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 GGP Reports Fourth Quarter 2016 Results and Declares First Quarter Dividend
   Monday, January 30, 2017 4:01:01 PM ET

GGP Inc. (the "Company" or "GGP") (GGP ) today reported results for the three and twelve months ended December 31, 2016.

Highlights

-- Company Same Store Net Operating Income ("Company Same Store NOI") increased 5.1% and 4.4% from the prior year period for the three and twelve months ended December 31, 2016, respectively.

-- Company earnings before interest, taxes, depreciation and amortization ("Company EBITDA") increased 6.8% and 9.3% from the prior year period for the three and twelve months ended December 31, 2016, respectively.

-- Same Store leased percentage was 97.2% at quarter end.

-- Initial rental rates for signed leases that have commenced in 2016 on a suite-to-suite basis increased 10.1% when compared to the rental rate for expiring leases.

-- Tenant sales (all less anchors) increased 0.9% on a trailing 12-month basis.(1)

-- For the month of December, tenant sales (all less anchors) increased 2% and sales per square foot (<10,000 square feet) increased 3.1% over the prior year.

-- The Company declared a first quarter common stock dividend of $0.22 per share, an increase of 16% over the first quarter of 2016.

GAAP Operating Results

For the three months ended December 31, 2016, net income attributable to GGP was $236 million, or $0.24 per diluted share, as compared to $194 million, or $0.20 per diluted share, in the prior year period. For the twelve months ended December 31, 2016, net income attributable to GGP was $1.3 billion, or $1.34 per diluted share, as compared to $1.37 billion, or $1.43 per diluted share, in the prior year period. Net income attributable to GGP in 2016 and 2015 for the twelve months was impacted primarily by the gains related to the sales and acquisitions of partial interests in two properties.

Company Operating Results

For the three months ended December 31, 2016, Company Funds From Operations ("Company FFO") was $412 million, or $0.43 per diluted share, as compared to $408 million, or $0.43 per diluted share, in the prior year period, an increase of 0.8%. For the twelve months ended December 31, 2016, Company FFO was $1.47 billion, or $1.53 per diluted share, as compared to $1.38 billion, or $1.44 per diluted share, in the prior year period, an increase of 6.7%.

1 Excludes Christiana Mall due to unusual changes in sales productivity.

Investment Activities

Development

The Company’s development and redevelopment activities total $1.3 billion, of which approximately $0.6 billion is under construction and $0.7 billion is in the pipeline.

Acquisitions

The Company acquired its joint venture partner’s interest in Riverchase Galleria in Hoover, Alabama.

The Company acquired 605 N. Michigan Avenue in Chicago, Illinois.

The Company acquired interests in five Macy’s boxes, including the boxes at Tysons Galleria and Stonestown Galleria.

Common Share Repurchase

During the quarter, the Company acquired approximately 1.89 million of its common shares at a weighted average price of $24.47 per share for total consideration of approximately $46 million.

Dividends

On January 30, 2017, the Company’s Board of Directors declared a first quarter common stock dividend of $0.22 per share payable on April 28, 2017, to stockholders of record on April 13, 2017. This represents an increase of $0.03 per share or 16% growth over the dividend declared for the first quarter of 2016.

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 April 3, 2017, to stockholders of record on March 15, 2017.

On January 27, 2017, the Company paid a special common stock dividend of $0.26 per share to stockholders of record on December 27, 2016.

Guidance

                                                                         
                                                       For the year ending                                   For the Quarter ending
Earnings Guidance                                       December 31, 2017                                        March 31, 2017
---------------------------------------------- ---------------------------------                       ---------------------------------
                                                                  
---------------------------------------------- -----------------------------------                     -----------------------------------
Net income attributable to GGP                  $0.63- $0.68                                            $0.12- $0.14
Preferred stock dividends                              (0.02 )                                                 (0.01 )
                                               ------------- --------------------                      ------------- --------------------
Net income attributable to common stockholders $0.61 - $0.66                                           $0.11 - $0.13
Depreciation, including share of JVs                    0.92                                 0.23  
                                               ------------- --------------------                      ------------- --------------------
NAREIT FFO                                     $1.53 - $1.58                                           $0.34 - $0.36
Adjustments (1)                                         0.03                                 0.01  
                                               ------------- --------------------                      ------------- --------------------
Company FFO per diluted share                  $1.56 - $1.61                        $0.35 - $0.37  
---------------------------------------------- ------------- --------------------                      ------------- --------------------

-- Includes impact of straight-line rent, above/below market rent, gain/loss on foreign currency and the related provision for income taxes, and other items. For discussion on the purpose and use of these adjustments please see the Non-GAAP Supplemental Financial Measures and Definitions section.

