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Delaware
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27-2963337
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(State or other jurisdiction of incorporating or organization)
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(I.R.S. Employer Identification Number)
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110 N. Wacker Dr., Chicago, IL
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60606
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(Address of principal executive offices)
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(Zip Code)
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(312) 960-5000
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(Registrant's telephone number, including area code)
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ý
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Large accelerated filer
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o
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Accelerated filer
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o
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Non-accelerated filer
(Do not check if a smaller reporting company)
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o
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Smaller reporting company
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o
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Emerging growth company
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PAGE
NUMBER
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Part I
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FINANCIAL INFORMATION
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September 30,
2017 |
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December 31,
2016 |
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(Dollars in thousands, except share and per share amounts)
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||||||
Assets:
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Investment in real estate:
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Land
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$
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3,320,747
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$
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3,066,019
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Buildings and equipment
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17,345,596
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16,091,582
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Less accumulated depreciation
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(3,056,259
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)
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(2,737,286
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)
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Construction in progress
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422,218
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251,616
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Net property and equipment
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18,032,302
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16,671,931
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Investment in Unconsolidated Real Estate Affiliates
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3,479,811
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3,868,993
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Net investment in real estate
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21,512,113
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20,540,924
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Cash and cash equivalents
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311,107
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474,757
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Accounts receivable, net
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324,579
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322,196
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Notes receivable
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415,499
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678,496
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Deferred expenses, net
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267,478
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209,852
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Prepaid expenses and other assets
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495,240
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506,521
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Total assets
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$
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23,326,016
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$
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22,732,746
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Liabilities:
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Mortgages, notes and loans payable
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$
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13,493,872
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$
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12,430,418
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Investment in Unconsolidated Real Estate Affiliates
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27,610
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39,506
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Accounts payable and accrued expenses
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778,613
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655,362
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Dividend payable
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199,315
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433,961
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Deferred tax liabilities
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4,890
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3,843
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Junior subordinated notes
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206,200
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206,200
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Total liabilities
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14,710,500
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13,769,290
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Redeemable noncontrolling interests:
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Preferred
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52,256
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144,060
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Common
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173,930
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118,667
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Total redeemable noncontrolling interests
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226,186
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262,727
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Commitments and Contingencies
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—
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—
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Equity:
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Common stock:
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11,000,000,000 shares authorized, $0.01 par value, 956,486,635 issued, 872,760,245 outstanding as of September 30, 2017, and 968,153,526 issued, 884,097,680 outstanding as of December 31, 2016
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9,291
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9,407
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Preferred Stock:
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500,000,000 shares authorized, $0.01 par value, 10,000,000 shares issued and outstanding as of September 30, 2017 and December 31, 2016
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242,042
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242,042
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Additional paid-in capital
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11,312,277
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11,417,597
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Retained earnings (accumulated deficit)
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(2,077,510
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)
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(1,824,866
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)
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Accumulated other comprehensive loss
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(67,700
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)
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(70,456
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)
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Common stock in treasury, at cost, 56,267,195 shares as of September 30, 2017 and 56,596,651 shares as of December 31, 2016
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(1,128,838
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)
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(1,137,960
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)
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Total stockholders' equity
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8,289,562
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8,635,764
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Noncontrolling interests in consolidated real estate affiliates
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54,110
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33,583
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Noncontrolling interests related to long-term incentive plan common units
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45,658
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31,382
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Total equity
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8,389,330
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8,700,729
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Total liabilities, redeemable noncontrolling interests and equity
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$
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23,326,016
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$
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22,732,746
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GGP INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
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Three Months Ended September 30,
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Nine Months Ended September 30,
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2017
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2016
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2017
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2016
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(Dollars in thousands, except per share amounts)
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Revenues:
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Minimum rents
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$
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363,857
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$
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347,676
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$
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1,062,075
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$
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1,082,220
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Tenant recoveries
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160,755
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162,031
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485,737
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504,242
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Overage rents
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4,582
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6,505
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13,799
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19,024
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Management fees and other corporate revenues
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28,806
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20,428
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77,797
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73,087
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Other
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20,357
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17,853
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61,079
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57,539
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Total revenues
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578,357
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554,493
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1,700,487
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1,736,112
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Expenses:
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Real estate taxes
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61,516
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58,239
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178,053
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173,651
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Property maintenance costs
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10,281
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11,576
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35,980
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41,014
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Marketing
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1,744
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2,244
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5,185
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7,036
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|
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Other property operating costs
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75,848
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73,479
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214,742
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215,474
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Provision for doubtful accounts
|
2,152
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|
574
|
|
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8,769
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5,685
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|
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(Recovery of) provision for loan loss
|
—
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(6,659
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)
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—
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29,410
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|
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Property management and other costs
|
35,195
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37,760
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115,334
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106,787
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|
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General and administrative
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12,037
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13,237
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42,582
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41,313
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Provision for impairment
|
—
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28,276
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—
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73,039
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|
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Depreciation and amortization
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161,278
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182,350
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505,875
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499,269
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|
||||
Total expenses
|
360,051
|
|
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401,076
|
|
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1,106,520
|
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1,192,678
|
|
||||
Operating income
|
218,306
|
|
|
153,417
|
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593,967
|
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543,434
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|
||||
Interest and dividend income
|
15,948
|
|
|
14,114
|
|
|
51,336
|
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|
43,507
|
|
||||
Interest expense
|
(135,980
|
)
|
|
(141,296
|
)
|
|
(402,512
|
)
|
|
(437,338
|
)
|
||||
Gain (loss) on foreign currency
|
3,889
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|
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(657
|
)
|
|
3,195
|
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16,172
|
|
||||
Gain on extinguishment of debt
|
—
|
|
|
—
|
|
|
55,112
|
|
|
—
|
|
||||
Gain from changes in control of investment properties and other, net
|
95,165
|
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|
620,309
|
|
|
79,325
|
|
|
733,416
|
|
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Income before income taxes, equity in income of Unconsolidated Real Estate Affiliates and allocation to noncontrolling interests
|
197,328
|
|
|
645,887
|
|
|
380,423
|
|
|
899,191
|
|
||||
Provision for income taxes
|
(6,993
|
)
|
|
(49
|
)
|
|
(15,347
|
)
|
|
(728
|
)
|
||||
Equity in income of Unconsolidated Real Estate Affiliates
|
35,937
|
|
|
35,651
|
|
|
99,884
|
|
|
127,759
|
|
||||
Unconsolidated Real Estate Affiliates - gain on investment, net
|
—
|
|
|
259
|
|
|
—
|
|
|
40,765
|
|
||||
Net income
|
226,272
|
|
|
681,748
|
|
|
464,960
|
|
|
1,066,987
|
|
||||
Allocation to noncontrolling interests
|
(3,492
|
)
|
|
(7,570
|
)
|
|
(9,157
|
)
|
|
(15,083
|
)
|
||||
Net income attributable to GGP Inc.
|
222,780
|
|
|
674,178
|
|
|
455,803
|
|
|
1,051,904
|
|
||||
Preferred Stock dividends
|
(3,984
|
)
|
|
(3,984
|
)
|
|
(11,952
|
)
|
|
(11,951
|
)
|
||||
Net income attributable to common stockholders
|
$
|
218,796
|
|
|
$
|
670,194
|
|
|
$
|
443,851
|
|
|
$
|
1,039,953
|
|
Earnings Per Share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.25
|
|
|
$
|
0.76
|
|
|
$
|
0.50
|
|
|
$
|
1.18
|
|
Diluted
|
$
|
0.23
|
|
|
$
|
0.70
|
|
|
$
|
0.47
|
|
|
$
|
1.09
|
|
Dividends declared per share
|
$
|
0.22
|
|
|
$
|
0.20
|
|
|
$
|
0.66
|
|
|
$
|
0.58
|
|
|
|
|
|
|
|
|
|
GGP INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Continued)
(UNAUDITED)
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(Dollars in thousands, except per share amounts)
|
||||||||||||||
Comprehensive Income, Net:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
226,272
|
|
|
$
|
681,748
|
|
|
$
|
464,960
|
|
|
$
|
1,066,987
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation
|
4,065
|
|
|
(994
|
)
|
|
2,602
|
|
|
14,640
|
|
||||
Reclassification adjustment for realized gains on available-for-sale securities included in net income
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,978
|
)
|
||||
Net unrealized gains on other financial instruments
|
10
|
|
|
(16
|
)
|
|
21
|
|
|
4
|
|
||||
Other comprehensive income (loss)
|
4,075
|
|
|
(1,010
|
)
|
|
2,623
|
|
|
2,666
|
|
||||
Comprehensive income
|
230,347
|
|
|
680,738
|
|
|
467,583
|
|
|
1,069,653
|
|
||||
Comprehensive income allocated to noncontrolling interests
|
(3,674
|
)
|
|
(7,563
|
)
|
|
(9,024
|
)
|
|
(15,079
|
)
|
||||
Comprehensive income attributable to GGP Inc.
|
226,673
|
|
|
673,175
|
|
|
458,559
|
|
|
1,054,574
|
|
||||
Preferred Stock dividends
|
(3,984
|
)
|
|
(3,984
|
)
|
|
(11,952
|
)
|
|
(11,951
|
)
|
||||
Comprehensive income, net, attributable to common stockholders
|
$
|
222,689
|
|
|
$
|
669,191
|
|
|
$
|
446,607
|
|
|
$
|
1,042,623
|
|
GGP INC.
