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I N V E S T O R P R E S E N T A T I O NN O V E M B E R 2 0 1 6
A R E T A I L R E A L E S T A T E C O M P A N Y
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OVERVIEW
THE WOODLANDS MALL, HOUSTON, TX
NATICK MALL, NATICK, MA
a) As of September 30, 2016.
MISSION & VALUES
Own and operate best-in-class retail properties
that provide an outstanding environment and
experience for our Communities, Retailers,
Employees, Consumers and Shareholders.
CORE VALUES
• H – Humility
• A – Attitude
• D – Do The Right Thing
• T – Together
• O – Own It
Picture
S&P 500 REAL ESTATE INVESTMENT TRUST (a)
Headquarters Chicago
Retail Properties 126
States 40
Inline & Freestanding GLA
Total Retail GLA
55 million
124 million
Equity Market CapEnterprise Value
$24.6 billion$42.6 billion
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Sandeep Mathrani, Chief Executive Officer
Michael Berman, Executive Vice President and Chief Financial Officer
Shobi Khan, Executive Vice President and Chief Operating Officer
Alan Barocas, Senior Executive Vice President, Leasing
Richard Pesin, Executive Vice President, Anchors, Development, and Construction
Marvin Levine, Executive Vice President and Chief Legal Officer
Scott Morey,Executive Vice President, Chief Technology Officer
Julie Knudson, Senior Vice President and Chief Human Resources Officer
EXECUTIVE TEAM
Tara Marszewski, Senior Vice President, Chief Accounting Officer
SUSTAINABIL I TY
2 0 1 5 I M P A C T A T A G L A N C E
Diverted 54,300 tons of waste fromlandfills; enough waste to fill over4,500 garbage trucks.
Reduced water consumption by 64million gallons; enough water to fillalmost 100 Olympic-size swimmingpools.
Top 10 U.S. company by solarcapacity.
Eliminated 23,200 metric tons ofcarbon dioxide equivalents, taking4,700 cars off U.S. roads.
Upgrades to power saved 44.5million kilowatt hours annually;equal to removing 4,200 homesfrom the electrical grid.
Since 2011, reduced electricityconsumption by 215.8 millionkilowatt hours; enough electricityto power all the homes in CoralGables, FL for one year.
Commitment to environmental responsibility
Awarded the 2015 Green Star and recognized as the North
American leader in the Retail – Large Cap Sector by GRESB in
2014
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DIGITAL INIT IAT IVES
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PARKING PRODUCT SEARCH
ANNUAL EBITDA GROWTH OF 4% TO 5%
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2% - 3%
1%
1.5%
0.5%
(1%)
Contractual Fixed
Increase in Rents +
Occupancy Growth
Positive Releasing
Spreads
Expense Growth
Developments
Acquisitions
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Oter
LONG TERM DIVIDEND GROWTH FROM H IGH QUALITY CASH FLOWS
HIGH QUALITY ASSETS
• 95% of NOI is derived from top 100 properties
REVENUE MANAGEMENT
• Contractual Rent Bumps – In place rental revenue grows by 2-3%
through contractual rent bumps
• Occupancy & Rental Growth Rate- Approximately10% of leases
expire annually + 8-10% spreads = 1% growth
EXPENSE MANAGEMENT
• Real Estate Tax Recovery - Largest expense is approximately 75%
recovered from tenants
• Sustainability Initiatives - Reduced utilities expenses via
sustainability initiatives such as lighting and HVAC upgrades, and
solar power production
IRREPLACEABLE RETAIL REAL ESTATE IN THE U.S .
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a) Retail properties ranked by trailing 12 months NOI ending December 31, 2015.b) Sales per square foot for trailing 12 months ended December 31, 2015 for comparable tenants occupying space less than 10,000 square feet.c) For 2015 YTD ending December 31, 2015.
