EXHIBIT -99.1
General Growth Properties, Inc.
Supplemental Financial Information
For the Three and Twelve Months Ended December 31, 2007
This presentation contains forward-looking statements. Actual results may differ materially from the results suggested by these forward-looking statements for a number of reasons, including, but not limited to, the retail market, tenant occupancy and tenant bankruptcies, the level of our indebtedness and interest rates, market conditions and land sales in our Master Planned Communities segment and our ability to manage our growth. Readers are referred to the documents filed by General Growth Properties, Inc. with the SEC, specifically the most recent report on Form 10-K, which further identifies the important risk factors which could cause actual results to differ materially from the forward-looking statements in supplemental financial information. The Company disclaims any obligation to update any forward-looking statements.
Corporate Overview
Supplemental Financial/Operational Data
December 31, 2007
Table of Contents
December 31, 2007
Table of Contents
All information included in this supplemental package is unaudited and is as of December 31, 2007, unless otherwise indicated.
Corporate Overview | 1 - 3 | |
Corporate Profile | 1 | |
Corporate Overview | 1 | |
Stock Listing | 1 | |
Calendar of Events | 1 | |
Current Dividend | 1 | |
Investor Relations | 1 | |
Transfer Agent | 1 | |
Debt Ratings | 1 | |
Ownership Structure | 2 | |
Total Market Capitalization | 2 | |
Research Coverage | 3 | |
Annual 2007 and Fourth Quarter Earnings Announcement | 4-16 | |
Supplemental Financial Data* | 17-36 | |
Summary Retained FFO & Core FFO | 17 | |
Straight Line Rent, SFAS #141 & #142 & Tenant Allowances | 18 | |
Trailing Twelve Month EBITDA and Coverage Ratios | 19 | |
Comparable NOI Growth | 20 | |
Retail Recovery Summary | 21 | |
Master Planned Communities | 22-24 | |
Capital Information | 25 | |
Changes in Total Common & Equivalent Shares | 26 | |
Common Dividend History | 27 | |
Debt Maturity and Current Average Interest Rate Summary | 28 | |
Summary of Outstanding Debt | 29-36 | |
Supplemental Operational Data | 37-40 | |
Operating Statistics, Certain Financial Information & Top Tenants | 37 | |
Retail Portfolio GLA, Occupancy, Sales & Rent Data | 38 | |
Real Estate Net Operating Income by Geographic Area at Share | 39 | |
Lease Expiration Schedule and Lease Termination Income at Share | 40 | |
Expansions, Re-developments & New Developments | 41-43 |
* | The supplemental financial data should be read in conjunction with the company’s annual 2007 and fourth quarter earnings information, as updated, (included as pages 4-16 of this supplemental report) as certain disclosures and reconciliations in such announcement have not been included in the supplemental financial data. |
Corporate Profile
General Growth Properties, Inc. (GGP) and its predecessor companies have been in the shopping center business for over fifty years. GGP is one of the largest U.S.-based publicly traded real estate investment trusts (REIT) at approximately $39.4 billion in total market capitalization. General Growth has ownership interests in or management responsibility for a portfolio of approximately 200 regional shopping malls in 45 states, as well as ownership and management interests in shopping centers in Brazil and Turkey and ownership interests in master-planned community developments and commercial office centers in the U.S. The Company’s portfolio totals approximately 200 million square feet and includes more than 24,000 retail stores.
Since going public in 1993, GGP has acheived the highest per share Funds From Operations (FFO) growth in the regional mall sector, 15% on a compounded annualized basis through 2007. Average occupancy at December 31, 2007 was 93.8% and sales per square foot were $462. The Bucksbaum family, which founded GGP, is still engaged in the operation of the company’s day-to-day business activities. Assuming conversion of the Operating Partnership units, the Bucksbaum family and senior management own approximately 25% of the Company.
Corporate Overview
The corporate mission of GGP is to create value and profit by acquiring, developing, renovating, and managing regional malls in major and middle markets throughout the United States. The Company provides investors an opportunity to participate in the ownership of high quality income producing real estate while maintaining liquidity. The Company’s primary objective is to provide increasing dividends and capital appreciation for its shareholders.
Stock Listing Common Stock
NYSE: GGP
NYSE: GGP
Calendar of Events
Quarter End — First Quarter 2008 Earnings Release — After the Market Close Quarterly Conference Call — 8:00 am CST | March 31, 2008 April 29, 2008 April 30, 2008 |
Current Dividend
GGP declared its first dividend for 2008 in the amount of $0.50 per share, payable to common stockholders of record on January 17, 2007, with payment on January 31, 2007. The current dividend represents an increase of 11% over the dividend of $0.45 per share paid for the same period last year. The Company reviews its dividend policy annually, usually prior to the fourth quarter dividend announcement, which is typically made in early October. The Company has, as a result of this review, raised its dividend every year since going public in April of 1993 when the (split-adjusted) initial quarterly dividend was approximately $0.12 per share. These annual increases have allowed GGP to increase its dividend at a compound annual growth rate of 10% since going public.
Investor Relations | Transfer Agent | |
Tim Goebel Director, Investor Relations General Growth Properties 110 North Wacker Drive Chicago, IL 60606 Phone (312) 960-5199 Fax (312) 960-5475 tgoebel@ggp.com | Mellon Investor Services, LLC Shareholder Relations P.O. Box 3315 South Hackensack, NJ 07606 (888) 395-8037 (201) 329-8660 |
Debt Ratings
Standard & Poors — Corporate Rating Standard & Poors — Senior Debt Rating Standard & Poors — TRCLP Bonds Rating Moody’s — Senior Debt Rating Moody’s — TRCLP Bonds Rating | BBB - BB + BB + Ba2 Ba1 | |
Please visit the GGP web site for additional information: | www.ggp.com |
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Ownership Structure as of December 31, 2007
Total Market Capitalization — As Measured by Stock Price (dollars in thousands) | December 31, 2007 | |||||||
Total Portfolio Debt (Company consolidated debt plus applicable share from unconsolidated affiliates) (a) | $ | 27,126,512 | ||||||
Perpetual Preferred Units | ||||||||
Perpetual Preferred Units at 8.25% | $ | 5,000 | ||||||
Convertible Preferred Units | ||||||||
Convertible Preferred Units at 6.50% | 26,637 | |||||||
Convertible Preferred Units at 7.00% | 25,133 | |||||||
Convertible Preferred Units at 8.50% | 64,236 | |||||||
116,006 | ||||||||
Other Preferred Stock | 476 | |||||||
Total Preferred Securities | $ | 121,482 | ||||||
Common Stock and Common Operating Partnership Units | ||||||||
Stock market value of 243.9 million shares of common stock and 51.8 million shares of operating partnership units (which are redeemable for an equal number of shares of common stock) — outstanding at end of period (b) | $ | 12,178,947 | ||||||
Total Market Capitalization at end of period | $ | 39,426,941 | ||||||
(a) | Excludes special improvement districts liability of $71.8 million, minority interest adjustment of $65.4 million and purchase accounting mark-to-market adjustments of $67.4 million. | |
(b) | Net of 1.8 million treasury shares. |
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Research Coverage
The following alphabetical list of research coverage by company and related contact information is included for informational purposes only. GGP does not review any third party advice or investment or research report and therefore expressly does not adopt or endorse any such advice or report.
A.G. Edwards & Sons, Inc. | Mark Hoffmeister | (314) 955-5784 | ||
David L. AuBuchon | (314) 955-5452 | |||
Banc of America Securities | Christy McElroy | (212) 847-5658 | ||
Bear, Stearns & Co., Inc. | Amy Young | (212) 272-3523 | ||
Ross Smotrich | (212) 272-8046 | |||
Citigroup | Jonathan Litt | (212) 816-0231 | ||
Ambika Goel | (212) 816-6981 | |||
Credit Suisse First Boston | John Stewart | (212) 538-3183 | ||
Michael Gorman | (212) 538-4357 | |||
Deutsche Bank | Louis Taylor | (212) 250-4912 | ||
Christeen Kim | (212) 250-6771 | |||
Friedman Billings Ramsey | Paul Morgan | (703) 469-1255 | ||
Tom Barry | (703) 875-1401 | |||
Goldman, Sachs & Co. | Jay Habermann | (917) 343-4260 | ||
Thomas Baldwin | (212) 902-4736 | |||
Green Street Advisors | Jim Sullivan | (949) 640-8780 | ||
Ben Yang | (949) 640-8780 | |||
J.P. Morgan Securities Inc. | Michael Mueller | (212) 622-6689 | ||
Joseph Dazio | (212) 622-6416 | |||
Lehman Brothers | David B. Harris | (212) 526-1790 | ||
David Toti | (212) 526-2002 | |||
Merrill Lynch | Steve Sakwa | (212) 449-0335 | ||
Craig Schmidt | (212) 449-1944 | |||
Morgan Stanley Dean Witter | Matt Ostrower | (212) 761-6284 | ||
RBC Capital Markets | Richard C. Moore | (216) 378-7625 | ||
UBS | Jeff Spector | (212) 713-6144 | ||
Wachovia Capital Markets, LLC | Jeff Donnelly | (617) 603-4262 | ||
Rob Laquaglia | (617) 603-4263 |
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Annual and Fourth Quarter Earnings
Announcement
Announcement
February 11, 2008
News Release | General Growth Properties, Inc. 110 North Wacker Drive Chicago, IL 60606 (312) 960-5000 FAX (312) 960-5475 |
FOR IMMEDIATE RELEASE | CONTACT: | John Bucksbaum 312/960-5005 | ||
Bernie Freibaum 312/960-5252 |
General Growth Properties, Inc. Releases
2007 Results of Operations
2007 Results of Operations
Chicago, Illinois, February 11, 2007— General Growth Properties, Inc. (NYSE: GGP) reported today its annual and fourth quarter 2007 operating results. For the full year 2007, Core Funds From Operations (Core FFO) per fully diluted share were $2.97 as compared to $2.96 for the full year 2006. For the fourth quarter 2007, Core FFO per fully diluted share were $0.92 versus $0.99 of Core FFO per fully diluted share in the comparable 2006 quarter. For the full year, Earnings per share — diluted (EPS) were $1.18 in 2007 as compared to $0.24 in 2006. EPS were $0.24 for the fourth quarter of 2007 versus EPS of $0.29 in the fourth quarter of 2006. Funds From Operations (FFO) per fully diluted share for the full year 2007 were $3.71 in 2007 as compared to $3.06 of FFO per fully diluted share for the full year 2006. FFO per fully diluted share were $0.64 in the fourth quarter of 2007 and were $1.02 in the fourth quarter of 2006.
“Our core retail real estate business continues to deliver solid operating results,” said John Bucksbaum, the Chief Executive Officer of General Growth. “We are prepared to handle the expected weaker economic environment and will be well positioned to benefit when the economy begins to show improvement.”
FINANCIAL AND OPERATIONAL HIGHLIGHTS
• | Core FFOis defined as Funds From Operations excluding the Real Estate Property Net Operating Income (NOI) from the Master Planned Communities segment and the benefit from (provision for) income taxes. Core FFO for the fourth quarter of 2007 was $271.2 million or $0.92 per fully diluted share as compared to $292.0 million or $0.99 per fully diluted share in the fourth quarter of 2006. As previously reported, in the fourth quarter of 2007 the Company recognized approximately $52 million, or approximately $0.18 per fully diluted share, in litigation costs related to the judgment in the Caruso Affiliated Holdings and Glendale Galleria matter. This cost, as well as the reclassification of our 50% share of such costs recognized as litigation costs from Unconsolidated Properties in the third quarter 2007, are a result of our potential |
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responsibility as managing agent of the property, and such amounts have been reported as litigation provision in the fourth quarter of 2007. Excluding such litigation provisions, Core FFO per fully diluted share for the fourth quarter 2007 and the full year 2007 increased approximately 10.7% and 11.3%, respectively, over the prior year periods. |
• | EPSin the fourth quarter of 2007 were $0.24, a $.05 decline from the comparable period of 2006, primarily as a result of our previously-announced $77 million, net of related income tax benefit, non-cash impairment charge recorded in the fourth quarter of 2007 relating to our two Maryland Master Planned Communities. For the full year 2007, EPS were $1.18, as compared to $0.24 of EPS in 2006. Full year EPS in 2007 as compared to 2006 increased approximately $1.32 as a result of the approximate $324 million income tax benefit recognized in 2007 related to the ownership restructuring of certain of our operating properties. |
• | FFOper share declined to $0.64 in the fourth quarter of 2007 from $1.02 in the fourth quarter of 2006. In addition to the impact of the impairment charge and litigation costs discussed above, recurring Master Planned Community NOI was significantly lower in 2007 due to the sales volume declines discussed below. |
• | Core FFO per share guidanceOur guidance for future operating performance is given only for Core FFO per share as operating results for our Master Planned Communities segment, and our income tax expense that is largely a function of such operations, are very difficult to estimate in advance. In addition, we believe that FFO is a less meaningful supplemental measure for the Master Planned Communities segment of our business because it does not facilitate an understanding of the operating performance of this business as our primary strategy in this segment is to develop and sell land in a manner that increases the value of the remaining land. Actual EPS, FFO (including these excluded items), NOI and Core FFO will be provided each quarter. Full year per share guidance will also be updated on a quarterly basis; however, such guidance will only be given for Core FFO per share. |
Actual Core FFO per share in 2007 was approximately $2.97 per share. We currently expect 2008 Core FFO per share to be in the range of $3.58 to $3.61 per share, 20.5% to 21.5% above the calculated Core FFO per share amount described above for 2007. Such significant increases in Core FFO per share for 2008 reflect the elimination of certain 2007 items described above. |
SEGMENT RESULTS
Retail and Other Segment
• | NOIfor the fourth quarter of 2007 was $719.0 million, a 12.2% increase over the $641.1 million reported for the fourth quarter of |
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2006. The majority of such increase in NOI is attributable primarily to increased minimum rents and tenant recovery revenues due to expansions and new property openings since the fourth quarter of 2006 as well as, with respect to renewal tenants, increased aggregate tenant charges. |
• | Revenues from consolidated propertieswere $868.0 million for the fourth quarter of 2007, an increase of 19.2% compared to $728.0 million for the same period in 2006. The majority of such increase is due to the acquisition of our venture partner’s interest in the Homart I properties in July of 2007. |
• | Revenues from unconsolidated properties,at the Company’s ownership share, for the quarter declined 19.6% to $163.2 million, compared to $203.0 million in the fourth quarter of 2006. The decline in revenues for the fourth quarter of 2007 as compared to 2006 is due to the acquisition of our venture partner’s interest in the Homart I properties in July of 2007. |
• | Comparable NOI from consolidated propertiesin the fourth quarter of 2007 increased by 5.9% compared to the same period last year. |
Comparable NOI from unconsolidated propertiesat the Company’s ownership share for the quarter increased by approximately 5.3% compared to the fourth quarter of 2006. |
• | Total tenant sales and comparable tenant sales, both on a trailing 12 month basis at December 2007, increased 4.3% and 1.4%, respectively, compared to the same periods last year. |
• | Retail Center occupancywas 93.8% at December 31, 2007 as compared to 93.6% at December 31, 2006. |
• | Sales per square footfor fourth quarter 2007 (on a trailing 12 month basis) were $462 versus $453 in the fourth quarter of 2006. |
Master Planned Communities Segment
• | NOIfor the fourth quarter of 2007 for the properties in the Master Planned Communities segment was a loss of $119.9 million for consolidated properties and income of $2.2 million for unconsolidated properties as compared to income of $48.8 million and $7.3 million, respectively, in the fourth quarter of 2006. For the full year 2007, NOI from consolidated properties was a loss of $98.7 million and NOI from unconsolidated properties was income of $27.2 million, as compared to income of $106.7 million and $23.3 million, respectively, for the full year 2006. NOI declines in 2007 are due to the recognition of the aggregate $127.6 million of Maryland property impairment charges described above which are not offset by the related income tax benefits of such impairment charges. |
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• | Land sale revenuesfor the fourth quarter of 2007 were $31.5 million for consolidated properties and $15.5 million for unconsolidated properties, compared to $205.2 million and $25.2 million, respectively, for the fourth quarter of 2006. Consolidated land sale revenues in the fourth quarter of 2006 were impacted significantly as a result of the inclusion of a single $123 million sale, a sales pattern which did not recur in the fourth quarter of 2007. Land sale revenues for the full year 2007 were below 2006 amounts as the current sales pace has significantly diminished in recent months, a trend expected to continue well into 2008. This sales pace is consistent with our strategy in this segment of our business to manage our sales volume to maximize overall value for all remaining land within the community rather than focus on individual sales objectives in any particular year or quarter. |
CONFERENCE CALL/WEBCAST
General Growth Properties, Inc. will host a live Webcast of its conference call regarding this announcement on our website,www.ggp.com. This Webcast will take place on Tuesday, February 12, 2008, at 9:00 a.m. Eastern Time (8:00 a.m. CT, 6:00 a.m. PT). The Webcast can be accessed by selecting the conference call icon on the GGP home page.
