General Growth Properties, Inc. (NYSE:GGP) today released third
quarter 2005 results. For the third quarter of 2005 Earnings per
share - diluted ("EPS") were a loss of $.03 and fully diluted Funds
From Operations per share ("FFO") were $.72. This compares to $.29
of EPS and $.66 of FFO reported in the third quarter of 2004. The
2005 third quarter FFO represents a 9.1% increase over the amount
reported in the comparable period of 2004. "Third quarter business
remained strong, as evidenced by increased sales and higher
occupancies," said John Bucksbaum, the Chief Executive Officer of
General Growth Properties, Inc. "During the quarter, we opened The
Shops at La Cantera, a 1.1 million square foot regional mall in San
Antonio, Texas. Initial sales are strong, and we look forward to
beginning work on phase II in the Spring of 2006." FINANCIAL AND
OPERATIONAL HIGHLIGHTS -- EPS in the third quarter of 2005 were a
loss of $.03 per share versus net income per share of $.29 in the
comparable period of 2004. Depreciation and amortization expense in
the third quarter of 2005 was $177.3 million or $.74 per share
versus $82.0 million or $.38 per share in 2004 (all amounts before
minority interest allocation). -- FFO increased to $.72 in the
third quarter of 2005, 9.1% above the $.66 reported in the third
quarter of 2004. Total Funds From Operations for the quarter
increased 17.5% to $211.8 million, from $180.2 million in the third
quarter of 2004. The effects of non-cash rental revenue recognized
pursuant to SFAS No. 141 and 142 resulted in approximately $14.4
million or $.05 of FFO in the third quarter of 2005 and $9.0
million or $0.03 in the comparable period of 2004. Non-cash ground
rent expense recognized pursuant to SFAS No. 141 and 142, all of
which was attributable to The Rouse Company acquisition, resulted
in a reduction of approximately $2.9 million or approximately $.01
of FFO in the third quarter of 2005. Straight-line rent resulted in
approximately $22.6 million or $.08 of FFO in the third quarter of
2005, versus $4.8 million or $.02 in the same period of 2004. --
FFO Guidance for fiscal year 2005 is currently estimated to be
approximately $3.16 per share. FFO of $3.16 per share in 2005 would
represent a 14.1% increase over actual 2004 FFO of $2.77 per share.
FFO guidance for fiscal year 2006 will be provided as part of our
earnings release for the fourth quarter of 2005. -- Two of our
operating retail properties in the United States Gulf Coast region
(Oakwood Center in Gretna, Louisiana and Riverwalk, located near
the convention center in downtown New Orleans) are currently closed
due to significant property damage. Riverwalk is currently expected
to re-open by Thanksgiving 2005 even though certain repair and
refurbishment activities are anticipated to continue into 2006.
While two anchor stores at Oakwood have announced plans to re-open
in time for the 2005 holiday season and repair and re-opening plans
are in process, no official re-opening date has been set for the
remainder of the property. Management currently believes that
existing insurance coverage for property damage and business
interruption will, after applicable deductibles, apply.
Accordingly, included in property operating expenses for the three
and nine months ended September 30, 2005 are approximately $1
million of costs which, when fully expended, are not expected to be
recoverable from insurance proceeds due to insurance policy
deductibles. SEGMENT RESULTS The Company is presenting its
operations for 2005 in two business segments, Retail and Other, and
Master Planned Community. As the Master Planned Community
properties were acquired in November 2004, only one operating
segment has been presented for 2004. Retail and Other Segment -0-
*T -- Real estate property net operating income ("NOI") from
consolidated properties for the third quarter of 2005 increased to
$439.7 million, 71% above the $256.6 million reported in the third
quarter of 2004. NOI from unconsolidated properties, at the
Company's ownership share, for the quarter increased 55% to $108.8
million, compared to $70.4 million in the third quarter of 2004. --
Revenues from consolidated properties were $654.7 million for the
quarter, an increase of 72% compared to $380.0 million for the same
period in 2004. Revenues from unconsolidated properties, at the
Company's ownership share, for the quarter increased 60% to $163.6
million, compared to $102.2 million in the third quarter of 2004.
