10-K

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TABLE OF CONTENTS
GENERAL GROWTH PROPERTIES, INC. (Debtor-in-Possession)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

(MARK ONE)
ý	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2009
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 (State or other jurisdiction of incorporation or organization)	42-1283895 (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:
None

Securities Registered Pursuant to Section 12(g) of the Act:
Common Stock, $.01 par value
Preferred Stock Purchase Rights

         Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES o    NO ý

         Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. YES o    NO ý

         Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ý    NO o

         Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES ý    NO o

         Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.    ý

         Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of "accelerated filer" and "large accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ý Accelerated filer o Non-accelerated filer o
(Do not check if a
smaller reporting company) Smaller reporting company o

         Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES o    NO ý

         On June 30, 2009, the last business day of the registrant's most recently completed second quarter, the aggregate market value of the shares of common stock held by non-affiliates of the registrant was $522.6 million based upon the closing price of the common stock on such date.

         As of February 24, 2010, there were 317,304,152 shares of the registrant's common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

         Part III is to be filed by amendment no later than April 30, 2010.

GENERAL GROWTH PROPERTIES, INC.
Annual Report on Form 10-K
December 31, 2009

TABLE OF CONTENTS

Item No.		Page Number
Part I
1.	Business	1
1A.	Risk Factors	9
1B.	Unresolved Staff Comments	23
2.	Properties	23
3.	Legal Proceedings	32
Part II
5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	33
6.	Selected Financial Data	34
7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	37
7A.	Quantitative and Qualitative Disclosures About Market Risk	58
8.	Financial Statements and Supplementary Data	59
9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	59
9A.	Controls and Procedures	59
9B.	Other Information	62
Part III
10.	Directors, Executive Officers and Corporate Governance	62
11.	Executive Compensation	62
12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	62
13.	Certain Relationships and Related Transactions, and Director Independence	63
14.	Principal Accountant Fees and Services	63
Part IV
15.	Exhibits and Financial Statement Schedules	63
Signatures		64
Consolidated Financial Statements		F-1
Consolidated Financial Statement Schedule		F-85
Exhibit Index		S-1

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PART I

ITEM 1.    BUSINESS

        All references to numbered Notes are to specific footnotes to the Consolidated Financial Statements of General Growth Properties, Inc. ("GGP" or the "Company") as included in this Annual Report on Form 10-K ("Annual Report"). The descriptions (and definitions, if not otherwise defined) included in such Notes are incorporated into the applicable Item response by reference. The following discussion should be read in conjunction with such Consolidated Financial Statements and related Notes. The terms "we," "us" and "our" may also be used to refer to GGP and its subsidiaries.

INTRODUCTION

        GGP is a Delaware corporation, organized in 1986, which operates as a self-administered and self-managed real estate investment trust, referred to as a "REIT." We have ownership interest in, or management responsibility for, over 200 regional shopping malls in 43 states, as well as ownership in master planned communities and commercial office buildings.

        Our business is focused in two main areas:

•

Retail and Other—includes the operation, development and management of retail and other rental property, primarily shopping centers

•

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 and our one residential condominium project located in Natick (Boston), Massachusetts

        Substantially all of our business is conducted through GGP Limited Partnership ("the Operating Partnership" or "GGPLP"). We own one hundred percent of many of our properties and a majority or controlling interest of certain others. As a result, these properties are consolidated under generally accepted accounting principles in the United States of America ("GAAP") and we refer to them as the "Consolidated Properties." Some properties are held through joint venture entities in which we own a non-controlling interest ("Unconsolidated Real Estate Affiliates") and we refer to those properties as the "Unconsolidated Properties." Collectively, we refer to the Consolidated Properties and Unconsolidated Properties as our "Company Portfolio."

        We generally make all key strategic decisions for our Consolidated Properties. However, in connection with the Unconsolidated Properties, such strategic decisions are made with the respective stockholders, members or joint venture partners. We are also the asset manager for most of the Company Portfolio, executing the strategic decisions and overseeing the day-to-day property management functions, including operations, leasing, construction management, maintenance, accounting, marketing and promotional services. With respect to jointly owned properties, we generally conduct the management activities through General Growth Management, Inc. ("GGMI"), one of our taxable REIT subsidiaries ("TRS") which manages, leases, and performs various services for the majority of the properties owned by our Unconsolidated Real Estate Affiliates and 19 properties owned by unaffiliated third parties, all located in the United States, and also performs marketing and strategic partnership services at five of the operating retail properties owned by our Unconsolidated Real Estate Affiliates. All of the 15 operating retail properties owned either through our Brazil or Turkey joint ventures are unconsolidated and are managed by our joint venture partners.

BANKRUPTCY

        On April 16, 2009, the Company, the Operating Partnership and certain of the Company's domestic subsidiaries filed voluntary petitions for relief under Chapter 11 of Title 11 of the United

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States Code ("Chapter 11"). On April 22, 2009 (collectively with April 16, 2009, the "Petition Date"), certain additional domestic subsidiaries (collectively with the Company and the subsidiaries that sought Chapter 11 protection on April 16, 2009, the "Debtors") of the Company also filed voluntary petitions for relief (collectively, the "Chapter 11 Cases"). However, neither GGMI, certain of our wholly-owned subsidiaries, nor any of our joint ventures, (collectively, the "Non-Debtors") either consolidated or unconsolidated, have sought such protection. The Chapter 11 Cases were filed in the Bankruptcy Court of the Southern District of New York (the "Bankruptcy Court") and are currently being jointly administered. A total of 388 Debtors with approximately $21.83 billion of debt filed for Chapter 11 protection.

