General Growth Properties, Inc. (the “Company” or “GGP”) (NYSE:
GGP) today reported results for the three and nine months ended
September 30, 2015.
Financial Results
For the Three Months Ended September 30, 2015
Comparable net operating income (“Same Store NOI”) increased
5.1% to $560 million from $533 million in the prior year
period.
Company earnings before interest, taxes, depreciation and
amortization (“Company EBITDA”) increased 5.6% to $526 million from
$498 million in the prior year period.
Company funds from operations (“Company FFO”) per share
increased 9.6% to $0.36 per diluted share from $0.33 per diluted
share in the prior year period. Company FFO increased 10.5% to $341
million from $308 million in the prior year period.
Net income attributable to common stockholders, which is
impacted primarily by depreciation expense, gain on changes in
control of investment properties and other and unconsolidated real
estate affiliates- gain on investment, was $120 million, or $0.13
per diluted share, as compared to net income of $71 million, or
$0.07 per diluted share, in the prior year period.
For the Nine Months Ended September 30, 2015
Same Store NOI increased 4.0% to $1.64 billion from $1.58
billion in the prior year period.
Company EBITDA increased 4.9% to $1.53 billion from $1.46
billion in the prior year period.
Company FFO per share increased 6.8% to $1.01 per diluted share
from $0.95 per diluted share in the prior year period. Company FFO
increased 7.8% to $969 million from $898 million in the prior year
period.
Net income attributable to common stockholders, which is
impacted primarily by depreciation expense, gain from changes in
control of investment properties and unconsolidated real estate
affiliates- gain on investment, was $1.17 billion, or $1.23 per
diluted share, as compared to net income of $364 million, or $0.39
per diluted share, in the prior year period.
Operational Highlights
- Same Store leased percentage was 96.5%
at quarter end.
- Initial rental rates for signed leases
that have commenced in the trailing 12 months on a suite-to-suite
basis increased 9.7%, or $5.62 per square foot, to $63.30 per
square foot when compared to the rental rate for expiring
leases.
- Tenant sales (all less anchors)
increased 3.3% to $20.7 billion on a trailing 12-month basis.
Tenant sales (<10,000 square feet) increased 3.7% to $593 per
square foot on a trailing 12-month basis.
Investment Activities
Development
The Company has development and redevelopment activities
totaling approximately $2.1 billion at share, of which projects
totaling approximately $500 million have opened, $1.0 billion is
under construction, and $644 million is in the pipeline.
Common Share Repurchases
During the quarter, the Company acquired approximately 3.4
million of its common shares at a weighted average price of $25.24
per share for total consideration of approximately $86.0 million.
During the nine months ended, the Company acquired approximately
4.05 million of its common shares at a weighted average price of
$25.36 per share for total consideration of approximately $102.8
million.
Financing Activities
Property-Level Debt
During the three months ended September 30, 2015, the Company
obtained $140 million of new fixed rate debt with a weighted
average term to maturity of 10.0 years and a weighted average
interest rate of 4.1%, and repaid $99 million of fixed rate debt,
which had a weighted-average interest rate of 4.9%.
Corporate Credit Facility
On October 30, 2015 the Company amended its corporate credit
facility to extend the maturity to October 2020.
Dividends
On November 2, 2015, the Company’s Board of Directors declared a
fourth quarter common stock dividend of $0.19 per share payable on
January 4, 2016, to stockholders of record on December 15, 2015.
This represents an increase of $0.02 per share or 12% growth over
the dividend declared in fourth quarter 2014, and an increase of
$0.01 per share or 6% growth over the dividend declared in third
quarter 2015.
The Board of Directors also declared a quarterly dividend on the
6.375% Series A Cumulative Redeemable Preferred Stock of $0.3984
per share payable on January 4, 2016, to stockholders of record on
December 15, 2015.
Guidance
Company FFO for the fourth quarter of 2015 is expected to be
$0.41 to $0.43 per diluted share. Company FFO for the year ending
December 31, 2015 is expected to be $1.42 to $1.44 per diluted
share. The preliminary Company FFO for the year ending December 31,
2016 is expected to be $1.51 to $1.55 per diluted share.