-- Total tenant sales and comparable tenant sales, both on a
trailing 12 month basis at September 2005, increased 6.0% and 3.5%,
respectively, compared to the same period last year. -- Comparable
NOI from consolidated properties in the third quarter of 2005
increased by 7.6% compared to the same period last year. Comparable
NOI from unconsolidated properties, at the Company's ownership
share, for the quarter increased by approximately 8.9% compared to
the third quarter of 2004. -- Retail Center occupancy was 92.2% at
September 30, 2005, compared to 90.8% at September 30 2004. The
Company estimates that its retail center occupancy at December 31,
2005 will be approximately 92.5%. -- Sales per square foot for
third quarter 2005 were $425 versus $377 in the third quarter of
2004. -- Average rent For consolidated properties, average rent per
square foot for new/renewal leases signed during the quarter was
$37.34 versus $34.83 for 2004. For unconsolidated properties,
average rent per square foot for new/renewal leases signed in the
third quarter of 2005 was $40.11 versus $36.69 for 2004. Average
rent for consolidated properties leases expiring in 2005 was $29.63
versus $25.69 in 2004. For unconsolidated properties, average rent
for leases expiring in 2005 was $32.31 compared to $32.35 in 2004.
*T Master Planned Community Segment -- NOI for the three months
ended September 30, 2005 for the properties in the Master Planned
Community segment was $18.8 million for consolidated properties and
$2.7 million for unconsolidated properties. Substantially all of
the Company's $15.0 million in income taxes for the three months
ended September 30, 2005 was attributable to the Master Planned
Community segment. -- Land sale revenues for the three months ended
September 30, 2005 were approximately $79.1 million for
consolidated properties and approximately $21.3 million for
unconsolidated properties, amounts which represent approximately a
39.6% increase over the revenues achieved by The Rouse Company in
the three months ended September 30, 2004. -- Net cash flow
generated from the Master Planned Community Segment for the nine
months ended September 30, 2005 was approximately $81.7 million.
DEVELOPMENT ACTIVITIES In September 2005, the Company opened the
development of Shops at La Cantera in San Antonio, Texas. This open
air center is anchored by Nieman's, Nordstrom, Dillard's and
Foley's. The Company has three other new retail center development
projects currently under construction, Lincolnshire Commons, in
Lincolnshire (Chicago), Illinois, Otay Ranch Town Center in Chula
Vista (San Diego), California and Pinnacle Hills Promenade, in
Rogers, Arkansas, all of which are scheduled to open in 2006. The
Company also has 12 other potential new retail or mixed-use
developments that are projected to open in 2006 through 2009. As of
September 30, 2005, the Company had 20 major approved redevelopment
projects underway (each with budgeted projected expenditures, at
our ownership share, in excess of $10 million). Total projected
expenditures (including the Company's share of its Unconsolidated
Real Estate Affiliates) for the 20 redevelopment projects and the
three new retail center development projects under construction
(described above) were approximately $927.5 million as of September
30, 2005. Such development and re-development expenditures,
together with expenditures for the 12 other potential new retail or
mixed-use developments mentioned above, are expected to result in
approximately $400 to $500 million of expenditures per year for the
years 2006 to 2008. CONFERENCE CALL/WEBCAST The Company will host a
live Webcast of its conference call regarding this announcement on
our Web site, www.generalgrowth.com. This Webcast will take place
on Tuesday, November 1, 2005, at 10:00 a.m. Eastern Time (9:00 a.m.
