GGP Reports Full Year 2013 Results
Same Store NOI Increases 6.0%; Company EBITDA Increases 4.3%
Company FFO per Share Increases 18.2%
Announces 2014 Guidance
CHICAGO, Feb. 3, 2014 /PRNewswire/ -- General Growth Properties, Inc. (the "Company" or "GGP") (NYSE: GGP) today reported results for the three and twelve months ended December 31, 2013.
Financial Results
For the Three Months Ended December 31, 2013
Company Funds from Operations ("Company FFO") per share increased 17.0% to $0.36 per diluted share from $0.31 per diluted share in the prior year period. Company FFO increased 11.3% to $347 million from $311 million in the prior year period.
Company Earnings Before Interest, Taxes, Depreciation and Amortization ("Company EBITDA") increased 3.7% to $556 million from $536 million in the prior year period.
Comparable Net Operating Income ("Same Store NOI") increased 6.2% to $582 million from $548 million in the prior year period.
Net income attributable to GGP, which is impacted primarily by depreciation expense, provisions for impairment and a gain from change in control of investment properties, was $77 million, or $0.07 per diluted share, as compared to $32 million, or $0.04 per diluted share, in the prior year period.
For the Twelve Months Ended December 31, 2013
Company FFO per share increased 18.2% to $1.16 per diluted share from $0.98 per diluted share in the prior year period. Company FFO increased 15.7% to $1,148 million from $992 million in the prior year period.
Company EBITDA increased 4.3% to $2,015 million from $1,932 million in the prior year period.
Same Store NOI increased 6.0% to $2,112 million from $1,993 million in the prior year period.
Net income attributable to GGP, which is impacted primarily by depreciation expense, a gain from change in control of investment properties and a non-cash accounting adjustment for outstanding warrants, was $303 million, or $0.31 per diluted share, as compared to a Net loss attributable to GGP of $481 million, or $0.52 loss per diluted share, in the prior year period.
Operational Highlights for the Regional Mall Portfolio
- Tenant sales increased 3.6% to $564 per square foot on a trailing 12-month basis.
- Mall leased percentage was 97.1% at quarter end, an increase of 100 basis points from December 31, 2012.
- Initial rental rates for executed leases commencing in 2013 on a suite-to-suite basis increased 12.3%, or $7.05 per square foot, to $64.29 per square foot when compared to the rental rate for expiring leases.
Financing Activities
Property-Level Debt
During the three months ended December 31, 2013, the Company obtained $649 million ($592 million at share) of property-level debt with a weighted-average interest rate of 3.76% (3.79% at share) and weighted-average term-to-maturity of 7.5 years (7.7 years at share). The prior loans had a weighted-average interest rate of 5.00% (5.02% at share) and a remaining term-to-maturity of 2.3 years (2.1 years at share). The transactions generated approximately $167 million of net proceeds.
Investment Activities
Acquisitions
During the three months ended December 31, 2013, the Company acquired two properties for $315 million and land for development for $35 million.
Dispositions
During the three months ended December 31, 2013, the Company sold three malls for gross proceeds of $134 million.
Development
The Company has development and redevelopment activities totaling approximately $2.1 billion of which approximately $285 million has opened.
Guidance
Company FFO for the year ending December 31, 2014, is expected to be $1.27 to $1.31 per diluted share. Company FFO for the first quarter 2014 is expected to be $0.29 to $0.30 per diluted share.
The following table provides a reconciliation of the range of estimated diluted net income attributable to GGP per share to estimated FFO per diluted share and Company FFO per diluted share.
| For the year ending December 31, 2014 |
For the three months ending March 31, 2014 |
|||
| Low End |
High End |
Low End |
High End |
|
| Company FFO per diluted share |
$1.27 |
$1.31 |
$0.29 |
$0.30 |
| Adjustments (1) |
(0.04) |
(0.04) |
(0.01) |
(0.01) |
| FFO |
1.23 |
1.27 |
0.28 |
0.29 |
| Depreciation, including share of joint ventures |
(0.91) |
(0.91) |
(0.22) |
(0.22) |
| Net income attributable to common stockholders |
0.32 |
0.36 |
0.06 |
0.07 |
| Preferred stock dividends |
0.02 |
0.02 |
- |
- |
| Net income attributable to GGP |
$0.34 |
$0.38 |
$0.06 |
$0.07 |
| (1) Includes impact of straight-line rent, above/below market rent, ground rent amortization and debt market rate adjustments. |
||||
The guidance estimate reflects management's view of current and future market conditions, including assumptions with respect to 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 markets 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 4, 2014, the Company will host a conference call at 9:00 a.m. CST (10:00 a.m. EST). 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 for approximately two weeks after the conference call event. To access the replay, dial 855.859.2056 (international 404.537.3406) conference ID 27702464.
