Exhibit 99.1
General Growth Properties, Inc. Reports Results
CHICAGO--(BUSINESS WIRE)--Feb. 8, 2005--General Growth Properties,
Inc. (NYSE: GGP) today announced the release of 2004's fourth quarter
and year-end results. Earnings per share - diluted (EPS) were $.41 for
the fourth quarter of 2004 as compared to $.46 in the fourth quarter
of 2003. For the full year, EPS was $1.21 in 2004 as compared to $1.22
in 2003. Fully diluted Funds from Operations per share (FFO) were $.90
for the fourth quarter of 2004, a 20.0% increase over $.75 reported in
the comparable period of 2003. For the full year, FFO per fully
diluted share was $2.77, up 19.9% from $2.31 reported in 2003.
"2004 was an historic year for our Company, filled with great
accomplishment," said John Bucksbaum, chief executive officer, General
Growth Properties. "We closed the merger with The Rouse Company in
November - adding some of the highest quality retail properties in
America. The addition of the Rouse assets and its talented people to
General Growth will allow us to generate industry leading growth and
deliver recurring profitability to our shareholders for many years to
come."
FINANCIAL AND OPERATIONAL HIGHLIGHTS
-- EPS in the fourth quarter of 2004 was $.41 per share, versus
$.46 in the comparable period of 2003. For the full year, EPS
was $1.21 as compared to $1.22 in 2003.
-- Fully diluted FFO per share increased to $.90 in the fourth
quarter of 2004, 20.0% above $.75 reported in the fourth
quarter of 2003. FFO per fully diluted share for 2004 was a
record $2.77, up 19.9% from $2.31 in 2003. Total FFO for the
quarter increased 23.7% to $254.6 million, from $205.9 million
in 2003's fourth quarter. The effects of non-cash rental
revenue recognized pursuant to SFAS No. 141 and 142 resulted
in approximately $9.8 million or $.03 of FFO per fully diluted
share in the fourth quarter of 2004 as compared to $4.5
million or $.02 in the comparable period of 2003.
Straight-line rent resulted in approximately $7.3 million or
$.03 of FFO per fully diluted share in the fourth quarter of
2004, versus $3.4 million or $.01 in the same period of 2003.
-- FFO Guidance for 2005 is currently estimated to be $3.13 per
share. The Company expects to update this estimate in
conjunction with its quarterly earnings releases in 2005.
-- Real estate property net operating income (NOI) for the fourth
quarter of 2004 increased to $501.4 million, 50.4% above the
$333.4 million reported in the fourth quarter of 2003. For the
full year, NOI increased 28.8% to $1.43 billion, up from $1.11
billion in 2003.
-- Property revenues from consolidated properties were $645.4
million for the quarter, an increase of 78.8%, compared to
$361.0 million for the same period in 2003. For the twelve
months ended December 31, 2004, revenues from consolidated
properties were $1.72 billion, up 45.8% from $1.18 billion in
2003.
Property revenues from unconsolidated properties at share
increased 71.4% to $195.1 million, compared to $113.8 million
in the fourth quarter of 2003. For the full year, revenues
from unconsolidated properties at share were $495.6 million,
up 11.7% from $443.5 million in 2003.
-- Total tenant sales increased 6.1% in 2004, and comparable
tenant sales increased 4.3% versus 2003.
-- Comparable NOI from consolidated properties in the fourth
quarter of 2004 increased by 8.0% compared to the same period
last year.
Comparable NOI from unconsolidated properties at share for the
quarter increased by approximately 3.5% compared to the fourth
quarter of 2003.
-- Mall shop occupancy increased to 92.1% at December 31, 2004,
compared to 91.3% at December 31, 2003.
-- Sales per square foot for 2004 were $410 versus $351 in 2003.
-- Average rent
For consolidated properties, average rent per square foot for
new/renewal leases signed during 2004 was $33.53 versus $31.83
for 2003. For unconsolidated properties, average rent per
square foot for new/renewal leases signed in 2004 was $36.45
versus $34.71 for 2003. Average rent for consolidated
properties leases expiring in 2004 was $25.69 versus $22.16 in
2003. For unconsolidated properties, average rent for leases
expiring in 2004 was $32.35 compared to $31.29 in 2003.
-- The Rouse Company
The Company completed the merger with The Rouse Company on
November 12, 2004. The 2004 financial and operational
highlights, with the exception of average rent and comparable
NOI, include the effect of this transaction. The financial
information included is based on management's current
determination of the required purchase accounting adjustments
arising from the Rouse transaction. These adjustments are
subject to change. As the operations of the master-planned
communities acquired in the Rouse transaction are managed
separately and now represent a different line of business for
General Growth Properties, the Company has presented for 2004
and will continue to present its operations in two business
segments, Retail and Other, and Community Development.
