The%20Rouse%20Company

1
(No Transcript)
2
The Rouse Company

• Founded in 1939 went public in 1956 became
  REIT in 1998
• 9.4 billion enterprise value 4.2 billion
  equity market cap ticker RSE (NYSE)
• 150 properties in 23 states
• Three primary business lines
• Retail centers 47 premier retail properties
  located throughout the United States, totaling
• approximately 40 million square feet
• Community development Columbia and Fairwood
  located in Md., Summerlin, Nev., The
• Woodlands and a 9,000 acre new project both
  located in Houston, Tex.
• Office other properties 8 million square
  feet of office, research and development and
• industrial space
• Over 3,000 employees
• Headquartered in Columbia, Maryland

3
RSE Total Return on Investment(With dividends
reinvested)
RSE
Morgan Stanley REIT Index
SP 500
1/1/2000
4
Common Stock Dividend
Dividend, per share
(1)
C.A.G.R. 14 (26 years)
78
80
82
84
86
88
90
92
94
96
98
00
02
2004
(1) 2004 dividend represents the
annual rate of the dividend approved by
the Companys Board of Directors for
the first quarter of 2004.
5
Drivers of Growth

• Stable growing income stream from operating
  retail center portfolio
• Potential for future retail developments
  acquisitions
• Expanding successful community development
  operations
• Good dividend growth with relatively low payout
  ratio allowing for cash reinvestment
• Strong and improving capital structure with
  broad access to global capital markets

6
Retail
7
Retail CentersNet Operating Income
9 CAGR
47 properties 40 million square feet 425 sales
per square foot 93 occupied
8
The Mall in Columbia, Columbia, MD
9
Park Meadows, Denver
10
Focus on Quality
Total Regional Centers
Mall Ranking
A or A
B
C
Number Percent
Number Percent
Number Percent
1993 Portfolio 51 Centers
5
10
13
25
33
65
Current Portfolio 32 Centers
18
56
11
34
3
10
2007 Portfolio 34 Centers
21
62
13
38
-
-
Excludes urban centers, projects with less
than two anchors, and centers open less than one
year. Includes current and recently opened
development projects.
11
Key Performance Measures
Regional Centers1
2003 Sales per Square Foot 2
2003 Yearend Occupancy
2003 Net Operating Income
Center Ranking
A or A B C
477 352 269
96 97 87
69 27 4
1 Excludes urban centers, projects with less
than two anchors, and centers open less than one
year. 2 Comparable tenants, excluding spaces
10,000 sf or greater. For the rolling 12 months
ended November 30,2003.
12
Acquisitions
13
Chicago
14
Chicago
15
Durham
16
Newark, Delaware
17
Staten Island
18
Commercial Development Projects
19
(No Transcript)
20
(No Transcript)
21
(No Transcript)
22
(No Transcript)
23
San Antonio, Texas
24
Neiman Marcus
Nordstrom
340,000 sf of small store space
Foleys
Dillards
25
Summerlin, Nevada
26
Community Development
27
Community DevelopmentNet Operating Income
Millions

19 CAGR
Columbia, MD 18,000 acres Summerlin, NV
22,500 acres W. Houston, TX 8,060
acres Woodlands 27,000 acres
1998
1999
2000
2001
2002
2003 Est.
28
Columbia
29
Columbia
30
Columbia, Maryland
1st Full Year Ownership 1986
2002
Price per Saleable Acre Acres Sold Remaining
Saleable Acres Current Value
164,000 291 5,800 122 Million
593,000 80 1,000 242 Million
120 million increase in current value, even
after 725 million in land sales.
31
Summerlin
32
(No Transcript)
33
Value Creation in Summerlin
(1) Rouses share after participation
distributions
34
Houston Community Development
THE WOODLANDS
WEST HOUSTON COMMUNITY
35
The Woodlands
36
The Woodlands
37
Houston Market Overview

• Large, steadily growing population center
• Fourth largest U.S. city, seventh largest MSA
• Houston MSA has 4.7 million residents
• 25 increase 1990-2000
• Robust and diverse economy
• Annual job growth of 60,000 since 1995
• Key industries include energy, healthcare,
  technology and consumer services
• Strong new home growth
• Annual building permits issued
• 25,000 since 1992
• 30,000 since 1998
• 41,200 new building permits issued in 2002