Earnings Guidance For the
three months ending December 31, 2015 For the year
ending December 31, 2015 For the year ending December
31, 2016
Company FFO per diluted share $0.41 - $0.43 $1.42
- $1.44
$1.51 - $1.55
Adjustments 1 (0.01) (0.09) (0.05) NAREIT FFO $0.40 -
$0.42 $1.33 - $1.35
$1.46 - $1.50
Depreciation, including share of JVs (0.21) (0.90) (0.84) Gain on
sale of investments 2 - 0.98 -
Net income
attributable to common stockholders $0.19 - $0.21
$1.41 - $1.43
$0.62 - $0.66
Preferred stock dividends - 0.02 0.02
Net income
attributable to GGP $0.19 - $0.21 $1.43 -
$1.45
$0.64 - $0.68
1 Includes impact of straight-line rent,
above/below market rent, ground rent amortization, debt market rate
adjustments and other non-cash or non-comparable items.
2 Includes the gains from the sale of 25% and 12.5% interests in
Ala Moana Center in 2015.
The guidance estimate reflects management’s view of current and
future market conditions, including assumptions with respect to
Same Store NOI growth, rental rates, occupancy levels, retail
sales, variable expenses, interest rates and the earnings impact of
the events referenced in this release and previously disclosed. The
guidance also reflects management’s view of capital market
conditions. The estimates do not include possible future gains or
losses, or the impact on operating results from other possible
future property acquisitions or dispositions or capital market
activity. Earnings per share estimates may be subject to
fluctuations as a result of several factors, including any gains or
losses associated with disposition activity. By definition, FFO and
Company FFO do not include real estate-related depreciation and
amortization, provisions for impairment, or gains or losses
associated with property disposition activities. This guidance is a
forward-looking statement and is subject to the risks and other
factors described elsewhere in this release and in the Company’s
annual and quarterly periodic reports filed with the Securities and
Exchange Commission.
Investor Conference Call
On Tuesday, November 3, 2015, the Company will host a conference
call at 8:00 a.m. Central (9:00 a.m. Eastern). The conference call
will be accessible by telephone and through the Internet.
Interested parties can access the call by dialing 877.845.1018
(international 707.287.9345). A live webcast of the conference call
will be available in listen-only mode in the Investors section at
www.ggp.com. Interested parties should
access the conference call or website 10 minutes prior to the
beginning of the call in order to register. For those unable to
listen to the call live, a replay will be available after the
conference call event. To access the replay, dial 855.859.2056
(international 404.537.3406) conference ID 43715350.
Supplemental Information
The Company has prepared a supplemental information report
available on www.ggp.com in the
Investors section. This information also has been furnished with
the Securities and Exchange Commission as an exhibit on Form
8-K.
Forward-Looking
Statements
Certain statements made in this press release may be deemed
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Although the Company
believes the expectations reflected in any forward-looking
statement are based on reasonable assumption, it can give no
assurance that its expectations will be attained, and it is
possible that actual results may differ materially from those
indicated by these forward-looking statements due to a variety of
risks, uncertainties and other factors. Such factors include, but
are not limited to, the Company’s ability to refinance, extend,
restructure or repay near and intermediate term debt, its
indebtedness, its ability to raise capital through equity
issuances, asset sales or the incurrence of new debt, retail and
credit market conditions, impairments, its liquidity demands, and
economic conditions. The Company discusses these and other risks
and uncertainties in its annual and quarterly periodic reports
filed with the Securities and Exchange Commission. The Company may
update that discussion in its periodic reports, but otherwise takes
no duty or obligation to update or revise these forward-looking
statements, whether as a result of new information, future
developments, or otherwise.
Investors and others should note that we post our current
Investor Presentation on the Investors page of our website at
www.ggp.com. From time to time, we update that Investor
Presentation and when we do, it will be posted on the Investors
page of our website at ggp.com. It is possible that the updates
could include information deemed to be material information.
Therefore, we encourage investors, the media and others interested
in our company to review the information we post on the Investors
page of our website at www.ggp.com from time to time.
General Growth Properties,
Inc.
General Growth Properties, Inc. is an S&P 500 company
focused exclusively on owning, managing, leasing and redeveloping
high-quality retail properties throughout the United States. GGP is
headquartered in Chicago, Illinois, and publicly traded on the NYSE
under the symbol GGP.
Non-GAAP Supplemental Financial Measures and
Definitions
Net Operating Income (“NOI”) and Company NOI
The Company defines NOI as income from property operations after
operating expenses have been deducted, but prior to deducting
financing, administrative and income tax expenses. NOI excludes
reductions in ownership as a result of sales or other transactions
and has been reflected on a proportionate basis (at the Company’s
ownership share). Other REITs may use different methodologies for
calculating NOI, and accordingly, the Company’s NOI may not be
comparable to other REITs. The Company considers NOI a helpful
supplemental measure of its operating performance because it is a
direct measure of the actual results of our properties. Because NOI
excludes reductions in ownership as a result of sales or other
transactions, general and administrative expenses, interest
expense, retail investment property impairment or non-recoverable
development costs, depreciation and amortization, gains and losses
from property dispositions, allocations to noncontrolling
interests, provision for income taxes, discontinued operations,
preferred stock dividends, and extraordinary items, it provides a
performance measure that, when compared year over year, reflects
the revenues and expenses directly associated with owning and
operating commercial real estate properties and the impact on
operations from trends in occupancy rates, rental rates and
operating costs.
