Net Lease Trends. Tenant Expansion Report Spring 2017 CONTACT: TRAVIS DUNN Managing Director CA RE Licence #

Transcription

1 Net Lease Trends Tenant Expansion Report Spring 2017 CONTACT: TRAVIS DUNN Managing Director CA RE Licence # MacArthur Court, Suite 1600, Newport Beach, CA Corporate CA RE # The information contained herein has been obtained from sources deemed reliable but has not been verified and not guarantee, warranty or representation, either express or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.

2 Table of Contents Credit Summary 3 Automotive 9 Banking 10 Consumer Electronics 11 Convenience Stores 12 Discount & Variety Stores 13 Fitness Stores Health & Personal Care Stores 19 Home Improvement Stores 20 Industrial 21 Medical 22 OffPrice Apparel Stores Sporting Goods Stores 35 Sources: Stan Johnson Company Research. S&P. Moody's, various retailer websites. public news articles; information deemed accurate but not guaranteed

3 Tenant Expansion Report Credit Summary Tenant Name Parent Company Name S&P Moody's Stock Symbol Category 24 Hour Fitness 7Eleven Aaron's Academy Sports + Outdoors Ace Hardware Advance Auto Parts Aldi Apple Applebee's Arby's Ashley Furniture Aspen Dental AT&T AutoZone Baskin Robbins Bass Pro Shops Bed Bath & Beyond Inc Best Buy Big 5 Sporting Goods Big Lots BJ's Restaurant & Brewhouse BJ's Wholesale Club Bob Evans Bridgestone I Firestone Buffalo Wild Wings Burger King Burlington Cabela's Camping World Carl's Jr CarMax Casey's General Stores B AA BBB AA+ BBB+ BBB B+ BBB+ BBB BBB B A B+ BB B B2 Al B2 Baa2 Aal Baal Baal Ba3 Baal Baal B3 A2 TSE:3382 AAN AAP AAPL DIN T AZO DNKN BBBY BBY BGFV BIG BJRI BOBE TSE:5108 BWLD QSR BURL CAB KMX CASY 24 Hour Fitness Worldwide Inc I AEA Investors Seven & I HoldingsCo Ltd Aarons Inc Academy Sports + Outdoors Ace Hardware Corporation Advance Auto Parts Inc ALDI GmbH & Co KG Essen Apple Inc DineEquity Inc Arby's Restaurant Group Inc I Roark Capital Group Ashley Furniture HomeStore Aspen Dental Management Inc AT&T Inc AutoZone Inc Dunkin' Brands Group Inc Bass Pro Group LLC Bed Bath & Beyond Inc Best Buy Co Inc Big 5 Sporting Goods Corp Big Lots Inc BJ's Restaurants Inc BJ's Wholesale Club Inc Bob Evans Farms Inc Bridgestone Corp Buffalo Wild Wings Inc Restaurant Brands International Inc Burlington Stores Inc Cabela's Inc Good Sam Enterprises CKE Restaurants Holdings Inc I Roark Capital Group Carmax Inc Casey's General Stores Fitness Stores Convenience Stores Discount & Variety Stores Sporting Goods Stores Home Improvement Stores Automotive Consumer Electronics Medical Consumer Electronics Automotive Sporting Goods Stores Consumer Electronics Sporting Goods Stores Discount & Variety Stores Discount & Variety Stores Automotive OffPrice Apparel Stores Sporting Goods Stores Sporting Goods Stores Convenience Stores

4 Tenant Expansion Report Credit Summary Tenant Name Parent Company Name S&P Moody's Stock Symbol Category Cash America Cash America International Inc CSH Discount & Variety Stores Charming Charlie Charming Charlie CCC+ Caal OffPrice Apparel Stores Chase Bank JPMorgan Chase & Co A A3 JMP Banking Checkers DriveIn I Rally's Checkers DriveIn Restaurants Inc I Sentinel Capital Partners ChickfilA ChickfilA Inc Chili's Brinker International Inc 88+ Bal EAT Chipotle Mexican Grill Chipotle Mexican Grill Inc CMG Chuck E Cheese CEC Entertainment Concepts LP 8 83 Chuy's Chuy's CHUY Container Store The Container Store Inc I Leonard Green & Partners 8 82 TCS Costco Costco Wholesale Corp A+ Al COST Discount & Variety Stores Cracker Barrel Old Country Store Cracker Barrel Old Country Store Inc CBRL Culver's Culver's CVS CVS Health Corp BBB+ Baal CVS Health & Personal Care Stores DaVita Dial sis DaVita Inc BB Ba3 DVA Medical Del Taco Del Taco Restaurants Inc TACO Denny's Denny's Corp DENN Dick's Sporting Goods Dick's Sporting Goods Inc DKS Sporting Goods Stores Dickey's BBQ Pit Dickey's BBQ Pit Discount Tire Company Discount Tire Company Automotive Dollar General Dollar General Corp BBB Baa2 DG Discount & Variety Stores Dollar Tree Dollar Tree Inc 88+ Ba2 DLTR Discount & Variety Stores DSW DSW Inc DSW OffPrice Apparel Stores Dunkin' Donuts Dunkin' Brands Group Inc DNKN Family Dollar Dollar Tree Inc 88+ Ba2 DLTR Discount & Variety Stores FedEx Corporation FedEx Corp BBB Baa2 FDX Industrial FedEx Ground FedEx Corp BBB Baa2 FDX Industrial Field & Stream Dick's Sporting Goods Inc DKS Sporting Goods Stores Five Below Five Below Inc FIVE OffPrice Apparel Stores Fred's Pharmacy I Fred's Super Dollar Fred's Inc FRED Health & Personal Care Stores Fresenius Medical Care Fresenius Medical Care AG & Co 888 Bal FMS Medical Giant Eagle Giant Eagle

