##### 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 September 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




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##### 



GENERAL GROWTH PROPERTIES, INC.
INDEX
 PAGENUMBERPart I
    
    FINANCIAL INFORMATIONItem 1: Consolidated Financial Statements (Unaudited)Consolidated Balance Sheets
as of September 30, 2007 and December 31, 2006
    
    3Consolidated Statements of Income and Comprehensive Income
for the three and nine months ended September 30, 2007 and 2006
    
    4Consolidated Statements of Cash Flows
for the nine months ended September 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
    
    15Note 5: Income Taxes
    
    16Note 6: Stock-Based Compensation Plans
    
    17Note 7: Other Assets and Liabilities
    
    20Note 8: Commitments and Contingencies
    
    21Note 9: Recently Issued Accounting Pronouncements
    
    22Note 10: Segments
    
    23Item 2: Managements Discussion and Analysis of
Financial Condition and Results of Operations
    
    26Liquidity and Capital Resources
    
    37Item 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
    
    39Item 6: Exhibits
    
    39SIGNATURE
    
    40EXHIBIT INDEX
    
    41302 Certification of Chief Executive Officer302 Certification of Chief Financial Officer906 Certification of Chief Executive Officer906 Certification of Chief Financial OfficerConsolidated Financial Statements
  2




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 
 CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Dollars in thousands)
 September 30,
    
    
    December 31,2007
    
    
    2006AssetsInvestment in real estate:Land
    
    $
    3,288,873
    
    
    $
    2,952,477Buildings and equipment
    
    
    22,263,328
    
    
    
    19,379,386Less accumulated depreciation
    
    
    (3,446,040
    )
    
    
    (2,766,871
    )Developments in progress
    
    
    1,031,879
    
    
    
    673,900Net property and equipment
    
    
    23,138,040
    
    
    
    20,238,892Investment in and loans to/from Unconsolidated Real Estate Affiliates
    
    
    1,754,701
    
    
    
    1,499,036Investment land and land held for development and sale
    
    
    1,740,089
    
    
    
    1,655,838Net investment in real estate
    
    
    26,632,830
    
    
    
    23,393,766Cash and cash equivalents
    
    
    48,294
    
    
    
    97,139Accounts and notes receivable, net
    
    
    348,708
    
    
    
    328,890Goodwill
    
    
    385,683
    
    
    
    371,674Deferred expenses, net
    
    
    291,161
    
    
    
    252,190Prepaid expenses and other assets
    
    
    828,788
    
    
    
    797,786Total assets
    
    $
    28,535,464
    
    
    $
    25,241,445Liabilities and Stockholders EquityMortgages, notes and loans payable
    
    $
    24,073,812
    
    
    $
    20,521,967Investment in and loans to/from Unconsolidated Real Estate Affiliates
    
    
    64,198
    
    
    
    172,421Deferred tax liabilities
    
    
    912,052
    
    
    
    1,302,205Accounts payable and accrued expenses
    
    
    1,490,931
    
    
    
    1,050,192Total liabilities
    
    
    26,540,993
    
    
    
    23,046,785Minority interests:Preferred
    
    
    121,415
    
    
    
    182,828Common
    
    
    363,090
    
    
    
    347,753Total minority interests
    
    
    484,505
    
    
    
    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,
245,605,179 shares issued as of September 30, 2007
and 242,357,416 shares issued as of December 31, 2006
    
    
    2,456
    
    
    
    2,424Additional paid-in capital
    
    
    2,596,289
    
    
    
    2,533,898Retained earnings (accumulated deficit)
    
    
    (1,023,878
    )
    
    
    (868,391
    )Accumulated other comprehensive income
    
    
    30,747
    
    
    
    9,582Less common stock in treasury, at cost, 1,806,900 shares
as of September 30, 2007 and 290,787 shares as of
December 31, 2006
    
    
    (95,648
    )
    
    
    (13,434
    )Total stockholders equity
    
    
    1,509,966
    
    
    
    1,664,079Total liabilities and stockholders equity
    
    $
    28,535,464
    
    
    $
    25,241,445
  3




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##### 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
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Revenues:Minimum rents
    
    $
    509,762
    
    
    $
    431,852
    
    
    $
    1,389,235
    
    
    $
    1,294,635Tenant recoveries
    
    
    231,395
    
    
    
    199,494
    
    
    
    626,253
    
    
    
    575,670Overage rents
    
    
    16,122
    
    
    
    14,744
    
    
    
    42,578
    
    
    
    37,573Land sales
    
    
    54,188
    
    
    
    47,768
    
    
    
    114,111
    
    
    
    218,023Management and other fees
    
    
    26,484
    
    
    
    26,768
    
    
    
    80,404
    
    
    
    80,130Other
    
    
    26,307
    
    
    
    25,405
    
    
    
    80,550
    
    
    
    78,427Total revenues
    
    
    864,258
    
    
    
    746,031
    
    
    
    2,333,131
    
    
    
    2,284,458Expenses:Real estate taxes
    
    
    68,054
    
    
    
    57,227
    
    
    
    180,004
    
    
    
    166,742Repairs and maintenance
    
    
    52,624
    
    
    
    49,122
    
    
    
    151,514
    
    
    
    144,939Marketing
    
    
    12,237
    
    
    
    10,806
    
    
    
    35,530
    
    
    
    34,475Other property operating costs
    
    
    115,047
    
    
    
    105,231
    
    
    
    312,692
    
    
    
    282,092Land sales operations
    
    
    43,159
    
    
    
    36,360
    
    
    
    92,845
    
    
    
    160,059Provision for doubtful accounts
    
    
    6,275
    
    
    
    3,762
    
    
    
    10,066
    
    
    
    17,081Property management and other costs
    
    
    45,252
    
    
    
    43,895
    
    
    
    154,841
    
    
    
    133,525General and administrative
    
    
    4,631
    
    
    
    5,649
    
    
    
    20,929
    
    
    
    14,653Depreciation and amortization
    
    
    189,436
    
    
    
    168,624
    
    
    
    527,844
    
    
    
    512,342Total expenses
    
    
    536,715
    
    
    
    480,676
    
    
    
    1,486,265
    
    
    
    1,465,908Operating income
    
    
    327,543
    
    
    
    265,355
    
    
    
    846,866
    
    
    
    818,550Interest income
    
    
    2,027
    
    
    
    4,027
    
    
    
    7,004
    
    
    
    8,717Interest expense
    
    
    (310,868
    )
    
    
    (284,273
    )
    
    
    (854,764
    )
    
    
    (841,677
    )Income (loss) before income taxes, minority interest
and equity in income (loss) of Unconsolidated Real Estate Affiliates
    
    
    18,702
    
    
    
    (14,891
    )
    
    
    (894
    )
    
    
    (14,410
    )Benefit (provision) for income taxes
    
    
    (14,293
    )
    
    
    (11,225
    )
    
    
    256,451
    
    
    
    (52,120
    )Minority interest
    
    
    (1,269
    )
    
    
    (4,181
    )
    
    
    (60,771
    )
    
    
    (16,043
    )Equity in income (loss) of Unconsolidated Real Estate Affiliates
    
    
    (12,499
    )
    
    
    22,136
    
    
    
    34,441
    
    
    
    71,613Net income (loss)
    
    $
    (9,359
    )
    
    $
    (8,161
    )
    
    $
    229,227
    
    
    $
    (10,960
    )Basic
Earnings (Loss) Per Share
    
    $
    (0.04
    )
    
    $
    (0.03
    )
    
    $
    0.94
    
    
    $
    (0.05
    )Diluted Earnings (Loss) Per Share
    
    
    (0.04
    )
    
    
    (0.03
    )
    
    
    0.94
    
    
    
    (0.05
    )Dividends declared per share
    
    
    0.45
    
    
    
    0.41
    
    
    
    1.35
    
    
    
    1.23Comprehensive Income (Loss), Net:Net income (loss)
    
    $
    (9,359
    )

    
    $
    (8,161
    )
    
    $
    229,227
    
    
    $
    (10,960
    )Other comprehensive income, net of minority interest:Net unrealized losses on financial instruments
    
    
    (351
    )
    
    
    (3,440
    )
    
    
    (1,433
    )
    
    
    (2,104
    )Accrued pension adjustment
    
    
    102
    
    
    
    231
    
    
    
    305
    
    
    
    48Foreign currency translation
    
    
    9,879
    
    
    
    (227
    )
    
    
    22,222
    
    
    
    3,928Unrealized gains (losses) on available-for-sale securities
    
    
    98
    
    
    
    (458
    )
    
    
    71
    
    
    
