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  

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