CALIFORNIA OVERVIEW      October 2006
21898-101206               WHY CALIFORNIA?                                                                              Ab...
21898-101206               WHY CALIFORNIA?                                                                                ...
21898-101206               WHY CALIFORNIA?                                                                                ...
21898-101206               WHY CALIFORNIA?                                            Superior demographics and high barri...
21898-101206                WHY CALIFORNIA?                                                                               ...
21898-101206               REGENCY IN CALIFORNIA                                                                 Growth in...
21898-101206               REGENCY IN CALIFORNIA                                                                          ...
21898-101206               REGENCY IN CALIFORNIA                                                                          ...
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California Overview PPT

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California Overview PPT

  1. 1. CALIFORNIA OVERVIEW October 2006
  2. 2. 21898-101206 WHY CALIFORNIA? Abundant population and high growth Most Populous State 36 million people (12% of US) High Density 217.2 persons per sq. mile (vs. 79.6 persons per sq. mile for US) Tremendous Growth 550,000 to 600,000 people added per year Highest population growth rates have occurred mainly in the Central Valley and foothill counties, and in Riverside and San Bernardino Counties in Southern California The five Southern California counties account for 55% of California’s total population in 2004, and 59% of the total increase in population since 1999 Source: US Census Bureau, The State of California Legislation Office. 1
  3. 3. 21898-101206 WHY CALIFORNIA? Strong and diverse economy CALIFORNIAS WORLD RANKING 2005 GROSS PRODUCT (US$) Economic Powerhouse Rank Countries ($ billions) 1 UNITED STATES $12,455 World’s 8th largest economy - larger than 2 Japan 4,506 Spain, Canada, Brazil, and India 3 Germany 2,782 4 China (excluding Hong Kong) 2,229 Accounts for over 13% of the nation’s 5 United Kingdom 2,193 6 France 2,110 total economic output 7 Italy 1,723 8 CALIFORNIA 1,622 3 of the 4 busiest ports in the nation 9 Spain 1,124 10 Canada 1,115 Highly Diversified 11 Brazil 794 12 Korea, Rep. 788 13 India 785 14 Mexico 768 15 Russian Federation 764 16 Australia 701 17 Netherlands 595 18 Switzerland 366 19 Belgium 365 20 Turkey 363 21 Sweden 354 22 Saudi Arabia 310 23 Austria 305 24 Poland 299 25 Indonesia 287 Source: World Bank: World Development Indicators (July 2006), The State of California Legislation Office. 2
  4. 4. 21898-101206 WHY CALIFORNIA? Strong job growth Net new jobs in California = 23% of US total California has added about 2.4 million jobs over the past decade, an annual growth rate of 1.8% The fastest growing sector has been construction, which has grown at an average rate just under 6% per year Top Employers Kaiser Permanente 91,562 University of California 89,319 AT&T Corporation 48,484 Naval Base Coronado (incl. North Island NAS) 35,969 The Boeing Company 33,643 Wells Fargo & Company 26,106 Northrop Grumman Corporation 25,048 Walt Disney Company 21,000 Target Corporation 19,820 Safeway, Inc. 18,615 Source: Economy.com, The State of California Legislation Office, California Department of Finance. 3
