General Growth Properties, Inc. (the “Company” or “GGP”) (NYSE:
GGP) today reported results for the three and nine months ended
September 30, 2016.
Highlights
- Company Same Store Net Operating Income
(“Company Same Store NOI”) increased 3.8% and 4.2% from the prior
year period for the three and nine months ended September 30, 2016,
respectively.
- Company earnings before interest,
taxes, depreciation and amortization (“Company EBITDA”) increased
4.6% and 10.3% from the prior year period for the three and nine
months ended September 30, 2016, respectively.
- Same Store leased percentage was 96.7%
at quarter end.
- Initial rental rates for signed leases
that have commenced in the trailing 12 months on a suite-to-suite
basis increased 12.0% when compared to the rental rate for expiring
leases.
- Tenant sales (all less anchors)
increased 1.4% on a trailing 12-month basis.1
- The Company formed a joint venture with
Simon Property Group and Authentic Brands Group LLC to acquire
Aéropostale, Inc. GGP’s total investment was $20.4 million.
- During and subsequent to quarter end,
the Company acquired five anchor boxes from Macy’s for
approximately $48 million.
- The Company declared a fourth quarter
common stock dividend, an increase of 16% over the prior year.
GAAP Operating Results
For the three months ended September 30, 2016, net income
attributable to GGP was $674 million, or $0.70 per diluted share,
as compared to $124 million, or $0.13 per diluted share, in the
prior year period. For the nine months ended September 30, 2016,
net income attributable to GGP was $1.1 billion, or $1.09 per
diluted share, as compared to $1.2 billion, or $1.23 per diluted
share, in the prior year period. Net income attributable to GGP in
2016 and 2015 for the three and nine months was impacted primarily
by the gains related to the sales of a partial interest in two
properties.
Company Operating
Results
For the three months ended September 30, 2016, Company Funds
From Operations (“Company FFO”) was $336 million, or $0.35 per
diluted share, as compared to $341 million, or $0.36 per diluted
share, in the prior year period, a decrease of 2.0%. For the nine
months ended September 30, 2016, Company FFO was $1.1 billion, or
$1.10 per diluted share, as compared to $969 million, or $1.01 per
diluted share, in the prior year period, an increase of 9.2%.
1 Excludes Christiana Mall due to unusual
changes in sales productivity.
Investment Activities
Development
The Company’s development and redevelopment activities total
$1.0 billion, of which approximately $0.6 billion is under
construction and $0.4 billion is in the pipeline.
Financing Activities
During the third quarter, the Company repaid the mortgage loan
on the Mall of Louisiana for approximately $202 million with an
interest rate of 5.8%, repaid the mortgage loan on Apache Mall for
approximately $93 million with an interest rate of 4.3%, and repaid
$90 million that was outstanding on the credit facility.
Dividends
On October 31, 2016, the Company’s Board of Directors declared a
fourth quarter common stock dividend of $0.22 per share payable on
January 6, 2017, to stockholders of record on December 15, 2016.
This represents an increase of $0.03 per share or 16% growth over
the dividend declared for the fourth 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 January 3, 2017, to stockholders of record on
December 15, 2016.
Guidance
For the year ending For the three
months Earnings Guidance December 31, 2016
ending December 31, 2016 Net
income attributable to GGP $1.31- $1.33 $0.22 - $0.24 Preferred
stock dividends (0.02 ) (0.01 ) Net income attributable to common
stockholders $1.29 - $1.31 $0.21 - $0.23 Gain from change in
control of investment properties and other, provision for
impairment and redeemable noncontrolling interests (0.72 ) -
Depreciation, including share of JVs 0.92 0.20 NAREIT
FFO $1.49 - $1.51 $0.41 - $0.43 Adjustments 1 0.03 0.01
Company FFO per diluted share $1.52 - $1.54 $0.42 -
$0.44
- Includes impact of straight-line rent,
above/below market rent, gain/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.
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, November 1, 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 87693982.
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
columns labeled "Consolidated Properties at Share" reflect the
Company's Consolidated Properties at our proportionate share
(excluding noncontrolling interests and unconsolidated properties).
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 entity. This provides
visibility into our share of the operations of our joint
ventures.
