Thank You!

INDUSTRY UPDATE

MICHAEL P. KERCHEVAL

President & Chief Executive Officer

International Council of Shopping Centers

New York, NY

Out with the Old…

In with the New

3 Things to Consider…

i. Infill Opportunities

ii. Multi-Use Development

iii. The Shopping Center’s Role

Creating the “Third Place”

Unemployment Rate

6

7

8

9

10

Jan. 2011 Aug. 2011 Jan. 2012 Aug. 2012 Jan. 2013 Aug. 2013

Source: BLS

Retail Sales Growth 2006-2013 (Excluding Autos)

6.2%

4.0%

2.3%

-5.8%

4.6%

7.3%

4.6% 4.3%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

2006 2007 2008 2009 2010 2011 2012 2013YTD

Source: US Census Bureau

Mall Productivity Growth

6.9%

6.1%

10.7%

6.0%

4.6%

0.8%

0%

2%

4%

6%

8%

10%

12%

Source: ICSC

Mall Productivity Growth

10.7%12%

Mall Productivity GrowthMall Productivity GrowthMall Productivity GrowthMall Productivity GrowthMall Productivity Growth% Change Year/Year Jan-July 2013

New Look … Old Malls

Apparel and Accessories % of Mall Specialty GLA

47.9%

57.3%

40%

45%

50%

55%

60%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: ICSC

Home Goods % of Mall Specialty GLA

9.1%

6.3%

5%

6%

7%

8%

9%

10%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: ICSC

More Than Just a Place to Shop

Growth of Shopping Center Inventory (% Change to Total Number of Centers)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013Source: CoStar

Shopping Center GLA Per Capita

0

5

10

15

20

25

U.S. Canada U.K. Singapore

Source: ICSC

Squ

are

Feet

Retail Space Impacts

Metros Areas With Most Closed Space

Filling the Shopping Center of the Future

Marketplace Fairness Matters

M-Commerce

Technology as Tools For Success

Geofencing

The “Class of 2010”

Female

0 1 2 3 4

0-45-9

10-1415-1920-2425-2930-3435-3940-4445-4950-5455-5960-6465-6970-7475-7980-8485-8990-9495-99100+

Male

01234

0-4

5-9

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75-79

80-84

85-89

90-94

95-99

100+

2010

2000

Demographic Opportunities Screens for Ideal:

1. Strong growth in numbers

2. Strong growth in spending potential

3. Strong spend at shopping centers

Hispanic Market Opportunities

Screens Hispanic Total Non-

Hispanic

Population Growth 2007-2011 11.4% 3.1% 2.7%

Share of Total Population: 2011 2020

16.3% 19.1%

100.0% 100.0%

83.7% 80.9%

Income Growth 2007-2011 3.9% 1.7% 1.2%

Spending at Shopping Malls: Annual Amount

As % Of Total Spending

$4,203

9.9%

$4,485

8.9%

$4,538

8.8%

Source: ICSC, Retail Property Insights, Vol. 20, No. 2, 2013

Hispanic

11.4%

20112020

16.3%19.1%

100.0%100.0%

3.9%

Annual AmountAs % Of Total Spending

$4,2039.9%

$4,485

Look to the Future…

Thank You!

MARK MYERS

ICSC Trustee

Executive Vice President

Head of Commercial Real Estate

Wells Fargo Bank

San Francisco, CA

Thank You!