General Growth Properties, Inc. (NYSE:GGP) announced today fourth
quarter and year-end 2005 results. For the fourth quarter of 2005,
earnings per share - diluted ("EPS") were $.28 and fully diluted
Funds From Operations ("FFO") per share were $.91. In the fourth
quarter of 2004, we reported $.41 of EPS and $.90 of FFO per share.
The 2005 fourth quarter FFO per share represents a 1.1% increase
over the amount reported in the comparable period of 2004. For the
full year, EPS was $.32 in 2005 as compared to $1.21 in 2004. FFO
per share for the full year 2005 were $3.06 as compared to $2.77
for the full year 2004, a 10.5% increase. Total year 2005 FFO per
share results of $3.06 are $.10 less than our previously issued FFO
guidance for 2005. The Company will discuss the reasons for this
variance, none of which indicate a current or future weakness in
core property performance, in its February 22, 2006 conference call
regarding this earnings announcement. Items that will be more fully
described are income taxes and land sale margins in the Master
Planned Communities segment, estimates of seasonal income,
corporate overhead costs, pre-development costs and higher interest
expense (attributable to changes in refinancing expectations and
the timing of development expenditures, rather than due to higher
interest rates). "In 2005, our core retail properties and Master
Planned Communities continued to perform well," the Chief Executive
Officer of General Growth Properties, Inc., John Bucksbaum stated."
Our retail tenant sales per square foot, our occupancies and our
average rents are at record levels and we look forward to the
contributions we expect from our substantial new development and
redevelopment projects currently underway." -0- *T FINANCIAL AND
OPERATIONAL HIGHLIGHTS -- EPS in the fourth quarter of 2005 were
$.28 versus $.41 in the comparable period of 2004. Depreciation and
amortization expense in the fourth quarter of 2005 was $165.8
million or $.69 per share versus $124.2 million or $.55 per share
in 2004 (all amounts before minority interest allocation). -- FFO
per share increased to $.91 in the fourth quarter of 2005, 1.1%
above the $.90 reported in the fourth quarter of 2004. Total Funds
From Operations for the quarter increased 4.5% to $266.8 million,
from $255.2 million in the fourth quarter of 2004. The effects of
non-cash rental revenue recognized pursuant to SFAS No. 141 and 142
resulted in approximately $11.2 million or $.04 of FFO per share in
the fourth quarter of 2005 and $9.8 million or $0.03 per share in
the comparable period of 2004. Straight-line rents were a negative
$9.8 million or a $.03 reduction of FFO per share in the fourth
quarter of 2005 versus a positive $7.3 million or $.03 per share in
the same period of 2004 partially due to changes in 2005 in the
third and fourth quarter recognition of straight-line rent
attributable to tenants with leases of less than one year and also
due to the increases recognized in 2004 due to the significant
acquisitions made in such year. FFO per share for the fourth
quarter of 2005 was also significantly impacted by the provision
for income taxes (primarily deferred) which was $23.0 million or
$.08 of FFO per share as compared to $2.3 million or less than $.01
of FFO per share in the fourth quarter of 2004. -- FFO Guidance for
fiscal year 2006 is currently estimated to be in the range of $3.27
to $3.37 per share, or approximately 7% to 10% greater than actual
2005 FFO of $3.06 per share. We expect to periodically update our
FFO guidance for fiscal year 2006 in subsequent earnings releases.
