Item 2. Properties
ITEM 2. PROPERTIES
As of December 31, 2023, we owned interests in a portfolio of 180 operating retail properties totaling approximately 28.1 million square feet and one office property with 0.3 million square feet in 24 states. Of the 180 operating retail properties, 10 contain an office component. We also own interests in two development projects under construction as of December 31, 2023 and an additional two properties with future redevelopment opportunities. 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, 2023 (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 44 7,492 $ 153,000 26.4 %
Florida 30 3,510 66,619 11.5 %
Maryland 8 1,412 34,363 5.9 %
North Carolina 8 1,535 32,856 5.7 %
Virginia 7 1,130 31,252 5.4 %
Georgia 10 1,707 26,335 4.5 %
Tennessee 3 580 8,698 1.5 %
Oklahoma 3 505 8,300 1.4 %
South Carolina 2 262 3,551 0.6 %
Total South 115 18,133 364,974 62.9 %
West
Washington 10 1,661 30,606 5.3 %
Nevada 5 845 28,184 4.9 %
Arizona 5 726 15,829 2.7 %
California 2 530 12,417 2.1 %
Utah 2 388 8,062 1.4 %
Total West 24 4,150 95,098 16.4 %
Midwest
Indiana 15 1,636 30,753 5.3 %
Illinois 8 1,163 24,736 4.3 %
Michigan 1 308 6,542 1.1 %
Missouri 1 453 4,048 0.7 %
Ohio 1 236 2,152 0.4 %
Total Midwest 26 3,796 68,231 11.8 %
Northeast
New York 8 1,083 30,873 5.3 %
New Jersey 4 340 11,256 1.9 %
Massachusetts 1 264 4,167 0.7 %
Connecticut 1 206 3,645 0.6 %
Pennsylvania 1 136 1,982 0.4 %
Total Northeast 15 2,029 51,923 8.9 %
Total 180 28,108 $ 580,226 100.0 %
(1) Number of properties represents consolidated and unconsolidated retail properties.
(2) Owned GLA/NRA 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, 2023, we owned an interest in two development projects currently under construction. The following table sets forth information with respect to the Company’s active development projects as of December 31, 2023 (dollars in thousands) :
Project 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
Carillon MOB Washington, D.C./Baltimore 100% Q4 2024 126,000 — $ 59,700 $ 59,700 $ 30,100 $3.5M–$4.0M $1.0M–$1.5M
The Corner – IN (4)
Indianapolis, IN 50% Q4 2024 24,000 285 31,900 — — $1.7M–$1.9M $1.7M–$1.9M
Total 150,000 285 $ 91,600 $ 59,700 $ 30,100 $5.2M–$5.9M $2.7M–$3.4M
(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 for Carillon MOB represent costs to KRG post-merger and exclude any costs spent to date prior to the merger with RPAI.
(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 2.7% of the portfolio’s ABR for the year ended December 31, 2023. The following table summarizes the top 25 tenants at the Company’s retail properties based on minimum rents in place as of December 31, 2023 (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 (3), T.J. Maxx & HomeGoods combined (2), Sierra (1) 47 1,378 $ 15,422 2.7 %
Best Buy Co., Inc. Best Buy (15), Pacific Sales (1) 16 633 11,294 1.9 %
Ross Stores, Inc. Ross Dress for Less (31), dd’s DISCOUNTS (1) 32 908 10,833 1.9 %
PetSmart, Inc. 32 657 10,666 1.8 %
Michaels Stores, Inc. Michaels 28 631 8,279 1.4 %
Gap Inc. Old Navy (25), The Gap (3),
Athleta (3), Banana Republic (2) 33 448 8,216 1.4 %
Dick’s Sporting Goods, Inc. Dick’s Sporting Goods (12), Golf Galaxy (1) 13 625 7,893 1.4 %
Publix Super Markets, Inc. 14 672 6,935 1.2 %
Total Wine & More 15 355 6,151 1.1 %
Nordstrom, Inc. Nordstrom Rack 10 307 5,882 1.0 %
The Kroger Co. Kroger (6), Harris Teeter (2), QFC (1), Smith’s (1) 10 355 5,844 1.0 %
Lowe’s Companies, Inc. 6 — 5,838 1.0 %
BJ’s Wholesale Club, Inc. 3 115 5,514 1.0 %
Ulta Beauty, Inc. 25 259 5,465 0.9 %
Five Below, Inc. 30 271 5,301 0.9 %
Burlington Stores, Inc. 11 515 5,298 0.9 %
Albertsons Companies, Inc. Safeway (3), Jewel-Osco (2), Tom Thumb (2) 7 345 5,100 0.9 %
Petco Health And Wellness
Company, Inc.