The Company also considers Company NOI to be a helpful
supplemental measure of its operating performance because it
excludes from NOI certain non-cash and non-comparable items such as
straight-line rent and intangible asset and liability amortization,
which are a result of our emergence, acquisition accounting and
other capital contribution or restructuring events. However, due to
the exclusions noted, Company NOI should only be used as an
alternative measure of the Company’s financial performance. We
present Company NOI and Company FFO (as defined below); as we
believe certain investors and other users of our financial
information use these measures of the Company’s historical
operating performance.
Earnings Before Interest Expense, Income Tax, Depreciation,
and Amortization ("EBITDA") and Company EBITDA
The Company defines EBITDA as NOI less certain property
management and administrative expenses, net of management fees and
other operational items. EBITDA is a commonly used measure of
performance in many industries, but may not be comparable to
measures calculated by other companies. Management believes EBITDA
provides useful information to investors regarding our results of
operations because it helps us and our investors evaluate the
ongoing operating performance of our properties after removing the
impact of our capital structure (primarily interest expense) and
our asset base (primarily depreciation and amortization).
Management also believes the use of EBITDA facilitates comparisons
between us and other equity REITs, retail property owners who are
not REITs and other capital-intensive companies. Management uses
EBITDA to evaluate property-level results and as one measure in
determining the value of acquisitions and dispositions and, like
FFO (discussed below), it is widely used by management in the
annual budget process and for compensation programs.
The Company also considers Company EBITDA to be a helpful
supplemental measure of its operating performance because it
excludes from EBITDA certain non-cash and non-comparable items such
as straight-line rent and intangible asset and liability
amortization, which are a result of our emergence, acquisition
accounting and other capital contribution or restructuring events.
However, due to the exclusions noted, Company EBITDA should only be
used as an alternative measure of the Company's financial
performance.
Funds From Operations (“FFO”) and Company FFO
The Company determines FFO based upon the definition set forth
by National Association of Real Estate Investment Trusts
(“NAREIT”). The Company determines FFO to be its share of
consolidated net income (loss) computed in accordance with GAAP,
excluding real estate related depreciation and amortization,
excluding gains and losses from extraordinary items, excluding
cumulative effects of accounting changes, excluding gains and
losses from the sales of, or any impairment charges related to,
previously depreciated operating properties, plus the allocable
portion of FFO of unconsolidated joint ventures based upon the
Company’s economic ownership interest, and all determined on a
consistent basis in accordance with GAAP. As with the Company’s
presentation of NOI, FFO has been reflected on a proportionate
basis.
The Company considers FFO a helpful supplemental measure of the
operating performance for equity REITs and a complement to GAAP
measures because it is a recognized measure of performance by the
real estate industry. FFO facilitates an understanding of the
operating performance of the Company’s properties between periods
because it does not give effect to real estate depreciation and
amortization since these amounts are computed to allocate the cost
of a property over its useful life. Since values for
well-maintained real estate assets have historically increased or
decreased based upon prevailing market conditions, the Company
believes that FFO provides investors with a clearer view of the
Company’s operating performance.
As with the Company’s presentation of Company NOI, the Company
also considers Company FFO to be a helpful supplemental measure of
the operating performance for equity REITs because it excludes from
FFO certain items that are non-cash and certain non-comparable
items such as Company NOI adjustments, and FFO items such as
mark-to-market adjustments on debt and gains on the extinguishment
of debt,, and interest expense on debt repaid or settled all which
are a result of the Company’s acquisition accounting and other
capital contribution or restructuring events.
Reconciliation of Non-GAAP Financial Measures to GAAP
Financial Measures
The Company presents NOI and FFO as they are financial measures
widely used in the REIT industry. In order to provide a better
understanding of the relationship between the Company’s non-GAAP
financial measures of NOI, Company NOI, FFO and Company FFO,
reconciliations have been provided as follows: a reconciliation of
GAAP operating income to NOI and Company NOI and a reconciliation
of net income attributable to GGP to FFO and Company FFO. None of
the Company’s non-GAAP financial measures represents cash flow from
operating activities in accordance with GAAP, none should be
considered as an alternative to GAAP net income (loss) attributable
to GGP and none are necessarily indicative of cash available to
fund cash needs. In addition, the Company has presented such
financial measures on a consolidated and unconsolidated basis (at
the Company’s ownership share) as the Company believes that given
the significance of the Company’s operations that are owned through
investments accounted for on the equity method of accounting, the
detail of the operations of the Company’s unconsolidated properties
provides important insights into the income and FFO produced by
such investments for the Company as a whole.