CONSOLIDATED STATEMENTS OF EQUITY
(UNAUDITED)
|
|||||||||||||||||||||||||||||||
|
Common
Stock
|
|
Preferred
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
(Accumulated
Deficit)
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Common
Stock in
Treasury
|
|
Noncontrolling
Interests in Consolidated Real Estate Affiliates and Long Term Incentive Plan Common Units
|
|
Total
Equity
|
||||||||||||||||
|
(Dollars in thousands, except for per share and share amounts)
|
||||||||||||||||||||||||||||||
Balance at January 1, 2016
|
$
|
9,386
|
|
|
$
|
242,042
|
|
|
$
|
11,362,369
|
|
|
$
|
(2,141,549
|
)
|
|
$
|
(72,804
|
)
|
|
$
|
(1,129,401
|
)
|
|
$
|
38,251
|
|
|
$
|
8,308,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
1,051,904
|
|
|
|
|
|
|
|
|
2,835
|
|
|
1,054,739
|
|
||||||||
Distributions to noncontrolling interests in consolidated Real Estate Affiliates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,986
|
)
|
|
(1,986
|
)
|
||||||||
Acquisition/disposition of partner's noncontrolling interests in consolidated Real Estate Affiliates
|
|
|
|
|
(18,416
|
)
|
|
|
|
|
|
|
|
(2,971
|
)
|
|
(21,387
|
)
|
|||||||||||||
Long Term Incentive Plan Common Unit grants, net (684,216 LTIP Units)
|
|
|
|
|
73
|
|
|
(950
|
)
|
|
|
|
|
|
11,651
|
|
|
10,774
|
|
||||||||||||
Restricted stock grants, net (339,551 common shares)
|
3
|
|
|
—
|
|
|
2,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,432
|
|
||||||||
Employee stock purchase program (107,476 common shares)
|
1
|
|
|
|
|
|
3,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,695
|
|
||||||||
Stock options exercised (2,699,998 common shares)
|
27
|
|
|
|
|
|
51,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
51,626
|
|
||||||||
Cancellation of repurchased common shares (270,869 common shares)
|
(2
|
)
|
|
|
|
(3,415
|
)
|
|
(3,356
|
)
|
|
|
|
6,773
|
|
|
|
|
—
|
|
|||||||||||
Cash dividends reinvested (DRIP) in stock
(20,759 common shares)
|
—
|
|
|
—
|
|
|
601
|
|
|
(213
|
)
|
|
|
|
|
|
|
|
|
|
|
388
|
|
||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
14,564
|
|
|
|
|
|
|
|
|
14,564
|
|
||||||||
Amounts reclassified from accumulated other comprehensive income
|
|
|
|
|
|
|
|
|
(11,894
|
)
|
|
|
|
|
|
(11,894
|
)
|
||||||||||||||
Cash distributions declared ($0.58 per share)
|
|
|
|
|
|
|
|
|
|
(512,513
|
)
|
|
|
|
|
|
|
|
|
|
|
(512,513
|
)
|
||||||||
Cash distributions on Preferred Stock
|
|
|
|
|
|
|
|
|
|
(11,951
|
)
|
|
|
|
|
|
|
|
|
|
|
(11,951
|
)
|
||||||||
Fair value adjustment for noncontrolling interest in Operating Partnership
|
|
|
|
|
|
|
(2,377
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,377
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at September 30, 2016
|
$
|
9,415
|
|
|
$
|
242,042
|
|
|
$
|
11,396,557
|
|
|
$
|
(1,618,628
|
)
|
|
$
|
(70,134
|
)
|
|
$
|
(1,122,628
|
)
|
|
$
|
47,780
|
|
|
$
|
8,884,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GGP INC.
CONSOLIDATED STATEMENTS OF EQUITY (Continued)
(UNAUDITED)
|
|||||||||||||||||||||||||||||||
|
Common
Stock
|
|
Preferred
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
(Accumulated
Deficit)
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Common
Stock in
Treasury
|
|
Noncontrolling
Interests in Consolidated Real Estate Affiliates and Long Term Incentive Plan Common Units
|
|
Total
Equity
|
||||||||||||||||
|
(Dollars in thousands, except for per share and share amounts)
|
||||||||||||||||||||||||||||||
Balance at January 1, 2017
|
$
|
9,407
|
|
|
$
|
242,042
|
|
|
$
|
11,417,597
|
|
|
$
|
(1,824,866
|
)
|
|
$
|
(70,456
|
)
|
|
$
|
(1,137,960
|
)
|
|
$
|
64,965
|
|
|
$
|
8,700,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cumulative effect of accounting change
|
|
|
|
|
2,342
|
|
|
(3,000
|
)
|
|
|
|
|
|
658
|
|
|
—
|
|
||||||||||||
Net income
|
|
|
|
|
|
|
|
|
|
455,803
|
|
|
|
|
|
|
|
|
2,171
|
|
|
457,974
|
|
||||||||
Distributions to noncontrolling interests in consolidated Real Estate Affiliates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,472
|
)
|
|
(4,472
|
)
|
||||||||
Acquisition/disposition of partner's noncontrolling interests in consolidated Real Estate Affiliates
|
|
|
|
|
|
|
|
|
|
|
|
|
8,638
|
|
|
8,638
|
|
||||||||||||||
Contributions received from noncontrolling interests in consolidated Real Estate Affiliates
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
15,258
|
|
|
15,258
|
|
|||||||||||||
Long Term Incentive Plan Common Unit grants, net (451,585 LTIP Units)
|
|
|
|
|
|
795
|
|
|
(744
|
)
|
|
|
|
|
|
12,550
|
|
|
12,601
|
|
|||||||||||
Restricted stock grants, net (708,091 common shares)
|
7
|
|
|
—
|
|
|
6,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,799
|
|
||||||||
Employee stock purchase program (127,619 common shares)
|
1
|
|
|
|
|
|
3,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,097
|
|
||||||||
Stock options exercised (443,221 common shares)
|
4
|
|
|
|
|
|
17,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,216
|
|
||||||||
Cancellation of repurchased common shares (12,980,447 common shares)
|
(128
|
)
|
|
|
|
(170,514
|
)
|
|
(112,464
|
)
|
|
|
|
283,106
|
|
|
|
|
—
|
|
|||||||||||
Treasury stock purchase (12,650,991 common shares)
|
|
|
|
|
|
|
|
|
|
|
(273,984
|
)
|
|
|
|
(273,984
|
)
|
||||||||||||||
Cash dividends reinvested (DRIP) in stock (34,625 common shares)
|
—
|
|
|
—
|
|
|
834
|
|
|
(138
|
)
|
|
|
|
|
|
|
|
|
|
|
696
|
|
||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
2,756
|
|
|
|
|
|
|
|
|
2,756
|
|
||||||||
Cash distributions declared ($0.66 per share)
|
|
|
|
|
|
|
|
|
|
(580,149
|
)
|
|
|
|
|
|
|
|
|
|
|
(580,149
|
)
|
||||||||
Cash distributions on Preferred Stock
|
|
|
|
|
|
|
|
|
|
(11,952
|
)
|
|
|
|
|
|
|
|
|
|
|
(11,952
|
)
|
||||||||
Fair value adjustment for noncontrolling interest in Operating Partnership
|
|
|
|
|
|
|
34,123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34,123
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at September 30, 2017
|
$
|
9,291
|
|
|
$
|
242,042
|
|
|
$
|
11,312,277
|
|
|
$
|
(2,077,510
|
)
|
|
$
|
(67,700
|
)
|
|
$
|
(1,128,838
|
)
|
|
$
|
99,768
|
|
|
$
|
8,389,330
|
|
GGP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|||||||
|
Nine Months Ended September 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(Dollars in thousands)
|
||||||
Cash Flows provided by Operating Activities:
|
|
|
|
|
|
||
Net income
|
$
|
464,960
|
|
|
$
|
1,066,987
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||
Equity in income of Unconsolidated Real Estate Affiliates
|
(99,884
|
)
|
|
(127,759
|
)
|
||
Distributions received from Unconsolidated Real Estate Affiliates
|
133,158
|
|
|
79,928
|
|
||
Provision for doubtful accounts
|
8,769
|
|
|
5,685
|
|
||
Depreciation and amortization
|
505,875
|
|
|
499,269
|
|
||
Amortization/write-off of deferred finance costs
|
9,011
|
|
|
8,880
|
|
||
Accretion/write-off of debt market rate adjustments
|
(3,256
|
)
|
|
(4,119
|
)
|
||
Amortization of intangibles other than in-place leases
|
24,874
|
|
|
36,450
|
|
||
Straight-line rent amortization
|
(3,260
|
)
|
|
(13,997
|
)
|
||
Deferred income taxes
|
9,290
|
|
|
(692
|
)
|
||
Cost of debt extinguishment
|
—
|
|
|
5,403
|
|
||
Gain on dispositions, net
|
(4,775
|
)
|
|
(27,266
|
)
|
||
Unconsolidated Real Estate Affiliates - gain on investment, net
|
—
|
|
|
(40,765
|
)
|
||
Gain from changes in control of investment properties and other, net
|
(79,325
|
)
|
|
(733,416
|
)
|
||
Provision for impairment
|
—
|
|
|
73,039
|
|
||
Gain on extinguishment of debt
|
(55,112
|
)
|
|
—
|
|
||
Provision for loan loss
|
—
|
|
|
29,410
|
|
||
Gain on foreign currency
|
(3,195
|
)
|
|
(16,172
|
)
|
||
Net changes:
|
|
|
|
|
|
||
Accounts and notes receivable, net
|
8,740
|
|
|
271
|
|
||
Prepaid expenses and other assets
|
(24,610
|
)
|
|
(9,504
|
)
|
||
Deferred expenses, net
|
(16,380
|
)
|
|
(36,117
|
)
|
||
Restricted cash
|
266
|
|
|
113
|
|
||
Accounts payable and accrued expenses
|
30,844
|
|
|
3,602
|
|
||
Other, net
|
32,327
|
|
|
24,347
|
|
||
Net cash provided by operating activities
|
938,317
|
|
|
823,577
|
|
||
Cash Flows (used in) provided by Investing Activities:
|
|
|
|
|
|
||
Acquisition of real estate and property additions
|
(291,046
|
)
|
|
(94,744
|
)
|
||
Development of real estate and property improvements
|
(451,078
|
)
|
|
(400,429
|
)
|
||
Loans to joint venture partners
|
(53,196
|
)
|
|
(52,970
|
)
|
||
Proceeds from repayment of loans to joint venture partners
|
47,076
|
|
|
7,578
|
|
||
Proceeds from sales of investment properties and Unconsolidated Real Estate Affiliates
|
42,028
|
|
|
1,300,703
|
|
||
Contributions to Unconsolidated Real Estate Affiliates
|
(71,076
|
)
|
|
(103,210
|
)
|
||
Distributions received from Unconsolidated Real Estate Affiliates in excess of income
|
81,763
|
|
|
60,891
|
|
||
Sale of marketable securities
|
—
|
|
|
46,408
|
|
||
Decrease in restricted cash
|
901
|
|
|
28,460
|
|
||
Other, net
|
—
|
|
|
662
|
|
||
Net cash (used in) provided by investing activities
|
(694,628
|
)
|
|
793,349
|
|
||
Cash Flows used in Financing Activities:
|
|
|
|
|
|
||
Proceeds from refinancing/issuance of mortgages, notes and loans payable
|
1,355,000
|
|
|
663,479
|
|
||
Principal payments on mortgages, notes and loans payable
|
(680,715
|
)
|
|
(1,466,675
|
)
|
||
Deferred finance costs
|
(3,133
|
)
|
|
(13,771
|
)
|
||
Treasury stock purchases
|
(267,788
|
)
|
|
—
|
|
||
Cash contributions from noncontrolling interests in consolidated real estate affiliates
|
15,258
|
|
|
—
|
|
||
Cash distributions to noncontrolling interests in consolidated real estate affiliates
|
(4,472
|
)
|
|
(23,075
|
)
|
|
Years
|
Buildings and improvements
|
10 - 45
|
Equipment and fixtures
|
3 - 20
|
Tenant improvements
|
Shorter of useful life or applicable lease term
|
|
Gross Asset
|
|
Accumulated
Amortization
|
|
Net Carrying
Amount
|
||||||
|
|
|
|
|
|
||||||
As of September 30, 2017
|
|
|
|
|
|
|
|
|
|||
Tenant leases:
|
|
|
|
|
|
|
|
|
|||
In-place value
|
$
|
268,207
|
|
|
$
|
(178,885
|
)
|
|
$
|
89,322
|
|
|
|
|
|
|
|
||||||
As of December 31, 2016
|
|
|
|
|
|
||||||
Tenant leases:
|
|
|
|
|
|
||||||
In-place value
|
$
|
306,094
|
|
|
$
|
(214,111
|
)
|
|
$
|
91,983
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Amortization/accretion effect on continuing operations
|
$
|
(15,100
|
)
|
|
$
|
(23,014
|
)
|
|
$
|
(56,417
|
)
|
|
$
|
(72,118
|
)
|
Year
|
|
Amount
|
||
2017 Remaining
|
|
$
|
14,325
|
|
2018
|
|
45,801
|
|
|
2019
|
|
29,249
|
|
|
2020
|
|
20,458
|
|
|
2021
|
|
15,061
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Management fees from affiliates (1)
|
$
|
28,806
|
|
|
$
|
20,428
|
|
|
$
|
77,797
|
|
|
$
|
60,015
|
|
Management fee expense
|
(10,675
|
)
|
|
(8,250
|
)
|
|
(27,684
|
)
|
|
(23,964
|
)
|
||||
Net management fees from affiliates
|
$
|
18,131
|
|
|
$
|
12,178
|
|
|
$
|
50,113
|
|
|
$
|
36,051
|
|
(1)
|
Excludes a
$13.1 million
gain recognized in management fees and other corporate revenues on the divestiture of our investment in Seritage Growth Properties during the
nine months ended September 30, 2016
.
