I N V E S T O R P R E S E N T A T I O N S E P T E M B E R 2 0 1 6 - - PowerPoint PPT Presentation

I N V E S T O R P R E S E N T A T I O N

S E P T 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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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 $46.0 billion

THE WOODLANDS MALL, HOUSTON, TX NATICK MALL, NATICK, MA

a) As of June 30, 2016.

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Own and operate Best-in-Class retail properties that provide an

• utstanding environment and experience for our Communities, Retailers,

Employees, Consumers and Shareholders.

GGP MISSION & VALUES

OPERATING HIGHLIGHTS(a) Tenant Sales Growth(b) 2.8% Occupancy Cost 13.9% Leased 96.1% Lease Spreads(c) 13.7%

RIDGEDALE CENTER, MINNETONKA, MN Nordstrom Grand Opening – October 2015 SHOPS AT MERRICK PARK, CORAL GABLES, FL

H – Humility A – Attitude D – Do The Right Thing T – Together O – Own It

a) All Same Store operating metrics as of June 30, 2016. b) All tenant sales less anchors on a rolling 12 months ended June 30, 2016, excluding Christiana Mall. Tenant sales increased 0.8% including Christiana Mall. c) Lease spreads are suite-to-suite and represent trailing 12 month commencements.

GGP OWNS IRREPLACEABLE RETAIL REAL ESTATE IN THE U.S.

• GGP owns 100 of the top 500

regional shopping centers in the U.S.

• GGP outpaces U.S. retail

growth nearly 2-to-1 with “A” centers driving the majority of growth

4 Regional Shopping Center Sales and NOI Percentage by Rank(a)

Top Retail Properties Sales PSF(b) % of Company NOI(c) Top 10 $792 23% Top 30 $727 48% Top 50 $677 67% Top 100 $598 96% Total Retail Properties $583 100% 78 Class A Retail Properties $686 78%

a) Retail properties ranked by 2016 YTD NOI ending June 30, 2016. b) Sales per square foot for trailing 12 months ended June 30, 2016 for comparable tenants occupying space less than 10,000 square feet. c) For 2016 YTD ending June 30, 2016. d) Source: U.S. Census Nov. 2015 and GGP. GAFO stands for General Merchandise, Apparel and Accessories, Furniture and Other Sales.

Regional Shopping Centers Urban Retail Assets

GAFO Sales Growth 2010 to 2015; Excluding Department Stores (d)

Sales Volume Growth Total United States (From U.S. Census) 13% GGP Portfolio (Inline, Comp, <10k) 23%

SUSTAINABILITY

2 0 1 5 I M P A C T A T A G L A N C E

Diverted over 54,300 tons of waste from landfills; enough waste to fill

• ver 4,500 garbage trucks.

Reduced our water consumption by 64 million gallons; enough water to fill almost 100 Olympic-size swimming pools. GGP will rank among the Top 10 U.S. companies by solar capacity

• nce

projects are completed, according to the 2015 SEIA Ranking. Reduced our carbon footprint by 23,200 metric tons

• f

carbon dioxide equivalents, which is the equivalent of taking 4,700 cars off U.S. roads. Completed lighting and HVAC upgrades with an expected savings of 44.5 million kilowatt hours annually; equal to remo- ving 4,200 homes from the electrical grid. Since 2011, GGP has reduced electricity consumption by 215.8 million kilowatt hours; enough electricity to power all the homes in Coral Gables, FL for one year.

• Committed to being an environmentally responsible business
• Concentrated on investments that increase environmental performance
• Awarded the 2015 GreenStar and recognized as the North American

leader in the Retail – Large Cap Sector by GRESB in 2014(a)

a) GRESB stands for Global Real Estate Sustainability Benchmark.

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GGP invests in solving for customer pain points

INVESTING IN THE CUSTOMER EXPERIENCE: PARKING

• GGP customers reported parking as the

biggest pain point during the shopping experience

• An upgraded parking availability

notification system and spot identifiers reduce time customers spend parking, and enable more time spent shopping

• A recently released upgrade to GGP’s

app includes a new pilot feature now at Ridgedale Center, Alderwood Mall, Stonestown Galleria, and Oakbrook Center, which allows customers to glean how busy certain blocks of parking are at any given time

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INVESTING IN THE CUSTOMER EXPERIENCE: WAYFINDING

• Goal is to have customers start a product search on Google, find

that product at a GGP retail property, and digitally guide them to an open parking space at the property, and then to the store to find the desired product