    (253
    )Total other comprehensive
income (loss), net of
minority interest
    
    
    9,728
    
    
    
    (3,894
    )
    
    
    21,165
    
    
    
    1,619Comprehensive income (loss), net
    
    $
    369
    
    
    $
    (12,055
    )
    
    $
    250,392
    
    
    $
    (9,341
    )
  4




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
 Nine Months EndedSeptember 30,2007
    
    
    2006Cash Flows from Operating Activities:Net income (loss)
    
    $
    229,227
    
    
    $
    (10,960
    )Adjustments to reconcile net income (loss) to net cash provided by operating
activities:Minority interests
    
    
    60,771
    
    
    
    16,043Equity in
income (loss) of Unconsolidated Real Estate Affiliates
    
    
    (33,468
    )
    
    
    (71,390
    )Provision for doubtful accounts
    
    
    10,066
    
    
    
    17,081Distributions received from Unconsolidated Real Estate Affiliates
    
    
    82,753
    
    
    
    59,844Depreciation
    
    
    502,421
    
    
    
    492,932Amortization
    
    
    25,423
    
    
    
    19,410Amortization of debt market rate adjustment and other non-cash interest expense
    
    
    (11,373
    )
    
    
    (9,288
    )Participation expense pursuant to Contingent Stock Agreement
    
    
    25,944
    
    
    
    59,197Land/Residential development and acquisitions expenditures
    
    
    (191,503
    )
    
    
    (156,798
    )Cost of land sales
    
    
    40,485
    
    
    
    78,827Tax restructuring benefit
    
    
    (296,742
    )
    
    
    Straight-line rent amortization
    
    
    (26,649
    )
    
    
    (36,763
    )Amortization of intangibles other than in-place leases
    
    
    (21,431
    )
    
    
    (30,923
    )Insurance recoveries
    
    
    11,648
    
    
    
    Net changes:Accounts and notes receivable
    
    
    8,355
    
    
    
    (7,308
    )Prepaid expenses and other assets
    
    
    14,878
    
    
    
    (2,879
    )Deferred expenses
    
    
    (23,414
    )
    
    
    (36,993
    )Accounts payable and accrued expenses and deferred tax liabilities
    
    
    (8,093
    )
    
    
    50,815Other, net
    
    
    12,914
    
    
    
    20,506Net cash provided by operating activities
    
    
    412,212
    
    
    
    451,353Cash Flows from Investing Activities:Acquisition/development of real estate and property additions/improvements
    
    
    (1,189,614
    )
    
    
    (419,083
    )Proceeds from sales of investment properties
    
    
    2,957
    
    
    
    16,080Increase in investments in Unconsolidated Real Estate Affiliates
    
    
    (298,208
    )
    
    
    (202,254
    )Distributions received from Unconsolidated Real Estate Affiliates in excess of
income
    
    
    183,338
    
    
    
    618,406Loans (to) from Unconsolidated Real Estate Affiliates, net
    
    
    (138,330
    )
    
    
    37,517(Increase) decrease in restricted cash
    
    
    (12,301
    )
    
    
    10,499Insurance recoveries
    
    
    4,360
    
    
    
    25,784Other, net
    
    
    4,241
    
    
    
    10,712Net cash provided by (used in) investing activities
    
    
    (1,443,557
    )
    
    
    97,661Cash Flows from Financing Activities:Proceeds from issuance of mortgages, notes and loans payable
    
    
    3,131,800
    
    
    
    8,979,900Principal payments on mortgages, notes and loans payable
    
    
    (1,581,871
    )
    
    
    (9,077,593
    )Deferred financing costs
    
    
    (28,452
    )
    
    
    (37,840
    )Cash distributions paid to common stockholders
    
    
    (328,955
    )
    
    
    (295,377
    )Cash distributions paid to holders of Common Units
    
    
    (70,919
    )
    
    
    (65,182
    )Cash distributions paid to holders of perpetual and convertible preferred units
    
    
    (10,970
    )
    
    
    (13,039
    )Proceeds from issuance of common stock, including from common stock plans
    
    
    56,996
    
    
    
    19,822Redemption of preferred minority interests
    
    
    (60,000
    )
    
    
    Purchase of treasury stock
    
    
    (95,648
    )
    
    
    (69,691
    )Other, net
    
    
    (2,585
    )
    
    
    (8,446
    )Net cash provided by (used in) financing activities
    
    
    1,009,396
    
    
    
    (567,446
    )Effect of exchange rate changes on cash
    
    
    (26,896
    )
    
    
    (4,799
    )Net change in cash and cash equivalents
    
    
    (48,845
    )
    
    
    (23,231
    )Cash and cash equivalents at beginning of period
    
    
    97,139
    
    
    
    102,791Cash and cash equivalents at end of period
    
    $
    48,294
    
    
    $
    79,560
  5




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 CONSOLIDATED
STATEMENTS OF CASH FLOWS (Continued)
(UNAUDITED)
(In thousands)
 Nine Months EndedSeptember 30,2007
    
    
    2006Supplemental Disclosure of Cash Flow Information:Interest paid
    
    $
    877,230
    
    
    $
    864,766Interest capitalized
    
    
    63,612
    
    
    
    40,182Taxes paid
    
    
    76,841
    
    
    
    31,476Non-Cash
Transactions:Common stock issued in exchange for Operating Partnership Units
    
    $
    7,695
    
    
    $
    3,871Common stock issued in exchange for convertible preferred units
    
    
    484
    
    
    
    3,833Common stock issued pursuant to Contingent Stock Agreement
    
    
    36,669
    
    
    
    81,730Accrued
capital expenditures included in accounts payable and accrued
expenses and deferred tax liabilities
    
    
    12,530
    
    
    
    36,065Acquisition of joint venture partner share of GGP/Homart Inc. in 2007 and
GGP Ivanhoe IV, Inc. in 2006, respectively:Total assets
    
    
    3,296,951
    
    
    
    169,415Total liabilities
    
    
    2,347,796
    
    
    
    169,415
  6




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 
 NOTE 1 ORGANIZATION
  General
   Basis of Presentation
   Straight-Line Rents Receivable
  Acquisition of Interest in GGP/Homart I
  7




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
  Use of Estimates
  Reclassifications
  Earnings Per Share (EPS)
  Three Months Ended September 30,2007
    
    
    2006(In thousands)
    
    Basic
    
    
    Diluted
    
    
    Basic
    
    
    DilutedNumerators:
Net (loss)
    
    $
    (9,359
    )
    
    $
    (9,359
    )
    
    
    (8,161
    )
    
    
    (8,161
    )Denominators:Weighted average number of common shares
outstanding  basic
    
    
    243,775
    
    
    
    243,775
    
    
    
    241,150
    
    
    
    241,150Effect of dilutive securities  stock options
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Weighted average number of common shares
outstanding  diluted
    
    
    243,775
    
    
    
    243,775
    
    
    
    241,150
    
    
    
    241,150
 Nine Months Ended September 30,2007
    
    
    2006(In thousands)
    
    Basic
    
    
    Diluted
    
    
    Basic
    
    
    DilutedNumerators:Net income (loss)
    
    $
    229,227
    
    
    $
    229,227
    
    
    
    (10,960
    )
    
    
    (10,960
    )Denominators:Weighted average number of common shares
outstanding  basic
    
    
    244,034
    
    
    
    244,034
    
    
    
    241,034
    
    
    
    241,034Effect of dilutive securities  stock options
    
    
    
    
    
    
    606
    
    
    
    
    
    
    
    Weighted average number of common shares
outstanding  diluted
    
    
    244,034
    
    
    
    244,640
    
    
    
    241,034
    
    
    
    241,034
  8




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
  Transactions With Affiliates
  
 NOTE 2 INTANGIBLES
  AccumulatedGross Asset
    
    (Amortization)/
    
    Net Carrying(In thousands)
    
    (Liability)
    
    Accretion
    
    AmountAs of September 30, 2007Tenant leases:In-place value
    
    $
    645,600
    
    
    $
    (343,980
    )
    
    $
    301,620Above-market
    
    
    120,681
    
    
    
    (61,498
    )
    
    
    59,183Below-market
    
    
    (375,935
    )
    
    
    223,248
    
    
    
    (152,687
    )Ground leases:Above-market
    
    
    (16,968
    )
    
    
    1,361
    
    
    
    (15,607
    )Below-market
    
    
    293,435
    
    
    
    (17,461
    )
    
    
    275,974Real estate tax
stabilization agreement
    
    
    91,879
    
    
    
    (11,444
    )
    
    
    80,435As 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




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
  
 NOTE 3 UNCONSOLIDATED REAL ESTATE AFFILIATES
 Condensed Combined Financial Information of Unconsolidated Real Estate Affiliates
  September 30,
    
