##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the quarterly period ended June 30, 2007
 or
 o
    
    Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the transition period from  to
 Commission file number 1-11656
 GENERAL GROWTH PROPERTIES, INC.
  Delaware
    
    42-1283895(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer
Identification Number)
 110 N. Wacker Dr., Chicago, IL 60606
  (312) 960-5000
  N / A
  þ o
  þ o o
  o þ




---



##### 



GENERAL GROWTH PROPERTIES, INC.
INDEX
 PAGENUMBERPart I FINANCIAL INFORMATIONItem 1: Consolidated Financial Statements (Unaudited)Consolidated Balance Sheets as of June 30, 2007 and December 31, 2006
    
    
    3Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2007 and 2006
    
    
    4Consolidated Statements of Cash Flows for the six months ended June 30, 2007 and 2006
    
    
    5Notes to Consolidated Financial Statements
    
    
    7Note 1: Organization
    
    
    7Note 2: Intangibles
    
    
    9Note 3: Unconsolidated Real Estate Affiliates
    
    
    10Note 4: Mortgages, Notes and Loans Payable
    
    
    17Note 5: Income Taxes
    
    
    18Note 6: Stock-Based Compensation Plans
    
    
    19Note 7: Other Assets and Liabilities
    
    
    21Note 8: Commitments and Contingencies
    
    
    21Note 9: Recently Issued Accounting Pronouncements
    
    
    23Note 10: Segments
    
    
    23Item 2: Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    27Liquidity and Capital Resources
    
    
    36Item 3: Quantitative and Qualitative Disclosures about Market Risk
    
    
    38Item 4: Controls and Procedures
    
    
    38Part II OTHER INFORMATIONItem 1: Legal Proceedings
    
    
    38Item 1A: Risk Factors
    
    
    38Item 2: Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    39Item 3: Defaults Upon Senior Securities
    
    
    39Item 4: Submission of Matters to a Vote of Security Holders
    
    
    39Item 5: Other Information
    
    
    41Item 6: Exhibits
    
    
    41SIGNATURE
    
    
    42EXHIBIT INDEX
    
    
    43CertificationCertificationCertificationCertificationFinancial Statements
  2




---



##### Table of Contents



GENERAL
GROWTH PROPERTIES, INC.
 CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in thousands)
 June 30,
    
    
    December 31,2007
    
    
    2006AssetsInvestment in real estate:Land
    
    $
    2,946,676
    
    
    $
    2,952,477Buildings and equipment
    
    
    19,555,095
    
    
    
    19,379,386Less accumulated depreciation
    
    
    (3,070,028
    )
    
    
    (2,766,871
    )Developments in progress
    
    
    888,535
    
    
    
    673,900Net property
and equipment
    
    
    20,320,278
    
    
    
    20,238,892Investment in and loans to/from Unconsolidated Real Estate Affiliates
    
    
    1,657,103
    
    
    
    1,499,036Investment land and land held for development and sale
    
    
    1,711,291
    
    
    
    1,655,838Net
investment in real estate
    
    
    23,688,672
    
    
    
    23,393,766Cash and cash equivalents
    
    
    65,199
    
    
    
    97,139Accounts and notes receivable, net
    
    
    311,823
    
    
    
    328,890Goodwill
    
    
    400,882
    
    
    
    371,674Deferred expenses, net
    
    
    269,574
    
    
    
    252,190Prepaid expenses and other assets
    
    
    766,448
    
    
    
    797,786Total assets
    
    $
    25,502,598
    
    
    $
    25,241,445Liabilities and Stockholders EquityMortgages, notes and loans payable
    
    $
    21,223,153
    
    
    $
    20,521,967Investment in and loans to/from Unconsolidated Real Estate Affiliates
    
    
    138,668
    
    
    
    172,421Deferred tax liabilities
    
    
    913,331
    
    
    
    1,302,205Accounts payable and accrued expenses
    
    
    1,105,128
    
    
    
    1,050,192Total liabilities
    
    
    23,380,280
    
    
    
    23,046,785Minority interests:Preferred
    
    
    121,436
    
    
    
    182,828Common
    
    
    386,599
    
    
    
    347,753Total
minority interests
    
    
    508,035
    
    
    
    530,581Commitments and Contingencies
    
    
    
    
    
    
    Preferred Stock: $100 par value; 5,000,000 shares authorized; none
issued and outstanding
    
    
    
    
    
    
    Stockholders Equity:Common stock: $.01 par value; 875,000,000 shares authorized,
245,520,518 shares issued as of June 30, 2007
and 242,357,416 shares issued as of December 31, 2006
    
    
    2,455
    
    
    
    2,424Additional paid-in capital
    
    
    2,591,277
    
    
    
    2,533,898Retained earnings (accumulated deficit)
    
    
    (904,820
    )
    
    
    (868,391
    )Accumulated other comprehensive income
    
    
    21,019
    
    
    
    9,582Less common
stock in treasury, at cost, 1,806,900 shares as of June 30, 2007
and 290,787 shares as of December 31, 2006
    
    
    (95,648
    )
    
    
    (13,434
    )Total stockholders equity
    
    
    1,614,283
    
    
    
    1,664,079Total liabilities and stockholders equity
    
    $
    25,502,598
    
    
    $
    25,241,445
  3




---



##### Table of Contents



GENERAL
GROWTH PROPERTIES, INC.
 CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
(Dollars in thousands, except for per share amounts)
 Three
Months Ended 
June 30,
    
    

Six Months Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Revenues:Minimum rents
    
    $
    443,432
    
    
    $
    425,052
    
    
    $
    879,474
    
    
    $
    862,784Tenant recoveries
    
    
    195,403
    
    
    
    190,733
    
    
    
    394,858
    
    
    
    376,176Overage rents
    
    
    10,876
    
    
    
    8,603
    
    
    
    26,456
    
    
    
    22,829Land sales
    
    
    36,130
    
    
    
    33,035
    
    
    
    59,923
    
    
    
    170,255Management and other fees
    
    
    26,348
    
    
    
    24,650
    
    
    
    53,920
    
    
    
    53,362Other
    
    
    27,893
    
    
    
    27,736
    
    
    
    54,244
    
    
    
    53,022Total revenues
    
    
    740,082
    
    
    
    709,809
    
    
    
    1,468,875
    
    
    
    1,538,428Expenses:Real estate taxes
    
    
    55,089
    
    
    
    54,551
    
    
    
    111,949
    
    
    
    109,515Repairs and maintenance
    
    
    47,918
    
    
    
    48,762
    
    
    
    98,891
    
    
    
    95,817Marketing
    
    
    10,713
    
    
    
    11,639
    
    
    
    23,294
    
    
    
    23,669Other property operating costs
    
    
    97,609
    
    
    
    90,412
    
    
    
    197,645
    
    
    
    176,860Land sales operations
    
    
    29,542
    
    
    
    25,102
    
    
    
    49,686
    
    
    
    123,699Provision for doubtful accounts
    
    
    (1,701
    )
    
    
    7,106
    
    
    
    3,791
    
    
    
    13,319Property management and other costs
    
    
    56,447
    
    
    
    44,569
    
    
    
    109,589
    
    
    
    89,629General and administrative
    
    
    4,030
    
    
    
    3,848
    
    
    
    16,299
    
    
    
    9,007Depreciation and amortization
    
    
    163,289
    
    
    
    178,372
    
    
    
    338,408
    
    
    
    343,718Total expenses
    
    
    462,936
    
    
    
    464,361
    
    
    
    949,552
    
    
    
    985,233Operating income
    
    
    277,146
    
    
    
    245,448
    
    
    
    519,323
    
    
    
    553,195Interest income
    
    
    2,944
    
    
    
    1,469
    
    
    
    4,977
    
    
    
    4,690Interest expense
    
    
    (275,547
    )
    
    
    (278,611
    )
    
    
    (543,896
    )
    
    
    (557,404
    )Income (loss) before income taxes, minority interest
and equity in income of Unconsolidated Real Estate Affiliates
    
    
    4,543
    
    
    
    (31,694
    )
    
    
    (19,596
    )
    
    
    481Benefit (provision) for income taxes
    
    
    (17,647
    )
    
    
    (14,490
    )
    
    
    270,744
    
    
    
    (40,894
    )Minority interest
    
    
    (5,085
    )
    
    
    (638
    )
    
    
    (59,502
    )
    
    
    (11,862
    )Equity in income of Unconsolidated Real Estate Affiliates
    
    
    26,581
    
    
    
    21,009
    
    
    
    46,940
    
    
    
    49,476Net income (loss)
    
    $
    8,392
    
    
    $
    (25,813
    )
    
    $
    238,586
    
    
    $
    (2,799
    )Basic Earnings Per Share
    
    $
    0.03
    
    
    $
    (0.11
    )
    
    $
    0.98
    
    
    $
    (0.01
    )Diluted Earnings Per Share
    
    
    0.03
    
    
    
    (0.11
    )
    
    
    0.97
    
    
    
    (0.01
    )Comprehensive
Income (Loss), Net:Net income (loss)
    
    $
    8,392
    
    
    $
    (25,813
    )
    
    $
    238,586
    
    
    $
    (2,799
    )Other comprehensive income, net of minority interest:Net unrealized gains (losses) on financial instruments
    
    
    (14
    )
    
    
    50
    
    
    
    (1,082
    )
    
    
    1,336Accrued pension adjustment
    
    
    391
    
    
    
    (124
    )
    
    
    203
    
    
    
    (183
    )Foreign currency translation
    
    
    9,470
    
    
    
    1,102
    
    
    
    12,343
    
    
    
    4,155Unrealized gains (losses) on available-for-sale securities
    
    
    (32
    )
    
    
    113
    
    
    
    (27
    )
    
    
    205Total other comprehensive
income, net of minority
interest
    
    
    9,815
    
    
    
