General Growth Properties, Inc. (NYSE: GGP) (“GGP”) today announced the refinancing of four shopping malls representing $966 million of new mortgages. These four new fixed-rate mortgages have a weighted average term of 9.1 years and a weighted average interest rate of 4.63%, as compared to the 5.66% rate on the prior maturing loans. After adjusting for GGP’s ownership interest, the Company’s pro-rata share of the new four non-recourse mortgages totals $483 million.
The four newly refinanced malls have the following terms:
|Natick Mall (Natick, MA—Boston):||$450 million at 4.60% due 2019|
|Galleria at Tyler (Riverside, CA—Los Angeles):||$200 million at 5.05% due 2023|
|First Colony Mall (Sugar Land, TX—Houston):||$185 million at 4.50% due 2019|
|Northbrook Court (Northbrook, IL—Chicago):||$131 million at 4.25% due 2021|
Year-to-date, GGP has completed nearly $3.9 billion ($3.1 billion at GGP’s pro-rata share) of new property level non-recourse financings with a weighted average term of 9.9 years and an interest rate of 5.1%. These mortgages successfully conclude GGP’s 2011 financing plan and replace $3.2 billion ($2.5 billion at GGP’s pro-rata share) that had a weighted average term of 2.4 years and an interest rate of 5.81%.
“At the start of 2011, one of GGP’s stated goals was to strengthen the Company’s balance sheet and liquidity while also reducing interest rates and extending the average debt maturity profile,” said Sandeep Mathrani, chief executive officer of General Growth Properties. “We have accomplished our 2011 goals and are now focused on 2012 financing opportunities.”
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements. Actual results may differ materially from the results suggested by these forward-looking statements, for a number of reasons, including, but not limited to, our ability to refinance, extend, restructure or repay our remaining debt (including that of our Unconsolidated Real Estate Affiliates) with maturities in the short to intermediate term, our ability to raise capital through equity issuances, asset sales or the incurrence of new debt, retail and credit market conditions, impairments, our liquidity demands and retail and economic conditions. Readers are referred to the documents filed by General Growth Properties, Inc. with the Securities and Exchange Commission, which further identify the important risk factors that could cause actual results to differ materially from the forward-looking statements in this release. The Company disclaims any obligation to update any forward-looking statements.
General Growth Properties has ownership and management interest in 166 regional and super regional shopping malls in 43 states. The Company portfolio totals 169 million square feet of space. A publicly-traded real estate investment trust (REIT), GGP is listed on the New York Stock Exchange under the symbol GGP.
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