General Growth Properties, Inc. (the “Company” or “GGP”) (NYSE:
GGP) today reported results for the three and six months ended June
30, 2016.
Highlights
- Company Same Store Net Operating Income
(“Company Same Store NOI”) increased 4.0% and 4.6% from the prior
year period for the three and six months ended June 30, 2016,
respectively.
- Company earnings before interest,
taxes, depreciation and amortization (“Company EBITDA”) increased
6.5% and 13.3% from the prior year period for the three and six
months ended June 30, 2016, respectively.
- Same Store leased percentage was 96.1%
at quarter end.
- Initial rental rates for signed leases
that have commenced in the trailing 12 months on a suite-to-suite
basis increased 13.7% when compared to the rental rate for expiring
leases.
- Tenant sales (all less anchors)
increased 2.8% on a trailing 12-month basis.1
- In the second quarter, the Company sold
its interest in an urban retail property and an office building;
received proceeds of approximately $150 million and generated gains
of approximately $58 million.
- Subsequent to quarter end, the Company
sold a 50% joint venture interest in a Class A mall for a gross
valuation of approximately $2.5 billion; received proceeds of
approximately $830 million.
- Subsequent to quarter end, the Company
sold two Class B malls; received proceeds of approximately $15
million.
- The Company declared a third quarter
common stock dividend, an increase of 11% over the prior year.
GAAP Operating Results
For the three months ended June 30, 2016, net income
attributable to GGP was $186 million, or $0.19 per diluted share,
as compared to $422 million, or $0.44 per diluted share, in the
prior year period. For the six months ended June 30, 2016, net
income attributable to GGP was $378 million, or $0.39 per diluted
share, as compared to $1.1 billion, or $1.10 per diluted share, in
the prior year period. Net income attributable to GGP in the prior
year for the three and six months was impacted primarily by the
gain related to the sale of a partial interest in a Class A
mall.
Company Operating
Results
For the three months ended June 30, 2016, Company Funds From
Operations (“Company FFO”) was $340 million, or $0.35 per diluted
share, as compared to $319 million, or $0.33 per diluted share, in
the prior year period, an increase of 6.8%. For the six months
ended June 30, 2016, Company FFO was $723 million, or $0.75 per
diluted share, as compared to $628 million, or $0.65 per diluted
share, in the prior year period, an increase of 15.4%.
1 Excludes Christiana Mall due to unusual
changes in sales productivity.
Investment Activities
Dispositions
In the second quarter, the Company sold its 49.8% interest in
One Stockton in San Francisco’s Union Square for approximately $50
million; received proceeds from repayment of a partner loan and
equity of approximately $42 million and generated a gain of
approximately $23 million over the two year hold period.
The Company sold an office building at Pioneer Place in
Portland, Oregon for approximately $122 million; received proceeds
of approximately $116 million and generated a gain of approximately
$35 million.
Subsequent to quarter end, the Company sold a 50% interest in
Fashion Show in Las Vegas, Nevada for approximately $1.25 billion;
received proceeds of approximately $830 million.
Subsequent to quarter end, the Company sold its interests in
Newgate Mall in Salt Lake City, Utah, and Rogue Valley in Portland,
Oregon for approximately $131 million; received proceeds of
approximately $15 million.
Acquisitions
The Company acquired a 50% interest in 218 W 57th Street in New
York City for approximately $41 million.
Development
The Company’s development and redevelopment activities total
$1.1 billion, of which approximately $0.5 billion is under
construction and $0.6 billion is in the pipeline.
Financing Activities
Subsequent to quarter end, the Company repaid the mortgage loan
on the Mall of Louisiana with debt of approximately $202 million
and an interest rate of 5.8%. In the third quarter, the Company
expects to repay the mortgage loan on Apache Mall with debt of
approximately $93 million and an interest rate of 4.3%.
Subsequent to quarter end, the Company repaid $90 million that
was outstanding on the credit facility.
Dividends
On August 1, 2016, the Company’s Board of Directors declared a
third quarter common stock dividend of $0.20 per share payable on
October 31, 2016, to stockholders of record on October 14, 2016.
