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GGP INC (GGP)
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GGP : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q)

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08/03/2017 | 12:16pm CEST
All references to numbered Notes are to specific footnotes to our consolidated
financial statements included in this Quarterly Report and whose descriptions
are incorporated into the applicable response by reference. The following
discussion should be read in conjunction with such consolidated financial
statements and related Notes. Capitalized terms used, but not defined, in this
Management's Discussion and Analysis of Financial Condition and Results of
Operations ("MD&A") have the same meanings as in such Notes.

Overview

Our primary business is owning and operating best-in-class retail properties
that provide an outstanding environment and experience for our communities,
retailers, employees, consumers and shareholders. We are an S&P 500 real estate
company with a property portfolio comprised primarily of Class A retail
properties (defined primarily by sales per square foot) and urban retail
properties. GGP Inc. defines best-in-class retail and modern luxury through
curated merchandising and elegant culinary experiences set against the backdrop
of refined ambiance across this distinguished collection of destinations. Our
retail properties are the core centers of retail, dining and entertainment
within their trade areas and, therefore, represent hubs of daily life. As of
June 30, 2017, we own, either entirely or with joint venture partners, 126
retail properties located throughout the United States comprising approximately
123 million square feet of gross leasable area ("GLA").

We provide management and other services to substantially all of our properties,
including properties which we own through joint venture arrangements and which
are unconsolidated for GAAP purposes. Our management operating philosophies and
strategies are the same whether the properties are consolidated or
unconsolidated.

We seek to increase long-term Company NOI and Company EBITDA (as defined below)
growth through proactive management and leasing of our properties. We also
recycle capital through strategic dispositions in order to opportunistically
invest in high quality retail properties, as well as control operating expenses.
We believe that the following items are the most significant drivers affecting
incremental cash flow and Company EBITDA growth:

• contractual rent increases;

• occupancy growth;


• positive leasing spreads;

• value creation from redevelopment projects;

• managing operating expenses; and

• recycling capital.



As of June 30, 2017 the portfolio was 95.7% leased, compared to 96.2% leased at
June 30, 2016. The decrease is primarily due to tenant bankruptcies during the
current year quarter, which affected 1.8 million square feet in our portfolio.
On a suite-to-suite basis, the leases commencing occupancy in the trailing 12
months exhibited initial rents that were 10.0% higher than the final rents paid
on expiring leases. Our overall leasing activity is approximately twice the
amount of GLA included in the suite-to-suite comparison due to leasing of anchor
boxes that are not included in the suite-to-suite spreads.

We have identified approximately $1.5 billion of income producing development
and redevelopment projects within our portfolio, including re-development of
anchor box spaces, over 80% of which is being invested into Class A retail
properties. We currently expect to achieve stabilized returns of approximately
7-9% for all projects.

We believe our long-term strategy can provide our shareholders with a competitive risk-adjusted total return comprised of dividends and share price appreciation.

Financial Overview

Net income attributable to GGP Inc. decreased from $377.7 million for the six
months ended June 30, 2016 to $233.0 million for the six months ended June 30,
2017 primarily due to 2016 gains related to the sale of interests in two
properties. Our Company NOI (as defined below) remained flat of $1,139.5 million
for the six months ended June 30, 2016 compared to $1,139.0 million for the six
months ended June 30, 2017. Our Company FFO (as defined below) decreased 5.8%
from $722.9 million for the six months ended June 30, 2016 to $680.9 million for
the six months ended June 30, 2017 primarily due to decreased income recognition
on condominiums.


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See Non-GAAP Supplemental Financial Measures below for a discussion of Company
NOI, Company EBITDA and Company FFO, along with a reconciliation to the
comparable GAAP measures, Operating income and Net income attributable to GGP
Inc.

Operating Metrics

The following table summarizes selected operating metrics for our portfolio.

