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Community Development Operations
Community Development Questions – Common Themes
“What’s a nice mall company like you doing in a business like this?”
“Is the business sustainable?”
“Aren’t land developers cowboys in SUV’s?”
Community Development Operations
Columbia based operation
Summerlin based operation
New business
241.0
85.2
Consolidated Financial Performance(in $ Millions)
Revenues
Net Operating Income
1997 1998 1999 2000 2001 2002
204.4
49.2
198.8
48.0
197.2
51.1
215.5
66.8
218.3
75.0
Baltimore-WashingtonColumbia
ColumbiaCurrent Statistics
Population
Number of Units
Employees
SF of Employment
96,000
34,100
91,000
26.0 Million
Columbia, MarylandDollars per Saleable Acre vs. Acres Sold
Dollars per Acre
Acres Sold
1st Full Year Ownership
1986
January 1 -December 31
2002
$164,000
291
$593,000
80
Columbia Based Operations
Emerson
Stone Lake
Fairwood
Fairwood
Stone LakeEmerson
Emerson800+ Acres
900 remaining units
1.8 million sf of
employment & retail
Fairwood
Stone LakeEmerson
Emerson
Emerson
Emerson
Fairwood
Stone LakeEmerson
Stone Lake137 Acres
224 units
Custom Home Sites
& Luxury Townhomes
Stone Lake
Stone Lake
Stone Lake
Fairwood1,050 Acres
1600 remaining units
Residential, Retail &
Employment Units
Fairwood
Stone LakeEmerson
Fairwood
Fairwood
Fairwood
Columbia Based Operations
Fairwood
Stone LakeEmerson
Jurisdictions with Growth Control
Fairwood
Stone LakeEmerson
Las Vegas Valley
Summerlin
The Strip
Summerlin
Current Statistics
Population
Number of Units
Employees
SF of Employment
66,700
32,400
14,400
2.4 Million
Summerlin, NevadaDollars per Saleable Acre vs. Acres Sold
Dollars per Acre
Acres Sold
1st Full Year Ownership
1997
January 1 -December 31
2002
$157,000
653
$264,000
366
Summerlin
The RidgesThe Ridges
The VistasThe Vistas
The PaseosThe Paseos
The Ridges – 790 acresThe Ridges – 790 acres
The Paseos – 375 acresThe Paseos – 375 acres
The Vistas – 815 acresThe Vistas – 815 acres
Sustainability – Three Initiatives
New Business
Sustainability – Three Initiatives
New Business
Purchase of raw land
Purchase of raw land
Acquisition of operating land projects
Sustainability – Three Initiatives
New Business
Purchase of raw land
Acquisition of operating land projects
Increase productivity & life of current
holdings
Sustainability – Three Initiatives
New Business
Acquisition Criteria
Property in primary market with consistent growth
Low land basis with no or favorable carry
Entitlements – permit development flexibility & diverse land
uses
Environment which could promote a competitive advantage
Property of a scale & production life to permit value
creation & appreciation
Increase Productivity & Life of Holdings
Columbia
Sale of development rights on retained surface parking lots
Redevelopment of low intensity TRC owned building sites
Elimination of product lines which do no increase
appreciation of remaining saleable acres
Expand custom lot program
Competitive bidding of residential parcels
Participating in builders’ lot premiums & retail home sales
Increase Productivity & Life of Holdings
Summerlin
Finished Lot Program -Summerlin
Better inventory control
Pricing closer to the point of sale to builder
Expands participation opportunities
Summerlin’s Available Land in the Context of Diminishing Competition
Approximately 19% of approvable land
in Summerlin’s market remains for
residential development in
2002.
Cowboys in SUV’s
The Rouse Company’s Development Approach
Production based on builders sales not our sales to builders
Product delivery with minimal holding period
Production control systems to protect profit margins
Product release in small increments
Participate in retail sale of builder’s finished products
Recycle products
The Rouse Company’s Inherent Assets
TRC’s name recognition & excellent reputation
Transferability of our experience
Availability & breadth of resources
Depth of our management teams
Relationship with national builders & developers
Disciplined & proven management practices
TRC’s desire to grow the business
