Sample business plan presentation

1. Company Name Here
SAMPLE Presented by: John-Andrew Kambanis
2008 – 2009 Development Business Plan
1
Company Name Here

2. Table of Contents
• 2007 Goals and Tactics
• 2008 Business Plan
• 2009 Preliminary Plan
• 2010 Vision
• 2008-2009 Development Metrics
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3. 2007 Goals & Tactics
A Look Back
GOALS ACCOMPLISHMENTS
Incorporated 1st round of analytic modeling
New analytic models capable of
w/ Dev. Modeling project. E&Y Model
underwriting & reporting Mixed-Uses in
complete. Dyna Model amended to allow
addition to Retail
forecast of mixed-use
Developed Pipeline Cost and Income
Refine & complete Development Status
Report to act as communication tool Summary to supplement Status Report,
among departments GAP planning and rolling 60
Constructware now in use with all new
Integrate Constructware into Accounting
projects and have achieved bi-directional
& Management Information System (MIS)
integration with accounting
Development Modeling Project will establish
Establish consistent MS Project
timetables as an intra-departmental tool format for timetable, training plan and
for coordinating departmental resources implementation plan
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Company Name Here

4. 2007 Goals & Tactics
A Look Back
GOALS ACCOMPLISHMENTS
MPC’s now using JDE system for all uses
including land sales and inventory, home
Complete transition of MPC’s onto new
accounting system sales, tax and bond pay. Defining executive
level reporting.
Built up staff on retail side. Solidified
Improve staffing and cross-department
working relationship with asset management
relationships / communications
and construction.
Q1 and Development staffing model
Enhance internal training & better
distinguish between “project managers” prepared. Talent readiness implemented with
& “developers” all levels.
2007 Recruits from Accenture, DePaul, Yale
Enhance recruiting efforts at top schools and Northwestern. Instituted PDI as screen
for all VP promotions and new hires.
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5. 2007 Development Activity
• Grew the Portfolio through new developments A Mall
and expansions or densifications of existing B Mall
C Mall Place
centers
D Town Center
E Coastland Center
F Mall
• 16 Major project openings delivered 2.5 MSF Galleria at T
Gateway O
N Mall
• Contributed $66.9 million to year 1 NOI
O Center Mall
P Hills Power Center
• Total project costs of $1.1 Billion
R Mall
River Mall
Shops at M
Southwest Plaza
Vista Commons
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6. 2007 Development Stats
• $8.0 million in total project cost / person
• $0.5 million in NOI growth / person
• 1.3 Projects / person
Development Headcount* 162
Approved Projects 92
Seed Phase Projects 114
Project Openings 42
*Development with Tenant Coordination
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7. 2007 Initiatives
• Sustainability
Lead process of evaluating and adopting Green Development programs, starting with Summer
Towne and Cotton Towne
With Sustainability team and Design and Construction, have identified 6-9 key projects as part of
the Sustainable Development Pilot Group
• Organic Growth
Lead organic growth by creating new products, including those in mixed-use densification,
developed to engage customers looking for new and better experiences
• Department Store Communication
Rationalized and implemented department store communications process
• Market Research & Consumer Intelligence
More disciplined approach to consumer research establishing brand positioning and character of
projects
Development of market research strategy focusing on new development site acquisitions
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8. 2007 Talent Readiness
Development Corporate Asset Profile
Evaluation of 66 Employees
Quadrant 2 Quadrant 1
1 – Quadrant 2 & 3
CORPORATE ASSET
High
20 11
CORE
Quadrant 4 Quadrant 3
2
25
Low
5
2 – Quadrant 3 & 4
Low High
POTENTIAL FOR ADVANCEMENT
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9. 2008 Goals & Tactics
What’s Ahead of Us?
Projects Process
– Implement development pipeline – Complete Phase I of the development modeling
project and launch phase 2 in Q1, 2008
– On-time on-budget openings
– Continue working on E&Y Scenario Builder for
– Solidify pre-development milestones
financial analysis
Hilton Head
– With Construction, keep all projects in process
Frisco JV
– Development & Asset Management will establish
NW Houston conceptual long-term development strategy for
– New Site Prospects all assets
– Plan & implement project controller function
Gainesville, VA (Suburban
allowing for accurate forecasting with
Washington DC)
appropriate teams
Apex, NC (Suburban Raleigh)
– Implement market research and consumer
Ladera Ranch (Orange County, CA)
intelligence strategies
People – Execute “soft close” process with construction
– Implement talent readiness results and financial services
– Complete staff-up – Revise development leasing process to bring full
resources to bear and clarify role of developer
– Continue alignment with Development /
Asset Management / Construction – Establish tenant coordination report as the
standard report for projected opening
– Implement new developer incentive plan
occupancies
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10. 2008 Goals & Tactics
What’s Ahead of Us?
Major Development Openings and Completions
• 2.3 Million Square Feet
• Contributing $104.2 million to year 1 NOI
• Total project costs $1.5 Billion
A Mall
M Plaza River Crossing
B Marketplace
New Mall Shops at La Canta
Bridge Commons
North Mall Southland Center
C Creek
North Court Town East
Columbia, MO
N at N Thomson Town Center
Cotton Square
Park Mall Tucson
F Mall
Park West Mall West Village Shops
Fox River Center
Parks @ Clinton S Tower Place
Governor's Square
Providence Place Westroads
Grand Canal
Red Mall White Hills
Mall of Louisiana
Red Promenade Willow Mall (NJ)
Mall St. Matthew's
Rio West Mall Wood Center
M Park
Mond Mall
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11. 2009 Goals & Tactics
A Look Into the Future
Major Development Openings and Completions
• Projected 2.7 Million Square Feet
• Contributing $108.7+ million to year 1 NOI
• Total project costs $1.7 Billion
A wood H Mall
Bay Mall Jordan Mall
Boise Square Ken Town Center P Lakes
Brass Mill Center Lynn Mall P Mall
Cannery Hills Main Mall Pine Ridge Mall
Chapel Road Mall St. Mary Silver Galleria
C Mall Mayfair Mall South West
Deer Creek N Lifestyle Summer Towne Centre
Gateway Nesh Mall The Bridges @ Mall Hill
Elk Promenade North Point Mall Valley Plaza
Foothills Mall Oak Mall West Oaks
Glen Square P Park White Moon
Harbor Mall Peachtree Mall Willowbrook Mall
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12. Our Vision for 2010
A development organization which is best-in-class for all uses and approaches each
project via:
Master planning
•
• Mixed-use densification
• Place making process
First wave of mixed use projects are opening and residential market will rebound from
2006-2009 slump creating opportunities for more ambitious projects
• Buy one other MPC due to downturn
Larger array of mixed-use opportunities because of “Company Name” experience in
mixed-use fully exploiting competitive advantage
Focus on sustainability in mixed-use and MPC’s due to increased resource concern
and threat of taxes based on carbon footprint
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Company Name Here

