##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-K


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|           |  | For the fiscal year ended December 31, 2005                                                 
|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.


(Exact name of registrant as specified in its charter)


|                                                                       |  |                                            
|---------------------------------------------------------------------- |  | -------------------------------------------
|Delaware                                                               |  | 42-1283895                                 
|(State or other jurisdiction of
    incorporation or organization)     |  | (I.R.S. Employer
    Identification Number)
|                                                                      
|110 N. Wacker Dr., Chicago, IL(Address of principal executive offices) |  | 60606(Zip Code)                            

(312)960-5000


(Registrants telephone number, including area code)


Securities Registered Pursuant to Section 12(b) of the
Act:


|                                |  |                                          
|------------------------------- |  | -----------------------------------------
|Title of Each Class             |  | Name of Each Exchange on Which Registered
|                                |  |                                          
|Common Stock, $.01 par value    |  | New York Stock Exchange                  
|Preferred Stock Purchase Rights |  | New York Stock Exchange                  

Securities Registered Pursuant to Section 12(g) of the
Act: None


þ o


o þ


þ o


S-K 10-K 10-K. o


12b-2 þ o o


12b-2 o þ






DOCUMENTS INCORPORATED BY REFERENCE












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##### 










GENERAL GROWTH PROPERTIES, INC.


Annual Report on
Form 10-K


December 31, 2005


TABLE OF CONTENTS


|                                                                                   |  |                                                                                                                      |      |             |    | 
|---------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------- | ---- | ----------- | -- | 
|Item No.                                                                           |  |                                                                                                                      |      | Page Number
|                                                                                   |  |                                                                                                                      |      |            
|Part I                                                                            
|1.                                                                                 |  | Business                                                                                                             |      |             | 1  | 
|1A.                                                                                |  | Risk Factors                                                                                                         |      |             | 7  | 
|1B.                                                                                |  | Unresolved Staff Comments                                                                                            |      |             | 16 | 
|2.                                                                                 |  | Properties                                                                                                           |      |             | 16 | 
|3.                                                                                 |  | Legal Proceedings                                                                                                    |      |             | 28 | 
|4.                                                                                 |  | Submission of Matters to a Vote of Security
    Holders                                                              |      |             | 29 | 
|Part II                                                                           
|5.                                                                                 |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |      |             | 29 | 
|6.                                                                                 |  | Selected Financial Data                                                                                              |      |             | 31 | 
|7.                                                                                 |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |      |             | 33 | 
|7A.                                                                                |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                       |      |             | 50 | 
|8.                                                                                 |  | Financial Statements and Supplementary
    Data                                                                      |      |             | 50 | 
|9.                                                                                 |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                             |      |             | 51 | 
|9A.                                                                                |  | Controls and Procedures                                                                                              |      |             | 51 | 
|9B.                                                                                |  | Other Information                                                                                                    |      |             | 55 | 
|Part III                                                                          
|10.                                                                                |  | Directors and Executive Officers of the
    Registrant                                                               |      |             | 55 | 
|11.                                                                                |  | Executive Compensation                                                                                               |      |             | 55 | 
|12.                                                                                |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                   |      |             | 55 | 
|13.                                                                                |  | Certain Relationships and Related
    Transactions                                                                   |      |             | 56 | 
|14.                                                                                |  | Principal Accounting Fees and Services                                                                               |      |             | 56 | 
|Part IV                                                                           
|15.                                                                                |  | Exhibits and Financial Statement
    Schedules                                                                       |      |             | 57 | 
|Signatures                                                                         |  |                                                                                                                      | 58   |            
|Consolidated Financial Statements                                                  |  |                                                                                                                      | F-1  |            
|Consolidated Financial Statement
    Schedule                                      |  |                                                                                                                      | F-55 |            
|Exhibit Index                                                                      |  |                                                                                                                      | S-1  |            
|Restated Certificate of Incorporation                                             
|Bylaws                                                                            
|Form of Common Stock Certificate                                                  
|Rights Agreement                                                                  
|Redemption Rights Agreement                                                       
|Redemption Rights Agreement                                                       
|Redemption Rights Agreement                                                       
|Redemption Rights Agreement                                                       
|Redemption Rights Agreement                                                       
|Redemption Rights Agreement                                                       
|Redemption Rights Agreement                                                       
|Form of Registration Rights Agreement                                             
|Rights Agreement                                                                  
|Amendment to Rights Agreement                                                     
|Letter Agreement Concerning Rights Agreement                                      
|Amended and Restated Agreement of Limited Partnership of the Operating Partnership
|Stockholders Agreement                                                            
|Amendment to Stockholders Agreement                                               
|Operating Agreement                                                               
|Amendment to the Operating Agreement                                              
|Letter Amendment to the Operating Agreement                                       
|Amendment to the Operating Agreement                                              
|Amended and Restated Operating Agreement                                          
|Amendment to Amended and Restated Operating Agreement                             
|Amendment to Amended and Restated Operating Agreement                             
|Form of Restricted Stock Agreement                                                
|List of Subsidiaries                                                              
|Consent                                                                           
|Consent                                                                           
|Certification                                                                     
|Certification                                                                     
|Certification                                                                     
|Certification                                                                     



i



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##### Table of Contents






PART I







|        |         
|------- | --------
|Item 1. | Business

10-K


Overview








|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Retail and Other. Through this segment of our business,
    we own, operate, manage, lease, acquire, develop, expand and
    finance rental properties. These properties, which are located
    primarily throughout the United States, include retail centers,
    office and industrial buildings and mixed-use and other
    properties. As of December 31, 2005, we had ownership
    interest in and/or management responsibility for a portfolio of
    over 200 regional shopping malls in 44 states. We also
    have ownership interest in certain joint ventures which own four
    retail properties (one under construction) in Brazil and one
    retail property under construction in Costa Rica.
| 
| | Master Planned Communities. Through this segment of our
    business, we develop and sell land in and around Columbia,
    Maryland; Summerlin, Nevada; and Houston, Texas for residential,
    commercial and other uses primarily in master planned
    communities. As of December 31, 2005, these communities,
    including land previously sold or not saleable, total over
    70,000 acres.                                                                                                                                                                                                                                                                                                             



|     |  |                                                                                                                                                                                                  
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|82%  |  | General Growth, as sole general partner                                                                                                                                                          
|16   |  | Limited partners that indirectly include family members of the
    original stockholders of the Company. Represented by common
    units of limited partnership interest (the Common
    Units)
|2    |  | Limited partners that include subsequent contributors of
    properties to the Operating Partnership which are also
    represented by Common Units.                                             
|     |  |                                                                                                                                                                                                  
|100% |  |                                                                                                                                                                                                  
|     |  |                                                                                                                                                                                                  





1



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##### Table of Contents





day-to


General Development of Business






|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Integrating and maximizing the operations of The Rouse Company
    LP (TRCLP, successor to The Rouse Company
    (TRC)) through proactive property management and
    leasing and through operating cost reductions. Specific actions
    to increase productivity of the TRCLP properties as well as our
    previously existing properties have included changing the tenant
    mix and adding vendor carts and kiosks. As the TRC Merger was
    primarily funded with new acquisition debt, an additional focus
    has been the management and refinancing of our current debt.    
| 
| | Development activities, including
    ground-up development
    and redevelopment and expansion of existing properties. For
    example, we substantially completed the
    ground-up development
    of The Shops at LaCantera in San Antonio, Texas in
    September 2005, and the renovation of Eastridge Mall in
    San Jose, California in November 2005. The expansion and
    renovation of a property may result in increased cash flows and
    net income as a result of increased customer traffic, trade area
    penetration and improved competitive position of the property.
| 
| | Growing our specialty leasing and alternative revenue business,
    which involves, among other things, the temporary leasing of
    carts, kiosks and available space to generate additional
    alternative rental revenue.                                                                                                                                                                                                                                                                                                                                                                

Financial Information About Industry Segments




Narrative Description of Business


Retail and Other Segment




Retail Portfolio






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day-to




|                                                      |  |                  |     |   |                        |                                                                                                         
|----------------------------------------------------- |  | ---------------- | --- | - | ---------------------- | --------------------------------------------------------------------------------------------------------
|Category                                              |  | % of Square Feet |     |   | Representative Tenants
|                                                      |  |                  |     |   |                       
|Specialty (includes personal services)                |  |                  | 22  | % |                        | Regis, Lenscrafters, Dollar Tree, Petland                                                               
|Family Apparel (includes unisex)                      |  |                  | 14  |   |                        | Gap, Old Navy, J Crew, Express, Anchor Blue, Banana Republic,
    Bachrach                              
|Womens Apparel                                       |  |                  | 14  |   |                        | Limited, Talbots, Chicos, Lane Bryant, Ann Taylor,
    Coldwater Creek, Victorias Secret             
|Teen Apparel                                          |  |                  | 9   |   |                        | PacSun, Charlotte Russe, Forever 21, d.e.m.o.,
    Hollister & Co., Aeropostale, Abercrombie &
    Fitch
|Shoes                                                 |  |                  | 8   |   |                        | FootLocker, Journeys, Champs, Finish Line, Payless
    Shoesource                                      
|Restaurants                                           |  |                  | 7   |   |                        | Ruby Tuesday, Applebees, Bennigans, Cheesecake
    Factory, Panera Bread, PF Changs China Bistro     
|Home Entertainment and Electronics                    |  |                  | 5   |   |                        | RadioShack, Ritz Camera, FYE, Sam Goody, Apple Computer                                                 
|Home Furnishings                                      |  |                  | 4   |   |                        | William-Sonoma, Select Comfort, Z Gallerie, Pottery Barn,
    Crate & Barrel                            
|Sporting Goods                                        |  |                  | 3   |   |                        | Scheels All Sports, MC Sports, Dicks Sporting Goods,
    Big 5 Sports                                 
|Gifts (includes stationery, cards, gifts and novelty) |  |                  | 3   |   |                        | Papyrus, Hallmark, Yankee Candle, Things Remembered, Spencer
    Gifts                                  
|Fast Food/ Food Court                                 |  |                  | 3   |   |                        | Arbys, Sbarro, McDonalds, Auntie Annes,
    Chick-Fil-A, Subway, Sonic                               
|Jewelry                                               |  |                  | 3   |   |                        | Zales Jewelers, Kay Jewelers, Piercing Pagoda, Helzberg Diamonds                                        
|Childrens Merchandise                                |  |                  | 2   |   |                        | Gymboree, Club Libby Lu, Build-A-Bear, The Childrens
    Place, GapKids/BabyGap                        
|Personal Care                                         |  |                  | 2   |   |                        | LOccitane, Sephora, Trade Secret, Bath & Body
    Works                                                
|Specialty Food (includes health, candy and coffee)    |  |                  | 1   |   |                        | GNC, Vitamin World, Starbucks, Godiva Chocolatier,
    Harry & David                                   
|                                                      |  |                  |     |   |                       
|TOTAL                                                 |  |                  | 100 | % |                        |                                                                                                         
|                                                      |  |                  |     |   |                       



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| |                                                     
| | ----------------------------------------------------
| | Other Office, Industrial and
    Mixed-Use buildings



|                                           |  |          |               |  |             |  |           | 
|------------------------------------------ |  | -------- | ------------- |  | ----------- |  | --------- | 
|Consolidated                               |  | Location |               |  | Square Feet | 
|                                           |  |          |               |  |             | 
|Columbia Industrial (6 buildings)          |  |          | Columbia, MD  |  |             |  | 306,000   | 
|Columbia Office (11 buildings)             |  |          | Columbia, MD  |  |             |  | 1,059,000 | 
|Summerlin Commercial (28 buildings)        |  |          | Summerlin, NV |  |             |  | 1,110,000 | 
|Woodlands Office (2 buildings)             |  |          | Houston, TX   |  |             |  | 267,000   | 
|Other Office Projects (6 buildings)        |  |          | Various       |  |             |  | 451,000   | 
|Unconsolidated                             |  |          |               |  |             |  |           | 
|                                           |  |          |               |  |             | 
|Woodlands Office/ Industrial (5 buildings) |  |          | Houston, TX   |  |             |  | 348,000   | 





| |                                   
| | ----------------------------------
| | Master Planned Communities Segment





|  |                                                                                                                                                                                                                                                                                                                                                                                                    
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Columbia is located in the Baltimore, Maryland/
    Washington, D.C. corridor and encompasses approximately
    18,000 acres. We own approximately 873 saleable acres
    of land in and around Columbia, including the adjacent
    communities of Emerson and Stone Lake.                                                                                                                        
| 
| | Summerlin is located immediately north and west of Las Vegas and
    encompasses approximately 22,500 acres. We own
    approximately 6,400 saleable acres of land in Summerlin.
    Revenues from the sale of land at Summerlin are subject to the
    Contingent Stock Agreement as more fully described in
    Note 14.                                                                         
| 
| | Bridgelands is located in the western Houston, Texas
    metropolitan area and encompasses approximately
    10,000 acres, approximately 7,300 acres of which is
    developable and saleable. TRC began development activities on
    Bridgelands in 2004 and we began selling portions of this land
    in 2006.                                                                                 
| 
| | We also own a 52.5% economic interest in The Woodlands, a master
    planned community in the Houston, Texas metropolitan area which
    contains approximately 27,000 acres. Assets owned by The
    Woodlands include approximately 6,900 saleable acres of land,
    three golf course complexes, a resort conference center, a
    hotel, interests in seven office buildings and other assets.
| 
| | Fairwood is located in Prince Georges County, Maryland.
    Fairwood contains over 1,000 acres of land. We own
    approximately 420 saleable acres of land at Fairwood.                                                                                                                                                                                                                          

Other




| |            
| | -----------
| | Competition



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|  |                                                                                                                                                                                                                                                                                                                         
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Subject to certain limitations, the funds necessary for cash
    acquisitions are available to us from a combination of sources,
    including mortgage or unsecured financing or the issuance of
    public or private debt or equity.                                                                                 
| 
| | We have the flexibility to pay for an acquisition with a
    combination of cash, General Growth equity securities or common
    or preferred units of limited partnership interest in the
    Operating Partnership. This last approach may create the
    opportunity for a tax-advantaged transaction for the seller.
| 
| | Our expertise allows us to evaluate proposed acquisitions of
    existing retail properties for their increased profit potential
    through expansion, remodeling, re-merchandising and more
    efficient management of the property.                                                                                 





|  |                                                                           
|- | --------------------------------------------------------------------------
| | Consumer demographics                                                     
| 
| | Quality, design and location of properties                                
| 
| | Total number and geographic distribution of properties                    
| 
| | Diversity of retailers and anchor tenants at shopping center
    locations
| 
| | Management and operational expertise                                      
| 
| | Rental rates                                                              









|  |                                                                             
|- | ----------------------------------------------------------------------------
| | The size and scope of our master planned communities                        
| 
| | The recreational and cultural amenities available within the
    communities
| 
| | The commercial centers in the communities                                   
| 
| | The relationships of the developer with homebuilders                        
| 
| | The proximity to major metropolitan areas                                   

5



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| |                      
| | ---------------------
| | Environmental Matters











Employees




Qualification as a Real Estate Investment Trust and
Taxability of Distributions




Available Information


www.generalgrowth.com 10-K, 10-Q, 8-K


6



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|         |             
|-------- | ------------
|Item 1A. | Risk Factors

Risks Related to Real Estate Investments




| |                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We invest primarily in regional mall shopping centers and
    other retail properties, which are subject to a number of
    significant risks which are beyond our control





|  |                                                                                                                                                                                                              
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | the regional and local economy, which may be negatively impacted
    by plant closings, industry slowdowns, adverse weather
    conditions, natural disasters and other factors;                             
| 
| | local real estate conditions, such as an oversupply of, or a
    reduction in demand for, retail space or retail goods, and the
    availability and creditworthiness of current and prospective
    tenants;
| 
| | perceptions by retailers or shoppers of the safety, convenience
    and attractiveness of the retail property;                                                                                               
| 
| | the convenience and quality of competing retail properties and
    other retailing options such as the Internet;                                                                                             
| 
| | changes in laws and regulations applicable to real property,
    including tax and zoning laws; and                                                                                                          
| 
| | changes in interest rate levels and the availability and cost of
    financing.                                                                                                                              





| |                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------
| | We depend on leasing space to tenants on economically
    favorable terms and collecting rent from these tenants, who may
    not be able to pay





| |                                                                                         
| | ----------------------------------------------------------------------------------------
| | Bankruptcy or store closures of tenants may decrease our
    revenues and available cash



7



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| |                                                                     
| | --------------------------------------------------------------------
| | We may be negatively impacted by department store
    consolidations





| |                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------
| | It may be difficult to buy and sell real estate quickly,
    and transfer restrictions apply to some of our properties



Risks Related to our Business




| |                                                                                    
| | -----------------------------------------------------------------------------------
| | We develop and expand properties, and this activity is
    subject to various risks





|  |                                                                                                                                                      
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | we may abandon development or expansion activities, which may
    result in additional cost recognition;                                             
| 
| | construction costs of a project may exceed original estimates or
    available financing, possibly making the project unfeasible or
    unprofitable;
| 
| | we may not be able to obtain financing or to refinance
    construction loans, which generally have full recourse to us;                             
| 
| | we may not be able to obtain zoning, occupancy or other required
    governmental permits and authorizations;                                        
| 
| | occupancy rates and rents at a completed project may not meet
    projections and, therefore, the project may not be
    profitable; and             
| 
| | we may need Anchor, mortgage lender and property partner
    approvals, if applicable, for expansion or redevelopment
    activities.                





| |                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------
| | If we are unable to manage our growth effectively, our
    financial condition and results of operations may be adversely
    affected



8



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| |                                                         
| | --------------------------------------------------------
| | We may incur costs to comply with environmental
    laws

clean-up




We are in a competitive business






We may not be able to obtain capital to make
investments




Some of our properties are subject to potential natural or
other disasters






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We are subject to risks that affect the general retail
environment






| |                                                                                     
| | ------------------------------------------------------------------------------------
| | Inflation may adversely affect our financial condition and
    results of operations





|  |                                                                                                                                                                                  
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | decreasing tenant sales as a result of decreased consumer
    spending which could result in lower overage rents;                                                                
| 
| | difficulty in replacing or renewing expiring leases with new
    leases at higher base and/or overage rents; and                                                                 
| 
| | an inability to receive reimbursement from our tenants for their
    share of certain operating expenses, including common area
    maintenance, real estate taxes and insurance.



Risks Related to our Organizational and Financial Structure
that Give Rise to Operational and Financial Risks




| |                                                                                                         
| | --------------------------------------------------------------------------------------------------------
| | As of December 31, 2005, we had material weaknesses
    in our internal control over financial reporting





| |                                                                                                       
| | ------------------------------------------------------------------------------------------------------
| | Our substantial indebtedness could adversely affect our
    financial health and operating flexibility



10



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|  |                                                                                                                                                                                                                             
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | limiting our ability to borrow additional amounts for working
    capital, capital expenditures, debt service requirements,
    execution of our growth strategy or other purposes;                                         
| 
| | limiting our ability to use operating cash flow in other areas
    of our business because we must dedicate a substantial portion
    of these funds to service the debt;                                                   
| 
| | increasing our vulnerability to general adverse economic and
    industry conditions, including increases in interest rates,
    particularly given our substantial indebtedness which bears
    interest at variable rates;
| 
| | limiting our ability to capitalize on business opportunities,
    including the acquisition of additional properties, and to react
    to competitive pressures and adverse changes in government
    regulation;           
| 
| | limiting our ability or increasing the costs to refinance
    indebtedness; and                                                                                                                                             
| 
| | limiting our ability to enter into marketing and hedging
    transactions by reducing the number of counterparties with whom
    we can enter into such transactions as well as the volume of
    those transactions.       



| |                                                                                                                                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The terms of the 2006 Credit Facility (obtained in
    February 2006 (Note 6)) and certain other debt, contain
    covenants and events of default that may limit our flexibility
    and prevent us from taking certain actions or result in the
    acceleration of our obligations under such debt





|  |                                    
|- | -----------------------------------
| | incur indebtedness;                
| 
| | create liens on assets;            
| 
| | sell assets;                       
| 
| | make capital expenditures; and     
| 
| | engage in mergers and acquisitions.







| |                                                            
| | -----------------------------------------------------------
| | We have a substantial amount of short-term
    indebtedness



11



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##### Table of Contents





| |                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------
| | We share control of some of our properties with other
    investors and may have conflicts of interest with those
    investors







| |                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------
| | Bankruptcy of joint venture partners could impose delays
    and costs on us with respect to the jointly owned retail
    properties





| |                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Payments by our direct and indirect subsidiaries of
    dividends and distributions to us may be adversely affected by
    prior payments to these subsidiaries creditors and
    preferred security holders








| |                                                           
| | ----------------------------------------------------------
| | We might fail to qualify or remain qualified as a
    REIT



12



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| |                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------
| | An ownership limit and certain anti-takeover defenses and
    applicable law may hinder any attempt to acquire us

The Ownership Limit.


Selected Provisions of our Charter Documents.




|  |                                                                                                          
|- | ---------------------------------------------------------------------------------------------------------
| | to cause us to issue additional authorized but unissued shares
    of common stock or preferred stock;   
| 
| | to classify or reclassify, in one or more series, any unissued
    preferred stock; and                  
| 
| | to set the preferences, rights and other terms of any classified
    or reclassified stock that we issue.

Stockholder Rights Plan.


Selected Provisions of Delaware Law.




|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | before that person became an interested stockholder, our board
    of directors approved the transaction in which the interested
    stockholder became an interested stockholder or approved the
    business combination;                                                                                                                                                                                                                                
| 
| | upon completion of the transaction that resulted in the
    interested stockholder becoming an interested stockholder, the
    interested stockholder owned at least 85% of our voting stock
    outstanding at the time the transaction commenced, excluding for
    purposes of determining the voting stock outstanding (but not
    the outstanding voting stock owned by the interested
    stockholder) stock held by directors who are also officers

13



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|  |                                                                                                                                                                                                                                                                                                                                                       
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  | of the company and by employee stock plans that do not provide
    employees with the right to determine confidentially whether
    shares held under the plan will be tendered in a tender or
    exchange offer; or                                                                                                                                 
| 
| | following the transaction in which that person became an
    interested stockholder, the business combination is approved by
    our board of directors and authorized at a meeting of
    stockholders by the affirmative vote of the holders of at least
    two-thirds of our outstanding voting stock not owned by the
    interested stockholder.







| |                                                                       
| | ----------------------------------------------------------------------
| | We are impacted by tax-related obligations to some of our
    partners





Risks Related to the TRC Merger




| |                                                                       
| | ----------------------------------------------------------------------
| | We may not realize the full anticipated benefits of the
    TRC Merger





| |                                                                         
| | ------------------------------------------------------------------------
| | Limitations on the sale of the TRCLP assets may affect our
    cash flow





| |                                                                                                    
| | ---------------------------------------------------------------------------------------------------
| | We have significant obligations under a Contingent Stock
    Agreement we assumed in the TRC Merger



14



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Risks Related to our Common Stock




| |                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our common stock price may be volatile, and consequently
    investors may not be able to resell their common stock at or
    above their purchase price





|  |                                                                                                                                                                                                                                   
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | our historical and anticipated quarterly and annual operating
    results;                                                                                                                                                        
| 
| | variations between our actual results and analyst and investor
    expectations or changes in financial estimates and
    recommendations by securities analysts;                                                                 
| 
| | the performance and prospects of our industry;                                                                                                                                                                                    
| 
| | the depth and liquidity of the market for our common stock;                                                                                                                                                                       
| 
| | investor perception of us and the industry in which we operate;                                                                                                                                                                   
| 
| | domestic and international economic conditions;                                                                                                                                                                                   
| 
| | the extent of institutional investor interest in us;                                                                                                                                                                              
| 
| | the reputation of REITs generally and the attractiveness of
    their equity securities in comparison to other equity
    securities, including securities issued by other real estate
    companies, and fixed income securities;
| 
| | our financial condition and performance; and                                                                                                                                                                                      
| 
| | general market conditions and trends.                                                                                                                                                                                             





| |                                                                 
| | ----------------------------------------------------------------
| | Future sales of our common stock may depress our stock
    price





| |                                                                                     
| | ------------------------------------------------------------------------------------
| | Increases in market interest rates may hurt the market
    price of our common stock



15



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|         |                          
|-------- | -------------------------
|Item 1B. | Unresolved Staff Comments








|        |           
|------- | ----------
|Item 2. | Properties





Consolidated Retail Properties


|                       |  |                           |  |           |  |              |         |  |                             |                                                                       |           |  |     | 
|---------------------- |  | ------------------------- |  | --------- |  | ------------ | ------- |  | --------------------------- | --------------------------------------------------------------------- | --------- |  | --- | 
|                       |  |                           |  | GLA       |  |              |         |  |                            
|                       |  |                           |  |           |  |              |         |  |                            
|                       |  |                           |  |           |  | Mall and     |         |  |                             |                                                                       | Anchor    | 
|Name of Center         |  | Location(1)               |  | Total     |  | Freestanding |         |  | Anchors/Significant Tenants |                                                                       | Vacancies | 
|                       |  |                           |  |           |  |              |         |  |                             |                                                                       |           | 
|Ala Moana Center       |  | Honolulu, HI              |  | 1,748,761 |  |              | 801,973 |  |                             | Barnes & Noble, Macys, Neiman Marcus, Old Navy,
    Sears, Shirokiya |           |  |    | 
|Alameda Plaza          |  | Pocatello, ID             |  | 190,341   |  |              | 190,341 |  |                             |                                                                      |           |  | 2   | 
|Anaheim Crossing(2)(3) |  | Anaheim, CA               |  | 92,170    |  |              | 92,170  |  |                             | N/A                                                                   |           |  | N/A | 
|Animas Valley Mall     |  | Farmington, NM            |  | 480,217   |  |              | 230,752 |  |                             | Allen Theatres, Dillards, JCPenney, Ross Dress for Less,
    Sears   |           |  |    | 
|Apache Mall(2)         |  | Rochester, MN             |  | 755,491   |  |              | 272,499 |  |                             | Herbergers, JCPenney, Marshall Fields, Sears                        |           |  |    | 
|Arizona Center(2)      |  | Phoenix, AZ               |  | 168,429   |  |              | 82,426  |  |                             | AMC Theatres                                                          |           |  |    | 
|Augusta Mall(2)        |  | Augusta, GA               |  | 1,066,486 |  |              | 317,263 |  |                             | Dillards, JCPenney, Macys, Macys Home Store,
    Sears             |           |  |    | 
|Austin Bluffs Plaza    |  | Colorado Springs, CO      |  | 108,902   |  |              | 108,902 |  |                             | Longs Drugs                                                           |           |  | 1   | 
|Bailey Hills Village   |  | Eugene, OR                |  | 11,887    |  |              | 11,887  |  |                             | N/A                                                                   |           |  | N/A | 
|Baskin Robbins         |  | Idaho Falls, ID           |  | 1,814     |  |              | 1,814   |  |                             | N/A                                                                   |           |  | N/A | 
|Baybrook Mall          |  | Friendswood (Houston), TX |  | 1,244,762 |  |              | 344,153 |  |                             | Dillards, Foleys, JCPenney, Mervyns, Sears                         |           |  |    | 
|Bayshore Mall(2)       |  | Eureka, CA                |  | 624,297   |  |              | 404,039 |  |                             | Gottschalks, Mervyns, Sears                                          |           |  |    | 
|Bayside Marketplace(2) |  | Miami, FL                 |  | 225,446   |  |              | 225,446 |  |                             | N/A                                                                   |           |  | N/A | 
|Beachwood Place        |  | Beachwood, OH             |  | 912,105   |  |              | 332,525 |  |                             | Dillards, Nordstrom, Saks Fifth Avenue                               |           |  |    | 
|Bellis Fair            |  | Bellingham (Seattle), WA  |  | 774,579   |  |              | 355,649 |  |                             | JCPenney, Macys, Mervyns, Sears, Target                             |           |  |    | 
|Birchwood Mall         |  | Port Huron (Detroit), MI  |  | 793,869   |  |              | 337,640 |  |                             | GKC Theaters, JCPenney, Marshall Fields, Sears, Target,
    Younkers |           |  |    | 
|Boise Plaza            |  | Boise, ID                 |  | 114,404   |  |              | 114,404 |  |                             | Albertsons, Fred Meyer, Burlington Coat                              |           |  |    | 

16



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|                            |  |                                |  |           |  |              |         |  |                             |                                                                       |           |  |     | 
|--------------------------- |  | ------------------------------ |  | --------- |  | ------------ | ------- |  | --------------------------- | --------------------------------------------------------------------- | --------- |  | --- | 
|                            |  |                                |  | GLA       |  |              |         |  |                            
|                            |  |                                |  |           |  |              |         |  |                            
|                            |  |                                |  |           |  | Mall and     |         |  |                             |                                                                       | Anchor    | 
|Name of Center              |  | Location(1)                    |  | Total     |  | Freestanding |         |  | Anchors/Significant Tenants |                                                                       | Vacancies | 
|                            |  |                                |  |           |  |              |         |  |                             |                                                                       |           | 
|Boise Towne Plaza(3)        |  | Boise, ID                      |  | 116,677   |  |              | 116,677 |  |                             | Circuit City, Linens N Things, Old Navy                              |           |  |    | 
|Boise Towne Square          |  | Boise, ID                      |  | 1,143,302 |  |              | 474,522 |  |                             | Dillards, JCPenney, Macys, Mervyns, Sears                          |           |  |    | 
|The Boulevard Mall          |  | Las Vegas, NV                  |  | 1,178,595 |  |              | 390,559 |  |                             | Dillards, JCPenney, Macys, Sears                                    |           |  |    | 
|Burlington Town Center(3)   |  | Burlington, VT                 |  | 311,092   |  |              | 164,339 |  |                             | Filenes                                                              |           |  |    | 
|Cache Valley Mall           |  | Logan, UT                      |  | 322,578   |  |              | 176,746 |  |                             | Dillards, Dillards Mens & Home,
    JCPenney                       |           |  |    | 
|Cache Valley Marketplace    |  | Logan, UT                      |  | 156,996   |  |              | 156,996 |  |                             | Home Depot, Olive Garden, T.J. Maxx                                   |           |  |    | 
|Canyon Point Village Center |  | Las Vegas, NV                  |  | 65,600    |  |              | 65,600  |  |                             | N/A                                                                   |           |  | N/A | 
|Capital Mall                |  | Jefferson City, MO             |  | 512,852   |  |              | 279,775 |  |                             | Dillards, JCPenney, Sears                                            |           |  |    | 
|Century Plaza               |  | Birmingham, AL                 |  | 738,831   |  |              | 252,875 |  |                             | JCPenney, McRaes, Sears                                              |           |  | 1   | 
|Chapel Hills Mall           |  | Colorado Springs, CO           |  | 1,174,371 |  |              | 428,932 |  |                             | Dillards, Foleys, JCPenney, Kmart, Mervyns,
    Sears              |           |  |    | 
|Chico Mall                  |  | Chico, CA                      |  | 502,079   |  |              | 179,951 |  |                             | Gottschalks, JCPenney, Sears                                          |           |  | 1   | 
|Coastland Center            |  | Naples, FL                     |  | 933,644   |  |              | 343,254 |  |                             | Dillards, JCPenney, Macys, Sears                                    |           |  |    | 
|Collin Creek                |  | Plano, TX                      |  | 1,113,307 |  |              | 323,224 |  |                             | Dillards, Foleys, JCPenney, Mervyns, Sears                         |           |  |    | 
|Colony Square Mall          |  | Zanesville, OH                 |  | 536,662   |  |              | 289,884 |  |                             | Colony Square Cinema 10, Elder-Beerman, JCPenney, Sears               |           |  |    | 
|Columbia Mall               |  | Columbia, MO                   |  | 750,085   |  |              | 334,641 |  |                             | Dillards, JCPenney, Sears, Target                                    |           |  |    | 
|Coral Ridge Mall            |  | Coralville (Iowa City), IA     |  | 1,075,349 |  |              | 420,184 |  |                             | Dillards, JCPenney, Scheels All Sports, Sears,
    Target, Younkers |           |  |    | 
|Coronado Center(2)          |  | Albuquerque, NM                |  | 1,152,708 |  |              | 378,379 |  |                             | Barnes & Noble, Foleys, JCPenney, Macys,
    Mervyns, Sears        |           |  |    | 
|Cottonwood Mall             |  | Salt Lake City, UT             |  | 734,018   |  |              | 354,510 |  |                             | JCPenney, Meier & Frank                                               |           |  |    | 
|Cottonwood Square(2)        |  | Salt Lake City, UT             |  | 77,079    |  |              | 77,079  |  |                             |                                                                      |           |  | 1   | 
|Country Hills Plaza         |  | Ogden, UT                      |  | 140,097   |  |              | 140,097 |  |                             | McKay-Dee Hospital Center, Smiths Food King                          |           |  |    | 
|The Crossroads              |  | Portage (Kalamazoo), MI        |  | 769,339   |  |              | 266,379 |  |                             | JCPenney, Marshall Fields, Mervyns, Sears                           |           |  |    | 
|Crossroads Center           |  | St. Cloud, MN                  |  | 897,330   |  |              | 291,650 |  |                             | JCPenney, Marshall Fields, Scheels All Sports,
    Sears, Target    |           |  |    | 
|Cumberland Mall             |  | Atlanta, GA                    |  | 816,964   |  |              | 316,389 |  |                             | Macys, Sears                                                         |           |  |    | 
|Division Crossing           |  | Portland, OR                   |  | 100,760   |  |              | 100,760 |  |                             | Rite Aid, Safeway                                                     |           |  |    | 
|Eagle Ridge Mall            |  | Lake Wales (Orlando), FL       |  | 646,730   |  |              | 251,275 |  |                             | Dillards, JCPenney, Recreation Station, Regal Cinemas,
    Sears     |           |  |    | 
|Eastridge Mall              |  | Casper, WY                     |  | 568,810   |  |              | 279,014 |  |                             | JCPenney, Macys, Sears, Target                                       |           |  |    | 
|Eden Prairie Center         |  | Eden Prairie (Minneapolis), MN |  | 988,788   |  |              | 309,207 |  |                             | AMC Theatres, Kohls, Sears, Target, Von Maur                         |           |  |    | 

17



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|                                 |  |                                    |  |           |  |              |         |  |                             |                                                                                                                                                                   |           |  |     | 
|-------------------------------- |  | ---------------------------------- |  | --------- |  | ------------ | ------- |  | --------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------- |  | --- | 
|                                 |  |                                    |  | GLA       |  |              |         |  |                            
|                                 |  |                                    |  |           |  |              |         |  |                            
|                                 |  |                                    |  |           |  | Mall and     |         |  |                             |                                                                                                                                                                   | Anchor    | 
|Name of Center                   |  | Location(1)                        |  | Total     |  | Freestanding |         |  | Anchors/Significant Tenants |                                                                                                                                                                   | Vacancies | 
|                                 |  |                                    |  |           |  |              |         |  |                             |                                                                                                                                                                   |           | 
|Fallbrook Center                 |  | West Hills (Los Angeles), CA       |  | 904,125   |  |              | 269,126 |  |                             | DSW Shoe Warehouse, Home Depot, Kohls, Laemmle Theatres,
    Linens N Things, Mervyns, Ross Dress
    for Less, Sport Chalet, Target                           |           |  |    | 
|Faneuil Hall Marketplace(2)      |  | Boston, MA                         |  | 203,313   |  |              | 203,313 |  |                             | N/A                                                                                                                                                               |           |  | N/A | 
|Fashion Place(2)                 |  | Murray, UT                         |  | 876,472   |  |              | 310,499 |  |                             | Dillards, Nordstrom, Sears                                                                                                                                       |           |  |    | 
|Fashion Show                     |  | Las Vegas, NV                      |  | 1,896,194 |  |              | 536,303 |  |                             | Bloomingdales Home, Dillards, Macys, Neiman
    Marcus, Nordstrom, Robinsons-May, Saks Fifth Avenue                                                            |           |  | 1   | 
|Foothills Mall                   |  | Fort Collins, CO                   |  | 802,431   |  |              | 462,334 |  |                             | Foleys, JCPenney, Mervyns, Sears                                                                                                                                |           |  |    | 
|Fort Union(2)                    |  | Midvale
    (Salt Lake City), UT   |  | 32,968    |  |              | 32,968  |  |                             | N/A                                                                                                                                                               |           |  | N/A | 
|Four Seasons Town Centre         |  | Greensboro, NC                     |  | 1,141,375 |  |              | 499,359 |  |                             | Belk, Dillards, JCPenney                                                                                                                                         |           |  |    | 
|Fox River Mall                   |  | Appleton, WI                       |  | 1,219,006 |  |              | 530,369 |  |                             | Cost Plus World Market, Davids Bridal, DSW Shoe Warehouse,
    Factory Card Outlet, JCPenney, Linens N-Things, Marshall
    Fields, Scheels All Sports, Sears |           |  |     | 
|Fremont Plaza(2)                 |  | Las Vegas, NV                      |  | 102,991   |  |              | 102,991 |  |                             | Sav-On Drugs                                                                                                                                                      |           |  | 1   | 
|The Gallery at Harborplace(2)    |  | Baltimore, MD                      |  | 130,158   |  |              | 130,158 |  |                             | N/A                                                                                                                                                               |           |  | N/A | 
|Gateway Crossing Shopping Center |  | Bountiful
    (Salt Lake City), UT |  | 183,526   |  |              | 183,526 |  |                             | All A Dollar, Barnes & Noble, T.J. Maxx                                                                                                                           |           |  |    | 
|Gateway Mall                     |  | Springfield, OR                    |  | 725,764   |  |              | 342,558 |  |                             | 24 Hour Fitness, Movies 12, Ross Dress for Less, Sears,
    Target, Kohls                                                                                        |           |  | 1   | 
|Glenbrook Square                 |  | Fort Wayne, IN                     |  | 1,213,456 |  |              | 436,586 |  |                             | JCPenney, L.S. Ayres, Sears                                                                                                                                       |           |  | 1   | 
|Governors Square(2)             |  | Tallahassee, FL                    |  | 1,023,031 |  |              | 331,426 |  |                             | Dillards, JCPenney, Macys, Sears                                                                                                                                |           |  |    | 
|The Grand Canal Shoppes          |  | Las Vegas, NV                      |  | 509,443   |  |              | 509,443 |  |                             | N/A                                                                                                                                                               |           |  | N/A | 
|Grand Teton Mall                 |  | Idaho Falls, ID                    |  | 542,539   |  |              | 218,614 |  |                             | Dillards, JCPenney, Macys, Sears                                                                                                                                |           |  |    | 
|Grand Teton Plaza                |  | Idaho Falls, ID                    |  | 93,274    |  |              | 93,274  |  |                             | Best Buy, Linens N Things, Petsmart, Ross Dress For
    Less                                                                                                     |           |  |    | 
|Grand Traverse Mall              |  | Traverse City, MI                  |  | 593,708   |  |              | 280,317 |  |                             | GKC Theaters, JCPenney, Marshall Fields, Target                                                                                                                  |           |  |    | 
|Greenwood Mall                   |  | Bowling Green, KY                  |  | 851,381   |  |              | 422,328 |  |                             | Dillards, Famous Barr, JCPenney, Sears                                                                                                                           |           |  |    | 
|Halsey Crossing(2)               |  | Gresham (Portland), OR             |  | 99,438    |  |              | 99,438  |  |                             | Safeway                                                                                                                                                           |           |  |    | 
|Harborplace(2)                   |  | Baltimore, MD                      |  | 143,928   |  |              | 143,928 |  |                             | N/A                                                                                                                                                               |           |  | N/A | 
|Hulen Mall                       |  | Fort Worth, TX                     |  | 940,324   |  |              | 343,754 |  |                             | Dillards, Foleys, Sears                                                                                                                                         |           |  |    | 
|Jordan Creek Town Center         |  | West Des Moines, IA                |  | 1,345,111 |  |              | 803,412 |  |                             | Century Theatres, Dillards, Scheels All Sports,
    Younkers                                                                                                    |           |  |    | 
|Knollwood Mall                   |  | St. Louis Park (Minneapolis), MN   |  | 465,533   |  |              | 169,310 |  |                             | Cub Foods, Kohls, T.J. Maxx                                                                                                                                      |           |  | 1   | 

18



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|                             |  |                                   |  |           |  |              |         |  |                             |                                                                                                                              |           |  |     | 
|---------------------------- |  | --------------------------------- |  | --------- |  | ------------ | ------- |  | --------------------------- | ---------------------------------------------------------------------------------------------------------------------------- | --------- |  | --- | 
|                             |  |                                   |  | GLA       |  |              |         |  |                            
|                             |  |                                   |  |           |  |              |         |  |                            
|                             |  |                                   |  |           |  | Mall and     |         |  |                             |                                                                                                                              | Anchor    | 
|Name of Center               |  | Location(1)                       |  | Total     |  | Freestanding |         |  | Anchors/Significant Tenants |                                                                                                                              | Vacancies | 
|                             |  |                                   |  |           |  |              |         |  |                             |                                                                                                                              |           | 
|Lakeside Mall                |  | Sterling Heights, MI              |  | 1,505,619 |  |              | 483,021 |  |                             | JCPenney, Lord & Taylor, Marshall Fields,
    Marshall Fields Mens & Home, Sears                                           |           |  |    | 
|Lakeview Square              |  | Battle Creek, MI                  |  | 545,654   |  |              | 254,061 |  |                             | JCPenney, Marshall Fields, Sears                                                                                            |           |  |    | 
|Landmark Mall(2)             |  | Alexandria (Washington, D.C.), VA |  | 885,551   |  |              | 326,614 |  |                             | Hechts, Lord & Taylor, Sears                                                                                                |           |  |    | 
|Lansing Mall(2)              |  | Lansing, MI                       |  | 834,025   |  |              | 442,855 |  |                             | JCPenney, Marshall Fields, Mervyns, Younkers                                                                               |           |  |    | 
|Lincolnshire Commons         |  | Lincolnshire (Chicago), IL        |  | 44,002    |  |              | 44,002  |  |                             | N/A                                                                                                                          |           |  | N/A | 
|Lockport Mall                |  | Lockport, NY                      |  | 336,070   |  |              | 122,989 |  |                             | The Bon Ton                                                                                                                  |           |  | 2   | 
|Lynnhaven Mall               |  | Virginia Beach, VA                |  | 1,298,577 |  |              | 463,130 |  |                             | AMC Theatres, Dicks Sporting Goods, Dillards,
    Hechts, JCPenney, Steve & Barrys University
    Sportswear             |           |  | 1   | 
|The Maine Mall               |  | South Portland, ME                |  | 1,018,867 |  |              | 345,933 |  |                             | Best Buy, Chuck E Cheese, Filenes, Filenes Home
    Store, JCPenney, Linens N Things, Macys, Sears,
    Sports Authority |           |  |    | 
|Mall at Sierra Vista         |  | Sierra Vista, AZ                  |  | 342,262   |  |              | 110,992 |  |                             | Cinemark, Dillards, Sears                                                                                                   |           |  |    | 
|The Mall in Columbia         |  | Columbia, MD                      |  | 1,392,967 |  |              | 592,799 |  |                             | Hechts, JCPenney, Lord & Taylor, Nordstrom, Sears                                                                           |           |  |    | 
|Mall of Louisiana            |  | Baton Rouge, LA                   |  | 1,240,035 |  |              | 432,553 |  |                             | Foleys, JCPenney, McRaes, Sears                                                                                            |           |  |    | 
|Mall of the Bluffs           |  | Council Bluffs (Omaha, NE), IA    |  | 701,418   |  |              | 375,196 |  |                             | Dillards, Hy-Vee, JCPenney, Sears, Target                                                                                   |           |  |    | 
|Mall St. Matthews            |  | Louisville, KY                    |  | 1,107,046 |  |              | 391,341 |  |                             | Dillards, Dillards Mens & Home,
    JCPenney                                                                              |           |  | 1   | 
|Mall St. Vincent(2)          |  | Shreveport, LA                    |  | 538,506   |  |              | 190,506 |  |                             | Dillards, Sears                                                                                                             |           |  |    | 
|Market Place Shopping Center |  | Champaign, IL                     |  | 1,045,487 |  |              | 509,741 |  |                             | Bergners, Famous Barr, JCPenney, Sears                                                                                      |           |  |    | 
|Mayfair                      |  | Wauwatosa (Milwaukee), WI         |  | 1,112,283 |  |              | 492,899 |  |                             | AMC Theatres, Barnes & Noble, Boston Store, Marshall
    Fields                                                             |           |  |    | 
|Meadows Mall                 |  | Las Vegas, NV                     |  | 956,479   |  |              | 319,626 |  |                             | Dillards, JCPenney, Macys, Sears                                                                                           |           |  |    | 
|Metro Plaza                  |  | Baltimore, MD                     |  | 95,108    |  |              | 95,108  |  |                             | N/A                                                                                                                          |           |  | N/A | 
|Mondawmin Mall               |  | Baltimore, MD                     |  | 294,841   |  |              | 294,841 |  |                             | N/A                                                                                                                          |           |  | N/A | 
|North Plains Mall            |  | Clovis, NM                        |  | 303,613   |  |              | 109,532 |  |                             | Bealls, Dillards, JCPenney, Sears                                                                                          |           |  |    | 
|North Star Mall              |  | San Antonio, TX                   |  | 1,257,095 |  |              | 430,270 |  |                             | Dillards, Foleys, Macys, Mervyns, Saks
    Fifth Avenue                                                                  |           |  |    | 
|North Temple Shops           |  | Salt Lake City, UT                |  | 10,078    |  |              | 10,078  |  |                             | N/A                                                                                                                          |           |  | N/A | 
|North Town Mall              |  | Spokane, WA                       |  | 1,046,534 |  |              | 415,040 |  |                             | Bumpers, Inc., JCPenney, Macys, Mervyns, Regal
    Cinemas, Sears                                                          |           |  | 1   | 
|Northgate Mall               |  | Chattanooga, TN                   |  | 822,656   |  |              | 357,336 |  |                             | JCPenney, Proffitts, Proffitts Home Store, Sears,
    T.J. Maxx                                                            |           |  |    | 

19



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##### Table of Contents



|                          |  |                                |  |           |  |              |         |  |                             |                                                                         |           |  |     | 
|------------------------- |  | ------------------------------ |  | --------- |  | ------------ | ------- |  | --------------------------- | ----------------------------------------------------------------------- | --------- |  | --- | 
|                          |  |                                |  | GLA       |  |              |         |  |                            
|                          |  |                                |  |           |  |              |         |  |                            
|                          |  |                                |  |           |  | Mall and     |         |  |                             |                                                                         | Anchor    | 
|Name of Center            |  | Location(1)                    |  | Total     |  | Freestanding |         |  | Anchors/Significant Tenants |                                                                         | Vacancies | 
|                          |  |                                |  |           |  |              |         |  |                             |                                                                         |           | 
|Northridge Fashion Center |  | Northridge (Los Angeles), CA   |  | 1,440,151 |  |              | 564,708 |  |                             | JCPenney, Macys, Pacific Theatres, Robinsons-May, Sears                |           |  |    | 
|Oak View Mall             |  | Omaha, NE                      |  | 865,829   |  |              | 261,569 |  |                             | Dillards, JCPenney, Sears, Younkers                                    |           |  |    | 
|Oakwood Center            |  | Gretna, LA                     |  | 944,659   |  |              | 346,312 |  |                             | Dillards, JCPenney, Mervyns, Sears                                    |           |  |    | 
|Oakwood Mall              |  | Eau Claire, WI                 |  | 821,518   |  |              | 336,442 |  |                             | JCPenney, Marshall Fields, Scheels All Sports,
    Sears, Younkers    |           |  |    | 
|Oglethorpe Mall           |  | Savannah, GA                   |  | 946,334   |  |              | 366,186 |  |                             | Belk, JCPenney, Macys, Macys Junior Department,
    Sears, Stein Mart |           |  |    | 
|Orem Plaza Center Street  |  | Orem, UT                       |  | 85,221    |  |              | 85,221  |  |                             | Chuck E Cheese                                                          |           |  |    | 
|Orem Plaza State Street   |  | Orem, UT                       |  | 27,557    |  |              | 27,557  |  |                             | N/A                                                                     |           |  | N/A | 
|Oviedo Marketplace        |  | Oviedo, FL                     |  | 951,473   |  |              | 333,589 |  |                             | Dillards, Macys, Regal Cinemas, Sears                                 |           |  |    | 
|Owings Mills Mall         |  | Owing Mills, MD                |  | 1,083,447 |  |              | 436,410 |  |                             | Hechts, JCPenney, Macys                                               |           |  | 1   | 
|Oxmoor Center             |  | Louisville, KY                 |  | 930,704   |  |              | 283,494 |  |                             | Dicks Sporting Goods, Macys, Sears, Von Maur                          |           |  |    | 
|Paramus Park              |  | Paramus, NJ                    |  | 769,856   |  |              | 310,799 |  |                             | Macys, Sears                                                           |           |  |    | 
|Park City Center          |  | Lancaster (Philadelphia), PA   |  | 1,375,762 |  |              | 512,573 |  |                             | The Bon Ton, Boscovs, JCPenney, Kohls, Sears                          |           |  |    | 
|Park Place                |  | Tucson, AZ                     |  | 1,047,177 |  |              | 392,440 |  |                             | Century Theatres, Dillards, Macys, Sears                              |           |  |    | 
|Peachtree Mall            |  | Columbus, GA                   |  | 819,916   |  |              | 311,301 |  |                             | Dillards, JCPenney, Macys, Parisian                                   |           |  |    | 
|Pecanland Mall            |  | Monroe, LA                     |  | 944,992   |  |              | 329,556 |  |                             | Dillards, JCPenney, McRaes, Mervyns, Sears                           |           |  |    | 
|Piedmont Mall             |  | Danville, VA                   |  | 726,933   |  |              | 176,607 |  |                             | Belk, Belk Mens, Boscovs, JCPenney, Sears                             |           |  |    | 
|Pierre Bossier Mall       |  | Bossier City (Shreveport), LA  |  | 607,688   |  |              | 214,390 |  |                             | Dillards, JCPenney, Sears, Stage                                       |           |  | 1   | 
|Pine Ridge Mall(2)        |  | Pocatello, ID                  |  | 641,782   |  |              | 203,795 |  |                             | Dillards, JCPenney, Macys, Sears, ShopKo                              |           |  |    | 
|The Pines                 |  | Pine Bluff, AR                 |  | 631,758   |  |              | 262,049 |  |                             | Dillards, Holiday Inn Express, JCPenney, Sears                         |           |  | 1   | 
|Pioneer Place(2)          |  | Portland, OR                   |  | 368,070   |  |              | 287,070 |  |                             | Saks Fifth Avenue                                                       |           |  |    | 
|Plaza 800(2)              |  | Sparks (Reno), NV              |  | 176,431   |  |              | 176,431 |  |                             | Albertsons                                                             |           |  | 1   | 
|Plaza 9400(2)             |  | Sandy
    (Salt Lake City), UT |  | 228,661   |  |              | 228,661 |  |                             | Albertsons, Deseret Industries                                         |           |  | 1   | 
|Prince Kuhio Plaza(2)     |  | Hilo, HI                       |  | 506,321   |  |              | 273,699 |  |                             | Macys, Sears                                                           |           |  | 1   | 
|Providence Place(2)       |  | Providence, RI                 |  | 1,275,818 |  |              | 638,229 |  |                             | Filenes, National Amusements Cinema 16, Nordstrom,
    JCPenney        |           |  |    | 
|Provo Towne Centre(3)     |  | Provo, UT                      |  | 801,014   |  |              | 230,945 |  |                             | Cinemark, Dillards, JCPenney, Sears                                    |           |  |    | 
|Red Cliffs Mall           |  | St. George, UT                 |  | 385,610   |  |              | 108,553 |  |                             | Dillards, JCPenney, Sears                                              |           |  | 1   | 
|Red Cliffs Plaza          |  | St George, UT                  |  | 57,304    |  |              | 57,304  |  |                             | Golds Gym, Sears                                                       |           |  |    | 
|Redlands Mall             |  | Redlands, CA                   |  | 173,997   |  |              | 78,938  |  |                             | Gottschalks                                                             |           |  |    | 

