HUGO'S THE BOSS

Hugo Boss has the highest concentration of its stores in the top five mall REITs with a full 88 percent of its locations in those properties. Elder Beerman has the lowest concentration.

HIGHEST RETAILER CONCENTRATION IN MALLS AND LIFESTYLE CENTERS
Retailer Stores in Top 5 REIT Malls Stores in All Malls & LCs Top 5 Market Share
Hugo Boss 30 34 88%
Occhiali da Sole 34 39 87
Neiman Marcus 29 34 85
Sony Style 28 33 85
Bailey Banks & Biddle 61 75 81
Nordstrom 82 101 81
Armani Exchange 34 42 81
Sephora 94 117 80
Ben Bridge Jewelers 61 76 80
Torrid 101 126 80
Steve Madden 67 84 80
Movado 26 33 79
Swarovski 72 92 78
Burberry 25 32 78
Montblanc 25 32 78
Bebe Sport 31 40 78
Louis Vuitton 31 40 78
Janie n Jack 58 75 77
Vans Shoes 70 91 77
Aldo 182 238 76
LOWEST RETAILER CONCENTRATION IN MALLS AND LIFESTYLE CENTERS
Retailer Stores in Top 5 REIT Malls Stores in All Malls & LCs Top 5 Market Share
Elder Beerman 7 51 14
Bon Ton 7 38 18
Hatzone 8 42 19
Burlington Coat 12 58 21
Belk's 34 147 23
Dress Barn 18 71 25
Shoe Department 79 295 27
Michael's 12 44 27
Dollar Tree 33 120 28
Beall's 11 39 28
Source: Friedman, Billings, Ramsey & Co., Inc., company and mall Web sites and Costar

BUILDING INTELLIGENCE

Of all retail types, lifestyle centers have been the fastest-growing segment for seven straight years. Mall construction has reduced to a trickle, with just a 0.2 percent increase over existing space built last year.

SHOPPING CENTER GROWTH 2000-2006
2000 2001 2002 2003 2004 2005 2006
Strip (less than 100,000) 1.3% 1.3% 1.2% 1.4% 1.6% 1.9% 1.8%
Strip (100,000 to 200,000) 1.8 1.3 1.1 1.0 1.2 1.3 1.1
Strip (200,000 to 400,000) 2.5 2.8 2.6 2.3 1.9 2.1 1.9
Strip (over 400,000) 3.5 3.6 2.9 2.8 2.8 2.8 2.6
Sub-category: malls 0.7 0.8 0.7 0.5 0.4 0.3 0.2
Sub-category: lifestyle centers 10.3 17.3 19.3 11.4 11.9 10.8 10.4
Total shopping center 1.6 1.5 1.4 1.4 1.5 1.8 1.6
Source: Merrill Lynch, ICSC

LEADING THE PACK

In recent months, mall-based anchors have been posting the largest same-store sales gains of any retail segment. However, mall-based specialty retailers have been the weakest.

MONTHLY SAME-STORE SALES BY PROPERTY TYPE
Feb-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07
Mall-based Specialty Retailers -4.5% 5.9% -0.5% 1.2% 0.1% 1.3% -0.9%
Mall-based Anchors 1.1 7.2 6.3 3.7 4.8 7.2 5.4
Community Center Retailers 1.8 7.4 3.2 2.5 3.8 4.6 1.6
Power/Community Center Anchors 3.3 3.9 2.1 2.7 2.7 3.5 3.3
Power Center Anchors 1.6 1.5 1.8 2.5 4.4 2.8 3.3
Total: 2.3 6.0 2.3 2.0 2.1 3.2 2.0
Source: Merrill Lynch