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Excel Trust Announces Results for the Quarter Ended March 31, 2014 Declares Dividend

SAN DIEGO, CA -- (Marketwired) -- 04/30/14 -- Excel Trust, Inc. (NYSE: EXL) (the "Company") announced today financial and operating results for the quarter ended March 31, 2014. A supplemental financial package with additional information can be found on Excel Trust's website under the Investor Relations tab.

Highlights for the First Quarter 2014

  • Reported Adjusted Funds from Operations (AFFO) for the quarter of $11.9 million, or $0.24 per diluted share
  • Reported Funds from Operations (FFO) for the quarter of $11.4 million or $0.23 per diluted share
  • Declared a second quarter 2014 dividend of $0.175 per share, which equates to an annualized dividend rate of $0.70 per share
  • Published Moody's investment grade credit rating of (P)Baa3 with a stable outlook
  • Increased share buy-back program to $50.0 million

"We are pleased with the results for the first quarter," commented Gary Sabin, Chairman and CEO. "As discussed on our previous conference call, this year we outlined a strategy that we believe will help our stock price better reflect our net asset value. Since that call, our stock has taken a step in the right direction and we hope that as we continue to execute our strategy the gap will narrow further."

Financial Results

Excel Trust reported Adjusted Funds From Operations (AFFO) for the first quarter of $11.9 million, or $0.24 per diluted share. Excel Trust reported Funds From Operations (FFO) for the first quarter of $11.4 million or $0.23 per diluted share. Net loss attributable to the common stockholders for the first quarter was $0.5 million, or $0.01 per diluted share. This compares to AFFO of $10.0 million, or $0.21 per diluted share, FFO of $10.3 million or $0.22 per diluted share and net loss attributable to the common stockholders of $2.4 million, or $0.06 per diluted share in the three-month period ended March 31, 2013.

Excel Trust considers AFFO and FFO important supplemental measures of its operating performance and believes that they are frequently used by securities analysts, investors and other interested parties in the evaluation of real estate investment trusts (REITs), many of which present AFFO and FFO when reporting their results. A complete reconciliation containing adjustments from GAAP net income available to common shareholders to AFFO and FFO and a definition of both are included at the end of this release.

Operating Results

At the end of the first quarter 2014, the retail portfolio was 93.7% leased compared to 94.0% in the fourth quarter 2013. Anchor space was 99.1% leased compared to 99.1% in the fourth quarter 2013 and inline space was 83.9% leased compared to 84.6% during the fourth quarter 2013.

During the first quarter 2014, the Company signed 49 retail leases and renewals, totaling 192,993 square feet. The average releasing spread on comparable new leases was 4.4%.

Same Store Net Operating Income ("SSNOI") for the first quarter 2014 increased 2.1%.

Summary of Significant Activities During First Quarter 2014

On January 6, 2014, the Company published an investment grade credit rating from Moody's. The agency assigned a (P)Baa3 rating citing Excel Trust's high quality property portfolio, sound liquidity, and moderate leverage. Additionally, Moody's stated that Excel Trust's management team has a long, successful operating history, in both the private and public markets. The Company obtained an investment grade rating to facilitate access to the investment grade unsecured debt market as part of its strategy to maximize its financial flexibility and manage its cost of capital.

Second Quarter 2014 Dividends Declared

The Board of Directors declared a second quarter cash dividend of $0.175 per common share payable on July 15, 2014 to shareholders of record as of June 30, 2014.

The Board of Directors has also declared a dividend of $0.4375 per share on the Company's Series A Cumulative Convertible Perpetual Preferred Shares, and a dividend of $0.5078 on its Series B Cumulative Redeemable Preferred Shares. The dividend on Excel Trust's outstanding Series A and Series B Preferred Shares will be payable on July 15, 2014 to the Series A and Series B Preferred shareholders of record as of June 30, 2014.

Guidance

Excel Trust expects its AFFO per share for fiscal year 2014 to be between $0.91 and $0.98 and its FFO per share to be between $0.90 and $0.97. The Company will further discuss assumptions surrounding guidance tomorrow on the conference call.

Conference Call

In conjunction with Excel Trust's results, you are invited to listen to its conference call on Thursday, May 1, 2014 at 1:00 p.m. Eastern Time.