CT, 7:00 a.m. PT). The Webcast can be accessed by selecting the
conference call icon on the GGP home page. The Company is the
second largest U.S.-based publicly traded Real Estate Investment
Trust ("REIT"). The Company currently has ownership interest and
management responsibility for a portfolio of 210 regional shopping
malls in 44 states, as well as ownership in planned community
developments and commercial office buildings. The Company portfolio
totals approximately 200 million square feet of retail space and
includes over 24,000 retail stores nationwide. The Company is
listed on the New York Stock Exchange under the symbol GGP. For
more information, please visit the Company Web site at
http://www.generalgrowth.com. BASIS OF REPORTING "Consolidated
Properties" include all properties which are consolidated for GAAP
purposes. "Unconsolidated Properties" include properties which are
owned through joint venture arrangements and unconsolidated for
GAAP purposes. On a segment basis, the Unconsolidated Properties
are reported using the proportionate share method rather than the
equity method. Under the proportionate share method, the Company's
share of the revenues and expenses of the Unconsolidated Properties
and certain other minority interest ventures are reported
separately. Under the equity method, the Company's share of the net
revenues and expenses of the Unconsolidated Properties are reported
as a single line item, "Equity in income of unconsolidated
affiliates." The Company provides on-site management and other
services to substantially all of its properties, including the
Unconsolidated Properties. The Company's management philosophies
and strategies are generally the same whether the properties are
consolidated or unconsolidated. As a result, the Company believes
that financial information and operating statistics with respect to
all properties, both consolidated and unconsolidated, provide
important insights into the income produced by such investments for
the Company as a whole and that an aggregate presentation yields a
more accurate representation of the relative size and significance
of the elements of the Company's overall operations. FUNDS FROM
OPERATIONS ("FFO") The Company, consistent with real estate
industry and investment community preferences, uses Funds From
Operations ("FFO") as a supplemental measure of operating
performance. FFO is a non-GAAP financial measure which the National
Association of Real Estate Investment Trusts ("NAREIT") defines FFO
as net income (loss) (computed in accordance with Generally
Accepted Accounting Principles ("GAAP")), excluding gains (or
losses) from cumulative effects of accounting changes,
extraordinary items and sales of properties, plus real estate
related depreciation and amortization and after adjustments for
unconsolidated partnerships and joint ventures. The Company
considers FFO a supplemental measure for equity REITs and a
complement to GAAP measures because it facilitates an understanding
of the operating performance of the Company's properties. FFO 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. In order to provide a better understanding of the
relationship between FFO and GAAP net income (loss), a
reconciliation of FFO to GAAP net income (loss) is provided. FFO
does not represent cash flow from operating activities in
accordance with GAAP, should not be considered as an alternative to
GAAP net income (loss) and is not necessarily indicative of cash
available to fund cash needs. REAL ESTATE PROPERTY NET OPERATING
INCOME ("NOI") The Company believes that Real Estate Property Net
Operating Income ("NOI") is a useful supplemental measure of the
Company's operating performance. The Company defines NOI as
operating revenues from continuing operations (rental income, land
sales, tenant recoveries and other income) less property and
related expenses from continuing operations (real estate taxes,
land sales operating costs, repairs and maintenance, marketing and
other property expenses). Other REITs may use different
methodologies for calculating NOI, and accordingly, the Company's
NOI may not be comparable to other REITs. Since NOI excludes
general and administrative expenses, interest expense, depreciation
and amortization, gains and losses from property dispositions and
discontinued operations, 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, land values and operating costs.
This measure thereby provides an operating perspective not
immediately apparent from GAAP operating or net income. The Company
uses NOI to evaluate its operating performance on a
property-by-property basis because NOI allows the Company to
evaluate the impact that factors such as lease structure, lease
rates and tenant base, which vary by property, have on the
Company's operating results, gross margins and investment returns.