This represents an increase of $0.02 per share or 11% growth over
the dividend declared for the third quarter of 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 October 3, 2016, to stockholders of record on
September 15, 2016.
Guidance
The Company revised its Company FFO guidance for the year ending
December 31, 2016, which includes an increase of $0.01 related to
operations and $0.02 dilution from the transactions noted
above.
For the year ending
For the three months ending
Earnings Guidance December 31, 2016
September 30, 2016 Net income
attributable to GGP $0.70- $0.74 $0.10 - $0.12 Preferred stock
dividends (0.02 ) - Net income attributable to common stockholders
$0.68 - $0.72 $0.10 - $0.12 Gain from change in control of
investment properties and other, provision for impairment and
redeemable noncontrolling interests (0.12 ) - Depreciation,
including share of JVs 0.92 0.23 NAREIT FFO $1.48 - $1.52
$0.33 - $0.35 Adjustments 1 0.03 0.01 Company FFO per
diluted share $1.51 - $1.55 $0.34 - $0.36
- Includes impact of straight-line rent,
above/below market rent, loss on foreign currency and the related
provision for income taxes, and other items. For discussion on the
purpose and use of these adjustments please see the Non-GAAP
Supplemental Financial Measures and Definitions section on page
ER7.
The guidance estimate reflects management’s view of current and
future market conditions, including assumptions with respect to
Company Same Store NOI and Operating Income 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
future gains or losses, or the impact on operating results from
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 exclude 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, August 2, 2016, 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 25606603.
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 assumptions, 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.investor.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
Proportionate or At Share Basis
The following Non-GAAP supplemental financial measures are all
presented on a proportionate basis. The proportionate financial
information presents the consolidated and unconsolidated properties
at the Company’s ownership percentage or “at share”. This form of
presentation offers insights into the financial performance and
condition of the Company as a whole, given the significance of the
Company’s unconsolidated property operations that are owned through
investments accounted for under GAAP using the equity method.
The proportionate financial information is not, and is not
intended to be, a presentation in accordance with GAAP. The
non-GAAP proportionate financial information reflects our
proportionate economic ownership of each asset in our property
portfolio that we do not wholly own. The amounts shown in the
column labeled "Consolidated" reflect the amounts contained in the
Company's consolidated financial statements as filed with the SEC
in the schedules of this release and the supplemental. The amounts
in the column labeled "Unconsolidated Properties" were derived on a
property-by-property basis by including our share of each line item
from each individual property. This provides visibility into our
share of the operations of the joint ventures. A similar procedure
was performed for the amounts in the column labeled "Noncontrolling
Interests," which represents the share of consolidated assets
attributable to noncontrolling interests.
We do not control the unconsolidated joint ventures and the
presentations of the assets and liabilities and revenues and
expenses do not represent our legal claim to such items. The
operating agreements of the unconsolidated joint ventures generally
provide that partners may receive cash distributions (1) to the
extent there is available cash from operations, (2) upon a capital
event, such as a refinancing or sale or (3) upon liquidation of the
venture. The amount of cash each partner receives is based upon
specific provisions of each operating agreement and varies
depending on factors including the amount of capital contributed by
each partner and whether any contributions are entitled to priority
distributions. Upon liquidation of the joint venture and after all
liabilities, priority distributions and initial equity
contributions have been repaid, the partners generally would be
entitled to any residual cash remaining based on their respective
legal ownership percentages.
We provide Non-GAAP proportionate financial information because
we believe it assists investors and analysts in estimating our
economic interest in our unconsolidated joint ventures when read in
conjunction with the Company's reported results under GAAP. Other
companies in our industry may calculate their proportionate
interest differently than we do, limiting the usefulness as a
comparative measure. Because of these limitations, the Non-GAAP
proportionate financial information should not be considered in
isolation or as a substitute for our financial statements as
reported under GAAP.
Net Operating Income (“NOI”), Company NOI and Company Same
Store NOI
The Company defines NOI as proportionate income from operations
and after operating expenses have been deducted, but prior to
deducting financing, property management, administrative and income
tax expenses. NOI excludes management fees and other corporate
revenue and reductions in ownership as a result of sales or other
transactions. 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,
management fees and other corporate revenue, general and
administrative and property management 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, 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 items such as straight-line rent, and
amortization of intangibles resulting from 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, Company EBITDA 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.