SEGMENT RESULTS Retail and Other Segment -- Real estate property
net operating income ("NOI") from consolidated properties for the
fourth quarter of 2005 increased to $481.0 million, 18.9% above the
$404.4 million reported in the fourth quarter of 2004. -- Revenues
from consolidated properties were $709.5 million for the quarter,
an increase of 23.2% compared to $576.1 million for the same period
in 2004. Revenues from unconsolidated properties, at the Company's
ownership share, for the quarter increased 13.7% to $179.5 million,
compared to $157.9 million in the fourth quarter of 2004. -- Total
tenant sales and comparable tenant sales, both on a trailing 12
month basis at December 31, 2005, increased 6.4% and 3.5%,
respectively, compared to the same period last year. -- Comparable
NOI from consolidated properties in the fourth quarter and the full
year 2005 increased nominally and 2.6%, respectively, from the same
periods last year. Comparable NOI from unconsolidated properties,
at the Company's ownership share, for the fourth quarter and the
full year 2005 increased by 7.0% and 10.5%, respectively, compared
to the same periods last year. -- Retail Center occupancy was 92.5%
at December 31, 2005, compared to 92.1% at December 31, 2004. --
Sales per square foot for fourth quarter 2005 were $437 versus $410
in the fourth quarter of 2004. -- Average rent For consolidated
properties, average rent per square foot for new/renewal leases
signed during 2005 was $37.72 versus $33.53 during 2004. For
unconsolidated properties, average rent per square foot for
new/renewal leases signed during 2005 was $40.48 versus $36.45
during 2004. Average rent for consolidated properties leases that
expired in 2005 was $29.63 versus $25.69 in all of 2004. For
unconsolidated properties, average rent for leases that expired in
2005 was $32.31 compared to $32.35 in all of 2004. Master Planned
Communities Segment -- General Growth's operation of the properties
within the Master Planned Communities segment commenced with The
Rouse Company acquisition on November 12, 2004. Accordingly, the
Company's operating results for the three and twelve months ended
December 31, 2004 only includes six weeks of operations of the
properties within the Master Planned Communities segment subsequent
to the acquisition date. -- NOI for the three months ended December
31, 2005 was $27.1 million for consolidated properties and $6.8
million for unconsolidated properties. Substantially all of the
Company's 2005 income taxes were attributable to the Master Planned
Communities segment. Comparisons of 2005 NOI to the NOI produced in
2004 for the properties within the Master Planned Communities
segment as owned and operated by The Rouse Company have not been
made due to the effects of purchase price accounting and operating
and expense allocation changes. -- Land sale revenues for the three
months ended December 31, 2005 were $130.3 million for consolidated
properties and $24.9 million for unconsolidated properties. For the
year ended December 31, 2005, segment revenues were $468.3 million,
approximately a 8% increase over the revenues achieved for these
properties by The Rouse Company in the year ended December 31,
2004. -- Net cash flow generated from the Master Planned
Communities segment for the year ended December 31, 2005 was
approximately $152.9 million. *T DEVELOPMENT ACTIVITIES The Company
has six retail center development projects currently under
construction: Lincolnshire Commons in Lincolnshire (Chicago),
Illinois, Otay Ranch Town Center in Chula Vista (San Diego),
California, Gateway Overlook in Benson, Maryland, Natick West in
Natick, Massachusetts, The Shops at Fallen Timbers, Maumee
(Toledo), Ohio, and Pinnacle Hills Promenade in Rogers, Arkansas,
all of which are scheduled to open in late 2006 or 2007. In
addition, the Company has agreed to acquire the new retail
development at The Palazzo in Las Vegas, Nevada, upon opening. This
is currently expected in late 2007, at an estimated acquisition
cost of $600 million. The Company also has 11 other potential new
retail or mixed-use developments that are projected to open in 2006
through 2009. As of December 31, 2005, the Company had 22
redevelopment projects underway (each with budgeted projected
expenditures, at our ownership share, in excess of $10 million).
The Company's total projected expenditures for the 22 redevelopment
projects and the six new retail center development projects under
construction (described above) were approximately $2.0 billion as
of December 31, 2005. Such development and re-development
expenditures, together with expenditures for the 11 other potential
new retail or mixed-use developments mentioned above, are expected
to result in approximately $450 to $500 million of expenditures per
year for the years 2006 to 2009. CONFERENCE CALL/WEBCAST The
Company will host a live Webcast of its conference call regarding
this announcement on its website, www.generalgrowth.com. This
Webcast will take place on Wednesday, February 22, 2006, 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") based upon market
capitalization. The Company currently has an ownership interest in
or management responsibility for a portfolio of 200 regional
shopping malls in 44 states, as well as ownership in master 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
www.generalgrowth.com. BASIS OF REPORTING "Consolidated Properties"
include all properties which are consolidated for financial
reporting purposes. "Unconsolidated Properties" include properties
which are owned through joint venture arrangements and
unconsolidated for financial reporting 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 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 practices 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 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 Properties.