    1,141
    
    
    
    11,437
    
    
    
    5,513Comprehensive income (loss), net
    
    $
    18,207
    
    
    $
    (24,672
    )
    
    $
    250,023
    
    
    $
    2,714
  4




---



##### Table of Contents



GENERAL
GROWTH PROPERTIES, INC.
 CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
 Six Months Ended June 30,2007
    
    
    2006Cash Flows from Operating Activities:Net income (loss)
    
    $
    238,586
    
    
    $
    (2,799
    )Adjustments to reconcile net income (loss) to net cash provided by operating activities:Minority interests
    
    
    59,502
    
    
    
    11,862Equity in income of Unconsolidated Real Estate Affiliates
    
    
    (46,519
    )
    
    
    (49,303
    )Provision for doubtful accounts
    
    
    3,791
    
    
    
    13,319Distributions received from Unconsolidated Real Estate Affiliates
    
    
    36,225
    
    
    
    40,689Depreciation
    
    
    322,096
    
    
    
    331,053Amortization
    
    
    16,312
    
    
    
    12,665Amortization of debt market rate adjustment and other non-cash interest expense
    
    
    (7,354
    )
    
    
    (6,879
    )Participation expense pursuant to Contingent Stock Agreement
    
    
    11,736
    
    
    
    48,331Land development and acquisitions expenditures
    
    
    (84,001
    )
    
    
    (103,408
    )Cost of land sales
    
    
    21,031
    
    
    
    61,630Tax restructuring benefit
    
    
    (296,742
    )
    
    
    Straight-line rent amortization
    
    
    (17,755
    )
    
    
    (24,267
    )Amortization of intangibles other than in-place leases
    
    
    (13,342
    )
    
    
    (17,816
    )Net changes:Accounts and notes receivable
    
    
    15,303
    
    
    
    18,605Prepaid expenses and other assets
    
    
    22,174
    
    
    
    26,749Deferred expenses
    
    
    (14,410
    )
    
    
    (22,796
    )Accounts payable and accrued expenses and deferred tax liabilities
    
    
    (37,237
    )
    
    
    (14,558
    )Other, net
    
    
    8,421
    
    
    
    12,581Net cash provided by operating activities
    
    
    237,817
    
    
    
    335,658Cash Flows from Investing Activities:Acquisition/development of real estate and property additions/improvements
    
    
    (423,068
    )
    
    
    (276,342
    )Proceeds from sales of investment properties
    
    
    3,251
    
    
    
    16,054Increase in investments in Unconsolidated Real Estate Affiliates
    
    
    (169,777
    )
    
    
    (64,306
    )Distributions received from Unconsolidated Real Estate Affiliates in excess of income
    
    
    45,738
    
    
    
    117,548Loans to Unconsolidated Real Estate Affiliates, net
    
    
    (27,710
    )
    
    
    29,976Decrease in restricted cash
    
    
    (8,674
    )
    
    
    (14,081
    )Insurance recoveries
    
    
    2,507
    
    
    
    13,400Other, net
    
    
    2,782
    
    
    
    8,682Net cash used in investing activities
    
    
    (574,951
    )
    
    
    (169,069
    )Cash Flows from Financing Activities:Proceeds from issuance of mortgages, notes and loans payable
    
    
    2,079,700
    
    
    
    6,629,000Principal payments on mortgages, notes and loans payable
    
    
    (1,359,799
    )
    
    
    (6,489,164
    )Deferred financing costs
    
    
    (23,691
    )
    
    
    (39,923
    )Cash distributions paid to common stockholders
    
    
    (219,256
    )
    
    
    (196,949
    )Cash distributions paid to holders of Common Units
    
    
    (47,482
    )
    
    
    (43,490
    )Cash distributions paid to holders of perpetual and convertible preferred units
    
    
    (8,258
    )
    
    
    (8,724
    )Proceeds from issuance of common stock, including from common stock plans
    
    
    56,236
    
    
    
    17,901Redemption of preferred minority interests
    
    
    (60,000
    )
    
    
    Purchase of treasury stock
    
    
    (95,648
    )
    
    
    (53,363
    )Other, net
    
    
    (1,686
    )
    
    
    (4,217
    )Net cash provided by (used in) financing activities
    
    
    320,116
    
    
    
    (188,929
    )Effect of
exchange rate changes on cash
    
    
    (14,922
    )
    
    
    (5,048
    )Net change in cash and cash equivalents
    
    
    (31,940
    )
    
    
    (27,388
    )Cash and cash equivalents at beginning of period
    
    
    97,139
    
    
    
    102,791Cash and cash equivalents at end of period
    
    $
    65,199
    
    
    $
    75,403
  5




---



##### Table of Contents



GENERAL
GROWTH PROPERTIES, INC.
 CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(UNAUDITED)
(In thousands)
 Six Months EndedJune 30,2007
    
    2006Supplemental Disclosure of Cash Flow Information:Interest paid
    
    $
    575,587
    
    
    $
    579,044Interest capitalized
    
    
    39,251
    
    
    
    25,521Taxes paid
    
    
    62,349
    
    
    
    12,572Non-Cash Investing and Financing Activities:Common stock issued in exchange for Operating Partnership Units
    
    $
    7,234
    
    
    $
    3,088Common stock issued in exchange for convertible preferred units
    
    
    419
    
    
    
    3,833Common stock issued pursuant to Contingent Stock Agreement
    
    
    36,669
    
    
    
    35,349Acquisition of joint venture partner share of GGP Ivanhoe IV, Inc.:Total assets
    
    
    
    
    
    
    169,415Total
liabilities
    
    
    
    
    
    
    169,415
  6




---



##### Table of Contents



GENERAL
GROWTH PROPERTIES, INC.
 
 NOTE 1 ORGANIZATION
  General
   Basis of Presentation
   Straight-Line Rents Receivable
  Use of Estimates
  Reclassifications
  7




---



##### Table of Contents



GENERAL
GROWTH PROPERTIES, INC.
 Earnings Per Share (EPS)
  Three Months Ended June 30,2007
    
    
    2006Basic
    
    
    Diluted
    
    
    Basic
    
    
    Diluted(In thousands)Numerators:Net income (loss)
    
    $
    8,392
    
    
    $
    8,392
    
    
    
    (25,813
    )
    
    
    (25,813
    )Denominators:Weighted average number of common shares
outstanding  basic
    
    
    244,960
    
    
    
    244,960
    
    
    
    241,330
    
    
    
    241,330Effect of dilutive securities  stock options
    
    
    
    
    
    
    667
    
    
    
    
    
    
    
    Weighted average number of common shares
outstanding  diluted
    
    
    244,960
    
    
    
    245,627
    
    
    
    241,330
    
    
    
    241,330
 Six Months Ended June 30,2007
    
    
    2006Basic
    
    
    Diluted
    
    
    Basic
    
    
    Diluted(In thousands)Numerators:Net income (loss)
    
    $
    238,586
    
    
    $
    238,586
    
    
    
    (2,799
    )
    
    
    (2,799
    )Denominators:Weighted average number of common shares
outstanding  basic
    
    
    244,165
    
    
    
    244,165
    
    
    
    240,978
    
    
    
    240,978Effect of dilutive securities  stock options
    
    
    
    
    
    
    685
    
    
    
    
    
    
    
    Weighted average number of common shares
outstanding  diluted
    
    
    244,165
    
    
    
    244,850
    
    
    
    240,978
    
    
    
    240,978
  Transactions With Affiliates
  8




---



##### Table of Contents



GENERAL
GROWTH PROPERTIES, INC.
 
 NOTE 2     INTANGIBLES
  Accumulated
    
    NetGross Asset
    
    (Amortization)/
    
    Carrying(In thousands)
    
    (Liability)
    
    Accretion
    
    AmountAs of June 30, 2007Tenant leases:In-place value
    
    $
    669,231
    
    
    $
    (376,408
    )
    
    $
    292,823Above-market
    
    
    107,085
    
    
    
    (65,685
    )
    
    
    41,400Below-market
    
    
    (294,938
    )
    
    
    206,655
    
    
    
    (88,283
    )Ground leases:Above-market
    
    
    (16,968
    )
    
    
    1,243
    
    
    
    (15,725
    )Below-market
    
    
    293,435
    
    
    
    (15,947
    )
    
    
    277,488Real estate tax stabilization agreement
    
    
    91,879
    
    
    
    (10,463
    )
    
    
    81,416As of December 31, 2006Tenant leases:In-place value
    
    $
    667,492
    
    
    $
    (314,270
    )
    
    $
    353,222Above-market
    
    
    107,157
    
    
    
    (53,176
    )
    
    
    53,981Below-market
    
    
    (294,052
    )
    
    
    176,089
    
    
    
    (117,963
    )Ground leases:Above-market
    
    
    (16,968
    )
    
    
    1,007
    
    
    
    (15,961
    )Below-market
    
    
    293,435
    
    
    
    (12,919
    )
    
    
    280,516Real estate tax stabilization agreement
    
    
    91,879
    
    
    
    (8,501
    )
    
    
    83,378
     9




---



##### Table of Contents



GENERAL
GROWTH PROPERTIES, INC.
 
