24 states. Of the 180 operating retail properties, 11 contain an office component. We also own interests in eight development projects under construction. See “ Schedule III – Consolidated Real Estate and Accumulated Depreciation ” for a list of encumbrances on our properties.
Operating Properties
The following table summarizes the Company’s operating properties by region and state as of December 31, 2021:
(GLA and ABR in thousands) Total Retail Operating Portfolio Total Office Components
Region/State Number of Properties 1
Owned
GLA/NRA 2
Total
% Leased Total
Weighted ABR 3
% of
Weighted ABR 3
Owned
GLA/NRA 2
Total
% Leased Total
Weighted ABR 3
% of
Weighted ABR 3
South
Texas 45 7,718 93.0 % $ 141,449 24.0 % 434 84.2 % $ 11,350 1.9 %
Florida 29 3,537 92.9 % 58,314 9.9 % 38 97.9 % 1,054 0.2 %
Maryland 7 1,745 92.0 % 34,147 5.8 % 224 100.0 % 3,314 0.6 %
North Carolina 8 1,537 94.0 % 30,306 5.1 % — — % — — %
Virginia 7 1,121 88.6 % 27,864 4.7 % 158 96.4 % 5,007 0.8 %
Georgia 10 1,706 99.4 % 25,716 4.4 % — — % — — %
Tennessee 3 580 98.4 % 8,158 1.4 % — — % — — %
Oklahoma 3 505 88.5 % 7,455 1.3 % — — % — — %
South Carolina 2 258 95.4 % 3,073 0.5 % — — % — — %
Total South 114 18,707 93.4 % 336,482 57.1 % 854 91.2 % 20,725 3.5 %
West
Washington 10 1,682 94.3 % 29,702 5.0 % — — % — — %
Nevada 4 766 98.7 % 23,976 4.1 % — — % — — %
California 3 652 98.6 % 14,738 2.5 % — — % — — %
Arizona 5 727 95.7 % 14,425 2.4 % — — % — — %
Utah 2 392 97.0 % 7,417 1.3 % — — % — — %
Total West 24 4,219 96.3 % 90,258 15.3 % — — % — — %
Midwest
Indiana 16 1,618 90.4 % 28,220 4.8 % 369 100.0 % 7,285 1.2 %
Illinois 9 1,264 89.2 % 25,958 4.4 % 163 73.8 % 4,013 0.7 %
Michigan 1 308 83.6 % 6,602 1.1 % — — % — — %
Missouri 1 453 92.3 % 4,124 0.7 % — — % — — %
Ohio 1 236 89.0 % 1,899 0.3 % — — % — — %
Total Midwest 28 3,879 89.6 % 66,803 11.3 % 532 92.0 % 11,298 1.9 %
Northeast
New York 8 1,212 95.1 % 34,312 5.8 % 174 100.0 % 7,527 1.3 %
New Jersey 4 343 89.6 % 10,999 1.9 % — — % — — %
Massachusetts 1 272 96.2 % 5,435 0.9 % — — % — — %
Connecticut 1 206 89.3 % 3,625 0.6 % — — % — — %
Pennsylvania 1 136 100.0 % 1,982 0.4 % — — % — — %
Total Northeast 15 2,169 94.1 % 56,353 9.6 % 174 100.0 % 7,527 1.3 %
Total 181 28,974 93.4 % $ 549,896 93.3 % 1,560 92.4 % $ 39,550 6.7 %
1 Number of properties represents consolidated and unconsolidated retail properties and the Company’s single standalone office property in Indianapolis, IN.
2 Owned GLA/NRA represents gross leasable area owned by the Company and excludes the square footage of development and redevelopment projects.
3 Weighted ABR and percent of weighted ABR includes ground lease rent and represents the Company’s share of the ABR at consolidated and unconsolidated properties.
