CHICAGO, Nov. 9, 2011 /PRNewswire/ -- General Growth
Properties, Inc. (NYSE: GGP) (“GGP” or the “Company”) today
reported financial and operating results for the three and nine
months ended September 30, 2011.
The Company reported Core Funds From Operations (“Core FFO”) of
$224.2 million, or $0.23 per diluted share, for the third quarter of
2011. Core FFO for the third quarter of 2010 was $223.2 million.
Net income attributable to common stockholders for the third
quarter of 2011 was $252.1 million.
After taking into account the dilutive effects of warrant
adjustments, the per diluted share net loss attributable to common
stockholders for the third quarter of 2011 was $0.08. Net loss attributable to common
stockholders for the third quarter of 2010 was $231.2 million.
Sandeep Mathrani, GGP’s chief
executive officer commented, “We are 10 months into a long-term
strategy of driving value from our existing portfolio through
increasing occupancy and lease spreads, along with mining
development opportunities. The strategy is yielding positive
operating results and we anticipate it will continue for the fourth
quarter and beyond.”
OPERATIONAL HIGHLIGHTS
- Comparable tenant sales increased 7.8% to $471 per square foot, on a trailing 12 month
basis, as compared to the same period last year. Comparable tenant
sales have now increased for seven consecutive quarters.
- Regional mall percentage leased increased 40 basis points to
92.7% at September 30, 2011, compared
to the prior year.
- The initial rent on leases executed in 2011 was $63.71 per square foot, up 6.7% or $4.03 per square foot as compared to the expiring
rent on comparable leases, including all spaces larger than 10,000
square feet.
- Core Net Operating Income (“Core NOI”), for the three months
ended September 30, 2011, increased
2.4% compared to the same period last year.
CAPITAL MARKETS ACTIVITY
- During the third quarter of 2011, GGP completed the refinancing
of mortgage debt related to two malls representing $412 million of new fixed-rate mortgages at a
weighted average interest rate of 4.78% and an average term of more
than 11 years. The new loans extended the term to maturity by
7.4 years and lowered the average interest rate by 140 basis
points.
- Subsequent to the end of the third quarter, GGP has completed
$1.3 billion ($610 million at GGP’s share) of refinancings at a
weighted average interest rate of 4.62% as compared to 5.74% of the
prior loans. On November 8,
2011, the Company completed the refinancing of its mortgage
debt at Park Meadows in Denver
with a new fixed-rate mortgage of $360
million ($126 million at GGP’s
share) and a term of 12 years. The new non-recourse mortgage has an
interest rate of 4.60% as compared to the 5.96% rate of the prior
loan.
- Year-to-date, GGP has completed nearly $4.2 billion ($3.2
billion at GGP’s share) of new property level non-recourse
financings with a weighted average term of 10.1 years and an
interest rate of 5.06%. These mortgages replace $3.6 billion ($2.6
billion at GGP’s share) of financings that had a weighted
average term of 2.2 years and an interest rate of 5.83%.
- During the quarter, the Company bought back $55.2 million of GGP common stock at an average
purchase price of $12.77 per
share.
- As of September 30, 2011, the
Company had $1.4 billion of
liquidity, comprised of unrestricted cash and undrawn capacity on
the Company’s revolving credit facility.
ACQUISITION AND DISPOSITION ACTIVITY
- During the third quarter of 2011, GGP entered into a newly
formed joint venture with the Canada Pension Plan Investment Board
(“CPPIB”) that acquired Plaza Frontenac, a 482,000 square foot
high-end luxury center in St. Louis,
MO, for $136 million. In
exchange for the Company’s contribution of St. Louis Galleria into
the new joint venture, GGP received a 55% interest in Plaza
Frontenac and a 74% interest in St. Louis Galleria.
- In the three months ended September 30,
2011, GGP purchased the anchor space, totaling 160,000
square feet, currently occupied by Neiman
Marcus at Fashion Show in Las
Vegas for $30 million.
- During the third quarter, GGP sold the office and garage
components of Westlake Center in Seattle for $119
million; while Riverside Plaza, a retail strip center in
Provo, UT, sold for $21 million.
