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 GGP Reports Full Year 2014 Results
   Wednesday, January 28, 2015 4:01:24 PM ET

--Company FFO per Share Increased 13.7%

--Announces 2015 Guidance

General Growth Properties, Inc. (the "Company" or "GGP") (GGP ) today reported results for the three and twelve months ended December 31, 2014.

Financial Results

For the Three Months Ended December 31, 2014

Company funds from operations ("Company FFO") per share increased 5.1% to $0.38 per diluted share from $0.36 per diluted share in the prior year period. Company FFO increased 3.4% to $357 million from $346 million in the prior year period.

Company earnings before interest, taxes, depreciation and amortization ("Company EBITDA") increased 4.1% to $572 million from $550 million in the prior year period.



Comparable net operating income ("Same Store NOI") increased 2.4% to $596 million from $582 million in the prior year period.

Net income attributable to GGP, which is impacted primarily by depreciation expense, gain from sales, and changes in control of investment properties and a gain on extinguishment of a liability, was $289 million, or $0.30 per diluted share, as compared to net income of $77 million, or $0.07 per diluted share, in the prior year period.

For the Twelve Months Ended December 31, 2014

Company FFO per share increased 13.7% to $1.32 per diluted share from $1.16 per diluted share in the prior year period. Company FFO increased 9.4% to $1,256 million from $1,148 million in the prior year period.

Company EBITDA increased 4.9% to $2,088 million from $1,991 million in the prior year period.

Same Store NOI increased 4.5% to $2,207 million from $2,111 million in the prior year period.

Net income attributable to GGP, which is impacted primarily by depreciation expense, gains from sales, and changes in control of investment properties and a gain on extinguishment of a liability, was $666 million, or $0.69 per diluted share, as compared to net income of $303 million, or $0.31 income per diluted share, in the prior year period.

Operational Highlights

-- Same Store leased percentage was 97.2% at quarter end, an increase of 10 basis points from December 31, 2013.

-- Initial rental rates for executed leases commencing in 2014 on a suite-to-suite basis increased 18.3%, or $9.63 per square foot, to $62.26 per square foot when compared to the rental rate for expiring leases.

-- Tenant sales (all less anchors) increased 2.8% to $20.5 billion on a trailing 12-month basis. Tenant sales (<10,000 square feet) increased 1.0% to $570 per square foot on a trailing 12-month basis.

-- Tenant sales (all less anchors) increased 5.4% and tenant sales (<10,000 square feet) increased 4.8% per square foot during the fourth quarter.

Financing Activities

Property-Level Debt

During the three months ended December 31, 2014, the Company obtained $372 million ($311 million at share) of new fixed and variable rate debt at two of its existing properties with a weighted average term to maturity of 6.6 years (6.0 years at share) and a weighted average interest rate of 2.85% (2.59% at share). The transactions generated approximately $232 million ($241 million at share) of net proceeds, which includes a pay down of $18 million ($9 million at share).

During the year ended December 31, 2014, the Company obtained $2.4 billion ($1.9 billion at share) of new fixed and variable rate debt at 12 of its existing properties with a weighted average term to maturity of 8.4 years (7.8 years at share) and a weighted average interest rate of 3.58% (3.46% at share). The transactions generated approximately $1.2 billion ($935 million at share) of net proceeds. The Company also obtained a $450 million construction loan at Ala Moana Center with a weighted-average interest rate of LIBOR plus 1.90% and amended its $1.4 billion corporate loan secured by cross-collateralized mortgages on 14 properties, lowering the interest rate from LIBOR plus 2.5% to LIBOR plus 1.75%.

Investment Activities

Acquisitions, Dispositions, and Joint Venture Activity

During the three months ended December 31, 2014, the Company closed on its previously announced acquisition of a 50% interest in 530 Fifth Avenue in New York City for net equity at share of $49 million. The property comprises approximately 58,000 square feet of retail space.

The Company sold a 49% interest in Bayside Marketplace in Miami, Florida for net proceeds of $71.9 million. As a result, the Company now owns a 51% interest in a newly formed joint venture.

The Company settled its $322 million tax indemnification liability to Howard Hughes Corporation through a $138 million cash payment and the sale of its Columbia office portfolio for $130 million. The settlement resulted in a $77.2 million gain on extinguishment of a liability which is excluded from Company FFO.

The Company sold a strip center for net proceeds of $15.4 million.

During the year ended December 31, 2014, the Company acquired interests in five retail properties comprising approximately 1.3 million square feet of retail space for net equity at share of approximately $406 million and disposed of 11 properties and sold a joint venture interest in one property for net proceeds of $230.5 million.

The Company has entered into an agreement to acquire the Crown Building in New York City located at 730 Fifth Avenue for approximately $1.775 billion ($888 million at share). The Company will own a 50% interest through a joint venture. The transaction is expected to close in the second quarter of 2015.

Development

The Company has development and redevelopment activities totaling approximately $2.4 billion at share, of which projects totaling approximately $418 million have opened and $1.2 billion is under construction.

Dividends

The Company’s Board of Directors previously declared a fourth quarter common stock dividend of $0.17 per share payable on January 2, 2015, to stockholders of record on December 15, 2014, representing an increase of $0.03 per share or 21% growth over the dividend declared in fourth quarter 2013.

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 2, 2015, to stockholders of record on December 15, 2014.

Guidance

Company FFO for the year ending December 31, 2015 is expected to be $1.40 to $1.46 per diluted share. Company FFO for the first quarter 2015 is expected to be $0.31 to $0.33 per diluted share. Same Store NOI growth is expected to be approximately 4.5% for the year ending December 31, 2015 and 4.0% for the first quarter 2015.

The following table provides a reconciliation of the range of estimated diluted net income attributable to GGP per share to estimated FFO per diluted share and Company FFO per diluted share.