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, retail 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 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 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's portfolio is comprised of 120 retail properties in the United States comprising approximately 125 million square feet. GGP is headquartered in Chicago, Illinois, and publicly traded on the NYSE under the symbol GGP.
| Investor Relations Contact: |
Media Contact: |
| Kevin Berry |
David Keating |
| VP Investor Relations |
VP Corporate Communications |
| (312) 960-5529 |
(312) 960-6325 |
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 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 the Company's properties. Because NOI excludes general and administrative expenses, interest expense, retail investment property impairment or non-recoverable development costs, depreciation and amortization, gains and losses from property dispositions, allocations to noncontrolling interests, 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 the Company's 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. The Company presents Company NOI and Company FFO (as defined below), as management of the Company believes certain investors and other users of the Company's financial information use them as measures of the Company's historical operating 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 FFO from discontinued operations related to the spin-off of Rouse Properties, Inc, mark-to-market adjustments on debt and gains on the extinguishment of debt, warrant liability adjustment, 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 loss 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 |
GGP |
|||||||
| Consolidated Statements of Operations |
||||||||
| (In thousands, except per share) |
||||||||
| Three Months Ended |
Twelve Months Ended |
|||||||
| December 31, |
December 31, |
December 31, |
December 31, |
|||||
| Revenues: |
||||||||
| Minimum rents |
$ 414,870 |
$ 409,922 |
$ 1,588,883 |
$ 1,549,933 |
||||
| Tenant recoveries |
184,610 |
176,077 |
723,634 |
700,914 |
||||
| Overage rents |
28,659 |
35,413 |
56,212 |
69,756 |
||||
| Management fees and other corporate revenues |
18,218 |
16,303 |
68,792 |
71,949 |
||||
| Other |
35,006 |
26,045 |
89,866 |
74,286 |
||||
| Total revenues |
681,363 |
663,760 |
2,527,387 |
2,466,838 |
||||
| Expenses: |
||||||||
| Real estate taxes |
64,212 |
52,957 |
243,941 |
219,139 |
||||
| Property maintenance costs |
19,006 |
21,917 |
71,334 |
76,139 |
||||
| Marketing |
8,155 |
11,662 |
26,214 |
33,263 |
||||
| Other property operating costs |
84,952 |
88,506 |
352,466 |
361,345 |
||||
| Provision for doubtful accounts |
571 |
1,373 |
4,068 |
4,017 |
||||
| Property management and other costs |
41,432 |
40,641 |
164,777 |
159,600 |
||||
| General and administrative |
14,658 |
7,602 |
49,237 |
39,120 |
||||
| Provisions for impairment |
18,361 |
- |
18,361 |
32,100 |
||||
| Depreciation and amortization |
192,365 |
188,245 |
764,830 |
782,552 |
||||
| Total expenses |
443,712 |
412,903 |
1,695,228 |
1,707,275 |
||||
| Operating income |
237,651 |
250,857 |
832,159 |
759,563 |
||||
| Interest income |
6,423 |
470 |
7,699 |
2,374 |
||||
| Interest expense |
(176,351) |
(206,342) |
(736,560) |
(794,550) |
||||
| Loss on foreign currency |