-- Discontinued operations
In early November 2004, the Company sold a group of non-retail
assets that were obtained in the July 2002 acquisition of JP
Realty, Inc. for a sales price of approximately $67 million.
As required by generally accepted accounting principles, the
operations of these assets have been classified as
discontinued operations. Certain amounts for 2003 have been
reclassified to conform to this presentation.
CONFERENCE CALL/WEBCAST
General Growth will host a live webcast of its conference call
regarding this announcement on the Company's web site,
www.generalgrowth.com. This webcast will take place on Tuesday,
February 8, 2005 at 10:00 a.m., Eastern Time (9:00 a.m. CT, 7:00 a.m.
PT). The webcast can be accessed by selecting the conference call icon
on the GGP home page.
General Growth Properties, Inc. is the second largest U.S.-based
publicly traded Real Estate Investment Trust (REIT). General Growth
currently has ownership interest and management responsibility for a
portfolio of 209 regional shopping malls in 44 states, as well as
ownership in planned community developments and commercial office
buildings. The company portfolio totals approximately 200 million
square feet of retail space and includes over 18,000 retailers
nationwide. General Growth Properties, Inc. is listed on the New York
Stock Exchange under the symbol GGP. For more information, please
visit the company web site at http://www.generalgrowth.com.
NON-GAAP SUPPLEMENTAL FINANCIAL MEASURES AND DEFINITIONS FUNDS
FROM OPERATIONS (FFO)
General Growth, consistent with real estate industry and
investment community preferences, uses FFO as a supplemental measure
of operating performance for a real estate investment trust (REIT).
The National Association of Real Estate Investment Trusts (NAREIT)
defines FFO as net income (loss) (computed in accordance with
Generally Accepted Accounting Principles (GAAP)), excluding gains (or
losses) from cumulative effects of accounting changes, extraordinary
items and sales of properties, plus real estate related depreciation
and amortization and after adjustments for unconsolidated partnerships
and joint ventures.
The Company considers FFO a supplemental measure for equity REITs
and a complement to GAAP measures because it facilitates an
understanding of the operating performance of the company's
properties. FFO does not give effect to real estate depreciation and
amortization since these amounts are computed to allocate the cost of
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.
In order to provide a better understanding of the relationship
between FFO and GAAP net income, a reconciliation of FFO to GAAP net
income has been provided. FFO does not represent cash flow from
operating activities in accordance with GAAP, should not be considered
as an alternative to GAAP net income and is not necessarily indicative
of cash available to fund cash needs. In addition, the Company has
presented FFO on a consolidated and unconsolidated basis (at the
Company's ownership share) as the Company believes that given the
significance of the Company's operations that are owned through
investments accounted for on the equity method of accounting, the
detail of the operations of the Company's unconsolidated properties
provides important insights into the income and FFO produced by such
investments for the company as a whole.
REAL ESTATE PROPERTY NET OPERATING INCOME (NOI) AND COMPARABLE NOI
General Growth believes that Real Estate Property Net Operating
Income (NOI) is a useful supplemental measure of the Company's
operating performance. The Company defines NOI as operating revenues
from continuing operations (rental income, tenant recoveries and other
income) less property and related expenses from continuing operations
(real estate taxes, 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, discontinued operations, and extraordinary items, it
provides a performance measure that, when compared year over year,
reflects the revenues and expenses directly associated with owning and
operating commercial real estate properties and the impact on
operations from trends in occupancy rates, rental rates and operating
costs. 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 of
management's computation of NOI, a reconciliation of NOI to
consolidated operating income as computed in accordance with GAAP has
been presented.
Comparable NOI excludes from both years the NOI of properties with
significant physical or merchandising changes and those properties
acquired or opened during the relevant comparative accounting periods.
PROPERTY INFORMATION
The Company has presented information on its consolidated and
unconsolidated properties separately in the accompanying financial
schedules. As a significant portion of the Company's total operations
are structured as joint venture arrangements which are unconsolidated,
management of the Company believes that operating data with respect to
all properties owned provides important insights into the income
produced by such investments for the Company as a whole. In addition,
the individual items of revenue and expense for the unconsolidated
properties have been presented at the Company's ownership share of
such unconsolidated ventures. As 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
the elements of the Company's overall operations.