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Development and Redevelopment Projects
In addition to our operating properties, as of December 31, 2021, we owned an interest in eight development projects currently under construction. The following table sets forth information with respect to the Company’s active development projects as of December 31, 2021:
($ in thousands)
Project MSA KRG Ownership % Projected
Completion Date 1
Total
Commercial GLA Total
Multifamily Units Total
Project Costs 2
KRG Equity
Requirement 2
KRG
Remaining Spend Estimated
Stabilized NOI
to KRG Estimated Remaining
NOI to Come Online 3
Active Projects
Eddy Street Commons at Notre Dame, IN – Phase III South Bend, IN 100% Q1 2022 18,600 — $ 7,500 $ 7,500 $ 1,200 $0.6M–$0.7M $0.4M–$0.5M
Shoppes at Quarterfield Washington, D.C./Baltimore 100% Q2 2022 58,000 — 4,800 4,800 3,900 $1.0M–$1.1M $0.0M–$0.1M
One Loudoun – Residential Washington, D.C./Baltimore 90% Q2 2022 — 378 13,500 13,500 8,325 $6.3M–$6.5M $4.8M–$5.0M
Circle East Washington, D.C./Baltimore 100% Q3 2022 82,000 370 15,100 15,100 14,700 $1.9M–$2.2M $1.1M–$1.4M
One Loudoun – Pads G&H Commercial Washington, D.C./Baltimore 100% Q2 2023 67,000 — 10,200 10,200 8,600 $1.7M–$2.1M $0.2M–$0.6M
The Landing at Tradition – Phase II Port St. Lucie, FL 100% Q2 2023 39,900 — 10,900 10,900 10,800 $1.1M–$1.2M $0.6M–$0.7M
Carillon MOB Washington, D.C./Baltimore 100% Q4 2024 126,000 — 59,700 59,700 57,600 $3.5M–$4.0M $3.1M–$3.6M
The Corner – IN 4
Indianapolis, IN 50% Q4 2024 24,000 285 63,900 — — $1.7M–$1.9M $1.7M–$1.9M
Total 415,500 1,033 $ 185,600 $ 121,700 $ 105,125 $17.8M–$19.7M $11.9M–$13.8M
1 Completion date represents the earlier of one year after expected completion of project construction or expected substantial occupancy of the property.
2 Total project costs and KRG equity requirement represent expected costs to KRG post-merger and exclude any costs spent to date prior to the Merger.
3 Excludes in-place NOI and NOI related to tenants that have signed leases but have not yet commenced paying rent.
4 KRG does not have any equity requirements related to this development. Total project costs are at 100% and are net of a $13.5 million TIF.
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Tenant Diversification
No individual retail or office tenant accounted for more than 2.5% of the portfolio’s ABR for the year ended December 31, 2021. The following table sets forth certain information for the largest 25 tenants open for business at the Company’s retail properties based on minimum rents in place as of December 31, 2021:
($ and GLA in thousands, except per square foot data)
Tenant Number of Stores 1
Total Leased GLA/NRA 2
ABR 3
ABR
per Sq. Ft. 3
% of Weighted
ABR 4
The TJX Companies, Inc. 5
44 1,294 $ 14,536 $ 11.24 2.5 %
Best Buy Co., Inc. 6
16 633 10,915 17.25 2.0 %
Ross Stores, Inc. 31 885 10,444 11.80 1.9 %
PetSmart, Inc. 31 637 10,241 16.07 1.8 %
Michaels Stores, Inc. 29 651 8,814 13.54 1.6 %
Gap Inc. 7
35 468 8,490 18.14 1.5 %
Bed Bath & Beyond Inc. 8
23 613 8,303 13.55 1.5 %
Dick's Sporting Goods, Inc. 9
12 591 7,187 12.15 1.3 %
Publix Super Markets, Inc. 14 669 6,884 10.28 1.3 %
Albertsons Companies, Inc. 10
9 481 6,613 13.74 1.2 %
Lowe's Companies, Inc. 7 168 400 2.38 1.1 %
The Kroger Co. 11
10 355 3,460 9.73 1.0 %
Petco Health And Wellness
Company, Inc.
22 299 5,346 17.90 1.0 %
Ulta Beauty, Inc. 24 248 5,589 22.51 0.9 %
Total Wine & More 13 305 5,069 16.60 0.9 %
BJ's Wholesale Club, Inc. 2 245 4,939 20.18 0.9 %
Five Below, Inc. 29 258 4,901 18.97 0.9 %
Kohl's Corporation 7 361 2,993 8.28 0.9 %
Burlington Stores, Inc. 8 445 4,496 10.11 0.8 %
Ahold U.S.A. Inc. 12
4 239 4,464 18.66 0.8 %
Mattress Firm Group Inc. 13
32 158 4,417 27.97 0.8 %
DSW Designer Shoe
Warehouse
16 314 4,678 14.92 0.8 %
Office Depot, Inc. 14
14 308 4,347 14.11 0.8 %
Fitness International, LLC 5 205 4,092 19.92 0.7 %
Party City Holdings Inc. 18 263 3,988 15.17 0.7 %
Total Top Tenants 455 11,093 $ 155,606 $ 14.03 29.6 %
1 Number of stores represents stores at consolidated and unconsolidated properties.
2 Excludes the square footage of structures located on land owned by the Company and ground-leased to tenants.
3 ABR represents the monthly contractual rent for December 31, 2021, for each applicable tenant multiplied by 12 and does not include tenant reimbursements. ABR represents 100% of the ABR at consolidated properties and the Company's share of the ABR at unconsolidated properties excluding ground lease rent.