|
•
|
Level 1 - defined as observable inputs such as quoted prices for identical assets or liabilities in active markets;
|
•
|
Level 2 - defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
|
•
|
Level 3 - defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
|
Gain from changes in control for 218 West 57th Street, 530 Fifth Avenue and 685 Fifth Avenue
|
|
||
Net implied fair value of previous investment and consideration
|
$
|
250.0
|
|
Less: proportionate share of previous investments
|
198.1
|
|
|
Gain from changes in control of investment properties and other, net
|
$
|
51.9
|
|
Allocation of Thor Equities Purchase Price
|
218 W. 57th Street
|
530 Fifth Avenue
|
685 Fifth Avenue
|
||||||
Investment in real estate, including intangible assets and liabilities
|
$
|
104.0
|
|
$
|
334.0
|
|
$
|
652.6
|
|
Fair value of debt (1)
|
(53.0
|
)
|
(221.0
|
)
|
(340.0
|
)
|
|||
Net working capital (2)
|
0.1
|
|
14.3
|
|
1.7
|
|
|||
Net assets acquired
|
$
|
51.1
|
|
$
|
127.3
|
|
$
|
314.3
|
|
Gain from a Change of Control in GSPH
|
|
||
Consideration paid to acquire our joint venture partner's interest
|
$
|
190.1
|
|
Less: proportionate share of previous investment
|
147.2
|
|
|
Gain from changes in control of investment properties and other, net
|
$
|
42.9
|
|
Cash received from joint venture partner
|
$
|
813.9
|
|
Less: Proportionate share of previous investment in Fashion Show
|
(191.6
|
)
|
|
Gain from change in control of investment property
|
$
|
622.3
|
|
|
Total Fair Value
Measurement |
|
Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs (Level 3)
|
|
Provisions for Impairment
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Investments in real estate (1)
|
$
|
1,090,600
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,090,600
|
|
|
$
|
—
|
|
Unobservable Quantitative Input
|
|
Range
|
Discount Rates
|
|
6.0% to 7.0%
|
Terminal capitalization rates
|
|
4.0% to 5.5%
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
|
Carrying Amount (1)
|
|
Estimated Fair
Value
|
|
Carrying Amount (2)
|
|
Estimated Fair
Value
|
||||||||
Fixed-rate debt
|
|
$
|
10,451,125
|
|
|
$
|
10,519,680
|
|
|
$
|
10,441,166
|
|
|
$
|
10,832,272
|
|
Variable-rate debt
|
|
3,042,747
|
|
|
2,955,915
|
|
|
1,989,252
|
|
|
1,990,458
|
|
||||
|
|
$
|
13,493,872
|
|
|
$
|
13,475,595
|
|
|
$
|
12,430,418
|
|
|
$
|
12,822,730
|
|
|
(1)
|
Includes net market rate adjustments of
$24.6 million
and deferred financing costs of
$33.2 million
, net.
|
(2)
|
Includes net market rate adjustments of
$27.8 million
and deferred financing costs of
$40.1 million
, net.
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Condensed Combined Balance Sheets - Unconsolidated Real Estate Affiliates (1)
|
|
|
|
|
|
||
Assets:
|
|
|
|
|
|
||
Land
|
$
|
2,872,752
|
|
|
$
|
2,664,736
|
|
Buildings and equipment
|
13,877,355
|
|
|
13,555,059
|
|
||
Less accumulated depreciation
|
(3,689,038
|
)
|
|
(3,538,776
|
)
|
||
Construction in progress
|
527,024
|
|
|
284,198
|
|
||
Net property and equipment
|
13,588,093
|
|
|
12,965,217
|
|
||
Investment in unconsolidated joint ventures
|
581,941
|
|
|
503,305
|
|
||
Net investment in real estate
|
14,170,034
|
|
|
13,468,522
|
|
||
Cash and cash equivalents
|
507,363
|
|
|
455,862
|
|
||
Accounts receivable, net
|
562,623
|
|
|
655,655
|
|
||
Notes receivable
|
11,969
|
|
|
8,912
|
|
||
Deferred expenses, net
|
341,098
|
|
|
321,095
|
|
||
Prepaid expenses and other assets
|
230,328
|
|
|
327,645
|
|
||
Total assets
|
$
|
15,823,415
|
|
|
$
|
15,237,691
|
|
Liabilities and Owners' Equity:
|
\
|
|
|
|
|
||
Mortgages, notes and loans payable
|
$
|
10,474,639
|
|
|
$
|
10,476,935
|
|
Accounts payable, accrued expenses and other liabilities
|
888,738
|
|
|
595,570
|
|
||
Cumulative effect of foreign currency translation ("CFCT")
|
(45,605
|
)
|
|
(50,851
|
)
|
||
Owners' equity, excluding CFCT
|
4,505,643
|
|
|
4,216,037
|
|
||
Total liabilities and owners' equity
|
$
|
15,823,415
|
|
|
$
|
15,237,691
|
|
Investment in Unconsolidated Real Estate Affiliates, Net:
|
|
|
|
|
|
||
Owners' equity
|
$
|
4,460,038
|
|
|
$
|
4,165,186
|
|
Less: joint venture partners' equity
|
(2,565,400
|
)
|
|
(2,095,166
|
)
|
||
Plus: excess investment/basis differences
|
1,604,437
|
|
|
1,590,821
|
|
||
Investment in Unconsolidated Real Estate Affiliates, net (equity method)
|
3,499,075
|
|
|
3,660,841
|
|
||
Investment in Unconsolidated Real Estate Affiliates, net (cost method)
|
—
|
|
|
180,000
|
|
||
Elimination of consolidated real estate investment interest through joint venture
|
(54,971
|
)
|
|
(27,500
|
)
|
||
Retail investment, net
|
8,097
|
|
|
16,146
|
|
||
Investment in Unconsolidated Real Estate Affiliates, net
|
$
|
3,452,201
|
|
|
$
|
3,829,487
|
|
Reconciliation - Investment in Unconsolidated Real Estate Affiliates:
|
|
|
|
|
|
||
Asset - Investment in Unconsolidated Real Estate Affiliates
|
$
|
3,479,811
|
|
|
$
|
3,868,993
|
|
Liability - Investment in Unconsolidated Real Estate Affiliates
|
(27,610
|
)
|
|
(39,506
|
)
|
||
Investment in Unconsolidated Real Estate Affiliates, net
|
$
|
3,452,201
|
|
|
$
|
3,829,487
|
|
|
(1)
|
The Condensed Combined Balance Sheets - Unconsolidated Real Estate Affiliates include Miami Design District as of
September 30, 2017
. Refer to the discussion below regarding Miami Design District.