  5. 5. 21898-101206 WHY CALIFORNIA? Superior demographics and high barriers to entry California’s household income profile is the highest in the nation: Median HH Avg HH State Population Income Income California 36,270,872 $59,925 $74,424 Texas 23,330,288 50,921 62,568 New York 19,289,744 54,783 70,089 Florida 18,115,876 48,783 61,643 Illinois 12,847,576 52,286 63,990 Pennsylvania 12,486,184 49,646 60,620 Ohio 11,489,665 46,241 55,847 Michigan 10,201,722 48,402 58,179 Georgia 9,226,173 52,760 64,491 North Carolina 8,765,782 48,031 58,937 Strong Development Barriers Political barriers Long and cumbersome zoning and entitlement process Geographic barriers Limited supply of developable land Source: Claritas. 4
  6. 6. 21898-101206 WHY CALIFORNIA? Strong retail fundamentals 8 out of the top 42 retail markets ranked by Marcus & Millichap are located in California: Rank Rank Rank Rank MSA 2006 2005 MSA 2006 2005 San Diego 1 1 Chicago 22 24 Orange County 2 2 Orlando 23 19 Oakland 3 10 Denver 24 26 New York City-Manhattan 4 8 Tampa 25 22 Phoenix 5 11 Dallas/Fort Worth 26 29 Washington, D.C. 6 3 Sacramento 27 23 San Francisco 7 7 Philadelphia 28 28 Seattle 8 15 Houston 29 32 Fort Lauderdale 9 4 Minneapolis-St. Paul 30 27 Riverside-San Bernardino 10 6 Jacksonville 31 31 Austin 11 17 San Antonio 32 33 West Palm Beach 12 5 New Haven 33 34 Atlanta 13 14 Salt Lake City 34 30 Los Angeles 14 9 Charlotte 35 38 Boston 15 13 Milwaukee 36 37 Northern New Jersey 16 18 Indianapolis 37 41 San Jose 17 21 Detroit 38 35 Tucson 18 20 Kansas City 39 New Las Vegas 19 12 Cleveland 40 36 Miami 20 16 Columbus 41 39 Portland 21 25 Cincinnati 42 40 Source: Marcus & Millichap 2006 Annual Retail Research Report. California markets are highlighted in yellow. 5
  7. 7. 21898-101206 REGENCY IN CALIFORNIA Growth in Regency’s California investment REG Pro-rata Inve stment Inve stment Investment California Market De cembe r 19993 June 20063 June 2006 Los Angeles 1 $159,070,164 $402,613,806 $252,281,634 Orange County $150,369,217 $219,579,927 $118,282,812 Riverside-San Bernardino $0 $53,165,429 $37,461,127 Sacramento/Stockton $34,423,729 $109,989,311 $40,267,082 San Diego $111,423,526 $284,201,073 $182,502,051 San Francisco Bay Area2 $169,256,893 $479,413,175 $266,935,996 Totals $624,543,529 $1,548,962,721 $897,730,703 Source: Regency. 1 Includes Ventura for 1999 Investment, but includes Ventura and Santa Barbara for 2006 Investment. 2 Includes Oakland for 1999 Investment, but includes Oakland and San Jose for 2006 Investment. 3 Includes joint ventures at 100%. 6
  8. 8. 21898-101206 REGENCY IN CALIFORNIA California in context Regency’s California properties have outperformed the greater Regency portfolio SS NOI 1 2 # of Prope rtie s % Leased GLA Rent Grow th Grow th 2 Regency (total) 356 95.5% 42,023,363 12.7% 3.2% California 58 98.7% 7,375,702 14.1% 3.7% Source: Regency. Note: Includes joint ventures at 100%. 1 Operating properties only. 2 12 months ended 6/30/2006. 7
  9. 9. 21898-101206 REGENCY IN CALIFORNIA Superior markets 3-Mile Estimated % of Regencys % of Ca lifornia Household Income - June Regencys Ca lifornia Ma rkets Tota l NOI NOI 30, 3006 (Re gency) San Francisco Bay Area 5.5% 22.9% $99,270 San Diego 4.7% 19.5% $71,830 Los Angeles 4.5% 18.7% $93,604 Orange County 3.4% 14.0% $83,689 San Jose 1.6% 6.5% $107,152 Ventura 1.4% 5.7% $106,994 Riverside-San Bernardino 1.0% 4.0% $82,254 Sacramento 1.0% 4.0% $80,720 Santa Barbara 0.7% 2.7% $83,714 Stockton 0.5% 1.9% $81,691 Tota ls 24.1% 100.0% Source: Regency. Note: Includes joint ventures at 100%. 8

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