        The Company and certain of the Debtors are currently operating as "debtors in possession" under the jurisdiction of the Bankruptcy Court and the applicable provisions of the Chapter 11 (Note 1—Debtors in Posession). In general, as debtors in possession, we are authorized under Chapter 11 to continue to operate as an ongoing business, but may not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. The Bankruptcy Court has granted a variety of Debtor motions that allow the Company to continue to operate its business in the ordinary course without interruption, and covering, among other things, employee obligations, critical service providers, tax matters, insurance matters, tenant and contractor obligations, claim settlements, ordinary course property sales, cash management, cash collateral, alternative dispute resolution, settlement of the pre-petition mechanics liens and department store transactions.

        The Bankruptcy Court also authorized the Senior Secured Debtor in Possession Credit, Security and Guaranty Agreement (the "DIP Facility") (Note 6) which provides for a $400.0 million term loan. The proceeds of the DIP Facility were used to refinance certain pre-petition secured indebtedness and to fund the Debtors' working capital requirements during Chapter 11.

        On April 16, 2009, and May 21, 2009, respectively, the Company's common stock was suspended from trading, and then de-listed, from the New York Stock Exchange (the "Exchange"). On April 17, 2009, the Company's common stock began trading on the over the counter market referred to as the Pink Sheet Electronic Quotation Service (the "Pink Sheets") under the symbol GGWPQ.

        The bankruptcy petitions triggered defaults on substantially all debt obligations of the Debtors. However, under section 362 of Chapter 11, the filing of a bankruptcy petition automatically stays most actions against the debtor's estate. The Chapter 11 Cases created the protections necessary for the Debtors to be able to develop and begin execution of a restructuring of the Debtors to extend mortgage maturities, reduce corporate debt and overall leverage and establish a sustainable long-term capital structure.

        We are pursuing a deliberate two-stage strategy to accomplish our reorganization, the first step of which is to restructure our property-level secured mortgage debt. As a result, during December 2009, January and February 2010, 231 Debtors (the "Track 1 Debtors") owning 119 properties with $12.33 billion of secured mortgage debt filed consensual plans of reorganization (the "Track 1 Plans") with the Bankruptcy Court. As of December 31, 2009, 113 Debtors owning 50 properties with approximately $4.65 billion of secured mortgage debt restructured such debt and emerged from bankruptcy (the "Track 1A Debtors"). Through March 1, 2010, an additional 92 Debtors owning 57 properties with approximately $5.98 billion of secured mortgage debt restructured such debt and emerged from bankruptcy. Effectiveness of the plans of reorganization and/or restructuring of the $1.70 billion of secured mortgage debt of the remaining Track 1 Debtors (together with the Track 1 Debtors that have already emerged from bankruptcy in 2010, the "Track 1B Debtors") is expected to occur in the first quarter of 2010.

        GGP is continuing to pursue consensual restructurings for 31 Debtors (the "Remaining Secured Debtors") with secured loans aggregating $2.50 billion. The Chapter 11 Cases for the Remaining Secured Debtors and the other remaining Debtors (generally GGP, GGPLP and other holding company

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subsidiaries, the "TopCo Debtors" and together with the Remaining Secured Debtors, the "2010 Track Debtors") will continue until their respective plans of reorganization are filed, approved by the respective creditors, confirmed by the Bankruptcy Court and are effective.

        Although we have successfully restructured $10.65 billion of secured mortgage debt, no agreements have been reached with respect to $2.50 billion of secured debt and $6.51 billion of unsecured debt and we do not yet have a filed or confirmed plan of reorganization for the 2010 Track Debtors. In addition, our share of the secured mortgage debt of our Unconsolidated Real Estate Affiliates maturing in 2010 (excluding the Woodlands MPC and Brazil loans) is $513.8 million (of which $78.3 million has been extended to 2014) and we have not yet restructured or refinanced this secured debt. Therefore, there continues to be the potential for substantially adverse outcomes to these unresolved contingencies which raises substantial doubt about our ability to continue as a going concern (see also Note 1).

GENERAL DEVELOPMENT OF BUSINESS

        In the first quarter of 2009, liquidity was our primary issue. As of March 31, 2009, we had $2.01 billion in past due debt and an additional $4.09 billion of debt that could have been accelerated. We did not have sufficient liquidity to make principal payments on maturing or accelerating debt or pay our past due payables. We reviewed all of our strategic and financial alternatives during the first quarter of 2009 and tried to develop an out of court restructuring plan with our lenders. To forestall certain foreclosure proceedings and to facilitate further negotiations with our secured and unsecured lenders, we filed for bankruptcy in April 2009.