RISKS AND UNCERTAINTIES
This release contains forward-looking statements that involve
risks and uncertainties. All statements other than statements of
historical fact are statements that may be deemed forward-looking
statements, which are subject to a number of risks, uncertainties and
assumptions. Representative examples of these risks, uncertainties and
critical accounting or other assumptions which could cause actual
results to differ materially from those contained in the
forward-looking statements include (without limitation) general
industry and economic conditions, acts of terrorism, interest rate
trends, cost of capital and capital requirements, availability of real
estate properties, competition from other companies and venues for the
sale/distribution of goods and services, changes in retail rental
rates in the Company's markets, shifts in customer demands, tenant
bankruptcies or store closures, changes in vacancy rates at the
Company's properties, changes in operating expenses, including
employee wages, benefits and training, governmental and public policy
changes, changes in applicable laws, rules and regulations (including
changes in tax laws), the ability to obtain suitable equity and/or
debt financing, and the continued availability of financing in the
amounts and on the terms necessary to support the Company's future
business. Readers are referred to the documents filed by General
Growth Properties, Inc. with the SEC, specifically the most recent
reports on Form 10-Q and 10-K, which identify important factors which
could affect the forward-looking statements in this release.
GENERAL GROWTH PROPERTIES, INC.
PORTFOLIO RESULTS
(In thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------ -----------------------
2004 2003 2004 2003
------------ ----------- ----------- -----------
Funds From Operations
(FFO)
Operating Partnership $254,607 $205,925 $765,562 $618,561
Less: Allocations to
Operating Partnership
unitholders 50,166 43,067 154,347 138,568
------------ ----------- ----------- -----------
Company stockholders $204,441 $162,858 $611,215 $479,993
============ =========== =========== ===========
FFO per share:
Company stockholders
- basic $0.90 $0.75 $2.78 $2.39
Operating
Partnership - basic 0.90 0.75 2.78 2.39
Operating
Partnership -
diluted 0.90 0.75 2.77 2.31
Weighted average number of Company
shares outstanding:
Basic 226,312 215,785 220,149 200,875
Basic (assuming full
conversion of
Operating
Partnership units) 281,845 272,848 275,742 258,865
Diluted (assuming
full conversion of
Operating Partnership
units and,
for the twelve
months ended
December 31, 2003,
convertible
preferred stock) 282,733 273,853 276,422 273,069
Portfolio Results
Total property
revenues $645,418 $361,027 $1,722,629 $1,183,763
Total property
operating expenses (238,561) (105,303) (585,263) (365,917)
Equity in real estate
property net
operating income of
Unconsolidated
Properties 94,506 77,633 294,933 293,104
------------ ----------- ----------- -----------
Real estate property
net operating income 501,363 333,357 1,432,299 1,110,950
Net property
management fees and
costs 7,242 695 8,853 4,828
Headquarters/regional
costs, general and
administrative and
depreciation on
non-income producing
assets (16,959) (11,614) (48,253) (50,150)
Net interest expense (191,513) (78,264) (468,958) (276,235)
Income tax expense,
primarily deferred (2,343) - (2,383) (98)
Equity in other FFO
of Unconsolidated
Properties (34,703) (27,947) (118,419) (117,154)
Preferred stock
dividends and
preferred unit
distributions (8,480) (10,302) (37,577) (53,580)
------------ ----------- ----------- -----------
FFO - Operating
Partnership $254,607 $205,925 $765,562 $618,561
============ =========== =========== ===========
Summarized Balance
Sheet Information December 31, December 31,
(In thousands) 2004 2003
------------ -----------
Cash and cash
equivalents $48,365 $10,677
Investment in real
estate:
Net land, buildings
and equipment $19,656,969 $8,405,092
Developments in
progress 552,359 168,521
Investment in and
loans to/from
Unconsolidated Real
Estate Affiliates 1,945,541 630,613
Investment land and
land held for
development and sale 1,638,013 -
------------ -----------
Net investment in
real estate $23,792,882 $9,204,226
============ ===========
Total assets $25,602,793 $9,582,897
Mortgage and other
debt payable $20,310,947 $6,649,490
Minority interest -
Preferred 403,161 495,211
Minority interest -
Common 551,202 408,613
Stockholders' equity 2,142,813 1,670,409
------------ -----------
Total capitalization
(at cost) $23,408,123 $9,223,723
============ ===========
GENERAL GROWTH PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- ----------------------
2004 2003 2004 2003
--------- --------- ----------- ----------
Revenues:
Minimum rents $362,731 $231,926 $1,060,963 $775,320
Tenant recoveries 154,164 94,742 473,428 332,137
Overage rents 30,937 18,842 54,105 34,928