 NOTE 3 UNCONSOLIDATED REAL ESTATE AFFILIATES
 Condensed Combined Financial Information of Unconsolidated Real Estate Affiliates
 June 30,
    
    
    December 31,(In thousands)
    
    2007
    
    
    2006Condensed Combined Balance Sheets  Unconsolidated Real Estate AffiliatesAssets:Land
    
    $
    1,005,996
    
    
    $
    988,018Buildings and equipment
    
    
    8,304,404
    
    
    
    8,158,030Less accumulated depreciation
    
    
    (1,687,705
    )
    
    
    (1,590,812
    )Developments in progress
    
    
    770,373
    
    
    
    551,464Net property and equipment
    
    
    8,393,068
    
    
    
    8,106,700Investment in unconsolidated joint ventures
    
    
    11,335
    
    
    
    7,424Investment land and land held for development and sale
    
    
    289,497
    
    
    
    290,273Net investment in real estate
    
    
    8,693,900
    
    
    
    8,404,397Cash and cash equivalents
    
    
    184,850
    
    
    
    180,203Accounts and notes receivable, net
    
    
    145,539
    
    
    
    165,049Deferred expenses, net
    
    
    153,898
    
    
    
    155,051Prepaid expenses and other assets
    
    
    555,537
    
    
    
    509,324Total assets
    
    $
    9,733,724
    
    
    $
    9,414,024Liabilities and Owners Equity:Mortgages, notes and loans payable
    
    $
    7,727,773
    
    
    $
    7,752,889Investment in unconsolidated joint ventures
    
    
    3,147
    
    
    
    Accounts payable and accrued expenses
    
    
    525,140
    
    
    
    558,974Owners equity
    
    
    1,477,664
    
    
    
    1,102,161Total liabilities and owners equity
    
    $
    9,733,724
    
    
    $
    9,414,024Investment In and Loans To/From Unconsolidated Real Estate Affiliates, NetOwners equity
    
    $
    1,477,664
    
    
    $
    1,102,161Less joint venture partners equity
    
    
    (783,351
    )
    
    
    (600,412
    )Capital or basis differences and loans
    
    
    824,122
    
    
    
    824,866Investment in and loans to/fromUnconsolidated Real Estate Affiliates, net
    
    $
    1,518,435
    
    
    $
    1,326,615
 10




---



##### Table of Contents



GENERAL
GROWTH PROPERTIES, INC.
 Three Months Ended June 30,
    
    
    Six Months Ended June 30,(In thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Condensed Combined Statements of Income  Unconsolidated Real Estate AffiliatesRevenues:Minimum rents
    
    $
    221,433
    
    
    $
    206,575
    
    
    $
    442,313
    
    
    $
    418,175Tenant recoveries
    
    
    96,159
    
    
    
    92,443
    
    
    
    193,521
    
    
    
    186,382Overage rents
    
    
    3,061
    
    
    
    2,538
    
    
    
    7,858
    
    
    
    7,236Land sales
    
    
    43,164
    
    
    
    38,395
    
    
    
    68,613
    
    
    
    73,726Management and other fees
    
    
    8,521
    
    
    
    1,964
    
    
    
    17,002
    
    
    
    1,964Other
    
    
    45,453
    
    
    
    39,499
    
    
    
    86,941
    
    
    
    82,040Total revenues
    
    
    417,791
    
    
    
    381,414
    
    
    
    816,248
    
    
    
    769,523Expenses:Real estate taxes
    
    
    29,397
    
    
    
    29,702
    
    
    
    60,061
    
    
    
    59,847Repairs and maintenance
    
    
    21,353
    
    
    
    20,894
    
    
    
    43,898
    
    
    
    42,217Marketing
    
    
    5,730
    
    
    
    5,795
    
    
    
    12,511
    
    
    
    12,917Other property operating costs
    
    
    80,410
    
    
    
    76,355
    
    
    
    159,118
    
    
    
    149,736Land sales operations
    
    
    25,243
    
    
    
    31,769
    
    
    
    36,120
    
    
    
    50,686Provision for doubtful accounts
    
    
    816
    
    
    
    1,697
    
    
    
    2,608
    
    
    
    1,871Property management and other costs
    
    
    23,744
    
    
    
    16,727
    
    
    
    48,024
    
    
    
    32,882General and administrative
    
    
    2,846
    
    
    
    917
    
    
    
    3,115
    
    
    
    2,861Depreciation and amortization
    
    
    69,699
    
    
    
    63,680
    
    
    
    142,445
    
    
    
    129,443Total expenses
    
    
    259,238
    
    
    
    247,536
    
    
    
    507,900
    
    
    
    482,460Operating income
    
    
    158,553
    
    
    
    133,878
    
    
    
    308,348
    
    
    
    287,063Interest income
    
    
    9,493
    
    
    
    5,832
    
    
    
    16,533
    
    
    
    11,834Interest expense
    
    
    (100,545
    )
    
    
    (87,348
    )
    
    
    (200,338
    )
    
    
    (168,384
    )Provision for income taxes
    
    
    (6,048
    )
    
    
    (483
    )
    
    
    (6,758
    )
    
    
    (807
    )Minority interest
    
    
    (271
    )
    
    
    
    
    
    
    (306
    )
    
    
    Equity in income of unconsolidated joint ventures
    
    
    1,364
    
    
    
    1,724
    
    
    
    3,309
    
    
    
    3,152Net income
    
    $
    62,546
    
    
    $
    53,603
    
    
    $
    120,788
    
    
    $
    132,858Equity In Income of Unconsolidated Real Estate AffiliatesNet income
    
    $
    62,546
    
    
    $
    53,603
    
    
    $
    120,788
    
    
    $
    132,858Joint venture partners share of income
    
    
    (33,359
    )
    
    
    (28,961
    )
    
    
    (64,414
    )
    
    
    (63,014
    )Amortization of capital or basis differences
    
    
    (156
    )
    
    
    (3,633
    )
    
    
    (4,709
    )
    
    
    (20,368
    )Elimination of Unconsolidated Real Estate Affiliates loan interest
    
    
    (2,450
    )
    
    
    
    
    
    
    (4,725
    )
    
    
    Equity in income of Unconsolidated Real Estate Affiliates
    
    $
    26,581
    
    
    $
    21,009
    
    
    $
    46,940
    
    
    $
    49,476
 Condensed Financial Information of Individually Significant Unconsolidated Real Estate
Affiliates
   11




---



##### Table of Contents



GENERAL
GROWTH PROPERTIES, INC.
  GGP/Homart IJune 30,
    
    
    December 31,(In thousands)
    
    2007
    
    
    2006Assets:Land
    
    $
    158,589
    
    
    $
    157,708Buildings and equipment
    
    
    1,898,575
    
    
    
    1,879,992Less accumulated depreciation
    
    
    (549,107
    )
    
    
    (517,187
    )Developments in progress
    
    
    16,954
    
    
    
    13,216Investment in unconsolidated joint ventures
    
    
    10,671
    
    
    
    7,424Net investment in real estate
    
    
    1,535,682
    
    
    
    1,541,153Cash and cash equivalents
    
    
    21,151
    
    
    
    15,871Accounts receivable, net
    
    
    41,963
    
    
    
    48,498Deferred expenses, net
    
    
    43,771
    
    
    
    44,773Prepaid expenses and other assets
    
    
    165,319
    
    
    
    174,854Total assets
    
    $
    1,807,886
    
    
    $
    1,825,149Liabilities and Owners Equity:Mortgages, notes and loans payable
    
    $
    2,028,641
    
    
    $
    2,041,796Investment in unconsolidated joint ventures
    
    
    3,147
    
    
    
    Accounts payable and accrued expenses
    
    
    52,289
    
    
    
    58,408Owners equity (deficit)
    
    
    (276,191
    )
    
    
    (275,055
    )Total liabilities and owners equity
    
    $
    1,807,886
    
    
    $
    1,825,149
 12




---



##### Table of Contents



GENERAL
GROWTH PROPERTIES, INC.
 GGP/Homart I
    
    
    GGP/Homart IThree Months Ended June 30,
    
    
    Six Months Ended June 30,(In thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Revenues:Minimum rents
    
    $
    58,724
    
    
    $
    57,012
    
    
    $
    117,190
    
    
    $
    115,583Tenant recoveries
    
    
    25,578
    
    
    
    23,666
    
    
    
    51,426
    
    
    
    48,232Overage rents
    
    
    339
    
    
    
    280
    
    
    
    1,851
    
    
    
    2,016Other
    
    
    2,468
    
    
    
    2,369
    
    
    
    4,842
    
    
    
    4,608Total revenues
    
    
    87,109
    
    
    
    83,327
    
    
    
    175,309
    
    
    
    170,439Expenses:Real estate taxes
    
    
    7,587
    
    
    
    7,758
    
    
    
    15,491
    
    
    
    15,656Repairs and maintenance
    
    
    6,156
    
    
    
    6,108
    
    
    
    12,762
    
    
    
    12,607Marketing
    
    
    1,697
    
    
    
    1,728
    
    
    
    3,688
    
    
    
    4,000Other property operating costs
    
    
    11,228
    
    
    
    10,712
    
    
    
    21,434
    
    
    
    21,063Provision for doubtful accounts
    
    
    131
    
    
    
    381
    
    
    
    210
    
    
    
    187Property management and other costs
    
    
    5,606
    
    
    
    5,453
    
    
    
    11,449
    
    
    
    10,994General and administrative
    
    
    121
    
    
    
    4
    
    
    
    212
    
    
    
    175Depreciation and amortization
    
    
    17,796
    
    
    
    17,967
    
    
    
    36,780
    
    
    
    35,885Total expenses
    
    
    50,322
    
    
    
    50,111
    
    
    
    102,026
    
    
    
    100,567Operating income
    
    
    36,787
    
    
    
    33,216
    
    
    
    73,283
    
    
    
    69,872Interest income
    
    
    4,682
    
    
    
    2,772
    
    
    
    9,376
    
    
    
    4,858Interest expense
    
    
    (28,067
    )
    
    
    (22,931
    )
    
    
    (56,042
    )
    
    
    (44,580
    )Provision for income taxes
    
    
    (412
    )
    
    
    (101
    )
    
    
    (479
    )
    
    
    (133
    )Equity in income of unconsolidated
joint ventures
    
    
    1,364
    
    
    
    1,724
    
    
    
    3,309
    
    
    