        Prior to and immediately following the bankruptcy filing, we were focused on preservation of capital and maintenance of occupancy levels at our retail and other rental properties. As a result, the typical length of new and renewal leases entered into in 2009 was shorter than historical averages as a result of economic conditions and our financial condition.. Following the filing of the bankruptcy cases through the end of the second quarter of 2009, we focused on stabilizing our business during the Chapter 11 Cases and maintaining the profitability of our operating properties. In the second half of 2009, we recommitted to our strategic repairs and maintenance programs deferred as a result of liquidity issues to ensure that our retail properties continue to provide the right physical environment for our tenants and shoppers. We strategically reduced operational costs, without reducing service levels, and used these savings to further our repairs and maintenance related to property preservation and upkeep.

        During the fourth quarter of 2009, and into 2010, we developed a long term business plan. The business plan is the culmination of a strategic and financial analysis of the Company and all of its assets. The business plan contemplates the continued ownership and operation of most of our retail shopping centers, divestiture of non-core assets and suspension of development projects. It also contemplates the transfer of certain non-performing retail assets to applicable lenders in satisfaction of secured mortgage debt. The business plan provides the framework for the two key strategic initiatives we have undertaken. The first initiative was the design and restructuring of the balance sheet to create the sustainable long-term capital structure we desire upon emergence from bankruptcy. We developed and commenced a deliberate two stage strategy for our balance sheet restructuring and emergence. We have made substantial progress on the first stage of the strategy, which includes the extension of the maturity dates of our secured mortgage debt and the emergence from bankruptcy of the Debtors associated with such debt. We are working on the second stage of the strategy, restructuring of the TopCo Debtors and have undertaken a process to explore all possible alternatives for emergence of the TopCo Debtors.

        The second key strategic initiative arising from the business plan is the development of a long term operational strategy. We developed and launched the two necessary processes we identified for creation of a strategy designed to increase long-term net operating income ("NOI"). These two processes include a reengineering program and a strategic planning process for each of our retail shopping centers.

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        Our business plan is subject to change and would be changed if the agreement in principal with Brookfield Asset Management Inc. is consummated. See "Item 7. Management's Discussion and Analysis of Financial condition and Results of Operations; Overview—Introduction" for a discussion of the agreement in principle.

        In the fourth quarter of 2008, we halted or deferred substantially all of our development and redevelopment projects, other than projects which were substantially complete, projects at properties owned by our Unconsolidated Real Estate Affiliates, and projects with commitments we were obligated to fulfill. Costs to complete, or that we are obligated to pay (subject to any confirmed plan of reorganization of the TopCo Debtors) related to our remaining active domestic projects are expected to be approximately $248.0 million in 2010 and beyond. Our current business plan contemplates that we will not have sufficient capital to complete the substantial majority of our deferred development and redevelopment projects nor to continue to hold certain non-performing retail assets. Accordingly, we recorded approximately $1.22 billion in property, goodwill and project impairments in 2009.

        From 2005 to the third quarter of 2008, our focus was on development projects, including new development and redevelopment and expansion of existing properties. In such regard, we opened in September 2007 The Natick Collection in Natick, Massachusetts, which, anchored by Nordstrom, Neiman Marcus, JC Penney, Lord & Taylor, Macy's and Sears, is the largest mall in New England. Additionally, we opened The Shops at Fallen Timbers in Maumee, Ohio in October 2007. In March 2008, we opened The Shoppes at River Crossing in Macon, Georgia, an approximately 659,000 square foot open-air center anchored by Dillard's and Belk. Two significant projects in progress in 2008 which were completed in 2009 were the 138,000 square foot expansion of the Fashion Place Mall in Murray Utah (consisting of a Nordstrom and certain national restaurant tenants) in the spring of 2009 and a 165,000 square foot expansion and food court renovation at the Christiana Mall in Newark, Delaware which opened in November 2009. Internationally, in Brazil, our joint venture opened Caxias Shopping (an approximately 275,500 square foot center in Rio de Janeiro) in November 2008 and, in 2009, Boulevard Brasilia (an approximately 182,000 square foot project in Brasilia) and Boulevard Shopping Belem (approximately 366,000 square feet of retail space in Belem) in June and November, respectively.

        Prior to and through the acquisition of The Rouse Company in November 2004 (the "TRC Merger"), acquisitions have been a key contributor to our growth. Since 2005, our only major acquisition has been the July 6, 2007 acquisition of the fifty percent interest owned by New York State Common Retirement Fund ("NYSCRF") in the GGP/Homart I portfolio of 19 regional shopping malls, one community center and three regional shopping malls owned with NYSCRF pursuant to an election by NYSCRF to exercise its exchange right with respect to its ownership in GGP/Homart I and the February 29, 2008 acquisition of the Shoppes at the Palazzo in Las Vegas Nevada (Note 3).

FINANCIAL INFORMATION ABOUT INDUSTRY SEGMENTS

        Reference is made to Note 16 for information regarding our segments.

NARRATIVE DESCRIPTION OF BUSINESS

Retail and Other Segment

        Our Retail and Other segment consists of retail centers, office and industrial buildings and mixed-use and other properties.