The guidance estimate reflects management’s view of current and future market conditions, including assumptions with respect to Company Same Store NOI and Operating Income 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 future gains or losses, or the impact on operating results from future property acquisitions or dispositions or capital market activity. Earnings per share estimates may be subject to fluctuations as a result of several factors, including any gains or losses associated with disposition activity. By definition, FFO and Company FFO exclude real estate-related depreciation and amortization, provisions for impairment, or gains or losses associated with property disposition activities. This guidance is a forward-looking statement and is subject to the risks and other factors described elsewhere in this release and in the Company’s annual and quarterly periodic reports filed with the Securities and Exchange Commission.

Investor Conference Call

On Tuesday, January 31, 2017, the Company will host a conference call at 8:00 a.m. Central (9:00 a.m. Eastern). The conference call will be accessible by telephone and through the Internet. Interested parties can access the call by dialing 877.845.1018 (international 707.287.9345). A live webcast of the conference call will be available in listen-only mode in the Investors section at www.ggp.com. Interested parties should access the conference call or website 10 minutes prior to the beginning of the call in order to register. For those unable to listen to the call live, a replay will be available after the conference call event. To access the replay, dial 855.859.2056 (international 404.537.3406) conference ID 35145485.

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 assumptions, 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.investor.ggp.com from time to time.

GGP Inc.

GGP 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

Proportionate or At Share Basis

The following Non-GAAP supplemental financial measures are all presented on a proportionate basis. The proportionate financial information presents the consolidated and unconsolidated properties at the Company’s ownership percentage or "at share". This form of presentation offers insights into the financial performance and condition of the Company as a whole, given the significance of the Company’s unconsolidated property operations that are owned through investments accounted for under GAAP using the equity method.

The proportionate financial information is not, and is not intended to be, a presentation in accordance with GAAP. The non-GAAP proportionate financial information reflects our proportionate economic ownership of each asset in our property portfolio that we do not wholly own. The amounts shown in the columns labeled "Consolidated Properties at Share" reflect the Company’s Consolidated Properties at our proportionate share (excluding noncontrolling interests and unconsolidated properties). The amounts in the column labeled "Unconsolidated Properties" were derived on a property-by-property basis by including our share of each line item from each individual entity. This provides visibility into our share of the operations of our joint ventures.

We do not control the unconsolidated joint ventures and the presentations of the assets and liabilities and revenues and expenses do not represent our legal claim to such items. The operating agreements of the unconsolidated joint ventures generally provide that partners may receive cash distributions (1) to the extent there is available cash from operations, (2) upon a capital event, such as a refinancing or sale or (3) upon liquidation of the venture. The amount of cash each partner receives is based upon specific provisions of each operating agreement and varies depending on factors including the amount of capital contributed by each partner and whether any contributions are entitled to priority distributions. Upon liquidation of the joint venture and after all liabilities, priority distributions and initial equity contributions have been repaid, the partners generally would be entitled to any residual cash remaining based on their respective legal ownership percentages.

We provide Non-GAAP proportionate financial information because we believe it assists investors and analysts in estimating our economic interest in our unconsolidated joint ventures when read in conjunction with the Company’s reported results under GAAP. Other companies in our industry may calculate their proportionate interest differently than we do, limiting the usefulness as a comparative measure. Because of these limitations, the Non-GAAP proportionate financial information should not be considered in isolation or as a substitute for our financial statements as reported under GAAP.

