Exhibit 99.1
General Growth Properties, Inc.
Supplemental Financial Information
For the Three and Six Months Ended June 30, 2008
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 tenant occupancy and tenant bankruptcies, the level of our indebtedness and interest rates, retail and credit market conditions, land sales in our Master Planned Communities segment, the cost and success of development and re-development projects, and our 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 (as amended by Amendment No.1 to such report filed in Form 10-K/A), which further identify the important risk factors which could cause actual results to differ materially from the forward-looking statements in this supplemental financial information. The Company disclaims any obligation to update any forward-looking statements.
Supplemental Financial/Operational Data
June 30, 2008
Table of Contents
June 30, 2008
Table of Contents
All information included in this supplemental package is unaudited and is as of June 30, 2008, 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 | |
Second Quarter 2008 Earnings Announcement | 4-15 | |
Supplemental Financial Data* | 16-34 | |
| Summary Retained FFO & Core FFO | 16 | |
| Tenant Allowances,Straight Line Rent, & SFAS #141 & #142 | 17 | |
| Trailing Twelve Month EBITDA and Coverage Ratios | 18 | |
| Comparable NOI Growth | 19 | |
| Master Planned Communities | 20-22 | |
| Capital Information | 23 | |
| Changes in Total Common & Equivalent Shares | 24 | |
| Common Dividend History | 25 | |
| Debt Maturity and Current Average Interest Rate Summary | 26 | |
| Summary of Outstanding Debt | 27-34 | |
Supplemental Operational Data | 35-38 | |
| Operating Statistics, Certain Financial Information & Top Tenants | 35 | |
| Retail Portfolio GLA, Occupancy, Sales & Rent Data | 36 | |
| Retail and Other Net Operating Income by Geographic Area at Share | 37 | |
| Lease Expiration Schedule and Lease Termination Income at Share | 38 | |
Expansions, Re-developments & New Developments | 39-41 |
| * | The supplemental financial data should be read in conjunction with the Company’s second quarter earnings information (included as pages 4-15 of this supplemental report) as certain disclosures and reconciliations in such announcement have not been included in the supplemental financial data. |
Corporate Overview
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 $38.8 billion in total market capitalization. The Company currently has ownership interest in, or management responsibility for, a portfolio of more than 200 regional shopping malls in 44 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.
Since going public in 1993, GGP has achieved 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 June 30, 2008 was 93.2% and tenant sales per square foot were $459. 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 stockholders.
Stock ListingCommon Stock
NYSE: GGP
NYSE: GGP
| Calendar of Events | ||
| Quarter End — Third Quarter 2008 | Sept. 30, 2008 | |
| Earnings Release — After the Market Close | Oct. 30, 2008 | |
| Quarterly Conference Call — 8:00 am CST | Oct. 31, 2008 | |
Current Dividend
GGP declared its third dividend for 2008 in the amount of $0.50 per share, payable to common stockholders of record on July 17, 2008, with payment on July 31, 2008. 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 | BNY Mellon | |
| Director, Investor Relations | Shareowner Services | |
| General Growth Properties | 480 Washington Blvd | |
| 110 North Wacker Drive | Jersey City, NJ 07310 | |
| Chicago, IL 60606 | (888) 395-8037 | |
| Phone (312) 960-5199 | Foreign Stockholders: | |
| Fax (312) 960-5475 | +1 201 680-6578 | |
| tgoebel@ggp.com | ||
| Debt Ratings | ||
| Standard & Poors — Corporate Rating | BB+ | |
| Standard & Poors — Senior Debt Rating | BB - | |
| Standard & Poors — TRCLP Bonds Rating | BB - | |
| Moody’s — Senior Debt Rating | Ba2 | |
| Moody’s — TRCLP Bonds Rating | Ba2 | |
| Please visit the GGP web site for additional information: | www.ggp.com | |
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Ownership Structure as of June 30, 2008
* Share count includes common shares
and common Operating Partnership units
and common Operating Partnership units
| Total Market Capitalization - As Measured by Stock Price (dollars in thousands) | June 30, 2008 | |||||||
| Total Portfolio Debt (Company consolidated debt plus applicable share from unconsolidated affiliates) (a) | $ | 27,474,501 | ||||||
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 267.7 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) | $ | 11,192,332 | ||||||
Total Market Capitalization at end of period | $ | 38,788,315 | ||||||
| (a) | Excludes liabilities to special improvement districts of $71.0 million, minority interest adjustment of $71.5 million and purchase accounting mark-to-market adjustments of $58.9 million. | |
| (b) | Net of 1.4 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.
| Banc of America Securities | Christy McElroy | (212) 847-5658 | ||
| Citigroup | Michael Bilerman | (212) 816-1383 | ||
| Ambika Goel | (212) 816-6981 | |||
| Credit Suisse First Boston | 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 | Ross Smotrich | (212) 526-2306 | ||
| George Hoglund | (212) 526-4513 | |||
| Merrill Lynch | Steve Sakwa | (212) 449-0335 | ||
| Craig Schmidt | (212) 449-1944 | |||
| RBC Capital Markets | Richard C. Moore | (216) 378-7625 | ||
| Stifel Nicolaus | David Fick | (410) 454-5018 | ||
| Nate Isbee | (410) 454-4143 | |||
| UBS | Jeff Spector | (212) 713-6144 | ||
| Lindsay Schroll | (212) 713-3402 | |||
| Wachovia Capital Markets, LLC | Jeff Donnelly | (617) 603-4262 | ||
| Rob Laquaglia | (617) 603-4263 |
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Second Quarter Earnings Announcement
July 30, 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: | Tim Goebel | ||
| (312) 960-5199 |
General Growth Properties, Inc. Releases Second Quarter 2008
FFO and Earnings Results
Chicago, Illinois, July 30, 2008— General Growth Properties, Inc. (NYSE: GGP) (the Company) reported today its operating results for the second quarter 2008. Core Funds From Operations (Core FFO) per fully diluted share were $0.72 for the second quarter of 2008. Core FFO per fully diluted share for the comparable period in 2007 was $0.73. Funds From Operations (FFO) per fully diluted share were $0.71 for the second quarter of 2008, equal to the reported FFO per fully diluted share in the comparable period of 2007. Earnings per share — diluted (EPS) were $0.13 and $0.03, respectively, for the second quarters of 2008 and 2007.
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 (provision for) benefit from income taxes. Core FFO for the second quarter of 2008 was $228.4 million or $0.72 per fully diluted share as compared to $216.6 million or $0.73 per fully diluted share for the second quarter of 2007. Although aggregate Core FFO increased in the second quarter of 2008 by $11.8 million, Core FFO per fully diluted share declined as a result of the issuance of common stock in 2008. | ||
§ | FFOwas $228.0 million in the second quarter of 2008, an increase of approximately 8.4% or $17.7 million, from $210.3 million in the second quarter of 2007, primarily as a result of higher real estate property net operating income in 2008 in our retail and other operating segment. |
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§ | EPSin the second quarter of 2008 were $0.13, a $0.10 increase from the comparable 2007 quarter. The higher EPS in 2008 is primarily due to the $30.8 million, net of minority interest (or approximately $0.12 per share), in gains recognized on the previously reported sales of certain office buildings in the second quarter of 2008. | ||
§ | Development Projects | ||
| The Company, in collaboration with certain retailers, has decided to defer the opening of certain near and intermediate term new development and redevelopment projects. As a result, approximately $500 million of development expenditures will be deferred during the next 18 months. The principal factors for the Company’s decision are the current retail and credit market conditions. The Company believes that such deferral will enhance the likelihood that these new development and redevelopment projects will open when general economic conditions are more favorable and when attractive financing is more generally available. | |||
§ | Core FFO per share guidance | ||
| We currently project 2008 Core FFO to be approximately $3.42 per share, ($0.77 and $1.17 for the third and fourth quarters of 2008, respectively, in addition to the $1.48 in Core FFO per share already produced), or approximately 15% above the Core FFO per share amount of $2.97 for 2007. The decrease in current 2008 Core FFO guidance from previous amounts is primarily due to lower forecasted NOI in the second half of 2008, due to the likely continuation of the current weak economic conditions. |
SEGMENT RESULTS
Retail and Other Segment
§ | NOIincreased to $628.8 million for the second quarter of 2008, 8.4% above the $580.3 million reported for the second quarter of 2007. The majority of this increase is due to the acquisition of our venture partner’s 50% interest in Homart I in July 2007, which resulted in the consolidation of 20 of the 23 properties in that portfolio that were previously reported as unconsolidated in our operating results. | ||
§ | Revenues from consolidated propertiesfor the second quarter of 2008, were $775.1 million, an increase of 14.9% compared to $674.6 million for the same period in 2007. This increase is primarily due to the Homart I acquisition, as discussed above. Excluding such acquisition, consolidated revenues would have increased by approximately $11.0 million or 1.6%. | ||
§ | Revenues from unconsolidated properties,at the Company’s ownership share, for the quarter declined 16.6% to $153.8 million, compared to $184.4 million in the |
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| second quarter of 2007. The decline was primarily due to the acquisition of our venture partner’s interest in the Homart I properties. | |||
§ | Comparable tenant salesincreased 0.8% in 2008, while total tenant sales were consistent with the same period last year, both on a trailing twelve month basis. | ||
§ | Comparable NOI from consolidated propertiesin the second quarter of 2008 increased by 2.6% compared to the same period last year, and increased by 3.9% for the first half of 2008 compared to the first half of 2007. | ||
§ | Comparable NOI from unconsolidated propertiesat the Company’s ownership share for the quarter increased by approximately 7.9% compared to the second quarter of 2007, and increased by 8.2% for the first half of 2008 compared to the first half of 2007. | ||
§ | Retail Center occupancyincreased to 93.2% at June 30, 2008 from 92.9% at June 30,2007. | ||
§ | Sales per square footfor the second quarter of 2008 and 2007 (on a trailing twelve month basis) were both $459. |
Master Planned Communities Segment
§ | Reflecting a stagnant housing market,NOIfrom the Master Planned Communities segment for the second quarter of 2008 was $0.6 million for consolidated properties and $6.6 million for unconsolidated properties as compared to $6.6 million and $7.9 million, respectively, in 2007. | ||
§ | Land sale revenuesfor the second quarter of 2008 were $15.9 million for consolidated properties and $17.8 million for unconsolidated properties, compared to $36.1 million and $22.7 million, respectively, for the second quarter of 2007. Such declines in land sale revenues reflect a reduced sales pace for 2008, a trend from the first quarter of 2008 that is expected to continue into 2009. |
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 Thursday, July 31, 2008, at 9:00 a.m. Eastern Time (8:00 a.m. CDT, 6:00 a.m. PDT). 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, over 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and
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commercial office buildings. The Company’s portfolio totals approximately 200 million square feet of retail space 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 AND CORE 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 including 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 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 FFO is a less meaningful supplemental measure for the Master Planned Communities segment of our business. FFO 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 FFO is a relevant measure of operating performance, the Company also uses Core FFO as an operating measure. Core FFO is defined as FFO excluding the NOI from the Master Planned Communities segment and the (provision for) benefit from 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 flow 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