Adjustments to NOI, EBITDA and FFO, including debt
extinguishment costs, market rate adjustments on debt,
straight-line rent, intangible asset and liability amortization,
real estate tax stabilization, gains and losses on foreign currency
and other items that are not a result of normal operations, assist
management and investors in distinguishing whether increases or
decreases in revenues and/or expenses are due to growth or decline
of operations at the properties or from other factors. In addition,
the Company’s leases include step rents that increase over the term
of the lease to compensate the Company for anticipated increases in
market rentals over time. The Company’s leases do not include
significant front loading or back loading of payments or
significant rent-free periods. Therefore, we find it useful to
evaluate rent on a contractual basis as it allows for comparison of
existing rental rates to market rental rates. Management has
historically made these adjustments in evaluating our performance,
in our annual budget process and for our compensation programs.
The Company defines Company Same Store NOI as Company NOI
excluding periodic effects of acquisitions of new properties and
certain redevelopments (for the list of properties included in
Company Same Store NOI see the Property Schedule in our
Supplemental Information). We do not include an acquired property
in our Company Same Store NOI until the operating results for that
property have been included in our consolidated results for one
full calendar year. Properties that we sell are excluded from
Company NOI and Company Same Store NOI for all periods once the
transaction has closed.
The Company considers Company Same Store NOI a helpful
supplemental measure of its operating performance because it
assists management and investors in distinguishing whether
increases or decreases in revenues and/or expenses are due to
growth or decline of operations at comparable properties or from
other factors, such as the effect of acquisitions. For these
reasons, we believe that Company Same Store NOI, when combined with
GAAP operating income provides useful information to investors and
management.
Other REITs may use different methodologies for calculating,
NOI, Company NOI and Company Same Store NOI, and accordingly, the
Company’s Company Same Store NOI may not be comparable to other
REITs. As a result of the elimination of corporate-level costs and
expenses and depreciation and amortization, the Company Same Store
NOI we present does not represent our total revenues, expenses,
operating profit or net income and should not be used to evaluate
our performance as a whole. Management compensates for these
limitations by separately considering the impact of these excluded
items, to the extent they are material, to operating decisions or
assessments of our operating performance. Our consolidated GAAP
statements of operations include such amounts, all of which should
be considered by investors when evaluating our 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 corporate revenues. 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
Company EBITDA to evaluate property-level results and as one
measure in determining the value of acquisitions and dispositions
and, like FFO and Same Store NOI (discussed below), it is widely
used by management in the annual budget process and for
compensation programs. Please see adjustments discussion above for
the purpose and use of the adjustments included in Company
EBITDA.
EBITDA and Company EBITDA, as presented, may not be comparable
to similar measures calculated by other companies. This information
should not be considered as an alternative to net income, operating
profit, cash from operations or any other operating performance
measure calculated in accordance with GAAP.
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.
We calculate FFO in accordance with standards established by
NAREIT, which may not be comparable to measures calculated by other
companies who do not use the NAREIT definition of FFO or do not
calculate FFO in accordance with NAREIT guidance. In addition,
although FFO is a useful measure when comparing our results to
other REITs, it may not be helpful to investors when comparing us
to non-REITs. As with the presentation of Company NOI and Company
EBITDA, we also consider Company FFO, which is not in accordance
with NAREIT guidance and may not be comparable to measures
calculated by other REITs, to be a helpful supplemental measure of
our operating performance. Please see adjustments discussion above
for the purpose and use of the adjustments included in Company
FFO.
FFO and Company FFO do not represent cash flow from operations
as defined by GAAP, should not be considered as an alternative to
net income determined in accordance with GAAP as a measure of
operating performance, and is not an alternative to cash flows as a
measure of liquidity or indicative of funds available to fund our
cash needs. In addition, Company FFO per diluted share does not
measure, and should not be used as a measure of, amounts that
accrue directly to stockholders’ benefit.