Retail Portfolio

        The retail properties in our retail and other segment ("Retail Portfolio") is comprised primarily of regional shopping centers, but also includes festival market places, urban mixed-use centers and strip/community centers. Most of our shopping centers are strategically located in major and middle markets

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throughout the United States where they have strong competitive positions. Most of these properties contain at least one major department store or other large retail store with Gross Leaseable Area ("GLA") greater than 30,000 square feet (an "Anchor"). We also own non-controlling interests in various international joint ventures in Brazil, Turkey and Costa Rica and we believe the Retail Portfolio's geographic diversification mitigates the effects of regional economic conditions and local factors. We entered into an agreement to sell our investment in Costa Rica for $7.5 million, yielding a nominal gain that we expect will be recognized in the first quarter of 2010.

        A detailed listing of the principal properties in our Retail Portfolio is included in Item 2 of this Annual Report.

        The majority of the income from the properties in the Retail Portfolio is derived from rents received through long-term leases with retail tenants. These long-term leases generally require the tenants to pay base rent which is a fixed amount specified in the lease. The base rent is often subject to scheduled increases during the term of the lease. Another component of income is Overage Rent ("Overage Rent"). Overage Rent is paid by a tenant when its sales exceed an agreed upon minimum amount. Overage Rent is calculated by multiplying the sales in excess of the minimum amount by a percentage defined in the lease, the majority of which is typically earned in the fourth quarter. Our leases include both a base rent component and a component which requires tenants to pay amounts related to all, or substantially all, of their share of real estate taxes and certain property operating expenses, including common area maintenance and insurance. The revenue earned attributable to real estate tax and operating expense recoveries are recorded as "Tenant recoveries."

        The following table reflects retail tenant representation by category for the domestic Consolidated Properties as of December 31, 2009. In general, similar percentages existed for the Unconsolidated Properties.

Category	% of Square Feet			Representative Tenants
Specialty (includes personal services)		21	%	Eyemaster, Lenscrafters, Mastercuts, Pearl Vision, The Picture People, Regis
Family Apparel (includes unisex)		14		Aerie, Banana Republic, Express, Brooks Brothers Gap, J. Crew, Lululemon, Athletica, Old Navy
Women's Apparel		13		AnnTaylor, bebe, Chico's, Christopher & Banks, Coldwater Creek, H&M, J. Jill, Lane Bryant, Lucy, New York & Co., Talbot's, Victoria's Secret
Teen Apparel		11		Abercrombie & Fitch, Aeropostale, American Eagle Forever 21, Hollister & Co., Hot Topic, Justice, PacSun, Zumiez
Shoes		9		Aldo, Champs Sports, Easy Spirit, Finish Line, Foot Locker, Journeys, Nine West, Payless ShoeSource, Shoe Dept.
Restaurants		8		Applebee's, California Pizza Kitchen, Cheesecake Factory, Maggiano's, Panera Bread, PF Chang's, Red Robin, Ruby Tuesday, TGI Friday's
Home Entertainment and Electronics		3		Apple Computer, Brookstone, EB Games, Gamestop, RadioShack
Home Furnishings		3		Crate & Barrel, Kirkland's, Pottery Barn, Select Comfort, Williams-Sonoma

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Category	% of Square Feet			Representative Tenants
Sporting Goods		3		Dick's Sporting Goods, Hibbett's, MC Sports, Pro Image, Scheel's All Sports
Children's Merchandise		3	%	abercrombie, American Girl, Build-A-Bear Workshop, Children's Place, Gap Kids, Gymboree, Janie & Jack, Stride Rite
Personal Care		3		Aveda, Bath & Body Works, Crabtress & Evelyn, Bare Essentials, M.A.C., L'Occitane, Origins, Sephora, Trade Secret
Gifts (includes stationery, cards, gifts and novelty)		3		Carlton Cards, Hallmark, Spencer Gifts, Things Remembered, Yankee Candle
Jewelry		2		Ben Bridge Jewelers, Fred Meyer Jewelers, Helzberg Diamonds, Kay Jewelers, Zales Jewelers
Fast Food/Food Court		2		Arby's, Chick-Fil-A, McDonald's, Panda Express, Sbarro, Subway, Taco Bell
Specialty Food (includes health, candy and coffee)		2		Gloria Jean's Gourmet Coffee, GNC, Godiva Chocolatier, Rocky Mountain Chocolate Factory, Starbucks, Teavana, Vitamin World
Total		100	%

        For the year ended December 31, 2009, our largest tenant (based on common parent ownership) accounted for approximately 3% of consolidated rents.

Other Office, Industrial and Mixed-Use Buildings

        Office and other properties are primarily components of large-scale mixed-use properties (which include retail, parking and other uses) located in urban markets. In addition, we own certain free-standing office or industrial properties in office parks in the Baltimore/Washington, D.C. and Las Vegas markets. We own approximately seven million square feet of leaseable office and industrial space, including properties adjacent to our retail centers.

Master Planned Communities Segment

        The Master Planned Communities segment is comprised primarily of the following large-scale, long-term community development projects:

		As of December 31, 2009
Project	Location	Total Gross Acres(1)		Remaining Saleable Acres(2)
Maryland communities(3)	Baltimore and Prince George's County, Maryland/Washington D.C. corridor		19,100		247
Summerlin	Northwest of Las Vegas, Nevada		22,500		7,184
Bridgeland	Western Houston, Texas		11,400		7,193
Woodlands(4)	Houston, Texas		28,400		2,639

(1)

Total Gross Acres encompasses all of the land located within the borders of the Master Planned Community, including parcels already sold, saleable parcels and non-saleable areas, such as roads, parks and recreation and conservation areas.