(7,312) |
- |
(7,312) |
- |
||||
| Warrant liability adjustment |
- |
(89,153) |
(40,546) |
(502,234) |
||||
| Gains from changes in control of investment properties |
- |
- |
219,784 |
18,547 |
||||
| Loss on extinguishment of debt |
- |
(15,007) |
(36,479) |
(15,007) |
||||
| Income (loss) before income taxes, equity in income of Unconsolidated Real Estate Affiliates, discontinued operations, noncontrolling interests and preferred stock dividends |
60,411 |
(59,175) |
238,745 |
(531,307) |
||||
| Benefit from (provision for) income taxes |
891 |
(3,538) |
(345) |
(9,091) |
||||
| Equity in income of Unconsolidated Real Estate Affiliates |
17,754 |
15,135 |
58,919 |
54,984 |
||||
| Equity in income of Unconsolidated Real Estate Affiliates - gain on investment |
9,189 |
23,358 |
9,837 |
23,358 |
||||
| Income (loss) from continuing operations |
88,245 |
(24,220) |
307,156 |
(462,056) |
||||
| Discontinued operations: |
||||||||
| (Loss) gain from discontinued operations, including gains (losses) on dispositions |
(7,084) |
9,120 |
(15,851) |
(60,242) |
||||
| Gain on extinguishment of debt |
- |
50,765 |
25,894 |
50,765 |
||||
| Discontinued operations, net |
(7,084) |
59,885 |
10,043 |
(9,477) |
||||
| Net income (loss) |
81,161 |
35,665 |
317,199 |
(471,533) |
||||
| Allocation to noncontrolling interests |
(3,964) |
(3,464) |
(14,671) |
(9,700) |
||||
| Net income (loss) attributable to GGP |
77,197 |
32,201 |
302,528 |
(481,233) |
||||
| Preferred stock dividends |
(3,984) |
- |
(14,078) |
- |
||||
| Net income (loss) attributable to common stockholders |
$ 73,213 |
$ 32,201 |
$ 288,450 |
$ (481,233) |
||||
| Basic Income (Loss) Per Share: |
||||||||
| Continuing operations |
$ 0.09 |
$ (0.02) |
$ 0.30 |
$ (0.51) |
||||
| Discontinued operations |
(0.01) |
0.06 |
0.01 |
(0.01) |
||||
| Total basic income (loss) per share |
$ 0.08 |
$ 0.04 |
$ 0.31 |
$ (0.52) |
||||
| Diluted Income (Loss) Per Share: |
||||||||
| Continuing operations |
$ 0.08 |
$ (0.02) |
$ 0.30 |
$ (0.51) |
||||
| Discontinued operations |
(0.01) |
0.06 |
0.01 |
(0.01) |
||||
| Total diluted income (loss) per share |
$ 0.07 |
$ 0.04 |
$ 0.31 |
$ (0.52) |
||||
| FINANCIAL OVERVIEW |
GGP |
||||||
| Consolidated Balance Sheets |
|||||||
| (In thousands) |
|||||||
| December 31, |
December 31, |
||||||
| Assets: |
|||||||
| Investment in real estate: |
|||||||
| Land |
$ 4,320,597 |
$ 4,278,471 |
|||||
| Buildings and equipment |
18,270,748 |
18,806,858 |
|||||
| Less accumulated depreciation |
(1,884,861) |
(1,440,301) |
|||||
| Construction in progress |
406,930 |
376,529 |
|||||
| Net property and equipment |
21,113,414 |
22,021,557 |
|||||
| Investment in and loans to/from Unconsolidated Real Estate Affiliates |
2,407,698 |
2,865,871 |
|||||
| Net investment in real estate |
23,521,112 |
24,887,428 |
|||||
| Cash and cash equivalents |
577,271 |
624,815 |
|||||
| Accounts and notes receivable, net |
478,899 |
260,860 |
|||||
| Deferred expenses, net |
189,452 |
179,837 |
|||||
| Prepaid expenses and other assets |
995,569 |
1,329,465 |
|||||
| Total assets |
$ 25,762,303 |
$ 27,282,405 |
|||||
| Liabilities: |
|||||||
| Mortgages, notes and loans payable |
$ 15,672,437 |
$ 15,966,866 |
|||||
| Investment in Unconsolidated Real Estate Affiliates |
17,405 |
- |
|||||
| Accounts payable and accrued expenses |
989,367 |
1,212,231 |