Land sales 68,643 - 68,643 -
Management and other fees 25,633 22,466 82,896 84,138
Other 29,032 14,696 62,810 36,268
--------- --------- ----------- ----------
Total revenues 671,140 382,672 1,802,845 1,262,791
--------- --------- ----------- ----------
Expenses:
Real estate taxes 41,196 24,320 128,320 88,276
Repairs and maintenance 46,719 24,876 123,984 81,433
Marketing 14,895 10,503 48,220 35,797
Other property operating
costs 67,209 44,252 208,257 153,370
Land sales operations 66,100 - 66,100 -
Provision for doubtful
accounts 2,442 1,352 10,382 7,041
Property management and
other costs 29,834 28,424 100,788 109,746
General and administrative 2,419 2,054 9,499 8,533
Depreciation and
amortization 124,935 65,092 365,622 230,195
--------- --------- ----------- ----------
Total expenses 395,749 200,873 1,061,172 714,391
--------- --------- ----------- ----------
Operating income 275,391 181,799 741,673 548,400
Interest income 2,108 641 3,227 2,308
Interest expense (193,621) (78,905) (472,185) (278,543)
Income allocated to minority
interests (31,860) (37,695) (104,871) (110,984)
Income taxes, primarily
deferred (2,343) - (2,383) (98)
Equity in income of
unconsolidated affiliates 32,421 32,500 88,191 94,480
--------- --------- ----------- ----------
Income from continuing
operations 82,096 98,340 253,652 255,563
Discontinued operations,
net of minority interest:
Income from operations 341 1,047 3,028 4,128
Gain on disposition 11,172 - 11,172 3,720
--------- --------- ----------- ----------
11,513 1,047 14,200 7,848
--------- --------- ----------- ----------
Net income $93,609 $99,387 $267,852 $263,411
--------- --------- ----------- ----------
Convertible preferred stock
dividends - - - (13,030)
--------- --------- ----------- ----------
Net income available to
common stockholders $93,609 $99,387 $267,852 $250,381
========= ========= =========== ==========
Basic earnings per share:
Continuing operations $0.36 $0.45 $1.16 $1.21
Discontinued operations 0.05 0.01 0.06 0.04
--------- --------- ----------- ----------
Total basic earnings per
share $0.41 $0.46 $1.22 $1.25
========= ========= =========== ==========
Diluted earnings per share:
Continuing operations $0.36 $0.45 $1.15 $1.19
Discontinued operations 0.05 0.01 0.06 0.03
--------- --------- ----------- ----------
Total diluted earnings per
share $0.41 $0.46 $1.21 $1.22
========= ========= =========== ==========
GENERAL GROWTH PROPERTIES, INC.
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
(In thousands)
Three Months Ended
December 31, 2004
-------------------------------
Consolidated Unconsolidated
Properties Properties (a)
------------ ------------------
Property revenues:
Minimum rents (b) $362,731 $94,713
Tenant recoveries 154,164 42,085
Overage rents 30,937 7,534
Land sales 68,643 37,170
Other (c) 28,943 13,589
------------ --------
Total property revenues 645,418 195,091
------------ --------
Property operating expenses
Real estate taxes 41,196 12,463
Repairs and maintenance 46,719 11,381
Marketing 14,895 3,619
Other property operating costs 67,209 35,051
Land sales operations 66,100 37,225
Provision for doubtful accounts 2,442 846
------------ --------
Total property operating
expenses 238,561 100,585
------------ --------
Real estate property net operating
income 406,857 94,506
Management and other fees 25,633 -
Property management and other costs (18,391) -
Headquarters/regional costs (d) (11,443) (6,458)
General and administrative (2,419) (539)
Depreciation on non-income producing
assets, including headquarters
buildings (3,097) -
Interest income 2,108 827
Interest expense (191,792) (27,667)
Amortization of deferred finance costs (1,829) (575)
Debt extinguishment costs - (115)
Income taxes, primarily deferred (2,343) (176)
Preferred unit distributions (8,480) -
------------ --------
Funds From Operations $194,804 $59,803 $254,607
Equity in Funds from Operations of
Unconsolidated Properties 59,803 (59,803) -
------------ -------- ---------
Operating Partnership Funds From
Operations $254,607 $- $254,607
============ ======== =========
Three Months Ended
December 31, 2003
-------------------------------
Consolidated Unconsolidated
Properties Properties (a)
------------ ------------------
Property revenues:
Minimum rents (b) $231,926 $72,280
Tenant recoveries 94,742 32,561
Overage rents 18,842 5,214
Other 15,517 3,790
------------ --------
Total property revenues 361,027 113,845
------------ --------
Property operating expenses:
Real estate taxes 24,320 9,226
Repairs and maintenance 24,876 8,957
Marketing 10,503 3,211
Other property operating costs 44,252 14,636
Provision for doubtful accounts 1,352 182
------------ --------
Total property operating
expenses 105,303 36,212
------------ --------
Real estate property net operating
income 255,724 77,633
Management and other fees 22,466 -
Property management and other costs (21,771) -
