GGP Inc. (the “Company” or “GGP”) (NYSE: GGP) today reported
results for the three and nine months ended September 30, 2017.
GAAP Operating Results
- For the three months ended September
30, 2017, net income attributable to GGP was $223 million, or $0.23
per diluted share, as compared to $674 million, or $0.70 per
diluted share, in the prior year period. For the nine months ended
September 30, 2017, net income attributable to GGP was $456
million, or $0.47 per diluted share, as compared to $1.05 billion,
or $1.09 per diluted share, in the prior year period.
- Net income attributable to GGP
decreased 67.0% from the prior year period primarily due to 2016
gains related to the sale of interests in three properties.
- The Company declared a fourth quarter
common stock dividend of $0.22 per share. The full year dividend of
$0.88 cents represents an increase of 10% over 2016.
Company Operating
Results1
- Company Same Store Net Operating Income
(“Company Same Store NOI”) increased 2.0% and 1.8% from the prior
year period for the three and nine months ended September 30, 2017,
respectively.
- For the three months ended September
30, 2017, Company Net Operating Income (“Company NOI”) as adjusted
was $561 million as compared to $546 million in the prior year
period, an increase of 2.8%. For the nine months ended September
30, 2017, Company NOI as adjusted was $1.67 billion as compared to
$1.64 billion, an increase of 2.4%.2
- For the three months ended September
30, 2017, Company Earnings Before Interest, Taxes, Depreciation and
Amortization (“Company EBITDA”) as adjusted was $532 million as
compared to $507 million in the prior year period, an increase of
4.8%. For the nine months ended September 30, 2017, Company EBITDA
as adjusted was $1.56 billion as compared to $1.51 billion, an
increase of 3.3%.2
- For the three months ended September
30, 2017, Company Funds From Operations (“Company FFO”) was $355
million, or $0.37 per diluted share, as compared to $336 million,
or $0.35 per diluted share, in the prior year period. For the nine
months ended September 30, 2017, Company FFO was $1.04 billion, or
$1.09 per diluted share, as compared to $1.06 billion, or $1.10 per
diluted share, in the prior year period.
- Same Store leased percentage was 96.5%
at quarter end.
- Initial NOI weighted rental rates for
signed leases that have commenced in the trailing twelve months on
a suite-to-suite basis increased 14.9% when compared to the rental
rate for expiring leases.
- For the trailing twelve months, NOI
weighted tenant sales per square foot (<10K sf) were $708 an
increase of 2.1% over the prior year.
- Tenant sales (all less anchors)
increased 0.1% on a trailing 12-month basis, excluding apparel the
increase is 2.5%.
1. See
“Non-GAAP Supplemental Financing Measures and Definitions” on page
5 of this earnings release for a discussion of non-GAAP financial
measures used in this release. This discussion includes the
definitions of Proportionate or At Share Basis, Net Operating
Income (“NOI”), Company NOI, Company Same Store NOI, Earnings
Before Interest Expense, Income Tax, Depreciation and Amortization
(“EBITDA”), Company EBITDA, Funds from Operations (“FFO”) and
Company FFO, and a reconciliation of non-GAAP financial measures to
GAAP financial measures. 2. See Supplemental Information page 4 for
items included as adjustments.
Investment Activities
Development
The Company’s development and redevelopment activities total
$1.5 billion, of which approximately $1.3 billion is under
construction and $0.2 billion is in the pipeline.
Acquisitions
In the third quarter, the Company closed on two transactions
with Seritage Growth Properties for gross consideration of $247.6
million. Pursuant to the transactions, the Company (i) acquired the
remaining 50% interest in eight of the 12 assets in the existing
joint venture between the two companies for $190.1 million and (ii)
acquired a 50% joint venture interest in five additional assets for
$57.5 million.
In the third quarter, the Company entered into transactions that
increased its ownership in 218 W. 57th Street, 530 Fifth Avenue,
and 685 Fifth Avenue to 99.9%, 90.23%, and 96.1%,
respectively. The transactions gave the Company control of
each of the assets.
Common Share Repurchase
During the quarter, the Company acquired approximately 9.3
million of its common shares at a weighted average price of $21.19
per share for total consideration of approximately $196.8
million.
Financing Activities
The Company obtained $325 million of new fixed rate debt with
term to maturity of 10.0 years and an interest rate of 3.98%.