    
    December 31,(In thousands)
    
    2007
    
    
    2006Condensed Combined Balance Sheets  Unconsolidated Real Estate AffiliatesAssets:Land
    
    $
    882,296
    
    
    $
    988,018Buildings and equipment
    
    
    6,765,413
    
    
    
    8,158,030Less accumulated depreciation
    
    
    (1,311,856
    )
    
    
    (1,590,812
    )Developments in progress
    
    
    696,525
    
    
    
    551,464Net property and equipment
    
    
    7,032,378
    
    
    
    8,106,700Investment in unconsolidated joint ventures
    
    
    238,318
    
    
    
    45,863Investment land and land held for development and sale
    
    
    275,343
    
    
    
    290,273Net investment in real estate
    
    
    7,546,039
    
    
    
    8,442,836Cash and cash equivalents
    
    
    190,383
    
    
    
    180,203Accounts and notes receivable, net
    
    
    125,702
    
    
    
    165,049Deferred expenses, net
    
    
    160,566
    
    
    
    155,051Prepaid expenses and other assets
    
    
    263,477
    
    
    
    470,885Total assets
    
    $
    8,286,167
    
    
    $
    9,414,024Liabilities and Owners Equity:Mortgages, notes and loans payable
    
    $
    6,171,845
    
    
    $
    7,752,889Accounts payable and accrued expenses
    
    
    599,535
    
    
    
    558,974Owners equity
    
    
    1,514,787
    
    
    
    1,102,161Total liabilities and owners equity
    
    $
    8,286,167
    
    
    $
    9,414,024Investment In and Loans To/From Unconsolidated Real Estate Affiliates, NetOwners equity
    
    $
    1,514,787
    
    
    $
    1,102,161Less joint venture partners equity
    
    
    (781,238
    )
    
    
    (600,412
    )Capital or basis differences and loans
    
    
    956,954
    
    
    
    824,866Investment in and loans to/from
Unconsolidated Real Estate Affiliates, net
    
    $
    1,690,503
    
    
    $
    1,326,615Reconciliation  Investment In and Loans To/From Unconsolidated Real Estate AffiliatesAsset  Investment in and loans to/from
Unconsolidated Real Estate Affiliates
    
    $
    1,754,701
    
    
    $
    1,499,036Liability  Investment in and loans to/from
Unconsolidated Real Estate Affiliates
    
    
    (64,198
    )
    
    
    (172,421
    )Investment in and loans to/from
Unconsolidated Real Estate Affiliates, net
    
    $
    1,690,503
    
    
    $
    1,326,615
 10




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 Three Months Ended September 30,
    
    
    Nine Months Ended September 30,(In thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Condensed Combined Statements of Income  Unconsolidated Real Estate AffiliatesRevenues:Minimum rents
    
    $
    185,000
    
    
    $
    210,301
    
    
    $
    627,313
    
    
    $
    628,477Tenant recoveries
    
    
    82,930
    
    
    
    95,629
    
    
    
    276,451
    
    
    
    282,112Overage rents
    
    
    4,066
    
    
    
    4,998
    
    
    
    11,923
    
    
    
    12,236Land sales
    
    
    63,879
    
    
    
    41,053
    
    
    
    132,492
    
    
    
    114,779Management and other fees
    
    
    9,937
    
    
    
    7,933
    
    
    
    26,939
    
    
    
    19,021Other
    
    
    34,389
    
    
    
    35,035
    
    
    
    121,330
    
    
    
    117,077Total revenues
    
    
    380,201
    
    
    
    394,949
    
    
    
    1,196,448
    
    
    
    1,173,702Expenses:Real estate taxes
    
    
    23,779
    
    
    
    29,755
    
    
    
    83,841
    
    
    
    89,595Repairs and maintenance
    
    
    18,748
    
    
    
    20,923
    
    
    
    62,646
    
    
    
    63,134Marketing
    
    
    5,104
    
    
    
    5,565
    
    
    
    17,615
    
    
    
    18,580Other property operating costs
    
    
    69,043
    
    
    
    75,103
    
    
    
    228,161
    
    
    
    228,295Land sales operations
    
    
    35,064
    
    
    
    26,257
    
    
    
    71,184
    
    
    
    76,943Provision for doubtful accounts
    
    
    1,498
    
    
    
    723
    
    
    
    4,106
    
    
    
    2,705Property management and other costs
    
    
    21,631
    
    
    
    22,986
    
    
    
    69,654
    
    
    
    60,929General and administrative
    
    
    78,906
    
    
    
    2,026
    
    
    
    82,023
    
    
    
    4,887Depreciation and amortization
    
    
    57,453
    
    
    
    65,968
    
    
    
    199,897
    
    
    
    195,909Total expenses
    
    
    311,226
    
    
    
    249,306
    
    
    
    819,127
    
    
    
    740,977Operating income
    
    
    68,975
    
    
    
    145,643
    
    
    
    377,321
    
    
    
    432,725Interest income
    
    
    4,509
    
    
    
    9,710
    
    
    
    21,041
    
    
    
    21,546Interest expense
    
    
    (75,687
    )
    
    
    (90,315
    )
    
    
    (276,025
    )
    
    
    (258,695
    )Provision for income taxes
    
    
    (984
    )
    
    
    (383
    )
    
    
    (7,742
    )
    
    
    (1,191
    )Minority interest
    
    
    (607
    )
    
    
    
    
    
    
    (913
    )
    
    
    Equity in
income of unconsolidated joint ventures
    
    
    80
    
    
    
    1,321
    
    
    
    3,389
    
    
    
    4,473Net income
(loss)
    
    $
    (3,714
    )

   
    $
    65,976
    
    
    $
    117,071
    
    
    $
    198,858Equity In
Income (Loss) of Unconsolidated Real Estate AffiliatesNet income (loss)
    
    $
    (3,714
    )
    
    $
    65,976
    
    
    $
    117,071
    
    
    $
    198,858Joint venture partners share of income
    
    
    93
    
    
    
    (35,412
    )
    
    
    (64,327
    )
    
    
    (106,918
    )Amortization of capital or basis differences
    
    
    (8,376
    )
    
    
    (8,428
    )
    
    
    (15,382
    )
    
    
    (20,327
    )Elimination of Unconsolidated Real Estate Affiliates loan interest
    
    
    (502
    )
    
    
    
    
    
    
    (2,921
    )
    
    
    Equity in
income (loss) of Unconsolidated Real Estate Affiliates
    
    $
    (12,499
    )
    
    $
    22,136
    
    
    $
    34,441
    
    
    $
    71,613
 Condensed Financial Information of Individually Significant Unconsolidated Real Estate Affiliates
   11




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 GGP/Homart IISeptember 30,
    
    
    December 31,(In thousands)
    
    2007
    
    
    2006Assets:Land
    
    $
    248,209
    
    
    $
    224,158Buildings and equipment
    
    
    2,545,473
    
    
    
    2,261,123Less accumulated depreciation
    
    
    (380,098
    )
    
    
    (326,340
    )Developments in progress
    
    
    161,365
    
    
    
    286,396Net investment in real estate
    
    
    2,574,949
    
    
    
    2,445,337Cash and cash equivalents
    
    
    26,267
    
    
    
    6,289Accounts receivable, net
    
    
    38,128
    
    
    
    35,506Deferred expenses, net
    
    
    77,093
    
    
    
    58,712Prepaid expenses and other assets
    
    
    40,435
    
    
    
    36,656Total assets
    
    $
    2,756,872
    
    
    $
    2,582,500Liabilities and Owners Equity:Mortgages, notes and loans payable
    
    $
    2,117,192
    
    
    $
    2,284,763Accounts payable and accrued expenses
    
    
    210,479
    
    
    
    146,781Owners equity
    
    
    429,201
    
    
    
    150,956Total liabilities and owners equity
    
    $
    2,756,872
    
    
    $
    2,582,500
 GGP/Homart II
    
    
    GGP/Homart IIThree Months Ended September 30,
    
    
    Nine Months Ended September 30,(In thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Revenues:Minimum rents
    
    $
    55,855
    
    
    $
    48,610
    
    
    $
    162,466
    
    
    $
    149,281Tenant recoveries
    
    
    26,413
    
    
    
    23,126
    
    
    
    75,615
    
    
    
    69,359Overage rents
    
    
    972
    
    
    
    892
    
    
    
    2,842
    
    
    
    2,484Other
    
    
    2,122
    
    
    
    1,981
    
    
    
    6,087
    
    
    
    5,630Total revenues
    
    
    85,362
    
    
    