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)
September 30, 2016
December 31, 2015 Assets: Investment in real estate:
Land $ 2,972,931 $ 3,596,354 Buildings and equipment 15,497,006
16,379,789 Less accumulated depreciation (2,611,194 ) (2,452,127 )
Construction in progress 344,479 308,903
Net property and equipment 16,203,222 17,832,919 Investment
in and loans to/from Unconsolidated Real Estate Affiliates
3,844,177 3,506,040 Net investment in real
estate 20,047,399 21,338,959 Cash and cash equivalents 656,769
356,895 Accounts and notes receivable, net 883,072 949,556 Deferred
expenses, net 215,947 214,578 Prepaid expenses and other assets
910,002 997,334 Assets held for disposition -
216,233
Total assets $ 22,713,189
$ 24,073,555 Liabilities:
Mortgages, notes and loans payable $ 12,460,027 $ 14,216,160
Investment in Unconsolidated Real Estate Affiliates 39,500 38,488
Accounts payable and accrued expenses 646,216 784,493 Dividend
payable 184,634 172,070 Deferred tax liabilities 1,365 1,289 Junior
Subordinated Notes 206,200 206,200 Liabilities held for disposition
- 58,934
Total liabilities
13,537,942 15,477,634
Redeemable noncontrolling interests: Preferred 159,260
157,903 Common 131,583 129,724
Total
redeemable noncontrolling interests 290,843
287,627 Equity: Preferred stock
242,042 242,042 Stockholders' Equity 8,594,582 8,028,001
Noncontrolling interests in consolidated real estate affiliates
20,264 24,712 Noncontrolling interests related to long-term
incentive plan common units 27,516 13,539
Total equity 8,884,404
8,308,294 Total liabilities, redeemable
noncontrolling interests and equity $ 22,713,189
$ 24,073,555 GAAP FINANCIAL STATEMENTS
Consolidated Statements of Income (In thousands, except per
share)
Three Months Ended Nine
Months Ended September 30, 2016 September 30,
2015 September 30, 2016 September 30, 2015
Revenues: Minimum rents $ 347,676 $ 358,716 $
1,082,220 $ 1,094,384 Tenant recoveries 162,031 172,515 504,242
518,040 Overage rents 6,505 6,455 19,024 18,755 Management fees and
other corporate revenues 20,428 19,496 73,087 65,313 Other
17,853 28,142 57,539
62,956
Total revenues 554,493
585,324 1,736,112
1,759,448 Expenses: Real estate taxes 58,239
57,942 173,651 170,425 Property maintenance costs 11,576 11,707
41,014 44,491 Marketing 2,244 4,273 7,036 12,849 Other property
operating costs 73,479 79,265 215,474 227,874 Provision for
doubtful accounts 574 1,622 5,685 6,199 (Recovery of) provision for
loan loss (6,659 ) - 29,410 - Property management and other costs
37,760 38,685 106,787 121,847 General and administrative 13,237
12,627 41,313 37,395 Provisions for impairment 28,276 - 73,039 -
Depreciation and amortization
182,350
154,228
499,269
483,026
Total expenses
401,076
360,349
1,192,678
1,104,106 Operating income
153,417
224,975
543,434
655,342 Interest and dividend income
14,114 13,232 43,507 34,896 Interest expense (141,296 ) (144,891 )
(437,338 ) (460,289 ) (Loss) gain on foreign currency (657 )
(25,092 ) 16,172 (46,540 ) Gain from changes in control of
investment properties and other 620,309 13,399
733,416 622,412
Income before
income taxes, equity in income of Unconsolidated Real Estate
Affiliates and allocation to noncontrolling interests
645,887
81,623
899,191
805,821 (Provision for) benefit from income taxes (49 )
17,996 (728 ) 29,082 Equity in income of Unconsolidated Real Estate
Affiliates 35,651 16,584 127,759 41,115 Unconsolidated Real Estate
Affiliates - gain on investment 259 11,163
40,765 320,950
Net income
681,748
127,366
