GGP Ggp Inc. (delisted)

General Growth Properties, Inc. Announces Record Performance for Third Quarter 2003 CHICAGO, Oct. 27 /PRNewswire-FirstCall/ -- General Growth Properties, Inc. today announced a 22.1% increase in Funds from Operations (FFO) per share for third quarter 2003. Since becoming a public company more than 10 years ago, General Growth has increased FFO per share approximately 16% on a compounded annual basis. "I am pleased to report a strong increase in FFO per share for the quarter," said John Bucksbaum, chief executive officer, General Growth Properties. "We continue to operate our malls in a sound fundamental manner that generates growth in cash flow thus creating long-term growth for our owners." FINANCIAL AND OPERATIONAL HIGHLIGHTS -- Earnings per share-diluted (EPS) in third quarter 2003 increased 4.2% to $.74 versus $.71 for the comparable period in 2002. Earnings before the cumulative effect of an accounting change, as described below, increased 28.2% over the comparable period in 2002. Reflected in third quarter EPS is a charge of approximately $12 million, approximately $.17 on a diluted per share basis, as a cumulative effect adjustment due to the required July 1, 2003 adoption of SFAS #150 -- "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity." This new standard, which we understand may be reconsidered in the near future by the FASB, requires the minority interests of four consolidated property ventures, acquired as part of the 2002 JP Realty purchase, to be reflected at their estimated fair values even though the related venture assets continue to be reported at our previous historical cost. Also reflected in third quarter 2003 results are the application of SFAS No. 141 and SFAS No. 142 which resulted in an earnings increase of approximately $4.3 million or $.06 per share-diluted in third quarter 2003. -- FFO on a per share, fully-diluted basis, rose 22.1% to $1.71 in the third quarter of 2003, up from $1.40 in the third quarter of 2002. Total FFO for the quarter increased 29.1% to $155.7 million, from $120.6 million in last year's third quarter. The application of SFAS No. 141 and 142 resulted in an increase of approximately $8.2 million in FFO or $.09 per fully-diluted share in third quarter 2003. -- For fiscal year 2003, the company currently anticipates that FFO per fully-diluted share, including the effects of SFAS No. 141 and SFAS No. 142, will be in the range of $6.85 to $6.90. -- Prorata real estate net operating income (NOI) increased 20.0% in the quarter to $275.7 million, from $229.7 million during the third quarter of 2002. Total prorata property revenues were $406.8 million for the quarter, an increase of 20.9%, compared to $336.5 million for the same period in 2002. -- Total tenant sales increased 2.1% for third quarter 2003 and comparable tenant sales decreased 0.5% versus the same period last year. -- Comparable center NOI increased by approximately 6.1% during the third quarter. -- Mall shop occupancy increased to 90.7%, compared to 88.7% in third quarter 2002. -- Sales per square foot, on a trailing 12 month basis, as of September 30, 2003, were $354 versus $351 at the end of third quarter 2002. -- Average rent per square foot for new/renewal leases signed during the first nine months of the year was $33.62 versus $34.75 for the same period in 2002. Average rent for all leases expiring in 2003 is $26.70 versus $29.90 in 2002. -- On July 1, 2003, the company acquired the 49% ownership interest in GGP Ivanhoe III previously held by joint venture partner Ivanhoe Cambridge. In this transaction, seven of the eight malls owned by GGP Ivanhoe III became 100% owned by General Growth and one mall was transferred to a newly formed joint venture owned 49% by Ivanhoe Cambridge and 51% by the company. -- On August 27, 2003, the company acquired 100% of Lynnhaven Mall in Virginia Beach, Virginia. -- After quarter-end, on October 14, 2003, General Growth announced the purchase of 100% of Sikes Senter in Wichita Falls, Texas and agreements to acquire 100% of The Maine Mall in South Portland, Maine, and 100% of Glenbrook Square in Fort Wayne, Indiana. -- The company announced on October 1, 2003 a 25% dividend increase and, subject to shareholder approval at a special meeting of stockholders scheduled for November 20, 2003, a three-for-one stock split which, if