General Growth Properties, Inc. (the “Company” or “GGP”) (NYSE:
GGP) today reported results for the three and twelve months ended
December 31, 2015.
Financial Results
For the Three Months Ended December 31, 2015
Comparable net operating income (“Same Store NOI”) increased
6.7% to $624 million from $585 million in the prior year
period.
Company earnings before interest, taxes, depreciation and
amortization (“Company EBITDA”) increased 6.5% to $588 million from
$553 million in the prior year period.
Company funds from operations (“Company FFO”) per share
increased 13.8% to $0.43 per diluted share from $0.38 per diluted
share in the prior year period. Company FFO increased 14.2% to $408
million from $357 million in the prior year period.
Net income attributable to common stockholders, which is
impacted primarily by depreciation expense, gain from changes in
control of investment properties and other and equity in income of
unconsolidated real estate affiliates- gain on investment, was $190
million, or $0.20 per diluted share, as compared to net income of
$285 million, or $0.30 per diluted share, in the prior year
period.
For the Twelve Months Ended December 31, 2015
Same Store NOI increased 4.8% to $2.26 billion from $2.16
billion in the prior year period.
Company EBITDA increased 5.4% to $2.12 billion from $2.01
billion in the prior year period.
Company FFO per share increased 8.7% to $1.44 per diluted share
from $1.32 per diluted share in the prior year period. Company FFO
increased 9.6% to $1.38 billion from $1.26 billion in the prior
year period.
Net income attributable to common stockholders, which is
impacted primarily by depreciation expense, gain from changes in
control of investment properties and other and equity in income of
unconsolidated real estate affiliates- gain on investment, was
$1.36 billion, or $1.43 per diluted share, as compared to net
income of $650 million, or $0.69 per diluted share, in the prior
year period.
Operational Highlights
- Same Store leased percentage was 96.9%
at quarter end.
- Initial rental rates for signed leases
that have commenced in the trailing 12 months on a suite-to-suite
basis increased 10.8%, or $6.32 per square foot, to $64.92 per
square foot when compared to the rental rate for expiring
leases.
- Tenant sales (all less anchors)
increased 2.8% to $21.0 billion on a trailing 12-month basis.
Tenant sales (<10,000 square feet) increased 3.0% to $588 per
square foot on a trailing 12-month basis.
Investment Activities
Dispositions
In January 2016, the Company sold its interests in four retail
properties for a gross purchase price of approximately $302 million
and received net proceeds of approximately $250 million.
Development
The Company has development and redevelopment activities
totaling approximately $2.3 billion at share, of which projects
totaling approximately $1.3 billion have opened, $0.4 billion is
under construction, and $0.6 billion is in the pipeline.
Common Share Repurchases
During the quarter, the Company acquired approximately 271,000
of its common shares at a weighted average price of $25.00 per
share for total consideration of approximately $6.8 million. During
the twelve months ended, the Company acquired approximately 4.32
million of its common shares at a weighted average price of $25.34
per share for total consideration of approximately $109.5
million.
Financing Activities
Property-Level Debt
During the quarter, the Company obtained $250 million of new
fixed rate debt with a weighted average term to maturity of 10.0
years and a weighted average interest rate of 4.3%.
Corporate Credit Facility
During the quarter, the Company amended its $1.5 billion
corporate credit facility to extend its maturity to October
2020.
Dividends
On February 1, 2016, the Company’s Board of Directors declared a
first quarter common stock dividend of $0.19 per share payable on
April 29, 2016, to stockholders of record on April 15, 2016. This
represents an increase of $0.02 per share or 12% growth over the
dividend declared in first quarter 2015.
The Board of Directors also declared a quarterly dividend on the
6.375% Series A Cumulative Redeemable Preferred Stock of $0.3984
per share payable on April 1, 2016, to stockholders of record on
March 15, 2016.
Guidance
Company FFO for the year ending December 31, 2016 is expected to
be $1.52 to $1.56 per diluted share. Company FFO for the first
quarter of 2016 is expected to be $0.34 to $0.36 per diluted
share.
