CHICAGO, IL (REIT Media) April 29, 2008 - General Growth Properties, Inc. (NYSE:GGP) (the Company) released today its operating results for the first quarter of 2008. Core Funds From Operations (Core FFO) per fully diluted share were $0.76 for the first quarter of 2008 as compared to $0.65 in the comparable period of 2007. Funds From Operations (FFO) per fully diluted share were $0.75 for the first quarter of 2008, as compared to $1.66 reported in the first quarter of 2007. Earnings per share – diluted (EPS) were $0.03 for the first quarter of 2008 as compared to $0.94 in the comparable 2007 period.

"Strong comparable operating results at our malls demonstrate that our business prospects remain positive," said Chief Executive Officer of GGP John Bucksbaum. "Despite the challenging economic environment, our malls remain a very attractive venue for our customers to shop, for our retailers to do business, and for our lenders to lend. We remain confident as we look to the future."

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) benefit from income taxes. Core FFO for the first quarter of 2008 was $226.6 million or $0.76 per fully diluted share as compared to $192.4 million or $0.65 per fully diluted share for the first quarter of 2007. Certain non-cash revenues and expenses included in Core FFO resulted in approximately $15.8 million or $0.05 of Core FFO per fully diluted share in the first quarter of 2008 as compared to $29.0 million or $0.10, respectively, for the same period of 2007, representing a decrease of approximately $0.05 of Core FFO per fully diluted share. Minimum rent in the first quarter of 2008 includes approximately $21.0 million of lease termination income compared to approximately $3.7 million of lease termination income for the first quarter of 2007, representing an increase of approximately $0.06 of Core FFO per fully diluted share.
• FFO per share was $0.75 in the first quarter of 2008. FFO for the quarter declined to $223.2 million from $491.7 million in the first quarter of 2007. The significant decline in FFO is primarily due to the approximately $298 million, or $1.00 per share, total tax benefit recognized in the first quarter of 2007 attributable to the tax restructuring of certain of our operating subsidiaries. Excluding the effect of such tax benefit, 2008 FFO increased approximately $29.5 million, or approximately 15.2%, from 2007 FFO.
• EPS for the first quarter of 2008 were $0.03 per share versus $0.94 in the first quarter of 2007. Our first quarter 2007 EPS were significantly impacted by the tax restructuring, which increased net earnings, net of minority interest, by approximately $245 million or approximately $1.00 per share.
• Core FFO per share guidance

Core FFO per share for the full year 2008 is currently expected to be in the range of $3.52 to $3.58 per share. Our Core FFO per share for the full year 2007 was approximately $2.97 per share. As previously reported, full year 2007 Core FFO per share was reduced by certain other significant earnings charges incurred in the fourth quarter of 2007. The increase in full year 2008 Core FFO per share reflects the exclusion of such 2007 items. Full year 2008 Core FFO guidance also reflects the issuance of an additional 23 million shares of common stock sold in the first quarter of 2008.

SEGMENT RESULTS

Retail and Other Segment

• NOI for the first quarter of 2008 was $632.6 million, an increase of approximately 13.2% over the $558.7 million reported in the first quarter of 2007.
• Revenues from consolidated properties were $798.3 million for the first quarter of 2008, an increase of 18.3% compared to $674.6 million for the same period in 2007. The majority of this increase is due to the acquisition of our venture partner’s interest in the Homart I properties in July 2007, which resulted in the consolidation of 20 of the 23 properties in that portfolio that were previously reported as unconsolidated in our operating results. Excluding such acquisition, consolidated revenues would have increased by approximately $23.1 million or 3.4%.
• Revenues from unconsolidated properties, at the Company’s ownership share, declined to $146.6 million or 19.2% compared to $181.4 million in the first quarter of 2007. The decline was due to the acquisition of our venture partner’s interest in the Homart I properties.
• Total tenant sales increased 0.2% and comparable tenant sales increased 0.9% in 2008, both on a trailing 12 month basis, compared to the same period last year.
• Comparable NOI from consolidated properties in the first quarter of 2008 increased by 5.1% compared to the first quarter of 2007.
• Comparable NOI from unconsolidated properties at the Company’s ownership share in the first quarter of 2008 increased by approximately 7.3% compared to the first quarter of 2007.
• Retail Center occupancy decreased slightly to 92.7% at March 31, 2008, compared to 92.9% at March 31, 2007.
• Sales per square foot for first quarter 2008 (on a trailing twelve month basis) were $460 versus $459 in the first quarter of 2007.