GGP is putting resources towards preparing for the future of retail USING DIGITAL TO AID IN BRICK AND MORTAR SALES

CHANGING THE VOCABULARY: RETAIL REAL ESTATE

RETAIL REAL ESTATE

As lines continue to blur between where certain retail tenants would traditionally choose to reside, there is less segmentation by property type and the industry can now be defined simply as Retail Real Estate High quality locations with high quality customer experiences will win

Restaurants Entertainment Sources of Demand Services Grocery

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THE U.S. IS OVER RETAILED

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Source: ICSC, Knight Frank Research

• U.S. has the highest GLA per capita by far among all developed

countries

• U.S. also leads the world in retail sales per capita, but the margin is likely

not wide enough to support the excessive GLA

24 10 5 4 2 2 $11,687 $8,560 $8,014 $8,056 $7,167 $2,238

$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 5 10 15 20 25 30 U.S. Australia U.K. France Germany China

RETAIL REAL ESTATE GLA AND SALES PER CAPITA

RETAIL SF PER CAPITA RETAIL SALES PER CAPITA

Retail SF per Capita Retail Sales per Capita

1”High Quality” has been defined as a regional shopping center rated B+ or better by Green Street Advisors. 2 “High Quality “ has been defined as a Trade Area Power score of 75-100 for strip centers, as rated by Green Street Advisors. The 11% of high quality Strip Centers was extrapolated to project

High Quality GLA for the entire 6.4B sf classified by ICSC as Open-Air Centers.

GLA (in millions) SF Per Capita % of Total High Quality GLA High Quality1 Regional Shopping Center GLA 495 1.6 40% High Quality2 Open-Air Center GLA 732 2.3 60% Total High Quality Retail Real Estate 1,227 3.9 100%

By Type By Quality

3.9 SF PER CAPITA OF U.S. RETAIL REAL ESTATE IS HIGH QUALITY

TOTAL U.S. RETAIL REAL ESTATE GLA LOOKING AT U.S. RETAIL REAL ESTATE GLA BY QUALITY RATHER THAN TYPE vs.

GGP owns 8.2% of all High Quality Retail Real Estate

Mid to Low Quality Retail Real Estate 6.3 billion sf 19.7 sf per capita High Quality Retail Real Estate 1.2 billion sf 3.9 sf per capita

High Quality Open-Air Centers

High Quality Regional Shopping Centers

Open-Air Centers 6.4 billion sf 20.2 sf per capita Regional Shopping Centers 1.1 billion sf 3.4 sf per capita

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BRICK AND MORTAR REMAINS AT THE CENTER OF RETAILING

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Physical stores account for 90% of all retail activity 1 ― Catalog sales at its peak in 1995 was 10% of all retail sales ― Today catalog sales and

• nline sales combined are

10% of all retail sales Omni-channel shoppers spend twice as much as individuals who just shop in one channel ― The Multiplier Effect: customers who browse both channels shop more frequently

Source: Kurt Salmon Review 2013 / Wharton Report

1 In 2014, Pure Play E-Commerce accounted for just 3.3% of all retail sales based on the 2014 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

CURATION IS KEY TO PERFORMANCE

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RESTAURANTS PERSONAL CARE HOME FURNISHINGS APPAREL ENTERTAINMENT ELECTRONICS BIG BOX GROCERY

TRAFFIC IS DRIVEN BY INLINE TENANTS

13 ESTIMATED TOTAL VISITS TO GGP CENTERS (a)

Year-Over-Year Traffic Growth 2012 2013 2014 2015 4% 3%

• 2%

Traffic (in millions) – Bar Graph Sales Per Square Foot – Line Graph a) Source: GGP b) All tenant sales less anchors on a rolling 12 months ended June 30, 2016, excluding Christiana Mall. Tenant sales increased 0.8% including Christiana Mall. c) Sources: U.S. Census Bureau, FactSet, and GGP.