For the three
For the year ending
months ending
Earnings Guidance
December 31, 2016
March 31, 2016
Company FFO per diluted share
$ 1.52 - $1.56 $ 0.34 - $0.36
Adjustments 1 (0.04 ) (0.01 ) NAREIT FFO $ 1.48 -
$1.52 $ 0.33 - $0.35 Depreciation, including share of JVs
(0.94 ) (0.24 )
Net income attributable to common
stockholders $ 0.54 - $0.58 $ 0.09 -
$0.11 Preferred stock dividends 0.02 -
Net income attributable to GGP $ 0.56 -
$0.60 $ 0.09 - $0.11
1. Includes impact of straight-line rent, above/below market
rent, ground rent amortization, debt market rate adjustments and
other non-cash or non-comparable items
The guidance estimate reflects management’s view of current and
future market conditions, including assumptions with respect to
Same Store NOI growth, rental rates, occupancy levels, retail
sales, variable expenses, interest rates and the earnings impact of
the events referenced in this release and previously disclosed. The
guidance also reflects management’s view of capital market
conditions. The estimates do not include possible future gains or
losses, or the impact on operating results from other possible
future property acquisitions or dispositions or capital market
activity. Earnings per share estimates may be subject to
fluctuations as a result of several factors, including any gains or
losses associated with disposition activity. By definition, FFO and
Company FFO do not include real estate-related depreciation and
amortization, provisions for impairment, or gains or losses
associated with property disposition activities. This guidance is a
forward-looking statement and is subject to the risks and other
factors described elsewhere in this release and in the Company’s
annual and quarterly periodic reports filed with the Securities and
Exchange Commission.
Investor Conference Call
On Tuesday, February 2, 2016, the Company will host a conference
call at 8:00 a.m. Central (9:00 a.m. Eastern). The conference call
will be accessible by telephone and through the Internet.
Interested parties can access the call by dialing 877.845.1018
(international 707.287.9345). A live webcast of the conference call
will be available in listen-only mode in the Investors section at
www.ggp.com. Interested parties should
access the conference call or website 10 minutes prior to the
beginning of the call in order to register. For those unable to
listen to the call live, a replay will be available after the
conference call event. To access the replay, dial 855.859.2056
(international 404.537.3406) conference ID 3107667.
Supplemental Information
The Company has prepared a supplemental information report
available on www.ggp.com in the
Investors section. This information also has been furnished with
the Securities and Exchange Commission as an exhibit on Form
8-K.
Forward-Looking
Statements
Certain statements made in this press release may be deemed
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Although the Company
believes the expectations reflected in any forward-looking
statement are based on reasonable assumption, it can give no
assurance that its expectations will be attained, and it is
possible that actual results may differ materially from those
indicated by these forward-looking statements due to a variety of
risks, uncertainties and other factors. Such factors include, but
are not limited to, the Company’s ability to refinance, extend,
restructure or repay near and intermediate term debt, its
indebtedness, its ability to raise capital through equity
issuances, asset sales or the incurrence of new debt, retail and
credit market conditions, impairments, its liquidity demands, and
economic conditions. The Company discusses these and other risks
and uncertainties in its annual and quarterly periodic reports
filed with the Securities and Exchange Commission. The Company may
update that discussion in its periodic reports, but otherwise takes
no duty or obligation to update or revise these forward-looking
statements, whether as a result of new information, future
developments, or otherwise.
Investors and others should note that we post our current
Investor Presentation on the Investors page of our website at
www.ggp.com. From time to time, we update that Investor
Presentation and when we do, it will be posted on the Investors
page of our website at ggp.com. It is possible that the updates
could include information deemed to be material information.
Therefore, we encourage investors, the media and others interested
in our company to review the information we post on the Investors
page of our website at www.ggp.com from time to time.
General Growth Properties,
Inc.
General Growth Properties, Inc. is an S&P 500 company
focused exclusively on owning, managing, leasing and redeveloping
high-quality retail properties throughout the United States. GGP is
headquartered in Chicago, Illinois, and publicly traded on the NYSE
under the symbol GGP.
Non-GAAP Supplemental Financial Measures and
Definitions
Net Operating Income (“NOI”) and Company NOI
The Company defines NOI as income from property operations after
operating expenses have been deducted, but prior to deducting
financing, administrative and income tax expenses. NOI excludes
reductions in ownership as a result of sales or other transactions
and 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. The Company considers NOI a helpful
supplemental measure of its operating performance because it is a
direct measure of the actual results of our properties. Because NOI
excludes reductions in ownership as a result of sales or other
transactions, 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, provision for income taxes, discontinued operations,
preferred stock dividends, and extraordinary items, it provides a
performance measure that, when compared year over year, reflects
the revenues and expenses directly associated with owning and
operating commercial real estate properties and the impact on
operations from trends in occupancy rates, rental rates and
operating costs.
The Company also considers Company NOI to be a helpful
supplemental measure of its operating performance because it
excludes from NOI certain non-cash and non-comparable items such as
straight-line rent and intangible asset and liability amortization,
which are a result of our emergence, acquisition accounting and
other capital contribution or restructuring events. However, due to
the exclusions noted, Company NOI should only be used as an
alternative measure of the Company’s financial performance. We
present Company NOI and Company FFO (as defined below); as we
believe certain investors and other users of our financial
information use these measures of the Company’s historical
operating performance.