approved, would be effective on or about December 5, 2003. General Growth, consistent with real estate industry and investment community preferences, uses FFO as a supplemental measure of operating performance for a real estate investment trust (REIT). The National Association of Real Estate Investment Trusts (NAREIT) defines FFO as net income (loss) (computed in accordance with Generally Accepted Accounting Principles (GAAP)), excluding gains (or losses) from cumulative effects of accounting changes, extraordinary items and sales of properties, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. The company considers FFO a supplemental measure for equity REITs and a complement to GAAP measures because it facilitates an understanding of the operating performance of the company's properties without giving effect to real estate depreciation and amortization, which is intended to allocate the cost of property over its useful life. Since values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions, the company believes that FFO provides investors with a clearer view of the company's operating performance. A reconciliation of GAAP net income to FFO is provided in the portfolio results schedule included herein. FFO does not represent cash flow from operating activities in accordance with GAAP, should not be considered as an alternative to net income (determined in accordance with GAAP) and is not necessarily indicative of cash available to fund cash needs. In addition, the company has presented FFO on a wholly owned and prorata basis as we believe the detail of the operations of our unconsolidated centers is important. WEBCAST/CONFERENCE CALL General Growth will host a live webcast of its conference call regarding this announcement on the Company's web site, http://www.generalgrowth.com/ . This webcast will take place on Tuesday, October 28, 2003 at 9:00 a.m., Eastern Time (8:00 a.m. CT, 7:00 a.m. MT, 6:00 a.m. PT). The webcast can be accessed by selecting the conference call icon on the GGP home page. The call will be archived subsequent to the end of the live webcast. General Growth Properties is the country's second largest shopping center owner, developer and manager of regional shopping malls. General Growth currently has ownership interest in, or management responsibility for, a portfolio of 163 regional shopping malls in 39 states. The company portfolio totals approximately 142 million square feet of retail space and includes over 16,000 retailers nationwide. A publicly traded REIT, General Growth Properties is listed on the New York Stock Exchange under the symbol GGP. For more information on General Growth Properties and its portfolio of malls, please visit the company web site at http://www.generalgrowth.com/ . This release may contain forward-looking statements that involve risks and uncertainties. All statements other than statements of historical fact are statements that may be deemed forward-looking statements, which are subject to a number of risks, uncertainties and assumptions. Representative examples of these risks, uncertainties and assumptions include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital requirements, availability of real estate properties, competition from other companies and venues for the sale/distribution of goods and services, changes in retail rental rates in the company's markets, shifts in customer demands, tenant bankruptcies or store closures, changes in vacancy rates at the company's properties, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes, changes in applicable laws, rules and regulations (including changes in tax laws), the ability to obtain suitable equity and/or debt financing, and the continued availability of financing in the amounts and on the terms necessary to support the company's future business. Readers are referred to the documents filed with the SEC, specifically the most recent reports on Forms 10-K and 10-Q, which identify important risk factors which could cause actual results to differ from those contained in the forward-looking statements. FUNDS FROM OPERATIONS and PORTFOLIO RESULTS (unaudited) Three Months Ended Nine Months Ended (in thousands, except per share September 30, September 30, data) 2003 2002 2003 2002 FUNDS FROM OPERATIONS (FFO) Funds From Operations - Operating Partnership $155,750 $120,600 $412,596 $315,588 Less: Allocations to Operating Partnership unitholders $33,644 $28,892 $94,649 $75,606 Funds From Operations - Company stockholders $122,106 $91,708 $317,947 $239,982 Funds From Operations per share - Company stockholders - basic $1.74 $1.47 $4.87 $3.86 Funds From Operations per share - Operating Partnership - basic $1.74 $1.47 $4.87 $3.86 Funds From Operations per share - Operating Partnership - diluted $1.71 $1.40 $4.68 $3.70 Weighted average number of Company shares outstanding - basic 70,297 62,244 65,283 62,121 Weighted average number of Company shares outstanding - basic (assuming full conversion of Operating Partnership units) 89,666 81,812 84,717 81,692 Weighted average number of Company shares outstanding - diluted (assuming full conversion of Operating Partnership units and convertible preferred stock) 91,124 90,493 90,934 90,345 PORTFOLIO RESULTS (a) Total revenues (b),(c) $406,826 $336,528 $1,153,540 $887,061 Operating expenses (131,152) (106,842) (375,947) (282,241) Real estate net operating income 275,674 229,686 777,593 604,820 Net General Growth Management, Inc. (GGMI) operations 1,802 (1,328) 4,133 3,147 Headquarters and regional costs including depreciation that reduces FFO (13,651) (10,733) (50,511) (33,766) General and administrative (1,854) (1,431) (7,296) (4,604) Net interest expense (d) (96,045) (80,172) (268,045) (217,380) Preferred stock dividends - (6,117) (13,030) (18,351) Preferred unit distributions (10,176) (9,305) (30,248) (18,278) Funds From Operations - Operating Partnership 155,750 120,600 412,596 315,588 RECONCILIATION OF GAAP NET INCOME TO FUNDS FROM OPERATIONS (e) Net income (loss) available to common stockholders $52,090 $44,467 $141,651 $110,581 Extraordinary items (d) - - - - Cumulative effect of an accounting change (f) 12,083 - 12,083 - Income available to common stockholders before extraordinary items and cumulative effect 64,173 44,467 153,734 110,581 Income from discontinued operations, including gain on sale (793) (360) (5,123) (1,118) Income from continuing operations 63,380 44,107 148,611 109,463 Allocations to Operating Partnership unitholders 14,377 13,986 42,168 34,838 FFO of property sold in 2003 - 459 292 1,404 Depreciation and amortization of capitalized real estate costs (including SFAS #141 and #142 lease origination costs) other than amortization of financing costs 77,993 62,048 221,525 169,883 Funds From Operations - Operating Partnership 155,750 120,600 412,596 315,588 Funds From Operations - Operating Partnership unitholders (33,644) (28,892) (94,649) (75,606) Funds From Operations - Company stockholders 122,106 91,708 317,947 239,982 RECONCILIATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR GAAP AND FFO PER SHARE COMPUTATIONS Weighted average number of Company shares outstanding - for GAAP basic EPS 70,297 62,244 65,283 62,121 Full conversion of Operating Partnership units 19,369 19,568 19,434 19,571 Weighted average number of Company shares outstanding - for basic FFO per share 89,666 81,812 84,717 81,692 Weighted average number of Company shares outstanding - for GAAP diluted EPS 70,575 62,424 65,502 62,273 Conversion of PIERS to Common Stock 1,180 8,501 5,998 8,501 Full conversion of Operating Partnership units 19,369 19,568 19,434 19,571 Weighted average number of Company shares outstanding - for diluted FFO per share 91,124 90,493 90,934 90,345 Earnings from continuing operations per share - basic $0.90 $0.71 $2.28 $1.76 Earnings from continuing operations per share - diluted $0.90 $0.71 $2.27 $1.76 Earnings from discontinued operations per share - basic $0.01 $- $0.08 $0.02 Earnings from discontinued operations per share - diluted $0.01 $- $0.08 $0.02 Earnings before cumulative effect of accounting change per share - basic $0.91 $0.71 $2.36 $1.78 Earnings before cumulative effect of accounting change per share - diluted $0.91 $0.71 $2.35 $1.78 Earnings (loss) per share - basic $0.74 $0.71 $2.17 $1.78 Earnings (loss) per share - diluted $0.74 $0.71 $2.16 $1.78 (a) Portfolio results combine the revenues and expenses of General Growth Management, Inc. (a Taxable REIT Subsidiary) with the applicable ownership percentage multiplied by the revenues and expenses from properties wholly and/or partially owned by the Operating Partnership. (b) Includes straight-line rent of $4,754 and $4,287 for the three months ended and $13,389 and $9,830 for