Net Operating Income ("NOI"), Company NOI and Company Same Store NOI

The Company defines NOI as proportionate income from operations and after operating expenses have been deducted, but prior to deducting financing, property management, administrative and income tax expenses. NOI excludes management fees and other corporate revenue and reductions in ownership as a result of sales or other transactions. The Company considers NOI a helpful supplemental measure of its operating performance because it is a direct measure of the actual results of our properties. Because NOI excludes reductions in ownership as a result of sales or other transactions, management fees and other corporate revenue, general and administrative and property management 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, 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 items such as straight-line rent, and amortization of intangibles resulting from 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.

We present Company NOI, Company EBITDA and Company FFO (as defined below); as we believe certain investors and other users of our financial information use these measures of the Company’s historical operating performance.

Adjustments to NOI, EBITDA and FFO, including debt extinguishment costs, market rate adjustments on debt, straight-line rent, intangible asset and liability amortization, real estate tax stabilization, gains and losses on foreign currency and other items that are not a result of normal operations, assist management and investors in distinguishing whether increases or decreases in revenues and/or expenses are due to growth or decline of operations at the properties or from other factors. In addition, the Company’s leases include step rents that increase over the term of the lease to compensate the Company for anticipated increases in market rentals over time. The Company’s leases do not include significant front loading or back loading of payments or significant rent-free periods. Therefore, we find it useful to evaluate rent on a contractual basis as it allows for comparison of existing rental rates to market rental rates. Management has historically made these adjustments in evaluating our performance, in our annual budget process and for our compensation programs.

The Company defines Company Same Store NOI as Company NOI excluding periodic effects of full or partial acquisitions of properties and certain redevelopments (for the list of properties included in Company Same Store NOI see the Property Schedule in our Supplemental Information). We do not include an acquired property in our Company Same Store NOI until the operating results for that property have been included in our consolidated results for one full calendar year. Properties that we sell are excluded from Company NOI and Company Same Store NOI for all periods once the transaction has closed.

The Company considers Company Same Store NOI a helpful supplemental measure of its operating performance because it assists management and investors in distinguishing whether increases or decreases in revenues and/or expenses are due to growth or decline of operations at comparable properties or from other factors, such as the effect of acquisitions. For these reasons, we believe that Company Same Store NOI, when combined with GAAP operating income provides useful information to investors and management.

Other REITs may use different methodologies for calculating, NOI, Company NOI and Company Same Store NOI, and accordingly, the Company’s Company Same Store NOI may not be comparable to other REITs. As a result of the elimination of corporate-level costs and expenses and depreciation and amortization, the Company Same Store NOI we present does not represent our total revenues, expenses, operating profit or net income and should not be used to evaluate our performance as a whole. Management compensates for these limitations by separately considering the impact of these excluded items, to the extent they are material, to operating decisions or assessments of our operating performance. Our consolidated GAAP statements of operations include such amounts, all of which should be considered by investors when evaluating our performance.

Earnings Before Interest Expense, Income Tax, Depreciation, and Amortization ("EBITDA") and Company EBITDA

The Company defines EBITDA as NOI less certain property management and administrative expenses, net of management fees and other corporate revenues. EBITDA is a commonly used measure of performance in many industries, but may not be comparable to measures calculated by other companies. Management believes EBITDA provides useful information to investors regarding our results of operations because it helps us and our investors evaluate the ongoing operating performance of our properties after removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization). Management also believes the use of EBITDA facilitates comparisons between us and other equity REITs, retail property owners who are not REITs and other capital-intensive companies. Management uses Company EBITDA to evaluate property-level results and as one measure in determining the value of acquisitions and dispositions and, like FFO and Same Store NOI (discussed below), it is widely used by management in the annual budget process and for compensation programs. Please see adjustments discussion above for the purpose and use of the adjustments included in Company EBITDA.

EBITDA and Company EBITDA, as presented, may not be comparable to similar measures calculated by other companies. This information should not be considered as an alternative to net income, operating profit, cash from operations or any other operating performance measure calculated in accordance with GAAP.

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.

We calculate FFO in accordance with standards established by NAREIT, which may not be comparable to measures calculated by other companies who do not use the NAREIT definition of FFO or do not calculate FFO in accordance with NAREIT guidance. In addition, although FFO is a useful measure when comparing our results to other REITs, it may not be helpful to investors when comparing us to non-REITs. As with the presentation of Company NOI and Company EBITDA, we also consider Company FFO, which is not in accordance with NAREIT guidance and may not be comparable to measures calculated by other REITs, to be a helpful supplemental measure of our operating performance. Please see adjustments discussion above for the purpose and use of the adjustments included in Company FFO.