Headquarters/regional costs (d) (6,653) (6,404)
General and administrative (2,054) (235)
Depreciation on non-income producing
assets, including headquarters
buildings (2,907) -
Interest income 641 440
Interest expense (76,909) (20,766)
Amortization of deferred finance costs (1,996) (969)
Debt extinguishment costs - (13)
Income taxes, primarily deferred - -
Preferred unit distributions (10,302) -
------------ --------
Funds From Operations 156,239 49,686 $205,925
Equity in Funds From Operations of
Unconsolidated Properties 49,686 (49,686) -
------------ -------- ---------
Operating Partnership Funds From
Operations $205,925 $- $205,925
============ ======== =========
(a)Reflect revenues and expenses of Unconsolidated Properties at
Operating Partnership's ownership share of such items.
(b)Minimum rents includes the following for the three months ended
December 31:
Consolidated Unconsolidated
2004 Properties Properties
------------ ------------------
Straight-line rent $6,010 $1,292
Non-cash rental revenue recognized
pursuant to SFAS #141 and #142 8,512 1,324
2003
Straight-line rent $2,546 $842
Non-cash rental revenue recognized
pursuant to SFAS #141 and #142 4,236 292
(c)Includes net FFO of investment property sold of $429 and $1,348,
respectively, for the three months ended
December 31, 2004 and 2003.
(d)Headquarters/regional costs for the Unconsolidated Properties
include property management and other fees to
General Growth Management, Inc. and the Rouse Management Company,
Inc.
GENERAL GROWTH PROPERTIES, INC.
BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS
(In thousands)
Twelve Months Ended
December 31, 2004
--------------------------------
Consolidated Unconsolidated
Properties Properties (a)
------------ -------------------
Property revenues:
Minimum rents (b) $1,060,963 $293,175
Tenant recoveries 473,428 135,561
Overage rents 54,105 10,960
Land sales 68,643 37,170
Other (c) 65,490 18,694
------------ ---------
Total property revenues 1,722,629 495,560
------------ ---------
Property operating expenses:
Real estate taxes 128,320 39,546
Repairs and maintenance 123,984 33,150
Marketing 48,220 13,351
Other property operating costs 208,257 74,589
Land sales operations 66,100 37,225
Provision for doubtful accounts 10,382 2,766
------------ ---------
Total property operating
expenses 585,263 200,627
------------ ---------
Real estate property net operating
income 1,137,366 294,933
Management and other fees 82,896 -
Property management and other costs (74,043) -
Headquarters/regional costs (d) (26,745) (23,126)
General and administrative (9,499) (3,528)
Depreciation on non-income producing
assets, including headquarters
buildings (12,009) -
Interest income 3,227 2,043
Interest expense (455,259) (90,355)
Amortization of deferred finance costs (10,739) (2,655)
Debt extinguishment costs (6,187) (622)
Income taxes, primarily deferred (2,383) (176)
Preferred unit distributions (37,577) -
------------ ---------
Funds From Operations 589,048 176,514 $765,562
Equity in Funds from Operations of
Unconsolidated Properties 176,514 (176,514) -
------------ --------- ---------
Operating Partnership Funds From
Operations $765,562 $- $765,562
============ ========= =========
Twelve Months Ended
December 31, 2003
--------------------------------
Consolidated Unconsolidated
Properties Properties (a)
------------ -------------------
Property revenues:
Minimum rents (b) $775,320 $286,452
Tenant recoveries 332,137 140,334
Overage rents 34,928 8,624
Other (c) 41,378 8,078
------------ ---------
Total property revenues 1,183,763 443,488
------------ ---------
Property operating expenses:
Real estate taxes 88,276 40,056
Repairs and maintenance 81,433 33,716
Marketing 35,797 14,137
Other property operating costs 153,370 60,811
Provision for doubtful accounts 7,041 1,664
------------ ---------
Total property operating
expenses 365,917 150,384
------------ ---------
Real estate property net operating
income 817,846 293,104
Management and other fees 84,138 -
Property management and other costs (79,310) -
Headquarters/regional costs (d) (30,436) (24,760)
General and administrative (8,533) (1,052)
Depreciation on non-income producing
assets, including headquarters
buildings (11,181) -
Interest income 2,308 1,721
Interest expense (268,974) (87,399)
Amortization of deferred finance costs (7,072) (4,994)
Debt extinguishment costs (2,497) (670)
Income taxes, primarily deferred (98) -
Preferred stock dividends (13,030) -
Preferred unit distributions (40,550) -
------------ ---------
Funds From Operations 442,611 175,950 $618,561
Equity in Funds From Operations of
Unconsolidated Properties 175,950 (175,950) -
------------ --------- ---------
Operating Partnership Funds From
Operations $618,561 $- $618,561
============ ========= =========
(a)Reflect revenues and expenses of Unconsolidated Properties at
Operating Partnership's ownership share of such items.