19 266 4,990 0.9 %
Kohl’s Corporation 7 265 4,865 0.8 %
The Container Store Group, Inc. 7 152 4,592 0.8 %
DSW Designer Shoe
Warehouse
16 314 4,568 0.8 %
Office Depot, Inc. Office Depot (11), OfficeMax (3) 14 308 4,432 0.8 %
Trader Joe’s 10 120 4,187 0.7 %
Mattress Firm Group Inc. Mattress Firm (24), Sleepy’s (5) 29 144 4,174 0.7 %
Barnes & Noble, Inc. 8 192 4,113 0.7 %
Total Top Tenants 442 10,235 $ 165,852 28.6 %
(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, 2023 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 including 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.
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Lease Expirations
In 2024, leases representing 8.3% of total retail ABR are scheduled to expire. The following table summarizes the scheduled lease expirations for retail tenants as of December 31, 2023, assuming none of the tenants exercise renewal options (dollars in thousands, except per square foot data) :
Expiring Retail GLA (2)
Expiring ABR per Sq. Ft. (3)
Number of
Expiring Leases (1)
Shop Tenants Anchor Tenants Expiring ABR
(Pro rata) Expiring Ground Lease ABR
(Pro rata) % of
Total ABR
(Pro rata) Shop Tenants Anchor Tenants Total
2024 485 1,167,418 898,001 $ 47,440 $ 582 8.3 % $ 31.45 $ 12.96 $ 23.41
2025 498 1,157,045 2,439,120 66,465 4,748 12.3 % 31.15 12.81 18.71
2026 484 1,070,288 2,203,523 64,144 4,456 11.8 % 31.17 14.33 19.84
2027 527 1,197,417 2,361,375 71,216 5,979 13.3 % 32.04 14.08 20.12
2028 557 1,215,924 2,814,481 84,191 6,651 15.6 % 35.02 14.80 20.90
2029 388 872,995 2,488,383 65,910 2,967 11.9 % 34.39 15.11 20.12
2030 166 472,579 737,328 24,657 1,566 4.5 % 30.35 14.22 20.52
2031 152 413,549 614,162 23,544 2,331 4.5 % 33.14 16.19 23.01
2032 169 415,594 1,003,118 28,095 328 4.9 % 32.57 14.95 20.11
2033 191 501,328 709,077 28,287 3,778 5.5 % 34.15 15.81 23.41
Beyond 178 326,476 1,318,471 37,164 5,727 7.4 % 38.88 18.56 22.59
3,795 8,810,613 17,587,039 $ 541,113 $ 39,113 100.0 % $ 32.74 $ 14.67 $ 20.70
(1) Lease expirations table reflects rents in place as of December 31, 2023 and does not include option periods; 2024 expirations include 51 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, 2023 for each applicable tenant multiplied by 12. Excludes tenant reimbursements and ground lease revenue.
Lease Activity – New and Renewal
During 2023, the Company executed new and renewal leases on 740 individual spaces totaling 4.9 million square feet (14.3% cash leasing spread on 552 comparable leases). New leases were signed on 218 individual spaces for 1.1 million square feet of GLA (41.3% cash leasing spread on 107 comparable leases), while non-option renewal leases were signed on 310 individual spaces for 1.2 million square feet of GLA (13.0% cash leasing spread on 233 comparable leases) and option renewals were signed on 212 individual spaces for 2.6 million square feet of GLA (8.1% cash leasing spread). The blended cash spreads for comparable new and non-option renewal leases were 22.7%. Comparable new and renewal leases are defined as those for which the space was occupied by a tenant within the last 12 months.