|||||
| Dividend payable |
134,476 |
103,749 |
|||||
| Deferred tax liabilities |
24,667 |
28,174 |
|||||
| Tax indemnification liability |
303,586 |
303,750 |
|||||
| Junior Subordinated Notes |
206,200 |
206,200 |
|||||
| Warrant liability |
- |
1,488,196 |
|||||
| Total liabilities |
17,348,138 |
19,309,166 |
|||||
| Redeemable noncontrolling interests: |
|||||||
| Preferred |
131,881 |
136,008 |
|||||
| Common |
97,021 |
132,211 |
|||||
| Total redeemable noncontrolling interests |
228,902 |
268,219 |
|||||
| Equity: |
|||||||
| Preferred stock |
242,042 |
- |
|||||
| Stockholders' equity |
7,861,079 |
7,621,698 |
|||||
| Noncontrolling interests in consolidated real estate affiliates |
82,142 |
83,322 |
|||||
| Total equity |
8,185,263 |
7,705,020 |
|||||
| Total liabilities and equity |
$ 25,762,303 |
$ 27,282,405 |
|||||
| PROPORTIONATE FINANCIAL STATEMENTS |
GGP |
|||||||||||||
| Company NOI, EBITDA and FFO |
||||||||||||||
| For the Three Months Ended December 31, 2013 and 2012 |
||||||||||||||
| (In thousands) |
||||||||||||||
| Three Months Ended December 31, 2013 |
Three Months Ended December 31, 2012 |
|||||||||||||
| Consolidated Properties |
Noncontrolling Interests |
Unconsolidated Properties |
Proportionate |
Adjustments |
Company |
Consolidated Properties |
Noncontrolling Interests |
Unconsolidated Properties |
Proportionate |
Adjustments |
Company |
|||
| Property revenues: |
||||||||||||||
| Minimum rents |
$ 414,870 |
$ (3,463) |
$ 97,500 |
$ 508,907 |
$ 5,426 |
$ 514,333 |
$ 409,922 |
$ (3,468) |
$ 84,242 |
$ 490,696 |
$ 10,646 |
$ 501,342 |
||
| Tenant recoveries |
184,610 |
(1,254) |
40,709 |
224,065 |
- |
224,065 |
176,077 |
(1,178) |
35,118 |
210,017 |
- |
210,017 |
||
| Overage rents |
28,659 |
(241) |
8,369 |
36,787 |
- |
36,787 |
35,413 |
(181) |
6,596 |
41,828 |
- |
41,828 |
||
| Other revenue |
35,006 |
(147) |
5,122 |
39,981 |
- |
39,981 |
26,045 |
(126) |
5,563 |
31,482 |
- |
31,482 |
||
| Total property revenues |
663,145 |
(5,105) |
151,700 |
809,740 |
5,426 |
815,166 |
647,457 |
(4,953) |
131,519 |
774,023 |
10,646 |
784,669 |
||
| Property operating expenses: |
||||||||||||||
| Real estate taxes |
64,212 |
(531) |
12,792 |
76,473 |
(1,578) |
74,895 |
52,957 |
(523) |
11,683 |
64,117 |
(1,578) |
62,539 |
||
| Property maintenance costs |
19,006 |
(128) |
5,107 |
23,985 |
- |
23,985 |
21,917 |
(147) |
4,856 |
26,626 |
- |
26,626 |
||
| Marketing |
8,155 |
(91) |
2,782 |
10,846 |
- |
10,846 |
11,662 |
(106) |
2,755 |
14,311 |
- |
14,311 |
||
| Other property operating costs |
84,952 |
(424) |
20,129 |
104,657 |
(1,347) |
103,310 |
88,506 |
(582) |
18,064 |
105,988 |
(1,384) |
104,604 |
||
| Provision for doubtful accounts |
571 |
7 |
(196) |
382 |
- |
382 |
1,373 |
48 |
508 |
1,929 |
- |
1,929 |
||
| Total property operating expenses |
176,896 |
(1,167) |
40,614 |
216,343 |
(2,925) |
213,418 |
176,415 |
(1,310) |
37,866 |
212,971 |
(2,962) |
210,009 |
||
| NOI |
$ 486,249 |
$ (3,938) |
$ 111,086 |
$ 593,397 |
$ 8,351 |
$ 601,748 |
$ 471,042 |
$ (3,643) |
$ 93,653 |
$ 561,052 |
$ 13,608 |
$ 574,660 |
||
| Management fees and other corporate revenues |
18,218 |
- |
- |
18,218 |
- |
18,218 |
16,303 |
- |
- |
16,303 |
- |
16,303 |
||
| Property management and other costs |
(41,432) |
172 |
(7,037) |
(48,297) |
(395) |
(48,692) |
(40,641) |
156 |
(6,127) |