Sales and NOI Contribution(a)
Top Retail PropertiesSales
PSF(b)
% of Company
NOI(c)
Top 10 $804 23%
Top 30 $683 48%
Top 50 $702 66%
Top 100 $604 95%
GGP owns 100 of the top 500 regional shopping
centers in the U.S.
a) “High Quality” has been defined as a regional shopping center rated B+ or better by Green Street Advisors.b) “High Quality” has been defined as a Trade Area Power score of 75-100 for strip centers, as rated by Green Street Advisors.
GLA (in millions)
SF Per Capita% of Total
High Quality GLA
High Quality(a) Regional Shopping Center GLA 495 1.6 40%
High Quality(b) Open-Air Center GLA 732 2.3 60%
Total High Quality Retail Real Estate 1,227 3.9 100%
Type Quality
HIGH QUALITY RETAIL PROPERT IES
TOTAL U.S. RETAIL REAL ESTATE GLA
GGP owns 8.2% of
all High Quality
Retail Real Estate
Regional Shopping Centers
1.1 billion sf3.4 sf per capita
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CHANGING THE VOCABULARY
RETAIL
REAL
ESTATE
Restaurants Entertainment
Sources of
Demand
Services
Grocery
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Since 2011, 91 of 95 vacant department stores and boxes have been
redeveloped for a total cost of $1.5 billion generating an 11% annual return.
• 18 department stores - Nordstrom (3), Von Maur (3), Macy’s (2), Boscov’s (2), Dillard’s
(2), Belk, Lord & Taylor, Bloomingdale’s, Carson’s, Bon Ton, and Target
• 14 entertainment venues - Dave & Buster’s (5), theaters (3), Round One (3), trampoline
parks (2), and Lucky Strike (1)
• 10 sporting goods stores – Dick’s Sporting Goods / Field & Stream (5), Sports Authority
(4), and Scheels (1)
• 7 fast fashion retailers - Forever 21 (5) and H&M (2)
• 4 restaurants – Perry’s, Yard House, Old Town Pour House and Harry Caray’s
• 5 grocery stores - Sprouts, Fresh Market, Wegmans, Save-a-Lot, and Total Wine
• 3 fitness centers – 24 Hour Fitness, City Sports, and Family Fitness
• 3 DSW
• 4 Container Stores
• 2 Pirch
• 200,000 square feet of inline space including, but not limited to, Apple, Nike, Lululemon,
Tommy Bahama and Aritzia
• Other uses including, but not limited to, Nordstrom Rack, Saks Off Fifth, Crate& Barrel,
Petco, Ulta and HH Gregg
REDEVELOPMENT OF ANCHOR BOXES
* Excludes boxes acquired from Macy’s and Seritage JV properties
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RETAIL CATEGORY SHARE OF GLA
17%
46%
27% 23%15%
Asia USA UK Australia Middle East
Department Store % of Total Center
GLA
17%13% 13% 15%
21%
Asia USA UK Australia Middle East
Mini Majors % of Total Center GLA
Source: ICSC
11%
8%
11% 13%16%
Asia USA UK Australia Middle East
Entertainment & Non Retail % of
Total Center GLA
45%
29%
47%36% 40%
Asia USA UK Australia Middle East
Specialty % of Total Center GLA
15%
6%
10%
6%8%
Asia USA UK Australia Middle East
F&B % of Total Center GLA
* Not currently within GGP’s portfolio
RETAILER DEMAND IS STRONG
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RETAILERS
A'Gaci Charming Charlie's Hammermade Lou & Grey Peloton Sur la Table Z Gallerie
Agent
ProvocateurChristian Louboutin Hanna Andersson Louis Vuitton Phillip Plein Tervis* Zara
Alex and Ani COS* Havaianas Love Sick Pink Tempur-Pedic Zegna