Earnings Before Interest Expense, Income Tax, Depreciation,
and Amortization ("EBITDA") and Company EBITDA
The Company defines EBITDA as NOI less certain property
management and administrative expenses, net of management fees and
other operational items. EBITDA is a commonly used measure of
performance in many industries, but may not be comparable to
measures calculated by other companies. Management believes EBITDA
provides useful information to investors regarding our results of
operations because it helps us and our investors evaluate the
ongoing operating performance of our properties after removing the
impact of our capital structure (primarily interest expense) and
our asset base (primarily depreciation and amortization).
Management also believes the use of EBITDA facilitates comparisons
between us and other equity REITs, retail property owners who are
not REITs and other capital-intensive companies. Management uses
EBITDA to evaluate property-level results and as one measure in
determining the value of acquisitions and dispositions and, like
FFO (discussed below), it is widely used by management in the
annual budget process and for compensation programs.
The Company also considers Company EBITDA to be a helpful
supplemental measure of its operating performance because it
excludes from EBITDA certain non-cash and non-comparable items such
as straight-line rent and intangible asset and liability
amortization, which are a result of our emergence, acquisition
accounting and other capital contribution or restructuring events.
However, due to the exclusions noted, Company EBITDA should only be
used as an alternative measure of the Company's financial
performance.
Funds From Operations (“FFO”) and Company FFO
The Company determines FFO based upon the definition set forth
by National Association of Real Estate Investment Trusts
(“NAREIT”). The Company determines FFO to be its share of
consolidated net income (loss) computed in accordance with GAAP,
excluding real estate related depreciation and amortization,
excluding gains and losses from extraordinary items, excluding
cumulative effects of accounting changes, excluding gains and
losses from the sales of, or any impairment charges related to,
previously depreciated operating properties, plus the allocable
portion of FFO of unconsolidated joint ventures based upon the
Company’s economic ownership interest, and all determined on a
consistent basis in accordance with GAAP. As with the Company’s
presentation of NOI, FFO has been reflected on a proportionate
basis.
The Company considers FFO a helpful supplemental measure of the
operating performance for equity REITs and a complement to GAAP
measures because it is a recognized measure of performance by the
real estate industry. FFO facilitates an understanding of the
operating performance of the Company’s properties between periods
because it does not give effect to real estate depreciation and
amortization since these amounts are computed to allocate the cost
of a property over its useful life. Since values for
well-maintained real estate assets have historically increased or
decreased based upon prevailing market conditions, the Company
believes that FFO provides investors with a clearer view of the
Company’s operating performance.
As with the Company’s presentation of Company NOI, the Company
also considers Company FFO to be a helpful supplemental measure of
the operating performance for equity REITs because it excludes from
FFO certain items that are non-cash and certain non-comparable
items such as Company NOI adjustments, and FFO items such as
mark-to-market adjustments on debt and gains on the extinguishment
of debt,, and interest expense on debt repaid or settled all which
are a result of the Company’s acquisition accounting and other
capital contribution or restructuring events.
Reconciliation of Non-GAAP Financial Measures to GAAP
Financial Measures
The Company presents NOI and FFO as they are financial measures
widely used in the REIT industry. In order to provide a better
understanding of the relationship between the Company’s non-GAAP
financial measures of NOI, Company NOI, FFO and Company FFO,
reconciliations have been provided as follows: a reconciliation of
GAAP operating income to NOI and Company NOI and a reconciliation
of net income attributable to GGP to FFO and Company FFO. None of
the Company’s non-GAAP financial measures represents cash flow from
operating activities in accordance with GAAP, none should be
considered as an alternative to GAAP net income (loss) attributable
to GGP and none are necessarily indicative of cash 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.
