General Growth Properties Inc., the No. 2 U.S. mall owner, said Monday that second-quarter funds from operations rose, citing greater leasing activity and higher sales at its malls.
Funds from operations for its core mall properties were $102.9 million, or 32 cents per share, compared with $124.6 million, or 39 cents per fully diluted share.
Core FFO excludes results from the Master Planned Communities segment and a provision for the benefit from income taxes.
Chicago-based General Growth, the second-largest owner of U.S. malls, filed for bankruptcy protection in 2009 and expects to emerge from Chapter 11 in October.
During the second quarter, the company signed leases for 2.8 million square feet, including a lease for 126,000 square feet at Fashion Show Mall in Las Vegas.
Sales at properties owned at least a year rose 7.8 percent.
Continuing weak economic conditions triggered rental concessions and other reductions that pushed net operating income down 3.4 percent compared with a year earlier.
Under a proposed reorganization, Canada’s Brookfield Asset Management Inc, Fairholme Funds Inc, Pershing Square Capital Management LP and the Teacher Retirement System of Texas will provide up to $8.55 billion in capital to bankroll General Growth’s emergence from bankruptcy.
The plan calls for the company to be split into two with General Growth retaining about 183 of its malls. A spin-off would include its non-income producing properties, including its master planned community business.