5 Tenant Expansion Report Credit Summary Tenant Name Parent Company Name S&P Moody's Stock Symbol Category Gold's Gym TRT Holdings Golden Corral Golden Corral Corp GoldMax GoldMax USA Golf Galaxy Dick's Sporting Goods Inc DKS Goodwill Industries Goodwill Industries International Guitar Center Ares Management LP BBB+ ARES h.h. gregg HHGREGG Inc HGG Harbor Freight Tools Harbor Freight Tools BB Ba3 Hardee's CKE Restaurants Holdings Inc I Roark Capital Group B Harris Teeter The Kroger Co BBB Baal KR Hobby Lobby Hobby Lobby Stores Inc Home Depot The Home Depot Inc A A2 HD Home Goods The TJX Companies A+ A2 TJX Hooters Hooters of America LLC IHOP DineEquity Inc DIN lnnout Burger lnnout Burger Inc Jack In The Box Jack In The Box Inc JACK Jared The Galleria of Jewelry Signet Jewelers BBB SIG Jiffy Lube Jiffy Lube International Inc JoAnn Stores JoAnn Stores Inc I Leonard Green & Partners B Caal JAS Ke Bank Ke Corp BBB+ Baal KEY KFC Yum! Brands, Inc. BB Ba3 YUM Kirkland's Kirkland's Inc KIRK Kohl's Kohl's Corp BBB Baa2 KSS Kroger The Kroger Co BBB Baal KR Krystal Krystal LA Fitness LA Fitness Ltd LaZBoy LaZBoy Inc LZB Lidl Schwarz Gruppe Life Time Fitness Life Time Fitness B B2 Longhorn Steakhouse Lowe's Darden Restaurants Inc Lowe's Companies Inc BBB DRI LOW Baa3 A A3 Fitness Stores Sporting Goods Stores Discount & Variety Stores Consumer Electronics Consumer Electronics Home Improvement Stores Home Improvement Stores OffPrice Apparel Stores Automotive Banking Home Improvement Stores OffPrice Apparel Stores Fitness Stores Fitness Stores Home Improvement Stores

6 Tenant Expansion Report Credit Summary Tenant Name Parent Company Name S&P Moody's Stock Symbol Category Marciel Marciel Christian & Education Marsh Supermarket Sun Capital Partners Marshall's The TJX Companies A+ A2 TJX Mattress Firm Steinhoff International Holdings N.V. B+ SNH.F McAlister's Deli Focus Brands I Roark Capital Group B B2 McDonald's McDonald's Corp BBB+ Baal MCD Med Express Urgent Care MSO LLC Mei er Mei er Inc Menards Menards Michaels Michaels Companies Inc B+ Ba2 MIK Midas TBC Corporation Newk's Eatery Newk's Franchise Company LLC Nordstrom Rack Nordstrom Inc BBB+ Baal JWN Northern Tool Northern Tool + Equipment O'Reilly Auto Parts O'Reilly Automotive Inc BBB+ Baal ORLU Office Depot Office Depot Inc B Bl ODP Olive Garden Darden Restaurants Inc BBB Baa3 DRI Orscheln Farm & Home Orscheln Farm & Home Panda Express Panda Restaurant Group Inc Panera Bread Panera Bread Co PA Pep Boys Icahn Enterprises BB+ Ba3 IEP Petco Petco Animal Supplies B B2 Petsense Tractor Supply Company TSCO PetSmart PetSmart Inc B+ Bl PETM Pet Supplies Plus Irving Place Capital Pier 1 Imports Pier 1 Imports Inc B PIR Piggly Wiggly C&S Wholesale Grocers BB Planet Fitness Planet Fitness Holdings LLC Bl PLNT PNC Bank The PNC Financial Services Group A A3 PNC Popeye's Popeyes Louisiana Kitchen Inc PLKI Price Chopper The Golub Corporation Publix Publix Supermarkets Inc OffPrice Apparel Stores Medical Grocer Stores Home Improvement Stores Automotive OffPrice Apparel Stores Home Improvement Stores Automotive Home Improvement Stores Automotive Fitness Stores Banking