The Company is one of the largest U.S.-based publicly traded Real Estate Investment Trusts (REIT) based upon market capitalization. The Company currently has ownership interest in, or management responsibility for, a portfolio of over 200 regional shopping malls in 45 states, as well as ownership in master planned community developments and commercial office buildings. The Company’s portfolio totals approximately 200 million square feet and includes over 24,000 retail stores nationwide. The Company is listed on the New York Stock Exchange under the symbol GGP. For more information, please visit the Company website at http://www.ggp.com.
NON-GAAP SUPPLEMENTAL FINANCIAL MEASURES AND DEFINITIONS
FUNDS FROM OPERATIONS (FFO)
The Company, consistent with real estate industry and investment community preferences, uses FFO as a supplemental measure of operating performance for a REIT. The National Association of Real Estate Investment Trusts (NAREIT) defines FFO as net income (loss) (computed in accordance with Generally Accepted Accounting Principles (GAAP)), excluding gains (or losses) from cumulative effects of accounting changes, extraordinary items and sales of properties, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.
The Company considers FFO a supplemental measure for equity REITs and a complement to GAAP measures because it facilitates an understanding of the operating performance of the Company’s properties. FFO does not give effect to real estate depreciation and amortization since these amounts are computed to allocate the cost of
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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. However, we believe that Funds From Operations is a less meaningful supplemental measure of performance for the Master Planned Communities segment of our business. Funds From Operations does not facilitate an understanding of the operating performance of the Master Planned Communities segment of our business as our primary strategy in this segment is to develop and sell land in a manner that increases the value of the remaining land. In addition, the Master Planned Communities segment of our business is operated within taxable REIT subsidiaries and therefore our income tax expense is largely attributable to this segment of the business. To isolate these parts of the Company from the Retail and Other segment for which Funds From Operations is a relevant measure of operating performance, the Company also uses Core FFO as an operating measure. Core FFO is defined as Funds From Operations excluding the Real Estate Property Net Operating Income from the Master Planned Communities segment and the provision for income taxes.
In order to provide a better understanding of the relationship between Core FFO, FFO and GAAP net income, a reconciliation of Core FFO and FFO to GAAP net income has been provided. Neither Core FFO nor FFO represent cash flows from operating activities in accordance with GAAP, neither should be considered as an alternative to GAAP net income and neither is necessarily indicative of cash available to fund cash needs. In addition, the Company has presented FFO 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.
REAL ESTATE PROPERTY NET OPERATING INCOME (NOI) AND COMPARABLE NOI
The Company believes that Real Estate Property Net Operating Income (NOI) is a useful supplemental measure of the Company’s operating performance. The Company defines NOI as operating revenues (rental income, land sales, tenant recoveries and other income) less property and related expenses (real estate taxes, land sales operating costs, repairs and maintenance, marketing and other property expenses). As with FFO described above, NOI has been reflected on a consolidated and unconsolidated 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.
Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, gains and losses from property dispositions, minority interest in consolidated joint ventures, and extraordinary items, it provides a performance
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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, land values and operating costs. This measure thereby provides an operating perspective not immediately apparent from GAAP operating or net income. The Company uses NOI to evaluate its operating performance on a property-by-property basis because NOI allows the Company to evaluate the impact that factors such as lease structure, lease rates and tenant base, which vary by property, have on the Company’s operating results, gross margins and investment returns.
In addition, management believes that NOI provides useful information to the investment community about the Company’s operating performance. However, due to the exclusions noted above, NOI should only be used as an alternative measure of the Company’s financial performance. For reference, and as an aid in understanding management’s computation of NOI, a reconciliation of NOI to consolidated operating income as computed in accordance with GAAP has been presented.
Comparable NOI excludes from both years the NOI of properties with significant physical or merchandising changes and those properties acquired or opened during the relevant comparative accounting periods.
PROPERTY INFORMATION
The Company has presented information on its consolidated and unconsolidated properties separately in the accompanying financial schedules. As a significant portion of the Company’s total operations are structured as joint venture arrangements which are unconsolidated, management of the Company believes that operating data with respect to all properties owned provides important insights into the income produced by such investments for the Company as a whole. In addition, the individual items of revenue and expense for the unconsolidated properties have been presented at the Company’s ownership share of such unconsolidated ventures. As substantially all of the management operating philosophies and strategies are the same regardless of ownership structure, an aggregate presentation of NOI and other operating statistics yields a more accurate representation of the relative size and significance of such elements to the Company’s overall operations.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements, including full year 2008 Core FFO per share guidance and expected sales trends in the Master Planned Communities segment. Actual results may differ materially from the results suggested by these forward-looking statements, for a number of reasons, including, but not limited to, the retail market, tenant occupancy and tenant bankruptcies, the level of indebtedness and interest rates, market conditions, land sales in the Master Planned Communities segment, the cost and success of development and re-development projects and ability to successfully manage growth. Readers are referred to the documents filed by General Growth Properties, Inc. with the SEC, specifically the most recent report on Form 10-K, which further identify the important risk factors which could cause actual results to differ
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materially from the forward-looking statements in this release. The Company disclaims any obligation to update any forward-looking statements.
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GENERAL GROWTH PROPERTIES, INC.
OVERVIEW
(In thousands, except per share amounts)
OVERVIEW
(In thousands, except per share amounts)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Funds From Operations (“FFO”) | ||||||||||||||||
Company stockholders | $ | 157,034 | $ | 247,415 | $ | 907,010 | $ | 740,566 | ||||||||
Operating Partnership unitholders | 33,388 | 53,838 | 193,798 | 161,795 | ||||||||||||
Operating Partnership | $ | 190,422 | $ | 301,253 | $ | 1,100,808 | $ | 902,361 | ||||||||
Increase (decrease) in FFO over comparable prior year period | (36.8 | )% | 13.3 | % | 22.0 | % | 1.2 | % | ||||||||
FFO per share: | ||||||||||||||||
Company stockholders — basic | $ | 0.64 | $ | 1.02 | $ | 3.72 | $ | 3.07 | ||||||||
Operating Partnership — basic | 0.64 | 1.02 | 3.72 | 3.07 | ||||||||||||
Operating Partnership — diluted | 0.64 | 1.02 | 3.71 | 3.06 | ||||||||||||
Increase (decrease) in diluted FFO over comparable prior year period | (37.3 | )% | 12.1 | % | 21.2 | % | 0.3 | % | ||||||||
Core Funds From Operations (“Core FFO”) | ||||||||||||||||
Core FFO | $ | 271,232 | $ | 292,028 | $ | 880,933 | $ | 871,940 | ||||||||
Core FFO per share — diluted | 0.92 | 0.99 | 2.97 | 2.96 | ||||||||||||
Increase (decrease) in Core FFO over comparable prior year period | (7.1 | )% | 14.7 | % | 1.0 | % | 2.8 | % | ||||||||
Dividends | ||||||||||||||||
Dividends paid per share | $ | 0.50 | $ | 0.45 | $ | 1.85 | $ | 1.68 | ||||||||
Payout ratio (% of diluted FFO paid out) | 78.1 | % | 44.1 | % | 49.9 | % | 54.9 | % | ||||||||
Real Estate Property Net Operating Income (“NOI”) | ||||||||||||||||
Retail and Other: | ||||||||||||||||
Consolidated | $ | 613,507 | $ | 511,991 | $ | 2,054,063 | $ | 1,840,915 | ||||||||
Unconsolidated | 105,448 | 129,152 | 419,535 | 450,050 | ||||||||||||
Total Retail and Other | 718,955 | 641,143 | 2,473,598 | 2,290,965 | ||||||||||||
Master Planned Communities: | ||||||||||||||||
Consolidated | (119,924 | ) | 48,765 | (98,659 | ) | 106,730 | ||||||||||
Unconsolidated | 2,163 | 7,349 | 27,204 | 23,257 | ||||||||||||
Total Master Planned Communities | (117,761 | ) | 56,114 | (71,455 | ) | 129,987 | ||||||||||
Total Real estate property net operating income | $ | 601,194 | $ | 697,257 | $ | 2,402,143 | $ | 2,420,952 | ||||||||
December 31, | December 31, | |||||||
2007 | 2006 | |||||||
Selected Balance Sheet Information | ||||||||
Cash and cash equivalents | $ | 99,534 | $ | 97,139 | ||||
Investment in real estate: | ||||||||
Net land, buildings and equipment | $ | 22,359,249 | $ | 19,564,992 | ||||
Developments in progress | 987,936 | 673,900 | ||||||
Net investment in and loans to/from Unconsolidated Real Estate Affiliates | 1,803,366 | 1,326,615 | ||||||
Investment land and land held for development and sale | 1,639,372 | 1,655,838 | ||||||
Net investment in real estate | $ | 26,789,923 | $ | 23,221,345 | ||||
Total assets | $ | 28,814,319 | $ | 25,241,445 | ||||
Mortgage, notes and loans payable | $ | 24,282,139 | $ | 20,521,967 | ||||
Minority interest — Preferred | 121,482 | 182,828 | ||||||
Minority interest — Common | 351,362 | 347,753 | ||||||
Stockholders’ equity | 1,456,696 | 1,664,079 | ||||||
Total capitalization (at cost) | $ | 26,211,679 | $ | 22,716,627 | ||||
Consolidated Properties | Unconsolidated Properties (a) | |||||||||||||||
Average | Average | |||||||||||||||
Outstanding | Interest | Outstanding | Interest | |||||||||||||
Balance | Rate (d) | Balance | Rate (d) | |||||||||||||
Summarized Debt Information | ||||||||||||||||
Fixed rate (c) | $ | 20,830,080 | 5.52 | % | $ | 2,750,369 | 5.67 | % | ||||||||
Variable rate (c) | 3,247,457 | 6.76 | 298,606 | 7.42 | ||||||||||||
Totals | $ | 24,077,537 | (b) | 5.68 | % | $ | 3,048,975 | 5.84 | % | |||||||
(a) | Reflects the Company’s share of debt relating to the properties owned by the Unconsolidated Real Estate Affiliates. | |
(b) | Excludes special improvement districts liability of $71.8 million, minority interest adjustment of $65.4 million and purchase accounting mark-to-market adjustments of $67.4 million. | |
(c) | Includes the effects of interest rate swaps. | |
(d) | Rates include the effects of deferred finance costs and the effect of a 360 day rate applied over a 365 day period. |
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GENERAL GROWTH PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Revenues: | ||||||||||||||||
Minimum rents | $ | 544,440 | $ | 458,872 | $ | 1,933,674 | $ | 1,753,508 | ||||||||
Tenant recoveries | 233,548 | 197,364 | 859,801 | 773,034 | ||||||||||||
Overage rents | 46,438 | 38,372 | 89,016 | 75,945 | ||||||||||||
Land sales | 31,538 | 205,159 | 145,649 | 423,183 | ||||||||||||
Management and other fees | 26,180 | 35,668 | 106,584 | 115,798 | ||||||||||||
Other | 46,524 | 36,388 | 127,077 | 114,815 | ||||||||||||
Total revenues | 928,668 | 971,823 | 3,261,801 | 3,256,283 | ||||||||||||
Expenses: | ||||||||||||||||
Real estate taxes | 66,480 | 51,807 | 246,484 | 218,549 | ||||||||||||
Repairs and maintenance | 65,287 | 54,139 | 216,536 | 199,078 | ||||||||||||
Marketing | 19,134 | 14,151 | 54,664 | 48,626 | ||||||||||||
Other property operating costs | 108,271 | 90,928 | 421,228 | 373,020 | ||||||||||||
Land sales operations | 151,462 | 156,394 | 244,308 | 316,453 | ||||||||||||
Provision for (recovery of) doubtful accounts | (4,640 | ) | 4,996 | 5,426 | 22,078 | |||||||||||
Property management and other costs | 43,770 | 47,509 | 198,610 | 181,033 | ||||||||||||
General and administrative | 16,076 | 4,146 | 37,005 | 18,800 | ||||||||||||
Litigation provision | 89,225 | — | 89,225 | — | ||||||||||||
Depreciation and amortization | 142,610 | 177,852 | 670,454 | 690,194 | ||||||||||||
Total expenses | 697,675 | 601,922 | 2,183,940 | 2,067,831 | ||||||||||||
Operating income | 230,993 | 369,901 | 1,077,861 | 1,188,452 | ||||||||||||
Interest income | 1,637 | 2,868 | 8,641 | 11,585 | ||||||||||||
Interest expense | (319,333 | ) | (275,759 | ) | (1,174,097 | ) | (1,117,437 | ) | ||||||||
Income (loss) before income taxes, minority interest and equity in income of Unconsolidated Real Estate Affiliates | (86,703 | ) | 97,010 | (87,595 | ) | 82,600 | ||||||||||
Benefit from (provision for) income taxes | 37,709 | (46,864 | ) | 294,160 | (98,984 | ) | ||||||||||
Minority interest | (16,241 | ) | (21,718 | ) | (77,012 | ) | (37,761 | ) | ||||||||
Equity in income of Unconsolidated Real Estate Affiliates | 123,961 | 42,628 | 158,401 | 114,241 | ||||||||||||
Income from continuing operations | 58,726 | 71,056 | 287,954 | 60,096 | ||||||||||||
Discontinued operations — loss on disposition | — | (823 | ) | — | (823 | ) | ||||||||||
Net income | $ | 58,726 | $ | 70,233 | $ | 287,954 | $ | 59,273 | ||||||||
Basic Earnings Per Share: | ||||||||||||||||
Continuing operations | $ | 0.24 | $ | 0.29 | $ | 1.18 | $ | 0.25 | ||||||||
Discontinued operations | — | — | — | — | ||||||||||||
Total basic earnings per share | $ | 0.24 | $ | 0.29 | $ | 1.18 | $ | 0.25 | ||||||||
Diluted Earnings Per Share: | ||||||||||||||||
Continuing operations | $ | 0.24 | $ | 0.29 | $ | 1.18 | $ | 0.24 | ||||||||
Discontinued operations | — | — | — | — | ||||||||||||
Total diluted earnings per share | $ | 0.24 | $ | 0.29 | $ | 1.18 | $ | 0.24 | ||||||||
12
GENERAL GROWTH PROPERTIES, INC.
PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS (“FFO”)
(In thousands)
PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS (“FFO”)
(In thousands)
Three Months Ended December 31, 2007 | ||||||||||||
Consolidated | Unconsolidated | Segment | ||||||||||
Properties | Properties | Basis | ||||||||||
Retail and Other | ||||||||||||
Property revenues: | ||||||||||||
Minimum rents | $ | 544,440 | $ | 96,337 | $ | 640,777 | ||||||
Tenant recoveries | 233,548 | 39,098 | 272,646 | |||||||||
Overage rents | 46,438 | 6,360 | 52,798 | |||||||||
Other, including minority interest | 43,613 | 21,440 | 65,053 | |||||||||
Total property revenues | 868,039 | 163,235 | 1,031,274 | |||||||||
Property operating expenses: | ||||||||||||
Real estate taxes | 66,480 | 9,863 | 76,343 | |||||||||
Repairs and maintenance | 65,287 | 10,443 | 75,730 | |||||||||
Marketing | 19,134 | 3,609 | 22,743 | |||||||||
Other property operating costs | 108,271 | 33,836 | 142,107 | |||||||||
Provision for (recovery of) doubtful accounts | (4,640 | ) | 36 | (4,604 | ) | |||||||
Total property operating expenses | 254,532 | 57,787 | 312,319 | |||||||||
Retail and other net operating income | 613,507 | 105,448 | 718,955 | |||||||||
Master Planned Communities | ||||||||||||
Land sales | 31,538 | 15,459 | 46,997 | |||||||||
Land sales operations | (23,862 | ) | (13,296 | ) | (37,158 | ) | ||||||
Master Planned Communities net operating income before impairment charge | 7,676 | 2,163 | 9,839 | |||||||||
Columbia and Fairwood Communities impairment charge | (127,600 | ) | — | (127,600 | ) | |||||||
Master Planned Communities net operating income (loss) | (119,924 | ) | 2,163 | (117,761 | ) | |||||||
Real estate property net operating income | 493,583 | 107,611 | $ | 601,194 | ||||||||
Management and other fees | 26,180 | 7,046 | ||||||||||
Property management and other costs | (19,466 | ) | (921 | ) | ||||||||
Headquarters/regional costs | (24,304 | ) | (10,951 | ) | ||||||||
General and administrative | (16,076 | ) | 199 | |||||||||
Litigation provision | (89,225 | ) | 37,112 | |||||||||
Depreciation on non-income producing assets, including headquarters building | (2,800 | ) | — | |||||||||
Interest income | 1,637 | 2,616 | ||||||||||
Interest expense | (319,333 | ) | (37,972 | ) | ||||||||
Benefit from (provision for) income taxes | 37,709 | (758 | ) | |||||||||
Preferred unit distributions | (2,947 | ) | — | |||||||||
Other FFO from minority interest | 1,451 | 31 | ||||||||||
FFO | 86,409 | 104,013 | ||||||||||
Equity in FFO of Unconsolidated Properties | 104,013 | (104,013 | ) | |||||||||
Operating Partnership FFO | $ | 190,422 | $ | — | ||||||||
Includes reclassifications of litigation and legal costs from GGP/Homart II to GGP.