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Condensed Combined Statements of Income - Unconsolidated Real Estate Affiliates (1)
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||
Minimum rents
|
|
$
|
295,294
|
|
|
$
|
278,396
|
|
|
$
|
880,767
|
|
|
$
|
800,167
|
|
Tenant recoveries
|
|
124,927
|
|
|
121,810
|
|
|
366,869
|
|
|
349,983
|
|
||||
Overage rents
|
|
7,110
|
|
|
7,627
|
|
|
17,302
|
|
|
19,430
|
|
||||
Condominium sales
|
|
97,573
|
|
|
91,788
|
|
|
277,962
|
|
|
445,434
|
|
||||
Other
|
|
12,894
|
|
|
12,106
|
|
|
38,736
|
|
|
36,060
|
|
||||
Total revenues
|
|
537,798
|
|
|
511,727
|
|
|
1,581,636
|
|
|
1,651,074
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||
Real estate taxes
|
|
39,731
|
|
|
33,656
|
|
|
107,195
|
|
|
90,008
|
|
||||
Property maintenance costs
|
|
9,437
|
|
|
9,767
|
|
|
30,501
|
|
|
30,116
|
|
||||
Marketing
|
|
4,771
|
|
|
3,601
|
|
|
13,249
|
|
|
15,794
|
|
||||
Other property operating costs
|
|
60,147
|
|
|
56,445
|
|
|
170,076
|
|
|
158,413
|
|
||||
Condominium cost of sales
|
|
71,336
|
|
|
66,924
|
|
|
202,860
|
|
|
324,772
|
|
||||
Provision for doubtful accounts
|
|
473
|
|
|
2,042
|
|
|
4,495
|
|
|
11,457
|
|
||||
Property management and other costs (2)
|
|
23,102
|
|
|
17,477
|
|
|
61,472
|
|
|
50,946
|
|
||||
General and administrative
|
|
292
|
|
|
482
|
|
|
1,355
|
|
|
1,777
|
|
||||
Depreciation and amortization
|
|
128,800
|
|
|
126,408
|
|
|
378,531
|
|
|
347,267
|
|
||||
Total expenses
|
|
338,089
|
|
|
316,802
|
|
|
969,734
|
|
|
1,030,550
|
|
||||
Operating income
|
|
199,709
|
|
|
194,925
|
|
|
611,902
|
|
|
620,524
|
|
||||
Interest income
|
|
2,987
|
|
|
2,692
|
|
|
8,530
|
|
|
6,792
|
|
||||
Interest expense
|
|
(123,014
|
)
|
|
(109,863
|
)
|
|
(348,195
|
)
|
|
(313,777
|
)
|
||||
Provision for income taxes
|
|
(364
|
)
|
|
(215
|
)
|
|
(911
|
)
|
|
(589
|
)
|
||||
Equity in loss of unconsolidated joint ventures
|
|
(4,715
|
)
|
|
(3,616
|
)
|
|
(15,426
|
)
|
|
(37,869
|
)
|
||||
Income from continuing operations
|
|
74,603
|
|
|
83,923
|
|
|
255,900
|
|
|
275,081
|
|
||||
Allocation to noncontrolling interests
|
|
(25
|
)
|
|
(22
|
)
|
|
(69
|
)
|
|
(96
|
)
|
||||
Net income attributable to the ventures
|
|
$
|
74,578
|
|
|
$
|
83,901
|
|
|
$
|
255,831
|
|
|
$
|
274,985
|
|
Equity In Income of Unconsolidated Real Estate Affiliates:
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income attributable to the ventures
|
|
$
|
74,578
|
|
|
$
|
83,901
|
|
|
$
|
255,831
|
|
|
$
|
274,985
|
|
Joint venture partners' share of income
|
|
(30,050
|
)
|
|
(43,014
|
)
|
|
(116,372
|
)
|
|
(125,447
|
)
|
||||
Elimination of (gain) loss from consolidated real estate investment with interest owned through joint venture
|
|
(77
|
)
|
|
—
|
|
|
1,363
|
|
|
—
|
|
||||
Gain (loss) on retail investment
|
|
5,933
|
|
|
—
|
|
|
(4,853
|
)
|
|
—
|
|
||||
Amortization of capital or basis differences
|
|
(14,447
|
)
|
|
(5,236
|
)
|
|
(36,085
|
)
|
|
(21,779
|
)
|
||||
Equity in income of Unconsolidated Real Estate Affiliates
|
|
$
|
35,937
|
|
|
$
|
35,651
|
|
|
$
|
99,884
|
|
|
$
|
127,759
|
|
|
(1)
|
The Condensed Combined Statements of Income - Unconsolidated Real Estate Affiliates include income from Fashion Show subsequent to the formation of the joint venture on July 29, 2016 and Miami Design District subsequent to June 1, 2017.
|
(2)
|
Includes management fees charged to the unconsolidated joint ventures by GGMI and GGSI.
|
|
|
September 30, 2017 (1)
|
|
Weighted-Average
Interest Rate (2)
|
|
December 31, 2016 (3)
|
|
Weighted-Average
Interest Rate (2)
|
||||||
Fixed-rate debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Collateralized mortgages, notes and loans payable
|
|
$
|
10,451,125
|
|
|
4.41
|
%
|
|
$
|
10,441,166
|
|
|
4.44
|
%
|
Total fixed-rate debt
|
|
10,451,125
|
|
|
4.41
|
%
|
|
10,441,166
|
|
|
4.44
|
%
|
||
Variable-rate debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Collateralized mortgages, notes and loans payable (4)
|
|
2,524,744
|
|
|
3.23
|
%
|
|
1,997,978
|
|
|
2.45
|
%
|
||
Revolving credit facility (5)
|
|
518,003
|
|
|
2.56
|
%
|
|
(8,726
|
)
|
|
—
|
|
||
Total variable-rate debt
|
|
3,042,747
|
|
|
3.12
|
%
|
|
1,989,252
|
|
|
2.45
|
%
|
||
Total Mortgages, notes and loans payable
|
|
$
|
13,493,872
|
|
|
4.12
|
%
|
|
$
|
12,430,418
|
|
|
4.12
|
%
|
Junior subordinated notes
|
|
$
|
206,200
|
|
|
2.76
|
%
|
|
$
|
206,200
|
|
|
2.34
|
%
|
|
(1)
|
Includes
$24.6 million
of market rate adjustments and
$33.2 million
of deferred financing costs, net.
|
(2)
|
Represents the weighted-average interest rates on our contractual principal balances.
|
(3)
|
Includes
$27.8 million
of market rate adjustments and
$40.1 million
of deferred financing costs, net.
|
(4)
|
$1.4 billion
of the variable-rate balance is cross-collateralized.
|
(5)
|
Includes deferred financing costs, which are shown as a reduction to the debt balance. See table below for the balance excluding deferred financing costs.
|
|
|
September 30, 2017 (1)
|
|
Weighted-Average
Interest Rate
|
|
December 31, 2016 (2)
|
|
Weighted-Average
Interest Rate
|
||||||
Unsecured debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Revolving credit facility
|
|
$
|
525,000
|
|
|
2.56
|
%
|
|
$
|
—
|
|
|
—
|
|
Total unsecured debt
|
|
$
|
525,000
|
|
|
2.56
|
%
|
|
$
|
—
|
|
|
—
|
|
|
(1)
|
Excludes deferred financing costs of
$7.0 million
in
2017
that decrease the total amount that appears outstanding in our Consolidated Balance Sheets.
|
(2)
|
Excludes deferred financing costs of
$8.7 million
in
2016
that decrease the total amount that appears outstanding in our Consolidated Balance Sheets.
|
Initial Warrant Holder
|
|
Number of Warrants
|
|
Initial Exercise Price
|
|||
Brookfield - A
|
|
57,500,000
|
|
|
$
|
10.75
|
|
Brookfield - B
|
|
16,430,000
|
|
|
10.50
|
|
|
|
|
73,930,000
|
|
|
|
|
|
|
|
|
Exercise Price
|
|||||||
Record Date
|
|
Issuable Shares
|
|
Brookfield - A
|
|
Brookfield - B
|
|||||
April 15, 2016
|
|
90,288,964
|
|
|
$
|
8.80
|
|
|
$
|
8.60
|
|
July 15, 2016
|
|
90,865,607
|
|
|
8.75
|
|
|
8.54
|
|
||
October 14, 2016
|
|
91,553,142
|
|
|
8.68
|
|
|
8.48
|
|
||
December 15, 2016
|
|
92,344,178
|
|
|
8.61
|
|
|
8.41
|
|
||
December 27, 2016
|
|
93,268,285
|
|
|
8.52
|
|
|
8.32
|
|
||
April 13, 2017
|
|
94,170,214
|
|
|
8.44
|
|
|
8.24
|
|
||
July 13, 2017
|
|
95,057,357
|
|
|
8.36
|
|
|
8.17
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Distributions to preferred GGPOP units
|
|
$
|
(874
|
)
|
|
$
|
(2,237
|
)
|
|
$
|
(3,889
|
)
|
|
$
|
(6,640
|
)
|
Net income allocation to noncontrolling interests in GGPOP from continuing operations (common units)
|
|
(1,846
|
)
|
|
(3,879
|
)
|
|
(3,097
|
)
|
|
(5,608
|
)
|
||||
Net income allocation to noncontrolling interests in GGPOP from continuing operations (LTIP units)
|
|
(515
|
)
|
|
(1,172
|
)
|
|
(1,068
|
)
|
|
(2,325
|
)
|
||||
Net income allocated to noncontrolling interest in consolidated real estate affiliates
|
|
(257
|
)
|
|
(282
|
)
|
|
(1,103
|
)
|
|
(510
|
)
|
||||
Allocation to noncontrolling interests
|
|
(3,492
|
)
|
|
(7,570
|
)
|
|
(9,157
|
)
|
|
(15,083
|
)
|
||||
Other comprehensive (income) loss allocated to noncontrolling interests
|
|
(182
|
)
|
|
7
|
|
|
133
|
|
|
4
|
|
||||
Comprehensive income allocated to noncontrolling interests
|
|
$
|
(3,674
|
)
|
|
$
|
(7,563
|
)
|
|
$
|
(9,024
|
)
|
|
$
|
(15,079
|
)
|
|
|
Number of Common Units for each Preferred Unit
|
|
Number of Contractual Preferred Units Outstanding as of September 30, 2017
|
|
Converted Basis to Common Units Outstanding as of September 30, 2017
|
|
Conversion Price
|
|
Redemption Value (1)
|
|||||||
Series B
|
|
3.00000
|
|
|
10
|
|
|
—
|
|
|
$
|
16.66670
|
|
|
$
|
486
|
|
Series D
|
|
1.50821
|
|
|
533
|
|
|
835
|
|
|
33.15188
|
|
|
26,637
|
|
||
Series E
|
|
1.29836
|
|
|
503
|
|
|
679
|
|
|
38.51000
|
|
|
25,133
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
52,256
|
|
(1)
|
As of July 10, 2017, the Series B preferred unit conversion option expired and now has a fixed cash liquidation value of
$50
per unit.