the nine months ended September 30, 2003 and 2002, respectively. (c) Includes non-cash rental revenue recognized pursuant to SFAS #141 and #142 for the three and nine months ended September 30, 2003 of $8,222 and $18,976, respectively. (d) As of the first quarter of 2003 and pursuant to SFAS #145 - Rescission of FASB Statements 4,44 and 64 and Technical Corrections, the Company now reflects costs related to the extinguishment of debt as additional interest expense. Previously, such costs were reflected as an extraordinary item. As required, FFO for the three and nine months ended September 30, 2002 has been adjusted to maintain comparability. (e) Reconciliation of net income determined in accordance with generally accepted accounting principles to FFO (Company non-GAAP supplemental measure of operating performance) as defined by NAREIT and as required by SEC Regulation G. (f) As required by SFAS #150 - Accounting for Certain Financial Instruments with Characteristics of Liabilities and Equity, this amount reflects the adjustment to reflect the minority interests of certain former JP Realty consolidated property partnerships at their fair value as of July 1, 2003. RECONCILIATION OF REAL ESTATE PROPERTY NET OPERATING INCOME Three Months Ended Nine Months Ended TO GAAP OPERATING INCOME September 30, September 30, (unaudited) 2003 2002 2003 2002 Real estate net operating income, including Unconsolidated Centers $275,674 $229,686 $777,593 $604,820 Real estate net operating income - Unconsolidated Centers (65,855) (61,633) (215,471) (175,975) Real estate net operating income - Wholly Owned Centers 209,819 168,053 562,122 428,845 GGMI fees 21,071 18,164 61,672 55,395 GGMI expenses (19,269) (19,492) (57,539) (52,248) Headquarters/regional costs (5,003) (2,923) (23,881) (12,045) General and administrative (1,675) (1,302) (6,479) (4,334) Depreciation and amortization (61,737) (45,923) (166,020) (124,300) Other* 415 (455) 314 (1,402) GAAP Operating income - Consolidated General Growth Properties, Inc. $143,621 $116,122 $370,189 $289,911 *Reflects discontinued operations and minority interest in Wholly-Owned real estate net operating income SUMMARIZED BALANCE SHEET INFORMATION (unaudited) September 30, December 31, 2003 2002 Cash and marketable securities $138,331 $54,116 Investment in real estate Net land, building and equipment $7,603,259 $6,069,073 Developments in progress $118,861 $90,492 Investment in and loans from Unconsolidated Real Estate Affiliates $624,997 $766,519 Investment in real estate, net $8,347,117 $6,926,084 Total assets $8,860,939 $7,280,822 Mortgage and other notes payable $6,054,930 $4,592,311 Minority interest - Preferred $468,614 $468,201 Minority interest - Common $419,634 $377,746 Preferred stock $- $337,500 Stockholders' equity $1,588,832 $1,196,525 Total capitalization (at cost) $8,532,011 $6,972,283 PORTFOLIO CAPITALIZATION DATA (unaudited) Total portfolio debt (Company debt above ($6,054,930 and $4,592,311, respectively) plus pro rata share of debt ($1,884,828 and $2,177,024, respectively) from unconsolidated affiliates) of which (after the effect of the Company's current swap agreements) $2,320,627 and $2,453,571, respectively, is comprised of variable rate debt. $7,939,758 $6,769,335 Preferred stock - 449,415 Preferred equity - primarily preferred Operating Partnership units 468,614 468,201 Stock market value of common stock and common Operating Partnership units outstanding at end of period 6,517,985 4,261,573 Total market capitalization at end of period $14,926,357 $11,948,524 OTHER COMPANY PORTFOLIO DATA (a) AS OF AND/OR FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 (unaudited) Wholly Owned Unconsolidated Weighted Centers Centers Average Space leased at centers not under redevelopment 91.1% 89.9% 90.7% Tenant allowances/improvements and capitalized leasing costs (in thousands) $39,655 $17,365 $57,020 Trailing 12 month total sales per sq. ft. $332 $388 $354 Average annualized in place rent per sq. ft. $28.99 $32.35 $30.98 Average rent per sq. ft. for new/renewal leases $31.53 $35.79 $33.62 Average rent per sq. ft. for leases expiring in 2003 $22.16 $31.29 $26.70 % change in total sales 1.9% 2.5% 2.1% % change in comparable sales -0.4% -0.7% -0.5% (a) Data is for 100% of the mall non-anchor GLA in each portfolio, including those centers that are owned in part by unconsolidated