- Subsequent to quarter end, the Company sold Faneuil Hall
Marketplace in Boston for
$140 million.
- The Company has sold 14 assets for total proceeds of
$662 million to date in 2011.
With these transactions, GGP eliminated from its balance
sheet approximately $163 million of
mortgage related debt associated with these properties.
DEVELOPMENT ACTIVITY
- For the nine months ending September 30,
2011, the Company opened 17 new anchor/big boxes across its
nationwide regional mall portfolio. In total, GGP expects to open
28 anchor/big boxes in 2011 totaling approximately 924,000 square
feet, including Crate and Barrel, Nordstrom
Rack, Bed, Bath & Beyond, Cabela’s, Kohl’s, H.H. Greg,
LL Bean and Ulta. In addition, the Company currently is
scheduled to open 10 anchor/big boxes totaling approximately
430,000 square feet in 2012.
- Year-to-date, the Company has opened three department stores
totaling approximately 402,000 square feet – two Nordstrom and one
Von Maur. GGP has an
additional two department stores totaling approximately 375,000
square feet scheduled to open in 2012 and 2013. They include
Von Maur and Bloomingdale’s.
COMMON SHARE DIVIDEND
- On November 7, 2011, the Board of
Directors of the Company declared a quarterly common share dividend
of $0.10 per share to shareholders of
record at the close of business on December
30, 2011, payable on January 13,
2012.
2011 GUIDANCE
- The Company's guidance for full year 2011 Core FFO is estimated
to be in the range of $0.93 to $0.95
per diluted share. The following table provides a
reconciliation of the range of estimated diluted net income
attributable to common shareholders per share to diluted FFO per
share and diluted Core FFO per share.
2011 Guidance, at
share
|
|
|
|
(In thousands, except per
share)
|
For the year
ended December 31, 2011 (1)
|
|
|
Low End
|
High End
|
|
|
Per Share
|
Per Share
|
|
|
|
|
|
Estimated Net Income
Attributable to common shareholders
|
$0.05
|
$0.07
|
|
Depreciation including the
Company's share of joint ventures
|
1.18
|
1.18
|
|
Gain / loss on sales of
investment properties
|
(0.01)
|
(0.01)
|
|
Impact of Dilutive
Securities
|
(0.02)
|
(0.02)
|
|
FFO
|
$1.20
|
$1.22
|
|
Warrant Adjustment
(2)
|
(0.32)
|
(0.32)
|
|
Other Core FFO Adjustments
(3)
|
0.05
|
0.05
|
|
Core FFO
|
$0.93
|
$0.95
|
|
|
|
|
(1)
|
Includes the results of Rouse
Properties, Inc. for the year ended December 31, 2011.
|
|
(2)
|
Represents warrant adjustment
for the nine months ended September 30, 2011.
|
|
(3)
|
Refer to page 7 of the third
quarter 2011 Supplemental Information package for the nature of
adjustments to reconcile FFO to Core FFO. The third quarter 2011
Supplemental Information package is available in the Investor
Relations section of the Company’s website at www.ggp.com.
|
|
|
|
- The 2011 guidance reflects management's view of current and
future market conditions, including assumptions with respect to
rental rates, occupancy levels and the earnings impact of the
events referenced in this release and previously disclosed. The
guidance also reflects management's view of future capital market
conditions, which is generally consistent with the current forward
rates for LIBOR and U.S. Treasury bonds. The estimates do not
include possible future gains or losses or the impact on operating
results from other possible future property acquisitions or
dispositions, possible capital markets activity or possible future
impairment charges. EPS estimates may be subject to fluctuations as
a result of several factors, including changes in the recognition
of depreciation and amortization expense and any gains or losses
associated with disposition activity. By definition, Core FFO does
not include real estate-related depreciation and amortization 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.