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|                           |  |                                      |  |           |  |              |         |  |                             |                                                                                                             |           |  |     | 
|-------------------------- |  | ------------------------------------ |  | --------- |  | ------------ | ------- |  | --------------------------- | ----------------------------------------------------------------------------------------------------------- | --------- |  | --- | 
|                           |  |                                      |  | GLA       |  |              |         |  |                            
|                           |  |                                      |  |           |  |              |         |  |                            
|                           |  |                                      |  |           |  | Mall and     |         |  |                             |                                                                                                             | Anchor    | 
|Name of Center             |  | Location(1)                          |  | Total     |  | Freestanding |         |  | Anchors/Significant Tenants |                                                                                                             | Vacancies | 
|                           |  |                                      |  |           |  |              |         |  |                             |                                                                                                             |           | 
|Regency Square Mall        |  | Jacksonville, FL                     |  | 1,445,681 |  |              | 529,175 |  |                             | Belk, Champs Sports/World Foot Locker, Dillards, JCPenney,
    Sears                                       |           |  | 1   | 
|Ridgedale Center           |  | Minnetonka, MN                       |  | 1,021,910 |  |              | 319,530 |  |                             | JCPenney, Marshall Fields Mens & Home,
    Marshall Fields Womens, Sears                                |           |  |    | 
|Rio West Mall(2)(3)        |  | Gallup, NM                           |  | 514,856   |  |              | 333,723 |  |                             | Bealls, JCPenney                                                                                           |           |  | 1   | 
|River Falls Mall           |  | Clarksville, IN                      |  | 729,945   |  |              | 198,179 |  |                             | Bass Pro Shops Outdoor World, Toys R Us                                                                     |           |  | 2   | 
|River Hills Mall           |  | Mankato, MN                          |  | 696,888   |  |              | 256,694 |  |                             | Herbergers, JCPenney, Scheels All Sports, Sears,
    Target                                               |           |  |    | 
|River Pointe Plaza         |  | West Jordan
    (Salt Lake City), UT |  | 224,252   |  |              | 224,252 |  |                             | Albertsons, ShopKo                                                                                         |           |  |    | 
|Riverlands Shopping Center |  | LaPlace (New Orleans), LA            |  | 184,093   |  |              | 184,093 |  |                             | Burkes Outlet, Citi Trends, Stage                                                                          |           |  | 1   | 
|Riverside Plaza            |  | Provo, UT                            |  | 175,417   |  |              | 175,417 |  |                             | Big Lots, Maceys, Rite Aid                                                                                 |           |  |    | 
|Rivertown Crossings        |  | Grandville (Grand Rapids), MI        |  | 1,270,942 |  |              | 421,884 |  |                             | Dicks Sporting Goods, JCPenney, Kohls, Marshall
    Fields, Old Navy, Rivertown Cinemas, Sears, Younkers |           |  |    | 
|Riverwalk Marketplace(2)   |  | New Orleans, LA                      |  | 186,415   |  |              | 186,415 |  |                             | N/A                                                                                                         |           |  | N/A | 
|Rogue Valley Mall          |  | Medford (Portland), OR               |  | 639,867   |  |              | 252,429 |  |                             | JCPenney, Linens N Things, Meier & Frank,
    Meier & Frank Home Store, Mervyns                           |           |  |    | 
|Saint Louis Galleria       |  | St. Louis, MO                        |  | 1,160,740 |  |              | 471,060 |  |                             | Dillards, Famous Barr, Lord & Taylor                                                                       |           |  |    | 
|Salem Center(2)            |  | Salem, OR                            |  | 650,132   |  |              | 212,132 |  |                             | JCPenney, Meier & Frank, Mervyns, Nordstrom                                                                |           |  |    | 
|The Shops at La Cantera(3) |  | San Antonio, TX                      |  | 1,010,977 |  |              | 381,977 |  |                             | Dillards, Foleys, Neiman Marcus, Nordstrom                                                                |           |  |    | 
|Sikes Senter               |  | Wichita Falls, TX                    |  | 667,561   |  |              | 262,037 |  |                             | Dillards, JCPenney, Sears, Sikes Ten Theatres                                                              |           |  |    | 
|Silver Lake Mall           |  | Coeur d Alene, ID                   |  | 326,709   |  |              | 110,345 |  |                             | JCPenney, Macys, Sears                                                                                     |           |  | 1   | 
|Sooner Mall                |  | Norman, OK                           |  | 509,271   |  |              | 169,199 |  |                             | Dillards, JCPenney, Old Navy, Sears, Stein Mart                                                            |           |  |    | 
|South Street Seaport(2)    |  | New York, NY                         |  | 285,012   |  |              | 285,012 |  |                             | N/A                                                                                                         |           |  | N/A | 
|Southlake Mall             |  | Morrow (Atlanta), GA                 |  | 1,015,515 |  |              | 275,263 |  |                             | JCPenney, Macys, Sears                                                                                     |           |  | 1   | 
|Southland Center           |  | Taylor, MI                           |  | 875,681   |  |              | 292,644 |  |                             | JCPenney, Marshall Fields, Mervyns                                                                        |           |  |    | 
|Southland Mall             |  | Hayward, CA                          |  | 1,259,938 |  |              | 519,674 |  |                             | JCPenney, Macys, Mervyns, Sears                                                                           |           |  |    | 
|Southshore Mall(2)         |  | Aberdeen, WA                         |  | 291,644   |  |              | 157,869 |  |                             | JCPenney, Sears                                                                                             |           |  |    | 
|Southwest Plaza            |  | Littleton (Denver), CO               |  | 1,313,065 |  |              | 675,888 |  |                             | Dillards, Foleys, JCPenney, Sears                                                                         |           |  |    | 
|Spokane Valley Mall(3)     |  | Spokane, WA                          |  | 737,854   |  |              | 318,770 |  |                             | JCPenney, Macys, Regal ACT III, Sears                                                                      |           |  |    | 
|Spokane Valley Plaza(3)    |  | Spokane, WA                          |  | 132,048   |  |              | 132,048 |  |                             | Linens N Things, Old Navy, Sportsmans
    Warehouse, T.J. Maxx                                            |           |  |    | 

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|                             |  |                           |  |             |  |              |            |  |                             |                                                                                                              |           |  |     | 
|---------------------------- |  | ------------------------- |  | ----------- |  | ------------ | ---------- |  | --------------------------- | ------------------------------------------------------------------------------------------------------------ | --------- |  | --- | 
|                             |  |                           |  | GLA         |  |              |            |  |                            
|                             |  |                           |  |             |  |              |            |  |                            
|                             |  |                           |  |             |  | Mall and     |            |  |                             |                                                                                                              | Anchor    | 
|Name of Center               |  | Location(1)               |  | Total       |  | Freestanding |            |  | Anchors/Significant Tenants |                                                                                                              | Vacancies | 
|                             |  |                           |  |             |  |              |            |  |                             |                                                                                                              |           | 
|Spring Hill Mall             |  | West Dundee (Chicago), IL |  | 1,177,489   |  |              | 444,694    |  |                             | Carson Pirie Scott, JCPenney, Kohls, Marshall
    Fields, Sears, Steve & Barrys University
    Sportswear |           |  |    | 
|Staten Island Mall           |  | Staten Island, NY         |  | 1,282,205   |  |              | 611,116    |  |                             | Macys, Macys Home Store, Sears, JCPenney                                                                   |           |  |    | 
|Stonestown                   |  | San Francisco, CA         |  | 862,142     |  |              | 433,849    |  |                             | Macys, Nordstrom                                                                                            |           |  |    | 
|The Streets at Southpoint    |  | Durham, NC                |  | 1,327,165   |  |              | 580,244    |  |                             | Hechts, Hudson Belk, JCPenney, Nordstrom, Sears                                                             |           |  |    | 
|Three Rivers Mall            |  | Kelso, WA                 |  | 430,111     |  |              | 236,878    |  |                             | JCPenney, Macys, Sears                                                                                      |           |  | 1   | 
|Town East Mall               |  | Mesquite (Dallas), TX     |  | 1,218,261   |  |              | 408,875    |  |                             | Dillards, Foleys, JCPenney, Sears                                                                          |           |  |    | 
|Tucson Mall(2)               |  | Tucson, AZ                |  | 1,302,740   |  |              | 444,476    |  |                             | Dillards, JCPenney, Macys, Mervyns,
    Robinsons-May, Sears                                              |           |  |    | 
|Twin Falls Crossing          |  | Twin Falls, ID            |  | 37,680      |  |              | 37,680     |  |                             | Kalik Investors                                                                                              |           |  |    | 
|University Crossing          |  | Orem, UT                  |  | 206,035     |  |              | 206,035    |  |                             | Barnes & Noble, CompUSA, Fred Meyer 
    Burlington Coat, OfficeMax, Pier 1 Imports                         |           |  |    | 
|Valley Hills Mall            |  | Hickory, NC               |  | 906,183     |  |              | 294,667    |  |                             | Belk, Dillards, JCPenney, Sears                                                                             |           |  |    | 
|Valley Plaza Mall            |  | Bakersfield, CA           |  | 1,185,530   |  |              | 458,841    |  |                             | Gottschalks, JCPenney, Macys, Robinsons-May, Sears                                                          |           |  |    | 
|Village of Cross Keys Retail |  | Baltimore, MD             |  | 73,982      |  |              | 73,982     |  |                             | N/A                                                                                                          |           |  | N/A | 
|Visalia Mall                 |  | Visalia, CA               |  | 440,978     |  |              | 183,978    |  |                             | Gottschalks, JCPenney                                                                                        |           |  |    | 
|Ward Centers                 |  | Honolulu, HI              |  | 712,170     |  |              | 595,089    |  |                             | Borders Books & Music, Dave & Busters,
    Sports Authority                                                 |           |  |    | 
|West Valley Mall             |  | Tracy (San Francisco), CA |  | 834,201     |  |              | 453,252    |  |                             | Gottschalks, JCPenney, Movies 14, Sears, Target                                                              |           |  |    | 
|Westlake Center(2)           |  | Seattle, WA               |  | 104,631     |  |              | 104,631    |  |                             | N/A                                                                                                          |           |  | N/A | 
|Westwood Mall                |  | Jackson, MI               |  | 508,199     |  |              | 136,511    |  |                             | Elder-Beerman, JCPenney, Wal-Mart                                                                            |           |  |    | 
|White Marsh Mall             |  | Baltimore, MD             |  | 1,151,331   |  |              | 366,736    |  |                             | Hechts, JCPenney, Macys, Sears                                                                             |           |  | 1   | 
|White Mountain Mall          |  | Rock Springs, WY          |  | 329,713     |  |              | 175,253    |  |                             | Flaming Gorge Harley Davidson, Herbergers, JCPenney, State
    of Wyoming                                   |           |  |    | 
|Willowbrook                  |  | Wayne, NJ                 |  | 1,523,691   |  |              | 495,691    |  |                             | Bloomingdales, Lord & Taylor, Macys, Sears                                                                 |           |  |    | 
|Woodbridge Center            |  | Woodbridge, NJ            |  | 1,634,126   |  |              | 549,091    |  |                             | Dicks Sporting Goods, Fortunoff, JCPenney, Lord &
    Taylor, Macys, Sears                                 |           |  |    | 
|Woodlands Village            |  | Flagstaff, AZ             |  | 91,810      |  |              | 91,810     |  |                             |                                                                                                             |           |  |    | 
|Yellowstone Square           |  | Idaho Falls, ID           |  | 222,017     |  |              | 222,017    |  |                             | Yellowstone Warehouse                                                                                        |           |  | 1   | 
|                             |  |                           |  |             |  |              |            |  |                             |                                                                                                              |           | 
|                             |  |                           |  | 116,137,651 |  |              | 49,238,511 |  |                             |                                                                                                              |           |  |     | 
|                             |  |                           |  |             |  |              |            |  |                             |                                                                                                              |           | 

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|    |                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In certain cases, where a centers location is part of a
    larger metropolitan area, the metropolitan area is identified in
    parenthesis.
|   
|(2) | A portion of the property is subject to ground lease.                                                                                         
|   
|(3) | Owned in a joint venture with independent, non-controlling
    minority investors.                                                            

Unconsolidated Retail Properties


|                                            |  |                                 |                          |           |          |     |      |       |           |  |              |  |         |                             |         |                                                       |  |                                                                                                               |   |  |   | 
|------------------------------------------- |  | ------------------------------- | ------------------------ | --------- | -------- | --- | ---- | ----- | --------- |  | ------------ |  | ------- | --------------------------- | ------- | ----------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------- | - |  | - | 
|                                            |  |                                 |                          |           |          | GLA |      |       |           |  |             
|                                            |  |                                 |                          |           |          |     |      |       |           |  |             
|                                            |  |                                 |                          | Ownership |          |     |      |       | Mall and  |  |              |  |         | Anchor                      |        
|Name of Center                              |  | Location(1)                     |                          |           | Interest |     |      | Total |           |  | Freestanding |  |         | Anchors/Significant Tenants |         | Vacancies                                             | 
|                                            |  |                                 |                          |           |          |     |      |       |           |  |              |  |         |                             |         |                                                       | 
|Alderwood Mall                              |  |                                 | Lynnwood (Seattle), WA   |           |          |     | 50   | %     |           |  | 1,272,449    |  |         |                             | 501,898 |                                                       |  | JCPenney, Loews Cineplex, Macys, Nordstrom, Sears                                                            |   |  |  | 
|Altamonte Mall                              |  | Altamonte Springs (Orlando), FL |                          |           | 50       |     |      |       | 1,148,557 |  |              |  | 470,009 |                             |         | Dillards, JCPenney, Macys, Sears                    |  |                                                                                                               |  | 
|Arrowhead Towne Center                      |  |                                 | Glendale, AZ             |           |          |     | 16.7 |       |           |  | 1,129,857    |  |         |                             | 345,320 |                                                       |  | AMC Theatres, Dillards, JCPenney, Mervyns,
    Robinsons- May, Sears                                        |   |  |  | 
|Bay City Mall                               |  |                                 | Bay City, MI             |           |          |     | 50   |       |           |  | 525,251      |  |         |                             | 209,600 |                                                       |  | JCPenney, Sears, Target, Younkers                                                                             |   |  |  | 
|Brass Mill Center and Commons               |  |                                 | Waterbury, CT            |           |          |     | 50   |       |           |  | 1,184,182    |  |         |                             | 526,843 |                                                       |  | Burlington Coat Factory, Filenes, JCPenney, Regal Cinemas,
    Sears, Steve & Barrys University Sportswear  |   |  |  | 
|Bridgewater Commons                         |  |                                 | Bridgewater, NJ          |           |          |     | 35   |       |           |  | 880,787      |  |         |                             | 344,898 |                                                       |  | AMC Theatres, Bloomingdales, Lord & Taylor,
    Macys                                                       |   |  |  | 
|Carolina Place                              |  |                                 | Pineville(Charlotte), NC |           |          |     | 50   |       |           |  | 1,102,008    |  |         |                             | 328,506 |                                                       |  | Belk, Dillards, Hechts, JCPenney, Sears                                                                     |   |  |  | 
|Centerpointe Village Center                 |  |                                 | Summerlin, NV            |           |          |     | 50   |       |           |  | 144,635      |  |         |                             | 144,635 |                                                       |  | Albertsons, Sav-On Drug Store                                                                                |   |  |  | 
|Christiana Mall                             |  |                                 | Newark, DE               |           |          |     | 50   |       |           |  | 1,083,587    |  |         |                             | 312,183 |                                                       |  | JCPenney, Lord & Taylor, Macys, Strawbridges                                                                |   |  |  | 
|Chula Vista Center                          |  | Chula Vista (San  Diego), CA    |                          |           | 50       |     |      |       | 876,354   |  |              |  | 288,217 |                             |         | JCPenney, Macys, Mervyns, Sears, Ultrastar Theaters |  |                                                                                                               |  | 
|Clackamas Town Center                       |  |                                 | Portland, OR             |           |          |     | 50   |       |           |  | 1,236,215    |  |         |                             | 357,526 |                                                       |  | Barnes & Noble, Century Theatres, JCPenney,
    Meier & Frank, Meier & Frank Home Store,
    Nordstrom, Sears |   |  |  | 
|Columbiana Centre                           |  |                                 | Columbia, SC             |           |          |     | 50   |       |           |  | 824,127      |  |         |                             | 265,150 |                                                       |  | Belk, Dillards, Parisian, Sears                                                                              |   |  |  | 
|Deerbrook Mall                              |  |                                 | Humble (Houston), TX     |           |          |     | 50   |       |           |  | 1,206,160    |  |         |                             | 365,608 |                                                       |  | AMC Theatres, Dillards, Foleys, JCPenney,
    Mervyns, Sears                                               |   |  |  | 
|Eastridge Mall                              |  |                                 | San Jose, CA             |           |          |     | 51   |       |           |  | 1,252,836    |  |         |                             | 505,575 |                                                       |  | AMC 15, JCPenney, Macys, Sears                                                                               |   |  |  | 
|First Colony Mall                           |  |                                 | Sugar Land (Houston), TX |           |          |     | 50   |       |           |  | 1,017,355    |  |         |                             | 398,307 |                                                       |  | Dillards, Foleys, JCPenney, Mervyns                                                                        |   |  |  | 
|Florence Mall                               |  | Florence (Cincinnati, OH), KY   |                          |           | 50       |     |      |       | 930,171   |  |              |  | 377,764 |                             |         | JCPenney, Macys, Macys Home Store, Sears            |  |                                                                                                               |  | 
|Galleria At Tyler(2)                        |  |                                 | Riverside, CA            |           |          |     | 50   |       |           |  | 1,060,163    |  |         |                             | 438,455 |                                                       |  | JCPenney, Macys, Nordstrom, Robinsons-May                                                                    |   |  |  | 
|Glendale Galleria(2)                        |  |                                 | Glendale, CA             |           |          |     | 50   |       |           |  | 1,319,348    |  |         |                             | 514,348 |                                                       |  | JCPenney, Macys, Mervyns, Nordstrom, Robinsons-May                                                          |   |  |  | 
|Highland Mall(2)                            |  |                                 | Austin, TX               |           |          |     | 50   |       |           |  | 1,104,179    |  |         |                             | 385,438 |                                                       |  | Dillards, Dillards Mens, Foleys, JCPenney                                                                 |   |  |  | 
|Kenwood Towne Centre(2)                     |  |                                 | Cincinnati, OH           |           |          |     | 50   |       |           |  | 1,134,733    |  |         |                             | 533,141 |                                                       |  | Dillards, Macys, Parisian                                                                                   |   |  |  | 
|Lake Mead & Buffalo Partners Village Center |  |                                 | Summerlin, NV            |           |          |     | 50   |       |           |  | 150,948      |  |         |                             | 150,948 |                                                       |  | Hollywood Video, Wells Fargo Bank                                                                             |   |  |  | 

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|                                |  |                                       |                          |           |          |     |    |       |           |  |              |  |         |                             |         |                                                                                                     |  |                                                                                                                                                 |   |  |   | 
|------------------------------- |  | ------------------------------------- | ------------------------ | --------- | -------- | --- | -- | ----- | --------- |  | ------------ |  | ------- | --------------------------- | ------- | --------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------- | - |  | - | 
|                                |  |                                       |                          |           |          | GLA |    |       |           |  |             
|                                |  |                                       |                          |           |          |     |    |       |           |  |             
|                                |  |                                       |                          | Ownership |          |     |    |       | Mall and  |  |              |  |         | Anchor                      |        
|Name of Center                  |  | Location(1)                           |                          |           | Interest |     |    | Total |           |  | Freestanding |  |         | Anchors/Significant Tenants |         | Vacancies                                                                                           | 
|                                |  |                                       |                          |           |          |     |    |       |           |  |              |  |         |                             |         |                                                                                                     | 
|Lakeland Square Mall            |  |                                       | Lakeland (Orlando), FL   |           |          |     | 50 |       |           |  | 898,502      |  |         |                             | 288,464 |                                                                                                     |  | Dillards, Dillards Mens & Home,
    JCPenney, Macys, Sears                                                                                  |   |  | 1 | 
|Mizner Park(2)                  |  |                                       | Boca Raton, FL           |           |          |     | 50 |       |           |  | 236,599      |  |         |                             | 125,777 |                                                                                                     |  | Mizner Park Cinema, Robb & Stucky                                                                                                               |   |  |  | 
|Montclair Plaza                 |  | Montclair (San  Bernadino), CA        |                          |           | 50       |     |    |       | 1,349,642 |  |              |  | 546,627 |                             |         | Circuit City, Ethan Allen, JCPenney, Linens N Things,
    Macys, Nordstrom, Robinsons- May, Sears |  |                                                                                                                                                 |  | 
|Moreno Valley Mall              |  | Moreno Valley (Riverside), CA         |                          |           | 50       |     |    |       | 1,092,062 |  |              |  | 322,871 |                             |         | Gottschalks, Harkins Theatre, JCPenney, Limited, Robinsons- May,
    Sears                          |  |                                                                                                                                                 |  | 
|Natick Mall                     |  |                                       | Natick (Boston), MA      |           |          |     | 50 |       |           |  | 1,154,026    |  |         |                             | 427,364 |                                                                                                     |  | Filenes, Lord & Taylor, Macys, Sears                                                                                                          |   |  |  | 
|Neshaminy Mall                  |  |                                       | Bensalem, PA             |           |          |     | 25 |       |           |  | 1,019,629    |  |         |                             | 325,037 |                                                                                                     |  | AMC Theatres, Boscovs, Sears, Strawbridges                                                                                                    |   |  |  | 
|Newgate Mall                    |  | Ogden (Salt Lake City), UT            |                          |           | 50       |     |    |       | 725,947   |  |              |  | 253,813 |                             |         | Dillards, Gart Sports, Mervyns, Sears, Tinsel Town                                                |  |                                                                                                                                                 |  | 
|NewPark Mall                    |  | Newark (San  Francisco), CA           |                          |           | 50       |     |    |       | 1,138,354 |  |              |  | 394,890 |                             |         | JCPenney, Macys, Mervyns, Sears, Target                                                           |  |                                                                                                                                                 |  | 
|North Point Mall                |  |                                       | Alpharetta (Atlanta), GA |           |          |     | 50 |       |           |  | 1,371,441    |  |         |                             | 405,154 |                                                                                                     |  | Dillards, JCPenney, Macys, Parisian, Sears                                                                                                    |   |  | 1 | 
|Northbrook Court                |  |                                       | Northbrook (Chicago), IL |           |          |     | 50 |       |           |  | 1,011,221    |  |         |                             | 395,302 |                                                                                                     |  | AMC Theatres, Lord & Taylor, Marshall Fields,
    Neiman Marcus                                                                                |   |  |  | 
|Oakbrook Center                 |  |                                       | Oakbrook (Chicago), IL   |           |          |     | 50 |       |           |  | 2,119,809    |  |         |                             | 834,829 |                                                                                                     |  | Bloomingdales Home, Crate & Barrel,
    Lord & Taylor, Marshall Fields, Neiman Marcus,
    Nordstrom, Sears                                   |   |  |  | 
|The Oaks Mall                   |  |                                       | Gainesville, FL          |           |          |     | 51 |       |           |  | 906,392      |  |         |                             | 348,525 |                                                                                                     |  | Belk, Dillards, JCPenney, Macys, Sears                                                                                                        |   |  |  | 
|The Parks at Arlington          |  |                                       | Arlington (Dallas), TX   |           |          |     | 50 |       |           |  | 1,518,300    |  |         |                             | 432,040 |                                                                                                     |  | AMC Theatres, Circuit City, Dicks Sporting Goods,
    Dillards, Foleys, JCPenney, Mervyns, Sears,
    Steve & Barrys University Sportswear |   |  |  | 
|Park Meadows                    |  |                                       | Littleton, CO            |           |          |     | 35 |       |           |  | 1,630,538    |  |         |                             | 607,538 |                                                                                                     |  | Dillards, Foleys, JCPenney, Nordstrom                                                                                                         |   |  | 1 | 
|Pembroke Lakes Mall             |  | Pembroke Pines (Fort  Lauderdale), FL |                          |           | 50       |     |    |       | 1,067,074 |  |              |  | 355,799 |                             |         | Dillards, Dillards Mens & Home,
    JCPenney, Macys, Sears                                      |  |                                                                                                                                                 |  | 
|Perimeter Mall                  |  |                                       | Atlanta, GA              |           |          |     | 50 |       |           |  | 1,561,219    |  |         |                             | 507,945 |                                                                                                     |  | Bloomingdales, Dillards, Macys, Nordstrom                                                                                                    |   |  |  | 
|Quail Springs Mall              |  |                                       | Oklahoma City, OK        |           |          |     | 50 |       |           |  | 1,134,623    |  |         |                             | 349,823 |                                                                                                     |  | AMC Theatres, Dillards, Foleys, JCPenney, Sears                                                                                               |   |  |  | 
|Riverchase Galleria             |  |                                       | Hoover (Birmingham), AL  |           |          |     | 50 |       |           |  | 1,562,460    |  |         |                             | 513,553 |                                                                                                     |  | Comp USA, JCPenney, Macys, Parisian, Proffitts, Sears                                                                                         |   |  | 1 | 
|The Shoppes at Buckland Hills   |  |                                       | Manchester, CT           |           |          |     | 50 |       |           |  | 978,117      |  |         |                             | 429,944 |                                                                                                     |  | Filenes, Filenes Home & Mens Store,
    JCPenney, Sears                                                                                      |   |  | 1 | 
|Shopping Center Iguatemi Bahia  |  |                                       | Salvador, Bahia (Brazil) |           |          |     | 35 |       |           |  | 685,310      |  |         |                             | 426,846 |                                                                                                     |  | Bompreco, C&A, Lojas Americanas, Cinema Multiplex, Playland,
    Riachuelo                                                                      |   |  |  | 
|Shopping Center Taboao da Serra |  | Taboao da Serra, Sao Paulo (Brazil)   |                          |           | 35       |     |    |       | 418,660   |  |              |  | 188,172 |                             |         | Beshi, C&A, Carrefour, Lojas Americanas, Riachuelo, Telha
    Norte                                 |  |                                                                                                                                                 |  | 

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|                               |  |                                         |                         |           |          |     |      |       |           |  |              |  |         |                             |            |                                                                                                                 |  |                                                                                                                           |   |  |     | 
|------------------------------ |  | --------------------------------------- | ----------------------- | --------- | -------- | --- | ---- | ----- | --------- |  | ------------ |  | ------- | --------------------------- | ---------- | --------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------- | - |  | --- | 
|                               |  |                                         |                         |           |          | GLA |      |       |           |  |             
|                               |  |                                         |                         |           |          |     |      |       |           |  |             
|                               |  |                                         |                         | Ownership |          |     |      |       | Mall and  |  |              |  |         | Anchor                      |           
|Name of Center                 |  | Location(1)                             |                         |           | Interest |     |      | Total |           |  | Freestanding |  |         | Anchors/Significant Tenants |            | Vacancies                                                                                                       | 
|                               |  |                                         |                         |           |          |     |      |       |           |  |              |  |         |                             |            |                                                                                                                 | 
|Silver City Galleria           |  |                                         | Taunton (Boston), MA    |           |          |     | 50   |       |           |  | 1,039,278    |  |         |                             | 412,102    |                                                                                                                 |  | Dicks Sporting Goods, Filenes, JCPenney, Sears,
    Silver City Cinemas, Steve & Barrys University
    Sportswear      |   |  |    | 
|Steeplegate Mall               |  |                                         | Concord, NH             |           |          |     | 50   |       |           |  | 481,041      |  |         |                             | 224,694    |                                                                                                                 |  | The Bon Ton, JCPenney, Sears                                                                                              |   |  |    | 
|Stonebriar Centre              |  |                                         | Frisco (Dallas), TX     |           |          |     | 50   |       |           |  | 1,652,556    |  |         |                             | 527,523    |                                                                                                                 |  | AMC Theatres, Barnes & Noble, Dave &
    Busters, Dicks Sporting Goods, Foleys,
    JCPenney, Macys, Nordstrom, Sears |   |  |    | 
|Superstition Springs Center(2) |  |                                         | East Mesa (Phoenix), AZ |           |          |     | 16.7 |       |           |  | 1,056,253    |  |         |                             | 319,099    |                                                                                                                 |  | Dillards, JCPenney, JCPenney Home Store, Mervyns,
    Robinsons-May, Sears                                               |   |  |    | 
|Towson Town Center             |  |                                         | Towson, MD              |           |          |     | 35   |       |           |  | 939,255      |  |         |                             | 520,126    |                                                                                                                 |  | Hechts, Nordstrom, Nordstrom Rack                                                                                        |   |  |    | 
|Trails Village Partners        |  |                                         | Summerlin, NV           |           |          |     | 50   |       |           |  | 174,660      |  |         |                             | 174,660    |                                                                                                                 |  | Longs Drug Store, Vons Grocery Store                                                                                      |   |  |    | 
|Tysons Galleria                |  | McLean (Washington, D.C.), VA           |                         |           | 50       |     |      |       | 821,744   |  |              |  | 309,811 |                             |            | Macys, Neiman Marcus, Saks Fifth Avenue                                                                        |  |                                                                                                                           |  | 
|Via Parque                     |  | Rio de Janeiro, Rio de Janeiro (Brazil) |                         |           | 50       |     |      |       | 564,032   |  |              |  | 241,271 |                             |            | Kalunga, Leaders, Lojas Americanas, Marisa, Cine Via Parque,
    Claro Hall, Magic Games, C&C Casa e Construcao |  |                                                                                                                           |  | 
|Village of Merrick Park(2)     |  |                                         | Coral Gables, FL        |           |          |     | 40   |       |           |  | 742,914      |  |         |                             | 412,914    |                                                                                                                 |  | Neiman Marcus, Nordstrom                                                                                                  |   |  |    | 
|Vista Ridge Mall               |  |                                         | Lewisville (Dallas), TX |           |          |     | 50   |       |           |  | 1,103,078    |  |         |                             | 336,486    |                                                                                                                 |  | Cinemark, Dillards, Foleys, JCPenney,
    Movies 12, Sears                                                              |   |  |    | 
|Washington Park Mall           |  |                                         | Bartlesville, OK        |           |          |     | 50   |       |           |  | 357,346      |  |         |                             | 163,050    |                                                                                                                 |  | Dillards, JCPenney, Sears                                                                                                |   |  |    | 
|Water Tower Place              |  |                                         | Chicago, IL             |           |          |     | 52   |       |           |  | 712,798      |  |         |                             | 285,755    |                                                                                                                 |  | Lord & Taylor, Marshall Fields                                                                                           |   |  |    | 
|West Oaks Mall                 |  |                                         | Ocoee (Orlando), FL     |           |          |     | 50   |       |           |  | 1,168,566    |  |         |                             | 371,816    |                                                                                                                 |  | AMC Theatres, Dillards, JCPenney, McRaes, Sears                                                                         |   |  | 1   | 
|Westroads Mall                 |  |                                         | Omaha, NE               |           |          |     | 51   |       |           |  | 1,138,923    |  |         |                             | 314,863    |                                                                                                                 |  | Dicks Sporting Goods, JCPenney, Tilt, Von Maur, Younkers                                                                 |   |  | 1   | 
|Whalers Village                |  |                                         | Lahaina, HI             |           |          |     | 50   |       |           |  | 105,715      |  |         |                             | 105,715    |                                                                                                                 |  | N/A                                                                                                                       |   |  | N/A | 
|Willowbrook Mall               |  |                                         | Houston, TX             |           |          |     | 50   |       |           |  | 1,511,885    |  |         |                             | 405,301    |                                                                                                                 |  | Dillards, Foleys, JCPenney, Sears                                                                                       |   |  | 1   | 
|The Woodlands Mall             |  | The Woodlands (Houston), TX             |                         |           | 50       |     |      |       | 1,332,854 |  |              |  | 487,625 |                             |            | Dillards, Foleys, Foleys Children Store,
    JCPenney, Mervyns, Sears                                       |  |                                                                                                                           |  | 
|                               |  |                                         |                         |           |          |     |      |       |           |  |              |  |         |                             |            |                                                                                                                 | 
|                               |  |                                         |                         |           |          |     |      |       |           |  | 59,066,725   |  |         |                             | 21,857,493 |                                                                                                                 |  |                                                                                                                           |   |  |     | 
|                               |  |                                         |                         |           |          |     |      |       |           |  |              |  |         |                             |            |                                                                                                                 | 






|    |                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In certain cases, where a centers location is part of a
    larger metropolitan area, the metropolitan area is identified in
    parenthesis.
|   
|(2) | A portion of the property is subject to ground lease.                                                                                         

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Leasing




|      |  |                |         |        |                 |  |          |             |  |   |           |        |  |         |          |  |             |  |       |  |  |   |       | 
|----- |  | -------------- | ------- | ------ | --------------- |  | -------- | ----------- |  | - | --------- | ------ |  | ------- | -------- |  | ----------- |  | ----- |  |  | - | ----- | 
|      |  | Consolidated*  |         |        | Unconsolidated* | 
|      |  |                |         |        |                 | 
|      |  |                |         | Square |                 |  | Rent per |             |  |   |           | Square |  |         | Rate per | 
|      |  | Base Rent      |         |        | Footage         |  |          | Square Foot |  |   | Base Rent |        |  | Footage |          |  | Square Foot | 
|      |  |                |         |        |                 |  |          |             |  |   |           |        |  |         |          |  |             | 
|      |  | (In thousands) |         |        | (In thousands)  | 
|2006  |  | $              | 103,983 |        |                 |  | 3,448    |             |  | $ | 30.16     |        |  | $       | 29,594   |  |             |  | 881   |  |  | $ | 33.59 | 
|2007  |  |                | 99,456  |        |                 |  | 3,241    |             |  |   | 30.69     |        |  |         | 24,988   |  |             |  | 722   |  |  |   | 34.61 | 
|2008  |  |                | 104,657 |        |                 |  | 3,262    |             |  |   | 32.08     |        |  |         | 25,514   |  |             |  | 714   |  |  |   | 35.73 | 
|2009  |  |                | 112,595 |        |                 |  | 2,958    |             |  |   | 38.06     |        |  |         | 23,908   |  |             |  | 560   |  |  |   | 42.69 | 
|2010  |  |                | 123,085 |        |                 |  | 3,366    |             |  |   | 36.57     |        |  |         | 27,506   |  |             |  | 654   |  |  |   | 42.06 | 
|      |  |                |         |        |                 |  |          |             |  |   |           |        |  |         |          |  |             | 
|Total |  | $              | 543,776 |        |                 |  | 16,275   |             |  | $ | 33.41     |        |  | $       | 131,510  |  |             |  | 3,531 |  |  | $ | 37.24 | 
|      |  |                |         |        |                 |  |          |             |  |   |           |        |  |         |          |  |             | 






|  |                                                                                                                                                                   
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Excludes Anchors, community centers and tenants paying overage
    rent in lieu of base minimum rent. Unconsolidated amounts
    reflected at our ownership share.



Anchors




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|                                     |                               |                                         |  |    |                |  |  |        |        |  |             |    |    |        |  |       |             |  |  |     |     |  |  |        |        | 
|------------------------------------ | ----------------------------- | --------------------------------------- |  | -- | -------------- |  |  | ------ | ------ |  | ----------- | -- | -- | ------ |  | ----- | ----------- |  |  | --- | --- |  |  | ------ | ------ | 
|                                     |                               | Consolidated                            |  |    | Unconsolidated |  |  | Total  |       
|                                     |                               |                                         |  |    |                |  |  |        |       
|                                     |                               | Total                                   |  |    | Square Feet    |  |  | Total  |        |  | Square Feet |    |    | Total  |  |       | Square Feet | 
|                                     |                               | Stores                                  |  |    | (000s)        |  |  | Stores |        |  | (000s)     |    |    | Stores |  |       | (000s)     | 
|                                     |                               |                                         |  |    |                |  |  |        |        |  |             |    |    |        |  |       |             | 
|Federated Department Stores, Inc.(1) |                               |                                         |  |    |                |  |  |        |        |  |             |    |    |        |  |       |             |  |  |     |     |  |  |       
|                                     | Bloomingdales                |                                         |  | 1  |                |  |  | 260    |        |  |             | 2  |    |        |  | 373   |             |  |  | 3   |     |  |  | 633    |       
|                                     | Bloomingdales Home           |                                         |  | 1  |                |  |  | 100    |        |  |             | 1  |    |        |  | 92    |             |  |  | 2   |     |  |  | 192    |       
|                                     | Davids Bridal                |                                         |  | 1  |                |  |  | 10     |        |  |             |   |    |        |  |      |             |  |  | 1   |     |  |  | 10     |       
|                                     | Famous Barr                   |                                         |  | 3  |                |  |  | 534    |        |  |             |   |    |        |  |      |             |  |  | 3   |     |  |  | 534    |       
|                                     | Filenes                      |                                         |  | 2  |                |  |  | 325    |        |  |             | 5  |    |        |  | 812   |             |  |  | 7   |     |  |  | 1,137  |       
|                                     | Filenes Home & Mens Store   |                                         |  |   |                |  |  |       |        |  |             | 1  |    |        |  | 103   |             |  |  | 1   |     |  |  | 103    |       
|                                     | Filenes Home Store           |                                         |  | 1  |                |  |  | 41     |        |  |             |   |    |        |  |      |             |  |  | 1   |     |  |  | 41     |       
|                                     | Foleys                       |                                         |  | 12 |                |  |  | 1,893  |        |  |             | 12 |    |        |  | 2,288 |             |  |  | 24  |     |  |  | 4,181  |       
|                                     | Foleys Childrens Store      |                                         |  |   |                |  |  |       |        |  |             | 1  |    |        |  | 17    |             |  |  | 1   |     |  |  | 17     |       
|                                     | Hechts                       |                                         |  | 7  |                |  |  | 1,173  |        |  |             | 2  |    |        |  | 341   |             |  |  | 9   |     |  |  | 1,514  |       
|                                     | L.S. Ayres                    |                                         |  | 1  |                |  |  | 242    |        |  |             |   |    |        |  |      |             |  |  | 1   |     |  |  | 242    |       
|                                     | Lord & Taylor                 |                                         |  | 6  |                |  |  | 758    |        |  |             | 6  |    |        |  | 799   |             |  |  | 12  |     |  |  | 1,557  |       
|                                     | Macys                        |                                         |  | 40 |                |  |  | 6,614  |        |  |             | 21 |    |        |  | 4,026 |             |  |  | 61  |     |  |  | 10,640 |       
|                                     | Macys Home Store             |                                         |  | 2  |                |  |  | 202    |        |  |             | 1  |    |        |  | 112   |             |  |  | 3   |     |  |  | 314    |       
|                                     | Marshall Fields              |                                         |  | 14 |                |  |  | 2,135  |        |  |             | 5  |    |        |  | 945   |             |  |  | 19  |     |  |  | 3,080  |       
|                                     | Marshall Fields Mens & Home |                                         |  | 2  |                |  |  | 239    |        |  |             |   |    |        |  |      |             |  |  | 2   |     |  |  | 239    |       
|                                     | Marshall Fields Womens      |                                         |  | 1  |                |  |  | 202    |        |  |             |   |    |        |  |      |             |  |  | 1   |     |  |  | 202    |       
|                                     | Meier & Frank                 |                                         |  | 3  |                |  |  | 502    |        |  |             | 1  |    |        |  | 199   |             |  |  | 4   |     |  |  | 701    |       
|                                     | Meier & Frank Home Store      |                                         |  | 1  |                |  |  | 84     |        |  |             | 1  |    |        |  | 166   |             |  |  | 2   |     |  |  | 250    |       
|                                     | Robinsons-May                 |                                         |  | 4  |                |  |  | 650    |        |  |             | 4  |    |        |  | 676   |             |  |  | 8   |     |  |  | 1,326  |       
|                                     | Strawbridges                 |                                         |  |   |                |  |  |       |        |  |             | 2  |    |        |  | 426   |             |  |  | 2   |     |  |  | 426    |       
|                                     |                               |                                         |  |    |                |  |  |        |        |  |             |    |    |        |  |       |             | 
|                                     |                               | Total Federated Department Stores, Inc. |  |    | 102            |  |  |        | 15,964 |  |             |    | 65 |        |  |       | 11,375      |  |  |     | 167 |  |  |        | 27,339 | 
|                                     |                               |                                         |  |    |                |  |  |        |        |  |             |    |    |        |  |       |             | 
|Sears Holdings Corporation           |                               |                                         |  |    |                |  |  |        |        |  |             |    |    |        |  |       |             |  |  |     |     |  |  |       
|                                     | Sears                         |                                         |  | 94 |                |  |  | 13,260 |        |  |             | 34 |    |        |  | 5,416 |             |  |  | 128 |     |  |  | 18,676 |       
|                                     | Kmart                         |                                         |  | 1  |                |  |  | 88     |        |  |             |   |    |        |  |      |             |  |  | 1   |     |  |  | 88     |       
|                                     |                               |                                         |  |    |                |  |  |        |        |  |             |    |    |        |  |       |             | 
|                                     |                               | Total Sears Holdings Corporation        |  |    | 95             |  |  |        | 13,348 |  |             |    | 34 |        |  |       | 5,416       |  |  |     | 129 |  |  |        | 18,764 | 
|                                     |                               |                                         |  |    |                |  |  |        |        |  |             |    |    |        |  |       |             | 
|JCPenney Company, Inc.               |                               |                                         |  |    |                |  |  |        |        |  |             |    |    |        |  |       |             |  |  |     |     |  |  |       
|                                     | JCPenney                      |                                         |  | 93 |                |  |  | 10,565 |        |  |             | 36 |    |        |  | 5,017 |             |  |  | 129 |     |  |  | 15,582 |       
|                                     |                               |                                         |  |    |                |  |  |        |        |  |             |    |    |        |  |       |             | 
|                                     |                               | Total JCPenney Company, Inc.            |  |    | 93             |  |  |        | 10,565 |  |             |    | 36 |        |  |       | 5,017       |  |  |     | 129 |  |  |        | 15,582 | 
|                                     |                               |                                         |  |    |                |  |  |        |        |  |             |    |    |        |  |       |             | 
|Dillards Inc.                       |                               |                                         |  |    |                |  |  |        |        |  |             |    |    |        |  |       |             |  |  |     |     |  |  |       
|                                     | Dillards                     |                                         |  | 52 |                |  |  | 8,482  |        |  |             | 22 |    |        |  | 4,207 |             |  |  | 74  |     |  |  | 12,689 |       
|                                     | Dillards Mens               |                                         |  |   |                |  |  |       |        |  |             | 1  |    |        |  | 80    |             |  |  | 1   |     |  |  | 80     |       
|                                     | Dillards Mens & Home        |                                         |  | 2  |                |  |  | 257    |        |  |             | 2  |    |        |  | 157   |             |  |  | 4   |     |  |  | 414    |       
|                                     |                               |                                         |  |    |                |  |  |        |        |  |             |    |    |        |  |       |             | 
|                                     |                               | Total Dillards Inc.                    |  |    | 54             |  |  |        | 8,739  |  |             |    | 25 |        |  |       | 4,444       |  |  |     | 79  |  |  |        | 13,183 | 
|                                     |                               |                                         |  |    |                |  |  |        |        |  |             |    |    |        |  |       |             | 

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|                                        |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             |  |     |    |    |  |        |       |       | 
|--------------------------------------- | --------------------- | ------------------------- | --- | -- | -------------- |  | ------ | ------ | ----- |  | ----------- | -- | -- | ------ | ------ | ----- | ----------- |  | --- | -- | -- |  | ------ | ----- | ----- | 
|                                        |                       | Consolidated              |     |    | Unconsolidated |  |        | Total  |      
|                                        |                       |                           |     |    |                |  |        |        |      
|                                        |                       | Total                     |     |    | Square Feet    |  |        | Total  |       |  | Square Feet |    |    | Total  |        |       | Square Feet | 
|                                        |                       | Stores                    |     |    | (000s)        |  |        | Stores |       |  | (000s)     |    |    | Stores |        |       | (000s)     | 
|                                        |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             | 
|Saks Holdings, Inc.                     |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             |  |     |    |    |  |        |      
|                                        | Bergners             |                           |     | 1  |                |  |        | 154    |       |  |             |   |    |        |        |      |             |  |     | 1  |    |  |        | 154   |      
|                                        | Boston Store          |                           |     | 1  |                |  |        | 211    |       |  |             |   |    |        |        |      |             |  |     | 1  |    |  |        | 211   |      
|                                        | Carson Pirie Scott    |                           |     | 1  |                |  |        | 138    |       |  |             |   |    |        |        |      |             |  |     | 1  |    |  |        | 138   |      
|                                        | Herbergers           |                           |     | 3  |                |  |        | 187    |       |  |             |   |    |        |        |      |             |  |     | 3  |    |  |        | 187   |      
|                                        | Parisian              |                           |     | 1  |                |  |        | 86     |       |  |             | 5  |    |        |        | 518   |             |  |     | 6  |    |  |        | 604   |      
|                                        | Saks Fifth Avenue     |                           |     | 7  |                |  |        | 478    |       |  |             | 1  |    |        |        | 120   |             |  |     | 8  |    |  |        | 598   |      
|                                        | Younkers              |                           |     | 8  |                |  |        | 940    |       |  |             | 2  |    |        |        | 244   |             |  |     | 10 |    |  |        | 1,184 |      
|                                        |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             | 
|                                        |                       | Total Saks Holdings, Inc. |     |    | 22             |  |        |        | 2,194 |  |             |    | 8  |        |        |       | 882         |  |     |    | 30 |  |        |       | 3,076 | 
|                                        |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             | 
|MDS Texas Realty I (d.b.a. Mervyns)(2) |                       |                           | 20  |    |                |  | 1,645  |        |       |  | 8           |    |    |        | 674    |       |             |  | 28  |    |    |  | 2,319  |      
|                                        |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             | 
|Nordstrom, Inc.                         |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             |  |     |    |    |  |        |      
|                                        | Nordstrom             |                           |     | 8  |                |  |        | 1,255  |       |  |             | 12 |    |        |        | 2,046 |             |  |     | 20 |    |  |        | 3,301 |      
|                                        |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             | 
|                                        |                       | Total Nordstrom, Inc.     |     |    | 8              |  |        |        | 1,255 |  |             |    | 12 |        |        |       | 2,046       |  |     |    | 20 |  |        |       | 3,301 | 
|                                        |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             | 
|Belk, Inc.                              |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             |  |     |    |    |  |        |      
|                                        | Belk                  |                           |     | 5  |                |  |        | 848    |       |  |             | 3  |    |        |        | 454   |             |  |     | 8  |    |  |        | 1,302 |      
|                                        | Belk Mens            |                           |     | 1  |                |  |        | 34     |       |  |             |   |    |        |        |      |             |  |     | 1  |    |  |        | 34    |      
|                                        | Hudson Belk           |                           |     | 1  |                |  |        | 180    |       |  |             |   |    |        |        |      |             |  |     | 1  |    |  |        | 180   |      
|                                        | McRaes               |                           |     | 4  |                |  |        | 410    |       |  |             | 1  |    |        |        | 213   |             |  |     | 5  |    |  |        | 623   |      
|                                        | Proffitts            |                           |     | 1  |                |  |        | 90     |       |  |             | 1  |    |        |        | 230   |             |  |     | 2  |    |  |        | 320   |      
|                                        | Proffitts Home Store |                           |     | 1  |                |  |        | 23     |       |  |             |   |    |        |        |      |             |  |     | 1  |    |  |        | 23    |      
|                                        |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             | 
|Total Belk, Inc.                        |                       |                           | 13  |    |                |  | 1,585  |        |       |  | 5           |    |    |        | 897    |       |             |  | 18  |    |    |  | 2,482  |      
|                                        |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             | 
|Target Corporation                      |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             |  |     |    |    |  |        |      
|                                        | Target                |                           |     | 14 |                |  |        | 1,543  |       |  |             | 2  |    |        |        | 300   |             |  |     | 16 |    |  |        | 1,843 |      
|                                        |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             | 
|                                        |                       | Total Target Corporation  |     |    | 14             |  |        |        | 1,543 |  |             |    | 2  |        |        |       | 300         |  |     |    | 16 |  |        |       | 1,843 | 
|                                        |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             | 
|Others                                  |                       |                           | 107 |    |                |  | 7,255  |        |       |  | 46          |    |    |        | 3,558  |       |             |  | 153 |    |    |  | 10,814 |      
|                                        |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             | 
|Grand Total                             |                       |                           | 528 |    |                |  | 64,093 |        |       |  | 241         |    |    |        | 34,609 |       |             |  | 769 |    |    |  | 98,703 |      
|                                        |                       |                           |     |    |                |  |        |        |       |  |             |    |    |        |        |       |             | 






|    |                                                                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In August 2005, Federated Department Stores, Inc. completed
    its merger with May Department Stores Company. In July and
    October, Federated announced planned store closings which
    included 15 of our Anchor stores. We may purchase some of these
    stores.
|   
|(2) | In 2006, we acquired six Mervyns anchor locations for an
    aggregate purchase price of approximately $76 million.                                                                                                                                                    