In addition, management believes that NOI provides useful
information to the investment community about the Company's
operating performance. However, due to the exclusions noted above,
NOI should only be used as an alternative measure of the Company's
financial performance. For reference and as an aid in understanding
of management's computation of NOI, a reconciliation of real estate
NOI to income from operations as computed in accordance with GAAP
is presented. COMPARABLE NOI Comparable NOI excludes from both
years the NOI of properties with significant physical or
merchandising changes and those properties acquired or opened
during the relevant comparative accounting periods. FORWARD LOOKING
STATEMENTS This press release contains forward-looking statements,
including our FFO guidance. Actual results may differ materially
from the results suggested by these forward-looking statements, for
a number of reasons, including, but not limited to, the retail
market, tenant occupancy and tenant bankruptcies, the level of our
indebtedness and interest rates, market conditions and land sales
in the Master Planned Community segment, our ability to manage our
growth and the effect of the recent events in the Gulf Coast region
of the United States. Readers are referred to the documents filed
by General Growth Properties, Inc. with the SEC, specifically the
most recent report on Form 10-Q, which further identify the
important risk factors which could cause actual results to differ
materially from the forward-looking statements in this release. The
Company disclaims any obligation to update any forward-looking
statements. -0- *T GENERAL GROWTH PROPERTIES, INC. OVERVIEW (In
thousands, except per share amounts)
----------------------------------------------------------------------
Three Months Ended Nine Months Ended September 30, September 30,
------------------------- ------------------------- 2005 2004
2005(1) 2004 ------------ ------------ ------------ ------------
Funds From Operations ("FFO") Company stockholders $172,905
$143,715 $512,054 $407,131 Operating Partnership unitholders 38,906
36,513 116,959 103,824 ------------ ------------ ------------
------------ Operating Partnership $211,811 $180,228 $629,013
$510,955 ============ ============ ============ ============ FFO
per share: Company stockholders - basic $0.73 $0.66 $2.16 $1.87
Operating Partnership - basic 0.73 0.66 2.16 1.87 Operating
Partnership - diluted 0.72 0.66 2.15 1.86 Increase in diluted FFO
over comparable prior year period 9.1% 15.8% 15.6% 19.2% Dividends
Dividends paid per share $0.36 $0.30 $1.08 $0.90 Payout ratio (% of
diluted FFO paid out) 50.0% 45.5% 50.2% 48.4% Portfolio Results
Real estate property net operating income: Retail and Other:
Consolidated $439,698 $256,564 $1,264,129 $730,509 Unconsolidated
108,797 70,351 303,955 200,427 Master Planned Communities:
Consolidated 18,759 - 46,315 - Unconsolidated 2,709 - 15,342 -
------------ ------------ ------------ ------------ Real estate
property net operating income 569,963 326,915 1,629,741 930,936 Net
property management fees and costs 2,143 (168) 1,410 1,611
Headquarters/regional costs, general and administrative and
depreciation on non-income producing assets (26,834) (8,210)
(69,701) (31,294) Net interest expense (268,371) (100,681)
(753,717) (277,445) Income taxes (14,980) 350 (27,609) (40) Equity
in other FFO of Unconsolidated Properties (48,168) (29,491)
(131,436) (83,716) Preferred unit distributions (1,942) (8,487)
(19,675) (29,097) ------------ ------------ ------------
------------ FFO - Operating Partnership $211,811 $180,228 $629,013
$510,955 ============ ============ ============ ============ (1)
Includes amounts for prior periods which have been reclassified to
conform to the current period presentation. Weighted average number
of Company shares outstanding: Basic 238,218 218,605 237,299
218,080 Assuming full conversion of Operating Partnership units:
Basic 291,820 274,145 291,501 273,693 Diluted 292,842 274,838
292,280 274,372 Consolidated Properties Unconsolidated Properties
(b) --------------------------------------------------- Average
Average Summarized Debt Outstanding Interest Outstanding Interest