(b)Minimum rents includes the following for the twelve months ended
December 31:
Consolidated Unconsolidated
2004 Properties Properties
------------ -------------------
Straight-line rent $14,810 $4,296
Non-cash rental revenue
recognized pursuant to SFAS #141
and #142 27,591 6,939
2003
Straight-line rent $11,655 $4,405
Non-cash rental revenue
recognized pursuant to SFAS #141
and #142 16,551 6,953
(c)Includes net FFO of investment property sold of $4,483 and $6,299,
respectively, for the twelve months ended
December 31, 2004 and 2003.
(d)Headquarters/regional costs for the Unconsolidated Properties
include property management and other fees to
General Growth Management, Inc. and the Rouse Management Company,
Inc.
GENERAL GROWTH PROPERTIES, INC.
SEGMENT RESULTS
(In thousands)
Three Months Ended Three Months Ended
December 31, 2004 December 31, 2003
------------------------------- ------------------
Retail Community Retail
and Other Development Total and Other
--------- ----------- --------- ------------------
Segment Basis (a)
Property revenues:
Minimum rents $457,444 $- $457,444 $304,206
Tenant recoveries 196,249 - 196,249 127,303
Overage rents 38,471 - 38,471 24,056
Land sales - 105,813 105,813 -
Other 42,532 - 42,532 19,307
--------- ----------- --------- ------------------
Total property
revenues 734,696 105,813 840,509 474,872
--------- ----------- --------- ------------------
Property operating
expenses
Real estate taxes 53,659 - 53,659 33,546
Repairs and
maintenance 58,100 - 58,100 33,833
Marketing 18,514 - 18,514 13,714
Other property
operating costs 102,260 - 102,260 -
Land sales
operations 125 103,200 103,325 58,888
Provision for
doubtful
accounts 3,288 - 3,288 1,534
--------- ----------- --------- ------------------
Total property
operating
expenses 235,946 103,200 339,146 141,515
--------- ----------- --------- ------------------
Real estate property
net operating
income $498,750 $2,613 $501,363 $333,357
========= =========== ========= ==================
Unconsolidated Properties
Property revenues:
Minimum rents $94,713 $- $94,713 $72,280
Tenant recoveries 42,085 - 42,085 32,561
Overage rents 7,534 - 7,534 5,214
Land sales - 37,170 37,170 -
Other 13,589 - 13,589 3,790
--------- ----------- --------- ------------------
Total property
revenues 157,921 37,170 195,091 113,845
--------- ----------- --------- ------------------
Property operating
expenses
Real estate taxes 12,463 - 12,463 9,226
Repairs and
maintenance 11,381 - 11,381 8,957
Marketing 3,619 - 3,619 3,211
Other property
operating costs 35,051 - 35,051 -
Land sales
operations - 37,225 37,225 14,636
Provision for
doubtful
accounts 846 - 846 182
--------- ----------- --------- ------------------
Total property
operating
expenses 63,360 37,225 100,585 36,212
--------- ----------- --------- ------------------
Real estate property
net operating
income $94,561 $(55) $94,506 $77,633
========= =========== ========= ==================
Consolidated
Properties
Property revenues:
Minimum rents $362,731 $- $362,731 $231,926
Tenant recoveries 154,164 - 154,164 94,742
Overage rents 30,937 - 30,937 18,842
Land sales - 68,643 68,643 -
Other 28,943 - 28,943 15,517
--------- ----------- --------- ------------------
Total property
revenues 576,775 68,643 645,418 361,027
--------- ----------- --------- ------------------
Property operating expenses
Real estate taxes 41,196 $- $41,196 $24,320
Repairs and
maintenance 46,719 - 46,719 24,876
Marketing 14,895 - 14,895 10,503
Other property
operating costs 67,209 - 67,209 -
Land sales
operations 125 65,975 66,100 44,252
Provision for
doubtful
accounts 2,442 - 2,442 1,352
--------- ----------- --------- ------------------
Total property
operating
expenses 172,586 65,975 238,561 105,303
--------- ----------- --------- ------------------
Real estate property
net operating
income $404,189 $2,668 $406,857 $255,724
========= =========== ========= ==================
(a)Segment basis results include both Consolidated Properties and the
Operating Partnership's ownership share of the results of
operations of Unconsolidated Properties.