Non-Retail Properties


mixed-use







|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings



28



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|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders






PART II







|        |                                                                                                                     
|------- | --------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities









|              |  |             |       |  |     |   |       | 
|------------- |  | ----------- | ----- |  | --- | - | ----- | 
|              |  | Stock Price |      
|              |  |             |      
|Quarter Ended |  | High        |       |  | Low |  
|              |  |             |       |  |     |  
|2005          |  |             |       |  |     |   |       | 
|December 31   |  | $           | 48.27 |  |     | $ | 39.60 | 
|September 30  |  |             | 47.48 |  |     |   | 40.82 | 
|June 30       |  |             | 42.08 |  |     |   | 33.40 | 
|March 31      |  |             | 37.75 |  |     |   | 31.38 | 
|2004          |  |             |       |  |     |   |       | 
|December 31   |  | $           | 36.90 |  |     | $ | 30.90 | 
|September 30  |  |             | 32.12 |  |     |   | 28.41 | 
|June 30       |  |             | 35.30 |  |     |   | 24.31 | 
|March 31      |  |             | 35.15 |  |     |   | 27.25 | 
|2003          |  |             |       |  |     |   |       | 
|December 31   |  | $           | 28.03 |  |     | $ | 23.91 | 
|September 30  |  |             | 24.03 |  |     |   | 20.77 | 
|June 30       |  |             | 21.06 |  |     |   | 17.83 | 
|March 31      |  |             | 18.40 |  |     |   | 15.90 | 

29



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|                 |  |             |                  |  |              |  |                  |        |  |   |     | 
|---------------- |  | ----------- | ---------------- |  | ------------ |  | ---------------- | ------ |  | - | --- | 
|Declaration Date |  | Record Date |                  |  | Payment Date |  |                  | Amount | 
|                 |  |             |                  |  |              |  |                  |        | 
|January 6, 2006  |  |             | January 17, 2006 |  |              |  | January 31, 2006 |        |  | $ | .41 | 
|October 6, 2005  |  |             | October 18, 2005 |  |              |  | October 31, 2005 |        |  |   | .41 | 
|July 5, 2005     |  |             | July 15, 2005    |  |              |  | July 29, 2005    |        |  |   | .36 | 
|April 4, 2005    |  |             | April 15, 2005   |  |              |  | April 29, 2005   |        |  |   | .36 | 
|January 7, 2005  |  |             | January 17, 2005 |  |              |  | January 31, 2005 |        |  |   | .36 | 
|August 20, 2004  |  |             | October 15, 2004 |  |              |  | October 29, 2004 |        |  |   | .36 | 
|July 2, 2004     |  |             | July 15, 2004    |  |              |  | July 30, 2004    |        |  |   | .30 | 
|April 5, 2004    |  |             | April 15, 2004   |  |              |  | April 30, 2004   |        |  |   | .30 | 
|January 5, 2004  |  |             | January 15, 2004 |  |              |  | January 30, 2004 |        |  |   | .30 | 
|October 1, 2003  |  |             | October 15, 2003 |  |              |  | October 31, 2003 |        |  |   | .30 | 
|June 9, 2003     |  |             | July 7, 2003     |  |              |  | July 31, 2003    |        |  |   | .24 | 
|March 14, 2003   |  |             | April 3, 2003    |  |              |  | April 30, 2003   |        |  |   | .24 | 





30



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| |                                   
| | ----------------------------------
| | Item 6.Selected
    Financial Data





|                                                     |                                            |                                          |            |      |      |   |           |      |  |   |           |      |  |      |          |      |  |   |          |       |  
|---------------------------------------------------- | ------------------------------------------ | ---------------------------------------- | ---------- | ---- | ---- | - | --------- | ---- |  | - | --------- | ---- |  | ---- | -------- | ---- |  | - | -------- | ----- | -
|                                                     |                                            | 2005                                     |            |      | 2004 |   |           | 2003 |  |   | 2002      |      |  | 2001 |         
|                                                     |                                            |                                          |            |      |      |   |           |      |  |   |           |      |  |      |         
|                                                     |                                            | (In thousands, except per share amounts) |           
|Operating Data                                       |                                            |                                          |            |      |      |   |           |      |  |   |           |      |  |      |          |      |  |   |          |      
|Revenues                                             |                                            | $                                        | 3,073,416  |      |      | $ | 1,799,881 |      |  | $ | 1,262,791 |      |  | $    | 973,440  |      |  | $ | 799,365  |      
|Depreciation and amortization                        |                                            |                                          | (672,914   | )    |      |   | (364,854  | )    |  |   | (230,195  | )    |  |      | (179,036 | )    |  |   | (144,863 | )    
|Other operating expenses                             |                                            |                                          | (1,342,161 | )    |      |   | (693,735  | )    |  |   | (484,196  | )    |  |      | (366,806 | )    |  |   | (293,565 | )    
|Interest expense, net                                |                                            |                                          | (1,020,825 | )    |      |   | (468,958  | )    |  |   | (276,235  | )    |  |      | (215,340 | )    |  |   | (220,402 | )    
|Provision for income taxes                           |                                            |                                          | (50,646    | )    |      |   | (2,383    | )    |  |   | (98       | )    |  |      | (119     | )    |  |   | (160     | )    
|Income allocated to minority interests               |                                            |                                          | (43,989    | )    |      |   | (105,274  | )    |  |   | (110,984  | )    |  |      | (86,213  | )    |  |   | (40,288  | )    
|Equity in income of unconsolidated affiliates        |                                            |                                          | 120,986    |      |      |   | 88,191    |      |  |   | 94,480    |      |  |      | 80,825   |      |  |   | 60,195   |      
|Network discontinuance costs                         |                                            |                                          |           |      |      |   |          |      |  |   |          |      |  |      |         |      |  |   | (66,000  | )    
|                                                     |                                            |                                          |            |      |      |   |           |      |  |   |           |      |  |      |         
|Income from continuing operations                    |                                            |                                          | 63,867     |      |      |   | 252,868   |      |  |   | 255,563   |      |  |      | 206,751  |      |  |   | 94,282   |      
|Income from discontinued operations, net             |                                            |                                          | 11,686     |      |      |   | 14,984    |      |  |   | 7,848     |      |  |      | 2,507    |      |  |   | 1,362    |      
|                                                     |                                            |                                          |            |      |      |   |           |      |  |   |           |      |  |      |         
|Income before cumulative effect of accounting change |                                            |                                          | 75,553     |      |      |   | 267,852   |      |  |   | 263,411   |      |  |      | 209,258  |      |  |   | 95,644   |      
|Cumulative effect of accounting change               |                                            |                                          |           |      |      |   |          |      |  |   |          |      |  |      |         |      |  |   | (3,334   | )    
|                                                     |                                            |                                          |            |      |      |   |           |      |  |   |           |      |  |      |         
|Net income                                           |                                            |                                          | 75,553     |      |      |   | 267,852   |      |  |   | 263,411   |      |  |      | 209,258  |      |  |   | 92,310   |      
|Convertible preferred stock dividends                |                                            |                                          |           |      |      |   |          |      |  |   | (13,030   | )    |  |      | (24,467  | )    |  |   | (24,467  | )    
|                                                     |                                            |                                          |            |      |      |   |           |      |  |   |           |      |  |      |         
|Net income available to common stockholders          |                                            | $                                        | 75,553     |      |      | $ | 267,852   |      |  | $ | 250,381   |      |  | $    | 184,791  |      |  | $ | 67,843   |      
|                                                     |                                            |                                          |            |      |      |   |           |      |  |   |           |      |  |      |         
|Basic earnings per share:                            |                                            |                                          |            |      |      |   |           |      |  |   |           |      |  |      |          |      |  |   |          |      
|                                                     | Continuing operations                      |                                          | $          | 0.27 |      |   | $         | 1.15 |  |   | $         | 1.21 |  |      | $        | 0.98 |  |   | $        | 0.44  |  
|                                                     | Discontinued operations                    |                                          |            | 0.05 |      |   |           | 0.07 |  |   |           | 0.04 |  |      |          | 0.01 |  |   |          | 0.01  |  
|                                                     | Cumulative effect of accounting
    change |                                          |            |     |      |   |           |     |  |   |           |     |  |      |          |     |  |   |          | (0.02 | )
|                                                     |                                            |                                          |            |      |      |   |           |      |  |   |           |      |  |      |         
|                                                     |                                            | $                                        | 0.32       |      |      | $ | 1.22      |      |  | $ | 1.25      |      |  | $    | 0.99     |      |  | $ | 0.43     |      
|                                                     |                                            |                                          |            |      |      |   |           |      |  |   |           |      |  |      |         
|Diluted earnings per share:                          |                                            |                                          |            |      |      |   |           |      |  |   |           |      |  |      |          |      |  |   |          |      
|                                                     | Continuing operations                      |                                          | $          | 0.27 |      |   | $         | 1.15 |  |   | $         | 1.19 |  |      | $        | 0.97 |  |   | $        | 0.44  |  
|                                                     | Discontinued operations                    |                                          |            | 0.05 |      |   |           | 0.06 |  |   |           | 0.03 |  |      |          | 0.01 |  |   |          | 0.01  |  
|                                                     | Cumulative effect of accounting
    change |                                          |            |     |      |   |           |     |  |   |           |     |  |      |          |     |  |   |          | (0.02 | )
|                                                     |                                            |                                          |            |      |      |   |           |      |  |   |           |      |  |      |         
|                                                     |                                            | $                                        | 0.32       |      |      | $ | 1.21      |      |  | $ | 1.22      |      |  | $    | 0.98     |      |  | $ | 0.43     |      
|                                                     |                                            |                                          |            |      |      |   |           |      |  |   |           |      |  |      |         
|Distributions declared per share                     |                                            | $                                        | 1.49       |      |      | $ | 1.26      |      |  | $ | 0.78      |      |  | $    | 0.92     |      |  | $ | 0.80     |      
|                                                     |                                            |                                          |            |      |      |   |           |      |  |   |           |      |  |      |         

31



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|                                                      |  |                                          |            |   |      |   |            |      |  |   |            |   |  |      |           |   |  |   |           |  
|----------------------------------------------------- |  | ---------------------------------------- | ---------- | - | ---- | - | ---------- | ---- |  | - | ---------- | - |  | ---- | --------- | - |  | - | --------- | -
|                                                      |  | 2005                                     |            |   | 2004 |   |            | 2003 |  |   | 2002       |   |  | 2001 |          
|                                                      |  |                                          |            |   |      |   |            |      |  |   |            |   |  |      |          
|                                                      |  | (In thousands, except per share amounts) |           
|Balance Sheet Data                                    |  |                                          |            |   |      |   |            |      |  |   |            |   |  |      |           |   |  |   |           |  
|Investment in real estate assets  cost               |  | $                                        | 25,401,633 |   |      | $ | 25,254,333 |      |  | $ | 10,307,961 |   |  | $    | 7,724,515 |   |  | $ | 5,707,967 |  
|Total assets                                          |  |                                          | 25,307,019 |   |      |   | 25,718,625 |      |  |   | 9,582,897  |   |  |      | 7,280,822 |   |  |   | 5,646,807 |  
|Total debt                                            |  |                                          | 20,418,875 |   |      |   | 20,310,947 |      |  |   | 6,649,490  |   |  |      | 4,592,311 |   |  |   | 3,398,207 |  
|Preferred minority interests                          |  |                                          | 205,944    |   |      |   | 403,161    |      |  |   | 495,211    |   |  |      | 468,201   |   |  |   | 175,000   |  
|Common minority interests                             |  |                                          | 430,292    |   |      |   | 551,282    |      |  |   | 408,613    |   |  |      | 377,746   |   |  |   | 380,359   |  
|Convertible preferred stock                           |  |                                          |           |   |      |   |           |      |  |   |           |   |  |      | 337,500   |   |  |   | 337,500   |  
|Stockholders equity                                  |  |                                          | 1,932,918  |   |      |   | 2,143,150  |      |  |   | 1,670,409  |   |  |      | 1,196,525 |   |  |   | 1,183,386 |  
|Cash Flow Data                                        |  |                                          |            |   |      |   |            |      |  |   |            |   |  |      |           |   |  |   |           |  
|Operating activities                                  |  | $                                        | 841,978    |   |      | $ | 719,376    |      |  | $ | 585,735    |   |  | $    | 460,495   |   |  | $ | 207,125   |  
|Investing activities                                  |  |                                          | (159,565   | ) |      |   | (9,021,509 | )    |  |   | (1,753,426 | ) |  |      | (949,411  | ) |  |   | (367,366  | )
|Financing activities                                  |  |                                          | (619,203   | ) |      |   | 8,331,037  |      |  |   | 1,124,728  |   |  |      | 381,801   |   |  |   | 293,767   |  
|Funds From Operations(1)                              |  |                                          |            |   |      |   |            |      |  |   |            |   |  |      |           |   |  |   |           |  
|Operating Partnership                                 |  | $                                        | 896,005    |   |      | $ | 766,164    |      |  | $ | 618,561    |   |  | $    | 485,304   |   |  | $ | 296,777   |  
|Less: Allocation to Operating Partnership unitholders |  |                                          | (166,003   | ) |      |   | (154,347   | )    |  |   | (138,568   | ) |  |      | (116,170  | ) |  |   | (80,215   | )
|                                                      |  |                                          |            |   |      |   |            |      |  |   |            |   |  |      |          
|General Growth stockholders                           |  | $                                        | 730,002    |   |      | $ | 611,817    |      |  | $ | 479,993    |   |  | $    | 369,134   |   |  | $ | 216,562   |  
|                                                      |  |                                          |            |   |      |   |            |      |  |   |            |   |  |      |          






|    |                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Funds From Operations (FFO as defined below) does
    not represent cash flow from operations as defined by Generally
    Accepted Accounting Principles (GAAP).

Funds From Operations








32



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Reconciliation of FFO to Net Income Available to Common
Stockholders


|                                                                                                   |                                   |                |          |         |      |   |          |         |  |   |          |         |  |      |          |         |  |   |          |         | 
|-------------------------------------------------------------------------------------------------- | --------------------------------- | -------------- | -------- | ------- | ---- | - | -------- | ------- |  | - | -------- | ------- |  | ---- | -------- | ------- |  | - | -------- | ------- | 
|                                                                                                   |                                   | 2005           |          |         | 2004 |   |          | 2003    |  |   | 2002     |         |  | 2001 |         
|                                                                                                   |                                   |                |          |         |      |   |          |         |  |   |          |         |  |      |         
|                                                                                                   |                                   | (In thousands) |         
|FFO:                                                                                               |                                   |                |          |         |      |   |          |         |  |   |          |         |  |      |          |         |  |   |          |        
|                                                                                                   | General Growth stockholders       |                | $        | 730,002 |      |   | $        | 611,817 |  |   | $        | 479,993 |  |      | $        | 369,134 |  |   | $        | 216,562 | 
|                                                                                                   | Operating Partnership unitholders |                |          | 166,003 |      |   |          | 154,347 |  |   |          | 138,568 |  |      |          | 116,170 |  |   |          | 80,215  | 
|                                                                                                   |                                   |                |          |         |      |   |          |         |  |   |          |         |  |      |         
|                                                                                                   | Operating Partnership             |                |          | 896,005 |      |   |          | 766,164 |  |   |          | 618,561 |  |      |          | 485,304 |  |   |          | 296,777 | 
|Depreciation and amortization of capitalized real estate costs                                     |                                   |                | (799,337 | )       |      |   | (440,108 | )       |  |   | (299,711 | )       |  |      | (241,393 | )       |  |   | (200,123 | )      
|FFO of discontinued operations                                                                     |                                   |                | (13,548  | )       |      |   | (6,235   | )       |  |   | (6,299   | )       |  |      | (4,263   | )       |  |   | (2,215   | )      
|Allocations to Operating Partnership unitholders                                                   |                                   |                | (19,253  | )       |      |   | (66,953  | )       |  |   | (56,988  | )       |  |      | (32,897  | )       |  |   | (157     | )      
|                                                                                                   |                                   |                |          |         |      |   |          |         |  |   |          |         |  |      |         
|Income from continuing operations                                                                  |                                   |                | 63,867   |         |      |   | 252,868  |         |  |   | 255,563  |         |  |      | 206,751  |         |  |   | 94,282   |        
|Income from discontinued operations, net of minority interest                                      |                                   |                | 11,686   |         |      |   | 14,984   |         |  |   | 7,848    |         |  |      | 2,507    |         |  |   | 1,362    |        
|                                                                                                   |                                   |                |          |         |      |   |          |         |  |   |          |         |  |      |         
|Income before cumulative effect of accounting change and
    convertible preferred stock dividends |                                   |                | 75,553   |         |      |   | 267,852  |         |  |   | 263,411  |         |  |      | 209,258  |         |  |   | 95,644   |        
|Cumulative effect of accounting change                                                             |                                   |                |         |         |      |   |         |         |  |   |         |         |  |      |         |         |  |   | (3,334   | )      
|Convertible preferred stock dividends                                                              |                                   |                |         |         |      |   |         |         |  |   | (13,030  | )       |  |      | (24,467  | )       |  |   | (24,467  | )      
|                                                                                                   |                                   |                |          |         |      |   |          |         |  |   |          |         |  |      |         
|Net income available to common stockholders                                                        |                                   | $              | 75,553   |         |      | $ | 267,852  |         |  | $ | 250,381  |         |  | $    | 184,791  |         |  | $ | 67,843   |        
|                                                                                                   |                                   |                |          |         |      |   |          |         |  |   |          |         |  |      |         






|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations



Overview  Retail and Other Segment


on-site


public-to


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|  |                                                                                                                                                                                                                                                                                                                                                                                                   
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Renewing expiring leases and re-leasing existing space at rates
    higher than expiring or existing rates. The average annual
    new/renewal lease rate for our Consolidated Retail Properties
    for 2005 was $37.72 per square foot which was
    $4.43 per square foot higher than the average annualized in
    place rent per square foot, as detailed in the table immediately
    below.
| 
| | Increasing occupancy at the properties so that more space is
    generating rent. The occupancy percentage at properties which
    are not under redevelopment in our Retail Company Portfolio was
    92.5 percent at December 31, 2005, compared to
    92.1 percent at December 31, 2004.                                                                                                      
| 
| | Increased tenant sales in which we participate through overage
    rents. In 2005, tenant sales per square foot in our Retail
    Company Portfolio increased 6.4 percent over 2004 to
    $437 per square foot.                                                                                                                                                                                  



|                                                                               |  |              |            |   |                |   |            |           |  |   |            |  
|------------------------------------------------------------------------------ |  | ------------ | ---------- | - | -------------- | - | ---------- | --------- |  | - | ---------- | -
|                                                                               |  | Consolidated |            |   | Unconsolidated |   |            | Retail    | 
|                                                                               |  | Retail       |            |   | Retail         |   |            | Company   | 
|                                                                               |  | Properties   |            |   | Properties     |   |            | Portfolio | 
|                                                                               |  |              |            |   |                |   |            |           | 
|Operating Statistics(a)                                                        |  |              |            |   |                |   |            |           |  |   |            |  
|Occupancy                                                                      |  |              | 92.1       | % |                |   | 93.5       | %         |  |   | 92.5       | %
|Trailing 12 month total tenant sales per sq. ft.(b)                            |  | $            | 428        |   |                | $ | 455        |           |  | $ | 437        |  
|% change in total sales(b)                                                     |  |              | 5.9        | % |                |   | 7.2        | %         |  |   | 6.4        | %
|% change in comparable sales(b)                                                |  |              | 3.3        |   |                |   | 3.9        |           |  |   | 3.5        |  
|Mall and freestanding GLA excluding space under redevelopment
    (in sq. ft.) |  |              | 40,354,823 |   |                |   | 19,176,851 |           |  |   | 59,531,674 |  
|Certain Financial Information                                                  |  |              |            |   |                |   |            |           |  |   |            |  
|Average annualized in place rent per sq. ft.                                   |  | $            | 33.29      |   |                | $ | 36.25      |           |  |   |            |  
|Average rent per sq. ft. for new/renewal leases                                |  |              | 37.72      |   |                |   | 40.48      |           |  |   |            |  
|Average rent per sq. ft. for leases expiring in 2005                           |  |              | 29.63      |   |                |   | 32.31      |           |  |   |            |  






|    |  |                                                                                                                   
|--- |  | ------------------------------------------------------------------------------------------------------------------
|(a) |  | Excludes properties currently being redeveloped and/or
    remerchandised and miscellaneous (non-mall) properties.
|   
|(b) |  | Due to tenant sales reporting timelines, data presented is as of
    November.                                    



ground-up


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|  |                                                                  
|- | -----------------------------------------------------------------
| | Lincolnshire Commons in Lincolnshire (Chicago), Illinois         
| 
| | Otay Ranch Town Center in Chula Vista (San Diego),
    California
| 
| | Gateway Overlook in Benson, Maryland                             
| 
| | Natick West in Natick, Massachusetts                             
| 
| | The Shops at Fallen Timbers, Maumee (Toledo), Ohio               
| 
| | Pinnacle Hills Promenade in Rogers, Arkansas                     





Overview  Master Planned Communities Segment




Overview  Other








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Seasonality




Use of Estimates




Critical Accounting Policies




Initial valuations and estimated useful lives or amortization
periods for property and intangibles.


36



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##### Table of Contents







Recoverable amounts of receivables and deferred taxes.


Capitalization of development and leasing costs.


Revenue recognition and related matters. straight-line below-market Straight-line


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Acquisitions




|                                                                                                                  |  |                  |              |               |       |   |          |                 |  |   |         | 
|----------------------------------------------------------------------------------------------------------------- |  | ---------------- | ------------ | ------------- | ----- | - | -------- | --------------- |  | - | ------- | 
|                                                                                                                  |  |                  |              | Gross         |       |   |         
|                                                                                                                  |  |                  |              | Purchase      |       |   | New or   |                
|                                                                                                                  |  | Acquisition Date |              |               | Price |   |          | Assumed Debt(1) | 
|                                                                                                                  |  |                  |              |               |       |   |          |                 | 
|                                                                                                                  |  |                  |              | (In millions) |       |   |         
|2005                                                                                                              |  |                  |              |               |       |   |          |                 |  |   |         | 
|20% ownership interest in Shopping Leblon (under development)
    (through Cencom, S.A. (Brazil))                 |  |                  | August 3     |               |       | $ | 13.4     |                 |  |   |        | 
|50% ownership interest in Pinnacle Hills Promenade, a
    development in progress, (through Rogers Retail L.L.C.) |  |                  | September 30 |               |       |   | 18.5     |                 |  |   |        | 
|50% interest in Circle T Power Center, a development in
    progress, (through 170 Retail Associates, LTD)        |  |                  | October 31   |               |       |   | 14.8     |                 |  |   |        | 
|50% interest in Whalers Village (through GGP/ Teachers)                                                           |  |                  | November 1   |               |       |   | 85.0     |                 |  | $ | 67.5    | 
|                                                                                                                  |  |                  |              |               |       |   |          |                 | 
|                                                                                                                  |  |                  |              |               |       | $ | 131.7    |                 |  | $ | 67.5    | 
|                                                                                                                  |  |                  |              |               |       |   |          |                 | 
|2004                                                                                                              |  |                  |              |               |       |   |          |                 |  |   |         | 
|50% ownership interest in Burlington Town Center                                                                  |  |                  | January 7    |               |       | $ | 10.25    |                 |  |   |        | 
|Redlands Mall                                                                                                     |  |                  | January 16   |               |       |   | 14.25    |                 |  |   |        | 
|The remaining 50% ownership interest in Town East Mall                                                            |  |                  | March 1      |               |       |   | 44.5     |                 |  |   |        | 
|Four Seasons Town Centre                                                                                          |  |                  | March 5      |               |       |   | 161.0    |                 |  | $ | 134.4   | 
|331/3% ownership interest in GGP/ Sambil Costa Rica                                                               |  |                  | April 30     |               |       |   | 9.7      | (1)             |  |   |        | 
|50% ownership interest in Riverchase Galleria                                                                     |  |                  | May 11       |               |       |   | 166.0    |                 |  |   | 100.0   | 
|Mall of Louisiana                                                                                                 |  |                  | May 12       |               |       |   | 265.0    |                 |  |   | 185.0   | 
|The Grand Canal Shoppes                                                                                           |  |                  | May 17       |               |       |   | 766.0    |                 |  |   | 766.0   | 
|50% ownership interest in GGP/ NIG Brazil                                                                         |  |                  | July 30      |               |       |   | 7.0      | (2)             |  |   |        | 
|Stonestown Galleria                                                                                               |  |                  | August 13    |               |       |   | 312.0    |                 |  |   | 220.0   | 
|The Rouse Company                                                                                                 |  |                  | November 12  |               |       |   | 14,327.5 | (3)             |  |   | 5,137.8 | 
|                                                                                                                  |  |                  |              |               |       |   |          |                 | 
|                                                                                                                  |  |                  |              |               |       | $ | 16,083.2 |                 |  | $ | 6,543.2 | 
|                                                                                                                  |  |                  |              |               |       |   |          |                 | 

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|                                                        |  |                  |             |               |       |   |         |                 |  |   |         | 
|------------------------------------------------------- |  | ---------------- | ----------- | ------------- | ----- | - | ------- | --------------- |  | - | ------- | 
|                                                        |  |                  |             | Gross         |       |   |        
|                                                        |  |                  |             | Purchase      |       |   | New or  |                
|                                                        |  | Acquisition Date |             |               | Price |   |         | Assumed Debt(1) | 
|                                                        |  |                  |             |               |       |   |         |                 | 
|                                                        |  |                  |             | (In millions) |       |   |        
|2003                                                    |  |                  |             |               |       |   |         |                 |  |   |         | 
|Peachtree Mall                                          |  |                  | April 30    |               |       | $ | 87.6    |                 |  | $ | 53.0    | 
|Saint Louis Galleria                                    |  |                  | June 11     |               |       |   | 235.0   |                 |  |   | 176.0   | 
|Coronado Center                                         |  |                  | June 11     |               |       |   | 175.0   |                 |  |   | 131.0   | 
|The remaining 49% ownership interest in GGP Ivanhoe III |  |                  | July 1      |               |       |   | 459.0   |                 |  |   | 268.0   | 
|Lynnhaven Mall                                          |  |                  | August 27   |               |       |   | 256.5   |                 |  |   | 180.0   | 
|Sikes Senter                                            |  |                  | October 14  |               |       |   | 61.0    |                 |  |   | 41.5    | 
|The Maine Mall                                          |  |                  | October 29  |               |       |   | 270.0   |                 |  |   | 202.5   | 
|Glenbrook Square                                        |  |                  | October 31  |               |       |   | 219.0   |                 |  |   | 164.3   | 
|Foothills Mall                                          |  |                  | December 5  |               |       |   | 100.5   |                 |  |   | 45.7    | 
|Chico Mall                                              |  |                  | December 23 |               |       |   | 62.4    |                 |  |   | 30.6    | 
|Rogue Valley Mall                                       |  |                  | December 23 |               |       |   | 57.5    |                 |  |   | 28.0    | 
|                                                        |  |                  |             |               |       |   |         |                 | 
|                                                        |  |                  |             |               |       | $ | 1,983.5 |                 |  | $ | 1,320.6 | 
|                                                        |  |                  |             |               |       |   |         |                 | 






|    |                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Additional funding, including for those acquisitions for which a
    specific and separate loan was not obtained, was paid from cash
    on hand or proceeds from borrowings under our credit facilities.
|   
|(2) | Total commitment of approximately $32.0 million, all of
    which has been funded at December 31, 2005.                                                                                                  
|   
|(3) | Excludes approximately $130 million of purchase price
    adjustments which were recorded in 2005.                                                                                                       

Results of Operations


General:




on-site


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##### Table of Contents



Retail and Other Segment




|                                          |                                 |      |           |                |      |   |           |            |  |   |            |         |  |  |      |       |  
|----------------------------------------- | ------------------------------- | ---- | --------- | -------------- | ---- | - | --------- | ---------- |  | - | ---------- | ------- |  |  | ---- | ----- | -
|                                          |                                 | 2005 |           |                | 2004 |   |           | $ Increase |  |   | % Increase |        
|                                          |                                 |      |           |                |      |   |           |            |  |   |            |        
|                                          |                                 |      |           | (In thousands) |      |   |          
|Property revenues:                        |                                 |      |           |                |      |   |           |            |  |   |            |         |  |  |      |      
|                                          | Minimum rents                   |      | $         | 2,064,127      |      |   | $         | 1,351,907  |  |   | $          | 712,220 |  |  |      | 52.7  | %
|                                          | Tenant recoveries               |      |           | 936,029        |      |   |           | 607,811    |  |   |            | 328,218 |  |  |      | 54.0  |  
|                                          | Overage rents                   |      |           | 83,713         |      |   |           | 65,065     |  |   |            | 18,648  |  |  |      | 28.7  |  
|                                          | Other                           |      |           | 178,257        |      |   |           | 86,380     |  |   |            | 91,877  |  |  |      | 106.4 |  
|                                          |                                 |      |           |                |      |   |           |            |  |   |            |        
|Total property revenues                   |                                 |      | 3,262,126 |                |      |   | 2,111,163 |            |  |   | 1,150,963  |         |  |  | 54.5 |      
|                                          |                                 |      |           |                |      |   |           |            |  |   |            |        
|Property operating expenses:              |                                 |      |           |                |      |   |           |            |  |   |            |         |  |  |      |      
|                                          | Real estate taxes               |      |           | 261,331        |      |   |           | 167,660    |  |   |            | 93,671  |  |  |      | 55.9  |  
|                                          | Repairs and maintenance         |      |           | 238,605        |      |   |           | 156,401    |  |   |            | 82,204  |  |  |      | 52.6  |  
|                                          | Marketing                       |      |           | 78,227         |      |   |           | 61,571     |  |   |            | 16,656  |  |  |      | 27.1  |  
|                                          | Other property operating costs  |      |           | 510,542        |      |   |           | 282,498    |  |   |            | 228,044 |  |  |      | 80.7  |  
|                                          | Provision for doubtful accounts |      |           | 18,725         |      |   |           | 13,141     |  |   |            | 5,584   |  |  |      | 42.5  |  
|                                          |                                 |      |           |                |      |   |           |            |  |   |            |        
|Total property operating expenses         |                                 |      | 1,107,430 |                |      |   | 681,271   |            |  |   | 426,159    |         |  |  | 62.6 |      
|                                          |                                 |      |           |                |      |   |           |            |  |   |            |        
|Real estate property net operating income |                                 | $    | 2,154,696 |                |      | $ | 1,429,892 |            |  | $ | 724,804    |         |  |  | 50.7 | %    
|                                          |                                 |      |           |                |      |   |           |            |  |   |            |        







|                                          |                                 |                                   |           |           |           |   |           |            |           |   |            |         |         |  |      |      |      | 
|----------------------------------------- | ------------------------------- | --------------------------------- | --------- | --------- | --------- | - | --------- | ---------- | --------- | - | ---------- | ------- | ------- |  | ---- | ---- | ---- | 
|                                          |                                 | 2004                              |           |           | 2003      |   |           | $ Increase |           |   | % Increase |        
|                                          |                                 |                                   |           |           |           |   |           |            |           |   |            |        
|                                          |                                 | (In thousands)                    |          
|Property revenues:                        |                                 |                                   |           |           |           |   |           |            |           |   |            |         |         |  |      |     
|                                          | Minimum rents                   |                                   | $         | 1,351,907 |           |   | $         | 1,061,772  |           |   | $          | 290,135 |         |  |      | 27.3 | %   
|                                          | Tenant recoveries               |                                   |           | 607,811   |           |   |           | 472,471    |           |   |            | 135,340 |         |  |      | 28.6 |     
|                                          | Overage rents                   |                                   |           | 65,065    |           |   |           | 43,552     |           |   |            | 21,513  |         |  |      | 49.4 |     
|                                          | Other                           |                                   |           | 86,380    |           |   |           | 49,456     |           |   |            | 36,924  |         |  |      | 74.7 |     
|                                          |                                 |                                   |           |           |           |   |           |            |           |   |            |        
|                                          |                                 | Total property revenues           |           |           | 2,111,163 |   |           |            | 1,627,251 |   |            |         | 483,912 |  |      |      | 29.7 | 
|                                          |                                 |                                   |           |           |           |   |           |            |           |   |            |        
|Property operating expenses:              |                                 |                                   |           |           |           |   |           |            |           |   |            |         |         |  |      |     
|                                          | Real estate taxes               |                                   |           | 167,660   |           |   |           | 128,332    |           |   |            | 39,328  |         |  |      | 30.6 |     
|                                          | Repairs and maintenance         |                                   |           | 156,401   |           |   |           | 115,149    |           |   |            | 41,252  |         |  |      | 35.8 |     
|                                          | Marketing                       |                                   |           | 61,571    |           |   |           | 49,934     |           |   |            | 11,637  |         |  |      | 23.3 |     
|                                          | Other property operating costs  |                                   |           | 282,498   |           |   |           | 214,181    |           |   |            | 68,317  |         |  |      | 31.9 |     
|                                          | Provision for doubtful accounts |                                   |           | 13,141    |           |   |           | 8,705      |           |   |            | 4,436   |         |  |      | 51.0 |     
|                                          |                                 |                                   |           |           |           |   |           |            |           |   |            |        
|                                          |                                 | Total property operating expenses |           |           | 681,271   |   |           |            | 516,301   |   |            |         | 164,970 |  |      |      | 32.0 | 
|                                          |                                 |                                   |           |           |           |   |           |            |           |   |            |        
|Real estate property net operating income |                                 | $                                 | 1,429,892 |           |           | $ | 1,110,950 |            |           | $ | 318,942    |         |         |  | 28.7 | %   
|                                          |                                 |                                   |           |           |           |   |           |            |           |   |            |        

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Master Planned Communities Segment




Certain Significant Consolidated Revenues and Expenses


|                                    |  |      |           |                |      |   |           |            |  |   |            |  |  |  |         |  
|----------------------------------- |  | ---- | --------- | -------------- | ---- | - | --------- | ---------- |  | - | ---------- |  |  |  | ------- | -
|                                    |  | 2005 |           |                | 2004 |   |           | $ Increase |  |   | % Increase | 
|                                    |  |      |           |                |      |   |           |            |  |   |            | 
|                                    |  |      |           | (In thousands) |      |   |          
|Tenant rents                        |  | $    | 2,494,851 |                |      | $ | 1,585,087 |            |  | $ | 909,764    |  |  |  | 57.4    | %
|Land sales                          |  |      | 385,205   |                |      |   | 68,643    |            |  |   | 316,562    |  |  |  | 461.2   |  
|Property operating expenses         |  |      | 868,894   |                |      |   | 517,869   |            |  |   | 351,025    |  |  |  | 67.8    |  
|Land sales operations               |  |      | 311,815   |                |      |   | 66,100    |            |  |   | 245,715    |  |  |  | 371.7   |  
|Management and other fees           |  |      | 91,734    |                |      |   | 82,896    |            |  |   | 8,838      |  |  |  | 10.7    |  
|Property management and other costs |  |      | 148,399   |                |      |   | 100,267   |            |  |   | 48,132     |  |  |  | 48.0    |  
|Depreciation and amortization       |  |      | 672,914   |                |      |   | 364,854   |            |  |   | 308,060    |  |  |  | 84.4    |  
|Interest expense                    |  |      | 1,031,241 |                |      |   | 472,185   |            |  |   | 559,056    |  |  |  | 118.4   |  
|Provision for income taxes          |  |      | 50,646    |                |      |   | 2,383     |            |  |   | 48,263     |  |  |  | 2,025.3 |  









41



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|                                    |  |                |           |  |      |            |           |            |            |  |            |   |  |  |         |  
|----------------------------------- |  | -------------- | --------- |  | ---- | ---------- | --------- | ---------- | ---------- |  | ---------- | - |  |  | ------- | -
|                                    |  |                |           |  |      | $ Increase |           |            | % Increase | 
|                                    |  | 2004           |           |  | 2003 |            |           | (Decrease) |            |  | (Decrease) |  
|                                    |  |                |           |  |      |            |           |            |            |  |            |  
|                                    |  | (In thousands) |          
|Tenant rents                        |  | $              | 1,585,087 |  |      | $          | 1,142,385 |            |            |  | 442,702    |   |  |  | 38.8    | %
|Land sales                          |  |                | 68,643    |  |      |            |          |            |            |  | 68,643     |   |  |  | 100.0   |  
|Property operating expenses         |  |                | 517,869   |  |      |            | 365,917   |            |            |  | 151,952    |   |  |  | 41.5    |  
|Land sales operations               |  |                | 66,100    |  |      |            |          |            |            |  | 66,100     |   |  |  | 100.0   |  
|Management and other fees           |  |                | 82,896    |  |      |            | 84,138    |            |            |  | (1,242     | ) |  |  | (1.5    | )
|Property management and other costs |  |                | 100,267   |  |      |            | 109,746   |            |            |  | (9,479     | ) |  |  | (8.6    | )
|Depreciation and amortization       |  |                | 364,854   |  |      |            | 230,195   |            |            |  | 134,659    |   |  |  | 58.5    |  
|Interest expense                    |  |                | 472,185   |  |      |            | 278,543   |            |            |  | 193,642    |   |  |  | 69.5    |  
|Provision for income taxes          |  |                | 2,383     |  |      |            | 98        |            |            |  | 2,285      |   |  |  | 2,331.6 |  













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Liquidity and Capital Resources




|                                                                                                                                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                                                                                                                                                                                                                                                                      
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Uses                                                                                                                                                                                                                                                                                                                                                                                                    |  | Sources                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                                                                                                                                                                                                                                                                      
|Short-term liquidity and capital needs such as:                                                                                                                                                                                                                                                                                                                                                         |  |                                                                                                                                                                                                                                                                                                                                                                                                                      
| Tenant construction allowances
     Minor improvements made to individual properties
    that are not recoverable through common area maintenance charges
    to tenants
     Dividend payments
     Debt repayment requirements, including both
    principal and interest
     Stock repurchases
     Corporate and administrative expenses                                                    |  |  Operating cash flow, including the distributions of
    our share of cash flow produced by our Unconsolidated Real
    Estate Affiliates
     Land sales from the Master Planned Communities
    segment
     Borrowings under revolving credit facilities                                                                                                                                                       
|Longer-term liquidity needs such as:                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                      
| Acquisitions
     New development, including our master planned
    communities
     Major redevelopment, renovation or expansion
    programs at individual properties
     Debt repayment requirements, including both
    principal and interest
     Purchase of Anchor stores available as a result of
    consolidations, including the Federated/ May merger*
     Income tax liabilities |  |  Secured loans collateralized by individual
    properties
     Unsecured loans at either a venture or company
    level
     Construction loans
     Mini-permanent loans
     Long-term project financing
     Joint venture financing with institutional
    partners
     Equity securities
     Asset sales, including the sale of certain office
    and industrial property acquired in the TRC Merger






|  |                                                                                                                                                                                                                                                                                                                                                                                                               
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | In August 2005, Federated Department Stores, Inc. completed its
    merger with May Department Stores Company. In July and October,
    Federated announced planned store closings which included 15 of
    our Anchor stores. We may purchase some of these stores. In
    addition, in 2006, we acquired six Mervyns anchor
    locations for an aggregate purchase price of approximately
    $76 million.

Cash Flows from Operating Activities




Cash Flows from Investing Activities






Cash Flows from Financing Activities




43



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##### Table of Contents





|                                            |                          |                            |        |       |       |   |        |       |       |   |       |       |   | 
|------------------------------------------- | ------------------------ | -------------------------- | ------ | ----- | ----- | - | ------ | ----- | ----- | - | ----- | ----- | - | 
|                                            |                          | December 31,               |       
|                                            |                          |                            |       
|                                            |                          | 2005                       |        |       | 2004  |   |        | 2003  |      
|                                            |                          |                            |        |       |       |   |        |       |      
|                                            |                          | (In millions)              |       
|Consolidated:                               |                          |                            |        |       |       |   |        |       |       |   |       |      
|Fixed-rate debt                             |                          | $                          | 14,789 |       |       | $ | 11,860 |       |       | $ | 4,552 |      
|Variable-rate debt:                         |                          |                            |        |       |       |   |        |       |       |   |       |      
|                                            | 2004 Credit Facility:    |                            |        |       |       |   |        |       |       |   |       |       |  
|                                            |                          | Six-month bridge loan      |        |       |      |   |        |       | 750   |   |       |       |  | 
|                                            |                          | Three-year term loan       |        |       | 2,715 |   |        |       | 3,300 |   |       |       |  | 
|                                            |                          | Four-year term loan        |        |       | 1,980 |   |        |       | 2,000 |   |       |       |  | 
|                                            |                          | Revolving credit facility  |        |       | 180   |   |        |       | 150   |   |       |       |  | 
|                                            |                          |                            |        |       |       |   |        |       |      
|                                            |                          | Total 2004 Credit Facility |        |       | 4,875 |   |        |       | 6,200 |   |       |       |  | 
|                                            | Other variable-rate debt |                            |        | 755   |       |   |        | 2,251 |       |   |       | 2,097 |  
|                                            |                          |                            |        |       |       |   |        |       |      
|                                            | Total variable-rate debt |                            |        | 5,630 |       |   |        | 8,451 |       |   |       | 2,097 |  
|                                            |                          |                            |        |       |       |   |        |       |      
|Total consolidated                          |                          | $                          | 20,419 |       |       | $ | 20,311 |       |       | $ | 6,649 |      
|                                            |                          |                            |        |       |       |   |        |       |      
|Weighted-average interest rate              |                          |                            | 5.64   | %     |       |   | 5.16   | %     |       |   | 4.74  | %    
|Unconsolidated:                             |                          |                            |        |       |       |   |        |       |       |   |       |      
|Fixed-rate debt                             |                          | $                          | 2,788  |       |       | $ | 2,112  |       |       | $ | 709   |      
|Variable-rate debt                          |                          |                            | 455    |       |       |   | 723    |       |       |   | 1,198 |      
|                                            |                          |                            |        |       |       |   |        |       |      
|Total Unconsolidated Real Estate Affiliates |                          | $                          | 3,243  |       |       | $ | 2,835  |       |       | $ | 1,907 |      
|                                            |                          |                            |        |       |       |   |        |       |      
|Weighted-average interest rate              |                          |                            | 5.56   | %     |       |   | 5.16   | %     |       |   | 4.53  | %    













44



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Treasury Stock




Warrant Offering




45



---



##### Table of Contents



Contractual Cash Obligations and Commitments




|                                               |  |                |           |  |      |   |           |      |  |   |           |  |  |      |           |  |            |   |           |       |  |   |           |  |  |   |            | 
|---------------------------------------------- |  | -------------- | --------- |  | ---- | - | --------- | ---- |  | - | --------- |  |  | ---- | --------- |  | ---------- | - | --------- | ----- |  | - | --------- |  |  | - | ---------- | 
|                                               |  | 2006           |           |  | 2007 |   |           | 2008 |  |   | 2009      |  |  | 2010 |           |  | Subsequent |   |           | Total | 
|                                               |  |                |           |  |      |   |           |      |  |   |           |  |  |      |           |  |            |   |           |       | 
|                                               |  | (In thousands) |          
|Long-term debt-principal(1)                    |  | $              | 1,870,317 |  |      | $ | 2,378,676 |      |  | $ | 3,779,819 |  |  | $    | 5,072,581 |  |            | $ | 3,543,137 |       |  | $ | 3,627,430 |  |  | $ | 20,271,960 | 
|Retained debt-principal                        |  |                | 50,928    |  |      |   | 88,365    |      |  |   | 2,367     |  |  |      | 2,524     |  |            |   | 120,019   |       |  |   | 38,516    |  |  |   | 302,719    | 
|Ground lease payments(1)                       |  |                | 8,248     |  |      |   | 8,372     |      |  |   | 8,395     |  |  |      | 8,419     |  |            |   | 8,428     |       |  |   | 352,535   |  |  |   | 394,397    | 
|Committed real estate acquisition contracts(2) |  |                |          |  |      |   | 250,000   |      |  |   |          |  |  |      |          |  |            |   |          |       |  |   |          |  |  |   | 250,000    | 
|Purchase obligations(3)                        |  |                | 68,725    |  |      |   |          |      |  |   |          |  |  |      |          |  |            |   |          |       |  |   |          |  |  |   | 68,725     | 
|Interest expense                               |  |                | 1,302,225 |  |      |   | 1,229,903 |      |  |   | 1,093,402 |  |  |      | 725,186   |  |            |   | 370,508   |       |  |   | 126,960   |  |  |   | 4,848,184  | 
|Other long-term liabilities(4)                 |  |                |          |  |      |   |          |      |  |   |          |  |  |      |          |  |            |   |          |       |  |   |          |  |  |   |           | 
|                                               |  |                |           |  |      |   |           |      |  |   |           |  |  |      |           |  |            |   |           |       | 
|Total                                          |  | $              | 3,300,443 |  |      | $ | 3,955,316 |      |  | $ | 4,883,983 |  |  | $    | 5,808,710 |  |            | $ | 4,042,092 |       |  | $ | 4,145,441 |  |  | $ | 26,135,985 | 
|                                               |  |                |           |  |      |   |           |      |  |   |           |  |  |      |           |  |            |   |           |       | 






|    |                                                                                                                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Excludes non-cash purchase accounting adjustments.                                                                                                                                                                                                                                             
|   
|(2) | Reflects $250 million minimum purchase price of the Palazzo
    (Note 3). We currently expect the actual purchase price to
    be approximately $600 million.                                                                                                                                  
|   
|(3) | Reflects accrued and incurred construction costs payable.
    Routine trade payables have been excluded. We expect development
    and redevelopment expenditures of $450 to $800 million per
    year for the years 2006 to 2009.                                                             
|   
|(4) | Other long-term liabilities related to ongoing real estate taxes
    have not been included in the table as such amounts depend upon
    future applicable real estate tax rates. Real estate tax expense
    was $206.2 million in 2005, $128.3 million in 2004 and
    $88.3 million in 2003.







46



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Off-Balance Sheet Financing Arrangements




REIT Requirements






|  |                                                                                                                                                                                                                    
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Scheduled increases in base rents of existing leases                                                                                                                                                               
| 
| | Changes in minimum base rents and/or overage rents attributable
    to replacement of existing leases with new or renewal leases                                                                                   
| 
| | Changes in occupancy rates at existing centers and procurement
    of leases for newly developed centers                                                                                                           
| 
| | Necessary capital improvement expenditures or debt repayments at
    existing properties                                                                                                                           
| 
| | Our share of distributions of operating cash flow generated by
    the Unconsolidated Real Estate Affiliates, less management costs
    and debt service on additional loans that have been or will be
    incurred
| 
| | Anticipated proceeds from sales in our Master Planned
    Communities segment                                                                                                                                      



Recently Issued Accounting Pronouncements and Developments




Inflation






47



---



##### Table of Contents



Forward-Looking Information








| |   |                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Projections of our revenues, income, earnings per share, Funds
    From Operations, capital expenditures, dividends, capital
    structure or other financial items
|
| |  | Descriptions of plans or objectives of our management for future
    operations, including pending acquisitions                                                    
|
| |  | Forecasts of our future economic performance                                                                                                                       
|
| |  | Descriptions of assumptions underlying or relating to any of the
    foregoing                                                                                     





| |   |                                                                                                  
| | - | -------------------------------------------------------------------------------------------------
| |  | Future repayment of debt, including the ratio of variable to
    fixed-rate debt in our portfolio
|
| |  | Future interest rates                                                                            





48



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##### Table of Contents



GLOSSARY


Anchor:


Code:


Common Units:


Company Portfolio:


Consolidated Properties:


CSA:


Exchange Act:


Freestanding GLA:


Funds From Operations or FFO:


GAAP:


GGMI:


GGPLP:


Gross Leaseable Area or GLA:


Mall GLA:


Mall Stores:


MD&A: 10-K.