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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 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 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
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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 of 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, tenant occupancy and tenant bankruptcies, the level of indebtedness and interest rates, retail and credit market conditions, land sales in the Master Planned Communities segment, the cost and success of development and re-development projects and our 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 (as amended by Amendment No.1 to such report filed on Form 10-K/A), which further identify the important risk factors which could cause actual results to differ 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 | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Funds From Operations (“FFO”) | ||||||||||||||||
| Company stockholders | $ | 190,996 | $ | 173,359 | $ | 375,260 | $ | 577,890 | ||||||||
| Operating Partnership unitholders | 37,027 | 36,917 | 75,964 | 124,053 | ||||||||||||
| Operating Partnership | $ | 228,023 | $ | 210,276 | $ | 451,224 | $ | 701,943 | ||||||||
| Increase (decrease) in FFO over comparable prior year period | 8.4 | % | 15.5 | % | (35.7 | )% | 71.5 | % | ||||||||
| FFO per share: | ||||||||||||||||
| Company stockholders — basic | $ | 0.71 | $ | 0.71 | $ | 1.47 | $ | 2.37 | ||||||||
| Operating Partnership — basic | 0.71 | 0.71 | 1.47 | 2.37 | ||||||||||||
| Operating Partnership — diluted | 0.71 | 0.71 | 1.46 | 2.36 | ||||||||||||
| Increase (decrease) in diluted FFO over comparable prior year period | — | % | 14.5 | % | (38.1 | )% | 69.8 | % | ||||||||
Core Funds From Operations (“Core FFO”) | ||||||||||||||||
| Core FFO | $ | 228,440 | $ | 216,562 | $ | 455,063 | $ | 408,975 | ||||||||
| Core FFO per share — diluted | 0.72 | 0.73 | 1.48 | 1.38 | ||||||||||||
| Increase in Core FFO over comparable prior year period | 5.5 | % | 17.7 | % | 11.3 | % | 4.0 | % | ||||||||
Dividends | ||||||||||||||||
| Dividends paid per share | $ | 0.50 | $ | 0.45 | $ | 1.00 | $ | 0.90 | ||||||||
| Payout ratio (% of diluted FFO paid out) | 70.4 | % | 63.4 | % | 68.5 | % | 38.1 | % | ||||||||
Real Estate Property Net Operating Income (“NOI”) | ||||||||||||||||
| Retail and Other: | ||||||||||||||||
| Consolidated | $ | 529,580 | $ | 464,980 | $ | 1,070,236 | $ | 913,664 | ||||||||
| Unconsolidated | 99,254 | 115,302 | 192,661 | 225,333 | ||||||||||||
| Total Retail and Other | 628,834 | 580,282 | 1,262,897 | 1,138,997 | ||||||||||||
| Master Planned Communities: | ||||||||||||||||
| Consolidated | 644 | 6,588 | (210 | ) | 10,237 | |||||||||||
| Unconsolidated | 6,606 | 7,895 | 14,318 | 13,561 | ||||||||||||
| Total Master Planned Communities | 7,250 | 14,483 | 14,108 | 23,798 | ||||||||||||
| Total Real estate property net operating income | $ | 636,084 | $ | 594,765 | $ | 1,277,005 | $ | 1,162,795 | ||||||||
| June 30, | December 31, | |||||||
| Selected Balance Sheet Information | 2008 | 2007 | ||||||
| Cash and cash equivalents | $ | 87,444 | $ | 99,534 | ||||
| Investment in real estate: | ||||||||
| Net land, buildings and equipment | $ | 22,773,140 | $ | 22,359,249 | ||||
| Developments in progress | 1,196,249 | 987,936 | ||||||
| Net investment in and loans to/from | ||||||||
| Unconsolidated Real Estate Affiliates | 1,827,629 | 1,803,366 | ||||||
| Investment land and land held for development and sale | 1,678,838 | 1,639,372 | ||||||
| Net investment in real estate | $ | 27,475,856 | $ | 26,789,923 | ||||
| Total assets | $ | 29,505,588 | $ | 28,814,319 | ||||
| Mortgage, notes and loans payable | $ | 24,461,117 | $ | 24,282,139 | ||||
| Minority interest — Preferred | 121,482 | 121,482 | ||||||
| Minority interest — Common | 434,636 | 351,362 | ||||||
| Stockholders’ equity | 1,991,001 | 1,456,696 | ||||||
| Total capitalization (at cost) | $ | 27,008,236 | $ | 26,211,679 | ||||
| Consolidated Properties | Unconsolidated Properties(a) | |||||||||||||||
| Average | Average | |||||||||||||||
| Outstanding | Interest | Outstanding | Interest | |||||||||||||
| Summarized Debt Information | Balance | Rate(d) | Balance | Rate(d) | ||||||||||||
| Fixed rate (c) | $ | 20,240,942 | 5.55 | % | $ | 2,903,863 | 5.68 | % | ||||||||
| Variable rate (c) | 4,018,737 | 4.22 | 310,959 | 6.87 | ||||||||||||
| Totals | $ | 24,259,679 | (b) | 5.33 | % | $ | 3,214,822 | 5.79 | % | |||||||
| (a) | Reflects the Company’s share of debt relating to the properties owned by the Unconsolidated Real Estate Affiliates. | |
| (b) | Excludes liabilities to special improvement districts of $71.0 million, minority interest adjustment of $71.5 million | |
| and purchase accounting mark-to-market adjustments of $58.9 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 | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Revenues: | ||||||||||||||||
| Minimum rents | $ | 507,099 | $ | 443,432 | $ | 1,032,041 | $ | 879,474 | ||||||||
| Tenant recoveries | 231,548 | 195,403 | 463,179 | 394,858 | ||||||||||||
| Overage rents | 10,892 | 10,876 | 24,410 | 26,456 | ||||||||||||
| Land sales | 15,855 | 36,130 | 24,921 | 59,923 | ||||||||||||
| Management and other fees | 21,918 | 26,348 | 42,157 | 53,920 | ||||||||||||
| Other | 28,306 | 27,893 | 59,232 | 54,244 | ||||||||||||
| Total revenues | 815,618 | 740,082 | 1,645,940 | 1,468,875 | ||||||||||||
Expenses: | ||||||||||||||||
| Real estate taxes | 69,004 | 55,089 | 137,653 | 111,949 | ||||||||||||
| Repairs and maintenance | 56,997 | 47,918 | 119,098 | 98,891 | ||||||||||||
| Marketing | 8,776 | 10,713 | 21,052 | 23,294 | ||||||||||||
| Other property operating costs | 104,434 | 97,609 | 216,326 | 197,645 | ||||||||||||
| Land sales operations | 15,211 | 29,542 | 25,131 | 49,686 | ||||||||||||
| Provision for (recovery of) doubtful accounts | 6,287 | (1,701 | ) | 8,996 | 3,791 | |||||||||||
| Property management and other costs | 54,804 | 56,447 | 106,942 | 109,589 | ||||||||||||
| General and administrative | 4,416 | 4,030 | 12,515 | 16,299 | ||||||||||||
| Depreciation and amortization | 191,242 | 163,289 | 375,501 | 338,408 | ||||||||||||
| Total expenses | 511,171 | 462,936 | 1,023,214 | 949,552 | ||||||||||||
| Operating income | 304,447 | 277,146 | 622,726 | 519,323 | ||||||||||||
| Interest income | 1,449 | 2,944 | 2,006 | 4,977 | ||||||||||||
| Interest expense | (312,943 | ) | (275,547 | ) | (632,337 | ) | (543,896 | ) | ||||||||
| (Loss) income before income taxes, minority interest and equity in income of Unconsolidated Real Estate Affiliates | (7,047 | ) | 4,543 | (7,605 | ) | (19,596 | ) | |||||||||
| (Provision for) benefit from income taxes | (6,866 | ) | (17,647 | ) | (16,257 | ) | 270,744 | |||||||||
| Minority interest | (3,969 | ) | (5,085 | ) | (9,290 | ) | (59,502 | ) | ||||||||
| Equity in income of Unconsolidated Real Estate Affiliates | 21,145 | 26,581 | 44,973 | 46,940 | ||||||||||||
| Income from continuing operations | 3,263 | 8,392 | 11,821 | 238,586 | ||||||||||||
| Discontinued operations, net of minority interest — gains on dispositions | 30,819 | — | 30,819 | — | ||||||||||||
| Net income | $ | 34,082 | $ | 8,392 | $ | 42,640 | $ | 238,586 | ||||||||
Basic Earnings Per Share: | ||||||||||||||||
| Continuing operations | $ | 0.01 | $ | 0.03 | $ | 0.05 | $ | 0.98 | ||||||||
| Discontinued operations | 0.12 | — | 0.12 | — | ||||||||||||
| Total basic earnings per share | $ | 0.13 | $ | 0.03 | $ | 0.17 | $ | 0.98 | ||||||||
Diluted Earnings Per Share: | ||||||||||||||||
| Continuing operations | $ | 0.01 | $ | 0.03 | $ | 0.05 | $ | 0.97 | ||||||||
| Discontinued operations | 0.12 | — | 0.12 | — | ||||||||||||
| Total diluted earnings per share | $ | 0.13 | $ | 0.03 | $ | 0.17 | $ | 0.97 | ||||||||
11
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 June 30, 2008 | ||||||||||||
| Consolidated | Unconsolidated | Segment | ||||||||||
| Properties | Properties | Basis | ||||||||||
Retail and Other | ||||||||||||
| Property revenues: | ||||||||||||
| Minimum rents | $ | 507,099 | $ | 94,544 | $ | 601,643 | ||||||
| Tenant recoveries | 231,548 | 39,522 | 271,070 | |||||||||
| Overage rents | 10,892 | 1,723 | 12,615 | |||||||||
| Other, including minority interest | 25,539 | 18,012 | 43,551 | |||||||||
| Total property revenues | 775,078 | 153,801 | 928,879 | |||||||||
| Property operating expenses: | ||||||||||||
| Real estate taxes | 69,004 | 11,990 | 80,994 | |||||||||
| Repairs and maintenance | 56,997 | 8,945 | 65,942 | |||||||||
| Marketing | 8,776 | 1,590 | 10,366 | |||||||||
| Other property operating costs | 104,434 | 31,534 | 135,968 | |||||||||
| Provision for doubtful accounts | 6,287 | 488 | 6,775 | |||||||||
| Total property operating expenses | 245,498 | 54,547 | 300,045 | |||||||||
| Retail and other net operating income | 529,580 | 99,254 | 628,834 | |||||||||
Master Planned Communities | ||||||||||||
| Land sales | 15,855 | 17,802 | 33,657 | |||||||||
| Land sales operations | (15,211 | ) | (11,196 | ) | (26,407 | ) | ||||||
| Master Planned Communities net operating income | 644 | 6,606 | 7,250 | |||||||||
| Real estate property net operating income | 530,224 | 105,860 | $ | 636,084 | ||||||||
| Management and other fees | 21,918 | 5,477 | ||||||||||
| Property management and other costs | (20,590 | ) | (584 | ) | ||||||||
| Headquarters/regional costs | (34,214 | ) | (9,508 | ) | ||||||||
| General and administrative | (4,416 | ) | (2,464 | ) | ||||||||
| Depreciation on non-income producing assets, including headquarters building | (2,603 | ) | — | |||||||||
| Interest income | 1,449 | 1,363 | ||||||||||
| Interest expense | (312,943 | ) | (41,876 | ) | ||||||||
| Provision for income taxes | (6,866 | ) | (801 | ) | ||||||||
| Preferred unit distributions | (2,903 | ) | — | |||||||||
| Other FFO from minority interest | 1,470 | 30 | ||||||||||
| FFO | 170,526 | 57,497 | ||||||||||
| Equity in FFO of Unconsolidated Properties | 57,497 | (57,497 | ) | |||||||||
| Operating Partnership FFO | $ | 228,023 | $ | — | ||||||||
| Three Months Ended June 30, 2007 | ||||||||||||
| Consolidated | Unconsolidated | Segment | ||||||||||
| Properties | Properties | Basis | ||||||||||
Retail and Other | ||||||||||||
| Property revenues: | ||||||||||||
| Minimum rents | $ | 443,432 | $ | 112,053 | $ | 555,485 | ||||||
| Tenant recoveries | 195,403 | 47,684 | 243,087 | |||||||||
| Overage rents | 10,876 | 1,467 | 12,343 | |||||||||
| Other, including minority interest | 24,897 | 23,197 | 48,094 | |||||||||
| Total property revenues | 674,608 | 184,401 | 859,009 | |||||||||
| Property operating expenses: | ||||||||||||
| Real estate taxes | 55,089 | 14,392 | 69,481 | |||||||||
| Repairs and maintenance | 47,918 | 10,640 | 58,558 | |||||||||
| Marketing | 10,713 | 2,874 | 13,587 | |||||||||
| Other property operating costs | 97,609 | 40,796 | 138,405 | |||||||||
| (Recovery of) provision for doubtful accounts | (1,701 | ) | 397 | (1,304 | ) | |||||||
| Total property operating expenses | 209,628 | 69,099 | 278,727 | |||||||||
| Retail and other net operating income | 464,980 | 115,302 | 580,282 | |||||||||
Master Planned Communities | ||||||||||||
| Land sales | 36,130 | 22,661 | 58,791 | |||||||||
| Land sales operations | (29,542 | ) | (14,766 | ) | (44,308 | ) | ||||||
| Master Planned Communities net operating income | 6,588 | 7,895 | 14,483 | |||||||||
| Real estate property net operating income | 471,568 | 123,197 | $ | 594,765 | ||||||||
| Management and other fees | 26,348 | 4,074 | ||||||||||
| Property management and other costs | (18,714 | ) | (779 | ) | ||||||||
| Headquarters/regional costs | (37,733 | ) | (10,865 | ) | ||||||||
| General and administrative | (4,030 | ) | (1,423 | ) | ||||||||
| Depreciation on non-income producing assets, including headquarters building | (3,076 | ) | — | |||||||||
| Interest income | 2,944 | 8,046 | ||||||||||
| Interest expense | (275,547 | ) | (51,304 | ) | ||||||||
| Provision for income taxes | (17,647 | ) | (3,122 | ) | ||||||||
| Preferred unit distributions | (3,055 | ) | — | |||||||||
| Other FFO from minority interest | 1,394 | — | ||||||||||
| FFO | 142,452 | 67,824 | ||||||||||
| Equity in FFO of Unconsolidated Properties | 67,824 | (67,824 | ) | |||||||||
| Operating Partnership FFO | $ | 210,276 | $ | — | ||||||||
12
GENERAL GROWTH PROPERTIES, INC.
PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS (“FFO”)
(In thousands)
PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS (“FFO”)
(In thousands)
| Six Months Ended June 30, 2008 | ||||||||||||
| Consolidated | Unconsolidated | Segment | ||||||||||
| Properties | Properties | Basis | ||||||||||
Retail and Other | ||||||||||||
| Property revenues: | ||||||||||||
| Minimum rents | $ | 1,032,041 | $ | 187,236 | $ | 1,219,277 | ||||||
| Tenant recoveries | 463,179 | 78,613 | 541,792 | |||||||||
| Overage rents | 24,410 | 3,035 | 27,445 | |||||||||
| Other, including minority interest | 53,731 | 31,552 | 85,283 | |||||||||
| Total property revenues | 1,573,361 | 300,436 | 1,873,797 | |||||||||
| Property operating expenses: | ||||||||||||
| Real estate taxes | 137,653 | 23,581 | 161,234 | |||||||||
| Repairs and maintenance | 119,098 | 18,246 | 137,344 | |||||||||
| Marketing | 21,052 | 3,778 | 24,830 | |||||||||
| Other property operating costs | 216,326 | 61,387 | 277,713 | |||||||||
| Provision for doubtful accounts | 8,996 | 783 | 9,779 | |||||||||
| Total property operating expenses | 503,125 | 107,775 | 610,900 | |||||||||
| Retail and other net operating income | 1,070,236 | 192,661 | 1,262,897 | |||||||||
Master Planned Communities | ||||||||||||
| Land sales | 24,921 | 40,920 | 65,841 | |||||||||
| Land sales operations | (25,131 | ) | (26,602 | ) | (51,733 | ) | ||||||
| Master Planned Communities net operating (loss) income | (210 | ) | 14,318 | 14,108 | ||||||||
| Real estate property net operating income | 1,070,026 | 206,979 | $ | 1,277,005 | ||||||||
| Management and other fees | 42,157 | 10,508 | ||||||||||
| Property management and other costs | (39,012 | ) | (1,526 | ) | ||||||||
| Headquarters/regional costs | (67,930 | ) | (18,198 | ) | ||||||||
| General and administrative | (12,515 | ) | (4,719 | ) | ||||||||
| Depreciation on non-income producing assets, including headquarters building | (5,399 | ) | — | |||||||||
| Interest income | 2,006 | 3,071 | ||||||||||
| Interest expense | (632,337 | ) | (80,986 | ) | ||||||||
| Provision for income taxes | (16,257 | ) | (1,690 | ) | ||||||||
| Preferred unit distributions | (5,806 | ) | — | |||||||||
| Other FFO from minority interest | 2,791 | 61 | ||||||||||
| FFO | 337,724 | 113,500 | ||||||||||
| Equity in FFO of Unconsolidated Properties | 113,500 | (113,500 | ) | |||||||||
| Operating Partnership FFO | $ | 451,224 | $ | — | ||||||||
| Six Months Ended June 30, 2007 | ||||||||||||
| Consolidated | Unconsolidated | Segment | ||||||||||
| Properties | Properties | Basis | ||||||||||
Retail and Other | ||||||||||||
| Property revenues: | ||||||||||||
| Minimum rents | $ | 879,474 | $ | 221,219 | $ | 1,100,693 | ||||||
| Tenant recoveries | 394,858 | 95,944 | 490,802 | |||||||||
| Overage rents | 26,456 | 3,934 | 30,390 | |||||||||
| Other, including minority interest | 48,446 | 44,655 | 93,101 | |||||||||
| Total property revenues | 1,349,234 | 365,752 | 1,714,986 | |||||||||
| Property operating expenses: | ||||||||||||
| Real estate taxes | 111,949 | 29,521 | 141,470 | |||||||||
| Repairs and maintenance | 98,891 | 21,761 | 120,652 | |||||||||
| Marketing | 23,294 | 6,246 | 29,540 | |||||||||
| Other property operating costs | 197,645 | 81,643 | 279,288 | |||||||||
| Provision for doubtful accounts | 3,791 | 1,248 | 5,039 | |||||||||
| Total property operating expenses | 435,570 | 140,419 | 575,989 | |||||||||
| Retail and other net operating income | 913,664 | 225,333 | 1,138,997 | |||||||||
Master Planned Communities | ||||||||||||
| Land sales | 59,923 | 36,022 | 95,945 | |||||||||
| Land sales operations | (49,686 | ) | (22,461 | ) | (72,147 | ) | ||||||
| Master Planned Communities net operating income | 10,237 | 13,561 | 23,798 | |||||||||
| Real estate property net operating income | 923,901 | 238,894 | $ | 1,162,795 | ||||||||
| Management and other fees | 53,920 | 8,162 | ||||||||||
| Property management and other costs | (45,273 | ) | (1,578 | ) | ||||||||
| Headquarters/regional costs | (64,316 | ) | (21,992 | ) | ||||||||
| General and administrative | (16,299 | ) | (1,558 | ) | ||||||||
| Depreciation on non-income producing assets, including headquarters building | (6,191 | ) | — | |||||||||
| Interest income | 4,977 | 11,723 | ||||||||||
| Interest expense | (543,896 | ) | (103,388 | ) | ||||||||
| Benefit from (provision for) income taxes | 270,744 | (1,574 | ) | |||||||||
| Preferred unit distributions | (7,113 | ) | — | |||||||||
| Other FFO from minority interest | 2,800 | — | ||||||||||
| FFO | 573,254 | 128,689 | ||||||||||
| Equity in FFO of Unconsolidated Properties | 128,689 | (128,689 | ) | |||||||||
| Operating Partnership FFO | $ | 701,943 | $ | — | ||||||||
13
GENERAL GROWTH PROPERTIES, INC.
SUPPLEMENTAL DISCLOSURE OF CERTAIN NON-CASH REVENUES AND EXPENSES
REFLECTED IN FFO
(In thousands)
SUPPLEMENTAL DISCLOSURE OF CERTAIN NON-CASH REVENUES AND EXPENSES
REFLECTED IN FFO
(In thousands)
| Three Months Ended | Three Months Ended | |||||||||||||||
| June 30, 2008 | June 30, 2007 | |||||||||||||||
| Consolidated | Unconsolidated | Consolidated | Unconsolidated | |||||||||||||
| Properties | Properties | Properties | Properties | |||||||||||||
Minimum rents: | ||||||||||||||||
| Above- and below-market tenant leases, net | $ | 2,812 | $ | 2,144 | $ | 8,517 | $ | 2,367 | ||||||||
| Straight-line rent | 9,961 | 2,137 | 8,347 | 2,507 | ||||||||||||
Other property operating costs: | ||||||||||||||||
| Non-cash ground rent expense | (1,820 | ) | (231 | ) | (1,589 | ) | (193 | ) | ||||||||
Real estate taxes: | ||||||||||||||||
| Real estate tax stabilization agreement | (981 | ) | — | (981 | ) | — | ||||||||||
Interest expense: | ||||||||||||||||
| Statutory interest expense on Glendale judgment being appealed | (2,225 | ) | — | — | — | |||||||||||
| Mark-to-market adjustments on debt | 4,354 | 754 | 7,531 | 1,076 | ||||||||||||
| Amortization of deferred finance costs | (3,490 | ) | (441 | ) | (4,539 | ) | (461 | ) | ||||||||
| Debt extinguishment costs: | ||||||||||||||||
| Write-off of mark-to-market adjustments | — | — | 112 | — | ||||||||||||
| Write-off of deferred finance costs | (1 | ) | (244 | ) | (2,387 | ) | — | |||||||||
| Totals | $ | 8,610 | $ | 4,119 | $ | 15,011 | $ | 5,296 | ||||||||
| Six Months Ended | Six Months Ended | |||||||||||||||
| June 30, 2008 | June 30, 2007 | |||||||||||||||
| Consolidated | Unconsolidated | Consolidated | Unconsolidated | |||||||||||||
| Properties | Properties | Properties | Properties | |||||||||||||
Minimum rents: | ||||||||||||||||
| Above- and below-market tenant leases, net | $ | 8,747 | $ | 4,280 | $ | 18,057 | $ | 4,734 | ||||||||
| Straight-line rent | 21,903 | 4,934 | 17,755 | 5,486 | ||||||||||||
Other property operating costs: | ||||||||||||||||
| Non-cash ground rent expense | (3,555 | ) | (462 | ) | (3,178 | ) | (385 | ) | ||||||||
Real estate taxes: | ||||||||||||||||
| Real estate tax stabilization agreement | (1,962 | ) | — | (1,962 | ) | — | ||||||||||
Interest expense: | ||||||||||||||||
| Statutory interest expense on Glendale judgment being appealed | (4,457 | ) | — | — | — | |||||||||||
| Mark-to-market adjustments on debt | 8,520 | 1,466 | 18,037 | 2,070 | ||||||||||||
| Amortization of deferred finance costs | (12,230 | ) | (821 | ) | (8,070 | ) | (913 | ) | ||||||||
| Debt extinguishment costs: | ||||||||||||||||
| Write-off of mark-to-market adjustments | — | — | 112 | — | ||||||||||||
| Write-off of deferred finance costs | 207 | (244 | ) | (2,387 | ) | — | ||||||||||
| Totals | $ | 17,173 | $ | 9,153 | $ | 38,364 | $ | 10,992 | ||||||||
WEIGHTED AVERAGE SHARES
(In thousands)
(In thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| Basic | 267,369 | 244,960 | 256,067 | 244,165 | ||||||||||||
| Diluted | 267,597 | 245,627 | 256,253 | 244,850 | ||||||||||||
| Assuming full conversion of Operating Partnership units: | ||||||||||||||||
| Basic | 319,202 | 297,125 | 307,903 | 296,579 | ||||||||||||
| Diluted | 319,430 | 297,792 | 308,089 | 297,264 | ||||||||||||
14
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 | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Reconciliation of Real Estate Property Net Operating Income (“NOI”) to GAAP Operating Income | ||||||||||||||||
| Real estate property net operating income: | ||||||||||||||||
| Segment basis | $ | 636,084 | $ | 594,765 | $ | 1,277,005 | $ | 1,162,795 | ||||||||
| Unconsolidated Properties | (105,860 | ) | (123,197 | ) | (206,979 | ) | (238,894 | ) | ||||||||
| Consolidated Properties | 530,224 | 471,568 | 1,070,026 | 923,901 | ||||||||||||
| Management and other fees | 21,918 | 26,348 | 42,157 | 53,920 | ||||||||||||
| Property management and other costs | (20,590 | ) | (18,714 | ) | (39,012 | ) | (45,273 | ) | ||||||||
| Headquarters/regional costs | (34,214 | ) | (37,733 | ) | (67,930 | ) | (64,316 | ) | ||||||||
| General and administrative | (4,416 | ) | (4,030 | ) | (12,515 | ) | (16,299 | ) | ||||||||
| Depreciation and amortization | (191,242 | ) | (163,289 | ) | (375,501 | ) | (338,408 | ) | ||||||||
| Minority interest in NOI of Consolidated Properties and other | 2,767 | 2,996 | 5,501 | 5,798 | ||||||||||||
| Operating income | $ | 304,447 | $ | 277,146 | $ | 622,726 | $ | 519,323 | ||||||||
Reconciliation of Core FFO to Funds From Operations (“FFO”) and to GAAP Net Income | ||||||||||||||||
| Core FFO | $ | 228,440 | $ | 216,562 | $ | 455,063 | $ | 408,975 | ||||||||
| Master Planned Communities net operating income | 7,250 | 14,483 | 14,108 | 23,798 | ||||||||||||
| (Provision for) benefit from income taxes | (7,667 | ) | (20,769 | ) | (17,947 | ) | 269,170 | |||||||||
| Funds From Operations — Operating Partnership | 228,023 | 210,276 | 451,224 | 701,943 | ||||||||||||
| Depreciation and amortization of capitalized real estate costs | (225,010 | ) | (200,471 | ) | (438,665 | ) | (412,983 | ) | ||||||||
| Minority interest in depreciation of Consolidated Properties and other | 828 | 47 | 1,653 | 842 | ||||||||||||
| Minority interest to Operating Partnership unitholders | (578 | ) | (1,460 | ) | (2,391 | ) | (51,216 | ) | ||||||||
| Income from continuing operations | 3,263 | 8,392 | 11,821 | 238,586 | ||||||||||||
| Discontinued operations, net of minority interest — gains on dispositions | 30,819 | — | 30,819 | — | ||||||||||||
| Net income | $ | 34,082 | $ | 8,392 | $ | 42,640 | $ | 238,586 | ||||||||
Reconciliation of Equity in NOI of Unconsolidated Properties to GAAP Equity in Income of Unconsolidated Affiliates | ||||||||||||||||
| Equity in Unconsolidated Properties: | ||||||||||||||||
| NOI | $ | 105,860 | $ | 123,197 | $ | 206,979 | $ | 238,894 | ||||||||
| Net property management fees and costs | 4,893 | 3,295 | 8,982 | 6,584 | ||||||||||||
| Net interest expense | (40,513 | ) | (43,258 | ) | (77,915 | ) | (91,665 | ) | ||||||||
| Headquarters, general and administrative, income taxes and minority interest in FFO | (12,743 | ) | (15,410 | ) | (24,546 | ) | (25,124 | ) | ||||||||
| FFO of unconsolidated properties | 57,497 | 67,824 | 113,500 | 128,689 | ||||||||||||
| Depreciation and amortization of capitalized real estate costs | (36,371 | ) | (40,258 | ) | (68,562 | ) | (80,766 | ) | ||||||||
| Other, including (loss) on sales of investment properties | 19 | (985 | ) | 35 | (983 | ) | ||||||||||
| Equity in income of unconsolidated real estate affiliates | $ | 21,145 | $ | 26,581 | $ | 44,973 | $ | 46,940 | ||||||||
Reconciliation of Weighted Average Shares Outstanding | ||||||||||||||||
| Basic: | ||||||||||||||||
| Weighted average number of shares outstanding — FFO per share | 319,202 | 297,125 | 307,903 | 296,579 | ||||||||||||
| Conversion of Operating Partnership units | (51,833 | ) | (52,165 | ) | (51,836 | ) | (52,414 | ) | ||||||||
| Weighted average number of Company shares outstanding — GAAP EPS | 267,369 | 244,960 | 256,067 | 244,165 | ||||||||||||
| Diluted: | ||||||||||||||||
| Weighted average number of shares outstanding — FFO per share | 319,430 | 297,792 | 308,089 | 297,264 | ||||||||||||
| Conversion of Operating Partnership units | (51,833 | ) | (52,165 | ) | (51,836 | ) | (52,414 | ) | ||||||||
| Weighted average number of Company shares outstanding — GAAP EPS | 267,597 | 245,627 | 256,253 | 244,850 | ||||||||||||
15
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 | Six Months | |||||||