Houston is a strong, growing market with a solid
economy and diverse employer base.
38
Houston Economy

• Houstons strong economic growth is expected to
  continue.
• 2000-2003 population growth is projected to be
  in excess of 11.
• Employment growth over this period is projected
  to be 11.5.
• Current unemployment is 6 and expected to fall
  to 5.3 by 2006.
• Per capita income remains high
• 20 higher than the state of Texas
• 14 higher than the United States
• Certain key employers are continuing to hire

Wal-Mart, Inc. McDonalds Corporation ExxonMobi
l Corp. University of Texas Anderson Cancer
Center Halliburton Company Hewlett-Packard The
Kroger Company Baylor College of Medicine
39
The Woodlands Today

• Attractive proximity to Houston
• 25 miles due north
• Located on I-45
• Thirty year track record
• 70,000 residents primarily in single-family
  homes
• 900 businesses employing 30,000
• Attractive amenities
• 21 public and private schools
• One of the highest ranking school districts
• in the Houston area
• 14 of the 16 schools in the district were rated
• in the top two categories
• The Woodlands High School is a national blue
  ribbon
• school (by the U.S. Dept. of Education)
• Provides homeowners with investment protection
  in market with no
• zoning

• Regional Mall
• Community college
• Two hospitals
• Regional YMCA

• Considered the leading MPC in Houston
• Consistently achieving the highest home prices
  and residential absorption pace in the area

40
The Woodlands Performance

• The Woodlands has consistently outsold the other
  15 leading master-planned
• communities in Houston.
• Average housing starts over the last 10 years
  have been over 1,200 per year.
• The next closest community has been just under
  600 per year.
• The Woodlands currently has a 7 market share.
• Average new-home price in 2003 is 293,000.
• Projected build-out of eight to ten years

41
West Houston Overview

• 25 miles northwest of downtown Houston, off US
  290
• Current major access projects will enhance site
  access
• Beautiful natural landscape
• 8,060 acres originally purchased
• 950 acres subsequently added
• Over 17,000 single family units
• Over 900 acres of commercial use
• First land sales in late 2005

42
Rouse Master-Planned Communities
Size (acres) Saleable acres Current residents 10
mile ring demographics Population Households Avera
ge household income Households Earning 75K 2002
employment Number of firms Total employees
white collar
(1) Includes Fairwood in Prince Georges County,
MD.
43
Capital Strategy
44
Roadmap to Greater Financial Flexibility

• Refinance maturing debt on unsecured basis
• Little or no dilution
• Increase unencumbered NOI
• Regular unsecured bond issuance
• Tighter financial covenants
• Reduce leverage
• Redirect free cash flow
• Strategic transactions such as PREIT
• Enhanced ability to issue Preferred Stock
• Ratings upgrade

45
Reduction in Leverage
2002
2001
2000
1999
1998
Year End
Includes joint venture debt.
46
Balloon Maturities (000s)
798,935
493,979
435,721
406,057
2004
2005
2006
2007
47
Absolute Spread Performance
360
The Rouse Company (Baa3/BBB-) vs. Bloomberg BBB
10 Year Industrial Index
320
280
240
.
11/21/03Rouse prices 350mm 10-year notes at
T125
Spread (bps)
200
160
120
Source Deutsche Bank
80
9/6/02
8/8/03
9/5/03
9/20/02
10/4/02
11/1/02
1/10/03
1/24/03
2/7/03
2/21/03
3/7/03
3/21/03
4/4/03
4/18/03
5/2/03
5/16/03
5/30/03
6/13/03
6/27/03
7/11/03
7/25/03
8/22/03
9/19/03
10/3/03
10/18/02
11/15/02
11/29/02
12/13/02
12/27/02
10/17/03
10/31/03
11/14/03
11/28/03
12/12/03
12/26/03
Security
Current (bps)
High (bps)
Low (bps)
Change (bps)
Rouse Company 7.2 notes due 9/12
100
350
100
-225
Bloomberg BBB- 10-year Industrial Index
132
232
132
-74
48
2003 Strategic Asset Initiatives
Philadelphia Retail
Woodlands
Christiana
RSE
Staten Island
West Houston
Mizner Park
Fairwood
Hughes Center