FINANCIAL OVERVIEW
Consolidated Statements of
Operations
(In thousands, except per
share)
Three Months Ended Twelve
Months Ended December 31, 2015 December 31,
2014 December 31, 2015 December 31, 2014
Revenues: Minimum rents $ 387,230 $ 413,147 $
1,481,614 $ 1,583,695 Tenant recoveries 171,496 186,815 689,536
739,411 Overage rents 25,269 27,126 44,024 51,611 Management fees
and other corporate revenues 21,282 19,128 86,595 70,887 Other
39,357
26,806
102,137
89,955
Total revenues
644,634
673,022
2,403,906
2,535,559 Expenses: Real estate
taxes 52,458 55,306 222,883 227,992 Property maintenance costs
15,548 17,944 60,040 66,897 Marketing 9,110 8,728 21,958 24,654
Other property operating costs 74,923 81,974 302,797 333,620
Provision for doubtful accounts 1,882 2,844 8,081 8,055 Property
management and other costs 39,709 35,702 161,556 155,093 General
and administrative 13,010 11,441 50,405 64,051 Provisions for
impairment 8,604 5,278 8,604 5,278 Depreciation and amortization
160,663 179,478 643,689
708,406
Total expenses 375,907
398,695 1,480,013
1,594,046 Operating income
268,727
274,327
923,893
941,513 Interest and dividend income
14,358 8,812 49,254 28,613 Interest expense (147,386 ) (171,012 )
(607,675 ) (699,285 ) Gain (loss) on Foreign Currency 1,555 (11,031
) (44,984 ) (18,048 ) Gain from changes in control of investment
properties and other
11,780
91,193
634,367
91,193
Income before income taxes, equity
in income of Unconsolidated Real Estate Affiliates, discontinued
operations and allocation to noncontrolling interests
149,034 192,289 954,855 343,986 Benefit
from (provision for) income taxes 9,253 (4,417 ) 38,334 (7,253 )
Equity in income of Unconsolidated Real Estate Affiliates
32,275
17,700
73,390
51,568 Equity in income of Unconsolidated Real Estate Affiliates -
gain on investment
6,067
9,710
327,017
9,710
Income from continuing operations
196,629 215,282 1,393,596 398,011
Discontinued operations: Income from discontinued operations,
including gains on dispositions - 1,021 - 137,989 Gain on
extinguishment of tax indemnification liability - 77,215 - 77,215
Gain on extinguishment of debt - -
- 66,679 Discontinued operations, net
- 78,236 - 281,883
Net income 196,629 293,518
1,393,596 679,894 Allocation to noncontrolling
interests (2,588 ) (4,036 ) (19,035 )
(14,044 )
Net income attributable to GGP 194,041 289,482
1,374,561 665,850 Preferred stock dividends (3,984 )
(3,984 ) (15,937 ) (15,936 )
Net income
attributable to common stockholders $ 190,057
$ 285,498 $ 1,358,624
$ 649,914 Basic Earnings Per
Share: Continuing operations $ 0.22 $ 0.23 $ 1.54 $ 0.42
Discontinued operations - 0.09 -
0.32
Total basic earnings per share
$ 0.22 $ 0.32 $
1.54 $ 0.74 Diluted Earnings
Per Share: Continuing operations $ 0.20 $ 0.22 $ 1.43 $ 0.39
Discontinued operations - 0.08 -
0.30
Total diluted earnings per share
$ 0.20 $ 0.30 $
1.43 $ 0.69
FINANCIAL OVERVIEW
Consolidated Balance Sheets
(In thousands)
December 31, 2015
December 31, 2014 Assets: Investment in real estate:
Land $ 3,596,354 $ 4,244,607 Buildings and equipment 16,379,789
18,028,844 Less accumulated depreciation (2,452,127 ) (2,280,845 )
Construction in progress 308,903 703,859
Net property and equipment 17,832,919 20,696,465 Investment
in and loans to/from Unconsolidated Real Estate Affiliates
3,466,040 2,604,762 Net investment in real
estate 21,298,959 23,301,227 Cash and cash equivalents 356,895
372,471 Accounts and notes receivable, net 949,556 663,768 Deferred
expenses, net 214,578 130,389
Prepaid expenses and other assets (1)
1,037,334 813,777 Assets held for disposition 216,233
-
Total assets $ 24,073,555
$ 25,281,632 Liabilities:
Mortgages, notes and loans payable (1)
$ 14,216,160 $ 15,944,187 Investment in Unconsolidated Real Estate
Affiliates 38,488 35,598 Accounts payable and accrued expenses
784,493 934,897 Dividend payable 172,070 154,694 Deferred tax
liabilities 1,289 21,240 Junior Subordinated Notes 206,200 206,200
Liabilities held for disposition 58,934 -
Total liabilities 15,477,634
17,296,816 Redeemable noncontrolling
interests: Preferred 157,903 164,031 Common 129,724
135,265
Total redeemable noncontrolling
interests 287,627 299,296
Equity: Preferred stock 242,042 242,042 Stockholders'
Equity 8,028,001 7,363,877 Noncontrolling interests in consolidated
real estate affiliates 24,712 79,601 Noncontrolling interests
related to Long-Term Incentive Plan Common Units 13,539
-
Total equity 8,308,294
7,685,520 Total liabilities,
redeemable noncontrolling interests and equity $
24,073,555 $ 25,281,632
1
For the year ended December 31, 2014,
deferred financing costs of approximately $54.1 million were
reclassified from prepaid expenses and other assets to mortgages,
notes and loans payable due to the adoption of ASU 2015-03:
Simplifying the Presentation of Debt Issuance Costs.