|
Balance at January 1, 2016
|
$
|
287,627
|
|
Net income
|
5,608
|
|
|
Distributions
|
(3,078
|
)
|
|
Redemption of GGPOP units
|
(1,687
|
)
|
|
Other comprehensive loss
|
(4
|
)
|
|
Fair value adjustment for noncontrolling interests in Operating Partnership
|
2,377
|
|
|
Balance at September 30, 2016
|
$
|
290,843
|
|
|
|
||
Balance at January 1, 2017
|
$
|
262,727
|
|
Net income
|
3,097
|
|
|
Distributions
|
(4,731
|
)
|
|
Redemption of GGPOP units
|
(651
|
)
|
|
Other comprehensive loss
|
(133
|
)
|
|
Fair value adjustment for noncontrolling interests in Operating Partnership
|
(34,123
|
)
|
|
Balance at September 30, 2017
|
$
|
226,186
|
|
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Dividend Per Share
|
||
2017
|
|
|
|
|
|
|
||
October 31
|
|
December 15, 2017
|
|
January 5, 2018
|
|
$
|
0.22
|
|
August 2
|
|
October 13, 2017
|
|
October 31, 2017
|
|
0.22
|
|
|
May 1
|
|
July 13, 2017
|
|
July 28, 2017
|
|
0.22
|
|
|
January 30
|
|
April 13, 2017
|
|
April 28, 2017
|
|
0.22
|
|
|
2016
|
|
|
|
|
|
|
||
December 13
|
|
December 27, 2016
|
|
January 27, 2017
|
|
$
|
0.26
|
|
October 31
|
|
December 15, 2016
|
|
January 6, 2017
|
|
0.22
|
|
|
August 1
|
|
October 14, 2016
|
|
October 31, 2016
|
|
0.20
|
|
|
May 2
|
|
July 15, 2016
|
|
July 29, 2016
|
|
0.19
|
|
|
February 1
|
|
April 15, 2016
|
|
April 29, 2016
|
|
0.19
|
|
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Dividend Per Share
|
||
2017
|
|
|
|
|
|
|
||
October 31
|
|
December 15, 2017
|
|
January 2, 2018
|
|
$
|
0.3984
|
|
August 2
|
|
September 15, 2017
|
|
October 2, 2017
|
|
0.3984
|
|
|
May 1
|
|
June 15, 2017
|
|
July 3, 2017
|
|
0.3984
|
|
|
January 30
|
|
March 15, 2017
|
|
April 3, 2017
|
|
0.3984
|
|
|
2016
|
|
|
|
|
|
|
||
October 31
|
|
December 15, 2016
|
|
January 3, 2017
|
|
$
|
0.3984
|
|
August 1
|
|
September 15, 2016
|
|
October 3, 2016
|
|
0.3984
|
|
|
May 2
|
|
June 15, 2016
|
|
July 1, 2016
|
|
0.3984
|
|
|
February 1
|
|
March 15, 2016
|
|
April 1, 2016
|
|
0.3984
|
|
|
|
Foreign currency translation
|
|
Net unrealized gains (losses) on other financial instruments
|
|
Reclassification adjustment for realized gains on available-for-sale securities included in net income
|
|
Total
|
||||||||
Balance at July 1, 2016
|
|
$
|
(69,251
|
)
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
(69,131
|
)
|
Other comprehensive income (loss)
|
|
(987
|
)
|
|
(16
|
)
|
|
—
|
|
|
(1,003
|
)
|
||||
Balance at September 30, 2016
|
|
$
|
(70,238
|
)
|
|
$
|
104
|
|
|
$
|
—
|
|
|
$
|
(70,134
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at July 1, 2017
|
|
$
|
(71,708
|
)
|
|
$
|
115
|
|
|
$
|
—
|
|
|
$
|
(71,593
|
)
|
Other comprehensive income (loss)
|
|
3,884
|
|
|
9
|
|
|
—
|
|
|
3,893
|
|
||||
Balance at September 30, 2017
|
|
$
|
(67,824
|
)
|
|
$
|
124
|
|
|
$
|
—
|
|
|
$
|
(67,700
|
)
|
|
|
Foreign currency translation
|
|
Net unrealized gains (losses) on other financial instruments
|
|
Reclassification adjustment for realized gains on available-for-sale securities included in net income
|
|
Total
|
||||||||
Balance at January 1, 2016
|
|
$
|
(84,798
|
)
|
|
$
|
100
|
|
|
$
|
11,894
|
|
|
$
|
(72,804
|
)
|
Other comprehensive income (loss)
|
|
14,560
|
|
|
4
|
|
|
(11,894
|
)
|
|
2,670
|
|
||||
Balance at September 30, 2016
|
|
$
|
(70,238
|
)
|
|
$
|
104
|
|
|
$
|
—
|
|
|
$
|
(70,134
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Balance at January 1, 2017
|
|
$
|
(70,560
|
)
|
|
$
|
104
|
|
|
$
|
—
|
|
|
$
|
(70,456
|
)
|
Other comprehensive income (loss)
|
|
2,736
|
|
|
20
|
|
|
—
|
|
|
2,756
|
|
||||
Balance at September 30, 2017
|
|
$
|
(67,824
|
)
|
|
$
|
124
|
|
|
$
|
—
|
|
|
$
|
(67,700
|
)
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Numerators - Basic and Diluted:
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income
|
|
226,272
|
|
|
681,748
|
|
|
464,960
|
|
|
1,066,987
|
|
||||
Preferred Stock dividends
|
|
(3,984
|
)
|
|
(3,984
|
)
|
|
(11,952
|
)
|
|
(11,951
|
)
|
||||
Allocation to noncontrolling interests
|
|
(3,492
|
)
|
|
(7,570
|
)
|
|
(9,157
|
)
|
|
(15,083
|
)
|
||||
Net income attributable to common stockholders
|
|
$
|
218,796
|
|
|
$
|
670,194
|
|
|
$
|
443,851
|
|
|
$
|
1,039,953
|
|
Denominators:
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted-average number of common shares outstanding - basic
|
|
878,663
|
|
|
885,092
|
|
|
881,786
|
|
|
883,720
|
|
||||
Effect of dilutive securities
|
|
61,521
|
|
|
70,764
|
|
|
63,207
|
|
|
69,090
|
|
||||
Weighted-average number of common shares outstanding - diluted
|
|
940,184
|
|
|
955,856
|
|
|
944,993
|
|
|
952,810
|
|
||||
Anti-dilutive Securities:
|
|
|
|
|
|
|
|
|
|
|
||||||
Effect of Preferred Units
|
|
1,514
|
|
|
5,409
|
|
|
1,514
|
|
|
5,409
|
|
||||
Effect of Common Units
|
|
8,374
|
|
|
4,768
|
|
|
5,991
|
|
|
4,768
|
|
||||
Effect of LTIP Units
|
|
1,805
|
|
|
1,775
|
|
|
1,852
|
|
|
1,764
|
|
||||
Weighted-average number of anti-dilutive securities
|
|
11,693
|
|
|
11,952
|
|
|
9,357
|
|
|
11,941
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Stock options - Property management and other costs
|
$
|
811
|
|
|
$
|
1,479
|
|
|
$
|
2,766
|
|
|
$
|
4,632
|
|
Stock options - General and administrative
|
1,814
|
|
|
2,806
|
|
|
6,449
|
|
|
8,297
|
|
||||
Restricted stock - Property management and other costs
|
1,366
|
|
|
772
|
|
|
4,424
|
|
|
2,080
|
|
||||
Restricted stock - General and administrative
|
540
|
|
|
162
|
|
|
2,368
|
|
|
473
|
|
||||
LTIP Units - Property management and other costs
|
397
|
|
|
379
|
|
|
1,189
|
|
|
967
|
|
||||
LTIP Units - General and administrative
|
3,389
|
|
|
3,879
|
|
|
14,330
|
|
|
10,925
|
|
||||
Total
|
$
|
8,317
|
|
|
$
|
9,477
|
|
|
$
|
31,526
|
|
|
$
|
27,374
|
|
|
2017
|
|
2016
|
||||||||||
|
Shares
|
|
Weighted Average Exercise Price
|
|
Shares
|
|
Weighted Average Exercise Price (1)
|
||||||
Stock options Outstanding at January 1,
|
15,277,189
|
|
|
$
|
17.90
|
|
|
18,162,700
|
|
|
$
|
17.34
|
|
Granted
|
—
|
|
|
—
|
|
|
91,261
|
|
|
25.81
|
|
||
Exercised
|
(443,221
|
)
|
|
18.05
|
|
|
(2,699,998
|
)
|
|
14.20
|
|
||
Forfeited
|
(148,040
|
)
|
|
22.31
|
|
|
(224,247
|
)
|
|
19.80
|
|
||
Expired
|
(4,107
|
)
|
|
28.86
|
|
|
(15,608
|
)
|
|
17.73
|
|
||
Stock options Outstanding at September 30,
|
14,681,821
|
|
|
$
|
17.85
|
|
|
15,314,108
|
|
|
$
|
17.91
|
|
(1)
|
Changes to prior year weighted average exercise price is due to adjustment of the strike price for the special dividend issued in 2016.
|
|
2017
|
|
2016
|
||||||||||
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
|
Shares
|
|
Weighted Average Grant Date Fair Value (1)
|
||||||
LTIP Units Outstanding at January 1,
|
4,345,912
|
|
|
$
|
27.27
|
|
|
1,724,747
|
|
|
$
|
29.32
|
|
Granted
|
553,526
|
|
|
25.38
|
|
|
2,640,963
|
|
|
25.89
|
|
||
Exercised
|
(92,880
|
)
|
|
29.15
|
|
|
—
|
|
|
—
|
|
||
Forfeited
|
(58,894
|
)
|
|
26.77
|
|
|
(38,862
|
)
|
|
28.98
|
|
||
Expired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
LTIP Units Outstanding at September 30,
|
4,747,664
|
|
|
$
|
27.02
|
|
|
4,326,848
|
|
|
$
|
27.23
|
|
(1)
|
Changes to prior year weighted average exercise price is due to adjustment of the strike price for the special dividend issued in 2016.
