Item 2. Properties
ITEM 2. PROPERTIES
As of December 31, 2022, we owned interests in a portfolio of 183 operating retail properties totaling approximately 28.8 million square feet and one office property with 0.3 million square feet in 24 states. Of the 183 operating retail properties, 11 contain an office component. We also own interests in three 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 geographic diversity of the Company’s retail operating properties by region and state, ranked by ABR, as of December 31, 2022 (GLA and ABR in thousands) :
Region/State Number of Properties (1)
Owned
GLA/NRA (2)
Total
Weighted
Retail ABR (3)
% of
Weighted
Retail ABR (3)
South
Texas 45 7,620 $ 148,879 25.7 %
Florida 30 3,580 62,804 10.9 %
Maryland 9 1,784 39,074 6.8 %
North Carolina 8 1,536 31,443 5.4 %
Virginia 7 1,135 29,566 5.1 %
Georgia 10 1,707 26,235 4.5 %
Tennessee 3 580 8,317 1.4 %
Oklahoma 3 505 7,951 1.4 %
South Carolina 2 258 3,126 0.5 %
Total South 117 18,705 357,395 61.7 %
West
Washington 10 1,683 30,979 5.4 %
Nevada 5 839 27,794 4.8 %
California 3 655 16,416 2.8 %
Arizona 5 725 15,116 2.6 %
Utah 2 388 8,026 1.4 %
Total West 25 4,290 98,331 17.0 %
Midwest
Indiana 15 1,624 29,290 5.1 %
Illinois 8 1,163 24,360 4.2 %
Michigan 1 308 7,150 1.2 %
Missouri 1 453 4,197 0.7 %
Ohio 1 236 1,912 0.3 %
Total Midwest 26 3,784 66,909 11.5 %
Northeast
New York 8 1,083 34,553 6.0 %
New Jersey 4 340 11,681 2.0 %
Massachusetts 1 272 4,873 0.8 %
Connecticut 1 206 3,639 0.6 %
Pennsylvania 1 136 1,982 0.4 %
Total Northeast 15 2,037 56,728 9.8 %
Total 183 28,816 $ 579,363 100.0 %
(1) Number of properties represents consolidated and unconsolidated retail properties.
(2) Owned GLA/NRS represents gross leasable area owned by the Company and excludes the square footage of development and redevelopment projects.
(3) Total weighted retail ABR and percent of weighted retail 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, 2022, we owned an interest in three development projects currently under construction. The following table sets forth information with respect to the Company’s active development projects as of December 31, 2022 (dollars in thousands) :
Project Metropolitan
Statistical Area (MSA) KRG
Ownership % Projected
Completion Date (1)
Total
Commercial GLA Total
Multifamily Units Total Project Costs – at KRG's Share (2)
KRG Equity
Requirement (2)
KRG
Remaining Spend Estimated
Stabilized NOI
to KRG Estimated Remaining
NOI to Come Online (3)
Active Projects
The Landing at Tradition – Phase II Port St. Lucie, FL 100% Q3 2023 39,900 — $ 11,200 $ 11,200 $ 4,600 $1.1M–$1.2M $0.3M–$0.5M
Carillon MOB Washington, D.C./Baltimore 100% Q4 2024 126,000 — 59,700 59,700 39,600 $3.5M–$4.0M $2.2M–$2.7M
The Corner – IN (4)
Indianapolis, IN 50% Q4 2024 24,000 285 31,900 — — $1.7M–$1.9M $1.7M–$1.9M
Total 189,900 285 $ 102,800 $ 70,900 $ 44,200 $6.3M–$7.1M $4.2M–$5.1M
(1) Projected completion date represents the earlier of one year after completion of project construction or substantial occupancy of the property.
(2) Total project costs and KRG equity requirement represent costs to KRG post-merger and exclude any costs spent to date prior to the merger.
(3) Estimated remaining NOI to come online excludes in-place NOI and NOI related to tenants that have signed leases but have not yet commenced paying rent.
(4) The Company does not have any equity requirements related to this development. Total project costs are at KRG’s share and are net of KRG’s share of a $13.5 million TIF.