                                                                        For the year ending                                          For the three months ending
                                                                                            December 31, 2015                                                 March 31, 2015
                                                                     ----------------------------------------------------------------------------------- ---------------------------------------------------------------
                                                                            Low End               High End                Low End               High End
                                                                     -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                  
                                                                     -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Company FFO per diluted share                                                       $1.40                  $1.46                  $0.31                  $0.33
                                                                     -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Adjustments (1)                                                                    (0.05)                 (0.05)                 (0.01)                 (0.01)
                                                                     -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
FFO                                                                                  1.35                   1.41                   0.30                   0.32
                                                                     -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Depreciation, including share of joint ventures                                    (0.84)                 (0.84)                 (0.21)                 (0.21)
                                                                     -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net income attributable to common stockholders                                       0.51                   0.57                   0.09                   0.11
                                                                     -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Preferred stock dividends                                                            0.02                   0.02                   0.00                   0.00
                                                                     -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Net income attributable to GGP                                                      $0.53                  $0.59                  $0.09                  $0.11
                                                                     ==================== ==================== ==================== ==================== ==================== ==================== ====================

(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.

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. 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 Thursday, January 29, 2015, the Company will host a conference call at 8:00 a.m. CST (9:00 a.m. EST). 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 50945427.

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.

Non-GAAP Supplemental Financial Measures and Definitions

Net Operating Income ("NOI") and Company NOI

The Company defines NOI as income from property operations after operating expenses have been deducted, but prior to deducting financing, administrative and income tax expenses. NOI has been reflected on a proportionate 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. The Company considers NOI a helpful supplemental measure of its operating performance because it is a direct measure of the actual results of the Company’s properties. Because NOI excludes general and administrative expenses, interest expense, retail investment property impairment or non-recoverable development costs, depreciation and amortization, gains and losses from property dispositions, allocations to noncontrolling interests, provision for income taxes, discontinued operations, preferred stock dividends, 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.

The Company also considers Company NOI to be a helpful supplemental measure of its operating performance because it excludes from NOI certain non-cash and non-comparable items such as straight-line rent and intangible asset and liability amortization, which are a result of the Company’s acquisition accounting and other capital contribution or restructuring events. However, due to the exclusions noted, Company NOI should only be used as an alternative measure of the Company’s financial performance. The Company presents Company NOI and Company FFO (as defined below), as management of the Company believes certain investors and other users of the Company’s financial information use them as measures of the Company’s historical operating performance.

Funds From Operations ("FFO") and Company FFO

The Company determines FFO based upon the definition set forth by National Association of Real Estate Investment Trusts ("NAREIT"). The Company determines FFO to be its share of consolidated net income (loss) computed in accordance with GAAP, excluding real estate related depreciation and amortization, excluding gains and losses from extraordinary items, excluding cumulative effects of accounting changes, excluding gains and losses from the sales of, or any impairment charges related to, previously depreciated operating properties, plus the allocable portion of FFO of unconsolidated joint ventures based upon the Company’s economic ownership interest, and all determined on a consistent basis in accordance with GAAP. As with the Company’s presentation of NOI, FFO has been reflected on a proportionate basis.

The Company considers FFO a helpful supplemental measure of the operating performance for equity REITs and a complement to GAAP measures because it is a recognized measure of performance by the real estate industry. FFO facilitates an understanding of the operating performance of the Company’s properties between periods because it 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.

As with the Company’s presentation of Company NOI, the Company also considers Company FFO to be a helpful supplemental measure of the operating performance for equity REITs because it excludes from FFO certain items that are non-cash and certain non-comparable items such as Company NOI adjustments, and FFO items such as mark-to-market adjustments on debt and gains on the extinguishment of debt, warrant liability adjustment, and interest expense on debt repaid or settled all which are a result of the Company’s acquisition accounting and other capital contribution or restructuring events.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures

The Company presents NOI and FFO as they are financial measures widely used in the REIT industry. In order to provide a better understanding of the relationship between the Company’s non-GAAP financial measures of NOI, Company NOI, FFO and Company FFO, reconciliations have been provided as follows: a reconciliation of GAAP operating income to NOI and Company NOI and a reconciliation of net loss attributable to GGP to FFO and Company FFO. None of the Company’s non-GAAP financial measures represents cash flow from operating activities in accordance with GAAP, none should be considered as an alternative to GAAP net income (loss) attributable to GGP and none are necessarily indicative of cash available to fund cash needs. In addition, the Company has presented such financial measures 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.

                                                                                                                                                                                                 
FINANCIAL OVERVIEW
                                                                                                                                                                                                                      
Consolidated Statements of Operations
(In thousands, except per share)
                                                                                                                                                                                                   
                                                                     ---------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------
                                                                                                                         Three Months Ended                                                                                                                               Twelve Months Ended
                                                                     ---------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------
                                                                                      December 31, 2014                                    December 31, 2013                                                        December 31, 2014                                     December 31, 2013
                                                                     ---------------------------------------------------                     ---------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
                                                                                                                                                                                                                                                                                               
