2003 Retail Real Estate Capital and Finance Conference

1
The Fundamentals Part I Tenant
Demand ModeratorGLENN J. RUFRANO, ICSC Trustee,
CEO, New Plan Excel Realty Trust, Inc., New York,
NY PanelistsELISE JAFFE, ICSC Trustee, Senior
Vice President, The Dress Barn Inc., Suffern, NY
DAVID J. SCHWARTZ, President, Olympic Realty and
Development Corporation, New York, NY LARRY K.
WHEELER, Vice President Asset Management, Edens
and Avant, Columbia, SC DAVID ZOBA, ICSC Trustee,
Executive VP/General Counsel, Galyans Trading
Company, Inc., Plainfield, IN

• 2003 Retail Real Estate Capital and Finance
  Conference

2
Where are we in the Development Cycle?
Regional Malls and Super Regional Malls
approximate 1,500 Source National Research Bureau
3
Where are we in the Development Cycle?

• The rate of growth for total shopping center
  square footage has declined by more than 50
  percent in the 1996 through 2000 five year period
  as compared with the 1986 through 1990 five year
  period.
• Space was being created at approximately 5
  percent per year from 1986 through 1990 and at
  approximately 2 percent per year from 1991
  through 2000.
• We are currently creating space at approximately
  2 percent per year of the existing inventory.

Source National Research Bureau
4
Where are we in the Development Cycle?

• The rate of growth in sales more than tripled in
  the 1996 through 2000 five year period as
  compared with the 1986 through 1990 five year
  period.
• Sales growth from 1986 through 1990 was
  approximately 2 percent per year and from 1996
  through 2000 was almost 7 percent per year.
• Sales growth slowed in 2001 and 2002 to 3 - 5
  percent.

Source National Research Bureau
5
Where are we in the Development Cycle?
Projected Sales per Square Foot In Constant
Dollars

• Flat projected sales per square foot should
  curtail retail development activity.

Assumptions Square footage increases
approximately 2 percent per year from 2002
through 2003. Total sales increase approximately
2 percent per year from 2002 through
2003. Source National Research Bureau
6
The Fundamentals Part II Supply ModeratorGLEN
N J. RUFRANO, ICSC Trustee, CEO, New Plan Excel
Realty Trust, Inc., New York, NY PanelistsJOAN
AHRENS, Regional Real Estate Manager, Target
Corporation, Minneapolis, MN JOEL T. MURPHY, ICSC
Trustee, President-Retail Division, Cousins
Properties, Inc., Atlanta, GA RICHARD PESIN,
Senior Vice President, Forest City Enterprises,
Brooklyn, NY GARY RAPPAPORT, SCSM, SCMD, CLS,
ICSC Trustee and Past Chairman, President, The
Rappaport Companies, McLean, VA

• 2003 Retail Real Estate Capital and Finance
  Conference

7
Where are we in the Development Cycle?

• From 1996 through 2000, community shopping
  centers have increased market share versus
  neighborhood shopping centers and malls.
• The trend continued in 2001 and 2002.

Source National Research Bureau
8
Where are we in the Development Cycle?

• From 1996 through 2000, community shopping
  centers gained in shopping center square feet per
  capita versus neighborhood shopping centers and
  malls.
• From 2000 through 2002, growth in shopping center
  square feet per capita leveled off.

Source National Research Bureau