GGP Ggp Inc. (delisted)

General Growth Properties, Inc. Releases Updated Financial Results Reflecting Changes Due to the FASB Deferral of SFAS #150 CHICAGO, Oct. 31 /PRNewswire-FirstCall/ -- General Growth Properties, Inc. today released updated financial results due to the Financial Accounting Standard Board's (FASB) October 29, 2003 announcement to indefinitely defer certain provisions of SFAS #150 - "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity." In its earnings press release of October 27, 2003, General Growth had taken into account the subsequently-deferred provisions of SFAS #150 as a charge to third quarter earnings per share (EPS) of approximately $12 million. Reflecting the revised accounting treatment, EPS in third quarter 2003 increased 22.5% to $.87 versus $.71 for the comparable period in 2002. There was no change in the company's reported fully diluted Funds from Operations (FFO) per share information as substantially all of the amounts originally recorded due to the deferred provisions of SFAS 150 were reflected as the cumulative effect of an accounting change. Established NAREIT guidelines for the computation of FFO provide that the cumulative effect of an accounting change is excluded from the calculation of FFO for any reporting period. The accompanying financial results are an update to the press release of October 27, 2003 and reflect EPS treatment according to the recent FASB announcement. General Growth Properties is the country's second largest shopping center owner, developer and manager of regional shopping malls. General Growth currently has ownership interest in, or management responsibility for, a portfolio of 164 regional shopping malls in 39 states. The company portfolio totals approximately 143 million square feet of retail space and includes over 16,000 retailers nationwide. A publicly traded REIT, General Growth Properties is listed on the New York Stock Exchange under the symbol GGP. For more information on General Growth Properties and its portfolio of malls, please visit the company web site at http://www.generalgrowth.com/ . FUNDS FROM OPERATIONS and Three Months Ended Nine Months Ended PORTFOLIO RESULTS (unaudited) September 30, September 30, (in thousands, except per share data) 2003 2002 2003 2002 FUNDS FROM OPERATIONS (FFO) Funds From Operations - Operating Partnership $155,790 $120,600 $412,636 $315,588 Less: Allocations to Operating Partnership unitholders $33,653 $28,892 $94,658 $75,606 Funds From Operations - Company stockholders $122,137 $91,708 $317,978 $239,982 Funds From Operations per share - Company stockholders - basic $1.74 $1.47 $4.87 $3.86 Funds From Operations per share - Operating Partnership - basic $1.74 $1.47 $4.87 $3.86 Funds From Operations per share - Operating Partnership - diluted $1.71 $1.40 $4.68 $3.70 Weighted average number of Company shares outstanding - basic 70,297 62,244 65,283 62,121 Weighted average number of Company shares outstanding - basic (assuming full conversion of Operating Partnership units) 89,666 81,812 84,717 81,692 Weighted average number of Company shares outstanding - diluted (assuming full conversion of Operating Partnership units and convertible preferred stock) 91,124 90,493 90,934 90,345 PORTFOLIO RESULTS (a) Total revenues (b),(c) $406,826 $336,528 $1,153,540 $887,061 Operating expenses (131,152) (106,842) (375,947) (282,241) Real estate net operating income 275,674 229,686 777,593 604,820 Net General Growth Management, Inc. (GGMI) operations 1,802 (1,328) 4,133 3,147 Headquarters and regional costs including depreciation that reduces FFO (13,651) (10,733) (50,511) (33,766) General and administrative (1,854) (1,431) (7,296) (4,604) Net interest expense (d) (96,005) (80,172) (268,005) (217,380) Preferred stock dividends - (6,117) (13,030) (18,351) Preferred unit distributions (10,176) (9,305) (30,248) (18,278) Funds From Operations - Operating