    3,152Net income
    
    $
    14,354
    
    
    $
    14,680
    
    
    $
    29,447
    
    
    $
    33,169
 13




---



##### Table of Contents



GENERAL
GROWTH PROPERTIES, INC.
 GGP/Homart IIJune 30,
    
    
    December 31,(In thousands)
    
    2007
    
    
    2006Assets:Land
    
    $
    224,158
    
    
    $
    224,158Buildings and equipment
    
    
    2,362,034
    
    
    
    2,261,123Less accumulated depreciation
    
    
    (361,709
    )
    
    
    (326,340
    )Developments in progress
    
    
    308,390
    
    
    
    286,396Net investment in real estate
    
    
    2,532,873
    
    
    
    2,445,337Cash and cash equivalents
    
    
    10,276
    
    
    
    6,289Accounts receivable, net
    
    
    34,610
    
    
    
    35,506Deferred expenses, net
    
    
    59,314
    
    
    
    58,712Prepaid expenses and other assets
    
    
    41,411
    
    
    
    36,656Total assets
    
    $
    2,678,484
    
    
    $
    2,582,500Liabilities and Owners Equity:Mortgages, notes and loans payable
    
    $
    2,263,186
    
    
    $
    2,284,763Accounts payable and accrued expenses
    
    
    122,371
    
    
    
    146,781Owners equity
    
    
    292,927
    
    
    
    150,956Total liabilities and owners equity
    
    $
    2,678,484
    
    
    $
    2,582,500
 GGP/Homart II
    
    
    GGP/Homart IIThree Months Ended June 30,
    
    
    Six Months Ended June 30,(In thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Revenues:Minimum rents
    
    $
    53,379
    
    
    $
    48,136
    
    
    $
    106,611
    
    
    $
    100,670Tenant recoveries
    
    
    24,454
    
    
    
    22,642
    
    
    
    49,202
    
    
    
    46,233Overage rents
    
    
    603
    
    
    
    523
    
    
    
    1,870
    
    
    
    1,592Other
    
    
    2,002
    
    
    
    1,646
    
    
    
    3,965
    
    
    
    3,648Total revenues
    
    
    80,438
    
    
    
    72,947
    
    
    
    161,648
    
    
    
    152,143Expenses:Real estate taxes
    
    
    6,886
    
    
    
    7,471
    
    
    
    14,966
    
    
    
    14,919Repairs and maintenance
    
    
    4,917
    
    
    
    4,485
    
    
    
    9,811
    
    
    
    8,968Marketing
    
    
    1,521
    
    
    
    1,757
    
    
    
    3,469
    
    
    
    3,796Other property operating costs
    
    
    9,312
    
    
    
    8,961
    
    
    
    19,199
    
    
    
    17,420Provision for doubtful accounts
    
    
    46
    
    
    
    258
    
    
    
    666
    
    
    
    338Property management and other costs
    
    
    5,115
    
    
    
    4,591
    
    
    
    10,262
    
    
    
    9,385General and administrative
    
    
    2,625
    
    
    
    849
    
    
    
    2,757
    
    
    
    2,588Depreciation and amortization
    
    
    19,912
    
    
    
    16,128
    
    
    
    39,066
    
    
    
    31,638Total expenses
    
    
    50,334
    
    
    
    44,500
    
    
    
    100,196
    
    
    
    89,052Operating income
    
    
    30,104
    
    
    
    28,447
    
    
    
    61,452
    
    
    
    63,091Interest income
    
    
    2,139
    
    
    
    1,971
    
    
    
    4,181
    
    
    
    4,843Interest expense
    
    
    (27,764
    )
    
    
    (20,721
    )
    
    
    (55,452
    )
    
    
    (40,833
    )Provision for income taxes
    
    
    (960
    )
    
    
    (49
    )
    
    
    (1,534
    )
    
    
    (127
    )Net income
    
    $
    3,519
    
    
    $
    9,648
    
    
    $
    8,647
    
    
    $
    26,974
 14




---



##### Table of Contents



GENERAL
GROWTH PROPERTIES, INC.
 GGP/TeachersJune 30,
    
    
    December 31,(In thousands)
    
    2007
    
    
    2006Assets:Land
    
    $
    176,761
    
    
    $
    176,761Buildings and equipment
    
    
    917,691
    
    
    
    908,786Less accumulated depreciation
    
    
    (102,259
    )
    
    
    (89,323
    )Developments in progress
    
    
    126,224
    
    
    
    76,991Net investment in real estate
    
    
    1,118,417
    
    
    
    1,073,215Cash and cash equivalents
    
    
    17,489
    
    
    
    19,029Accounts receivable, net
    
    
    9,648
    
    
    
    11,347Deferred expenses, net
    
    
    16,240
    
    
    
    15,280Prepaid expenses and other assets
    
    
    12,928
    
    
    
    13,980Total assets
    
    $
    1,174,722
    
    
    $
    1,132,851Liabilities and Owners Equity:Mortgages, notes and loans payable
    
    $
    929,095
    
    
    $
    933,375Accounts payable and accrued expenses
    
    
    81,742
    
    
    
    88,188Owners equity
    
    
    163,885
    
    
    
    111,288Total liabilities and owners equity
    
    $
    1,174,722
    
    
    $
    1,132,851
 GGP/Teachers
    
    
    GGP/TeachersThree Months Ended June 30,
    
    
    Six Months Ended June 30,(In thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Revenues:Minimum rents
    
    $
    26,572
    
    
    $
    26,652
    
    
    $
    54,379
    
    
    $
    52,303Tenant recoveries
    
    
    11,289
    
    
    
    11,857
    
    
    
    22,542
    
    
    
    22,705Overage rents
    
    
    677
    
    
    
    533
    
    
    
    868
    
    
    
    1,127Other
    
    
    602
    
    
    
    559
    
    
    
    1,087
    
    
    
    1,077Total revenues
    
    
    39,140
    
    
    
    39,601
    
    
    
    78,876
    
    
    
    77,212Expenses:Real estate taxes
    
    
    2,699
    
    
    
    2,945
    
    
    
    5,322
    
    
    
    5,859Repairs and maintenance
    
    
    2,186
    
    
    
    1,924
    
    
    
    4,254
    
    
    
    3,817Marketing
    
    
    917
    
    
    
    843
    
    
    
    1,843
    
    
    
    1,881Other property operating costs
    
    
    4,788
    
    
    
    4,491
    
    
    
    9,551
    
    
    
    8,981Provision for doubtful accounts
    
    
    194
    
    
    
    336
    
    
    
    406
    
    
    
    228Property management and other costs
    
    
    2,304
    
    
    
    2,178
    
    
    
    4,528
    
    
    
    4,342General and administrative
    
    
    70
    
    
    
    50
    
    
    
    109
    
    
    
    84Depreciation and amortization
    
    
    6,955
    
    
    
    6,298
    
    
    
    14,218
    
    
    
    13,758Total expenses
    
    
    20,113
    
    
    
    19,065
    
    
    
    40,231
    
    
    
    38,950Operating income
    
    
    19,027
    
    
    
    20,536
    
    
    
    38,645
    
    
    
    38,262Interest income
    
    
    178
    
    
    
    243
    
    
    
    431
    
    
    
    428Interest expense
    
    
    (11,605
    )
    
    
    (10,592
    )
    
    
    (23,307
    )
    
    
    (20,979
    )Provision for income taxes
    
    
    (139
    )
    
    
    (226
    )
    
    
    (149
    )
    
    
    (405
    )Net income
    
    $
    7,461
    
    
    $
    9,961
    
    
    $
    15,620
    
    
    $
    17,306
 15




---



##### Table of Contents



GENERAL
GROWTH PROPERTIES, INC.
 The Woodlands PartnershipJune 30,
    
    
    December 31,(In thousands)
    
    2007
    
    
    2006Assets:Land
    
    $
    12,349
    
    
    $
    13,828Buildings and equipment
    
    
    78,561
    
    
    
    91,485Less accumulated depreciation
    
    
    (17,927
    )
    
    
    (19,271
    )Developments in progress
    
    
    28,288
    
    
    
    6,939Investment land and land held for development and sale
    
    
    289,497
    
    
    
    290,273Net investment in real estate
    
    
    390,768
    
    
    
    383,254Cash and cash equivalents
    
    
    4,385
    
    
    
    15,219Deferred expenses, net
    
    
    2,504
    
    
    
    2,782Prepaid expenses and other assets
    
    
    108,626
    
    
    
    97,978Total assets
    
    $
    506,283
    
    
    $
    499,233Liabilities and Owners Equity:Mortgages, notes and loans payable
    
    $
    319,090
    
    
    $
    321,724Accounts payable and accrued expenses
    
    
    63,455
    
    
    
    58,805Owners equity
    
    
    123,738
    
    
    
    118,704Total liabilities and owners equity
    
    $
    506,283
    
    
    $
    499,233
 The Woodlands Partnership
    
    
    The Woodlands PartnershipThree Months Ended June 30,
    
    
    Six Months Ended June 30,(In thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Revenues:Minimum rents
    
    $
    131
    
    
    $
    483
    
    
    $
    451
    
    
    $
    719Land sales
    
    
    43,164
    
    
    
    37,145
    
    
    
    68,613
    
    
    
    72,476Other
    
    
    1,343
    
    
    
    9,547
    
    
    
    11,266
    
    
    
    17,626Total revenues
    
    
    44,638
    
    
    
    47,175
    
    
    
    80,330
    
    
    
    90,821Expenses:Real estate taxes
    
    
    47
    
    
    
    144
    
    
    
    104
    
    
    
    189Repairs and maintenance
    
    
    46
    
    
    
    105
    
    
    
    185
    
    
    
    132Other property operating costs
    
    
    10,246
    
    
    
    5,316
    
    
    
    21,679
    
    
    
    13,484Land sales operations
    
    
    25,243
    
    
    
    31,239
    
    
    
    36,120
    
    
    
    50,156Depreciation and amortization
    
    
    977
    
    
    
    881
    
    
    
    2,047
    
    
    
    2,283Total expenses
    
    
    36,559
    
    
    
    37,685
    
    
    
    60,135
    
    
    
    66,244Operating income
    
    
    8,079
    
    
    
    9,490
    
    
    
    20,195
    
    
    
    24,577Interest income
    
    
    114
    
    
    
    70
    
    
    
    240
    
    
    
    141Interest expense
    
    
    (2,442
    )
    
    
    (4,165
    )
    
    
    (3,909
    )
    
    
    (4,702
    )Provision for income taxes
    
    
    (390
    )
    
    
    
    
    
    
    (390
    )
    
    
    Net income
    
    $
    5,361
    
    
    $
    5,395
    
    
    $
    16,136
    
    
    $
    20,016
 16




---



##### Table of Contents



GENERAL
GROWTH PROPERTIES, INC.
 