affiliates. Data excludes properties currently being redeveloped and/or remerchandised and miscellaneous (non-mall) properties. GENERAL GROWTH PROPERTIES, INC BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2003 (In thousands, unaudited) Wholly Owned Unconsolidated Centers Centers (a) Total Revenues Minimum rents (b),(c) $204,972 $65,377 $270,349 Tenant recoveries 86,576 32,831 119,407 Overage rents 6,042 1,150 7,192 Other (d) 8,233 1,645 9,878 Total revenues 305,823 101,003 406,826 Operating expenses Real estate taxes 23,901 9,077 32,978 Repairs and maintenance 20,584 7,319 27,903 Marketing 9,533 3,356 12,889 Other property operating costs 39,781 14,613 54,394 Provision for doubtful accounts 2,205 783 2,988 Total operating expenses 96,004 35,148 131,152 Real estate net operating income 209,819 65,855 275,674 GGMI fees (e) 21,071 - 21,071 GGMI expenses (e) (19,269) - (19,269) Headquarters/regional costs (5,003) (5,779)(f) (10,782) General and administrative (1,675) (179) (1,854) Depreciation that reduces FFO (g) (2,869) - (2,869) Interest income 611 373 984 Interest expense (72,058) (20,683) (92,741) Amortization of deferred finance costs (1,628) (1,446) (3,074) Debt extinguishment costs (h) (1,024) (190) (1,214) Preferred stock dividends - - - Preferred unit distributions (10,176) - (10,176) Uncombined Funds From Operations 117,799 37,951 155,750 Equity in Funds from Operations of Unconsolidated Centers 37,951 (37,951) - Operating Partnership Funds From Operations $155,750 $- $155,750 GENERAL GROWTH PROPERTIES, INC BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002 (In thousands, unaudited) Wholly Owned Unconsolidated Centers Centers (a) Total Revenues Minimum rents (b) $156,162 $61,396 $217,558 Tenant recoveries 69,328 33,287 102,615 Overage rents 4,385 931 5,316 Other (d) 9,873 1,166 11,039 Total revenues 239,748 96,780 336,528 Operating expenses Real estate taxes 16,377 9,330 25,707 Repairs and maintenance 16,103 6,673 22,776 Marketing 7,708 5,516 13,224 Other property operating costs 30,722 12,077 42,799 Provision for doubtful accounts 785 1,551 2,336 Total operating expenses 71,695 35,147 106,842 Real estate net operating income 168,053 61,633 229,686 GGMI fees (e) 18,164 - 18,164 GGMI expenses (e) (19,492) - (19,492) Headquarters/regional costs (2,923) (4,926)(f) (7,849) General and administrative (1,302) (129) (1,431) Depreciation that reduces FFO (g) (2,884) - (2,884) Interest income 3,048 2,261 5,309 Interest expense (60,825) (22,507) (83,332) Amortization of deferred finance costs (1,288) (391) (1,679) Debt extinguishment costs (h) (18) (452) (470) Preferred stock dividends (6,117) - (6,117) Preferred unit distributions (9,305) - (9,305) Uncombined Funds From Operations 85,111 35,489 120,600 Equity in Funds from Operations of Unconsolidated Centers 35,489 (35,489) - Operating Partnership Funds From Operations $120,600 $- $120,600 (a) The Unconsolidated Centers include Quail Springs, Town East, the GGP/Ivanhoe entities, the GGP/Teachers entities and the GGP/Homart entities and are reflected at the Operating Partnership's share of such amounts. (b) Includes straight-line rent of $4,754 and $4,287 for the three months ended September 30, 2003 and 2002, respectively. (c) Includes SFAS #141 and #142 minimum rent accretion of $8,222 for the three months ended September 30, 2003. (d) Includes zero and $459 for the three months ended September 30, 2003 and 2002, respectively, of net FFO of investment property sold in 2003. (e) Represents the revenues and operating expenses of GGMI, the Company's taxable REIT subsidiary. (f) Headquarters/regional costs for the unconsolidated centers include property management and other fees to GGMI. (g) Represents depreciation on non-income producing assets including the Company's headquarters building. (h) As of the first quarter of 2003 and pursuant to SFAS 145 - Rescission of FASB Statements 4,44 and 64 and Technical Corrections, the Company now reflects costs related to the extinguishment of debt as additional interest expense. Previously, such costs were reflected as an extraordinary item. As required, third quarter 2002 FFO has been adjusted to maintain comparability. GENERAL GROWTH PROPERTIES, INC BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 (In thousands, unaudited) Wholly Owned Unconsolidated Centers Centers (a) Total Revenues