| Ended | Ended | |||||||
| June 30, 2008 | June 30, 2008 | |||||||
Cash From Recurring Operations | ||||||||
| FFO — Operating Partnership | $ | 228,023 | $ | 451,224 | ||||
| Plus (Less): | ||||||||
| Non-FFO cash from Master Planned Communities | (30,511 | ) | (61,196 | ) | ||||
| Deferred income taxes | (2,774 | ) | (1,245 | ) | ||||
| Tenant allowances and capitalized leasing costs (a) | (41,656 | ) | (73,962 | ) | ||||
| Above and below-market tenant leases, net | (4,956 | ) | (13,027 | ) | ||||
| Straight-line rent adjustment | (12,098 | ) | (26,837 | ) | ||||
| Non-cash ground rent expense | 2,051 | 4,017 | ||||||
| Real estate tax stabilization agreement | 981 | 1,962 | ||||||
| Statutory interest expense on Glendale judgment being appealed | 2,225 | 4,457 | ||||||
| Mark-to-market adjustments on debt | (5,108 | ) | (9,986 | ) | ||||
| Amortization of deferred finance costs | 3,931 | 13,051 | ||||||
| Debt extinguishment costs: | ||||||||
| Write-off of deferred finance costs | 245 | 37 | ||||||
Cash From Recurring Operations - Operating Partnership | $ | 140,353 | $ | 288,495 | ||||
Retained Funds From Recurring Operations | ||||||||
| Cash From Recurring Operations — Operating Partnership (from above) | $ | 140,353 | $ | 288,495 | ||||
| Less common dividends/distributions paid | (159,757 | ) | (307,723 | ) | ||||
Retained Funds From Recurring Operations - - Operating Partnership | $ | (19,404 | ) | $ | (19,228 | ) | ||
| (a) | Reflects only recurring tenant allowances; allowances that relate to new and re-development projects are excluded. |
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Core FFO | ||||||||||||||||
| Operating Partnership FFO | $ | 228,023 | $ | 210,276 | $ | 451,224 | $ | 701,943 | ||||||||
| Exclusions, at the Company’s share: | ||||||||||||||||
| Master Planned Communities net operating income | (7,250 | ) | (14,483 | ) | (14,108 | ) | (23,798 | ) | ||||||||
| Provision for (benefit from) income taxes | 7,667 | 20,769 | 17,947 | (269,170 | ) | |||||||||||
Core FFO | $ | 228,440 | $ | 216,562 | $ | 455,063 | $ | 408,975 | ||||||||
| Weighted average shares assuming full conversion of Operating Partnership units - diluted | 319,430 | 297,792 | 308,089 | 297,264 | ||||||||||||
Core FFO — per share | $ | 0.72 | $ | 0.73 | $ | 1.48 | $ | 1.38 | ||||||||
16
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)
| * | Reflects only recurring tenant allowances; allowances that relate to new and redevelopment projects are excluded. Certain amounts have been reclassified to conform to the current period presentation. |
17
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 | ||||||||||||||||
| 06/30/2008 | 03/31/2008 | 12/31/2007 | 9/30/2007 | |||||||||||||
Pro Rata EBITDA (a) | ||||||||||||||||
| GAAP Net Income | $ | 92,007 | $ | 66,318 | $ | 287,954 | $ | 299,460 | ||||||||
| Discontinued Operations, Net of Minority Interest — Gains on Dispositions | (30,819 | ) | — | — | 823 | |||||||||||
| Income Allocated to Minority Interest | 26,800 | 27,916 | 77,012 | 82,489 | ||||||||||||
| Interest Expense | 1,391,525 | 1,360,346 | 1,327,203 | 1,296,416 | ||||||||||||
| Income Taxes | (4,212 | ) | 8,891 | (289,430 | ) | (207,490 | ) | |||||||||
| Amortization of Deferred Finance Costs | 24,641 | 25,710 | 20,574 | 18,838 | ||||||||||||
| Debt Extinguishment Costs | (3,913 | ) | (1,883 | ) | (1,675 | ) | (112 | ) | ||||||||
| Interest Income | (13,544 | ) | (18,225 | ) | (21,575 | ) | (24,732 | ) | ||||||||
| Depreciation and Amortization | 834,014 | 809,966 | 809,161 | 863,909 | ||||||||||||
| Pro Rata EBITDA | $ | 2,316,499 | $ | 2,279,039 | $ | 2,209,224 | $ | 2,329,601 | ||||||||
Net Interest(a) | ||||||||||||||||
| Amortization of Deferred Finance Costs | (24,641 | ) | (25,710 | ) | (20,574 | ) | (18,838 | ) | ||||||||
| Debt Extinguishment Costs | 3,913 | 1,883 | 1,675 | 112 | ||||||||||||
| Interest Expense | (1,391,525 | ) | (1,360,346 | ) | (1,327,203 | ) | (1,296,416 | ) | ||||||||
| Interest Income | 13,544 | 18,225 | 21,575 | 24,732 | ||||||||||||
| Net Interest | $ | (1,398,709 | ) | $ | (1,365,948 | ) | $ | (1,324,527 | ) | $ | (1,290,410 | ) | ||||
| Interest Coverage Ratio | 1.66 | 1.67 | 1.67 | 1.81 | ||||||||||||
Fixed Charges(b) | ||||||||||||||||
| Net Interest | $ | (1,398,709 | ) | $ | (1,365,948 | ) | $ | (1,324,527 | ) | $ | (1,290,410 | ) | ||||
| Preferred Unit Distributions | (11,656 | ) | (11,808 | ) | (12,963 | ) | (14,142 | ) | ||||||||
| Fixed Charges | $ | (1,410,365 | ) | $ | (1,377,756 | ) | $ | (1,337,490 | ) | $ | (1,304,552 | ) | ||||
| Ratio of Pro Rata EBITDA to Fixed Charges | 1.64 | 1.65 | 1.65 | 1.79 | ||||||||||||
Fixed Charges & Common Dividend | ||||||||||||||||
| Fixed Charges | $ | (1,410,365 | ) | $ | (1,377,756 | ) | $ | (1,337,490 | ) | $ | (1,304,552 | ) | ||||
| Common Dividend/Distributions | (588,773 | ) | (562,839 | ) | (547,788 | ) | (532,093 | ) | ||||||||
| Fixed Charges & Common Dividend | $ | (1,999,138 | ) | $ | (1,940,595 | ) | $ | (1,885,278 | ) | $ | (1,836,645 | ) | ||||
| Ratio of Pro Rata EBITDA to Fixed Charges & Common Dividend | 1.16 | 1.17 | 1.17 | 1.27 | ||||||||||||
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. |
18
GENERAL GROWTH PROPERTIES, INC.
COMPARABLE NOI GROWTH
(dollars in thousands)
COMPARABLE NOI GROWTH
(dollars in thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| Comparable NOI Growth | 2008 | 2007 | 2008 | 2007 | ||||||||||||
| Total Retail and Other NOI | $ | 628,834 | $ | 580,282 | $ | 1,262,897 | $ | 1,138,997 | ||||||||
| NOI from noncomparable properties | (25,187 | ) | (26,191 | ) | (55,723 | ) | (45,227 | ) | ||||||||
| Corporate and other (a) | 60 | 29,938 | (401 | ) | 61,408 | |||||||||||
| Comparable NOI (b) | $ | 603,707 | $ | 584,029 | $ | 1,206,773 | $ | 1,155,178 | ||||||||
| Increase in Comparable NOI | 3.4 | % | 4.5 | % | ||||||||||||
| Certain amounts have been reclassified to conform to the current period presentation. | ||
| (a) | Represents miscellaneous 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 GGP/Homart I in July 2007 and, since GGP owned an interest in and managed the GGP/Homart I properties throughout 2007 and 2008, this amount includes an adjustment to reflect such additional 50% interest for all periods in the comparable NOI presentation. | |
| (b) | Comparable properties are properties that have been owned and operated for the entire time during the compared accounting periods, excluding those properties at which significant physical or merchandising changes have been made and miscellaneous (non-retail) properties. | |
19
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)
| Consolidated Properties | Unconsolidated | Company Portfolio | ||||||||||||||||||||||
| Maryland | Total | Property @ Share | Total MPC | |||||||||||||||||||||
| Properties (a) | Summerlin | Bridgeland | Consolidated | The Woodlands | Segment | |||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||
June 30, 2008 | ||||||||||||||||||||||||
| Land Sales (b) | $ | 741 | $ | 10,490 | $ | 4,624 | $ | 15,855 | $ | 17,802 | $ | 33,657 | ||||||||||||
| Land Sales Operations (c) (d) | 1,463 | 10,216 | 3,532 | 15,211 | 11,196 | 26,407 | ||||||||||||||||||
| Net Operating Income (Loss) | $ | (722 | ) | $ | 274 | $ | 1,092 | $ | 644 | $ | 6,606 | $ | 7,250 | |||||||||||
June 30, 2007 | ||||||||||||||||||||||||
| Land Sales (b) | $ | 6,416 | $ | 23,610 | $ | 6,104 | $ | 36,130 | $ | 22,661 | $ | 58,791 | ||||||||||||
| Land Sales Operations (c) (d) | 7,160 | 17,850 | 4,532 | 29,542 | 14,766 | 44,308 | ||||||||||||||||||
| Net Operating Income (Loss) | $ | (744 | ) | $ | 5,760 | $ | 1,572 | $ | 6,588 | $ | 7,895 | $ | 14,483 | |||||||||||
| Six Months Ended | ||||||||||||||||||||||||
June 30, 2008 | ||||||||||||||||||||||||
| Land Sales (b) | $ | 976 | $ | 16,124 | $ | 7,821 | $ | 24,921 | $ | 40,920 | $ | 65,841 | ||||||||||||
| Land Sales Operations (c) (d) | 2,325 | 16,426 | 6,380 | 25,131 | 26,602 | 51,733 | ||||||||||||||||||
| Net Operating Income (Loss) | $ | (1,349 | ) | $ | (302 | ) | $ | 1,441 | $ | (210 | ) | $ | 14,318 | $ | 14,108 | |||||||||
June 30, 2007 | ||||||||||||||||||||||||
| Land Sales (b) | $ | 9,937 | $ | 38,722 | $ | 11,264 | $ | 59,923 | $ | 36,022 | $ | 95,945 | ||||||||||||
| Land Sales Operations (c) (d) | 10,718 | 30,961 | 8,007 | 49,686 | 22,461 | 72,147 | ||||||||||||||||||
| Net Operating Income (Loss) | $ | (781 | ) | $ | 7,761 | $ | 3,257 | $ | 10,237 | $ | 13,561 | $ | 23,798 | |||||||||||
| (a) | Maryland Properties include Columbia and Fairwood. | |
| (b) | Includes builder price participation. | |
| (c) | Land Sales Operations includes selling and general and administrative expenses. | |
| (d) | Land Sales Operations for Summerlin includes quarterly accruals for semi-annual distributions pursuant to the Contingent Stock Agreement (“CSA”). |
20
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 June 30, 2008 (a) | $ | 1,678,838 | ||
| Estimated Value of Assets as of December 31, 2007 (b) | 3,280,178 |
NET CASH FLOW GENERATED
| Six Months Ended June 30, | ||||||||
| 2008 | 2007 | |||||||
| Net Operating Income | $ | 14,108 | $ | 23,798 | ||||
| Cost of Land Sales | 5,473 | 21,031 | ||||||
| The Woodlands Operations (c) | (14,318 | ) | (13,561 | ) | ||||
| The Woodlands Cash Distribution for 2007 (c) | — | 5,250 | ||||||
| Other Adjustments to Derive Cash Generated (d) | (1,759 | ) | 17,826 | |||||
| Total Cash Generated | 3,504 | 54,344 | ||||||
| Land Development Expenditures, Net of Related Financing | (50,593 | ) | (60,524 | ) | ||||
| Estimated Net Cash Flow generated by Master Planned Communities Segment (e) | $ | (47,089 | ) | $ | (6,180 | ) | ||
| (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 scheduled to be made in the first quarter of 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. In 2007, $70.8 million was distributed in the fourth quarter. | |
| (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 and other miscellaneous items. | |
| (e) | Estimated net cash flow used 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. |
21
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) | |||||||||||||||||
| Six Months Ended | Total | Remaining | ||||||||||||||||
| June 30, | Gross | Saleable | ||||||||||||||||
| 2008 | 2007 | Acres | Acres | |||||||||||||||
| Maryland Properties (c) | ||||||||||||||||||
| Residential | - Acres Sold | — | 0.7 | 263 | ||||||||||||||
| - Average Price/Acre | $ | — | $ | 589 | ||||||||||||||
| Commercial | - Acres Sold | — | 19.0 | 325 | ||||||||||||||
| - Average Price/Acre | $ | — | $ | 405 | ||||||||||||||
| Maryland Properties Acreage | 19,100 | 588 | ||||||||||||||||
Summerlin (d) | ||||||||||||||||||
| Residential | - Acres Sold | 3.1 | 17.2 | 6,812 | ||||||||||||||
| - Average Price/Acre | $ | 1,868 | $ | 1,263 | ||||||||||||||
| Commercial | - Acres Sold | — | 4.9 | 867 | ||||||||||||||
| - Average Price/Acre | $ | — | $ | 1,055 | ||||||||||||||
| Summerlin Acreage | 22,500 | 7,679 | ||||||||||||||||
Bridgeland | ||||||||||||||||||
| Residential | - Acres Sold | 27.7 | 41.5 | 5,998 | ||||||||||||||
| - Average Price/Acre | $ | 254 | $ | 247 | ||||||||||||||
| Commercial | - Acres Sold | — | — | 1,261 | ||||||||||||||
| - Average Price/Acre | $ | — | $ | — | ||||||||||||||
| Bridgeland Acreage | 11,400 | 7,259 | ||||||||||||||||
The Woodlands (e) | ||||||||||||||||||
| Residential | - Acres Sold | 150.9 | 143.6 | 1,904 | ||||||||||||||
| - Average Price/Acre | $ | 382 | $ | 374 | ||||||||||||||
| Commercial | - Acres Sold | 25.2 | 12.1 | 1,095 | ||||||||||||||
| - Average Price/Acre | $ | 588 | $ | 387 | ||||||||||||||
| The Woodlands Acreage | 28,400 | 2,999 | ||||||||||||||||
| (a) | Lot Sales and Pricing — 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/A, as well as page 21 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, 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 the amount of remaining saleable acres, are primarily based on assumptions regarding entitlements and zoning of the remaining project and are 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/A for more information. Average price per acre includes assumption of special improvement district financing. | |
| (e) | The Woodlands — Shown at 100% for context. GGP Share of The Woodlands is 52.5%. |
22
GENERAL GROWTH PROPERTIES, INC.