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(2)

Remaining Saleable Acres includes only parcels that are intended for sale. Remaining saleable acres is likely to change over time as the master plan for a particular project is developed over time.

(3)

Maryland communities include Columbia and Fairwood.

(4)

We own 52.5% of Woodlands. Total gross acres and remaining saleable acres represent 100% of the project.

        We develop and sell land in these communities to builders and other developers for residential, commercial and other uses. Additionally, certain saleable land within these properties may be transferred to our Retail and Other segment to be developed as commercial properties for either our own use or to be operated as investment rental property. Finally, our 215 unit residential condominium project (Nouvelle at Natick in Natick (Boston), Massachusetts) has been reflected within this segment.

OTHER BUSINESS INFORMATION

Competition

        The nature and extent of the competition we face varies from property to property within each segment of our business. In our Retail and Other segment, our direct competitors include other publicly-traded retail mall development and operating companies, retail real estate companies, commercial property developers and other owners of retail real estate that engage in similar businesses.

        Within our Retail Portfolio, we compete for retail tenants. We believe the principal factors that retailers consider in making their leasing decision include:

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Consumer demographics

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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

        Based on these criteria, we believe that the size and scope of our property portfolio, as well as the overall quality and attractiveness of our individual properties, enable us to compete effectively for retail tenants in our local markets. Because our revenue potential is linked to the success of our retailers, we indirectly share exposure to the same competitive factors that our retail tenants experience in their respective markets when trying to attract individual shoppers. These dynamics include general competition from other regional shopping centers, including outlet malls and other discount shopping centers, as well as competition with discount shopping clubs, catalog companies, internet sales and telemarketing. We believe that we have a competitive advantage with respect to operational retail property management as our expertise allows us to evaluate existing retail properties for their increased profit potential through expansion, remodeling, re-merchandising and more efficient management of the property.

        With respect to our office and other properties, we experience competition in the development and management of our properties similar to that of our Retail Portfolio. Prospective tenants generally consider quality and appearance, amenities, location relative to other commercial activity and price in determining the attractiveness of our properties. Based on the quality and location of our properties, which are generally in urban markets or are concentrated in the commercial centers of our master planned communities, we believe that our properties are viewed favorably among prospective tenants.

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        In our Master Planned Communities segment, we compete with other landholders and residential and commercial property developers in the development of properties within the Baltimore/Washington, D.C., Las Vegas and Houston markets. Significant factors which we believe allow us to compete effectively in this business include:

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The size and scope of our master planned communities

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The recreational and cultural amenities available within the communities

•

The commercial centers in the communities, including those retail properties that we own and/or operate

•

Our relationships with homebuilders

•

The proximity to major metropolitan areas

Environmental Matters

        Under various Federal, state and local laws and regulations, an owner of real estate is liable for the costs of removal or remediation of certain hazardous or toxic substances on such real estate. These laws often impose such liability without regard to whether the owner knew of, or was responsible for, the presence of such hazardous or toxic substances. The costs of remediation or removal of such substances may be substantial, and the presence of such substances, or the failure to promptly remediate such substances, may adversely affect the owner's ability to sell such real estate or to borrow using such real estate as collateral. In connection with our ownership and operation of our properties, we, or the relevant joint venture through which the property is owned, may be potentially liable for such costs.

        Substantially all of our properties have been subject to Phase I environmental assessments, which are intended to evaluate the environmental condition of the surveyed and surrounding properties. The Phase I environmental assessments included a historical review, a public records review, a preliminary investigation of the site and surrounding properties, screening for the presence of asbestos, polychlorinated biphenyls ("PCBs") and underground storage tanks and the preparation and issuance of a written report, but do not include soil sampling or subsurface investigations. A Phase II assessment, when necessary, was conducted to further investigate any issues raised by the Phase I assessment. In each case where Phase I and/or Phase II assessments resulted in specific recommendations for remedial actions required by law, management has either taken or scheduled the recommended action.

        Neither the Phase I nor the Phase II assessments have revealed any environmental liability that we believe would have a material adverse effect on our overall business, financial condition or results of operations. Nevertheless, it is possible that these assessments do not reveal all environmental liabilities or that there are material environmental liabilities of which we are unaware. Moreover, no assurances can be given that future laws, ordinances or regulations will not impose any material environmental liability or the current environmental condition of our properties will not be adversely affected by tenants and occupants of the properties, by the condition of properties in the vicinity of our properties (such as the presence on such properties of underground storage tanks) or by third parties unrelated to us.

        Future development opportunities may require additional capital and other expenditures in order to comply with federal, state and local statutes and regulations relating to the protection of the environment. However, we may not have sufficient liquidity to comply with such statutes and regulations and may be required to halt or defer such development projects. We cannot predict with any certainty the magnitude of any such expenditures or the long-range effect, if any, on our operations. Compliance with such laws has not had a material adverse effect on our operating results or competitive position in the past but could have such an effect in the future.

