INVESTOR PRESENTATION MARCH 2017 OVERVIEW MISSION STATEMENT - - PowerPoint PPT Presentation

INVESTOR PRESENTATION

MARCH 2017 A R E T A I L R E A L E S T A T E C O M P A N Y

GLENDALE GALLERIA ALA MOANA CENTER FASHION SHOW SOUTHWEST PLAZA WILLOWBROOK (NJ)

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OVERVIEW

a) As of December 31, 2016.

MISSION STATEMENT 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

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S&P 500 REAL ESTATE INVESTMENT TRUST (a)

Headquarters Chicago Retail Properties 127 States 40 Inline & Freestanding GLA Total Retail GLA 56 million 121 million Equity Market Cap Enterprise Value $22 billion $40 billion

WATER TOWER PLACE PIONEER PLACE PARK MEADOWS OAKBROOK CENTER

Sandeep Mathrani, Chief Executive Officer Michael Berman, Executive Vice President and Chief Financial Officer Shobi Khan, 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 Brian McCarthy Executive Vice President, Asset Management Julie Knudson, Senior Vice President and Chief Human Resources Officer

EXECUTIVE TEAM

Tara Marszewski, Senior Vice President, Chief Accounting Officer

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IRREPLACEABLE RETAIL REAL ESTATE IN THE U.S.

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a) Retail properties ranked by trailing 12 months NOI ending December 31, 2016. Table excludes Christiana Mall. b) Sales per square foot for trailing 12 months ended December 31, 2016 for comparable tenants occupying space less than 10,000 square feet. c) Company NOI for 2016

Sales and NOI Contribution(a) Top Retail Properties Sales PSF <10K SF(b) % of Company NOI(c) Top 10 $835 24% Top 30 $737 51% Top 50 $664 69% Top 100 $582 96%

GGP owns 100 of the top 500 regional shopping centers in the U.S.

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

a) “High Quality” represents malls rated B+ or better by Green Street Advisors. b) “High Quality” represents strip centers rated with a Trade Area Power score of 75-100 by Green Street Advisors.

GLA (in millions) SF Per Capita % of Total High Quality GLA High Quality(a) Regional Shopping Centers 495 1.6 40% High Quality(b) Open-Air Centers 732 2.3 60% Total 1,227 3.9 100%

Type Quality

HIGH QUALITY RETAIL PROPERTIES

TOTAL U.S. RETAIL REAL ESTATE GLA

GGP controls 8.2% of all High Quality Retail Real Estate

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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THE U.S. IS OVER RETAILED

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a) ICSC Country Fact Sheets. b) At Current” is the average center sales per square foot data from Green Street Advisors, while “Assuming Reduction of GLA by 25%” removes 25% of lowest quality centers by productivity and redistributes sales to remaining centers.

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

24 16 11 5 4 3 2

$14,614 $10,953 $9,239 $6,495 $8,437 $3,282 $6,323 5 10 15 20 25 30 U.S. Canada Australia U.K. France China Germany $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000

RETAIL REAL ESTATE GLA AND SALES PER CAPITA

Retail SF per Capita Retail Sales per Capita (in U.S. Dollars)

RETAIL SF PER CAPITA RETAIL SALES PER CAPITA

Average Center Sales/SF At Current $493 Assuming Reduction of GLA by 25% $602

U.S. Regional Shopping Center Productivity

(a) (b)

CHANGING THE VOCABULARY RETAIL REAL ESTATE

RETAIL REAL ESTATE

Restaurants Entertainment Sources of Demand Services Grocery

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Retailers, restaurants and entertainment venues are property type agnostic and want to be in high quality retail locations that attract heavy traffic.

CHANGING THE VOCABULARY RETAIL REAL ESTATE

8 57% 55% 49% 54% Bowling Alley Spa Grocery Store Brewery % OF CUSTOMERS WHO WOULD LIKE TO SEE RETAIL TYPE IN A REGIONAL SHOPPING CENTER

Source: GGP Strategy & Analytics, 2017. Sample Size= 14,000

GGP is adding these new uses to centers Shoppers want to see new uses at regional shopping centers

HIGH QUALITY CENTERS DRAW MORE TRAFFIC

Sources: GGP proprietary traffic cameras installed in 95 properties.

AVERAGE WEEKLY TRAFFIC BY MALL GRADE

BLACK FRIDAY 2016 – JANUARY 2017

GGP began tracking property-level traffic during the 2016 holiday shopping season. Within the GGP portfolio, A properties draw 1.6X more shoppers than B+ properties and 2.1X more shoppers than B properties.