7 Tenant Expansion Report Credit Summary Tenant Name Parent Company Name S&P Moody's Stock Symbol Category Qdoba Jack in the Box Inc Jack Quaker Steak & Lube TravelCenters of America TA QuikTrip QuikTrip Corp Convenience Stores RaceTrac I Raceway Petroleum RaceTrac Petroleum Inc Convenience Stores Red Lobster Golden Gate Capital Red Robin Red Robin Gourmet Burgers Inc RRGB REI Recreational Equipment Inc Sporting Goods Stores Rite Aid Walgreens Boots Alliance BBB Baa2 WBA Health & Personal Care Stores Ross Dress For Less I dd's Discounts Ross Stores Inc A A3 ROST OffPrice Apparel Stores Roundy's Supermarkets The Kroger Co BBB Baal KR Ruby Tuesday Ruby Tuesday Inc B B3 RT Sam's Club Walmart Stores Inc AA Aa2 WMT Discount & Variety Stores SaveALot SUPERVALU Inc B+ Bl svu Schlotzsky's Focus Brands I Roark Capital Group B B2 Schnucks Schnucks Markets Inc Shake Shack Shake Shack Inc SHAK Sheetz Sheetz Inc Convenience Stores SherwinWilliams The SherwinWilliams Co A A3 SHW Home Improvement Stores Shoe Carnival Shoe Carnival Inc SCVL OffPrice Apparel Stores Shopko Shopko Stores Operating Co LLC I Sun Capital Partners Inc Discount & Variety Stores Sonic DriveIn Sonic Corp SONC Sports Authority The Sports Authority Inc I Leonard & Green Partners LP Sporting Goods Stores Sprouts Farmers Market Sprouts Farmers Market Inc SFM Staples Staples Inc BBB Baa2 SPLS Starbucks Starbucks Corp A A2 SBUX Stater Bros Markets Stater Bros Holdings Inc Steak 'N Shake Biglari Holdings Inc BH Subway Doctor's Associates Inc Sunbelt Rentals Sunbelt Rentals Inc T.J. Maxx The TJX Companies A+ A2 TJX OffPrice Apparel Stores Taco Bell Yum! Brands, Inc. BB Ba3 YUM Target Target Corp A A2 TGT Discount & Variety Stores

8 Tenant Expansion Report Credit Summary Tenant Name Parent Company Name S&P Moody's Stock Symbol Category TCF Bank TCF Financial Corp BBB TCB Banking TD Bank TD Bank NA AA Aal TD Banking Texas Roadhouse Texas Roadhouse Inc TXRH TGI Friday's TGI Friday's Inc B B2 The Fresh Market The Fresh Market Inc B B2 TFM The Vitamin Shoppe Vitamin Shoppe Inc VSI Health & Personal Care Stores Tim Hortons Restaurant Brands International Inc B+ QSR Tire Kingdom TBC Corporation Automotive Tractor Supply Company Tractor Supply Company TSCO Home Improvement Stores Trader Joe's Trader Joe's Company Tuffy Auto Service Center Tuffy Associates Corporation Automotive Twin Peaks Front Burner Restaurant LP ULTA Ulta Salon, Cosmetics & Fragrance Inc ULTA Health & Personal Care Stores Verizon Wireless Verizon Communications Inc BBB+ Baal vz Consumer Electronics Walgreens Walgreens Boots Alliance BBB Baa2 WBA Health & Personal Care Stores Walmart I Walmart Supercenter Walmart Stores Inc AA Aa2 WMT Discount & Variety Stores Walmart Neighborhood Market Walmart Stores Inc AA Aa2 WMT WaWa WaWa Inc Convenience Stores Wegman's Wegman's Wells Far o Wells Far o & Co A A2 WFC Ban kin Wendy's The Wendy's Company B B2 WEN Whataburger Whataburger White Castle White Castle System Inc Whole Foods Whole Foods Market Inc BBB Baa3 WFMI WinCo WinCo Foods Inc WinnDixie BiLo LLC I Southeastern Grocers LLC I Lone Star Funds B B3