Minimum rents (b),(c) $548,375 $214,172 $762,547 Tenant recoveries 238,232 107,773 346,005 Overage rents 16,086 3,410 19,496 Other (d) 21,204 4,288 25,492 Total revenues 823,897 329,643 1,153,540 Operating expenses Real estate taxes 64,518 30,830 95,348 Repairs and maintenance 56,853 24,759 81,612 Marketing 25,294 10,926 36,220 Other property operating costs 109,392 46,175 155,567 Provision for doubtful accounts 5,718 1,482 7,200 Total operating expenses 261,775 114,172 375,947 Real estate net operating income 562,122 215,471 777,593 GGMI fees (e) 61,672 - 61,672 GGMI expenses (e) (57,539) - (57,539) Headquarters/regional costs (23,881) (18,356)(f) (42,237) General and administrative (6,479) (817) (7,296) Depreciation that reduces FFO (g) (8,274) - (8,274) Interest income 1,667 1,281 2,948 Interest expense (192,105) (66,633) (258,738) Amortization of deferred finance costs (5,076) (4,025) (9,101) Debt extinguishment costs (h) (2,497) (657) (3,154) Preferred stock dividends (13,030) - (13,030) Preferred unit distributions (30,248) - (30,248) Uncombined Funds From Operations 286,332 126,264 412,596 Equity in Funds from Operations of Unconsolidated Centers 126,264 (126,264) - Operating Partnership Funds From Operations $412,596 $- $412,596 GENERAL GROWTH PROPERTIES, INC BREAKDOWN OF COMPANY PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 (In thousands, unaudited) Wholly Owned Unconsolidated Centers Centers (a) Total Revenues Minimum rents (b) $399,334 $174,996 $574,330 Tenant recoveries 183,621 89,945 273,566 Overage rents 11,529 2,747 14,276 Other (d) 21,735 3,154 24,889 Total revenues 616,219 270,842 887,061 Operating expenses Real estate taxes 43,736 25,882 69,618 Repairs and maintenance 43,368 19,940 63,308 Marketing 18,459 9,539 27,998 Other property operating costs 78,139 36,900 115,039 Provision for doubtful accounts 3,672 2,606 6,278 Total operating expenses 187,374 94,867 282,241 Real estate net operating income 428,845 175,975 604,820 GGMI fees (e) 55,395 - 55,395 GGMI expenses (e) (52,248) - (52,248) Headquarters/regional costs (12,045) (14,680)(f) (26,725) General and administrative (4,334) (270) (4,604) Depreciation that reduces FFO (g) (7,041) - (7,041) Interest income 3,214 5,630 8,844 Interest expense (153,767) (67,685) (221,452) Amortization of deferred finance costs (3,100) (1,170) (4,270) Debt extinguishment costs (h) (50) (452) (502) Preferred stock dividends (18,351) - (18,351) Preferred unit distributions (18,278) - (18,278) Uncombined Funds From Operations 218,240 97,348 315,588 Equity in Funds from Operations of Unconsolidated Centers 97,348 (97,348) - Operating Partnership Funds From Operations $315,588 $- $315,588 (a) The Unconsolidated Centers include Quail Springs, Town East, the GGP/Ivanhoe entities, the GGP/Teachers entities and the GGP/Homart entities and are reflected at the Operating Partnership's share of such amounts. (b) Includes straight-line rent of $13,389 and $9,830 for the nine months ended September 30, 2003 and 2002, respectively. (c) Includes SFAS #141 and #142 minimum rent accretion of $18,976 for the nine months ended September 30, 2003. (d) Includes $292 and $1,404 for the nine months ended September 30, 2003 and 2002, respectively, of net FFO of investment property sold in 2003. (e) Represents the revenues and operating expenses of GGMI, the Company's taxable REIT subsidiary. (f) Headquarters/regional costs for the unconsolidated centers include property management and other fees to GGMI. (g) Represents depreciation on non-income producing assets including the Company's headquarters building. (h) As of the first quarter of 2003 and pursuant to SFAS 145 - Rescission of FASB Statements 4,44 and 64 and Technical Corrections, the Company now reflects costs related to the extinguishment of debt as additional interest expense. Previously, such costs were reflected as an extraordinary item. As required, FFO for the nine months ended September 30, 2002 has been adjusted to maintain comparability. http://www.newscom.com/cgi-bin/prnh/19990208/CGM015 DATASOURCE: General Growth Properties, Inc. CONTACT: John Bucksbaum, +1-312-960-5005, or Bernard Freibaum, +1-312-960-5252, both of General Growth Properties Web site: http://www.generalgrowth.com/ Company News On-Call: http://www.prnewswire.com/comp/110740.html

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