FINANCIAL OVERVIEW
Consolidated Statements of Operations (In thousands, except
per share)
Three Months Ended Nine Months
Ended September 30, 2015 September 30,
2014 September 30, 2015 September 30, 2014
Revenues: Minimum rents $ 358,716 $ 396,285 $
1,094,384 $ 1,170,547 Tenant recoveries 172,515 186,066 518,040
552,596 Overage rents 6,455 9,277 18,755 24,486 Management fees and
other corporate revenues 19,496 17,355 65,313 51,759 Other
28,142 18,775 62,956
63,149
Total revenues 585,324
627,758 1,759,448
1,862,537 Expenses: Real estate taxes 57,942
57,430 170,425 172,686 Property maintenance costs 11,707 13,394
44,491 48,952 Marketing 4,273 4,624 12,849 15,926 Other property
operating costs 79,265 84,581 227,874 251,646 Provision for
doubtful accounts 1,622 355 6,199 5,211 Property management and
other costs 38,685 34,428 121,847 119,391 General and
administrative 12,627 12,778 37,395 52,609 Depreciation and
amortization 154,228 182,237
483,026 528,928
Total expenses
360,349 389,827
1,104,106 1,195,349 Operating
income 224,975 237,931
655,342 667,188
Interest and dividend income 13,232 8,536 34,896 19,801 Interest
expense (144,891 ) (174,109 ) (460,289 ) (528,273 ) Loss on foreign
currency (25,092 ) (15,972 ) (46,540 ) (7,017 ) Gain from changes
in control of investment properties and other 13,399
- 622,412 -
Income
before income taxes, equity in income of Unconsolidated Real Estate
Affiliates, discontinued operations, and allocation to
noncontrolling interests 81,623 56,386
805,821 151,699 Benefit from (provision for) income
taxes 17,996 4,800 29,082 (2,836 ) Equity in income of
Unconsolidated Real Estate Affiliates 16,584 7,391 41,115 33,868
Unconsolidated Real Estate Affiliates - gain on investment
11,163 - 320,950 -
Income from continuing operations 127,366
68,577 1,196,968 182,731 Discontinued
operations
- 8,822 -
203,649
Net income 127,366
77,399 1,196,968 386,380 Allocation to
noncontrolling interests (3,514 ) (2,791 )
(16,447 ) (10,008 )
Net income attributable to GGP
123,852 74,608 1,180,521 376,372
Preferred stock dividends (3,984 ) (3,984 )
(11,952 ) (11,952 )
Net income attributable to common
stockholders $ 119,868 $
70,624 $ 1,168,569 $
364,420 Basic Earnings Per Share: Continuing
operations $ 0.14 $ 0.07 $ 1.32 $ 0.18 Discontinued operations
- 0.01 - 0.23
Total basic earnings per share $ 0.14
$ 0.08 $ 1.32
$ 0.41 Diluted Earnings Per Share:
Continuing operations $ 0.13 $ 0.06 $ 1.23 $ 0.18 Discontinued
operations - 0.01 -
0.21
Total diluted earnings per share $
0.13 $ 0.07 $ 1.23
$ 0.39
FINANCIAL OVERVIEW Consolidated Balance Sheets (In
thousands)
September 30, 2015 December 31,
2014 Assets: Investment in real estate: Land $ 3,638,774
$ 4,244,607 Buildings and equipment 16,318,055 18,028,844 Less
accumulated depreciation (2,375,762 ) (2,280,845 ) Construction in
progress 497,181 703,859 Net property
and equipment 18,078,248 20,696,465 Investment in and loans to/from
Unconsolidated Real Estate Affiliates 3,490,157
2,604,762 Net investment in real estate 21,568,405
23,301,227 Cash and cash equivalents 160,670 372,471 Accounts and
notes receivable, net 881,564 663,768 Deferred expenses, net
169,673 184,491 Prepaid expenses and other assets 1,009,483
813,777
Total assets $
23,789,795 $ 25,335,734
Liabilities: Mortgages, notes and loans payable $ 14,015,550
$ 15,998,289 Investment in Unconsolidated Real Estate Affiliates