PROPORTIONATE FINANCIAL
STATEMENTS
Company NOI, EBITDA and FFO
For the Three Months Ended December 31,
2015 and 2014
(In thousands)
Three Months Ended December
31, 2015 Three Months Ended December 31, 2014
Consolidated Noncontrolling
Unconsolidated Sold
Consolidated Noncontrolling
Unconsolidated Sold
Properties Interests Properties
Interests Proportionate
Adjustments Company Properties
Interests Properties Interests
Proportionate Adjustments
Company Property revenues: Minimum rents $ 387,230 $
(4,439 ) $ 144,034 $ (42 ) $ 526,783 $ (1,465 ) $ 525,318 $ 413,147
$ (4,267 ) $ 106,464 $ (15,242 ) $ 500,102 $ 2,847 $ 502,949 Tenant
recoveries 171,496 (1,580 ) 62,027 (10 ) 231,933 - 231,933 186,815
(1,728 ) 43,898 (7,378 ) 221,607 - 221,607 Overage rents 25,269
(374 ) 9,601 - 34,496 - 34,496 27,126 (309 ) 7,484 (1,597 ) 32,704
- 32,704 Other revenue 39,545 (333 )
7,923 (3,018 )
44,117 - 44,117
26,806 (322 ) 5,982
(1,358 ) 31,108
- 31,108 Total property revenues
623,540 (6,726 ) 223,585
(3,070 ) 837,329
(1,465 ) 835,864 653,894
(6,626 ) 163,828
(25,575 ) 785,521 2,847
788,368 Property operating expenses: Real
estate taxes 52,458 (523 ) 18,863 6 70,804 (1,490 ) 69,314 55,306
(864 ) 14,019 (1,595 ) 66,866 (1,490 ) 65,376 Property maintenance
costs 15,548 (125 ) 4,611 (17 ) 20,017 - 20,017 17,944 (139 ) 5,246
(715 ) 22,336 - 22,336 Marketing 9,110 (91 ) 3,422 - 12,441 -
12,441 8,728 (78 ) 2,501 (353 ) 10,798 - 10,798 Other property
operating costs 74,923 (769 ) 29,941 (15 ) 104,080 (1,030 ) 103,050
81,974 (758 ) 21,479 (3,561 ) 99,134 (1,018 ) 98,116 Provision for
doubtful accounts 1,882 (13 )
557 - 2,426
- 2,426 2,844
2 380
(94 ) 3,132 -
3,132 Total property operating expenses
153,921 (1,521 ) 57,394
(26 ) 209,768
(2,520 ) 207,248 166,796
(1,837 ) 43,625 (6,318 )
202,266 (2,508 )
199,758
NOI $ 469,619
$ (5,205 ) $ 166,191
$ (3,044 ) $
627,561 $ 1,055
$ 628,616 $ 487,098
$ (4,789 ) $
120,203 $ (19,257 )
$ 583,255 $ 5,355
$ 588,610 Management fees and
other corporate revenues 21,282 - - - 21,282 - 21,282 19,128 - 1 -
19,129 - 19,129 Property management and other costs (39,709 ) 189
(8,729 ) - (48,249 ) - (48,249 ) (35,702 ) 180 (7,801 ) 88 (43,235
) - (43,235 ) General and administrative (13,010 )
- (373 ) -
(13,383 ) - (13,383 )
(11,441 ) - (501 )
- (11,942 ) -
(11,942 )
EBITDA $ 438,182
$ (5,016 ) $
157,089 $ (3,044 )
$ 587,211 $ 1,055
$ 588,266 $ 459,083
$ (4,609 ) $
111,902 $ (19,169 )
$ 547,207 $ 5,355
$ 552,562 Depreciation on
non-income producing assets (2,941 ) - - - (2,941 ) - (2,941 )
(2,751 ) - - - (2,751 ) - (2,751 ) Interest and dividend income
14,358 387 608 - 15,353 (205 ) 15,148 8,812 386 587 - 9,785 (205 )
9,580 Preferred unit distributions (2,191 ) - - - (2,191 ) - (2,191
) (2,268 ) - - - (2,268 ) - (2,268 ) Preferred stock dividends
(3,984 ) - - - (3,984 ) - (3,984 ) (3,984 ) - - - (3,984 ) - (3,984
) Interest expense: - Mark-to-market adjustments on debt 134 - 267
- 401 (401 ) - (409 ) (100 ) 386 (18 ) (141 ) 141 - Interest on
existing debt (147,520 ) 1,657 (53,023 ) - (198,886 ) - (198,886 )
(170,602 ) 1,479 (41,640 ) 6,473 (204,290 ) - (204,290 ) Gain
(loss) on foreign currency 1,555 - - - 1,555 (1,555 ) - (11,031 ) -
- - (11,031 ) 11,031 - Benefit from (provision for) income taxes
9,253 21 (172 ) - 9,102 615 9,717 (4,417 ) 20 (340 ) - (4,737 )