GENERAL GROWTH PROPERTIES, INC.
SEGMENT RESULTS
(In thousands)
Twelve Months Ended Twelve Months Ended
December 31, 2004 December 31, 2003
----------------------------------- -----------------
Retail Community Retail
and Other Development Total and Other
----------- ----------- ----------- -----------------
Segment Basis (a)
Property
revenues:
Minimum rents $1,354,138 $- $1,354,138 $1,061,772
Tenant
recoveries 608,989 - 608,989 472,471
Overage rents 65,065 - 65,065 43,552
Land sales - 105,813 105,813 -
Other 84,184 - 84,184 49,456
----------- ----------- ----------- -----------------
Total
property
revenues 2,112,376 105,813 2,218,189 1,627,251
----------- ----------- ----------- -----------------
Property operating
expenses
Real estate
taxes 167,866 - 167,866 128,332
Repairs and
maintenance 157,134 - 157,134 115,149
Marketing 61,571 - 61,571 49,934
Other property
operating
costs 252,846 - 282,846 -
Land sales
operations 125 103,200 103,325 214,181
Provision for
doubtful
accounts 13,148 - 13,148 8,705
----------- ----------- ----------- -----------------
Total
property
operating
expenses 682,690 103,200 785,890 516,301
----------- ----------- ----------- -----------------
Real estate
property net
operating
income $1,429,686 $2,613 $1,432,299 $1,110,950
=========== =========== =========== =================
Unconsolidated
Properties
Property
revenues:
Minimum rents $293,175 $- $293,175 $286,452
Tenant
recoveries 135,561 - 135,561 140,334
Overage rents 10,960 - 10,960 8,624
Land sales - 37,170 37,170 -
Other 18,694 - 18,694 8,078
----------- ----------- ----------- -----------------
Total
property
revenues 458,390 37,170 495,560 443,488
----------- ----------- ----------- -----------------
Property operating
expenses
Real estate
taxes 39,546 - 39,546 40,056
Repairs and
maintenance 33,150 - 33,150 33,716
Marketing 13,351 - 13,351 14,137
Other property
operating
costs 74,589 - 74,589 -
Land sales
operations - 37,225 37,225 60,811
Provision for
doubtful
accounts 2,766 - 2,766 1,664
----------- ----------- ----------- -----------------
Total
property
operating
expenses 163,402 37,225 200,627 150,384
----------- ----------- ----------- -----------------
Real estate
property net
operating income $294,988 $(55) $294,933 $293,104
=========== =========== =========== =================
Consolidated
Properties
Property
revenues:
Minimum rents $1,060,963 $- $1,060,963 $775,320
Tenant
recoveries 473,428 - 473,428 332,137
Overage rents 54,105 - 54,105 34,928
Land sales - 68,643 68,643 -
Other 65,490 - 65,490 41,378
----------- ----------- ----------- -----------------
Total
property
revenues 1,653,986 68,643 1,722,629 1,183,763
----------- ----------- ----------- -----------------
Property operating
expenses
Real estate
taxes $128,320 - 128,320 88,276
Repairs and
maintenance 123,984 - 123,984 81,433
Marketing 48,220 - 48,220 35,797
Other property
operating
costs 208,257 - 208,257 -
Land sales
operations 125 65,975 66,100 153,370
Provision for
doubtful
accounts 10,382 - 10,382 7,041
----------- ----------- ----------- -----------------
Total
property
operating
expenses 519,288 65,975 585,263 365,917
----------- ----------- ----------- -----------------
Real estate
property net
operating
income $1,134,698 $2,668 $1,137,366 $817,846
=========== =========== =========== =================
(a)Segment basis results include both Consolidated Properties and the
Operating Partnership's ownership share of the results of
operations of Unconsolidated Properties.