|
|
2017
|
|
2016
|
||||||||||
|
Shares
|
|
Weighted Average Exercise Price
|
|
Shares
|
|
Weighted Average Exercise Price
|
||||||
Restricted stock Outstanding at January 1,
|
476,686
|
|
|
$
|
27.11
|
|
|
206,219
|
|
|
$
|
29.16
|
|
Granted
|
808,448
|
|
|
25.30
|
|
|
346,873
|
|
|
26.18
|
|
||
Vested
|
(170,137
|
)
|
|
26.78
|
|
|
(66,578
|
)
|
|
28.61
|
|
||
Canceled
|
(100,357
|
)
|
|
26.02
|
|
|
(7,322
|
)
|
|
27.62
|
|
||
Restricted stock Outstanding at September 30,
|
1,014,640
|
|
|
25.83
|
|
|
479,192
|
|
|
27.10
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Trade receivables
|
|
$
|
102,908
|
|
|
$
|
107,107
|
|
Short-term tenant receivables
|
|
2,957
|
|
|
1,414
|
|
||
Straight-line rent receivable
|
|
235,216
|
|
|
227,859
|
|
||
Other accounts receivable
|
|
3,687
|
|
|
3,699
|
|
||
Total accounts receivable
|
|
344,768
|
|
|
340,079
|
|
||
Provision for doubtful accounts
|
|
(20,189
|
)
|
|
(17,883
|
)
|
||
Total accounts receivable, net
|
|
$
|
324,579
|
|
|
$
|
322,196
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
Notes receivable
|
|
$
|
404,650
|
|
|
$
|
665,289
|
|
Accrued interest
|
|
10,849
|
|
|
13,207
|
|
||
Total notes receivable
|
|
415,499
|
|
|
678,496
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
Gross Asset
|
|
Accumulated
Amortization
|
|
Balance
|
|
Gross Asset
|
|
Accumulated
Amortization
|
|
Balance
|
||||||||||||
Intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Above-market tenant leases, net
|
$
|
427,605
|
|
|
$
|
(317,067
|
)
|
|
$
|
110,538
|
|
|
$
|
512,802
|
|
|
$
|
(368,900
|
)
|
|
$
|
143,902
|
|
Below-market ground leases, net
|
118,994
|
|
|
(14,349
|
)
|
|
104,645
|
|
|
118,994
|
|
|
(12,788
|
)
|
|
106,206
|
|
||||||
Real estate tax stabilization agreement, net
|
111,506
|
|
|
(43,503
|
)
|
|
68,003
|
|
|
111,506
|
|
|
(38,769
|
)
|
|
72,737
|
|
||||||
Total intangible assets
|
$
|
658,105
|
|
|
$
|
(374,919
|
)
|
|
$
|
283,186
|
|
|
$
|
743,302
|
|
|
$
|
(420,457
|
)
|
|
$
|
322,845
|
|
Remaining prepaid expenses and other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Security and escrow deposits
|
|
|
|
|
|
|
72,953
|
|
|
|
|
|
|
59,054
|
|
||||||||
Prepaid expenses
|
|
|
|
|
|
|
52,564
|
|
|
|
|
|
|
46,709
|
|
||||||||
Other non-tenant receivables
|
|
|
|
|
|
|
29,999
|
|
|
|
|
|
|
34,677
|
|
||||||||
Deferred tax, net of valuation allowances
|
|
|
|
|
|
|
(1,300
|
)
|
|
|
|
|
|
6,943
|
|
||||||||
Other
|
|
|
|
|
|
|
57,838
|
|
|
|
|
|
|
36,293
|
|
||||||||
Total remaining prepaid expenses and other assets
|
|
|
|
|
|
|
212,054
|
|
|
|
|
|
|
|
|
183,676
|
|
||||||
Total prepaid expenses and other assets
|
|
|
|
|
|
|
$
|
495,240
|
|
|
|
|
|
|
|
|
$
|
506,521
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
Gross
Liability
|
|
Accumulated
Accretion
|
|
Balance
|
|
Gross
Liability
|
|
Accumulated
Accretion
|
|
Balance
|
||||||||||||
Intangible liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Below-market tenant leases, net
|
251,789
|
|
|
(161,455
|
)
|
|
$
|
90,334
|
|
|
267,048
|
|
|
(172,210
|
)
|
|
$
|
94,838
|
|
||||
Above-market headquarters office leases, net
|
4,342
|
|
|
(2,412
|
)
|
|
1,930
|
|
|
15,268
|
|
|
(10,346
|
)
|
|
4,922
|
|
||||||
Above-market ground leases, net
|
9,127
|
|
|
(2,533
|
)
|
|
6,594
|
|
|
9,127
|
|
|
(2,258
|
)
|
|
6,869
|
|
||||||
Total intangible liabilities
|
$
|
265,258
|
|
|
$
|
(166,400
|
)
|
|
$
|
98,858
|
|
|
$
|
291,443
|
|
|
$
|
(184,814
|
)
|
|
$
|
106,629
|
|
Remaining Accounts payable and accrued expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accrued interest
|
|
|
|
|
|
|
44,522
|
|
|
|
|
|
|
|
|
47,821
|
|
||||||
Accounts payable and accrued expenses
|
|
|
|
|
|
|
94,400
|
|
|
|
|
|
|
|
|
87,485
|
|
||||||
Accrued real estate taxes
|
|
|
|
|
|
|
107,981
|
|
|
|
|
|
|
|
|
87,313
|
|
||||||
Deferred gains/income
|
|
|
|
|
|
|
95,768
|
|
|
|
|
|
|
|
|
91,720
|
|
||||||
Accrued payroll and other employee liabilities
|
|
|
|
|
|
|
43,909
|
|
|
|
|
|
|
|
|
57,721
|
|
||||||
Construction payable
|
|
|
|
|
|
|
127,672
|
|
|
|
|
|
|
|
|
115,077
|
|
||||||
Tenant and other deposits
|
|
|
|
|
|
|
35,297
|
|
|
|
|
|
|
|
|
15,061
|
|
||||||
Insurance reserve liability
|
|
|
|
|
|
|
15,166
|
|
|
|
|
|
|
|
|
14,184
|
|
||||||
Capital lease obligations
|
|
|
|
|
|
|
5,386
|
|
|
|
|
|
|
|
|
5,386
|
|
||||||
Conditional asset retirement obligation liability
|
|
|
|
|
|
|
6,316
|
|
|
|
|
|
|
|
|
5,327
|
|
||||||
Other
|
|
|
|
|
|
|
103,338
|
|
|
|
|
|
|
|
|
21,638
|
|
||||||
Total remaining Accounts payable and accrued expenses
|
|
|
|
|
|
|
679,755
|
|
|
|
|
|
|
|
|
548,733
|
|
||||||
Total Accounts payable and accrued expenses
|
|
|
|
|
|
|
$
|
778,613
|
|
|
|
|
|
|
|
|
$
|
655,362
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(Dollars in thousands)
|
||||||||||||||
Contractual rent expense, including participation rent
|
|
$
|
2,177
|
|
|
$
|
2,131
|
|
|
$
|
6,562
|
|
|
$
|
6,376
|
|
Contractual rent expense, including participation rent and excluding amortization of above and below-market ground leases and straight-line rent
|
|
1,605
|
|
|
1,551
|
|
|
4,846
|
|
|
4,637
|
|
ITEM 2
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
contractual rent increases;
|
•
|
occupancy growth;
|
•
|
positive leasing spreads;
|
•
|
income from redevelopment projects; and
|
•
|
managing operating expenses.
|
|
|
September 30, 2017 (1)
|
|
September 30, 2016 (1)
|
||||
In-Place Rents per square foot (2)
|
|
|
|
|
|
|
||
Consolidated Properties
|
|
$
|
65.63
|
|
|
$
|
65.17
|
|
Unconsolidated Properties
|
|
101.85
|
|
|
101.11
|
|
||
Total Retail Properties
|
|
$
|
78.02
|
|
|
$
|
77.41
|
|
|
|
|
|
|
||||
Percentage Leased
|
|
|
|
|
||||
Consolidated Properties
|
|
96.8
|
%
|
|
96.6
|
%
|
||
Unconsolidated Properties
|
|
95.9
|
%
|
|
96.9
|
%
|
||
Total Retail Properties
|
|
96.5
|
%
|
|
96.7
|
%
|
||
|
|
|
|
|
||||
Tenant Sales Volume (All Less Anchors) (3)
|
|
|
|
|
||||
Consolidated Properties
|
|
$
|
12,091
|
|
|
$
|
12,253
|
|
Unconsolidated Properties
|
|
9,068
|
|
|
8,805
|
|
||
Total Retail Properties
|
|
$
|
21,158
|
|
|
$
|
21,058
|
|
|
|
|
|
|
||||
Tenant Sales per square foot (3)
|
|
|
|
|
||||
Consolidated Properties
|
|
$
|
502
|
|
|
$
|
506
|
|
Unconsolidated Properties
|
|
765
|
|
|
740
|
|
||
Total Retail Properties
|
|
$
|
589
|
|
|
$
|
584
|
|
|
(1)
|
Metrics exclude properties acquired in the year ended
December 31, 2016
and the
nine months ended September 30, 2017
and certain other retail properties.
|
(2)
|
Rent is presented on a cash basis and consists of base minimum rent and common area costs.
|
(3)
|
Tenant Sales Volume (All Less Anchors) is presented as total sales volume in millions of dollars and Tenant Sales <10,000 square feet is presented as sales per square foot in dollars.
|
|
# of Leases
|
|
SF
|
|
Term
(in years)
|
|
Initial Rent PSF (1)
|
|
Expiring Rent PSF (2)
|
|
Initial Rent
Spread
|
|
% Change
|
||||||||||
Trailing 12 Month Commencements
|
1,579
|
|
|
4,743,623
|
|
|
6.6
|
|
|
$
|
62.87
|
|
|
$
|
57.21
|
|
|
$
|
5.66
|
|
|
9.9
|
%
|
|
(1)
|
Represents initial annual rent over the lease consisting of base minimum rent and common area maintenance.