NAREIT:


NOI:


Operating Partnership:


Overage rent:


REIT:


Retail Portfolio:


SEC:


49



---



##### Table of Contents



Significant Tenants:


Total GLA:


Total Mall Stores Sales:


TRC Merger:


TRCLP:


TRS:


Unconsolidated Properties:


Unconsolidated Real Estate Affiliates:







|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures about Market
    Risk












|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data



50



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##### Table of Contents








|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures

Disclosure Controls and Procedures. 13a-15(e)


Internal Controls over Financing Reporting.


MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING








|  |                                                                                                                                                                                                                                
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | the Company did not maintain effective controls at the
    Companys subsidiary over the process of identifying,
    communicating, recording and tracking various items that create
    current and deferred income taxes; and
| 
| | the Company had insufficient personnel resources with technical
    accounting expertise to enable it to conduct a timely and
    accurate financial close process.                                                            





|  |                                                                                                                                                                                                                                            
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Reviewing the documentation for the income tax closing process
    and documentation procedures to determine if changes are
    appropriate to more clearly set forth the quarterly and annual
    income tax closing process requirements;
| 
| | Educating and training Company employees about accounting and
    reporting for income tax;                                                                                                                                                

51



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##### Table of Contents





|  |                                                                                                                                                                                 
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Hiring employees to fill tax-related positions that were vacant
    at December 31, 2005;                                                                                       
| 
| | Creating additional positions to review and coordinate the
    implementation and maintenance of internal controls over
    accounting for income tax;                          
| 
| | Hiring additional accounting staff with requisite technical
    accounting expertise;                                                                                           
| 
| | Adhering to the Companys closing process, including
    monitoring controls and documentation procedures with the
    assistance and oversight of additional Company employees;





52



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








Internal Control 
Integrated Framework












| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | As of December 31, 2005, the Company did not maintain
    effective controls at the Companys The Rouse Company LP
    subsidiary over the process of identifying, communicating and
    tracking various items that create current and deferred income
    taxes. Specifically, the current portion of the tax provision
    was not accurately determined and the Company did not adequately
    review the differences between the income tax basis and
    financial reporting basis of assets and liabilities and
    reconcile the differences to recorded deferred income tax assets
    and liabilities. In addition, the tax department was not
    appropriately staffed to

53



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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | conduct a timely and accurate review of the tax provision. The
    consolidated financial statements were adjusted prior to the
    Company filing this Annual Report on Form 10-K to properly
    reflect several financial statement line items, including
    current and deferred taxes, as well as goodwill.                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | As of December 31, 2005, the Companys controls over
    the financial close process did not operate effectively. There
    are insufficient personnel resources with technical accounting
    expertise to conduct a timely and accurate financial close. The
    consolidated financial statements were corrected prior to the
    Company filing this Annual Report on Form 10-K. These error
    corrections affected various items within the consolidated
    statement of cash flows and a number of financial statement line
    items, including buildings and equipment, goodwill, investment
    in unconsolidated real estate affiliates, accounts payable and
    accrued expenses, equity in net income of unconsolidated
    affiliates and interest expense.



Internal Control  Integrated Framework Internal Control 
Integrated Framework




DELOITTE & TOUCHE
LLP






54



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##### Table of Contents








|         |                  
|-------- | -----------------
|Item 9B. | Other Information






PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant



www.generalgrowth.com









|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation








|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters



55



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##### Table of Contents





|                                                              |  |                      |           |  |                   |                      |       |                         |  |  |            |    
|------------------------------------------------------------- |  | -------------------- | --------- |  | ----------------- | -------------------- | ----- | ----------------------- |  |  | ---------- | ---
|                                                              |  |                      |           |  |                   | (c)                  |      
|                                                              |  |                      |           |  |                   | Number of Securities |      
|                                                              |  | (a)                  |           |  | (b)               |                      |       | Remaining Available for | 
|                                                              |  | Number of Securities |           |  | Weighted-Average  |                      |       | Future Issuance Under   | 
|                                                              |  | to be Issued upon    |           |  | Exercise Price of |                      |       | Equity Compensation     | 
|                                                              |  | Exercise of          |           |  | Outstanding       |                      |       | Plans (Excluding        | 
|                                                              |  | Outstanding Options, |           |  | Options, Warrants |                      |       | Securities Reflected in | 
|Plan Category                                                 |  | Warrants and Rights  |           |  | and Rights        |                      |       | Column (a))             | 
|                                                              |  |                      |           |  |                   |                      |       |                         | 
|Equity compensation plans approved by security holders(1)     |  |                      | 3,649,316 |  |                   | $                    | 30.42 |                         |  |  | 12,207,735 | (2)
|Equity compensation plans not approved by security holders(3) |  |                      | N/A       |  |                   |                      | N/A   |                         |  |  | 284,339    |    
|                                                              |  |                      |           |  |                   |                      |       |                         | 
|Total                                                         |  |                      | 3,649,316 |  |                   | $                    | 30.42 |                         |  |  | 12,492,074 |    
|                                                              |  |                      |           |  |                   |                      |       |                         | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes shares of common stock under the 1993 Stock Incentive
    Plan (which terminated on April 4, 2003), the 1998
    Incentive Stock Plan and the 2003 Incentive Stock Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(2) | Includes 6,645,500 shares of common stock available for
    issuance under the 2003 Incentive Stock Plan and
    5,562,235 shares of common stock available for issuance
    under the 1998 Incentive Stock Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(3) | Represents shares of common stock under our Employee Stock
    Purchase Plan, which was adopted by the Board of Directors in
    November 1998. Under the Employee Stock Purchase Plan, eligible
    employees make payroll deductions over a six-month period, at
    which time the amounts withheld are used to purchase shares of
    common stock at a purchase price equal to 85% of the lesser of
    the closing price of a share of common stock on the first or
    last trading day of the purchase period. Purchases of common
    stock under the Employee Stock Purchase Plan are made on the
    first business day of the next month after the close of the
    purchase period. Under New York Stock Exchange rules then in
    effect, stockholder approval was not required for the Employee
    Stock Purchase Plan because it is a broad-based plan available
    generally to all employees.






|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions








|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accounting Fees and Services



56



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##### Table of Contents






PART IV







|         |                                           
|-------- | ------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules

Financial Statements and Financial Statement
Schedules.




| |                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The consolidated financial statements and schedule listed in the
    accompanying Index to Consolidated Financial Statements and
    Consolidated Financial Statement Schedule are filed as part of
    this Annual Report.

Exhibits.




| |                               
| | ------------------------------
| | See Exhibit Index on page S-1.

Separate financial statements.




| |                
| | ---------------
| | Not applicable.

57



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##### Table of Contents






SIGNATURES






| |                                    
| | -----------------------------------
| | General Growth Properties,
    Inc.



| |     |                   
| | --- | ------------------
| | By: | /s/ John Bucksbaum

| |                        
| | -----------------------
| |                        
| | John Bucksbaum         
| | Chief Executive Officer





|                                       |  |                                                                                                                         |  |                |  | 
|-------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------- |  | -------------- |  | 
|Signature                              |  | Title                                                                                                                   |  | Date          
|                                       |  |                                                                                                                         |  |               
|                                      
|/s/ Matthew BucksbaumMatthew Bucksbaum |  | Chairman of the Board                                                                                                   |  | March 31, 2006
|                                      
|/s/ John BucksbaumJohn Bucksbaum       |  | Director and Chief Executive Officer
    (Principal Executive Officer)                                                  |  | March 31, 2006
|                                      
|/s/ Robert MichaelsRobert Michaels     |  | Director, President and
    Chief Operating Officer                                                                     |  | March 31, 2006
|                                      
|/s/ Bernard FreibaumBernard Freibaum   |  | Director, Executive Vice President
    and Chief Financial Officer
    (Principal Financial
    and Accounting Officer) |  | March 31, 2006
|                                      
|/s/ Alan CohenAlan Cohen               |  | Director                                                                                                                |  | March 31, 2006
|                                      
|/s/ Anthony DownsAnthony Downs         |  | Director                                                                                                                |  | March 31, 2006
|                                      
|/s/ Adam MetzAdam Metz                 |  | Director                                                                                                                |  | March 31, 2006
|                                      
|/s/ Thomas NolanThomas Nolan           |  | Director                                                                                                                |  | March 31, 2006
|                                      
|/s/ John RiordanJohn Riordan           |  | Director                                                                                                                |  | March 31, 2006
|                                      
|/s/ Beth StewartBeth Stewart           |  | Director                                                                                                                |  | March 31, 2006

58



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.





INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND





CONSOLIDATED FINANCIAL STATEMENT SCHEDULE


10-K:


|                                          |                                                                                                                         |      |  |      | 
|----------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ---- |  | ---- | 
|                                          |                                                                                                                         | Page | 
|                                          |                                                                                                                         |      | 
|Consolidated Financial Statements         |                                                                                                                         |      |  |     
|                                          | Report of Independent Registered Public
    Accounting Firm  General Growth Properties,
    Inc.                       |      |  | F-2  | 
|                                          | Report of Independent Registered Public
    Accounting Firm  GGP/ Homart, Inc.                                         |      |  | F-3  | 
|                                          | Report of Independent Registered Public
    Accounting Firm  GGP/ Homart II L.L.C.                                     |      |  | F-4  | 
|                                          | Report of Independent Registered Public
    Accounting Firm  GGP-TRS, L.L.C.                                           |      |  | F-5  | 
|                                          | Consolidated Balance Sheets as of
    December 31, 2005 and 2004                                                        |      |  | F-6  | 
|                                          | Consolidated Statements of Income and
    Comprehensive Income for the years ended December 31, 2005,
    2004 and 2003 |      |  | F-7  | 
|                                          | Consolidated Statements of
    Stockholders Equity for the years ended December 31,
    2005, 2004 and 2003            |      |  | F-8  | 
|                                          | Consolidated Statements of Cash Flows for
    the years ended December 31, 2005, 2004 and 2003                          |      |  | F-9  | 
|                                          | Notes to Consolidated Financial
    Statements                                                                          |      |  | F-10 | 
|Consolidated Financial Statement Schedule |                                                                                                                         |      |  |     
|                                          | Report of Independent Registered Public
    Accounting Firm                                                             |      |  | F-55 | 
|                                          | Schedule III  Real Estate
    and Accumulated Depreciation                                                             |      |  | F-56 | 



F-1



---



##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








GGP-TRS GGP-TRS GGP-TRS






Internal Control 
Integrated Framework


Deloitte & Touche LLP






F-2



---



##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


















F-3



---



##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM












KPMG LLP






F-4



---



##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM










KPMG LLP






F-5



---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.





CONSOLIDATED BALANCE SHEETS


|                                                                                              |                                                                                                                                                               |                                            |            |            |            |   |            |            |            | 
|--------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | ---------- | ---------- | ---------- | - | ---------- | ---------- | ---------- | 
|                                                                                              |                                                                                                                                                               | December 31,                               |           
|                                                                                              |                                                                                                                                                               |                                            |           
|                                                                                              |                                                                                                                                                               | 2005                                       |            |            | 2004       |  
|                                                                                              |                                                                                                                                                               |                                            |            |            |            |  
|                                                                                              |                                                                                                                                                               | (Dollars in thousands)                     |           
|Assets                                                                                       
|Investment in real estate:                                                                    |                                                                                                                                                               |                                            |            |            |            |   |            |           
|                                                                                              | Land                                                                                                                                                          |                                            | $          | 2,826,766  |            |   | $          | 2,859,552  |           
|                                                                                              | Buildings and equipment                                                                                                                                       |                                            |            | 18,739,445 |            |   |            | 18,251,258 |           
|                                                                                              | Less accumulated depreciation                                                                                                                                 |                                            |            | (2,104,956 | )          |   |            | (1,453,488 | )         
|                                                                                              | Developments in progress                                                                                                                                      |                                            |            | 366,262    |            |   |            | 559,969    |           
|                                                                                              |                                                                                                                                                               |                                            |            |            |            |  
|                                                                                              |                                                                                                                                                               | Net property and equipment                 |            |            | 19,827,517 |   |            |            | 20,217,291 | 
|                                                                                              | Investment in and loans to/from Unconsolidated Real Estate
    Affiliates                                                                                     |                                            |            | 1,818,097  |            |   |            | 1,945,541  |           
|                                                                                              | Investment land and land held for development and sale                                                                                                        |                                            |            | 1,651,063  |            |   |            | 1,638,013  |           
|                                                                                              |                                                                                                                                                               |                                            |            |            |            |  
|                                                                                              |                                                                                                                                                               | Net investment in real estate              |            |            | 23,296,677 |   |            |            | 23,800,845 | 
|Cash and cash equivalents                                                                     |                                                                                                                                                               |                                            | 102,791    |            |            |   | 39,581     |           
|Accounts and notes receivable, net                                                            |                                                                                                                                                               |                                            | 293,351    |            |            |   | 242,425    |           
|Insurance recovery receivable                                                                 |                                                                                                                                                               |                                            | 63,382     |            |            |   |           |           
|Goodwill                                                                                      |                                                                                                                                                               |                                            | 420,624    |            |            |   | 356,796    |           
|Deferred expenses, net                                                                        |                                                                                                                                                               |                                            | 209,825    |            |            |   | 153,231    |           
|Prepaid expenses and other assets                                                             |                                                                                                                                                               |                                            | 920,369    |            |            |   | 1,125,747  |           
|                                                                                              |                                                                                                                                                               |                                            |            |            |            |  
|                                                                                              |                                                                                                                                                               | Total assets                               |            | $          | 25,307,019 |   |            | $          | 25,718,625 | 
|                                                                                              |                                                                                                                                                               |                                            |            |            |            |  
|                                                                                             
|Liabilities and Stockholders Equity                                                         
|                                                                                             
|Mortgage notes and other property debt payable                                                |                                                                                                                                                               | $                                          | 20,418,875 |            |            | $ | 20,310,947 |           
|Deferred tax liabilities                                                                      |                                                                                                                                                               |                                            | 1,286,576  |            |            |   | 1,414,565  |           
|Accounts payable and accrued expenses                                                         |                                                                                                                                                               |                                            | 1,032,414  |            |            |   | 895,520    |           
|                                                                                              |                                                                                                                                                               |                                            |            |            |            |  
|                                                                                              |                                                                                                                                                               | Total liabilities                          |            |            | 22,737,865 |   |            |            | 22,621,032 | 
|                                                                                              |                                                                                                                                                               |                                            |            |            |            |  
|Minority interests:                                                                           |                                                                                                                                                               |                                            |            |            |            |   |            |           
|                                                                                              | Preferred                                                                                                                                                     |                                            |            | 205,944    |            |   |            | 403,161    |           
|                                                                                              | Common                                                                                                                                                        |                                            |            | 430,292    |            |   |            | 551,282    |           
|                                                                                              |                                                                                                                                                               |                                            |            |            |            |  
|                                                                                              |                                                                                                                                                               | Total minority interests                   |            |            | 636,236    |   |            |            | 954,443    | 
|                                                                                              |                                                                                                                                                               |                                            |            |            |            |  
|Commitments 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,
    239,865,045 and 234,724,082 shares issued as of
    December 31, 2005 and 2004, respectively |                                            |            | 2,399      |            |   |            | 2,347      |           
|                                                                                              | Additional paid-in capital                                                                                                                                    |                                            |            | 2,469,262  |            |   |            | 2,378,237  |           
|                                                                                              | Retained earnings (accumulated deficit)                                                                                                                       |                                            |            | (518,555   | )          |   |            | (227,511   | )         
|                                                                                              | Notes receivable-common stock purchase                                                                                                                        |                                            |            |           |            |   |            | (5,178     | )         
|                                                                                              | Unearned compensation-restricted stock                                                                                                                        |                                            |            | (280       | )          |   |            | (1,060     | )         
|                                                                                              | Accumulated other comprehensive income (loss)                                                                                                                 |                                            |            | 10,454     |            |   |            | (3,685     | )         
|                                                                                              | Less common stock in treasury, 668,396 shares at
    December 31, 2005, at cost                                                                               |                                            |            | (30,362    | )          |   |            |           |           
|                                                                                              |                                                                                                                                                               |                                            |            |            |            |  
|                                                                                              |                                                                                                                                                               | Total stockholders equity                 |            |            | 1,932,918  |   |            |            | 2,143,150  | 
|                                                                                              |                                                                                                                                                               |                                            |            |            |            |  
|                                                                                              |                                                                                                                                                               | Total liabilities and stockholders equity |            | $          | 25,307,019 |   |            | $          | 25,718,625 | 
|                                                                                              |                                                                                                                                                               |                                            |            |            |            |  



F-6



---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.





CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |           |   |          |         |           | 
|------------------------------------------------------------------------------------------------------- | ----------------------------------------------------- | ---------------------------------------------------------- | ---------- | --------- | --------- | - | -------- | --------- | --------- | - | -------- | ------- | --------- | 
|                                                                                                        |                                                       | Years Ended December 31,                                   |           
|                                                                                                        |                                                       |                                                            |           
|                                                                                                        |                                                       | 2005                                                       |            |           | 2004      |   |          | 2003      |          
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|                                                                                                        |                                                       | (Dollars in thousands, except for per                      |           
|                                                                                                        |                                                       | share amounts)                                             |           
|Revenues:                                                                                               |                                                       |                                                            |            |           |           |   |          |           |           |   |          |        
|                                                                                                        | Minimum rents                                         |                                                            | $          | 1,670,387 |           |   | $        | 1,058,732 |           |   | $        | 775,320 |          
|                                                                                                        | Tenant recoveries                                     |                                                            |            | 754,836   |           |   |          | 472,250   |           |   |          | 332,137 |          
|                                                                                                        | Overage rents                                         |                                                            |            | 69,628    |           |   |          | 54,105    |           |   |          | 34,928  |          
|                                                                                                        | Land sales                                            |                                                            |            | 385,205   |           |   |          | 68,643    |           |   |          |        |          
|                                                                                                        | Management and other fees                             |                                                            |            | 91,734    |           |   |          | 82,896    |           |   |          | 84,138  |          
|                                                                                                        | Other                                                 |                                                            |            | 101,626   |           |   |          | 63,255    |           |   |          | 36,268  |          
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|                                                                                                        |                                                       | Total revenues                                             |            |           | 3,073,416 |   |          |           | 1,799,881 |   |          |         | 1,262,791 | 
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|Expenses:                                                                                               |                                                       |                                                            |            |           |           |   |          |           |           |   |          |        
|                                                                                                        | Real estate taxes                                     |                                                            |            | 206,193   |           |   |          | 128,114   |           |   |          | 88,276  |          
|                                                                                                        | Repairs and maintenance                               |                                                            |            | 195,292   |           |   |          | 123,251   |           |   |          | 81,433  |          
|                                                                                                        | Marketing                                             |                                                            |            | 63,522    |           |   |          | 48,220    |           |   |          | 35,797  |          
|                                                                                                        | Other property operating costs                        |                                                            |            | 390,019   |           |   |          | 207,909   |           |   |          | 153,370 |          
|                                                                                                        | Land sales operations                                 |                                                            |            | 311,815   |           |   |          | 66,100    |           |   |          |        |          
|                                                                                                        | Provision for doubtful accounts                       |                                                            |            | 13,868    |           |   |          | 10,375    |           |   |          | 7,041   |          
|                                                                                                        | Property management and other costs                   |                                                            |            | 148,399   |           |   |          | 100,267   |           |   |          | 109,746 |          
|                                                                                                        | General and administrative                            |                                                            |            | 13,053    |           |   |          | 9,499     |           |   |          | 8,533   |          
|                                                                                                        | Depreciation and amortization                         |                                                            |            | 672,914   |           |   |          | 364,854   |           |   |          | 230,195 |          
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|                                                                                                        |                                                       | Total expenses                                             |            |           | 2,015,075 |   |          |           | 1,058,589 |   |          |         | 714,391   | 
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|Operating income                                                                                        |                                                       |                                                            | 1,058,341  |           |           |   | 741,292  |           |           |   | 548,400  |        
|Interest income                                                                                         |                                                       |                                                            | 10,416     |           |           |   | 3,227    |           |           |   | 2,308    |        
|Interest expense                                                                                        |                                                       |                                                            | (1,031,241 | )         |           |   | (472,185 | )         |           |   | (278,543 | )      
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|Income before income taxes and allocations to minority interests
    and from unconsolidated affiliates |                                                       |                                                            | 37,516     |           |           |   | 272,334  |           |           |   | 272,165  |        
|Provision for income taxes                                                                              |                                                       |                                                            | (50,646    | )         |           |   | (2,383   | )         |           |   | (98      | )      
|Income allocated to minority interests                                                                  |                                                       |                                                            | (43,989    | )         |           |   | (105,274 | )         |           |   | (110,984 | )      
|Equity in income of unconsolidated affiliates                                                           |                                                       |                                                            | 120,986    |           |           |   | 88,191   |           |           |   | 94,480   |        
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|Income from continuing operations                                                                       |                                                       |                                                            | 63,867     |           |           |   | 252,868  |           |           |   | 255,563  |        
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|Discontinued operations, net of minority interests:                                                     |                                                       |                                                            |            |           |           |   |          |           |           |   |          |        
|                                                                                                        | Income from operations                                |                                                            |            | 6,568     |           |   |          | 3,813     |           |   |          | 4,128   |          
|                                                                                                        | Gain on disposition                                   |                                                            |            | 5,118     |           |   |          | 11,171    |           |   |          | 3,720   |          
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|                                                                                                        |                                                       |                                                            | 11,686     |           |           |   | 14,984   |           |           |   | 7,848    |        
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|Net income                                                                                              |                                                       | $                                                          | 75,553     |           |           | $ | 267,852  |           |           | $ | 263,411  |        
|Convertible preferred stock dividends                                                                   |                                                       |                                                            |           |           |           |   |         |           |           |   | (13,030  | )      
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|Net income available to common stockholders                                                             |                                                       | $                                                          | 75,553     |           |           | $ | 267,852  |           |           | $ | 250,381  |        
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|Basic Earnings Per Share:                                                                               |                                                       |                                                            |            |           |           |   |          |           |           |   |          |        
|                                                                                                        | Continuing operations                                 |                                                            | $          | 0.27      |           |   | $        | 1.15      |           |   | $        | 1.21    |          
|                                                                                                        | Discontinued operations                               |                                                            |            | 0.05      |           |   |          | 0.07      |           |   |          | 0.04    |          
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|                                                                                                        |                                                       | Total basic earnings per share                             |            | $         | 0.32      |   |          | $         | 1.22      |   |          | $       | 1.25      | 
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|Diluted Earnings Per Share:                                                                             |                                                       |                                                            |            |           |           |   |          |           |           |   |          |        
|                                                                                                        | Continuing operations                                 |                                                            | $          | 0.27      |           |   | $        | 1.15      |           |   | $        | 1.19    |          
|                                                                                                        | Discontinued operations                               |                                                            |            | 0.05      |           |   |          | 0.06      |           |   |          | 0.03    |          
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|                                                                                                        |                                                       | Total diluted earnings per share                           |            | $         | 0.32      |   |          | $         | 1.21      |   |          | $       | 1.22      | 
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|Comprehensive Income, Net:                                                                              |                                                       |                                                            |            |           |           |   |          |           |           |   |          |        
|                                                                                                        | Net income                                            |                                                            | $          | 75,553    |           |   | $        | 267,852   |           |   | $        | 263,411 |          
|                                                                                                        | Other comprehensive income, net of minority interest: |                                                            |            |           |           |   |          |           |           |   |          |         |          
|                                                                                                        |                                                       | Net unrealized gains on financial instruments              |            |           | 9,554     |   |          |           | 10,992    |   |          |         | 12,542    | 
|                                                                                                        |                                                       | Minimum pension liability adjustment                       |            |           | (374      | ) |          |           | 102       |   |          |         | 308       | 
|                                                                                                        |                                                       | Foreign currency translation                               |            |           | 4,920     |   |          |           | 1,590     |   |          |         |          | 
|                                                                                                        |                                                       | Unrealized gains (losses) on available-for-sale securities |            |           | 39        |   |          |           | (94       | ) |          |         |          | 
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|                                                                                                        |                                                       | Total other comprehensive income, net of minority interest |            |           | 14,139    |   |          |           | 12,590    |   |          |         | 12,850    | 
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          
|                                                                                                        | Comprehensive income, net                             |                                                            | $          | 89,692    |           |   | $        | 280,442   |           |   | $        | 276,261 |          
|                                                                                                        |                                                       |                                                            |            |           |           |   |          |           |          



F-7



---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.





CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY


|                                                                                                                                   |  |                        |       |            |         |          |           |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   |           |  
|---------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------- | ----- | ---------- | ------- | -------- | --------- | ------------ | ----------- | ------ | -------- | -------- | ------------ | ---------- | ------ | ------------- | ------ | - | ------ | -------- | ----- | - | ------------- | - |  | - | ------- | - |  | - | --------- | -
|                                                                                                                                   |  |                        |       |            |         |          |           | Notes        |             |        |          |          | Accumulated  |            |        |               |        |  
|                                                                                                                                   |  |                        |       |            |         | Retained |           |              | Receivable- |        |          | Unearned |              |            | Other  |               |        |   |        |         
|                                                                                                                                   |  |                        |       | Additional |         |          | Earnings  |              |             | Common |          |          | Compensation |            |        | Comprehensive |        |   |        |          | Total |  
|                                                                                                                                   |  | Common                 |       |            | Paid-In |          |           | (Accumulated |             |        | Stock    |          |              | Restricted |        |               | Income |   |        | Treasury |       |   | Stockholders |  
|                                                                                                                                   |  | Stock                  |       |            | Capital |          |           | Deficit)     |             |        | Purchase |          |              | Stock      |        |               | (Loss) |   |        | Stock    |       |   | Equity        |  
|                                                                                                                                   |  |                        |       |            |         |          |           |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |  
|                                                                                                                                   |  | (Dollars in thousands) |      
|Balance, December 31, 2002                                                                                                         |  | $                      | 1,872 |            |         | $        | 1,549,642 |              |             | $      | (315,844 | )        |              | $          | (7,772 | )             |        | $ | (2,248 | )        |       | $ | (29,125       | ) |  | $ |        |   |  | $ | 1,196,525 |  
|Net income                                                                                                                         |  |                        |       |            |         |          |           |              |             |        | 263,411  |          |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | 263,411   |  
|Cash distributions declared ($0.78 per share)                                                                                      |  |                        |       |            |         |          |           |              |             |        | (155,049 | )        |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | (155,049  | )
|Convertible Preferred Stock dividends                                                                                              |  |                        |       |            |         |          |           |              |             |        | (13,030  | )        |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | (13,030   | )
|PIERS redemption and conversion, net (25,503,543 common shares)                                                                    |  |                        | 255   |            |         |          | 337,837   |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | 338,092   |  
|Conversion of operating partnership units to common stock
    (2,956,491 common shares)                                            |  |                        | 30    |            |         |          | 22,134    |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | 22,164    |  
|Issuance of common stock, net of employee stock option
    loan/repayments (1,642,687 common shares)                               |  |                        | 16    |            |         |          | 30,108    |              |             |        |          |          |              |            | 1,297  |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | 31,421    |  
|Restricted stock grant, net of compensation expense                                                                                |  |                        |       |            |         |          |           |              |             |        |          |          |              |            |        |               |        |   | 299    |          |       |   |               |   |  |   |         |   |  |   | 299       |  
|Other comprehensive income                                                                                                         |  |                        |       |            |         |          |           |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   | 12,850        |   |  |   |         |   |  |   | 12,850    |  
|Adjustment for minority interest in operating partnership                                                                          |  |                        |       |            |         |          | (26,274   | )            |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | (26,274   | )
|                                                                                                                                   |  |                        |       |            |         |          |           |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |  
|Balance, December 31, 2003                                                                                                         |  | $                      | 2,173 |            |         | $        | 1,913,447 |              |             | $      | (220,512 | )        |              | $          | (6,475 | )             |        | $ | (1,949 | )        |       | $ | (16,275       | ) |  | $ |        |   |  | $ | 1,670,409 |  
|                                                                                                                                   |  |                        |       |            |         |          |           |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |  
|Net income                                                                                                                         |  |                        |       |            |         |          |           |              |             |        | 267,852  |          |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | 267,852   |  
|Cash distributions declared ($1.26 per share)                                                                                      |  |                        |       |            |         |          |           |              |             |        | (274,851 | )        |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | (274,851  | )
|Conversion of operating partnership units to common stock
    (179,987 common shares)                                              |  |                        | 2     |            |         |          | 1,371     |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | 1,373     |  
|Conversion of convertible preferred units to common stock
    (456,463 common shares)                                              |  |                        | 4     |            |         |          | 9,297     |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | 9,301     |  
|Issuance of common stock, net of employee stock option
    loan/repayments (16,793,656 common shares)                              |  |                        | 168   |            |         |          | 530,920   |              |             |        |          |          |              |            | 1,297  |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | 532,385   |  
|Restricted stock grant, net of compensation expense                                                                                |  |                        |       |            |         |          |           |              |             |        |          |          |              |            |        |               |        |   | 889    |          |       |   |               |   |  |   |         |   |  |   | 889       |  
|Other comprehensive income                                                                                                         |  |                        |       |            |         |          |           |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   | 12,590        |   |  |   |         |   |  |   | 12,590    |  
|Adjustment for minority interest in operating partnership                                                                          |  |                        |       |            |         |          | (76,798   | )            |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | (76,798   | )
|                                                                                                                                   |  |                        |       |            |         |          |           |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |  
|Balance, December 31, 2004                                                                                                         |  | $                      | 2,347 |            |         | $        | 2,378,237 |              |             | $      | (227,511 | )        |              | $          | (5,178 | )             |        | $ | (1,060 | )        |       | $ | (3,685        | ) |  | $ |        |   |  |   | 2,143,150 |  
|                                                                                                                                   |  |                        |       |            |         |          |           |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |  
|Net income                                                                                                                         |  |                        |       |            |         |          |           |              |             |        | 75,553   |          |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | 75,553    |  
|Cash distributions declared ($1.49 per share)                                                                                      |  |                        |       |            |         |          |           |              |             |        | (353,665 | )        |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | (353,665  | )
|Conversion of operating partnership units to common stock
    (2,470,368 common shares)                                            |  |                        | 25    |            |         |          | 23,907    |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | 23,932    |  
|Conversion of convertible preferred units to common stock
    (729,890 common shares)                                              |  |                        | 7     |            |         |          | 14,330    |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | 14,337    |  
|Issuance of common stock, net of employee stock option
    loan/repayments (1,322,720 common shares) (545,204 treasury
    shares) |  |                        | 13    |            |         |          | 40,135    |              |             |        | (7,892   | )        |              |            | 5,178  |               |        |   |        |          |       |   |               |   |  |   | 24,522  |   |  |   | 61,956    |  
|Tax benefit from stock option exercises                                                                                            |  |                        |       |            |         |          | 3,328     |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | 3,328     |  
|Shares issued pursuant to CSA (551,985 common shares) (1,000,400
    treasury shares)                                              |  |                        | 6     |            |         |          | 19,393    |              |             |        | (5,040   | )        |              |            |        |               |        |   |        |          |       |   |               |   |  |   | 44,696  |   |  |   | 59,055    |  
|Restricted stock grant, net of compensation expense (66,000
    common shares)                                                     |  |                        | 1     |            |         |          | 2,336     |              |             |        |          |          |              |            |        |               |        |   | 780    |          |       |   |               |   |  |   |         |   |  |   | 3,117     |  
|Purchase of treasury stock (2,214,000 treasury shares)                                                                             |  |                        |       |            |         |          |           |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |   |  |   | (99,580 | ) |  |   | (99,580   | )
|Other comprehensive income                                                                                                         |  |                        |       |            |         |          |           |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   | 14,139        |   |  |   |         |   |  |   | 14,139    |  
|Adjustment for minority interest in operating partnership                                                                          |  |                        |       |            |         |          | (12,404   | )            |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |   |  |   |         |   |  |   | (12,404   | )
|                                                                                                                                   |  |                        |       |            |         |          |           |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |  
|Balance, December 31, 2005                                                                                                         |  | $                      | 2,399 |            |         | $        | 2,469,262 |              |             | $      | (518,555 | )        |              | $          |       |               |        | $ | (280   | )        |       | $ | 10,454        |   |  | $ | (30,362 | ) |  | $ | 1,932,918 |  
|                                                                                                                                   |  |                        |       |            |         |          |           |              |             |        |          |          |              |            |        |               |        |   |        |          |       |   |               |  



F-8



---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.





CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                  |                                                                                       |                                                     |                                                                                                 |                                           |          |          |         |            |            |         |         |            |            |         |         |  
|------------------------------------------------- | ------------------------------------------------------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------------------- | ----------------------------------------- | -------- | -------- | ------- | ---------- | ---------- | ------- | ------- | ---------- | ---------- | ------- | ------- | -
|                                                  |                                                                                       | Years Ended December 31,                            |                                                                                                
|                                                  |                                                                                       |                                                     |                                                                                                
|                                                  |                                                                                       | 2005                                                |                                                                                                 |                                           | 2004     |          |         | 2003       |           
|                                                  |                                                                                       |                                                     |                                                                                                 |                                           |          |          |         |            |           
|                                                  |                                                                                       | (In thousands)                                      |                                                                                                
|Cash Flows from Operating Activities:             |                                                                                       |                                                     |                                                                                                 |                                           |          |          |         |            |            |         |         |           
|                                                  | Net income                                                                            |                                                     | $                                                                                               | 75,553                                    |          |          | $       | 267,852    |            |         | $       | 263,411    |           
|                                                  | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                     |                                                                                                 |                                           |          |          |         |            |            |         |         |            |           
|                                                  |                                                                                       |                                                     | Minority interests, including discontinued operations                                           |                                           |          | 45,488   |         |            |            | 106,233 |         |            |            | 113,289 |        
|                                                  |                                                                                       |                                                     | Equity in income of unconsolidated affiliates                                                   |                                           |          | (120,986 | )       |            |            | (88,191 | )       |            |            | (94,480 | )      
|                                                  |                                                                                       |                                                     | Provision for doubtful accounts, including discontinued
    operations                          |                                           |          | 13,876   |         |            |            | 10,393  |         |            |            | 7,009   |        
|                                                  |                                                                                       |                                                     | Distributions received from unconsolidated affiliates                                           |                                           |          | 119,602  |         |            |            | 87,906  |         |            |            | 91,613  |        
|                                                  |                                                                                       |                                                     | Depreciation, including discontinued operations                                                 |                                           |          | 657,358  |         |            |            | 348,303 |         |            |            | 205,385 |        
|                                                  |                                                                                       |                                                     | Amortization, including discontinued operations                                                 |                                           |          | 30,536   |         |            |            | 28,753  |         |            |            | 34,849  |        
|                                                  |                                                                                       |                                                     | Amortization of debt market rate adjustment                                                     |                                           |          | (46,993  | )       |            |            | (1,026  | )       |            |            | (723    | )      
|                                                  |                                                                                       |                                                     | Gain on disposition                                                                             |                                           |          | (5,118   | )       |            |            | (11,172 | )       |            |            | (4,831  | )      
|                                                  |                                                                                       |                                                     | Participation expense pursuant to Contingent Stock Agreement                                    |                                           |          | 106,285  |         |            |            | 8,513   |         |            |            |        |        
|                                                  |                                                                                       |                                                     | Land development and acquisitions expenditures                                                  |                                           |          | (140,823 | )       |            |            | (27,563 | )       |            |            |        |        
|                                                  |                                                                                       |                                                     | Cost of land sales                                                                              |                                           |          | 181,301  |         |            |            | 51,659  |         |            |            |        |        
|                                                  |                                                                                       |                                                     | Debt assumed by purchasers of land                                                              |                                           |          | (11,371  | )       |            |            | (318    | )       |            |            |        |        
|                                                  |                                                                                       |                                                     | Deferred income taxes                                                                           |                                           |          | 28,596   |         |            |            | 1,993   |         |            |            |        |        
|                                                  |                                                                                       |                                                     | Proceeds from the sale of marketable securities, including
    defined contribution plan assets |                                           |          | 27,740   |         |            |            | 7,954   |         |            |            |        |        
|                                                  |                                                                                       |                                                     | Net changes:                                                                                    |                                           |          |          |         |            |            |         |         |            |            |         |        
|                                                  |                                                                                       |                                                     |                                                                                                 | Accounts and notes receivable             |          |          | (85,125 | )          |            |         | (21,177 | )          |            |         | (29,304 | )
|                                                  |                                                                                       |                                                     |                                                                                                 | Prepaid expenses and other assets         |          |          | (32,701 | )          |            |         | 21,463  |            |            |         | 16,269  |  
|                                                  |                                                                                       |                                                     |                                                                                                 | Deferred expenses                         |          |          | (73,048 | )          |            |         | (43,485 | )          |            |         | (54,535 | )
|                                                  |                                                                                       |                                                     |                                                                                                 | Accounts payable and accrued expenses     |          |          | 61,909  |            |            |         | (44,614 | )          |            |         | 34,683  |  
|                                                  |                                                                                       |                                                     |                                                                                                 | Other, net                                |          |          | 9,899   |            |            |         | 15,900  |            |            |         | 3,100   |  
|                                                  |                                                                                       |                                                     |                                                                                                 |                                           |          |          |         |            |           
|                                                  |                                                                                       |                                                     |                                                                                                 | Net cash provided by operating activities |          |          | 841,978 |            |            |         | 719,376 |            |            |         | 585,735 |  
|                                                  |                                                                                       |                                                     |                                                                                                 |                                           |          |          |         |            |           
|Cash Flows from Investing Activities:             |                                                                                       |                                                     |                                                                                                 |                                           |          |          |         |            |            |         |         |           
|                                                  | Acquisition/development of real estate and property
    additions/improvements        |                                                     |                                                                                                 | (497,977                                  | )        |          |         | (9,000,108 | )          |         |         | (1,732,358 | )         
|                                                  | Proceeds from sale of investment property                                             |                                                     |                                                                                                 | 143,543                                   |          |          |         | 65,268     |            |         |         | 14,978     |           
|                                                  | Increase in investments in unconsolidated affiliates                                  |                                                     |                                                                                                 | (195,642                                  | )        |          |         | (211,247   | )          |         |         | (26,418    | )         
|                                                  | Increase in restricted cash                                                           |                                                     |                                                                                                 | (22,950                                   | )        |          |         | (1,951     | )          |         |         | (7,971     | )         
|                                                  | Insurance recoveries                                                                  |                                                     |                                                                                                 | 5,000                                     |          |          |         |           |            |         |         |           |           
|                                                  | Distributions received from unconsolidated affiliates in excess
    of income         |                                                     |                                                                                                 | 260,639                                   |          |          |         | 134,116    |            |         |         | 90,925     |           
|                                                  | Loans (to) from unconsolidated affiliates, net                                        |                                                     |                                                                                                 | 126,500                                   |          |          |         | (8,884     | )          |         |         | (94,355    | )         
|                                                  | Other, net                                                                            |                                                     |                                                                                                 | 21,322                                    |          |          |         | 1,297      |            |         |         | 1,773      |           
|                                                  |                                                                                       |                                                     |                                                                                                 |                                           |          |          |         |            |           
|                                                  |                                                                                       | Net cash used in investing activities               |                                                                                                 |                                           | (159,565 | )        |         |            | (9,021,509 | )       |         |            | (1,753,426 | )      
|                                                  |                                                                                       |                                                     |                                                                                                 |                                           |          |          |         |            |           
|Cash Flows from Financing Activities:             |                                                                                       |                                                     |                                                                                                 |                                           |          |          |         |            |            |         |         |           
|                                                  | Cash distributions paid to common stockholders                                        |                                                     |                                                                                                 | (353,665                                  | )        |          |         | (274,851   | )          |         |         | (199,986   | )         
|                                                  | Cash distributions paid to holders of Common Units                                    |                                                     |                                                                                                 | (80,885                                   | )        |          |         | (70,412    | )          |         |         | (59,815    | )         
|                                                  | Cash distributions paid to holders of perpetual and convertible
    preferred units   |                                                     |                                                                                                 | (27,329                                   | )        |          |         | (37,152    | )          |         |         | (40,257    | )         
|                                                  | Payment of dividends on PIERS                                                         |                                                     |                                                                                                 |                                          |          |          |         |           |            |         |         | (19,145    | )         
|                                                  | Proceeds from issuance of common stock, including from common
    stock plans         |                                                     |                                                                                                 | 45,208                                    |          |          |         | 531,976    |            |         |         | 31,308     |           
|                                                  | Purchase of treasury stock                                                            |                                                     |                                                                                                 | (98,939                                   | )        |          |         |           |            |         |         |           |           
|                                                  | Redemption of preferred minority interests                                            |                                                     |                                                                                                 | (183,000                                  | )        |          |         | (107,923   | )          |         |         |           |           
|                                                  | Proceeds from issuance of mortgage notes and other property debt
    payable          |                                                     |                                                                                                 | 3,907,254                                 |          |          |         | 12,733,339 |            |         |         | 3,140,750  |           
|                                                  | Principal payments on mortgage notes and other property debt
    payable              |                                                     |                                                                                                 | (3,791,978                                | )        |          |         | (4,430,532 | )          |         |         | (1,715,029 | )         
|                                                  | Other, net                                                                            |                                                     |                                                                                                 | (35,869                                   | )        |          |         | (13,408    | )          |         |         | (13,098    | )         
|                                                  |                                                                                       |                                                     |                                                                                                 |                                           |          |          |         |            |           
|                                                  |                                                                                       | Net cash (used in) provided by financing activities |                                                                                                 |                                           | (619,203 | )        |         |            | 8,331,037  |         |         |            | 1,124,728  |        
|                                                  |                                                                                       |                                                     |                                                                                                 |                                           |          |          |         |            |           
|Net change in cash and cash equivalents           |                                                                                       |                                                     | 63,210                                                                                          |                                           |          |          | 28,904  |            |            |         | (42,963 | )         
|Cash and cash equivalents at beginning of period  |                                                                                       |                                                     | 39,581                                                                                          |                                           |          |          | 10,677  |            |            |         | 53,640  |           
|                                                  |                                                                                       |                                                     |                                                                                                 |                                           |          |          |         |            |           
|Cash and cash equivalents at end of period        |                                                                                       | $                                                   | 102,791                                                                                         |                                           |          | $        | 39,581  |            |            | $       | 10,677  |           
|                                                  |                                                                                       |                                                     |                                                                                                 |                                           |          |          |         |            |           
|Supplemental Disclosure of Cash Flow Information: |                                                                                       |                                                     |                                                                                                 |                                           |          |          |         |            |            |         |         |           
|                                                  | Interest paid                                                                         |                                                     | $                                                                                               | 1,074,874                                 |          |          | $       | 424,380    |            |         | $       | 258,395    |           
|                                                  | Interest capitalized                                                                  |                                                     |                                                                                                 | 54,260                                    |          |          |         | 11,272     |            |         |         | 5,679      |           
|                                                  | Income taxes paid                                                                     |                                                     |                                                                                                 | 8,170                                     |          |          |         | 390        |            |         |         | 98         |           
|Non-Cash Investing and Financing Activities:      |                                                                                       |                                                     |                                                                                                 |                                           |          |          |         |            |            |         |         |           
|                                                  | Common stock issued in exchange for PIERS                                             |                                                     | $                                                                                               |                                          |          |          | $       |           |            |         | $       | 337,483    |           
|                                                  | Common stock issued in exchange for Operating Partnership Units                       |                                                     |                                                                                                 | 23,932                                    |          |          |         | 1,373      |            |         |         | 22,134     |           
|                                                  | Common stock issued in exchange for convertible preferred units                       |                                                     |                                                                                                 | 14,337                                    |          |          |         | 9,301      |            |         |         |           |           
|                                                  | Assumption of debt in conjunction with acquisition of property                        |                                                     |                                                                                                 |                                          |          |          |         | 134,902    |            |         |         | 552,174    |           
|                                                  | Common stock issued pursuant to Contingent Stock Agreement                            |                                                     |                                                                                                 | 59,055                                    |          |          |         |           |            |         |         |           |           
|                                                  | Operating Partnership Units issued as consideration for purchase
    of real estate   |                                                     |                                                                                                 |                                          |          |          |         | 25,132     |            |         |         | 26,637     |           
|                                                  | TRC Merger:                                                                           |                                                     |                                                                                                 |                                           |          |          |         |            |            |         |         |            |           
|                                                  |                                                                                       | Fair value of assets acquired                       |                                                                                                 |                                           | (134,166 | )        |         |            | 14,327,519 |         |         |            |           |        
|                                                  |                                                                                       | Cash paid                                           |                                                                                                 |                                           |         |          |         |            | (7,150,844 | )       |         |            |           |        
|                                                  |                                                                                       | Liabilities assumed                                 |                                                                                                 |                                           | (125,925 | )        |         |            | 7,176,675  |         |         |            |           |        



F-9



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 1     Organization




| |        
| | -------
| | General





| |     |   |  |                                                                                                                                                                                                  
| | --- | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 82  | % |  | General Growth, as sole general partner                                                                                                                                                          
| | 16  |   |  | Limited partners that indirectly include family members of the
    original stockholders of the Company. Represented by common
    units of limited partnership interest (the Common
    Units)
| | 2   |   |  | Limited partners that include subsequent contributors of
    properties to the Operating Partnership which are also
    represented by Common Units.                                             
| |     |   | 
| | 100 | % |  |                                                                                                                                                                                                  
| |     |   | 

one-for-one






|  |                                                                                                                                                                                                                                                                    
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | GGPLP L.L.C., a Delaware limited liability company (the
    LLC), has ownership interests in the majority of our
    properties (other than those acquired in The Rouse Company
    merger (the TRC Merger, Note 3)).                                          
| 
| | The Rouse Company LP (TRCLP), successor to The Rouse
    Company (TRC), which includes both REIT and taxable
    REIT subsidiaries (TRSs), has ownership interests in
    Consolidated Properties and Unconsolidated Properties (each as
    defined below). 
| 
| | General Growth Management, Inc. (GGMI), a TRS,
    manages, leases, and performs various other services for some of
    our Unconsolidated Real Estate Affiliates (as defined below) and
    approximately 30 properties owned by unaffiliated third
    parties.





| |                        
| | -----------------------
| | Shareholder Rights Plan



F-10



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






| |                                              
| | ---------------------------------------------
| | Dividend Reinvestment and Stock Purchase Plan





|       |                                           
|------ | ------------------------------------------
|Note 2 | Summary of Significant Accounting Policies



| |                            
| | ---------------------------
| | Principles of Consolidation





| |           
| | ----------
| | Properties





F-11



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








|                                            |  |       |       | 
|------------------------------------------- |  | ----- | ----- | 
|                                            |  | Years |      
|                                            |  |       |      
|Buildings and improvements                  |  |       | 40-45 | 
|Equipment, tenant improvements and fixtures |  |       | 5-10  | 



| |                                     
| | ------------------------------------
| | Acquisitions of Operating Properties











F-12



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






| |                                                         
| | --------------------------------------------------------
| | Investments in Unconsolidated Real Estate
    Affiliates







| |                                                                       
| | ----------------------------------------------------------------------
| | Cash and Cash Equivalents and Investments in Marketable
    Securities







| |       
| | ------
| | Leases





| |                  
| | -----------------
| | Deferred Expenses



F-13



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                                          
| | -----------------------------------------
| | Minority Interests  Common
    (Note 12)





| |               
| | --------------
| | Treasury Stock





| |                                        
| | ---------------------------------------
| | Revenue Recognition and Related Matters



|                                              |  |                |        |  |      |   |        |      |  |   |        | 
|--------------------------------------------- |  | -------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | 
|                                              |  | 2005           |        |  | 2004 |   |        | 2003 | 
|                                              |  |                |        |  |      |   |        |      | 
|                                              |  | (In thousands) |       
|Lease termination fees                        |  | $              | 14,534 |  |      | $ | 7,942  |      |  | $ | 9,694  | 
|Above and below-market tenant lease accretion |  |                | 34,692 |  |      |   | 27,591 |      |  |   | 16,551 | 









F-14



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)










| |                      
| | ---------------------
| | Income Taxes (Note 7)





| |                           
| | --------------------------
| | Earnings Per Share (EPS)





F-15



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|              |                                                                        |                          |   |         |         |  |   |         |  |  |         |         |  |       |   |         |         |  |   |         |    |  |   |         | 
|------------- | ---------------------------------------------------------------------- | ------------------------ | - | ------- | ------- |  | - | ------- |  |  | ------- | ------- |  | ----- | - | ------- | ------- |  | - | ------- | -- |  | - | ------- | 
|              |                                                                        | Years Ended December 31, |  
|              |                                                                        |                          |  
|              |                                                                        | 2005                     |   |         | 2004    |  |   | 2003    | 
|              |                                                                        |                          |   |         |         |  |   |         | 
|              |                                                                        | Basic                    |   |         | Diluted |  |   | Basic   |  |  | Diluted |         |  | Basic |   |         | Diluted | 
|              |                                                                        |                          |   |         |         |  |   |         |  |  |         |         |  |       |   |         |         | 
|              |                                                                        | (In thousands)           |  
|Numerators:   |                                                                        |                          |   |         |         |  |   |         |  |  |         |         |  |       |   |         |         |  |   |         |    |  |   |        
|              | Income from continuing operations                                      |                          | $ | 63,867  |         |  | $ | 63,867  |  |  | $       | 252,868 |  |       | $ | 252,868 |         |  | $ | 255,563 |    |  | $ | 255,563 | 
|              | Convertible preferred stock dividends                                  |                          |   |        |         |  |   |        |  |  |         |        |  |       |   |        |         |  |   | (13,030 | )* |  |   |        | 
|              |                                                                        |                          |   |         |         |  |   |         |  |  |         |         |  |       |   |         |         | 
|              | Income from continuing operations available to common
    stockholders |                          |   | 63,867  |         |  |   | 63,867  |  |  |         | 252,868 |  |       |   | 252,868 |         |  |   | 242,533 |    |  |   | 255,563 | 
|              | Discontinued operations, net of minority interest                      |                          |   | 11,686  |         |  |   | 11,686  |  |  |         | 14,984  |  |       |   | 14,984  |         |  |   | 7,848   |    |  |   | 7,848   | 
|              |                                                                        |                          |   |         |         |  |   |         |  |  |         |         |  |       |   |         |         | 
|              | Net income available to common stockholders                            |                          | $ | 75,553  |         |  | $ | 75,553  |  |  | $       | 267,852 |  |       | $ | 267,852 |         |  | $ | 250,381 |    |  | $ | 263,411 | 
|              |                                                                        |                          |   |         |         |  |   |         |  |  |         |         |  |       |   |         |         | 
|Denominators: |                                                                        |                          |   |         |         |  |   |         |  |  |         |         |  |       |   |         |         |  |   |         |    |  |   |        
|              | Weighted average number of common shares outstanding 
    basic       |                          |   | 237,673 |         |  |   | 237,673 |  |  |         | 220,149 |  |       |   | 220,149 |         |  |   | 200,875 |    |  |   | 200,875 | 
|              | Effect of dilutive securities  options (and PIERS in
    2003*)       |                          |   |        |         |  |   | 796     |  |  |         |        |  |       |   | 680     |         |  |   |        |    |  |   | 14,204  | 
|              |                                                                        |                          |   |         |         |  |   |         |  |  |         |         |  |       |   |         |         | 
|              | Weighted average number of common shares outstanding                   |                          |   | 237,673 |         |  |   | 238,469 |  |  |         | 220,149 |  |       |   | 220,829 |         |  |   | 200,875 |    |  |   | 215,079 | 
|              |                                                                        |                          |   |         |         |  |   |         |  |  |         |         |  |       |   |         |         | 






|  |                                                                                                                                                                                                                                                
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | For the year ended December 31, 2003, the effect of the
    issuance of the PIERS is dilutive and, therefore, no adjustment
    of net income is made as the PIERS dilution is reflected in the
    denominator of the diluted EPS calculation.

