Investor Presentation May 2016
GGP Overview S&P 500 Real Estate Investment Trust (a) NYSE Ticker GGP Headquarters Chicago Employees 1,700 Retail Properties 128 States 40 Total Retail GLA 121 million Enterprise Value $46.1 billion Natick Mall, Natick, MA The Woodlands Mall, Houston, Texas 2 a) As of March 31, 2016.
GGP 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. Ridgedale Center, Minnetonka, MN Operating Highlights (a) Nordstrom Grand Opening – October 2015 Tenant Sales Growth (b) 4.0% Occupancy Cost 13.7% Leased 95.9% Lease Spreads (c) 12.0% H – Humility Shops at Merrick Park, Coral Gables, FL A – Attitude D – Do The Right Thing T – Together O – Own It a) All Same Store operating metrics as of March 31, 2016. 3 b) All tenant sales less anchors on a rolling 12 months ended March 31, 2016. Inline sales growth is 2.1% including Christiana Mall, which has had unusual changes in sales productivity. c) Lease spreads are suite-to-suite and represent 2016 commencements.
Irreplaceable Retail Properties in the U.S. GGP owns 100 of the top 500 malls in the U.S. Malls Sales and NOI Percentage by Rank (a) Top Retail Properties 2016 Sales PSF (b) % of Company NOI (c) Top 10 $799 23% Top 30 $688 48% Top 50 $681 66% Top 100 $597 95% Total Retail Properties $584 100% 78 Class A Retail Properties $690 77% a) Retail properties ranked by 2016 YTD NOI 4 b) Sales per square foot for trailing 12 months ended March 31, 2016 for comparable tenants occupying space less than 10,000 square feet. c) For 2016 YTD ending March 31, 2016.
GGP Outpaces U.S. Retail Growth Nearly 2-To- 1 With “A” Centers Driving The Majority Of Growth GAFO Sales Growth; Total Market vs GGP GGP Portfolio Productivity 2010 to 2015; Excluding Department Stores Sales Volume Total United States (From U.S. Census) 13% GGP Portfolio (Inline, Comp, <10k) 23% 5 Source: U.S. Census Nov. 2015 and GGP. GAFO stands for General Merchandise, Apparel and Accessories, Furniture and Other Sales.
Traffic Across The GGP Portfolio Is Steady, With YoY Increases Across All Classes Of Assets Estimated Total Visits to GGP Centers Sales Per Square Foot – Line Graph Traffic (in millions) – Bar Graph Year-Over-Year Traffic Growth 2012 2013 2014 2015 4% 3% - 2% 6 Source: GGP.
Redevelopment of Department Store Boxes Since 2011, 82 of 83 vacant department stores have been redeveloped for a total cost of $1.4 billion generating an 11% annual return 17 department stores - Nordstrom (3), Von Maur (3), Macy’s (2), Boscov’s (2), • Dillard’s (2), Belk, Lord & Taylor, Bloomingdale’s, Carson’s and Bon Ton 10 entertainment venues - theaters (3), trampoline parks (2), Dave & Buster’s (3) • and Round One (2) 11 sporting goods stores – Dick’s Sporting Goods / Field & Stream (5), Sports • Authority (4) and Scheels (2) 5 fast fashion retailers - Forever 21 (3) and H&M (2) • 4 restaurants – Perry’s, Yard House, Old Town Pour House and Harry Caray’s • 4 grocery stores - Sprouts, Fresh Market, Wegmans and Total Wine • 3 fitness centers – 24 Hour Fitness, City Sports and Family Fitness • 3 DSW • 3 Container Stores • 2 Pirch • 185,000 square feet of inline space including, but not limited to, Apple, Nike, • Lululemon, Tommy Bahama and Aritzia 20 other uses including, but not limited to, Nordstrom Rack, Crate& Barrel, Petco, • Ulta and HH Gregg 7
Department Store Performance • Over the past decade, department store performance has lagged that of inline shops within the GGP portfolio. • On a rolling 12 month basis as of March 2016, Anchor sales are down 1.9% while total inline (a) sales are up 4.0%. DEPARTMENT STORES vs. GGP INLINE SHOPS 2005-2015 Total Sales in GGP Portfolio 2005-2015 % Change Total Non-Anchor GAFO Sales, Comp Basis +33% Sales-Reporting Anchor/Department Stores -10% Total Industry Sales 2005-2015 % Change GAFO Sales excluding Department Stores +30% Department Stores excluding Leased -23% Departments a) Inline sales growth is 2.1% including Christiana Mall, which has had unusual changes in sales productivity. 8 Sources & Notes: U.S. Census Bureau, FactSet, GGP Intel, GGP Strategy & Analytics. Years reflect calendar years. GGP figures reflect properties consistently open from 2005 to 2015.