CAPITAL INFORMATION
(dollars in thousands except per share data)
CAPITAL INFORMATION
(dollars in thousands except per share data)
| 6/30/2008 | 12/31/2007 | 12/31/2006 | 12/31/2005 | |||||||||||||
Capital Information | ||||||||||||||||
| Closing common stock price per share | $ | 35.03 | $ | 41.18 | $ | 52.23 | $ | 46.99 | ||||||||
| 52 Week High (a) | 57.84 | 67.43 | 55.70 | 48.27 | ||||||||||||
| 52 Week Low (a) | 30.20 | 39.31 | 42.36 | 31.38 | ||||||||||||
| Total Return — Trailing Twelve Months (share appreciation and dividend) | -30.2 | % | -17.6 | % | 14.7 | % | 34.1 | % | ||||||||
| Common Shares and Common Units outstanding at end of period | 319,507,146 | (b) | 295,749,082 | 294,957,220 | 292,258,544 | |||||||||||
Portfolio Capitalization Data | ||||||||||||||||
| Total Portfolio Debt (c) | ||||||||||||||||
| Fixed | $ | 23,144,805 | $ | 23,580,449 | $ | 21,172,774 | $ | 17,293,150 | ||||||||
| Variable | 4,329,696 | 3,546,063 | 2,980,055 | 6,085,638 | ||||||||||||
| Total Preferred Securities | 121,482 | 121,482 | 182,828 | 205,944 | ||||||||||||
| Stock market value of common stock and Operating Partnership units outstanding at end of period | 11,192,332 | 12,178,947 | 15,405,616 | 13,733,229 | ||||||||||||
| Total Market Capitalization at end of period | $ | 38,788,315 | (d) | $ | 39,426,941 | $ | 39,741,273 | $ | 37,317,961 | |||||||
| Leverage Ratio (%) | 70.8 | % | 68.8 | % | 60.8 | % | 62.6 | % | ||||||||
| (a) | 52-week pricing information includes intra-day highs and lows. | |
| (b) | Net of 1.4 million treasury shares. | |
| (c) | Excludes liabilities to special improvement districts, minority interest adjustment and purchase accounting mark-to-market adjustments and includes the effect of interest rate swaps. | |
| (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 June 30, 2008. |
23
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, 2007 | 51,850,986 | 245,704,746 | (1,806,650 | ) | 295,749,082 | |||||||||||
| Direct stock purchase and dividend reinvestment plan | — | 40,237 | — | 40,237 | ||||||||||||
| Employee stock purchase plan | — | 157,296 | — | 157,296 | ||||||||||||
| Redemption of OP Units into common shares | (18,495 | ) | 18,495 | — | — | |||||||||||
| Common stock offering | — | 22,829,355 | — | 22,829,355 | ||||||||||||
| Issuance of stock for stock option exercises and restricted stock grants, including treasury shares issued for stock option exercises | — | 374,380 | 50 | 374,430 | ||||||||||||
| Issuance of stock, including from treasury, pursuant to the contingent stock agreement | — | — | 356,661 | 356,661 | ||||||||||||
| Common Shares and OP Units Outstanding at June 30, 2008 | 51,832,491 | 269,124,509 | (1,449,939 | ) | 319,507,061 | |||||||||||
| Net number of common shares issuable assuming exercise of dilutive stock options at June 30, 2008 | 129,854 | |||||||||||||||
| Diluted Common Shares and OP Units Outstanding at June 30, 2008 | 319,636,915 | |||||||||||||||
| Weighted average common shares and OP Units outstanding for the six months ended June 30, 2008 (Basic) | 307,903,307 | |||||||||||||||
| Weighted average net number of common shares issuable assuming exercise of dilutive stock options | 185,835 | |||||||||||||||
| Fully Diluted Weighted Average Common Shares and OP Units Outstanding for the six months ended June 30, 2008 (a) | 308,089,142 | |||||||||||||||
| (a) | 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 June 30, 2008. |
24
GENERAL GROWTH PROPERTIES, INC.
COMMON DIVIDEND HISTORY
COMMON DIVIDEND HISTORY
25
GENERAL GROWTH PROPERTIES, INC.
DEBT MATURITY AND CURRENT AVERAGE INTEREST RATE SUMMARY
AS OF JUNE 30, 2008
(dollars in thousands)
DEBT MATURITY AND CURRENT AVERAGE INTEREST RATE SUMMARY
AS OF JUNE 30, 2008
(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 | $ | 2,418,395 | 5.19 | % | $ | 136,784 | 9.16 | % | $ | 2,555,179 | 5.40 | % | ||||||||||||
| 2009 | 3,080,411 | 5.31 | % | 252,511 | 5.08 | % | 3,332,922 | 5.29 | % | |||||||||||||||
| 2010 | 3,882,020 | 5.18 | % | 637,156 | 5.13 | % | 4,519,176 | 5.17 | % | |||||||||||||||
| 2011 | 7,147,778 | 5.26 | % | 1,169,701 | 6.04 | % | 8,317,479 | 5.37 | % | |||||||||||||||
| 2012 | 3,820,307 | 5.13 | % | 773,048 | 5.50 | % | 4,593,355 | 5.19 | % | |||||||||||||||
| 2013 | 2,859,546 | 6.03 | % | 122,994 | 5.22 | % | 2,982,540 | 6.00 | % | |||||||||||||||
| 2014 | 253,219 | 5.11 | % | 4,447 | 11.81 | % | 257,666 | 5.23 | % | |||||||||||||||
| 2015 | 194,265 | 5.21 | % | 38,273 | 6.96 | % | 232,538 | 5.50 | % | |||||||||||||||
| 2016 | 226,088 | 6.61 | % | — | 0.00 | % | 226,088 | 6.61 | % | |||||||||||||||
| 2017 | 104,538 | 6.54 | % | 6,874 | 6.38 | % | 111,412 | 6.53 | % | |||||||||||||||
| Subsequent | 273,112 | 5.38 | % | 73,034 | 6.84 | % | 346,146 | 5.69 | % | |||||||||||||||
| Totals | $ | 24,259,679 | (d) | 5.33 | % | $ | 3,214,822 | 5.79 | % | $ | 27,474,501 | 5.39 | % | |||||||||||
| Fixed Rate (e) | 20,240,942 | 5.55 | % | 2,903,863 | 5.68 | % | 23,144,805 | 5.57 | % | |||||||||||||||
| Variable Rate (e) | 4,018,737 | 4.22 | % | 310,959 | 6.87 | % | 4,329,696 | 4.41 | % | |||||||||||||||
| Totals | $ | 24,259,679 | (d) | 5.33% | (f) | $ | 3,214,822 | 5.79% | (f) | $ | 27,474,501 | 5.39% | (f) | |||||||||||
Average Years to Maturity
| Fixed Rate Debt | 4.03 years | 4.26 years | 4.06 years | |||
| Variable Rate Debt | 4.29 years | 2.33 years | 4.15 years | |||
| All GGP Debt | 4.07 years | 4.07 years | 4.07 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 June 30, 2008 for all variable rate loans. | |
| (d) | Reconciliation to GGP Consolidated GAAP debt. |
| Consolidated | ||||
| Consolidated debt, from above | $ | 24,259,679 | ||
| Other liabilities — Special Improvement Districts | 71,049 | |||
| Minority interest ownership adjustment | 71,495 | |||
| Purchase accounting mark-to-market adjustments | 58,894 | |||
| GGP Consolidated GAAP debt | $ | 24,461,117 | ||
| (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. |
26
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. |
27
GENERAL GROWTH PROPERTIES, INC.
SECOND QUARTER 2008 FINANCING ACTIVITY
(dollars in thousands)
SECOND QUARTER 2008 FINANCING ACTIVITY
(dollars in thousands)
| Fixed Rate | Floating Rate | Total Debt | ||||||||||
March 31, 2008 * | $ | 23,321,021 | $ | 3,975,556 | $ | 27,296,577 | ||||||
| Refinancings: | ||||||||||||
| Property Related | (140,385 | ) | 60,319 | (80,066 | ) | |||||||
| Non-Property Related | 10,578 | — | 10,578 | |||||||||
| Interest rate SWAP activity | 11,609 | (11,609 | ) | — | ||||||||
| Revolver Borrowings | — | 452,600 | 452,600 | |||||||||
| Other Property Related | (58,018 | ) | (147,170 | ) | (205,188 | ) | ||||||
| Net Change | (176,216 | ) | 354,140 | 177,924 | ||||||||
June 30, 2008 * | $ | 23,144,805 | $ | 4,329,696 | $ | 27,474,501 | ||||||
| * | Includes Company’s share of debt of Unconsolidated Real Estate Affiliates. Excludes liabilities to special improvement districts, minority interest adjustment and purchase accounting mark-to-market adjustments. |
28
GENERAL GROWTH PROPERTIES, INC.