Subsequent Events
On October 3, 2017, the Company acquired a 100% interest in 2
anchor boxes at Neshaminy Mall and Oakwood Center located in
Bensalem, Pennsylvania and Greta, Louisiana, respectively.
Additionally, the Company terminated leases at 2 anchor boxes at
Oxmoor Center and at Crossroads Center located in Louisville,
Kentucky and St. Cloud, Minnesota, respectively. The net
consideration of the 2 acquired anchor boxes and 2 anchor box lease
terminations was $20.5 million.
On October 6, 2017, certain affiliates of Brookfield Asset
Management Inc. exercised warrants to purchase approximately 69
million shares of common stock. The Company received consideration
of approximately $462.4 million. Of the approximately 69 million
shares issued, 49 million were previously included in our fully
diluted FFO/share count.
On October 25, 2017, Abu Dhabi Investment Authority exercised
approximately 5.5 million warrants that were net share settled for
approximately 4.3 million shares.
Dividends
On October 31, 2017, the Company’s Board of Directors declared a
fourth quarter common stock dividend of $0.22 per share payable on
January 5, 2018, to stockholders of record on December 15,
2017.
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 January 2, 2018, to stockholders of record on
December 15, 2017.
Guidance
For the three months ending Earnings Guidance
December 31, 2017
Net income attributable to GGP $0.21- $0.23 Preferred stock
dividends (0.01 ) Net income attributable to common stockholders
$0.20 - $0.22 Loss (gain) from changes in control and other -
Depreciation, including share of JVs 0.25 NAREIT FFO $0.45 -
$0.47 Adjustments 1 0.01 Company FFO per diluted share
$0.46 - $0.48 1. Includes impact
of straight-line rent, above/below market rent, gain/loss on
foreign currency and other items. For discussion on the purpose and
use of these adjustments please see the Non-GAAP Supplemental
Financial Measures and Definitions section on page ER5.
The guidance estimate reflects management’s view of current and
future market conditions, including assumptions with respect to
Company Same Store NOI and Operating Income 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
future gains or losses, or the impact on operating results from
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 exclude 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, October 31, 2017, 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 95386850.
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 assumptions, 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.investor.ggp.com from time to time.
GGP Inc.
GGP 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
Proportionate or At Share Basis
The following Non-GAAP supplemental financial measures are all
presented on a proportionate basis. The proportionate financial
information presents the consolidated and unconsolidated properties
at the Company’s ownership percentage or “at share”. This form of
presentation offers insights into the financial performance and
condition of the Company as a whole, given the significance of the
Company’s unconsolidated property operations that are owned through
investments accounted for under GAAP using the equity method.
The proportionate financial information is not, and is not
intended to be, a presentation in accordance with GAAP. The
non-GAAP proportionate financial information reflects our
proportionate economic ownership of each asset in our property
portfolio that we do not wholly own. The amounts in the column
labeled "Noncontrolling Interests" were derived on a
property-by-property basis by including the share attributable to
noncontrolling interests in each line item from each individual
property. The Company does not have legal claim to the
noncontrolling interest of assets, liabilities, revenue, and
expenses. The amount of cash each noncontrolling interest receives
is based on the specific provisions of each operating agreement and
varies depending on certain factors including the amount of capital
contributed by each investor and whether any investors are entitled
to preferential distributions. The amounts in the column labeled
"Unconsolidated Properties" were derived on a property-by-property
basis by including our share of each line item from each individual
entity. This provides visibility into our share of the operations
of our joint ventures.
We do not control the unconsolidated joint ventures and the
presentations of the assets and liabilities and revenues and
expenses do not represent our legal claim to such items. The
operating agreements of the unconsolidated joint ventures generally
provide that partners may receive cash distributions (1) to the
extent there is available cash from operations, (2) upon a capital
event, such as a refinancing or sale or (3) upon liquidation of the
venture. The amount of cash each partner receives is based upon
specific provisions of each operating agreement and varies
depending on factors including the amount of capital contributed by
each partner and whether any contributions are entitled to priority
distributions. Upon liquidation of the joint venture and after all
liabilities, priority distributions and initial equity
contributions have been repaid, the partners generally would be
entitled to any residual cash remaining based on their respective
legal ownership percentages.