ROUSE PROPERTIES, INC. SPIN-OFF UPDATE
During the second quarter of 2011, the Company announced its
Board of Directors approved a plan to spin-off a 30-mall portfolio
to holders of GGP common stock in the form of a taxable special
dividend. The dividend will be comprised of common stock in
Rouse Properties, Inc. (“Rouse”), a recently formed company to
which GGP plans to transfer the portfolio. The planned
spin-off is on track for a year-end distribution. For more
information, please see the Rouse Properties section of
www.ggp.com.
INVESTOR AND ANALYST CONFERENCE
The Company is scheduled to hold an investor and analyst
conference on December 8, 2011, and
expects to provide full year 2012 guidance at that point.
INVESTOR CONFERENCE CALL
The Company will host a conference call on Wednesday, November 9, 2011, at 11:00 a.m. Eastern time / 10:00 a.m. Central time to discuss third quarter
earnings and other related matters that may be of interest to
investors and analysts. Scheduled speakers are Chief
Executive Officer Sandeep Mathrani
and Chief Financial Officer Steve
Douglas. To access the conference call, please dial
(877) 845-1018 (Domestic) or (707) 287-9345 (International).
A live audio webcast of the call will also be available in
the Investor Relations section of the Company’s website at
www.ggp.com.
SUPPLEMENTAL INFORMATION
A copy of General Growth’s quarterly Supplemental Information
package is available in the Investor Relations section of the
Company’s website at www.ggp.com.
ABOUT GGP
GGP is one of the nation’s largest shopping center owners. GGP
has ownership and management interest in 167 regional and super
regional shopping malls in 42 states. The company portfolio totals
169 million square feet of space. A publicly-traded real estate
investment trust (REIT), GGP is listed on the New York Stock
Exchange under the symbol GGP.
NON-GAAP SUPPLEMENTAL FINANCIAL MEASURES AND
DEFINITIONS
REAL ESTATE PROPERTY NET OPERATING INCOME (NOI) AND CORE
NOI
The Company believes NOI is a useful supplemental measure of the
Company’s operating performance. The Company defines NOI as
operating revenues (rental income, tenant recoveries and other
income) less property and related expenses (real estate taxes,
property maintenance costs, marketing, other property expenses and
provision for doubtful accounts). NOI has been reflected on a
proportionate basis (at the Company’s ownership share). Other
REITs may use different methodologies for calculating NOI, and
accordingly, the Company’s NOI may not be comparable to other
REITs. Because NOI excludes general and administrative
expenses, interest expense, retail investment property impairment
or non-recoverable development costs, depreciation and
amortization, gains and losses from property dispositions,
allocations to noncontrolling interests, reorganization items,
strategic initiatives, provision for income taxes, discontinued
operations 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.
This measure provides an operating perspective not
immediately apparent from GAAP operating or net income (loss)
attributable to common stockholders. 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 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.
CORE NOI excludes the NOI impacts of non-cash and certain
non-comparable items such as straight-line rent and intangible
asset and liability amortization resulting from acquisition
accounting. We present Core NOI, and Core EBITDA and Core FFO
as below, as we believe certain investors and other users of our
financial information use them as measures of the Company’s
historical operating performance.
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION (EBITDA) AND CORE EBITDA
EBITDA is defined as net income (loss) attributable to common
stockholders, adjusted to exclude interest expense net of interest
income, warrant adjustment, income tax provision (benefit),
discontinued operations, allocations to noncontrolling interests,
depreciation and amortization. “Core EBITDA” comprises EBITDA
as defined immediately above and excludes certain non-cash and
certain non-recurring items such as our Core NOI adjustments
described above, provisions for impairment, emergence
reorganization items, strategic initiatives and certain management
and administration costs.
FUNDS FROM OPERATIONS (“FFO”) AND CORE FFO
The Company, consistent with real estate industry and investment
community preferences, uses FFO as a supplemental measure of
operating performance for a Real Estate Investment Trust (REIT).
The National Association of Real Estate Investment Trusts
(NAREIT) defines FFO as net income (loss) attributable to common
stockholders (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 including 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. As with our
presentation of Core NOI and Core EBITDA, Core FFO excludes from
FFO certain items that are non-cash and certain non-comparable
items such as our Core NOI adjustments, Core EBITDA adjustments,
and FFO items such as FFO from discontinued operations, Permanent
Warrant expense, and interest expense on debt repaid or settled,
all as a result of our emergence, acquisition accounting and other
capital contribution or restructuring events.