                                              June 30, 2017 (1)     June 30, 2016 (1)
In-Place Rents per square foot (2)
Consolidated Properties                      $           65.20     $           64.80
Unconsolidated Properties                               102.96                100.29
Total Retail Properties                      $           78.12     $           76.87

Percentage Leased
Consolidated Properties                                   95.6 %                96.0 %
Unconsolidated Properties                                 95.8 %                96.6 %
Total Retail Properties                                   95.7 %                96.2 %

Tenant Sales Volume (All Less Anchors) (3)
Consolidated Properties                      $          12,173     $          12,228
Unconsolidated Properties                                9,061                 8,795
Total Retail Properties                      $          21,234     $          21,023

Tenant Sales per square foot (3)
Consolidated Properties                      $             503     $             510
Unconsolidated Properties                                  765                   741
Total Retail Properties                      $             590     $             586




(1) Metrics exclude properties acquired in the year ended December 31, 2016

and the six months ended June 30, 2017 and certain other retail

properties.

(2) Rent is presented on a cash basis and consists of base minimum rent and

common area costs.

(3) Tenant Sales Volume (All Less Anchors) is presented as total sales volume

in millions of dollars and Tenant Sales <10,000 square feet is presented

as sales per square foot in dollars.

Lease Spread Metrics

The following table summarizes signed leases compared to expiring leases in the
same suite, for leases where (1) the downtime between new and previous tenant
was less than 24 months, (2) the occupied space between the previous tenant and
new tenant did not change by more than 10,000 square feet and (3) the new lease
is at least a year.
                                                           Term       

Initial Rent Expiring Rent Initial Rent

                          # of Leases        SF         (in years)      PSF (1)         PSF (2)            Spread        % Change
Trailing 12 Month
Commencements                  1,524     4,730,557            6.9     $    62.51$      56.84     $         5.66        10.0 %




(1) Represents initial annual rent over the lease consisting of base minimum

       rent and common area maintenance.


(2)    Represents expiring rent at end of lease consisting of base minimum rent
       and common area maintenance.




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Results of Operations

Three months ended June 30, 2017 and 2016

The following table is a breakout of the components of minimum rents:

                                    Three Months Ended June 30,
                                      2017               2016           $ Change         % Change
                                      (Dollars in thousands)
Components of Minimum rents:
Base minimum rents              $     350,787$     368,509$   (17,722 )           (4.8 )%
Lease termination income                3,373               1,576           1,797            114.0
Straight-line rent                      1,385               4,999          (3,614 )          (72.3 )
Above and below-market tenant
leases, net                            (6,340 )           (11,672 )         5,332            (45.7 )
Total Minimum rents             $     349,205$     363,412$   (14,207 )           (3.9 )%



Base minimum rents decreased $17.7 million primarily due to our sale of an
interest in Fashion Show during the third quarter of 2016. This resulted in
$20.1 million less base minimum rents during the three months ended June 30,
2017 compared to the three months ended June 30, 2016 as the property is now
accounted for as an Unconsolidated Real Estate Affiliate. In addition, the sale
of two operating properties during the third quarter of 2016 resulted in $3.4
million less base minimum rents. The acquisition of the remaining 50% interest
in Riverchase Galleria from our joint venture partner during the fourth quarter
of 2016 resulted in an offsetting $5.1 million increase in base minimum rents.

Tenant recoveries decreased $7.8 million primarily due to our sale of an
interest in Fashion Show during the third quarter of 2016. This resulted in $8.1
million less tenant recoveries during the three months ended June 30, 2017
compared to the three months ended June 30, 2016 as the property is now
accounted for as an Unconsolidated Real Estate Affiliate. In addition, the sale
of two operating properties during the third quarter of 2016 resulted in $1.4
million less tenant recoveries and reimbursable common area maintenance charges
decreased by $4.4 million across the portfolio. The acquisition of the remaining
50% interest in Riverchase Galleria from our joint venture partner during the
fourth quarter of 2016 resulted in an offsetting $2.5 million increase in tenant
recoveries and reimbursable taxes increased by $3.0 million.

Management fees and other corporate revenues increased $1.9 million primarily
due to property management fees related to the joint venture formed with Fashion
Show during the third quarter of 2016.