FFO and Company FFO do not represent cash flow from operations as defined by GAAP, should not be considered as an alternative to net income determined in accordance with GAAP as a measure of operating performance, and is not an alternative to cash flows as a measure of liquidity or indicative of funds available to fund our cash needs. In addition, Company FFO per diluted share does not measure, and should not be used as a measure of, amounts that accrue directly to stockholders’ benefit.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures

The Company presents NOI, EBITDA 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, EBITDA, Company EBITDA, FFO and Company FFO, reconciliations have been provided as follows: a reconciliation of GAAP operating income to Company NOI and Company Same Store NOI, a reconciliation of GAAP net income attributable to GGP to EBITDA and Company EBITDA, and a reconciliation of GAAP net income 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 flow. In addition, the Company has presented such financial measures on a consolidated and unconsolidated basis (at the Company’s proportionate share) as the Company believes that given the significance of the Company’s operations that are owned through investments accounted for by 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.

GAAP FINANCIAL STATEMENTS

Consolidated Balance Sheets (In thousands)

                                                                                                        December 31, 2016                                      December 31, 2015
                                                                                                                                               -----------------------------------------------------                     -----------------------------------------------------
Assets:
Investment in real estate:
                     Land                                                                                                                                         $  3,066,019                                                              $  3,596,354
                     Buildings and equipment                                                                                                                        16,091,582                                                                16,379,789
                     Less accumulated depreciation                                                                                                                  (2,737,286 )                                                              (2,452,127 )
                     Construction in progress                                                                                                       251,616                             308,903  
                                                                                                                                               -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                        Net property and equipment                                                                                  16,671,931                                                                17,832,919
                     Investment in and loans to/from Unconsolidated Real Estate Affiliates                                                        3,868,993                           3,506,040  
                                                                                                                                               -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                        Net investment in real estate                                                                               20,540,924                                                                21,338,959
Cash and cash equivalents                                                                                                                                              474,757                                                                   356,895
Accounts receivable, net                                                                                                                                               322,196                                                                   336,572
Notes receivable, net                                                                                                                                                  678,496                                                                   641,445
Deferred expenses, net                                                                                                                                                 209,852                                                                   214,578
Prepaid expenses and other assets                                                                                                                                      506,521                                                                   968,873
Assets held for disposition                                                                                                                               -                             216,233  
                                                                                                                                               -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                        Total assets                                                                                              $ 22,732,746                                           $ 24,073,555  
                                                                                                                                               -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Liabilities:
Mortgages, notes and loans payable                                                                                                                                $ 12,430,418                                                              $ 14,216,160
Investment in Unconsolidated Real Estate Affiliates                                                                                                                     39,506                                                                    38,488
Accounts payable and accrued expenses                                                                                                                                  655,362                                                                   784,493
Dividend payable                                                                                                                                                       433,961                                                                   172,070
Deferred tax liabilities                                                                                                                                                 3,843                                                                     1,289
Junior Subordinated Notes                                                                                                                                              206,200                                                                   206,200
Liabilities held for disposition                                                                                                                          -                              58,934  
                                                                                                                                               -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                        Total liabilities                                                                        13,769,290                          15,477,634  
                                                                                                                                               -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Redeemable noncontrolling interests:
                     Preferred                                                                                                                                         144,060                                                                   157,903
                     Common                                                                                                                         118,667                             129,724  
                                                                                                                                               -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                        Total redeemable noncontrolling interests                                                   262,727                             287,627  
                                                                                                                                               -------------------- ---------- --------------------                      -------------------- ---------- --------------------
 Equity:
                     Preferred stock                                                                                                                                   242,042                                                                   242,042
                     Stockholders’ Equity                                                                                                                            8,393,722                                                                 8,028,001
                     Noncontrolling interests in consolidated real estate affiliates                                                                                    33,583                                                                    24,712
                     Noncontrolling interests related to long-term incentive plan common                                                             31,382                              13,539  
                     units
                                                                                                                                               -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                        Total equity                                                                              8,700,729                           8,308,294  
                                                                                                                                               -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                        Total liabilities, redeemable noncontrolling interests and equity                                         $ 22,732,746                                           $ 24,073,555  
                                                                                                                                               -------------------- ---------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                                                                          