Revenues:
  Minimum rents                                                                         $  413,147                                                              $  405,625                                                              $ 1,583,695                                                              $ 1,553,941
  Tenant recoveries                                                                        186,815                                                                 183,024                                                                  739,411                                                                  716,932
  Overage rents                                                                             27,126                                                                  28,610                                                                   51,611                                                                   55,998
  Management fees and other corporate revenues                                              19,128                                                                  18,218                                                                   70,887                                                                   68,792
  Other                                                                  26,806                            35,188                             89,955                             90,354  
                                                                     -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Total revenues                                                          673,022                           670,665                          2,535,559                          2,486,017  
                                                                     -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Expenses:
  Real estate taxes                                                                         55,306                                                                  63,227                                                                  227,992                                                                  239,807
  Property maintenance costs                                                                17,944                                                                  18,560                                                                   66,897                                                                   69,411
  Marketing                                                                                  8,346                                                                   8,171                                                                   23,455                                                                   26,232
  Other property operating costs                                                            82,356                                                                  82,332                                                                  334,819                                                                  342,815
  Provision for doubtful accounts                                                            2,844                                                                     635                                                                    8,055                                                                    3,920
  Property management and other costs                                                       35,702                                                                  41,378                                                                  155,093                                                                  164,457
  General and administrative                                                                11,441                                                                  14,658                                                                   64,051                                                                   49,237
  Provisions for impairment                                                                  5,278                                                                       -                                                                    5,278                                                                        -
  Depreciation and amortization                                         179,478                           188,860                            708,406                            749,722  
                                                                     -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Total expenses                                                          398,695                           417,821                          1,594,046                          1,645,601  
                                                                     -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Operating income                                                        274,327                           252,844                            941,513                            840,416  
                                                                     -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Interest and dividend income                                                                 8,812                                                                   6,423                                                                   28,613                                                                    7,699
Interest expense                                                                          (171,012 )                                                              (173,595 )                                                               (699,285 )                                                               (723,152 )
Loss on Foreign Currency                                                                   (11,031 )                                                                (7,312 )                                                                (18,048 )                                                                 (7,312 )
Warrant liability adjustment                                                                     -                                                                       -                                                                        -                                                                  (40,546 )
Gain from change in control of investment properties                                        91,193                                                                       -                                                                   91,193                                                                  219,784
Loss on extinguishment of debt                                                -                                 -                                  -                            (36,479 )
                                                                     -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Income before income taxes, equity in income of Unconsolidated                             192,289                                                                  78,360                                                                  343,986                                                                  260,410
Real Estate Affiliates, discontinued operations, noncontrolling
interests and preferred stock dividends
(Provision for) benefit from income taxes                                                   (4,417 )                                                                   891                                                                   (7,253 )                                                                   (345 )
Equity in income of Unconsolidated Real Estate Affiliates                27,410                            26,943                             61,278                             68,756  
                                                                     -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Income from continuing operations                                                          215,282                                                                 106,194                                                                  398,011                                                                  328,821
Discontinued operations:
Income (loss) from discontinued operations, including gains (losses)                         1,021                                                                 (25,033 )                                                                137,989                                                                  (37,516 )
on dispositions
Gain on extinguishment of liability                                                         77,215                                                                       -                                                                   77,215                                                                        -
Gain on extinguishment of debt                                                -                                 -                             66,679                             25,894  
                                                                     -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Discontinued operations, net                                             78,236                           (25,033 )                                             281,883                            (11,622 )
                                                                     -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net income                                                                                 293,518                                                                  81,161                                                                  679,894                                                                  317,199
Allocation to noncontrolling interests                                   (4,036 )                                             (3,964 )                                             (14,044 )                                             (14,671 )
                                                                     -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net income attributable to GGP                                                             289,482                                                                  77,197                                                                  665,850                                                                  302,528
Preferred stock dividends                                                (3,984 )                                             (3,984 )                                             (15,936 )                                             (14,078 )
                                                                     -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net income attributable to common stockholders                                          $  285,498                                           $   73,213                                           $   649,914                                           $   288,450  
                                                                     ==================== ======== ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
Basic Income Per Share:
  Continuing operations                                                                 $     0.23                                                              $     0.11                                                              $      0.42                                                              $      0.32
  Discontinued operations                                                  0.09                             (0.03 )                                                0.32                              (0.01 )
                                                                     -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Total basic income per share                                                            $     0.32                                           $     0.08                                           $      0.74                                           $      0.31  
                                                                     ==================== ======== ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
Diluted Income Per Share:
  Continuing operations                                                                 $     0.22                                                              $     0.10                                                              $      0.39                                                              $      0.32
  Discontinued operations                                                  0.08                             (0.03 )                                                0.30                              (0.01 )
                                                                     -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Total diluted income per share                                                          $     0.30                                           $     0.07                                           $      0.69                                           $      0.31  
                                                                     ==================== ======== ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                               
FINANCIAL OVERVIEW
 
Consolidated Balance Sheets
(In thousands)
                                                                                                                                                                                                          
                                                                                                                                                  -----------------------------------------------------                     -----------------------------------------------------
                                                                                                                                                                    December 31, 2014                                                         December 31, 2013
                                                                                                                                                  -----------------------------------------------------                     -----------------------------------------------------
Assets:
Investment in real estate:
                        Land                                                                                                                                         $  4,244,607                                                              $  4,320,597
                        Buildings and equipment                                                                                                                        18,028,844                                                                18,270,748
                        Less accumulated depreciation                                                                                                                  (2,280,845 )                                                              (1,884,861 )
                        Construction in progress                                                                                                       703,859                             406,930  
                                                                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                           Net property and equipment                                                                                  20,696,465                                                                21,113,414
                        Investment in and loans to/from Unconsolidated Real Estate Affiliates                                                        2,604,762                           2,407,698  
                                                                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                           Net investment in real estate                                                                               23,301,227                                                                23,521,112
Cash and cash equivalents                                                                                                                                                 372,471                                                                   577,271
Accounts and notes receivable, net                                                                                                                                        663,768                                                                   478,899
Deferred expenses, net                                                                                                                                                    184,491                                                                   189,452
Prepaid expenses and other assets                                                                                                                      813,777                             995,569  
                                                                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                           Total assets                                                                                              $ 25,335,734                                           $ 25,762,303  
                                                                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Liabilities:
Mortgages, notes and loans payable                                                                                                                                   $ 15,998,289                                                              $ 15,672,437
Investment in and loans to/from Unconsolidated Real Estate Affiliates                                                                                                      35,598                                                                    17,405
Accounts payable and accrued expenses                                                                                                                                     934,897                                                                   970,995
Dividend payable                                                                                                                                                          154,694                                                                   134,476
Deferred tax liabilities                                                                                                                                                   21,240                                                                    24,667
Tax indemnification liability                                                                                                                                                   -                                                                   321,958
Junior Subordinated Notes                                                                                                                              206,200                             206,200  
                                                                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                           Total liabilities                                                                        17,350,918                          17,348,138  
                                                                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
 Redeemable noncontrolling interests:
                        Preferred                                                                                                                                         164,031                                                                   131,881
                        Common                                                                                                                         135,265                              97,021  
                                                                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                           Total redeemable noncontrolling interests                                                   299,296                             228,902  
                                                                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
 Equity:
                        Preferred stock                                                                                                                                   242,042                                                                   242,042
                        Stockholder’s Equity                                                                                                                            7,363,877                                                                 7,861,079
                        Noncontrolling interests in consolidated real estate affiliates                                                                 79,601                              82,142  
                                                                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                           Total equity                                                                              7,685,520                           8,185,263  
                                                                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                           Total liabilities, redeemable noncontrolling interests and equity                                         $ 25,335,734                                           $ 25,762,303  
                                                                                                                                                  -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
PROPORTIONATE FINANCIAL STATEMENTS
                                                                                                                                                                                                                                                           