Information Balance Rate (c) Balance Rate (c) ------------
------------ ------------ ------------ Fixed rate $14,495,686 5.45%
$2,554,780 5.42% Variable rate 5,800,132 5.59 535,600 5.43
------------ ------------ ------------ ------------ Totals
$20,295,818(b) 5.49% $3,090,380 5.42% ============ ============
============ ============ (a) Reflects the Company's share of debt
relating to the properties owned by the Unconsolidated Real Estate
Affiliates. (b) Excludes minority interest adjustment of $68.1
million and purchase accounting mark-to-market adjustment of $153.2
million. (c) Includes the effects of swaps and excludes the effect
of deferred finance costs. GENERAL GROWTH PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per
share amounts)
----------------------------------------------------------------------
Three Months Ended Nine Months Ended September 30, September 30,
----------------------- ----------------------- 2005 2004 2005 2004
----------- ----------- ----------- ----------- Revenues: Minimum
rents $429,107 $245,538 $1,249,439 $698,232 Tenant recoveries
183,069 111,570 543,432 319,264 Overage rents 13,185 9,386 36,497
23,168 Land sales 79,112 - 254,863 - Management and other fees
22,409 18,400 65,224 57,263 Other 29,814 12,607 83,211 33,778
----------- ----------- ----------- ----------- Total revenues
756,696 397,501 2,232,666 1,131,705 ----------- -----------
----------- ----------- Expenses: Real estate taxes 50,048 30,155
156,252 87,124 Repairs and maintenance 46,469 27,286 145,892 77,265
Marketing 13,350 12,370 36,180 33,325 Other property operating
costs 99,399 51,072 294,669 141,048 Land sales operations 60,353 -
208,548 - Provision for doubtful accounts 5,763 2,591 14,164 7,940
Property management and other costs 39,646 21,631 113,236 70,954
General and administrative 3,559 2,078 10,005 7,080 Depreciation
and amortization 177,307 82,027 513,691 240,687 -----------
----------- ----------- ----------- Total expenses 495,894 229,210
1,492,637 665,423 ----------- ----------- ----------- -----------
Operating income 260,802 168,291 740,029 466,282 Interest income
2,599 336 7,305 1,119 Interest expense (270,970) (101,017)
(761,022) (278,564) Income taxes (14,980) 350 (27,609) (40) Income
(loss) allocated to minority interests (3,479) (24,673) (25,121)
(73,011) Equity in income (loss) of unconsolidated affiliates
19,194 19,686 75,301 55,770 ----------- ----------- -----------
----------- Income (loss) from continuing operations (6,834) 62,973
8,883 171,556 Income (loss) from discontinued operations, net of
minority interest - 1,000 - 2,687 ----------- -----------
----------- ----------- Net income (loss) $(6,834) $63,973 $8,883
$174,243 =========== =========== =========== =========== Basic
earnings (loss) per share: Continuing operations $(0.03) $0.29
$0.04 $0.79 Discontinued operations - - - 0.01 -----------
----------- ----------- ----------- Total basic earnings (loss) per
share $(0.03) $0.29 $0.04 $0.80 =========== =========== ===========
=========== Diluted earnings (loss) per share: Continuing
operations $(0.03) $0.29 $0.04 $0.78 Discontinued operations - - -
0.01 ----------- ----------- ----------- ----------- Total diluted
earnings (loss) per share $(0.03) $0.29 $0.04 $0.79 ===========
=========== =========== =========== GENERAL GROWTH PROPERTIES, INC.
PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS ("FFO") (In thousands)
---------------------------------------------------------------------
Three Months Ended September 30, 2005
-------------------------------------------- Consolidated
Unconsolidated Segment Retail and Other Properties Properties Basis
-------------- -------------- -------------- Property revenues:
Minimum rents $429,107 $101,679 $530,786 Tenant recoveries 183,069
44,861 227,930 Overage rents 13,185 2,031 15,216 Other 29,366
15,041 44,407 -------------- -------------- -------------- Total
property revenues 654,727 163,612 818,339 --------------
-------------- -------------- Property operating expenses: Real
estate taxes 50,048 14,303 64,351 Repairs and maintenance 46,469
9,861 56,330 Marketing 13,350 2,932 16,282 Other property operating