Three Months Ended December 31, 2006 | ||||||||||||
Consolidated | Unconsolidated | Segment | ||||||||||
Properties | Properties | Basis | ||||||||||
Retail and Other | ||||||||||||
Property revenues: | ||||||||||||
Minimum rents | $ | 458,872 | $ | 116,194 | $ | 575,066 | ||||||
Tenant recoveries | 197,364 | 47,805 | 245,169 | |||||||||
Overage rents | 38,372 | 9,792 | 48,164 | |||||||||
Other, including minority interest | 33,404 | 29,206 | 62,610 | |||||||||
Total property revenues | 728,012 | 202,997 | 931,009 | |||||||||
Property operating expenses: | ||||||||||||
Real estate taxes | 51,807 | 14,696 | 66,503 | |||||||||
Repairs and maintenance | 54,139 | 12,388 | 66,527 | |||||||||
Marketing | 14,151 | 3,981 | 18,132 | |||||||||
Other property operating costs | 90,928 | 43,245 | 134,173 | |||||||||
Provision for (recovery of) doubtful accounts | 4,996 | (465 | ) | 4,531 | ||||||||
Total property operating expenses | 216,021 | 73,845 | 289,866 | |||||||||
Retail and other net operating income | 511,991 | 129,152 | 641,143 | |||||||||
Master Planned Communities | ||||||||||||
Land sales | 205,159 | 25,210 | 230,369 | |||||||||
Land sales operations | (156,394 | ) | (17,861 | ) | (174,255 | ) | ||||||
Master Planned Communities net operating income | 48,765 | 7,349 | 56,114 | |||||||||
Real estate property net operating income | 560,756 | 136,501 | $ | 697,257 | ||||||||
Management and other fees | 35,668 | 2,808 | ||||||||||
Property management and other costs | (24,829 | ) | (192 | ) | ||||||||
Headquarters/regional costs | (22,680 | ) | (10,285 | ) | ||||||||
General and administrative | (4,146 | ) | (1,531 | ) | ||||||||
Depreciation on non-income producing assets, including headquarters building | (3,351 | ) | — | |||||||||
Interest income | 2,868 | 4,349 | ||||||||||
Interest expense | (275,759 | ) | (49,418 | ) | ||||||||
Provision for income taxes | (46,864 | ) | (25 | ) | ||||||||
Preferred unit distributions | (4,126 | ) | — | |||||||||
Other FFO from minority interest | 1,509 | — | ||||||||||
FFO | 219,046 | 82,207 | ||||||||||
Equity in FFO of Unconsolidated Properties | 82,207 | (82,207 | ) | |||||||||
Operating Partnership FFO | $ | 301,253 | $ | — | ||||||||
13
GENERAL GROWTH PROPERTIES, INC.
PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS (“FFO”)
(In thousands)
PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS (“FFO”)
(In thousands)
Twelve Months Ended December 31, 2007 | ||||||||||||
Consolidated | Unconsolidated | Segment | ||||||||||
Properties | Properties | Basis | ||||||||||
Retail and Other | ||||||||||||
Property revenues: | ||||||||||||
Minimum rents | $ | 1,933,674 | $ | 406,241 | $ | 2,339,915 | ||||||
Tenant recoveries | 859,801 | 173,486 | 1,033,287 | |||||||||
Overage rents | 89,016 | 12,213 | 101,229 | |||||||||
Other, including minority interest | 115,910 | 82,884 | 198,794 | |||||||||
Total property revenues | 2,998,401 | 674,824 | 3,673,225 | |||||||||
Property operating expenses: | ||||||||||||
Real estate taxes | 246,484 | 50,478 | 296,962 | |||||||||
Repairs and maintenance | 216,536 | 40,559 | 257,095 | |||||||||
Marketing | 54,664 | 12,233 | 66,897 | |||||||||
Other property operating costs | 421,228 | 150,041 | 571,269 | |||||||||
Provision for doubtful accounts | 5,426 | 1,978 | 7,404 | |||||||||
Total property operating expenses | 944,338 | 255,289 | 1,199,627 | |||||||||
Retail and other net operating income | 2,054,063 | 419,535 | 2,473,598 | |||||||||
Master Planned Communities | ||||||||||||
Land sales | 145,649 | 85,017 | 230,666 | |||||||||
Land sales operations | (116,708 | ) | (57,813 | ) | (174,521 | ) | ||||||
Master Planned Communities net operating income before impairment charge | 28,941 | 27,204 | 56,145 | |||||||||
Columbia and Fairwood Communities impairment charge | (127,600 | ) | — | (127,600 | ) | |||||||
Master Planned Communities net operating income (loss) | (98,659 | ) | 27,204 | (71,455 | ) | |||||||
Real estate property net operating income | 1,955,404 | 446,739 | $ | 2,402,143 | ||||||||
Management and other fees | 106,584 | 19,869 | ||||||||||
Property management and other costs | (84,583 | ) | (3,029 | ) | ||||||||
Headquarters/regional costs | (114,027 | ) | (42,305 | ) | ||||||||
General and administrative | (37,005 | ) | (3,700 | ) | ||||||||
Litigation provision | (89,225 | ) | — | |||||||||
Depreciation on non-income producing assets, including headquarters building | (12,006 | ) | — | |||||||||
Interest income | 8,641 | 16,417 | ||||||||||
Interest expense | (1,174,097 | ) | (176,937 | ) | ||||||||
Benefit from (provision for) income taxes | 294,160 | (2,830 | ) | |||||||||
Preferred unit distributions | (12,963 | ) | — | |||||||||
Other FFO from minority interest | 5,639 | 62 | ||||||||||
FFO | 846,522 | 254,286 | ||||||||||
Equity in FFO of Unconsolidated Properties | 254,286 | (254,286 | ) | |||||||||
Operating Partnership FFO | $ | 1,100,808 | $ | — | ||||||||
Twelve Months Ended December 30, 2006 | ||||||||||||
Consolidated | Unconsolidated | Segment | ||||||||||
Properties | Properties | Basis | ||||||||||
Retail and Other | ||||||||||||
Property revenues: | ||||||||||||
Minimum rents | $ | 1,753,508 | $ | 428,337 | $ | 2,181,845 | ||||||
Tenant recoveries | 773,034 | 187,782 | 960,816 | |||||||||
Overage rents | 75,945 | 15,966 | 91,911 | |||||||||
Other, including minority interest | 99,779 | 88,552 | 188,331 | |||||||||
Total property revenues | 2,702,266 | 720,637 | 3,422,903 | |||||||||
Property operating expenses: | ||||||||||||
Real estate taxes | 218,549 | 58,832 | 277,381 | |||||||||
Repairs and maintenance | 199,078 | 43,768 | 242,846 | |||||||||
Marketing | 48,626 | 13,184 | 61,810 | |||||||||
Other property operating costs | 373,020 | 154,010 | 527,030 | |||||||||
Provision for doubtful accounts | 22,078 | 793 | 22,871 | |||||||||
Total property operating expenses | 861,351 | 270,587 | 1,131,938 | |||||||||
Retail and other net operating income | 1,840,915 | 450,050 | 2,290,965 | |||||||||
Master Planned Communities | ||||||||||||
Land sales | 423,183 | 85,561 | 508,744 | |||||||||
Land sales operations | (316,453 | ) | (62,304 | ) | (378,757 | ) | ||||||
Master Planned Communities net operating income | 106,730 | 23,257 | 129,987 | |||||||||
Real estate property net operating income | 1,947,645 | 473,307 | $ | 2,420,952 | ||||||||
Management and other fees | 115,798 | 7,556 | ||||||||||
Property management and other costs | (89,892 | ) | (1,088 | ) | ||||||||
Headquarters/regional costs | (91,141 | ) | (37,042 | ) | ||||||||
General and administrative | (18,800 | ) | (3,974 | ) | ||||||||
Depreciation on non-income producing assets, including headquarters building | (13,106 | ) | — | |||||||||
Interest income | 11,585 | 15,039 | ||||||||||
Interest expense | (1,117,437 | ) | (185,438 | ) | ||||||||
Provision for income taxes | (98,984 | ) | (582 | ) | ||||||||
Preferred unit distributions | (17,264 | ) | — | |||||||||
Other FFO from minority interest | 6,179 | — | ||||||||||
FFO | 634,583 | 267,778 | ||||||||||
Equity in FFO of Unconsolidated Properties | 267,778 | (267,778 | ) | |||||||||
Operating Partnership FFO | $ | 902,361 | $ | — | ||||||||
14
GENERAL GROWTH PROPERTIES, INC.
SUPPLEMENTAL DISCLOSURE OF CERTAIN REVENUES AND EXPENSES
REFLECTED IN FFO
(In thousands)
SUPPLEMENTAL DISCLOSURE OF CERTAIN REVENUES AND EXPENSES
REFLECTED IN FFO
(In thousands)
Three Months Ended | Three Months Ended | |||||||||||||||
December 31, 2007 | December 31, 2006 | |||||||||||||||
Consolidated | Unconsolidated | Consolidated | Unconsolidated | |||||||||||||
Properties | Properties | Properties | Properties | |||||||||||||
Minimum rents: | ||||||||||||||||
Above- and below-market tenant leases, net | $ | 2,485 | $ | 2,716 | $ | 10,440 | $ | 2,367 | ||||||||
Straight-line rent | (2,315 | ) | 290 | (2,587 | ) | (1,027 | ) | |||||||||
Other property operating costs: | ||||||||||||||||
Non-cash ground rent expense | (2,694 | ) | (193 | ) | (2,132 | ) | (193 | ) | ||||||||
Real estate taxes: | ||||||||||||||||
Real estate tax stabilization agreement | (981 | ) | — | (981 | ) | — | ||||||||||
Interest expense: | ||||||||||||||||
Mark-to-market adjustments on debt | 4,063 | 765 | 7,367 | 1,025 | ||||||||||||
Amortization of deferred finance costs | (5,288 | ) | (344 | ) | (3,475 | ) | (421 | ) | ||||||||
Debt extinguishment costs: | ||||||||||||||||
Write-off of mark-to-market adjustments | 1,167 | — | 460 | — | ||||||||||||
Write-off of deferred finance costs | (154 | ) | (2 | ) | — | (15 | ) | |||||||||
Totals | $ | (3,717 | ) | $ | 3,232 | $ | 9,092 | $ | 1,736 | |||||||
Twelve Months Ended | Twelve Months Ended | |||||||||||||||
December 31, 2007 | December 31, 2006 | |||||||||||||||
Consolidated | Unconsolidated | Consolidated | Unconsolidated | |||||||||||||
Properties | Properties | Properties | Properties | |||||||||||||
Minimum rents: | ||||||||||||||||
Above- and below-market tenant leases, net | $ | 30,988 | $ | 9,791 | $ | 39,661 | $ | 9,627 | ||||||||
Straight-line rent | 24,334 | 7,445 | 34,176 | 7,605 | ||||||||||||
Other property operating costs: | ||||||||||||||||
Non-cash ground rent expense | (7,479 | ) | (769 | ) | (6,368 | ) | (785 | ) | ||||||||
Real estate taxes: | ||||||||||||||||
Real estate tax stabilization agreement | (3,924 | ) | — | (3,810 | ) | — | ||||||||||
Interest expense: | ||||||||||||||||
Mark-to-market adjustments on debt | 28,536 | 3,916 | 32,153 | 3,859 | ||||||||||||
Amortization of deferred finance costs | (18,916 | ) | (1,658 | ) | (16,079 | ) | (1,808 | ) | ||||||||
Debt extinguishment costs: | ||||||||||||||||
Write-off of mark-to-market adjustments | 4,932 | — | 3,945 | — | ||||||||||||
Write-off of deferred finance costs | (3,255 | ) | (2 | ) | (6,150 | ) | (456 | ) | ||||||||
Totals | $ | 55,216 | $ | 18,723 | $ | 77,528 | $ | 18,042 | ||||||||
WEIGHTED AVERAGE SHARES
(In thousands)
(In thousands)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Basic | 243,867 | 241,779 | 243,992 | 241,222 | ||||||||||||
Diluted | 244,258 | 242,739 | 244,538 | 242,054 | ||||||||||||
Assuming full conversion of Operating Partnership units: | ||||||||||||||||
Basic | 295,718 | 294,391 | 296,125 | 293,923 | ||||||||||||
Diluted | 296,109 | 295,351 | 296,671 | 294,755 |
15
GENERAL GROWTH PROPERTIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
(In thousands)
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
(In thousands)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Reconciliation of Real Estate Property Net Operating Income (“NOI”) to GAAP Operating Income | ||||||||||||||||
Real estate property net operating income: | ||||||||||||||||
Segment basis | $ | 601,194 | $ | 697,257 | $ | 2,402,143 | $ | 2,420,952 | ||||||||
Unconsolidated Properties | (107,611 | ) | (136,501 | ) | (446,739 | ) | (473,307 | ) | ||||||||
Consolidated Properties | 493,583 | 560,756 | 1,955,404 | 1,947,645 | ||||||||||||
Management and other fees | 26,180 | 35,668 | 106,584 | 115,798 | ||||||||||||
Property management and other costs | (19,466 | ) | (24,829 | ) | (84,583 | ) | (89,892 | ) | ||||||||
Headquarters/regional costs | (24,304 | ) | (22,680 | ) | (114,027 | ) | (91,141 | ) | ||||||||
General and administrative | (16,076 | ) | (4,146 | ) | (37,005 | ) | (18,800 | ) | ||||||||
Litigation provision | (89,225 | ) | — | (89,225 | ) | — | ||||||||||
Depreciation and amortization | (142,610 | ) | (177,852 | ) | (670,454 | ) | (690,194 | ) | ||||||||
Minority interest in NOI of Consolidated Properties and other | 2,911 | 2,984 | 11,167 | 15,036 | ||||||||||||
Operating income | $ | 230,993 | $ | 369,901 | $ | 1,077,861 | $ | 1,188,452 | ||||||||
Reconciliation of Core FFO to Funds From Operations (“FFO”) and to GAAP Net Income | ||||||||||||||||
Core FFO | $ | 271,232 | $ | 292,028 | $ | 880,933 | $ | 871,940 | ||||||||
Master Planned Communities net operating income (loss) | (117,761 | ) | 56,114 | (71,455 | ) | 129,987 | ||||||||||
Benefit from (provision for) income taxes | 36,951 | (46,889 | ) | 291,330 | (99,566 | ) | ||||||||||
Funds From Operations — Operating Partnership | 190,422 | 301,253 | 1,100,808 | 902,361 | ||||||||||||
Depreciation and amortization of capitalized real estate costs | (164,438 | ) | (218,617 | ) | (797,189 | ) | (835,656 | ) | ||||||||
Minority interest in depreciation of Consolidated Properties and other | 45,292 | 5,828 | 45,944 | 8,401 | ||||||||||||
Minority interest to Operating Partnership unitholders | (12,550 | ) | (17,408 | ) | (61,609 | ) | (15,010 | ) | ||||||||
Income from continuing operations | 58,726 | 71,056 | 287,954 | 60,096 | ||||||||||||
Loss on disposition, net of minority interest | — | (823 | ) | — | (823 | ) | ||||||||||
Net income | $ | 58,726 | $ | 70,233 | $ | 287,954 | $ | 59,273 | ||||||||
Reconciliation of Equity in NOI of Unconsolidated Properties to GAAP Equity in Income of Unconsolidated Affiliates | ||||||||||||||||
Equity in Unconsolidated Properties: | ||||||||||||||||
NOI | $ | 107,611 | $ | 136,501 | $ | 446,739 | $ | 473,307 | ||||||||
Net property management fees and costs | 6,125 | 2,616 | 16,840 | 6,468 | ||||||||||||
Net interest expense | (35,356 | ) | (45,069 | ) | (160,520 | ) | (170,399 | ) | ||||||||
Litigation provision | 37,112 | — | — | — | ||||||||||||
Headquarters, general and administrative, income taxes and minority interest in FFO | (11,479 | ) | (11,841 | ) | (48,773 | ) | (41,598 | ) | ||||||||
FFO of unconsolidated properties | 104,013 | 82,207 | 254,286 | 267,778 | ||||||||||||
Depreciation and amortization of capitalized real estate costs | (24,628 | ) | (44,118 | ) | (138,741 | ) | (158,567 | ) | ||||||||
Other, including gain on sales of investment properties | 44,576 | 4,539 | 42,856 | 5,030 | ||||||||||||
Equity in income of unconsolidated real estate affiliates | $ | 123,961 | $ | 42,628 | $ | 158,401 | $ | 114,241 | ||||||||
Reconciliation of Weighted Average Shares Outstanding | ||||||||||||||||
Basic: | ||||||||||||||||
Weighted average number of shares outstanding — FFO per share | 295,718 | 294,391 | 296,125 | 293,923 | ||||||||||||
Conversion of Operating Partnership units | (51,851 | ) | (52,612 | ) | (52,133 | ) | (52,701 | ) | ||||||||
Weighted average number of Company shares outstanding — GAAP EPS | 243,867 | 241,779 | 243,992 | 241,222 | ||||||||||||
Diluted: | ||||||||||||||||
Weighted average number of shares outstanding — FFO per share | 296,109 | 295,351 | 296,671 | 294,755 | ||||||||||||
Conversion of Operating Partnership units | (51,851 | ) | (52,612 | ) | (52,133 | ) | (52,701 | ) | ||||||||
Weighted average number of Company shares outstanding — GAAP EPS | 244,258 | 242,739 | 244,538 | 242,054 | ||||||||||||
16
Supplemental Financial Data
GENERAL GROWTH PROPERTIES, INC.