Other revenue increased $2.4 million primarily due to the recognition of a $2.3 million gain on the sale of land at one operating property during the three months ended June 30, 2017.

Property maintenance costs decreased $1.2 million primarily due to operational efficiencies.

Marketing costs decreased $1.4 million primarily due to a change in corporate strategy that resulted in a net reduction in spending.

Other property operating costs decreased $2.0 million primarily due to our sale
of an interest in Fashion Show during the third quarter of 2016. This resulted
in $2.6 million less other property operating costs during the three months
ended June 30, 2017 compared to the three months ended June 30, 2016 as the
property is now accounted for as an Unconsolidated Real Estate Affiliate. The
acquisition of the remaining 50% interest in Riverchase Galleria from our joint
venture partner during the fourth quarter of 2016 resulted in an offsetting $1.3
million increase in other property operating costs. The remaining decrease is
primarily due to operational efficiencies.

General and administrative expense increased $1.2 million primarily due to an increase in compensation expense (Note 11).

Provision for impairment of $4.1 million is related to impairment charges recorded on one operating property during the three months ended June 30, 2016 (Note 2).

Depreciation and amortization increased $18.1 million primarily due to an increase in write-offs of tenant allowances during the three months ended June 30, 2017.

Interest and dividend income increased $4.1 million primarily due to interest
income received during the three months ended June 30, 2017 on the proceeds of
the settlement of the Rique note receivable in the third quarter of 2016. As it
was determined during

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the first quarter of 2016 that it was probable that we would be unable to collect all amounts due according to the contractual terms of the receivable, interest income on the note receivable was not recognized subsequent to the first quarter of 2016 (Note 13).

Interest expense decreased $14.2 million primarily due to our sale of an
interest in Fashion Show during the third quarter of 2016. This resulted in $8.7
million less interest expense during the three months ended June 30, 2017
compared to the three months ended June 30, 2016 as the property is now
accounted for as an Unconsolidated Real Estate Affiliate. In addition, we paid
down mortgage notes at two operating properties during 2016, resulting in a $2.1
million decrease in interest expense (Note 6). We also sold two operating
properties during 2016, resulting in a $1.2 million decrease in interest
expense.

The gain on foreign currency during the three months ended June 30, 2016 is
related to the impact of changes in the exchange rate on a note receivable
denominated in Brazilian Reais and received in conjunction with the sale of
Aliansce in the third quarter of 2013. The note receivable was settled during
2016 (Note 13). The loss on foreign currency during the three months ended June
30, 2017 is related to the impact of changes in the exchange rate on the
proceeds from the settlement, which are held in Brazilian Reais.

The loss from changes in control of investment properties and other of $15.8
million during the three months ended June 30, 2017 relates to the acquisition
of the remaining interest in Neshaminy Mall and our sale of our interest in Red
Cliffs Mall. The gain from changes in control of investment properties and other
of $38.6 million during the three months ended June 30, 2016 relates to our sale
of our interest in one operating property and additional development related to
our sale of a 25% interest in Ala Moana Center in 2015 (Note 3).

The gain on extinguishment of debt during the three months ended June 30, 2017
relates to Lakeside Mall, which was conveyed to the lender in full satisfaction
of the debt (Note 3).

Provision for income taxes increased $6.1 million primarily due to tax credits
related to solar investments received during the three months ended June 30,
2016.

Unconsolidated Real Estate Affiliates - gain on investment during the three
months ended June 30, 2016 relates to additional development related to the sale
of an additional 12.5% interest in Ala Moana Center during the second quarter of
2015 and the sale of our interest in one joint venture during the three months
ended June 30, 2016 (Note 3).