RECONCILIATIONS OF NON-GAAP SUPPLEMENTAL FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
In order to provide a better understanding of the relationship
between our non-GAAP Supplemental Financial measures of NOI, Core
NOI, EBITDA, Core EBITDA, FFO and Core FFO, reconciliations have
been provided as follows: a reconciliation of NOI and Core NOI to
GAAP Operating Income (loss); a reconciliation of EBITDA and Core
EBITDA to GAAP net income, a reconciliation of Core FFO and FFO to
GAAP net income (loss) attributable to common stockholders has been
provided. None of our non-GAAP Supplemental 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 common stockholders and
none are necessarily indicative of cash available to fund cash
needs. In addition, the Company has presented such financial
measures on a consolidated and unconsolidated basis (at the
Company’s ownership share) as the Company believes that given the
significance of the Company’s operations that are owned through
investments accounted for on the equity method of accounting, the
detail of the operations of the Company’s unconsolidated properties
provides important insights into the income and FFO produced by
such investments for the Company as a whole.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements.
Actual results may differ materially from the results
suggested by these forward-looking statements, for a number of
reasons, including, but not limited to, our ability to refinance,
extend, restructure or repay our remaining debt (including that of
our Unconsolidated Real Estate Affiliates) with maturities in the
short to intermediate term, our ability to raise capital through
equity issuances, asset sales or the incurrence of new debt, our
ability to complete the expected distribution of Rouse Properties,
retail and credit market conditions, impairments, our liquidity
demands and retail and economic conditions. Readers are referred to
the documents filed by General Growth Properties, Inc. with the
Securities and Exchange Commission, which further identify the
important risk factors that could cause actual results to differ
materially from the forward-looking statements in this release.
Except to the extent required by law, the Company disclaims
any obligation to update any forward-looking statements.
CONTACT:
|
David Keating, vice president of
corporate communications
|
|
|
(312) 960-6325,
david.keating@ggp.com
|
|
|
|
Consolidated Statements of
Income(1)
(In thousands, except per
share)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30, 2011
|
September
30, 2010
|
|
September
30, 2011
|
September
30, 2010
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Minimum
rents
|
|
$
429,678
|
$
442,593
|
|
$
1,295,137
|
$
1,329,183
|
|
Tenant
recoveries
|
|
209,352
|
204,158
|
|
605,094
|
606,362
|
|
Overage
rents
|
|
13,632
|
9,365
|
|
31,900
|
25,334
|
|
Management fees
and other corporate revenues
|
|
14,188
|
14,075
|
|
43,775
|
48,063
|
|
Other
|
|
17,926
|
17,239
|
|
51,635
|
53,220
|
|
Total revenues
|
|
684,776
|
687,430
|
|