PHONE: Conference call access information is as follows:
Dial in number: (800) 299-8538
International Dial in number: (617) 786-2902
Pass code: 34697712

INTERNET: A live webcast of the conference call will be available through Excel Trust's web site at www.exceltrust.com. The conference call will be recorded and available for replay for seven days beginning at 4:00 p.m. ET on May 1, 2014. Replay access information is as follows:
Dial in number: (888) 286-8010
International Dial in number: (617) 801-6888
Pass code: 30082346

About Excel Trust
Excel Trust, Inc. is a retail focused REIT that primarily targets community and power centers, grocery anchored neighborhood centers and freestanding retail properties. The Company has elected to be treated as a REIT, for U.S. federal income tax purposes. Excel Trust trades publicly on the NYSE under the symbol "EXL". For more information on Excel Trust, Inc., please visit www.exceltrust.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, without limitation: general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants' financial condition, and competition from other developers, owners and operators of real estate); adverse economic or real estate developments in the retail industry or the markets in which the Company operates; increased interest rates and operating costs; decreased rental rates or increased vacancy rates; the Company's failure to obtain necessary outside financing on favorable terms or at all; changes in the availability of additional acquisition opportunities; the Company's inability to successfully complete real estate acquisitions or successfully operate acquired properties; the Company's failure to qualify or maintain its status as a REIT; risks associated with the Company's dependence on key personnel whose continued service is not guaranteed; and risks associated with downturns in domestic and local economies, and volatility in the securities markets. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission, including the Company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)
Excel Trust considers FFO and AFFO to be important supplemental measures of its operating performance and believes they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO and AFFO when reporting their results. FFO and AFFO are intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO and AFFO exclude depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, they provide a performance measure that, when compared year-over-year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income.

Excel Trust computes FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT. As defined by NAREIT, FFO represents net income (loss) (computed in accordance with generally accepted accounting principles, or GAAP), excluding real estate-related depreciation and amortization, impairment charges and net gains (losses) on the disposition of assets and after adjustments for unconsolidated partnerships and joint ventures. Excel Trust computes AFFO by adding to FFO the non-cash compensation expense, amortization of prepaid financing costs and non-recurring transaction costs, and other one-time items, then subtracting or adding straight-line rents, amortization of above and below market leases and non-incremental capital expenditures. Excel Trust's computation of FFO and AFFO may differ from the methodology for calculating FFO and AFFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO and AFFO do not represent amounts available for management's discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties.

FFO and AFFO should not be considered alternatives to net income (loss) (computed in accordance with GAAP) as an indicator of Excel Trust's financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of Excel Trust's liquidity, nor are they indicative of funds available to fund Excel Trust's cash needs, including Excel Trust's ability to pay dividends or make distributions.

Summarized Financial Statements
Reported results are preliminary and not final until the filing of Excel Trust's Form 10-Q or 10-K with the Securities and Exchange Commission and, therefore, remain subject to adjustment. The accompanying notes to follow in the Form 10-Q or 10-K are an integral part of these consolidated financial statements.



                        CONSOLIDATED BALANCE SHEETS
                           (Dollars in thousands)

                                                   March 31,   December 31,
                                                     2014          2013
                                                 ------------  ------------
ASSETS:

Property:
  Land                                           $    380,368  $    380,366
  Buildings                                           646,062       642,356
  Site improvements                                    64,283        63,242
  Tenant improvements                                  55,624        54,025
  Construction in progress                              8,028         7,576
  Less accumulated depreciation                       (68,635)      (61,479)
                                                 ------------  ------------
    Property, net                                   1,085,730     1,086,086
Cash and cash equivalents                               5,307         3,245
Restricted cash                                         8,535         8,147
Tenant receivables, net                                 3,746         5,117
Lease intangibles, net                                 73,013        78,345
Deferred rent receivable                                9,819         9,226
Other assets (1)                                       21,143        20,135
Real estate held for sale, net of accumulated
 amortization                                               -             -
Investment in unconsolidated entities                   8,405         8,520
                                                 ------------  ------------
    Total assets                                 $  1,215,698  $  1,218,821
                                                 ============  ============

LIABILITIES AND EQUITY:

Liabilities:
  Mortgages payable, net                         $    238,543  $    251,191
  Notes payable                                       198,000       179,500
  Unsecured notes                                     100,000       100,000
  Accounts payable and other liabilities               23,964        21,700
  Lease intangibles, net                               26,967        28,114
  Dividends/distributions payable                      10,944        10,932
                                                 ------------  ------------
  Total liabilities                                   598,418       591,437

Equity:
  Total stockholders' equity                          605,665       615,446
  Non-controlling interests                            11,615        11,938
                                                 ------------  ------------
  Total equity                                        617,280       627,384
                                                 ------------  ------------
    Total liabilities and equity                 $  1,215,698  $  1,218,821
                                                 ============  ============


(1) Other assets is primarily comprised of deposits, notes receivable,
 prepaid expenses and furniture, fixtures, and equipment