GAAP FINANCIAL STATEMENTS

Consolidated Statements of Income (In thousands, except per share)

                                                                                                                       Three Months Ended                                                                                                            Twelve Months Ended
                                                                                      ---------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------
                                                                                                       December 31, 2016                                    December 31, 2015                                                        December 31, 2016                                     December 31, 2015
                                                                                      ---------------------------------------------------                     ---------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
                                                                                                                                                                                                                                                                                                                
Revenues:
   Minimum rents                                                                                         $  367,484                                                              $  387,230                                                              $ 1,449,704                                                              $ 1,481,614
   Tenant recoveries                                                                                        163,838                                                                 171,496                                                                  668,081                                                                  689,536
   Overage rents                                                                                             23,510                                                                  25,269                                                                   42,534                                                                   44,024
   Management fees and other corporate revenues                                                              22,728                                                                  21,282                                                                   95,814                                                                   86,595
   Other                                                                                  32,775                            39,357                             90,313                            102,137  
                                                                                      -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Total revenues                                                                           610,335                           644,634                          2,346,446                          2,403,906  
                                                                                      -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Expenses:
   Real estate taxes                                                                                         55,985                                                                  52,458                                                                  229,635                                                                  222,883
   Property maintenance costs                                                                                14,013                                                                  15,548                                                                   55,027                                                                   60,040
   Marketing                                                                                                  6,120                                                                   9,110                                                                   13,155                                                                   21,958
   Other property operating costs                                                                            67,117                                                                  74,923                                                                  282,591                                                                  302,797
   Provision for doubtful accounts                                                                            2,353                                                                   1,882                                                                    8,038                                                                    8,081
   Property management and other costs                                                                       31,815                                                                  39,709                                                                  138,602                                                                  161,556
   Provision for loan loss                                                                                      205                                                                       -                                                                   29,615                                                                        -
   General and administrative                                                                                14,432                                                                  13,010                                                                   55,745                                                                   50,405
   Provision for impairment                                                                                       -                                                                   8,604                                                                   73,039                                                                    8,604
   Depreciation and amortization                                                         161,477                           160,663                            660,746                            643,689  
                                                                                      -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Total expenses                                                                           353,517                           375,907                          1,546,193                          1,480,013  
                                                                                      -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Operating income                                                                         256,818                           268,727                            800,253                            923,893  
                                                                                      -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Interest and dividend income                                                                                 16,453                                                                  14,358                                                                   59,960                                                                   49,254
Interest expense                                                                                           (133,862 )                                                              (147,386 )                                                               (571,200 )                                                               (607,675 )
(Loss) gain on foreign currency                                                                              (2,086 )                                                                 1,555                                                                   14,087                                                                  (44,984 )
(Loss) gain from changes in control of investment properties and                         (10,512 )                                             11,780                            722,904                            634,367  
other
                                                                                      -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Income before income taxes, equity in income of Unconsolidated                                              126,811                                                                 149,034                                                                1,026,004                                                                  954,855
Real Estate
Affiliates, and noncontrolling interests
(Provision for) benefit from income taxes                                                                      (173 )                                                                 9,253                                                                     (901 )                                                                 38,334
Equity in income of Unconsolidated Real Estate Affiliates                                                   103,856                                                                  32,275                                                                  231,615                                                                   73,390
Unconsolidated Real Estate Affiliates - gain on investment                                10,790                             6,067                             51,555                            327,017  
                                                                                      -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net income                                                                                                  241,284                                                                 196,629                                                                1,308,273                                                                1,393,596
Allocation to noncontrolling interests                                                    (4,824 )                                             (2,588 )                                             (19,906 )                                             (19,035 )
                                                                                      -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net income attributable to GGP                                                                              236,460                                                                 194,041                                                                1,288,367                                                                1,374,561
Preferred stock dividends                                                                 (3,984 )                                             (3,984 )                                             (15,935 )                                             (15,937 )
                                                                                      -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net income attributable to common stockholders                                                           $  232,476                                           $  190,057                                           $ 1,272,432                                           $ 1,358,624  
                                                                                      ==================== ======== ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                       
                                                                                      ---------------------------------------------------                     ---------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
Basic earnings per share                                                                                 $     0.26                                           $     0.22                                           $      1.44                                           $      1.54  
                                                                                      ==================== ======== ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
Diluted earnings per share                                                                               $     0.24                                           $     0.20                                           $      1.34                                           $      1.43  
                                                                                      -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                               