SUMMARY RETAINED FFO & CORE FFO
(dollars in thousands)
SUMMARY RETAINED FFO & CORE FFO
(dollars in thousands)
Three Months | Twelve Months | |||||||
Ended | Ended | |||||||
December 31, 2007 | December 31, 2007 | |||||||
Cash From Recurring Operations | ||||||||
FFO — Operating Partnership | $ | 190,422 | $ | 1,100,808 | ||||
Plus (Less): | ||||||||
Non-FFO cash from Master Planned Communities | 165,466 | 125,238 | ||||||
Deferred income taxes | (41,400 | ) | (376,101 | ) | ||||
Tenant allowances and capitalized leasing costs (a) | (51,260 | ) | (160,554 | ) | ||||
Above and below-market tenant leases, net | (5,201 | ) | (40,779 | ) | ||||
Straight line rent adjustment | 2,026 | (31,779 | ) | |||||
Non-cash ground rent expense | 2,887 | 8,248 | ||||||
Real estate tax stabilization agreement | 981 | 3,924 | ||||||
Mark-to-market adjustments on debt | (4,828 | ) | (32,452 | ) | ||||
Amortization of deferred finance costs | 5,632 | 20,574 | ||||||
Debt extinguishment costs: | ||||||||
Write-off of mark-to-market adjustments | (1,167 | ) | (4,932 | ) | ||||
Write-off of deferred finance costs | 156 | 3,257 | ||||||
Cash From Recurring Operations — Operating Partnership | $ | 263,714 | $ | 615,452 | ||||
Retained Funds From Recurring Operations | ||||||||
Cash From Recurring Operations — Operating Partnership (from above) | $ | 263,714 | $ | 615,452 | ||||
Less common dividends/distributions paid | (147,914 | ) | (547,788 | ) | ||||
Retained Funds From Recurring Operations — Operating Partnership | $ | 115,800 | $ | 67,664 | ||||
(a) | Reflects only recurring tenant allowances; allowances that relate to new and redevelopment projects are excluded. |
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Core FFO | ||||||||||||||||
Operating Partnership FFO | $ | 190,422 | $ | 301,253 | $ | 1,100,808 | $ | 902,361 | ||||||||
Exclusions, at the Company’s share: | ||||||||||||||||
Master Planned Communities net operating (income) loss | 117,761 | (56,114 | ) | 71,455 | (129,987 | ) | ||||||||||
Provision for (benefit from) income taxes | (36,951 | ) | 46,889 | (291,330 | ) | 99,566 | ||||||||||
Core FFO | $ | 271,232 | $ | 292,028 | $ | 880,933 | $ | 871,940 | ||||||||
Weighted average shares assuming full conversion of Operating Partnership units — diluted | 296,109 | 295,351 | 296,671 | 294,755 | ||||||||||||
Core FFO — per share | $ | 0.92 | $ | 0.99 | $ | 2.97 | $ | 2.96 | ||||||||
17
GENERAL GROWTH PROPERTIES, INC.
TENANT ALLOWANCES, STRAIGHT LINE RENT & SFAS #141 & #142
(dollars in thousands)
TENANT ALLOWANCES, STRAIGHT LINE RENT & SFAS #141 & #142
(dollars in thousands)
(a) | Reflects only recurring tenant allowances; allowances that relate to new and redevelopment projects are excluded. |
18
GENERAL GROWTH PROPERTIES, INC.
TRAILING TWELVE MONTH EBITDA AND COVERAGE RATIOS (a)
(dollars in thousands)
TRAILING TWELVE MONTH EBITDA AND COVERAGE RATIOS (a)
(dollars in thousands)
Twelve Months Ended | ||||||||||||||||
12/31/2007 | 9/30/2007 | 6/30/2007 | 3/31/2007 | |||||||||||||
Pro Rata EBITDA (a) | ||||||||||||||||
GAAP Net Income | $ | 287,954 | $ | 299,460 | $ | 300,658 | $ | 266,453 | ||||||||
Loss (Income) from Discontinued Operations, net of Minority Interest | — | 823 | 823 | 823 | ||||||||||||
Income Allocated to Minority Interest | 77,012 | 82,489 | 85,401 | 80,954 | ||||||||||||
Interest Expense | 1,327,203 | 1,296,416 | 1,281,319 | 1,280,986 | ||||||||||||
Income Taxes | (289,430 | ) | (207,490 | ) | (210,884 | ) | (216,937 | ) | ||||||||
Amortization of Deferred Finance Costs | 20,574 | 18,838 | 18,314 | 18,543 | ||||||||||||
Debt Extinguishment Costs | (1,675 | ) | 3,653 | 4,162 | 1,903 | |||||||||||
Interest Income | (21,575 | ) | (24,732 | ) | (29,483 | ) | (26,136 | ) | ||||||||
Depreciation and amortization | 809,161 | 863,909 | 846,788 | 861,252 | ||||||||||||
Pro Rata EBITDA | $ | 2,209,224 | $ | 2,333,366 | $ | 2,297,098 | $ | 2,267,841 | ||||||||
Net Interest(a) | ||||||||||||||||
Amortization of Deferred Finance Costs | (20,574 | ) | (18,838 | ) | (18,314 | ) | (18,543 | ) | ||||||||
Debt Extinguishment Costs | 1,675 | (3,653 | ) | (4,162 | ) | (1,903 | ) | |||||||||
Interest Expense | (1,327,203 | ) | (1,296,416 | ) | (1,281,319 | ) | (1,280,986 | ) | ||||||||
Interest Income | 21,575 | 24,732 | 29,483 | 26,136 | ||||||||||||
Net Interest | $ | (1,324,527 | ) | $ | (1,294,175 | ) | $ | (1,274,312 | ) | $ | (1,275,296 | ) | ||||
Interest Coverage Ratio | 1.67 | 1.80 | 1.80 | 1.78 | ||||||||||||
Fixed Charges(b) | ||||||||||||||||
Net Interest | $ | (1,324,527 | ) | $ | (1,294,175 | ) | $ | (1,274,312 | ) | $ | (1,275,296 | ) | ||||
Preferred Unit Distributions | (12,963 | ) | (14,142 | ) | (15,748 | ) | (17,008 | ) | ||||||||
Fixed Charges | $ | (1,337,490 | ) | $ | (1,308,317 | ) | $ | (1,290,060 | ) | $ | (1,292,304 | ) | ||||
Ratio of Pro Rata EBITDA to Fixed Charges | 1.65 | 1.78 | 1.78 | 1.75 | ||||||||||||
Fixed Charges & Common Dividend | ||||||||||||||||
Fixed Charges | $ | (1,337,490 | ) | $ | (1,308,317 | ) | $ | (1,290,060 | ) | $ | (1,292,304 | ) | ||||
Common Dividend/Distributions | (547,788 | ) | (532,093 | ) | (519,077 | ) | (505,849 | ) | ||||||||
Fixed Charges + Dividend | $ | (1,885,278 | ) | $ | (1,840,410 | ) | $ | (1,809,137 | ) | $ | (1,798,153 | ) | ||||
Ratio of Pro Rata EBITDA to Fixed Charges + Dividend | 1.17 | 1.27 | 1.27 | 1.26 | ||||||||||||
Certain amounts have been reclassified to conform to the current period presentation.
(a) | Includes operations of the Unconsolidated Real Estate Affiliates at the Company’s share. | |
(b) | Excludes principal amortization payments. |
19
GENERAL GROWTH PROPERTIES, INC.
COMPARABLE NOI GROWTH
(dollars in thousands)
COMPARABLE NOI GROWTH
(dollars in thousands)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
Comparable NOI Growth | 2007 | 2006 | 2007 | 2006 | ||||||||||||
Total Retail and Other NOI | $ | 718,955 | $ | 641,143 | $ | 2,473,598 | $ | 2,290,965 | ||||||||
NOI from noncomparable properties | (12,634 | ) | (17,980 | ) | (47,007 | ) | (53,066 | ) | ||||||||
Corporate and other (a) | (9,400 | ) | 35,248 | 43,569 | 113,032 | |||||||||||
Comparable NOI (b) | $ | 696,921 | $ | 658,411 | $ | 2,470,160 | $ | 2,350,931 | ||||||||
Increase in Comparable NOI | 5.8 | % | 5.1 | % |
Certain amounts have been reclassified to conform to the current period presentation.
(a) | Represents International and items that are included in the Total Retail and Other NOI line item that are not specifically related to operations. In addition, due to the acquisition of our partner’s 50% interest in the GGP/Homart I private REIT in July 2007 and, since GGP owned an interest in and managed the GGP/Homart I properties throughout 2006 and 2007, this amount includes an adjustment to reflect such additional 50% interest for all periods in the comparable NOI presentation. | |
(b) | Comparable properties are those properties that have been owned and operated for the entire time during the compared accounting periods, excludes properties at which significant physical or merchandising changes have been made and miscellaneous (non-retail) properties, and includes insurance proceeds received for business interruption claims for lost rent. |
20
GENERAL GROWTH PROPERTIES, INC.
RETAIL RECOVERY SUMMARY*
(dollars in thousands)
RETAIL RECOVERY SUMMARY*
(dollars in thousands)
Three Months Ended | ||||||||||||||||||||
12/31/2007 | 9/30/2007 | 6/30/2007 | 3/31/2007 | 12/31/2006 | ||||||||||||||||
Consolidated Properties | ||||||||||||||||||||
Tenant recoveries* | $ | 230,325 | $ | 228,397 | $ | 192,432 | $ | 195,688 | $ | 194,138 | ||||||||||
Recoverable operating expenses: | ||||||||||||||||||||
Real estate taxes | 61,459 | 64,950 | 52,444 | 53,524 | 48,639 | |||||||||||||||
Repairs and maintenance | 57,735 | 47,306 | 42,662 | 45,866 | 48,230 | |||||||||||||||
Marketing | 19,152 | 12,277 | 10,824 | 12,740 | 14,142 | |||||||||||||||
Other property operating costs | 89,290 | 97,761 | 79,086 | 82,243 | 80,246 | |||||||||||||||
Total recoverable operating expenses* | 227,636 | 222,294 | 185,016 | 194,373 | 191,257 | |||||||||||||||
Recovery Ratio | 101.2 | % | 102.7 | % | 104.0 | % | 100.7 | % | 101.5 | % | ||||||||||
Unconsolidated Properties | ||||||||||||||||||||
Tenant recoveries* | $ | 38,547 | $ | 37,959 | $ | 47,259 | $ | 47,829 | $ | 47,285 | ||||||||||
Recoverable operating expenses: | ||||||||||||||||||||
Real estate taxes | 8,713 | 10,280 | 13,786 | 14,275 | 13,628 | |||||||||||||||
Repairs and maintenance | 9,362 | 7,491 | 9,658 | 10,067 | 11,170 | |||||||||||||||
Marketing | 3,609 | 2,379 | 2,877 | 3,373 | 3,934 | |||||||||||||||
Other property operating costs | 14,059 | 14,306 | 17,815 | 18,088 | 18,602 | |||||||||||||||
Total recoverable operating expenses* | 35,743 | 34,456 | 44,136 | 45,803 | 47,334 | |||||||||||||||
Recovery Ratio | 107.8 | % | 110.2 | % | 107.1 | % | 104.4 | % | 99.9 | % |
* | Excludes office tenant recoveries and office property expenses, as well as other nonrecoverable operating expenses such as ground rent, parking, storage and other non-direct property related expenses. |
21
GENERAL GROWTH PROPERTIES, INC.
MASTER PLANNED COMMUNITIES — NET OPERATING INCOME BY COMMUNITY
(dollars in thousands)
MASTER PLANNED COMMUNITIES — NET OPERATING INCOME BY COMMUNITY
(dollars in thousands)
Unconsolidated | ||||||||||||||||||||||||
Consolidated Properties | Property @ Share | Company Portfolio | ||||||||||||||||||||||
Maryland | Total | Total MPC | ||||||||||||||||||||||
Properties (a) | Summerlin | Bridgeland | Consolidated | The Woodlands | Segment | |||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
December 31, 2007 | ||||||||||||||||||||||||
Land Sales | $ | 8,922 | $ | 20,122 | $ | 2,494 | $ | 31,538 | $ | 15,459 | $ | 46,997 | ||||||||||||
Land Sales Operations (b) (c) | 134,486 | 13,348 | 3,628 | 151,462 | 13,296 | 164,758 | ||||||||||||||||||
Net Operating Income (Loss) | $ | (125,564 | ) | $ | 6,774 | $ | (1,134 | ) | $ | (119,924 | ) | $ | 2,163 | $ | (117,761 | ) | ||||||||
December 31, 2006 | ||||||||||||||||||||||||
Land Sales | $ | 45,408 | $ | 156,109 | $ | 3,642 | $ | 205,159 | $ | 25,210 | $ | 230,369 | ||||||||||||
Land Sales Operations (b) | 41,783 | 110,412 | 4,199 | 156,394 | 17,861 | 174,255 | ||||||||||||||||||
Net Operating Income (Loss) | $ | 3,625 | $ | 45,697 | $ | (557 | ) | $ | 48,765 | $ | 7,349 | $ | 56,114 | |||||||||||
Twelve Months Ended | ||||||||||||||||||||||||
December 31, 2007 | ||||||||||||||||||||||||
Land Sales | $ | 22,561 | $ | 104,617 | $ | 18,471 | $ | 145,649 | $ | 85,017 | $ | 230,666 | ||||||||||||
Land Sales Operations (b) (c) | 149,696 | 79,639 | 14,973 | 244,308 | 57,813 | 302,121 | ||||||||||||||||||
Net Operating Income (Loss) | $ | (127,135 | ) | $ | 24,978 | $ | 3,498 | $ | (98,659 | ) | $ | 27,204 | $ | (71,455 | ) | |||||||||
December 31, 2006 | ||||||||||||||||||||||||
Land Sales | $ | 91,239 | $ | 317,198 | $ | 14,746 | $ | 423,183 | $ | 85,561 | $ | 508,744 | ||||||||||||
Land Sales Operations (b) | 78,394 | 225,639 | 12,420 | 316,453 | 62,304 | 378,757 | ||||||||||||||||||
Net Operating Income | $ | 12,845 | $ | 91,559 | $ | 2,326 | $ | 106,730 | $ | 23,257 | $ | 129,987 | ||||||||||||
(a) | Maryland Properties include Columbia and Fairwood and Land Sales Operations for such communities includes an approximate $127.6 million impairment charge recorded in the fourth quarter 2007. | |
(b) | Land Sales Operations includes selling and general and administrative expenses. | |
(c) | Land Sales Operations for Summerlin includes quarterly accruals for semi-annual distributions pursuant to the Contingent Stock Agreement (“CSA”). |
22
GENERAL GROWTH PROPERTIES, INC.
