Retail Centers

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Retail Centers
Comp Tenant Sales 439 psf
Occupancy 93
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Retail Centers NOI Growth
2004 growth from comparable properties 2.5 - 3
2004 growth from the total retail segment 8
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Retail Centers Net Operating Income
Millions
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Rouse Regional CentersKey Performance Measures
Regional Centers 1
2004 AverageOccupancy
2004 NetOperating Income
2004 Sales per Square Foot 2
Center Ranking A or A B C
489 357 286
94 94 91
73 24 3
1 Excludes urban centers, projects with less than
two anchors, and centers open less than two
years 2 Comparable tenants, excluding spaces
gt10,000 s.f.
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Retail Centers Base Rent Growth
New Rents in 2000 New Rents in 2004,
YTD
40.00 psf 50.86 psf
27 Growth 6 on compound basis
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Shops at La Cantera
San Antonio, Texas
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Shops at La Cantera
Neiman Marcus
Nordstrom
Future Expansion Site
Foleys
Dillards
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Retail Centers
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Community Development
Summerlin
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Community Development
Columbia
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Community Development
The Woodlands
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Bridgelands
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Community Development NOI
Millions
123.9
125
86.2
78.0
69.9
51.6
49.2
48.0
0
1997
1998
1999
2000
2001
2002
2003
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Community Development Pricing Growth
Columbia, Maryland
Average price per acre in 1998
Average price per acre in 2003
349,000 739,000
112 Growth 16 on compound basis
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Community Development Pricing Growth
Summerlin, Nevada
Average price per acre in 1998
Average price per acre in 2003
155,000 484,000
212 Growth 26 on compound basis
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Community Development Pricing Growth
Fairwood, Maryland
Average price per acre in 2002
Average price per acre in 2003
294,000 405,000
38 Growth
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The Woodlands
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Bridgelands
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Reconciliation of cash from operations available
for reinvestment, net proceeds from capital
transactions and net capital redeployments to
Statement of Cash Flows
Millions Net cash provided by operating
activities Expenditures for the acquisition of
Bridgelands included in land acquisition
expenditures Expenditures for improvements to
existing properties Dividends paid Cash
from operations available for reinvestment
Proceeds from capital transactions Proceeds
from the disposition of properties to PREIT,
Kravco and other properties Proceeds from the
disposition of interests in properties
Expenditures for acquisition of Christiana
netted with proceeds from dispositions
Proceeds from the exercise of stock options
Net proceeds from the issuance and repayment of
debt, excluding construction loan draws Net
other investing and other financing activities
Net proceeds from capital transactions Capital
redeployments Total expenditures for
acquisitions of interests in properties and other
assets Expenditures for acquisitions of
interests in properties and other assets
Expenditures for acquisition of Christiana
netted with proceeds from dispositions Purchase
of Parent Company-obligated mandatorily
redeemable preferred securities Repurchases of
common stock Expenditures for the acquisition
of Bridgelands included in land acquisition
expenditures Equity in development Expenditur
es for properties in development Expenditures
for investments in unconsolidated real estate
ventures in development Proceeds from
borrowings on construction loans Net capital
redeployments Net change in cash
Year ended 12/31/2003 376 22 (71)
(162) 165 396 110 95 (4) 597
(437) (57) (72) (22) (97) (685)
77
356 40 (397) (40)
(168) (27) 98
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Payout Ratio Affords Substantial Flexibility
For the year ended December 31, 2003
Millions
Net cash provided by operating activities
Acquisition of Bridgelands (included in land
acquisition expenditures) Improvements to
existing properties Dividends
paid Common 150 Preferred 12 Cash from
operations available for reinvestment
376 22 (71) (162) 165
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Cash from Operations Supplemented byCapital
Raising/Recycling
Millions
For the year ended December 31, 2003
Cash from operations available for
reinvestment Proceeds from the disposition
of properties to PREIT, Kravco and other
properties Proceeds from exercise of stock
options Net borrowings (note 1) Other,
net Net proceeds from capital transactions
Total capital transactions and cash from
operations
165 396 110 95 (4) 597 762
Note 1 Net proceeds from the issuance and
repayment of debt, excluding construction loan
draws.
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How Did We Spend It ?
Millions
For the year ended December 31, 2003
Net capital redeployed
Acquisitions of interests in properties and
other assets Acquisitions of Christiana/Staten
Island/ Mizner Park / Other
Acquisition of interest in Woodlands 9.25
QUIPS (preferred securities) retired
Repurchase of shares --- Hughes participation
Bridgelands acquisition Equity in development
(note 1)
437 57 72 22 97
253 184
685
Net capital redeployments
Note 1 Includes expenditures for properties in
development and investments in joint ventures in
development, net of construction loan draws.
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Millions
For the year ended December 31, 2003
Cash from operations available for
reinvestment Net proceeds from capital
transactions Net capital redeployments
165 597 762 685
77
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Other Provisions, Impairment Losses Net Gains
on Dispositions / 2002, 2003 and 1st Q 2004
January 2002 - March 2004
Gains onDispositions
Provisions
Millions
Pension curtailment settlement
losses Organizational changes / early
retirements Losses (gains) on early
extinguishment of debt Impairment
provisions Total
30 22 (8) 61 105
228 228