 NOTE 4 MORTGAGES, NOTES AND LOANS PAYABLE
  June 30,
    
    
    December 31,(In thousands)
    
    2007
    
    
    2006Fixed-rate debt:Commercial mortgage-backed securities
    
    $
    868,765
    
    
    $
    868,765Other collateralized mortgages, notes and loans payable
    
    
    13,775,953
    
    
    
    13,762,381Corporate and other unsecured term loans
    
    
    3,895,648
    
    
    
    2,386,334Total fixed-rate debt
    
    
    18,540,366
    
    
    
    17,017,480Variable-rate debt:Other collateralized mortgages, notes and loans payable
    
    
    287,387
    
    
    
    388,287Credit facilities
    
    
    201,700
    
    
    
    60,000Corporate and other unsecured term loans
    
    
    2,193,700
    
    
    
    3,056,200Total variable-rate debt
    
    
    2,682,787
    
    
    
    3,504,487$
    21,223,153
    
    
    $
    20,521,967
   Exchangeable Senior Notes
       17




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
  Interest Rate Swaps
  2006 Credit
    
    PropertyAgreement
    
    SpecificTotal notional amount (in millions)
    
    $
    200.0
    
    
    $
    195.0Average fixed pay rate
    
    
    5.11
    %
    
    
    4.78
    %Average variable receive rate
    
    LIBOR
    
    LIBOR
  Letters of Credit and Surety Bonds
  
 NOTE 5 INCOME TAXES
      18




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
  
 NOTE 6 STOCK-BASED COMPENSATION PLANS
 Incentive Stock Plans
  2007
    
    
    2006Weighted
    
    
    
    
    
    
    WeightedAverage
    
    
    
    
    
    
    AverageShares
    
    
    Exercise Price
    
    
    Shares
    
    
    Exercise PriceStock Options Outstanding at January 1
    
    
    3,167,348
    
    
    $
    38.41
    
    
    
    2,546,174
    
    
    $
    29.57Granted
    
    
    1,205,000
    
    
    
    65.81
    
    
    
    1,270,000
    
    
    
    49.98Exercised
    
    
    (1,318,748
    )
    
    
    33.81
    
    
    
    (453,226
    )
    
    
    27.03Exchanged for restricted stock
    
    
    
    
    
    
    
    
    
    
    (30,000
    )
    
    
    47.26Forfeited
    
    
    
    
    
    
    
    
    
    
    (145,000
    )
    
    
    43.10Expired
    
    
    
    
    
    
    
    
    
    
    (600
    )
    
    
    9.90Stock Options Outstanding at June 30
    
    
    3,053,600
    
    
    $
    51.20
    
    
    
    3,187,348
    
    
    $
    37.28
 Stock Options Outstanding
    
    
    Stock Options ExercisableWeighted
    
    
    
    
    
    
    
    
    
    
    WeightedAverage
    
    
    Weighted
    
    
    
    
    
    
    Average
    
    
    WeightedRemaining
    
    
    Average
    
    
    
    
    
    
    Remaining
    
    
    AverageContractual
    
    
    Exercise
    
    
    
    
    
    
    Contractual
    
    
    ExerciseRange of Exercise Prices
    
    Shares
    
    
    Term (in years)
    
    
    Price
    
    
    Shares
    
    
    Term (in years)
    
    
    PriceIn-the-money stock options$0 - $6.58
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $6.58 - $13.16
    
    
    5,100
    
    
    
    2.8
    
    
    $
    9.99
    
    
    
    5,100
    
    
    
    2.8
    
    
    $
    9.99$13.16 - $19.74
    
    
    73,000
    
    
    
    5.1
    
    
    
    15.41
    
    
    
    73,000
    
    
    
    5.1
    
    
    
    15.41$19.74 - $26.32
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $26.32 - $32.91
    
    
    197,000
    
    
    
    1.6
    
    
    
    30.94
    
    
    
    145,000
    
    
    
    1.6
    
    
    
    30.94$32.91 - $39.49
    
    
    571,000
    
    
    
    2.7
    
    
    
    35.71
    
    
    
    351,000
    
    
    
    2.7
    
    
    
    35.57$39.49 - $46.07
    
    
    50,000
    
    
    
    3.3
    
    
    
    44.59
    
    
    
    10,000
    
    
    
    3.3
    
    
    
    44.59$46.07 - $52.65
    
    
    952,500
    
    
    
    3.7
    
    
    
    49.52
    
    
    
    522,500
    
    
    
    3.5
    
    
    
    50.01Anti -dilutive stock options$65.81
    
    
    1,205,000
    
    
    
    4.7
    
    
    
    65.81
    
    
    
    201,000
    
    
    
    4.7
    
    
    
    65.81Total
    
    
    3,053,600
    
    
    
    3.4
    
    
    $
    51.20
    
    
    
    1,307,600
    
    
    
    3.4
    
    
    $
    44.32Intrinsic value (in thousands)
    
    $
    20,825
    
    
    
    
    
    
    
    
    
    
    $
    13,871
    19




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 Restricted Stock
  2007
    
    
    2006Weighted
    
    
    
    
    
    
    WeightedAverage
    
    
    
    
    
    
    AverageGrant Date
    
    
    
    
    
    
    Grant DateShares
    
    
    Fair Value
    
    
    Shares
    
    
    Fair ValueNonvested restricted stock grants outstanding as of January 1
    
    
    72,666
    
    
    $
    47.62
    
    
    
    15,000
    
    
    $
    16.77Granted
    
    
    96,500
    
    
    
    65.29
    
    
    
    99,000
    
    
    
    47.91Vested
    
    
    (32,670
    )
    
    
    49.11
    
    
    
    (41,334
    )
    
    
    37.13Nonvested restricted stock grants outstanding as of June 30
    
    
    136,496
    
    
    $
    59.75
    
    
    
    72,666
    
    
    $
    47.62Intrinsic value (in thousands)
    
    $
    7,227
    
    
    
    
    
    
    $
    3,274
  Threshold-Vesting Stock Options
  TSO Grant Year2007
    
    
    2006
    
    
    2005Granted
    
    
    1,400,000
    
    
    
    1,400,000
    
    
    
    1,000,000Forfeited
    
    
    (35,048
    )
    
    
    (118,936
    )
    
    
    (119,666
    )Vested and exercised
    
    
    
    
    
    
    
    
    
    
    (880,334
    )TSOs outstanding at June 30, 2007
    
    
    1,364,952
    
    
    
    1,281,064
    
    
    
    Intrinsic value (in thousands)
    
    $
    
    
    
    $
    3,177
    
    
    $
    Exercise price
    
    $
    65.81
    
    
    $
    50.47
    
    
    $
    35.41Threshold price
    
    
    92.30
    
    
    
    70.79
    
    
    
    49.66Fair value of options on grant date
    
    
    9.54
    
    
    
    6.51
    
    
    
    3.81Remaining contractual term (in years)
    
    
    4.7
    
    
    
    3.7
    
    
    
    
  Other Required Disclosures
  2007
    
    2006Risk-free interest rate
    
    
    4.70
    %
    
    
    4.43
    %Dividend yield
    
    
    4.00
    
    
    
    4.00Expected volatility
    
    
    24.72
    
    
    
    22.94Expected life (in years)
    
    
    3.0-3.5
    
    
    
    2.5-3.5
   20




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
  
 NOTE 7 OTHER ASSETS AND LIABILITIES
  June 30,
    
    
    December 31,(In thousands)
    
    2007
    
    
    2006Below-market ground leases
    
    $
    277,488
    
    
    $
    280,516Receivables  finance leases and bonds
    
    
    100,315
    
    
    
    118,459Security and escrow deposits
    
    
    84,360
    
    
    
    76,834Real estate tax stabilization agreement
    
    
    81,416
    
    
    
    83,378Special Improvement District receivable
    
    
    59,146
    
    
    
    64,819Above-market tenant leases
    
    
    41,400
    
    
    
    53,981Prepaid expenses
    
    
    28,672
    
    
    
    37,528Insurance recovery receivable
    
    
    25,451
    *
    
    
    14,952Funded defined contribution plan assets
    
    
    14,994
    
    
    
    17,119Other
    
    
    53,206
    
    
    
    50,200$
    766,448
    
    
    $
    797,786
 
 *
    
    Includes $13.5 million related to insurance settlement (Note 8).  June 30,
    
    
    December 31,(In thousands)
    
    2007
    
    
    2006Construction payables
    
    $
    174,919
    
    
    $
    188,038Accounts payable and accrued expenses
    
    
    158,932
    
    
    
    200,936Unrecognized tax benefits
    
    
    153,342
    
    
    
    Accrued interest
    
    
    117,101
    
    
    
    102,870Below-market tenant leases
    
    
    88,283
    
    
    