    74,609
    
    
    
    247,010
    
    
    
    226,754Expenses:Real estate taxes
    
    
    7,667
    
    
    
    7,256
    
    
    
    22,633
    
    
    
    22,175Repairs and maintenance
    
    
    5,290
    
    
    
    4,418
    
    
    
    15,101
    
    
    
    13,386Marketing
    
    
    2,093
    
    
    
    1,483
    
    
    
    5,562
    
    
    
    5,279Other property operating costs
    
    
    10,480
    
    
    
    9,662
    
    
    
    29,679
    
    
    
    27,082Provision for doubtful accounts
    
    
    409
    
    
    
    (273
    )
    
    
    1,075
    
    
    
    65Property management and other costs
    
    
    5,159
    
    
    
    4,663
    
    
    
    15,421
    
    
    
    14,047General and administrative
    
    
    78,848
    
    
    
    1,788
    
    
    
    81,605
    
    
    
    4,376Depreciation and amortization
    
    
    20,302
    
    
    
    16,307
    
    
    
    59,368
    
    
    
    47,945Total expenses
    
    
    130,248
    
    
    
    45,304
    
    
    
    230,444
    
    
    
    134,355Operating
income (loss)
    
    
    (44,886
    )    
    
    29,305
    
    
    
    16,566
    
    
    
    92,399Interest income
    
    
    2,009
    
    
    
    1,996
    
    
    
    6,190
    
    
    
    6,840Interest expense
    
    
    (25,216
    )
    
    
    (23,045
    )
    
    
    (80,668
    )
    
    
    (63,878
    )Benefit (Provision) for income taxes
    
    
    (76
    )
    
    
    46
    
    
    
    (1,610
    )
    
    
    (81
    )Net income
(loss)
    
    $
    (68,169
    )
    
    $
    8,302
    
    
    $
    (59,522
    )
    
    $
    35,280
  12




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 GGP/TeachersSeptember 30,
    
    
    December 31,(In thousands)
    
    2007
    
    
    2006Assets:Land
    
    $
    177,088
    
    
    $
    176,761Buildings and equipment
    
    
    919,586
    
    
    
    908,786Less accumulated depreciation
    
    
    (108,824
    )
    
    
    (89,323
    )Developments in progress
    
    
    142,920
    
    
    
    76,991Net investment in real estate
    
    
    1,130,770
    
    
    
    1,073,215Cash and cash equivalents
    
    
    12,678
    
    
    
    19,029Accounts receivable, net
    
    
    10,431
    
    
    
    11,347Deferred expenses, net
    
    
    19,944
    
    
    
    15,280Prepaid expenses and other assets
    
    
    14,157
    
    
    
    13,980Total assets
    
    $
    1,187,980
    
    
    $
    1,132,851Liabilities and Owners Equity:Mortgages, notes and loans payable
    
    $
    1,031,997
    
    
    $
    933,375Accounts payable and accrued expenses
    
    
    72,743
    
    
    
    88,188Owners equity
    
    
    83,240
    
    
    
    111,288Total liabilities and owners equity
    
    $
    1,187,980
    
    
    $
    1,132,851
 GGP/Teachers
    
    
    GGP/TeachersThree Months Ended September 30,
    
    
    Nine Months Ended September 30,(In thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Revenues:Minimum rents
    
    $
    27,192
    
    
    $
    26,507
    
    
    $
    81,571
    
    
    $
    78,811Tenant recoveries
    
    
    11,429
    
    
    
    11,294
    
    
    
    33,971
    
    
    
    33,999Overage rents
    
    
    1,071
    
    
    
    1,173
    
    
    
    1,939
    
    
    
    2,300Other
    
    
    529
    
    
    
    438
    
    
    
    1,616
    
    
    
    1,516Total revenues
    
    
    40,221
    
    
    
    39,412
    
    
    
    119,097
    
    
    
    116,626Expenses:Real estate taxes
    
    
    2,685
    
    
    
    2,915
    
    
    
    8,007
    
    
    
    8,773Repairs and maintenance
    
    
    2,202
    
    
    
    1,948
    
    
    
    6,456
    
    
    
    5,765Marketing
    
    
    867
    
    
    
    951
    
    
    
    2,709
    
    
    
    2,832Other property operating costs
    
    
    4,951
    
    
    
    4,713
    
    
    
    14,502
    
    
    
    13,694Provision for doubtful accounts
    
    
    386
    
    
    
    13
    
    
    
    792
    
    
    
    241Property management and other costs
    
    
    2,262
    
    
    
    2,212
    
    
    
    6,790
    
    
    
    6,554General and administrative
    
    
    35
    
    
    
    68
    
    
    
    144
    
    
    
    151Depreciation and amortization
    
    
    6,946
    
    
    
    6,341
    
    
    
    21,163
    
    
    
    20,099Total expenses
    
    
    20,334
    
    
    
    19,161
    
    
    
    60,563
    
    
    
    58,109Operating income
    
    
    19,887
    
    
    
    20,251
    
    
    
    58,534
    
    
    
    58,517Interest income
    
    
    145
    
    
    
    195
    
    
    
    576
    
    
    
    623Interest expense
    
    
    (11,676
    )
    
    
    (11,093
    )
    
    
    (34,982
    )
    
    
    (32,072
    )Provision for income taxes
    
    
    (27
    )
    
    
    (213
    )
    
    
    (175
    )
    
    
    (618
    )Net income
    
    $
    8,329
    
    
    $
    9,140
    
    
    $
    23,953
    
    
    $
    26,450
 13




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 The Woodlands PartnershipSeptember 30,
    
    
    December 31,(In thousands)
    
    2007
    
    
    2006Assets:Land
    
    $
    14,674
    
    
    $
    13,828Buildings and equipment
    
    
    79,182
    
    
    
    91,485Less accumulated depreciation
    
    
    (18,894
    )
    
    
    (19,271
    )Developments in progress
    
    
    43,605
    
    
    
    6,939Investment land and land held for
development and sale
    
    
    275,343
    
    
    
    290,273Net investment in real estate
    
    
    393,910
    
    
    
    383,254Cash and cash equivalents
    
    
    8,968
    
    
    
    15,219Deferred expenses, net
    
    
    2,294
    
    
    
    2,782Prepaid expenses and other assets
    
    
    115,112
    
    
    
    97,978Total assets
    
    $
    520,284
    
    
    $
    499,233Liabilities and Owners Equity:Mortgages, notes and loans payable
    
    $
    326,261
    
    
    $
    321,724Accounts payable and accrued expenses
    
    
    81,613
    
    
    
    58,805Owners equity
    
    
    112,410
    
    
    
    118,704Total liabilities and owners equity
    
    $
    520,284
    
    
    $
    499,233
 The Woodlands Partnership
    
    
    The Woodlands PartnershipThree Months Ended September 30,
    
    
    Nine Months Ended September 30,(In thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Revenues:Minimum rents
    
    $
    129
    
    
    $
    315
    
    
    $
    580
    
    
    $
    1,033Land sales
    
    
    63,879
    
    
    
    41,053
    
    
    
    132,492
    
    
    
    113,529Other
    
    
    8,004
    
    
    
    8,727
    
    
    
    19,270
    
    
    
    26,353Total revenues
    
    
    72,012
    
    
    
    50,095
    
    
    
    152,342
    
    
    
    140,915Expenses:Real estate taxes
    
    
    3
    
    
    
    131
    
    
    
    107
    
    
    
    321Repairs and maintenance
    
    
    37
    
    
    
    109
    
    
    
    222
    
    
    
    241Other property operating costs
    
    
    8,959
    
    
    
    9,466
    
    
    
    30,638
    
    
    
    22,951Land sales operations
    
    
    35,064
    
    
    
    26,257
    
    
    
    71,184
    
    
    
    76,413Depreciation and amortization
    
    
    967
    
    
    
    1,560
    
    
    
    3,014
    
    
    
    3,845Total expenses
    
    
    45,030
    
    
    
    37,523
    
    
    
    105,165
    
    
    
    103,771Operating income
    
    
    26,982
    
    
    
    12,572
    
    
    
    47,177
    
    
    
    37,144Interest income
    
    
    174
    
    
    
    85
    
    
    
    414
    
    
    
    226Interest expense
    
    
    (2,660
    )
    
    
    414
    
    
    
    (6,569
    )
    
    
    (4,289
    )Provision for income taxes
    
    
    (524
    )
    
    
    
    
    
    
    (914
    )
    
    
    Net income
    
    $
    23,972
    
    
    $
    13,071
    
    
    $
    40,108
    
    
    $
    33,081
 14




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 
 NOTE 4  MORTGAGES, NOTES AND LOANS PAYABLE
  September 30,
    