1,066,987
1,196,968 Allocation to noncontrolling interests
(7,570 ) (3,514 ) (15,083 ) (16,447 )
Net
income attributable to GGP
674,178
123,852
1,051,904
1,180,521 Preferred stock dividends (3,984 )
(3,984 ) (11,951 ) (11,952 )
Net income
attributable to common stockholders $
670,194
$ 119,868 $
1,039,953
$ 1,168,569
Basic earnings per share $
0.76
$ 0.14 $
1.18
$ 1.32 Diluted earnings per
share $
0.70
$ 0.13 $
1.09
$ 1.23 NON-GAAP PROPORTIONATE FINANCIAL
INFORMATION Reconciliation of GAAP to Non-GAAP Financial
Measures (In thousands, except per share)
Three Months Ended Nine Months
Ended September 30, 2016 September 30,
2015 September 30, 2016 September 30, 2015
Reconciliation of
GAAP Operating Income to Company Same Store NOI
Operating Income $ 153,417 $ 224,975 $ 543,434 $
655,342 Loss (gain) on sales of investment properties 1,016 (854 )
1,016 (863 ) Depreciation and amortization 182,350 154,228 499,269
483,026 (Recovery of) provision for loan loss (6,659 ) - 29,410 -
Provision for impairment 28,276 - 73,039 - General and
administrative 13,237 12,627 41,313 37,395 Property management and
other costs 37,760 38,685 106,787 121,847 Management fees and other
corporate revenues (20,428 ) (19,496 )
(73,087 ) (65,313 ) Consolidated Properties 388,969
410,165 1,221,181 1,231,434 Noncontrolling interest in NOI of
Consolidated Properties (3,734 ) (4,422 ) (11,080 ) (13,321 ) NOI
of sold interests (4,556 ) (21,855 ) (42,504 ) (74,458 )
Unconsolidated Properties 176,701
150,855 530,938 412,650
Proportionate NOI 557,380 534,743 1,698,535 1,556,305 Company
adjustments: Minimum rents 7,231 7,148 14,036 27,596 Real estate
taxes 1,490 1,490 4,469 4,469 Property operating expenses
965 1,018 2,991
3,056 Company NOI 567,066 544,399 1,720,031
1,591,426 Company Non-Same Store NOI 23,495
20,808 97,011 33,400
Company Same Store NOI $ 543,571 $ 523,591
$ 1,623,020 $ 1,558,026
Reconciliation of
GAAP Net Income Attributable to GGP to Company
EBITDA
Net Income Attributable to GGP $ 674,178 $ 123,852 $ 1,051,904 $
1,180,521 Allocation to noncontrolling interests 7,570 3,514 15,083
16,447 Loss (gain) on sales of investment properties 1,016 (854 )
1,016 (863 ) Gains from changes in control of investment properties
and other (620,309 ) (13,399 ) (733,416 ) (622,412 ) Unconsolidated
Real Estate Affiliates - gain on investment (259 ) (11,163 )
(40,765 ) (320,950 ) Equity in income of Unconsolidated Real Estate
Affiliates (35,651 ) (16,584 ) (127,759 ) (41,115 ) (Recovery of)
provision for loan loss (6,659 ) - 29,410 - Provision for
impairment 28,276 - 73,039 - Provision for (benefit from) income
taxes 49 (17,996 ) 728 (29,082 ) Loss (gain) on foreign currency
657 25,092 (16,172 ) 46,540 Interest expense 141,296 144,891
437,338 460,289 Interest income (14,114 ) (13,232 ) (43,507 )
(34,896 ) Depreciation and amortization 182,350
154,228 499,269
483,026 Consolidated Properties 358,400 378,349 1,146,168
1,137,505 Noncontrolling interest in EBITDA of Consolidated
Properties (3,599 ) (4,244 ) (10,665 ) (12,790 ) EBITDA of sold
interests (4,549 ) (21,638 ) (42,229 ) (73,892 )
Unconsolidated Properties 167,914
142,465 504,459 382,201
Proportionate EBITDA 518,166 494,932 1,597,733 1,433,024 Company
adjustments: Minimum rents 7,231 7,148 14,036 27,596 Real estate
taxes 1,490 1,490 4,469 4,469 Property operating expenses
965 1,018 2,991
3,056 Company EBITDA $ 527,852 $
504,588 $ 1,619,229 $ 1,468,145
NON-GAAP PROPORTIONATE FINANCIAL INFORMATION Reconciliation
of GAAP to Non-GAAP Financial Measures (In thousands, except per