(2,186 ) (6,923 ) FFO from sold interests -
- - 3,044
3,044 (3 ) 3,041
79,227 -
127 12,714 92,068
(76,567 ) 15,501 306,846 (2,951
) 104,769 - 408,664 (494 ) 408,170 351,660 (2,824 ) 71,022 -
419,858 (62,431 ) 357,427 Equity in FFO of Unconsolidated
Properties and Noncontrolling Interests 101,818
2,951 (104,769 ) -
- -
- 68,198 2,824
(71,022 ) - -
- -
FFO $
408,664 $ -
$ - $ -
$ 408,664 $ (494 )
$ 408,170 $ 419,858
$ - $ -
$ - $
419,858 $ (62,431 )
$ 357,427 Company FFO per
diluted share $ 0.43 $ 0.38
PROPORTIONATE FINANCIAL
STATEMENTS
Company NOI, EBITDA and FFO
For the Twelve Months Ended December
31, 2015 and 2014
(In thousands)
Twelve Months Ended December
31, 2015 Twelve Months Ended December 31, 2014
Consolidated Noncontrolling
Unconsolidated Sold
Consolidated Noncontrolling
Unconsolidated Sold
Properties Interests Properties
Interests Proportionate
Adjustments Company Properties
Interests Properties Interests
Proportionate Adjustments
Company Property revenues: Minimum rents $ 1,481,614
$ (16,780 ) $ 515,813 $ (10,493 ) $ 1,970,154 $ 26,296 $ 1,996,450
$ 1,583,695 $ (16,609 ) $ 391,255 $ (63,188 ) $ 1,895,153 $ 25,909
$ 1,921,062 Tenant recoveries 689,536 (6,790 ) 225,563 (5,284 )
903,025 - 903,025 739,411 (6,743 ) 172,255 (29,076 ) 875,847 -
875,847 Overage rents 44,024 (603 ) 19,448 (442 ) 62,427 - 62,427
51,611 (528 ) 14,897 (4,405 ) 61,575 - 61,575 Other revenue
101,638 (1,105 ) 25,328
(3,383 ) 122,478 -
122,478 89,999
(1,146 ) 16,036 (5,192 )
99,697 -
99,697 Total property revenues 2,316,812
(25,278 ) 786,152
(19,602 ) 3,058,084 26,296
3,084,380 2,464,716
(25,026 ) 594,443
(101,861 ) 2,932,272 25,909
2,958,181 Property operating expenses:
Real estate taxes 222,883 (2,992 ) 67,531 (1,254 ) 286,168 (5,958 )
280,210 227,992 (2,853 ) 54,130 (5,927 ) 273,342 (5,958 ) 267,384
Property maintenance costs 60,040 (452 ) 20,650 (582 ) 79,656 -
79,656 66,897 (448 ) 18,886 (2,949 ) 82,386 - 82,386 Marketing
21,958 (249 ) 9,893 (339 ) 31,263 - 31,263 24,654 (248 ) 7,341
(1,605 ) 30,142 - 30,142 Other property operating costs 302,797
(3,009 ) 106,528 (1,837 ) 404,479 (4,086 ) 400,393 333,620 (3,007 )
83,914 (13,861 ) 400,666 (4,096 ) 396,570 Provision for doubtful
accounts 8,081 (51 )
2,709 (50 ) 10,689
- 10,689 8,055
(58 ) 1,373 (214 )
9,156 -
9,156 Total property operating expenses 615,759
(6,753 ) 207,311
(4,062 ) 812,255 (10,044
) 802,211 661,218
(6,614 ) 165,644 (24,556 )
795,692 (10,054 )
785,638
NOI $ 1,701,053
$ (18,525 ) $ 578,841
$ (15,540 ) $
2,245,829 $ 36,340
$ 2,282,169 $ 1,803,498
$ (18,412 ) $
428,799 $ (77,305 )
$ 2,136,580 $
35,963 $ 2,172,543
Management fees and other corporate revenues 86,595 - - - 86,595 -
86,595 70,887 - - - 70,887 - 70,887 Property management and other
costs (161,556 ) 720 (32,083 ) 170 (192,749 ) - (192,749 ) (155,093
) 670 (28,477 ) 318 (182,582 ) - (182,582 ) General and
administrative (50,405 ) -
(7,468 ) - (57,873 )
- (57,873 ) (64,051 )
2 (4,389 ) -
(68,438 ) 17,854
(50,584 )
EBITDA $ 1,575,687
$ (17,805 ) $
539,290 $ (15,370 )
$ 2,081,802 $
36,340 $ 2,118,142
$ 1,655,241 $ (17,740
) $ 395,933 $
(76,987 ) $ 1,956,447
$ 53,817 $
2,010,264 Depreciation on non-income producing assets
(11,360 ) - - - (11,360 ) - (11,360 ) (11,806 ) - - - (11,806 ) -
(11,806 ) Interest and dividend income 49,254 1,546 2,569 - 53,369