costs 99,399 25,903 125,302 Provision for doubtful accounts 5,763
1,816 7,579 -------------- -------------- -------------- Total
property operating expenses 215,029 54,815 269,844 --------------
-------------- -------------- Retail and other net operating income
439,698 108,797 548,495 -------------- --------------
-------------- Master Planned Communities Land sales 79,112 21,331
100,443 Land sales operations (60,353) (18,622) (78,975)
-------------- -------------- -------------- Master Planned
Communities net operating income 18,759 2,709 21,468 --------------
-------------- -------------- Real estate property net operating
income 458,457 111,506 $569,963 ============== Management and other
fees 22,409 - Property management and other costs (20,266) -
Headquarters/regional costs (19,380) (6,647)(a) General and
administrative (3,559) (419) Depreciation on non-income producing
assets, including headquarters building (3,895) - Interest income
2,599 2,200 Interest expense (270,970) (43,413) Income taxes
(14,980) 111 Preferred unit distributions (1,942) - --------------
-------------- FFO $148,473 $63,338 Equity in FFO of Unconsolidated
Properties 63,338 (63,338) -------------- -------------- Operating
Partnership FFO $211,811 $- ============== ============== Three
Months Ended September 30, 2004
-------------------------------------------- Consolidated
Unconsolidated Segment Retail and Other Properties Properties Basis
-------------- -------------- -------------- Property revenues:
Minimum rents $245,538 $68,316 $313,854 Tenant recoveries 111,570
30,925 142,495 Overage rents 9,386 1,406 10,792 Other, including
discontinued operations 13,544 1,561 15,105 --------------
-------------- -------------- Total property revenues 380,038
102,208 482,246 -------------- -------------- --------------
Property operating expenses: Real estate taxes 30,155 9,182 39,337
Repairs and maintenance 27,286 7,023 34,309 Marketing 12,370 3,152
15,522 Other property operating costs 51,072 11,835 62,907
Provision for doubtful accounts 2,591 665 3,256 --------------
-------------- -------------- Total property operating expenses
123,474 31,857 155,331 -------------- -------------- --------------
Real estate property net operating income 256,564 70,351 $326,915
============== Management and other fees 18,400 - Property
management and other costs (18,568) - Headquarters/regional costs
(3,063) (5,459)(a) General and administrative (2,078) (2,462)
Depreciation on non-income producing assets, including headquarters
building (3,069) - Interest income 336 467 Interest expense
(101,017) (22,037) Income taxes 350 - Preferred unit distributions
(8,487) - -------------- -------------- FFO 139,368 40,860 Equity
in FFO of Unconsolidated Properties 40,860 (40,860) --------------
-------------- Operating Partnership FFO $180,228 $- ==============
============== (a) Includes property management and other fees to
General Growth Management, Inc. and also, in 2005, the Rouse
Management Company, Inc. GENERAL GROWTH PROPERTIES, INC. PORTFOLIO
RESULTS AND FUNDS FROM OPERATIONS ("FFO") (In thousands)
----------------------------------------------------------------------
Nine Months Ended September 30, 2005
-------------------------------------------- Consolidated
Unconsolidated Segment Retail and Other Properties Properties Basis
-------------- -------------- -------------- Property revenues:
Minimum rents $1,249,439 $291,695 $1,541,134 Tenant recoveries
543,432 133,452 676,884 Overage rents 36,497 4,898 41,395 Other
81,918 49,376 131,294 -------------- -------------- --------------
Total property revenues 1,911,286 479,421 2,390,707 --------------
-------------- -------------- Property operating expenses: Real
estate taxes 156,252 41,743 197,995 Repairs and maintenance 145,892
30,943 176,835 Marketing 36,180 10,148 46,328 Other property
operating costs 294,669 89,091 383,760 Provision for doubtful
accounts 14,164 3,541 17,705 -------------- --------------
-------------- Total property operating expenses 647,157 175,466
822,623 -------------- -------------- -------------- Retail and
other net operating income 1,264,129 303,955 1,568,084
-------------- -------------- -------------- Master Planned