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 the 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 (rental income (including
straight-line rent), land sales, tenant recoveries and other
income) less property and related expenses (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 that of other REITs. Since NOI excludes general and
administrative expenses, interest expense, depreciation and
amortization, provision for income taxes and 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 management's computation of NOI, a reconciliation of
NOI to income from operations as computed in accordance with GAAP
is presented. COMPARABLE NOI Comparable NOI excludes from both
periods the NOI of properties with significant physical or
merchandising changes and those properties acquired or opened
during the relevant comparative accounting periods. Management
believes that Comparable NOI for the full year is a better
indicator of year over year growth as it mitigates the effect of
the previously mentioned changes in the third and fourth quarter
recognition of straight-line rent from short-term leases of less
than one year. FORWARD LOOKING STATEMENTS This press release
contains forward-looking statements, including guidance with
respect to our currently estimated 2006 FFO. Actual results may
differ materially from the future operations 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, land sales in the Master Planned Communities
segment, the cost and success of our development and redevelopment
projects and our ability to manage our growth. Readers are referred
to the documents filed by General Growth Properties, Inc. with the
SEC, specifically the most recent reports on Form 10-K and 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 Twelve Months Ended December 31, December 31,
----------------------- ----------------------- 2005 2004 2005 2004
----------- ----------- ----------- ----------- Funds From
Operations ("FFO") (1) Company stockholders $218,056 $205,043
$730,002 $611,817 Operating Partnership unitholders 48,738 50,166
166,003 154,347 ----------- ----------- ----------- -----------
Operating Partnership $266,794 $255,209 $896,005 $766,164
=========== =========== =========== =========== FFO per share:
Company stockholders - basic $0.91 $0.91 $3.07 $2.78 Operating
Partnership - basic 0.91 0.91 3.07 2.78 Operating Partnership -
diluted 0.91 0.90 3.06 2.77 Increase in diluted FFO over comparable
prior year period 1.1% 15.8% 10.5% 19.2% Dividends Dividends paid
per share $0.41 $0.36 $1.49 $1.26 Payout ratio (% of diluted FFO
paid out) 45.1% 40.0% 48.7% 45.5% Portfolio Results (1) Real estate
property net operating income: Retail and Other: Consolidated
$480,969 $404,395 $1,739,411 $1,134,904 Unconsolidated 116,091
94,561 415,285 294,988 Master Planned Communities: Consolidated
27,075 2,543 73,390 2,543 Unconsolidated 6,775 (55) 22,263 (55)
----------- ----------- ----------- ----------- Real estate
property net operating income 630,910 501,444 2,250,349 1,432,380
Net property management fees and costs 10,334 7,242 12,527 8,853
Headquarters/ regional costs, general and administrative and
depreciation on non-income producing assets (31,387) (16,438)
(95,966) (47,732) Net interest expense (267,089) (191,513)
(1,020,825) (468,958) Income taxes (23,037) (2,343) (50,646)
(2,383) Equity in other FFO of Unconsolidated Properties (48,494)
(34,703) (175,317) (118,419) Preferred unit distributions (4,443)
(8,480) (24,117) (37,577) ----------- ----------- -----------
----------- FFO - Operating Partnership $266,794 $255,209 $896,005
$766,164 =========== =========== =========== =========== (1)
Certain amounts within categories of real estate property net
operating income and other items included in or excluded from of
FFO for prior periods in 2005 have been reclassified to conform to
the current period presentation, resulting in a year-to-date
September 2005 FFO increase of approximately $198. Weighted average
number of Company shares outstanding: Basic 238,784 226,312 237,673
220,149 Diluted 239,736 227,200 238,469 220,829 Assuming full
conversion of Operating Partnership units: Basic 292,155 281,845
291,720 275,742 Diluted 293,107 282,733 292,516 276,422 Selected
Balance Sheet December 31, December 31, Information 2005 2004
------------- ------------- Cash and cash equivalents $42,587
$39,581 Investment in real estate: Net land, buildings and
equipment $19,547,173 $19,657,322 Developments in progress 362,172
559,969 Investment in and loans to/from Unconsolidated Real Estate
Affiliates 1,806,367 1,945,541 Investment land and land held for
development and sale 1,636,684 1,638,013 -------------
------------- Net investment in real estate $23,352,396 $23,800,845
============= ============= Total assets $25,150,942 $25,718,625
============= ============= Mortgage and other property debt
payable $20,414,778 $20,310,947 Minority interest - Preferred
205,944 403,161 Minority interest - Common 430,292 551,282
Stockholders' equity 1,932,918 2,143,150 -------------
------------- Total capitalization (at cost) $22,983,932
$23,408,540 ============= ============= Consolidated Unconsolidated
Properties Properties (a) ---------------------------
------------------------ Average Average Outstanding Interest
Outstanding Interest Summarized Debt Balance Rate (d) Balance Rate
(d) Information ------------ -------- ------------ -------- Fixed
rate (c) $14,505,865 5.49 % $2,787,285 5.45 % Variable rate (c)
5,630,054 6.04 455,584 6.21 ------------ -------- ------------
-------- Totals $20,135,919 (b) 5.64 % $3,242,869 5.56 %
============ ======== ============ ======== (a) Reflects the
Company's share of debt relating to the properties owned by the
Unconsolidated Real Estate Affiliates. (b) Excludes special
improvement districts liability of $68.2 million, minority interest
adjustment of $67.9 million and purchase accounting mark-to-market
adjustment of $142.8 million. (c) Includes the effects of swaps.