We provide Non-GAAP proportionate financial information because
we believe it assists investors and analysts in estimating our
economic interest in our unconsolidated joint ventures when read in
conjunction with the Company's reported results under GAAP. Other
companies in our industry may calculate their proportionate
interest differently than we do, limiting the usefulness as a
comparative measure. Because of these limitations, the Non-GAAP
proportionate financial information should not be considered in
isolation or as a substitute for our financial statements as
reported under GAAP.
Net Operating Income (“NOI”), Company NOI and Company Same
Store NOI
The Company defines NOI as proportionate income from operations
and after operating expenses have been deducted, but prior to
deducting financing, property management, administrative and income
tax expenses. NOI excludes management fees and other corporate
revenue and reductions in ownership as a result of sales or other
transactions. 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,
management fees and other corporate revenue, general and
administrative and property management 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, 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 items such as straight-line rent, and
amortization of intangibles resulting from 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, Company EBITDA 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.
Adjustments to NOI, EBITDA and FFO, including debt
extinguishment costs, market rate adjustments on debt,
straight-line rent, intangible asset and liability amortization,
real estate tax stabilization, gains and losses on foreign currency
and other items that are not a result of normal operations, assist
management and investors in distinguishing whether increases or
decreases in revenues and/or expenses are due to growth or decline
of operations at the properties or from other factors. In addition,
the Company’s leases include step rents that increase over the term
of the lease to compensate the Company for anticipated increases in
market rentals over time. The Company’s leases do not include
significant front loading or back loading of payments or
significant rent-free periods. Therefore, we find it useful to
evaluate rent on a contractual basis as it allows for comparison of
existing rental rates to market rental rates. Management has
historically made these adjustments in evaluating our performance,
in our annual budget process and for our compensation programs.
The Company defines Company Same Store NOI as Company NOI
excluding periodic effects of full or partial acquisitions of
properties and certain redevelopments (for the list of properties
included in Company Same Store NOI see the Property Schedule in our
Supplemental Information). We do not include an acquired property
in our Company Same Store NOI until the operating results for that
property have been included in our consolidated results for one
full calendar year. Properties that we sell are excluded from
Company NOI and Company Same Store NOI for all periods once the
transaction has closed.
The Company considers Company Same Store NOI a helpful
supplemental measure of its operating performance because it
assists management and investors in distinguishing whether
increases or decreases in revenues and/or expenses are due to
growth or decline of operations at comparable properties or from
other factors, such as the effect of acquisitions. For these
reasons, we believe that Company Same Store NOI, when combined with
GAAP operating income provides useful information to investors and
management.
Other REITs may use different methodologies for calculating,
NOI, Company NOI and Company Same Store NOI, and accordingly, the
Company’s Company Same Store NOI may not be comparable to other
REITs. As a result of the elimination of corporate-level costs and
expenses and depreciation and amortization, the Company Same Store
NOI we present does not represent our total revenues, expenses,
operating profit or net income and should not be used to evaluate
our performance as a whole. Management compensates for these
limitations by separately considering the impact of these excluded
items, to the extent they are material, to operating decisions or
assessments of our operating performance. Our consolidated GAAP
statements of operations include such amounts, all of which should
be considered by investors when evaluating our 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 corporate revenues. 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
Company EBITDA to evaluate property-level results and as one
measure in determining the value of acquisitions and dispositions
and, like FFO and Same Store NOI (discussed below), it is widely
used by management in the annual budget process and for
compensation programs. Please see adjustments discussion above for
the purpose and use of the adjustments included in Company
EBITDA.
EBITDA and Company EBITDA, as presented, may not be comparable
to similar measures calculated by other companies. This information
should not be considered as an alternative to net income, operating
profit, cash from operations or any other operating performance
measure calculated in accordance with GAAP.
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) attributable to common shareholders
and redeemable non-controlling common unit holders 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.
We calculate FFO in accordance with standards established by
NAREIT, which may not be comparable to measures calculated by other
companies who do not use the NAREIT definition of FFO or do not
calculate FFO in accordance with NAREIT guidance. In addition,
although FFO is a useful measure when comparing our results to
other REITs, it may not be helpful to investors when comparing us
to non-REITs. As with the presentation of Company NOI and Company
EBITDA, we also consider Company FFO, which is not in accordance
with NAREIT guidance and may not be comparable to measures
calculated by other REITs, to be a helpful supplemental measure of
our operating performance. Please see adjustments discussion above
for the purpose and use of the adjustments included in Company
FFO.