2,027,541
|
2,062,162
|
|
Expenses:
|
|
|
|
|
|
|
|
Real estate
taxes
|
|
63,519
|
63,458
|
|
195,348
|
191,985
|
|
Property
maintenance costs
|
|
24,909
|
23,830
|
|
83,336
|
78,302
|
|
Marketing
|
|
8,522
|
8,496
|
|
22,637
|
20,903
|
|
Other property
operating costs
|
|
126,489
|
113,184
|
|
343,121
|
333,066
|
|
Provision for
doubtful accounts
|
|
1,828
|
4,756
|
|
3,617
|
13,502
|
|
Property
management and other costs
|
|
48,917
|
40,847
|
|
143,589
|
124,387
|
|
General and
administrative (2)
|
|
17,290
|
9,370
|
|
20,447
|
22,689
|
|
Provisions for
impairment
|
|
-
|
4,516
|
|
-
|
15,573
|
|
Depreciation and
amortization
|
|
250,507
|
163,126
|
|
745,225
|
489,939
|
|
Total expenses
|
|
541,981
|
431,583
|
|
1,557,320
|
1,290,346
|
|
Operating income
|
|
142,795
|
255,847
|
|
470,221
|
771,816
|
|
Interest income
|
|
687
|
210
|
|
1,927
|
962
|
|
Interest expense
|
|
(235,431)
|
(405,768)
|
|
(726,629)
|
(1,056,147)
|
|
Warrant adjustment
|
|
337,781
|
-
|
|
319,460
|
-
|
|
Income (loss) before income
taxes, equity in (loss) income of Unconsolidated Real Estate
Affiliates, reorganization items and noncontrolling
interests
|
|
245,832
|
(149,711)
|
|
64,979
|
(283,369)
|
|
(Provision for) benefit from
income taxes
|
|
(4,051)
|
3,778
|
|
(8,267)
|
(1,444)
|
|
Equity in (loss) income of
Unconsolidated Real Estate Affiliates
|
|
9,833
|
8,567
|
|
(2,534)
|
54,047
|
|
Reorganization items
|
|
-
|
(84,349)
|
|
-
|
(111,337)
|
|
Income (loss) from continuing
operations
|
|
251,614
|
(221,715)
|
|
54,178
|
(342,103)
|
|
Discontinued
operations
|
|
4,957
|
(12,054)
|
|
7,300
|
46,572
|
|
Net income (loss)
|
|
256,571
|
(233,769)
|
|
61,478
|
(295,531)
|
|
Allocation to noncontrolling
interests
|
|
(4,521)
|
2,584
|
|
(6,812)
|
(1,525)
|
|
Net income (loss) attributable
to common stockholders
|
|
$
252,050
|
$
(231,185)
|
|
$
54,666
|
$
(297,056)
|
|
Basic Earnings (Loss) Per
Share:
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
0.26
|
$
(0.69)
|
|
$
0.05
|
$
(1.08)
|
|
Discontinued
operations
|
|
0.01
|
(0.04)
|
|
0.01
|
0.15
|
|
Total basic earnings (loss) per
share
|
|
$
0.27
|
$
(0.73)
|
|
$
0.06
|
$
(0.93)
|
|
Diluted Loss Per
Share:
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
(0.09)
|
$
(0.69)
|
|
$
(0.28)
|
$
(1.08)
|
|
Discontinued
operations
|
|
0.01
|
(0.04)
|
|
0.01
|
0.15
|
|
Total diluted loss per
share
|
|
$
(0.08)
|
$
(0.73)
|
|
$
(0.27)
|
$
(0.93)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Amounts presented in accordance
with GAAP.
|
|
(2)
|
The three and nine months ended
September 30, 2011 includes post-emergence bankruptcy related
items, including the reversal of previously accrued bankruptcy
costs, other gains on settlements, legal fees and professional
fees.
|
|
|
|
Consolidated Balance
Sheets(1)
(In thousands)
|
|
|
|
|
|
September
30, 2011
|
|
December 31,
2010
|
|
Assets:
|
|
|
|
|
|
Investment in real
estate:
|
|
|
|
|
|
|
Land
|
|
$
4,655,918
|
|
$
4,722,674
|
|
|
Buildings and
equipment
|
|
19,818,945
|
|
20,300,355
|
|
|
Less accumulated
depreciation
|
|