Inline tenants with strong brands and unique products drive consumer spending and continuous traffic

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 Departments

• 23%

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 June 2016, anchor sales are down 1.9% while total inline sales are up 2.8%(b)

Lines form at Oakbrook Center in Oak Brook, IL for the Tesla Model 3 release DEPARTMENT STORES vs. GGP INLINE SHOPS(c)

2005-2015

Sources: GGP Strategy & Analytics, Nielsen Local, 2014-2015. 400,489 respondents. Metlife Investment Management, U.S. Census Bureau, BLS

REGIONAL SHOPPING CENTER VISITATION BY GENERATION PROPENSITY TO SHOP AT LEAST ONCE EVERY THREE MONTHS, 100 = AVG SHOPPER

116 107 92 83 20 40 60 80 100 120 140 Millennials Gen Xers Baby Boomers Silents

UNDERSTANDING THE MILLENNIAL CONSUMER

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1.00 1.01 1.14 0.90 0.95 1.00 1.05 1.10 1.15 1.20 1989 2007 2014

U.S. EXPERIENCE TO STUFF RATIO AGE 25-34

Millennials have the highest “experience-to-stuff ratio,” meaning they spend a majority of their disposable income on experiences, and do so at a higher rate than generations past did at the same age. The regional shopping center is the retail format best positioned to capitalize on the shift towards experienced-based retail spending, with an emphasis on apparel, personal care, and electronics retailers with high levels of customer service and unique product offerings, as well as dining and entertainment options. Millennials have the highest propensity of any generation to visit regional shopping centers on a regular basis.

Millennials Gen X Baby Boomers

Overall, inline regional shopping center retailers are outperforming the department stores given how well they are attracting millennial consumers, who have the highest propensity to spend on retail.

Sources: GGP Strategy & Analytics, Nielsen Local, 2014-2015. 400,489 respondents.

RETAIL ORIENTATION BY GENERATION

PROPENSITY TO SHOP AT LEAST ONCE EVERY THREE MONTHS, 100 = AVG SHOPPER

MAINSTREAM RETAILERS Including Fashion Department Stores MAINSTREAM RETAILERS Excluding Fashion Department Stores

INLINE STORES ATTRACT MILLENNIAL SHOPPERS

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114 117 107 92 83 145 136 118 78 43 20 40 60 80 100 120 140 160 Younger Millennials Older Millennials Gen Xers Baby Boomers Silents Younger Millennials Older Millennials Gen Xers Baby Boomers Silents

RETAILER DEMAND IS STRONG

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Significant retail demand exists from new or expanding retailers, dining concepts, and brand extensions

RETAILERS DINING BRAND EXTENSIONS

A'Gaci Kendra Scott Restoration Hardware Bar Louie Athleta (Gap) Alex and Ani Kiehl's Rue 21 Blaze Pizza Box Lunch (Hot Topic) Allen Edmonds Kiko Cosmetics Serena & Lily Buffalo Wild Wings COS (H&M) Altar'd States Kipling Skechers California Pizza Kitchen Dry Goods (Von Maur) Anthropologie LL Bean Splendid Cheesecake Factory Dynamite (Garage) Apricot Lane Lolli & Pops Soft Surroundings Chipotle Ivivva (lululemon) Arc'teryx Lush Sur la Table Doc B's Lou & Grey (Ann Taylor) Asics MAC Tempur-Pedic Earl’s Love Sick (Hot Topic) Capital Teas Marbles Tervis Five Guys Massimo Dutti (Zara) Charming Charlie's Massage Envy Tesla Kona Grill Mercantile (J. Crew) Crayola Mitchell Gold + Bob Williams Tumi Lyfe Kitchen Oliver Peoples (Luxottica) David's Tea Nespresso Ulta Matchbox Other Stories (H&M) Dyptique The North Face Under Armour MOD Pizza Pink (L Brands) Francesca's NYX Urban Outfitters Nando's Red (Forever 21) Frontgate Oakley Vans Red Robin Six:02 (Foot Locker) Frye Boots Pandora Vineyard Vines Shake Shack Torrid (Hot Topic) Hammermade Peloton Bike Walking Company Smashburger Tory Burch Sport (Tory Burch) Hanna Andersson Pirch West Elm Sweetgreen Typo (Cotton On) Joie Pressed Juicery Z Gallerie Zinburger Under 10 (Forever 21) Juice Generation Rebecca Minkoff White Barn Candles (L Brands)

RETAILER DEMAND IS STRONG (cont’d)

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International, and luxury retailers are also looking for a stronger brick and mortar presence

LUXURY

Agent Provocateur Hugo Boss Bally John Hardy Bottega Veneta Longchamp Burberry Loro Piana Bulgari Louis Vuitton Cartier Marc Jacobs Celine MCM CH Carolina Herrera Paul & Shark Chanel Phillip Plein Christian Louboutin Polo David Yurman Prada Dior Rebecca Taylor Djula Jewelry Saint Laurent Escada The Webster Fendi Tiffany Givenchy Valentino Gucci Zegna