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Employees

        As of December 31, 2009, we had approximately 3,200 employees.

Qualification as a Real Estate Investment Trust and Taxability of Distributions

        GGP currently qualifies as a real estate investment trust pursuant to the requirements contained in Sections 856-858 of the Internal Revenue Code of 1986, as amended (the "Code"). If, as we contemplate, such qualification continues, GGP will not be subject to Federal tax on its real estate investment trust taxable income. During 2009, GGP met its distribution requirements to its common stockholders as provided for in Section 857 of the Code (Notes 1 and 7).

Available Information

        Our Internet website address is www.ggp.com. Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Interactive Data Files, Current Reports on Form 8-K and amendments to those reports are available and may be accessed free of charge through the Investment section of our Internet website under the Shareholder Info subsection, as soon as reasonably practicable after those documents are filed with, or furnished to, the SEC. Our Internet website and included or linked information on the website are not intended to be incorporated into this Annual Report.

        As a result of our Chapter 11 filing, we are now required to periodically file various documents with, and provide certain information to, the Bankruptcy Court, including statements of financial affairs, schedules of assets and liabilities, and monthly operating reports in forms prescribed by Chapter 11 or the U. S. Trustee, as well as certain financial information on an unconsolidated basis. Such materials will be prepared according to requirements of Chapter 11. While we believe that these documents and reports provide then-current information required under Chapter 11, they are prepared only for the Debtors and, hence, certain operational entities are excluded. In addition, they are prepared in a format different from that used in this Annual Report and other reports we file with the SEC and there has not been and there will not be any association of our independent registered public accounting firm with such information. Accordingly, we believe that the substance and format of our bankruptcy related filed reports do not allow meaningful comparison with our regular publicly-disclosed consolidated financial statements. Moreover, the materials filed with the Bankruptcy Court are not prepared for the purpose of providing a basis for an investment decision relating to our securities, or for comparison with other financial information filed with the SEC.

ITEM 1A.    RISK FACTORS

BANKRUPTCY RISKS

We filed for protection under Chapter 11 of the Bankruptcy Code

        As more fully described in Item 1 Business, the Debtors filed voluntary petitions to reorganize under Chapter 11 on April 16 and April 22, 2009. As of December 31, 2009, the Track 1A Debtors have emerged from bankruptcy protection pursuant to confirmed plans of reorganization. The Chapter 11 Cases relating to certain Track 1 Debtors and the 2010 Track Debtors, however, are still pending. During the remaining Chapter 11 Cases, we plan to continue to operate our business as it relates to these Debtors as debtors-in-possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of Chapter 11. Our operations, including our ability to execute our business plan, are subject to the risks and uncertainties associated with the continuing bankruptcy proceedings of certain Debtors, including, but not limited to, the following:

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Actions and decisions of our creditors and other third parties with interests in our remaining Chapter 11 Cases may be inconsistent with our plans

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We may be unable to obtain Bankruptcy Court approval with respect to motions in the remaining Chapter 11 Cases that we believe are in the best interests of the Company

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We may be unable to successfully develop, prosecute, confirm and consummate a plan or plans of reorganization with respect to the Chapter 11 Cases for the Remaining Secured Debtors or TopCo Debtors (the "TopCo Plan of Reorganization")

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We may encounter third parties seeking and obtaining Bankruptcy Court approval to terminate or shorten the exclusive periods for us to propose and confirm a plan of reorganization for the 2010 Track Debtors, to appoint a Chapter 11 trustee or to convert the remaining Chapter 11 Cases to a case under Chapter 7 of the Bankruptcy Code

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We may not be able to satisfy the REIT distribution requirements and therefore be unable to remain qualified as a REIT

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Our access to capital to fund ongoing business operations, fund emergence costs or initiate or continue development or redevelopment at our properties may be limited

        The ultimate impact that events that occur during the bankruptcy proceedings will have on our business, financial condition and results of operations cannot be predicted or quantified.

Our DIP Credit Agreement may not provide sufficient liquidity during the remaining Chapter 11 Cases

        In the event that cash flows and borrowings under the DIP Credit Agreement are not sufficient to meet our liquidity requirements, including the emergence costs for the Track 1 Debtors, we may be required to seek additional financing. There can be no assurance that such additional financing would be available or, if available, would be offered on acceptable terms. Failure to secure any necessary additional financing would have a material adverse impact on our operations and ongoing viability.

Operating under Chapter 11 may restrict our ability to pursue our business strategies

        Under Chapter 11, transactions outside the ordinary course of business will be subject to the prior approval of the Bankruptcy Court, which may limit our ability to respond in a timely manner to certain events or take advantage of certain opportunities. We must obtain Bankruptcy Court approval to, among other things:

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Engage in certain transactions with our tenants

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Sell assets outside the ordinary course of business

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Consolidate, merge, sell or otherwise dispose of all or substantially all of our assets

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Grant liens

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Finance our operations, investments or other capital needs or to engage in other business activities that would be in our interest

The pursuit of the Chapter 11 Cases has consumed and will consume a substantial portion of the time and attention of our corporate management and will impact how our business is conducted, which may have an adverse effect on our business and results of operations

        The requirements of the Chapter 11 Cases has consumed and will continue to consume a substantial portion of our corporate management's time and attention and leave them with less time to devote to the operations of our business. Our management has spent considerable time developing the emergence plans for the Track 1 Debtors and the 2010 Track Debtors and the business plan for the Company. This diversion of corporate management's attention may have a material adverse effect on the conduct of our business, and, as a result, on our financial condition and results of operations, particularly if the Chapter 11 Cases are protracted.