9 Average Weekly Traffic by Center Grade

Black Friday 2016- January 2017

24 81 84 48 62 72

NUMBER OF CENTERS

REGIONAL SHOPPING CENTERS DRAW BETWEEN 50% AND 150% MORE MARKET RESIDENTS

(a) Source for visits data is Nielsen Local 2014, 2015

Notes: DMAs Used: Atlanta, Boston, Chicago, Dallas, Houston, Los Angeles, New York City, Philadelphia, San Francisco/San Jose, Washington, DC. Excludes Mills and outlet properties

AVERAGE VISITS TO CENTER PER QUARTER (a)

BASED ON RESIDENTS AGE 18+ IN TOP 10 DMAS; CENTER GRADE BY GREEN STREET

Analysis of 371 retail centers covered in Nielsen Local data within the 10 most-populated DMAs in the United States reveals that residents (age 18+) shop regional shopping centers nearly 2 times more often than lifestyle centers or strip centers, depending on the grade of center as determined by Green Street Advisors. GGP centers within these markets draw approximately 2.5 times the number of residents compared to lifestyle or strip centers on a quarterly basis.

REGIONAL SHOPPING CENTERS OTHER TYPES LIFESTYLE CENTERS STRIP CENTERS C OR LOWER CENTERS B CENTERS A CENTERS GGP CENTERS

613K 376K 265K 276K 238K 695K

GGP

Within the largest U.S. markets, regional shopping centers consistently draw more market residents than other retail property types.

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RETAIL CATEGORY SHARE OF GLA

Cistri/Urbis. Regional data represents centers larger than 300,000 sf. 46% 13% 8% 29% 6% 27% 13% 11% 47% 10% 23% 15% 13% 36% 6% 17% 17% 11% 45% 15% 15% 21% 16% 40% 8%

0% 10% 20% 30% 40% 50% Department Store Mini Major/Big Box Entertainment & Non-Retail Specialty Food & Beverage

Retail Category Share of Total GLA

USA UK Australia Asia Middle East

U.S. retail is over-indexed in department stores and under-indexed in entertainment, food & beverage, and big box compared to other regions

CURATION IS KEY TO PERFORMANCE

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RESTAURANTS PERSONAL CARE HOME FURNISHINGS APPAREL ELECTRONICS BIG BOX GROCERY ENTERTAINMENT

EXPERIENTIAL RETAILING

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Experiences and changing consumption patterns are having a major impact on retail formats. In response to this change, GGP looks for opportunities to update centers by remerchandising and refreshing to maintain a differentiated consumer experience and thus a sustainable competitive advantage for the future.

Events & Social Environment Food & Entertainment Technology Unique Product Offerings

Curating the Retail Experience

Dominance in Trade Area Sustainable Competitive Advantage Constant Evolution Differentiated Experience

Sustainable Relevance Cycle

OAKBROOK CENTER DEVELOPMENT CASE STUDY

Master Renovation (2012 & 2013 & 2014)

• Full mall common area space cosmetic update
• Construction of three glass box pavilions ideal for

incubating newer retail concepts

• Installation of a video screen in the common area for

community events

Building H (2013)

• Redevelop Bloomingdale's Home into The Container Store, Pirch,

and inline GLA.

• Development Cost: $13.8M
• Yield: 11%

Development 2011-2016 Development Results Development Pipeline

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Neiman Marcus Restaurant Development (2013)

• Convert lower level of Neiman Marcus into 2 restaurants,

followed by multi-million dollar interior renovation of Neiman Marcus store.

Hotel (2014)

• Ground lease of existing hotel site to new operator for remodel.

Development 2011-2016 Development Results Development Pipeline

OAKBROOK CENTER DEVELOPMENT CASE STUDY

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Parking Improvements (2016)

• Enhance customer experience and path-to-purchase through

parking improvements (aesthetic, architectural, and technological elements).

Theater (2016)

• Addition of new theater and food hall along with Building G

common area renovation.

Development 2011-2016 Development Results Development Pipeline

OAKBROOK CENTER DEVELOPMENT CASE STUDY

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Net value creation of $470M assuming a 3.75% cap rate on incremental NOI

Development 2011-2016 Development Results Development Pipeline

OAKBROOK CENTER DEVELOPMENT CASE STUDY

17 2011 2017 Forecast Total Change % Change Total Sales $349M $479M $130M 37% Sales PSF <10K SF $694 $992 $298 43%

Continuing the Evolution of Oakbrook

Sears + Edutainment Provider + Fitness Center

Redevelop Sears box into downsized Sears, inline GLA, and an edutainment provider. Fitness center concept to replace Sears Auto Center footprint.