9 Tenant Name Average SF Advance Auto Parts 7,970 $237 AutoZone 6,600 $270 Bridgestone I Firestone 7,500 8,100 Discount Tire Company 7,500 Tenant Expansion Report Automotive, Canada, Puerto Rico & the U.S. Virgin Islands 31 states 5,293 (includes Expansion 2016 Expansion Advance Auto Parts, Autopart International, Carquest & Worldpac) % new store 5,872 square footage annually 2, Notes Plans to open 85 new stores and a distribution center in 2017, as well as to convert up to 200 Carquest stores Plans to open up 150 domestic stores in FY 2017 Continuing 5 year plan to expand NC tire factory; will not produce more jobs, but will stay ahead of technology this way Janesville, WI location to be open by October; opened 13 stores in 11 states in 2016 Jiffy Lube 1,900 2,400 2, Two new locations opened in Minneapolis, MN area in early 2017 Midas 4,500 6,000 O'Reilly Auto Parts 7,250 $244 Pep Boys 6,000 20,000 Tire Kingdom 3,500 6,000 Tuffy Auto Service Center 3,900 5, states 35 states & Puerto Rico 41+ states, Wash DC, Alberta & British Columbia 16 states 2,236 (1,400+ U.S. & Canada) 4, ,200+ (includes NTB, Merchant's Tire & Big 0 Tire) Franchisee committed to spending over $6m throughout 2017 to upgrade 42 stores Plans to aggressively open new stores, allowing for penetration in existing markets and expansion into new, contiguous markets Purchased Just Brakes, which strengthens presence in target markets (i.e. Atlanta & Dallas) Planning to open "lots" of stores in 2017 Franchisor is seeking new units in the following states: FL, IA, IL, IN, MD, Ml, NE, NC, ND, NJ, OH, PA, SD, VA, WI, Midwest, South, Southeast & Southwest

10 Tenant Name Average SF Chase Bank 4,000 4,500 Tenant Expansion Report Banking 5, Expansion 2016 Expansion 100 over next 100 over next two years two years Notes Despite closing 300 branches recently, Chase plans to add 100 branches in next 2 years KeyBank 3,000 5, states & 30 countries Continuing to grow PNC Bank 3,500 4, states (East Coast & Midwest) & Wash DC 2,600+ Implementing regionalpresidential models in Minneapolis, Dallas, & Kansas City, but no plans to open banks there TCF Bank 8 states (Midwest & Western regions) 339 Plans to close 17 supermarket branches in early 2017 TD Bank 3,500 4,800 Northeast. Mid Atlantic. Wash DC. FL & the Carolinas 1,300+ Doubling A TM presence in FL in select Walgreens Wells Fargo 1,000 4,000 (36 countries) 8,700 (global)

11 Tenant Expansion Report Consumer Electronics 2015 Expansion Tenant Name Average SF Apple 8,400 $4,551 AT&T 3,200 Best Buy 29,130 $ (269 US) 2,200+ 1,575 (1,363 U.S.) Expansion of "storewithinastore" concept Expansion Notes 1+ Expanding Seattle offices & bought Turi, an artifical intelligence startup; still aggressively expanding in China Converted 700 stores to bilingual and adding 100 new bilingual locations in Latinodense markets Closed 11 bigbox stores & 31 Best Buy Mobile stores in 2016 Guitar Center 5,000 30, states Recently opened stores in CA, VA, & TN h.h. gregg 31,410 $ Closing 88 stores & 3 distribution centers Verizon Wireless 2,600 4,500 1,700+

12 Tenant Name Tenant Expansion Report Convenience Stores Average SF 7Eleven 2,400 3,000 Casey's General Stores 3,200 4,200 QuikTrip 4,600 $ states (Midwest) 11 states (South, Midwest, Southwest) Expansion 2016 Expansion Notes 60, Plans to increase North American store count to 10,000 by FY 2019; franchisee plans to open 412 locations worldwide In FY2017, plans to open , stores, replace 35 stores, complete 100 major remodels Planning gasless locations with just a convenience store; new locations in SC & MO RaceTrac I Raceway Petroleum 6,000 (RaceTrac) I 3,000 (Raceway) 12 states (Southeast) Planning to open 50 locations in FL over the next two years Sheetz 2,000 6,500 WaWa 4,000 5,600 $200 _ 500 MD, NC, OH, PA, VA &WV DE, Central FL, MD, NJ,PA&VA 40 new & rebuilt stores in 2017; stores coming soon in NC, PA, VA, WV Expanding in FL & MidAtlantic markets; plans to open 300 locations in the next 15 years

13 Tenant Expansion Report Discount & Variety Stores Tenant Name Average SF 2015 Expansion 2016 Expansion Notes Aaron's 6,000 12, states, Wash DC & Canada 1, Closing approximately 70 stores in Big Lots 30,995 $ states 1, Shifting focus to neverout vs. closeout inventory; ecommerce increases; on pace with growth plan since 2014 BJ's Wholesale Club 85, ,000 $ states Plans to open 35 stores a year over the next few years Cash America 5,000 10,000 Costco 144,000 $1,117 Dollar General 7,410 $223 Dollar Tree 7,820 $187 Family Dollar 7,820 $ states 44 states, Asia, Australia, Canada, Mexico, Spain & UK 43 states 48 states & Canada 46 states 2,085 including First Cash, Cash America, & Maxi Prenda (1,130 in US) 728 worldwide (528 n U.S.) 13,320 6,360 7,974 1, First Cash merged with CashAmerica; acquired Maxi Prenda stores in Mexico. Guatemala. & El Salvador Plans to open 150 locations over next 5 years Plans to open 1,000 stores in 2017; ,000 converted 42 former Walmart Express stores to Dollar Generals in 2016 Opening some stores. but focusing on Dollar Tree/Family Dollar merger Opening some stores. but 57+ focusing on Dollar Tree/Family Dollar merger Goodwill Industries 11,000 3, Opening store in Mount Pleasant. WI Sam's Club 133,515 $ Walmart's emphasis on ecommerce has slowed the growth of brick and mortar discount warehouses