(46,612) |
(424) |
(47,036) |
||
| General and administrative |
(14,658) |
- |
(242) |
(14,900) |
- |
(14,900) |
(7,602) |
- |
20 |
(7,582) |
- |
(7,582) |
||
| EBITDA |
$ 448,377 |
$ (3,766) |
$ 103,807 |
$ 548,418 |
$ 7,956 |
$ 556,374 |
$ 439,102 |
$ (3,487) |
$ 87,546 |
$ 523,161 |
$ 13,184 |
$ 536,345 |
||
| Depreciation on non-income producing assets |
(3,192) |
- |
- |
(3,192) |
- |
(3,192) |
(1,630) |
- |
- |
(1,630) |
- |
(1,630) |
||
| Interest income |
6,423 |
- |
184 |
6,607 |
- |
6,607 |
470 |
(1) |
84 |
553 |
- |
553 |
||
| Preferred unit distributions |
(2,280) |
- |
- |
(2,280) |
- |
(2,280) |
(2,310) |
- |
- |
(2,310) |
- |
(2,310) |
||
| Preferred stock dividends |
(3,984) |
- |
- |
(3,984) |
- |
(3,984) |
- |
- |
- |
- |
- |
- |
||
| Interest expense: |
||||||||||||||
| Default interest |
(680) |
- |
- |
(680) |
680 |
- |
(1,157) |
- |
- |
(1,157) |
1,157 |
- |
||
| Mark-to-market adjustments on debt |
(1,912) |
(95) |
363 |
(1,644) |
1,644 |
- |
(2,326) |
(90) |
218 |
(2,198) |
2,198 |
- |
||
| Write-off of mark-to-market adjustments on extinguished debt |
(275) |
- |
(3,924) |
(4,199) |
4,199 |
- |
(287) |
- |
- |
(287) |
287 |
- |
||
| Interest on existing debt |
(173,484) |
1,111 |
(35,883) |
(208,256) |
- |
(208,256) |
(202,572) |
1,137 |
(32,996) |
(234,431) |
- |
(234,431) |
||
| Loss on foreign currency |
(7,312) |
- |
- |
(7,312) |
7,312 |
- |
- |
- |
- |
- |
- |
- |
||
| Warrant liability adjustment |
- |
- |
- |
- |
- |
- |
(89,153) |
- |
- |
(89,153) |
89,153 |
- |
||
| Loss on extinguishment of debt |
- |
- |
- |
- |
- |
- |
(15,007) |
- |
- |
(15,007) |
15,007 |
- |
||
| Provision for income taxes |
891 |
19 |
8 |
918 |
(1,499) |
(581) |
(3,538) |
10 |
(122) |
(3,650) |
3,171 |
(479) |
||
| FFO from discontinued operations |
1,544 |
- |
1 |
1,545 |
430 |
1,975 |
52,838 |
- |
7,461 |
60,299 |
(46,974) |
13,325 |
||
| 264,116 |
(2,731) |
64,556 |
325,941 |
20,722 |
346,663 |
174,430 |
(2,431) |
62,191 |
234,190 |
77,183 |
311,373 |
|||
| Equity in FFO of Unconsolidated Properties and Noncontrolling Interests |
61,825 |
2,731 |
(64,556) |
- |
- |
- |
59,760 |
2,431 |
(62,191) |
- |
- |
- |
||
| FFO |
$ 325,941 |
$ - |
$ - |
$ 325,941 |
$ 20,722 |
$ 346,663 |
$ 234,190 |
$ - |
$ - |
$ 234,190 |
$ 77,183 |
$ 311,373 |
||
| Company FFO per diluted share |
$ 0.36 |
$ 0.31 |
||||||||||||
| PROPORTIONATE FINANCIAL STATEMENTS |
GGP |
|||||||||||||
| Company NOI, EBITDA and FFO |
||||||||||||||
| For the Twelve Months Ended December 31, 2013 and 2012 |
||||||||||||||
| (In thousands) |
||||||||||||||
| Twelve Months Ended December 31, 2013 |
Twelve Months Ended December 31, 2012 |
|||||||||||||
| Consolidated Properties |
Noncontrolling Interests |
Unconsolidated Properties |
Proportionate |
Adjustments |
Company |
Consolidated Properties |
Noncontrolling Interests |
Unconsolidated Properties |
Proportionate |
Adjustments |
Company |
|||
| Property revenues: |
||||||||||||||
| Minimum rents |
$ 1,588,883 |
$ (14,143) |
$ 363,346 |
$ 1,938,086 |
$ 27,918 |
$ 1,966,004 |
$ 1,549,933 |
$ (12,152) |
$ 335,494 |
$ 1,873,275 |
$ 24,555 |
$ 1,897,830 |
||
| Tenant recoveries |
723,634 |
(4,841) |
159,579 |
878,372 |
- |
878,372 |
700,914 |
(4,505) |
143,940 |
840,349 |
- |
840,349 |
||
| Overage rents |
56,212 |
(486) |
15,829 |
71,555 |
- |
71,555 |
69,756 |
(392) |
12,196 |
81,560 |
