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Reuters
Published
Aug 5, 2009
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General Growth retail net operating income falls

By
Reuters
Published
Aug 5, 2009

NEW YORK (Reuters) - General Growth Properties Inc (GGWPQ.PK), the large U.S. mall operator that filed for bankruptcy in April, on Tuesday 4 August reported a 2.1 percent decline in quarterly net operating income from its retail properties, citing weakness in the economy and falling occupancy rates.

General Growth Properties
Bayside Marketplace in Miami, Florida - A General Growth Properties Inc mall - Photo: www.baysidemarketplace.com

Second-quarter net operating income in the "retail and other" segment, measuring cash flow that properties generate, declined to $615.8 million from $629.1 million a year earlier. The Chicago-based real estate investment trust said a sale of three office buildings in 2008 contributed to the decline.

Overall, quarterly funds from operations (FFO) fell 74 percent from a year earlier to $58.2 million, or 18 cents per share. Core FFO, excluding net operating income from the master planned communities segment and a provision for income taxes, fell 44 percent to $124.6 million, or 39 cents per share.

The second-largest U.S. mall owner filed for Chapter 11 protection from creditors on April 16 in the nation's largest real estate failure.

General Growth owns such malls as Faneuil Hall Marketplace in Boston. It has an ownership stake in or management responsibility for more than 200 shopping malls in 44 U.S. states, covering more than 24,000 retail stores.

(Reporting by Jonathan Stempel)

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