    
    December 31,(In thousands)
    
    2007
    
    
    2006Fixed-rate debt:Commercial mortgage-backed securities
    
    $
    868,765
    
    
    $
    868,765Other collateralized mortgages, notes and
loans payable
    
    
    15,960,324
    
    
    
    13,762,381Corporate and other unsecured term loans
    
    
    3,895,785
    
    
    
    2,386,334Total fixed-rate debt
    
    
    20,724,874
    
    
    
    17,017,480Variable-rate debt:Other collateralized mortgages, notes and
loans payable
    
    
    937,438
    
    
    
    388,287Credit facilities
    
    
    217,800
    
    
    
    60,000Corporate and other unsecured term loans
    
    
    2,193,700
    
    
    
    3,056,200Total variable-rate debt
    
    
    3,348,938
    
    
    
    3,504,487Total Mortgages, Notes and Loans Payable
    
    $
    24,073,812
    
    
    $
    20,521,967
   Exchangeable Senior Notes
     15




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##### 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
     16




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
    
 NOTE 6 STOCK-BASED COMPENSATION PLANS
 Incentive Stock Plans
  2007
    
    
    2006Weighted Average
    
    
    
    
    
    
    Weighted 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
    
    
    
    (562,226
    )
    
    
    24.92Exchanged for restricted stock
    
    
    
    
    
    
    
    
    
    
    (30,000
    )
    
    
    47.26Forfeited
    
    
    
    
    
    
    
    
    
    
    (145,000
    )
    
    
    43.10Expired
    
    
    
    
    
    
    
    
    
    
    (600
    )
    
    
    9.90Stock Options Outstanding at September 30
    
    
    3,053,600
    
    
    $
    51.20
    
    
    
    3,078,348
    
    
    $
    38.03
 17




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 Stock Options Outstanding
    
    
    Stock Options ExercisableWeighted Average
    
    
    
    
    
    
    
    
    
    
    Weighted AverageRemaining
    
    
    
    
    
    
    
    
    
    
    RemainingContractual Term
    
    
    Weighted Average
    
    
    
    
    
    
    Contractual Term
    
    
    Weighted AverageRange of Exercise Prices
    
    Shares
    
    
    (in years)
    
    
    Exercise Price
    
    
    Shares
    
    
    (in years)
    
    
    Exercise PriceIn-the-money stock options$0  $6.58
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $6.58  $13.16
    
    
    5,100
    
    
    
    2.6
    
    
    $
    9.99
    
    
    
    5,100
    
    
    
    2.6
    
    
    $
    9.99$13.16  $19.74
    
    
    73,000
    
    
    
    4.8
    
    
    
    15.41
    
    
    
    73,000
    
    
    
    4.8
    
    
    
    15.41$19.74  $26.32
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $26.32  $32.91
    
    
    197,000
    
    
    
    1.3
    
    
    
    30.94
    
    
    
    145,000
    
    
    
    1.3
    
    
    
    30.94$32.91  $39.49
    
    
    571,000
    
    
    
    2.4
    
    
    
    35.71
    
    
    
    351,000
    
    
    
    2.4
    
    
    
    35.57$39.49  $46.07
    
    
    50,000
    
    
    
    3.0
    
    
    
    44.59
    
    
    
    10,000
    
    
    
    3.0
    
    
    
    44.59$46.07  $52.65
    
    
    952,500
    
    
    
    3.5
    
    
    
    49.52
    
    
    
    522,500
    
    
    
    3.3
    
    
    
    50.01Anti-dilutive stock options$65.81
    
    
    1,205,000
    
    
    
    4.4
    
    
    
    65.81
    
    
    
    201,000
    
    
    
    4.4
    
    
    
    65.81Total
    
    
    3,053,600
    
    
    
    3.2
    
    
    $
    51.20
    
    
    
    1,307,600
    
    
    
    3.1
    
    
    $
    44.32Intrinsic value (in thousands)
    
    $
    22,063
    
    
    
    
    
    
    
    
    
    
    $
    14,613
    Restricted Stock
  2007
    
    
    2006Weighted Average
    
    
    
    
    
    
    Weighted AverageGrant Date Fair
    
    
    
    
    
    
    Grant Date FairShares
    
    
    Value
    
    
    Shares
    
    
    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
September 30
    
    
    136,496
    
    
    $
    59.75
    
    
    
    72,666
    
    
    $
    47.62Intrinsic value (in thousands)
    
    $
    7,319
    
    
    
    
    
    
    $
    3,463
  18




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GENERAL GROWTH PROPERTIES, INC.
 Threshold-Vesting Stock Options
   TSO Grant Year2007
    
    
    2006
    
    
    2005Granted prior to January 1
    
    
    
    
    
    
    1,400,000
    
    
    
    1,000,000Forefeited
    
    
    
    
    
    
    (84,773
    )
    
    
    (118,332
    )Vested and Exercised
    
    
    
    
    
    
    
    
    
    
    (723,920
    )TSOs outstanding at January 1, 2007
    
    
    
    
    
    
    1,315,227
    
    
    
    157,748Granted in 2007
    
    
    1,400,000
    
    
    
    
    
    
    
    Forfeited in 2007
(1)
    
    
    (65,670
    )
    
    
    (64,369
    )
    
    
    (1,334
    )Vested and Exercised in 2007
    
    
    
    
    
    
    
    
    
    
    (156,414
    )TSOs outstanding at September 30, 2007 (2)
    
    
    1,334,330
    
    
    
    1,250,858
    
    
    
    Intrinsic value (in thousands)
    
    $
    
    
    
    $
    3,940
    
    
    $
    Intrinsic value  options exercised (in thousands)
    
    
    
    
    
    
    
    
    
    
    2,848Fair value  options exercised (in thousands)
    
    
    
    
    
    
    
    
    
    
    596Cash received  options exercised (in thousands)
    
    
    
    
    
    
    
    
    
    
    5,539Exercise price (3)
    
    $
    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)
    
    
    4.4
    
    
    
    3.4
    
    
    
    
 
 (1)
    
    No TSO expirations for years presented.(2)
    
    TSOs outstanding at September 30, 2007 for the years 2004 and prior were 144,426.(3)
    
    A weighted average exercise price is not applicable as there is only one grant
date and issue per year.  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
 19




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GENERAL GROWTH PROPERTIES, INC.
   
 NOTE 7 OTHER ASSETS AND LIABILITIES
  September 30,
    
    
    December 31,(In thousands)
    
    2007
    
    
    2006Below-market ground leases
    
    $
    275,974
    
    
    $
    280,516Receivables  finance leases and bonds
    
    
    106,078
    
    
    
    118,459Security and escrow deposits
    
    
    84,164
    
    
    
    76,834Real estate tax stabilization agreement
    
    
    80,435
    
    
    
    83,378Special Improvement District receivable
    
    
    71,765
    
    
    
    64,819Prepaid expenses
    
    
    62,650
    
    
    
    37,528Above-market tenant leases
    
    
    59,183
    
    
    
    53,981Funded defined contribution plan assets
    
    
    15,216
    
    
    
    17,119Insurance recovery receivable
    
    
    12,279
    
    
    
    14,952Other
    
    
    61,044
    
    
    
    50,200Total Prepaid Expenses and Other Assets
    
    $
    828,788
    
    
    $
    797,786
  September 30,
    
    
    December 31,(In thousands)
    
    2007
    
    
    2006Accounts payable and accrued expenses (including net liabilities assumed or incurred in conjunction with
the acquisition of GGP/Homart I)
    
    $
    382,622
    
    
    $
    200,936Construction payables
    
    
    195,815
    
    
    
    188,038Below-market tenant leases
    
    
    152,687
    
    
    
    117,963Accrued interest
    
    
    151,652
    
    
    
    102,870Unrecognized tax benefits
    
    
    133,234
    
    
    
    Accrued real estate taxes
    
    
    108,096
    
    
    
    71,816Hughes participation payable
    
    
    80,068
    
    
    
    90,793Deferred gains/income
    
    
    69,224
    
    
    
    56,414Accrued payroll and other employee liabilities
    
    
    60,431
    
    
    
    58,372Tenant and other deposits
    
    
    40,030
    
    
    
    32,887Above-market ground leases
    
    
    15,607
    
    
    
    15,961Funded defined contribution plan liabilities
    
    
    15,216
    
    
    
    17,119Capital lease obligations
    
    
    14,557
    
    
    
    14,967Other
    
    
    71,692
    
    
    
    82,056Total Accounts Payable and Accrued Expenses
    
    $
    1,490,931
    
    
    $
    1,050,192
 
 20




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 NOTE 8 COMMITMENTS AND CONTINGENCIES
     Contingent Stock Agreement
    Oakwood Center and Riverwalk Marketplace Damages
  21




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GENERAL GROWTH PROPERTIES, INC.
   