Derivative Financial Instruments








F-16



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








Fair Value of Financial Instruments




|                   |  |               |        |  |            |   |        |          |  |   |            |  |  |   |        | 
|------------------ |  | ------------- | ------ |  | ---------- | - | ------ | -------- |  | - | ---------- |  |  | - | ------ | 
|                   |  | 2005          |        |  | 2004       |  
|                   |  |               |        |  |            |  
|                   |  | Carrying      |        |  | Estimated  |   |        | Carrying |  |   | Estimated  | 
|                   |  | Amount        |        |  | Fair Value |   |        | Amount   |  |   | Fair Value | 
|                   |  |               |        |  |            |   |        |          |  |   |            | 
|                   |  | (In millions) |       
|Fixed-rate debt    |  | $             | 13,906 |  |            | $ | 13,960 |          |  | $ | 11,120     |  |  | $ | 11,368 | 
|Variable-rate debt |  |               | 6,513  |  |            |   | 6,430  |          |  |   | 9,191      |  |  |   | 9,187  | 
|                   |  |               |        |  |            |   |        |          |  |   |            | 
|                   |  | $             | 20,419 |  |            | $ | 20,390 |          |  | $ | 20,311     |  |  | $ | 20,555 | 
|                   |  |               |        |  |            |   |        |          |  |   |            | 



| |                        
| | -----------------------
| | Stock Options (Note 10)



F-17



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                             
| | ----------------------------
| | Foreign Currency Translation





| |                 
| | ----------------
| | Use of Estimates





| |                  
| | -----------------
| | Reclassifications





|       |                             
|------ | ----------------------------
|Note 3 | Acquisitions and Intangibles



| |                  
| | -----------------
| | The Rouse Company





F-18



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                                                 |                            |                   |            |            |                   |   |          |                   |   |   |            |         | 
|---------------------------------------------------------------- | -------------------------- | ----------------- | ---------- | ---------- | ----------------- | - | -------- | ----------------- | - | - | ---------- | ------- | 
|                                                                 |                            |                   |            | Revisions/ |                   |   |         
|                                                                 |                            | Initial Estimate  |            |            | Reclassifications |   |          | Final Valuation   |  
|                                                                 |                            | November 12, 2004 |            |            | Non-Cash          |   |          | November 12, 2005 |  
|                                                                 |                            |                   |            |            |                   |   |          |                   |  
|                                                                 |                            | (In thousands)    |           
|Land                                                             |                            | $                 | 1,314,711  |            |                   | $ | (2,720   | )                 |   | $ | 1,311,991  |        
|Buildings and equipment                                          |                            |                   | 8,206,370  |            |                   |   | (24,808  | )                 |   |   | 8,181,562  |        
|Developments in progress                                         |                            |                   | 383,996    |            |                   |   | (52,904  | )                 |   |   | 331,092    |        
|Investment in and loans to Unconsolidated Real Estate Affiliates |                            |                   | 1,236,299  |            |                   |   | 49,203   |                   |   |   | 1,285,502  |        
|Investment land and land held for development and sale           |                            |                   | 1,645,700  |            |                   |   | 54,079   |                   |   |   | 1,699,779  |        
|Cash and cash equivalents                                        |                            |                   | 29,077     |            |                   |   |         |                   |   |   | 29,077     |        
|Accounts and notes receivables                                   |                            |                   | 84,424     |            |                   |   | (2,470   | )                 |   |   | 81,954     |        
|Prepaid expenses and other assets:                               |                            |                   |            |            |                   |   |          |                   |   |   |            |        
|                                                                 | Below-market ground leases |                   |            | 382,328    |                   |   |          | (23,804           | ) |   |            | 358,524 | 
|                                                                 | Above-market tenant leases |                   |            | 141,048    |                   |   |          | (32,830           | ) |   |            | 108,218 | 
|                                                                 | Deferred tax assets        |                   |            | 145,243    |                   |   |          | (143,004          | ) |   |            | 2,239   | 
|                                                                 | Other                      |                   |            | 401,527    |                   |   |          | (18,736           | ) |   |            | 382,791 | 
|Goodwill                                                         |                            |                   | 356,796    |            |                   |   | 63,828   |                   |   |   | 420,624    |        
|                                                                 |                            |                   |            |            |                   |   |          |                   |  
|Total purchase price                                             |                            | $                 | 14,327,519 |            |                   | $ | (134,166 | )                 |   | $ | 14,193,353 |        
|                                                                 |                            |                   |            |            |                   |   |          |                   |  



Other Acquisitions




|                                                                                         |  |                  |              | 
|---------------------------------------------------------------------------------------- |  | ---------------- | ------------ | 
|                                                                                         |  | Acquisition Date |             
|                                                                                         |  |                  |             
|20% ownership interest in Zaratustra Mall
    (through Cencom, S.A. (Brazil))            |  |                  | August 3     | 
|50% ownership interest in Pinnacle Hills Promenade
    (through Rogers Retail L.L.C.)    |  |                  | September 30 | 
|50% ownership interest in Circle T Power Center
    (through 170 Retail Associates, LTD) |  |                  | October 31   | 
|50% ownership interest in Whalers Village
    (through GGP-TRS, L.L.C.)                  |  |                  | November 1   | 

F-19



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                                       |  |               |            |       |          |   |       | 
|------------------------------------------------------ |  | ------------- | ---------- | ----- | -------- | - | ----- | 
|                                                       |  |               |            | Gross |         
|                                                       |  | Acquisition   |            |       | Purchase |  
|                                                       |  | Date          |            |       | Price    |  
|                                                       |  |               |            |       |          |  
|                                                       |  | (In millions) |           
|50% ownership interest in Burlington Town Center       |  |               | January 7  |       |          | $ | 10.25 | 
|Redlands Mall                                          |  |               | January 16 |       |          |   | 14.25 | 
|The remaining 50% ownership interest in Town East Mall |  |               | March 1    |       |          |   | 44.5  | 
|Four Seasons Town Centre                               |  |               | March 5    |       |          |   | 161.0 | 
|50% ownership interest in GSG de Costa Rica SRL        |  |               | April 30   |       |          |   | 9.7   | 
|50% ownership interest in Riverchase Galleria          |  |               | May 11     |       |          |   | 166.0 | 
|Mall of Louisiana                                      |  |               | May 12     |       |          |   | 265.0 | 
|Grand Canal Shoppes                                    |  |               | May 17     |       |          |   | 766.0 | 
|50% ownership interest in GGP/ NIG Brazil              |  |               | July 30    |       |          |   | 7.0   | 
|Stonestown Galleria                                    |  |               | August 13  |       |          |   | 312.0 | 



Accounting for Acquisitions and Intangibles




F-20



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                        |                |                |        |          |              |  |       |              |   |  |        |          |  
|--------------------------------------- | -------------- | -------------- | ------ | -------- | ------------ |  | ----- | ------------ | - |  | ------ | -------- | -
|                                        |                | Gross Asset    |        |          | Accumulated  |  |       | Net Carrying |  
|                                        |                | (Liability)    |        |          | Amortization |  |       | Amount       |  
|                                        |                |                |        |          |              |  |       |              |  
|                                        |                | (In thousands) |       
|December 31, 2005                       |                |                |        |          |              |  |       |              |   |  |        |         
|Tenant leases:                          |                |                |        |          |              |  |       |              |   |  |        |         
|                                        | In-place value |                | $      | 664,444  |              |  | $     | 176,190      |   |  | $      | 488,254  |  
|                                        | Above-market   |                |        | 106,117  |              |  |       | 29,023       |   |  |        | 77,094   |  
|                                        | Below-market   |                |        | (293,967 | )            |  |       | (111,697     | ) |  |        | (182,270 | )
|Ground leases:                          |                |                |        |          |              |  |       |              |   |  |        |         
|                                        | Above-market   |                |        | (16,968  | )            |  |       | (535         | ) |  |        | (16,433  | )
|                                        | Below-market   |                |        | 358,524  |              |  |       | 8,736        |   |  |        | 349,788  |  
|Real estate tax stabilization agreement |                |                | 91,879 |          |              |  | 4,691 |              |   |  | 87,188 |         
|December 31, 2004                       |                |                |        |          |              |  |       |              |   |  |        |         
|Tenant leases:                          |                |                |        |          |              |  |       |              |   |  |        |         
|                                        | In-place value |                | $      | 595,162  |              |  | $     | 29,495       |   |  | $      | 565,667  |  
|                                        | Above-market   |                |        | 141,701  |              |  |       | 2,883        |   |  |        | 138,818  |  
|                                        | Below-market   |                |        | (303,427 | )            |  |       | (51,444      | ) |  |        | (251,983 | )
|Ground leases:                          |                |                |        |          |              |  |       |              |   |  |        |         
|                                        | Above-market   |                |        | (17,077  | )            |  |       | (66          | ) |  |        | (17,011  | )
|                                        | Below-market   |                |        | 398,510  |              |  |       | 1,125        |   |  |        | 397,385  |  
|Real estate tax stabilization agreement |                |                | 94,168 |          |              |  | 654   |              |   |  | 93,514 |         







|       |                                                                                           
|------ | ------------------------------------------------------------------------------------------
|Note 4 | Discontinued Operations and Gains on Dispositions of
    Interests in Operating Properties





F-21



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                      |  |                |         |  
|------------------------------------- |  | -------------- | ------- | -
|                                      |  | (In thousands) |        
|Land                                  |  | $              | 57,132  |  
|Buildings and equipment, net          |  |                | 102,691 |  
|Other assets                          |  |                | 4,459   |  
|Mortgage notes payable                |  |                | (21,963 | )
|Accounts payable and accrued expenses |  |                | (1,499  | )
|                                      |  |                |        
|Net                                   |  | $              | 140,820 |  
|                                      |  |                |        







|            |                                          |                          |   |        |        |  |   |       |       |  |   |       |       | 
|----------- | ---------------------------------------- | ------------------------ | - | ------ | ------ |  | - | ----- | ----- |  | - | ----- | ----- | 
|            |                                          | Years Ended December 31, |  
|            |                                          |                          |  
|            |                                          | 2005                     |   |        | 2004   |  |   | 2003  |      
|            |                                          |                          |   |        |        |  |   |       |      
|            |                                          | (In thousands)           |  
|Revenues:   |                                          |                          |   |        |        |  |   |       |       |  |   |      
|            | Hunt Valley/ Rutherford                  |                          | $ | 24,275 |        |  | $ | 2,813 |       |  | $ |      |      
|            | JP Realty commercial/business properties |                          |   |       |        |  |   | 6,118 |       |  |   | 7,937 |      
|            | McCreless                                |                          |   |       |        |  |   |      |       |  |   | 859   |      
|            |                                          |                          |   |        |        |  |   |       |      
|            |                                          | Total                    |   | $      | 24,275 |  |   | $     | 8,931 |  |   | $     | 8,796 | 
|            |                                          |                          |   |        |        |  |   |       |      
|Net income: |                                          |                          |   |        |        |  |   |       |       |  |   |      
|            | Hunt Valley/Rutherford                   |                          | $ | 8,067  |        |  | $ | 983   |       |  | $ |      |      
|            | JP Realty commercial/business properties |                          |   |       |        |  |   | 3,801 |       |  |   | 5,030 |      
|            | McCreless                                |                          |   |       |        |  |   |      |       |  |   | 292   |      
|            |                                          |                          |   |        |        |  |   |       |      
|            |                                          | Total                    |   | $      | 8,067  |  |   | $     | 4,784 |  |   | $     | 5,322 | 
|            |                                          |                          |   |        |        |  |   |       |      



|       |                                      
|------ | -------------------------------------
|Note 5 | Unconsolidated Real Estate Affiliates

non-controlling




F-22



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)












| |                                                                                      
| | -------------------------------------------------------------------------------------
| | Condensed Combined Financial Information of Unconsolidated
    Real Estate Affiliates



|                                                                              |                                                        |                               |                                      |            |           |           |   |           |           |           | 
|----------------------------------------------------------------------------- | ------------------------------------------------------ | ----------------------------- | ------------------------------------ | ---------- | --------- | --------- | - | --------- | --------- | --------- | 
|                                                                              |                                                        | December 31,                  |                                     
|                                                                              |                                                        |                               |                                     
|                                                                              |                                                        | 2005                          |                                      |            | 2004      |          
|                                                                              |                                                        |                               |                                      |            |           |          
|                                                                              |                                                        | (In thousands)                |                                     
|Condensed Combined Balance Sheets  Unconsolidated
    Real Estate Affiliates
|Assets:                                                                       |                                                        |                               |                                      |            |           |           |   |          
|                                                                              | Land                                                   |                               | $                                    | 919,532    |           |           | $ | 852,137   |          
|                                                                              | Buildings and equipment                                |                               |                                      | 7,658,896  |           |           |   | 7,398,555 |          
|                                                                              | Less accumulated depreciation                          |                               |                                      | (1,304,226 | )         |           |   | (982,616  | )        
|                                                                              | Developments in progress                               |                               |                                      | 425,057    |           |           |   | 220,486   |          
|                                                                              |                                                        |                               |                                      |            |           |          
|                                                                              |                                                        | Net property and equipment    |                                      |            | 7,699,259 |           |   |           | 7,488,562 |          
|                                                                              | Investment in unconsolidated joint ventures            |                               |                                      | 89,430     |           |           |   | 56,362    |          
|                                                                              | Investment land and land held for sale and development |                               |                                      | 259,386    |           |           |   | 257,555   |          
|                                                                              |                                                        |                               |                                      |            |           |          
|                                                                              |                                                        | Net investment in real estate |                                      |            | 8,048,075 |           |   |           | 7,802,479 |          
|                                                                              | Cash and cash equivalents                              |                               |                                      | 194,494    |           |           |   | 134,399   |          
|                                                                              | Accounts and notes receivable, net                     |                               |                                      | 161,218    |           |           |   | 119,444   |          
|                                                                              | Deferred expenses, net                                 |                               |                                      | 148,561    |           |           |   | 175,447   |          
|                                                                              | Prepaid expenses and other assets                      |                               |                                      | 259,480    |           |           |   | 261,463   |          
|                                                                              |                                                        |                               |                                      |            |           |          
|                                                                              |                                                        |                               | Total assets                         |            | $         | 8,811,828 |   |           | $         | 8,493,232 | 
|                                                                              |                                                        |                               |                                      |            |           |          
|                                                                             
|Liabilities and Owners Equity:                                               |                                                        |                               |                                      |            |           |           |   |          
|                                                                              | Mortgage notes and other property debt payable         |                               | $                                    | 6,325,118  |           |           | $ | 5,601,137 |          
|                                                                              | Accounts payable and accrued expenses                  |                               |                                      | 455,596    |           |           |   | 417,324   |          
|                                                                              | Owners equity                                         |                               |                                      | 2,031,114  |           |           |   | 2,474,771 |          
|                                                                              |                                                        |                               |                                      |            |           |          
|                                                                              |                                                        |                               | Total liabilities and owners equity |            | $         | 8,811,828 |   |           | $         | 8,493,232 | 
|                                                                              |                                                        |                               |                                      |            |           |          

F-23



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                                                           |  |                |            |   |      |   |            |  
|-------------------------------------------------------------------------- |  | -------------- | ---------- | - | ---- | - | ---------- | -
|                                                                           |  | December 31,   |           
|                                                                           |  |                |           
|                                                                           |  | 2005           |            |   | 2004 |  
|                                                                           |  |                |            |   |      |  
|                                                                           |  | (In thousands) |           
|Investment In and Loans To/ From Unconsolidated Real Estate
    Affiliates |  |                |            |   |      |   |            |  
|Owners equity                                                             |  | $              | 2,031,114  |   |      | $ | 2,474,771  |  
|Less joint venture partners equity                                        |  |                | (1,188,150 | ) |      |   | (1,258,133 | )
|Capital or basis differences and loans                                     |  |                | 975,133    |   |      |   | 728,903    |  
|                                                                           |  |                |            |   |      |  
|Investment in and loans to/from Unconsolidated Real Estate
    Affiliates  |  | $              | 1,818,097  |   |      | $ | 1,945,541  |  
|                                                                           |  |                |            |   |      |  

|                                                                                        |                                     |                          |          |         |           |   |          |         |         |   |          |         |         | 
|--------------------------------------------------------------------------------------- | ----------------------------------- | ------------------------ | -------- | ------- | --------- | - | -------- | ------- | ------- | - | -------- | ------- | ------- | 
|                                                                                        |                                     | Years Ended December 31, |         
|                                                                                        |                                     |                          |         
|                                                                                        |                                     | 2005                     |          |         | 2004      |   |          | 2003    |        
|                                                                                        |                                     |                          |          |         |           |   |          |         |        
|                                                                                        |                                     | (In thousands)           |         
|Condensed Combined Statements of Operations 
    Unconsolidated Real Estate Affiliates |                                     |                          |          |         |           |   |          |         |         |   |          |        
|Revenues:                                                                               |                                     |                          |          |         |           |   |          |         |         |   |          |        
|                                                                                        | Minimum rents                       |                          | $        | 792,708 |           |   | $        | 569,347 |         |   | $        | 559,060 |        
|                                                                                        | Tenant recoveries                   |                          |          | 364,645 |           |   |          | 264,907 |         |   |          | 272,537 |        
|                                                                                        | Overage rents                       |                          |          | 28,592  |           |   |          | 21,421  |         |   |          | 15,593  |        
|                                                                                        | Land sales                          |                          |          | 158,181 |           |   |          | 38,681  |         |   |          |        |        
|                                                                                        | Other                               |                          |          | 126,503 |           |   |          | 35,082  |         |   |          | 15,414  |        
|                                                                                        |                                     |                          |          |         |           |   |          |         |        
|                                                                                        |                                     | Total revenues           |          |         | 1,470,629 |   |          |         | 929,438 |   |          |         | 862,604 | 
|                                                                                        |                                     |                          |          |         |           |   |          |         |        
|Expenses:                                                                               |                                     |                          |          |         |           |   |          |         |         |   |          |        
|                                                                                        | Real estate taxes                   |                          |          | 112,010 |           |   |          | 77,513  |         |   |          | 78,449  |        
|                                                                                        | Repairs and maintenance             |                          |          | 87,449  |           |   |          | 59,051  |         |   |          | 64,864  |        
|                                                                                        | Marketing                           |                          |          | 29,563  |           |   |          | 25,859  |         |   |          | 27,504  |        
|                                                                                        | Other property operating costs      |                          |          | 239,404 |           |   |          | 144,894 |         |   |          | 117,387 |        
|                                                                                        | Land sales operations               |                          |          | 89,560  |           |   |          | 18,101  |         |   |          |        |        
|                                                                                        | Provision for doubtful accounts     |                          |          | 10,071  |           |   |          | 5,389   |         |   |          | 3,197   |        
|                                                                                        | Property management and other costs |                          |          | 59,423  |           |   |          | 47,042  |         |   |          | 48,807  |        
|                                                                                        | General and administrative          |                          |          | 3,267   |           |   |          | 7,759   |         |   |          | 2,099   |        
|                                                                                        | Depreciation and amortization       |                          |          | 254,542 |           |   |          | 170,530 |         |   |          | 157,776 |        
|                                                                                        |                                     |                          |          |         |           |   |          |         |        
|                                                                                        |                                     | Total expenses           |          |         | 885,289   |   |          |         | 556,138 |   |          |         | 500,083 | 
|                                                                                        |                                     |                          |          |         |           |   |          |         |        
|Operating income                                                                        |                                     |                          | 585,340  |         |           |   | 373,300  |         |         |   | 362,521  |        
|Interest income                                                                         |                                     |                          | 14,430   |         |           |   | 3,779    |         |         |   | 5,757    |        
|Interest expense                                                                        |                                     |                          | (303,447 | )       |           |   | (179,807 | )       |         |   | (174,862 | )      
|Equity in income of unconsolidated joint ventures                                       |                                     |                          | 5,384    |         |           |   | 4,337    |         |         |   | 3,933    |        
|                                                                                        |                                     |                          |          |         |           |   |          |         |        
|Net income                                                                              |                                     | $                        | 301,707  |         |           | $ | 201,609  |         |         | $ | 197,349  |        
|                                                                                        |                                     |                          |          |         |           |   |          |         |        

F-24



---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                                                                     |  |                          |          |   |      |   |          |      |  |   |         |  
|------------------------------------------------------------------------------------ |  | ------------------------ | -------- | - | ---- | - | -------- | ---- |  | - | ------- | -
|                                                                                     |  | Years Ended December 31, |         
|                                                                                     |  |                          |         
|                                                                                     |  | 2005                     |          |   | 2004 |   |          | 2003 | 
|                                                                                     |  |                          |          |   |      |   |          |      | 
|                                                                                     |  | (In thousands)           |         
|Equity In Income of Unconsolidated Real Estate Affiliates                            |  |                          |          |   |      |   |          |      |  |   |         |  
|Net income of Unconsolidated Real Estate Affiliates                                  |  | $                        | 301,707  |   |      | $ | 201,609  |      |  | $ | 197,349 |  
|Joint venture partners share of income of Unconsolidated
    Real Estate Affiliates |  |                          | (157,152 | ) |      |   | (103,768 | )    |  |   | (98,226 | )
|Amortization of capital or basis differences                                         |  |                          | (22,998  | ) |      |   | (9,633   | )    |  |   | (3,263  | )
|Elimination of Unconsolidated Real Estate Affiliates loan
    interest               |  |                          | (571     | ) |      |   | (17      | )    |  |   | (1,380  | )
|                                                                                     |  |                          |          |   |      |   |          |      | 
|Equity in income of Unconsolidated Real Estate Affiliates                            |  | $                        | 120,986  |   |      | $ | 88,191   |      |  | $ | 94,480  |  
|                                                                                     |  |                          |          |   |      |   |          |      | 

Condensed Financial Information of Individually
Significant Unconsolidated Real Estate Affiliates




GGP-TRS,


F-25



---



##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                      |                                                |                                            |   |           |              |  |   |           |           | 
|------------------------------------- | ---------------------------------------------- | ------------------------------------------ | - | --------- | ------------ |  | - | --------- | --------- | 
|                                      |                                                | GGP/Homart                                 |  
|                                      |                                                |                                            |  
|                                      |                                                | December 31,                               |   |           | December 31, | 
|                                      |                                                | 2005                                       |   |           | 2004         | 
|                                      |                                                |                                            |   |           |              | 
|                                      |                                                | (In thousands)                             |  
|Assets:                               |                                                |                                            |   |           |              |  |   |          
|                                      | Land                                           |                                            | $ | 146,527   |              |  | $ | 146,777   |          
|                                      | Buildings and equipment                        |                                            |   | 1,796,336 |              |  |   | 1,765,800 |          
|                                      | Less accumulated depreciation                  |                                            |   | (452,809  | )            |  |   | (389,682  | )        
|                                      | Developments in progress                       |                                            |   | 30,009    |              |  |   | 8,586     |          
|                                      | Investment in unconsolidated joint ventures    |                                            |   | 8,788     |              |  |   | 10,898    |          
|                                      |                                                |                                            |   |           |              | 
|                                      |                                                | Net investment in real estate              |   |           | 1,528,851    |  |   |           | 1,542,379 | 
|                                      | Cash and cash equivalents                      |                                            |   | 65,612    |              |  |   | 20,319    |          
|                                      | Accounts receivable, net                       |                                            |   | 48,137    |              |  |   | 39,252    |          
|                                      | Deferred expenses, net                         |                                            |   | 46,709    |              |  |   | 48,970    |          
|                                      | Prepaid expenses and other assets              |                                            |   | 18,333    |              |  |   | 56,482    |          
|                                      |                                                |                                            |   |           |              | 
|                                      |                                                | Total assets                               |   | $         | 1,707,642    |  |   | $         | 1,707,402 | 
|                                      |                                                |                                            |   |           |              | 
|Liabilities and Stockholders Equity: |                                                |                                            |   |           |              |  |   |          
|                                      | Mortgage notes and other property debt payable |                                            | $ | 1,579,717 |              |  | $ | 1,469,938 |          
|                                      | Accounts payable and accrued expenses          |                                            |   | 58,710    |              |  |   | 63,559    |          
|                                      | Stockholders equity                           |                                            |   | 69,215    |              |  |   | 173,905   |          
|                                      |                                                |                                            |   |           |              | 
|                                      |                                                | Total liabilities and stockholders equity |   | $         | 1,707,642    |  |   | $         | 1,707,402 | 
|                                      |                                                |                                            |   |           |              | 

|                                  |                                                |                                        |   |           |              |  |   |           |           | 
|--------------------------------- | ---------------------------------------------- | -------------------------------------- | - | --------- | ------------ |  | - | --------- | --------- | 
|                                  |                                                | GGP/Homart II                          |  
|                                  |                                                |                                        |  
|                                  |                                                | December 31,                           |   |           | December 31, | 
|                                  |                                                | 2005                                   |   |           | 2004         | 
|                                  |                                                |                                        |   |           |              | 
|                                  |                                                | (In thousands)                         |  
|Assets:                           |                                                |                                        |   |           |              |  |   |          
|                                  | Land                                           |                                        | $ | 190,787   |              |  | $ | 190,707   |          
|                                  | Buildings and equipment                        |                                        |   | 2,014,151 |              |  |   | 1,957,969 |          
|                                  | Less accumulated depreciation                  |                                        |   | (264,434  | )            |  |   | (205,637  | )        
|                                  | Developments in progress                       |                                        |   | 148,453   |              |  |   | 63,970    |          
|                                  |                                                |                                        |   |           |              | 
|                                  |                                                | Net investment in real estate          |   |           | 2,088,957    |  |   |           | 2,007,009 | 
|                                  | Cash and cash equivalents                      |                                        |   | 47,781    |              |  |   | 23,149    |          
|                                  | Accounts receivable, net                       |                                        |   | 32,644    |              |  |   | 32,265    |          
|                                  | Deferred expenses, net                         |                                        |   | 56,223    |              |  |   | 59,102    |          
|                                  | Prepaid expenses and other assets              |                                        |   | 116,234   |              |  |   | 36,236    |          
|                                  |                                                |                                        |   |           |              | 
|                                  |                                                | Total assets                           |   | $         | 2,341,839    |  |   | $         | 2,157,761 | 
|                                  |                                                |                                        |   |           |              | 
|                                 
|Liabilities and Members Capital: |                                                |                                        |   |           |              |  |   |          
|                                  | Mortgage notes and other property debt payable |                                        | $ | 1,666,979 |              |  | $ | 1,331,301 |          
|                                  | Accounts payable and accrued expenses          |                                        |   | 81,064    |              |  |   | 81,691    |          
|                                  | Members capital                               |                                        |   | 593,796   |              |  |   | 744,769   |          
|                                  |                                                |                                        |   |           |              | 
|                                  |                                                | Total liabilities and members capital |   | $         | 2,341,839    |  |   | $         | 2,157,761 | 
|                                  |                                                |                                        |   |           |              | 

F-26



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                  |                                                |                                        |   |         |              |  |   |         |         | 
|--------------------------------- | ---------------------------------------------- | -------------------------------------- | - | ------- | ------------ |  | - | ------- | ------- | 
|                                  |                                                | GGP/Teachers                           |  
|                                  |                                                |                                        |  
|                                  |                                                | December 31,                           |   |         | December 31, | 
|                                  |                                                | 2005                                   |   |         | 2004         | 
|                                  |                                                |                                        |   |         |              | 
|                                  |                                                | (In thousands)                         |  
|Assets:                           |                                                |                                        |   |         |              |  |   |        
|                                  | Land                                           |                                        | $ | 176,761 |              |  | $ | 125,378 |        
|                                  | Buildings and equipment                        |                                        |   | 879,828 |              |  |   | 703,700 |        
|                                  | Less accumulated depreciation                  |                                        |   | (64,795 | )            |  |   | (44,147 | )      
|                                  | Developments in progress                       |                                        |   | 18,431  |              |  |   | 20,847  |        
|                                  |                                                |                                        |   |         |              | 
|                                  |                                                | Net investment in real estate          |   |         | 1,010,225    |  |   |         | 805,778 | 
|                                  | Cash and cash equivalents                      |                                        |   | 16,531  |              |  |   | 19,658  |        
|                                  | Accounts receivable, net                       |                                        |   | 9,725   |              |  |   | 7,990   |        
|                                  | Deferred expenses, net                         |                                        |   | 13,220  |              |  |   | 8,423   |        
|                                  | Prepaid expenses and other assets              |                                        |   | 3,968   |              |  |   | 3,267   |        
|                                  |                                                |                                        |   |         |              | 
|                                  |                                                | Total assets                           |   | $       | 1,053,669    |  |   | $       | 845,116 | 
|                                  |                                                |                                        |   |         |              | 
|                                 
|Liabilities and Members Capital: |                                                |                                        |   |         |              |  |   |        
|                                  | Mortgage notes and other property debt payable |                                        | $ | 786,025 |              |  | $ | 466,580 |        
|                                  | Accounts payable and accrued expenses          |                                        |   | 82,574  |              |  |   | 67,017  |        
|                                  | Members capital                               |                                        |   | 185,070 |              |  |   | 311,519 |        
|                                  |                                                |                                        |   |         |              | 
|                                  |                                                | Total liabilities and members capital |   | $       | 1,053,669    |  |   | $       | 845,116 | 
|                                  |                                                |                                        |   |         |              | 

F-27



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                                  |                                     |                |         |         |         |   |         |         |         |   |         |         |         | 
|------------------------------------------------- | ----------------------------------- | -------------- | ------- | ------- | ------- | - | ------- | ------- | ------- | - | ------- | ------- | ------- | 
|                                                  |                                     | GGP/Homart     |        
|                                                  |                                     |                |        
|                                                  |                                     | 2005           |         |         | 2004    |   |         | 2003    |        
|Years ended December 31,                          |                                     |                |         |         |         |   |         |         |        
|                                                  |                                     | (In thousands) |        
|Revenues:                                         |                                     |                |         |         |         |   |         |         |         |   |         |        
|                                                  | Minimum rents                       |                | $       | 226,936 |         |   | $       | 214,448 |         |   | $       | 208,685 |        
|                                                  | Tenant recoveries                   |                |         | 95,752  |         |   |         | 91,867  |         |   |         | 91,476  |        
|                                                  | Overage rents                       |                |         | 9,312   |         |   |         | 8,266   |         |   |         | 6,241   |        
|                                                  | Other                               |                |         | 10,660  |         |   |         | 7,469   |         |   |         | 6,388   |        
|                                                  |                                     |                |         |         |         |   |         |         |        
|                                                  |                                     | Total revenues |         |         | 342,660 |   |         |         | 322,050 |   |         |         | 312,790 | 
|                                                  |                                     |                |         |         |         |   |         |         |        
|Expenses:                                         |                                     |                |         |         |         |   |         |         |         |   |         |        
|                                                  | Real estate taxes                   |                |         | 29,745  |         |   |         | 27,845  |         |   |         | 26,852  |        
|                                                  | Repairs and maintenance             |                |         | 26,748  |         |   |         | 25,890  |         |   |         | 25,482  |        
|                                                  | Marketing                           |                |         | 9,294   |         |   |         | 9,683   |         |   |         | 9,576   |        
|                                                  | Other property operating costs      |                |         | 36,590  |         |   |         | 41,975  |         |   |         | 41,468  |        
|                                                  | Provision for doubtful accounts     |                |         | 1,088   |         |   |         | 1,487   |         |   |         | 1,040   |        
|                                                  | Property management and other costs |                |         | 20,835  |         |   |         | 19,355  |         |   |         | 18,846  |        
|                                                  | General and administrative          |                |         | 434     |         |   |         | 2,756   |         |   |         | 755     |        
|                                                  | Depreciation and amortization       |                |         | 68,578  |         |   |         | 66,430  |         |   |         | 61,778  |        
|                                                  |                                     |                |         |         |         |   |         |         |        
|                                                  |                                     | Total expenses |         |         | 193,312 |   |         |         | 195,421 |   |         |         | 185,797 | 
|                                                  |                                     |                |         |         |         |   |         |         |        
|Operating income                                  |                                     |                | 149,348 |         |         |   | 126,629 |         |         |   | 126,993 |        
|Interest income                                   |                                     |                | 4,588   |         |         |   | 1,817   |         |         |   | 1,185   |        
|Interest expense                                  |                                     |                | (84,684 | )       |         |   | (81,120 | )       |         |   | (74,813 | )      
|Equity in income of unconsolidated joint ventures |                                     |                | 5,384   |         |         |   | 4,337   |         |         |   | 3,933   |        
|                                                  |                                     |                |         |         |         |   |         |         |        
|Net income                                        |                                     | $              | 74,636  |         |         | $ | 51,663  |         |         | $ | 57,298  |        
|                                                  |                                     |                |         |         |         |   |         |         |        

F-28



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                         |                                     |                |         |         |         |   |         |         |         |   |         |         |         | 
|------------------------ | ----------------------------------- | -------------- | ------- | ------- | ------- | - | ------- | ------- | ------- | - | ------- | ------- | ------- | 
|                         |                                     | GGP/Homart II  |        
|                         |                                     |                |        
|                         |                                     | 2005           |         |         | 2004    |   |         | 2003    |        
|Years ended December 31, |                                     |                |         |         |         |   |         |         |        
|                         |                                     | (In thousands) |        
|Revenues:                |                                     |                |         |         |         |   |         |         |         |   |         |        
|                         | Minimum rents                       |                | $       | 194,938 |         |   | $       | 184,418 |         |   | $       | 177,752 |        
|                         | Tenant recoveries                   |                |         | 92,862  |         |   |         | 90,958  |         |   |         | 85,194  |        
|                         | Overage rents                       |                |         | 6,432   |         |   |         | 5,530   |         |   |         | 5,552   |        
|                         | Other                               |                |         | 8,543   |         |   |         | 5,352   |         |   |         | 5,823   |        
|                         |                                     |                |         |         |         |   |         |         |        
|                         |                                     | Total revenues |         |         | 302,775 |   |         |         | 286,258 |   |         |         | 274,321 | 
|                         |                                     |                |         |         |         |   |         |         |        
|Expenses:                |                                     |                |         |         |         |   |         |         |         |   |         |        
|                         | Real estate taxes                   |                |         | 27,132  |         |   |         | 27,030  |         |   |         | 24,493  |        
|                         | Repairs and maintenance             |                |         | 19,671  |         |   |         | 18,734  |         |   |         | 18,454  |        
|                         | Marketing                           |                |         | 8,726   |         |   |         | 9,504   |         |   |         | 9,271   |        
|                         | Other property operating costs      |                |         | 29,518  |         |   |         | 34,268  |         |   |         | 34,496  |        
|                         | Provision for doubtful accounts     |                |         | 3,125   |         |   |         | 1,591   |         |   |         | 1,733   |        
|                         | Property management and other costs |                |         | 17,468  |         |   |         | 16,176  |         |   |         | 15,892  |        
|                         | General and administrative          |                |         | 1,913   |         |   |         | 4,282   |         |   |         | 577     |        
|                         | Depreciation and amortization       |                |         | 61,923  |         |   |         | 56,394  |         |   |         | 53,243  |        
|                         |                                     |                |         |         |         |   |         |         |        
|                         |                                     | Total expenses |         |         | 169,476 |   |         |         | 167,979 |   |         |         | 158,159 | 
|                         |                                     |                |         |         |         |   |         |         |        
|Operating income         |                                     |                | 133,299 |         |         |   | 118,279 |         |         |   | 116,162 |        
|Interest income          |                                     |                | 7,358   |         |         |   | 1,492   |         |         |   | 4,188   |        
|Interest expense         |                                     |                | (77,285 | )       |         |   | (55,780 | )       |         |   | (60,491 | )      
|                         |                                     |                |         |         |         |   |         |         |        
|Net income               |                                     | $              | 63,372  |         |         | $ | 63,991  |         |         | $ | 59,859  |        
|                         |                                     |                |         |         |         |   |         |         |        

F-29



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                         |                                     |                |         |        |         |   |         |        |         |   |         |        |         | 
|------------------------ | ----------------------------------- | -------------- | ------- | ------ | ------- | - | ------- | ------ | ------- | - | ------- | ------ | ------- | 
|                         |                                     | GGP/Teachers   |        
|                         |                                     |                |        
|                         |                                     | 2005           |         |        | 2004    |   |         | 2003   |        
|Years ended December 31, |                                     |                |         |        |         |   |         |        |        
|                         |                                     | (In thousands) |        
|Revenues:                |                                     |                |         |        |         |   |         |        |         |   |         |       
|                         | Minimum rents                       |                | $       | 87,014 |         |   | $       | 83,464 |         |   | $       | 78,252 |        
|                         | Tenant recoveries                   |                |         | 40,033 |         |   |         | 38,473 |         |   |         | 39,329 |        
|                         | Overage rents                       |                |         | 2,888  |         |   |         | 2,736  |         |   |         | 1,844  |        
|                         | Other                               |                |         | 2,378  |         |   |         | 1,831  |         |   |         | 1,132  |        
|                         |                                     |                |         |        |         |   |         |        |        
|                         |                                     | Total revenues |         |        | 132,313 |   |         |        | 126,504 |   |         |        | 120,557 | 
|                         |                                     |                |         |        |         |   |         |        |        
|Expenses:                |                                     |                |         |        |         |   |         |        |         |   |         |       
|                         | Real estate taxes                   |                |         | 11,130 |         |   |         | 10,868 |         |   |         | 11,756 |        
|                         | Repairs and maintenance             |                |         | 7,405  |         |   |         | 7,472  |         |   |         | 8,321  |        
|                         | Marketing                           |                |         | 3,610  |         |   |         | 3,424  |         |   |         | 3,383  |        
|                         | Other property operating costs      |                |         | 13,551 |         |   |         | 16,538 |         |   |         | 16,235 |        
|                         | Provision for doubtful accounts     |                |         | 440    |         |   |         | 445    |         |   |         | 250    |        
|                         | Property management and other costs |                |         | 7,424  |         |   |         | 6,716  |         |   |         | 6,383  |        
|                         | General and administrative          |                |         | 875    |         |   |         | 302    |         |   |         | 711    |        
|                         | Depreciation and amortization       |                |         | 21,385 |         |   |         | 20,578 |         |   |         | 17,399 |        
|                         |                                     |                |         |        |         |   |         |        |        
|                         |                                     | Total expenses |         |        | 65,820  |   |         |        | 66,343  |   |         |        | 64,438  | 
|                         |                                     |                |         |        |         |   |         |        |        
|Operating income         |                                     |                | 66,493  |        |         |   | 60,161  |        |         |   | 56,119  |       
|Interest income          |                                     |                | 723     |        |         |   | 287     |        |         |   | 274     |       
|Interest expense         |                                     |                | (27,030 | )      |         |   | (15,499 | )      |         |   | (14,939 | )     
|                         |                                     |                |         |        |         |   |         |        |        
|Net income               |                                     | $              | 40,186  |        |         | $ | 44,949  |        |         | $ | 41,454  |       
|                         |                                     |                |         |        |         |   |         |        |        

F-30



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


Note 6     Mortgage Notes and
Other Property Debt Payable




|                    |                                                                         |                |   |            |      |  |   |            | 
|------------------- | ----------------------------------------------------------------------- | -------------- | - | ---------- | ---- |  | - | ---------- | 
|                    |                                                                         | December 31,   |  
|                    |                                                                         |                |  
|                    |                                                                         | 2005           |   |            | 2004 | 
|                    |                                                                         |                |   |            |      | 
|                    |                                                                         | (In thousands) |  
|Fixed-rate debt:    |                                                                         |                |   |            |      |  |   |           
|                    | Commercial mortgage-backed securities                                   |                | $ | 1,181,895  |      |  | $ | 1,201,291  | 
|                    | Other collateralized mortgage notes and other property debt
    payable |                |   | 11,092,544 |      |  |   | 8,167,894  | 
|                    | Corporate and other unsecured term loans                                |                |   | 1,631,257  |      |  |   | 1,750,882  | 
|                    |                                                                         |                |   |            |      | 
|                    | Total fixed-rate debt                                                   |                |   | 13,905,696 |      |  |   | 11,120,067 | 
|                    |                                                                         |                |   |            |      | 
|Variable-rate debt: |                                                                         |                |   |            |      |  |   |           
|                    | Commercial mortgage-backed securities                                   |                |   | 306,270    |      |  |   | 361,239    | 
|                    | Other collateralized mortgage notes and other property debt
    payable |                |   | 888,842    |      |  |   | 2,189,059  | 
|                    | Credit facilities                                                       |                |   | 180,500    |      |  |   | 150,000    | 
|                    | Corporate and other unsecured term loans                                |                |   | 5,137,567  |      |  |   | 6,490,582  | 
|                    |                                                                         |                |   |            |      | 
|                    | Total variable-rate debt                                                |                |   | 6,513,179  |      |  |   | 9,190,880  | 
|                    |                                                                         |                |   |            |      | 
|                    | Total                                                                   |                | $ | 20,418,875 |      |  | $ | 20,310,947 | 
|                    |                                                                         |                |   |            |      | 





Commercial Mortgage-Backed Securities






F-31



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |  |                       |       |  |                                     |   |       |              |  |  |                |  |  |  |   |  |  | 
|-------- |  | --------------------- | ----- |  | ----------------------------------- | - | ----- | ------------ |  |  | -------------- |  |  |  | - |  |  | 
|         |  | Outstanding Balance   |       |  | Number of Collateralized Properties |   |       |             
|         |  |                       |       |  |                                     |   |       |             
|         |  | Consolidated          |       |  | Unconsolidated                      |   |       | Consolidated |  |  | Unconsolidated |  |  | 
|         |  |                       |       |  |                                     |   |       |              |  |  |                |  |  | 
|         |  | (Dollars in millions) |       |  |                                     |   |       |              | 
|GGP MPTC |  | $                     | 619.4 |  |                                     | $ | 291.4 |              |  |  | 4              |  |  |  | 5 |  |  | 
|CMBS 13  |  |                       | 868.8 |  |                                     |   | 138.6 |              |  |  | 11             |  |  |  | 2 |  |  | 



Other Collateralized Mortgage Notes and Other Property
Debt Payable






2004 Credit Facility




|                          |  |               |         |              |      |   |         |      |  |   |         | 
|------------------------- |  | ------------- | ------- | ------------ | ---- | - | ------- | ---- |  | - | ------- | 
|                          |  |               |         | December 31, |     
|                          |  | Initial       |         |              |      |  
|                          |  | Capacity      |         |              | 2005 |   |         | 2004 | 
|                          |  |               |         |              |      |   |         |      | 
|                          |  | (In millions) |         |              |     
|Six-month bridge loan     |  | $             | 1,145.0 |              |      | $ |        |      |  | $ | 749.9   | 
|Three-year term loan      |  |               | 3,650.0 |              |      |   | 3,064.9 |      |  |   | 3,650.0 | 
|Four-year term loan       |  |               | 2,000.0 |              |      |   | 1,980.0 |      |  |   | 2,000.0 | 
|Revolving credit facility |  |               | 500.0   |              |      |   | 180.5   |      |  |   | 150.0   | 
|                          |  |               |         |              |      |   |         |      | 
|                          |  | $             | 7,295.0 |              |      | $ | 5,225.4 |      |  | $ | 6,549.9 | 
|                          |  |               |         |              |      |   |         |      | 







F-32



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)
















| |                     
| | --------------------
| | Unsecured Term Loans





F-33



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                    
| | -------------------
| | Interest Rate Swaps



|                                                              |  |          |             |             |           |   |              |                   |  |   |              |  
|------------------------------------------------------------- |  | -------- | ----------- | ----------- | --------- | - | ------------ | ----------------- |  | - | ------------ | -
|                                                              |  |          |             | 2004 Credit |           |   |             
|                                                              |  | GGP MPTC |             |             | Agreement |   |              | Property Specific | 
|                                                              |  |          |             |             |           |   |              |                   | 
|Total notional amount (in millions)                           |  | $        | 125.0       |             |           | $ | 350.0        |                   |  | $ | 408.1        |  
|Average fixed effective rate (pay rate)                       |  |          | 4.59        | %           |           |   | 3.43         | %                 |  |   | 5.62         | %
|Average variable interest rate of related debt (receive rate) |  |          | LIBOR + .92 | %           |           |   | LIBOR + 1.75 | %                 |  |   | LIBOR + 1.60 | %





| |                                   
| | ----------------------------------
| | Letters of Credit and Surety Bonds



Note 7     Income Taxes








F-34



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|         |  |                |        |  |      |   |       | 
|-------- |  | -------------- | ------ |  | ---- | - | ----- | 
|         |  | 2005           |        |  | 2004 |  
|         |  |                |        |  |      |  
|         |  | (In thousands) |       
|Current  |  | $              | 22,050 |  |      | $ | 390   | 
|Deferred |  |                | 28,596 |  |      |   | 1,993 | 
|         |  |                |        |  |      |  
|Total    |  | $              | 50,646 |  |      | $ | 2,383 | 
|         |  |                |        |  |      |  



|                                                                                                                 |  |                |        |   |      |   |         |  
|---------------------------------------------------------------------------------------------------------------- |  | -------------- | ------ | - | ---- | - | ------- | -
|                                                                                                                 |  | 2005           |        |   | 2004 |  
|                                                                                                                 |  |                |        |   |      |  
|                                                                                                                 |  | (In thousands) |       
|Tax at statutory rate on earnings from continuing operations
    before income taxes                             |  | $              | 40,080 |   |      | $ | 89,481  |  
|Decrease in valuation allowances, net                                                                            |  |                | (5,114 | ) |      |   | (2,110  | )
|State income taxes, net of federal income tax benefit                                                            |  |                | 343    |   |      |   | 115     |  
|Tax at statutory rate on (earnings) loss not subject to federal
    income taxes and other permanent differences |  |                | 15,337 |   |      |   | (85,103 | )
|                                                                                                                 |  |                |        |   |      |  
|Income tax expense                                                                                               |  | $              | 50,646 |   |      | $ | 2,383   |  
|                                                                                                                 |  |                |        |   |      |  







F-35



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                      |                         |                |            |        |      |   |            |         | 
|------------------------------------- | ----------------------- | -------------- | ---------- | ------ | ---- | - | ---------- | ------- | 
|                                      |                         | 2005           |            |        | 2004 |  
|                                      |                         |                |            |        |      |  
|                                      |                         | (In thousands) |           
|Total deferred tax assets             |                         | $              | 12,457     |        |      | $ | 180,374    |        
|Valuation allowance                   |                         |                |           |        |      |   | (29,998    | )      
|                                      |                         |                |            |        |      |  
|                                      | Net deferred tax assets |                |            | 12,457 |      |   |            | 150,376 | 
|Total deferred tax liabilities        |                         |                | (1,286,576 | )      |      |   | (1,414,565 | )      
|                                      |                         |                |            |        |      |  
|Net deferred tax assets (liabilities) |                         | $              | (1,274,119 | )      |      | $ | (1,264,189 | )      
|                                      |                         |                |            |        |      |  





|                                                                                                                               |  |                |            |   |      |   |            |  
|------------------------------------------------------------------------------------------------------------------------------ |  | -------------- | ---------- | - | ---- | - | ---------- | -
|                                                                                                                               |  | 2005           |            |   | 2004 |  
|                                                                                                                               |  |                |            |   |      |  
|                                                                                                                               |  | (In thousands) |           
|Property, primarily differences in depreciation and
    amortization, the tax basis of land assets and certain other
    costs |  | $              | (1,266,660 | ) |      | $ | (1,329,676 | )
|Deferred income                                                                                                                |  |                | (236,167   | ) |      |   | (146,182   | )
|Interest deduction carryforwards                                                                                               |  |                | 163,193    |   |      |   | 154,523    |  
|Operating loss and tax credit carryforwards                                                                                    |  |                | 65,515     |   |      |   | 57,146     |  
|                                                                                                                               |  |                |            |   |      |  
|Net deferred tax assets (liabilities)                                                                                          |  | $              | (1,274,119 | ) |      | $ | (1,264,189 | )
|                                                                                                                               |  |                |            |   |      |  