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Our employees are facing considerable distractions and uncertainty due to the Chapter 11 Cases

        As a result of the Chapter 11 Cases, our employees are facing considerable distractions and uncertainty. A material erosion of employee morale could have a material adverse effect on our business, particularly if the Chapter 11 Cases are protracted.

The Company's business could suffer from the Chapter 11 Cases

        The Chapter 11 Cases may negatively impact the operations of the Company. While the potential negative impact cannot be predicted or quantified, risks include:

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Our ability to retain and/or renew existing tenants and/or to obtain favorable lease terms may be hampered

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We may be unable to build new tenant relationships and desirable new tenants may have concerns about entering into leases at our properties

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Our ability to obtain and maintain commercially reasonable terms with vendors, strategic partners and service providers may be hampered

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Our ability to obtain and maintain contracts necessary to continue our operations at affordable rates with competitive terms may be impaired

The Company's businesses could suffer from a long and protracted restructuring

        The Company's future results are dependent upon the successful filing, confirmation and implementation of plans of reorganization for the 2010 Track Debtors. Failure to complete the reorganization process in a timely manner could adversely affect the Company's operating results, including its relationships with tenants and suppliers. If a liquidation or protracted reorganization were to occur, there is a significant risk that the value of the Company's enterprise would be substantially eroded to the detriment of all stakeholders.

        Furthermore, the Company cannot predict the ultimate amount of all settlement terms for the Debtors' liabilities that will be subject to a plan of reorganization. Even once a plan of reorganization is implemented, the Company's operating results may be adversely affected by the possible reluctance of prospective lenders, tenants, and suppliers to do business with a company that recently emerged from bankruptcy proceedings.

Our ability to emerge from the Chapter 11 Cases will depend on obtaining sufficient exit financing or capital or the pursuit of a change of control transaction

        For the TopCo Plan of Reorganization to be effective, we will need to obtain and demonstrate the sufficiency of exit financing or capital to fund the remaining emergence costs of the Track 1 Debtors and the emergence costs of the 2010 Track Debtors. In addition to funding ongoing operational needs, exit financing or capital must be sufficient to fund certain emergence costs of the Track 1 Debtors as well as the TopCo Debtors to the extent existing cash reserves or operating cash flows are not sufficient. We cannot presently determine the final terms of such financing, nor can there be any assurances of our success in obtaining it. In addition to pursuing traditional and non-traditional forms of exit financing or capital, we also intend to explore potential merger and acquisition or other change of control transactions with financial and strategic investors. Failure to obtain exit financing or capital or conclude a change of control transaction may further delay the emergence of the 2010 Track Debtors from bankruptcy protection.

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LIQUIDITY RISKS

We may not have sufficient cash to maintain our operations and fund our emergence costs

        As discussed above under "Bankruptcy Risks," our DIP Credit Facility may not provide sufficient liquidity during the remaining Chapter 11 Cases and exit financing or capital may not be sufficient to support our operations post-emergence. Our operating cash flows and exit financing or capital may not be sufficient to pay our debt as it comes due, interest on our debt, emergence costs and other operating expenses. We face significantly higher operating expenses due in part to payments to our financial and legal advisors, as well as fees and other amounts payable to our lenders in connection with loan restructurings. Because we have limited short-term sources of cash, in the event such sources are insufficient to fund our needs, we may be unable to successfully emerge from bankruptcy or implement our plan of reorganization.

We may be subject to claims that will not be discharged in the Chapter 11 Cases

        The Bankruptcy Code provides that the confirmation of a plan of reorganization discharges a debtor from substantially all debts arising prior to confirmation and specified debts arising afterwards. With few exceptions, all claims that arose prior to the Petition Date and before confirmation of the plan of reorganization (i) would be subject to compromise and/or treatment under the plan of reorganization or (ii) would be discharged in accordance with the Bankruptcy Code and the terms of the plan of reorganization. We currently do not believe that the aggregate amount of claims that will not be subject to treatment under the plan of reorganization or not discharged, will be material, although such aggregate amount are not expected to have a material adverse effect on our liquidity position.

We may not be able to raise capital through the sale of properties

        Our ability to sell our properties to raise capital is limited. The retail economic climate negatively affects the value of our properties and therefore reduces our ability to sell these properties on acceptable terms. Our ability to sell our properties is also negatively affected by the weakness of the credit markets, which increases the cost and difficulty for potential purchasers to acquire financing, as well as by the illiquid nature of real estate. Finally, our Chapter 11 Cases may encourage potential purchasers to offer less attractive terms for our properties and may delay any potential sale transaction and any such transaction contemplated by a Debtor must be approved by the Bankruptcy Court. See "Business Risks" for a further discussion of the effects of the retail economic climate on our properties, as well as the illiquid nature of our investments in our properties.