Six months ended June 30, 2017 and 2016

The following table is a breakout of the components of minimum rents:

                                    Six Months Ended June 30,
                                      2017              2016          $ Change         % Change
                                     (Dollars in thousands)
Components of Minimum rents:
Base minimum rents              $     704,437$   736,089$   (31,652 )           (4.3 )%
Lease termination income                9,308             8,961             347              3.9
Straight-line rent                        493            10,445          (9,952 )          (95.3 )
Above and below-market tenant
leases, net                           (16,020 )         (20,951 )         4,931            (23.5 )
Total Minimum rents             $     698,218$   734,544$   (36,326 )           (4.9 )%



Base minimum rents decreased $31.7 million primarily due to our sale of an
interest in Fashion Show during the third quarter of 2016. This resulted in
$39.0 million less base minimum rents during the six months ended June 30, 2017
compared to the six months ended June 30, 2016 as the property is now accounted
for as an Unconsolidated Real Estate Affiliate. In addition, the sale of two
operating properties during the third quarter of 2016 resulted in $6.8 million
less base minimum rents. The acquisition of the remaining 50% interest in
Riverchase Galleria from our joint venture partner during the fourth quarter of
2016 resulted in an offsetting $10.4 million increase in base minimum rents.

Tenant recoveries decreased $17.2 million primarily due to our sale of an
interest in Fashion Show during the third quarter of 2016. This resulted in
$16.2 million less tenant recoveries during the six months ended June 30, 2017
compared to the six months ended June 30, 2016 as the property is now accounted
for as an Unconsolidated Real Estate Affiliate. In addition, the sale of two
operating properties during the third quarter of 2016 resulted in $2.7 million
less tenant recoveries and reimbursable common area maintenance charges
decreased by $9.2 million across the portfolio. The acquisition of the remaining
50% interest in Riverchase

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Galleria from our joint venture partner during the fourth quarter of 2016 resulted in an offsetting $5.2 million increase in tenant recoveries and reimbursable taxes increased by $3.4 million.

Management fees and other corporate revenues decreased $3.7 million primarily
due to the divestiture of our investment in Seritage Growth Properties stock
during the six months ended June 30, 2016, which resulted in a $13.1 million
gain (Note 2). This is partially offset by a $4.3 million one-time profit
participation payment received during the six months ended June 30, 2017 related
to our Aeropostale joint venture (Note 5). In addition, during the six months
ended June 30, 2017, we received $2.9 million in property management fees
related to the joint venture formed with Fashion Show during the third quarter
of 2016.

Other revenue increased $1.0 million primarily due to the recognition of a $2.3
million gain on the sale of land at one operating property during the six months
ended June 30, 2017 and a termination fee of $3.2 million received during the
six months ended June 30, 2017. The recognition of gains on the sale of air
rights at Ala Moana Center resulted in an offsetting decrease in other revenue.
During the six months ended June 30, 2016, $8.9 million previously deferred
gains were recognized, and during the six months ended June 30, 2017, $4.6
million of previously deferred gains were recognized. The decrease was partially
offset by a termination fee of $3.2 million received during the six months ended
June 30, 2017.

Property maintenance costs decreased $3.7 million primarily due to operational efficiencies.

Marketing costs decreased $1.4 million primarily due to a change in corporate strategy that resulted in a net reduction in spending.

Other property operating costs decreased $3.1 million primarily due to our sale
of an interest in Fashion Show during the third quarter of 2016. This resulted
in $5.0 million less other property operating costs during the six months ended
June 30, 2017 compared to the six months ended June 30, 2016 as the property is
now accounted for as an Unconsolidated Real Estate Affiliate. The acquisition of
the remaining 50% interest in Riverchase Galleria from our joint venture partner
during the fourth quarter of 2016 resulted in an offsetting $2.5 million
increase in other property operating costs. The remaining decrease is primarily
due to operational efficiencies.

Provision for loan loss of $36.1 million relates to the settlement of the Rique note receivable during 2016 (Note 13).

Property management and other costs increased $11.1 million primarily due to bonus savings in the prior year.

General and administrative increased $2.5 million primarily due to an increase in compensation expense (Note 11).

Provision for impairment of $44.8 million is related to impairment charges recorded on three operating properties during the six months ended June 30, 2016 (Note 2).