Communities Land sales 254,863 58,554 313,417 Land sales operations
(208,548) (43,212) (251,760) -------------- --------------
-------------- Master Planned Communities net operating income
46,315 15,342 61,657 -------------- -------------- --------------
Real estate property net operating income 1,310,444 319,297
$1,629,741 ============== Management and other fees 65,224 -
Property management and other costs (63,814) -
Headquarters/regional costs (49,422) (21,184)(a) General and
administrative (10,005) (1,236) Depreciation on non-income
producing assets, including headquarters building (10,274) -
Interest income 7,305 3,908 Interest expense (761,022) (113,035)
Income taxes (27,609) 111 Preferred unit distributions (19,675) -
-------------- -------------- FFO 441,152 187,861 Equity in FFO of
Unconsolidated Properties 187,861 (187,861) --------------
-------------- Operating Partnership FFO $629,013 $- ==============
============== Nine Months Ended September 30, 2004
-------------------------------------------- Consolidated
Unconsolidated Segment Retail and Other Properties Properties Basis
-------------- -------------- -------------- Property revenues:
Minimum rents $698,232 $198,462 $896,694 Tenant recoveries 319,264
93,476 412,740 Overage rents 23,168 3,426 26,594 Other, including
discontinued operations 36,547 5,105 41,652 --------------
-------------- -------------- Total property revenues 1,077,211
300,469 1,377,680 -------------- -------------- --------------
Property operating expenses: Real estate taxes 87,124 27,083
114,207 Repairs and maintenance 77,265 21,769 99,034 Marketing
33,325 9,732 43,057 Other property operating costs 141,048 39,538
180,586 Provision for doubtful accounts 7,940 1,920 9,860
-------------- -------------- -------------- Total property
operating expenses 346,702 100,042 446,744 --------------
-------------- -------------- Real estate property net operating
income 730,509 200,427 $930,936 ============== Management and other
fees 57,263 - Property management and other costs (55,652) -
Headquarters/regional costs (15,302) (16,668)(a) General and
administrative (7,080) (2,989) Depreciation on non-income producing
assets, including headquarters building (8,912) - Interest income
1,119 1,216 Interest expense (278,564) (65,275) Income taxes (40) -
Preferred unit distributions (29,097) - --------------
-------------- FFO 394,244 116,711 Equity in FFO of Unconsolidated
Properties 116,711 (116,711) -------------- --------------
Operating Partnership FFO $510,955 $- ============== ==============
(a) Includes property management and other fees to General Growth
Management, Inc. and also, in 2005, the Rouse Management Company,
Inc. GENERAL GROWTH PROPERTIES, INC. SUPPLEMENTAL DISCLOSURE OF
CERTAIN REVENUES AND EXPENSES REFLECTED IN FFO AND NOI (In
thousands)
----------------------------------------------------------------------
Three Months Ended Three Months Ended September 30, 2005 September
30, 2004 --------------------------- ---------------------------
Consolidated Unconsolidated Consolidated Unconsolidated Properties
Properties Properties Properties ------------ --------------
------------ -------------- Minimum rents: Above- and below- market
tenant leases, net $11,002 $3,358 $7,045 $1,912 Straight- line rent
18,725 3,826 3,679 1,155 Other property operating costs:
Below-market ground leases (2,716) (226) - - Real estate taxes:
Real estate tax stabilization agreement (1,005) - - - Interest
expense: Mark-to- market adjustments on debt 11,378 (2,663) 195 -
Amortization of deferred finance costs (2,624) (408) (3,292) (876)
Debt extinguishment costs 194(a) (1,476) - - Nine Months Ended Nine
Months Ended September 30, 2005 September 30, 2004
--------------------------- ---------------------------
Consolidated Unconsolidated Consolidated Unconsolidated Properties
Properties Properties Properties ------------ --------------
------------ -------------- Minimum rents: Above- and below- market
tenant leases, net $25,349 $12,540 $19,079 $5,615 Straight- line
rent 41,640 5,131 8,800 3,004 Other property operating costs:
Below-market ground leases (6,351) (534) - - Real estate taxes:
