General Growth Properties, Inc. Announces Fourth Quarter and Annual 2006 Results of Operations.

CHICAGO -- General Growth Properties, Inc. (NYSE:GGP) released today its fourth quarter and annual 2006 operating results. For the fourth quarter of 2006, Earnings per share - diluted (EPS) were $.29 and fully diluted Funds From Operations (FFO) per share were $1.02, an increase from EPS of $.28 ($.25 from continuing operations) and FFO per share of $.91, respectively, from the fourth quarter of 2005. For the full year, EPS were $.24 in 2006 as compared to $.32 in 2005. FFO per share for the full year was $3.06 in 2006, an increase from $3.05 of FFO per share in 2005.

"Our core real estate business closed out 2006 with record comparable net operating income growth and occupancy," stated the Chief Executive Officer of General Growth, John Bucksbaum. "We are extremely well positioned to achieve continued growth in 2007 as well."

FINANCIAL AND OPERATIONAL HIGHLIGHTS

* EPS in the fourth quarter of 2006 were $.29, a $.01 increase from the comparable period of 2005, primarily as a result of higher operating income in 2006 in both our operating segments as detailed below in our segment results. Such higher operating income was partially offset by a significantly higher provision for income taxes in 2006, the majority of which consists of estimates of deferred, rather than current, income taxes payable. For the full year 2006, income from continuing operations was approximately $3.8 million lower than the amount for the full year 2005.

* FFO per share increased to $1.02 in the fourth quarter of 2006 from $.91 in the fourth quarter of 2005. FFO for the quarter increased 13.3% to $301.3 million, from $265.9 million in the fourth quarter of 2005. In addition to the impact of increased operating income, which was partially offset by increased income taxes as discussed above, our net property management fees and costs contributed approximately an additional $9.7 million of FFO in the fourth quarter of 2006 over the amount in the comparable quarter of 2005.

* Core FFO per share guidance - As indicated in previous public communications, FFO guidance per share for the full year 2007 and beyond will be solely for Core FFO per share, which is defined as FFO per share excluding 100% of the Real Estate Property Net Operating Income from the Master Planned Communities segment and 100% of the Company provision for income taxes. Operating results for our Master Planned Communities segment, and our income tax expense that is largely a function of such operations, are very difficult to estimate in advance. In addition, we believe that FFO is a less meaningful supplemental measure for the Master Planned Communities segment of our business because it does not facilitate an understanding of the operating performance of this business as our primary strategy in this segment is to develop and sell land in a manner that increases the value of the remaining land. Actual EPS, FFO (including these excluded items), NOI and Core FFO will be provided each quarter. Full year per share guidance will also be provided on a quarterly basis; however, such guidance will only be given for Core FFO. Actual Core FFO per share in 2006 was approximately $2.96 per share. We currently expect 2007 Core FFO per share to be in the range of $3.17 to $3.23 per share, 7% to 9% above the calculated Core FFO per share amount described above for 2006.

The 2007 annual guidance reported above also excludes the tax impact of restructuring certain of our operating properties. We expect to complete these restructurings by the end of the first quarter and such restructurings are expected to reduce deferred taxes and income tax expense by approximately $300 million.

SEGMENT RESULTS

General Growth Properties, Inc. (the "Company") presents its operations in two business segments, Retail and Other and Master Planned Communities. As reported in our earnings release for the third quarter 2006, we have made various minor adjustments to amounts reported in 2005 as we completed the integration of the former Rouse Company with our overall accounting systems. These adjustments were made to conform the 2005 results to the 2006 presentation. Such adjustments have had no effect on EPS previously reported for any period in 2005 but, as disclosed in the third quarter 2006 earnings release, have reduced FFO for the fourth quarter and the full year 2005 by approximately $1 million and $4 million, respectively, from the amounts originally reported for 2005.

Retail and Other Segment

* Real estate property net operating income (NOI) for the fourth quarter of 2006 increased to $641.1 million, 7.8% above the $594.5 million reported for the fourth quarter of 2005.

* Revenues from consolidated properties were $728.0 million for the fourth quarter of 2006, an increase of 2.9% compared to $707.7 million for the same period in 2005. Revenues from unconsolidated properties, at the Company's ownership share, for the quarter increased 13.1% to $203.0 million, compared to $179.5 million in the fourth quarter of 2005.

* Comparable NOI from consolidated properties in the fourth quarter of 2006 increased by 6.6% compared to the same period last year. Comparable NOI from unconsolidated properties at the Company's ownership share for the quarter increased by approximately 11.7% compared to the fourth quarter of 2005.

* Total tenant sales and comparable tenant sales, both on a trailing 12 month basis at December 2006, increased 5.2% and 2.5%, respectively, compared to the same periods last year.

* Retail Center occupancy was 93.6% at December 31, 2006 as compared to 92.5% at December 31, 2005.

* Sales per square foot for fourth quarter 2006 (on a trailing 12 month basis) were $453 versus $437 in the fourth quarter of 2005.

Master Planned Communities Segment

* NOI for the fourth quarter of 2006 for the properties in the Master Planned Communities segment was $48.8 million for consolidated properties and $7.3 million for unconsolidated properties as compared to $27.1 million and $6.8 million, respectively, in 2005. For the full year 2006, NOI from consolidated properties was $106.7 million and NOI from unconsolidated properties was $23.3 million, as compared to $73.4 million and $22.3 million, respectively, for the full year 2005.