    117,963Accrued real estate taxes
    
    
    76,165
    
    
    
    71,816Deferred gains/income
    
    
    64,635
    
    
    
    56,414Hughes participation payable
    
    
    65,860
    
    
    
    90,793Accrued payroll and other employee liabilities
    
    
    53,058
    
    
    
    58,372Tenant and other deposits
    
    
    33,204
    
    
    
    32,887Above-market ground leases
    
    
    15,725
    
    
    
    15,961Capital lease obligations
    
    
    14,698
    
    
    
    14,967Funded defined contribution plan liabilities
    
    
    14,994
    
    
    
    17,119Other
    
    
    74,212
    
    
    
    82,056$
    1,105,128
    
    
    $
    1,050,192
 
 NOTE 8 COMMITMENTS AND CONTINGENCIES
   21




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
    Contingent Stock Agreement
    Hurricane Damages
     22




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
  
 NOTE 9 RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
     
 NOTE 10 SEGMENTS
  23




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 
    
    Retail and Other  includes the operation, development and management of retail and
other rental property, primarily shopping centers
    
    Master Planned Communities  includes the development and sale of land, primarily in
large-scale, long-term community development projects in and around Columbia, Maryland;
Summerlin, Nevada; and Houston, Texas
    24




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
  Three Months Ended June 30, 2007Consolidated
    
    
    Unconsolidated
    
    
    SegmentProperties
    
    
    Properties
    
    
    Basis(In thousands)Retail and OtherProperty revenues:Minimum rents
    
    $
    443,432
    
    
    $
    112,053
    
    
    $
    555,485Tenant recoveries
    
    
    195,403
    
    
    
    47,684
    
    
    
    243,087Overage rents
    
    
    10,876
    
    
    
    1,467
    
    
    
    12,343Other, including minority interest
    
    
    24,897
    
    
    
    23,197
    
    
    
    48,094Total property revenues
    
    
    674,608
    
    
    
    184,401
    
    
    
    859,009Property operating expenses:Real estate taxes
    
    
    55,089
    
    
    
    14,392
    
    
    
    69,481Repairs and maintenance
    
    
    47,918
    
    
    
    10,640
    
    
    
    58,558Marketing
    
    
    10,713
    
    
    
    2,874
    
    
    
    13,587Other property operating costs
    
    
    97,609
    
    
    
    40,796
    
    
    
    138,405Provision for doubtful accounts
    
    
    (1,701
    )
    
    
    397
    
    
    
    (1,304
    )Total property operating expenses
    
    
    209,628
    
    
    
    69,099
    
    
    
    278,727Retail and other net operating income
    
    
    464,980
    
    
    
    115,302
    
    
    
    580,282Master Planned CommunitiesLand sales
    
    
    36,130
    
    
    
    22,661
    
    
    
    58,791Land sales operations
    
    
    (29,542
    )
    
    
    (14,766
    )
    
    
    (44,308
    )Master Planned Communities net operating income
    
    
    6,588
    
    
    
    7,895
    
    
    
    14,483Real estate property net operating income
    
    $
    471,568
    
    
    $
    123,197
    
    
    $
    594,765
 Three Months Ended June 30, 2006Consolidated
    
    
    Unconsolidated
    
    
    Segment(In thousands)
    
    Properties
    
    
    Properties
    
    
    BasisRetail and OtherProperty revenues:Minimum rents
    
    $
    425,052
    
    
    $
    103,691
    
    
    $
    528,743Tenant recoveries
    
    
    190,733
    
    
    
    45,886
    
    
    
    236,619Overage rents
    
    
    8,603
    
    
    
    1,387
    
    
    
    9,990Other, including minority interest
    
    
    23,282
    
    
    
    19,065
    
    
    
    42,347Total property revenues
    
    
    647,670
    
    
    
    170,029
    
    
    
    817,699Property operating expenses:Real estate taxes
    
    
    54,551
    
    
    
    14,643
    
    
    
    69,194Repairs and maintenance
    
    
    48,762
    
    
    
    10,441
    
    
    
    59,203Marketing
    
    
    11,639
    
    
    
    2,958
    
    
    
    14,597Other property operating costs
    
    
    90,412
    
    
    
    34,509
    
    
    
    124,921Provision for doubtful accounts
    
    
    7,106
    
    
    
    817
    
    
    
    7,923Total property operating expenses
    
    
    212,470
    
    
    
    63,368
    
    
    
    275,838Retail and other net operating income
    
    
    435,200
    
    
    
    106,661
    
    
    
    541,861Master Planned CommunitiesLand sales
    
    
    33,035
    
    
    
    20,250
    
    
    
    53,285Land sales operations
    
    
    (25,102
    )
    
    
    (15,531
    )
    
    
    (40,633
    )Master Planned Communities net operating income
    
    
    7,933
    
    
    
    4,719
    
    
    
    12,652Real estate property net operating income
    
    $
    443,133
    
    
    $
    111,380
    
    
    $
    554,513
 25




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 Six Months Ended June 30, 2007Consolidated
    
    
    Unconsolidated
    
    
    Segment(In thousands)
    
    Properties
    
    
    Properties
    
    
    BasisRetail and OtherProperty revenues:Minimum rents
    
    $
    879,474
    
    
    $
    221,219
    
    
    $
    1,100,693Tenant recoveries
    
    
    394,858
    
    
    
    95,944
    
    
    
    490,802Overage rents
    
    
    26,456
    
    
    
    3,934
    
    
    
    30,390Other, including minority interest
    
    
    48,446
    
    
    
    44,655
    
    
    
    93,101Total property revenues
    
    
    1,349,234
    
    
    
    365,752
    
    
    
    1,714,986Property operating expenses:Real estate taxes
    
    
    111,949
    
    
    
    29,521
    
    
    
    141,470Repairs and maintenance
    
    
    98,891
    
    
    
    21,761
    
    
    
    120,652Marketing
    
    
    23,294
    
    
    
    6,246
    
    
    
    29,540Other property operating costs
    
    
    197,645
    
    
    
    81,643
    
    
    
    279,288Provision for doubtful accounts
    
    
    3,791
    
    
    
    1,248
    
    
    
    5,039Total property operating expenses
    
    
    435,570
    
    
    
    140,419
    
    
    
    575,989Retail and other net operating income
    
    
    913,664
    
    
    
    225,333
    
    
    
    1,138,997Master Planned CommunitiesLand sales
    
    
    59,923
    
    
    
    36,022
    
    
    
    95,945Land sales operations
    
    
    (49,686
    )
    
    
    (22,461
    )
    
    
    (72,147
    )Master Planned Communities net operating income
    
    
    10,237
    
    
    
    13,561
    
    
    
    23,798Real estate property net operating income
    
    $
    923,901
    
    
    $
    238,894
    
    
    $
    1,162,795
 Six Months Ended June 30, 2006Consolidated
    
    
    Unconsolidated
    
    
    Segment(In thousands)
    
    Properties
    
    
    Properties
    
    
    BasisRetail and OtherProperty revenues:Minimum rents
    
    $
    862,784
    
    
    $
    209,020
    
    
    $
    1,071,804Tenant recoveries
    
    
    376,176
    
    
    
    92,453
    
    
    
    468,629Overage rents
    
    
    22,829
    
    
    
    3,735
    
    
    
    26,564Other, including minority interest
    
    
    44,648
    
    
    
    41,095
    
    
    
    85,743Total property revenues
    
    
    1,306,437
    
    
    
    346,303
    
    
    
    1,652,740Property operating expenses:Real estate taxes
    
    
    109,515
    
    
    
    29,509
    
    
    
    139,024Repairs and maintenance
    
    
    95,817
    
    
    
    20,998
    
    
    
    116,815Marketing
    
    
    23,669
    
    
    
    6,464
    
    
    
    30,133Other property operating costs
    
    
    176,860
    
    
    
    72,479
    
    
    
    249,339Provision for doubtful accounts
    
    
    13,319
    
    
    
    908
    
    
    
    14,227Total property operating expenses
    
    
    419,180
    
    
    
    130,358
    
    
    
    549,538Retail and other net operating income
    
    
    887,257
    
    
    
    215,945
    
    
    
    1,103,202Master Planned CommunitiesLand sales
    
    
    170,255
    
    
    
    38,799
    
    
    
    209,054Land sales operations
    
    
    (123,699
    )
    
    
    (27,950
    )
    
    
    (151,649
    )Master Planned Communities net operating income
    
    
    46,556
    
    
    
    10,849
    
    
    
    57,405Real estate property net operating income
    
    $
    933,813
    
    
    $
    226,794
    
    
    $
    1,160,607
 26




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
  Three Months Ended June 30,
    
    
    Six Months Ended June 30,(In thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Real estate property net operating incomeSegment basis
    
    $
    594,765
    
    
    $
    554,513
    
    
    $
    1,162,795
    
    
    $
    1,160,607Unconsolidated Properties
    
    
    (123,197
    )
    
    
    (111,380
    )
    
    
    (238,894
    )
    
    
    (226,794
    )Consolidated Properties
    
    
    471,568
    
    
    
    443,133
    
    
    
    923,901
    
    
    
    933,813Management and other fees
    
    
    26,348
    
    
    
    24,650
    
    
    
    53,920
    
    
    
    53,362Property management and other costs
    
    
    (56,447
    )
    
    
    (44,569
    )
    
    
    (109,589
    )
    
    
    (89,629
    )General and administrative
    
    
    (4,030
    )
    
    
    (3,848
    )
    
    
    (16,299
    )
    
    
    (9,007
    )Depreciation and amortization
    
    
    (163,289
    )
    
    
    (178,372
    )
    
    
    (338,408
    )
    
    
    (343,718
    )Minority interest in NOI of Consolidated Properties and other
    
    
    2,996
    
    
    
    4,454
    
    
    