 NOTE 9 RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
     22




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
   
 NOTE 10 SEGMENTS
  
    
    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
     23




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GENERAL GROWTH PROPERTIES, INC.
  Three Months Ended September 30, 2007Consolidated
    
    
    Unconsolidated
    
    
    Segment(In thousands)
    
    Properties
    
    
    Properties
    
    
    BasisRetail and OtherProperty revenues:Minimum rents
    
    $
    509,762
    
    
    $
    88,684
    
    
    $
    598,446Tenant recoveries
    
    
    231,395
    
    
    
    38,444
    
    
    
    269,839Overage rents
    
    
    16,122
    
    
    
    1,919
    
    
    
    18,041Other, including minority interest
    
    
    23,852
    
    
    
    16,787
    
    
    
    40,639Total property revenues
    
    
    781,131
    
    
    
    145,834
    
    
    
    926,965Property operating expenses:Real estate taxes
    
    
    68,054
    
    
    
    11,094
    
    
    
    79,148Repairs and maintenance
    
    
    52,624
    
    
    
    8,355
    
    
    
    60,979Marketing
    
    
    12,237
    
    
    
    2,378
    
    
    
    14,615Other property operating costs
    
    
    115,047
    
    
    
    34,561
    
    
    
    149,608Provision for doubtful accounts
    
    
    6,275
    
    
    
    693
    
    
    
    6,968Total property operating expenses
    
    
    254,237
    
    
    
    57,081
    
    
    
    311,318Retail and other net operating income
    
    
    526,894
    
    
    
    88,753
    
    
    
    615,647Master Planned CommunitiesLand sales
    
    
    54,188
    
    
    
    33,536
    
    
    
    87,724Land sales operations
    
    
    (43,159
    )
    
    
    (22,056
    )
    
    
    (65,215
    )Master Planned Communities net operating income
    
    
    11,029
    
    
    
    11,480
    
    
    
    22,509Real estate property net operating income
    
    $
    537,923
    
    
    $
    100,233
    
    
    $
    638,156
 Three Months Ended September 30, 2006Consolidated
    
    
    Unconsolidated
    
    
    Segment(In thousands)
    
    Properties
    
    
    Properties
    
    
    BasisRetail and OtherProperty revenues:Minimum rents
    
    $
    431,852
    
    
    $
    103,126
    
    
    $
    534,978Tenant recoveries
    
    
    199,494
    
    
    
    47,524
    
    
    
    247,018Overage rents
    
    
    14,744
    
    
    
    2,438
    
    
    
    17,182Other, including minority interest
    
    
    21,727
    
    
    
    18,242
    
    
    
    39,969Total property revenues
    
    
    667,817
    
    
    
    171,330
    
    
    
    839,147Property operating expenses:Real estate taxes
    
    
    57,227
    
    
    
    14,626
    
    
    
    71,853Repairs and maintenance
    
    
    49,122
    
    
    
    10,383
    
    
    
    59,505Marketing
    
    
    10,806
    
    
    
    2,738
    
    
    
    13,544Other property operating costs
    
    
    105,231
    
    
    
    38,287
    
    
    
    143,518Provision for doubtful accounts
    
    
    3,762
    
    
    
    349
    
    
    
    4,111Total property operating expenses
    
    
    226,148
    
    
    
    66,383
    
    
    
    292,531Retail and other net operating income
    
    
    441,669
    
    
    
    104,947
    
    
    
    546,616Master Planned CommunitiesLand sales
    
    
    47,768
    
    
    
    21,553
    
    
    
    69,321Land sales operations
    
    
    (36,360
    )
    
    
    (16,493
    )
    
    
    (52,853
    )Master Planned Communities net operating income
    
    
    11,408
    
    
    
    5,060
    
    
    
    16,468Real estate property net operating income
    
    $
    453,077
    
    
    $
    110,007
    
    
    $
    563,084
 24




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GENERAL GROWTH PROPERTIES, INC.
 Nine Months Ended September 30, 2007Consolidated
    
    
    Unconsolidated
    
    
    Segment(In thousands)
    
    Properties
    
    
    Properties
    
    
    BasisRetail and OtherProperty revenues:Minimum rents
    
    $
    1,389,235
    
    
    $
    309,903
    
    
    $
    1,699,138Tenant recoveries
    
    
    626,253
    
    
    
    134,388
    
    
    
    760,641Overage rents
    
    
    42,578
    
    
    
    5,852
    
    
    
    48,430Other, including minority interest
    
    
    72,296
    
    
    
    61,446
    
    
    
    133,742Total property revenues
    
    
    2,130,362
    
    
    
    511,589
    
    
    
    2,641,951Property operating expenses:Real estate taxes
    
    
    180,004
    
    
    
    40,615
    
    
    
    220,619Repairs and maintenance
    
    
    151,514
    
    
    
    30,116
    
    
    
    181,630Marketing
    
    
    35,530
    
    
    
    8,624
    
    
    
    44,154Other property operating costs
    
    
    312,692
    
    
    
    116,204
    
    
    
    428,896Provision for doubtful accounts
    
    
    10,066
    
    
    
    1,941
    
    
    
    12,007Total property operating expenses
    
    
    689,806
    
    
    
    197,500
    
    
    
    887,306Retail and other net operating income
    
    
    1,440,556
    
    
    
    314,089
    
    
    
    1,754,645Master Planned CommunitiesLand sales
    
    
    114,111
    
    
    
    69,558
    
    
    
    183,669Land sales operations
    
    
    (92,845
    )
    
    
    (44,517
    )
    
    
    (137,362
    )Master Planned Communities net operating income
    
    
    21,266
    
    
    
    25,041
    
    
    
    46,307Real estate property net operating income
    
    $
    1,461,822
    
    
    $
    339,130
    
    
    $
    1,800,952
 Nine Months Ended September 30, 2006Consolidated
    
    
    Unconsolidated
    
    
    Segment(In thousands)
    
    Properties
    
    
    Properties
    
    
    BasisRetail and OtherProperty revenues:Minimum rents
    
    $
    1,294,635
    
    
    $
    312,149
    
    
    $
    1,606,784Tenant recoveries
    
    
    575,670
    
    
    
    139,977
    
    
    
    715,647Overage rents
    
    
    37,573
    
    
    
    6,173
    
    
    
    43,746Other, including minority interest
    
    
    66,373
    
    
    
    59,340
    
    
    
    125,713Total property revenues
    
    
    1,974,251
    
    
    
    517,639
    
    
    
    2,491,890Property operating expenses:Real estate taxes
    
    
    166,742
    
    
    
    44,136
    
    
    
    210,878Repairs and maintenance
    
    
    144,939
    
    
    
    31,381
    
    
    
    176,320Marketing
    
    
    34,475
    
    
    
    9,203
    
    
    
    43,678Other property operating costs
    
    
    282,092
    
    
    
    110,766
    
    
    
    392,858Provision for doubtful accounts
    
    
    17,081
    
    
    
    1,257
    
    
    
    18,338Total property operating expenses
    
    
    645,329
    
    
    
    196,743
    
    
    
    842,072Retail and other net operating income
    
    
    1,328,922
    
    
    
    320,896
    
    
    
    1,649,818Master Planned CommunitiesLand sales
    
    
    218,023
    
    
    
    60,352
    
    
    
    278,375Land sales operations
    
    
    (160,059
    )
    
    
    (44,443
    )
    
    
    (204,502
    )Master Planned Communities net operating income
    
    
    57,964
    
    
    
    15,909
    
    
    
    73,873Real estate property net operating income
    
    $
    1,386,886
    
    
    $
    336,805
    
    
    $
    1,723,691
 25




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GENERAL GROWTH PROPERTIES, INC.
  Three Months Ended September 30,
    
    
    Nine Months Ended September 30,(In thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Real estate property net operating incomeSegment basis
    
    $
    638,156
    
    
    $
    563,084
    
    
    $
    1,800,952
    
    
    $
    1,723,691Unconsolidated Properties
    
    
    (100,233
    )
    
    
    (110,007
    )
    
    
    (339,130
    )
    
    
    (336,805
    )Consolidated Properties
    
    
    537,923
    
    
    
    453,077
    
    
    
    1,461,822
    
    
    
    1,386,886Management and other fees
    
    
    26,484
    
    
    
    26,768
    
    
    
    80,404
    
    
    
    80,130Property management and other costs
    
    
    (45,252
    )
    