OUTSTANDING DEBT BY MATURITY DATE
CONSOLIDATED PROPERTIES
AS OF JUNE 30, 2008
(dollars in thousands)
OUTSTANDING DEBT BY MATURITY DATE
CONSOLIDATED PROPERTIES
AS OF JUNE 30, 2008
(dollars in thousands)
| FIXED RATE | ||||||||||||
| Total Debt | ||||||||||||
| Loan | Maturity Date | Rate (a) | Balance | |||||||||
Secured Asset Loans | ||||||||||||
| Grand Teton (b) | 07/11/08 | 3.69 | % | $ | 26,083 | |||||||
| Mayfair (b) | 07/11/08 | 3.17 | % | 179,034 | ||||||||
| Salem Center (b) | 07/11/08 | 3.70 | % | 25,214 | ||||||||
| Animas Valley (b) | 07/11/08 | 3.70 | % | 24,345 | ||||||||
| Pioneer Place (b) | 08/01/08 | 6.76 | %* | 165,275 | ||||||||
| Foothills (b) | 08/29/08 | 6.63 | %* | 41,918 | ||||||||
| Northtown Mall | 09/01/08 | 6.77 | % | 73,444 | ||||||||
| Chula Vista | 10/01/08 | 4.24 | % | 59,548 | ||||||||
| Pierre Bossier | 10/01/08 | 6.54 | %* | 35,918 | ||||||||
| Spring Hill | 10/01/08 | 6.61 | %* | 78,810 | ||||||||
| Tucson Mall | 10/13/08 | 4.35 | % | 119,355 | ||||||||
| Bayside | 11/03/08 | 6.00 | % | 53,713 | ||||||||
| Southwest Plaza | 11/03/08 | 6.54 | %* | 73,692 | ||||||||
| Birchwood | 11/11/08 | 6.72 | %* | 38,714 | ||||||||
| Mall of the Bluffs | 11/11/08 | 6.72 | %* | 38,714 | ||||||||
| Oakwood | 11/11/08 | 6.72 | %* | 51,619 | ||||||||
| Chico Mall | 02/11/09 | 4.89 | % | 57,807 | ||||||||
| Deerbrook | 03/02/09 | 3.59 | % | 75,591 | ||||||||
| Jordan Creek | 03/02/09 | 4.66 | % | 188,650 | ||||||||
| Southland | 03/02/09 | 3.70 | % | 82,734 | ||||||||
| Prince Kuhio | 04/01/09 | 3.57 | % | 38,513 | ||||||||
| JP Comm Sr. Austin Bluffs | 04/09/09 | 4.68 | % | 2,348 | ||||||||
| JP Comm Sr. Division Crossing | 04/09/09 | 4.52 | % | 5,412 | ||||||||
| JP Comm Sr. Fort Union | 04/09/09 | 4.60 | % | 2,825 | ||||||||
| JP Comm Sr. Halsey Crossing | 04/09/09 | 4.62 | % | 2,648 | ||||||||
| JP Comm Sr. Orem Plaza Center St | 04/09/09 | 4.61 | % | 2,525 | ||||||||
| JP Comm Sr. Orem Plaza State St | 04/09/09 | 4.73 | % | 1,563 | ||||||||
| JP Comm Sr. Riverpointe Plaza | 04/09/09 | 4.55 | % | 3,911 | ||||||||
| JP Comm Sr. Riverside Plaza | 04/09/09 | 4.52 | % | 5,597 | ||||||||
| JP Comm Sr. Woodlands Village | 04/09/09 | 4.50 | % | 7,151 | ||||||||
| Town East | 04/13/09 | 3.57 | % | 107,302 | ||||||||
| Grand Canal Shoppes | 05/01/09 | 4.86 | % | 400,070 | ||||||||
| Coastland | 06/01/09 | 6.73 | % | 98,080 | ||||||||
| The Crossroads (MI) | 06/01/09 | 7.53 | %* | 40,399 | ||||||||
| Woodbridge Corporation | 06/01/09 | 4.35 | % | 211,472 | ||||||||
| Steeplegate | 07/31/09 | 5.08 | % | 79,090 | ||||||||
| Village of Cross Keys | 07/31/09 | 7.04 | %* | 10,804 | ||||||||
| Apache | 08/03/09 | 7.05 | %* | 50,172 | ||||||||
| Cumberland | 08/10/09 | 7.14 | % | 159,469 | ||||||||
| The Parks at Arlington | 09/01/09 | 7.02 | %* | 138,533 | ||||||||
| Baybrook | 10/01/09 | 6.66 | %* | 149,528 | ||||||||
| Oakview | 10/01/09 | 7.19 | % | 116,300 | ||||||||
| Coral Ridge | 11/02/09 | 6.15 | %* | 99,586 | ||||||||
| Governor’s Square | 12/01/09 | 7.66 | %* | 58,869 | ||||||||
| Lakeside Mall | 12/01/09 | 4.37 | % | 183,351 | ||||||||
| Mall St Matthews | 01/04/10 | 4.90 | % | 146,785 | ||||||||
| North Star | 01/04/10 | 4.53 | % | 236,403 | ||||||||
| Ward Centre & Ward Entertainment | 01/04/10 | 4.44 | % | 59,271 | ||||||||
| Park Place | 01/11/10 | 5.24 | % | 179,080 | ||||||||
| Visalia | 01/11/10 | 3.89 | % | 42,774 | ||||||||
| Lansing I | 01/15/10 | 9.35 | %* | 25,035 | ||||||||
| Pecanland | 03/01/10 | 4.39 | % | 59,305 | ||||||||
| (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) | Mortgages refinanced with proceeds from $875 million first initial advance of $1.75 billion Secured Term Loan. (See General Growth Properties, Inc. Form 8-K dated July 11, 2008) |
29
GENERAL GROWTH PROPERTIES, INC.
OUTSTANDING DEBT BY MATURITY DATE
CONSOLIDATED PROPERTIES
AS OF JUNE 30, 2008
(dollars in thousands)
OUTSTANDING DEBT BY MATURITY DATE
CONSOLIDATED PROPERTIES
AS OF JUNE 30, 2008
(dollars in thousands)
| FIXED RATE | ||||||||||||
| Total Debt | ||||||||||||
| Loan | Maturity Date | Rate (a) | Balance | |||||||||
Secured Asset Loans Cont. | ||||||||||||
| Southland | 03/05/10 | 5.16 | % | $ | 110,390 | |||||||
| Providence Place | 03/11/10 | 5.22 | % | 362,199 | ||||||||
| Ridgedale | 04/01/10 | 4.96 | % | 180,858 | ||||||||
| West Valley | 04/01/10 | 3.51 | % | 58,104 | ||||||||
| Pioneer Place | 04/27/10 | 10.01 | %* | 635 | ||||||||
| Peachtree | 06/01/10 | 5.19 | % | 90,862 | ||||||||
| Coronado | 06/07/10 | 5.18 | % | 171,197 | ||||||||
| La Cantera | 06/07/10 | 5.29 | % | 129,904 | ||||||||
| Maine | 06/11/10 | 4.92 | % | 219,506 | ||||||||
| Burlington | 07/01/10 | 5.50 | % | 31,500 | ||||||||
| Glenbrook | 07/01/10 | 5.01 | % | 179,814 | ||||||||
| Regency Square | 07/01/10 | 3.68 | % | 95,727 | ||||||||
| St. Louis Galleria | 07/05/10 | 4.94 | % | 240,904 | ||||||||
| Lynnhaven | 07/06/10 | 5.18 | % | 240,352 | ||||||||
| Boise Towne Plaza | 07/09/10 | 4.88 | % | 11,110 | ||||||||
| JP Comm Jr. Gateway Crossing | 07/09/10 | 4.80 | % | 15,497 | ||||||||
| JP Comm Jr. Univ. Crossing | 07/09/10 | 4.82 | % | 11,570 | ||||||||
| Crossroads Center (MN) | 07/30/10 | 4.87 | % | 85,656 | ||||||||
| 70 Columbia Corporate Center | 10/01/10 | 10.15 | %* | 19,736 | ||||||||
| Newgate | 10/01/10 | 4.96 | % | 41,672 | ||||||||
| Park City | 10/01/10 | 5.30 | % | 151,585 | ||||||||
| Staten Island | 10/01/10 | 6.11 | %* | 282,267 | ||||||||
| Fashion Place | 10/05/10 | 5.41 | % | 146,408 | ||||||||
| 110 North Wacker | 10/11/10 | 5.14 | % | 46,128 | ||||||||
| Chapel Hills | 10/11/10 | 5.15 | % | 117,273 | ||||||||
| Gallery at Harborplace | 12/01/10 | 8.00 | % | 65,378 | ||||||||
| Rogue Valley | 12/31/10 | 7.96 | % | 26,668 | ||||||||
| Newpark | 02/01/11 | 7.58 | % | 69,097 | ||||||||
| Westlake Center | 02/01/11 | 8.00 | % | 65,901 | ||||||||
| Boise Towne Square | 02/10/11 | 6.74 | % | 71,804 | ||||||||
| 10000 West Charleston | 03/01/11 | 7.88 | %* | 22,072 | ||||||||
| North Point | 03/01/11 | 5.58 | % | 218,385 | ||||||||
| Capital | 04/01/11 | 7.52 | % | 20,560 | ||||||||
| Eden Prairie | 04/01/11 | 4.79 | % | 81,147 | ||||||||
| Gateway | 04/01/11 | 7.48 | % | 40,293 | ||||||||
| Greenwood | 04/01/11 | 7.47 | % | 45,237 | ||||||||
| Mall of Louisiana | 04/01/11 | 5.92 | % | 237,545 | ||||||||
| Beachwood Place | 04/07/11 | 5.73 | % | 243,082 | ||||||||
| Vista Ridge | 04/11/11 | 6.89 | %* | 81,620 | ||||||||
| The Woodlands | 06/13/11 | 6.02 | % | 240,000 | ||||||||
| Northridge Fashion | 07/01/11 | 7.24 | %* | 128,256 | ||||||||
| RiverTown | 07/01/11 | 7.58 | %* | 119,560 | ||||||||
| Willowbrook Mall | 07/01/11 | 6.92 | % | 160,813 | ||||||||
| Collin Creek Mall | 07/11/11 | 6.87 | % | 67,945 | ||||||||
| Ala Moana | 09/01/11 | 5.67 | % | 1,500,000 | ||||||||
| Bayshore | 09/01/11 | 7.20 | %* | 31,460 | ||||||||
| 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 | %* | 4,391 | ||||||||
| Eastridge (WY ) | 12/05/11 | 5.20 | % | 39,738 | ||||||||
| Pine Ridge | 12/05/11 | 5.22 | % | 26,792 | ||||||||
| Red Cliffs | 12/05/11 | 5.25 | % | 25,465 | ||||||||
| Three Rivers | 12/05/11 | 5.24 | % | 21,813 | ||||||||
| (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. |
30
GENERAL GROWTH PROPERTIES, INC.
OUTSTANDING DEBT BY MATURITY DATE
CONSOLIDATED PROPERTIES
AS OF JUNE 30, 2008
(dollars in thousands)
OUTSTANDING DEBT BY MATURITY DATE
CONSOLIDATED PROPERTIES
AS OF JUNE 30, 2008
(dollars in thousands)
| FIXED RATE | ||||||||||||
| Total Debt | ||||||||||||
| Loan | Maturity Date | Rate (a) | Balance | |||||||||
Secured Asset Loans Cont. | ||||||||||||
| Hulen Mall | 12/07/11 | 5.14 | % | $ | 114,698 | |||||||
| Provo Mall | 04/05/12 | 5.91 | % | 41,170 | ||||||||
| Spokane Valley Mall | 04/05/12 | 5.91 | % | 41,170 | ||||||||
| Streets at Southpoint | 04/06/12 | 5.45 | % | 243,824 | ||||||||
| Oviedo | 05/07/12 | 5.24 | % | 52,554 | ||||||||
| Sikes Senter | 06/01/12 | 5.32 | % | 62,234 | ||||||||
| Buckland Hills | 07/02/12 | 5.01 | % | 167,391 | ||||||||
| Oglethorpe | 07/02/12 | 4.99 | % | 143,441 | ||||||||
| Valley Plaza | 07/11/12 | 3.98 | % | 97,143 | ||||||||
| White Marsh | 09/01/12 | 5.68 | %* | 187,000 | ||||||||
| Corporate Pointe | 09/11/12 | 6.83 | %* | 9,166 | ||||||||
| Grand Traverse | 10/01/12 | 5.12 | % | 86,500 | ||||||||
| The Mall in Columbia | 10/01/12 | 5.87 | %* | 400,000 | ||||||||
| Harborplace | 10/05/12 | 5.95 | % | 50,000 | ||||||||
| Fox River | 12/03/12 | 6.06 | % | 195,000 | ||||||||
| Ivanhoe Capital | 12/03/12 | 5.82 | % | 93,713 | ||||||||
| Columbia Mall (MO) | 02/01/13 | 6.18 | % | 90,000 | ||||||||
| Market Place | 02/01/13 | 6.16 | % | 106,000 | ||||||||
| Homart I | 02/28/13 | 6.03 | % | 245,115 | ||||||||
| Gateway Overlook | 03/01/13 | 5.91 | % | 55,000 | ||||||||
| Faneuil Hall | 04/01/13 | 5.66 | % | 95,272 | ||||||||
| Lincolnshire Commons | 04/01/13 | 6.14 | % | 28,000 | ||||||||
| Pembroke | 04/11/13 | 5.06 | % | 132,283 | ||||||||
| Fallbrook | 06/03/13 | 6.26 | % | 85,000 | ||||||||
| Oxmoor | 06/03/13 | 6.95 | % | 57,598 | ||||||||
| 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 | % | 12,134 | ||||||||
| The Boulevard | 07/01/13 | 4.35 | % | 109,625 | ||||||||
| 1160/80 Town Center | 07/15/13 | 6.99 | %* | 9,216 | ||||||||
| The Meadows | 08/01/13 | 5.57 | % | 104,303 | ||||||||
| West Oaks | 08/01/13 | 5.36 | % | 70,884 | ||||||||
| Moreno Valley | 09/11/13 | 6.07 | % | 88,000 | ||||||||
| Lakeland | 10/01/13 | 5.24 | % | 55,786 | ||||||||
| Bay City | 12/02/13 | 5.44 | % | 24,486 | ||||||||
| Four Seasons | 12/11/13 | 5.68 | % | 102,568 | ||||||||
| Valley Hills | 03/05/14 | 4.82 | % | 57,786 | ||||||||
| Washington Park | 04/01/14 | 5.56 | % | 12,276 | ||||||||
| Brass Mill | 04/11/14 | 4.63 | % | 126,602 | ||||||||
| Bayside Bond | 07/01/14 | 6.00 | % | 7,555 | ||||||||
| Mall St Vincent | 07/07/14 | 6.44 | % | 49,000 | ||||||||
| Paramus Park | 10/01/15 | 4.97 | % | 105,596 | ||||||||
| Eagle Ridge | 10/12/15 | 5.54 | % | 48,200 | ||||||||
| Knollwood | 10/12/15 | 5.47 | % | 40,470 | ||||||||
| Bellis Fair | 02/15/16 | 7.34 | %* | 63,087 | ||||||||
| Lakeview Square | 03/01/16 | 5.93 | % | 41,819 | ||||||||
| Country Hills | 06/01/16 | 6.21 | % | 13,675 | ||||||||
| Providence Place | 07/01/16 | 7.76 | %* | 27,699 | ||||||||
| Northgate | 09/01/16 | 6.00 | % | 45,527 | ||||||||
| Piedmont | 09/06/16 | 6.10 | % | 34,282 | ||||||||
| Southlake | 12/05/17 | 6.55 | % | 100,000 | ||||||||
| Baltimore Center Garage | 06/01/18 | 6.05 | %* | 17,160 | ||||||||
| 10450 West Charleston | 12/31/18 | 6.84 | %* | 4,835 | ||||||||
| Providence Place | 06/30/28 | 7.76 | %* | 19,855 | ||||||||
| Houston Land Notes | 2017-2033 | 6.50 | %* | 24,913 | ||||||||
| Provo Land Loan | 08/01/95 | 10.08 | %* | 2,250 | ||||||||
| (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 JUNE 30, 2008
(dollars in thousands)
OUTSTANDING DEBT BY MATURITY DATE
CONSOLIDATED PROPERTIES
AS OF JUNE 30, 2008
(dollars in thousands)
| VARIABLE RATE | ||||||||||||
| Loan | Maturity Date | Rate (a)(b) | Total Debt Balance | |||||||||
Corporate Debt | ||||||||||||
| TRCLP Property Note | 12/01/08 | 6.94 | %* | $ | 58,000 | |||||||
| Insurance Financing - 1 | 03/01/09 | 3.71 | %* | 9,796 | ||||||||
| Insurance Financing - 3 | 04/01/09 | 3.71 | %* | 318 | ||||||||
| TRCLP Public Indenture | 03/16/09 | 3.63 | %* | 395,000 | ||||||||
| TRCLP Public Indenture | 04/30/09 | 8.00 | %* | 200,000 | ||||||||
| Insurance Financing - 2 | 09/01/10 | 3.59 | %* | 465 | ||||||||
| Exchangeable Senior Notes | 04/15/12 | 4.15 | %* | 1,550,000 | ||||||||
| Public Indenture - Company Debt | 09/17/12 | 7.20 | %* | 400,000 | ||||||||
| TRCLP Senior Notes | 05/01/13 | 6.91 | %* | 798,277 | ||||||||
| TRCLP Public Indenture | 11/26/13 | 5.38 | %* | 450,000 | ||||||||
Total Consolidated Fixed Rate Debt | $ | 20,240,942 | ||||||||||
Secured Asset Loans | ||||||||||||
| Senior Bridge Loan (c) | 07/06/08 | 3.92 | % | $ | 375,000 | |||||||
| Fashion Show | 11/28/08 | 5.24 | % | 650,000 | ||||||||
| Palazzo | 11/28/08 | 5.41 | % | 250,000 | ||||||||
| Oakwood Center | 02/09/09 | 4.23 | % | 95,000 | ||||||||
| Westlake Land | 11/02/21 | 11.82 | % | 2,437 | ||||||||
Unsecured Asset Loans | ||||||||||||
| Credit Agreement Revolver | 02/24/11 | 3.89 | % | 452,600 | ||||||||
| Credit Agreement Term Loan | 02/24/11 | 3.82 | % | 1,987,500 | ||||||||
| Trust Preferred Shares | 04/30/36 | 4.58 | % | 206,200 | ||||||||
Total Consolidated Variable Rate Debt | $ | 4,018,737 | ||||||||||
Total Consolidated Debt & Swaps | 5.33 | % | $ | 24,259,679 | ||||||||
| (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 June 30, 2008. | |
| (c) | Refinanced with proceeds from $875 million first initial advance of $1.75 billion Secured Term Loan. (See General Growth Properties, Inc. Form 8-K dated July 11, 2008) |
32
GENERAL GROWTH PROPERTIES, INC.
