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General Growth Properties, Inc. Reports Significantly Improved Operating Results for the Third Quarter 2007.

CHICAGO -- General Growth Properties, Inc. (NYSE:GGP) today announced its results of operations for the third quarter 2007. Core Funds From Operations (Core FFO) per fully diluted share for the third quarter of 2007 were $0.80 and Core FFO per fully diluted share for the comparable period in 2006 was $0.63. Fully diluted Funds From Operations (FFO) per share were $0.83 for the third quarter of 2007, as compared to $0.65 of FFO per fully diluted share reported in the comparable period of 2006. Earnings per share - diluted (EPS) were $0.09 and a loss of $0.03, respectively, for the third quarters of 2007 and 2006.

"Record levels of occupancy, sales per square foot and total net operating income were achieved this quarter," said John Bucksbaum, CEO of GGP. "Well located and effectively leased malls continue to produce robust increases in operating cash flow."

FINANCIAL AND OPERATIONAL HIGHLIGHTS

* Core FFO is defined as Funds From Operations excluding the Real Estate Property Net Operating Income (NOI) from the Master Planned Communities segment and the provision for income taxes. Core FFO for the third quarter of 2007 was $237.8 million or $0.80 per fully diluted share as compared to $186.8 million or $0.63 per fully diluted share in the third quarter of 2006. Straight-line rent resulted in approximately $10.6 million or $0.04 of Core FFO per fully diluted share in the third quarter of 2007, versus $15.8 million or $0.05 of Core FFO per fully diluted share in the same period of 2006.

* FFO per fully diluted share increased to $0.83 in the third quarter of 2007 from $0.65 in the third quarter of 2006. Total Funds From Operations for the quarter were $245.6 million, an increase of approximately $53.8 million, or approximately 28.0%, from $191.8 million in the third quarter of 2006, primarily as a result of significantly higher operating income in 2007 in both our operating segments as detailed below in our segment results.

* EPS in the third quarter of 2007 were $0.09, a $0.12 increase from the comparable 2006 quarter. The higher operating income, as described above and in the segment results below, was partially offset by higher net interest costs in 2007. The increase in such interest costs is primarily due to increased debt levels, incurred primarily for the acquisition or construction and renovation of currently operating properties.

* Core FFO per share guidance As previously indicated, 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 benefit / 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, cannot be accurately estimated 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. We currently project 2007 Core FFO per share to be in the range of $3.26 to $3.29 per share, approximately 10% to 11% above the Core FFO per share amount of $2.96 for 2006.

SEGMENT RESULTS

Retail and Other Segment

* Real estate property net operating income (NOI) for the Retail and Other Segment increased to $615.6 million for the third quarter of 2007, 12.6% above the $546.6 million reported for the third quarter of 2006. The majority of such increase in NOI for 2007 is increased minimum rents and tenant recovery revenues due to expansions and new property openings since the third quarter of 2006, as well as increased aggregate tenant charges on renewals.

* Revenues from consolidated properties were $781.1 million for the third quarter of 2007, an increase of 17.0% compared to $667.8 million for the same period in 2006. The majority of such increase is due to the acquisition of our venture partner's interest in the Homart I properties.

* Revenues from unconsolidated properties, at the Company's ownership share, for the quarter declined 14.9% to $145.8 million, compared to $171.3 million in the third quarter of 2006. The decline in revenues for the third quarter of 2007 as compared to 2006 is due to the acquisition of our venture partner's interest in the Homart I properties.

* Comparable NOI from consolidated properties in the third quarter of 2007 increased by 4.9% compared to the same period last year.

* Comparable NOI from unconsolidated properties at the Company's ownership share for the quarter increased by approximately 10.1% compared to the third quarter of 2006.

* Retail Center occupancy was 93.2% at September 30, 2007 as compared to 92.4% at September 30, 2006.

* Sales per square foot for third quarter 2007 (on a trailing 12 month basis) were $461 versus $450 in the third quarter of 2006.

Master Planned Communities Segment

* NOI for the third quarter of 2007 for the Master Planned Communities segment was $11.0 million for consolidated properties and $11.5 million for our share of unconsolidated properties as compared to $11.4 million and $5.1 million, respectively, in 2006.

* Land sale revenues for the third quarter of 2007 were $54.2 million for consolidated properties and $33.5 million for our share of unconsolidated properties, compared to $47.8 million and $21.6 million, respectively, for the third quarter of 2006. Although land sale revenues for third quarter 2007 exceeded the 2006 amounts, the sales pace of residential land has declined significantly (as reflected in a comparison of the nine month total segment revenue amounts). We currently expect a virtual absence of demand for residential land to continue for the balance of 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 Thursday, November 1, 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 one of the largest U.S.-based publicly traded Real Estate Investment Trusts (REIT) based upon market capitalization. The Company currently has ownership interest in, or management responsibility for, a portfolio of more than 200 regional shopping malls in 45 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) AND CORE 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. However, we believe that Funds From Operations is a less meaningful supplemental measure for the Master Planned Communities segment of our business. Funds From Operations does not facilitate an understanding of the operating performance of the Master Planned Communities segment of our 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. In addition, the Master Planned Communities segment of our business is operated within taxable REIT subsidiaries and therefore our income tax expense is largely attributable to this segment of the business. To isolate these parts of the Company from the Retail and Other segment for which Funds From Operations is a relevant measure of operating performance, the Company also uses Core FFO as an operating measure. Core FFO is defined as Funds From Operations excluding the Real Estate Property Net Operating Income from the Master Planned Communities segment and the provision for income taxes.

In order to provide a better understanding of the relationship between Core FFO, Funds From Operations and GAAP net income, a reconciliation of Core FFO and Funds from Operations to GAAP net income has been provided. Neither Core FFO nor Funds From Operations represent cash flow from operating activities in accordance with GAAP, neither should be considered as an alternative to GAAP net income and neither is necessarily indicative of cash available to fund cash needs. In addition, the Company has presented Funds From Operations 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 Funds From Operations 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 Funds From Operations 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 an additional 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 our 2007 Core FFO per fully diluted share guidance. 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 our 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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