(784,006)
|
|
(129,794)
|
|
|
Developments in
progress
|
|
126,155
|
|
117,137
|
|
|
|
Net property and
equipment
|
|
23,817,012
|
|
25,010,372
|
|
|
Investment in and loans to/from
Unconsolidated Real Estate Affiliates
|
|
3,072,302
|
|
3,153,698
|
|
|
|
Net investment in real
estate
|
|
26,889,314
|
|
28,164,070
|
|
Cash and cash
equivalents
|
|
492,689
|
|
1,021,311
|
|
Accounts and notes receivable,
net
|
|
184,595
|
|
114,099
|
|
Deferred expenses,
net
|
|
167,949
|
|
175,669
|
|
Prepaid expenses and other
assets
|
|
2,003,084
|
|
2,300,452
|
|
Assets held for
disposition
|
|
276,518
|
|
591,778
|
|
|
|
Total Assets
|
|
$
30,014,149
|
|
$
32,367,379
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Mortgages, notes and loans
payable
|
|
$
17,235,603
|
|
$
17,841,757
|
|
Accounts payable and accrued
expenses
|
|
1,633,339
|
|
1,931,970
|
|
Deferred tax
liabilities
|
|
29,509
|
|
36,463
|
|
Tax indemnification
liability
|
|
303,750
|
|
303,750
|
|
Junior Subordinated
Notes
|
|
206,200
|
|
206,200
|
|
Warrant liability
|
|
721,544
|
|
1,041,004
|
|
Liabilities held for
disposition
|
|
207,317
|
|
592,122
|
|
|
|
Total Liabilities
|
|
20,337,262
|
|
21,953,266
|
|
Redeemable noncontrolling
interests:
|
|
|
|
|
|
|
Preferred
|
|
120,756
|
|
120,756
|
|
|
Common
|
|
92,037
|
|
111,608
|
|
|
|
Total Redeemable Noncontrolling
Interests
|
|
212,793
|
|
232,364
|
|
Equity:
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
9,366,806
|
|
10,079,102
|
|
|
Noncontrolling interests in
consolidated real estate affiliates
|
|
97,288
|
|
102,647
|
|
|
|
Total Equity
|
|
9,464,094
|
|
10,181,749
|
|
|
|
Total Liabilities and
Equity
|
|
$
30,014,149
|
|
$
32,367,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Presented in accordance with
GAAP.
|
|
|
|
Reconciliation of Core NOI, Core
EBITDA, and Core FFO, at share
(In thousands, except per
share)
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
September
30, 2011
|
September
30, 2010
|
|
September
30, 2011
|
September
30, 2010
|
|
NOI
|
|
$
533,561
|
$
545,563
|
|
$
1,594,368
|
$
1,640,847
|
|
|
Core NOI adjustments:
|
|
|
|
|
|
|
|
|
Straight-line rent
(1)
|
|
(31,088)
|
(10,503)
|
|
(93,335)
|
(32,746)
|
|
|
Above- and below-market tenant
leases, net (1)
|
|
43,246
|
(1,451)
|
|
112,875
|
(5,103)
|
|
|
Above- and below-market ground
rent expense, net (1)
|
|
1,650
|
1,603
|
|
4,978
|
4,693
|
|
|
Real estate tax stabilization
agreement
|
|
1,578
|
981
|
|
4,734
|
2,943
|
|
Total Core NOI
adjustments
|
|
15,386
|
(9,370)
|
|
29,252
|
(30,213)
|
|
Core NOI
|
|
$
548,947
|
$
536,193
|
|
$
1,623,620
|
$
1,610,634
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
473,214
|
$
409,571
|
|
$
1,448,138
|
$
1,390,728
|
|
|
Core NOI adjustments
|
|
15,386
|
(9,370)
|
|
29,252
|
(30,213)
|
|
|
Above- and below-market building
rent, net (1)
|
|
(424)
|
-
|
|
(1,272)
|
-
|
|
|
Provisions for
impairment
|
|
-
|
4,516
|
|
-
|
15,573
|
|
|
Reorganization items
(2)
|
|
-
|
84,349
|
|
-
|
111,337
|
|
|
Rouse spin, severance, and other
costs
|
|
8,649
|
690
|
|
19,894
|