OUTSTANDING DEBT BY MATURITY DATE AT SHARE
UNCONSOLIDATED PROPERTIES
AS OF JUNE 30, 2008
(dollars in thousands)
OUTSTANDING DEBT BY MATURITY DATE AT SHARE
UNCONSOLIDATED PROPERTIES
AS OF JUNE 30, 2008
(dollars in thousands)
| FIXED RATE | ||||||||||||||||
| Company | ||||||||||||||||
| Loan | Maturity Date | Rate (a) | Total Debt | Pro Rata Share | ||||||||||||
Secured Asset Loans | ||||||||||||||||
| Neshaminy | 07/01/08 | 6.76 | %* | 60,000 | $ | 30,000 | ||||||||||
| Woodlands Community | 07/25/08 | 4.81 | % | 1,929 | 1,013 | |||||||||||
| Towson Town Center | 11/10/08 | 6.84 | % | 128,599 | 45,010 | |||||||||||
| Woodlands Community | 02/23/09 | 3.80 | % | 434 | 228 | |||||||||||
| Perimeter Shopping Center | 05/01/09 | 6.77 | %* | 117,680 | 58,840 | |||||||||||
| Mizner Park | 07/01/09 | 5.09 | % | 58,225 | 29,113 | |||||||||||
| Carolina Place | 01/11/10 | 4.70 | % | 159,697 | 80,647 | |||||||||||
| Alderwood | 07/06/10 | 5.03 | % | 289,872 | 146,386 | |||||||||||
| Christiana Mall | 08/02/10 | 4.61 | %* | 114,209 | 57,105 | |||||||||||
| Water Tower Place | 09/01/10 | 5.04 | % | 174,135 | 89,932 | |||||||||||
| Woodlands Community | 09/01/10 | 7.22 | % | 8,101 | 4,253 | |||||||||||
| Whalers | 11/08/10 | 5.63 | % | 106,142 | 65,133 | |||||||||||
| Kenwood Towne Centre | 12/01/10 | 5.58 | % | 239,760 | 168,701 | |||||||||||
| Willowbrook | 04/01/11 | 7.00 | %* | 92,428 | 46,214 | |||||||||||
| Silver City Galleria | 06/10/11 | 4.95 | % | 131,619 | 65,810 | |||||||||||
| Austin Mall (Highland) | 07/08/11 | 6.92 | % | 65,253 | 32,627 | |||||||||||
| Village of Merrick Park | 08/08/11 | 5.94 | % | 190,689 | 76,276 | |||||||||||
| Northbrook Court | 09/01/11 | 7.17 | %* | 89,912 | 45,405 | |||||||||||
| Montclair | 09/12/11 | 5.88 | % | 265,000 | 133,825 | |||||||||||
| Arrowhead | 10/03/11 | 6.92 | %* | 77,808 | 25,933 | |||||||||||
| First Colony | 10/03/11 | 5.68 | % | 190,924 | 95,462 | |||||||||||
| Riverchase | 10/03/11 | 5.78 | % | 305,000 | 152,500 | |||||||||||
| Natick Mall | 10/07/11 | 5.74 | % | 350,000 | 175,000 | |||||||||||
| Natick West | 10/07/11 | 5.82 | % | 140,000 | 70,000 | |||||||||||
| 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 | % | 97,844 | 69,066 | |||||||||||
| Glendale Galleria | 10/01/12 | 5.01 | % | 384,191 | 192,095 | |||||||||||
| Oakbrook | 10/01/12 | 5.12 | %* | 218,180 | 103,547 | |||||||||||
| Clackamas | 10/05/12 | 6.35 | % | 200,000 | 100,000 | |||||||||||
| The Oaks | 12/03/12 | 5.85 | % | 102,000 | 52,020 | |||||||||||
| Westroads | 12/03/12 | 5.84 | % | 89,250 | 45,518 | |||||||||||
| Stonebriar | 12/11/12 | 5.30 | % | 169,605 | 84,802 | |||||||||||
| Bridgewater Commons | 01/02/13 | 5.27 | %* | 137,126 | 47,994 | |||||||||||
| Altamonte | 02/01/13 | 5.20 | %* | 150,000 | 75,000 | |||||||||||
| Quail Springs | 06/05/15 | 6.87 | % | 75,000 | 37,500 | |||||||||||
| CenterPointe Village | 01/02/17 | 6.38 | %* | 13,750 | 6,875 | |||||||||||
| Turkey — ECE | 01/01/18 | 6.72 | % | 126,361 | 61,917 | |||||||||||
| Trails Village Center | 07/10/23 | 8.24 | %* | 16,284 | 8,142 | |||||||||||
| Lake Meade Blvd & Buffalo Part | 07/15/23 | 7.30 | %* | 5,949 | 2,974 | |||||||||||
Total Unconsolidated Fixed Rate Debt | $ | 2,903,863 | ||||||||||||||
| (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. |
33
GENERAL GROWTH PROPERTIES, INC.
SUMMARY OF OUTSTANDING DEBT BY MATURITY DATE AT SHARE
UNCONSOLIDATED PROPERTIES
AS OF JUNE 30, 2008
(dollars in thousands)
SUMMARY OF OUTSTANDING DEBT BY MATURITY DATE AT SHARE
UNCONSOLIDATED PROPERTIES
AS OF JUNE 30, 2008
(dollars in thousands)
| VARIABLE RATE | ||||||||||||||||
| Company | ||||||||||||||||
| Loan | Maturity Date | Rate (a)(b) | Total Debt | Pro Rata Share | ||||||||||||
Secured Asset Loans | ||||||||||||||||
| Woodlands Community | 07/09/08 | 5.07 | % | $ | 101 | $ | 53 | |||||||||
| Woodlands Community | 10/30/08 | 5.54 | % | 29,680 | 15,582 | |||||||||||
| Woodlands Community | 07/01/09 | 3.81 | %* | 4,768 | 2,503 | |||||||||||
| Woodlands Credit Agreement | 08/29/09 | 4.47 | % | 306,539 | 160,933 | |||||||||||
| Woodlands Community | 12/01/09 | 6.00 | %* | 1,705 | 895 | |||||||||||
| Woodlands Community | 01/01/10 | 6.23 | %* | 6,545 | 3,436 | |||||||||||
| Woodlands Community | 05/01/10 | 3.61 | %* | 30,559 | 16,043 | |||||||||||
| Woodlands Community | 06/01/10 | 4.22 | % | 2,422 | 1,272 | |||||||||||
| Woodlands Community | 07/01/10 | 6.00 | %* | 482 | 253 | |||||||||||
| Woodlands Community | 12/01/10 | 3.66 | % | 7,609 | 3,995 | |||||||||||
| Superstition Springs | 09/09/11 | 3.32 | % | 67,500 | 22,498 | |||||||||||
| Brazil — Aliansce | 2008-2015 | 13.73 | % | 170,401 | 83,496 | |||||||||||
Total Unconsolidated Variable Rate Debt | $ | 310,959 | ||||||||||||||
Total Unconsolidated Debt | 5.79 | % | $ | 3,214,822 | ||||||||||||
Total Debt & Swaps | 5.39 | % | $ | 27,474,501 | ||||||||||||
| (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 June 30, 2008. |
34
Supplemental Operational Data
GENERAL GROWTH PROPERTIES, INC.
OPERATING STATISTICS, CERTAIN FINANCIAL INFORMATION & TOP TENANTS (a)
AS OF JUNE 30, 2008
OPERATING STATISTICS, CERTAIN FINANCIAL INFORMATION & TOP TENANTS (a)
AS OF JUNE 30, 2008
| Consolidated | Unconsolidated | Company | ||||||||||
| Retail | Retail | Retail | ||||||||||
| OPERATING STATISTICS (b) | Properties | Properties | Portfolio (c) | |||||||||
| Occupancy | 93.0 | % | 94.1 | % | 93.2 | % | ||||||
| Trailing 12 month total tenant sales per sq. ft. | $ | 442 | $ | 517 | $ | 459 | ||||||
| % change in total sales (d) | -0.5 | % | 0.8 | % | 0.0 | % | ||||||
| % change in comparable sales (d) | 0.8 | % | 0.0 | % | 0.8 | % | ||||||
| Mall and freestanding GLA (in sq. ft.) | 49,255,104 | 14,075,992 | 63,331,096 | |||||||||
CERTAIN FINANCIAL INFORMATION | ||||||||||||
| Average annualized in place sum of rent and recoverable common area costs per sq. ft. (e) (f) | $ | 45.24 | $ | 54.02 | ||||||||
| Average sum of rent and recoverable common area costs per sq. ft. for new/renewal leases (e) (f) | $ | 37.85 | $ | 53.81 | ||||||||
| Average sum of rent and recoverable common area cost per sq. ft. for leases expiring in 2008 (e) (f) | $ | 33.68 | $ | 47.51 | ||||||||
| Three month percentage change in comparable real estate property net operating income (versus prior year comparable period) (g) | 2.6 | % | 7.9 | % | ||||||||
| Percent of | ||||
| Minimum Rents, | ||||
| Tenant Recoveries | ||||
| TOP TEN LARGEST TENANTS (COMPANY RETAIL PORTFOLIO) | and Other | |||
| Tenant (including subsidiaries) | ||||
| Gap, Inc. | 2.7 | % | ||
| Limited Brands, Inc. | 2.3 | |||
| Foot Locker, Inc. | 2.1 | |||
| Abercrombie & Fitch Co. | 2.0 | |||
| Macy’s Inc. | 1.4 | |||
| American Eagle Outfitters, Inc. | 1.3 | |||
| J.C. Penney Company, Inc. | 1.3 | |||
| Express, LLC | 1.1 | |||
| Luxottica Group S.P.A. | 1.1 | |||
| Genesco, Inc. | 1.0 | |||
| (a) | Excludes all international operations which combined represent approximately 1% of segment basis real estate property net operating income. Also excludes community centers. | |
| (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. | |
| 2007 data previously reported one month behind the reporting date due to tenant (d) reporting timelines, but has been adjusted in 2008 for comparability. | ||
| (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. |
35
GENERAL GROWTH PROPERTIES, INC.