Reconciliation of Non-GAAP Financial Measures to GAAP
Financial Measures
The Company presents NOI, EBITDA 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, EBITDA, Company
EBITDA, FFO and Company FFO, reconciliations have been provided as
follows: a reconciliation of GAAP operating income to Company NOI
and Company Same Store NOI, a reconciliation of GAAP net income
attributable to GGP to EBITDA and Company EBITDA, and a
reconciliation of GAAP 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 flow. In addition, the Company has presented
such financial measures on a consolidated and unconsolidated basis
(at the Company’s proportionate share) as the Company believes that
given the significance of the Company’s operations that are owned
through investments accounted for by 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.
GAAP FINANCIAL STATEMENTS
Consolidated Balance Sheets
(In thousands)
June 30, 2016
December 31, 2015 Assets: Investment in real estate:
Land $ 3,554,471 $ 3,596,354 Buildings and equipment 16,228,837
16,379,789 Less accumulated depreciation (2,605,947 ) (2,452,127 )
Construction in progress 311,757 308,903
Net property and equipment 17,489,118 17,832,919 Investment
in and loans to/from Unconsolidated Real Estate Affiliates
3,609,486 3,506,040 Net investment in real
estate 21,098,604 21,338,959 Cash and cash equivalents 226,283
356,895 Accounts and notes receivable, net 969,924 949,556 Deferred
expenses, net 214,182 214,578 Prepaid expenses and other assets
952,535 997,334 Assets held for disposition 131,956
216,233
Total assets $
23,593,484 $ 24,073,555
Liabilities: Mortgages, notes and loans payable $ 13,714,730
$ 14,216,160 Investment in Unconsolidated Real Estate Affiliates
39,160 38,488 Accounts payable and accrued expenses 682,925 784,493
Dividend payable 175,560 172,070 Deferred tax liabilities 1,642
1,289 Junior Subordinated Notes 206,200 206,200 Liabilities held
for disposition 114,544 58,934
Total
liabilities 14,934,761
15,477,634 Redeemable noncontrolling
interests: Preferred 168,083 157,903 Common 142,167
129,724
Total redeemable noncontrolling
interests 310,250 287,627
Equity: Preferred stock 242,042 242,042 Stockholders'
Equity 8,063,796 8,028,001 Noncontrolling interests in consolidated
real estate affiliates 20,448 24,712 Noncontrolling interests
related to long-term incentive plan common units 22,187
13,539
Total equity
8,348,473 8,308,294 Total
liabilities, redeemable noncontrolling interests and equity
$ 23,593,484 $ 24,073,555
GAAP FINANCIAL STATEMENTS
Consolidated Statements of Income
(In thousands, except per share)
Three Months Ended Six Months
Ended June 30, 2016 June 30, 2015 June
30, 2016 June 30, 2015 Revenues:
Minimum rents $ 363,412 $ 361,556 $ 734,544 $ 735,669 Tenant
recoveries 169,763 168,043 342,211 345,525 Overage rents 4,375
3,485 12,519 12,300 Management fees and other corporate revenues
18,917 26,731 52,659 45,817 Other 18,119
20,166 39,685 34,814
Total
revenues 574,586 579,981
1,181,618 1,174,125
Expenses: Real estate taxes 57,309 56,496 115,412
112,483 Property maintenance costs 11,955 12,903 29,438 32,784
Marketing 2,738 3,754 4,792 8,576 Other property operating costs
71,601 72,427 141,995 148,609 Provision for doubtful accounts 1,710
1,306 5,111 4,577 Provision for loan loss - - 36,069 - Property
management and other costs 38,282 40,369 69,027 83,162 General and
administrative 14,650 12,322 28,076 24,769 Provisions for
impairment 4,058 - 44,763 - Depreciation and amortization
156,248 152,849 316,919
328,797
Total expenses 358,551
352,426 791,602
743,757 Operating income 216,035