Master Planned Communities Segment

• NOI in the first quarter of 2008 for the Master Planned Communities segment was a loss of $0.9 million for consolidated properties and income of $7.7 million for unconsolidated properties as compared to income of $3.6 million and $5.7 million, respectively, in the first quarter of 2007. The NOI loss in the first quarter of 2008 is due primarily to certain operating expenses which cannot be completely eliminated despite the significant reduction in current sales revenues.
• Land sale revenues in the first quarter of 2008 were approximately $9.1 million for consolidated properties and approximately $23.1 million for unconsolidated properties, compared to $23.8 million and $13.4 million, respectively, in the first quarter of 2007. Land sales continue to be at a very slow rate in 2008, a trend that is expected to continue into 2009.

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 Wednesday, April 30, 2008, at 9:00 a.m. Eastern Time (8:00 a.m. CDT, 6:00 a.m. PDT). 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). The Company currently has ownership interest in, or management responsibility for, over 200 regional shopping malls in 45 states, as well as ownership in planned community developments and commercial office buildings. The Company’s portfolio totals approximately 200 million square feet of retail space 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 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 including 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 FFO is a less meaningful supplemental measure of performance for the Master Planned Communities segment of our business. FFO 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 FFO 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, FFO and GAAP net income, a reconciliation of Core FFO and FFO to GAAP net income has been provided. Neither Core FFO nor FFO represent cash flows 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 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

General Growth believes that 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 such elements of the Company’s overall operations.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements, including full year 2008 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 (as amended by Amendment No. 1 to such report filed on Form 10-K/A), 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.

GENERAL GROWTH PROPERTIES, INC.
OVERVIEW
(In thousands, except per share amounts)
				Three Months Ended
				March 31,
				2008			2007
Funds From Operations ("FFO")
Company stockholders				$ 184,190			$ 404,282
Operating Partnership unitholders				39,011			87,385
Operating Partnership				$ 223,201			$ 491,667
Increase (decrease) in FFO over comparable prior year period				(54.6	)	%	116.3	%
FFO per share:
	Company stockholders - basic			$ 0.75			$ 1.66
	Operating Partnership - basic			0.75			1.66
	Operating Partnership - diluted			0.75			1.66
Increase (decrease) in diluted FFO over comparable prior year period				(54.8	)	%	115.6	%
Core Funds From Operations ("Core FFO")
	Core FFO			$ 226,626			$ 192,412
	Core FFO per share - diluted			0.76			0.65
Increase (decrease) in Core FFO over comparable prior year period				17.8		%	(8.0	)%
Dividends
Dividends paid per share				$ 0.50			$ 0.45
Payout ratio (% of diluted FFO paid out)				66.7		%	27.1	%
Real Estate Property Net Operating Income ("NOI")
Retail and Other:
	Consolidated			$ 540,657			$ 448,679
	Unconsolidated			91,973			110,032
	Total Retail and Other			632,630			558,711
Master Planned Communities:
	Consolidated			(855	)		3,649
	Unconsolidated			7,712			5,666
	Total Master Planned Communities			6,857			9,315
Total Real estate property net operating income				$ 639,487			$ 568,026
				March 31,			December 31,
Selected Balance Sheet Information				2008			2007
Cash and cash equivalents				$ 256,462			$ 99,534
Investment in real estate:
	Net land, buildings and equipment			$22,877,860			$22,359,249
	Developments in progress			1,058,948			987,936
	Net investment in and loans to/from
		Unconsolidated Real Estate Affiliates		1,772,108			1,803,366
	Investment land and land held for development and sale			1,659,878			1,639,372
Net investment in real estate				$27,368,794			$26,789,923
Total assets				$29,519,446			$28,814,319
Mortgage, notes and loans payable				$24,365,831			$24,282,139
Minority interest - Preferred				121,482			121,482
Minority interest - Common				433,293			351,362
Stockholders' equity				1,984,454			1,456,696
Total capitalization (at cost)				$26,905,060			$26,211,679
				Consolidated Properties					Unconsolidated Properties (a)
							Average				Average
Summarized Debt Information				Outstanding Balance			Interest Rate	(d)	Outstanding Balance		Interest Rate	(d)
Fixed rate (c)				$20,446,116			5.54	%	$ 2,874,905		5.66	%
Variable rate (c)				3,713,307			4.81		262,249		6.20
Totals				$24,159,423		(b)	5.43	%	$ 3,137,154		5.70	%

