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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
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WHY CALIFORNIA?
Strong and diverse economy
CALIFORNIA'S 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
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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
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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
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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
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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
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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
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REGENCY IN CALIFORNIA
Superior markets
3-Mile Estimated
% of Regency's % of Ca lifornia Household Income - June
Regency's 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