|
(2)
|
Represents expiring rent at end of lease consisting of base minimum rent and common area maintenance.
|
|
Three Months Ended September 30,
|
|
|
|
|
|||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
|
(Dollars in thousands)
|
|
|
|
|
|||||||||
Components of Minimum rents:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Base minimum rents
|
$
|
357,292
|
|
|
$
|
352,023
|
|
|
$
|
5,269
|
|
|
1.5
|
%
|
Lease termination income
|
9,071
|
|
|
1,840
|
|
|
7,231
|
|
|
393.0
|
|
|||
Straight-line rent
|
2,768
|
|
|
3,552
|
|
|
(784
|
)
|
|
(22.1
|
)
|
|||
Above and below-market tenant leases, net
|
(5,274
|
)
|
|
(9,739
|
)
|
|
4,465
|
|
|
(45.8
|
)
|
|||
Total Minimum rents
|
$
|
363,857
|
|
|
$
|
347,676
|
|
|
$
|
16,181
|
|
|
4.7
|
%
|
|
Nine Months Ended September 30,
|
|
|
|
|
|||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
|
(Dollars in thousands)
|
|
|
|
|
|||||||||
Components of Minimum rents:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Base minimum rents
|
$
|
1,061,730
|
|
|
$
|
1,088,110
|
|
|
$
|
(26,380
|
)
|
|
(2.4
|
)%
|
Lease termination income
|
18,379
|
|
|
10,801
|
|
|
7,578
|
|
|
70.2
|
|
|||
Straight-line rent
|
3,260
|
|
|
13,998
|
|
|
(10,738
|
)
|
|
(76.7
|
)
|
|||
Above and below-market tenant leases, net
|
(21,294
|
)
|
|
(30,689
|
)
|
|
9,395
|
|
|
(30.6
|
)
|
|||
Total Minimum rents
|
$
|
1,062,075
|
|
|
$
|
1,082,220
|
|
|
$
|
(20,145
|
)
|
|
(1.9
|
)%
|
•
|
to obtain property-secured debt with laddered maturities;
|
•
|
to strategically leverage unencumbered retail properties; and
|
•
|
to minimize the amount of debt that is cross-collateralized and/or recourse to us.
|
|
Consolidated
|
|
Unconsolidated
|
||||
|
(Dollars in thousands)
|
||||||
2017
|
$
|
—
|
|
|
$
|
—
|
|
2018
|
335,735
|
|
|
186,780
|
|
||
2019
|
1,668,276
|
|
|
1,019,345
|
|
||
2020
|
2,043,269
|
|
|
1,194,816
|
|
||
2021
|
2,644,349
|
|
|
322,240
|
|
||
Subsequent
|
7,008,443
|
|
|
2,823,996
|
|
||
Total
|
$
|
13,700,072
|
|
|
$
|
5,547,177
|
|
Property
|
Description
|
|
GGP's Total Projected Share of Cost
|
|
GGP's Investment to Date (1)
|
|
Expected Return on Investment (2)
|
|
Stabilized Year
|
||||
Major Development Summary (in millions, at share unless otherwise noted)
|
|||||||||||||
Under Construction
|
|
|
|
|
|
|
|
|
|
|
|||
New Development
Norwalk, CT
|
Ground up development
|
|
525
|
|
|
113
|
|
|
8-9%
|
|
2020
|
||
Staten Island Mall
Staten Island, NY
|
Expansion
|
|
231
|
|
|
95
|
|
|
7-9%
|
|
2019
|
||
Other Projects
|
Redevelopment projects at various properties
|
|
606
|
|
|
440
|
|
|
6-8%
|
|
2017-2018
|
||
|
Total Projects Under Construction
|
|
$
|
1,362
|
|
|
$
|
648
|
|
|
|
|
|
Projects in Pipeline
|
|
|
|
|
|
|
|
|
|
|
|
||
Other Projects
|
Redevelopment projects at various properties
|
|
156
|
|
|
47
|
|
|
8-9%
|
|
TBD
|
||
|
Total Projects in Pipeline
|
|
$
|
156
|
|
|
$
|
47
|
|
|
|
|
|
|
(1)
|
Projected costs and investments to date exclude capitalized interest and overhead.
|
(2)
|
Return on investment represents first year stabilized cash-on-cash return, based upon budgeted assumptions. Actual costs may vary.
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2017
|
|
2016
|
||||
|
|
(Dollars in thousands)
|
||||||
Operating capital expenditures (1)
|
|
$
|
119,295
|
|
|
$
|
120,485
|
|
Tenant allowances and capitalized leasing costs (2)
|
|
143,559
|
|
|
109,942
|
|
||
Capitalized interest and capitalized overhead
|
|
44,942
|
|
|
44,954
|
|
||
Total
|
|
$
|
307,796
|
|
|
$
|
275,381
|
|
(1)
|
Reflects only non-tenant operating capital expenditures.
|
(2)
|
Tenant allowances paid on
3.5 million
square feet.
|
Declaration Date
|
Record Date
|
Payment Date
|
Dividend Per Share
|
||
2017
|
|
|
|
||
October 31
|
December 15, 2017
|
January 5, 2018
|
$
|
0.22
|
|
August 2
|
October 13, 2017
|
October 31, 2017
|
0.22
|
|
|
May 1
|
July 13, 2017
|
July 28, 2017
|
0.22
|
|
|
January 30
|
April 13, 2017
|
April 28, 2017
|
0.22
|
|
|
2016
|
|
|
|
||
December 13
|
December 27, 2016
|
January 27, 2017
|
$
|
0.26
|
|
October 31
|
December 15, 2016
|
January 6, 2017
|
0.22
|
|
|
August 1
|
October 14, 2016
|
October 31, 2016
|
0.20
|
|
|
May 2
|
July 15, 2016
|
July 29, 2016
|
0.19
|
|
|
February 1
|
April 15, 2016
|
April 29, 2016
|
0.19
|
|
Declaration Date
|
Record Date
|
Payment Date
|
Dividend Per Share
|
||
2017
|
|
|
|
||
October 31
|
December 15, 2017
|
January 2, 2018
|
$
|
0.3984
|
|
August 2
|
September 15, 2017
|
October 2, 2017
|
0.3984
|
|
|
May 1
|
June 15, 2017
|
July 3, 2017
|
0.3984
|
|
|
January 30
|
March 15, 2017
|
April 3, 2017
|
0.3984
|
|
|
2016
|
|
|
|
||
October 31
|
December 15, 2016
|
January 3, 2017
|
$
|
0.3984
|
|
August 1
|
September 15, 2016
|
October 3, 2016
|
0.3984
|
|
|
May 2
|
June 15, 2016
|
July 1, 2016
|
0.3984
|
|
|
February 1
|
March 15, 2016
|
April 1, 2016
|
0.3984
|
|
•
|
in
2017
, an increase in cash inflows from distributions received from unconsolidated real estate affiliates;
|
•
|
in
2017
, a decrease in cash outflows for marketing and property maintenance & operating costs due to a continued effort to reduce operating expenses; and
|
•
|
in 2016, an increase in cash inflows from overage rent and tenant recoveries.
|
•
|
in
2017
, development of real estate and property improvements,
($742.1) million
;
|
•
|
in
2017
, net proceeds from distributions received from unconsolidated real estate in excess of income, $81.7 million;
|
•
|
in
2016
, proceeds from the sale of real estate, $1,300.7 million
; net of
development of real estate and property improvements, ($400.4) million; and
|
•
|
in
2016
, proceeds from the sale of marketable securities, $46.4 million.
