STACKING UP

Friedman Billings Ramsey research compares strip center REITs by the average demographics surrounding existing properties. Federal Realty leads the pack in highest average incomes, but its properties also sit in the markets with the lowest population growth potential.

STRIP CENTER REIT DEMOGRAPHICS
Company Aggregate Household Income ($M) Average Household Income ($) Population 5-Year Estimated Population Growth
Federal Realty 4,815 96,200 132,808 2.60%
Regency Centers 3,010 89,583 91,041 8.8
Saul Centers 2,972 85,526 90,778 10.7
Pan Pacific Retail 2,674 68,957 116,531 7.5
Inland Retail 2,485 83,864 81,317 5.8
Weingarten Realty 2,477 66,151 98,072 6.5
Acadia Realty Trust 2,442 79,864 83,437 2.6
Kimco Realty Group 2,357 67,605 93,600 3.8
Equity One 2,165 73,332 77,506 8.7
Developers Diversified Realty 1,992 69,882 70,741 4.6
New Plan Excel Realty Trust 1,947 68,221 75,678 4.6
Cedar Shopping Centers 1,923 61,889 86,083 2.8
Heritage Property 1,922 70,501 68,848 3.7
Ramco-Gernshenson 1,908 73,988 66,645 5.9
Kite Realty 1,610 82,452 53,429 11.4
Group Average 2,447 75,844 85,768 6
Sources: Claritas, SNL, Company reports, Friedman Billings Ramsey

OFFICE SPACE

Staples leads the sector with 576 stores, nearly one-third of which are located in the New York and Los Angeles markets. Office Depot, however, has a greater percentage of locations in the top 25 metropolitan areas, according to Morgan Stanley research.

OFFICE SUPPLIES MARKET
MSA White Collar Employment Employment Growth (5-year CAGR, %) Staples Number of Stores Office Depot Office Max
New York (N.Y., N.J. ,Conn.) 5,825,973 -0.1 126 19 22
Los Angeles-Long Beach-Santa Ana, Calif. 3,698,955 0.2 69 57 21
Chicago-Naperville-Joliet (Ill., Ind., Wisc.) 2,989,907 -0.5 22 45 49
Washington-Arlington-Alexandria (DC, Va., Md., W.Va.) 2,013,560 2.0 41 26 0
Philadelphia-Camden-Wilmington (Pa., N.J., Del., Md.) 1,885,361 0.2 49 15 14
Dallas-Fort Worth-Arlington, Tex. 1,765,061 0.0 21 39 23
Boston-Cambridge-Quincy (Mass.,N.H.) 1,750,136 -0.9 48 4 11
Miami-Ft. Lauderdale-Miami-Beach, Fla. 1,709,620 1.8 5 42 22
Houston-Baytown-Sugarland, Tex. 1,610,063 0.8 0 34 19
San Francisco-Oakland-Fremont, Calif. 1,527,267 -1.4 16 19 12
Atlanta-Sandy Springs-Marietta, Ga. 1,400,575 0.4 22 34 22
Detroit-Warren-Livonia, Mich. 1,379,185 -1.5 17 13 19
Minneapolis-St. Paul-Bloomington (Minn., Wisc.) 1,184,897 N/A 0 9 23
Phoenix-Mesa-Scottsdale, Ariz. 958,192 2.5 23 0 24
Seattle-Tacoma-Bellevue, Wash. 953,151 -0.1 14 20 12
San Diego-Carlsbad-San Marcos, Calif. 893,629 1.4 18 18 0
St. Louis (Mo., Ill.) 878,679 N/A 0 13 16
Baltimore-Towson, Md. 828,422 0.5 17 12 0
Denver-Aurora, Colo. 781,066 -0.4 0 19 15
Tampa-St. Petersburg-Clearwater, Fla. 776,940 1.7 14 17 0
Pittsburgh, Pa. 766,661 -0.2 12 5 8
Cleveland-Elyria-Mentor, Ohio 732,673 -1.2 7 0 16
Riverside-San Bernardino-Ontario, Calif. 656,815 4.3 22 13 7
Kansas City (Mo.-Kan.) 646,416 0.5 0 9 12
Cincinnati-Middleton (Ohio-Ken.-Ind.) 640,025 0.3 13 7 4
TOTAL 38,253,229 576 489 371
% of Stores in Top 25 46% 48% 40%
% of Stores in Top 25 with Positive Employment Growth 25% 32% 18%
% of Stores in Top 25 with Employment Growth > 1% 10% 11% 6%
Source: Company data, Trade Dimensions, U.S. Department of Labor, Morgan Stanley Research