    
    (43,895
    )
    
    
    (154,841
    )
    
    
    (133,525
    )General and administrative
    
    
    (4,631
    )
    
    
    (5,649
    )
    
    
    (20,929
    )
    
    
    (14,653
    )Depreciation and amortization
    
    
    (189,436
    )
    
    
    (168,624
    )
    
    
    (527,844
    )
    
    
    (512,342
    )Minority interest in NOI of
Consolidated Properties and
other
    
    
    2,455
    
    
    
    3,678
    
    
    
    8,254
    
    
    
    12,054Operating income
    
    
    327,543
    
    
    
    265,355
    
    
    
    846,866
    
    
    
    818,550Interest income
    
    
    2,027
    
    
    
    4,027
    
    
    
    7,004
    
    
    
    8,717Interest expense
    
    
    (310,868
    )
    
    
    (284,273
    )
    
    
    (854,764
    )
    
    
    (841,677
    )Benefit (provision) for income taxes
    
    
    (14,293
    )
    
    
    (11,225
    )
    
    
    256,451
    
    
    
    (52,120
    )Minority interest
    
    
    (1,269
    )
    
    
    (4,181
    )
    
    
    (60,771
    )
    
    
    (16,043
    )Equity in
income (loss) of Unconsolidated Real Estate Affiliates
    
    
    (12,499
    )
    
    
    22,136
    
    
    
    34,441
    
    
    
    71,613Net income (loss)
    
    $
    (9,359
    )
    
    $
    (8,161
    )
    
    $
    229,227
    
    
    $
    (10,960
    )
  Three Months Ended September 30,
    
    
    Nine Months Ended September 30,(In thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Segment basis total property revenues
    
    $
    926,965
    
    
    $
    839,147
    
    
    $
    2,641,951
    
    
    $
    2,491,890Unconsolidated segment revenues
    
    
    (145,834
    )
    
    
    (171,330
    )
    
    
    (511,589
    )
    
    
    (517,639
    )Consolidated land sales
    
    
    54,188
    
    
    
    47,768
    
    
    
    114,111
    
    
    
    218,023Management and other fees
    
    
    26,484
    
    
    
    26,768
    
    
    
    80,404
    
    
    
    80,130Minority interest in NOI of Consolidated Properties and other
    
    
    2,455
    
    
    
    3,678
    
    
    
    8,254
    
    
    
    12,054GAAP-basis consolidated total revenues
    
    $
    864,258
    
    
    $
    746,031
    
    
    $
    2,333,131
    
    
    $
    2,284,458
 
 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 or other contingent 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
    
    Future development, management and leasing fees
 26




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Overview
         27




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GENERAL GROWTH PROPERTIES, INC.
  Seasonality
  Critical Accounting Policies
  Results of Operations
 Three Months Ended September 30, 2007 and 2006
  28




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GENERAL GROWTH PROPERTIES, INC.
 Retail and Other Segment
  Three Months EndedSeptember 30,
    
    
    $ Increase
    
    
    % Increase(In thousands)
    
    2007
    
    
    2006
    
    
    (Decrease)
    
    
    (Decrease)Property revenues:Minimum rents
    
    $
    598,446
    
    
    $
    534,978
    
    
    $
    63,468
    
    
    
    11.9
    %Tenant recoveries
    
    
    269,839
    
    
    
    247,018
    
    
    
    22,821
    
    
    
    9.2Overage rents
    
    
    18,041
    
    
    
    17,182
    
    
    
    859
    
    
    
    5.0Other
    
    
    40,639
    
    
    
    39,969
    
    
    
    670
    
    
    
    1.7Total property revenues
    
    
    926,965
    
    
    
    839,147
    
    
    
    87,818
    
    
    
    10.5Property operating expenses:Real estate taxes
    
    
    79,148
    
    
    
    71,853
    
    
    
    7,295
    
    
    
    10.2Repairs and maintenance
    
    
    60,979
    
    
    
    59,505
    
    
    
    1,474
    
    
    
    2.5Marketing
    
    
    14,615
    
    
    
    13,544
    
    
    
    1,071
    
    
    
    7.9Other property operating costs
    
    
    149,608
    
    
    
    143,518
    
    
    
    6,090
    
    
    
    4.2Provision for doubtful accounts
    
    
    6,968
    
    
    
    4,111
    
    
    
    2,857
    
    
    
    69.5Total property operating expenses
    
    
    311,318
    
    
    
    292,531
    
    
    
    18,787
    
    
    
    6.4Real estate property net operating income
    
    $
    615,647
    
    
    $
    546,616
    
    
    $
    69,031
    
    
    
    12.6
    %
        29




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GENERAL GROWTH PROPERTIES, INC.
 Master Planned Communities Segment
 Three Months EndedSeptember 30,
    
    
    $ Increase
    
    
    % Increase(In thousands)
    
    2007
    
    
    2006
    
    
    (Decrease)
    
    
    (Decrease)Land sales
    
    $
    87,724
    
    
    $
    69,321
    
    
    $
    18,403
    
    
    
    26.5
    %Land sales operations
    
    
    (65,215
    )
    
    
    (52,853
    )
    
    
    12,362
    
    
    
    23.4Real estate property net operating income
    
    $
    22,509
    
    
    $
    16,468
    
    
    $
    6,041
    
    
    
    36.7
    %
   30




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
  Lot Sales and Pricing
    
    
    AcreageThree Months EndedSeptember 30,
    
    
    
    
    
    
    RemainingTotal Gross
    
    
    Saleable2007
    
    
    2006
    
    
    Acres
    
    
    Acres($ in thousands)Maryland Properties(1):Residential:Acres sold
    
    
    1.3
    
    
    
    
    
    
    
    
    
    
    
    226Average price/acre
    
    $
    283
    
    
    $
    Commercial:Acres sold
    
    
    1.0
    
    
    
    18.6
    
    
    
    
    
    
    
    347Average price/acre
    
    $
    964
    
    
    $
    724Acreage
    
    
    
    
    
    
    
    
    
    
    19,100
    
    
    
    573Summerlin(2):Residential:Acres sold
    
    
    20.4
    
    
    
    7.0
    
    
    
    
    
    
    
    5,486Average price/acre
    
    $
    1,216
    
    
    $
    1,879Commercial:Acres sold
    
    
    15.9
    
    
    
    2.5
    
    
    
    
    
    
    
    867Average price/acre
    
    $
    1,124
    
    
    $
    1,125Acreage
    
    
    
    
    
    
    
    
    
    
    22,500
    
    
    
    6,353Bridgeland:Residential:Acres sold
    
    
    17.0
    
    
    
    23.0
    
    
    
    
    
    
    
    6,033Average price/acre
    
    $
    246
    
    
    $
    222Commercial:Acres sold
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,261Average price/acre
    
    $
    
    
    
    $
    Acreage
    
    
    
    
    
    
    
    
    
    
    11,400
    
    
    
    7,294Woodlands(3):Residential:Acres sold
    
    
    96.0
    
    
    
    73.1
    
    
    
    
    
    
    
    1,505Average price/acre
    
    $
    341
    
    
    $
    404Commercial:Acres sold
    
    
    55.4
    
    
    
    25.7
    
    
    
    
    
    
    
    1,180Average price/acre
    
    $
    499
    
    
    $
    344Acreage
    
    
    
    
    
    
    
    
    
    
    28,400
    
    
    
    2,685
 
 (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




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GENERAL GROWTH PROPERTIES, INC.
 Certain Significant Consolidated Revenues and Expenses
  Three Months EndedSeptember 30,
    
    $ Increase
    
    % Increase(In thousands)
    
    2007
    
    2006
    
    (Decrease)
    
    (Decrease)Tenant rents
    
    $
    757,279
    
    
    $
    646,090
    
    
    $
    111,189
    
    
    
    17.2
    %Land sales
    
    
    54,188
    
    
    
    47,768
    
    
    
    6,420
    
    
    
    13.4Property operating expenses
    
    
    254,237
    
    
    
    226,148
    
    
    
    28,089
    
    
    
    12.4Land sales operations
    
    
    43,159
    
    
    
    36,360
    
    
    
    6,799
    
    
    
    18.7Management and other fees
    
    
    26,484
    
    
    
    26,768
    
    
    
    (284
    )
    
    
    (1.1
    )Property management and other costs
    
    
    45,252
    
    
    
    43,895
    
    
    
    1,357
    
    
    
    3.1General and administrative
    
    
    4,631
    
    
    
    5,649
    
    
    
    (1,018
    )
    
    
    (18.0
    )Depreciation and amortization
    
    
    189,436
    
    
    