    5,798
    
    
    
    8,374Operating income
    
    
    277,146
    
    
    
    245,448
    
    
    
    519,323
    
    
    
    553,195Interest income
    
    
    2,944
    
    
    
    1,469
    
    
    
    4,977
    
    
    
    4,690Interest expense
    
    
    (275,547
    )
    
    
    (278,611
    )
    
    
    (543,896
    )
    
    
    (557,404
    )Benefit (provision) for income taxes
    
    
    (17,647
    )
    
    
    (14,490
    )
    
    
    270,744
    
    
    
    (40,894
    )Minority interest
    
    
    (5,085
    )
    
    
    (638
    )
    
    
    (59,502
    )
    
    
    (11,862
    )Equity in income of Unconsolidated Real Estate Affiliates
    
    
    26,581
    
    
    
    21,009
    
    
    
    46,940
    
    
    
    49,476Net income (loss)
    
    $
    8,392
    
    
    $
    (25,813
    )
    
    $
    238,586
    
    
    $
    (2,799
    )
  Three Months Ended June 30,
    
    
    Six Months Ended June 30,(In thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Segment basis total property revenues
    
    $
    859,009
    
    
    $
    817,699
    
    
    $
    1,714,986
    
    
    $
    1,652,740Unconsolidated segment revenues
    
    
    (184,401
    )
    
    
    (170,029
    )
    
    
    (365,752
    )
    
    
    (346,303
    )Consolidated land sales
    
    
    36,130
    
    
    
    33,035
    
    
    
    59,923
    
    
    
    170,255Management and other fees
    
    
    26,348
    
    
    
    24,650
    
    
    
    53,920
    
    
    
    53,362Minority interest in NOI of Consolidated Properties and other
    
    
    2,996
    
    
    
    4,454
    
    
    
    5,798
    
    
    
    8,374GAAP-basis consolidated total revenues
    
    $
    740,082
    
    
    $
    709,809
    
    
    $
    1,468,875
    
    
    $
    1,538,428
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  FORWARD-LOOKING INFORMATION
   
    
    Projections of our revenues, income, earnings per share, Funds From
Operations (FFO), Core FFO, capital expenditures, income tax
liabilities, dividends, leverage, capital structure or other financial
items
    
    Descriptions of plans or objectives of our management for future
operations, including pending acquisitions, debt repayment or
restructuring, and development/redevelopment activities
    
    Forecasts of our future economic performance
    
    Descriptions of assumptions underlying or relating to any of the foregoing
  
    
    Future development spending
    
    Expected sales in our Master Planned Communities segment
 27




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
   Overview
         28




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
  Seasonality
  Critical Accounting Policies
  Results of Operations
 Three Months Ended June 30, 2007 and 2006
  Retail and Other Segment
  Three Months EndedJune 30,$ Increase
    
    
    % Increase(In thousands)
    
    2007
    
    
    2006
    
    
    (Decrease)
    
    
    (Decrease)Property revenues:Minimum rents
    
    $
    555,485
    
    
    $
    528,743
    
    
    $
    26,742
    
    
    
    5.1
    %Tenant recoveries
    
    
    243,087
    
    
    
    236,619
    
    
    
    6,468
    
    
    
    2.7Overage rents
    
    
    12,343
    
    
    
    9,990
    
    
    
    2,353
    
    
    
    23.6Other
    
    
    48,094
    
    
    
    42,347
    
    
    
    5,747
    
    
    
    13.6Total property revenues
    
    
    859,009
    
    
    
    817,699
    
    
    
    41,310
    
    
    
    5.1Property operating expenses:Real estate taxes
    
    
    69,481
    
    
    
    69,194
    
    
    
    287
    
    
    
    0.4Repairs and maintenance
    
    
    58,558
    
    
    
    59,203
    
    
    
    (645
    )
    
    
    (1.1
    )Marketing
    
    
    13,587
    
    
    
    14,597
    
    
    
    (1,010
    )
    
    
    (6.9
    )Other property operating costs
    
    
    138,405
    
    
    
    124,921
    
    
    
    13,484
    
    
    
    10.8Provision for doubtful accounts
    
    
    (1,304
    )
    
    
    7,923
    
    
    
    (9,227
    )
    
    
    (116.5
    )Total property operating expenses
    
    
    278,727
    
    
    
    275,838
    
    
    
    2,889
    
    
    
    1.0Real estate property net operating income
    
    $
    580,282
    
    
    $
    541,861
    
    
    $
    38,421
    
    
    
    7.1
    %
  29




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
        Master Planned Communities Segment
 Three Months EndedJune 30,$ Increase
    
    
    % Increase(In thousands)
    
    2007
    
    
    2006
    
    
    (Decrease)
    
    
    (Decrease)Land sales
    
    $
    58,791
    
    
    $
    53,285
    
    
    $
    5,506
    
    
    
    10.3
    %Land sales operations
    
    
    (44,308
    )
    
    
    (40,633
    )
    
    
    3,675
    
    
    
    9.0Real estate property net operating income
    
    $
    14,483
    
    
    $
    12,652
    
    
    $
    1,831
    
    
    
    14.5
    %
  30




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
  Lot Sales and Pricing
    
    
    AcreageThree Months Ended
    
    
    
    
    
    
    RemainingJune 30,
    
    
    Total Gross
    
    
    Saleable2007
    
    
    2006
    
    
    Acres
    
    
    Acres($ in thousands)Maryland Properties(1):Residential:Acres sold
    
    
    0.7
    
    
    
    1.3
    
    
    
    
    
    
    
    227Average price/acre
    
    $
    589
    
    
    $
    813Commercial:Acres sold
    
    
    10.0
    
    
    
    6.7
    
    
    
    
    
    
    
    349Average price/acre
    
    $
    507
    
    
    $
    443Acreage
    
    
    
    
    
    
    
    
    
    
    19,100
    
    
    
    576Summerlin(2):Residential:Acres sold
    
    
    13.7
    
    
    
    8.3
    
    
    
    
    
    
    
    5,506Average price/acre
    
    $
    1,142
    
    
    $
    1,618Commercial:Acres sold
    
    
    1.6
    
    
    
    0.9
    
    
    
    
    
    
    
    883Average price/acre
    
    $
    830
    
    
    $
    2,542Acreage
    
    
    
    
    
    
    
    
    
    
    22,500
    
    
    
    6,389Bridgeland:Residential:Acres sold
    
    
    22.6
    
    
    
    15.9
    
    
    
    
    
    
    
    5,266Average price/acre
    
    $
    244
    
    
    $
    207Commercial:Acres sold
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,211Average price/acre
    
    $
    
    
    
    $
    Acreage
    
    
    
    
    
    
    
    
    
    
    10,200
    
    
    
    6,477Woodlands(3):Residential:Acres sold
    
    
    90.1
    
    
    
    81.3
    
    
    
    
    
    
    
    1,660Average price/acre
    
    $
    379
    
    
    $
    360Commercial:Acres sold
    
    
    5.5
    
    
    
    4.3
    
    
    
    
    
    
    
    1,187Average price/acre
    
    $
    540
    
    
    $
    909Acreage
    
    
    
    
    
    
    
    
    
    
    28,440
    
    
    
    2,847
 
 (1)
    
    Maryland Properties includes Columbia and Fairwood.(2)
    
    Summerlin  Does not reflect impact of CSA (Note 8). Average price per acre includes
assumption of Special Improvement District financing.(3)
    
    Woodlands  Shown at 100%. Our share of Woodlands is 52.5%.  31




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 Certain Significant Consolidated Revenues and Expenses
  Three Months EndedJune 30,$ Increase
    
    
    % Increase(In thousands)
    
    2007
    
    
    2006
    
    
    (Decrease)
    
    
    (Decrease)Tenant rents
    
    $
    649,711
    
    
    $
    624,388
    
    
    $
    25,323
    
    
    
    4.1
    %Land sales
    
    
    36,130
    
    
    
    33,035
    
    
    
    3,095
    
    
    
    9.4Property operating expenses
    
    
    209,628
    
    
    
    212,470
    
    
    
    (2,842
    )
    
    
    (1.3
    )Land sales operations
    
    
    29,542
    
    
    
    25,102
    
    
    
    4,440
    
    
    
    17.7Management and other fees
    
    
    26,348
    
    
    
    24,650
    
    
    
    1,698
    
    
    
    6.9Property management and other costs
    
    
    56,447
    
    
    
    44,569
    
    
    
    11,878
    
    
    
    26.7General and administrative
    
    
    4,030
    
    
    
    3,848
    
    
    
    182
    
    
    
    4.7Depreciation and amortization
    
    
    163,289
    
    
    
    178,372
    
    
    
    (15,083
    )
    
    
    (8.5
    )Interest expense
    
    
    275,547
    
    
    
    278,611
    
    
    
    (3,064
    )
    
    
    (1.1
    )Provision for income taxes
    
    
    17,647
    
    
    
    14,490
    
    
    
    3,157
    
    
    
    21.8
      32




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 Six Months Ended June 30, 2007 and 2006
 Retail and Other Segment
  Six Months EndedJune 30,$ Increase
    
    
    % Increase(In thousands)
    
    2007
    
    
    2006
    
    
    (Decrease)
    
    
    (Decrease)Property revenues:Minimum rents
    
    $
    1,100,693
    
    
    $
    1,071,804
    
    
    $
    28,889
    
    
    
    2.7
    %Tenant recoveries
    
    
    490,802
    
    
    
    468,629
    
    
    
    22,173
    
    
    
    4.7Overage rents
    
    
    30,390
    
    
    
    26,564
    
    
    
    3,826
    
    
    
    14.4Other
    
    
    93,101
    
    
    
    85,743
    
    
    
    7,358
    
    
    
    8.6Total property revenues
    
    
    1,714,986
    
    
    