14 Tenant Expansion Report Discount & Variety Stores, cont. Tenant Name Average SF 80,000 (Shopko) I Shopko 15,000 35,000 (Shopko Hometown) Target Walmart I Walmart Supercenter 133, ,775 $308 $ states (Midwest, Mountain, North Central & Pacific regions) 49 states & Canada Expansion 2016 Expansion Notes Adding groceries to 1/3 of Shopko stores Shut down smaller store plans, as 1, well as Project Goldfish (an upandcoming online marketplace) Focusing on expanding e 11, commerce presence & capabilites; expanding distribution centers

15 Tenant Name Average SF 24 Hour Fitness 28,000 42,000 Tenant Expansion Report Fitness Stores 2015 Expansion 2016 Expansion states Notes All locations throughout the St Louis & Oklahoma City metro areas will be acquired by Gold's Gym; recently opened in FL & NJ locations Gold's Gym 10,000 40, states & 23 countries Plans to aggressively expand in Germany, Africa, & South Korea LA Fitness 35,000 45,000 & Canada Life Time Fitness 125, states Opening location in Philadelphia Planet Fitness 20, states, Wash DC. Puerto Rico, Canada & the Dominican Republic 1, Continued focus on Canada expansion, but looking to grow nationwide

16 Tenant Name Average SF Aldi 16,000 19,000 Tenant Expansion Report 32 states & global Expansion 2016 Expansion Notes 1, Massive U.S. expansion calls for 650 new stores by the end of 2018; goal of over 2,000 stores; remodeling 1,300 stores Giant Eagle 60,000 97,000 $600 MD, OH, PA & WV Closing three locations in OH Harris Teeter 30,000 60,000 $455 DE. FL. GA. MD. NC, SC, VA & Wash DC Opened new stores in NC & VA Kroger 62,275 $ states 2,800 5 Merging with Murray's Cheese Lidl 33,000 Marsh Supermarket 45,000 65,000 Meijer 200, ,000 Currently located across Europe IN&OH IL. IN. KY. Ml. OH & WI First U.S. retail stores to open in 2018; distribution center currently 10,000 (global) 20 under construction in VA. with 20 stores in NC. SC & VA by early 2018 Plans to open 13 stores by the end of 2018; several Marsh stores closing in 2017 Moving into the MN market; planning a "slow and steady" growth; opening 7 new stores & remodeling 22 locations Piggly Wiggly 25,000 45, states Price Chopper 30,000 60,000 CT, MA, NH, NY, PA & VT Plans to convert all locations into Market 32branded concept over the next 810 years; 10 have been converted so far and three were built from the ground up

17 Tenant Expansion Report, cont Expansion 2016 Expansion Tenant Name Average SF Wegman s 75, ,000 Whole Foods 39,035 $1.000 WinCo 85,000 95,000 MA, MD, NJ, NY, PA & VA 42 states 8 states Notes Opening two stores in NJ, one in NY, & ten more stores with undisclosed locations; expanding to NC Potential for 1,200 Whole Foods Market stores across the U.S. in the coming years, with the new "365" concept contributing additional stores; opening up to 22 locations in the first half of FY 2017; closing nine locations in 2017 Opening a location in Nampa, ID in early 2017 & Arlington. TX in mid 2017 WinnDixie 46,800 $301 Southeast 550 At least 6 more WinnDixies will be converted to Harvey's

18 Tenant Expansion Report Health & Personal Care Stores Tenant Name Average SF 2015 Expansion 2016 Expansion Notes CVS 8,225 $ states & Brazil 8,035 retail stores; 10, Plans to close 70 stores in 2017 total Fred's Pharmacy I Fred's Super Dollar 14,000 16,000 $ states Will acquire 865 Rite Aids over the next 24 months Rite Aid 12,700 $144 The Vitamin Shoppe 3,510 $455 ULTA 10,555 $ states 44 states, Canada, Costa Rica & Panama 48 states 50 relocations & new store 4, openings; 350 remodels; merging with Walgreens % Opening 3 stores in Costa Rica & 2 in Panama; expected to open 8 stores in Costa Rica over the next five years Planning for large expansion in 2016 and increasing average store size by 10%; plans to open 100+ stores in 2017 Walgreens 14,500 $303 8, Recently filed an amendment to extend merging with Rite Aid