(d) Excludes the effect of deferred finance costs.
----------------------------------------------------------------------
GENERAL GROWTH PROPERTIES, INC. CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per share amounts)
----------------------------------------------------------------------
Three Months Ended Twelve Months Ended December 31, December 31,
------------------- ----------------------- 2005 2004 2005 2004
--------- --------- ----------- ----------- Revenues: Minimum rents
$438,394 $360,313 $1,670,387 $1,058,732 Tenant recoveries 201,775
154,046 754,836 472,250 Overage rents 33,132 30,937 69,628 54,105
Land sales 130,341 68,643 385,205 68,643 Management and other fees
24,817 25,633 91,734 82,896 Other 33,717 29,178 101,626 63,255
--------- --------- ----------- ----------- Total revenues 862,176
668,750 3,073,416 1,799,881 --------- --------- -----------
----------- Expenses: Real estate taxes 51,182 40,991 206,193
128,114 Repairs and maintenance 53,809 45,986 195,292 123,251
Marketing 20,267 14,895 63,522 48,220 Other property operating
costs 103,535 67,433 390,019 207,909 Land sales operations 103,266
66,100 311,815 66,100 Provision for doubtful accounts (298) 2,435
13,868 10,375 Property management and other costs 39,176 29,313
148,399 100,267 General and administrative 3,048 2,419 13,053 9,499
Depreciation and amortization 165,816 124,167 672,914 364,854
--------- --------- ----------- ----------- Total expenses 539,801
393,739 2,015,075 1,058,589 --------- --------- -----------
----------- Operating income 322,375 275,011 1,058,341 741,292
Interest income 3,130 2,108 10,416 3,227 Interest expense (270,219)
(193,621) (1,031,241) (472,185) Income taxes (23,037) (2,343)
(50,646) (2,383) Income allocated to minority interests (20,015)
(32,263) (43,989) (105,274) Equity in income of unconsolidated
affiliates 47,733 32,421 120,986 88,191 --------- ---------
----------- ----------- Income from continuing operations 59,967
81,313 63,867 252,868 Discontinued operations, net of minority
interest Income from operations 1,585 1,125 6,568 3,813 Gain on
disposition 5,118 11,171 5,118 11,171 --------- ---------
----------- ----------- Total discontinued operations, net 6,703
12,296 11,686 14,984 --------- --------- ----------- -----------
Net income $66,670 $93,609 $75,553 $267,852 ========= =========
=========== =========== Basic earnings per share: Continuing
operations $0.25 $0.35 $0.27 $1.15 Discontinued operations 0.03
0.06 0.05 0.07 --------- --------- ----------- ----------- Total
basic earnings per share $0.28 $0.41 $0.32 $1.22 =========
========= =========== =========== Diluted earnings per share:
Continuing operations $0.25 $0.35 $0.27 $1.15 Discontinued
operations 0.03 0.06 0.05 0.06 --------- --------- -----------
----------- Total diluted earnings per share $0.28 $0.41 $0.32
$1.21 ========= ========= =========== ===========
----------------------------------------------------------------------
GENERAL GROWTH PROPERTIES, INC. PORTFOLIO RESULTS AND FUNDS FROM
OPERATIONS ("FFO") (In thousands)
----------------------------------------------------------------------
Three Months Ended December 31, 2005
------------------------------------------ Consolidated
Unconsolidated Segment Retail and Other Properties Properties Basis
------------- ------------- -------------- Property revenues:
Minimum rents $438,394 $104,657 $543,051 Tenant recoveries 201,775
49,501 251,276 Overage rents 33,132 9,285 42,417 Other, including
discontinued operations 36,163 16,065 52,228 -------------
------------- -------------- Total property revenues 709,464