Allen Edmonds Cotton On Hot Topic lululemon Pirch Tesla
Altar'd States Crayola* Hugo Boss Lush Polo The North Face
Anthropologie David Yurman Ivivva MAC Prada Tiffany
Apricot Lane David's Tea Jins Marbles Pressed Juicery Torrid
Aritzia Dior John Hardy Marc Jacobs* Primark Tory Burch Sport
Athleta Dry Goods Joie Massage Envy Rebecca Minkoff* Tumi
Bally Dyptique* Kendra Scott Melissa Shoes Rebecca Taylor* Ulta
Bottega Veneta Escada Kiehl'sMitchell Gold +
Bob Williams
Restoration
HardwareUnder 10*
Box Lunch Fendi Kiko Cosmetics Muji Rue 21 Under Armour
Bulgari Francesca's Kipling Nespresso* Saint Laurent Urban Outfitters
Camper Frontgate* L’Occitane NYX Sephora Valentino
Capital Teas Frye Boots* Lego Oakley Six:02 Vans
Cartier Garage LL Bean Oliver Peoples* Soft Surroundings Vineyard Vines
Celine Givenchy* Lolli & Pops Other Stories* SplendidWalking
Company
CH Carolina
HerreraGucci Longchamp* Pandora Suit Supply West Elm
Chanel H&M Loro Piana Paul & Shark SuperdryWhite Barn
Candles
RETAILER DEMAND IS STRONG (cont ’d)
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STRIP CENTER, POWER CENTER, BIG BOX, DINING, ENTERTAINMENT
AMC Theatres Nando's
Bar Louie Nordstrom Rack
Blaze Pizza Red Robin
Buffalo Wild Wings Regal Cinemas
California Pizza Kitchen Ross
Cheesecake Factory Round 1
Chipotle Seasons 52
Dave & Busters Shake Shack
Dick’s Sporting Goods Smashburger
Earl’s Sweetgreen
Five Guys TJ Maxx
Kona Grill Trader Joes
Landmark Theatres Wegmans
Longhorn Steak House Zinburger
Lyfe Kitchen
Main Event Entertainment
Matchbox
MOD Pizza*
* Not currently within GGP’s portfolio
93% OF ALL RETAIL SALES OWE ALL OR PART OF SALES TO BRICK AND MORTAR PRESENCE
$4,250
(91.7%)
$151
(3.3%)
$43
(0.9%)
$38
(0.8%)$23
(0.5%)$131
(2.8%)
Brick and Mortar Sales
Pure Play
E-commerce
Sales
Omnichannel
Sales
Non Merchandise Receipts(shipping & handling, auction commissions, and other costs) Mail Order &
E-Commerce
Auction Sales
E-commerce sales from retailers with brick and mortar presence (omnichannel)
Total Sales
(billions)
% of Total
Sales
$4,636 100% Total retail sales
$4,250 91.7% Direct brick and mortar sales
+ $81 1.7%
Online sales from retailers with
brick and mortar presence
(Omnichannel Sales)
$4,331 93.4%Brick and mortar related retail
sales
$305 6.6% Other
- $131 2.8%Mail order and e-commerce
auction sales
- $23 0.5%
Non-merchandise receipts
(including shipping, electronic
auction commissions)
$151 3.3% Pure-play e-commerce
Source: Sales figure from 2014 U.S. Census Retail Trade Sales Annual Report unless otherwise footnoted1 Based on 2014 annual data from U.S. Census Retail Trade Sales Annual Report, and Omni-channel retailer e-commerce sales from ICSC report “Deconstructing the Census Bureau’s Retail
Trade E-Commerce Figures” in Retail Property Insights Vol. 23, No. 1, 2016
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Buy Online,
Fulfill in Store
Buy Online,
Fulfill From
Warehouse
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ONE-CHANNEL GENERATES HIGHER SALES
Source: “Shopping Centers: America’s First and Foremost Marketplace,” ICSC, October 2014.