6,730
|
|
|
Management and administrative
costs, net
|
|
4,242
|
1,514
|
|
(15,257)
|
(3,553)
|
|
Total Core EBITDA
adjustments
|
|
27,853
|
81,699
|
|
32,617
|
99,874
|
|
Core EBITDA
|
|
$
501,067
|
$
491,270
|
|
$
1,480,755
|
$
1,490,602
|
|
|
|
|
|
|
|
|
|
|
FFO
|
|
$
540,302
|
$
(28,066)
|
|
$
939,511
|
$
344,304
|
|
|
Core EBITDA
adjustments
|
|
27,853
|
81,699
|
|
32,617
|
99,874
|
|
|
FFO from discontinued
operations
|
|
(3,479)
|
197
|
|
(16,240)
|
(125,426)
|
|
|
Default interest
|
|
(109)
|
85,463
|
|
60,957
|
85,463
|
|
|
Interest expense relating to
extinguished debt
|
|
1,374
|
64,722
|
|
11,045
|
200,633
|
|
|
Write-off of mark-to-market
adjustments on extinguished debt
|
(2,648)
|
-
|
|
(47,465)
|
-
|
|
|
Debt extinguishment
expenses
|
|
-
|
8,881
|
|
1,600
|
9,038
|
|
|
Mark-to-market adjustments on
debt
|
|
(5,441)
|
14,015
|
|
(12,305)
|
35,070
|
|
|
Warrant adjustment
|
|
(337,781)
|
-
|
|
(319,460)
|
-
|
|
|
Provision for income
taxes
|
|
4,152
|
(3,680)
|
|
8,547
|
1,362
|
|
Total FFO adjustments
|
|
(316,079)
|
251,297
|
|
(280,704)
|
306,014
|
|
Core FFO
|
|
$
224,223
|
$
223,231
|
|
$
658,807
|
$
650,318
|
|
Core FFO per share -
diluted
|
|
$
0.23
|
$
0.68
|
|
$
0.66
|
$
2.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
These items were impacted by the
effects of acquisition accounting as of November 9,
2010.
|
|
(2)
|
Reorganization items reflect
bankruptcy-related activity, including gains/losses on liabilities
subject to compromise, interest income, U.S. Trustee fees, and
other restructuring costs incurred during the Chapter 11 cases from
April 16, 2009 to November 9, 2010.
|
|
|
|
Reconciliation of Non-GAAP to
GAAP Financial Measures
(In thousands)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
September
30, 2011
|
September
30, 2010
|
|
September
30, 2011
|
September
30, 2010
|
|
Reconciliation of NOI to GAAP
Operating Income
|
|
|
|
|
|
|
|
NOI:
|
|
|
|
|
|
|
|
|
Pro Rata basis
|
|
$
533,561
|
$
545,563
|
|
$
1,594,368
|
$
1,640,847
|
|
|
Unconsolidated
Properties
|
|
(91,905)
|
(89,025)
|
|
(268,371)
|
(273,621)
|
|
|
Consolidated
Properties
|
|
441,656
|
456,538
|
|
1,325,997
|
1,367,226
|
|
Management fees and other
corporate revenues
|
|
14,188
|
14,075
|
|
43,775
|
48,063
|
|
Property management and other
costs
|
|
(48,917)
|
(40,847)
|
|
(143,589)
|
(124,387)
|
|
General and
administrative
|
|
(17,290)
|
(9,370)
|
|
(20,447)
|
(22,689)
|
|
Provisions for
impairment
|
|
-
|
(4,516)
|
|
-
|
(15,573)
|
|
Depreciation and
amortization
|
|
(250,507)
|
(163,126)
|
|
(745,225)
|
(489,939)
|
|
Noncontrolling interest in NOI
of Consolidated Properties
|
|
3,665
|
3,093
|
|
9,710
|
9,115
|
|
Operating income
|
|
$
142,795
|
$
255,847
|
|
$
470,221
|
$
771,816
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA to GAAP
Net Income (Loss) Attributable to Common
Stockholders
|
|
EBITDA:
|
|
|
|
|
|
|
|
|
Pro Rata basis
|
|
$
473,214
|
$
409,571
|
|
$
1,448,138
|
$
1,390,728
|
|
|
Unconsolidated
Properties
|
|
(85,913)
|
(80,376)
|
|
(249,409)
|
(256,431)
|
|
|
Consolidated