37,610 35,598 Accounts payable and accrued expenses 800,248 934,897
Dividend payable 166,115 154,694 Deferred tax liabilities - 21,240
Junior Subordinated Notes 206,200 206,200
Total liabilities 15,225,723
17,350,918 Redeemable noncontrolling
interests: Preferred 154,566 164,031 Common 123,812
135,265
Total redeemable noncontrolling
interests 278,378 299,296
Equity: Preferred stock 242,042 242,042 Stockholders'
Equity 8,006,313 7,363,877 Noncontrolling interests in consolidated
real estate affiliates 26,935 79,601 Noncontrolling interests
related to Long-Term Incentive Plan Common Units 10,404
-
Total equity 8,285,694
7,685,520 Total liabilities,
redeemable noncontrolling interests and equity $
23,789,795 $ 25,335,734
PROPORTIONATE
FINANCIAL STATEMENTS Company NOI, EBITDA and FFO For the
Three Months Ended September 30, 2015 and 2014 (In thousands)
Three Months Ended
September 30, 2015 Three Months Ended September 30, 2014
Consolidated Properties Noncontrolling
Interests Unconsolidated Properties
Sold Interests Proportionate
Adjustments Company Consolidated
Properties Noncontrolling Interests
Unconsolidated Properties Sold Interests
Proportionate Adjustments
Company
Property revenues: Minimum rents $ 358,716 $
(4,145 ) $ 135,588 $ (241 ) $ 489,918 $ 6,732 $ 496,650 $ 396,285 $
(4,112 ) $ 95,929 $ (15,212 ) $ 472,890 $ 2,507 $ 475,397 Tenant
recoveries 172,515 (1,724 ) 57,912 (73 ) 228,630 - 228,630 186,066
(1,672 ) 43,638 (7,580 ) 220,452 - 220,452 Overage rents 6,455 (110
) 3,940 - 10,285 - 10,285 9,277 (103 ) 3,097 (1,063 ) 11,208 -
11,208 Other revenue 27,288 (229 )
5,398 (1 ) 32,456
- 32,456
18,775 (323 ) 3,538
(1,205 ) 20,785 -
20,785 Total property revenues
564,974 (6,208 ) 202,838
(315 ) 761,289
6,732 768,021 610,403
(6,210 ) 146,202
(25,060 ) 725,335 2,507
727,842 Property operating expenses: Real
estate taxes 57,942 (834 ) 17,457 (11 ) 74,554 (1,490 ) 73,064
57,430 (669 ) 13,431 (1,463 ) 68,729 (1,490 ) 67,239 Property
maintenance costs 11,707 (100 ) 4,743 (61 ) 16,289 - 16,289 13,394
(83 ) 4,115 (668 ) 16,758 - 16,758 Marketing 4,273 (65 ) 2,314 -
6,522 - 6,522 4,624 (47 ) 1,439 (379 ) 5,637 - 5,637 Other property
operating costs 79,265 (778 ) 27,333 2 105,822 (1,018 ) 104,804
84,581 (739 ) 22,141 (2,693 ) 103,290 (1,028 ) 102,262 Provision
for doubtful accounts 1,622 (9 )
136 - 1,749
- 1,749 355
(24 ) 486 (10 )
807 - 807
Total property operating expenses 154,809
(1,786 ) 51,983
(70 ) 204,936 (2,508 )
202,428 160,384 (1,562 )
41,612 (5,213 )
195,221 (2,518 ) 192,703
NOI $ 410,165 $
(4,422 ) $ 150,855
$ (245 ) $ 556,353
$ 9,240 $ 565,593
$ 450,019 $ (4,648
) $ 104,590 $
(19,847 ) $ 530,114
$ 5,025 $ 535,139
Management fees and other corporate revenues 19,496 - - -
19,496 - 19,496 17,355 - 1 - 17,356 - 17,356 Property management
and other costs (38,685 ) 178 (7,942 ) 19 (46,430 ) - (46,430 )
(34,428 ) 167 (6,830 ) 67 (41,024 ) - (41,024 ) General and
administrative (12,627 ) -
(448 ) - (13,075 )
- (13,075 ) (12,778 )
- (1,059 ) -
(13,837 ) -
(13,837 )
EBITDA $ 378,349
$ (4,244 ) $ 142,465
$ (226 ) $
516,344 $ 9,240
$ 525,584 $ 420,168
$ (4,481 ) $
96,702 $ (19,780 )
$ 492,609 $ 5,025
$ 497,634 Depreciation on non-income
producing assets (2,836 ) - - - (2,836 ) - (2,836 ) (2,528 ) - - -
(2,528 ) - (2,528 ) Interest and dividend income 13,232 387 667 -
14,286 (205 ) 14,081 8,536 386 536 - 9,458 (205 ) 9,253 Preferred