Development 2011-2016 Development Results Development Pipeline

OAKBROOK CENTER DEVELOPMENT CASE STUDY

rendering subject to change

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$1.3 billion of projects under construction or in the pipeline Anticipated spend of $300 million to $400 million annually to acquire and redevelop anchor boxes

REDEVELOPMENT ACTIVITIES

(a) Expected costs and investments to date exclude capitalized interest and overhead. (b) Return on investment represents first year stabilized cash-on-cash return, based on budgeted assumptions. Actual costs may vary.

Property Description GGP’s Total Projected Share

• f Cost ($)

GGP’s Investment to Date ($)(a) Expected Return on Investment(b) Stabilized Year (in millions, at share) Under Construction Staten Island Mall Staten Island, NY Expansion 231 28 7-9% 2019 Other Projects Redevelopment projects at various properties 394 236 6-8% 2017-2018 Total Projects Under Construction 625 264 Projects in Pipeline New Mall Development Norwalk, CT Ground up mall development 285 51 8-10% 2020 Other Projects Redevelopment projects at various properties 368 70 8-9% TBD Total Projects In The Pipeline 653 121

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STATEN ISLAND REDEVELOPMENT

The existing center will be extended by 285K sf and will include Dave & Buster’s, Zara, restaurants, inline space, and a new food court

BRICK AND MORTAR CAPTURES 93% OF RETAIL SALES

$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 Total Sales (billions) % of Total Sales $4,221 89.7% Direct brick and mortar sales + $143 3.0% Online sales from retailers with brick and mortar presence (Omnichannel Sales) $4,364 92.7% Brick and mortar related retail sales + $144 3.1% Mail order and e-commerce auction sales + $26 0.6% Non-merchandise receipts (including shipping, electronic auction commissions) + $173 3.7% Pure-play e-commerce $4,708 100% Total retail sales

Source: ICSC analysis of 2015 U.S. Census data

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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E-COMMERCE EXPANSION INTO BRICK AND MORTAR

Bonobos launches online First Guideshop launches in NYC 30 Guideshops across the U.S. Warby Parker launches online 6 showrooms launch across the U.S. 47 Showrooms across the U.S. 30 Kiosks launch in regional shopping centers. Amazon launches

• nline

100 Guideshops across the U.S. by 2020 800-1,000 physical locations in the future

2011 2013 2016 1994 2007 2008 2010 2012

Fabletics launches

• nline

18 locations across the U.S. Sugarfina launches

• nline

First location

• pens

21 locations across the U.S.

Source

Wall Stree Journal Wall Street Journal Amazon.co Fabletics.co Sugarfina.co

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Athleta opens first flagship location in San Francisco Amazon Go announced, and Amazon Books opens 3 locations Athleta expands to 120 locations Athleta acquired by Gap Online and mail

• rder only.

GapInc.com Amazon to

• pen 5

additional Amazon Books, for a total of 8.

Sources: Company websites and/or public statements

2017 and Beyond

SUSTAINABILITY

2015 IMPACT AT A GLANCE

Diverted 54,300 tons of waste from landfills; enough waste to fill over 4,500 garbage trucks. Reduced water consumption by 64 million gallons; enough water to fill almost 100 Olympic-size swimming pools. Top 10 U.S. company by solar capacity. Eliminated 23,200 metric tons

• f

carbon dioxide equivalents, equal to taking 4,700 cars off U.S. roads. Upgrades to power saved 44.5 million kilowatt hours annually; equal to removing 4,200 homes from the electrical grid. Since 2011, reduced electricity consumption by 215.8 million kilowatt hours; enough electricity to power all the homes in Coral Gables, 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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GGP’S DIGITAL INITIATIVES

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PRODUCT SEARCH PARKING

GGP has invested in digital initiatives to solve customer pain points in the shopping process, such as parking and locating desired products.

DEBT PROFILE

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Overview as of 12/31/2016

($ in millions at GGP share)

Fixed Rate $14,759 Variable Rate $3,575 Total Debt $18,335 Remaining Term(a) 5.5 Years Total Debt / Enterprise Value 45.5% Net Debt / EBITDA (b) 7.9x Interest Coverage 2.8x Debt Maturity Ladder(a)

($ in billions at GGP share)

a) Assumes maturity extension options are exercised and approved. b) Refer to page 4 for Company Ebitda, and page 27 for Net Debt in GGP’s Fourth Quarter 2016 Supplemental available at Investor.GGP.com

$0.1 $0.5 $2.1 $2.8 $3.0 $2.4 $1.9 $1.6 $1.7 $0.5 $0.5 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 +

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

• r 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

• bligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or
• therwise.

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 Kevin Berry Senior Vice President Investor & Public Relations kevin.berry@ggp.com

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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