|
•
|
in
2017
, proceeds from the refinancing or issuance of mortgages, notes and loans payable, of
$1,355.0 million
; net of principal payments of ($680.7) million;
|
•
|
in
2017
, cash distributions paid to common stockholders of
($812.9) million
;
|
•
|
in 2017, repurchase of treasury stock of ($267.8) million;
|
•
|
in
2016
, principal payments on mortgages, notes and loans payable of ($1,466.7) million; and
|
•
|
in
2016
, cash distributions paid to common stockholders of
($503.6) million
.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Operating Income
|
$
|
218,306
|
|
|
$
|
153,417
|
|
|
$
|
593,967
|
|
|
$
|
543,434
|
|
Loss (gain) on sales of investment properties
|
172
|
|
|
1,016
|
|
|
(956
|
)
|
|
1,016
|
|
||||
Depreciation and amortization
|
161,278
|
|
|
182,350
|
|
|
505,875
|
|
|
499,269
|
|
||||
(Recovery of) provision for loan loss
|
—
|
|
|
(6,659
|
)
|
|
—
|
|
|
29,410
|
|
||||
Provision for impairment
|
—
|
|
|
28,276
|
|
|
—
|
|
|
73,039
|
|
||||
General and administrative
|
12,037
|
|
|
13,237
|
|
|
42,582
|
|
|
41,313
|
|
||||
Property management and other costs
|
35,195
|
|
|
37,760
|
|
|
115,334
|
|
|
106,787
|
|
||||
Management fees and other corporate revenues
|
(28,806
|
)
|
|
(20,428
|
)
|
|
(77,797
|
)
|
|
(73,087
|
)
|
||||
Consolidated Properties
|
398,182
|
|
|
388,969
|
|
|
1,179,005
|
|
|
1,221,181
|
|
||||
Noncontrolling interest in NOI of Consolidated Properties
|
(4,775
|
)
|
|
(3,734
|
)
|
|
(15,595
|
)
|
|
(11,080
|
)
|
||||
NOI of sold interests
|
105
|
|
|
(11,195
|
)
|
|
(9,035
|
)
|
|
(61,853
|
)
|
||||
Unconsolidated Properties
|
177,649
|
|
|
176,699
|
|
|
539,579
|
|
|
530,937
|
|
||||
Proportionate NOI
|
571,161
|
|
|
550,739
|
|
|
1,693,954
|
|
|
1,679,185
|
|
||||
Company adjustments:
|
|
|
|
|
|
|
|
||||||||
Minimum rents
|
2,411
|
|
|
7,114
|
|
|
14,087
|
|
|
13,587
|
|
||||
Real estate taxes
|
1,490
|
|
|
1,490
|
|
|
4,469
|
|
|
4,469
|
|
||||
Property operating expenses
|
788
|
|
|
754
|
|
|
2,364
|
|
|
2,358
|
|
||||
Company NOI
|
$
|
575,850
|
|
|
$
|
560,097
|
|
|
$
|
1,714,874
|
|
|
$
|
1,699,599
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net Income Attributable to GGP
|
$
|
222,780
|
|
|
$
|
674,178
|
|
|
$
|
455,803
|
|
|
$
|
1,051,904
|
|
Allocation to noncontrolling interests
|
3,492
|
|
|
7,570
|
|
|
9,157
|
|
|
15,083
|
|
||||
Loss (gain) on sales of investment properties
|
172
|
|
|
1,016
|
|
|
(956
|
)
|
|
1,016
|
|
||||
Gain on extinguishment of debt
|
—
|
|
|
—
|
|
|
(55,112
|
)
|
|
—
|
|
||||
Gains from changes in control of investment properties and other
|
(95,165
|
)
|
|
(620,309
|
)
|
|
(79,325
|
)
|
|
(733,416
|
)
|
||||
Unconsolidated Real Estate Affiliates - gain on investment
|
—
|
|
|
(259
|
)
|
|
—
|
|
|
(40,765
|
)
|
||||
Equity in income of Unconsolidated Real Estate Affiliates
|
(35,937
|
)
|
|
(35,651
|
)
|
|
(99,884
|
)
|
|
(127,759
|
)
|
||||
(Recovery of) provision for loan loss
|
—
|
|
|
(6,659
|
)
|
|
—
|
|
|
29,410
|
|
||||
Provision for impairment
|
—
|
|
|
28,276
|
|
|
—
|
|
|
73,039
|
|
||||
Provision for income taxes
|
6,993
|
|
|
49
|
|
|
15,347
|
|
|
728
|
|
||||
Gain (loss) on foreign currency
|
(3,889
|
)
|
|
657
|
|
|
(3,195
|
)
|
|
(16,172
|
)
|
||||
Interest expense
|
135,980
|
|
|
141,296
|
|
|
402,512
|
|
|
437,338
|
|
||||
Interest and dividend income
|
(15,948
|
)
|
|
(14,114
|
)
|
|
(51,336
|
)
|
|
(43,507
|
)
|
||||
Depreciation and amortization
|
161,278
|
|
|
182,350
|
|
|
505,875
|
|
|
499,269
|
|
||||
Consolidated Properties
|
379,756
|
|
|
358,400
|
|
|
1,098,886
|
|
|
1,146,168
|
|
||||
Noncontrolling interest in EBITDA of Consolidated Properties
|
(4,595
|
)
|
|
(3,599
|
)
|
|
(14,990
|
)
|
|
(10,665
|
)
|
||||
EBITDA of sold interests
|
105
|
|
|
(11,022
|
)
|
|
(8,871
|
)
|
|
(61,149
|
)
|
||||
Unconsolidated Properties
|
166,347
|
|
|
167,912
|
|
|
508,753
|
|
|
504,458
|
|
||||
Proportionate EBITDA
|
541,613
|
|
|
511,691
|
|
|
1,583,778
|
|
|
1,578,812
|
|
||||
Company adjustments:
|
|
|
|
|
|
|
|
||||||||
Minimum rents
|
2,411
|
|
|
7,114
|
|
|
14,087
|
|
|
13,587
|
|
||||
Real estate taxes
|
1,490
|
|
|
1,490
|
|
|
4,469
|
|
|
4,469
|
|
||||
Property operating expenses
|
788
|
|
|
754
|
|
|
2,364
|
|
|
2,358
|
|
||||
Company EBITDA
|
$
|
546,302
|
|
|
$
|
521,049
|
|
|
$
|
1,604,698
|
|
|
$
|
1,599,226
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Net Income Attributable to GGP
|
$
|
222,780
|
|
|
$
|
674,178
|
|
|
$
|
455,803
|
|
|
$
|
1,051,904
|
|
Redeemable noncontrolling interests
|
2,361
|
|
|
5,051
|
|
|
4,165
|
|
|
7,934
|
|
||||
Provision for impairment excluded from FFO
|
—
|
|
|
28,276
|
|
|
—
|
|
|
73,039
|
|
||||
Noncontrolling interests in depreciation of Consolidated Properties
|
(2,029
|
)
|
|
(1,592
|
)
|
|
(6,812
|
)
|
|
(4,875
|
)
|
||||
Unconsolidated Real Estate Affiliates - gain on investment
|
—
|
|
|
(259
|
)
|
|
—
|
|
|
(40,765
|
)
|
||||
(Gain) loss on sales of investment properties
|
(1,394
|
)
|
|
1,017
|
|
|
(2,523
|
)
|
|
1,016
|
|
||||
Preferred stock dividends
|
(3,984
|
)
|
|
(3,984
|
)
|
|
(11,952
|
)
|
|
(11,951
|
)
|
||||
Gains from changes in control of investment properties and other
|
(95,165
|
)
|
|
(620,309
|
)
|
|
(79,325
|
)
|
|
(733,416
|
)
|
||||
Depreciation and amortization of capitalized real estate costs - Consolidated Properties
|
157,038
|
|
|
178,105
|
|
|
492,886
|
|
|
487,803
|
|
||||
Depreciation and amortization of capitalized real estate costs - Unconsolidated Properties
|
75,477
|
|
|
73,891
|
|
|
224,036
|
|
|
209,237
|
|
||||
FFO (1)
|
355,084
|
|
|
334,374
|
|
|
1,076,278
|
|
|
1,039,926
|
|
||||
Company adjustments:
|
|
|
|
|
|
|
|
||||||||
Minimum rents
|
2,411
|
|
|
7,114
|
|
|
14,087
|
|
|
13,587
|
|
||||
Real estate taxes
|
1,490
|
|
|
1,490
|
|
|
4,469
|
|
|
4,469
|
|
||||
Property operating expenses
|
788
|
|
|
754
|
|
|
2,364
|
|
|
2,358
|
|
||||
Investment income, net
|
(205
|
)
|
|
(205
|
)
|
|
(614
|
)
|
|
(614
|
)
|
||||
Market rate adjustments
|
(1,122
|
)
|
|
(1,287
|
)
|
|
(3,454
|
)
|
|
(3,960
|
)
|
||||
Write-off of mark-to-market adjustments on extinguished debt
|
—
|
|
|
(2,290
|
)
|
|
—
|
|
|
(2,290
|
)
|
||||
(Recovery of) provision for loan loss
|
—
|
|
|
(6,659
|
)
|
|
—
|
|
|
21,891
|
|
||||
(Gain) loss on foreign currency
|
(3,889
|
)
|
|
657
|
|
|
(3,195
|
)
|
|
(16,172
|
)
|
||||
Benefit from (provision for) income taxes
|
—
|
|
|
2,093
|
|
|
—
|
|
|
(2,262
|
)
|
||||
FFO from sold interests
|
—
|
|
|
195
|
|
|
(54,444
|
)
|
|
2,160
|
|
||||
Company FFO
|
$
|
354,557
|
|
|
$
|
336,236
|
|
|
$
|
1,035,491
|
|
|
$
|
1,059,093
|
|
|
(1)
|
FFO as defined by the National Association of Real Estate Investment Trusts.
|
Period
|
Total Number of Shares Purchased (1)
|
Average Price Paid per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
Maximum Number or Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs
|
||||||
March 2017
|
2,569,605
|
|
$
|
23.16
|
|
2,569,605
|
|
$
|
402,280,147
|
|
May 2017
|
796,371
|
|
$
|
21.90
|
|
796,371
|
|
$
|
384,840,711
|
|
August 2017
|
6,324,240
|
|
$
|
21.22
|
|
6,324,240
|
|
$
|
250,614,062
|
|
September 2017
|
2,960,775
|
|
$
|
21.12
|
|
2,960,775
|
|
$
|
188,072,423
|
|
Total
|
12,650,991
|
|
$
|
21.64
|
|
12,650,991
|
|
|
(1)
|
The Company's stock repurchase program, approved by our Board of Directors on August 8, 2011, authorizes the purchase of up to $250 million of the Company's common stock. On August 18, 2015, our Board of Directors approved an increase of $500 million to the Company's existing share repurchase program.
|
10.1
|
|
|
|
|
|
|
|
10.2
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
|
|
|
32.2
|
|
|
|
|
|
|
|
101
|
|
|
The following financial information from GGP Inc.'s. Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, has been filed with the SEC on November 2, 2017, formatted in XBRL (Extensible Business Reporting Language): (1) Consolidated Balance Sheets, (2) Consolidated Statements of Comprehensive Income, (3) Consolidated Statements of Equity, (4) Consolidated Statements of Cash Flows and (5) Notes to Consolidated Financial Statements.
|
|
|
|
|
Incorporated by Reference Herein
|
||||||
Exhibit Number
|
|
Description
|
|
Form
|
|
Exhibit
|
|
Filing Date
|
|
File No.
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101
|
|
The following financial information from GGP Inc.'s. Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, has been filed with the SEC on November 2, 2017, formatted in XBRL (Extensible Business Reporting Language): (1) Consolidated Balance Sheets, (2) Consolidated Statements of Comprehensive Income, (3) Consolidated Statements of Equity, (4) Consolidated Statements of Cash Flows and (5) Notes to Consolidated Financial Statements.
|
|
|
|
|
|
|
|
|
|
GGP INC.
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
Date: November 2, 2017
|
By:
|
/s/ Michael Berman
|
|
|
Michael Berman
|
|
|
Chief Financial Officer
|
|
|
(on behalf of the Registrant)
|
Date: November 2, 2017
|
/s/ Sandeep Mathrani
|
|
Sandeep Mathrani
|
|
Chief Executive Officer
|
Date: November 2, 2017
|
/s/ Michael Berman
|
|
Michael Berman
|
|
Chief Financial Officer
|
/s/ Sandeep Mathrani
|
|
Sandeep Mathrani
|
|
Chief Executive Officer
|
|
November 2, 2017
|
/s/ Michael Berman
|
|
Michael Berman
|
|
Chief Financial Officer
|
|
November 2, 2017
|