- |
81,560 |
||
| Other revenue |
89,866 |
(440) |
15,677 |
105,103 |
- |
105,103 |
74,286 |
(372) |
14,903 |
88,817 |
- |
88,817 |
||
| Total property revenues |
2,458,595 |
(19,910) |
554,431 |
2,993,116 |
27,918 |
3,021,034 |
2,394,889 |
(17,421) |
506,533 |
2,884,001 |
24,555 |
2,908,556 |
||
| Property operating expenses: |
||||||||||||||
| Real estate taxes |
243,941 |
(2,126) |
51,542 |
293,357 |
(6,312) |
287,045 |
219,139 |
(2,063) |
46,917 |
263,993 |
(6,312) |
257,681 |
||
| Property maintenance costs |
71,334 |
(406) |
17,107 |
88,035 |
- |
88,035 |
76,139 |
(425) |
17,084 |
92,798 |
- |
92,798 |
||
| Marketing |
26,214 |
(263) |
7,840 |
33,791 |
- |
33,791 |
33,263 |
(318) |
7,994 |
40,939 |
- |
40,939 |
||
| Other property operating costs |
352,466 |
(2,066) |
78,491 |
428,891 |
(10,121) |
418,770 |
361,345 |
(2,218) |
74,366 |
433,493 |
(5,668) |
427,825 |
||
| Provision for doubtful accounts |
4,068 |
(29) |
743 |
4,782 |
- |
4,782 |
4,017 |
15 |
982 |
5,014 |
- |
5,014 |
||
| Total property operating expenses |
698,023 |
(4,890) |
155,723 |
848,856 |
(16,433) |
832,423 |
693,903 |
(5,009) |
147,343 |
836,237 |
(11,980) |
824,257 |
||
| NOI |
$ 1,760,572 |
$ (15,020) |
$ 398,708 |
$ 2,144,260 |
$ 44,351 |
$ 2,188,611 |
$ 1,700,986 |
$ (12,412) |
$ 359,190 |
$ 2,047,764 |
$ 36,535 |
$ 2,084,299 |
||
| Management fees and other corporate revenues |
68,792 |
- |
- |
68,792 |
- |
68,792 |
71,949 |
- |
- |
71,949 |
- |
71,949 |
||
| Property management and other costs |
(164,777) |
638 |
(25,959) |
(190,098) |
(1,698) |
(191,796) |
(159,600) |
575 |
(23,660) |
(182,685) |
(1,696) |
(184,381) |
||
| General and administrative |
(49,237) |
- |
(991) |
(50,228) |
- |
(50,228) |
(39,120) |
15 |
(754) |
(39,859) |
- |
(39,859) |
||
| EBITDA |
$ 1,615,350 |
$ (14,382) |
$ 371,758 |
$ 1,972,726 |
$ 42,653 |
$ 2,015,379 |
$ 1,574,215 |
$ (11,822) |
$ 334,776 |
$ 1,897,169 |
$ 34,839 |
$ 1,932,008 |
||
| Depreciation on non-income producing assets |
(12,232) |
- |
- |
(12,232) |
- |
(12,232) |
(8,240) |
- |
- |
(8,240) |
- |
(8,240) |
||
| Interest income |
7,699 |
(1) |
533 |
8,231 |
- |
8,231 |
2,374 |
(3) |
285 |
2,656 |
- |
2,656 |
||
| Preferred unit distributions |
(9,287) |
- |
- |
(9,287) |
- |
(9,287) |
(12,414) |
- |
- |
(12,414) |
3,098 |
(9,316) |
||
| Preferred stock dividends |
(14,078) |
- |
- |
(14,078) |
- |
(14,078) |
- |
- |
- |
- |
- |
- |
||
| Interest expense: |
||||||||||||||
| Default interest |
(3,735) |
- |
- |
(3,735) |
3,735 |
- |
(4,602) |
- |
(309) |
(4,911) |
4,911 |
- |
||
| Mark-to-market adjustments on debt |
(12,834) |
(373) |
(590) |
(13,797) |
13,797 |
- |
11,204 |
(365) |
2,035 |
12,874 |
(12,874) |
- |
||
| Write-off of mark-to-market adjustments on extinguished debt |
5,696 |
- |
(3,513) |
2,183 |
(2,183) |
- |
33,069 |
1 |
- |
33,070 |
(33,070) |
- |
||
| Debt extinguishment expenses |
- |
- |
- |
- |
- |
- |
(186) |
- |
(4) |
(190) |
190 |
- |
||
| Interest on existing debt |
(725,687) |
4,478 |
(138,944) |
(860,153) |
- |
(860,153) |
(834,035) |
4,662 |
(137,819) |
(967,192) |
- |
(967,192) |
||
| Loss on foreign currency |
(7,312) |
- |
- |
(7,312) |
7,312 |
- |
- |
- |
- |
- |
- |
- |
||
| Warrant liability adjustment |
(40,546) |
- |
- |
(40,546) |
40,546 |
- |
(502,234) |
- |
- |
(502,234) |
502,234 |
- |
||
| Loss on extinguishment of debt |