* Land sale revenues for the fourth quarter of 2006 were $205.2 million for consolidated properties and $25.2 million for unconsolidated properties, compared to $130.3 million and $24.9 million, respectively, for the fourth quarter of 2005. Consolidated land sale revenues were significantly impacted in the fourth quarter of 2006 by a single $123 million sale, which was contracted for in the spring of 2006. As a result of this sale, revenues were much higher in the fourth quarter of 2006, as opposed to somewhat more level sales and revenues in the four quarterly periods of 2005. Although land sale revenues for the full year 2006 exceeded the 2005 amounts, the sales pace has declined in recent months, a trend expected to continue into 2007.

CONFERENCE CALL/WEBCAST

General Growth Properties, Inc. will host a live Webcast of its conference call regarding this announcement on our website, www.ggp.com. This Webcast will take place on Tuesday, February 13, 2007, at 9:00 a.m. Eastern Time (8:00 a.m. CT, 6:00 a.m. PT). The Webcast can be accessed by selecting the conference call icon on the GGP home page.

The Company is the second largest U.S.-based publicly traded Real Estate Investment Trust (REIT) based upon market capitalization. The Company currently has ownership interest in, or management responsibility for, a portfolio of over 200 regional shopping malls in 44 states, as well as ownership in master planned community developments and commercial office buildings. The Company's portfolio totals approximately 200 million square feet and includes over 24,000 retail stores nationwide. The Company is listed on the New York Stock Exchange under the symbol GGP. For more information, please visit the Company website at http://www.ggp.com.

NON-GAAP SUPPLEMENTAL FINANCIAL MEASURES AND DEFINITIONS

FUNDS FROM OPERATIONS (FFO)

The Company, consistent with real estate industry and investment community preferences, uses FFO as a supplemental measure of operating performance for a REIT. The National Association of Real Estate Investment Trusts (NAREIT) defines FFO as net income (loss) (computed in accordance with Generally Accepted Accounting Principles (GAAP)), excluding gains (or losses) from cumulative effects of accounting changes, extraordinary items and sales of properties, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.

The Company considers FFO a supplemental measure for equity REITs and a complement to GAAP measures because it facilitates an understanding of the operating performance of the Company's properties. FFO does not give effect to real estate depreciation and amortization since these amounts are computed to allocate the cost of a property over its useful life. Since values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions, the Company believes that FFO provides investors with a clearer view of the Company's operating performance.

In order to provide a better understanding of the relationship between FFO and GAAP net income, a reconciliation of FFO to GAAP net income has been provided. FFO does not represent cash flows from operating activities in accordance with GAAP, should not be considered as an alternative to GAAP net income and is not necessarily indicative of cash available to fund cash needs. In addition, the Company has presented FFO on a consolidated and unconsolidated basis (at the Company's ownership share) as the Company believes that given the significance of the Company's operations that are owned through investments accounted for on the equity method of accounting, the detail of the operations of the Company's unconsolidated properties provides important insights into the income and FFO produced by such investments for the Company as a whole.

REAL ESTATE PROPERTY NET OPERATING INCOME (NOI) AND COMPARABLE NOI

The Company believes that Real Estate Property Net Operating Income (NOI) is a useful supplemental measure of the Company's operating performance. The Company defines NOI as operating revenues (rental income, land sales, tenant recoveries and other income) less property and related expenses (real estate taxes, land sales operating costs, repairs and maintenance, marketing and other property expenses). As with FFO described above, NOI has been reflected on a consolidated and unconsolidated basis (at the Company's ownership share). Other REITs may use different methodologies for calculating NOI, and accordingly, the Company's NOI may not be comparable to other REITs.

Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, gains and losses from property dispositions, minority interest in consolidated joint ventures, and extraordinary items, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate properties and the impact on operations from trends in occupancy rates, rental rates, land values and operating costs. This measure thereby provides an operating perspective not immediately apparent from GAAP operating or net income. The Company uses NOI to evaluate its operating performance on a property-by-property basis because NOI allows the Company to evaluate the impact that factors such as lease structure, lease rates and tenant base, which vary by property, have on the Company's operating results, gross margins and investment returns.

In addition, management believes that NOI provides useful information to the investment community about the Company's operating performance. However, due to the exclusions noted above, NOI should only be used as an alternative measure of the Company's financial performance. For reference, and as an aid in understanding management's computation of NOI, a reconciliation of NOI to consolidated operating income as computed in accordance with GAAP has been presented.

Comparable NOI excludes from both years the NOI of properties with significant physical or merchandising changes and those properties acquired or opened during the relevant comparative accounting periods.

PROPERTY INFORMATION

The Company has presented information on its consolidated and unconsolidated properties separately in the accompanying financial schedules. As a significant portion of the Company's total operations are structured as joint venture arrangements which are unconsolidated, management of the Company believes that operating data with respect to all properties owned provides important insights into the income produced by such investments for the Company as a whole. In addition, the individual items of revenue and expense for the unconsolidated properties have been presented at the Company's ownership share of such unconsolidated ventures. As substantially all of the management operating philosophies and strategies are the same regardless of ownership structure, an aggregate presentation of NOI and other operating statistics yields a more accurate representation of the relative size and significance of the elements of the Company's overall operations.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements, including full year 2007 Core FFO per share guidance and expected sales trends in the Master Planned Communities segment. Actual results may differ materially from the results suggested by these forward-looking statements, for a number of reasons, including, but not limited to, the retail market, tenant occupancy and tenant bankruptcies, the level of indebtedness and interest rates, market conditions, land sales in the Master Planned Communities segment, the cost and success of development and re-development projects and ability to successfully manage growth. Readers are referred to the documents filed by General Growth Properties, Inc. with the SEC, specifically the most recent report on Form 10-K, which further identify the important risk factors which could cause actual results to differ materially from the forward-looking statements in this release. The Company disclaims any obligation to update any forward-looking statements.

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