179,508 888,972 ------------- ------------- -------------- Property
operating expenses: Real estate taxes 51,182 14,116 65,298 Repairs
and maintenance 53,809 12,657 66,466 Marketing 20,267 4,565 24,832
Other property operating costs 103,535 30,753 134,288 Provision for
doubtful accounts (298) 1,326 1,028 ------------- -------------
-------------- Total property operating expenses 228,495 63,417
291,912 ------------- ------------- -------------- Retail and other
net operating income 480,969 116,091 597,060 -------------
------------- -------------- Master Planned Communities Land sales
130,341 24,896 155,237 Land sales operations (103,266) (18,121)
(121,387) ------------- ------------- -------------- Master Planned
Communities net operating income 27,075 6,775 33,850 -------------
------------- -------------- Real estate property net operating
income 508,044 122,866 $630,910 ============== Management and other
fees 24,817 - Property management and other costs (14,483) -
Headquarters/regional costs (24,693) (8,405)(a) General and
administrative (3,048) (376) Depreciation on non-income producing
assets, including headquarters building (3,646) - Interest income
3,130 3,352 Interest expense (270,219) (42,912) Income taxes
(23,037) (153) Preferred unit distributions (4,443) - -------------
------------- FFO $192,422 $74,372 Equity in FFO of Unconsolidated
Properties 74,372 (74,372) ------------- ------------- Operating
Partnership FFO $266,794 $- ============= ============= Three
Months Ended December 31, 2004
------------------------------------------ Consolidated
Unconsolidated Segment Retail and Other Properties Properties Basis
------------- ------------- -------------- Property revenues:
Minimum rents $360,313 $94,713 $455,026 Tenant recoveries 154,046
42,085 196,131 Overage rents 30,937 7,534 38,471 Other, including
discontinued operations 30,838 13,589 44,427 -------------
------------- -------------- Total property revenues 576,134
157,921 734,055 ------------- ------------- -------------- Property
operating expenses: Real estate taxes 40,990 12,463 53,453 Repairs
and maintenance 45,986 11,381 57,367 Marketing 14,895 3,619 18,514
Other property operating costs 67,433 35,051 102,484 Provision for
doubtful accounts 2,435 846 3,281 ------------- -------------
-------------- Total property operating expenses 171,739 63,360
235,099 ------------- ------------- -------------- Retail and other
net operating income 404,395 94,561 498,956 -------------
------------- -------------- Master Planned Communities Land sales
68,643 37,170 105,813 Land sales operations (66,100) (37,225)
(103,325) ------------- ------------- -------------- Master Planned
Communities net operating income 2,543 (55) 2,488 -------------
------------- -------------- Real estate property net operating
income 406,938 94,506 $501,444 ============== Management and other
fees 25,633 - Property management and other costs (18,391) -
Headquarters/regional costs (10,922) (6,458)(a) General and
administrative (2,419) (539) Depreciation on non-income producing
assets, including headquarters building (3,097) - Interest income
2,108 827 Interest expense (193,621) (28,357) Income taxes (2,343)
(176) Preferred unit distributions (8,480) - -------------
------------- FFO 195,406 59,803 Equity in FFO of Unconsolidated
Properties 59,803 (59,803) ------------- ------------- Operating
Partnership FFO $255,209 $- ============= ============= (a)
Includes property management and other fees to General Growth
Management, Inc. and also, subsequent to November 12, 2004, Rouse
Property Management, Inc.