Depreciation and amortization increased $27.7 million primarily due to an increase in write-offs of tenant allowances during the six months ended June 30, 2016.

Interest and dividend income increased $6.0 million primarily due to interest
income received during the six months ended June 30, 2017 on the proceeds of the
settlement of the Rique note receivable in the third quarter of 2016. As it was
determined during the first quarter of 2016 that it was probable that we would
be unable to collect all amounts due according to the contractual terms of the
receivable, interest income on the note receivable was not recognized subsequent
to the first quarter of 2016 (Note 13).

Interest expense decreased $29.5 million primarily due to our sale of an
interest in Fashion Show during the third quarter of 2016. This resulted in
$17.5 million less interest expense during the six months ended June 30, 2017
compared to the six months ended June 30, 2016 as the property is now accounted
for as an Unconsolidated Real Estate Affiliate. In addition, we paid down
mortgage notes at two operating properties during 2016, resulting in a $7.2
million decrease in interest expense (Note 6). We also sold two operating
properties during 2016, resulting in a $2.4 million decrease in interest
expense.

The gain on foreign currency during the six months ended June 30, 2016 is
related to the impact of changes in the exchange rate on a note receivable
denominated in Brazilian Reais and received in conjunction with the sale of
Aliansce in the third quarter of 2013. The note receivable was settled during
2016 (Note 13). The loss on foreign currency during the six months ended June
30, 2017 is related to the impact of changes in the exchange rate on the
proceeds from the settlement, which are held in Brazilian Reais.

The loss from changes in control of investment properties and other of $15.8
million during the six months ended June 30, 2017 relates to the acquisition of
the remaining interest in Neshaminy Mall and our sale of our interest in Red
Cliffs Mall. The gain from changes in control of investment properties and other
of $113.1 million during the six months ended June 30, 2016 relates

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to our sale of our interest in three operating properties and additional development related to our sale of a 25% interest in Ala Moana Center in 2015 (Note 3).

The gain on extinguishment of debt during the six months ended June 30, 2017
relates to Lakeside Mall, which was conveyed to the lender in full satisfaction
of the debt (Note 3).

Provision for income taxes increased $7.7 million primarily due to tax credits
related to solar investments received during the six months ended June 30, 2016
and the tax impact of the provision for loan loss related to the Rique note
recorded during the six months ended June 30, 2016 (Note 13). This increase was
partially offset by a decrease in taxable income recognized by our taxable REIT
subsidiary for the sale of condominiums (Note 5).

Equity in income of Unconsolidated Real Estate Affiliates decreased by $28.2
million primarily due to decreased income recognition on condominiums during the
six months ended June 30, 2017 compared to the six months ended June 30, 2016
(Note 5), partially offset by our share of income in the Fashion Show joint
venture formed during the third quarter of 2016.

Unconsolidated Real Estate Affiliates - gain on investment during the six months
ended June 30, 2016 relates to additional development related to the sale of an
additional 12.5% interest in Ala Moana Center during the second quarter of 2015
and the sale of our interest in three joint ventures during the six months ended
June 30, 2016 (Note 3).

Liquidity and Capital Resources

Our primary source of cash is from the ownership and management of our
properties and strategic dispositions. We may generate cash from refinancings or
borrowings under our revolving credit facility. Our primary uses of cash include
payment of operating expenses, debt service, reinvestment in and redevelopment
of properties, tenant allowances, dividends and acquisitions.

We anticipate maintaining financial flexibility by managing our future
maturities, amortization of debt, and minimizing cross collateralizations and
corporate guarantees. We believe that we currently have sufficient liquidity to
satisfy all of our commitments in the form of $227.6 million of consolidated
unrestricted cash and $705.0 million of available credit under our credit
facility as of June 30, 2017, as well as anticipated cash provided by
operations.

Our key financing objectives include:

• to obtain property-secured debt with laddered maturities;

• to strategically leverage unencumbered retail properties; and

•         to minimize the amount of debt that is cross-collateralized and/or
          recourse to us.