75 million included in earnings from
continuing operations, primarily dispositions of
interests in Christiana Mall and Franklin Park,
and 153 million included in discontinued
operations.
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Pension Curtailment /Settlement Losses

• 30 million through March 31, 2004
• 35 million estimate for the remainder of 2004
• Acceleration of expense recognition that would
  otherwise be recognized under GAAP over the
  remaining average years of service of pension
  beneficiaries.
• No more pension plan, no more service
  years.
• Everything gets recognized currently,
• regardless of when cash was invested.
• During 2004, quarterly expense recognition is
  tied to the pace at which people retire or leave
  -- but the impact to annual guidance remains at
  0.35/share.

What do the charges represent ?
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What does this mean for shareholders going
forward?

• Meaningful future cash savings without
  additional current investment.

Millions Contributed

• Eliminates reporting complexity - cash and
  earnings diverge in pension accounting.

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Organization Changes /Early Retirements
January 1, 2002 December 31, 2004
January 1, 2002 - March 31, 2004
Millions
SAVINGS
Provision for personnel changes (Includes 11 M
for retirements of two Vice Chairmen CFO)
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Assumes 1/1/02 internal cost structure grows at
CAGR of 4 and includes 2004 projected internal
costs/savings.
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Impairment Provisions
Millions
2002, 2003 and 1st Q 2004
Merchant Wired Impairments - Operating
properties Echelon Westdale Other Total
12 39 7 3 61

• Non-recourse financing protected shareholders
• Relieved of mortgage debt exceeding market value

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Losses (Gains) on Early Extinguishment of Debt
8 Million Net Benefit
Millions
Loss / (Gain)
2002, 2003 and 1st Q 2004

• Redeemed 137 million of 9.25 preferred
• Annualized savings of 12.9 million
• Approximately 700,000 in expense savings in 2005

• Refinanced 240 million Fashion Show construction
  loan -
• Saving 130 bp vs prior mortgage debt
• Mortgage debt replaced with unsecured debt

Echelon - Net gain on non-recourse debt
relief Property dispositions - PREIT, Inglewood,
other Other Net gains
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Columbia Land Sales vs. 30 Year Fixed
Rate Mortgage
Columbia Land Sales (Millions)
30 Year Fixed Rate Mortgage
Revenue figures include builder participation
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Building Permits vs. 30 Year
Fixed Rate Mortgage
Building Permits (000s)
Interest Rate
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Urbanization
Columbia Town Center
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Urbanization
Woodlands Town Center
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Urbanization
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Columbia Town Center
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Columbia Town Center
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Columbia Town Center

• Retention of parking fields
• Utilization of shared parking
• Strategic utilization of
• ground leases
• Ongoing ownership of
• operating properties

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Columbia Town Center
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Summerlin
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Summerlin
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The Woodlands
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Beachwood Place
Woodbridge Center
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Willowbrook Mall
Oakbrook Center
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Bridgewater Commons
Staten Island Mall
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Summerlin Town Centre
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The Woodlands Town Center
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