    168,624
    
    
    
    20,812
    
    
    
    12.3Interest expense
    
    
    310,868
    
    
    
    284,273
    
    
    
    26,595
    
    
    
    9.4Provision for income taxes
    
    
    14,293
    
    
    
    11,225
    
    
    
    3,068
    
    
    
    27.3Equity in
income (loss) of Unconsolidated Real Estate Affiliates
    
    
    (12,499
    )
    
    
    22,136
    
    
    
    (34,635
    )
    
    
    (156.5
    )
      32




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 Nine Months Ended September 30, 2007 and 2006
  Retail and Other Segment
  Nine Months EndedSeptember 30,
    
    
    $ Increase
    
    
    % Increase(In thousands)
    
    2007
    
    
    2006
    
    
    (Decrease)
    
    
    (Decrease)Property revenues:Minimum rents
    
    $
    1,699,138
    
    
    $
    1,606,784
    
    
    $
    92,354
    
    
    
    5.7
    %Tenant recoveries
    
    
    760,641
    
    
    
    715,647
    
    
    
    44,994
    
    
    
    6.3Overage rents
    
    
    48,430
    
    
    
    43,746
    
    
    
    4,684
    
    
    
    10.7Other
    
    
    133,742
    
    
    
    125,713
    
    
    
    8,029
    
    
    
    6.4Total property revenues
    
    
    2,641,951
    
    
    
    2,491,890
    
    
    
    150,061
    
    
    
    6.0Property operating expenses:Real estate taxes
    
    
    220,619
    
    
    
    210,878
    
    
    
    9,741
    
    
    
    4.6Repairs and maintenance
    
    
    181,630
    
    
    
    176,320
    
    
    
    5,310
    
    
    
    3.0Marketing
    
    
    44,154
    
    
    
    43,678
    
    
    
    476
    
    
    
    1.1Other property operating costs
    
    
    428,896
    
    
    
    392,858
    
    
    
    36,038
    
    
    
    9.2Provision for doubtful accounts
    
    
    12,007
    
    
    
    18,338
    
    
    
    (6,331
    )
    
    
    (34.5
    )Total property operating expenses
    
    
    887,306
    
    
    
    842,072
    
    
    
    45,234
    
    
    
    5.4Real estate property net operating income
    
    $
    1,754,645
    
    
    $
    1,649,818
    
    
    $
    104,827
    
    
    
    6.4
    %
       33




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GENERAL GROWTH PROPERTIES, INC.
 Master Planned Communities Segment
 Nine Months EndedSeptember 30,
    
    
    $ Increase
    
    
    % Increase(In thousands)
    
    2007
    
    
    2006
    
    
    (Decrease)
    
    
    (Decrease)Land sales
    
    $
    183,669
    
    
    $
    278,375
    
    
    $
    (94,706
    )
    
    
    (34.0
    )%Land sales operations
    
    
    (137,362
    )
    
    
    (204,502
    )
    
    
    (67,140
    )
    
    
    (32.8
    )Real estate property net operating income
    
    $
    46,307
    
    
    $
    73,873
    
    
    $
    (27,566
    )
    
    
    (37.3
    )%
  34




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
  Lot Sales and PricingNine Months Ended
    
    AcreageSeptember 30,
    
    Total Gross
    
    Remaining Saleable2007
    
    2006
    
    Acres
    
    Acres($ in thousands)Maryland Properties(1):Residential:Acres sold
    
    
    2.0
    
    
    
    25.1
    
    
    
    
    
    
    
    226Average price/acre
    
    $
    1,146
    
    
    $
    1,043Commercial:Acres sold
    
    
    20.0
    
    
    
    20.3
    
    
    
    
    
    
    
    347Average price/acre
    
    $
    432
    
    
    $
    808Acreage
    
    
    
    
    
    
    
    
    
    
    19,100
    
    
    
    573Summerlin(2):Residential:Acres sold
    
    
    37.6
    
    
    
    115.0
    
    
    
    
    
    
    
    5,486Average price/acre
    
    $
    1,236
    
    
    $
    1,066Commercial:Acres sold
    
    
    20.8
    
    
    
    22.5
    
    
    
    
    
    
    
    867Average price/acre
    
    $
    1,108
    
    
    $
    251
    (3)Acreage
    
    
    
    
    
    
    
    
    
    
    22,500
    
    
    
    6,353Bridgeland:Residential:Acres sold
    
    
    58.5
    
    
    
    51.0
    
    
    
    
    
    
    
    6,033Average price/acre
    
    $
    247
    
    
    $
    217Commercial:Acres sold
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,261Average price/acre
    
    $
    
    
    
    $
    Acreage
    
    
    
    
    
    
    
    
    
    
    11,400
    
    
    
    7,294Woodlands(4):Residential:Acres sold
    
    
    239.5
    
    
    
    229.7
    
    
    
    
    
    
    
    1,505Average price/acre
    
    $
    361
    
    
    $
    369Commercial:Acres sold
    
    
    67.5
    
    
    
    43.7
    
    
    
    
    
    
    
    1,180Average price/acre
    
    $
    483
    
    
    $
    344Acreage
    
    
    
    
    
    
    
    
    
    
    28,400
    
    
    
    2,685
 
 (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




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GENERAL GROWTH PROPERTIES, INC.
 Certain Significant Consolidated Revenues and Expenses
  Nine Months EndedSeptember 30,
    
    $ Increase
    
    % Increase(In thousands)
    
    2007
    
    2006
    
    (Decrease)
    
    (Decrease)Tenant rents
    
    $
    2,058,066
    
    
    $
    1,907,878
    
    
    $
    150,188
    
    
    
    7.9
    %Land sales
    
    
    114,111
    
    
    
    218,023
    
    
    
    (103,912
    )
    
    
    (47.7
    )Property operating expenses
    
    
    689,806
    
    
    
    645,329
    
    
    
    44,477
    
    
    
    6.9Land sales operations
    
    
    92,845
    
    
    
    160,059
    
    
    
    (67,214
    )
    
    
    (42.0
    )Management and other fees
    
    
    80,404
    
    
    
    80,130
    
    
    
    274
    
    
    
    0.3Property management and other costs
    
    
    154,841
    
    
    
    133,525
    
    
    
    21,316
    
    
    
    16.0General and administrative
    
    
    20,929
    
    
    
    14,653
    
    
    
    6,276
    
    
    
    42.8Depreciation and amortization
    
    
    527,844
    
    
    
    512,342
    
    
    
    15,502
    
    
    
    3.0Interest expense
    
    
    854,764
    
    
    
    841,677
    
    
    
    13,087
    
    
    
    1.6(Benefit) provision for income taxes
    
    
    (256,451
    )
    
    
    52,120
    
    
    
    308,571
    
    
    
    592.0Equity in
income of Unconsolidated Real Estate Affiliates
    
    
    34,441
    
    
    
    71,613
    
    
    
    (37,172
    )
    
    
    (51.9
    )
       36




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 
 Liquidity and Capital Resources
 Cash Flows from Operating Activities
    Cash Flows from Investing Activities
    Cash Flows from Financing Activities
    37




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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.
 REIT Requirements
   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




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##### 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 Numberof SharesPurchased
    
    
    ApproximateDollar Valueof Shares thatas Part of
    
    
    May Yet beTotal
    
    
    Average
    
    
    Publicly
    
    
    PurchasedNumber of
    
    
    Price
    
    
    Announced
    
    
    Under theShares
    
    
    Paid
    
    
    Plans or
    
    
    Plans orPeriod
    
    Purchased
    
    
    per Share
    
    
    Programs
    
    
    Programs
    
    
    $
    
    
    
    
    
    
    
    $
    104,352,038Total
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    104,352,038
 
 (1)
    
    On August 3, 2005, we announced that our Board of Directors had authorized, effective
immediately, a $200 million per fiscal year common stock repurchase program. Stock repurchases
under this program may be made through open market or privately negotiated transactions through
2009, unless the program is earlier terminated. The repurchase program gives us the ability to
acquire some or all of the shares of common stock to be issued upon the exercise of certain
employee stock options and pursuant to the CSA. 
 ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 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
    
    Consolidated Financial Statements of TRCLP, a subsidiary of GGPLP.
  39




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##### Table of Contents



SIGNATURE
  GENERAL GROWTH PROPERTIES, INC.
(Registrant)Date:  November 9, 2007
    by:
    /s/: Bernard FreibaumBernard FreibaumExecutive Vice President and Chief Financial Officer
(On behalf of the Registrant and as Principal Accounting Officer) 40




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##### 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
    
    Consolidated Financial Statements of TRCLP, a subsidiary of GGPLP.
  41