                   CONSOLIDATED STATEMENTS OF OPERATIONS
       (In thousands, except per share data and dividends per share)


                                                 Three Months  Three Months
                                                    Ended         Ended
                                                   March 31,     March 31,
                                                     2014          2013
                                                 ------------  ------------

Revenues:
  Rental revenue                                 $     24,908  $     21,902
  Tenant recoveries                                     5,256         4,630
  Other income                                            434           315
                                                 ------------  ------------
    Total revenues                                     30,598        26,847

Expenses:
  Maintenance and repairs                               2,223         1,681
  Real estate taxes                                     3,366         2,965
  Management fees                                         518           218
  Other operating expenses                              1,731         1,508
  Changes in fair value of contingent
   consideration                                            -             -
  General and administrative                            3,815         3,831
  Depreciation and amortization                        11,796        12,166
                                                 ------------  ------------
    Total expenses                                     23,449        22,369
                                                 ------------  ------------

Net operating income                                    7,149         4,478

  Interest expense                                     (4,989)       (4,578)
  Interest income                                          49            50
  Income (loss) from equity in unconsolidated
   entities                                                69             -
  Changes in fair value of financial instruments
   and gain on OP unit redemption                           -           230

                                                 ------------  ------------
Net income (loss) from continuing operations            2,278           180

Income from discontinued operations before gain
 on sale of real estate assets                              -           105
  Gain on sale of real estate assets                        -             -

                                                 ------------  ------------
Income from discontinued operations                         -           105

                                                 ------------  ------------
Net income (loss)                                       2,278           285
  Net (income) loss attributable to non-
   controlling interests                                  (83)          (28)

                                                 ------------  ------------
Net income (loss) attributable to Excel Trust,
 Inc.                                                   2,195           257
  Preferred stock dividends                            (2,744)       (2,744)
                                                 ------------  ------------

Net income (loss) attributable to the common
 stockholders                                    $       (549) $     (2,487)
                                                 ============  ============

Basic and diluted net income (loss) per share    $      (0.01) $      (0.06)
                                                 ============  ============
Weighted-average common shares outstanding -
 basic and diluted                                     47,785        45,352
                                                 ============  ============

The notes in the Form 10-Q or 10-K are an integral part of these condensed
 consolidated financial statements.



Reconciliation of Net Income to FFO and AFFO

For the Periods Ended March 31, 2014
(In thousands, except per share data)

Excel Trust, Inc.'s FFO and AFFO available to common stockholders and
operating partnership unitholders and a reconciliation to net income(loss)
for the three months ended March 31, 2014 and 2013 is as follows:


                                                        Three       Three
                                                       Months      Months
                                                        Ended       Ended
                                                      March 31,   March 31,
                                                        2014        2013
                                                     ----------  ----------

Net income (loss) attributable to the common
 stockholders                                        $     (549) $   (2,448)

Add:
  Non-controlling interests in operating partnership        (10)        (59)
  Depreciation and amortization                          11,796      12,390
Deduct:
  Depreciation and amortization related to joint
   venture                                                  170         411
  Gain on sale of real estate assets                          -           -
                                                     ----------  ----------
Funds from operations                                $   11,407  $   10,294

Adjustments:
  Transaction costs                                         306         133
  Deferred financing costs                                  424         495
  Stock-based and other non-cash compensation
   expense                                                  574         562
  Changes in fair value of financial instruments              -        (230)
  Straight-line effects of lease revenue                   (592)       (877)
  Amortization of above- and below-market leases           (138)         40
  Non-incremental capital expenditures                     (111)       (116)
  Non-cash expenses (income) related to joint
   venture                                                   (9)       (297)

                                                     ----------  ----------
Adjusted funds from operations                       $   11,861  $   10,004
                                                     ==========  ==========

Weighted average common shares outstanding               47,785      45,352
Add:
  OP units                                                1,020       1,241
  Restricted stock                                            -         234
  Contingent consideration related to business
   combinations                                               -         190
                                                     ----------  ----------
  Weighted average common shares outstanding -
   diluted (FFO and AFFO)                                48,805      47,017
                                                     ==========  ==========

Funds from operations per share (diluted)            $     0.23  $     0.22
Adjusted funds from operations per share (diluted)   $     0.24  $     0.21

                                                     ----------  ----------

Other Information:
  Leasing commissions paid                           $      272  $      508
  Tenant improvements paid                           $    1,257  $    2,381

                                                     ----------  ----------

Excel Trust, Inc.
Matt Romney
SVP, Capital Markets
858-613-1800
Email Contact
www.exceltrust.com

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