EX-12.1 7 d567992dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

GGP Inc.

Consolidated Earnings to Fixed Charges

(Includes Distributions from Unconsolidated Real Estate Affiliates in excess of income)

 

    Three Months
Ended March 31,
2018		     Three Months
Ended March 31,
2017		     Year Ended
December 31,
2017		     Year Ended
December 31,
2016		     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		     Year Ended
December 31,
2013		  
   

(Dollars in millions)

 

Earnings

              

Income from continuing operations (1)

   $ 66     $ 110     $ 667     $ 1,308     $ 1,394     $ 398     $ 329  

Less: Provision for income taxes

     —       5       (11 )      1       (38 )      7       —    

Less: Equity in (income) of Unconsolidated Real Estate Affiliates

     (34 )      (33 )      (165 )      (283 )      (400 )      (61 )      (69 ) 

Plus: Fixed Charges (2)

     138       122       508       540       577       695       746  

Plus: Amortization of capitalized interest

     —         —         1       1       —         —         —    

Plus: Distributions received from Unconsolidated Real Estate Affiliates (3)

     63       69       405       204       233       434       276  

Less: Capitalized interest

     (4 )      (2 )      (11 )      (5 )      (13 )      (17 )      (11 ) 

Less: Preferred unit distributions

     (1 )      (2 )      (2 )      (9 )      (9 )      (9 )      (9 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings

   $ 227     $ 269     $ 1,392     $ 1,757     $ 1,744     $ 1,447     $ 1,262  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Interest

              

Interest expense

   $ 138     $ 132     $ 487     $ 571     $ 608     $ 699     $ 759  

Interest income

     (9 )      (18 )      (62 )      (60 )      (49 )      (29 )      (8 ) 

Amortization of deferred finance costs

     (3 )      (3 )      (11 )      (12 )      (12 )      (13 )      (9 ) 

Debt extinguishment costs including gains/(losses)

     —         —         55       —         —         —         (36 ) 

Amortization of market rate adjustments

     1       1       4       3       —         (3 )      (9 ) 

Write-off of market rate adjustments

     —         —         —         2       (14 )      (10 )      6  

Other non-cash interest expense

     —         —         —         —         —         —         —    
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net interest

   $ 127     $ 112     $ 473     $ 504     $ 533     $ 644     $ 703  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

    Three Months
Ended March 31,
2018		     Three Months
Ended March 31,
2017		     Year Ended
December 31,
2017		     Year Ended
December 31,
2016		     Year Ended
December 31,
2015		     Year Ended
December 31,
2014		     Year Ended
December 31,
2013		  
    (Dollars in millions)  

Fixed Charges

              

Net Interest

   $ 127     $ 112       473       504       533       644       703  

Ground rent expense

     2       2       6       6       6       9       9  

Capitalized interest

     4       2       11       5       13       17       11  

Preferred unit distributions

     1       2       2       9       9       9       9  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

     134       118       492       524       561       679       732  

Preferred stock distributions

     4       4       16       16       16       16       14  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Combined fixed charges and preferred stock distributions

   $ 138     $ 122     $ 508     $ 540     $ 577     $ 695     $ 746  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of consolidated earnings to total fixed charges

     1.70       2.28       2.83       3.35       3.11       2.13       1.72  

Ratio of consolidated earnings to combined fixed charges and preferred stock distributions

     1.65       2.21       2.74       3.25       3.02       2.08       1.69  

 

(1) - Income from continuing operations component of earnings includes non-cash charges for depreciation and amortization expense and provisions for impairment. Depreciation and amortization expense included in Income from continuing operations was $185.4 million, $170.3 million, $693.3 million, $660.7 million, $643.7 million, $708.4 million, $749.7 million for the three months ended March 31, 2018, three months ended March 31, 2017 and for the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively. Provisions for impairment included in Income from continuing operations was $38.4 million, $0.0 million, $0.0 million, $73.0 million, $8.6 million and $5.3 million for the three months ended March 31, 2018, three months ended March 31, 2017 and for the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively.
(2) - Earnings exceeded fixed charges by $93.2 million, $151.0 million, $899.7 million, $1,232.1 million, $1,182.1 million, $768.2 million and $529.8 million for the three months ended March 31, 2018, three months ended March 31, 2017 and for the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively.
(3) - Includes both operating and investing distributions.