GENERAL GROWTH PROPERTIES, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL
MEASURES
(In thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- ------------------------
2004 2003 2004 2003
--------- --------- ----------- ------------
Reconciliation of Real Estate Property
Net Operating Income to GAAP Operating Income
Real estate property net
operating income
including Unconsolidated
Properties $501,363 $333,357 $1,432,299 $1,110,950
Unconsolidated
Properties (94,506) (77,633) (294,933) (293,104)
--------- --------- ----------- ------------
Consolidated
Properties 406,857 255,724 1,137,366 817,846
Management and other fees 25,633 22,466 82,896 84,138
Property management and
other costs (18,391) (21,771) (74,043) (79,310)
Headquarters/regional
costs (11,443) (6,653) (26,745) (30,436)
General and
administrative (2,419) (2,054) (9,499) (8,533)
Depreciation and
amortization (124,935) (65,092) (365,622) (230,195)
Other (a) 89 (821) (2,680) (5,110)
--------- --------- ----------- ------------
GAAP Operating income -
Consolidated GGPI $275,391 $181,799 $741,673 $548,400
========= ========= =========== ============
(a)Reflects discontinued operations and minority interest in
Consolidated Properties real estate property net operating income.
Reconciliation of Funds From Operations (FFO) to GAAP Net Income
Available to Common Stockholders
FFO:
Company stockholders $204,441 $162,858 $611,215 $479,993
Operating Partnership
unitholders 50,166 43,067 154,347 138,568
--------- --------- ----------- ------------
Operating Partnership 254,607 205,925 765,562 618,561
Depreciation and amortization
of capitalized real estate
costs (including SFAS #141
and #142 in-place lease
costs) other than
amortization of
financing costs (148,944) (79,102) (440,876) (299,711)
FFO of discontinued
operations (429) (1,348) (4,484) (6,299)
Allocations to Operating
Partnership
unitholders(a) (23,138) (27,135) (66,550) (70,018)
--------- --------- ----------- ------------
Income from continuing
operations 82,096 98,340 253,652 242,533
Income from discontinued
operations, net of
minority interest 11,513 1,047 14,200 7,848
--------- --------- ----------- ------------
Net income available to
common stockholders $93,609 $99,387 $267,852 $250,381
========= ========= =========== ============
Reconciliation of Equity in Real Estate Property
Net Operating Income of Unconsolidated Properties
to GAAP Equity in Income of Unconsolidated Affiliates
Equity in Real Estate
Property Net Operating
Income of Unconsolidated
Properties $94,506 $77,633 $294,933 $293,104
Equity in net interest
expense of
Unconsolidated
Properties (27,530) (21,308) (91,589) (91,342)
Equity in headquarters and
general and
administrative expenses
of Unconsolidated
Properties (7,173) (6,639) (26,830) (25,812)
--------- --------- ----------- ------------
Operating Partnership
Equity in FFO from
Unconsolidated Properties 59,803 49,686 176,514 175,950
Depreciation and amortization
of capitalized real estate
costs (including SFAS #141
and #142 in-place lease
costs) other than
amortization of
financing costs (27,382) (17,186) (88,323) (81,470)
--------- --------- ----------- ------------
Equity in income of
unconsolidated
affiliates $32,421 $32,500 $88,191 $94,480
========= ========= =========== ============
Reconciliation of Weighted
Average Shares Outstanding
Basic:
Weighted average number
of shares outstanding
- FFO per share 281,845 272,848 275,742 258,865
Full conversion of
Operating Partnership
units (55,533) (57,063) (55,593) (57,990)
--------- --------- ----------- ------------
Weighted average
number of Company
shares outstanding -
GAAP EPS 226,312 215,785 220,149 200,875
========= ========= =========== ============
Diluted:
Weighted average number
of shares outstanding
- FFO per share 282,733 273,853 276,422 273,069
Full conversion of
Operating Partnership
units (55,533) (57,063) (55,593) (57,990)
--------- --------- ----------- ------------
Weighted average number
of Company shares
outstanding -
GAAP EPS (a) 227,200 216,790 220,829 215,079
========= ========= =========== ============
(a) For the twelve months ended December 31, 2003, the PIERS were
dilutive for the computation of EPS and are therefore included in
the total weighted average outstanding shares for diluted EPS
purposes.
CONTACT: General Growth Properties, Inc.
John Bucksbaum, 312-960-5005
Bernie Freibaum, 312-960-5252