    1,652,740
    
    
    
    62,246
    
    
    
    3.8Property operating expenses:Real estate taxes
    
    
    141,470
    
    
    
    139,024
    
    
    
    2,446
    
    
    
    1.8Repairs and maintenance
    
    
    120,652
    
    
    
    116,815
    
    
    
    3,837
    
    
    
    3.3Marketing
    
    
    29,540
    
    
    
    30,133
    
    
    
    (593
    )
    
    
    (2.0
    )Other property operating costs
    
    
    279,288
    
    
    
    249,339
    
    
    
    29,949
    
    
    
    12.0Provision for doubtful accounts
    
    
    5,039
    
    
    
    14,227
    
    
    
    (9,188
    )
    
    
    (64.6
    )Total property operating expenses
    
    
    575,989
    
    
    
    549,538
    
    
    
    26,451
    
    
    
    4.8Real estate property net operating income
    
    $
    1,138,997
    
    
    $
    1,103,202
    
    
    $
    35,795
    
    
    
    3.2
    %
        33




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
   Master Planned Communities Segment
 Six Months EndedJune 30,$ Increase
    
    
    % Increase(In thousands)
    
    2007
    
    
    2006
    
    
    (Decrease)
    
    
    (Decrease)Land sales
    
    $
    95,945
    
    
    $
    209,054
    
    
    $
    (113,109
    )
    
    
    (54.1
    )%Land sales operations
    
    
    (72,147
    )
    
    
    (151,649
    )
    
    
    (79,502
    )
    
    
    (52.4
    )Real estate property
net operating income
    
    $
    23,798
    
    
    $
    57,405
    
    
    $
    (33,607
    )
    
    
    (58.5
    )%
  34




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
  Lot Sales and Pricing
    
    
    AcreageSix Months Ended
    
    
    
    
    
    
    RemainingJune 30,
    
    
    Total Gross
    
    
    Saleable2007
    
    
    2006
    
    
    Acres
    
    
    Acres($ in thousands)Maryland Properties(1):Residential:Acres sold
    
    
    0.7
    
    
    
    25.1
    
    
    
    
    
    
    
    227Average price/acre
    
    $
    589
    
    
    $
    1,006Commercial:Acres sold
    
    
    19.0
    
    
    
    6.7
    
    
    
    
    
    
    
    349Average price/acre
    
    $
    405
    
    
    $
    443Acreage
    
    
    
    
    
    
    
    
    
    
    19,100
    
    
    
    576Summerlin(2):Residential:Acres sold
    
    
    17.2
    
    
    
    112.2
    
    
    
    
    
    
    
    5,506Average price/acre
    
    $
    1,263
    
    
    $
    976Commercial:Acres sold
    
    
    4.9
    
    
    
    20.0
    
    
    
    
    
    
    
    883Average price/acre
    
    $
    1,055
    
    
    $
    142
    (3)Acreage
    
    
    
    
    
    
    
    
    
    
    22,500
    
    
    
    6,389Bridgeland:Residential:Acres sold
    
    
    41.5
    
    
    
    27.8
    
    
    
    
    
    
    
    5,266Average price/acre
    
    $
    247
    
    
    $
    212Commercial:Acres sold
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,211Average price/acre
    
    $
    
    
    
    $
    Acreage
    
    
    
    
    
    
    
    
    
    
    10,200
    
    
    
    6,477Woodlands(4):Residential:Acres sold
    
    
    143.6
    
    
    
    156.6
    
    
    
    
    
    
    
    1,660Average price/acre
    
    $
    374
    
    
    $
    353Commercial:Acres sold
    
    
    12.1
    
    
    
    18.0
    
    
    
    
    
    
    
    1,187Average price/acre
    
    $
    387
    
    
    $
    425Acreage
    
    
    
    
    
    
    
    
    
    
    28,400
    
    
    
    2,847
 
 (1)
    
    Maryland Properties includes Columbia and Fairwood.(2)
    
    Summerlin  Does not reflect impact of CSA (Note 8). Average price per acre includes
assumption of Special Improvement District financing.(3)
    
    Summerlin  Includes the effect of a single sale of a 19.1 acre parcel to a school at a
price of $25 thousand per acre.(4)
    
    Woodlands  Shown at 100%. Our share of Woodlands is 52.5%.  35




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 Certain Significant Consolidated Revenues and Expenses
  Six Months EndedJune 30,$ Increase
    
    
    % Increase(In thousands)
    
    2007
    
    
    2006
    
    
    (Decrease)
    
    
    (Decrease)Tenant rents
    
    $
    1,300,788
    
    
    $
    1,261,789
    
    
    $
    38,999
    
    
    
    3.1
    %Land sales
    
    
    59,923
    
    
    
    170,255
    
    
    
    (110,332
    )
    
    
    (64.8
    )Property operating expenses
    
    
    435,570
    
    
    
    419,180
    
    
    
    16,390
    
    
    
    3.9Land sales operations
    
    
    49,686
    
    
    
    123,699
    
    
    
    (74,013
    )
    
    
    (59.8
    )Management and other fees
    
    
    53,920
    
    
    
    53,362
    
    
    
    558
    
    
    
    1.0Property management and
other costs
    
    
    109,589
    
    
    
    89,629
    
    
    
    19,960
    
    
    
    22.3General and administrative
    
    
    16,299
    
    
    
    9,007
    
    
    
    7,292
    
    
    
    81.0Depreciation and amortization
    
    
    338,408
    
    
    
    343,718
    
    
    
    (5,310
    )
    
    
    (1.5
    )Interest expense
    
    
    543,896
    
    
    
    557,404
    
    
    
    (13,508
    )
    
    
    (2.4
    )(Benefit) provision for
income taxes
    
    
    (270,744
    )
    
    
    40,894
    
    
    
    311,638
    
    
    
    762.1
      
 Liquidity and Capital Resources
 Cash Flows from Operating Activities
   36




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
   Cash Flows from Investing Activities
    Cash Flows from Financing Activities
    REIT Requirements
   37




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 Recently Issued Accounting Pronouncements
  
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  
 ITEM 4. CONTROLS AND PROCEDURES
 Disclosure Controls and Procedures
  Changes in Internal Control Over Financial Reporting
  
 PART II. OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 1A. RISK FACTORS
  38




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 
 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 Issuer
Purchases of Equity Securities(1)
 Total Number
    
    
    Approximateof Shares
    
    
    Dollar ValuePurchased
    
    
    of Shares thatas Part of
    
    
    May Yet beTotal
    
    
    Average
    
    
    Publicly
    
    
    PurchasedNumber of
    
    
    Price
    
    
    Announced
    
    
    Under theShares
    
    
    Paid
    
    
    Plans or
    
    
    Plans orPeriod
    
    Purchased
    
    
    per Share
    
    
    Programs
    
    
    ProgramsJune 8-25, 2007
    
    
    1,806,900
    
    
    $
    52.93
    
    
    
    1,806,900
    
    
    $
    104,352,038Total
    
    
    1,806,900
    
    
    $
    52.93
    
    
    
    1,806,900
    
    
    $
    104,352,038
 (1)
 
 ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  Number ofMatter
    
    
    Shares For
    
    
    Withheld1.
    
    (a) Election of John Bucksbaum
    
    
    222,511,258
    
    
    
    3,724,571(b) Election of Alan Cohen
    
    
    223,240,260
    
    
    
    2,995,569(c) Election of Anthony Downs
    
    
    222,693,786
    
    
    
    3,542,043
  39




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 Number of
    
    
    NumberNumber of Shares
    
    
    Shares
    
    
    of Shares
    
    
    Broker Non-Matter
    
    For
    
    
    Against
    
    
    Abstain
    
    
    Votes2.
    
    Amendment and Restatement of the Companys Employee Stock Purchase Plan to provide for an additional 1,500,000 shares to be available for issuance, permit all issuances under the Plan to be effective electronically, change the waiting periods for employees to begin participation, and change the procedures regarding the administrative mechanics of participating in the Plan.
    
    208,155,103
    
    
    784,271
    
    
    263,352
    
    
    
    17,033,103Number of
    
    
    NumberNumber of Shares
    
    
    Shares
    
    
    of Shares
    
    
    Broker Non-Matter
    
    For
    
    
    Against
    
    
    Abstain
    
    
    Votes3.
    
    Ratification of the selection of Deloitte & Touche LLP as the Companys independent public accountants for the year ending December 31, 2007.
    
    226,030,056
    
    
    125,694
    
    
    80,079
    
    
    
    0Number of
    
    
    NumberNumber of Shares
    
    
    Shares
    
    
    of Shares
    
    
    Broker Non-Matter
    
    For
    
    
    Against
    
    
    Abstain
    
    
    Votes4.
    
    Stockholder proposal regarding declassification of the Board of Directors.
    
    162,505,136
    
    
    46,102,793
    
    
    594,797
    
    
    
    17,033,103
 40




---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 
 ITEM 5. OTHER INFORMATION
  
 ITEM 6. EXHIBITS
 31.1
    
    Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.31.2
    
    Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.32.1
    
    Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2
    
    Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.99.1
    
    Financial Statements of TRCLP, a subsidiary of GGPLP.
  41




---



##### Table of Contents



SIGNATURE
  GENERAL GROWTH PROPERTIES, INC.
                        (Registrant)Date:  August 8, 2007
    by:
    /s/:  Bernard FreibaumBernard FreibaumExecutive Vice President and Chief Financial Officer
(On behalf of the Registrant and as Principal Accounting Officer) 42




---



##### Table of Contents



EXHIBIT INDEX
 31.1
    
    Certification of Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.31.2
    
    Certification of Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.32.1
    
    Certification of Chief Executive Officer Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.32.2
    
    Certification of Chief Financial Officer Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.99.1
    
    Financial Statements of TRCLP, a subsidiary of GGPLP.
  43