We may raise capital through public or private issuances of debt securities,
preferred stock, common stock, common units of the Operating Partnerships (as
defined in Note 1) or other capital raising activities.

During the six months ended June 30, 2017, we paid down a $73.4 million
consolidated mortgage note at one property. The prior loan had a
term-to-maturity of 0.2 years and an interest rate of 5.6%. The property
subsequently replaced a property that was sold during the six months ended June
30, 2017 as collateral in our $1.4 billion loan secured by cross-collateralized
mortgages on 15 properties.

During the year ended December 31, 2016, we paid down $294.4 million of consolidated mortgage notes at two properties. The prior loans had a weighted-average term-to-maturity of 1.2 years and a weighted-average interest rate of 5.3%. In conjunction with the pay down of the loans, we paid $5.4 million in transaction costs.

As of June 30, 2017, we had $3.3 billion of debt pre-payable at our proportionate share without penalty. We may pursue opportunities to refinance this debt at lower interest rates and longer maturities.

As of June 30, 2017, our proportionate share of total debt aggregated $18.6
billion. Our total debt includes our consolidated debt of $12.7 billion and our
share of Unconsolidated Real Estate Affiliates debt of $5.8 billion. Of our
proportionate share of total debt, $1.7 billion is recourse to the Company or
its subsidiaries (including the facility) due to guarantees or other security
provisions for the benefit of the note holder.

The amount of debt due in the next three years represents 15.5% of our total
debt at maturity. The maximum amount due in any one of the next ten years is no
more than $3.0 billion at our proportionate share or approximately 17.5% of our
total debt at maturity.


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The following table illustrates the scheduled payments for our proportionate share of total debt as of June 30, 2017. The $206.2 million of Junior Subordinated Notes are due in 2036, but we may redeem them any time after April 30, 2011 (Note 6). As we do not expect to redeem the notes prior to maturity, they are included in the consolidated debt maturing subsequent to 2021.

            Consolidated     Unconsolidated
                 (Dollars in thousands)
2017       $           -    $              -
2018             336,743             186,765
2019             908,753           1,287,329
2020           1,866,565           1,225,120
2021           2,886,271             326,984
Subsequent     6,703,987           2,822,229

Total $ 12,702,319$ 5,848,427



We believe we will be able to extend the maturity date, repay under our
available line of credit or refinance the consolidated debt that is scheduled to
mature in 2018. We also believe that the joint ventures will be able to
refinance the debt of our Unconsolidated Real Estate Affiliates upon maturity;
however, there can be no assurance that we will be able to refinance or
restructure such debt on acceptable terms or otherwise, or that joint venture
operations or contributions by us and/or our partners will be sufficient to
repay such loans.

Acquisitions and Joint Venture Activity

From time-to-time we may acquire whole or partial interests in high-quality retail properties or make strategic dispositions. Refer to Note 3 for more information.

Warrants and Brookfield Investor Ownership

Brookfield and certain parties who were previously members of a Brookfield
investor consortium own or manage on behalf of third parties all of the
Company's outstanding Warrants (Note 8) which are exercisable into approximately
61 million common shares of the Company at a weighted-average exercise price of
$8.40 per share, assuming net share settlement. The strike price and common
shares issuable under the Warrants will adjust for dividends declared by the
Company.

Brookfield's potential ownership of the Company (assuming full share settlement
of the Warrants) is 34.6%, based on information included in their Form 13D filed
on August 19, 2016.

Developments and Redevelopments

We are currently redeveloping several consolidated and unconsolidated properties
primarily to improve the productivity and value of the property, convert
large-scale anchor boxes into smaller leasable areas and to create new in-line
retail space and new restaurant venues.