unit distributions (2,228 ) - - - (2,228 ) - (2,228 ) (2,232 ) - -
- (2,232 ) - (2,232 ) Preferred stock dividends (3,984 ) - - -
(3,984 ) - (3,984 ) (3,984 ) - - - (3,984 ) - (3,984 ) Interest
expense: - Mark-to-market adjustments on debt 18 - 280 (237 ) 61
(61 ) - (386 ) (98 ) 381 (19 ) (122 ) 122 - Write-off of
mark-to-market adjustments on extinguished debt (102 ) - - - (102 )
102 - - - - - - - - Interest on existing debt (144,807 ) 1,660
(54,896 ) 36 (198,007 ) - (198,007 ) (173,723 ) 1,488 (39,967 )
6,311 (205,891 ) - (205,891 ) Loss on foreign currency (25,092 ) -
- - (25,092 ) 25,092 - (15,972 ) - - - (15,972 ) 15,972 - Provision
for income taxes 17,996 16 (108 ) - 17,904 (9,924 ) 7,980 4,800 16
(149 ) - 4,667 (6,317 ) (1,650 ) FFO from sold interests -
- -
427 427 (270 )
157 3,466 -
272 13,488 17,226
422 17,648 230,546
(2,181 ) 88,408 - 316,773 23,974 340,747 238,145 (2,689 ) 57,775 -
293,231 15,019 308,250 Equity in FFO of Unconsolidated Properties
and Noncontrolling Interests 86,227
2,181 (88,408 ) -
- - -
55,086 2,689
(57,775 ) - -
- -
FFO $
316,773 $ 0
$ 0 $ 0
$ 316,773 $ 23,974
$ 340,747 $ 293,231
$ 0 $ 0
$ 0 $
293,231 $ 15,019
$ 308,250 Company FFO per diluted
share $ 0.36 $ 0.33
PROPORTIONATE FINANCIAL
STATEMENTS Company NOI, EBITDA and FFO For the Nine Months
Ended September 30, 2015 and 2014 (In thousands)
Nine Months Ended September 30,
2015 Nine Months Ended September 30, 2014
Consolidated Properties Noncontrolling
Interests Unconsolidated Properties
Sold Interests Proportionate
Adjustments Company Consolidated
Properties Noncontrolling Interests
Unconsolidated Properties Sold Interests
Proportionate Adjustments
Company
Property revenues: Minimum rents $ 1,094,384 $
(12,342 ) $ 371,779 $ (10,283 ) $ 1,443,538 $ 27,766 $ 1,471,304 $
1,170,547 $ (12,343 ) $ 284,791 $ (47,666 ) $ 1,395,329 $ 23,064 $
1,418,393 Tenant recoveries 518,040 (5,210 ) 163,537 (5,265 )
671,102 - 671,102 552,596 (5,015 ) 128,357 (21,689 ) 654,249 -
654,249 Overage rents 18,755 (229 ) 9,847 (452 ) 27,921 - 27,921
24,486 (219 ) 7,413 (2,748 ) 28,932 - 28,932 Other revenue
62,093 (772 ) 17,404
(364 ) 78,361 -
78,361 63,193
(823 ) 10,057 (3,834 )
68,593 -
68,593 Total property revenues 1,693,272
(18,553 ) 562,567
(16,364 ) 2,220,922 27,766
2,248,688 1,810,822
(18,400 ) 430,618
(75,937 ) 2,147,103 23,064
2,170,167 Property operating expenses:
Real estate taxes 170,425 (2,469 ) 48,668 (1,174 ) 215,450 (4,469 )
210,981 172,686 (1,989 ) 40,111 (4,251 ) 206,557 (4,469 ) 202,088
Property maintenance costs 44,491 (327 ) 16,039 (493 ) 59,710 -
59,710 48,952 (308 ) 13,640 (2,090 ) 60,194 - 60,194 Marketing
12,849 (158 ) 6,472 (339 ) 18,824 - 18,824 15,926 (169 ) 4,840
(1,252 ) 19,345 - 19,345 Other property operating costs 227,874
(2,240 ) 76,587 (1,768 ) 300,453 (3,056 ) 297,397 251,646 (2,250 )
62,435 (10,238 ) 301,593 (3,078 ) 298,515 Provision for doubtful
accounts 6,199 (38 )
2,151 (50 ) 8,262
- 8,262 5,211
(60 ) 994 (119 )
6,026 -
6,026 Total property operating expenses 461,838
(5,232 ) 149,917
(3,824 ) 602,699 (7,525 )
595,174 494,421
(4,776 ) 122,020 (17,950 )
593,715 (7,547 )
586,168
NOI $ 1,231,434
$ (13,321 ) $ 412,650
$ (12,540 ) $
1,618,223 $ 35,291
$ 1,653,514 $ 1,316,401
$ (13,624 ) $
308,598 $ (57,987 )
$ 1,553,388 $
30,611 $ 1,583,999
Management fees and other corporate revenues 65,313 - - - 65,313 -
65,313 51,759 - 1 - 51,760 - 51,760 Property management and other