Properties
|
|
387,301
|
329,195
|
|
1,198,729
|
1,134,297
|
|
Preferred unit
distributions
|
|
2,336
|
2,336
|
|
7,007
|
7,006
|
|
Depreciation and
amortization
|
|
(250,507)
|
(163,126)
|
|
(745,225)
|
(489,939)
|
|
Noncontrolling interest in NOI
of Consolidated Properties
|
|
3,665
|
3,093
|
|
9,710
|
9,115
|
|
Interest income
|
|
687
|
210
|
|
1,927
|
962
|
|
Interest expense
|
|
(235,431)
|
(405,768)
|
|
(726,629)
|
(1,056,147)
|
|
Warrant adjustment
|
|
337,781
|
-
|
|
319,460
|
-
|
|
Provision for income
taxes
|
|
(4,051)
|
3,778
|
|
(8,267)
|
(1,444)
|
|
Equity in (loss) income of
Unconsolidated Real Estate Affiliates
|
|
9,833
|
8,567
|
|
(2,534)
|
54,047
|
|
Discontinued
operations
|
|
4,957
|
(12,054)
|
|
7,300
|
46,572
|
|
Allocation to noncontrolling
interests
|
|
(4,521)
|
2,584
|
|
(6,812)
|
(1,525)
|
|
Net income (loss) attributable
to common stockholders
|
|
$
252,050
|
$
(231,185)
|
|
$
54,666
|
$
(297,056)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of FFO to GAAP
Net Income (Loss) Attributable to Common
Stockholders
|
|
FFO:
|
|
|
|
|
|
|
|
|
Pro Rata basis
|
|
$
540,302
|
$
(28,066)
|
|
$
939,511
|
$
344,304
|
|
|
Unconsolidated
Properties
|
|
-
|
-
|
|
-
|
-
|
|
|
Consolidated
Properties
|
|
540,302
|
(28,066)
|
|
939,511
|
344,304
|
|
Depreciation and amortization of
capitalized real estate costs
|
|
(292,443)
|
(196,147)
|
|
(885,685)
|
(587,658)
|
|
Gain on sales of investment
properties
|
|
5,799
|
768
|
|
8,423
|
(18,675)
|
|
Noncontrolling interests in
depreciation of Consolidated Properties
|
|
1,561
|
1,734
|
|
5,575
|
3,696
|
|
Redeemable noncontrolling
interests
|
|
(1,810)
|
5,324
|
|
(386)
|
6,836
|
|
Depreciation and amortization of
discontinued operations
|
|
(1,359)
|
(14,798)
|
|
(12,772)
|
(45,559)
|
|
Net income (loss) attributable
to common stockholders
|
|
$
252,050
|
$
(231,185)
|
|
$
54,666
|
$
(297,056)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Equity in NOI
of Unconsolidated Properties to GAAP Equity in Income (Loss) of
Unconsolidated Real Estate Affiliates
|
|
Equity in Unconsolidated
Properties:
|
|
|
|
|
|
|
|
|
NOI
|
|
$
91,905
|
$
89,025
|
|
$
268,371
|
$
273,621
|
|
|
Net property management fees and
costs
|
|
(4,367)
|
(3,534)
|
|
(12,487)
|
(11,917)
|
|
|
Net interest expense
|
|
(34,788)
|
(33,684)
|
|
(112,170)
|
(111,008)
|
|
|
General and administrative,
provisions for impairment,
|
|
|
|
|
|
|
|
|
|
income taxes and noncontrolling
interest in FFO
|
|
(1,705)
|
(5,191)
|
|
(6,691)
|
(5,130)
|
|
|
FFO of discontinued
Unconsolidated Properties
|
|
(434)
|
1,094
|
|
109
|
47,917
|
|
FFO of Unconsolidated
Properties
|
|
50,611
|
47,710
|
|
137,132
|
193,483
|
|
Depreciation and amortization of
capitalized real estate costs
|
|
(44,229)
|
(38,193)
|
|
(146,332)
|
(113,022)
|
|
Other, including gain on sales
of investment properties
|
|
3,451
|
(950)
|
|
6,666
|
(26,414)
|
|
Equity in income (loss) of
Unconsolidated Real Estate Affiliates
|
|
$
9,833
|
$
8,567
|
|
$
(2,534)
|
$
54,047
|
|
|
|
|
|
|
|
|
|
|
SOURCE General Growth Properties