FFO and Company FFO do not represent cash flow from operations
as defined by GAAP, should not be considered as an alternative to
net income determined in accordance with GAAP as a measure of
operating performance, and is not an alternative to cash flows as a
measure of liquidity or indicative of funds available to fund our
cash needs. In addition, Company FFO per diluted share does not
measure, and should not be used as a measure of, amounts that
accrue directly to stockholders’ benefit.
Reconciliation of Non-GAAP Financial Measures to GAAP
Financial Measures
The Company presents NOI, EBITDA 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, EBITDA, Company
EBITDA, FFO and Company FFO, reconciliations have been provided as
follows: a reconciliation of GAAP operating income to Company NOI
and Company Same Store NOI, a reconciliation of GAAP net income
attributable to GGP to EBITDA and Company EBITDA, and a
reconciliation of GAAP 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 flow. In addition, the Company has presented
such financial measures on a consolidated and unconsolidated basis
(at the Company’s proportionate share) as the Company believes that
given the significance of the Company’s operations that are owned
through investments accounted for by 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.
GAAP FINANCIAL STATEMENTS Consolidated Balance Sheets
(In thousands)
September 30,
2017 December 31, 2016 Assets: Investment in real
estate: Land $ 3,320,747 $ 3,066,019 Buildings and equipment
17,345,596 16,091,582 Less accumulated depreciation (3,056,259 )
(2,737,286 ) Construction in progress 422,218
251,616 Net property and equipment 18,032,302 16,671,931
Investment in and loans to/from Unconsolidated Real Estate
Affiliates 3,479,811 3,868,993 Net
investment in real estate 21,512,113 20,540,924 Cash and cash
equivalents 311,107 474,757 Accounts receivable, net 324,579
322,196 Notes receivable, net 415,499 678,496 Deferred expenses,
net 267,478 209,852 Prepaid expenses and other assets
495,240 506,521
Total assets $
23,326,016 $ 22,732,746
Liabilities: Mortgages, notes and loans payable $ 13,493,872
$ 12,430,418 Investment in Unconsolidated Real Estate Affiliates
27,610 39,506 Accounts payable and accrued expenses 778,613 655,362
Dividend payable 199,315 433,961 Deferred tax liabilities 4,890
3,843 Junior Subordinated Notes 206,200
206,200
Total liabilities 14,710,500
13,769,290 Redeemable noncontrolling
interests: Preferred 52,256 144,060 Common 173,930
118,667
Total redeemable noncontrolling
interests 226,186 262,727
Equity: Preferred stock 242,042 242,042 Stockholders'
Equity 8,047,520 8,393,722 Noncontrolling interests in consolidated
real estate affiliates 54,110 33,583 Noncontrolling interests
related to long-term incentive plan common units 45,658
31,382
Total equity
8,389,330 8,700,729 Total
liabilities, redeemable noncontrolling interests and equity
$ 23,326,016 $ 22,732,746
GAAP FINANCIAL STATEMENTS Consolidated Statements of
Income (In thousands, except per share)
Three
Months Ended Nine Months Ended September 30, 2017
September 30, 2016 September 30, 2017
September 30, 2016 Revenues: Minimum rents $
363,857 $ 347,676 $ 1,062,075 $ 1,082,220 Tenant recoveries 160,755
162,031 485,737 504,242 Overage rents 4,582 6,505 13,799 19,024
Management fees and other corporate revenues 28,806 20,428 77,797
73,087 Other 20,357 17,853
61,079 57,539
Total revenues
578,357 554,493
1,700,487 1,736,112
Expenses: Real estate taxes 61,516 58,239 178,053 173,651
Property maintenance costs 10,281 11,576 35,980 41,014 Marketing
1,744 2,244 5,185 7,036 Other property operating costs 75,848
73,479 214,742 215,474 Provision for doubtful accounts 2,152 574