Regional Mall Visitation by Generation Millennials have the highest propensity of any generation to visit regional malls on a • regular basis. PROPENSITY TO SHOP AT LEAST ONCE EVERY THREE MONTHS, 100 = AVG SHOPPER 140 116 120 107 100 92 83 80 60 40 20 0 Millennials Gen Xers Baby Boomers Silents 18-34 35-49 50-65 Over 65 Sources: GGP Strategy & Analytics, Nielsen Local, 2014-2015. 400,489 respondents. 9
Department Store Consolidation Timeline SELECTED RETAILERS Associated Dry Goods Allied Federated May Carter Hawley Hale Mercantile Dillard's Lord & Taylor Jordan Marsh A & S Famous Barr Broadway Bacon's JW Robinston Bon Marché Lazarus Kaufmann's Emporium Castner Knott Goldwater's Donaldson's Filene's Hecht's Thalheimers Gayfers Acquired Stix Baer Fuller Block Bloomingdale's G Fox Wanamakers Glass Block Lowensteins Denver Dry Goods Joske's Burdine's Meier & Frank Neiman Marcus JB White Diamonds Robinsons FL Maas Brothers Rich's Strawbridge's Bergdorf Goodman Jones Store Joske's LS Ayres Miller & Rhoad's Foley's ZCMI Joslins Higbee's Horne's Pomeroy's Sanger Harris Lion DH Holmes Caldor Stern's Bullocks Maison Blanche Ivey's I Magnin Acquired by Federated McAlpins Acquires Associated in 1995 in 1986 Neiman Group spun 1986 Sold to May Dept. 1986 Acquired by Campeau to General Cinema Aquired Mercantile Acquired Allied in Sold to Dillard's 1998 1988 1998 Acquires Dayton Hudson Becomes Federated 1988 Acquired by Federated Marshall Field's Becomes Macy's, Inc. 2005 in 2004 2007 Operate as Dillard's Acquired Macy's in 1994 Becomes Macy's, Inc. At the peak of department Becomes Macy's, Inc. 2007 Sold to Federated 2007 2005 store nameplates, there were Becomes Macy's, Inc. 56 different department store 2007 brands Becomes Macy's, Inc. 2007 APPROXIMATE CURRENT STORE COUNTS Hudson’s Bay Neiman Nordstrom Macy’s Dillard’s Company (US) Marcus 120 775 270 90 40 10
Oakbrook Center Conversions Former Store New Stores Sears TBD Dining/Entertainment Pirch, Aritzia, Boss, lululemon, Bloomingdale's Tommy Bahama Neiman Marcus Perry's Steakhouse, (Lower Level) Old Town Pour House Productivity Store Category 2010 2015 Change Inline Retail $668 $911 +36% Anchors $233 $271 +17% 11
Natick Mall Conversions Former Store New Stores JCPenney Wegmans Sears TBD Entertainment Productivity Store Category 2010 2015 Change Inline Retail $552 $671 +22% 12 Anchors $181 $201 +11%
Cumberland Mall Conversions Former Store New Stores JCPenney Costco Buffalo Wild Wings, Cheesecake Factory, Chico's, H&M, Davison's Maggiano's, P.F. Chang's, Soma, Stoney River, Ted's Montana Grill Productivity Store Category 2010 2015 Change Inline Retail $379 $610 +61% Anchors $275 $306 +12% 13
Omni-Channel Generates Higher Sales 14 Source: ICSC
eCommerce Retailers are Opening Brick and Mortar Stores Consumers still desire a sensory, tactile Electronics Furniture/Home Apparel experience , particularly when shopping Apple Essentia Trunk Club Microsoft for goods for which comfort is a ModCloth Dyson Accessories NastyGal paramount point of consideration. Warby Parker Rent the Runway Sportswear Just Fab Combatant The conversion rate of browsers to Athleta Shinola Gentlemen buyers is multiples higher in a physical Fabletics Classic Specs Duluth Trading Co. store environment versus a digital Adore Me Refinery29 environment – averaging around 20% Beauty The Tie Bar 1701 Bespoke (and as high as 60% depending on store Birchbox Raden Weddington Way type) compared to less than 5% online – The Honest Frank & Oak resulting in significantly lower customer Company Jewelry Untuckit acquisition costs and SG&A per unit. Baublebar Chubbies Food/Candy Blue Nile Everlane Physical stores play an increasingly Vosges Indochino pivotal role in fulfilling shoppers’ need Haut-Chocolat Other Bonobos for discovery and instant gratification Try the World Amazon through reserve-online/buy-online and Children’s Apparel pick-up in-store models and/or Services Grocery Monica & Andy distributed fulfillment across the store network while reducing retailers’ initial outlays for inventory, reducing out-of- stock incidents, and avoiding aggressive markdowns at the end of Restaurants Entertainment seasonal cycles. Sources of Mall Demand 15
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