19 Tenant Expansion Report Home Improvement Stores Tenant Name Average SF 2015 Expansion 2016 Expansion Notes Ace Hardware 8,000 12,000 4,800 (global) East Coast Redistribution Center is expanding Harbor Freight Tools 13,000 15, states Opened new location in TX Home Depot 104,355 $420, Canada, China & Mexico 2,278 Very few store openings; focusing 0 4+ on online market and new website launch in mid2017 Kirkland's 7,665 $ states 396 Plans to reach 500 locations; plans to open 2530 stores in FY 2017 & close approximately 20 stores Lowe's 10,780 $267 2,129 Anticipates growth in Canada & Mexico; plans to add 1520 stores per year for the next 3 years Menards 50,000 Northern Tool 15, states (mainly Midwest) 17 states Increasing average store size to 220ksf; second Menards coming to KY in Expanding presence into South & Midwest; adding a 175,000sf expansion to TX distribution center Orscheln Farm & Home 25,000 50,000 9 states New locations in IA & KS SherwinWilliams 4,000 5,000 Tractor Supply Company 16,085 $258, Canada & the Caribbean (global) 49 states 1,575 Goal of opening 5,000 stores; Valspar acquistion to be completed in early 2017 Focused on growth with a goal to have 2,500 stores; will open a Northeast distribution center in FY 2017; acquired Petsense in late 2016

20 Tenant Name Average SF Tenant Expansion Report Industrial 2015 Expansion 2016 Expansion Notes FedEx Corporation TNT Express acquisition not forecasted; FedEx Express Fleet nurturement FedEx Ground Ongoing domestic expansion

21 Tenant Name Average SF Tenant Expansion Report Medical 2015 Expansion 2016 Expansion Notes Aspen Dental 3, states Opening 4 new offices in MS in 2017 DaVita Dialysis 7,500 2, Committed to international expansion & acquisition Fresenius Medical Care 5,000 10,000 3,624 worldwide 206 (2,306 US) Acquired a major stake in Cura Group, day hospitals in Australia Med Express 17 states Forecasted 35 locations in 8 markets by the end of 2017; opening at least 3 locations in the Richmond area

22 Tenant Expansion Report OffPrice Apparel Stores Tenant Name Average SF 2015 Expansion 2016 Expansion Notes Burlington 77,000 $ states & Puerto Rico Longterm goal of reaching 1,000 stores Charming Charlie 8,000 14,000 U.S., Canada, the Middle East, & the Philippines Expanding Middle Eastern presence; opening in KS DSW 20,950 $262 North America Recently opened stores in MA, MN & NJ Five Below 7,500 $ states Over 31 stores scheduled to open in 2017 Home Goods 25,000 $ states & Puerto Rico 579 Longterm potential growth to 1,000 stores; parent company plans to open a different, distinctive home store that will not be a direct competitor Kohl's 88,000 $ states 1, Will open an online distribution center in IN Marshall's Nordstrom Rack Ross Dress For Less I dd's Discounts 30,000 37,650 22,060 $304 $507 $ states & Canada 39 states & Canada 34 states, Wash DC & Guam (Ross) I 15 states (dd's Discounts) 1, , (including T.J. Maxx) Plans to open and expand more stores in FY 2018, although the exact numbers have yet to be released Will open 15 new stores in 2017 & relocate one; 19 additional locations planned to open Longterm projected store potential of 2,000 locations in the 70 (Ross) I (Ross) I 20 U.S. and 500 dd's Discounts; 23 (dd's Discounts) (dd's Discounts) Ross and 5 dd's Discounts opened across 15 states in February/March 2017

23 Tenant Expansion Report OffPrice Apparel Stores, cont. Tenant Name Average SF 2015 Expansion 2016 Expansion Notes Shoe Carnival 11,025 $224 T.J. Maxx 29,000 $ states & Puerto Rico 411 1,186 Opened 19 stores & closed nine in FY 2016; opened 20 stores & closed 15 in FY (including Marshall's) Plans to open and expand more stores in FY 2018, although the exact numbers have yet to be released

24 Tenant Name Average SF Ashley Furniture 35,000 $232 Bed Bath & Beyond Inc 28,285 $263 CarMax Tenant Expansion Report 2015 Expansion 2016 Expansion , ,000 (20 30 acres) Container Store 25,000 (123 countries) 28 states & Wash DC , l Notes 5store expansion plans in South FL (unspecified timeframe); new SW regional warehouse to be built in Mesquite Longterm growth calls for approximately 300 new Bed Bath & Beyond stores, and additional growth across the company's other concepts; up to 140 new stores in the next 2 years Plans to open 1015 stores per year through FY 2016; increase online user experience; recently opened stores irt...!i. & NY Opened 4 new stores in 03 of FY 2016; in 2017 will open stores in OH, NM. NJ & NY GoldMax 700 4,000 9 states 121 Hobby Lobby 55, states Recently opened stores in GA & TN Jared The Galleria of Jewelry 6,000 $ states JoAnn Stores 10,000 25, states 850+ LaZBoy 18,550 $ Major initiative to expand to 400 stores that average $4M in sales in 5 years; opened 100th new concept store; will open 6 companyowned & 10 dealerowned in FY 2017