13. 2008 Development Metrics
GGP’s NOI Projections
NOI Dollars
12.1 % Increase
$3.2
$3.2
$3.1
6.2 % Increase
$3.0
$2.9
$ Billions
$2.9
$2.8
$2.7
$2.7
$2.6
$2.5
$2.4
2007 2008 2009
*NOI for operating properties
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14. 2008 Development Metrics
Development Will Contribute 45% of 2008 Total NOI Growth
Development’s Anticipated Contribution to Projected NOI Growth
350
300
Total
250
$347.9 M
$ Millions
200
150 Total
$169.7 M
100
38.5%
50 $133.7M
45.4%
$77.0M
0
2008 2009
Development Contribution Remaining NOI Growth
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15. 2008 Development Metrics
Top 5 2007 Openings Contributing to 2008 NOI ($ Millions)
• New Towne $ 16.4
• Shops at Fallen Pines $ 10.1
• C Town Center $ 8.3
• Gate Overlook $ 5.7
• A Mall $ 3.6
Total $ 44.1
Representing 57% of Development’s Total Contribution
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16. 2008 Development Metrics
GGP’s Annual Capital Expenditure Projections
Pipeline Capital Expenditures
12.5% Increase
24.0% Increase
$2.5 $2.6
$2.4
$2.0
$1.9
$ Billions
$1.5
$1.0
$0.5
$0.0
2007 2008 2009
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17. 2008 Development Metrics
GGP’s Annual Capital Expenditure Projections
Pipeline Capital Expenditures
$2.5
$2.0
$ Billions
$1.5 $2.08 1.60
0.68
$1.0
$1.35
$0.5 0.03 0.03
$0.0
2008 2009
Construction Pre-Construction Seed
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18. 2008 Development Metrics
Overhead Represents Less Than 2% of Annual Capital Expenditures
Development G&A as a % of Pipeline Expenditures
2007 2008 2009
$ 1,899.2 $ 2,354.8 $ 2,649.1
Pipeline Capital Expenditure
$ 27.9 $ 33.1 $ 34.6
Total Development Overhead
Overhead as a % of Capital
1.3%
1.5% 1.4%
Expenditures
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19. 2008 Development Metrics
Percent of Total Development Department Costs Capitalized
Development Department Costs Capitalized
$35
$34.6
$30 $33.1
$27.9
$25
$ Millions
$20
51.9%
$15 51.7%
50.8%
$10
$5
$0
2007 2008 2009
Total Overhead Capitalized Costs
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20. 2008 Development Metrics
Development Department’s Approved Projects
Average Total Cost Per Approved Project
$100
$80
$81.5
$60
$ Millions
$40 $43.3
44
$29.2
$20 34 21
$0
2007 2008 2009
Average Cost per Approved Project Number of Approved Projects
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21. 2008 Development Metrics
Development Department’s Approved Projects
Average NOI Per Approved Project
$6
$5.9
$ Millions
$4
$3.1
$2
$1.8 34 21
44
$0
2007 2008 2009
Average NOI per Approved Project Number of Approved Projects
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22. 2008 Development Metrics
Total Write-offs Represent 0.2% of Annual Capital Expenditures
Total Write-offs as a % of Pipeline Expenditures
2007 2008 2009
$ 1,899.2 $ 2,354.8 $ 2,649.1
Pipeline Capital Expenditures
$ 3.7 $ 4.2 $ 4.7
Write-offs
Write-offs as a % of Capital
0.2%
0.2% 0.2%
Expenditures
Note: Analyzing 2005-2006 trend
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