MASTER PLANNED COMMUNITIES — VALUATION AND NET CASH FLOW GENERATED
(dollars in thousands)
MASTER PLANNED COMMUNITIES — VALUATION AND NET CASH FLOW GENERATED
(dollars in thousands)
VALUATION
Investment Land and Land Held for Development and Sale: | ||||
Net Book Value — Balance Sheet as of December 31, 2007 (a) | $ | 1,639,372 | ||
Estimated Value of Assets as of December 31, 2006 (b) | 3,272,531 |
NET CASH FLOW GENERATED
Twelve Months Ended December 31, | ||||||||
2007 | 2006 | |||||||
Net Operating Income (Loss) | $ | (71,455 | ) | $ | 129,987 | |||
Cost of Land Sales | 48,793 | 175,184 | ||||||
The Woodlands Operations (c) | (27,204 | ) | (23,257 | ) | ||||
The Woodlands Cash Distribution for 2006 (c) | 70,875 | 28,875 | ||||||
Other Adjustments to Derive Cash Generated (d) | 139,788 | 52,171 | ||||||
Total Cash Generated | 160,797 | 362,960 | ||||||
Land Development Expenditures, Net of Related Financing | (107,013 | ) | (176,440 | ) | ||||
Estimated Net Cash Flow generated by Master Planned Communities Segment (e) | $ | 53,784 | $ | 186,520 | ||||
(a) | The net book value reflects the recorded carrying amount of the assets in the Company’s financial statements excluding the Company’s share of The Woodlands Operations. | |
(b) | The estimated value reflects management’s valuation of the gross assets, including the Company’s share of The Woodlands, based upon a number of assumptions including historical sales rates and historical price appreciation. The estimated value is not based on any third party purchase offers and does not reflect any reduction for the final Summerlin distribution to be made in 2010 pursuant to the CSA. | |
(c) | Since The Woodlands partnership retains all funds until the end of the year, The Woodlands NOI is excluded from the Estimated Net Cash Flow Generated by Master Planned Communities Segment. The partnership cash distribution is based on the final cash earned by The Woodlands and generally occurs at the end of each year. | |
(d) | Includes collections of builder notes receivable, deposits on future sales, conversion of accrual basis expenses to a cash basis including semi-annual distributions pursuant to the CSA, builder price participation, the impairment provision at the Maryland properties and other miscellaneous items. | |
(e) | Estimated net cash flow generated is net of (i.e. excludes) the estimated semi-annual distributions to be paid pursuant to the CSA. It does not, however, include any provision for income taxes on the earnings of the Master Planned Communities Segment which is operated through taxable REIT subsidiaries (“TRSs”). |
23
GENERAL GROWTH PROPERTIES, INC.
MASTER PLANNED COMMUNITIES — LOT SALES, PRICING AND ACREAGE BY COMMUNITY
(dollars in thousands)
MASTER PLANNED COMMUNITIES — LOT SALES, PRICING AND ACREAGE BY COMMUNITY
(dollars in thousands)
Lot Sales and Pricing (a) | Acreage (b) | |||||||||||||||||||
Twelve Months Ended | Total | Remaining | ||||||||||||||||||
December 31, | Gross | Saleable | ||||||||||||||||||
2007 | 2006 | Acres | Acres | |||||||||||||||||
Maryland Properties (c) | ||||||||||||||||||||
Residential | - Acres Sold | 10.7 | 46.5 | 263 | ||||||||||||||||
- Average Price/Acre | $ | 420 | $ | 966 | ||||||||||||||||
Commercial | - Acres Sold | 20.4 | 55.2 | 325 | ||||||||||||||||
- Average Price/Acre | $ | 548 | $ | 681 | ||||||||||||||||
Maryland Properties Acreage | 19,100 | 588 | ||||||||||||||||||
Summerlin (d) | ||||||||||||||||||||
Residential | - Acres Sold | 39.3 | 251.2 | 6,815 | ||||||||||||||||
- Average Price/Acre | $ | 1,246 | $ | 1,067 | ||||||||||||||||
Commercial | - Acres Sold | 20.8 | 22.5 | 867 | ||||||||||||||||
- Average Price/Acre | $ | 1,108 | $ | 251 | (e) | |||||||||||||||
Summerlin Acreage | 22,500 | 7,682 | ||||||||||||||||||
Bridgeland | ||||||||||||||||||||
Residential | - Acres Sold | 66.0 | 64.30 | 6,026 | ||||||||||||||||
- Average Price/Acre | $ | 248 | $ | 222 | ||||||||||||||||
Commercial | - Acres Sold | — | — | 1,261 | ||||||||||||||||
- Average Price/Acre | $ | — | $ | — | ||||||||||||||||
Bridgeland Acreage | 11,400 | 7,287 | ||||||||||||||||||
The Woodlands (f) | ||||||||||||||||||||
Residential | - Acres Sold | 293.1 | 288.1 | 1,451 | ||||||||||||||||
- Average Price/Acre | $ | 362 | $ | 374 | ||||||||||||||||
Commercial | - Acres Sold | 92.4 | 85.6 | 1,120 | ||||||||||||||||
- Average Price/Acre | $ | 395 | $ | 396 | ||||||||||||||||
Woodlands Acreage | 28,400 | 2,571 |
(a) | Average Price per Acre — This is the aggregate contract price paid for all parcels sold in that community of that property type, divided by the relevant acres sold in that period and is based on sales closed. This average price can fluctuate widely, depending on location of the parcels within a community and the unit price and density of what is sold. Note also that the price indicated does not include payments received under builders’ price participation agreements, where we may receive additional proceeds post-sale and record those revenues at that later date, based on the final selling price of the home. In some cases, these payments have been significant with respect to the initial lot price. In addition, there will be other timing differences between lot sales and reported revenue, due to financial statement revenue recognition limitations. The above pricing data also does not reflect the impact of income tax and the CSA, which can have a material impact on valuation. Due to the possibility of wide fluctuations in any given period, drawing broad conclusions based on any given quarter’s data is not recommended. | |
Reference is made to other disclosures in our filings on Forms 10-Q and 10-K, as well as page 23 of this supplemental financial information for a discussion of the valuation of this segment of our business. | ||
(b) | Acreage: | |
Residential— This includes standard, custom, and high density residential land parcels. Standard residential lots are designated for detached and attached single- and multi-family homes, of a broad range, from entry-level to luxury homes. At Summerlin, we have designated certain residential parcels as custom lots as their premium price reflects their larger size and other distinguishing features - - such as being within a gated community, having golf course access, or being located at higher elevations. High density residential includes townhomes, apartments, and condominiums. | ||
Commercial— Designated for retail, office, services, and other for-profit activities, as well as those parcels allocated for use by government, schools, and houses of worship, and other not-for-profit entities. | ||
Gross Acres— Encompasses all of the land located within the borders of the Master Planned Community, including parcels already sold, saleable parcels, and non-saleable areas, such as roads, parks, and recreation and conservation areas.Remaining Saleable Acres— Includes only parcels that are intended for sale. Excludes non-saleable acres as defined above. The mix of intended use, as well as amount of remaining saleable acres is likely to change over time as the Master Plan is refined. | ||
(c) | Maryland Properties include Columbia and Fairwood. | |
(d) | Summerlin — Does not reflect impact of CSA — please refer to most recent Form 10-K for more information. Average price per acre includes assumption of Special Improvement District financing. | |
(e) | In 2006 Summerlin Commercial includes the effect of a single sale of a 19.1 acre parcel to a school at a price of $25,013 per acre. | |
(f) | Woodlands — Shown at 100% for context — GGP Share of Woodlands is 52.5%. |
24
GENERAL GROWTH PROPERTIES, INC.
CAPITAL INFORMATION
(dollars in thousands except per share data)
CAPITAL INFORMATION
(dollars in thousands except per share data)
12/31/2007 | 12/31/2006 | 12/31/2005 | 12/31/2004 | |||||||||||||
Capital Information | ||||||||||||||||
Closing common stock price per share | $ | 41.18 | $ | 52.23 | $ | 46.99 | $ | 36.16 | ||||||||
52 Week High (a) | 67.43 | 55.70 | 48.27 | 36.90 | ||||||||||||
52 Week Low (a) | 39.31 | 42.36 | 31.38 | 24.31 | ||||||||||||
Total Return — Trailing Twelve Months (share appreciation and dividend) | -17.6 | % | 14.7 | % | 34.1 | % | 34.8 | % | ||||||||
Common Shares and Common Units outstanding at end of period | 295,749,082 | (b) | 294,957,220 | 292,258,544 | 290,256,345 | |||||||||||
Portfolio Capitalization Data | ||||||||||||||||
Total Portfolio Debt (c) | ||||||||||||||||
Fixed | $ | 23,580,449 | $ | 21,172,774 | $ | 17,293,150 | $ | 13,807,734 | ||||||||
Variable | 3,546,063 | 2,980,055 | 6,085,638 | 9,173,400 | ||||||||||||
Total Preferred Securities | 121,482 | 182,828 | 205,944 | 403,161 | ||||||||||||
Stock market value of common stock and Operating Partnership units outstanding at end of period | 12,178,947 | 15,405,616 | 13,733,229 | 10,495,669 | ||||||||||||
Total Market Capitalization at end of period | $ | 39,426,941 | (d) | $ | 39,741,273 | $ | 37,317,961 | $ | 33,879,964 | |||||||
Leverage Ratio (%) | 68.8 | % | 60.8 | % | 62.6 | % | 67.8 | % | ||||||||
(a) | 52-week pricing information includes intra-day highs and lows. | |
(b) | Net of 1.8 million treasury shares. | |
(c) | Excludes special improvement districts liability, minority interest adjustment and purchase accounting mark-to-market adjustments. | |
(d) | Excludes shares of common stock issuable on any exchange of the 3.98% Senior Exchangeable Notes due 2027, as the conditions for such exchange were not satisfied as of the period ended December 31, 2007. |
25
GENERAL GROWTH PROPERTIES, INC.
CHANGES IN TOTAL COMMON & EQUIVALENT SHARES
CHANGES IN TOTAL COMMON & EQUIVALENT SHARES
Operating | Company | Total Common | ||||||||||||||
Partnership | Common | Treasury | & Equivalent | |||||||||||||
Units | Shares | Stock | Shares | |||||||||||||
Common Shares and Operating Partnership Units (“OP Units”) | ||||||||||||||||
Outstanding at December 31, 2006 | 52,890,591 | 242,357,416 | (290,787 | ) | 294,957,220 | |||||||||||
Direct Stock Purchase and Dividend Reinvestment Plan | — | 53,429 | — | 53,429 | ||||||||||||
Employee Stock Purchase Plan | — | 179,825 | — | 179,825 | ||||||||||||
Conversion of Preferred Units to OP Units | 47,356 | — | — | 47,356 | ||||||||||||
Conversion of Preferred Units to OP Units and redemption to Common Shares | — | 29,269 | — | 29,269 | ||||||||||||
Redemption of OP Units into Common Shares | (1,086,961 | ) | 1,086,961 | — | — | |||||||||||
Issuance of Stock for Stock Option Exercises and Restricted Stock Grants, including Stock Option exercises satisfied from Treasury | — | 1,446,214 | 144,068 | 1,590,282 | ||||||||||||
Issuance of Stock, including from Treasury, pursuant to the Contingent Stock Agreement | — | 551,632 | 146,969 | 698,601 | ||||||||||||
Purchase of Common Shares to be held in Treasury Stock | — | — | (1,806,900 | ) | (1,806,900 | ) | ||||||||||
Common Shares and OP Units Outstanding at December 31, 2007 | 51,850,986 | 245,704,746 | (1,806,650 | ) | 295,749,082 | |||||||||||
Net Number of Common Shares Issuable Assuming Exercise of Dilutive Stock Options at December 31, 2007 | 258,806 | |||||||||||||||
Diluted Common Shares and OP Units Outstanding at December 31, 2007 | 296,007,888 | |||||||||||||||
Weighted Average Common Shares and OP Units Outstanding for the twelve months ended December 31, 2007 (Basic) | 296,124,656 | |||||||||||||||
Weighted Average Net Number of Common Shares Issuable Assuming Exercise of Dilutive Stock Options | 546,325 | |||||||||||||||
Fully Diluted Weighted Average Common Shares and OP Units Outstanding for the twelve months ended December 31, 2007 * | 296,670,981 | |||||||||||||||
* | Excludes shares of common stock issuable on any exchange of the 3.98% Senior Exchangeable Notes due 2027, as the conditions for such exchange were not satisfied as of the period ended December 31, 2007. |
26
GENERAL GROWTH PROPERTIES, INC.
COMMON DIVIDEND HISTORY
COMMON DIVIDEND HISTORY
(a) | 1993 annualized |
(b) | Based on FFO definitions that existed during the specified reporting period. |
27
GENERAL GROWTH PROPERTIES, INC.
DEBT MATURITY AND CURRENT AVERAGE INTEREST RATE SUMMARY
AS OF DECEMBER 31, 2007
(dollars in thousands)
DEBT MATURITY AND CURRENT AVERAGE INTEREST RATE SUMMARY
AS OF DECEMBER 31, 2007
(dollars in thousands)
Consolidated | Unconsolidated | Company | ||||||||||||||||||||||
Properties | Properties (a) | Portfolio | ||||||||||||||||||||||
Current | Current | Current | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Maturing | Interest | Maturing | Interest | Maturing | Interest | |||||||||||||||||||
Year | Amount (b) | Rate (c) | Amount (b) | Rate (c) | Amount (b) | Rate (c) | ||||||||||||||||||
2008 | $ | 2,417,859 | 5.43 | % | $ | 204,278 | 6.77 | % | $ | 2,622,137 | 5.53 | % | ||||||||||||
2009 | 3,098,368 | 5.36 | % | 245,796 | 6.88 | % | 3,344,164 | 5.47 | % | |||||||||||||||
2010 | 3,914,306 | 5.18 | % | 634,502 | 5.22 | % | 4,548,808 | 5.19 | % | |||||||||||||||
2011 | 7,138,277 | 6.28 | % | 1,075,804 | 6.01 | % | 8,214,081 | 6.24 | % | |||||||||||||||
2012 | 3,829,169 | 5.17 | % | 777,005 | 5.50 | % | 4,606,174 | 5.23 | % | |||||||||||||||
2013 | 2,621,489 | 6.03 | % | 48,466 | 5.27 | % | 2,669,955 | 6.02 | % | |||||||||||||||
2014 | 255,601 | 5.11 | % | 3,917 | 11.81 | % | 259,518 | 5.21 | % | |||||||||||||||
2015 | 195,787 | 5.21 | % | 590 | 11.36 | % | 196,377 | 5.23 | % | |||||||||||||||
2016 | 227,802 | 6.60 | % | — | 0.00 | % | 227,802 | 6.60 | % | |||||||||||||||
2017 | 104,708 | 6.54 | % | 47,313 | 6.16 | % | 152,021 | 6.42 | % | |||||||||||||||
Subsequent | 274,171 | 6.87 | % | 11,304 | 7.96 | % | 285,475 | 6.91 | % | |||||||||||||||
Totals | $ | 24,077,537 | (d) | 5.68 | % | $ | 3,048,975 | 5.84 | % | $ | 27,126,512 | 5.70 | % | |||||||||||
Fixed Rate (e) | 20,830,080 | 5.52 | % | 2,750,369 | 5.67 | % | 23,580,449 | 5.53 | % | |||||||||||||||
Variable Rate (e) | 3,247,457 | 6.76 | % | 298,606 | 7.42 | % | 3,546,063 | 6.81 | % | |||||||||||||||
Totals | $ | 24,077,537 | (d) | 5.68 | %(f) | $ | 3,048,975 | 5.84 | %(f) | $ | 27,126,512 | 5.70 | %(f) | |||||||||||
Average Years to Maturity
Fixed Rate Debt | 3.90 years | 3.93 years | 3.90 years | |||||||||
Variable Rate Debt | 5.05 years | 3.22 years | 4.90 years | |||||||||
All GGP Debt | 4.05 years | 3.86 years | 4.03 years |
(a) | Reflects the Company’s share of debt relating to the properties owned by the Unconsolidated Real Estate Affiliates. | |
(b) | Excludes principal amortization. | |
(c) | Reflects the current variable contract rate as of December 31, 2007 for all variable rate loans. | |
(d) | Reconciliation to GGP Consolidated GAAP debt. |
Consolidated | ||||
Consolidated debt, from above | $ | 24,077,537 | ||
Other liabilities — Special Improvement Districts | 71,782 | |||
Minority interest ownership adjustment | 65,405 | |||
Purchase accounting mark-to-market adjustments | 67,415 | |||
GGP Consolidated GAAP debt | $ | 24,282,139 | ||
(e) | Includes the effects of interest rate swaps. | |
(f) | Rates include the effects of deferred finance costs and the effect of a 360 day rate applied over a 365 day period. |
28
GENERAL GROWTH PROPERTIES, INC.