227,555 390,016
430,368 Interest and dividend income 13,335
12,843 29,393 21,664 Interest expense (148,366 ) (142,747 )
(296,043 ) (315,398 ) Gain (loss) on foreign currency 7,893 1,463
16,829 (21,448 ) Gain from changes in control of investment
properties and other 38,553 17,768
113,108 609,013
Income before income
taxes, equity in income of Unconsolidated Real Estate Affiliates
and allocation to noncontrolling interests 127,450
116,882 253,303 724,199 Benefit from
(provision for) income taxes 2,242 (74 ) (679 ) 11,085 Equity in
income of Unconsolidated Real Estate Affiliates 34,618 13,278
92,108 24,530 Equity in income of Unconsolidated Real Estate
Affiliates - gain on investment 25,591 297,767
40,506 309,787
Net income
189,901 427,853 385,238 1,069,601
Allocation to noncontrolling interests (3,956 )
(5,913 ) (7,513 ) (12,932 )
Net income
attributable to GGP 185,945 421,940
377,725 1,056,669 Preferred stock dividends
(3,983 ) (3,984 ) (7,967 ) (7,968 )
Net
income attributable to common stockholders $
181,962 $ 417,956 $
369,758 $ 1,048,701
Basic earnings per share $
0.21 $ 0.47 $ 0.42
$ 1.18 Diluted earnings per
share $ 0.19 $ 0.44
$ 0.39 $ 1.10
NON-GAAP PROPORTIONATE FINANCIAL
INFORMATION
Reconciliation of Non-GAAP to GAAP
Financial Measures
(In thousands, except per share)
Three Months Ended
Six Months Ended
June 30, 2016
June 30, 2015
June 30, 2016
June 30, 2015
Reconciliation of Company Same Store NOI to GAAP
Operating Income Company Same Store NOI $ 555,335 $ 533,899 $
1,110,591 $ 1,061,949 Company Non-Same Store NOI 21,800
7,348 73,592
12,588 Company NOI 577,135 $ 541,247 1,184,183 $
1,074,537
Adjustments for minimum rents, real estate
taxes and other property operating costs
(5,529 ) (6,151 ) (11,100 )
(26,154 ) Proportionate NOI 571,606 535,096 1,173,083
1,048,383 Unconsolidated Properties (166,625 ) (141,320 ) (354,237
) (261,795 ) NOI of sold interests 1,957 8,089 6,021 25,780
Noncontrolling interest in NOI of Consolidated Properties
3,417 4,490 7,344
8,901 Consolidated Properties 410,355 406,355 832,211
821,269 Management fees and other corporate revenues 18,917 26,731
52,659 45,817 Property management and other costs (38,282 ) (40,369
) (69,027 ) (83,162 ) General and administrative (14,649 ) (12,322
) (28,076 ) (24,769 ) Provision for impairment (4,058 ) - (44,763 )
- Provision for loan loss - - (36,069 ) - Depreciation and
amortization (156,248 ) (152,849 ) (316,919 ) (328,797 ) Gain on
sales of investment properties - 9
- 10
Operating
Income $ 216,035 $
227,555 $ 390,016
$ 430,368 Reconciliation of Company
EBITDA to GAAP Net Income Attributable to GGP Company EBITDA $
534,434 $ 501,620 $ 1,122,575 $ 991,053
Adjustments for minimum rents, real estate
taxes, other property operating costs, and general and
administrative
$ (5,529 ) $ (6,151 ) $ (11,100 ) $ (26,154 )
Proportionate EBITDA 528,905 495,469 1,111,475 964,899
Unconsolidated Properties (157,689 ) (127,364 ) (336,543 ) (239,737
) EBITDA of sold interests 1,837 7,970 5,771 25,445
Noncontrolling interest in EBITDA of Consolidated Properties
3,288 4,320 7,064
8,548 Consolidated Properties 376,341 380,395 787,767
759,155 Depreciation and amortization (156,248 ) (152,849 )
(316,919 ) (328,797 ) Interest income 13,335 12,843 29,393 21,664
Interest expense (148,366 ) (142,747 ) (296,043 ) (315,398 ) Gain
(loss) on foreign currency 7,893 1,463 16,829 (21,448 ) Benefit
from (provision for) income taxes 2,242 (74 ) (679 ) 11,085
Provision for impairment excluded from FFO (4,058 ) - (44,763 ) -
Provision for loan loss - - (36,069 ) - Equity in income of