F-36



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                        |  |      |       |  |      |   |       |      |  |   |       | 
|--------------------------------------- |  | ---- | ----- |  | ---- | - | ----- | ---- |  | - | ----- | 
|                                        |  | 2005 |       |  | 2004 |   |       | 2003 | 
|                                        |  |      |       |  |      |   |       |      | 
|Common shares                           |  |      |       |  |      |   |       |      |  |   |       | 
|Ordinary income                         |  | $    | 0.993 |  |      | $ | 1.260 |      |  | $ | 1.003 | 
|Return of capital                       |  |      | 0.497 |  |      |   |      |      |  |   |      | 
|Unrecaptured Section 1250 capital gains |  |      |      |  |      |   |      |      |  |   | 0.017 | 
|                                        |  |      |       |  |      |   |       |      | 
|Distributions per share                 |  | $    | 1.490 |  |      | $ | 1.260 |      |  | $ | 1.020 | 
|                                        |  |      |       |  |      |   |       |      | 
|Preferred shares*                       |  |      |       |  |      |   |       |      |  |   |       | 
|Ordinary income                         |  | $    |      |  |      | $ |      |      |  | $ | 1.403 | 
|Unrecaptured Section 1250 capital gains |  |      |      |  |      |   |      |      |  |   | 0.028 | 
|                                        |  |      |       |  |      |   |       |      | 
|Distributions per share                 |  | $    |      |  |      | $ |      |      |  | $ | 1.431 | 
|                                        |  |      |       |  |      |   |       |      | 






Note 8     Rentals Under
Operating Leases




|           |  |                |           | 
|---------- |  | -------------- | --------- | 
|Year       |  | Amount         |          
|           |  |                |          
|           |  | (In thousands) |          
|2006       |  | $              | 1,308,641 | 
|2007       |  |                | 1,219,607 | 
|2008       |  |                | 1,096,938 | 
|2009       |  |                | 959,978   | 
|2010       |  |                | 804,762   | 
|Subsequent |  |                | 2,817,353 | 







|       |                             
|------ | ----------------------------
|Note 9 | Transactions with Affiliates



| |                                   
| | ----------------------------------
| | Property Management and Other Fees



F-37



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                            
| | ---------------------------
| | Notes Receivable  Officers



|                                                             |  |                |       | 
|------------------------------------------------------------ |  | -------------- | ----- | 
|                                                             |  | 2004           |      
|                                                             |  |                |      
|                                                             |  | (In thousands) |      
|Income tax withholdings reported in Prepaid and Other Assets |  | $              | 623   | 
|Reported as a reduction to Stockholders Equity              |  |                | 5,178 | 
|                                                             |  |                |      
|                                                             |  | $              | 5,801 | 
|                                                             |  |                |      







| |      
| | -----
| | Other





|        |                                 
|------- | --------------------------------
|Note 10 | Employee Benefit and Stock Plans



| |                      
| | ---------------------
| | Incentive Stock Plans

5-year 10-year 1 3


F-38



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                                                             |  |        |           |          |       |   |       |        |          |   |           |   |  |          |       |  |       |   |           |   |  |   |       | 
|---------------------------------------------------------------------------- |  | ------ | --------- | -------- | ----- | - | ----- | ------ | -------- | - | --------- | - |  | -------- | ----- |  | ----- | - | --------- | - |  | - | ----- | 
|                                                                             |  | 2005   |           |          | 2004  |   |       | 2003   |         
|                                                                             |  |        |           |          |       |   |       |        |         
|                                                                             |  |        |           | Weighted |       |   |       |        | Weighted |   |           |   |  | Weighted |      
|                                                                             |  |        |           | Average  |       |   |       |        | Average  |   |           |   |  | Average  |      
|                                                                             |  |        |           | Exercise |       |   |       |        | Exercise |   |           |   |  | Exercise |      
|                                                                             |  | Shares |           |          | Price |   |       | Shares |          |   | Price     |   |  | Shares   |       |  | Price |  
|                                                                             |  |        |           |          |       |   |       |        |          |   |           |   |  |          |       |  |       |  
|Outstanding at beginning of year                                             |  |        | 1,875,687 |          |       | $ | 22.17 |        |          |   | 1,482,087 |   |  | $        | 14.86 |  |       |   | 1,590,309 |   |  | $ | 12.45 | 
|Granted                                                                      |  |        | 1,352,500 |          |       |   | 36.13 |        |          |   | 922,500   |   |  |          | 30.80 |  |       |   | 760,500   |   |  |   | 16.96 | 
|Exercised                                                                    |  |        | (610,213  | )        |       |   | 21.00 |        |          |   | (521,100  | ) |  |          | 16.83 |  |       |   | (845,922  | ) |  |   | 12.28 | 
|Forfeited                                                                    |  |        | (71,800   | )        |       |   | 32.90 |        |          |   | (7,800    | ) |  |          | 11.26 |  |       |   | (22,800   | ) |  |   | 11.76 | 
|                                                                             |  |        |           |          |       |   |       |        |          |   |           |   |  |          |       |  |       |  
|Outstanding at end of year                                                   |  |        | 2,546,174 |          |       | $ | 29.57 |        |          |   | 1,875,687 |   |  | $        | 22.17 |  |       |   | 1,482,087 |   |  | $ | 14.86 | 
|                                                                             |  |        |           |          |       |   |       |        |          |   |           |   |  |          |       |  |       |  
|Exercisable at end of year                                                   |  |        | 607,174   |          |       | $ | 25.85 |        |          |   | 369,687   |   |  | $        | 19.49 |  |       |   | 234,087   |   |  | $ | 13.67 | 
|Shares available for future grants                                           |  |        | 6,645,500 |          |       |   |       |        |          |   | 7,994,000 |   |  |          |       |  |       |   | 8,971,500 |   |  |   |       | 
|Weighted average per share fair value of options granted during
    the year |  | $      | 4.82      |          |       |   |       |        |          | $ | 2.97      |   |  |          |       |  |       | $ | 1.33      |   |  |   |       | 



|                         |  |                     |           |          |                     |  |           |                |  |   |             |          |  |                |         |  |  |   |       | 
|------------------------ |  | ------------------- | --------- | -------- | ------------------- |  | --------- | -------------- |  | - | ----------- | -------- |  | -------------- | ------- |  |  | - | ----- | 
|                         |  | Options Outstanding |           |          | Options Exercisable | 
|                         |  |                     |           |          |                     | 
|                         |  |                     |           | Weighted |                     |  | Weighted  |                |  |   |             | Weighted | 
|                         |  | Number              |           |          | Average Remaining   |  |           | Average        |  |   | Options     |          |  | Average        |        
|Range of Exercise Prices |  | Outstanding         |           |          | Contractual Life    |  |           | Exercise Price |  |   | Exercisable |          |  | Exercise Price |        
|                         |  |                     |           |          |                     |  |           |                |  |   |             |          |  |                |        
|$9.45 - $14.18           |  |                     | 139,900   |          |                     |  | 5.1 years |                |  | $ | 13.03       |          |  |                | 109,900 |  |  | $ | 12.89 | 
|$14.18 - $18.90          |  |                     | 517,111   |          |                     |  | 6.9 years |                |  |   | 16.74       |          |  |                | 139,111 |  |  |   | 16.73 | 
|$28.35 - $33.08          |  |                     | 685,000   |          |                     |  | 3.1 years |                |  |   | 30.94       |          |  |                | 184,000 |  |  |   | 30.94 | 
|$33.08 - $37.80          |  |                     | 1,121,663 |          |                     |  | 3.9 years |                |  |   | 35.58       |          |  |                | 161,663 |  |  |   | 35.40 | 
|$37.80 - $42.53          |  |                     | 7,500     |          |                     |  | 4.8 years |                |  |   | 40.55       |          |  |                | 7,500   |  |  |   | 40.55 | 
|$42.53 - $47.26          |  |                     | 75,000    |          |                     |  | 4.8 years |                |  |   | 45.27       |          |  |                | 5,000   |  |  |   | 46.63 | 
|                         |  |                     |           |          |                     |  |           |                |  |   |             |          |  |                |        
|Total                    |  |                     | 2,546,174 |          |                     |  | 4.8 years |                |  | $ | 29.57       |          |  |                | 607,174 |  |  | $ | 25.85 | 
|                         |  |                     |           |          |                     |  |           |                |  |   |             |          |  |                |        



| |                                
| | -------------------------------
| | Threshold-Vesting Stock Options



F-39



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                    |                               |                |       |           |      |   |           |           |   |   |            |          |   |      |           |          |      |   |           |          |   |  |           |          |  
|----------------------------------- | ----------------------------- | -------------- | ----- | --------- | ---- | - | --------- | --------- | - | - | ---------- | -------- | - | ---- | --------- | -------- | ---- | - | --------- | -------- | - |  | --------- | -------- | -
|                                    |                               | TSO Grant Year |      
|                                    |                               |                |      
|                                    |                               | 2005           |       |           | 2004 |   |           | 2003      |   |   | 2002       |          |   | 2001 |           |          | 2000 |  
|                                    |                               |                |       |           |      |   |           |           |   |   |            |          |   |      |           |          |      |  
|Exercise price                      |                               | $              | 35.41 |           |      | $ | 30.94     |           |   | $ | 16.77      |          |   | $    | 13.58     |          |      | $ | 11.58     |          |   |  | 9.99      |         
|Threshold Vesting Stock Price       |                               |                | 49.66 |           |      |   | 43.39     |           |   |   | 23.52      |          |   |      | 19.04     |          |      |   | 16.23     |          |   |  | 14.01     |         
|Vesting date                        |                               |                | n/a   |           |      |   | 9/07/2005 |           |   |   | 10/24/2003 |          |   |      | 6/03/2003 |          |      |   | 9/13/2002 |          |   |  | 3/22/2002 |         
|Fair value of options on grant date |                               |                | 3.77  |           |      |   | 1.59      |           |   |   | 1.31       |          |   |      | 1.13      |          |      |   | 0.74      |          |   |  | 0.50      |         
|Shares:                             |                               |                |       |           |      |   |           |           |   |   |            |          |   |      |           |          |      |   |           |          |   |  |           |         
|                                    | Original Grant                |                |       | 1,000,000 |      |   |           | 1,031,480 |   |   |            | 900,000  |   |      |           | 779,025  |      |   |           | 989,988  |   |  |           | 753,090  |  
|                                    | Forfeited                     |                |       | (55,723   | )    |   |           | (114,919  | ) |   |            | (62,727  | ) |      |           | (121,452 | )    |   |           | (152,178 | ) |  |           | (168,726 | )
|                                    | Vested and exchanged for cash |                |       |          |      |   |           |          |   |   |            | (549,594 | ) |      |           | (495,693 | )    |   |           | (610,011 | ) |  |           | (438,288 | )
|                                    | Vested and exercised          |                |       |          |      |   |           | (916,561  | ) |   |            | (215,502 | ) |      |           | (126,348 | )    |   |           | (181,419 | ) |  |           | (141,000 | )
|                                    |                               |                |       |           |      |   |           |           |   |   |            |          |   |      |           |          |      |  
|                                    | Outstanding                   |                |       | 944,277   |      |   |           |          |   |   |            | 72,177   |   |      |           | 35,532   |      |   |           | 46,380   |   |  |           | 5,076    |  
|                                    |                               |                |       |           |      |   |           |           |   |   |            |          |   |      |           |          |      |  



|                        |  |      |           |   |      |  |           |      |  |  |           |  
|----------------------- |  | ---- | --------- | - | ---- |  | --------- | ---- |  |  | --------- | -
|                        |  | 2005 |           |   | 2004 |  |           | 2003 | 
|                        |  |      |           |   |      |  |           |      | 
|Risk-free interest rate |  |      | 3.40      | % |      |  | 3.44      | %    |  |  | 4.28      | %
|Dividend yield          |  |      | 4.00      |   |      |  | 6.09      |      |  |  | 6.21      |  
|Expected volatility     |  |      | 21.61     |   |      |  | 20.10     |      |  |  | 16.95     |  
|Expected life           |  |      | 5.0 years |   |      |  | 5.2 years |      |  |  | 9.9 years |  



Restricted Stock




|               |  |           |         |  |                |  |     |    
|-------------- |  | --------- | ------- |  | -------------- |  | --- | ---
|               |  | Number of |         |  | Vesting Period | 
|Date           |  | Shares    |         |  | (In Years)     | 
|               |  |           |         |  |                | 
|February 2005  |  |           | 66,000  |  |                |  | 1   |    
|February 2004  |  |           | 55,000  |  |                |  | 1   |    
|February 2003  |  |           | 60,000  |  |                |  | N/A | (1)
|February 2003  |  |           | 45,000  |  |                |  | 3   |    
|September 2002 |  |           | 150,000 |  |                |  | 3   |    








F-40



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


Employee Stock Purchase Plan






| |                        
| | -----------------------
| | Management Savings Plan





| |         
| | --------
| | TRC Plan



F-41



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                           
|------- | --------------------------
|Note 11 | Other Assets & Liabilities



|                                        |  |              |         |  |      |   |           | 
|--------------------------------------- |  | ------------ | ------- |  | ---- | - | --------- | 
|                                        |  | December 31, |        
|                                        |  | 2005         |         |  | 2004 |  
|                                        |  |              |         |  |      |  
|Below-market ground leases              |  | $            | 349,788 |  |      | $ | 397,385   | 
|Deferred tax assets                     |  |              | 12,457  |  |      |   | 150,376   | 
|Above-market tenant leases              |  |              | 77,094  |  |      |   | 138,818   | 
|Real estate tax stabilization agreement |  |              | 87,188  |  |      |   | 93,514    | 
|Receivables, finance leases and bonds   |  |              | 136,410 |  |      |   | 87,497    | 
|Special Improvement District receivable |  |              | 66,206  |  |      |   | 48,586    | 
|Security and escrow deposits            |  |              | 87,126  |  |      |   | 24,490    | 
|Funded defined contribution plan assets |  |              | 20,156  |  |      |   | 50,724    | 
|Prepaid expenses                        |  |              | 29,884  |  |      |   | 19,486    | 
|Other                                   |  |              | 54,060  |  |      |   | 114,871   | 
|                                        |  |              |         |  |      |  
|                                        |  | $            | 920,369 |  |      | $ | 1,125,747 | 
|                                        |  |              |         |  |      |  



|                                               |  |              |           |  |      |   |         | 
|---------------------------------------------- |  | ------------ | --------- |  | ---- | - | ------- | 
|                                               |  | December 31, |          
|                                               |  | 2005         |           |  | 2004 |  
|                                               |  |              |           |  |      |  
|Below-market tenant leases                     |  | $            | 182,270   |  |      | $ | 251,983 | 
|Accounts payable deposits and accrued expenses |  |              | 594,876   |  |      |   | 376,826 | 
|Deferred gains/income                          |  |              | 38,736    |  |      |   | 73,100  | 
|Hughes participation payable                   |  |              | 61,783    |  |      |   | 35,019  | 
|Pension and retirement benefit liabilities     |  |              |          |  |      |   | 15,881  | 
|Capital lease obligations                      |  |              | 19,206    |  |      |   | 22,487  | 
|Insurance reserves                             |  |              | 31,852    |  |      |   | 18,046  | 
|Other                                          |  |              | 103,691   |  |      |   | 102,178 | 
|                                               |  |              |           |  |      |  
|                                               |  | $            | 1,032,414 |  |      | $ | 895,520 | 
|                                               |  |              |           |  |      |  

F-42



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|        |                   
|------- | ------------------
|Note 12 | Minority Interests



| |       
| | ------
| | Common



|                  |                                                 |  |            |            |  
|----------------- | ----------------------------------------------- |  | ---------- | ---------- | -
|December 31, 2002 |                                                 |  | 58,668,741 |           
|                  | Exchanges for General Growth common stock       |  |            | (2,956,491 | )
|                  |                                                 |  |           
|December 31, 2003 |                                                 |  | 55,712,250 |           
|                  | Exchanges for General Growth common stock       |  |            | (179,987   | )
|                  |                                                 |  |           
|December 31, 2004 |                                                 |  | 55,532,263 |           
|                  | Conversion of Preferred Units into Common Units |  |            | 729,890    |  
|                  | Exchanges for General Growth common stock       |  |            | (3,200,258 | )
|                  |                                                 |  |           
|December 31, 2005 |                                                 |  | 53,061,895 |           
|                  |                                                 |  |           





F-43



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |          
| | ---------
| | Preferred



|                                                   |  |        |      |   |         |          |         |          |          |                |             |                 |  |      |       |  |      |   |         |  |  |   |         |    
|-------------------------------------------------- |  | ------ | ---- | - | ------- | -------- | ------- | -------- | -------- | -------------- | ----------- | --------------- |  | ---- | ----- |  | ---- | - | ------- |  |  | - | ------- | ---
|                                                   |  |        |      |   |         | Number   |         |          |          |                |             |                 | 
|                                                   |  |        |      |   |         | of Units |         |          |          |                |            
|                                                   |  |        |      |   |         | as of    |         |          | Per Unit |                |             | Carrying Amount | 
|                                                   |  | Coupon |      |   | Issuing |          |         | December |          |                | Liquidation |                 |  |      |      
|Security Type                                      |  | Rate   |      |   | Entity  |          |         | 31, 2005 |          |                | Preference  |                 |  | 2005 |       |  | 2004 |  
|                                                   |  |        |      |   |         |          |         |          |          |                |             |                 |  |      |       |  |      |  
|                                                   |  |        |      |   |         |          |         |          |          | (In thousands) |            
|Perpetual Preferred Units                          |  |        |      |   |         |          |         |          |          |                |             |                 |  |      |       |  |      |   |         |  |  |   |         |    
|Redeemable Preferred Units (RPUs)                |  |        | 8.95 | % |         |          | LLC     |          |          |                | 240,000     |                 |  | $    | 250   |  |      | $ | 60,000  |  |  | $ | 235,000 | (1)
|Cumulative Preferred Units (CPUs)                |  |        | 8.25 | % |         |          | LLC     |          |          |                | 20,000      |                 |  |      | 250   |  |      |   | 5,000   |  |  |   | 5,000   |    
|Price Development Company (PDC) Series C         |  |        | 8.75 | % |         |          | PDC     |          |          |                |            |                 |  |      | 25    |  |      |   |        |  |  |   | 8,000   |    
|                                                   |  |        |      |   |         |          |         |          |          |                |             |                 |  |      |       |  |      |  
|                                                   |  |        |      |   |         |          |         |          |          |                |             |                 |  |      |       |  |      |   | 65,000  |  |  |   | 248,000 |    
|                                                   |  |        |      |   |         |          |         |          |          |                |             |                 |  |      |       |  |      |  
|Convertible Preferred Units                        |  |        |      |   |         |          |         |          |          |                |             |                 |  |      |       |  |      |   |         |  |  |   |         |    
|Series BJP Realty                                 |  |        | 8.50 | % |         |          | GGPLP   |          |          |                | 1,362,571   |                 |  |      | 50    |  |      |   | 68,129  |  |  |   | 70,975  |    
|Series CGlendale Galleria                         |  |        | 7.00 | % |         |          | GGPLP   |          |          |                | 413,676     |                 |  |      | 50    |  |      |   | 20,685  |  |  |   | 32,176  |    
|Series DFoothills Mall                            |  |        | 6.50 | % |         |          | GGPLP   |          |          |                | 532,750     |                 |  |      | 50    |  |      |   | 26,637  |  |  |   | 26,637  |    
|Series EFour Seasons Town Centre                  |  |        | 7.00 | % |         |          | GGPLP   |          |          |                | 502,658     |                 |  |      | 50    |  |      |   | 25,132  |  |  |   | 25,132  |    
|                                                   |  |        |      |   |         |          |         |          |          |                |             |                 |  |      |       |  |      |  
|                                                   |  |        |      |   |         |          |         |          |          |                |             |                 |  |      |       |  |      |   | 140,583 |  |  |   | 154,920 |    
|Other preferred stock of consolidated subsidiaries |  |        | N/A  |   |         |          | various |          |          |                | 361         |                 |  |      | 1,000 |  |      |   | 361     |  |  |   | 241     |    
|                                                   |  |        |      |   |         |          |         |          |          |                |             |                 |  |      |       |  |      |  
|Total Minority Interest-Preferred                  |  |        |      |   |         |          |         |          |          |                |             |                 |  |      |       |  |      | $ | 205,944 |  |  | $ | 403,161 |    
|                                                   |  |        |      |   |         |          |         |          |          |                |             |                 |  |      |       |  |      |  






|    |                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------
|(1) | Includes $175 million which was redeemed in May 2005 as
    permitted under the terms of the applicable RPUs.





|                                    |  |                  |       | 
|----------------------------------- |  | ---------------- | ----- | 
|                                    |  | Number of Common |      
|                                    |  | Units for each   |      
|                                    |  | Preferred Unit   |      
|                                    |  |                  |      
|Series B  JP Realty                |  |                  | 3.000 | 
|Series C  Glendale Galleria        |  |                  | 2.433 | 
|Series D  Foothills Mall           |  |                  | 1.508 | 
|Series E  Four Seasons Town Center |  |                  | 1.298 | 

F-44



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


Note 13     Accumulated Other
Comprehensive Income (Loss)




|                                                       |  |                |        |   |      |   |        |  
|------------------------------------------------------ |  | -------------- | ------ | - | ---- | - | ------ | -
|                                                       |  | 2005           |        |   | 2004 |  
|                                                       |  |                |        |   |      |  
|                                                       |  | (In thousands) |       
|Net unrealized gains (losses) on financial instruments |  | $              | 4,702  |   |      | $ | (4,852 | )
|Minimum pension liability adjustment                   |  |                | (703   | ) |      |   | (329   | )
|Foreign currency translation                           |  |                | 6,510  |   |      |   | 1,590  |  
|Unrealized losses on available-for-sale securities     |  |                | (55    | ) |      |   | (94    | )
|                                                       |  |                |        |   |      |  
|                                                       |  | $              | 10,454 |   |      | $ | (3,685 | )
|                                                       |  |                |        |   |      |  

Note 14     Commitments and
Contingencies












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GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






|                         |  |                |           |  |      |   |           |      |  |   |           |  |  |      |           |  |            |   |           |       |  |   |           |  |  |   |            | 
|------------------------ |  | -------------- | --------- |  | ---- | - | --------- | ---- |  | - | --------- |  |  | ---- | --------- |  | ---------- | - | --------- | ----- |  | - | --------- |  |  | - | ---------- | 
|                         |  | 2006           |           |  | 2007 |   |           | 2008 |  |   | 2009      |  |  | 2010 |           |  | Subsequent |   |           | Total | 
|                         |  |                |           |  |      |   |           |      |  |   |           |  |  |      |           |  |            |   |           |       | 
|                         |  | (In thousands) |          
|Long-term debt-principal |  | $              | 1,905,410 |  |      | $ | 2,407,092 |      |  | $ | 3,798,168 |  |  | $    | 5,086,955 |  |            | $ | 3,555,162 |       |  | $ | 3,666,088 |  |  | $ | 20,418,875 | 
|Retained debt-principal  |  |                | 50,928    |  |      |   | 88,365    |      |  |   | 2,367     |  |  |      | 2,524     |  |            |   | 120,019   |       |  |   | 38,516    |  |  |   | 302,719    | 
|Ground lease payments    |  |                | 15,327    |  |      |   | 15,451    |      |  |   | 15,474    |  |  |      | 15,497    |  |            |   | 15,506    |       |  |   | 650,523   |  |  |   | 727,778    | 
|                         |  |                |           |  |      |   |           |      |  |   |           |  |  |      |           |  |            |   |           |       | 
|Total                    |  | $              | 1,971,665 |  |      | $ | 2,510,908 |      |  | $ | 3,816,009 |  |  | $    | 5,104,976 |  |            | $ | 3,690,687 |       |  | $ | 4,355,127 |  |  | $ | 21,449,372 | 
|                         |  |                |           |  |      |   |           |      |  |   |           |  |  |      |           |  |            |   |           |       | 

Note 15     Recently Issued
Accounting Pronouncements




F-46



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GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








|  |                                                                                                                                                                                                                 
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | A change in method of depreciating or amortizing a long-lived
    nonfinancial asset be accounted for as a change in estimate
    (prospectively) that was effected by a change in accounting
    principle, and
| 
| | Correction of errors in previously issued financial statements
    should be termed a restatement.                                                                                                            







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GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)










Note 16     Segments






|  |                                                                                                                                                                                                                                                                                      
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Retail and Other  includes the operation,
    development and management of regional shopping centers, office
    and industrial properties, downtown specialty marketplaces, the
    retail and non-retail rental components of mixed-use projects
    and community retail centers

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GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|  |                                                                                                                                                                                                                               
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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









|                             |                                                 |                                           |                                       |           |                |           |         |         |         |         |          |           |           |           | 
|---------------------------- | ----------------------------------------------- | ----------------------------------------- | ------------------------------------- | --------- | -------------- | --------- | ------- | ------- | ------- | ------- | -------- | --------- | --------- | --------- | 
|                             |                                                 | Year Ended December 31, 2005              |                                      
|                             |                                                 |                                           |                                      
|                             |                                                 | Consolidated                              |                                       |           | Unconsolidated |           |         | Segment |        
|                             |                                                 | Properties                                |                                       |           | Properties     |           |         | Basis   |        
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|                             |                                                 | (In thousands)                            |                                      
|Retail and Other             |                                                 |                                           |                                       |           |                |           |         |         |         |         |          |          
|Property revenues:           |                                                 |                                           |                                       |           |                |           |         |         |         |         |          |          
|                             | Minimum rents                                   |                                           | $                                     | 1,670,387 |                |           | $       | 393,740 |         |         | $        | 2,064,127 |          
|                             | Tenant recoveries                               |                                           |                                       | 754,836   |                |           |         | 181,193 |         |         |          | 936,029   |          
|                             | Overage rents                                   |                                           |                                       | 69,628    |                |           |         | 14,085  |         |         |          | 83,713    |          
|                             | Other, including net discontinued operations    |                                           |                                       | 113,454   |                |           |         | 64,803  |         |         |          | 178,257   |          
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|                             |                                                 | Total property revenues                   |                                       |           | 2,608,305      |           |         |         | 653,821 |         |          |           | 3,262,126 |          
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|Property operating expenses: |                                                 |                                           |                                       |           |                |           |         |         |         |         |          |          
|                             | Real estate taxes                               |                                           |                                       | 206,193   |                |           |         | 55,138  |         |         |          | 261,331   |          
|                             | Repairs and maintenance                         |                                           |                                       | 195,292   |                |           |         | 43,313  |         |         |          | 238,605   |          
|                             | Marketing                                       |                                           |                                       | 63,522    |                |           |         | 14,705  |         |         |          | 78,227    |          
|                             | Other property operating costs                  |                                           |                                       | 390,019   |                |           |         | 120,523 |         |         |          | 510,542   |          
|                             | Provision for doubtful accounts                 |                                           |                                       | 13,868    |                |           |         | 4,857   |         |         |          | 18,725    |          
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|                             |                                                 | Total property operating expenses         |                                       |           | 868,894        |           |         |         | 238,536 |         |          |           | 1,107,430 |          
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|                             |                                                 |                                           | Retail and other net operating income |           |                | 1,739,411 |         |         |         | 415,285 |          |           |           | 2,154,696 | 
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|Master Planned Communities   |                                                 |                                           |                                       |           |                |           |         |         |         |         |          |          
|Land sales                   |                                                 |                                           | 385,205                               |           |                |           | 83,089  |         |         |         | 468,294  |          
|Land sales operations        |                                                 |                                           | (311,815                              | )         |                |           | (60,826 | )       |         |         | (372,641 | )        
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|                             | Master Planned Communities net operating income |                                           |                                       | 73,390    |                |           |         | 22,263  |         |         |          | 95,653    |          
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|                             |                                                 | Real estate property net operating income |                                       | $         | 1,812,801      |           |         | $       | 437,548 |         |          | $         | 2,250,349 |          
|                             |                                                 |                                           |                                       |           |                |           |         |         |        

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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                             |                                                 |                                           |                                       |           |                |           |         |         |         |         |          |           |           |           | 
|---------------------------- | ----------------------------------------------- | ----------------------------------------- | ------------------------------------- | --------- | -------------- | --------- | ------- | ------- | ------- | ------- | -------- | --------- | --------- | --------- | 
|                             |                                                 | Year Ended December 31, 2004              |                                      
|                             |                                                 |                                           |                                      
|                             |                                                 | Consolidated                              |                                       |           | Unconsolidated |           |         | Segment |        
|                             |                                                 | Properties                                |                                       |           | Properties     |           |         | Basis   |        
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|                             |                                                 | (In thousands)                            |                                      
|Retail and Other             |                                                 |                                           |                                       |           |                |           |         |         |         |         |          |          
|Property revenues:           |                                                 |                                           |                                       |           |                |           |         |         |         |         |          |          
|                             | Minimum rents                                   |                                           | $                                     | 1,058,732 |                |           | $       | 293,175 |         |         | $        | 1,351,907 |          
|                             | Tenant recoveries                               |                                           |                                       | 472,250   |                |           |         | 135,561 |         |         |          | 607,811   |          
|                             | Overage rents                                   |                                           |                                       | 54,105    |                |           |         | 10,960  |         |         |          | 65,065    |          
|                             | Other, including net discontinued operations    |                                           |                                       | 67,686    |                |           |         | 18,694  |         |         |          | 86,380    |          
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|                             |                                                 | Total property revenues                   |                                       |           | 1,652,773      |           |         |         | 458,390 |         |          |           | 2,111,163 |          
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|Property operating expenses: |                                                 |                                           |                                       |           |                |           |         |         |         |         |          |          
|                             | Real estate taxes                               |                                           |                                       | 128,114   |                |           |         | 39,546  |         |         |          | 167,660   |          
|                             | Repairs and maintenance                         |                                           |                                       | 123,251   |                |           |         | 33,150  |         |         |          | 156,401   |          
|                             | Marketing                                       |                                           |                                       | 48,220    |                |           |         | 13,351  |         |         |          | 61,571    |          
|                             | Other property operating costs                  |                                           |                                       | 207,909   |                |           |         | 74,589  |         |         |          | 282,498   |          
|                             | Provision for doubtful accounts                 |                                           |                                       | 10,375    |                |           |         | 2,766   |         |         |          | 13,141    |          
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|                             |                                                 | Total property operating expenses         |                                       |           | 517,869        |           |         |         | 163,402 |         |          |           | 681,271   |          
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|                             |                                                 |                                           | Retail and other net operating income |           |                | 1,134,904 |         |         |         | 294,988 |          |           |           | 1,429,892 | 
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|Master Planned Communities   |                                                 |                                           |                                       |           |                |           |         |         |         |         |          |          
|Land sales                   |                                                 |                                           | 68,643                                |           |                |           | 37,170  |         |         |         | 105,813  |          
|Land sales operations        |                                                 |                                           | (66,100                               | )         |                |           | (37,225 | )       |         |         | (103,325 | )        
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|                             | Master Planned Communities net operating income |                                           |                                       | 2,543     |                |           |         | (55     | )       |         |          | 2,488     |          
|                             |                                                 |                                           |                                       |           |                |           |         |         |        
|                             |                                                 | Real estate property net operating income |                                       | $         | 1,137,447      |           |         | $       | 294,933 |         |          | $         | 1,432,380 |          
|                             |                                                 |                                           |                                       |           |                |           |         |         |        

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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                             |                                              |                                           |   |         |                |  |   |         |         |  |   |           |           | 
|---------------------------- | -------------------------------------------- | ----------------------------------------- | - | ------- | -------------- |  | - | ------- | ------- |  | - | --------- | --------- | 
|                             |                                              | Year Ended December 31, 2003              |  
|                             |                                              |                                           |  
|                             |                                              | Consolidated                              |   |         | Unconsolidated |  |   | Segment |        
|                             |                                              | Properties                                |   |         | Properties     |  |   | Basis   |        
|                             |                                              |                                           |   |         |                |  |   |         |        
|                             |                                              | (In thousands)                            |  
|Retail and Other             |                                              |                                           |   |         |                |  |   |         |         |  |   |          
|Property revenues:           |                                              |                                           |   |         |                |  |   |         |         |  |   |          
|                             | Minimum rents                                |                                           | $ | 775,320 |                |  | $ | 286,452 |         |  | $ | 1,061,772 |          
|                             | Tenant recoveries                            |                                           |   | 332,137 |                |  |   | 140,334 |         |  |   | 472,471   |          
|                             | Overage rents                                |                                           |   | 34,928  |                |  |   | 8,624   |         |  |   | 43,552    |          
|                             | Other, including net discontinued operations |                                           |   | 41,378  |                |  |   | 8,078   |         |  |   | 49,456    |          
|                             |                                              |                                           |   |         |                |  |   |         |        
|                             |                                              | Total property revenues                   |   |         | 1,183,763      |  |   |         | 443,488 |  |   |           | 1,627,251 | 
|                             |                                              |                                           |   |         |                |  |   |         |        
|Property operating expenses: |                                              |                                           |   |         |                |  |   |         |         |  |   |          
|                             | Real estate taxes                            |                                           |   | 88,276  |                |  |   | 40,056  |         |  |   | 128,332   |          
|                             | Repairs and maintenance                      |                                           |   | 81,433  |                |  |   | 33,716  |         |  |   | 115,149   |          
|                             | Marketing                                    |                                           |   | 35,797  |                |  |   | 14,137  |         |  |   | 49,934    |          
|                             | Other property operating costs               |                                           |   | 153,370 |                |  |   | 60,811  |         |  |   | 214,181   |          
|                             | Provision for doubtful accounts              |                                           |   | 7,041   |                |  |   | 1,664   |         |  |   | 8,705     |          
|                             |                                              |                                           |   |         |                |  |   |         |        
|                             |                                              | Total property operating expenses         |   |         | 365,917        |  |   |         | 150,384 |  |   |           | 516,301   | 
|                             |                                              |                                           |   |         |                |  |   |         |        
|                             |                                              | Real estate property net operating income |   | $       | 817,846        |  |   | $       | 293,104 |  |   | $         | 1,110,950 | 
|                             |                                              |                                           |   |         |                |  |   |         |        



|                                                                  |                                   |                |            |           |      |   |           |         |  |   |           |         | 
|----------------------------------------------------------------- | --------------------------------- | -------------- | ---------- | --------- | ---- | - | --------- | ------- |  | - | --------- | ------- | 
|                                                                  |                                   | 2005           |            |           | 2004 |   |           | 2003    | 
|                                                                  |                                   |                |            |           |      |   |           |         | 
|                                                                  |                                   | (In thousands) |           
|Real estate property net operating income                         |                                   | $              | 2,250,349  |           |      | $ | 1,432,380 |         |  | $ | 1,110,950 |        
|Unconsolidated net operating income                               |                                   |                | (437,548   | )         |      |   | (294,933  | )       |  |   | (293,104  | )      
|                                                                  |                                   |                |            |           |      |   |           |         | 
|Consolidated Properties real estate property net operating income |                                   |                | 1,812,801  |           |      |   | 1,137,447 |         |  |   | 817,846   |        
|Management and other fees                                         |                                   |                | 91,734     |           |      |   | 82,896    |         |  |   | 84,138    |        
|Property management and other costs                               |                                   |                | (148,399   | )         |      |   | (100,267  | )       |  |   | (109,746  | )      
|General and administrative                                        |                                   |                | (13,053    | )         |      |   | (9,499    | )       |  |   | (8,533    | )      
|Depreciation and amortization                                     |                                   |                | (672,914   | )         |      |   | (364,854  | )       |  |   | (230,195  | )      
|Discontinued operations and minority interest in consolidated NOI |                                   |                | (11,828    | )         |      |   | (4,431    | )       |  |   | (5,110    | )      
|                                                                  |                                   |                |            |           |      |   |           |         | 
|                                                                  | Operating income                  |                | $          | 1,058,341 |      |   | $         | 741,292 |  |   | $         | 548,400 | 
|Interest income                                                   |                                   |                | 10,416     |           |      |   | 3,227     |         |  |   | 2,308     |        
|Interest expense                                                  |                                   |                | (1,031,241 | )         |      |   | (472,185  | )       |  |   | (278,543  | )      
|Provision for income taxes                                        |                                   |                | (50,646    | )         |      |   | (2,383    | )       |  |   | (98       | )      
|Income allocated to minority interests                            |                                   |                | (43,989    | )         |      |   | (105,274  | )       |  |   | (110,984  | )      
|Equity in income of unconsolidated affiliates                     |                                   |                | 120,986    |           |      |   | 88,191    |         |  |   | 94,480    |        
|                                                                  |                                   |                |            |           |      |   |           |         | 
|                                                                  | Income from continuing operations |                | $          | 63,867    |      |   | $         | 252,868 |  |   | $         | 255,563 | 
|                                                                  |                                   |                |            |           |      |   |           |         | 

F-51



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                                                 |  |                |           |   |      |   |           |      |  |   |           |  
|---------------------------------------------------------------- |  | -------------- | --------- | - | ---- | - | --------- | ---- |  | - | --------- | -
|                                                                 |  | 2005           |           |   | 2004 |   |           | 2003 | 
|                                                                 |  |                |           |   |      |   |           |      | 
|                                                                 |  | (In thousands) |          
|Total property revenues                                          |  | $              | 3,262,126 |   |      | $ | 2,111,163 |      |  | $ | 1,627,251 |  
|Unconsolidated segment revenues                                  |  |                | (653,821  | ) |      |   | (458,390  | )    |  |   | (443,488  | )
|Land sales                                                       |  |                | 385,205   |   |      |   | 68,643    |      |  |   |          |  
|Management and other fees                                        |  |                | 91,734    |   |      |   | 82,896    |      |  |   | 84,138    |  
|Income from discontinued operations
    net of minority interest |  |                | (11,828   | ) |      |   | (4,431    | )    |  |   | (5,110    | )
|                                                                 |  |                |           |   |      |   |           |      | 
|Total revenues                                                   |  | $              | 3,073,416 |   |      | $ | 1,799,881 |      |  | $ | 1,262,791 |  
|                                                                 |  |                |           |   |      |   |           |      | 



|                           |  |                |            |   |      |   |            |  
|-------------------------- |  | -------------- | ---------- | - | ---- | - | ---------- | -
|                           |  | 2005           |            |   | 2004 |  
|                           |  |                |            |   |      |  
|                           |  | (In thousands) |           
|Retail and Other           |  | $              | 25,523,426 |   |      | $ | 25,630,362 |  
|Master Planned Communities |  |                | 2,116,588  |   |      |   | 1,818,660  |  
|                           |  |                |            |   |      |  
|Total segment assets       |  |                | 27,640,014 |   |      |   | 27,449,022 |  
|Unconsolidated Properties  |  |                | (4,308,854 | ) |      |   | (3,918,661 | )
|Corporate and other        |  |                | 1,975,859  |   |      |   | 2,188,264  |  
|                           |  |                |            |   |      |  
|Total assets               |  | $              | 25,307,019 |   |      | $ | 25,718,625 |  
|                           |  |                |            |   |      |  

F-52



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


Note 17     Quarterly Financial
Information (Unaudited)


|                                                   |            |                                                       |         |         |         |   |         |         |     |   |         |         |      |   |         |         | 
|-------------------------------------------------- | ---------- | ----------------------------------------------------- | ------- | ------- | ------- | - | ------- | ------- | --- | - | ------- | ------- | ---- | - | ------- | ------- | 
|                                                   |            | 2005                                                  |        
|                                                   |            |                                                       |        
|                                                   |            | First                                                 |         |         | Second  |   |         | Third   |     |   | Fourth  |        
|                                                   |            | Quarter                                               |         |         | Quarter |   |         | Quarter |     |   | Quarter |        
|                                                   |            |                                                       |         |         |         |   |         |         |     |   |         |        
|                                                   |            | (In thousands except for share and per share amounts) |        
|Total revenues                                     |            | $                                                     | 707,168 | (b)     |         | $ | 758,230 | (b)     |     | $ | 745,842 | (b)     |      | $ | 862,176 |        
|Operating income                                   |            |                                                       | 233,716 | (b)     |         |   | 222,473 | (b)     |     |   | 279,777 | (b)     |      |   | 322,375 |        
|Income (loss) from continuing operations           |            |                                                       | 11,536  | (b)     |         |   | 885     | (b)     |     |   | (8,521  | )(b)    |      |   | 59,967  |        
|Income from discontinued operations                |            |                                                       | 1,529   | (b)     |         |   | 1,767   | (b)     |     |   | 1,687   | (b)     |      |   | 6,703   |        
|Net income (loss) available to common shareholders |            |                                                       | 13,065  |         |         |   | 2,652   |         |     |   | (6,834  | )       |      |   | 66,670  |        
|Earnings (loss) from continuing operations:        |            |                                                       |         |         |         |   |         |         |     |   |         |         |      |   |         |        
|                                                   | Basic(a)   |                                                       |         | 0.05    | (b)     |   |         |        | (b) |   |         | (0.04   | )(b) |   |         | 0.25    | 
|                                                   | Diluted(a) |                                                       |         | 0.05    | (b)     |   |         |        | (b) |   |         | (0.04   | )(b) |   |         | 0.25    | 
|Earnings from discontinued operations:             |            |                                                       |         |         |         |   |         |         |     |   |         |         |      |   |         |        
|                                                   | Basic(a)   |                                                       |         | 0.01    | (b)     |   |         | 0.01    | (b) |   |         | 0.01    | (b)  |   |         | 0.03    | 
|                                                   | Diluted(a) |                                                       |         | 0.01    | (b)     |   |         | 0.01    | (b) |   |         | 0.01    | (b)  |   |         | 0.03    | 
|Earnings (loss) per share:                         |            |                                                       |         |         |         |   |         |         |     |   |         |         |      |   |         |        
|                                                   | Basic      |                                                       |         | 0.06    |         |   |         | 0.01    |     |   |         | (0.03   | )    |   |         | 0.28    | 
|                                                   | Diluted    |                                                       |         | 0.06    |         |   |         | 0.01    |     |   |         | (0.03   | )    |   |         | 0.28    | 
|Distributions declared per share                   |            |                                                       | 0.36    |         |         |   | 0.36    |         |     |   | 0.36    |         |      |   | 0.41    |        
|Weighted-average shares outstanding:               |            |                                                       |         |         |         |   |         |         |     |   |         |         |      |   |         |        
|                                                   | Basic      |                                                       |         | 235,812 |         |   |         | 237,854 |     |   |         | 238,218 |      |   |         | 238,784 | 
|                                                   | Diluted    |                                                       |         | 236,588 |         |   |         | 238,922 |     |   |         | 238,218 |      |   |         | 239,736 | 






|    |                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Earnings (loss) per share for the quarters do not add up to
    the annual earnings per share due to the issuance of additional
    common stock during the year.                                                                                                 
|   
|(b) | Amounts reported herein differ from previously reported amounts
    as a result of reclassification of results of operations of sold
    properties to discontinued operations. Total revenues also
    reflect changes to conform to current period presentation.

F-53



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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                            |            |                                                       |         |         |         |   |         |         |  |   |         |         |  |   |         |         |    
|------------------------------------------- | ---------- | ----------------------------------------------------- | ------- | ------- | ------- | - | ------- | ------- |  | - | ------- | ------- |  | - | ------- | ------- | ---
|                                            |            | 2004                                                  |        
|                                            |            |                                                       |        
|                                            |            | First                                                 |         |         | Second  |   |         | Third   |  |   | Fourth  |        
|                                            |            | Quarter                                               |         |         | Quarter |   |         | Quarter |  |   | Quarter |        
|                                            |            |                                                       |         |         |         |   |         |         |  |   |         |        
|                                            |            | (In thousands except for share and per share amounts) |        
|Total revenues                              |            | $                                                     | 359,936 | (b)     |         | $ | 374,526 | (b)     |  | $ | 396,669 | (b)     |  | $ | 668,750 | (b)    
|Operating income                            |            |                                                       | 152,522 |         |         |   | 145,469 |         |  |   | 168,291 |         |  |   | 275,010 | (b)    
|Income from continuing operations           |            |                                                       | 58,336  |         |         |   | 50,247  |         |  |   | 62,973  |         |  |   | 81,312  | (b)    
|Income from discontinued operations         |            |                                                       | 787     |         |         |   | 901     |         |  |   | 1,000   |         |  |   | 12,296  | (b)    
|Net income available to common shareholders |            |                                                       | 59,122  |         |         |   | 51,148  |         |  |   | 63,973  |         |  |   | 93,609  | (b)    
|Earnings from continuing operations:        |            |                                                       |         |         |         |   |         |         |  |   |         |         |  |   |         |        
|                                            | Basic      |                                                       |         | 0.27    |         |   |         | 0.23    |  |   |         | 0.29    |  |   |         | 0.36    | (b)
|                                            | Diluted(a) |                                                       |         | 0.27    |         |   |         | 0.22    |  |   |         | 0.29    |  |   |         | 0.36    | (b)
|Earnings from discontinued operations:      |            |                                                       |         |         |         |   |         |         |  |   |         |         |  |   |         |        
|                                            | Basic      |                                                       |         |        |         |   |         | 0.01    |  |   |         |        |  |   |         | 0.05    | (b)
|                                            | Diluted(a) |                                                       |         |        |         |   |         | 0.01    |  |   |         |        |  |   |         | 0.05    | (b)
|Earnings per share:                         |            |                                                       |         |         |         |   |         |         |  |   |         |         |  |   |         |        
|                                            | Basic(a)   |                                                       |         | 0.27    |         |   |         | 0.24    |  |   |         | 0.29    |  |   |         | 0.41    |    
|                                            | Diluted(a) |                                                       |         | 0.27    |         |   |         | 0.23    |  |   |         | 0.29    |  |   |         | 0.41    |    
|Distributions declared per share            |            |                                                       | 0.30    |         |         |   | 0.30    |         |  |   | 0.66    |         |  |   |        |        
|Weighted-average shares outstanding:        |            |                                                       |         |         |         |   |         |         |  |   |         |         |  |   |         |        
|                                            | Basic      |                                                       |         | 217,553 |         |   |         | 218,075 |  |   |         | 218,605 |  |   |         | 226,312 |    
|                                            | Diluted    |                                                       |         | 218,479 |         |   |         | 218,882 |  |   |         | 219,298 |  |   |         | 227,200 |    






|    |                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Earnings (loss) per share for the quarters do not add up to
    the annual earnings per share due to the issuance of additional
    common stock during the year.                                                                                                 
|   
|(b) | Amounts reported herein differ from previously reported amounts
    as a result of reclassification of results of operations of sold
    properties to discontinued operations. Total revenues also
    reflect changes to conform to current period presentation.

F-54



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##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








10-K. F-1 10-K.


Deloitte & Touche LLP






F-55



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##### Table of Contents








GENERAL GROWTH PROPERTIES, INC.