INTERNATIONAL

Aritzia (Canada) Marc Cain (Germany) Ardene (Canada) Melissa Shoes (Brazil) Baldinini (Italy) Muji (Japan) Camper (Spain) Ondademar (Colombia) Colette (Australia) Pret A Manger (UK) Cotton On (Australia) Primark (UK) Flying Tiger (Denmark) Rabeanco (China) Garage (Canada) Seafolly (Australia) Grom (Italy) Sephora (France) H&M (Sweden) Suit Supply (Netherlands) Hackett London (UK) Superdry (UK) Havianas (Brazil) TopShop (UK) Jack Wills (UK) Tous (Spain) Jins (Japan) Track & Field (Brazil) Kneipp (Germany) Urban Planet (Canada) L.K. Bennett (UK) V1969 (Italy) Lego (Denmark) White Company (UK) L’Occitane (France) Zara (Spain) lululemon (Canada)

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eCOMMERCE RETAILERS OPENING BRICK AND MORTAR

ELECTRONICS APPAREL ACCESSORIES Apple Trunk Club Warby Parker Microsoft ModCloth Just Fab Dyson NastyGal Shinola SPORTSWEAR Rent the Runway Classic Specs Athleta Combatant Gentlemen Adore Me Fabletics Duluth Trading Co. The Tie Bar BEAUTY Refinery29 Raden Birchbox 1701 Bespoke Jewelry The Honest Company Weddington Way Baublebar FOOD/CANDY Frank & Oak Blue Nile Vosges Haut-Chocolat Untuckit OTHER Try the World Chubbies Amazon CHILDREN’S APPAREL Everlane Monica & Andy Indochino FURNITURE/HOME Bonobos Essentia

eCOMMERCE RETAILERS OPENING BRICK AND MORTAR

OMNICHANNEL GENERATES HIGHER PROFITS

Source: L2

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REDEVELOPMENT: A WIN-WIN FOR LANDLORDS AND TENANTS

ADVANTAGES OF REPLACING UNDERPERFORMING ANCHOR SPACE WITH TYPICAL STRIP TENANTS

Landlord Advantages Tenant Advantages Increased traffic and in some cases (e.g., grocery) makes the regional shopping center a part of consumer habit Necessary capital to upgrade stores, with rent similar to strip center rent Further regional shopping center curation to include non-traditional regional shopping center tenants A wider trade area (5-25 miles) than strip centers (1-6 miles) is accessible Substantial ROI compared to a space formerly earning just $3-4 psf on average Generation of greater, and more diverse traffic than strip centers

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OAKBROOK CENTER

Former Store Sears Bloomingdale's Neiman Marcus (Lower Level) Sales psf 2010 2015 Change Inline Retail $668 $911 +36% Anchors $233 $271 +17% New Stores Dining/Entertainment Pirch, Aritzia, Boss, lululemon, Tommy Bahama Perry's Steakhouse, Old Town Pour House 21

NATICK MALL

Former Store JCPenney Sears Sales psf 2010 2015 Change Inline Retail $552 $671 +22% Anchors $181 $201 +11% New Stores Wegmans Entertainment 22

FORWARD-LOOKING STATEMENTS Certain statements made in this presentation may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in any forward-looking statement are based on reasonable assumption, it can give no assurance that its expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to, the Company's ability to refinance, extend, restructure or repay near and intermediate term debt, its indebtedness, its ability to raise capital through equity issuances, asset sales or the incurrence of new debt, retail and credit market conditions, impairments, its liquidity demands, and economic conditions. The Company discusses these and other risks and uncertainties in its annual and quarterly periodic reports filed with the Securities and Exchange Commission. The Company may update that discussion in its periodic reports, but otherwise takes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise. Investors and others should note that the Company posts this Investor Presentation on the Investors page of its website at www.ggp.com. From time to time, the Company updates the Investor Presentation and when it does, it will be posted on the Investors section of its website at www.ggp.com. It is possible that the updates could include information deemed to be material information. Therefore, the Company encourages investors, the media and others interested in the Company to review the information posted on the Investors section of its website at www.ggp.com from time to time.

Michael Berman Executive Vice President and Chief Financial Officer michael.berman@ggp.com (312) 960-5044 Kevin Berry Senior Vice President Investor & Public Relations kevin.berry@ggp.com (312) 960-5529

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