Company NOI, EBITDA and FFO
For the Three Months Ended December 31, 2014 and 2013
(In thousands)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                               -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------
                                                                                                                                                                                                                                                        Three Months Ended December 31, 2014                                                                                                                                                                                                                                                                                                                                                                                                        Three Months Ended December 31, 2013
                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  Consolidated                                       Noncontrolling                                      Unconsolidated                                                                                                                                                                                                                                           Consolidated                                       Noncontrolling                                      Unconsolidated                                                                        
                                                                                   Properties                                           Interests                                          Properties                                         Proportionate                                         Adjustments                                           Company                                                               Properties                                           Interests                                          Properties                                         Proportionate                                        Adjustments                                           Company
                                                               ----------------------------------------------------------------------- --------------------------------------------------------------------- ---------------------------------------------------------------------- ----------------------------------------------------------------------- ---------------------------------------------------------------------- ---------------------------------------------------                     ----------------------------------------------------------------------- --------------------------------------------------------------------- ---------------------------------------------------------------------- ----------------------------------------------------------------------- --------------------------------------------------------------------- ---------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Property revenues:
  Minimum rents                                                                   $  413,147                                                              $ (4,267 )                                                            $ 106,464                                                              $  515,344                                                              $   3,163                                                              $  518,507                                                              $  405,625                                                              $ (3,463 )                                                            $  97,145                                                              $  499,307                                                              $  5,702                                                              $  505,009
  Tenant recoveries                                                                  186,815                                                                (1,728 )                                                               43,898                                                                 228,985                                                                      -                                                                 228,985                                                                 183,024                                                                (1,254 )                                                               40,595                                                                 222,365                                                                     -                                                                 222,365
  Overage rents                                                                       27,126                                                                  (309 )                                                                7,484                                                                  34,301                                                                      -                                                                  34,301                                                                  28,610                                                                  (241 )                                                                8,369                                                                  36,738                                                                     -                                                                  36,738
  Other revenue                                                    26,806         (323 )                          5,984         32,467             -         32,467                            35,189         (148 )                          5,253         40,294            -         40,294  
-----------------------------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- --------------------
 Total property revenues                                          653,894       (6,627 )                        163,830        811,097         3,163        814,260                           652,448       (5,106 )                        151,362        798,704        5,702        804,406  
-----------------------------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- --------------------
Property operating expenses:
  Real estate taxes                                                                   55,306                                                                  (864 )                                                               14,019                                                                  68,461                                                                 (1,490 )                                                                66,971                                                                  63,227                                                                  (531 )                                                               12,768                                                                  75,464                                                                (1,578 )                                                                73,886
  Property maintenance costs                                                          17,944                                                                  (139 )                                                                5,246                                                                  23,051                                                                      -                                                                  23,051                                                                  18,560                                                                  (128 )                                                                5,052                                                                  23,484                                                                     -                                                                  23,484
  Marketing                                                                            8,346                                                                   (72 )                                                                2,439                                                                  10,713                                                                      -                                                                  10,713                                                                   8,171                                                                   (91 )                                                                2,782                                                                  10,862                                                                     -                                                                  10,862
  Other property operating costs                                                      82,356                                                                  (763 )                                                               21,541                                                                 103,134                                                                 (1,267 )                                                               101,867                                                                  82,332                                                                  (425 )                                                               20,246                                                                 102,153                                                                (1,344 )                                                               100,809
  Provision for doubtful accounts                                   2,844            2           380          3,226             -          3,226                               635            7          (196 )                             446            -            446  
-----------------------------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- --------------------
Total property operating expenses                                 166,796       (1,836 )                         43,625        208,585        (2,757 )                         205,828                           172,925       (1,168 )                         40,652        212,409       (2,922 )                         209,487  
-----------------------------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- --------------------
NOI                                                                               $  487,098                        $ (4,791 )                                         $ 120,205                        $  602,512                        $   5,920                        $  608,432                                           $  479,523                        $ (3,938 )                                         $ 110,710                        $  586,295                        $  8,624                        $  594,919  
-----------------------------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- --------------------
Management fees and other corporate revenues                                          19,128                                                                     -                                                                      -                                                                  19,128                                                                      -                                                                  19,128                                                                  18,218                                                                     -                                                                      -                                                                  18,218                                                                     -                                                                  18,218
Property management and other costs                                                  (35,702 )                                                                 180                                                                 (7,800 )                                                               (43,322 )                                                                    -                                                                 (43,322 )                                                               (41,378 )                                                                 172                                                                 (7,020 )                                                               (48,226 )                                                                   -                                                                 (48,226 )
General and administrative                                        (11,441 )                             -          (501 )                         (11,942 )                              -        (11,942 )                                            (14,658 )                             -          (242 )                         (14,900 )                             -        (14,900 )
-----------------------------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- --------------------
EBITDA                                                                            $  459,083                        $ (4,611 )                                         $ 111,904                        $  566,376                        $   5,920                        $  572,296                                           $  441,705                        $ (3,766 )                                         $ 103,448                        $  541,387                        $  8,624                        $  550,011  
-----------------------------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- --------------------
Depreciation on non-income producing assets                                           (2,751 )                                                                   -                                                                      -                                                                  (2,751 )                                                                    -                                                                  (2,751 )                                                                (3,192 )                                                                   -                                                                      -                                                                  (3,192 )                                                                   -                                                                  (3,192 )
Interest and dividend income                                                           8,812                                                                   386                                                                    587                                                                   9,785                                                                   (205 )                                                                 9,580                                                                   6,423                                                                     -                                                                    184                                                                   6,607                                                                     -                                                                   6,607
Preferred unit distributions                                                          (2,268 )                                                                   -                                                                      -                                                                  (2,268 )                                                                    -                                                                  (2,268 )                                                                (2,280 )                                                                   -                                                                      -                                                                  (2,280 )                                                                   -                                                                  (2,280 )
Preferred stock dividends                                                             (3,984 )                                                                   -                                                                      -                                                                  (3,984 )                                                                    -                                                                  (3,984 )                                                                (3,984 )                                                                   -                                                                      -                                                                  (3,984 )                                                                   -                                                                  (3,984 )
Interest expense:
  Mark-to-market adjustments on debt                                                    (410 )                                                                (100 )                                                                  386                                                                    (124 )                                                                  124                                                                       -                                                                  (1,025 )                                                                 (95 )                                                                  365                                                                    (755 )                                                                 755                                                                       -
  Write-off of mark-to-market adjustments on extinguished debt                             -                                                                     -                                                                      -                                                                       -                                                                      -                                                                       -                                                                    (274 )                                                                   -                                                                 (3,924 )                                                                (4,198 )                                                               4,198                                                                       -
  Interest on existing debt                                                         (170,602 )                                                               1,479                                                                (41,640 )                                                              (210,763 )                                                                    -                                                                (210,763 )                                                              (172,296 )                                                               1,111                                                                (35,782 )                                                              (206,967 )                                                                   -                                                                (206,967 )
Loss on foreign currency                                                             (11,031 )                                                                   -                                                                      -                                                                 (11,031 )                                                               11,031                                                                       -                                                                  (7,312 )                                                                   -                                                                      -                                                                  (7,312 )                                                               7,312                                                                       -
(Provision for) benefit from income taxes                                             (4,417 )                                                                  20                                                                   (339 )                                                                (4,736 )                                                               (2,186 )                                                                (6,922 )                                                                   891                                                                    19                                                                      8                                                                     918                                                                (2,892 )                                                                (1,974 )
FFO from discontinued operations                                   79,227            -           127         79,354       (77,115 )                           2,239                             5,460            -           257          5,717        1,727          7,444  
-----------------------------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- --------------------
                                                                                     351,659                                                                (2,826 )                                                               71,025                                                                 419,858                                                                (62,431 )                                                               357,427                                                                 264,116                                                                (2,731 )                                                               64,556                                                                 325,941                                                                19,724                                                                 345,665
Equity in FFO of Unconsolidated Properties and Noncontrolling      68,199        2,826       (71,025 )                               -             -              -                            61,825        2,731       (64,556 )                               -            -              -  
Interests
                                                               -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------- --------------------
FFO                                                                               $  419,858                        $      -                        $       -                        $  419,858                        $ (62,431 )                                         $  357,427                                           $  325,941                        $      -                        $       -                        $  325,941                        $ 19,724                        $  345,665  
=========================================                      ==================== ======== ==================== ==================== ==================== ====== ==================== ==================== ==================== ======= ==================== ==================== ==================== ======== ==================== ==================== ==================== ======= ==================== ==================== ==================== ======== ====================                      ==================== ======== ==================== ==================== ==================== ====== ==================== ==================== ==================== ======= ==================== ==================== ==================== ======== ==================== ==================== ==================== ====== ==================== ==================== ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Company FFO per diluted share                                                                                                                                                                                                                                                                                                                                                                                                                         $     0.38                                                                                                                                                                                                                                                                                                                                                                                                                                 $     0.36
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
PROPORTIONATE FINANCIAL STATEMENTS
 