8,769 5,685 Property management and other costs 35,195 37,760
115,334 106,787 Provision for loan loss - (6,659 ) - 29,410 General
and administrative 12,037 13,237 42,582 41,313 Provision for
impairment - 28,276 - 73,039 Depreciation and amortization
161,278 182,350 505,875
499,269
Total expenses 360,051
401,076 1,106,520
1,192,678 Operating income
218,306 153,417
593,967 543,434 Interest and
dividend income 15,948 14,114 51,336 43,507 Interest expense
(135,980 ) (141,296 ) (402,512 ) (437,338 ) Gain (loss) on foreign
currency 3,889 (657 ) 3,195 16,172 Gain from changes in control of
investment properties and other, net 95,165 620,309 79,325 733,416
Gain on extinguishment of debt - -
55,112 -
Income before income taxes,
equity in income of Unconsolidated Real Estate Affiliates, and
allocation to noncontrolling interests 197,328
645,887 380,423 899,191 (Provision for)
benefit from income taxes (6,993 ) (49 ) (15,347 ) (728 ) Equity in
income of Unconsolidated Real Estate Affiliates 35,937 35,651
99,884 127,759 Unconsolidated Real Estate Affiliates - gain on
investment - 259 -
40,765
Net income 226,272 681,748
464,960 1,066,987 Allocation to noncontrolling
interests (3,492 ) (7,570 ) (9,157 )
(15,083 )
Net income attributable to GGP 222,780
674,178 455,803 1,051,904 Preferred stock
dividends (3,984 ) (3,984 ) (11,952 )
(11,951 )
Net income attributable to common stockholders
$ 218,796 $ 670,194
$ 443,851 $ 1,039,953
Basic earnings per share
$ 0.25 $ 0.76 $
0.50 $ 1.18 Diluted earnings
per share $ 0.23 $ 0.70
$ 0.47 $ 1.09
NON-GAAP PROPORTIONATE FINANCIAL INFORMATION
Reconciliation of GAAP to Non-GAAP Financial Measures (In
thousands, except per share)
Three
Months Ended Nine Months Ended September 30, 2017
September 30, 2016
September 30, 2017 September 30, 2016
Reconciliation of
GAAP Operating Income to Company Same Store NOI
Operating Income $ 218,306 $ 153,417 $ 593,967 $
543,434 Loss (gain) on sales of investment properties 172 1,016
(956 ) 1,016 Depreciation and amortization 161,278 182,350 505,875
499,269 (Recovery of) provision for loan loss - (6,659 ) - 29,410
Provision for impairment - 28,276 - 73,039 General and
administrative 12,037 13,237 42,582 41,313 Property management and
other costs 35,195 37,760 115,334 106,787 Management fees and other
corporate revenues (28,806 ) (20,428 )
(77,797 ) (73,087 ) Consolidated Properties 398,182
388,969 1,179,005 1,221,181 Noncontrolling interest in NOI of
Consolidated Properties (4,775 ) (3,734 ) (15,595 ) (11,080 ) NOI
of sold interests 105 (11,195 ) (9,035 ) (61,853 )
Unconsolidated Properties 177,649
176,699 539,579 530,937
Proportionate NOI 571,161 550,739 1,693,954 1,679,185 Company
adjustments: Minimum rents 2,411 7,114 14,087 13,587 Real estate
taxes 1,490 1,490 4,469 4,469 Property operating expenses
788 754 2,364
2,358 Company NOI 575,850
560,097 1,714,874
1,699,599 Less Company Non-Same Store NOI 19,734
14,781 54,030
67,458 Company Same Store NOI $ 556,116
$ 545,316 $ 1,660,844 $ 1,632,141
Reconciliation of
GAAP Net Income Attributable to GGP to Company
EBITDA
Net Income Attributable to GGP $ 222,780 $ 674,178 $ 455,803 $
1,051,904 Allocation to noncontrolling interests 3,492 7,570 9,157
15,083 Loss (gain) on sales of investment properties 172 1,016 (956
) 1,016 Gain on extinguishment of debt - - (55,112 ) - Gains from
changes in control of investment properties and other (95,165 )
(620,309 ) (79,325 ) (733,416 ) Unconsolidated Real Estate
Affiliates - gain on investment - (259 ) - (40,765 ) Equity in
income of Unconsolidated Real Estate Affiliates (35,937 ) (35,651 )
(99,884 ) (127,759 ) (Recovery of) provision for loan loss - (6,659
) - 29,410 Provision for impairment - 28,276 - 73,039 Provision for