Real estate tax stabilization agreement (3,032) - - - Interest
expense: Mark-to- market adjustments on debt 37,783 (2,663) 601 -
Amortization of deferred finance costs (6,866) (1,916) (8,910)
(2,080) Debt extinguishment costs (4,419) (1,708) (6,187) (507) (a)
Includes write-off of mark-to-market adjustments on refinanced
debt. GENERAL GROWTH PROPERTIES, INC. RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (In thousands)
----------------------------------------------------------------------
Three Months Ended Nine Months Ended September 30, September 30,
----------------------- ----------------------- 2005 2004 2005 2004
----------- ----------- ----------- ----------- Reconciliation of
Real Estate Property Net Operating Income ("NOI") to GAAP Operating
Income Real estate property net operating income: Segment basis
$569,963 $326,915 $1,629,741 $930,936 Unconsolidated Properties
(111,506) (70,351) (319,297) (200,427) ----------- -----------
----------- ----------- Consolidated Properties 458,457 256,564
1,310,444 730,509 Management and other fees 22,409 18,400 65,224
57,263 Property management and other costs (20,266) (18,568)
(63,814) (55,652) Headquarters/regional costs (19,380) (3,063)
(49,422) (15,302) General and administrative (3,559) (2,078)
(10,005) (7,080) Depreciation and amortization (177,307) (82,027)
(513,691) (240,687) Discontinued operations and minority interest
in NOI of Consolidated Properties 448 (937) 1,293 (2,769)
----------- ----------- ----------- ----------- Operating Income
$260,802 $168,291 $740,029 $466,282 =========== ===========
=========== =========== Reconciliation of Funds From Operations
("FFO") to GAAP Net Income (Loss) FFO: Company stockholders
$172,905 $143,715 $512,054 $407,131 Operating Partnership
unitholders 38,906 36,513 116,959 103,824 ----------- -----------
----------- ----------- Operating Partnership 211,811 180,228
629,013 510,955 Depreciation and amortization of capitalized real
estate costs (217,275) (99,855) (615,153) (291,933) FFO of
discontinued operations - (1,387) - (4,054) Allocations to
Operating Partnership unitholders (1,370) (16,013) (4,977) (43,412)
----------- ----------- ----------- ----------- Income (loss) from
continuing operations (6,834) 62,973 8,883 171,556 Income from
discontinued operations, net of minority interest - 1,000 - 2,687
----------- ----------- ----------- ----------- Net income (loss)
$(6,834) $63,973 $8,883 $174,243 =========== ===========
=========== =========== Reconciliation of Equity in NOI of
Unconsolidated Properties to GAAP Equity in Income of
Unconsolidated Affiliates Equity in Unconsolidated Properties: NOI
$111,506 $70,351 $319,297 $200,427 Net interest expense (41,213)
(21,570) (109,127) (64,059) Headquarters and general and
administrative expenses (6,955) (7,921) (22,309) (19,657)
----------- ----------- ----------- ----------- FFO 63,338 40,860
187,861 116,711 Depreciation and amortization of capitalized real
estate costs (44,144) (21,174) (112,560) (60,941) -----------
----------- ----------- ----------- Equity in income of
unconsolidated affiliates $19,194 $19,686 $75,301 $55,770
=========== =========== =========== =========== Reconciliation of
Weighted Average Shares Outstanding Basic: Weighted average number
of shares outstanding - FFO per share 291,820 274,145 291,501
273,693 Conversion of Operating Partnership units (53,602) (55,540)
(54,202) (55,613) ----------- ----------- ----------- -----------
Weighted average number of Company shares outstanding - GAAP EPS
238,218 218,605 237,299 218,080 =========== =========== ===========
=========== Diluted: Weighted average number of shares outstanding
- FFO per share 292,842 274,838 292,280 274,372 Conversion of
Operating Partnership units (53,602) (55,540) (54,202) (55,613)
Anti-dilutive common stock equivalents for GAAP EPS (1,022) - - -
----------- ----------- ----------- ----------- Weighted average
number of Company shares outstanding - GAAP EPS 238,218 219,298
238,078 218,759 =========== =========== =========== =========== *T
GGP Inc. (NYSE:GGP)
Historical Stock Chart
From Jul 2024 to Jul 2024
GGP Inc. (NYSE:GGP)
Historical Stock Chart
From Jul 2023 to Jul 2024