Company NOI, EBITDA and FFO
For the Twelve Months Ended December 31, 2014 and 2013
(In thousands)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                               -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------
                                                                                                                                                                                                                                                           Twelve Months Ended December 31, 2014                                                                                                                                                                                                                                                                                                                                                                                                             Twelve Months Ended December 31, 2013
                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   Consolidated                                        Noncontrolling                                      Unconsolidated                                                                                                                                                                                                                                                Consolidated                                        Noncontrolling                                      Unconsolidated                                                                          
                                                                                    Properties                                            Interests                                          Properties                                           Proportionate                                         Adjustments                                             Company                                                                Properties                                            Interests                                          Properties                                           Proportionate                                         Adjustments                                            Company
                                                               ------------------------------------------------------------------------ ---------------------------------------------------------------------- ----------------------------------------------------------------------- ------------------------------------------------------------------------ ----------------------------------------------------------------------- ----------------------------------------------------                     ------------------------------------------------------------------------ ---------------------------------------------------------------------- ----------------------------------------------------------------------- ------------------------------------------------------------------------ ---------------------------------------------------------------------- ----------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Property revenues:
  Minimum rents                                                                   $ 1,583,695                                                              $ (16,609 )                                                            $  391,255                                                              $ 1,958,341                                                              $   25,504                                                              $ 1,983,845                                                              $ 1,553,941                                                              $ (14,143 )                                                            $  361,997                                                              $ 1,901,795                                                              $  27,914                                                              $ 1,929,709
  Tenant recoveries                                                                   739,411                                                                 (6,743 )                                                               172,255                                                                  904,923                                                                       -                                                                  904,923                                                                  716,932                                                                 (4,841 )                                                               159,220                                                                  871,311                                                                      -                                                                  871,311
  Overage rents                                                                        51,611                                                                   (528 )                                                                14,897                                                                   65,980                                                                       -                                                                   65,980                                                                   55,998                                                                   (486 )                                                                15,829                                                                   71,341                                                                      -                                                                   71,341
  Other revenue                                                     89,999        (1,146 )                          16,036         104,889              -         104,889                             90,353          (442 )                          15,958         105,869             -         105,869  
-----------------------------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------- --------------------
 Total property revenues                                         2,464,716       (25,026 )                         594,443       3,034,133         25,504       3,059,637                          2,417,224       (19,912 )                         553,004       2,950,316        27,914       2,978,230  
-----------------------------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------- --------------------
Property operating expenses:
  Real estate taxes                                                                   227,992                                                                 (2,853 )                                                                54,130                                                                  279,269                                                                  (5,958 )                                                                273,311                                                                  239,807                                                                 (2,126 )                                                                51,450                                                                  289,131                                                                 (6,312 )                                                                282,819
  Property maintenance costs                                                           66,897                                                                   (448 )                                                                18,886                                                                   85,335                                                                       -                                                                   85,335                                                                   69,411                                                                   (406 )                                                                16,890                                                                   85,895                                                                      -                                                                   85,895
  Marketing                                                                            23,455                                                                   (229 )                                                                 7,159                                                                   30,385                                                                       -                                                                   30,385                                                                   26,232                                                                   (263 )                                                                 7,840                                                                   33,809                                                                      -                                                                   33,809
  Other property operating costs                                                      334,819                                                                 (3,026 )                                                                84,096                                                                  415,889                                                                  (5,162 )                                                                410,727                                                                  342,815                                                                 (2,068 )                                                                78,695                                                                  419,442                                                                (10,108 )                                                                409,334
  Provision for doubtful accounts                                    8,055           (58 )                           1,373           9,370              -           9,370                              3,920           (29 )                             645           4,536             -           4,536  
-----------------------------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------- --------------------
Total property operating expenses                                  661,218        (6,614 )                         165,644         820,248        (11,120 )                          809,128                            682,185        (4,892 )                         155,520         832,813       (16,420 )                          816,393  
-----------------------------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------- --------------------
NOI                                                                               $ 1,803,498                        $ (18,412 )                                         $  428,799                        $ 2,213,885                        $   36,624                        $ 2,250,509                                           $ 1,735,039                        $ (15,020 )                                         $  397,484                        $ 2,117,503                        $  44,334                        $ 2,161,837  
-----------------------------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------- --------------------
Management fees and other corporate revenues                                           70,887                                                                      -                                                                       -                                                                   70,887                                                                       -                                                                   70,887                                                                   68,792                                                                      -                                                                       -                                                                   68,792                                                                      -                                                                   68,792
Property management and other costs                                                  (155,093 )                                                                  670                                                                 (28,477 )                                                               (182,900 )                                                                     -                                                                 (182,900 )                                                               (164,457 )                                                                  638                                                                 (25,895 )                                                               (189,714 )                                                                    -                                                                 (189,714 )
General and administrative                                         (64,051 )                              2         (4,389 )                          (68,438 )                          17,854         (50,584 )                                             (49,237 )                              -           (991 )                          (50,228 )                              -         (50,228 )
-----------------------------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------- --------------------
EBITDA                                                                            $ 1,655,241                        $ (17,740 )                                         $  395,933                        $ 2,033,434                        $   54,478                        $ 2,087,912                                           $ 1,590,137                        $ (14,382 )                                         $  370,598                        $ 1,946,353                        $  44,334                        $ 1,990,687  
-----------------------------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------- --------------------