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Tenant Diversification
No individual retail tenant accounted for more than 2.5% of the portfolio’s ABR for the year ended December 31, 2022. The following table summarizes the top 25 tenants at the Company’s retail properties based on minimum rents in place as of December 31, 2022 (GLA and dollars in thousands) :
Tenant Primary DBA/
Number of Stores Number of Stores (1)
Total
Leased GLA/NRA (2)
ABR (3)
% of Weighted
ABR (4)
The TJX Companies, Inc. T.J. Maxx (18), Marshalls (12), HomeGoods (11), Homesense (2), T.J. Maxx & HomeGoods combined (2) 45 1,323 $ 14,469 2.5 %
Best Buy Co., Inc. Best Buy (15), Pacific Sales (1) 16 633 11,204 1.9 %
Ross Stores, Inc. Ross Dress for Less (31), dd’s DISCOUNTS (1) 32 908 10,648 1.8 %
PetSmart, Inc. 32 657 10,525 1.8 %
Gap Inc. Old Navy (25), The Gap (3), Banana Republic (3), Athleta (3) 34 455 8,348 1.4 %
Bed Bath & Beyond Inc. Bed Bath & Beyond (14), buybuy BABY (9) 23 613 8,277 1.4 %
Dick’s Sporting Goods, Inc. Dick’s Sporting Goods (12), Golf Galaxy (1) 13 652 8,265 1.4 %
Michaels Stores, Inc. Michaels 28 631 8,250 1.4 %
Publix Super Markets, Inc. 14 669 6,884 1.2 %
Lowe’s Companies, Inc. 6 — 5,838 1.0 %
The Kroger Co. Kroger (6), Harris Teeter (2), QFC (1), Smith’s (1) 10 355 5,753 1.0 %
Total Wine & More 14 332 5,688 1.0 %
BJ’s Wholesale Club, Inc. 3 115 5,464 1.0 %
Petco Health And Wellness
Company, Inc.
22 299 5,461 0.9 %
Ulta Beauty, Inc. 25 259 5,388 0.9 %
Albertsons Companies, Inc. Safeway (3), Jewel-Osco (2), Tom Thumb (2) 7 395 5,040 0.9 %
Five Below, Inc. 29 258 4,945 0.9 %
Fitness International, LLC 6 242 4,884 0.9 %
Burlington Stores, Inc. 9 473 4,881 0.8 %
Kohl’s Corporation 7 361 4,865 0.8 %
Nordstrom, Inc. 8 259 4,494 0.8 %
Ahold U.S.A. Inc. Stop & Shop (3), Giant Foods (1) 4 239 4,493 0.8 %
DSW Designer Shoe
Warehouse
16 314 4,482 0.8 %
Walgreens Boots Alliance, Inc. 8 133 4,453 0.8 %
Office Depot, Inc. Office Depot (11), OfficeMax (3) 14 308 4,380 0.8 %
Total Top Tenants 425 10,883 $ 167,379 28.9 %
(1) Number of stores represents stores at consolidated and unconsolidated properties.
(2) Total leased GLA/NRA 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, 2022 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.
(4) 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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Lease Expirations
In 2023, leases representing 9.3% of total retail ABR are scheduled to expire. The following table summarizes scheduled lease expirations for retail tenants and tenants open for business at in-process development projects as of December 31, 2022, assuming none of the tenants exercise renewal options (dollars in thousands, except per square foot data) :
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
2023 492 1,146,406 1,008,007 $ 50,308 9.3 % $ 30.13 $ 15.73 $ 23.38
2024 613 1,449,645 2,526,203 78,042 14.4 % 31.81 13.47 20.41
2025 483 1,158,554 2,483,431 67,122 12.4 % 30.96 12.89 18.69
2026 454 1,030,060 2,388,356 65,349 12.1 % 30.86 14.38 19.42
2027 512 1,188,641 2,502,486 71,206 13.2 % 31.13 13.83 19.42
2028 349 823,943 2,504,354 61,876 11.4 % 32.95 13.88 18.60
2029 186 457,296 1,184,686 34,359 6.4 % 32.86 16.43 20.98
2030 137 417,559 584,298 20,861 3.9 % 29.46 15.00 20.97
2031 128 346,289 619,508 20,991 3.9 % 32.11 16.11 21.81
2032 162 403,952 1,079,063 27,866 5.2 % 31.03 14.73 19.20
Beyond 170 400,146 1,567,163 42,245 7.8 % 34.58 18.16 21.49
3,686 8,822,491 18,447,555 $ 540,225 100.0 % $ 31.43 $ 14.55 $ 20.05
(1) Lease expirations table reflects rents in place as of December 31, 2022 and does not include option periods; 2023 expirations include 44 month-to-month retail tenants. This column also excludes ground leases.
(2) Expiring GLA 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 as of December 31, 2022 for each applicable tenant multiplied by 12. Excludes tenant reimbursements and ground lease revenue.
Lease Activity – New and Renewal
During 2022, the Company executed new and renewal leases on 782 individual spaces totaling 4.9 million square feet (12.6% cash leasing spread on 532 comparable leases). New leases were signed on 252 individual spaces for 1.1 million square feet of GLA (37.8% cash leasing spread on 95 comparable leases), while renewal leases were signed on 530 individual spaces for 3.7 million square feet of GLA (8.6% cash leasing spread on 437 comparable leases). Comparable new and renewal leases are defined as those for which the space was occupied by a tenant within the last 12 months.