25 Tenant Expansion Report, cont. Tenant Name Average SF 2015 Expansion 2016 Expansion Notes Marciel 25,000 7 states 35 Affiliated with Hobby Lobby Mattress Firm 4,300 $ states 3, Acquired by Steinhoff International in Sept 2016; opened 2 new stores in IA Michaels 18,000 $ states & Canada Plans to open 3 stores in early FY 2017 Office Depot 5,000 15,000 $ Closing 300 stores in the next three years Petco 20,000 $200 Petsense 5,000, Mexico & Puerto Rico 25 states Opening 71 locations nationwide & one Unleashed by Petco; remodeling 41 stores & expanding five stores in 2017 Recently acquired by Tractor Supply Company; plans to grow 1520% annually, and reach 200 stores by 2017 PetSmart 18,000 27,500 $243, Canada & Puerto Rico 1, Plans to open 80 new locations by the end of FY 2016 Pet Supplies Plus 6,000 10, states Looking to franchise in CA. FL. GA. NY. TX. VA and New England Pier 1 Imports 7,910 $205 & Canada 1, Plans to close approximately 30 stores during FY 2016 as part of final leg of 3year strategy, with modest new store opening plans for future growth; by end of FY 2018, company plans to operate fewer than 1,000 stores

26 Tenant Expansion Report, cont. Tenant Name Average SF 2015 Expansion 2016 Expansion Notes Staples 18,000 24,000 $ Closing 50 stores in 2017; closed 48 in 2016 Sunbelt Rentals 39 states 600+ Will spend $8 million to expand headquarters

27 Tenant Name Average SF Applebee s Tenant Expansion Report 2015 Expansion 2016 Expansion Notes , states & Puerto Rico 2, Franchisees to open 2030 new restaurants globally, most of which will be international; 4060 restaurants will close BJ's Restaurant & Brewhouse 7, states Believes national capacity is 425 restaurants & brewhouses Bob Evans 3,600 6, states Expected to close 6 restaurants in 2017 Buffalo Wild Wings Chili's 6,200 3,900 6,000 1,240 1,262 (U.S.) company owned; franchise Plans for 3,000 stores; in 2017 will open 15 companyowned, 15 franchised, 20 international, 2 companyowned RTacos, & 1215 franchised R Tacos Will open 56 domestic companyowned, 58 domestic franchised, 1 international companyowned, & 3540 international franchised restaurants in 2017 Chuck E Cheese 12, states including 12 including Peter Peter Piper Pizza Piper Pizza 1+ Plans to grow internationally Chuy s 8, states Plans to double its locations by 2020; will open locations in Chicago, Denver & Miami Cracker Barrel Old Country Store 9,000 $ states Plans to open 78 new stores in 2017; opened 2 Holler & Dash locations in AL in 2016 Denny's 3,800 4,500 1, restaurant openings in 2017, with a net growth of 1020 restaurants Dickey's BBQ Pit 1, states Plans to further expand in the Northeast; will open first store in HI within the next year

28 Tenant Expansion Report, cont. Tenant Name Average SF 2015 Expansion 2016 Expansion Notes Golden Corral 7,571 8, states New location in Poughkeepsie, NY Hooters 5, (global) New locations in Singapore & the Baltic States IHOP 5,000 1, Plans to open 7590 locations mainly within domestic markets; approximately 18 locations will close Longhorn Steakhouse 7, states Plans to open 2428 Darden restaurants in the upcoming FY McAlister's Deli 28 states new locations in TX in 2017 Newk's Eatery 4, states (SE) Plans to have 220 stores by 2018; has six new development areas that will procure 40 new restaurants Olive Garden 7, Plans to open 2428 Darden restaurants in the upcoming FY Panera Bread 4, states & Wash DC 2, Plans to offer food delivery from all its stores by 2018 Quaker Steak & Lube 5,700 8, states Aggressive nationwide expansion plan; new PA location Red Lobster 6,000 7, Plans to have 50 overseas locations by 2017, specifically in Asia Red Robin 4,500 5, locations rebranded as Red Robin Express will be completed by late 2016/early 2017; new location in NM

29 Tenant Expansion Report, cont. Tenant Name Average SF 2015 Expansion 2016 Expansion Notes Ruby Tuesday 6, store remodels in Jan 2017; plan 6 to close 95 underperforming restaurants Schlotzsky's 2,800 3, states 370+ Steak 'N Shake 3, states 417 company operated; 173 franchised units Recently opened Fresno locations; 7+ franchised 1+ plans to open more there at a later date Texas Roadhouse 6,700 7, states & 6 countries 520+ Plans to open 30 company restaurants in with at least 6 being Bubba's 33 TGI Friday's 6, (global) 1+ First location in Shropshire to open in April 2017 Twin Peaks 6,000 8, states Plans to grow in several select markets including FL & TX