SUMMARY OF OUTSTANDING DEBT
(dollars in thousands)
SUMMARY OF OUTSTANDING DEBT
(dollars in thousands)
(a) | Rates include the effects of deferred finance costs, interest rate swaps and the effect of a 360 day rate applied over a 365 day period. |
29
GENERAL GROWTH PROPERTIES, INC.
FOURTH QUARTER 2007 FINANCING ACTIVITY
(dollars in thousands)
FOURTH QUARTER 2007 FINANCING ACTIVITY
(dollars in thousands)
Fixed Rate | Floating Rate | Total Debt | ||||||||||
September 30, 2007 (a) | $ | 23,544,587 | $ | 3,347,058 | $ | 26,891,645 | ||||||
New Funding: | ||||||||||||
Property Related | 55,000 | — | 55,000 | |||||||||
Non-Property Related | — | — | — | |||||||||
Refinancings: | ||||||||||||
Property Related | 243,196 | (212,345 | ) | 30,851 | ||||||||
Non-Property Related | — | — | ||||||||||
Interest rate SWAP activity | (200,000 | ) | 200,000 | — | ||||||||
Revolver Borrowings | — | 211,350 | 211,350 | |||||||||
Other Property Related | (62,334 | ) | — | (62,334 | ) | |||||||
Net Change | 35,862 | 199,005 | 234,867 | |||||||||
December 31, 2007 (a) | $ | 23,580,449 | $ | 3,546,063 | $ | 27,126,512 | ||||||
(a) | Includes Company’s share of debt of Unconsolidated Real Estate Affiliates. Excludes special improvement district liability, minority interest adjustment and purchase accounting mark-to-market adjustments. |
30
GENERAL GROWTH PROPERTIES, INC.
OUTSTANDING DEBT BY MATURITY DATE
CONSOLIDATED PROPERTIES
AS OF DECEMBER 31, 2007
(dollars in thousands)
OUTSTANDING DEBT BY MATURITY DATE
CONSOLIDATED PROPERTIES
AS OF DECEMBER 31, 2007
(dollars in thousands)
FIXED RATE
Total Debt | ||||||||||||
Loan | Maturity Date | Rate (a) | Balance | |||||||||
Secured Asset Loans | ||||||||||||
Fashion Show | 01/01/08 | 3.88 | % | 358,997 | ||||||||
Provo Mall | 02/01/08 | 4.52 | %* | 34,516 | ||||||||
Spokane Valley Mall | 02/01/08 | 4.57 | % | 28,542 | ||||||||
Phoenix Theatre | 04/01/08 | 8.39 | %* | 485 | ||||||||
Two Owings Mills | 05/01/08 | 7.03 | %* | 12,647 | ||||||||
Columbiana | 05/12/08 | 4.27 | % | 66,099 | ||||||||
Animas Valley | 07/11/08 | 3.70 | % | 24,746 | ||||||||
Grand Teton | 07/11/08 | 3.69 | % | 26,514 | ||||||||
Mayfair | 07/11/08 | 3.17 | % | 181,314 | ||||||||
Salem Center | 07/11/08 | 3.69 | % | 25,630 | ||||||||
Pioneer Place | 08/01/08 | 6.76 | %* | 166,560 | ||||||||
Foothills | 08/29/08 | 6.63 | %* | 42,323 | ||||||||
Northtown Mall | 09/01/08 | 6.77 | % | 74,082 | ||||||||
Chula Vista | 10/01/08 | 4.24 | % | 60,182 | ||||||||
Pierre Bossier | 10/01/08 | 6.54 | %* | 36,335 | ||||||||
Spring Hill | 10/01/08 | 6.61 | %* | 79,717 | ||||||||
Tucson Mall | 10/13/08 | 4.35 | % | 120,595 | ||||||||
Bayside | 11/03/08 | 6.00 | % | 54,333 | ||||||||
Southwest Plaza | 11/03/08 | 6.54 | %* | 74,541 | ||||||||
Birchwood | 11/11/08 | 6.72 | %* | 39,151 | ||||||||
Mall of the Bluffs | 11/11/08 | 6.72 | %* | 39,151 | ||||||||
Oakwood | 11/11/08 | 6.72 | %* | 52,201 | ||||||||
Oakwood Center | 02/09/09 | 6.60 | % | 95,000 | ||||||||
Chico Mall | 02/11/09 | 4.89 | % | 58,314 | ||||||||
Jordan Creek | 03/01/09 | 4.66 | % | 190,375 | ||||||||
Deerbrook | 03/02/09 | 3.59 | % | 76,791 | ||||||||
Southland | 03/02/09 | 3.70 | % | 83,662 | ||||||||
Prince Kuhio | 04/01/09 | 3.57 | % | 38,957 | ||||||||
JP Comm Sr. Austin Bluffs | 04/09/09 | 4.68 | % | 2,383 | ||||||||
JP Comm Sr. Division Crossing | 04/09/09 | 4.51 | % | 5,492 | ||||||||
JP Comm Sr. Fort Union | 04/09/09 | 4.60 | % | 2,867 | ||||||||
JP Comm Sr. Halsey Crossing | 04/09/09 | 4.61 | % | 2,688 | ||||||||
JP Comm Sr. Orem Plaza Center St | 04/09/09 | 4.60 | % | 2,562 | ||||||||
JP Comm Sr. Orem Plaza State St | 04/09/09 | 4.72 | % | 1,586 | ||||||||
JP Comm Sr. Riverpointe Plaza | 04/09/09 | 4.55 | % | 3,969 | ||||||||
JP Comm Sr. Riverside Plaza | 04/09/09 | 4.52 | % | 5,680 | ||||||||
JP Comm Sr. Woodlands Village | 04/09/09 | 4.50 | % | 7,257 | ||||||||
Town East | 04/13/09 | 3.56 | % | 108,538 | ||||||||
Grand Canal Shoppes | 05/01/09 | 4.86 | % | 403,707 | ||||||||
Coastland | 06/01/09 | 6.73 | %* | 99,060 | ||||||||
The Crossroads (MI) | 06/01/09 | 7.53 | % | 40,741 | ||||||||
Woodbridge Corporation | 06/01/09 | 4.35 | % | 213,521 | ||||||||
Steeplegate | 07/31/09 | 5.08 | % | 79,781 | ||||||||
Village of Cross Keys | 07/31/09 | 7.04 | %* | 11,117 | ||||||||
Apache | 08/03/09 | 7.05 | %* | 50,681 | ||||||||
Cumberland | 08/10/09 | 7.15 | % | 160,278 | ||||||||
The Parks at Arlington | 09/01/09 | 7.04 | %* | 140,002 | ||||||||
Baybrook | 10/01/09 | 6.66 | %* | 150,868 | ||||||||
Oakview | 10/01/09 | 7.19 | %* | 116,974 | ||||||||
Coral Ridge | 11/02/09 | 6.15 | %* | 100,658 | ||||||||
Governor’s Square | 12/01/09 | 7.66 | %* | 59,742 | ||||||||
Lakeside Mall | 12/01/09 | 4.37 | % | 185,116 | ||||||||
Mall St Matthews | 01/01/10 | 4.90 | % | 148,064 | ||||||||
North Star | 01/04/10 | 4.53 | % | 238,619 | ||||||||
Ward Centre & Ward Entertainment | 01/04/10 | 4.44 | % | 59,836 | ||||||||
Park Place | 01/11/10 | 5.24 | % | 180,593 | ||||||||
Visalia | 01/11/10 | 3.88 | % | 43,461 | ||||||||
Lansing I | 01/15/10 | 9.35 | %* | 25,536 | ||||||||
Pecanland | 03/01/10 | 4.39 | % | 60,156 | ||||||||
Southland | 03/05/10 | 5.16 | % | 111,310 | ||||||||
Providence Place | 03/11/10 | 5.22 | % | 365,127 | ||||||||
Ridgedale | 04/01/10 | 4.96 | % | 182,390 | ||||||||
West Valley | 04/01/10 | 3.52 | % | 59,078 | ||||||||
Pioneer Place | 04/27/10 | 10.01 | %* | 955 | ||||||||
Peachtree | 06/01/10 | 5.19 | % | 91,593 |
(a) | Rates include the effects of deferred finance costs, interest rate swaps and, except where noted (*), the effect of a 360 day rate applied over a 365 day period. |
31
GENERAL GROWTH PROPERTIES, INC.
OUTSTANDING DEBT BY MATURITY DATE
CONSOLIDATED PROPERTIES
AS OF DECEMBER 31, 2007
(dollars in thousands)
OUTSTANDING DEBT BY MATURITY DATE
CONSOLIDATED PROPERTIES
AS OF DECEMBER 31, 2007
(dollars in thousands)
FIXED RATE
Total Debt | ||||||||||||
Loan | Maturity Date | Rate (a) | Balance | |||||||||
Secured Asset Loans Cont. | ||||||||||||
Coronado | 06/07/10 | 5.18 | % | $ | 172,575 | |||||||
La Cantera | 06/07/10 | 5.31 | % | 130,907 | ||||||||
Maine | 06/11/10 | 4.92 | % | 221,354 | ||||||||
Burlington | 07/01/10 | 5.50 | % | 31,500 | ||||||||
Glenbrook | 07/01/10 | 5.01 | % | 181,297 | ||||||||
Regency Square | 07/01/10 | 3.68 | % | 96,855 | ||||||||
St. Louis Galleria | 07/05/10 | 4.94 | % | 242,913 | ||||||||
Lynnhaven | 07/06/10 | 5.18 | % | 242,284 | ||||||||
Boise Towne Plaza | 07/09/10 | 4.88 | % | 11,219 | ||||||||
JP Comm Jr. Gateway Crossing | 07/09/10 | 4.80 | % | 15,649 | ||||||||
JP Comm Jr. Univ. Crossing | 07/09/10 | 4.81 | % | 11,684 | ||||||||
Crossroads Center (MN) | 07/30/10 | 4.87 | % | 86,433 | ||||||||
70 Columbia Corporate Center | 10/01/10 | 10.15 | %* | 19,850 | ||||||||
Newgate | 10/01/10 | 4.96 | % | 42,064 | ||||||||
Park City | 10/01/10 | 5.29 | % | 152,935 | ||||||||
Staten Island | 10/01/10 | 6.11 | %* | 283,197 | ||||||||
Fashion Place | 10/05/10 | 5.41 | % | 147,510 | ||||||||
110 North Wacker | 10/11/10 | 5.14 | % | 46,496 | ||||||||
Chapel Hills | 10/11/10 | 5.15 | % | 118,203 | ||||||||
Gallery at Harborplace | 12/01/10 | 8.00 | % | 65,816 | ||||||||
Rogue Valley | 12/31/10 | 7.96 | % | 26,847 | ||||||||
Newpark | 02/01/11 | 7.58 | % | 69,601 | ||||||||
Westlake Center | 02/01/11 | 8.00 | % | 66,341 | ||||||||
Boise Towne Square | 02/10/11 | 6.74 | % | 72,408 | ||||||||
10000 West Charleston | 03/01/11 | 7.88 | %* | 22,243 | ||||||||
North Point | 03/01/11 | 5.58 | % | 219,924 | ||||||||
Capital | 04/01/11 | 7.52 | % | 20,710 | ||||||||
Eden Prairie | 04/01/11 | 4.79 | % | 81,908 | ||||||||
Gateway | 04/01/11 | 7.48 | % | 40,588 | ||||||||
Greenwood | 04/01/11 | 7.47 | % | 45,569 | ||||||||
Mall of Louisiana | 04/01/11 | 5.92 | % | 238,000 | ||||||||
Beachwood Place | 04/07/11 | 5.73 | % | 244,746 | ||||||||
Vista Ridge | 04/11/11 | 6.89 | %* | 82,348 | ||||||||
The Woodlands | 06/13/11 | 6.02 | % | 240,000 | ||||||||
Northridge Fashion | 07/01/11 | 7.25 | %* | 129,315 | ||||||||
RiverTown | 07/01/11 | 7.57 | %* | 120,508 | ||||||||
Willowbrook Mall | 07/01/11 | 6.92 | % | 161,880 | ||||||||
Collin Creek Mall | 07/11/11 | 6.87 | % | 68,482 | ||||||||
Ala Moana | 09/01/11 | 5.67 | % | 1,500,000 | ||||||||
Bayshore | 09/01/11 | 7.22 | %* | 31,720 | ||||||||
Eastridge (CA) | 09/01/11 | 5.89 | % | 170,000 | ||||||||
Stonestown | 09/01/11 | 5.89 | % | 273,000 | ||||||||
Tysons Galleria | 09/12/11 | 5.84 | % | 255,000 | ||||||||
Victoria Ward | 10/06/11 | 5.69 | % | 157,000 | ||||||||
Augusta Mall | 11/11/11 | 5.50 | %* | 175,000 | ||||||||
One Owings Mills | 12/01/11 | 8.50 | %* | 4,919 | ||||||||
Eastridge (WY) | 12/05/11 | 5.20 | % | 40,069 | ||||||||
Pine Ridge | 12/05/11 | 5.22 | % | 27,015 | ||||||||
Red Cliffs | 12/05/11 | 5.25 | % | 25,677 | ||||||||
Three Rivers | 12/05/11 | 5.23 | % | 21,995 | ||||||||
Hulen Mall | 12/07/11 | 5.14 | % | 115,661 | ||||||||
Three Owings Millls | 04/06/12 | 5.58 | % | 58,400 | ||||||||
Four Owings Mills | 04/06/12 | 5.61 | % | 25,600 | ||||||||
Streets at Southpoint | 04/06/12 | 5.45 | % | 245,707 | ||||||||
Oviedo | 05/07/12 | 5.24 | % | 52,976 | ||||||||
Sikes Senter | 06/01/12 | 5.32 | % | 62,723 | ||||||||
Buckland Hills | 07/02/12 | 5.01 | % | 168,770 | ||||||||
Oglethorpe | 07/02/12 | 4.99 | % | 144,628 | ||||||||
Valley Plaza | 07/11/12 | 3.98 | % | 98,233 | ||||||||
White Marsh | 09/01/12 | 5.67 | %* | 187,000 | ||||||||
Corporate Pointe | 09/11/12 | 6.83 | %* | 9,231 | ||||||||
Grand Traverse | 10/01/12 | 5.11 | % | 87,188 | ||||||||
The Mall in Columbia | 10/01/12 | 5.88 | %* | 400,000 | ||||||||
Harborplace | 10/05/12 | 5.94 | % | 50,000 | ||||||||
Fox River | 12/03/12 | 6.06 | % | 195,000 | ||||||||
Ivanhoe Capital | 12/03/12 | 5.82 | % | 93,713 |
��
(a) | Rates include the effects of deferred finance costs, interest rate swaps and, except where noted (*), the effect of a 360 day rate applied over a 365 day period. |
32
GENERAL GROWTH PROPERTIES, INC.