income taxes 6,993 49 15,347 728 (Gain) loss on foreign currency
(3,889 ) 657 (3,195 ) (16,172 ) Interest expense 135,980 141,296
402,512 437,338 Interest and dividend income (15,948 ) (14,114 )
(51,336 ) (43,507 ) Depreciation and amortization 161,278
182,350 505,875
499,269 Consolidated Properties 379,756 358,400
1,098,886 1,146,168 Noncontrolling interest in EBITDA of
Consolidated Properties (4,595 ) (3,599 ) (14,990 ) (10,665 )
EBITDA of sold interests 105 (11,022 ) (8,871 ) (61,149 )
Unconsolidated Properties 166,347
167,912 508,753 504,458
Proportionate EBITDA 541,613 511,691 1,583,778 1,578,812 Company
adjustments: Minimum rents 2,411 7,114 14,087 13,587 Real estate
taxes 1,490 1,490 4,469 4,469 Property operating expenses
788 754 2,364
2,358 Company EBITDA $ 546,302 $
521,049 $ 1,604,698 $ 1,599,226
Reconciliation of
GAAP Net Income Attributable to GGP to Company FFO
Net Income Attributable to GGP $ 222,780 $ 674,178 $ 455,803 $
1,051,904 Redeemable noncontrolling interests 2,361 5,051 4,165
7,934 Provision for impairment excluded from FFO - 28,276 - 73,039
Noncontrolling interests in depreciation of Consolidated Properties
(2,029 ) (1,592 ) (6,812 ) (4,875 ) Unconsolidated Real Estate
Affiliates - gain on investment - (259 ) - (40,765 ) (Gain) loss on
sales of investment properties (1,394 ) 1,017 (2,523 ) 1,016
Preferred stock dividends (3,984 ) (3,984 ) (11,952 ) (11,951 )
Gains from changes in control of investment properties and other
(95,165 ) (620,309 ) (79,325 ) (733,416 ) Depreciation and
amortization of capitalized real estate costs - Consolidated
Properties 157,038 178,105 492,886 487,803 Depreciation and
amortization of capitalized real estate costs - Unconsolidated
Properties 75,477 73,891
224,036 209,237 FFO 355,084 334,374
1,076,278 1,039,926 Company adjustments: Minimum rents 2,411 7,114
14,087 13,587 Real estate taxes 1,490 1,490 4,469 4,469 Property
operating expenses 788 754 2,364 2,358 Investment income, net (205
) (205 ) (614 ) (614 ) Market rate adjustments (1,122 ) (1,287 )
(3,454 ) (3,960 ) Write-off of mark-to-market adjustments on
extinguished debt - (2,290 ) - (2,290 ) (Recovery of) provision for
loan loss - (6,659 ) - 21,891 (Gain) loss on foreign currency
(3,889 ) 657 (3,195 ) (16,172 ) Benefit from (provision for) income
taxes - 2,093 - (2,262 ) FFO from sold interests -
195 (54,444 )
2,160 Company FFO $ 354,557 $ 336,236 $
1,035,491 $ 1,059,093
Reconciliation of
Net Income Attributable to GGP per diluted share to Company FFO per
diluted share
Net Income Attributable to GGP per diluted share $ 0.23 $ 0.70 $
0.48 $ 1.09 Preferred stock dividends -
- (0.01 ) (0.01 ) Net income
attributable to common stockholders per diluted share 0.23 0.70
0.47 1.08 Redeemable noncontrolling interests - 0.01 - 0.01
Provision for impairment excluded from FFO - 0.03 - 0.08
Noncontrolling interests in depreciation of Consolidated Properties
- - (0.01 ) (0.01 ) Unconsolidated Real Estate Affiliates - gain on
investment - - - (0.04 ) Gains from changes in control of
investment properties and other (0.10 ) (0.64 ) (0.08 ) (0.76 )
Depreciation and amortization of capitalized real estate costs
0.24 0.25 0.75
0.72 FFO per diluted share 0.37 0.35 1.13 1.08
Company adjustments: Minimum rents - 0.01 0.02 0.01 Property
operating expenses - - - 0.01 (Recovery of) provision for loan loss
- (0.01 ) - 0.02 Gain on foreign currency - - - (0.02 ) FFO
from sold interests - -
(0.06 ) - Company FFO per diluted share $ 0.37
$ 0.35 $ 1.09 $ 1.10
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171031005604/en/
GGP Inc.Kevin BerrySVP Investor and Public Relations(312)
960-5529kevin.berry@ggp.com
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