Depreciation on non-income producing assets                                           (11,806 )                                                                    -                                                                       -                                                                  (11,806 )                                                                     -                                                                  (11,806 )                                                                (12,232 )                                                                    -                                                                       -                                                                  (12,232 )                                                                    -                                                                  (12,232 )
Interest and dividend income                                                           28,613                                                                  1,546                                                                   2,155                                                                   32,314                                                                    (484 )                                                                 31,830                                                                    7,699                                                                     (1 )                                                                   533                                                                    8,231                                                                      -                                                                    8,231
Preferred unit distributions                                                           (8,965 )                                                                    -                                                                       -                                                                   (8,965 )                                                                     -                                                                   (8,965 )                                                                 (9,287 )                                                                    -                                                                       -                                                                   (9,287 )                                                                    -                                                                   (9,287 )
Preferred stock dividends                                                             (15,936 )                                                                    -                                                                       -                                                                  (15,936 )                                                                     -                                                                  (15,936 )                                                                (14,078 )                                                                    -                                                                       -                                                                  (14,078 )                                                                    -                                                                  (14,078 )
Interest expense:
  Default interest                                                                          -                                                                      -                                                                       -                                                                        -                                                                       -                                                                        -                                                                   (1,306 )                                                                    -                                                                       -                                                                   (1,306 )                                                                1,306                                                                        -
  Mark-to-market adjustments on debt                                                   (3,014 )                                                                 (391 )                                                                 1,512                                                                   (1,893 )                                                                 1,893                                                                        -                                                                   (9,329 )                                                                 (373 )                                                                  (583 )                                                                (10,285 )                                                               10,285                                                                        -
  Write-off of mark-to-market adjustments on extinguished debt                         (9,831 )                                                                    -                                                                       -                                                                   (9,831 )                                                                 9,831                                                                        -                                                                    6,801                                                                      -                                                                  (3,513 )                                                                  3,288                                                                 (3,288 )                                                                      -
  Interest on existing debt                                                          (686,440 )                                                                5,982                                                                (152,794 )                                                               (833,252 )                                                                     -                                                                 (833,252 )                                                               (719,318 )                                                                4,478                                                                (138,545 )                                                               (853,385 )                                                                    -                                                                 (853,385 )
Loss on foreign currency                                                              (18,048 )                                                                    -                                                                       -                                                                  (18,048 )                                                                18,048                                                                        -                                                                   (7,312 )                                                                    -                                                                       -                                                                   (7,312 )                                                                7,312                                                                        -
Warrant liability adjustment                                                                -                                                                      -                                                                       -                                                                        -                                                                       -                                                                        -                                                                  (40,546 )                                                                    -                                                                       -                                                                  (40,546 )                                                               40,546                                                                        -
Loss on extinguishment of debt                                                              -                                                                      -                                                                       -                                                                        -                                                                       -                                                                        -                                                                  (36,479 )                                                                    -                                                                       -                                                                  (36,479 )                                                               36,479                                                                        -
(Provision for) benefit from income taxes                                              (7,253 )                                                                   74                                                                    (633 )                                                                 (7,812 )                                                                (4,961 )                                                                (12,773 )                                                                   (345 )                                                                   72                                                                    (202 )                                                                   (475 )                                                               (2,892 )                                                                 (3,367 )
FFO from discontinued operations                                   161,126             -            865         161,991       (143,350 )                           18,641                             43,658             -         14,707          58,365       (16,701 )                           41,664  
-----------------------------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------- --------------------
                                                                                    1,083,687                                                                (10,529 )                                                               247,038                                                                1,320,196                                                                 (64,545 )                                                              1,255,651                                                                  798,063                                                                (10,206 )                                                               242,995                                                                1,030,852                                                                117,381                                                                1,148,233
Equity in FFO of Unconsolidated Properties and Noncontrolling      236,509        10,529       (247,038 )                                -              -               -                            232,789        10,206       (242,995 )                                -             -               -  
Interests
                                                               -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- --------- --------------------
FFO                                                                               $ 1,320,196                        $       -                        $        -                        $ 1,320,196                        $  (64,545 )                                         $ 1,255,651                                           $ 1,030,852                        $       -                        $        -                        $ 1,030,852                        $ 117,381                        $ 1,148,233  
=========================================                      ==================== ========= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======== ==================== ==================== ==================== ========= ==================== ==================== ==================== ======== ==================== ==================== ==================== ========= ====================                      ==================== ========= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======== ==================== ==================== ==================== ========= ==================== ==================== ==================== ======= ==================== ==================== ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Company FFO per diluted share                                                                                                                                                                                                                                                                                                                                                                                                                              $      1.32                                                                                                                                                                                                                                                                                                                                                                                                                                      $      1.16
                                                                                                                                                                                    