----------------------------------------------------------------------
GENERAL GROWTH PROPERTIES, INC. PORTFOLIO RESULTS AND FUNDS FROM
OPERATIONS ("FFO") (In thousands)
----------------------------------------------------------------------
Twelve Months Ended December 31, 2005
------------------------------------------ Consolidated
Unconsolidated Segment Retail and Other Properties Properties Basis
------------- ------------- -------------- Property revenues:
Minimum rents $1,670,387 $393,740 $2,064,127 Tenant recoveries
754,836 181,193 936,029 Overage rents 69,628 14,085 83,713 Other,
including discontinued operations 113,454 64,803 178,257
------------- ------------- -------------- Total property revenues
2,608,305 653,821 3,262,126 ------------- -------------
-------------- Property operating expenses: Real estate taxes
206,193 55,138 261,331 Repairs and maintenance 195,292 43,313
238,605 Marketing 63,522 14,705 78,227 Other property operating
costs 390,019 120,523 510,542 Provision for doubtful accounts
13,868 4,857 18,725 ------------- ------------- --------------
Total property operating expenses 868,894 238,536 1,107,430
------------- ------------- -------------- Retail and other net
operating income 1,739,411 415,285 2,154,696 -------------
------------- -------------- Master Planned Communities Land sales
385,205 83,089 468,294 Land sales operations (311,815) (60,826)
(372,641) ------------- ------------- -------------- Master Planned
Communities net operating income 73,390 22,263 95,653 -------------
------------- -------------- Real estate property net operating
income 1,812,801 437,548 $2,250,349 ============== Management and
other fees 91,734 - Property management and other costs (79,207) -
Headquarters/regional costs (69,192) (29,492)(a) General and
administrative (13,053) (1,613) Depreciation on non-income
producing assets, including headquarters building (13,721) -
Interest income 10,416 7,233 Interest expense (1,031,241) (151,362)
Income taxes (50,646) (83) Preferred unit distributions (24,117) -
------------- ------------- FFO $633,774 $262,231 Equity in FFO of
Unconsolidated Properties 262,231 (262,231) -------------
------------- Operating Partnership FFO $896,005 $- =============
============= Twelve Months Ended December 31, 2004
------------------------------------------ Consolidated
Unconsolidated Segment Retail and Other Properties Properties Basis
------------- ---------------------------- Property revenues:
Minimum rents $1,058,732 $293,175 $1,351,907 Tenant recoveries
472,250 135,561 607,811 Overage rents 54,105 10,960 65,065 Other,
including discontinued operations 67,686 18,694 86,380
------------- ------------- -------------- Total property revenues
1,652,773 458,390 2,111,163 ------------- -------------
-------------- Property operating expenses: Real estate taxes
128,114 39,546 167,660 Repairs and maintenance 123,251 33,150
156,401 Marketing 48,220 13,351 61,571 Other property operating
costs 207,909 74,589 282,498 Provision for doubtful accounts 10,375
2,766 13,141 ------------- ------------- -------------- Total
property operating expenses 517,869 163,402 681,271 -------------
------------- -------------- Retail and other net operating income
1,134,904 294,988 1,429,892 ------------- -------------
-------------- Master Planned Communities Land sales 68,643 37,170
105,813 Land sales operations (66,100) (37,225) (103,325)
------------- ------------- -------------- Master Planned
Communities net operating income 2,543 (55) 2,488 -------------
------------- -------------- Real estate property net operating
income 1,137,447 294,933 $1,432,380 ============== Management and
other fees 82,896 - Property management and other costs (74,043) -
Headquarters/regional costs (26,224) (23,126)(a) General and
administrative (9,499) (3,528) Depreciation on non-income producing
assets, including headquarters building (12,009) - Interest income
3,227 2,043 Interest expense (472,185) (93,632) Income taxes
(2,383) (176) Preferred unit distributions (37,577) - -------------
------------- FFO 589,650 176,514 Equity in FFO of Unconsolidated
Properties 176,514 (176,514) ------------- ------------- Operating
Partnership FFO $766,164 $- ============= ============= (a)
Includes property management and other fees to General Growth
Management, Inc. and also, subsequent to November 12, 2004, Rouse
Property Management, Inc.
----------------------------------------------------------------------
GENERAL GROWTH PROPERTIES, INC. SUPPLEMENTAL DISCLOSURE OF CERTAIN
REVENUES AND EXPENSES REFLECTED IN FFO (In thousands)
----------------------------------------------------------------------
Three Months Ended Three Months Ended December 31, 2005 December
31, 2004 --------------------------- ---------------------------
Consolidated Unconsolidated Consolidated Unconsolidated Properties
Properties Properties Properties ------------ --------------
------------ -------------- Minimum rents: Above- and below-market
tenant leases, net $9,056 $2,136 $8,461 $1,324 Straight-line rent
(7,886) (1,930) 6,010 1,292 Other property operating costs: Above-
and below-market ground leases, net (1,362) (136) (1,059) (73) Real
estate taxes: Real estate tax stabilization agreement (1,005) -
(654) - Interest expense: Mark-to-market adjustments on debt 10,840
862 425 79 Amortization of deferred finance costs (2,632) (218)
(1,829) (575) Debt extinguishment costs (425) (400) (9,712) (115)
Provision for income taxes (primarily deferred) (23,037) (153)
(2,343) (176) Twelve Months Ended Twelve Months Ended December 31,
200 December 31, 2004 ---------------------------
--------------------------- Consolidated Unconsolidated
Consolidated Unconsolidated Properties Properties Properties
Properties ------------ -------------- ------------ --------------
Minimum rents: Above- and below-market tenant leases, net $34,692
$7,064 $27,540 $6,939 Straight-line rent 32,728 10,517 14,810 4,296
Other property operating costs: Above- and below-market ground
leases, net (6,646) (362) (1,059) (73) Real estate taxes: Real
estate tax stabilization agreement (4,037) - (654) - Interest
expense: Mark-to-market adjustments on debt 47,015 4,484 1,026 79
Amortization of deferred finance costs (9,499) (2,134) (10,739)
(2,655) Debt extinguishment costs (4,844) (2,109) (15,899) (622)
Provision for income taxes (primarily deferred) (50,646) (83)
(2,383) (176) All amounts exclude discontinued operations.