RETAIL PORTFOLIO GLA, OCCUPANCY, SALES & RENT DATA (a)
RETAIL PORTFOLIO GLA, OCCUPANCY, SALES & RENT DATA (a)
GLA as of June 30, 2008
| Total Mall/ | Avg. Mall/ | |||||||||||||||||||
| Total Anchor GLA | Avg. Anchor GLA | Freestanding GLA | Freestanding GLA | Total GLA | ||||||||||||||||
| Consolidated | 78,646,191 | 510,690 | 50,947,697 | 330,829 | 129,593,888 | |||||||||||||||
| Unconsolidated | 22,802,167 | 651,490 | 14,867,412 | 424,783 | 37,669,579 | |||||||||||||||
Company | 101,448,358 | 536,764 | 65,815,109 | 348,228 | 167,263,467 | |||||||||||||||
% of Total | 60.7 | % | 39.3 | % | 100.0 | % | ||||||||||||||
Occupancy History
| Consolidated | Unconsolidated | Company | ||||||||||
| 6/30/2008 | 93.0 | % | 94.1 | % | 93.2 | % | ||||||
| 6/30/2007 | 92.6 | % | 93.8 | % | 92.9 | % | ||||||
| 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 | % | ||||||
Trailing 12 Month Total Tenant Sales per Square Foot
| Consolidated | Unconsolidated | Company | ||||||||||
| 6/30/2008 | $ | 442 | $ | 517 | $ | 459 | ||||||
| 6/30/2007 | 444 | 513 | 459 | |||||||||
| 12/31/2007 (b) | 444 | 521 | 462 | |||||||||
| 12/31/2006 (b) | 443 | 473 | 453 | |||||||||
| 12/31/2005 (b) | 428 | 455 | 437 | |||||||||
| 12/31/2004 (b) | 402 | 427 | 410 | |||||||||
Average in Place Sum of Rent and Recoverable Common Area Costs (at 100%) (c)
| Consolidated | Unconsolidated | |||||||
| 6/30/2008 | $ | 45.24 | $ | 54.02 | ||||
| 6/30/2007 | 43.63 | 48.58 | ||||||
| 12/31/2007 | 44.90 | 53.35 | ||||||
Sum of Rent and Recoverable Common Area Cost Rates (at 100%) (c)
| Year to Date | Full Year | Rent | ||||||||||
| New/Renewals | Expirations | Spread | ||||||||||
Consolidated | ||||||||||||
| 6/30/2008 | $ | 37.85 | $ | 33.68 | $ | 4.17 | ||||||
| 6/30/2007 | 39.02 | 31.38 | 7.64 | |||||||||
| 12/31/2007 | 39.64 | 31.38 | 8.26 | |||||||||
Unconsolidated | ||||||||||||
| 6/30/2008 | $ | 53.81 | $ | 47.51 | $ | 6.30 | ||||||
| 6/30/2007 | 45.45 | 37.95 | 7.50 | |||||||||
| 12/31/2007 | 50.17 | 37.95 | 12.22 | |||||||||
Occupancy Cost as a % of Sales (b)
| Consolidated | Unconsolidated | Company | ||||||||||
| 6/30/2008 | 12.9 | % | 12.6 | % | 12.8 | % | ||||||
| 6/30/2007 | 12.6 | % | 12.3 | % | 12.5 | % | ||||||
| 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 | % | ||||||
| (a) | Excludes all international operations which combined represent approximately 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) | 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. |
36
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)
| Six Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2008 | % of Total | 2007 | % of Total | |||||||||||||
West | ||||||||||||||||
| Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming | $ | 452,949 | 35.9 | % | $ | 409,071 | 35.9 | % | ||||||||
North Central | ||||||||||||||||
| Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Wisconsin | 142,147 | 11.3 | % | 131,502 | 11.5 | % | ||||||||||
South Central | ||||||||||||||||
| Arkansas, Louisiana, Oklahoma, Texas | 147,660 | 11.7 | % | 144,175 | 12.7 | % | ||||||||||
Northeast | ||||||||||||||||
| Connecticut, Delaware, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia | 335,432 | 26.6 | % | 306,141 | 26.9 | % | ||||||||||
Southeast | ||||||||||||||||
| Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee | 169,425 | 13.3 | % | 141,763 | 12.4 | % | ||||||||||
International | 14,883 | 1.2 | % | 2,660 | 0.2 | % | ||||||||||
Corporate and Other (a) | 401 | 0.0 | % | 3,685 | 0.4 | % | ||||||||||
TOTAL | $ | 1,262,897 | 100.0 | % | $ | 1,138,997 | 100.0 | % | ||||||||
| (a) | Represents miscellaneous items that are included in the Total Retail and Other NOI line item that are not specifically related to property operations. |
37
GENERAL GROWTH PROPERTIES, INC.
LEASE EXPIRATION SCHEDULE AND LEASE TERMINATION INCOME AT SHARE
AS OF JUNE 30, 2008
(in thousands)
LEASE EXPIRATION SCHEDULE AND LEASE TERMINATION INCOME AT SHARE
AS OF JUNE 30, 2008
(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 and | |||||||||||||||||||||
| Recoverable | Recoverable | Recoverable | Recoverable | |||||||||||||||||||||
| Common Area | Square | Common Area | Common Area | Square | Common Area | |||||||||||||||||||
| Costs | Footage | Costs/Sq. Ft. | Costs | Footage | Costs/Sq. Ft. | |||||||||||||||||||
2008 (d) | $ | 94,986 | 2,578 | $ | 36.84 | $ | 16,261 | 307 | $ | 52.97 | ||||||||||||||
2009 | 208,034 | 5,303 | 39.23 | 23,807 | 513 | 46.41 | ||||||||||||||||||
2010 | 217,307 | 4,723 | 46.01 | 23,429 | 411 | 57.00 | ||||||||||||||||||
2011 | 182,677 | 3,852 | 47.42 | 30,013 | 497 | 60.39 | ||||||||||||||||||
2012 | 213,373 | 3,951 | 54.00 | 29,232 | 481 | 60.77 | ||||||||||||||||||
2013 | 172,379 | 3,180 | 54.21 | 27,975 | 432 | 64.76 | ||||||||||||||||||
2014 | 169,294 | 2,936 | 57.66 | 25,181 | 354 | 71.13 | ||||||||||||||||||
2015 | 191,885 | 3,137 | 61.17 | 39,869 | 588 | 67.80 | ||||||||||||||||||
2016 | 199,033 | 3,090 | 64.41 | 47,556 | 688 | 69.12 | ||||||||||||||||||
2017 | 205,829 | 3,048 | 67.53 | 56,715 | 727 | 78.01 | ||||||||||||||||||
Subsequent | 288,333 | 4,516 | 63.85 | 75,781 | 1,143 | 66.30 | ||||||||||||||||||
Total at Share | $ | 2,143,130 | 40,314 | $ | 53.16 | $ | 395,819 | 6,141 | $ | 64.46 | ||||||||||||||
All Expirations | $ | 2,143,130 | 40,314 | $ | 53.16 | $ | 816,346 | 12,581 | $ | 64.89 | ||||||||||||||
Retail Lease Termination Income at Share
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Consolidated | $ | 6,522 | $ | 3,048 | $ | 24,969 | $ | 5,353 | ||||||||
Unconsolidated | 955 | 469 | 3,514 | 1,900 | ||||||||||||
Total Termination Income at Share | $ | 7,477 | $ | 3,517 | $ | 28,483 | $ | 7,253 | ||||||||
| (a) | Excludes leases on anchors of 30,000 square feet or more and tenants paying percentage rent in lieu of base minimum rent. | |
| (b) | Excludes all international operations which combined represent approximately 1% of segment basis real estate property net operating income. Also excludes community centers. | |
| (c) | Unconsolidated at share reflect the Company’s interest in the properties owned by the Unconsolidated Real Estate Affiliates. | |
| (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. |
38
Expansions, Re-developments & New Developments
GENERAL GROWTH PROPERTIES, INC.
ESTIMATED DEVELOPMENT COST SUMMARY
AS OF JUNE 30, 2008
(in millions at share)
ESTIMATED DEVELOPMENT COST SUMMARY
AS OF JUNE 30, 2008
(in millions at share)
Development Summary (a) | ||||
| Expansion & re-development projects | $ | 959.1 | ||
| New development projects (b) | 939.5 | |||
| Total expansion, re-development & new development projects | 1,898.6 | |||
Less Expenditures On Active Projects | ||||
| Expansion & re-development projects | $ | 340.9 | ||
| New development projects | 528.4 | |||
| Total expenditures on active projects | 869.3 | |||
| Estimated future development spending | $ | 1,029.3 | ||
| (a) | Projects listed (per detail on pages 40 and 41) are those that have begun construction or are anticipated to begin construction in the next 18 months. | |
| (b) | Excludes international projects. No incremental GGP funding currently expected. |
39
GENERAL GROWTH PROPERTIES, INC.
EXPANSIONS & RE-DEVELOPMENTS *
EXPANSIONS & RE-DEVELOPMENTS *
Definitive Projects
| Forecasted Cost (in | Projected | |||||||||||||
| Property | Description | Ownership % | millions at share) | Opening | ||||||||||
Mondawmin Mall Baltimore, MD | Addition of Target, big box retail, restaurants and mall shop re-development | 100 | % | $ | 60.3 | Q4 2008 | ||||||||
Montclair Plaza | Nordstrom and mall renovation | 50 | % | 27.4 | Q4 2008 | |||||||||
| Montclair, CA | ||||||||||||||
Saint Louis Galleria | Addition of Nordstrom and mall shop GLA | 100 | % | 62.7 | Q2 2010 | |||||||||
| Saint Louis, MO | ||||||||||||||
Towson Town Center Towson, MD | Mall Shop renovation and expansion including Crate & Barrel and additional restaurants | 35 | % | 38.4 | Q4 2008 | |||||||||
Tucson Mall | Lifestyle expansion | 100 | % | 63.2 | Q2 2009 | |||||||||
| Tucson, AZ | ||||||||||||||
Ward Centers Honolulu, HI | Addition of Whole Foods, parking structure and other retail space | 100 | % | 131.8 | Q2 2009 | |||||||||
Water Tower Place | American Girl and mall shop re-development | 52 | % | 35.3 | Q4 2008 | |||||||||
| Chicago, IL | ||||||||||||||
| Current estimated additional costs to be incurred on recently opened re-development projects | 155.5 | |||||||||||||
| Costs incurred and/or anticipated for 41 other re-development projects including those listed below | 384.5 | |||||||||||||
| Total expansion & re-development projects | $ | 959.1 | ||||||||||||
Planned Projects
| Property | Description | Ownership % | ||||||||||||
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 Murray, UT | Nordstrom, mall shop and streetscape GLA expansion, and interior mall renovation | 100 | % | |||||||||||
| * | Projects listed are those that have begun construction or are anticipated to begin construction in the next 18 months. |
40
GENERAL GROWTH PROPERTIES, INC.
NEW DEVELOPMENTS (a)
NEW DEVELOPMENTS (a)
Definitive Projects
| Forecasted Cost (in | Projected | |||||||||
| Property | Description | millions at share) | Opening | |||||||
Elk Grove Promenade Elk Grove, CA | 1.1 million sf open air lifestyle center with retail, entertainment and big box components | $ | 239.1 | Q4 2010 | ||||||
Natick | Addition of 59 thousand sf streetscape and parking deck | 54.7 | Q1 2009 | |||||||
| Natick, MA | ||||||||||
| Nouvelle at Natick - luxury condominiums | 167.7 | (b | ) | |||||||
Pinnacle Hills South | Target, restaurants, and additional retail | 10.1 | Q2 2009 | |||||||
| Rogers, AR | ||||||||||
The Shops at La Cantera San Antonio, TX | Phase II of The Shops at La Cantera including Barnes and Noble, restaurants, mall shop and office space | 90.5 | Q4 2008 | |||||||
| Current estimated additional costs to be incurred on recently opened new development projects | 85.5 | |||||||||
| Current approved costs for other new development projects including those listed below | 291.9 | |||||||||
| Total new development projects (c) | $ | 939.5 | ||||||||
Planned Projects
| Property | Description | Ownership % | ||||||||
Bridges at Mint Hill Charlotte, NC | Shopping center anchored by Belks and two other department stores | 100 | % | |||||||
High Street at Echelon Las Vegas, NV | 300 thousand sf retail promenade as part of an 87-acre resort master plan development on the Las Vegas strip | 50 | % | |||||||
The Shops at Summerlin CentreSM Las Vegas, NV | New retail development of 106 acres in the Summerlin community; project could be expanded in subsequent years | 100 | % | |||||||
| (a) | Projects listed separately are those that have begun construction or are anticipated to begin construction in the next 18 months. | |
| (b) | Anticipated sales period Q4 2008 — Q3 2011. | |
| (c) | Excludes international projects. No incremental GGP funding currently expected. |
41