(36,479) |
- |
- |
(36,479) |
36,479 |
- |
(15,007) |
- |
- |
(15,007) |
15,007 |
- |
||
| Provision for income taxes |
(345) |
72 |
(202) |
(475) |
(1,756) |
(2,231) |
(9,091) |
58 |
(441) |
(9,474) |
7,372 |
(2,102) |
||
| FFO from discontinued operations |
31,853 |
- |
13,953 |
45,806 |
(23,764) |
22,042 |
73,953 |
- |
21,020 |
94,973 |
(51,071) |
43,902 |
||
| 798,063 |
(10,206) |
242,995 |
1,030,852 |
116,819 |
1,147,671 |
309,006 |
(7,469) |
219,543 |
521,080 |
470,636 |
991,716 |
|||
| Equity in FFO of Unconsolidated Properties and Noncontrolling Interests |
232,789 |
10,206 |
(242,995) |
- |
- |
- |
212,074 |
7,469 |
(219,543) |
- |
- |
- |
||
| FFO |
$ 1,030,852 |
$ - |
$ - |
$ 1,030,852 |
$ 116,819 |
$ 1,147,671 |
$ 521,080 |
$ - |
$ - |
$ 521,080 |
$ 470,636 |
$ 991,716 |
||
| Company FFO per diluted share |
$ 1.16 |
$ 0.98 |
||||||||||||
| PROPORTIONATE FINANCIAL STATEMENTS |
GGP |
|||||||
| Reconciliation of Non-GAAP to GAAP Financial Measures |
||||||||
| (In thousands) |
||||||||
| Three Months Ended |
Twelve Months Ended |
|||||||
| December 31, |
December 31, |
December 31, |
December 31, |
|||||
| Reconciliation of Company NOI to GAAP Operating Income |
||||||||
| Company NOI: |
$ 601,748 |
$ 574,660 |
$ 2,188,611 |
$ 2,084,299 |
||||
| Adjustments for minimum rents, real estate taxes and other property operating costs |
(8,351) |
(13,608) |
(44,351) |
(36,535) |
||||
| Proportionate NOI |
593,397 |
561,052 |
2,144,260 |
2,047,764 |
||||
| Unconsolidated Properties |
(111,086) |
(93,653) |
(398,708) |
(359,190) |
||||
| Consolidated Properties |
482,311 |
467,399 |
1,745,552 |
1,688,574 |
||||
| Management fees and other corporate revenues |
18,218 |
16,303 |
68,792 |
71,949 |
||||
| Property management and other costs |
(41,432) |
(40,641) |
(164,777) |
(159,600) |
||||
| General and administrative |
(14,658) |
(7,602) |
(49,237) |
(39,120) |
||||
| Provisions for impairment |
(18,361) |
- |
(18,361) |
(32,100) |
||||
| Depreciation and amortization |
(192,365) |
(188,245) |
(764,830) |
(782,552) |
||||
| Noncontrolling interest in operating income of Consolidated Properties and other |
3,938 |
3,643 |
15,020 |
12,412 |
||||
| Operating income |
$ 237,651 |
$ 250,857 |
$ 832,159 |
$ 759,563 |
||||
| Reconciliation of Company EBITDA to GAAP Net Income (Loss) Attributable to GGP |
||||||||
| Company EBITDA |
$ 556,374 |
$ 536,345 |
$ 2,015,379 |
$ 1,932,008 |
||||
| Adjustments for minimum rents, property operating expenses and property management and other costs |
(7,956) |
(13,184) |
(42,653) |
(34,839) |
||||
| Proportionate EBITDA |
548,418 |
523,161 |
1,972,726 |
1,897,169 |
||||
| Unconsolidated Properties |
(103,807) |
(87,546) |
(371,758) |
(334,776) |
||||
| Consolidated Properties |
444,611 |
435,615 |
1,600,968 |
1,562,393 |
||||
| Depreciation and amortization |
(192,365) |
(188,245) |
(764,830) |
(782,552) |
||||
| Noncontrolling interest in NOI of Consolidated Properties |
3,938 |
3,643 |
15,020 |
12,412 |
||||
| Interest income |
6,423 |
470 |
7,699 |
2,374 |
||||
| Interest expense |
(176,351) |
(206,342) |
(736,560) |
(794,550) |
||||
| Loss on foreign currency |
(7,312) |
- |
(7,312) |
- |
||||
| Warrant liability adjustment |
- |
(89,153) |
(40,546) |
(502,234) |
||||
| (Provision for) benefit from income taxes |
891 |
(3,538) |
(345) |
(9,091) |
||||