NON-GAAP PROPORTIONATE FINANCIAL INFORMATION

Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share)

                                                                                                   Three Months Ended                                                                                                           Twelve Months Ended
                                                                                                        -------------------------------------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------------------------------------
                                                                                                                         December 31, 2016                                    December 31, 2015                                                       December 31, 2016                                     December 31, 2015
                                                                                                        ------------------------------------------------   -------------------- -----------------------------------------------                        -------------------------------------------------   -------------------- -------------------------------------------------
Reconciliation of GAAP Operating Income                                                                                                                                                                                                                                                  
to Company Same Store NOI
--------------------------------------------------------------------------------
Operating Income                                                                                                           $  256,818                                                              $ 268,727                                                              $   800,253                                                              $   923,893
Loss (gain) on sales of investment properties                                                                                       -                                                                    188                                                                    1,017                                                                     (499 )
Depreciation and amortization                                                                                                 161,477                                                                160,663                                                                  660,746                                                                  643,689
Provision for loan loss                                                                                                           205                                                                      -                                                                   29,615                                                                        -
Provision for impairment                                                                                                            -                                                                  8,604                                                                   73,039                                                                    8,604
General and administrative                                                                                                     14,432                                                                 13,010                                                                   55,745                                                                   50,405
Property management and other costs                                                                                            31,815                                                                 39,709                                                                  138,602                                                                  161,556
Management fees and other corporate revenues                                                               (22,728 )                        (21,282 )                                             (95,814 )                          (86,595 )
-----------------------------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
                      Consolidated Properties                                                                                 442,019                                                                469,619                                                                1,663,203                                                                1,701,053
                      Noncontrolling interest in NOI of Consolidated Properties                                                (4,346 )                                                               (5,205 )                                                                (15,425 )                                                                (18,525 )
                      NOI of sold interests                                                                                       452                                                                (27,921 )                                                                (42,747 )                                                               (103,021 )
   Unconsolidated Properties                                                            194,540       166,191                            725,479         578,841  
--------------------- -------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
                      Proportionate NOI                                                                                       632,665                                                                602,684                                                                2,330,510                                                                2,158,348
Company adjustments:
                      Minimum rents                                                                                             1,549                                                                 (1,034 )                                                                 15,609                                                                   26,556
                      Real estate taxes                                                                                         1,490                                                                  1,490                                                                    5,958                                                                    5,958
   Property operating expenses                                                            1,001         1,030                              3,992           4,086  
--------------------- -------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Company NOI                                                                                                                   636,705                                                                604,170                                                                2,356,069                                                                2,194,948
Company Non-Same Store NOI                                                                                  22,339        19,493                            119,430          52,893  
-----------------------------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Company Same Store NOI                                                                                                     $  614,366                        $ 584,677                                           $ 2,236,639                        $ 2,142,055  
-----------------------------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                 
Reconciliation of GAAP Net Income
Attributable to GGP to Company EBITDA
--------------------------------------------------------------------------------
Net Income Attributable to GGP                                                                                             $  236,460                                                              $ 194,041                                                              $ 1,288,367                                                              $ 1,374,561
Allocation to noncontrolling interests                                                                                          4,824                                                                  2,588                                                                   19,906                                                                   19,035
Loss (gain) on sales of investment properties                                                                                       -                                                                    188                                                                    1,017                                                                     (499 )
Loss (gains) from changes in control of investment properties and                                                              10,512                                                                (11,780 )                                                               (722,904 )                                                               (634,367 )
other
Unconsolidated Real Estate Affiliates - gain on investment                                                                    (10,790 )                                                               (6,067 )                                                                (51,555 )                                                               (327,017 )
Equity in income of Unconsolidated Real Estate Affiliates                                                                    (103,856 )                                                              (32,275 )                                                               (231,615 )                                                                (73,390 )
Provision for loan loss                                                                                                           205                                                                      -                                                                   29,615                                                                        -
Provision for impairment                                                                                                            -                                                                  8,604                                                                   73,039                                                                    8,604
Provision for (benefit from) income taxes                                                                                         173                                                                 (9,253 )                                                                    901                                                                  (38,334 )
Loss (gain) on foreign currency                                                                                                 2,086                                                                 (1,555 )                                                                (14,087 )                                                                 44,984
Interest expense                                                                                                              133,862                                                                147,386                                                                  571,200                                                                  607,675
Interest and dividend income                                                                                                  (16,453 )                                                              (14,358 )                                                                (59,960 )                                                                (49,254 )
Depreciation and amortization                                                                              161,477       160,663                            660,746         643,689  
-----------------------------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
                      Consolidated Properties                                                                                 418,500                                                                438,182                                                                1,564,670                                                                1,575,687
                      Noncontrolling interest in EBITDA of Consolidated Properties                                             (4,144 )                                                               (5,016 )                                                                (14,808 )                                                                (17,805 )
                      EBITDA of sold interests                                                                                    452                                                                (27,795 )                                                                (42,461 )                                                               (102,327 )
   Unconsolidated Properties                                                            183,696       157,089                            688,155         539,290  
--------------------- -------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
                      Proportionate EBITDA                                                                                    598,504                                                                562,460                                                                2,195,556                                                                1,994,845
Company adjustments:
                      Minimum rents                                                                                             1,549                                                                 (1,034 )                                                                 15,609                                                                   26,556
                      Real estate taxes                                                                                         1,490                                                                  1,490                                                                    5,958                                                                    5,958
   Property operating expenses                                                            1,001         1,030                              3,992           4,086  
--------------------- -------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Company EBITDA                                                                                                             $  602,544                        $ 563,946                                           $ 2,221,115                        $ 2,031,445  
-----------------------------------------------------------------------------------                     -------------------- -------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                                                