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eCOMMERCE RETAILERS OPENING BRICK AND MORTAR
ELECTRONICS APPAREL ACCESSORIES
Apple Trunk Club Warby Parker
Microsoft ModCloth Just Fab
Dyson Rent the Runway Shinola
SPORTSWEAR Combatant Gentlemen Classic Specs
Athleta Duluth Trading Co. Adore Me
Fabletics Refinery29 The Tie Bar
BEAUTY 1701 Bespoke Raden
Birchbox Weddington Way JEWELRY
The Honest Company Frank & Oak Baublebar
FOOD/CANDY Untuckit Blue Nile
Vosges Haut-Chocolat Chubbies OTHER
Try the World Everlane Amazon
CHILDREN’S APPAREL Indochino
Monica & Andy Bonobos
FURNITURE/HOME
Essentia
eCOMMERCE RETAILERS OPENING BR ICK AND MORTAR
• In September of 2016, a consortium of GGP, SPG, and ABG finalized the
acquisition of Aéropostale
• Aéropostale will continue to be available in over 800 retail doors around the
world; approximately 500 stores in the U.S. and Canada and approximately
300 doors across Latin America, Europe, the Middle East and Southeast Asia
• Aéropostale has significant brand equity and the go-forward portfolio of
stores generates more than $1 billion in global retail sales, over $800 million of
which is from the U.S.
AEROPOSTALE
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´
DEBT PROFILE
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Debt Overview(b) ($ in millions at GGP share)
Fixed Rate(c) $14,958
Variable Rate(c) $3,507
Total Debt $18,466
Remaining Term (d) 5.7 Years
Total Debt / Enterprise Value 43%
Net Debt / EBITDA 7.9x
Interest Coverage 2.8x
Debt Maturity Ladder(b) ($ in billions at GGP share)
a) Assumes EBITDA growth of 4-5%, per slide 5.
b) As of September 30, 2016. Net Debt / EBITDA based on Net Debt as of September 30, 2016 and guidance for 2016 EBITDA as issued on October 31, 2016. Interest Coverage is
based on estimate for 2016. The Debt Maturity Ladder schedule assumes maturity extension options are exercised and approved.
c) Fixed rate debt has a weighted average interest rate of 4.4%, and variable rate debt has a weighted average interest rate of 2.7%.
d) Assumes maturity extension options are exercised and approved.
Forward-Looking Net Debt to EBITDA Outlook (a)
$0.0$0.2
$0.5
$2.1
$2.8$3.0
$2.4
$1.9$1.6 $1.7
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
Q3 2016 2016 2017 2018 2019 2020 2021
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t-to
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ITD
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FORWARD-LOOKING STATEMENTS
Certain statements made in this presentation may be deemed "forward-looking statements" within the meaning of thePrivate Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in anyforward-looking statement are based on reasonable assumption, it can give no assurance that its expectations will beattained, and it is possible that actual results may differ materially from those indicated by these forward-lookingstatements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to, theCompany's ability to refinance, extend, restructure or repay near and intermediate term debt, its indebtedness, itsability to raise capital through equity issuances, asset sales or the incurrence of new debt, retail and credit marketconditions, impairments, its liquidity demands, and economic conditions. The Company discusses these and other risksand uncertainties in its annual and quarterly periodic reports filed with the Securities and Exchange Commission. TheCompany may update that discussion in its periodic reports, but otherwise takes no duty or obligation to update orrevise these forward-looking statements, whether as a result of new information, future developments, or otherwise.
Investors and others should note that the Company posts this Investor Presentation on the Investors page of its websiteat www.ggp.com. From time to time, the Company updates the Investor Presentation and when it does, it will beposted on the Investors section of its website at www.ggp.com. It is possible that the updates could include informationdeemed to be material information. Therefore, the Company encourages investors, the media and others interested inthe Company to review the information posted on the Investors section of its website at www.ggp.com from time totime.
Michael Berman
Executive Vice President and
Chief Financial Officer
Kevin Berry
Senior Vice President
Investor & Public Relations
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Contact Information:
A R E T A I L R E A L E S T A T E C O M P A N Y