| Provision for impairment excluded from FFO |
(18,361) |
- |
(18,361) |
(32,100) |
||||
| Equity in income of Unconsolidated Real Estate Affiliates |
17,754 |
15,135 |
58,919 |
54,984 |
||||
| Equity in income of Unconsolidated Real Estate Affiliates - gain on investment |
9,189 |
23,358 |
9,837 |
23,358 |
||||
| Discontinued operations |
(7,084) |
59,885 |
10,043 |
(9,477) |
||||
| Gains from changes in control of investment properties |
- |
- |
219,784 |
18,547 |
||||
| Loss on extinguishment of debt |
- |
(15,007) |
(36,479) |
(15,007) |
||||
| Allocation to noncontrolling interests |
(4,136) |
(3,620) |
(15,309) |
(10,290) |
||||
| Net income (loss) attributable to GGP |
$ 77,197 |
$ 32,201 |
$ 302,528 |
$ (481,233) |
||||
| Reconciliation of Company FFO to GAAP Net Income (Loss) Attributable to GGP |
||||||||
| Company FFO |
$ 346,663 |
$ 311,373 |
$ 1,147,671 |
$ 991,716 |
||||
| Adjustments for minimum rents, property operating expenses and property management and other costs, market rate adjustments, debt extinguishment, income taxes and FFO from discontinued operations |
(20,722) |
(77,183) |
(116,819) |
(470,636) |
||||
| Proportionate FFO |
325,941 |
234,190 |
1,030,852 |
521,080 |
||||
| Depreciation and amortization of capitalized real estate costs |
(235,990) |
(230,116) |
(930,704) |
(932,704) |
||||
| Gains from changes in control of investment properties |
- |
- |
219,784 |
18,547 |
||||
| Preferred stock dividends |
3,984 |
- |
14,078 |
- |
||||
| Gains on sales of investment properties |
9,216 |
34,747 |
9,026 |
47,884 |
||||
| Noncontrolling interests in depreciation of Consolidated Properties |
1,788 |
1,520 |
7,151 |
6,870 |
||||
| Provision for impairment excluded from FFO |
(18,361) |
- |
(18,361) |
(32,100) |
||||
| Provision for impairment excluded from FFO of discontinued operations |
(7,599) |
- |
(12,574) |
(76,581) |
||||
| Redeemable noncontrolling interests |
(726) |
(261) |
(2,289) |
3,492 |
||||
| Depreciation and amortization of discontinued operations |
(1,056) |
(7,879) |
(14,435) |
(37,721) |
||||
| Net income (loss) attributable to GGP |
$ 77,197 |
$ 32,201 |
$ 302,528 |
$(481,233) |
||||
| Reconciliation of Equity in NOI of Unconsolidated Properties to GAAP Equity in Income of Unconsolidated Real Estate Affiliates |
||||||||
| Equity in Unconsolidated Properties: |
||||||||
| NOI |
$ 111,086 |
$ 93,653 |
$ 398,708 |
$ 359,190 |
||||
| Net property management fees and costs |
(7,037) |
(6,127) |
(25,959) |
$ (23,660) |
||||
| General and administrative and provisions for impairment |
(242) |
20 |
(991) |
(754) |
||||
| EBITDA |
103,807 |
87,546 |
371,758 |
334,776 |
||||
| Net interest expense |
(39,260) |
(32,694) |
(142,514) |
(135,812) |
||||
| Provision for income taxes |
8 |
(122) |
(202) |
(441) |
||||
| FFO of discontinued Unconsolidated Properties |
1 |
7,461 |
13,953 |
21,020 |
||||
| FFO of Unconsolidated Properties |
64,556 |
62,191 |
242,995 |
219,543 |
||||
| Depreciation and amortization of capitalized real estate costs |
(46,817) |
(47,058) |
(184,115) |
(164,711) |
||||
| Other, including gain on sales of investment properties |
15 |
2 |
39 |
152 |
||||
| Equity in income of Unconsolidated Real Estate Affiliates |
$ 17,754 |
$ 15,135 |
$ 58,919 |
$ 54,984 |
||||
SOURCE General Growth Properties, Inc.
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