Microsoft Word - Q3 2015 Earnings Release - Vertical 10.30 GGP REPORTS THIRD QUARTER 2015 RESULTS, 2016 FULL YEAR GUIDANCE AND RAISES QUARTERLY DIVIDEND


Chicago, Illinois, November 2, 2015 - General Growth Properties, Inc. (the 'Company' or 'GGP') (NYSE: GGP) today reported results for the three and nine months ended September 30, 2015.


Financial Results

For the Three Months Ended September 30, 2015

Comparable net operating income ('Same Store NOI') increased 5.1% to $560 million from $533 million in the prior year period.


Company earnings before interest, taxes, depreciation and amortization ('Company EBITDA') increased 5.6% to $526 million from $498 million in the prior year period.


Company funds from operations ('Company FFO') per share increased 9.6% to $0.36 per diluted share from $0.33 per diluted share in the prior year period. Company FFO increased 10.5% to $341 million from $308 million in the prior year period.


Net income attributable to common stockholders, which is impacted primarily by depreciation expense, gain on changes in control of investment properties and other and unconsolidated real estate affiliates- gain on investment, was $120 million, or $0.13 per diluted share, as compared to net income of $71 million, or $0.07 per diluted share, in the prior year period.


For the Nine Months Ended September 30, 2015

Same Store NOI increased 4.0% to $1.64 billion from $1.58 billion in the prior year period. Company EBITDA increased 4.9% to $1.53 billion from $1.46 billion in the prior year period.

Company FFO per share increased 6.8% to $1.01 per diluted share from $0.95 per diluted share in the prior year period. Company FFO increased 7.8% to $969 million from $898 million in the prior year period.


Net income attributable to common stockholders, which is impacted primarily by depreciation expense, gain from changes in control of investment properties and unconsolidated real estate affiliates- gain on investment, was $1.17 billion, or

$1.23 per diluted share, as compared to net income of $364 million, or $0.39 per diluted share, in the prior year period.


Operational Highlights
  • Same Store leased percentage was 96.5% at quarter end.

  • Initial rental rates for signed leases that have commenced in the trailing 12 months on a suite-to-suite basis increased 9.7%, or $5.62 per square foot, to $63.30 per square foot when compared to the rental rate for expiring leases.

  • Tenant sales (all less anchors) increased 3.3% to $20.7 billion on a trailing 12-month basis. Tenant sales (

    Investment Activities

    Development

    The Company has development and redevelopment activities totaling approximately $2.1 billion at share, of which projects totaling approximately $500 million have opened, $1.0 billion is under construction, and $644 million is in the pipeline.


    Common Share Repurchases

    During the quarter, the Company acquired approximately 3.4 million of its common shares at a weighted average price of

    $25.24 per share for total consideration of approximately $86.0 million. During the nine months ended, the Company acquired approximately 4.05 million of its common shares at a weighted average price of $25.36 per share for total consideration of approximately $102.8 million.


    Financing Activities

    Property-Level Debt

    During the three months ended September 30, 2015, the Company obtained $140 million of new fixed rate debt with a weighted average term to maturity of 10.0 years and a weighted average interest rate of 4.1%, and repaid $99 million of fixed rate debt, which had a weighted-average interest rate of 4.9%.


    Corporate Credit Facility

    On October 30, 2015 the Company amended its corporate credit facility to extend the maturity to October 2020.


    Dividends

    On November 2, 2015, the Company's Board of Directors declared a fourth quarter common stock dividend of $0.19 per share payable on January 4, 2016, to stockholders of record on December 15, 2015. This represents an increase of $0.02 per share or 12% growth over the dividend declared in fourth quarter 2014, and an increase of $0.01 per share or 6% growth over the dividend declared in third quarter 2015.


    The Board of Directors also declared a quarterly dividend on the 6.375% Series A Cumulative Redeemable Preferred Stock of $0.3984 per share payable on January 4, 2016, to stockholders of record on December 15, 2015.

    Guidance

    Company FFO for the fourth quarter of 2015 is expected to be $0.41 to $0.43 per diluted share. Company FFO for the year ending December 31, 2015 is expected to be $1.42 to $1.44 per diluted share. The preliminary Company FFO for the year ending December 31, 2016 is expected to be $1.51 to $1.55 per diluted share.