SCHEDULE III  REAL ESTATE AND ACCUMULATED
DEPRECIATION


DECEMBER 31, 2005


|                         |  |                      |  |                 |             |                           |               |        |                        |              |        |                            |              |        |  |          |               |   |      |        |                 |             |        |   |             |  |  |                 |             |  |              |   |               |          |  |   |             |  |  |  |           |  |  |  |      |  |  |  |    |  
|------------------------ |  | -------------------- |  | --------------- | ----------- | ------------------------- | ------------- | ------ | ---------------------- | ------------ | ------ | -------------------------- | ------------ | ------ |  | -------- | ------------- | - | ---- | ------ | --------------- | ----------- | ------ | - | ----------- |  |  | --------------- | ----------- |  | ------------ | - | ------------- | -------- |  | - | ----------- |  |  |  | --------- |  |  |  | ---- |  |  |  | -- | -
|Col. A                   |  | Col. B               |  |                 | Col. C      |                           |               | Col. D |                        |              | Col. E |                            |              | Col. F |  |          | Col. G        |   |      | Col. H |                 |             | Col. I |  
|                         |  |                      |  |                 |             |                           |               |        |                        |              |        |                            |              |        |  |          |               |   |      |        |                 |             |        |  
|                         |  |                      |  |                 |             | Costs Capitalized         |               |        |                        |              |        |                            |              |        |  |          |              
|                         |  |                      |  |                 |             | Subsequent to Acquisition |               |        |                        |              |        |                            |              |        |  |          |              
|                         |  |                      |  |                 |             |                           |               |        | Gross Amounts at Which |              |        |                            |              |        |  |          |               |  
|                         |  |                      |  | Initial Cost    |             |                           | Net Land,     |        |                        |              |        | Carried at Close of Period |              |        |  |          |               |   |      |        | Life Upon Which |            
|                         |  |                      |  |                 |             |                           | Buildings and |        |                        |              |        |                            |              |        |  |          |               |   |      |        | Latest Income   |            
|                         |  |                      |  |                 |             | Buildings and             |               |        | Equipment              |              |        | Carrying                   |              |        |  |          | Buildings and |   |      |        |                 | Accumulated |        |   | Date of     |  |  | Date            |             |  | Statement is |  
|Name of Center           |  | Location             |  | Encumbrances(a) |             |                           | Land          |        |                        | Equipment(b) |        |                            | Improvements |        |  | Costs(c) |               |   | Land |        |                 | Equipment   |        |   | Total(d)    |  |  | Depreciation(e) |             |  | Construction |   |               | Acquired |  |   | Computed    | 
|                         |  |                      |  |                 |             |                           |               |        |                        |              |        |                            |              |        |  |          |               |   |      |        |                 |             |        |   |             |  |  |                 |             |  |              |   |               |          |  |   |             | 
|Ala Moana Center         |  | Honolulu, HI         |  | $               | 547,606,276 |                           |               | $      | 336,229,260            |              |        | $                          | 473,770,740  |        |  | $        | 91,369,123    |   |      | $      | 8,508,742       |             |        | $ | 336,229,497 |  |  | $               | 573,648,368 |  |              | $ | 909,877,865   |          |  | $ | 108,697,433 |  |  |  |           |  |  |  | 1999 |  |  |  | (e | )
|Alameda Plaza            |  | Pocatello, ID        |  |                 |            |                           |               |        | 740,000                |              |        |                            | 2,060,000    |        |  |          | 3,854         |   |      |        |                |             |        |   | 740,040     |  |  |                 | 2,063,814   |  |              |   | 2,803,854     |          |  |   | 179,381     |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Anaheim Crossing         |  | Anaheim, CA          |  |                 |            |                           |               |        |                       |              |        |                            | 2,058,000    |        |  |          | (72,470       | ) |      |        |                |             |        |   |            |  |  |                 | 1,985,530   |  |              |   | 1,985,530     |          |  |   | 174,188     |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Animas Valley Mall       |  | Farmington, NM       |  |                 | 26,286,347  |                           |               |        | 10,783,000             |              |        |                            | 30,165,000   |        |  |          | 5,499,666     |   |      |        | 28,481          |             |        |   | 6,464,479   |  |  |                 | 40,011,668  |  |              |   | 46,476,146    |          |  |   | 3,750,310   |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Apache Mall              |  | Rochester, MN        |  |                 | 52,547,597  |                           |               |        | 8,110,292              |              |        |                            | 72,992,628   |        |  |          | 21,514,664    |   |      |        | 219,692         |             |        |   | 8,110,292   |  |  |                 | 94,726,984  |  |              |   | 102,837,276   |          |  |   | 17,524,188  |  |  |  |           |  |  |  | 1998 |  |  |  | (e | )
|Arizona Center           |  | Phoenix, AZ          |  |                 | 12,194,147  |                           |               |        |                       |              |        |                            | 132,157,784  |        |  |          | 362,807       |   |      |        |                |             |        |   |            |  |  |                 | 132,520,591 |  |              |   | 132,520,591   |          |  |   | 8,601,491   |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Augusta Mall             |  | Augusta, GA          |  |                 | 49,498,033  |                           |               |        |                       |              |        |                            | 162,272,311  |        |  |          | 657,790       |   |      |        |                |             |        |   |            |  |  |                 | 162,930,101 |  |              |   | 162,930,101   |          |  |   | 7,412,706   |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Austin Bluffs Plaza      |  | Colorado Springs, CO |  |                 | 2,515,548   |                           |               |        | 1,080,000              |              |        |                            | 3,007,000    |        |  |          | 120,158       |   |      |        |                |             |        |   | 1,080,183   |  |  |                 | 3,126,975   |  |              |   | 4,207,158     |          |  |   | 271,802     |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Bailey Hills Village     |  | Eugene, OR           |  |                 |            |                           |               |        | 290,000                |              |        |                            | 806,000      |        |  |          | 35,152        |   |      |        |                |             |        |   | 290,168     |  |  |                 | 840,984     |  |              |   | 1,131,152     |          |  |   | 71,439      |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Baybrook Mall            |  | Friendswood, TX      |  |                 | 155,811,808 |                           |               |        | 13,300,000             |              |        |                            | 117,162,546  |        |  |          | 21,048,691    |   |      |        | 238,870         |             |        |   | 19,375,344  |  |  |                 | 132,374,763 |  |              |   | 151,750,107   |          |  |   | 22,549,289  |  |  |  |           |  |  |  | 1999 |  |  |  | (e | )
|Bayshore Mall            |  | Eureka, CA           |  |                 | 32,673,241  |                           |               |        | 3,004,345              |              |        |                            | 27,398,907   |        |  |          | 31,172,700    |   |      |        | 2,913,529       |             |        |   | 3,005,039   |  |  |                 | 61,484,443  |  |              |   | 64,489,482    |          |  |   | 26,715,141  |  |  |  | 1986-1987 |  |  |  |      |  |  |  | (e | )
|Bayside Marketplace      |  | Miami, FL            |  |                 | 68,638,674  |                           |               |        |                       |              |        |                            | 155,340,061  |        |  |          | 24,811,873    |   |      |        |                |             |        |   |            |  |  |                 | 180,151,934 |  |              |   | 180,151,934   |          |  |   | 10,104,303  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Beachwood Place          |  | Cleveland, OH        |  |                 | 220,024,207 |                           |               |        | 18,500,000             |              |        |                            | 319,683,761  |        |  |          | 634,666       |   |      |        |                |             |        |   | 18,500,000  |  |  |                 | 320,318,427 |  |              |   | 338,818,427   |          |  |   | 11,012,639  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Bellis Fair Mall         |  | Bellingham, WA       |  |                 | 67,077,780  |                           |               |        | 7,616,458              |              |        |                            | 47,040,131   |        |  |          | 15,331,007    |   |      |        | 6,169,776       |             |        |   | 7,485,224   |  |  |                 | 68,672,147  |  |              |   | 76,157,372    |          |  |   | 33,760,873  |  |  |  | 1987-1988 |  |  |  |      |  |  |  | (e | )
|Birchwood Mall           |  | Port Huron, MI       |  |                 | 40,758,905  |                           |               |        | 1,768,935              |              |        |                            | 34,574,635   |        |  |          | 18,540,088    |   |      |        | 1,980,603       |             |        |   | 3,042,616   |  |  |                 | 53,821,645  |  |              |   | 56,864,261    |          |  |   | 23,707,471  |  |  |  | 1989-1990 |  |  |  |      |  |  |  | (e | )
|Boise Plaza              |  | Boise, ID            |  |                 |            |                           |               |        | 465,000                |              |        |                            | 1,293,000    |        |  |          | (309,382      | ) |      |        |                |             |        |   | 374,355     |  |  |                 | 1,074,263   |  |              |   | 1,448,618     |          |  |   | 97,388      |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Boise Towne Plaza        |  | Boise, ID            |  |                 | 11,632,900  |                           |               |        | 3,988,000              |              |        |                            | 11,101,000   |        |  |          | 59,803        |   |      |        |                |             |        |   | 3,987,857   |  |  |                 | 11,160,946  |  |              |   | 15,148,803    |          |  |   | 976,989     |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Boise Towne Square       |  | Boise, ID            |  |                 | 77,739,613  |                           |               |        | 36,452,000             |              |        |                            | 101,853,000  |        |  |          | 21,613,690    |   |      |        |                |             |        |   | 23,448,775  |  |  |                 | 136,469,916 |  |              |   | 159,918,690   |          |  |   | 12,769,867  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Boulevard Mall           |  | Las Vegas, NV        |  |                 | 115,187,007 |                           |               |        | 16,490,343             |              |        |                            | 148,413,086  |        |  |          | 6,807,416     |   |      |        |                |             |        |   | 15,355,557  |  |  |                 | 156,355,289 |  |              |   | 171,710,846   |          |  |   | 30,685,532  |  |  |  |           |  |  |  | 1998 |  |  |  | (e | )
|Burlington Town Center   |  | Burlington, VT       |  |                 | 31,500,000  |                           |               |        | 1,637,035              |              |        |                            | 32,797,783   |        |  |          | 1,451,144     |   |      |        |                |             |        |   | 1,637,035   |  |  |                 | 34,248,927  |  |              |   | 35,885,962    |          |  |   | 6,682,649   |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Cache Valley Mall        |  | Logan, UT            |  |                 |            |                           |               |        | 6,451,000              |              |        |                            | 18,422,000   |        |  |          | 9,524,440     |   |      |        | 196,926         |             |        |   | 3,874,744   |  |  |                 | 30,719,621  |  |              |   | 34,594,365    |          |  |   | 2,451,329   |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Cache Valley Marketplace |  | Logan, UT            |  |                 |            |                           |               |        | 1,500,000              |              |        |                            | 1,583,000    |        |  |          | 3,672,671     |   |      |        | 42,847          |             |        |   | 3,139,246   |  |  |                 | 3,659,273   |  |              |   | 6,798,519     |          |  |   | 205,614     |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Capital Mall             |  | Jefferson City, MO   |  |                 | 21,268,870  |                           |               |        | 4,200,000              |              |        |                            | 14,201,000   |        |  |          | 9,809,831     |   |      |        |                |             |        |   | 3,912,935   |  |  |                 | 24,297,896  |  |              |   | 28,210,831    |          |  |   | 9,341,048   |  |  |  |           |  |  |  | 1993 |  |  |  | (e | )
|Century Mall             |  | Birmingham, AL       |  |                 |            |                           |               |        | 3,164,000              |              |        |                            | 28,513,908   |        |  |          | 5,840,164     |   |      |        |                |             |        |   | 3,164,000   |  |  |                 | 34,354,072  |  |              |   | 37,518,072    |          |  |   | 8,458,893   |  |  |  |           |  |  |  | 1997 |  |  |  | (e | )
|Chapel Hills Mall        |  | Colorado Springs, CO |  |                 | 121,725,238 |                           |               |        | 4,300,000              |              |        |                            | 34,017,000   |        |  |          | 62,766,467    |   |      |        | 36,805          |             |        |   | 4,300,000   |  |  |                 | 96,820,272  |  |              |   | 101,120,272   |          |  |   | 29,803,676  |  |  |  |           |  |  |  | 1993 |  |  |  | (e | )
|Chico Mall               |  | Chico, CA            |  |                 | 60,241,026  |                           |               |        | 8,110,390              |              |        |                            | 54,093,129   |        |  |          | 868,688       |   |      |        |                |             |        |   | 16,957,589  |  |  |                 | 46,114,618  |  |              |   | 63,072,207    |          |  |   | 2,809,552   |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )
|Coastland Center         |  | Naples, FL           |  |                 | 102,671,265 |                           |               |        | 11,450,000             |              |        |                            | 103,050,200  |        |  |          | 10,750,253    |   |      |        |                |             |        |   | 11,450,000  |  |  |                 | 113,800,453 |  |              |   | 125,250,453   |          |  |   | 21,878,524  |  |  |  |           |  |  |  | 1998 |  |  |  | (e | )
|Collin Creek             |  | Plano, TX            |  |                 | 76,323,136  |                           |               |        | 26,250,000             |              |        |                            | 122,990,879  |        |  |          | 1,263,702     |   |      |        |                |             |        |   | 26,250,000  |  |  |                 | 124,254,580 |  |              |   | 150,504,580   |          |  |   | 8,151,227   |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Colony Square Mall       |  | Zanesville, OH       |  |                 | 41,083,300  |                           |               |        | 1,000,000              |              |        |                            | 24,500,000   |        |  |          | 18,006,575    |   |      |        | 25,000          |             |        |   | 1,243,184   |  |  |                 | 42,288,390  |  |              |   | 43,531,575    |          |  |   | 20,780,178  |  |  |  |           |  |  |  | 1986 |  |  |  | (e | )
|Columbia Mall            |  | Columbia, MO         |  |                 | 89,225,600  |                           |               |        | 5,383,208              |              |        |                            | 19,663,231   |        |  |          | 27,115,191    |   |      |        | 1,422,994       |             |        |   | 5,383,208   |  |  |                 | 48,201,416  |  |              |   | 53,584,624    |          |  |   | 21,453,802  |  |  |  | 1984-1985 |  |  |  |      |  |  |  | (e | )
|Coral Ridge Mall         |  | Coralville, IA       |  |                 | 104,631,227 |                           |               |        | 3,363,602              |              |        |                            | 64,217,772   |        |  |          | 13,448,543    |   |      |        | 4,575,166       |             |        |   | 3,412,857   |  |  |                 | 82,192,225  |  |              |   | 85,605,082    |          |  |   | 20,670,399  |  |  |  | 1998-1999 |  |  |  |      |  |  |  | (e | )
|Coronado Center          |  | Albuquerque, NM      |  |                 | 177,790,284 |                           |               |        | 33,072,272             |              |        |                            | 148,799,184  |        |  |          | 1,396,791     |   |      |        |                |             |        |   | 33,072,272  |  |  |                 | 150,195,975 |  |              |   | 183,268,247   |          |  |   | 12,927,321  |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )
|Cottonwood Mall          |  | Salt Lake City, UT   |  |                 |            |                           |               |        | 12,616,000             |              |        |                            | 35,697,000   |        |  |          | 1,957,070     |   |      |        |                |             |        |   | 7,613,427   |  |  |                 | 42,656,642  |  |              |   | 50,270,070    |          |  |   | 3,963,329   |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Cottonwood Square        |  | Salt Lake City, UT   |  |                 |            |                           |               |        | 1,558,000              |              |        |                            | 4,339,000    |        |  |          | 85,129        |   |      |        |                |             |        |   | 1,558,221   |  |  |                 | 4,423,908   |  |              |   | 5,982,129     |          |  |   | 381,914     |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Country Hills Plaza      |  | Ogden, UT            |  |                 | 5,102,778   |                           |               |        | 3,620,000              |              |        |                            | 9,080,000    |        |  |          | 454,460       |   |      |        |                |             |        |   | 3,620,000   |  |  |                 | 9,534,460   |  |              |   | 13,154,460    |          |  |   | 810,357     |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Crossroads               |  | Portage, MI          |  |                 | 42,004,654  |                           |               |        | 6,800,000              |              |        |                            | 61,200,000   |        |  |          | 21,345,129    |   |      |        | 298,449         |             |        |   | 6,800,000   |  |  |                 | 82,843,578  |  |              |   | 89,643,578    |          |  |   | 14,079,593  |  |  |  |           |  |  |  | 1999 |  |  |  | (e | )
|Crossroads Center        |  | St. Cloud, MN        |  |                 | 117,770,375 |                           |               |        | 10,812,523             |              |        |                            | 72,202,847   |        |  |          | 35,175,709    |   |      |        | 1,758,651       |             |        |   | 13,206,441  |  |  |                 | 106,743,289 |  |              |   | 119,949,731   |          |  |   | 12,877,270  |  |  |  |           |  |  |  | 2000 |  |  |  | (e | )
|Cumberland Mall          |  | Atlanta, GA          |  |                 | 93,218,199  |                           |               |        | 15,198,568             |              |        |                            | 136,787,110  |        |  |          | 11,968,905    |   |      |        | 286,334         |             |        |   | 16,749,496  |  |  |                 | 147,491,421 |  |              |   | 164,240,917   |          |  |   | 28,032,141  |  |  |  |           |  |  |  | 1998 |  |  |  | (e | )
|Division Crossing        |  | Portland, OR         |  |                 | 5,797,108   |                           |               |        | 1,773,000              |              |        |                            | 4,935,000    |        |  |          | 249,993       |   |      |        |                |             |        |   | 1,772,915   |  |  |                 | 5,185,078   |  |              |   | 6,957,993     |          |  |   | 446,425     |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Eagle Ridge Mall         |  | Lake Wales, FL       |  |                 | 49,895,997  |                           |               |        | 7,619,865              |              |        |                            | 49,560,538   |        |  |          | 11,652,741    |   |      |        | 5,719,079       |             |        |   | 7,619,865   |  |  |                 | 66,932,358  |  |              |   | 74,552,223    |          |  |   | 20,405,217  |  |  |  | 1995-1996 |  |  |  |      |  |  |  | (e | )
|Eastridge Mall           |  | Casper, WY           |  |                 | 41,320,674  |                           |               |        | 9,902,000              |              |        |                            | 27,596,000   |        |  |          | 5,443,446     |   |      |        |                |             |        |   | 6,092,453   |  |  |                 | 36,848,993  |  |              |   | 42,941,446    |          |  |   | 3,454,066   |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Eden Prairie Mall        |  | Eden Prairie, MN     |  |                 | 84,798,741  |                           |               |        | 465,063                |              |        |                            | 19,024,047   |        |  |          | 115,895,501   |   |      |        | 9,506,545       |             |        |   | 492,585     |  |  |                 | 144,398,570 |  |              |   | 144,891,155   |          |  |   | 22,842,532  |  |  |  |           |  |  |  | 1997 |  |  |  | (e | )
|Fallbrook Mall           |  | West Hills, CA       |  |                 | 74,957,000  |                           |               |        | 6,117,338              |              |        |                            | 10,076,520   |        |  |          | 92,202,805    |   |      |        | 6,445,196       |             |        |   | 6,127,138   |  |  |                 | 108,714,721 |  |              |   | 114,841,859   |          |  |   | 40,509,300  |  |  |  |           |  |  |  | 1984 |  |  |  | (e | )
|Faneuil Hall Marketplace |  | Boston, MA           |  |                 |            |                           |               |        |                       |              |        |                            | 111,407,941  |        |  |          | 11,282,432    |   |      |        |                |             |        |   |            |  |  |                 | 122,690,373 |  |              |   | 122,690,373   |          |  |   | 6,452,728   |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Fashion Place            |  | Murray, UT           |  |                 | 151,676,392 |                           |               |        |                       |              |        |                            | 206,483,936  |        |  |          | 2,711,868     |   |      |        |                |             |        |   |            |  |  |                 | 209,195,804 |  |              |   | 209,195,804   |          |  |   | 7,373,458   |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Fashion Show             |  | Las Vegas, NV        |  |                 | 373,266,363 |                           |               |        | 523,650,100            |              |        |                            | 602,288,273  |        |  |          | 17,433,528    |   |      |        |                |             |        |   | 523,650,100 |  |  |                 | 619,721,801 |  |              |   | 1,143,371,901 |          |  |   | 30,278,938  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Foothills Mall           |  | Fort Collins, CO     |  |                 | 44,188,376  |                           |               |        | 10,052,653             |              |        |                            | 90,495,739   |        |  |          | 6,078,508     |   |      |        |                |             |        |   | 9,263,802   |  |  |                 | 97,363,098  |  |              |   | 106,626,900   |          |  |   | 6,213,078   |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )
|Fort Union               |  | Midvale, UT          |  |                 | 3,026,223   |                           |               |        | 141,000                |              |        |                            | 3,701,000    |        |  |          | 22,828        |   |      |        |                |             |        |   |            |  |  |                 | 3,864,828   |  |              |   | 3,864,828     |          |  |   | 343,041     |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Four Seasons Town Centre |  | Greensboro, NC       |  |                 | 108,399,091 |                           |               |        | 24,976,933             |              |        |                            | 136,636,477  |        |  |          | 9,959,664     |   |      |        |                |             |        |   | 27,231,494  |  |  |                 | 144,341,581 |  |              |   | 171,573,074   |          |  |   | 8,022,166   |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Fox River Mall           |  | Appleton, WI         |  |                 | 195,222,700 |                           |               |        | 2,700,566              |              |        |                            | 18,291,067   |        |  |          | 61,356,993    |   |      |        | 2,350,805       |             |        |   | 4,787,291   |  |  |                 | 79,912,140  |  |              |   | 84,699,431    |          |  |   | 30,792,596  |  |  |  | 1983-1984 |  |  |  |      |  |  |  | (e | )
|Fremont Plaza            |  | Las Vegas, NV        |  |                 |            |                           |               |        |                       |              |        |                            | 3,956,000    |        |  |          | 255,373       |   |      |        |                |             |        |   |            |  |  |                 | 4,211,373   |  |              |   | 4,211,373     |          |  |   | 349,802     |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Gallery at Harborplace   |  | Baltimore, MD        |  |                 | 107,653,394 |                           |               |        |                       |              |        |                            | 174,410,487  |        |  |          | 1,037,616     |   |      |        |                |             |        |   |            |  |  |                 | 175,448,104 |  |              |   | 175,448,104   |          |  |   | 7,173,157   |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )

F-56



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##### Table of Contents





|                                                                      |  |                      |  |                 |             |                           |               |        |                        |              |        |                            |              |        |  |          |               |   |      |        |                 |             |        |  |            |  |  |                 |             |  |              |  |             |          |  |  |            |  |  |  |           |  |  |  |      |  |  |  |    |  
|--------------------------------------------------------------------- |  | -------------------- |  | --------------- | ----------- | ------------------------- | ------------- | ------ | ---------------------- | ------------ | ------ | -------------------------- | ------------ | ------ |  | -------- | ------------- | - | ---- | ------ | --------------- | ----------- | ------ |  | ---------- |  |  | --------------- | ----------- |  | ------------ |  | ----------- | -------- |  |  | ---------- |  |  |  | --------- |  |  |  | ---- |  |  |  | -- | -
|GENERAL GROWTH PROPERTIES, INC.                                       | 
|SCHEDULE III  REAL ESTATE AND ACCUMULATED DEPRECIATION  (Continued) | 
|DECEMBER 31, 2005                                                     | 
|Col. A                                                                |  | Col. B               |  |                 | Col. C      |                           |               | Col. D |                        |              | Col. E |                            |              | Col. F |  |          | Col. G        |   |      | Col. H |                 |             | Col. I | 
|                                                                      |  |                      |  |                 |             |                           |               |        |                        |              |        |                            |              |        |  |          |               |   |      |        |                 |             |        | 
|                                                                      |  |                      |  |                 |             | Costs Capitalized         |               |        |                        |              |        |                            |              |        |  |          |              
|                                                                      |  |                      |  |                 |             | Subsequent to Acquisition |               |        |                        |              |        |                            |              |        |  |          |              
|                                                                      |  |                      |  |                 |             |                           |               |        | Gross Amounts at Which |              |        |                            |              |        |  |          |               |  
|                                                                      |  |                      |  | Initial Cost    |             |                           | Net Land,     |        |                        |              |        | Carried at Close of Period |              |        |  |          |               |   |      |        | Life Upon Which |            
|                                                                      |  |                      |  |                 |             |                           | Buildings and |        |                        |              |        |                            |              |        |  |          |               |   |      |        | Latest Income   |            
|                                                                      |  |                      |  |                 |             | Buildings and             |               |        | Equipment              |              |        | Carrying                   |              |        |  |          | Buildings and |   |      |        |                 | Accumulated |        |  | Date of    |  |  | Date            |             |  | Statement is | 
|Name of Center                                                        |  | Location             |  | Encumbrances(a) |             |                           | Land          |        |                        | Equipment(b) |        |                            | Improvements |        |  | Costs(c) |               |   | Land |        |                 | Equipment   |        |  | Total(d)   |  |  | Depreciation(e) |             |  | Construction |  |             | Acquired |  |  | Computed   | 
|                                                                      |  |                      |  |                 |             |                           |               |        |                        |              |        |                            |              |        |  |          |               |   |      |        |                 |             |        |  |            |  |  |                 |             |  |              |  |             |          |  |  |            | 
|Gateway Crossing Shopping Center                                      |  | Bountiful, UT        |  |                 | 16,226,355  |                           |               |        | 4,104,000              |              |        |                            | 11,422,000   |        |  |          | 393,777       |   |      |        |                |             |        |  | 4,103,858  |  |  |                 | 11,815,918  |  |              |  | 15,919,777  |          |  |  | 1,085,023  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Gateway Mall                                                          |  | Springfield, OR      |  |                 | 41,683,120  |                           |               |        | 8,728,263              |              |        |                            | 34,707,170   |        |  |          | 23,110,830    |   |      |        | 7,698,614       |             |        |  | 8,728,263  |  |  |                 | 65,516,614  |  |              |  | 74,244,877  |          |  |  | 28,959,368 |  |  |  | 1989-1990 |  |  |  |      |  |  |  | (e | )
|Glenbrook Square                                                      |  | Fort Wayne, IN       |  |                 | 186,920,722 |                           |               |        | 30,414,372             |              |        |                            | 195,896,270  |        |  |          | 2,780,898     |   |      |        |                |             |        |  | 30,462,800 |  |  |                 | 198,628,740 |  |              |  | 229,091,540 |          |  |  | 11,928,681 |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )
|Governors Square                                                     |  | Tallahassee, FL      |  |                 | 69,206,771  |                           |               |        |                       |              |        |                            | 121,481,516  |        |  |          | 2,149,594     |   |      |        |                |             |        |  |           |  |  |                 | 123,631,110 |  |              |  | 123,631,110 |          |  |  | 5,602,227  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Grand Canal Shoppes                                                   |  | Las Vegas, NV        |  |                 | 417,515,088 |                           |               |        |                       |              |        |                            | 766,232,339  |        |  |          | 11,852,879    |   |      |        |                |             |        |  |           |  |  |                 | 778,085,218 |  |              |  | 778,085,218 |          |  |  | 33,602,942 |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Grand Teton Mall                                                      |  | Idaho Falls, ID      |  |                 | 28,163,980  |                           |               |        | 13,104,000             |              |        |                            | 36,813,000   |        |  |          | 19,716,520    |   |      |        | 149,495         |             |        |  | 9,322,131  |  |  |                 | 60,460,884  |  |              |  | 69,783,015  |          |  |  | 4,508,002  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Grand Traverse Mall                                                   |  | Traverse City, MI    |  |                 | 89,796,495  |                           |               |        | 3,529,966              |              |        |                            | 20,775,772   |        |  |          | 25,231,342    |   |      |        | 3,643,793       |             |        |  | 3,533,746  |  |  |                 | 49,647,128  |  |              |  | 53,180,873  |          |  |  | 22,576,476 |  |  |  | 1990-1991 |  |  |  |      |  |  |  | (e | )
|Greenwood Mall                                                        |  | Bowling Green, KY    |  |                 | 46,798,195  |                           |               |        | 3,200,000              |              |        |                            | 40,202,000   |        |  |          | 32,115,832    |   |      |        | 109,478         |             |        |  | 3,387,160  |  |  |                 | 72,240,150  |  |              |  | 75,627,310  |          |  |  | 27,436,716 |  |  |  |           |  |  |  | 1993 |  |  |  | (e | )
|Halsey Crossing                                                       |  | Gresham, OR          |  |                 | 2,837,084   |                           |               |        |                       |              |        |                            | 4,363,000    |        |  |          | 109,033       |   |      |        |                |             |        |  |           |  |  |                 | 4,472,033   |  |              |  | 4,472,033   |          |  |  | 391,918    |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Harborplace                                                           |  | Baltimore, MD        |  |                 | 31,221,300  |                           |               |        |                       |              |        |                            | 54,308,359   |        |  |          | 395,065       |   |      |        |                |             |        |  |           |  |  |                 | 54,703,423  |  |              |  | 54,703,423  |          |  |  | 3,569,367  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Hulen Mall                                                            |  | Fort Worth, TX       |  |                 | 119,310,165 |                           |               |        | 8,910,000              |              |        |                            | 153,893,780  |        |  |          | 361,189       |   |      |        |                |             |        |  | 8,910,000  |  |  |                 | 154,254,969 |  |              |  | 163,164,969 |          |  |  | 6,097,816  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Jordan Creek Town Center                                              |  | West Des Moines, IA  |  |                 | 196,938,756 |                           |               |        | 18,141,510             |              |        |                            | 166,142,669  |        |  |          |              |   |      |        | 5,974,300       |             |        |  | 18,141,510 |  |  |                 | 172,116,969 |  |              |  | 190,258,479 |          |  |  | 9,592,537  |  |  |  | 2004      |  |  |  |      |  |  |  | (e | )
|Knollwood Mall                                                        |  | St. Louis Park, MN   |  |                 | 41,911,510  |                           |               |        |                       |              |        |                            | 9,748,047    |        |  |          | 43,380,965    |   |      |        | 3,965,615       |             |        |  | 7,025,606  |  |  |                 | 50,069,021  |  |              |  | 57,094,627  |          |  |  | 20,728,542 |  |  |  |           |  |  |  | 1978 |  |  |  | (e | )
|Lakeside Mall                                                         |  | Sterling Heights, MI |  |                 | 191,846,869 |                           |               |        | 35,860,000             |              |        |                            | 369,638,516  |        |  |          | 1,559,260     |   |      |        |                |             |        |  | 35,860,000 |  |  |                 | 371,197,776 |  |              |  | 407,057,776 |          |  |  | 11,549,149 |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Lakeview Square                                                       |  | Battle Creek, MI     |  |                 | 22,185,129  |                           |               |        | 3,578,619              |              |        |                            | 32,209,980   |        |  |          | 16,843,239    |   |      |        | 375,998         |             |        |  | 3,578,619  |  |  |                 | 49,429,217  |  |              |  | 53,007,836  |          |  |  | 12,597,240 |  |  |  |           |  |  |  | 1996 |  |  |  | (e | )
|Landmark Mall                                                         |  | Alexandria, VA       |  |                 | 25,373,841  |                           |               |        | 28,395,945             |              |        |                            | 67,234,703   |        |  |          | (1,646,925    | ) |      |        | 1,087,044       |             |        |  | 28,395,945 |  |  |                 | 66,674,821  |  |              |  | 95,070,766  |          |  |  | 13,969,535 |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )
|Lansing Mall                                                          |  | Lansing, MI          |  |                 | 67,320,015  |                           |               |        | 6,977,798              |              |        |                            | 62,800,179   |        |  |          | 45,141,358    |   |      |        | 768,954         |             |        |  | 11,496,394 |  |  |                 | 104,191,896 |  |              |  | 115,688,290 |          |  |  | 23,138,756 |  |  |  |           |  |  |  | 1996 |  |  |  | (e | )
|Lincolnshire Commons                                                  |  | Lincolnshire, IL     |  |                 |            |                           |               |        |                       |              |        |                            |             |        |  |          | 19,379,544    |   |      |        |                |             |        |  | 10,784,309 |  |  |                 | 8,595,235   |  |              |  | 19,379,544  |          |  |  | 55,938     |  |  |  | 2005      |  |  |  |      |  |  |  | (e | )
|Lockport Mall                                                         |  | Lockport, NY         |  |                 |            |                           |               |        | 800,000                |              |        |                            | 10,000,000   |        |  |          | 4,272,423     |   |      |        | 53,912          |             |        |  | 800,000    |  |  |                 | 14,326,335  |  |              |  | 15,126,335  |          |  |  | 7,381,548  |  |  |  |           |  |  |  | 1986 |  |  |  | (e | )
|Lynnhaven Mall                                                        |  | Virginia Beach, VA   |  |                 | 249,599,982 |                           |               |        | 39,225,630             |              |        |                            | 222,321,434  |        |  |          | 6,422,890     |   |      |        | 2,747           |             |        |  | 33,697,604 |  |  |                 | 234,275,097 |  |              |  | 267,972,701 |          |  |  | 15,213,383 |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )
|Maine Mall                                                            |  | South Portland, ME   |  |                 | 228,366,913 |                           |               |        | 41,373,998             |              |        |                            | 238,457,053  |        |  |          | 2,272,302     |   |      |        |                |             |        |  | 41,102,158 |  |  |                 | 241,001,195 |  |              |  | 282,103,353 |          |  |  | 13,466,762 |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )
|Mall at Sierra Vista                                                  |  | Sierra Vista, AZ     |  |                 |            |                           |               |        | 4,550,000              |              |        |                            | 18,658,000   |        |  |          | 1,431,119     |   |      |        |                |             |        |  | 3,651,670  |  |  |                 | 20,987,450  |  |              |  | 24,639,119  |          |  |  | 2,023,693  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Mall in Columbia                                                      |  | Columbia, MD         |  |                 | 194,355,258 |                           |               |        | 34,650,000             |              |        |                            | 522,362,592  |        |  |          | 6,600,282     |   |      |        |                |             |        |  | 34,650,000 |  |  |                 | 528,962,875 |  |              |  | 563,612,875 |          |  |  | 19,303,030 |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Mall of Louisiana                                                     |  | Baton Rouge, LA      |  |                 | 185,000,000 |                           |               |        | 24,590,822             |              |        |                            | 246,452,070  |        |  |          | 5,337,444     |   |      |        |                |             |        |  | 24,590,822 |  |  |                 | 251,789,514 |  |              |  | 276,380,336 |          |  |  | 11,016,309 |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Mall of the Bluffs                                                    |  | Council Bluffs, IA   |  |                 | 40,758,905  |                           |               |        | 1,860,116              |              |        |                            | 24,016,343   |        |  |          | 21,410,525    |   |      |        | 2,585,988       |             |        |  | 1,895,220  |  |  |                 | 47,977,752  |  |              |  | 49,872,972  |          |  |  | 22,044,635 |  |  |  | 1985-1986 |  |  |  |      |  |  |  | (e | )
|Mall St. Matthews                                                     |  | Louisville, KY       |  |                 | 153,328,236 |                           |               |        |                       |              |        |                            | 176,582,596  |        |  |          | 3,113,734     |   |      |        |                |             |        |  |           |  |  |                 | 179,696,331 |  |              |  | 179,696,331 |          |  |  | 7,888,235  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Mall St. Vincent                                                      |  | Shreveport, LA       |  |                 | 17,556,345  |                           |               |        | 2,640,000              |              |        |                            | 23,760,000   |        |  |          | 9,176,076     |   |      |        | 1,439           |             |        |  | 2,640,000  |  |  |                 | 32,937,516  |  |              |  | 35,577,516  |          |  |  | 7,536,193  |  |  |  |           |  |  |  | 1998 |  |  |  | (e | )
|Market Place Shopping Center                                          |  | Champaign, IL        |  |                 | 106,737,300 |                           |               |        | 7,000,000              |              |        |                            | 63,972,357   |        |  |          | 49,907,982    |   |      |        | 617,066         |             |        |  | 7,000,000  |  |  |                 | 114,497,404 |  |              |  | 121,497,404 |          |  |  | 25,356,601 |  |  |  |           |  |  |  | 1997 |  |  |  | (e | )
|Mayfair                                                               |  | Wauwatosa, WI        |  |                 | 190,113,202 |                           |               |        | 14,706,639             |              |        |                            | 224,846,565  |        |  |          | 29,483,921    |   |      |        | 1,398,925       |             |        |  | 14,706,639 |  |  |                 | 255,729,411 |  |              |  | 270,436,051 |          |  |  | 41,595,105 |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )
|Meadows Mall                                                          |  | Las Vegas, NV        |  |                 | 108,548,278 |                           |               |        | 24,633,921             |              |        |                            | 104,088,306  |        |  |          | 16,850,436    |   |      |        | 70,247          |             |        |  | 24,894,746 |  |  |                 | 120,748,164 |  |              |  | 145,642,910 |          |  |  | 20,292,851 |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )
|Metro Plaza                                                           |  | Baltimore, MD        |  |                 |            |                           |               |        | 1,050,000              |              |        |                            | 10,340,484   |        |  |          | 195,399       |   |      |        |                |             |        |  | 1,050,000  |  |  |                 | 10,535,883  |  |              |  | 11,585,883  |          |  |  | 1,008,483  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Mondawmin Mall                                                        |  | Baltimore, MD        |  |                 | 17,429,874  |                           |               |        | 10,800,000             |              |        |                            | 47,531,227   |        |  |          | 1,372,628     |   |      |        |                |             |        |  | 10,800,000 |  |  |                 | 48,903,855  |  |              |  | 59,703,855  |          |  |  | 3,332,954  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|North Plains Mall                                                     |  | Clovis, NM           |  |                 |            |                           |               |        | 4,676,000              |              |        |                            | 13,033,000   |        |  |          | 2,771,226     |   |      |        | 2,347           |             |        |  | 2,722,314  |  |  |                 | 17,760,259  |  |              |  | 20,482,573  |          |  |  | 1,629,889  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|North Star Mall                                                       |  | San Antonio, TX      |  |                 | 247,056,464 |                           |               |        | 29,230,000             |              |        |                            | 467,960,754  |        |  |          | 4,854,489     |   |      |        |                |             |        |  | 29,230,000 |  |  |                 | 472,815,243 |  |              |  | 502,045,243 |          |  |  | 17,283,534 |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|North Temple Shops                                                    |  | Salt Lake City, UT   |  |                 |            |                           |               |        | 168,000                |              |        |                            | 468,000      |        |  |          | 5,431         |   |      |        |                |             |        |  | 167,987    |  |  |                 | 473,444     |  |              |  | 641,431     |          |  |  | 41,171     |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|North Town Mall                                                       |  | Spokane, WA          |  |                 | 78,673,605  |                           |               |        | 38,445,000             |              |        |                            | 107,330,000  |        |  |          | 4,943,491     |   |      |        |                |             |        |  | 22,407,494 |  |  |                 | 128,310,997 |  |              |  | 150,718,491 |          |  |  | 11,919,251 |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Northgate Mall                                                        |  | Chattanooga, TN      |  |                 | 20,715,038  |                           |               |        | 2,524,869              |              |        |                            | 43,943,539   |        |  |          | 2,377,497     |   |      |        | 4,540           |             |        |  | 2,524,869  |  |  |                 | 46,325,577  |  |              |  | 48,850,446  |          |  |  | 9,189,266  |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )
|Northridge Fashion Center                                             |  | Northridge, CA       |  |                 | 133,039,062 |                           |               |        | 16,618,095             |              |        |                            | 149,562,583  |        |  |          | 31,020,669    |   |      |        | 3,540,766       |             |        |  | 16,866,397 |  |  |                 | 183,875,717 |  |              |  | 200,742,113 |          |  |  | 36,047,190 |  |  |  |           |  |  |  | 1998 |  |  |  | (e | )
|Oak View Mall                                                         |  | Omaha, NE            |  |                 | 77,427,333  |                           |               |        | 12,056,062             |              |        |                            | 113,041,871  |        |  |          | 3,180,889     |   |      |        |                |             |        |  | 12,056,062 |  |  |                 | 116,222,760 |  |              |  | 128,278,823 |          |  |  | 16,740,985 |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )
|Oakwood Center                                                        |  | Gretna, LA           |  |                 |            |                           |               |        | 2,830,000              |              |        |                            | 137,574,069  |        |  |          | (49,345,210   | ) |      |        |                |             |        |  | 2,830,000  |  |  |                 | 88,228,859  |  |              |  | 91,058,859  |          |  |  | 7,383,399  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Oakwood Mall                                                          |  | Eau Claire, WI       |  |                 | 54,345,208  |                           |               |        | 3,266,669              |              |        |                            | 18,281,160   |        |  |          | 24,958,511    |   |      |        | 1,723,991       |             |        |  | 3,266,669  |  |  |                 | 44,963,662  |  |              |  | 48,230,331  |          |  |  | 22,222,877 |  |  |  | 1985-1986 |  |  |  |      |  |  |  | (e | )
|Oglethorpe Mall                                                       |  | Savannah, GA         |  |                 | 149,134,768 |                           |               |        | 16,036,395             |              |        |                            | 92,977,582   |        |  |          | 5,802,825     |   |      |        | 177,709         |             |        |  | 16,036,395 |  |  |                 | 98,958,116  |  |              |  | 114,994,511 |          |  |  | 17,593,691 |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )
|Orem Plaza Center Street                                              |  | Orem, UT             |  |                 | 2,704,687   |                           |               |        | 1,069,000              |              |        |                            | 2,974,000    |        |  |          | 22,311        |   |      |        |                |             |        |  | 1,068,592  |  |  |                 | 2,996,719   |  |              |  | 4,065,311   |          |  |  | 260,348    |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Orem Plaza State Street                                               |  | Orem, UT             |  |                 | 1,673,880   |                           |               |        | 592,000                |              |        |                            | 1,649,000    |        |  |          | 47,476        |   |      |        |                |             |        |  | 592,396    |  |  |                 | 1,696,080   |  |              |  | 2,288,476   |          |  |  | 145,587    |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )
|Oviedo Marketplace                                                    |  | Orlando, FL          |  |                 | 54,572,965  |                           |               |        | 24,016,700             |              |        |                            | 23,958,404   |        |  |          | 545,012       |   |      |        |                |             |        |  | 24,016,700 |  |  |                 | 24,503,416  |  |              |  | 48,520,116  |          |  |  | 3,206,138  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Owings Mills Mall                                                     |  | Owing Mills, MD      |  |                 | 41,970,049  |                           |               |        | 26,986,250             |              |        |                            | 173,896,354  |        |  |          | 13,372,343    |   |      |        | 109,008         |             |        |  | 26,735,000 |  |  |                 | 187,628,955 |  |              |  | 214,363,955 |          |  |  | 11,209,785 |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Oxmoor Center                                                         |  | Louisville, KY       |  |                 | 65,076,155  |                           |               |        |                       |              |        |                            | 124,487,000  |        |  |          | 7,393,632     |   |      |        |                |             |        |  |           |  |  |                 | 131,880,632 |  |              |  | 131,880,632 |          |  |  | 4,074,322  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Paramus Park                                                          |  | Paramus, NJ          |  |                 | 109,743,317 |                           |               |        | 47,660,000             |              |        |                            | 182,124,280  |        |  |          | 819,125       |   |      |        |                |             |        |  | 47,660,000 |  |  |                 | 182,943,405 |  |              |  | 230,603,405 |          |  |  | 7,455,501  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )
|Park City Center                                                      |  | Lancaster, PA        |  |                 | 158,046,874 |                           |               |        | 8,465,148              |              |        |                            | 177,191,205  |        |  |          | 9,379,326     |   |      |        | 19,681          |             |        |  | 8,465,148  |  |  |                 | 186,590,213 |  |              |  | 195,055,361 |          |  |  | 32,811,166 |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )
|Park Place                                                            |  | Tucson, AZ           |  |                 | 186,316,855 |                           |               |        | 4,996,024              |              |        |                            | 44,993,177   |        |  |          | 97,826,284    |   |      |        | 13,523,774      |             |        |  | 4,715,836  |  |  |                 | 156,623,424 |  |              |  | 161,339,260 |          |  |  | 28,903,088 |  |  |  |           |  |  |  | 1996 |  |  |  | (e | )
|Peachtree Mall                                                        |  | Columbus, GA         |  |                 | 94,358,571  |                           |               |        | 22,051,603             |              |        |                            | 67,678,571   |        |  |          | 3,812,549     |   |      |        |                |             |        |  | 22,051,603 |  |  |                 | 71,491,120  |  |              |  | 93,542,723  |          |  |  | 6,326,978  |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )

F-57



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##### Table of Contents





|                                                                      |  |                   |  |                 |             |                           |               |        |                        |              |        |                            |              |        |  |          |               |   |      |        |                 |             |        |  |             |  |  |                 |             |  |              |  |             |          |  |  |            |  |  |  |           |  |  |  |      |  |  |  |    |      
|--------------------------------------------------------------------- |  | ----------------- |  | --------------- | ----------- | ------------------------- | ------------- | ------ | ---------------------- | ------------ | ------ | -------------------------- | ------------ | ------ |  | -------- | ------------- | - | ---- | ------ | --------------- | ----------- | ------ |  | ----------- |  |  | --------------- | ----------- |  | ------------ |  | ----------- | -------- |  |  | ---------- |  |  |  | --------- |  |  |  | ---- |  |  |  | -- | -----
|GENERAL GROWTH PROPERTIES, INC.                                       | 
|SCHEDULE III  REAL ESTATE AND ACCUMULATED DEPRECIATION  (Continued) | 
|DECEMBER 31, 2005                                                     | 
|Col. A                                                                |  | Col. B            |  |                 | Col. C      |                           |               | Col. D |                        |              | Col. E |                            |              | Col. F |  |          | Col. G        |   |      | Col. H |                 |             | Col. I | 
|                                                                      |  |                   |  |                 |             |                           |               |        |                        |              |        |                            |              |        |  |          |               |   |      |        |                 |             |        | 
|                                                                      |  |                   |  |                 |             | Costs Capitalized         |               |        |                        |              |        |                            |              |        |  |          |              
|                                                                      |  |                   |  |                 |             | Subsequent to Acquisition |               |        |                        |              |        |                            |              |        |  |          |              
|                                                                      |  |                   |  |                 |             |                           |               |        | Gross Amounts at Which |              |        |                            |              |        |  |          |               |  
|                                                                      |  |                   |  | Initial Cost    |             |                           | Net Land,     |        |                        |              |        | Carried at Close of Period |              |        |  |          |               |   |      |        | Life Upon Which |            
|                                                                      |  |                   |  |                 |             |                           | Buildings and |        |                        |              |        |                            |              |        |  |          |               |   |      |        | Latest Income   |            
|                                                                      |  |                   |  |                 |             | Buildings and             |               |        | Equipment              |              |        | Carrying                   |              |        |  |          | Buildings and |   |      |        |                 | Accumulated |        |  | Date of     |  |  | Date            |             |  | Statement is | 
|Name of Center                                                        |  | Location          |  | Encumbrances(a) |             |                           | Land          |        |                        | Equipment(b) |        |                            | Improvements |        |  | Costs(c) |               |   | Land |        |                 | Equipment   |        |  | Total(d)    |  |  | Depreciation(e) |             |  | Construction |  |             | Acquired |  |  | Computed   | 
|                                                                      |  |                   |  |                 |             |                           |               |        |                        |              |        |                            |              |        |  |          |               |   |      |        |                 |             |        |  |             |  |  |                 |             |  |              |  |             |          |  |  |            | 
|Pecanland Mall                                                        |  | Monroe, LA        |  |                 | 63,395,960  |                           |               |        | 7,190,000              |              |        |                            | 64,710,000   |        |  |          | 14,465,965    |   |      |        |                |             |        |  | 10,101,102  |  |  |                 | 76,264,863  |  |              |  | 86,365,965  |          |  |  | 7,888,333  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Piedmont Mall                                                         |  | Danville, VA      |  |                 | 25,704,859  |                           |               |        | 2,000,000              |              |        |                            | 38,000,000   |        |  |          | 10,145,999    |   |      |        | 186,190         |             |        |  | 2,000,000   |  |  |                 | 48,332,189  |  |              |  | 50,332,189  |          |  |  | 13,596,687 |  |  |  |           |  |  |  | 1995 |  |  |  | (e | )    
|Pierre Bossier Mall                                                   |  | Bossier City, LA  |  |                 | 37,874,365  |                           |               |        | 4,363,832              |              |        |                            | 35,352,736   |        |  |          | 9,452,004     |   |      |        | 2,260           |             |        |  | 4,367,095   |  |  |                 | 44,803,737  |  |              |  | 49,170,832  |          |  |  | 9,635,972  |  |  |  |           |  |  |  | 1998 |  |  |  | (e | )    
|The Pines                                                             |  | Pine Bluff, AR    |  |                 |            |                           |               |        | 1,488,928              |              |        |                            | 17,627,258   |        |  |          | 15,495,891    |   |      |        | 1,365,091       |             |        |  | 1,247,414   |  |  |                 | 34,729,754  |  |              |  | 35,977,167  |          |  |  | 16,537,315 |  |  |  | 1985-1986 |  |  |  |      |  |  |  | (e | )    
|Pine Ridge Mall                                                       |  | Pocatello, ID     |  |                 | 27,859,405  |                           |               |        | 8,375,000              |              |        |                            | 23,337,000   |        |  |          | 5,787,850     |   |      |        | 26,316          |             |        |  | 4,905,207   |  |  |                 | 32,620,959  |  |              |  | 37,526,167  |          |  |  | 2,696,306  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Pioneer Place                                                         |  | Portland, OR      |  |                 | 181,354,305 |                           |               |        |                       |              |        |                            | 209,964,809  |        |  |          | 1,187,909     |   |      |        |                |             |        |  |            |  |  |                 | 211,152,718 |  |              |  | 211,152,718 |          |  |  | 9,946,853  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )    
|Plaza 800                                                             |  | Sparks, NV        |  |                 |            |                           |               |        | 1,435,000              |              |        |                            | 3,995,000    |        |  |          | 11,889        |   |      |        |                |             |        |  |            |  |  |                 | 5,441,889   |  |              |  | 5,441,889   |          |  |  | 412,244    |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Plaza 9400                                                            |  | Sandy, UT         |  |                 |            |                           |               |        |                       |              |        |                            | 9,114,000    |        |  |          | 181,084       |   |      |        |                |             |        |  |            |  |  |                 | 9,295,084   |  |              |  | 9,295,084   |          |  |  | 815,533    |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Prince Kuhio Plaza                                                    |  | Hilo, HI          |  |                 | 40,665,957  |                           |               |        |                       |              |        |                            | 42,028,685   |        |  |          | 2,187,811     |   |      |        | 10,737          |             |        |  | 9,082       |  |  |                 | 44,218,151  |  |              |  | 44,227,233  |          |  |  | 8,255,704  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Providence Place                                                      |  | Providence, RI    |  |                 | 437,228,921 |                           |               |        |                       |              |        |                            | 502,808,680  |        |  |          | 1,545,621     |   |      |        |                |             |        |  |            |  |  |                 | 504,354,301 |  |              |  | 504,354,301 |          |  |  | 20,595,215 |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )    
|Provo Towne Centre                                                    |  | Provo, UT         |  |                 | 51,651,718  |                           |               |        | 21,767,302             |              |        |                            | 68,296,000   |        |  |          | (815,581      | ) |      |        | 72,352          |             |        |  | 13,485,901  |  |  |                 | 75,834,172  |  |              |  | 89,320,073  |          |  |  | 7,267,812  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Red Cliffs Mall                                                       |  | St. George, UT    |  |                 | 26,478,762  |                           |               |        | 7,019,000              |              |        |                            | 19,644,000   |        |  |          | 8,253,485     |   |      |        |                |             |        |  | 5,116,379   |  |  |                 | 29,800,106  |  |              |  | 34,916,485  |          |  |  | 2,814,483  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Red Cliffs Plaza                                                      |  | St. George, UT    |  |                 |            |                           |               |        |                       |              |        |                            | 2,366,000    |        |  |          | 533,826       |   |      |        |                |             |        |  |            |  |  |                 | 2,899,826   |  |              |  | 2,899,826   |          |  |  | 239,639    |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Regency Square Mall                                                   |  | Jacksonville, FL  |  |                 | 101,188,176 |                           |               |        | 16,497,552             |              |        |                            | 148,477,968  |        |  |          | 18,197,746    |   |      |        | 118,881         |             |        |  | 17,884,037  |  |  |                 | 165,408,111 |  |              |  | 183,292,148 |          |  |  | 31,070,977 |  |  |  |           |  |  |  | 1998 |  |  |  | (e | )    
|Ridgedale Center                                                      |  | Minneapolis, MN   |  |                 | 188,202,904 |                           |               |        | 10,710,000             |              |        |                            | 272,607,123  |        |  |          | 2,294,390     |   |      |        |                |             |        |  | 10,710,000  |  |  |                 | 274,901,513 |  |              |  | 285,611,513 |          |  |  | 10,290,165 |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )    
|Rio West Mall                                                         |  | Gallup, NM        |  |                 | 22,844,000  |                           |               |        |                       |              |        |                            | 19,500,000   |        |  |          | 6,686,714     |   |      |        |                |             |        |  |            |  |  |                 | 26,186,714  |  |              |  | 26,186,714  |          |  |  | 12,514,815 |  |  |  |           |  |  |  | 1986 |  |  |  | (e | )    
|River Falls Mall                                                      |  | Clarksville, IN   |  |                 |            |                           |               |        | 3,177,688              |              |        |                            | 54,610,421   |        |  |          | 58,074,458    |   |      |        | 5,980,635       |             |        |  | 5,237,478   |  |  |                 | 116,605,725 |  |              |  | 121,843,202 |          |  |  | 33,247,744 |  |  |  | 1989-1990 |  |  |  |      |  |  |  | (e | )    
|River Hills Mall                                                      |  | Mankato, MN       |  |                 | 83,017,800  |                           |               |        | 3,713,529              |              |        |                            | 29,013,757   |        |  |          | 23,084,360    |   |      |        | 2,678,428       |             |        |  | 4,707,482   |  |  |                 | 53,782,593  |  |              |  | 58,490,074  |          |  |  | 23,191,607 |  |  |  | 1990-1991 |  |  |  |      |  |  |  | (e | )    
|River Pointe Plaza                                                    |  | West Jordan, UT   |  |                 | 4,189,427   |                           |               |        | 1,302,000              |              |        |                            | 3,623,000    |        |  |          | 183,043       |   |      |        |                |             |        |  | 1,301,531   |  |  |                 | 3,806,512   |  |              |  | 5,108,043   |          |  |  | 327,917    |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Riverlands Shopping Center                                            |  | LaPlace, LA       |  |                 |            |                           |               |        | 500,000                |              |        |                            | 4,500,000    |        |  |          | 4,266,413     |   |      |        | 44,678          |             |        |  | 1,100,950   |  |  |                 | 8,210,142   |  |              |  | 9,311,092   |          |  |  | 1,214,313  |  |  |  |           |  |  |  | 1998 |  |  |  | (e | )    
|Riverside Plaza                                                       |  | Provo, UT         |  |                 | 5,995,704   |                           |               |        | 2,475,000              |              |        |                            | 6,890,000    |        |  |          | 1,833,570     |   |      |        | 6,877           |             |        |  | 2,475,227   |  |  |                 | 8,730,220   |  |              |  | 11,205,447  |          |  |  | 745,442    |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Rivertown Crossings                                                   |  | Grandville, MI    |  |                 | 123,966,076 |                           |               |        | 10,972,923             |              |        |                            | 97,141,738   |        |  |          | 32,560,125    |   |      |        | 13,280,645      |             |        |  | 7,226,462   |  |  |                 | 146,728,970 |  |              |  | 153,955,431 |          |  |  | 29,643,506 |  |  |  | 1998-1999 |  |  |  |      |  |  |  | (e | )    
|Riverwalk Marketplace                                                 |  | New Orleans, LA   |  |                 | 42,896,180  |                           |               |        |                       |              |        |                            | 94,512,710   |        |  |          | 800,535       |   |      |        |                |             |        |  |            |  |  |                 | 95,313,245  |  |              |  | 95,313,245  |          |  |  | 5,083,485  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )    
|Rogue Valley Mall                                                     |  | Medford, OR       |  |                 | 27,508,542  |                           |               |        | 5,728,225              |              |        |                            | 51,564,598   |        |  |          | 3,718,569     |   |      |        | 10,129          |             |        |  | 21,913,520  |  |  |                 | 39,108,001  |  |              |  | 61,021,521  |          |  |  | 2,908,831  |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )    
|Saint Louis Galleria                                                  |  | St. Louis, MO     |  |                 | 250,535,285 |                           |               |        | 36,773,639             |              |        |                            | 184,645,237  |        |  |          | 11,298,066    |   |      |        | 30,390          |             |        |  | 36,773,639  |  |  |                 | 195,973,693 |  |              |  | 232,747,332 |          |  |  | 13,290,255 |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )    
|Salem Center                                                          |  | Salem, OR         |  |                 | 27,225,164  |                           |               |        | 11,885,000             |              |        |                            | 33,253,000   |        |  |          | 2,013,173     |   |      |        |                |             |        |  | 6,966,434   |  |  |                 | 40,184,739  |  |              |  | 47,151,173  |          |  |  | 3,767,126  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Shops at La Cantera                                                   |  | San Antonio, TX   |  |                 | 179,605,926 |                           |               |        | 11,152,323             |              |        |                            | 205,835,831  |        |  |          | 32,124,000    |   |      |        | 461,225         |             |        |  | 11,152,323  |  |  |                 | 238,421,057 |  |              |  | 249,573,380 |          |  |  | 2,095,429  |  |  |  | 2005      |  |  |  |      |  |  |  | (e | )    
|Sikes Senter                                                          |  | Wichita Falls, TX |  |                 | 64,571,968  |                           |               |        | 12,758,642             |              |        |                            | 50,566,596   |        |  |          | 1,951,864     |   |      |        |                |             |        |  | 12,758,642  |  |  |                 | 52,518,460  |  |              |  | 65,277,102  |          |  |  | 4,789,268  |  |  |  |           |  |  |  | 2003 |  |  |  | (e | )    
|Silver Lake Mall                                                      |  | Coeur dAlene, ID |  |                 |            |                           |               |        | 7,704,000              |              |        |                            | 21,472,000   |        |  |          | 809,046       |   |      |        |                |             |        |  | 4,447,556   |  |  |                 | 25,537,490  |  |              |  | 29,985,046  |          |  |  | 2,330,050  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Sooner Mall                                                           |  | Norman, OK        |  |                 | 59,205,800  |                           |               |        | 2,700,000              |              |        |                            | 24,300,000   |        |  |          | 18,018,192    |   |      |        |                |             |        |  | 2,580,578   |  |  |                 | 42,437,614  |  |              |  | 45,018,192  |          |  |  | 10,612,860 |  |  |  |           |  |  |  | 1996 |  |  |  | (e | )    
|South Street Seaport                                                  |  | New York, NY      |  |                 | 54,850,000  |                           |               |        |                       |              |        |                            | 10,871,602   |        |  |          | 1,286,789     |   |      |        |                |             |        |  |            |  |  |                 | 12,158,391  |  |              |  | 12,158,391  |          |  |  | 3,731,372  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )    
|Southlake Mall                                                        |  | Morrow, GA        |  |                 | 105,996,100 |                           |               |        | 6,700,000              |              |        |                            | 60,406,902   |        |  |          | 13,074,709    |   |      |        | 192,535         |             |        |  | 6,700,000   |  |  |                 | 73,674,146  |  |              |  | 80,374,146  |          |  |  | 17,220,115 |  |  |  |           |  |  |  | 1997 |  |  |  | (e | )    
|Southland Center                                                      |  | Taylor, MI        |  |                 | 114,799,344 |                           |               |        | 7,690,000              |              |        |                            | 99,375,730   |        |  |          | 1,407,166     |   |      |        |                |             |        |  | 7,690,000   |  |  |                 | 100,782,895 |  |              |  | 108,472,895 |          |  |  | 6,080,286  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )    
|Southland Mall                                                        |  | Hayward, CA       |  |                 | 87,227,876  |                           |               |        | 8,904,277              |              |        |                            | 80,142,961   |        |  |          | 7,804,986     |   |      |        |                |             |        |  | 14,120,774  |  |  |                 | 82,731,450  |  |              |  | 96,852,224  |          |  |  | 7,230,262  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Southshore Mall                                                       |  | Aberdeen, WA      |  |                 |            |                           |               |        | 650,000                |              |        |                            | 15,350,000   |        |  |          | 5,606,694     |   |      |        |                |             |        |  | 650,000     |  |  |                 | 20,956,694  |  |              |  | 21,606,694  |          |  |  | 10,993,637 |  |  |  |           |  |  |  | 1986 |  |  |  | (e | )    
|Southwest Plaza                                                       |  | Littleton, CO     |  |                 | 77,674,866  |                           |               |        | 9,000,000              |              |        |                            | 103,983,673  |        |  |          | 28,463,084    |   |      |        | 973,804         |             |        |  | 9,000,000   |  |  |                 | 133,420,561 |  |              |  | 142,420,561 |          |  |  | 26,366,210 |  |  |  |           |  |  |  | 1998 |  |  |  | (e | )    
|Spokane Valley Mall                                                   |  | Spokane, WA       |  |                 | 40,231,327  |                           |               |        | 19,297,000             |              |        |                            | 54,970,000   |        |  |          | 3,855,101     |   |      |        |                |             |        |  | 11,455,446  |  |  |                 | 66,666,655  |  |              |  | 78,122,101  |          |  |  | 6,202,512  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Spokane Valley Plaza                                                  |  | Spokane, WA       |  |                 |            |                           |               |        | 3,558,000              |              |        |                            | 10,150,000   |        |  |          | 2,653         |   |      |        |                |             |        |  | 3,557,601   |  |  |                 | 10,153,052  |  |              |  | 13,710,653  |          |  |  | 880,709    |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Spring Hill Mall                                                      |  | West Dundee, IL   |  |                 | 83,061,497  |                           |               |        | 12,400,000             |              |        |                            | 111,643,525  |        |  |          | 17,854,728    |   |      |        | 107,027         |             |        |  | 12,400,000  |  |  |                 | 129,605,280 |  |              |  | 142,005,280 |          |  |  | 24,475,172 |  |  |  |           |  |  |  | 1998 |  |  |  | (e | )    
|Staten Island Mall                                                    |  | Staten Island, NY |  |                 | 173,482,164 |                           |               |        | 222,710,000            |              |        |                            | 318,042,341  |        |  |          | 22,763,949    |   |      |        |                |             |        |  | 222,710,000 |  |  |                 | 340,806,289 |  |              |  | 563,516,289 |          |  |  | 14,655,196 |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )    
|Stonestown                                                            |  | San Francisco, CA |  |                 | 220,000,000 |                           |               |        | 67,000,000             |              |        |                            | 246,272,110  |        |  |          | 6,968,044     |   |      |        |                |             |        |  | 67,000,000  |  |  |                 | 253,240,154 |  |              |  | 320,240,154 |          |  |  | 9,465,697  |  |  |  |           |  |  |  | 1998 |  |  |  | (e | )    
|Streets at Southpoint                                                 |  | Durham, NC        |  |                 | 252,819,709 |                           |               |        | 16,070,268             |              |        |                            | 406,265,828  |        |  |          | 22,430,362    |   |      |        |                |             |        |  | 15,940,000  |  |  |                 | 428,826,458 |  |              |  | 444,766,458 |          |  |  | 13,724,336 |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )    
|Three Rivers Mall                                                     |  | Kelso, WA         |  |                 | 22,681,993  |                           |               |        | 7,068,000              |              |        |                            | 19,917,000   |        |  |          | 1,982,549     |   |      |        |                |             |        |  | 4,312,238   |  |  |                 | 24,655,311  |  |              |  | 28,967,549  |          |  |  | 2,271,817  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Town East Mall                                                        |  | Mesquite, TX      |  |                 | 113,292,401 |                           |               |        | 9,528,518              |              |        |                            | 141,627,727  |        |  |          | 20,457,971    |   |      |        | 147,675         |             |        |  | 7,710,985   |  |  |                 | 164,050,907 |  |              |  | 171,761,891 |          |  |  | 18,752,406 |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )    
|Tucson Mall                                                           |  | Tucson, AZ        |  |                 | 125,329,659 |                           |               |        |                       |              |        |                            | 181,424,484  |        |  |          | 21,422,131    |   |      |        | 405,608         |             |        |  |            |  |  |                 | 203,252,222 |  |              |  | 203,252,222 |          |  |  | 21,757,512 |  |  |  |           |  |  |  | 2001 |  |  |  | (e | )    
|Twin Falls Crossing                                                   |  | Twin Falls, ID    |  |                 |            |                           |               |        | 275,000                |              |        |                            | 767,000      |        |  |          | 373           |   |      |        |                |             |        |  | 275,499     |  |  |                 | 766,874     |  |              |  | 1,042,373   |          |  |  | 66,708     |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|University Crossing                                                   |  | Orem, UT          |  |                 | 12,114,394  |                           |               |        | 3,420,000              |              |        |                            | 9,526,000    |        |  |          | 557,580       |   |      |        |                |             |        |  | 3,419,812   |  |  |                 | 10,083,768  |  |              |  | 13,503,580  |          |  |  | 874,160    |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Valley Hills Mall                                                     |  | Hickory, NC       |  |                 | 60,372,674  |                           |               |        | 3,443,594              |              |        |                            | 31,025,471   |        |  |          | 41,591,496    |   |      |        | 1,699,275       |             |        |  | 5,656,275   |  |  |                 | 72,103,562  |  |              |  | 77,759,836  |          |  |  | 15,519,428 |  |  |  |           |  |  |  | 1997 |  |  |  | (e | )    
|Valley Plaza Mall                                                     |  | Bakersfield, CA   |  |                 | 102,402,961 |                           |               |        | 12,685,151             |              |        |                            | 114,166,356  |        |  |          | 16,691,647    |   |      |        | 234,101         |             |        |  | 12,685,151  |  |  |                 | 131,092,105 |  |              |  | 143,777,256 |          |  |  | 23,729,222 |  |  |  |           |  |  |  | 1998 |  |  |  | (e | )    
|Village of Cross Keys                                                 |  | Baltimore, MD     |  |                 | 860,998     |                           |               |        | 18,070,000             |              |        |                            | 57,284,799   |        |  |          | 1,594,290     |   |      |        |                |             |        |  | 18,070,000  |  |  |                 | 58,879,089  |  |              |  | 76,949,089  |          |  |  | 3,204,181  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | )    
|Visalia Mall                                                          |  | Visalia, CA       |  |                 | 46,090,053  |                           |               |        | 16,466,000             |              |        |                            | 47,699,000   |        |  |          | 9,858,504     |   |      |        |                |             |        |  | 11,052,128  |  |  |                 | 62,971,376  |  |              |  | 74,023,504  |          |  |  | 5,798,715  |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|Ward Centers                                                          |  | Honolulu, HI      |  |                 | 153,991,076 |                           |               |        | 164,006,531            |              |        |                            | 89,320,759   |        |  |          | 21,313,186    |   |      |        | 155,398         |             |        |  | 165,590,722 |  |  |                 | 109,205,151 |  |              |  | 274,795,874 |          |  |  | 13,355,656 |  |  |  |           |  |  |  | 2002 |  |  |  | (e | )    
|West Valley Mall                                                      |  | Tracy, CA         |  |                 | 62,821,841  |                           |               |        | 9,295,045              |              |        |                            | 47,789,310   |        |  |          | 27,677,980    |   |      |        | 8,072,671       |             |        |  | 10,885,507  |  |  |                 | 81,949,498  |  |              |  | 92,835,006  |          |  |  | 24,037,456 |  |  |  | 1995      |  |  |  |      |  |  |  | (e | )    
|Westlake Center                                                       |  | Seattle, WA       |  |                 | 76,492,021  |                           |               |        |                       |              |        |                            | 117,002,720  |        |  |          | 314,580       |   |      |        |                |             |        |  |            |  |  |                 | 117,317,301 |  |              |  | 117,317,301 |          |  |  | 7,740,948  |  |  |  |           |  |  |  | 2004 |  |  |  | (e | ) ***

F-58



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##### Table of Contents





|                                                                      |  |                    |               |                 |                |                           |               |                 |                        |              |             |                            |                |        |            |          |               |                  |           |        |                 |             |             |                 |               |  |             |                 |                |  |              |                 |                |          |            |     |               |  |  |  |  |  |  |  |      |  |  |  |     |  
|--------------------------------------------------------------------- |  | ------------------ | ------------- | --------------- | -------------- | ------------------------- | ------------- | --------------- | ---------------------- | ------------ | ----------- | -------------------------- | -------------- | ------ | ---------- | -------- | ------------- | ---------------- | --------- | ------ | --------------- | ----------- | ----------- | --------------- | ------------- |  | ----------- | --------------- | -------------- |  | ------------ | --------------- | -------------- | -------- | ---------- | --- | ------------- |  |  |  |  |  |  |  | ---- |  |  |  | --- | -
|GENERAL GROWTH PROPERTIES, INC.                                       | 
|SCHEDULE III  REAL ESTATE AND ACCUMULATED DEPRECIATION  (Continued) | 
|DECEMBER 31, 2005                                                     | 
|Col. A                                                                |  | Col. B             |               |                 | Col. C         |                           |               | Col. D          |                        |              | Col. E      |                            |                | Col. F |            |          | Col. G        |                  |           | Col. H |                 |             | Col. I      |                
|                                                                      |  |                    |               |                 |                |                           |               |                 |                        |              |             |                            |                |        |            |          |               |                  |           |        |                 |             |             |                
|                                                                      |  |                    |               |                 |                | Costs Capitalized         |               |                 |                        |              |             |                            |                |        |            |          |              
|                                                                      |  |                    |               |                 |                | Subsequent to Acquisition |               |                 |                        |              |             |                            |                |        |            |          |              
|                                                                      |  |                    |               |                 |                |                           |               |                 | Gross Amounts at Which |              |             |                            |                |        |            |          |               |                 
|                                                                      |  |                    |               | Initial Cost    |                |                           | Net Land,     |                 |                        |              |             | Carried at Close of Period |                |        |            |          |               |                  |           |        | Life Upon Which |            
|                                                                      |  |                    |               |                 |                |                           | Buildings and |                 |                        |              |             |                            |                |        |            |          |               |                  |           |        | Latest Income   |            
|                                                                      |  |                    |               |                 |                | Buildings and             |               |                 | Equipment              |              |             | Carrying                   |                |        |            |          | Buildings and |                  |           |        |                 | Accumulated |             |                 | Date of       |  |             | Date            |                |  | Statement is |                
|Name of Center                                                        |  | Location           |               | Encumbrances(a) |                |                           | Land          |                 |                        | Equipment(b) |             |                            | Improvements   |        |            | Costs(c) |               |                  | Land      |        |                 | Equipment   |             |                 | Total(d)      |  |             | Depreciation(e) |                |  | Construction |                 |                | Acquired |            |     | Computed      | 
|                                                                      |  |                    |               |                 |                |                           |               |                 |                        |              |             |                            |                |        |            |          |               |                  |           |        |                 |             |             |                 |               |  |             |                 |                |  |              |                 |                |          |            |     |               | 
|Westwood Mall                                                         |  | Jackson, MI        |               |                 | 37,110,400     |                           |               |                 | 2,658,208              |              |             |                            | 23,923,869     |        |            |          | 6,704,728     |                  |           |        | 546             |             |             |                 | 3,571,208     |  |             |                 | 29,716,144     |  |              |                 | 33,287,352     |          |            |     | 7,759,777     |  |  |  |  |  |  |  | 1996 |  |  |  | (e  | )
|White Marsh Mall                                                      |  | Baltimore, MD      |               |                 | 76,255,823     |                           |               |                 | 24,760,000             |              |             |                            | 239,687,702    |        |            |          | 4,806,094     |                  |           |        |                |             |             |                 | 24,760,000    |  |             |                 | 244,493,796    |  |              |                 | 269,253,796    |          |            |     | 10,203,429    |  |  |  |  |  |  |  | 2004 |  |  |  | (e  | )
|White Mountain Mall                                                   |  | Rock Springs, WY   |               |                 |               |                           |               |                 | 2,335,000              |              |             |                            | 6,520,000      |        |            |          | 5,900,360     |                  |           |        | 4,495           |             |             |                 | 1,362,805     |  |             |                 | 13,397,050     |  |              |                 | 14,759,855     |          |            |     | 1,377,249     |  |  |  |  |  |  |  | 2002 |  |  |  | (e  | )
|Willowbrook                                                           |  | Wayne, NJ          |               |                 | 181,285,437    |                           |               |                 | 56,819                 |              |             |                            | 444,762,007    |        |            |          | 34,274,307    |                  |           |        |                |             |             |                 | 28,809,987    |  |             |                 | 450,283,146    |  |              |                 | 479,093,133    |          |            |     | 16,792,134    |  |  |  |  |  |  |  | 2004 |  |  |  | (e  | )
|Woodbridge Center                                                     |  | Woodbridge, NJ     |               |                 | 221,336,704    |                           |               |                 | 27,032                 |              |             |                            | 420,703,497    |        |            |          | 52,309,222    |                  |           |        |                |             |             |                 | 50,737,355    |  |             |                 | 422,302,396    |  |              |                 | 473,039,751    |          |            |     | 16,852,804    |  |  |  |  |  |  |  | 2004 |  |  |  | (e  | )
|Woodlands Village                                                     |  | Flagstaff, AZ      |               |                 | 7,660,126      |                           |               |                 | 2,689,000              |              |             |                            | 7,484,000      |        |            |          | 24,123        |                  |           |        |                |             |             |                 | 2,688,652     |  |             |                 | 7,508,472      |  |              |                 | 10,197,123     |          |            |     | 651,726       |  |  |  |  |  |  |  | 2002 |  |  |  | (e  | )
|Yellowstone Square                                                    |  | Idaho Falls, ID    |               |                 |               |                           |               |                 | 1,057,000              |              |             |                            | 2,943,000      |        |            |          | 52,705        |                  |           |        |                |             |             |                 | 1,057,200     |  |             |                 | 2,995,505      |  |              |                 | 4,052,705      |          |            |     | 259,188       |  |  |  |  |  |  |  | 2002 |  |  |  | (e  | )
|Other, including corporate and developments in progress               |  |                    | 7,337,204,380 |                 |                |                           | 265,082,941   |                 |                        |              | 490,726,930 |                            |                |        | 96,045,413 |          |               |                  | 4,331,915 |        |                 |             | 232,032,167 |                 |               |  | 624,155,031 |                 |                |  | 856,187,199  |                 |                |          | 86,327,802 |     |               |  |  |  |  |  |  |  |      |  |  | 
|                                                                      |  |                    |               |                 |                |                           |               |                 |                        |              |             |                            |                |        |            |          |               |                  |           |        |                 |             |             |                 |               |  |             |                 |                |  |              |                 |                |          |            |    
|Total Retail and Other                                                |  |                    |               |                 | 20,287,467,642 |                           |               |                 | 2,949,809,129          |              |             |                            | 16,664,084,984 |        |            |          | 2,177,640,418 |                  |           |        | 140,929,804     |             |             |                 | 2,974,863,931 |  |             |                 | 18,957,600,404 |  |              |                 | 21,932,464,335 |          |            |     | 2,104,955,640 |  |  |  |  |  |  |  |      |  |  |  |     |  
|                                                                      |  |                    |               |                 |                |                           |               |                 |                        |              |             |                            |                |        |            |          |               |                  |           |        |                 |             |             |                 |               |  |             |                 |                |  |              |                 |                |          |            |     |               | 
|Master Planned Communities (h)                                        |  | Summerlin, NV      |               |                 | 60,533,143     |                           |               |                 | 990,179,000            |              |             |                            |               |        |            |          | (33,568,499   | )                |           |        |                |             |             |                 | 956,601,854   |  |             |                 | 8,647          |  |              |                 | 956,610,501    |          |            |     |              |  |  |  |  |  |  |  | 2004 |  |  |  | N/A |  
|Summerlin                                                             |  | Houston, TX        |               |                 | 48,519,429     |                           |               |                 | 257,222,000            |              |             |                            |               |        |            |          | 46,842,220    |                  |           |        |                |             |             |                 | 304,064,220   |  |             |                 |               |  |              |                 | 304,064,220    |          |            |     |              |  |  |  |  |  |  |  | 2004 |  |  |  | N/A |  
|The Bridgelands                                                       |  | Howard County,     |               |                 |               |                           |               |                 | 315,944,000            |              |             |                            |               |        |            |          | (57,657,810   | )                |           |        |                |             |             |                 | 258,286,190   |  |             |                 |               |  |              |                 | 258,286,190    |          |            |     |              |  |  |  |  |  |  |  | 2004 |  |  |  | N/A |  
|Columbia and Emerson                                                  |  | MD Prince Georges |               |                 |               |                           |               |                 | 136,434,000            |              |             |                            |               |        |            |          | (21,474,430   | )                |           |        |                |             |             |                 | 114,959,570   |  |             |                 |               |  |              |                 | 114,959,570    |          |            |     |              |  |  |  |  |  |  |  | 2004 |  |  |  | N/A |  
|Fairwood                                                              |  | County, MD         |               |                 | 22,354,640     |                           |               |                 |                       |              |             |                            |               |        |            |          | 17,151,242    |                  |           |        |                |             |             |                 | 17,151,242    |  |             |                 |               |  |              |                 | 17,151,242     |          |            |     |              |  |  |  |  |  |  |  | 2004 |  |  |  | N/A |  
|Other                                                                 |  |                    |               |                 |                |                           |               |                 |                        |              |             |                            |                |        |            |          |               |                  |           |        |                 |             |             |                 |               |  |             |                 |                |  |              |                 |                |          |            |     |               |  |  |  |  |  |  |  |      |  |  |  |     |  
|                                                                      |  |                    |               |                 |                |                           |               |                 |                        |              |             |                            |                |        |            |          |               |                  |           |        |                 |             |             |                 |               |  |             |                 |                |  |              |                 |                |          |            |     |               | 
|Total Master Planned Communities                                      |  |                    |               | 131,407,211 $   | 20,418,874,853 |                           |               | 1,699,779,000 $ | 4,649,588,129          |              |             |  $                        | 16,664,084,984 |        |            |          | (48,707,277   | ) $2,128,933,141 |           |  $    | 140,929,804     |             |             | 1,651,063,076 $ | 4,625,927,007 |  |             | 8,647 $         | 18,957,609,051 |  |              | 1,651,071,723 $ | 23,583,536,058 |          |            |  $ | 2,104,955,640 |  |  |  |  |  |  |  |      |  |  |  |     |  
|Total                                                                 |  |                    |               |                 |                |                           |               |                 |                        |              |             |                            |                |        |            |          |               |                  |           |        |                 |             |             |                 |               |  |             |                 |                |  |              |                 |                |          |            |     |               |  |  |  |  |  |  |  |      |  |  |  |     |  
|                                                                      |  |                    |               |                 |                |                           |               |                 |                        |              |             |                            |                |        |            |          |               |                  |           |        |                 |             |             |                 |               |  |             |                 |                |  |              |                 |                |          |            |     |               | 

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##### Table of Contents



GENERAL GROWTH PROPERTIES, INC.


NOTES TO SCHEDULE III


(Dollars in thousands)




|    |  |                                                                                                                      
|--- |  | ---------------------------------------------------------------------------------------------------------------------
|(a) |  | See description of mortgage notes and other debt payable in
    Note 6 of Notes to Consolidated Financial Statements.
|   
|(b) |  | Initial cost for constructed malls is cost at end of first
    complete calendar year subsequent to opening.         
|   
|(c) |  | Carrying costs consist of capitalized construction-period
    interest and taxes.                                    
|   
|(d) |  | The aggregate cost of land, buildings and equipment for federal
    income tax purposes is approximately $15,704,085.

Reconciliation of Real Estate


|                                                                 |  |      |            |   |      |   |            |      |  |   |           |  
|---------------------------------------------------------------- |  | ---- | ---------- | - | ---- | - | ---------- | ---- |  | - | --------- | -
|                                                                 |  | 2005 |            |   | 2004 |   |            | 2003 | 
|                                                                 |  |      |            |   |      |   |            |      | 
|Balance at beginning of year                                     |  | $    | 23,308,792 |   |      | $ | 9,677,348  |      |  | $ | 6,957,996 |  
|Acquisitions                                                     |  |      |           |   |      |   | 11,235,608 |      |  |   | 2,474,222 |  
|Change in Investment land and land held for development and sale |  |      | 5,363      |   |      |   | 1,645,700  |      |  |   |          |  
|Additions                                                        |  |      | 496,362    |   |      |   | 804,556    |      |  |   | 257,372   |  
|Hurricane property damage provisions(f)                          |  |      | (53,022    | ) |      |   |           |      |  |   |          |  
|Dispositions                                                     |  |      | (173,959   | ) |      |   | (54,420    | )    |  |   | (12,242   | )
|                                                                 |  |      |            |   |      |   |            |      | 
|Balance at end of year                                           |  | $    | 23,583,536 |   |      | $ | 23,308,792 |      |  | $ | 9,677,348 |  
|                                                                 |  |      |            |   |      |   |            |      | 

Reconciliation of Accumulated Depreciation


|                             |  |      |           |   |      |   |           |      |  |   |           | 
|---------------------------- |  | ---- | --------- | - | ---- | - | --------- | ---- |  | - | --------- | 
|                             |  | 2005 |           |   | 2004 |   |           | 2003 | 
|                             |  |      |           |   |      |   |           |      | 
|Balance at beginning of year |  | $    | 1,453,488 |   |      | $ | 1,101,235 |      |  | $ | 798,431   | 
|Depreciation expense         |  |      | 652,109   |   |      |   | 354,560   |      |  |   | 205,780   | 
|Other(g)                     |  |      | (641      | ) |      |   | (2,307    | )    |  |   | 97,024    | 
|                             |  |      |           |   |      |   |           |      | 
|Balance at end of year       |  | $    | 2,104,956 |   |      | $ | 1,453,488 |      |  | $ | 1,101,235 | 
|                             |  |      |           |   |      |   |           |      | 



|    |  |                                                                       
|--- |  | ----------------------------------------------------------------------
|(e) |  | Depreciation is computed based upon the following estimated
    lives:

|                                            |  |       |       | 
|------------------------------------------- |  | ----- | ----- | 
|                                            |  | Years
|                                            |  |      
|Buildings, improvements and carrying costs  |  |       | 40-45 | 
|Equipment, tenant improvements and fixtures |  |       | 5-10  | 



|    |  |                                                                                                                                             
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------
|(f) |  | Carrying costs reduced for hurricane property damage
    (Note 14)                                                                          
|   
|(g) |  | Primarily dispositions in 2005 and 2004 and purchase of interest
    in GGP Ivanhoe III in 2003.                                            
|   
|(h) |  | Decrease in Costs Capitalized Subsequent to Acquisition is
    primarily attributable to land sales in these Master Planned
    Communities.

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EXHIBIT INDEX


| |   |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 3 | .1  |  | Restated Certificate of Incorporation of General Growth
    Properties, Inc. filed with the Delaware Secretary of State on
    February 10, 2006 (filed herewith).                                                                                                                                                                                                                                             
| | 3 | .2  |  | Bylaws of General Growth Properties, Inc., as amended (filed
    herewith).                                                                                                                                                                                                                                                                                                                                    
| | 4 | .1  |  | Form of Common Stock Certificate (filed herewith).                                                                                                                                                                                                                                                                                                                                                             
| | 4 | .2  |  | Rights Agreement dated July 27, 1993, between General
    Growth Properties, Inc. and certain other parties named therein
    (filed herewith).                                                                                                                                                                                                                                                                
| | 4 | .3  |  | Amendment to Rights Agreement dated as of February 1, 2000,
    between General Growth Properties, Inc. and certain other
    parties named therein (previously filed as Exhibit 10.11 to
    the Annual Report on Form 10-K for the year ended
    December 31, 2003, incorporated herein by reference).                                                                                                      
| | 4 | .4  |  | Redemption Rights Agreement dated July 13, 1995, by and
    among GGP Limited Partnership (the Operating
    Partnership), General Growth Properties, Inc. and the
    persons listed on the signature pages thereof (filed herewith).                                                                                                                                                                       
| | 4 | .5  |  | Redemption Rights Agreement dated December 6, 1996, among
    the Operating Partnership, Forbes/ Cohen Properties, Lakeview
    Square Associates, and Jackson Properties (filed herewith).                                                                                                                                                                                                                    
| | 4 | .6  |  | Redemption Rights Agreement dated June 19, 1997, among the
    Operating Partnership, General Growth Properties, Inc., and
    CA Southlake Investors, Ltd. (filed herewith).                                                                                                                                                                                                                                  
| | 4 | .7  |  | Redemption Rights Agreement dated October 23, 1997, among
    General Growth Properties, Inc., the Operating Partnership and
    Peter Leibowits (filed herewith).                                                                                                                                                                                                                                             
| | 4 | .8  |  | Redemption Rights Agreement dated April 2, 1998, among the
    Operating Partnership, General Growth Properties, Inc. and
    Southwest Properties Venture (filed herewith).                                                                                                                                                                                                                                   
| | 4 | .9  |  | Redemption Rights Agreement dated July 21, 1998, among the
    Operating Partnership, General Growth Properties, Inc., Nashland
    Associates, and HRE Altamonte, Inc. (filed herewith).                                                                                                                                                                                                                      
| | 4 | .10 |  | Redemption Rights Agreement dated October 21, 1998, among
    the Operating Partnership, General Growth Properties, Inc. and
    the persons on the signature pages thereof (filed herewith).                                                                                                                                                                                                                  
| | 4 | .11 |  | Redemption Rights Agreement (PDC Common Units) dated
    July 10, 2002, by and among the Operating Partnership,
    General Growth Properties, Inc. and the persons listed on the
    signature pages thereof (previously filed as Exhibit 10.6
    to the Current Report on Form 8-K dated July 10, 2002
    which was filed with the SEC on July 24, 2002, incorporated
    herein by reference).            
| | 4 | .12 |  | Redemption Rights Agreement (PDC Series B Preferred Units)
    dated July 10, 2002, by and among the Operating
    Partnership, General Growth Properties, Inc. and the persons
    listed on the signature pages thereof (previously filed as
    Exhibit 10.7 to the Current Report on Form 8-K dated
    July 10, 2002 which was filed with the SEC on July 24,
    2002, incorporated herein by reference).
| | 4 | .13 |  | Redemption Rights Agreement (Series C Preferred Units)
    dated November 27, 2002, by and among the Operating
    Partnership, General Growth Properties, Inc. and JSG, LLC
    (previously filed as Exhibit 10(LLL) to the Annual Report
    on Form 10-K for the year ended December 31, 2002
    which was filed with the SEC on March 14, 2003,
    incorporated herein by reference).                    
| | 4 | .14 |  | Redemption Rights Agreement (PDC Common Units) dated
    November 27, 2002, by and among the Operating Partnership,
    General Growth Properties, Inc. and JSG, LLC (previously filed
    as Exhibit 10(MMM) to the Annual Report on Form 10-K
    for the year ended December 31, 2002 which was filed with
    the SEC on March 14, 2003, incorporated herein by
    reference).                            
| | 4 | .15 |  | Redemption Rights Agreement dated December 11, 2003, by and
    among the Operating Partnership, General Growth Properties, Inc.
    and Everitt Enterprises, Inc. (previously filed as
    Exhibit 10.44 to the Annual Report on Form 10-K for
    the year ended December 31, 2003 which was filed with the
    SEC on March 12, 2004, incorporated herein by reference).                                    
| | 4 | .16 |  | Form of Registration Rights Agreement dated April 15, 1993,
    between General Growth Properties, Inc., Martin Bucksbaum,
    Matthew Bucksbaum and the other parties named therein (filed
    herewith).                                                                                                                                                                                                     
| | 4 | .17 |  | Amendment to Registration Rights Agreement dated
    February 1, 2000, among General Growth Properties, Inc. and
    certain other parties named therein (previously filed as
    Exhibit 10.16 to the Annual Report on Form 10-K for
    the year ended December 31, 2003 which was filed with the
    SEC on March 12, 2004, incorporated herein by reference).                                              

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| |    |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | -- | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 4  | .18 |  | Registration Rights Agreement dated April 17, 2002, between
    General Growth Properties, Inc. and GSEP 2002 Realty Corp.
    (previously filed as Exhibit 10.3 to the Quarterly Report
    on Form 10-Q for the quarterly period ended March 31,
    2002 which was filed with the SEC on May 13, 2002,
    incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 4  | .19 |  | Rights Agreement dated November 18, 1998, between General
    Growth Properties, Inc. and Norwest Bank Minnesota, N.A., as
    Rights Agent (including the Form of Certificate of Designation
    of Series A Junior Participating Preferred Stock attached
    thereto as Exhibit A, the Form of Right Certificate
    attached thereto as Exhibit B and the Summary of Rights to
    Purchase Preferred Shares attached thereto as Exhibit C)
    (filed herewith).                                                                                                                                                                                                                                                                                                     
| | 4  | .20 |  | First Amendment to Rights Agreement dated as of
    November 10, 1999, between General Growth Properties, Inc.
    and Norwest Bank Minnesota, N.A. (filed herewith).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | 4  | .21 |  | Second Amendment to Rights Agreement dated as of
    December 31, 2001, between General Growth Properties, Inc.
    and Mellon Investor Services, LLC, successor to Norwest Bank
    Minnesota, N.A. (previously filed as Exhibit 4.13 to the
    Registration Statement on Form S-3 (No. 333-82134) dated
    February 4, 2002 which was filed with the SEC on
    February 5, 2002, incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                  
| | 4  | .22 |  | Letter Agreement concerning Rights Agreement dated
    November 10, 1999, between the Operating Partnership and
    NYSCRF (filed herewith).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 4  | .23 |  | The Rouse Company and The First National Bank of Chicago
    (Trustee) Indenture dated as of February 24, 1995
    (previously filed as Exhibit 4.23 to the Annual Report on
    Form 10-K for the year ended December 31, 2004 which
    was filed with the SEC on March 22, 2005, incorporated
    herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | 4  | .24 |  | Second Amended and Restated Credit Agreement dated as of
    February 24, 2006 among General Growth Properties, Inc.,
    Operating Partnership and GGPLP L.L.C., as Borrowers; the
    several lenders from time to time parties thereto; Banc of
    America Securities LLC, Eurohypo AG, New York Branch
    (Eurohypo) and Wachovia Capital Markets, LLC, as
    Arrangers; Eurohypo, as Administrative Agent; Bank of America,
    N.A., and Wachovia Bank, National Association, as Syndication
    Agents; and Lehman Commercial Paper, Inc., as Documentation
    Agent (previously filed as Exhibit 4.1 to the Current
    Report on Form 8-K dated February 24, 2006 which was
    filed with the SEC on March 2, 2006, incorporated herein by
    reference).
| | 10 | .1  |  | Second Amended and Restated Agreement of Limited Partnership of
    the Operating Partnership dated April 1, 1998 (the LP
    Agreement) (filed herewith).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 10 | .2  |  | First Amendment to the LP Agreement dated as of June 10,
    1998 (previously filed as Exhibit 10(B) to the Annual
    Report on Form 10-K for the year ended December 31,
    2002 which was filed with the SEC on March 14, 2003,
    incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | 10 | .3  |  | Second Amendment to the LP Agreement dated as of June 29,
    1998 (previously filed as Exhibit 10(C) to the Annual
    Report on Form 10-K for the year ended December 31,
    2002 which was filed with the SEC on March 14, 2003,
    incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | 10 | .4  |  | Third Amendment to the LP Agreement dated as of
    February 15, 2002 (previously filed as Exhibit 10.3 to
    the Current Report on Form 8-K dated July 10, 2002
    which was filed with the SEC on July 24, 2002, incorporated
    herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | 10 | .5  |  | Amendment to the LP Agreement dated as of April 24, 2002
    (previously filed as Exhibit 10.4 to the Current Report on
    Form 8-K dated July 10, 2002 which was filed with the
    SEC on July 24, 2002, incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 10 | .6  |  | Fourth Amendment to the LP Agreement dated as of July 10,
    2002 (previously filed as Exhibit 10.5 to the Current
    Report on Form 8-K dated July 10, 2002 which was filed
    with the SEC on July 24, 2002, incorporated herein by
    reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 10 | .7  |  | Amendment to the LP Agreement dated as of November 27, 2002
    (previously filed as Exhibit 10(G) to the Annual Report on
    Form 10-K for the year ended December 31, 2002 which
    was filed with the SEC on March 14, 2003, incorporated
    herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 10 | .8  |  | Sixth Amendment to the LP Agreement and Exhibit A to the
    Amendment dated as of November 20, 2003 (previously filed
    as Exhibit 10.8 to the Annual Report on Form 10-K for
    the year ended December 31, 2003 which was filed with the
    SEC on March 12, 2004, incorporated herein by reference).                                                                                                                                                                                                                                                                                                                                                                                                                                                              

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| |    |      |  |                                                                                                                                                                                                                                                                                                                                                                                    
| | -- | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .9   |  | Amendment to the LP Agreement and Exhibit A to the
    Amendment dated as of December 11, 2003 (previously filed
    as an Exhibit 10.9 to the Annual Report on Form 10-K
    for the year ended December 31, 2003 which was filed with
    the SEC on March 12, 2004, incorporated herein by
    reference).                                                                      
| | 10 | .10  |  | Amendment to the LP Agreement dated November 12, 2004
    (previously filed as Exhibit 10.3 to the Current Report on
    Form 8-K/A dated November 12, 2004 which was filed
    with the SEC on November 18, 2004, incorporated herein by
    reference).                                                                                                                          
| | 10 | .11  |  | Second Amended and Restated Operating Agreement of GGPLP L.L.C.
    dated April 17, 2002 (the LLC Agreement)
    (previously filed as Exhibit 10.1 to the Quarterly Report
    on Form 10-Q for the quarterly period ended March 31,
    2002 which was filed with the SEC on May 13, 2002,
    incorporated herein by reference).                                               
| | 10 | .12  |  | First Amendment to the LLC Agreement dated April 23, 2002
    (previously filed as Exhibit 10.2 to the Quarterly Report
    on Form 10-Q for the quarterly period ended March 31,
    2002 which was filed with the SEC on May 13, 2002,
    incorporated herein by reference).                                                                                                    
| | 10 | .13  |  | Second Amendment to the LLC Agreement dated May 13, 2002
    (previously filed as Exhibit 10.1 to the Quarterly Report
    on Form 10-Q for the quarterly period ended June 30,
    2002 which was filed with the SEC on August 13, 2002,
    incorporated herein by reference).                                                                                                   
| | 10 | .14  |  | Third Amendment to the LLC Agreement dated October 30, 2002
    (previously filed as Exhibit 10(Y) to the Annual Report on
    Form 10-K for the year ended December 31, 2002 which
    was filed with the SEC on March 14, 2003, incorporated
    herein by reference).                                                                                                           
| | 10 | .15  |  | Fourth Amendment to the LLC Agreement dated April 7, 2003
    (previously filed as Exhibit 10.1 to the Quarterly Report
    on Form 10-Q for the quarterly period ended March 31,
    2003 which was filed with the SEC on May 9, 2003,
    incorporated herein by reference).                                                                                                     
| | 10 | .16  |  | Fifth Amendment to the LLC Agreement dated April 11, 2003
    (previously filed as Exhibit 10.2 to the Quarterly Report
    on Form 10-Q for the quarterly period ended March 31,
    2003 which was filed with the SEC on May 9, 2003,
    incorporated herein by reference).                                                                                                     
| | 10 | .17  |  | Sixth Amendment to the LLC Agreement dated November 12,
    2004 (previously filed as Exhibit 10.2 to the Current
    Report on Form 8-K/A dated November 12, 2004 which was
    filed with the SEC on November 18, 2004, incorporated
    herein by reference).                                                                                                                   
| | 10 | .18  |  | Stockholders Agreement dated December 20, 1995, among GGP/
    Homart, Inc., Operating Partnership, The Comptroller of the
    State of New York, As Trustee of the Common Retirement Fund
    (NYSCRF), Equitable Life Insurance Company of Iowa,
    USG Annuity & Life Company, Trustees of the University
    of Pennsylvania and General Growth Properties (filed herewith).
| | 10 | .19  |  | First Amendment to Stockholders Agreement dated
    September 10, 1996 (filed herewith).                                                                                                                                                                                                                                                                                           
| | 10 | .20  |  | Operating Agreement dated November 10, 1999, between the
    Operating Partnership, NYSCRF, and GGP/Homart II L.L.C.
    (filed herewith).                                                                                                                                                                                                                                         
| | 10 | .21  |  | Amendment to the Operating Agreement of GGP/Homart II
    L.L.C. dated November 22, 2002 (filed herewith).                                                                                                                                                                                                                                                                         
| | 10 | .22  |  | Letter Amendment to the Operating Agreement of
    GGP/Homart II L.L.C. dated January 31, 2003 (filed
    herewith).                                                                                                                                                                                                                                                               
| | 10 | .23  |  | Second Amendment to the Operating Agreement of
    GGP/Homart II L.L.C. dated January 31, 2003 (filed
    herewith).                                                                                                                                                                                                                                                               
| | 10 | .24  |  | Amended and Restated Operating Agreement of GGP-TRS L.L.C. dated
    August 26, 2002, between the Operating Partnership,
    Teachers Retirement System of the State of Illinois and
    GGP-TRS L.L.C. (filed herewith).                                                                                                                                                         
| | 10 | .25  |  | First Amendment to Amended and Restated Operating Agreement of
    GGP-TRS L.L.C. dated December 19, 2002 (filed herewith).                                                                                                                                                                                                                                                        
| | 10 | .26  |  | Second Amendment to Amended and Restated Operating Agreement of
    GGP-TRS L.L.C. dated November 1, 2005 (filed herewith).                                                                                                                                                                                                                                                        
| | 10 | .27* |  | General Growth Properties, Inc. 1998 Incentive Stock Plan, as
    amended (previously filed as Exhibit 10.1 to the Quarterly
    Report on Form 10-Q for the quarterly period ended
    June 30, 2005 which was filed with the SEC on
    August 8, 2005, incorporated herein by reference).                                                                                       

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##### Table of Contents



| |    |      |  |                                                                                                                                                                                                                                                                                                                                                                                                              
| | -- | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .28* |  | Form of Option Agreement pursuant to 1998 Incentive Stock Plan
    (previously filed as Exhibit 10.47 to the Annual Report on
    Form 10-K for the year ended December 31, 2004 which
    was filed with the SEC on March 22, 2005, incorporated
    herein by reference).                                                                                                                                  
| | 10 | .29* |  | General Growth Properties, Inc. 2003 Incentive Stock Plan
    (previously filed as Exhibit 4.1 to the Registration
    Statement (333-105882) on Form S-8 dated June 5, 2003
    which was filed with the SEC on June 6, 2003, incorporated
    herein by reference).                                                                                                                                        
| | 10 | .30* |  | Form of Option Agreement pursuant to 2003 Incentive Stock Plan
    (previously filed as Exhibit 10.48 to the Annual Report on
    Form 10-K for the year ended December 31, 2004 which
    was filed with the SEC on March 22, 2005, incorporated
    herein by reference).                                                                                                                                  
| | 10 | .31* |  | Form of Restricted Stock Agreement pursuant to 2003 Incentive
    Stock Plan (filed herewith).                                                                                                                                                                                                                                                                                                               
| | 10 | .32* |  | Summary of Non-Employee Director Compensation Program
    (previously filed as Exhibit 10.1 to the Current Report on
    Form 8-K dated July 26, 2005 which was filed with the
    SEC on July 28, 2005, incorporated herein by reference).                                                                                                                                                                  
| | 10 | .33  |  | Form of Contingent Stock Agreement, effective January 1,
    1996, by The Rouse Company and in favor of and for the benefit
    of the Holders and the Representatives (as defined therein)
    (previously filed as Exhibit 99.1 to the Registration
    Statement on Form S-3/A (No. 333-120373) which was filed
    with the SEC on December 23, 2004, incorporated herein by
    reference).             
| | 10 | .34  |  | Assumption Agreement dated October 19, 2004 by General
    Growth Properties, Inc. and The Rouse Company in favor of and
    for the benefit of the Holders and the Representatives (as
    defined therein) (previously filed as Exhibit 99.2 to the
    Registration Statement on Form S-3/A (No. 333-120373)
    which was filed with the SEC on December 23, 2004,
    incorporated herein by reference).
| | 10 | .35  |  | Agreement and Plan of Merger by and Among The Rouse Company,
    General Growth Properties, Inc. and Red Acquisition, LLC dated
    as of August 19, 2004 (previously filed as Exhibit 2.1
    to our Current Report on Form 8-K/A dated August 20,
    2004 which was filed with the SEC on August 24, 2004,
    incorporated herein by reference).                                                         
| | 21 |      |  | List of Subsidiaries (filed herewith).                                                                                                                                                                                                                                                                                                                                                                       
| | 23 | .1   |  | Consent of Deloitte & Touche LLP (filed herewith).                                                                                                                                                                                                                                                                                                                                                           
| | 23 | .2   |  | Consent of KPMG LLP (filed herewith).                                                                                                                                                                                                                                                                                                                                                                        
| | 31 | .1   |  | Certification of Chief Executive Officer Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002 (filed
    herewith).                                                                                                                                                                                                                                                                                 
| | 31 | .2   |  | Certification of Chief Financial Officer Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002 (filed
    herewith).                                                                                                                                                                                                                                                                                 
| | 32 | .1   |  | Certification of Chief Executive Officer Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002 (filed
    herewith).                                                                                                                                                                                                                                                                                 
| | 32 | .2   |  | Certification of Chief Financial Officer Pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002 (filed
    herewith).                                                                                                                                                                                                                                                                                 






|    |                                                         
|--- | --------------------------------------------------------
|(*) | A compensatory plan or arrangement required to be filed.

S-K,


S-4