costs (121,847 ) 531 (23,354 ) 170 (144,500 ) - (144,500 ) (119,391
) 489 (20,677 ) 230 (139,349 ) - (139,349 ) General and
administrative (37,395 ) -
(7,095 ) - (44,490 )
- (44,490 ) (52,609 )
2 (3,888 ) -
(56,495 ) 17,854
(38,641 )
EBITDA $ 1,137,505
$ (12,790 ) $
382,201 $ (12,370 )
$ 1,494,546 $
35,291 $ 1,529,837
$ 1,196,160 $ (13,133
) $ 284,034 $
(57,757 ) $ 1,409,304
$ 48,465 $
1,457,769 Depreciation on non-income producing assets
(8,419 ) - - - (8,419 ) - (8,419 ) (9,055 ) - - - (9,055 ) - (9,055
) Interest and dividend income 34,896 1,160 1,961 - 38,017 (614 )
37,403 19,801 1,159 1,569 - 22,529 (279 ) 22,250 Preferred unit
distributions (6,692 ) - - - (6,692 ) - (6,692 ) (6,697 ) - - -
(6,697 ) - (6,697 ) Preferred stock dividends (11,952 ) - - -
(11,952 ) - (11,952 ) (11,952 ) - - - (11,952 ) - (11,952 )
Interest expense: - - Mark-to-market adjustments on debt 149 (101 )
1,158 (253 ) 953 (953 ) - (2,604 ) (292 ) 1,126 (60 ) (1,830 )
1,830 - Write-off of mark-to-market adjustments on extinguished
debt (13,454 ) (136 ) - - (13,590 ) 13,590 - (9,831 ) - - - (9,831
) 9,831 - Interest on existing debt (446,984 ) 4,771 (154,789 )
5,284 (591,718 ) - (591,718 ) (515,838 ) 4,502 (111,153 ) 16,066
(606,423 ) - (606,423 ) Loss on foreign currency (46,540 ) - - -
(46,540 ) 46,540 - (7,017 ) - - - (7,017 ) 7,017 - Provision for
income taxes 29,082 36 (272 ) - 28,846 (17,167 ) 11,679 (2,836 ) 54
(293 ) - (3,075 ) (2,775 ) (5,850 ) FFO from sold interests
- - -
7,339 7,339 1,162
8,501 81,899
- 737 41,751
124,387 (66,201 )
58,186 667,591 (7,060 ) 230,259 - 890,790 77,849
968,639 732,030 (7,710 ) 176,020 - 900,340 (2,112 ) 898,228 Equity
in FFO of Unconsolidated Properties and Noncontrolling Interests
223,199 7,060
(230,259 ) - -
- - 168,310
7,710 (176,020 ) -
- - -
FFO $ 890,790 $
0 $ 0 $
0 $ 890,790
$ 77,849 $ 968,639
$ 900,340 $ 0
$ 0 $ 0
$ 900,340
(2,112
)
$ 898,228 Company FFO per
diluted share $ 1.01 $ 0.95
PROPORTIONATE FINANCIAL STATEMENTS
Reconciliation of Non-GAAP to GAAP Financial Measures (In
thousands)
Three Months Ended
Nine Months Ended September 30, 2015
September 30, 2014 September 30, 2015
September 30, 2014 Reconciliation of
Company NOI to GAAP Operating Income Company NOI $565,593
$535,139 $1,653,514 $1,583,999 Adjustments for minimum
rents, real estate taxes and other property operating costs (9,240)
(5,025) (35,291) (30,611) Proportionate NOI 556,353
530,114 1,618,223 1,553,388 Unconsolidated Properties (150,855)
(104,590) (412,650) (308,598) NOI of sold interests 245 19,847
12,540 57,987 Noncontrolling interest in NOI of Consolidated
Properties 4,422 4,648 13,321 13,624 Consolidated
Properties 410,165 450,019 1,231,434 1,316,401 Management fees and
other corporate revenues 19,496 17,355 65,313 51,759 Property
management and other costs (38,685) (34,428) (121,847) (119,391)
General and administrative (12,627) (12,778) (37,395) (52,609)
Depreciation and amortization (154,228) (182,237) (483,026)
(528,928) Gain (loss) on sales of investment properties 854
- 863 (44)
Operating income $224,975
$237,931 $655,342 $667,188
Reconciliation of Company EBITDA to GAAP Net Income Attributable
to GGP Company EBITDA $525,584 $497,634 $1,529,837 $1,457,769
Adjustments for minimum rents, real estate taxes, other
property operating costs, and general and administrative (9,240)
(5,025) (35,291) (48,465) Proportionate EBITDA