4 Percent of weighted ABR includes ground lease rent and represents the Company's share of the ABR at consolidated and unconsolidated properties.
5 Includes TJ Maxx (19), Marshalls (13), HomeGoods (10), Homesense (1) and T.J. Maxx & HomeGoods combined (1).
6 Includes Best Buy (15) and Pacific Sales (1).
7 Includes Old Navy (25), The Gap (5), Banana Republic (3) and Athleta (2).
8 Includes Bed Bath and Beyond (14) and buybuy BABY (9).
9 Includes Dick's Sporting Goods (11) and Golf Galaxy (1).
10 Includes Safeway (4), Jewel-Osco (3) and Tom Thumb (2).
11 Includes Kroger (6), Harris Teeter (2), QFC (1) and Smith's (1).
12 Includes Stop & Shop (3) and Giant Foods (1).
13 Includes Mattress Firm (27) and Sleepy's (5).
14 Includes Office Depot (11) and OfficeMax (3).
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Lease Expirations
In 2022, leases representing 9.1% of total retail ABR are scheduled to expire. The following tables show scheduled lease expirations for retail and office tenants and tenants open for business at in-process development projects as of December 31, 2021, assuming none of the tenants exercise renewal options.
($ in thousands, except per square foot data)
Retail Portfolio
Expiring GLA – Retail 2
Expiring ABR per Sq. Ft. 3
Number of
Expiring Leases 1
Shop Tenants Anchor Tenants Expiring ABR
(Pro-rata) % of
Total ABR
(Pro-rata) Shop Tenants Anchor Tenants Total
2022 520 1,177,508 1,196,248 $ 47,408 9.1 % $ 28.33 $ 11.81 $ 19.99
2023 585 1,361,374 2,634,810 78,221 15.0 % 30.43 13.99 19.59
2024 584 1,334,044 2,580,920 75,482 14.5 % 32.09 13.50 20.06
2025 442 1,061,370 2,551,286 64,728 12.4 % 30.80 12.86 18.17
2026 436 984,890 2,447,939 63,743 12.3 % 30.43 14.11 18.86
2027 309 763,399 1,915,123 46,774 9.0 % 29.40 12.88 17.61
2028 166 422,238 956,761 28,473 5.5 % 33.39 15.07 20.67
2029 154 359,184 1,111,043 30,350 5.8 % 32.76 16.78 20.67
2030 124 375,170 565,268 19,201 3.7 % 28.97 15.10 20.57
2031 123 339,768 606,950 20,070 3.9 % 31.09 15.83 21.27
Beyond 149 328,386 2,067,162 45,829 8.8 % 31.66 17.43 19.37
3,592 8,507,331 18,633,510 $ 520,279 100.0 % $ 30.61 $ 14.23 $ 19.40
Office Portfolio
Expiring GLA 2
Number of
Expiring Leases 1
Office
Tenants Expiring ABR
(Pro-rata) % of
Total ABR
(Pro-rata) Expiring ABR
per Sq. Ft. 3
2022 47 361,608 $ 8,872 22.4 % $ 24.53
2023 35 126,396 3,878 9.8 % 30.68
2024 42 234,639 6,354 16.1 % 27.08
2025 11 166,084 3,531 8.9 % 21.26
2026 11 51,422 1,727 4.4 % 33.59
2027 10 61,513 2,094 5.3 % 34.03
2028 5 112,519 2,951 7.5 % 26.23
2029 5 75,943 2,813 7.1 % 37.04
2030 4 41,061 903 2.3 % 21.99
2031 4 121,003 3,058 7.7 % 25.28
Beyond 4 90,599 3,369 8.5 % 37.19
178 1,442,787 $ 39,550 100.0 % $ 27.41
1 Lease expiration tables reflect rents in place as of December 31, 2021 and does not include option periods; 2022 expirations include 74 month-to-month tenants and 10 month-to-month office tenants. This column also excludes ground leases.
2 Expiring GLA excludes estimated square footage attributable to non-owned structures on land owned by the Company and ground-leased to tenants.
3 ABR represents the monthly contractual rent as of December 31, 2021 for each applicable tenant multiplied by 12. Excludes tenant reimbursements and ground lease revenue.
Lease Activity – New and Renewal
In 2021, the Company executed new and renewal leases on 363 individual spaces totaling 2.6 million square feet (10.7% cash leasing spread on 245 comparable leases). New leases were signed on 132 individual spaces for 0.7 million square feet of GLA (24.2% cash leasing spread on 67 comparable leases), while renewal leases were signed on 231 individual spaces for 1.8 million square feet of GLA (6.9% cash leasing spread on 178 comparable leases). Total executed leases includes leasing activity for the legacy RPAI portfolio from October 22, 2021 through December 31, 2021.
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