Partnership 155,790 120,600 412,636 315,588 RECONCILIATION OF GAAP NET INCOME TO FUNDS FROM OPERATIONS (e) Net income (loss) available to common stockholders $61,433 $44,467 $150,994 $110,581 Extraordinary items (d) - - - - Income available to common stockholders before extraordinary items and cumulative effect 61,433 44,467 150,994 110,581 Income from discontinued operations, including gain on sale (793) (360) (5,123) (1,118) Income from continuing operations 60,640 44,107 145,871 109,463 Allocations to Operating Partnership unitholders 17,159 13,986 44,950 34,838 FFO of property sold in 2003 - 459 292 1,404 Depreciation and amortization of capitalized real estate costs (including SFAS #141 and #142 lease origination costs) other than amortization of financing costs 77,991 62,048 221,523 169,883 Funds From Operations - Operating Partnership 155,790 120,600 412,636 315,588 Funds From Operations - Operating Partnership unitholders (33,653) (28,892) (94,658) (75,606) Funds From Operations - Company stockholders 122,137 91,708 317,978 239,982 RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR GAAP AND FFO PER SHARE COMPUTATIONS Weighted average number of Company shares outstanding - for GAAP basic EPS 70,297 62,244 65,283 62,121 Full conversion of Operating Partnership units 19,369 19,568 19,434 19,571 Weighted average number of Company shares outstanding - for basic FFO per share 89,666 81,812 84,717 81,692 Weighted average number of Company shares outstanding - for GAAP diluted EPS 71,755 62,424 71,500 62,273 Conversion of PIERS to Common Stock (f) - 8,501 - 8,501 Full conversion of Operating Partnership units 19,369 19,568 19,434 19,571 Weighted average number of Company shares outstanding - for diluted FFO per share 91,124 90,493 90,934 90,345 Earnings from continuing operations per share - basic $0.86 $0.71 $2.25 $1.77 Earnings from continuing operations per share - diluted $0.85 $0.71 $2.24 $1.77 Earnings from discontinued operations, net per share - basic $0.01 $- $0.06 $0.01 Earnings from discontinued operations, net per share - diluted $0.01 $- $0.05 $0.01 Earnings (loss) per share - basic $0.87 $0.71 $2.31 $1.78 Earnings (loss) per share - diluted $0.86 $0.71 $2.29 $1.78 (a) Portfolio results combine the revenues and expenses of General Growth Management, Inc. (a Taxable REIT Subsidiary) with the applicable ownership percentage multiplied by the revenues and expenses from properties wholly and/or partially owned by the Operating Partnership. (b) Includes straight-line rent of $4,754 and $4,287 for the three months ended and $13,389 and $9,830 for the nine months ended September 30, 2003 and 2002, respectively. (c) Includes non-cash rental revenue recognized pursuant to SFAS #141 and #142 for the three and nine months ended September 30, 2003 of $8,222 and $18,976, respectively. (d) As of the first quarter of 2003 and pursuant to SFAS #145 - Rescission of FASB Statements 4,44 and 64 and Technical Corrections, the Company now reflects costs related to the extinguishment of debt as additional interest expense. Previously, such costs were reflected as an extraordinary item. As required, FFO for the three and nine months ended September 30, 2002 has been adjusted to maintain comparability. (e) Reconciliation of net income determined in accordance with generally accepted accounting principles to FFO (Company non-GAAP supplemental measure of operating performance) as defined by NAREIT and as required by SEC Regulation G. (f) The PIERS are anti-dilutive and therefore excluded in 2002 from the computation of the diluted weighted average outstanding shares for EPS purposes. In 2003, the PIERS are dilutive for the computation of EPS and are included in the total weighted average outstanding shares for diluted EPS purposes. RECONCILIATION OF REAL ESTATE PROPERTY NET OPERATING INCOME TO GAAP OPERATING INCOME Three Months Ended Nine Months Ended (unaudited) September 30, September 30, 2003 2002 2003 2002 Real estate net operating income, including Unconsolidated Centers $275,674 $229,686 $777,593 $604,820 Real estate net operating income - Unconsolidated Centers (65,855) (61,633) (215,471) (175,975) Real estate net operating income - Wholly Owned Centers 209,819 168,053 562,122 428,845 GGMI fees 21,071 18,164 61,672 55,395 GGMI expenses (19,269) (19,492) (57,539) (52,248) Headquarters/regional costs (5,003) (2,923) (23,881) (12,045) General and administrative (1,675) (1,302) (6,479) (4,334) Depreciation and amortization (61,737) (45,923) (166,020) (124,300) Other* 415 (455) 314 (1,402) GAAP Operating income - Consolidated General Growth Properties, Inc. $143,621 $116,122 $370,189 $289,911 *Reflects discontinued operations and minority interest in Wholly-Owned real estate net operating income SUMMARIZED BALANCE SHEET INFORMATION (unaudited) September 30, December 31, 2003 2002 Cash and marketable securities $138,331 $54,116 Investment in real estate Net land, building and equipment $7,603,259 $6,069,073 Developments in progress $118,861 $90,492 Investment in and loans from Unconsolidated Real Estate Affiliates $624,997 $766,519 Investment in real estate, net $8,347,117 $6,926,084 Total assets $8,860,939 $7,280,822 Mortgage and other notes payable $6,054,930 $4,592,311 Minority interest - Preferred $468,614 $468,201 Minority interest - Common $422,217 $377,746 Preferred stock $- $337,500 Stockholders' equity $1,598,375 $1,196,525 Total capitalization (at cost) $8,544,136 $6,972,283 PORTFOLIO CAPITALIZATION DATA (unaudited) Total portfolio debt (Company debt above ($6,054,930 and $4,592,311, respectively) plus pro rata share of debt ($1,884,828 and $2,177,024, respectively) from unconsolidated affiliates) of which (after the effect of the Company's current swap agreements) $2,320,627 and $2,453,571, respectively, is comprised of variable rate debt. $7,939,758 $6,769,335 Preferred stock - 449,415 Preferred equity - primarily preferred Operating Partnership units 468,614 468,201 Stock market value of common stock and common Operating Partnership units outstanding at end of period 6,517,985 4,261,573 Total market capitalization at end of period $14,926,357 $11,948,524 OTHER COMPANY PORTFOLIO DATA (a) AS OF AND/OR FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 (unaudited) Wholly Unconsoli- Owned dated Weighted Centers Centers Average Space leased at centers not under redevelopment 91.1% 89.9% 90.7% Tenant allowances/improvements and capitalized leasing costs (in thousands) $39,655 $17,365 $57,020 Trailing 12 month total sales per sq. ft. $332 $388 $354 Average annualized in place rent per sq. ft. $28.99 $32.35 $30.98 Average rent per sq. ft. for new/renewal leases $31.53 $35.79 $33.62 Average rent per sq. ft. for leases expiring in 2003 $22.16 $31.29 $26.70 % change in total sales 1.9% 2.5% 2.1% % change in comparable sales -0.4% -0.7% -0.5% (a) Data is for 100% of the mall non-anchor GLA in each portfolio, including those centers that are owned in part by unconsolidated affiliates. Data excludes properties currently being redeveloped and/or remerchandised and miscellaneous (non-mall) properties. GENERAL GROWTH PROPERTIES, INC BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2003 (In thousands, unaudited) Wholly Unconsoli- Owned dated Centers Centers (a) Total Revenues Minimum rents (b),(c) $204,972 $65,377 $270,349 Tenant recoveries 86,576 32,831 119,407 Overage rents 6,042 1,150 7,192 Other (d) 8,233 1,645 9,878 Total revenues 305,823 101,003 406,826 Operating expenses Real estate taxes 23,901 9,077 32,978 Repairs and maintenance 20,584 7,319 27,903 Marketing 9,533 3,356 12,889 Other property operating costs 39,781 14,613 54,394 Provision for doubtful accounts 2,205 783 2,988 Total operating expenses 96,004 35,148 131,152 Real estate net operating income 209,819 65,855 275,674 GGMI fees (e) 