We have development and redevelopment activities totaling approximately $1.3
billion under construction and $230 million in the pipeline. We continue to
evaluate a number of other redevelopment projects to further enhance the quality
of our assets. Expected returns are based on the completion of current and
future redevelopment projects, and the success of the leasing and asset
management plans in place for each project. Expected returns are subject to a
number of variables, risks, and uncertainties including those disclosed within
Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2016
(our "Annual Report"). We also refer the reader to our disclosure related to
forward-looking statements, below. The following table illustrates our planned
redevelopments:

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                                                                                          Expected
                                                   GGP's Total                           Return on
                                                 Projected Share     GGP's Investment    Investment
Property                   Description               of Cost           to Date (1)          (2)       Stabilized Year
Major Development Summary (in millions, at share unless otherwise noted)
Under Construction
New Mall Development Ground up mall                         525                   63        8-9%           2020
Norwalk, CT          development
Staten Island Mall   Expansion                              231                   61         8%            2019
Staten Island, NY
Other Projects       Redevelopment projects                 531                  332        6-8%         2017-2018
                     at various properties
                     Total Projects Under
                     Construction               $         1,287     $            456
Projects in Pipeline
Other Projects       Redevelopment projects                 230                   64        8-9%            TBD
                     at various properties
                     Total Projects in
                     Pipeline                   $           230     $             64





(1)    Projected costs and investments to date exclude capitalized interest and
       overhead.

(2) Return on investment represents first year stabilized cash-on-cash return,

based upon budgeted assumptions. Actual costs may vary.



Our investment in these projects for the six months ended June 30, 2017 has
increased from December 31, 2016 in conjunction with the applicable development
plan and as projects near completion. The continued progression of redevelopment
projects resulted in increases to GGP's investment to date.

Capital Expenditures, Capitalized Interest and Overhead (at share)

The following table illustrates our capital expenditures, capitalized interest,
and internal costs associated with leasing and development overhead, which
primarily relate to ordinary capital projects at our operating properties. In
addition, we incurred tenant allowances and capitalized leasing costs for our
operating properties as outlined below. Capitalized interest is based upon
qualified expenditures and interest rates; capitalized leasing and development
costs are based upon time expended on these activities. These costs are
amortized over lives which are consistent with the related asset.
                                                               Six Months Ended June 30,
                                                                2017                  2016
                                                                (Dollars in thousands)
Operating capital expenditures (1)                     $       74,880$      68,550
Tenant allowances and capitalized leasing costs (2)            91,366                   70,157
Capitalized interest and capitalized overhead                  29,007                   30,529
Total                                                  $      195,253$     169,236

(1) Reflects only non-tenant operating capital expenditures.

(2) Tenant allowances paid on 2.0 million square feet.

Common Stock Dividends

Our Board of Directors declared common stock dividends during 2017 and 2016 as
follows:
Declaration Date    Record Date      Payment Date    Dividend Per Share
2017
August 2         October 13, 2017  October 31, 2017 $               0.22
May 1            July 13, 2017     July 28, 2017                    0.22
January 30       April 13, 2017    April 28, 2017                   0.22
2016
December 13      December 27, 2016 January 27, 2017 $               0.26
October 31       December 15, 2016 January 6, 2017                  0.22
August 1         October 14, 2016  October 31, 2016                 0.20
May 2            July 15, 2016     July 29, 2016                    0.19
February 1       April 15, 2016    April 29, 2016                   0.19



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Preferred Stock Dividends

On February 13, 2013, we issued, under a public offering, 10,000,000 shares of
6.375% Series A Cumulative Stock at a price of $25.00 per share. Our Board of
Directors declared preferred stock dividends during 2017 and 2016 as follows:
Declaration Date    Record Date      Payment Date    Dividend Per Share
2017
August 2         September 15, 2017 October 2, 2017 $             0.3984
May 1            June 15, 2017      July 3, 2017                  0.3984
January 30       March 15, 2017     April 3, 2017                 0.3984
2016
October 31       December 15, 2016  January 3, 2017 $             0.3984
August 1         September 15, 2016 October 3, 2016               0.3984
May 2            June 15, 2016      July 1, 2016                  0.3984
February 1       March 15, 2016     April 1, 2016                 0.3984

© Edgar Online, source Glimpses

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