30 Tenant Expansion Report 2015 Expansion 2016 Expansion Tenant Name Average SF Arby's 2,100 3,000 Baskin Robbins 600 1, states & Wash DC 3,400 (global) 7,700 (global); 2, (nationwide) Notes Plans to open 70 stores by 2022; plans to open 25 stores in the Northeast over the next six years with an emphasis on NY & PA Adding 3 stores to the Atlanta market Burger King 3,000 15, Further international expansion planned Carl's Jr 2,390 2, states (Southwest & West), Australia, Cambodia, Chile & Japan 1, new restaurants in TX in 2017; will develop 84 OH restaurants in the next 912 years with Hardee's; opened first restaurant in Chile Checkers DriveIn I Rally's 28 states Opening up to 26 locations in Sacramento over the next several years ChickfilA 4, states & Wash DC 2, Plans to open 810 locations in Western Ml by 2018; opened a new location in NC Chipotle Mexican Grill 2,530 2, All 15 of ShopHouse locations will close Culver's 4, states Plans to expand in the upper Midwest, including Chicago & its suburbs Del Taco 2,000 2, states Focus on Southeast expansion; longterm goal of having 2,000 locations

31 Tenant Expansion Report, cont Expansion 2016 Expansion Notes Tenant Name Average SF Dunkin' Donuts 1,200 2,500 Hardee's 3,000 lnnout Burger 41 states & Wash DC 30 states & 9 countries AZ, CA, NV, OR, TX & UT 8, ,086 (global) new stores in IN over next few years; 1,000 new stores throughout CA over the long term, with 200 new stores in CA over next few years; 1,500 stores expanding to China & Mexico; 17 new in AL & MS Growth opportunities in Eastern & Midwest; large expansion to Northeast with plans to open 200 new restaurants in 5 years starting in NJ & NY; first restaurant there to open in 1218 months, with goal to reach 1,000 stores in Northeast; current expansion in Chicago calls for 35 new stores in the next 7 years; will develop 84 OH restaurants in the next 912 years with Carl's Jr Will soon expand to Houston; 2+ recently opened a third location in San Antonio Jack In The Box 2, states & Guam 2, Majority of new locations will belong to franchisees KFC 20,064 1,081 1,096 Goal of less than 1,000 company owned YUMI Brands units Krystal 1, states (Southeast) new units over the next 3 years, with target of 500 total stores McDonald's 4,000 36,525 Plans to refranchise approximately ,000 locations by the end of 2018

32 Tenant Expansion Report, cont Expansion 2016 Expansion Notes each year 100 each year 1+ Tenant Name Average SF Panda Express 2,000 International expansion planned; recently opened in IA Popeye's 2, states & Wash DC 2, Purchased by Restaurant Brands International; plans to expand Odoba 47 states, Wash DC & Canada Approximately 40 of the new locations will be company owned Shake Shack 3, states, Wash DC & global 75 (global) new Shacks will be licensed in FY 2017; 2223 will be developed Sonic DriveIn 1,500 Starbucks 1,500 1, states 3, ,085 (global) 1, ,800 2,100 Wants to be 95% franchised by the end of FY 2017; will start to develop in their 46th state, HI, in 2018 Wants to open 8,000 more restaurants over the next 5 years. eventually growing to 30k stores with majority in Asia Subway 800 1,300 (107 countries) (global) 34 (net) Plans to open 100 outlet stores in the next year in India Taco Bell 6, Goal of less than 1,000 company owned YUMI Brands units Tim Hortons 16 states, Canada, & the Middle East 4, Opening in the UK & Mexico in 2017 Wendy's 3,800 6,500+ (global) 80 Goal of 1,000 new restaurants by ; plans to open at least 500 in the U.S.

33 Tenant Expansion Report, cont. Tenant Name Average SF 2015 Expansion 2016 Expansion Notes Whataburger 10 states (Southwest & Southeast) 800+ White Castle 12 states

34 Tenant Expansion Report Sporting Goods Stores Tenant Name Average SF 2015 Expansion 2016 Expansion Notes Academy Sports + Outdoors 16 states (Southeast) Plans to open 20 stores this year; opened first store in IL in 2016 Bass Pro Shops 20, , states & Canada 74 (U.S.) Cabelas & Bass Pro Shops merger indefinite; could possibly violate federal regulations Big 5 Sporting Goods 11,000 $ states (West) In FY 2017, opening 8 stores, but closing 3 stores Cabela's 103,015 $ states & Canada 68 (U.S.) Cabelas & Bass Pro Shops merger 13 8 indefinite; could possibly violate federal regulations Camping World 36 states & Canada 122 Aggressively expanding in TX; opening at least 3 locations in Dallas Dick's Sporting Goods 49,535 $ states Plans to open approximately 43 stores & relocate 7 stores Field & Stream 13 states 27 8 Expects to open 2 stores in early FY 2017 Golf Galaxy 29 states Plans to open 9 new stores & relocate one store in 2017 REI 23,000 33, states Opening a location in Chattanooga in 2018 Sports Authority 2+ Closed all 450+ stores