Unconsolidated Real Estate Affiliates 34,618 13,278 92,108 24,530
Equity in income of Unconsolidated Real Estate Affiliates - gain on
investment 25,591 297,767 40,506 309,787 Gains from changes in
control of investment properties and other 38,553 17,768 113,108
609,013 Gain on sales of investment properties - 9 - 10 Allocation
to noncontrolling interests (3,956 ) (5,913 )
(7,513 ) (12,932 )
Net Income Attributable
to GGP $ 185,945 $
421,940 $ 377,725
$ 1,056,669
NON-GAAP PROPORTIONATE FINANCIAL
INFORMATION
Reconciliation of Non-GAAP to GAAP
Financial Measures
(In thousands, except per share)
Three Months Ended
Six Months Ended
June 30, 2016
June 30, 2015
June 30, 2016
June 30, 2015
Reconciliation of Company FFO to GAAP Net Income
Attributable to GGP Company FFO $ 340,050 $ 318,551 $ 722,853 $
627,886 Adjustments for minimum rents, property operating
expenses and property management and other costs, market rate
adjustments, loan loss provision, income taxes and FFO from sold
interests 2,188 (4,195 ) (17,305
) (53,871 ) Proportionate FFO 342,238 314,356 705,548
574,015 Depreciation and amortization of capitalized real estate
costs (220,172 ) (210,694 ) (445,040 ) (440,563 ) Gain from change
in control of investment properties and other 38,553 17,768 113,108
609,013 Preferred stock dividends 3,983 3,984 7,967 7,968 Gain
(loss) on sales of investment properties - 8 (1 ) 9 Equity in
income of Unconsolidated Real Estate Affiliates - gain on
investment 25,591 297,767 40,506 309,787 Noncontrolling interests
in depreciation of Consolidated Properties 1,168 1,921 3,283 3,956
Provision for impairment excluded from FFO (4,058 ) - (44,763 ) -
Redeemable noncontrolling interests (1,358 )
(3,170 ) (2,883 ) (7,516 )
Net Income
Attributable to GGP $ 185,945
$ 421,940 $ 377,725
$ 1,056,669 Reconciliation of
Equity in NOI of Unconsolidated Properties to GAAP Equity in Income
of Unconsolidated Real Estate Affiliates Equity in NOI of
Unconsolidated Properties: NOI $ 166,625 $ 141,320 $ 354,237 $
261,795 Net property management fees and costs (8,417 ) (7,825 )
(17,082 ) (15,412 ) General and administrative (519 )
(6,131 ) (612 ) (6,646 ) EBITDA
157,689 127,364 336,543 239,737 Net interest expense (54,954 )
(53,293 ) (108,938 ) (97,721 ) Provision for income taxes
(96 ) (61 ) (179 ) (163 )
FFO of Unconsolidated Properties 102,639 74,010 227,426 141,853
Depreciation and amortization of capitalized real estate costs
(68,036 ) (60,746 ) (135,345 ) (117,351 ) Other, including gain on
sales of investment properties 15 14
27 28
Equity in Income
of Unconsolidated Real Estate Affiliates $ 34,618
$ 13,278 $ 92,108
$ 24,530
Reconciliation of Company FFO per
diluted share to Net Income Attributable to GGP per diluted
share
Company FFO per diluted share $ 0.35 $ 0.33 $ 0.75 $ 0.65
Adjustments for straight-line rent, above/below market rent, loss
on foreign currency and the related provision for income taxes, and
other non-comparable items.
0.01
(0.00 )
(0.01
)
(0.05
) FFO per diluted share 0.36 0.33 0.74 0.60 Depreciation, gain from
change in control of investment properties and other, provision for
impairment, and redeemable noncontrolling interests
(0.17 ) 0.11 (0.35 ) 0.49
Net income attributable to common stockholders per diluted
share 0.19 0.44 0.39 1.09 Preferred stock dividends 0.00
(0.00 )
0.00
0.01
Net Income Attributable to GGP
per diluted share $ 0.19 $
0.44
$ 0.39 $ 1.10
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160801006191/en/
General Growth Properties, Inc.Kevin BerrySVP Investor and
Public Relations(312) 960-5529kevin.berry@ggp.com
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