PROPORTIONATE FINANCIAL STATEMENTS
                                                                                                                                                                                                                                             
Reconciliation of Non-GAAP to GAAP Financial Measures
(In thousands)
                                                                                                                                                                                                                                               
                                                                                                                 ---------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                     Three Months Ended                                                                                                                               Twelve Months Ended
                                                                                                                 ---------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    December 31,                                         December 31,                                                             December 31,                                          December 31,
                                                                                                                                        2014                                                 2013                                                                     2014                                                  2013
                                                                                                                 ----------------------------------------------------------------------- ---------------------------------------------------                     ------------------------------------------------------------------------ ----------------------------------------------------
                                                                                                                                                                                                                                                                                                                                           
Reconciliation of Company NOI to GAAP Operating Income
Company NOI                                                                                                                         $  608,432                                                              $  594,918                                                              $ 2,250,509                                                              $ 2,161,837
     Adjustments for minimum rents, real estate taxes and other property                          (5,920 )                          (8,624 )                                             (36,624 )                          (44,334 )
                        operating costs
----------------------- ------------------------------------------------------------------                       -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
                        Proportionate NOI                                                                                              602,512                                                                 586,294                                                                2,213,885                                                                2,117,503
     Unconsolidated Properties                                                                  (120,205 )                        (110,710 )                                            (428,799 )                         (397,484 )
----------------------- --------------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
                        Consolidated Properties                                                                                        482,307                                                                 475,584                                                                1,785,086                                                                1,720,019
Management fees and other corporate revenues                                                                                            19,128                                                                  18,218                                                                   70,887                                                                   68,792
Property management and other costs                                                                                                    (35,702 )                                                               (41,378 )                                                               (155,093 )                                                               (164,457 )
General and administrative                                                                                                             (11,441 )                                                               (14,658 )                                                                (64,051 )                                                                (49,237 )
Provisions for impairment                                                                                                               (5,278 )                                                                     -                                                                   (5,278 )                                                                      -
Depreciation and amortization                                                                                                         (179,478 )                                                              (188,860 )                                                               (708,406 )                                                               (749,722 )
Loss on sales of investment properties                                                                                                       -                                                                       -                                                                      (44 )                                                                      -
Noncontrolling interest in operating income of Consolidated                                                           4,791          3,937                             18,412          15,021  
Properties and other
                                                                                                                 -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Operating income                                                                                                                    $  274,327                        $  252,843                                           $   941,513                        $   840,416  
============================================================================================                     ==================== ======== ==================== ==================== ==================== ======== ====================                      ==================== ========= ==================== ==================== ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                           
Reconciliation of Company EBITDA to GAAP Net Income Attributable
to GGP
Company EBITDA                                                                                                                      $  572,296                                                              $  550,010                                                              $ 2,087,912                                                              $ 1,990,687
     Adjustments for minimum rents, real estate taxes, other property                             (5,920 )                          (8,624 )                                             (54,478 )                          (44,334 )
                        operating costs, and general and administrative
----------------------- ------------------------------------------------------------------                       -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
                        Proportionate EBITDA                                                                                           566,376                                                                 541,386                                                                2,033,434                                                                1,946,353
     Unconsolidated Properties                                                                  (111,904 )                        (103,448 )                                            (395,933 )                         (370,598 )
----------------------- --------------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
                        Consolidated Properties                                                                                        454,472                                                                 437,938                                                                1,637,501                                                                1,575,755
Depreciation and amortization                                                                                                         (179,478 )                                                              (188,860 )                                                               (708,406 )                                                               (749,722 )
Noncontrolling interest in NOI of Consolidated Properties and other                                                                      4,791                                                                   3,937                                                                   18,412                                                                   15,021
Interest income                                                                                                                          8,812                                                                   6,423                                                                   28,613                                                                    7,699
Interest expense                                                                                                                      (171,012 )                                                              (173,595 )                                                               (699,285 )                                                               (723,152 )
Loss on foreign currency                                                                                                               (11,031 )                                                                (7,312 )                                                                (18,048 )                                                                 (7,312 )
Warrant liability adjustment                                                                                                                 -                                                                       -                                                                        -                                                                  (40,546 )
(Provision for) benefit from income taxes                                                                                               (4,417 )                                                                   891                                                                   (7,253 )                                                                   (345 )
Provision for impairment excluded from FFO                                                                                              (5,278 )                                                                     -                                                                   (5,278 )                                                                      -