NON-GAAP PROPORTIONATE FINANCIAL INFORMATION

Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share)

                                                                                                                                         Three Months Ended                                                                                                           Twelve Months Ended
                                                                                                         ------------------------------------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------------------------------------
                                                                                                                          December 31, 2016                                   December 31, 2015                                                       December 31, 2016                                     December 31, 2015
                                                                                                         -----------------------------------------------   -------------------- -----------------------------------------------                        -------------------------------------------------   -------------------- -------------------------------------------------
Reconciliation of GAAP Net Income                                                                                                                                                                                                                                                        
Attributable to GGP to Company FFO
---------------------------------------------------------------------------------
Net Income Attributable to GGP                                                                                              $ 236,460                                                              $ 194,041                                                              $ 1,288,367                                                              $ 1,374,561
Redeemable noncontrolling interests                                                                                             2,037                                                                   (693 )                                                                  9,971                                                                    7,839
Provision for impairment excluded from FFO                                                                                          -                                                                  8,604                                                                   73,039                                                                    8,604
Noncontrolling interests in depreciation of Consolidated Properties                                                            (1,161 )                                                               (1,850 )                                                                 (6,036 )                                                                 (7,754 )
Unconsolidated Real Estate Affiliates - gain on investment                                                                    (10,790 )                                                               (6,067 )                                                                (51,555 )                                                               (327,017 )
Loss on sales of investment properties                                                                                              -                                                                    163                                                                    1,016                                                                    2,687
Preferred stock dividends                                                                                                      (3,984 )                                                               (3,984 )                                                                (15,935 )                                                                (15,937 )
Loss (gains) from changes in control of investment properties and                                                              10,512                                                                (11,780 )                                                               (722,904 )                                                               (634,367 )
other
Depreciation and amortization of capitalized real estate costs -                                                              157,325                                                                157,722                                                                  645,129                                                                  632,328
Consolidated Properties
Depreciation and amortization of capitalized real estate costs -                                            70,520        72,508                            279,756         258,510  
Unconsolidated Properties
---------------------------------------------------------------------------------                        -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
    FFO                                                                                                    460,919                                                                408,664                                                                1,500,848                                                                1,299,454
Company adjustments:
                       Minimum rents                                                                                            1,549                                                                 (1,034 )                                                                 15,609                                                                   26,556
                       Property operating expenses                                                                              1,490                                                                  1,490                                                                    5,958                                                                    5,958
                       Property management and other costs                                                                      1,001                                                                  1,030                                                                    3,992                                                                    4,086
                       Investment income, net                                                                                    (205 )                                                                 (205 )                                                                   (818 )                                                                   (818 )
                       Market rate adjustments                                                                                 (1,154 )                                                                 (401 )                                                                 (3,247 )                                                                 (1,724 )
                       Gain on extinguishment of debt                                                                         (54,138 )                                                                    -                                                                  (54,138 )                                                                      -
                       Write-off of mark-to-market adjustments on extinguished debt                                                 -                                                                      -                                                                   (2,290 )                                                                  7,229
                       Provision for loan loss                                                                                    205                                                                      -                                                                   22,095                                                                        -
                       Loss (gain) on foreign currency                                                                          2,086                                                                 (1,555 )                                                                (14,087 )                                                                 44,984
                       Benefit from (provision for) income taxes                                                                  404                                                                    615                                                                   (1,857 )                                                                (16,551 )
    FFO from sold interests                                                                   -          (434 )                                                (815 )                            7,632  
---------------------- -------------------------------------------------------------                     -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Company FFO                                                                                                                 $ 412,157                        $ 408,170                                           $ 1,471,250                        $ 1,376,806  
------------------------------------------------------------------------------------                     -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
                        