21,071 - 21,071 GGMI expenses (e) (19,269) - (19,269) Headquarters/regional costs (5,003) (5,779)(f) (10,782) General and administrative (1,675) (179) (1,854) Depreciation that reduces FFO (g) (2,869) - (2,869) Interest income 611 373 984 Interest expense (72,018) (20,683) (92,701) Amortization of deferred finance costs (1,628) (1,446) (3,074) Debt extinguishment costs (h) (1,024) (190) (1,214) Preferred stock dividends - - - Preferred unit distributions (10,176) - (10,176) Uncombined Funds From Operations 117,839 37,951 155,790 Equity in Funds from Operations of Unconsolidated Centers 37,951 (37,951) - Operating Partnership Funds From Operations $155,790 $- $155,790 GENERAL GROWTH PROPERTIES, INC BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002 (In thousands, unaudited) Wholly Unconsoli- Owned dated Centers Centers (a) Total Revenues Minimum rents (b) $156,162 $61,396 $217,558 Tenant recoveries 69,328 33,287 102,615 Overage rents 4,385 931 5,316 Other (d) 9,873 1,166 11,039 Total revenues 239,748 96,780 336,528 Operating expenses Real estate taxes 16,377 9,330 25,707 Repairs and maintenance 16,103 6,673 22,776 Marketing 7,708 5,516 13,224 Other property operating costs 30,722 12,077 42,799 Provision for doubtful accounts 785 1,551 2,336 Total operating expenses 71,695 35,147 106,842 Real estate net operating income 168,053 61,633 229,686 GGMI fees (e) 18,164 - 18,164 GGMI expenses (e) (19,492) - (19,492) Headquarters/regional costs (2,923) (4,926)(f) (7,849) General and administrative (1,302) (129) (1,431) Depreciation that reduces FFO (g) (2,884) - (2,884) Interest income 3,048 2,261 5,309 Interest expense (60,825) (22,507) (83,332) Amortization of deferred finance costs (1,288) (391) (1,679) Debt extinguishment costs (h) (18) (452) (470) Preferred stock dividends (6,117) - (6,117) Preferred unit distributions (9,305) - (9,305) Uncombined Funds From Operations 85,111 35,489 120,600 Equity in Funds from Operations of Unconsolidated Centers 35,489 (35,489) - Operating Partnership Funds From Operations $120,600 $- $120,600 (a) The Unconsolidated Centers include Quail Springs, Town East, the GGP/Ivanhoe entities, the GGP/Teachers entities and the GGP/Homart entities and are reflected at the Operating Partnership's share of such amounts. (b) Includes straight-line rent of $4,754 and $4,287 for the three months ended September 30, 2003 and 2002, respectively. (c) Includes SFAS #141 and #142 minimum rent accretion of $8,222 for the three months ended September 30, 2003. (d) Includes zero and $459 for the three months ended September 30, 2003 and 2002, respectively, of net FFO of investment property sold in 2003. (e) Represents the revenues and operating expenses of GGMI, the Company's taxable REIT subsidiary. (f) Headquarters/regional costs for the unconsolidated centers include property management and other fees to GGMI. (g) Represents depreciation on non-income producing assets including the Company's headquarters building. (h) As of the first quarter of 2003 and pursuant to SFAS 145 - Rescission of FASB Statements 4,44 and 64 and Technical Corrections, the Company now reflects costs related to the extinguishment of debt as additional interest expense. Previously, such costs were reflected as an extraordinary item. As required, third quarter 2002 FFO has been adjusted to maintain comparability. GENERAL GROWTH PROPERTIES, INC BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 (In thousands, unaudited) Wholly Unconsoli- Owned dated Centers Centers (a) Total Revenues Minimum rents (b),(c) $548,375 $214,172 $762,547 Tenant recoveries 238,232 107,773 346,005 Overage rents 16,086 3,410 19,496 Other (d) 21,204 4,288 25,492 Total revenues 823,897 329,643 1,153,540 Operating expenses Real estate taxes 64,518 30,830 95,348 Repairs and maintenance 56,853 24,759 81,612 Marketing 25,294 10,926 36,220 Other property operating costs 109,392 46,175 155,567 