Equity in income of Unconsolidated Real Estate Affiliates                                                                               27,410                                                                  26,943                                                                   61,278                                                                   68,756
Discontinued operations                                                                                                                 78,236                                                                 (25,033 )                                                                281,883                                                                  (11,622 )
Gains from changes in control of investment properties                                                                                  91,193                                                                       -                                                                   91,193                                                                  219,784
Loss on extinguishment of debt                                                                                                               -                                                                       -                                                                        -                                                                  (36,479 )
Loss on sales of investment properties                                                                                                       -                                                                       -                                                                      (44 )                                                                      -
Allocation to noncontrolling interests                                                                               (4,216 )                          (4,136 )                                             (14,716 )                          (15,309 )
--------------------------------------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Net income attributable to GGP                                                                                                      $  289,482                        $   77,196                                           $   665,850                        $   302,528  
============================================================================================                     ==================== ======== ==================== ==================== ==================== ======== ====================                      ==================== ========= ==================== ==================== ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                           
Reconciliation of Company FFO to GAAP Net Income Attributable to
GGP
Company FFO                                                                                                                         $  357,427                                                              $  345,664                                                              $ 1,255,651                                                              $ 1,148,233
     Adjustments for minimum rents, property operating expenses, general                          62,431        (19,724 )                                              64,545        (117,381 )
                        and administrative, market rate adjustments, debt extinguishment,
                        income taxes and FFO from discontinued operations
----------------------- ------------------------------------------------------------------                       -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
                        Proportionate FFO                                                                                              419,858                                                                 325,940                                                                1,320,196                                                                1,030,852
Depreciation and amortization of capitalized real estate costs                                                                        (229,982 )                                                              (232,408 )                                                               (893,418 )                                                               (915,282 )
Gain from change in control of investment properties                                                                                    91,193                                                                       -                                                                   91,193                                                                  219,784
Preferred stock dividends                                                                                                                3,984                                                                   3,984                                                                   15,936                                                                   14,078
Gains on sales of investment properties                                                                                                 10,368                                                                   9,216                                                                  141,687                                                                    9,026
Noncontrolling interests in depreciation of Consolidated Properties                                                                      2,246                                                                   1,788                                                                    8,731                                                                    7,151
Provision for impairment excluded from FFO                                                                                              (5,278 )                                                                     -                                                                   (5,278 )                                                                      -
Provision for impairment excluded from FFO of discontinued operations                                                                        -                                                                 (25,961 )                                                                      -                                                                  (30,935 )
Redeemable noncontrolling interests                                                                                                     (1,179 )                                                                  (726 )                                                                 (3,228 )                                                                 (2,289 )
Depreciation and amortization of discontinued operations                                                             (1,728 )                          (4,637 )                                              (9,969 )                          (29,857 )
--------------------------------------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Net income attributable to GGP                                                                                                      $  289,482                        $   77,196                                           $   665,850                        $   302,528  
============================================================================================                     ==================== ======== ==================== ==================== ==================== ======== ====================                      ==================== ========= ==================== ==================== ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                           
Reconciliation of Equity in NOI of Unconsolidated Properties to
GAAP Equity in Income of Unconsolidated Real Estate Affiliates
Equity in Unconsolidated Properties:
                        NOI                                                                                                         $  120,205                                                              $  110,710                                                              $   428,799                                                              $   397,484
                        Net property management fees and costs                                                                          (7,800 )                                                                (7,020 )                                                                (28,477 )                                                            $   (25,895 )
     General and administrative and provisions for impairment                                       (501 )                            (242 )                                              (4,389 )                             (991 )
----------------------- --------------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
                        EBITDA                                                                                                         111,904                                                                 103,448                                                                  395,933                                                                  370,598
                        Net interest expense                                                                                           (40,667 )                                                               (39,157 )                                                               (149,127 )                                                               (142,108 )
                        Provision for income taxes                                                                                        (339 )                                                                     8                                                                     (633 )                                                                   (202 )
     FFO of discontinued Unconsolidated Properties                                                   127            257                                865          14,707  
----------------------- --------------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
FFO of Unconsolidated Properties                                                                                                        71,025                                                                  64,556                                                                  247,038                                                                  242,995
Depreciation and amortization of capitalized real estate costs                                                                         (53,334 )                                                               (46,817 )                                                               (197,129 )                                                               (184,115 )
Other, including gain on sales of investment properties                                                               9,719          9,204                             11,369           9,876  
--------------------------------------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- -------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Equity in income of Unconsolidated Real Estate Affiliates                                                                           $   27,410                        $   26,943                                           $    61,278                        $    68,756  
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http://cts.businesswire.com/ct/CT?id=bwnews&sty=20150128006322r1&sid=cmtx6&distro=nx&lang=en

SOURCE: General Growth Properties, Inc.

General Growth Properties, Inc. 
Investor Relations Contact: 
Kevin Berry 
VP Investor Relations 
(312) 960-5529 
kevin.berry@ggp.com


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