516,344 492,609 1,494,546 1,409,304 Unconsolidated Properties
(142,465) (96,702) (382,201) (284,034) EBITDA of sold interests 226
19,780 12,370 57,757 Noncontrolling interest in EBITDA of
Consolidated Properties 4,244 4,481 12,790 13,133
Consolidated Properties 378,349 420,168 1,137,505 1,196,160
Depreciation and amortization (154,228) (182,237) (483,026)
(528,928) Interest income 13,232 8,536 34,896 19,801 Interest
expense (144,891) (174,109) (460,289) (528,273) Loss on foreign
currency (25,092) (15,972) (46,540) (7,017) Benefit from (provision
for) income taxes 17,996 4,800 29,082 (2,836) Equity in income of
Unconsolidated Real Estate Affiliates 16,584 7,391 41,115 33,868
Unconsolidated Real Estate Affiliates - gain on investment 11,163 -
320,950 - Discontinued operations - 8,822 - 203,649 Gains from
changes in control of investment properties and other 13,399 -
622,412 - Gain (loss) on sales of investment properties 854 - 863
(44) Allocation to noncontrolling interests (3,514) (2,791)
(16,447) (10,008)
Net income attributable to GGP
$123,852 $74,608 $1,180,521
$376,372 Reconciliation of Company FFO to GAAP Net
Income Attributable to GGP Company FFO $340,747 $308,250
$968,639 $898,228 Adjustments for minimum rents, property
operating expenses, general and administrative, market rate
adjustments, debt extinguishment, income taxes, and FFO from
discontinued operations (23,974) (15,019) (77,849)
2,112 Proportionate FFO 316,773 293,231 890,790 900,340
Depreciation and amortization of capitalized real estate costs
(220,039) (230,036) (660,604) (663,434) Gain from changes in
control of investment properties and other 13,399 - 622,412 -
Preferred stock dividends 3,984 3,984 11,952 11,952 (Loss) gain on
sales of investment properties (2,359) 7,605 (2,352) 131,321
Unconsolidated Real Estate Affiliates - gain on investment 11,163 -
320,950 - Noncontrolling interests in depreciation of Consolidated
Properties 1,948 2,554 5,905 6,484 Redeemable noncontrolling
interests (1,017) (412) (8,532) (2,049) Depreciation and
amortization of discontinued operations - (2,318) -
(8,242)
Net income attributable to GGP $123,852
$74,608 $1,180,521 $376,372
Reconciliation of Equity in NOI of Unconsolidated
Properties to GAAP Equity in Income of Unconsolidated Real Estate
Affiliates Equity in Unconsolidated Properties: NOI $150,855
$104,590 $412,650 $308,598 Net property management fees and costs
(7,942) (6,829) (23,354) (20,676) General and administrative
and provisions for impairment (448) (1,059) (7,095)
(3,888) EBITDA 142,465 96,702 382,201 284,034 Net interest expense
(53,949) (39,050) (151,670) (108,458) Provision for income taxes
(108) (149) (272) (293) FFO of discontinued Unconsolidated
Properties - 272 - 737 FFO of Unconsolidated
Properties 88,408 57,775 230,259 176,020 Depreciation and
amortization of capitalized real estate costs (68,647) (50,398)
(185,998) (143,794) Other, including (loss) gain on sales of
investment properties (3,177) 14 (3,146) 1,642
Equity in income of Unconsolidated Real Estate Affiliates
$16,584 $7,391 $41,115
$33,868
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version on businesswire.com: http://www.businesswire.com/news/home/20151102006750/en/
General Growth Properties, Inc.Kevin BerryVP Investor
Relations(312) 960-5529kevin.berry@ggp.com
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