OUTSTANDING DEBT BY MATURITY DATE
CONSOLIDATED PROPERTIES
AS OF DECEMBER 31, 2007
(dollars in thousands)
OUTSTANDING DEBT BY MATURITY DATE
CONSOLIDATED PROPERTIES
AS OF DECEMBER 31, 2007
(dollars in thousands)
FIXED RATE
Loan | Maturity Date | Rate (a) | Total Debt Balance | |||||||||
Secured Asset Loans Cont. | ||||||||||||
Columbia Mall (MO) | 02/01/13 | 6.16 | % | $ | 90,000 | |||||||
Market Place | 02/01/13 | 6.16 | % | 106,000 | ||||||||
Gateway Overlook | 03/01/13 | 5.91 | % | 55,000 | ||||||||
Faneuil Hall | 04/01/13 | 5.66 | % | 95,928 | ||||||||
Lincolnshire Commons | 04/01/13 | 6.12 | % | 28,000 | ||||||||
Pembroke | 04/11/13 | 5.06 | %* | 133,549 | ||||||||
Fallbrook | 06/03/13 | 6.26 | % | 85,000 | ||||||||
Oxmoor | 06/03/13 | 6.95 | % | 57,979 | ||||||||
River Hills | 06/03/13 | 6.26 | % | 80,000 | ||||||||
Sooner Fashion | 06/03/13 | 6.27 | % | 60,000 | ||||||||
Senate Plaza | 07/01/13 | 5.79 | % | 12,233 | ||||||||
The Boulevard | 07/01/13 | 4.36 | % | 110,781 | ||||||||
1160/80 Town Center | 07/15/13 | 6.99 | %* | 9,453 | ||||||||
The Meadows | 08/01/13 | 5.57 | % | 105,193 | ||||||||
West Oaks | 08/01/13 | 5.36 | % | 71,501 | ||||||||
Moreno Valley | 09/11/13 | 6.07 | % | 88,000 | ||||||||
Lakeland | 10/01/13 | 5.24 | % | 56,285 | ||||||||
Bay City | 12/02/13 | 5.44 | % | 24,696 | ||||||||
Four Seasons | 12/11/13 | 5.68 | % | 103,795 | ||||||||
Valley Hills | 03/05/14 | 4.82 | % | 58,326 | ||||||||
Washington Park | 04/01/14 | 5.56 | % | 12,378 | ||||||||
Brass Mill | 04/11/14 | 4.63 | % | 128,343 | ||||||||
Bayside Bond | 07/01/14 | 6.00 | % | 7,555 | ||||||||
Mall St Vincent | 07/07/14 | 6.45 | % | 49,000 | ||||||||
Paramus Park | 10/01/15 | 4.97 | % | 106,461 | ||||||||
Eagle Ridge | 10/12/15 | 5.53 | % | 48,555 | ||||||||
Knollwood | 10/12/15 | 5.47 | % | 40,771 | ||||||||
Bellis Fair | 02/15/16 | 7.34 | %* | 63,945 | ||||||||
Lakeview Square | 03/01/16 | 5.93 | % | 42,094 | ||||||||
Country Hills | 06/01/16 | 6.21 | % | 13,759 | ||||||||
Providence Place | 07/01/16 | 7.76 | %* | 27,699 | ||||||||
Northgate | 09/01/16 | 5.98 | % | 45,812 | ||||||||
Piedmont | 09/06/16 | 6.10 | % | 34,492 | ||||||||
Southlake | 12/05/17 | 6.55 | % | 100,000 | ||||||||
Baltimore Center Garage | 06/01/18 | 6.05 | %* | 17,776 | ||||||||
10450 West Charleston | 12/31/18 | 6.84 | %* | 4,988 | ||||||||
Providence Place | 07/01/28 | 7.76 | %* | 19,855 | ||||||||
Houston Land Notes | 2017-2033 | 6.50 | %* | 25,372 | ||||||||
Provo Land Loan | 08/01/95 | 10.10 | %* | 2,250 | ||||||||
Corporate Debt | ||||||||||||
JP Realty Public Notes Series D | 03/11/08 | 7.29 | %* | 25,000 | ||||||||
Mall St Matthews | 05/01/08 | 9.03 | % | 141 | ||||||||
Houston Land | 05/05/08 | 4.82 | % | 6,887 | ||||||||
Princeton Land | 07/29/08 | 3.04 | % | 3,570 | ||||||||
Princeton Land East | 07/29/08 | 3.00 | %* | 3,430 | ||||||||
TRCLP Property Note | 11/30/08 | 6.94 | %* | 58,000 | ||||||||
TRCLP Public Indenture | 03/16/09 | 3.63 | %* | 400,000 | ||||||||
TRCLP Public Indenture | 04/30/09 | 8.00 | %* | 200,000 | ||||||||
Exchangeable Senior Notes | 04/15/12 | 4.26 | %* | 1,550,000 | ||||||||
TRCLP Public Indenture | 09/17/12 | 7.20 | %* | 400,000 | ||||||||
TRCLP Senior Notes | 05/01/13 | 6.91 | %* | 798,098 | ||||||||
TRCLP Public Indenture | 11/26/13 | 5.38 | %* | 450,000 | ||||||||
Swaps (b) | ||||||||||||
Credit Agreement SWAP | 02/08/08 | 4.82 | % | 100,000 | ||||||||
Total Consolidated Fixed Rate Debt | $ | 20,830,080 | ||||||||||
(a) | Rates include the effects of deferred finance costs, interest rate swaps and, except where noted (*), the effect of a 360 day rate applied over a 365 day period. | |
(b) | Variable rate debt converted to fixed rate debt through use of interest rate swaps. |
33
GENERAL GROWTH PROPERTIES, INC.
OUTSTANDING DEBT BY MATURITY DATE
CONSOLIDATED PROPERTIES
AS OF DECEMBER 31, 2007
(dollars in thousands)
OUTSTANDING DEBT BY MATURITY DATE
CONSOLIDATED PROPERTIES
AS OF DECEMBER 31, 2007
(dollars in thousands)
VARIABLE RATE
Loan | Maturity Date | Rate (a)(b) | Total Debt Balance | |||||||||
Secured Asset Loans | ||||||||||||
Senior Bridge Loan | 07/06/08 | 6.26 | % | $ | 722,170 | |||||||
Westlake Land | 11/02/21 | 11.41 | % | 2,437 | ||||||||
Unsecured Asset Loans | ||||||||||||
Credit Agreement Revolver | 02/24/11 | 6.60 | % | 429,150 | ||||||||
Credit Agreement Term Loans | 02/24/11 | 6.95 | % | 1,887,500 | ||||||||
Trust Preferred Shares | 04/30/36 | 6.80 | % | 206,200 | ||||||||
Total Consolidated Variable Rate Debt | $ | 3,247,457 | ||||||||||
Total Consolidated Debt & Swaps | 5.68 | % | $ | 24,077,537 | ||||||||
(a) | Rates include the effects of deferred finance costs, interest rate swaps and, except where noted (*), the effect of a 360 day rate applied over a 365 day period. | |
(b) | Reflects the variable contract rate as of December 31, 2007. |
34
GENERAL GROWTH PROPERTIES, INC.
OUTSTANDING DEBT BY MATURITY DATE AT SHARE
UNCONSOLIDATED PROPERTIES
AS OF DECEMBER 31, 2007
(dollars in thousands)
OUTSTANDING DEBT BY MATURITY DATE AT SHARE
UNCONSOLIDATED PROPERTIES
AS OF DECEMBER 31, 2007
(dollars in thousands)
FIXED RATE
Company | ||||||||||||||||
Loan | Maturity Date | Rate (a) | Total Debt | ProRata Share | ||||||||||||
Secured Asset Loans | ||||||||||||||||
Quail Springs | 06/02/08 | 6.98 | % | 39,465 | 19,733 | |||||||||||
Neshaminy | 07/01/08 | 6.76 | %* | 60,000 | 30,000 | |||||||||||
Woodlands Community | 07/25/08 | 4.81 | % | 1,929 | 1,013 | |||||||||||
Altamonte | 08/29/08 | 6.55 | %* | 107,986 | 53,993 | |||||||||||
Towson Town Center | 11/10/08 | 6.84 | % | 130,014 | 45,505 | |||||||||||
Woodlands Community | 02/23/09 | 3.80 | % | 867 | 455 | |||||||||||
Perimeter Shopping Center | 05/01/09 | 6.77 | %* | 118,934 | 59,467 | |||||||||||
Mizner Park | 07/01/09 | 5.09 | % | 58,746 | 29,373 | |||||||||||
Carolina Place | 01/11/10 | 4.70 | % | 161,141 | 81,376 | |||||||||||
Alderwood | 07/06/10 | 5.03 | % | 292,251 | 147,587 | |||||||||||
Christiana Mall | 08/02/10 | 4.61 | %* | 115,258 | 57,629 | |||||||||||
Water Tower Place | 09/01/10 | 5.04 | % | 175,747 | 90,764 | |||||||||||
Woodlands Community | 09/01/10 | 7.22 | % | 13,808 | 7,249 | |||||||||||
Whalers | 11/08/10 | 5.63 | % | 106,924 | 65,612 | |||||||||||
Kenwood Towne Centre | 12/01/10 | 5.58 | % | 241,486 | 169,916 | |||||||||||
Willowbrook | 04/01/11 | 7.00 | %* | 93,252 | 46,626 | |||||||||||
Silver City Galleria | 06/10/11 | 4.95 | % | 132,742 | 66,371 | |||||||||||
Austin Mall (Highland) | 07/08/11 | 6.92 | % | 65,763 | 32,882 | |||||||||||
Village of Merrick Park | 08/08/11 | 5.94 | % | 191,903 | 76,761 | |||||||||||
Northbrook Court | 09/01/11 | 7.17 | %* | 90,653 | 45,780 | |||||||||||
Montclair | 09/12/11 | 5.88 | % | 265,000 | 133,825 | |||||||||||
Arrowhead | 10/03/11 | 6.92 | %* | 78,469 | 26,154 | |||||||||||
First Colony | 10/03/11 | 5.67 | %* | 192,178 | 96,089 | |||||||||||
Riverchase | 10/03/11 | 5.78 | % | 305,000 | 152,500 | |||||||||||
Natick Mall | 10/07/11 | 5.74 | % | 350,000 | 175,000 | |||||||||||
Galleria at Tyler | 10/11/11 | 5.46 | %* | 250,000 | 125,000 | |||||||||||
Pinnacle Hills | 12/08/11 | 5.84 | % | 140,000 | 70,000 | |||||||||||
Park Meadows | 07/05/12 | 6.00 | %* | 360,000 | 126,000 | |||||||||||
Florence | 09/10/12 | 5.04 | % | 98,636 | 69,626 | |||||||||||
Glendale Galleria | 10/01/12 | 5.01 | %* | 387,297 | 193,648 | |||||||||||
Oakbrook | 10/01/12 | 5.12 | %* | 220,397 | 104,599 | |||||||||||
Clackamas | 10/05/12 | 6.36 | % | 200,000 | 100,000 | |||||||||||
The Oaks | 12/03/12 | 5.85 | % | 102,000 | 52,020 | |||||||||||
Westroads | 12/03/12 | 5.85 | % | 89,250 | 45,518 | |||||||||||
Stonebriar | 12/11/12 | 5.32 | % | 171,188 | 85,594 | |||||||||||
Bridgewater Commons | 01/02/13 | 5.27 | %* | 138,474 | 48,466 | |||||||||||
CenterPointe Village | 01/02/17 | 6.38 | %* | 13,867 | 6,934 | |||||||||||
Trails Village Center | 07/10/23 | 8.24 | %* | 16,552 | 8,276 | |||||||||||
Lake Meade Blvd & Buffalo Part | 07/15/23 | 7.20 | %* | 6,056 | 3,028 | |||||||||||
Total Unconsolidated Fixed Rate Debt | $ | 2,750,369 | ||||||||||||||
(a) | Rates include the effects of deferred finance costs, interest rate swaps and, except where noted (*), the effect of a 360 day rate applied over a 365 day period. |
35
GENERAL GROWTH PROPERTIES, INC.
SUMMARY OF OUTSTANDING DEBT BY MATURITY DATE AT SHARE
UNCONSOLIDATED PROPERTIES
AS OF DECEMBER 31, 2007
(dollars in thousands)
SUMMARY OF OUTSTANDING DEBT BY MATURITY DATE AT SHARE
UNCONSOLIDATED PROPERTIES
AS OF DECEMBER 31, 2007
(dollars in thousands)
VARIABLE RATE
Company | ||||||||||||||||
Loan | Maturity Date | Rate (a)(b) | Total Debt | ProRata Share | ||||||||||||
Secured Asset Loans | ||||||||||||||||
Woodlands Community | 01/04/08 | 7.60 | % | $ | 101 | $ | 53 | |||||||||
Woodlands Community | 02/28/08 | 8.09 | % | 59,360 | 31,164 | |||||||||||
Woodlands Community | 07/01/08 | 7.25 | %* | 595 | 312 | |||||||||||
Superstition Springs | 09/09/08 | 5.30 | % | 67,500 | 22,505 | |||||||||||
Woodlands Community | 07/01/09 | 6.58 | %* | 4,768 | 2,503 | |||||||||||
Woodlands Credit Agreement | 08/29/09 | 7.28 | %* | 291,539 | 153,058 | |||||||||||
Woodlands Community | 12/01/09 | 7.50 | %* | 1,790 | 940 | |||||||||||
Woodlands Community | 01/01/10 | 7.73 | % | 6,756 | 3,547 | |||||||||||
Woodlands Community | 05/01/10 | 6.38 | %* | 20,612 | 10,821 | |||||||||||
Brazil — Aliansce | 2011-2015 | 10.79 | % | 68,006 | 33,323 | |||||||||||
Turkey — AAREAL | 06/01/17 | 6.12 | % | 82,408 | 40,380 | |||||||||||
Total Unconsolidated Variable Rate Debt | $ | 298,606 | ||||||||||||||
Total Unconsolidated Debt | 5.84 | % | $ | 3,048,975 | ||||||||||||
Total Debt & Swaps | 5.70 | % | $ | 27,126,512 | ||||||||||||
(a) | Rates include the effects of deferred finance costs, interest rate swaps and, except where noted (*), the effect of a 360 day rate applied over a 365 day period. | |
(b) | Reflects the variable contract rate as of December 31, 2007. |
36
Supplemental Operational Data
GENERAL GROWTH PROPERTIES, INC.
OPERATING STATISTICS, CERTAIN FINANCIAL INFORMATION & TOP TENANTS (a)
AS OF DECEMBER 31, 2007
OPERATING STATISTICS, CERTAIN FINANCIAL INFORMATION & TOP TENANTS (a)
AS OF DECEMBER 31, 2007
Consolidated | Unconsolidated | Company | ||||||||||
Retail | Retail | Retail | ||||||||||
Properties | Properties | Portfolio (c) | ||||||||||
OPERATING STATISTICS (b) | ||||||||||||
Occupancy | 93.4 | % | 94.9 | % | 93.8 | % | ||||||
Trailing 12 month total tenant sales per sq. ft. (d) | $ | 444 | $ | 521 | $ | 462 | ||||||
% change in total sales (d) | 3.0 | % | 7.9 | % | 4.3 | % | ||||||
% change in comparable sales (d) | 1.1 | % | 2.4 | % | 1.4 | % | ||||||
Mall and freestanding GLA (in sq. ft.) | 48,786,727 | 13,969,602 | 62,756,329 | |||||||||
CERTAIN FINANCIAL INFORMATION | ||||||||||||
Average annualized in place sum of rent and recoverable common area costs per sq. ft. (e) (f) | $ | 44.90 | $ | 53.35 | ||||||||
Average sum of rent and recoverable common area costs per sq. ft. for new/renewal leases (e) (f) | $ | 39.64 | $ | 50.17 | ||||||||
Average sum of rent and recoverable common area cost per sq. ft. for leases expiring in 2007 (e) (f) | $ | 31.38 | $ | 37.95 | ||||||||
Three month percentage change in comparable real estate property net operating income (versus prior year comparable period) (g) | 5.9 | % | 5.3 | % |
Percent of Minimum | ||||
Rents, Tenant | ||||
Recoveries and | ||||
TOP TEN LARGEST TENANTS (COMPANY RETAIL PORTFOLIO) | Other | |||
Tenant (including subsidiaries) | ||||
Limited Brands, Inc. | 4.0 | % | ||
Gap, Inc. | 2.9 | |||
Foot Locker, Inc. | 2.2 | |||
Abercrombie & Fitch Co. | 2.0 | |||
Federated Department Stores, Inc. | 1.4 | |||
American Eagle Outfitters, Inc. | 1.2 | |||
Zale Corporation | 1.1 | |||
The Children’s Place Retail Stores, Inc. | 1.1 | |||
JCPenney Company, Inc. | 1.0 | |||
Luxottica Group S.P.A. | 1.0 |
(a) | Excludes all International operations which combined represent less than 1% of segment basis real estate property net operating income. | |
(b) | Data is for 100% of the mall and freestanding GLA in each portfolio, including those properties that are owned in part by Unconsolidated Real Estate Affiliates. Data excludes properties at which significant physical or merchandising changes have been made and miscellaneous (non-retail) properties. | |
(c) | Data presented in the column “Company Retail Portfolio” are weighted average amounts. | |
(d) | Due to tenant sales reporting timelines, data presented is one month behind reporting date. | |
(e) | Represents the sum of rent and recoverable common area costs. | |
(f) | Data includes a significant proportion of short term leases on inline spaces that are leased for one year. Rents and recoverable common area costs related to these short term leases are typically much lower than those related to long term leases. Any inferences the reader may draw regarding future rent spreads should be made in light of this difference between short- and long-term leases. | |
(g) | Comparable properties are those properties that have been owned and operated for the entire time during the comparable accounting periods, and excludes properties at which significant physical or merchandising changes have been made and miscellaneous (non-retail) properties. |
37
GENERAL GROWTH PROPERTIES, INC.