    Earnings Guidance For the three months ending December 31, 2015


    For the year ending December 31, 2015


    For the year ending December 31, 2016


    Company FFO per diluted share

    $0.41 - $0.43

    $1.42 - $1.44

    $1.51 - $1.55

    Adjustments 1

    (0.01)

    (0.09)

    (0.05)

    NAREIT FFO

    $0.40 - $0.42

    $1.33 - $1.35

    $1.46 - $1.50

    Depreciation, including share of JVs

    (0.21)

    (0.90)

    (0.84)

    Gain on sale of investments 2

    -

    0.98

    -

    Net income attributable to common stockholders

    $0.19 - $0.21

    $1.41 - $1.43

    $0.62 - $0.66

    Preferred stock dividends

    -

    0.02

    0.02

    Net income attributable to GGP

    $0.19 - $0.21

    $1.43 - $1.45

    $0.64 - $0.68


    1. Includes impact of straight-line rent, above/below market rent, ground rent amortization, debt market rate adjustments and other non-cash or non-comparable items.

    2. Includes the gains from the sale of 25% and 12.5% interests in Ala Moana Center in 2015.


    The guidance estimate reflects management's view of current and future market conditions, including assumptions with respect to Same Store NOI growth, rental rates, occupancy levels, retail sales, variable expenses, interest rates and the earnings impact of the events referenced in this release and previously disclosed. The guidance also reflects management's view of capital market conditions. The estimates do not include possible future gains or losses, or the impact on operating results from other possible future property acquisitions or dispositions or capital market activity. Earnings per share estimates may be subject to fluctuations as a result of several factors, including any gains or losses associated with disposition activity. By definition, FFO and Company FFO do not include real estate-related depreciation and amortization, provisions for impairment, or gains or losses associated with property disposition activities. This guidance is a forward-looking statement and is subject to the risks and other factors described elsewhere in this release and in the Company's annual and quarterly periodic reports filed with the Securities and Exchange Commission.

    Investor Conference Call

    On Tuesday, November 3, 2015, the Company will host a conference call at 8:00 a.m. Central (9:00 a.m. Eastern). The conference call will be accessible by telephone and through the Internet. Interested parties can access the call by dialing 877.845.1018 (international 707.287.9345). A live webcast of the conference call will be available in listen-only mode in the Investors section at www.ggp.com. Interested parties should access the conference call or website 10 minutes prior to the beginning of the call in order to register. For those unable to listen to the call live, a replay will be available after the conference call event. To access the replay, dial 855.859.2056 (international 404.537.3406) conference ID 43715350.


    Supplemental Information

    The Company has prepared a supplemental information report available on www.ggp.com in the Investors section. This information also has been furnished with the Securities and Exchange Commission as an exhibit on Form 8-K.


    Forward-Looking Statements

    Certain statements made in this press release may be deemed 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in any forward-looking statement are based on reasonable assumption, it can give no assurance that its expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to, the Company's ability to refinance, extend, restructure or repay near and intermediate term debt, its indebtedness, its ability to raise capital through equity issuances, asset sales or the incurrence of new debt, retail and credit market conditions, impairments, its liquidity demands, and economic conditions. The Company discusses these and other risks and uncertainties in its annual and quarterly periodic reports filed with the Securities and Exchange Commission. The Company may update that discussion in its periodic reports, but otherwise takes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise.


    Investors and others should note that we post our current Investor Presentation on the Investors page of our website at www.ggp.com. From time to time, we update that Investor Presentation and when we do, it will be posted on the Investors page of our website at ggp.com. It is possible that the updates could include information deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on the Investors page of our website at www.ggp.com from time to time.


    General Growth Properties, Inc.

    General Growth Properties, Inc. is an S&P 500 company focused exclusively on owning, managing, leasing and redeveloping high-quality retail properties throughout the United States. GGP is headquartered in Chicago, Illinois, and publicly traded on the NYSE under the symbol GGP.

    Contact:

    Kevin Berry

    VP Investor Relations (312) 960-5529

    kevin.berry@ggp.com

    distributed by