----------------------------------------------------------------------
GENERAL GROWTH PROPERTIES, INC. RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (In thousands)
----------------------------------------------------------------------
Three Months Ended Twelve Months Ended December 31, December 31,
----------------------- ------------------------ 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 $630,910 $501,444 $2,250,349 $1,432,380
Unconsolidated Properties (122,866) (94,506) (437,548) (294,933)
----------- ----------- ----------- ------------ Consolidated
Properties 508,044 406,938 1,812,801 1,137,447 Management and other
fees 24,817 25,633 91,734 82,896 Property management and other
costs (14,483) (18,391) (79,207) (74,043) Headquarters/regional
costs (24,693) (10,922) (69,192) (26,224) General and
administrative (3,048) (2,419) (13,053) (9,499) Depreciation and
amortization (165,816) (124,167) (672,914) (364,854) Discontinued
operations and minority interest in NOI of Consolidated Properties
(2,446) (1,661) (11,828) (4,431) ----------- -----------
----------- ------------ Operating Income $322,375 $275,011
$1,058,341 $741,292 =========== =========== ===========
============ Reconciliation of Funds From Operations ("FFO") to
GAAP Net Income FFO: Company stockholders $218,056 $205,043
$730,002 $611,817 Operating Partnership unitholders 48,738 50,166
166,003 154,347 ----------- ----------- ----------- ------------
Operating Partnership 266,794 255,209 896,005 766,164 Depreciation
and amortization of capitalized real estate costs (188,530)
(148,174) (799,337) (440,108) FFO of discontinued operations
(2,873) (2,181) (13,548) (6,235) Allocations to Operating
Partnership unitholders (15,424) (23,541) (19,253) (66,953)
----------- ----------- ----------- ------------ Income from
continuing operations 59,967 81,313 63,867 252,868 Income from
discontinued operations, net of minority interest 6,703 12,296
11,686 14,984 ----------- ----------- ----------- ------------ Net
income $66,670 $93,609 $75,553 $267,852 =========== ===========
=========== ============ Reconciliation of Equity in NOI of
Unconsolidated Properties to GAAP Equity in Income of
Unconsolidated Affiliates Equity in Unconsolidated Properties: NOI
$122,866 $94,506 $437,548 $294,933 Net interest expense (39,560)
(27,530) (144,129) (91,589) Headquarters, general and
administrative and income taxes (8,934) (7,173) (31,188) (26,830)
----------- ----------- ----------- ------------ FFO 74,372 59,803
262,231 176,514 Depreciation and amortization of capitalized real
estate costs (26,639) (27,382) (141,245) (88,323) -----------
----------- ----------- ------------ Equity in income of
unconsolidated affiliates $47,733 $32,421 $120,986 $88,191
=========== =========== =========== ============ Reconciliation of
Weighted Average Shares Outstanding Basic: Weighted average number
of shares outstanding - FFO per share 292,155 281,845 291,720
275,742 Conversion of Operating Partnership units (53,371) (55,533)
(54,047) (55,593) ----------- ----------- ----------- ------------
Weighted average number of Company shares outstanding - GAAP EPS
238,784 226,312 237,673 220,149 =========== =========== ===========
============ Diluted: Weighted average number of shares outstanding
- FFO per share 293,107 282,733 292,516 276,422 Conversion of
Operating Partnership units (53,371) (55,533) (54,047) (55,593)
----------- ----------- ----------- ------------ Weighted average
number of Company shares outstanding - GAAP EPS 239,736 227,200
238,469 220,829 =========== =========== =========== ============ *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