Provision for doubtful accounts 5,718 1,482 7,200 Total operating expenses 261,775 114,172 375,947 Real estate net operating income 562,122 215,471 777,593 GGMI fees (e) 61,672 - 61,672 GGMI expenses (e) (57,539) - (57,539) Headquarters/regional costs (23,881) (18,356)(f) (42,237) General and administrative (6,479) (817) (7,296) Depreciation that reduces FFO (g) (8,274) - (8,274) Interest income 1,667 1,281 2,948 Interest expense (192,065) (66,633) (258,698) Amortization of deferred finance costs (5,076) (4,025) (9,101) Debt extinguishment costs (h) (2,497) (657) (3,154) Preferred stock dividends (13,030) - (13,030) Preferred unit distributions (30,248) - (30,248) Uncombined Funds From Operations 286,372 126,264 412,636 Equity in Funds from Operations of Unconsolidated Centers 126,264 (126,264) - Operating Partnership Funds From Operations $412,636 $- $412,636 GENERAL GROWTH PROPERTIES, INC BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 (In thousands, unaudited) Wholly Unconsoli- Owned dated Centers Centers (a) Total Revenues Minimum rents (b) $399,334 $174,996 $574,330 Tenant recoveries 183,621 89,945 273,566 Overage rents 11,529 2,747 14,276 Other (d) 21,735 3,154 24,889 Total revenues 616,219 270,842 887,061 Operating expenses Real estate taxes 43,736 25,882 69,618 Repairs and maintenance 43,368 19,940 63,308 Marketing 18,459 9,539 27,998 Other property operating costs 78,139 36,900 115,039 Provision for doubtful accounts 3,672 2,606 6,278 Total operating expenses 187,374 94,867 282,241 Real estate net operating income 428,845 175,975 604,820 GGMI fees (e) 55,395 - 55,395 GGMI expenses (e) (52,248) - (52,248) Headquarters/regional costs (12,045) (14,680)(f) (26,725) General and administrative (4,334) (270) (4,604) Depreciation that reduces FFO (g) (7,041) - (7,041) Interest income 3,214 5,630 8,844 Interest expense (153,767) (67,685) (221,452) Amortization of deferred finance costs (3,100) (1,170) (4,270) Debt extinguishment costs (h) (50) (452) (502) Preferred stock dividends (18,351) - (18,351) Preferred unit distributions (18,278) - (18,278) Uncombined Funds From Operations 218,240 97,348 315,588 Equity in Funds from Operations of Unconsolidated Centers 97,348 (97,348) - Operating Partnership Funds From Operations $315,588 $- $315,588 (a) The Unconsolidated Centers include Quail Springs, Town East, the GGP/Ivanhoe entities, the GGP/Teachers entities and the GGP/Homart entities and are reflected at the Operating Partnership's share of such amounts. (b) Includes straight-line rent of $13,389 and $9,830 for the nine months ended September 30, 2003 and 2002, respectively. (c) Includes SFAS #141 and #142 minimum rent accretion of $18,976 for the nine months ended September 30, 2003. (d) Includes $292 and $1,404 for the nine months ended September 30, 2003 and 2002, respectively, of net FFO of investment property sold in 2003. (e) Represents the revenues and operating expenses of GGMI, the Company's taxable REIT subsidiary. (f) Headquarters/regional costs for the unconsolidated centers include property management and other fees to GGMI. (g) Represents depreciation on non-income producing assets including the Company's headquarters building. (h) As of the first quarter of 2003 and pursuant to SFAS 145 - Rescission of FASB Statements 4,44 and 64 and Technical Corrections, the Company now reflects costs related to the extinguishment of debt as additional interest expense. Previously, such costs were reflected as an extraordinary item. As required, FFO for the nine months ended September 30, 2002 has been adjusted to maintain comparability. http://www.newscom.com/cgi-bin/prnh/19990208/CGM015 DATASOURCE: General Growth Properties, Inc. CONTACT: Bernard Freibaum, +1-312-960-5252, or Beth Coronelli, +1-312-960-2750, both of General Growth Properties, Inc. Web site: http://www.generalgrowth.com/

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