share)
Three Months Ended
Nine Months Ended
September 30, 2016
September 30, 2015
September 30, 2016
September 30, 2015
Reconciliation of
GAAP Net Income Attributable to GGP to Company FFO
Net Income Attributable to GGP $ 674,178 $ 123,852 $
1,051,904 $ 1,180,521 Redeemable noncontrolling interests 5,051
1,017 7,934 8,532 Provision for impairment excluded from FFO 28,276
- 73,039 - Noncontrolling interests in depreciation of Consolidated
Properties (1,592 ) (1,948 ) (4,875 ) (5,905 ) Unconsolidated Real
Estate Affiliates - gain on investment (259 ) (11,163 ) (40,765 )
(320,950 ) Loss on sales of investment properties 1,017 2,358 1,016
2,349 Preferred stock dividends (3,984 ) (3,984 ) (11,951 ) (11,952
) Gains from changes in control of investment properties and other
(620,309 ) (13,399 ) (733,416 ) (622,412 ) Depreciation and
amortization of capitalized real estate costs - Consolidated
Properties 178,108 151,393 487,804 474,607 Depreciation and
amortization of capitalized real estate costs - Unconsolidated
Properties 73,888 68,647
209,236 186,000 FFO 334,374
316,773 1,039,926 890,790 Company adjustments: Minimum rents 7,231
7,148 14,036 27,596 Property operating expenses 1,490 1,490 4,469
4,469 Property management and other costs 965 1,018 2,991 3,056
Interest and dividend income (205 ) (205 ) (614 ) (614 ) Market
rate adjustments (1,287 ) (61 ) (2,092 ) (1,323 ) Write-off of
mark-to-market adjustments on extinguished debt (2,290 ) 102 (2,290
) 7,229
(Recovery of) provision for loan loss
(6,659 ) - 21,891 - Loss (gain) on foreign currency 657 25,092
(16,172 ) 46,540 Benefit from (provision for) income taxes 2,093
(9,924 ) (2,262 ) (17,167 ) FFO from sold interests
(133 ) (686 ) (790 ) 8,063
Company FFO $ 336,236 $ 340,747 $
1,059,093 $ 968,639
NON-GAAP PROPORTIONATE FINANCIAL
INFORMATION
Reconciliation of GAAP to Non-GAAP
Financial Measures
(In thousands, except per share)
Three Months Ended
Nine Months Ended
September 30, 2016
September 30, 2015
September 30, 2016
September 30, 2015
Reconciliation of
Net Income Attributable to GGP per diluted share to Company FFO per
diluted share
Net Income Attributable to GGP per diluted share $
0.70 $ 0.13 $ 1.09 $ 1.23 Preferred stock dividends -
- (0.01 ) (0.01 ) Net
income attributable to common stockholders per diluted share 0.70
0.13 1.08 1.22 Redeemable noncontrolling interests 0.01 - 0.01 0.01
Provision for impairment excluded from FFO 0.03 - 0.08 -
Noncontrolling interests in depreciation of Consolidated Properties
- - (0.01 ) (0.01 ) Unconsolidated Real Estate Affiliates - gain on
investment - (0.01 ) (0.04 ) (0.33 ) Gains from changes in control
of investment properties and other (0.64 ) (0.01 ) (0.76 ) (0.65 )
Depreciation and amortization of capitalized real estate costs
0.25 0.22 0.72
0.69 FFO per diluted share 0.35 0.33
1.08 0.93 Company adjustments: Straight-line rent 0.01 0.01 0.01
0.03 Property operating expenses - - 0.01 - Write-off of
mark-to-market adjustments on extinguished debt (0.00 ) 0.00 (0.00
) 0.01
(Recovery of) provision for loan loss
(0.01 ) - 0.02 - Loss (gain) on foreign currency - 0.03 (0.02 )
0.05 Provision for income taxes - (0.01 ) - (0.02 ) FFO from
sold interests (0.00 ) (0.00 ) (0.00 )
0.01 Company FFO per diluted share $ 0.35
$ 0.36 $ 1.10 $ 1.01
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161031006121/en/
General Growth Properties, Inc.Kevin BerrySVP Investor and
Public Relations(312) 960-5529kevin.berry@ggp.com
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