RETAIL PORTFOLIO GLA, OCCUPANCY, SALES & RENT DATA (a)
RETAIL PORTFOLIO GLA, OCCUPANCY, SALES & RENT DATA (a)
GLA as of December 31, 2007
Total Mall/ | Avg. Mall/ | |||||||||||||||||||
Total Anchor GLA | Avg. Anchor GLA | Freestanding GLA | Freestanding GLA | Total GLA | ||||||||||||||||
Consolidated | 78,405,917 | 509,129 | 51,610,253 | 335,132 | 130,016,770 | |||||||||||||||
Unconsolidated | 22,767,704 | 669,638 | 14,479,598 | 425,871 | 37,247,302 | |||||||||||||||
Company | 101,173,621 | 538,158 | 66,089,851 | 351,542 | 167,264,072 | |||||||||||||||
% of Total | 60.5 | % | 39.5 | % | 100 | % |
Occupancy History
Consolidated | Unconsolidated | Company | ||||||||||
12/31/2007 | 93.4 | % | 94.9 | % | 93.8 | % | ||||||
12/31/2006 | 93.4 | % | 94.2 | % | 93.6 | % | ||||||
12/31/2005 | 92.1 | % | 93.5 | % | 92.5 | % | ||||||
12/31/2004 | 92.1 | % | 91.9 | % | 92.1 | % | ||||||
12/31/2003 (d) | 91.2 | % | 91.4 | % | 91.3 | % |
Trailing 12 Month Total Sales per Square Foot
Consolidated | Unconsolidated | Company | ||||||||||
12/31/2007 | $ | 444 | $ | 521 | $ | 462 | ||||||
12/31/2006 | 443 | 473 | 453 | |||||||||
12/31/2005 | 428 | 455 | 437 | |||||||||
12/31/2004 | 402 | 427 | 410 | |||||||||
12/31/2003 (d) | 337 | 376 | 351 |
Average in Place Sum of Rent and Recoverable Common Area Costs (at 100%) (c) (e)
Consolidated | Unconsolidated | |||||||
12/31/2007 | $ | 44.90 | $ | 53.35 |
Sum of Rent and Recoverable Common Area Cost Rates (at 100%) (c) (e)
Year to Date | Full Year | Rent | ||||||||||
New/Renewals | Expirations | Spread | ||||||||||
Consolidated | ||||||||||||
12/31/2007 | $ | 39.64 | $ | 31.38 | $ | 8.26 | ||||||
Unconsolidated | ||||||||||||
12/31/2007 | $ | 50.17 | $ | 37.95 | $ | 12.22 |
Occupancy Cost as a % of Sales (b)
Consolidated | Unconsolidated | Company | ||||||||||
12/31/2007 | 12.5 | % | 12.5 | % | 12.5 | % | ||||||
12/31/2006 | 12.6 | % | 12.4 | % | 12.5 | % | ||||||
12/31/2005 | 12.1 | % | 11.7 | % | 12.0 | % | ||||||
12/31/2004 | 12.5 | % | 13.0 | % | 12.7 | % | ||||||
12/31/2003 (d) | 11.4 | % | 12.4 | % | 11.8 | % |
(a) | Excludes all International operations which combined represent less than 1% of segment basis real estate property net operating income. Also excludes community centers. | |
(b) | Due to tenant sales reporting timelines, data presented is one month behind reporting date. | |
(c) | Due to combining rent and recoverable common area costs, historical information is not comparable. | |
(d) | Data excludes the TRCLP portfolio, acquired November 12, 2004. | |
(e) | Data includes a significant proportion of short term leases on inline spaces that are leased for one year. Rents and recoverable common area costs related to these short term leases are typically much lower than those related to long term leases. Any inferences the reader may draw regarding future rent spreads should be made in light of this difference between short- and long-term leases. |
38
GENERAL GROWTH PROPERTIES, INC.
RETAIL AND OTHER NET OPERATING INCOME BY GEOGRAPHIC AREA AT SHARE
(dollars in thousands)
RETAIL AND OTHER NET OPERATING INCOME BY GEOGRAPHIC AREA AT SHARE
(dollars in thousands)
Twelve Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2007 | % of Total | 2006 | % of Total | |||||||||||||
West | ||||||||||||||||
Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming | $ | 863,040 | 34.9 | % | $ | 813,119 | 35.5 | % | ||||||||
North Central | ||||||||||||||||
Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Wisconsin | 277,119 | 11.2 | % | 268,802 | 11.7 | % | ||||||||||
South Central | ||||||||||||||||
Arkansas, Louisiana, Oklahoma, Texas | 355,622 | 14.4 | % | 283,301 | 12.4 | % | ||||||||||
Northeast | ||||||||||||||||
Connecticut, Delaware, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia | 649,572 | 26.3 | % | 615,030 | 26.8 | % | ||||||||||
Southeast | ||||||||||||||||
Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee | 303,521 | 12.3 | % | 290,097 | 12.7 | % | ||||||||||
Corporate and Other (a) | 24,724 | 0.9 | % | 20,616 | 0.9 | % | ||||||||||
TOTAL | $ | 2,473,598 | 100.0 | % | $ | 2,290,965 | 100.0 | % | ||||||||
(a) | Represents International and items that are included in the Total Retail and Other NOI line item that are not specifically related to property operations. |
39
GENERAL GROWTH PROPERTIES, INC.
LEASE EXPIRATION SCHEDULE AND LEASE TERMINATION INCOME AT SHARE
AS OF DECEMBER 31, 2007
(in thousands)
LEASE EXPIRATION SCHEDULE AND LEASE TERMINATION INCOME AT SHARE
AS OF DECEMBER 31, 2007
(in thousands)
Lease Expiration Schedule (a) (b)
Consolidated | Unconsolidated at Share (c) | |||||||||||||||||||||||
Sum of Rent | ||||||||||||||||||||||||
Sum of Rent and | Sum of Rent and | and | Sum of Rent | |||||||||||||||||||||
Recoverable | Recoverable | Recoverable | and Recoverable | |||||||||||||||||||||
Common Area | Square | Common Area | Common Area | Square | Common Area | |||||||||||||||||||
Costs | Footage | Costs/Sq. Ft. | Costs | Footage | Costs/Sq. Ft. | |||||||||||||||||||
2008 (d) | 208,688 | 6,197 | 33.68 | 32,371 | 690 | 46.91 | ||||||||||||||||||
2009 | 187,383 | 3,983 | 47.05 | 22,000 | 386 | 56.99 | ||||||||||||||||||
2010 | 215,340 | 4,618 | 46.63 | 25,034 | 437 | 57.29 | ||||||||||||||||||
2011 | 171,705 | 3,445 | 49.84 | 31,037 | 513 | 60.50 | ||||||||||||||||||
2012 | 212,272 | 3,904 | 54.37 | 28,679 | 471 | 60.89 | ||||||||||||||||||
2013 | 159,057 | 2,728 | 58.31 | 26,637 | 409 | 65.13 | ||||||||||||||||||
2014 | 166,868 | 2,929 | 56.97 | 25,410 | 366 | 69.43 | ||||||||||||||||||
2015 | 187,239 | 3,133 | 59.76 | 39,962 | 592 | 67.50 | ||||||||||||||||||
2016 | 200,625 | 3,146 | 63.77 | 48,661 | 700 | 69.52 | ||||||||||||||||||
Subsequent | 332,227 | 5,685 | 58.44 | 96,035 | 1,366 | 70.30 | ||||||||||||||||||
Total at Share | $ | 2,041,404 | 39,768 | $ | 51.33 | $ | 375,826 | 5,930 | $ | 63.38 | ||||||||||||||
All Expirations | $ | 2,041,404 | 39,768 | $ | 51.33 | $ | 773,379 | 12,119 | $ | 63.82 | ||||||||||||||
Retail Lease Termination Income at Share
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Consolidated | $ | 12,359 | $ | 2,450 | $ | 25,994 | $ | 23,045 | ||||||||
Unconsolidated | 4,848 | 1,312 | 9,370 | 8,145 | ||||||||||||
Total Termination Income at Share | $ | 17,207 | $ | 3,762 | $ | 35,364 | $ | 31,190 | ||||||||
(a) | Excludes leases on anchors of 30,000 square feet or more and tenants paying percentage rent in lieu of base minimum rent. | |
(b) | Includes retail properties except for community centers and International operations. | |
(c) | Expirations at share reflect the Company’s direct or indirect ownership interest in a joint venture. | |
(d) | Data includes a significant proportion of short term leases on inline spaces that are leased for one year. Rents and recoverable common area costs related to these short term leases are typically much lower than those related to long term leases. Any inferences the reader may draw regarding future rent spreads should be made in light of this difference between short- and long-term leases. |
40
Expansions, Re-developments & New Developments
GENERAL GROWTH PROPERTIES, INC.
ESTIMATED DEVELOPMENT COST SUMMARY
AS OF DECEMBER 31, 2007
($millions at share)
ESTIMATED DEVELOPMENT COST SUMMARY
AS OF DECEMBER 31, 2007
($millions at share)
Development Summary | ||||
Expansion & re-development projects | $ | 1,163.8 | ||
New development projects | 1,719.2 | |||
Total expansion, re-development & new development projects | 2,883.0 | |||
Less Expenditures On Active Projects | ||||
Expansion & re-development projects | $ | 351.9 | ||
New development projects | 435.1 | |||
Total expenditures on active projects | 787.0 | |||
Estimated future development spending (a) | $ | 2,096.0 | ||
(a) | Future development spending is currently expected to occur between Q1 2008 and Q4 2011. |
41
GENERAL GROWTH PROPERTIES, INC.
EXPANSIONS & RE-DEVELOPMENTS
EXPANSIONS & RE-DEVELOPMENTS
Definitive Projects
Forecasted Cost | ||||||||||||||
($millions at | Projected | |||||||||||||
Property | Description | Ownership % | share) | Opening | ||||||||||
Ala Moana Honolulu, HI | Nordstrom at Kapiolani and parking deck | 100 | % | $ | 175.1 | Q1 2008 | ||||||||
Mall of Louisiana Baton Rouge, LA | Lifestyle addition and power center | 100 | % | 96.3 | Q1 2008 | |||||||||
Montclair Plaza Montclair, CA | Nordstrom and mall renovation | 50 | % | 27.4 | Q4 2008 | |||||||||
Mondawmin Mall Baltimore, MD | Addition of big box retail, restaurants and mall shop re-development | 100 | % | 60.3 | Q3 2008 | |||||||||
The Parks at Arlington Arlington, TX | Re-development of the former Mervyn’s space | 100 | % | 28.1 | Q2 2008 | |||||||||
Towson Town Center Towson, MD | Mall Shop renovation and expansion including Crate & Barrel and additional restaurants | 35 | % | 38.4 | Q4 2008 | |||||||||
Tucson Tucson, AZ | Lifestyle expansion | 100 | % | 63.2 | Q4 2008 | |||||||||
Ward Centers Honolulu, HI | Addition of Whole Foods and other retail space as well as a parking structure | 100 | % | 131.8 | Q4 2008 | |||||||||
Water Tower Place Chicago, IL | American Girl and mall shop re-development | 52 | % | 35.3 | Q4 2008 | |||||||||
Current estimated additional costs to be incurred on recently opened projects | 155.4 | |||||||||||||
Current costs for 60 other projects including those listed below | 352.5 | |||||||||||||
Total expansion & re-development projects | $ | 1,163.8 | ||||||||||||
Planned Projects
Property | Description | Ownership % | ||||
Ala Moana | Residential condominiums at Kapiolani | 100 | % | |||
Honolulu, HI | ||||||
Chico Mall | Big box expansion | 100 | % | |||
Chico, CA | ||||||
Christiana Mall | Nordstrom and lifestyle center expansion | 50 | % | |||
Newark, DE | ||||||
Cottonwood Holladay, UT | Replace enclosed mall with a mixed-use development including restaurant, retail, office and residential units | 100 | % | |||
Fashion Place | Nordstrom, mall shop and streetscape GLA expansion, and interior mall | |||||
Murray, UT | renovation | 100 | % | |||
Saint Louis Galleria | Nordstrom | 100 | % | |||
Saint Louis, MO | ||||||
Ward Centers Honolulu, HI | 60 acre Ward neighborhood including residences, shops, and entertainment | 100 | % |
Other Possible Projects
Property | Description | Ownership % | ||||
Maine Mall | Theater, anchor, restaurant pads and mall shop expansion | 100 | % | |||
South Portland, ME | ||||||
North Star Mall San Antonio, TX | Replace Mervyn’s building with specialty retailers, restaurants, and hotel | 100 | % | |||
Paramus Park | Lifestyle expansion | 100 | % | |||
Paramus, NJ | ||||||
Redlands | Phase I — strip center retail | 100 | % | |||
Redlands, CA | ||||||
Staten Island Mall | Mall expansion | 100 | % | |||
Staten Island, NY |
42
GENERAL GROWTH PROPERTIES, INC.
NEW DEVELOPMENTS
NEW DEVELOPMENTS
Definitive Projects
Forecasted Cost | Projected | |||||||||
Property | Description | ($millions at share) | Opening | |||||||
Boulevard Belo Horizonte, Brazil | 317 thousand sf regional shopping center with anchors, mall shop, multiplex cinema and restaurants | 17.1 | Q4 2008 | |||||||
Caxias Rio de Janeiro, Brazil | 275 thousand sf regional shopping center with anchors, mall shop, multiplex cinema and restaurants | 24.4 | Q4 2008 | |||||||
Echelon Las Vegas, NV | 300 thousand sf retail promenade as part of an 87-acre resort master plan development on the Las Vegas Strip | 255.0 | Q3 2010 | |||||||
Elk Grove Promenade Elk Grove, CA | 1.1 million sf open air lifestyle center with retail, entertainment and big box components | 239.2 | Q2 2009 | |||||||
Natick Natick, MA | Addition of 59 thousand sf streetscape and parking deck | 54.7 | Q1 2009 | |||||||
Nouvelle at Natick — luxury condominiums | 171.6 | Q4 2008 | ||||||||
Pinnacle Hills South Rogers, AR | Target, restaurants, and additional retail | 10.1 | Q2 2009 | |||||||
RiverCrossing Macon, GA | 750 thousand sf center which includes anchors, mall shop, restaurants and power center | 53.0 | Q1 2008 | |||||||
The Shops at La Cantera San Antonio, TX | Phase II of The Shops at La Cantera including a Barnes and Noble, restaurants, mall shop and office space | 90.5 | Q4 2008 | |||||||
The Shoppes at Palazzo (a) Las Vegas, NV | Expansion of Venetian (initial estimated payment) | 349.0 | Q1 2008 | |||||||
Vista Commons Las Vegas, NV | 99 thousand sf neighborhood shopping center in Summerlin | 19.3 | Q1 2008 | |||||||
Estimated additional costs to be incurred in the future on recently opened new development projects | 138.5 | |||||||||
Various other new development projects and certain committed amounts related to the projects listed below (b) | 296.8 | |||||||||
Total new development projects | $ | 1,719.2 | ||||||||
(a) | GGP is not responsible for the construction costs. The purchase price is based on a formula described in our SEC filings on Forms 10-K and 10-Q. The current estimate of the initial installment of the purchase price is $349 million. | |
(b) | Additional payments on The Shoppes at Palazzo will be made during the 48 months after closing if actual NOI increases but are not included in the $296.8 million of total estimated future costs listed above. The principal variable affecting increased NOI is expected to be actual overage rent as reported by the tenants. |
Planned Projects
Potential | ||||||||||
Property | Description | Ownership % | Opening | |||||||
Bridges at Mint Hill Charlotte, NC | Shopping Center anchored by Belks and two other department stores | 100 | % | Q2 2010 | ||||||
Circle T Power Center Westlake, TX | Develop a lifestyle center on a 150 acre site west of Circle T | 50 | % | Q2 2010 | ||||||
Detroit Gateway Detroit, Michigan | Urban retail development including anchors, mall shop and restaurants | 100 | % | Q4 2009 | ||||||
Kendall Town Center West Kendall, FL | New development with retail, big box, restaurant and theater | 100 | % | Q4 2010 | ||||||
Summerlin Centre Las Vegas, NV | Phase I includes a new retail development of 106 acres in the Summerlin community; project could be expanded in subsequent years | 100 | % | Q4 2009 | ||||||
Tatilya Beylikduzu (Istanbul), Turkey | 785 thousand sf vertical two-story shopping center with anchors, mall shop, multiplex cinema and restaurants | 50 | % | Q2 2010 |
Other Possible Projects
Allentowne Allen, TX | Mixed use development on a 238 acre site | 100 | % | Q2 2010 | ||||||
Circle T Westlake, TX | 1.2 million sf shopping center | 50 | % | Q4 2011 |
43