(818 ) 52,551 28,613 1,546 2,155 (6 ) 32,308 (484 ) 31,824
Preferred unit distributions (8,883 ) - - - (8,883 ) - (8,883 )
(8,965 ) - - - (8,965 ) - (8,965 ) Preferred stock dividends
(15,937 ) - - - (15,937 ) - (15,937 ) (15,936 ) - - - (15,936 ) -
(15,936 ) Interest expense: Mark-to-market adjustments on debt 283
(101 ) 1,425 (252 ) 1,355 (1,355 ) - (3,013 ) (391 ) 1,512 (79 )
(1,971 ) 1,971 - Write-off of mark-to-market adjustments on
extinguished debt (13,454 ) (136 ) - - (13,590 ) 13,590 - (9,831 )
- - - (9,831 ) 9,831 - Interest on existing debt (594,504 ) 6,428
(207,811 ) 5,317 (790,570 ) - (790,570 ) (686,440 ) 5,982 (152,794
) 22,585 (810,667 ) - (810,667 ) Loss on foreign currency (44,984 )
- - - (44,984 ) 44,984 - (18,048 ) - - - (18,048 ) 18,048 - Benefit
from (provision for) income taxes 38,334 57 (444 ) - 37,947 (16,551
) 21,396 (7,253 ) 74 (633 ) - (7,812 ) (4,961 ) (12,773 ) FFO from
sold interests - -
- 10,305 10,305
1,162 11,467
161,126 - 865
54,485 216,476
(142,768 ) 73,708 974,436 (10,011 )
335,029 - 1,299,454 77,352 1,376,806 1,083,688 (10,529 ) 247,038 (2
) 1,320,195 (64,546 ) 1,255,649
Equity in FFO of Unconsolidated Properties
and Noncontrolling Interests
325,018 10,011
(335,029 ) - -
- - 236,509
10,529 (247,038 ) 2
2 -
2
FFO $ 1,299,454
$ - $ -
$ - $ 1,299,454
$ 77,352 $
1,376,806 $ 1,320,197
$ - $ -
$ - $ 1,320,197
$ (64,546 ) $
1,255,651 Company FFO per diluted share
$ 1.44 $ 1.32
PROPORTIONATE FINANCIAL
STATEMENTS
Reconciliation of Non-GAAP to GAAP
Financial Measures
(In thousands)
Three Months Ended
Twelve Months Ended December 31, December
31, December 31, December 31, 2015
2014 2015 2014
Reconciliation of Company NOI to GAAP Operating Income
Company NOI $ 628,616 $ 588,610 $ 2,282,169 $ 2,172,543
Adjustments for minimum rents, real estate taxes and other property
operating costs (1,055 ) (5,355 )
(36,340 ) (35,963 ) Proportionate NOI 627,561 583,255
2,245,829 2,136,580 Unconsolidated Properties (166,191 ) (120,203 )
(578,841 ) (428,799 ) NOI of sold interests 3,044 19,257 15,540
77,305 Noncontrolling interest in NOI of Consolidated
Properties 5,205 4,789
18,525 18,412 Consolidated Properties
469,619 487,098 1,701,053 1,803,498 Management fees and other
corporate revenues 21,282 19,128 86,595 70,887 Property management
and other costs (39,709 ) (35,702 ) (161,556 ) (155,093 ) General
and administrative (13,010 ) (11,441 ) (50,405 ) (64,051 )
Provisions for impairment (8,604 ) (5,278 ) (8,604 ) (5,278 )
Depreciation and amortization (160,663 ) (179,478 ) (643,689 )
(708,406 ) (Loss) gain on sales of investment properties
(188
) -
499
(44 )
Operating income $
268,727
$ 274,327 $
923,893
$ 941,513
Reconciliation of Company EBITDA to GAAP Net Income Attributable
to GGP Company EBITDA $ 588,266 $ 552,562 $ 2,118,142 $
2,010,264 Adjustments for minimum rents, real estate taxes,
other property operating costs, and general and administrative
(1,055 ) (5,355 ) (36,340 )
(53,817 ) Proportionate EBITDA 587,211 547,207 2,081,802
1,956,447 Unconsolidated Properties (157,089 ) (111,902 ) (539,290
) (395,933 ) EBITDA of sold interests 3,044 19,169 15,370 76,987
Noncontrolling interest in EBITDA of Consolidated Properties
5,016 4,609 17,805
17,740 Consolidated Properties 438,182 459,083