(a)		Reflects the Company's share of debt relating to the properties owned by the Unconsolidated Real Estate Affiliates.
(b)		Excludes special improvement districts liability of $71.4 million, minority interest adjustment of $71.7 million
		and purchase accounting mark-to-market adjustments of $63.2 million.
(c)		Includes the effects of interest rate swaps.
(d)		Rates include the effects of deferred finance costs and the effect of a 360 day rate applied over a 365 day period.

GENERAL GROWTH PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
				Three Months Ended
				March 31,
				2008			2007
Revenues:
	Minimum rents			$ 524,942			$ 436,041
	Tenant recoveries			231,632			199,455
	Overage rents			13,518			15,580
	Land sales			9,066			23,793
	Management and other fees			20,239			27,572
	Other			30,925			26,347
		Total revenues		830,322			728,788
Expenses:
	Real estate taxes			68,649			56,860
	Repairs and maintenance			62,100			50,972
	Marketing			12,276			12,580
	Other property operating costs			111,892			100,037
	Land sales operations			9,921			20,144
	Provision for doubtful accounts			2,709			5,493
	Property management and other costs			52,138			53,142
	General and administrative			8,098			12,268
	Depreciation and amortization			184,259			175,118
		Total expenses		512,042			486,614
Operating income				318,280			242,174
Interest income				557			2,034
Interest expense				(319,394	)		(268,348	)
Loss before income taxes, minority interest and equity in income of Unconsolidated Real Estate Affiliates				(557	)		(24,140	)
(Provision for) benefit from income taxes				(9,392	)		288,392
Minority interest				(5,321	)		(54,417	)
Equity in income of Unconsolidated Real Estate Affiliates				23,828			20,359
Net income				$ 8,558			$ 230,194
Basic Earnings Per Share				$ 0.03			$ 0.94
Diluted Earnings Per Share				0.03			0.94

GENERAL GROWTH PROPERTIES, INC.
PORTFOLIO RESULTS AND FUNDS FROM OPERATIONS ("FFO")
(In thousands)
				Three Months Ended March 31, 2008
				Consolidated			Unconsolidated			Segment
Retail and Other				Properties			Properties			Basis
Property revenues:
	Minimum rents			$ 524,942			$ 92,692			$ 617,634
	Tenant recoveries			231,632			39,091			270,723
	Overage rents			13,518			1,312			14,830
	Other, including minority interest			28,191			13,541			41,732
		Total property revenues		798,283			146,636			944,919
Property operating expenses:
	Real estate taxes			68,649			11,591			80,240
	Repairs and maintenance			62,100			9,301			71,401
	Marketing			12,276			2,188			14,464
	Other property operating costs			111,892			31,288			143,180
	Provision for doubtful accounts			2,709			295			3,004
		Total property operating expenses		257,626			54,663			312,289
		Retail and other net operating income		540,657			91,973			632,630
Master Planned Communities
Land sales				9,066			23,118			32,184
Land sales operations				(9,921	)		(15,406	)		(25,327	)
	Master Planned Communities net operating income (loss)			(855	)		7,712			6,857
		Real estate property net operating income		539,802			99,685			$ 639,487
Management and other fees				20,239			5,031
Property management and other costs				(18,423	)		(1,048	)
Headquarters/regional costs				(33,715	)		(8,689	)
General and administrative				(8,098	)		(715	)
Depreciation on non-income producing assets, including headquarters building				(2,795	)		-
Interest income				557			1,708
Interest expense				(319,394	)		(39,110	)
Provision for income taxes				(9,392	)		(890	)
Preferred unit distributions				(2,903	)		-
Other FFO from minority interest				1,321			30
FFO				167,199			56,002
Equity in FFO of Unconsolidated Properties				56,002			(56,002	)
Operating Partnership FFO				$ 223,201			$ -
				Three Months Ended March 31, 2007
				Consolidated			Unconsolidated			Segment
Retail and Other				Properties			Properties			Basis
Property revenues:
	Minimum rents			$ 436,041			$ 109,166			$ 545,207
	Tenant recoveries			199,455