Reconciliation of Net Income Attributable
to GGP per diluted share to Company FFO per diluted share
---------------------------------------------------------------------------------
Net Income Attributable to GGP per diluted share                                                                            $    0.24                                                              $    0.20                                                              $      1.36                                                              $      1.45
Preferred stock dividends                                                                                        -             -                              (0.02 )                            (0.02 )
------------------------------------------------------------------------------------                     -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Net income attributable to common stockholders per diluted share                                                                 0.24                                                                   0.20                                                                     1.34                                                                     1.43
Redeemable noncontrolling interests                                                                                                 -                                                                      -                                                                     0.01                                                                     0.01
Provision for impairment excluded from FFO                                                                                          -                                                                   0.01                                                                     0.08                                                                     0.01
Noncontrolling interests in depreciation of Consolidated Properties                                                                 -                                                                      -                                                                    (0.01 )                                                                  (0.01 )
Unconsolidated Real Estate Affiliates - gain on investment                                                                      (0.01 )                                                                (0.01 )                                                                  (0.03 )                                                                  (0.34 )
Gains from changes in control of investment properties and other                                                                 0.01                                                                  (0.01 )                                                                  (0.75 )                                                                  (0.66 )
Depreciation and amortization of capitalized real estate costs                                                0.24          0.24                               0.93            0.92  
------------------------------------------------------------------------------------                     -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
                       FFO per diluted share                                                                                     0.48                                                                   0.43                                                                     1.57                                                                     1.36
Company adjustments:
                       Straight-line rent                                                                                           -                                                                      -                                                                     0.02                                                                     0.03
                       Property operating expenses                                                                                  -                                                                      -                                                                     0.01                                                                     0.01
                       Gain on extinguishment of debt                                                                           (0.06 )                                                                    -                                                                    (0.07 )                                                                      -
                       Loan loss provision                                                                                          -                                                                      -                                                                     0.02                                                                        -
                       Loss (gain) on foreign currency                                                                           0.01                                                                      -                                                                    (0.02 )                                                                   0.05
                       Provision for income taxes                                                                                   -                                                                      -                                                                        -                                                                    (0.02 )
    FFO from sold interests                                                                   -             -                                  -            0.01  
---------------------- -------------------------------------------------------------                     -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
Company FFO per diluted share                                                                                               $    0.43                        $    0.43                                           $      1.53                        $      1.44  
------------------------------------------------------------------------------------                     -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- --------- -------------------- -------------------- -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                                                                

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170130006035r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170130006035/en/

SOURCE: GGP

GGP Inc. 
Kevin Berry 
SVP Investor and Public Relations 
(312) 960-5529 
kevin.berry@ggp.com


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