1,575,687 1,655,241 Depreciation and amortization (160,663 )
(179,478 ) (643,689 ) (708,406 ) Interest income 14,358 8,812
49,254 28,613 Interest expense (147,386 ) (171,012 ) (607,675 )
(699,285 ) Gain (loss) on foreign currency 1,555 (11,031 ) (44,984
) (18,048 ) Benefit from (provision for) income taxes 9,253 (4,417
) 38,334 (7,253 ) Provision for impairment excluded from FFO (8,604
) (5,278 ) (8,604 ) (5,278 ) Equity in income of Unconsolidated
Real Estate Affiliates
32,275
17,700
73,390
51,568 Equity in income of Unconsolidated Real Estate Affiliates -
gain on investment
6,067
9,710
327,017
9,710 Discontinued operations - 78,236 - 281,883 Gains from changes
in control of investment properties and other
11,780
91,193
634,367
91,193 (Loss) gain on sales of investment properties
(188
) -
499
(44 ) Allocation to noncontrolling interests (2,588 )
(4,036 ) (19,035 ) (14,044 )
Net
income attributable to GGP $ 194,041
$ 289,482 $ 1,374,561
$ 665,850
Reconciliation of Company FFO to GAAP Net Income Attributable to
GGP Company FFO $ 408,170 $ 357,427 $ 1,376,806 $ 1,255,651
Adjustments for minimum rents, property operating expenses,
general and administrative, market rate adjustments, debt
extinguishment, income taxes, and FFO from discontinued operations
494 62,431 (77,352 )
64,546 Proportionate FFO 408,664 419,858
1,299,454 1,320,197 Depreciation and amortization of capitalized
real estate costs (230,231 ) (229,984 ) (890,838 ) (893,419 ) Gain
from change in control of investment properties and other 11,708
91,193 634,119 91,193 Preferred stock dividends 3,984 3,984 15,937
15,936
(Loss) Gain on sales of investment
properties
(162
)
659
(2,687
) 131,977 Equity in income of Unconsolidated Real Estate Affiliates
- gain on investment
6,067
9,710
327,017
9,710 Noncontrolling interests in depreciation of Consolidated
Properties 1,850 2,246 7,754 8,731 Provision for impairment
excluded from FFO (8,604 ) (5,278 ) (8,604 ) (5,278 ) Redeemable
noncontrolling interests 693 (1,179 ) (7,839 ) (3,228 )
Depreciation and amortization of discontinued operations -
(1,727 ) - (9,969
)
Net income attributable to GGP $ 194,041
$ 289,482 $
1,374,561 $ 665,850
Reconciliation of Equity in NOI of Unconsolidated
Properties to GAAP Equity in Income of Unconsolidated Real Estate
Affiliates Equity in Unconsolidated Properties: NOI $ 166,191 $
120,203 $ 578,841 $ 428,799 Net property management fees and costs
(8,729 ) (7,800 ) (32,083 ) (28,477 ) General and
administrative and provisions for impairment (373 )
(501 ) (7,468 ) (4,389 ) EBITDA 157,089
111,902 539,290 395,933 Net interest expense (52,148 ) (40,667 )
(203,817 ) (149,127 ) Provision for income taxes (172 ) (340 ) (444
) (633 ) FFO of discontinued Unconsolidated Properties
- 127 -
865 FFO of Unconsolidated Properties 104,769 71,022
335,029 247,038 Depreciation and amortization of capitalized real
estate costs (72,509 ) (53,335 ) (258,507 ) (197,129 )
Other, including gain (loss) on sales of
investment properties
15
13
(3,132
) 1,659
Equity in income of Unconsolidated
Real Estate Affiliates $
32,275
$ 17,700 $
73,390
$ 51,568
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160201006269/en/
General Growth Properties, Inc.Kevin Berry, (312) 960-5529VP
Investor Relationskevin.berry@ggp.com
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