        We have a low tax basis in many of our properties relative to the fair market value of such properties. As a result of this low tax basis, we could recognize a substantial taxable gain upon the sale of such properties, which would impact the amount of net proceeds we would retain from any such sales as a result of the REIT distribution requirements.

We may not be able to refinance, extend or repay our portion of substantial indebtedness at our Unconsolidated Properties, which could have a material adverse affect on our business, financial condition, results of operations and common stock price

        Our Unconsolidated Properties have a substantial amount of debt which they not be able to extend, refinance or repay. As of December 31, 2009, our share of indebtedness secured by our Unconsolidated Properties was $3.12 billion (Note 5). There can be no assurance that our Unconsolidated Properties will be able to refinance or extend their debt on acceptable terms or otherwise. The ability to refinance this debt is negatively affected by the current condition of the credit markets, which have significantly reduced the levels of capacity of commercial lending. The ability to successfully refinance or extend this debt may also be negatively affected by our bankruptcy

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proceedings as well as the real or perceived decline in the value of our Unconsolidated Properties based on general and retail economic conditions, as discussed further below.

Our substantial indebtedness adversely affects our financial health and operating flexibility

        Our indebtedness could have important consequences to us and the value of our common stock, including:

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Limiting our ability to borrow additional amounts for working capital, capital expenditures, debt service requirements, execution of our business strategy or other purposes

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Limiting our ability to use operating cash flow in other areas of our business or to pay dividends because we must dedicate a substantial portion of these funds to service debt

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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

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Limiting our ability to capitalize on business opportunities and to react to competitive pressures and adverse changes in government regulation

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Limiting our ability or increasing the costs to refinance indebtedness

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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

Refinanced debt contains restrictions and less attractive covenants

        We have refinanced $10.65 billion of secured mortgage debt since the Petition Date. The terms of certain debt require us to satisfy certain customary affirmative and negative covenants and to meet financial ratios and tests, including ratios and tests based on leverage, interest coverage and net worth. The covenants and other restrictions under our debt agreements affect, among other things, our ability to:

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Incur indebtedness

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Create liens on assets

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Sell assets

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Manage our cash flows

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Transfer assets to other subsidiaries

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Make capital expenditures

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Engage in mergers and acquisitions

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Make distributions to equity holders, including holders of our common stock

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        Due to the current lending environment, our bankruptcy proceedings, our financial condition and general economic factors, this refinanced debt contains certain terms which are less attractive than the terms contained in the debt being refinanced. Such terms include more restrictive operational and financial covenants, restrictions on the distribution of cash flows from properties serving as collateral for the debt and higher fees and, in certain instances, higher interest rates. These fees and cash flow restrictions may affect our ability to fund our on-going operations from our operating cash flows and we may be significantly limited in our operating and financial flexibility and thus may be limited in our ability to respond to changes in our business or competitive activities.

COMMON STOCK RISKS

Trading in our securities during the pendency of the Chapter 11 Cases is highly speculative and poses substantial risks. It is possible our common stock will be cancelled and that holders of such common stock will not receive any distribution with respect to, or be able to recover any portion of, their investments

        It is not possible to determine if the TopCo Plan of Reorganization will allow for distributions with respect to our common stock and other outstanding equity interests. It is possible that these equity interests will be cancelled and extinguished upon the approval of the Bankruptcy Court and the holders thereof would not be entitled to receive, and would not receive or retain, any property or interest in property on account of such equity interests. In the event of a cancellation of these equity interests, amounts invested by such holders in our outstanding equity securities will not be recoverable. Consequently, our currently outstanding common stock would have no value. Trading prices for our common stock are very volatile and may bear little or no relationship to the actual recovery, if any, by the holders of such securities in the Chapter 11 Cases. Accordingly, we urge that extreme caution be exercised with respect to existing and future investments in our equity securities and any of our other securities.

Our common stock was delisted from the Exchange and is not listed on any other national securities exchange

        On April 17, 2009, the Company's common stock began trading in the over the counter market in the Pink Sheets under the symbol GGWPQ. The last day that the Company's common stock traded on the Exchange was April 16, 2009.

        We can provide no assurance that we will be able to re-list our common stock on a national securities exchange or that the stock will continue being traded on the Pink Sheets. The trading of our common stock on the Pink Sheets rather than the Exchange may negatively impact the trading price of our common stock and the levels of liquidity available to our stockholders. In addition, securities that trade on the Pink Sheets are not eligible for margin loans and make our common stock subject to the provisions of Rule 15g-9 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), commonly referred to as the "penny stock rule."

Risks of trading in an over the counter market

        Securities traded in the over-the-counter market generally have significantly less liquidity than securities traded on a national securities exchange, through factors such as a reduction in the number of investors that will consider investing in the securities, the number of market makers in the securities, reduction in securities analyst and news media coverage and lower market prices than might otherwise be obtained. As a result, holders of shares of our common stock may find it difficult to resell their shares at prices quoted in the market or at all. Furthermore, because of the limited market and generally low volume of trading in our common stock that could occur, the share price of our common stock could be more likely to be affected by broad market fluctuations, general market conditions, fluctuations in our operating results, changes in the markets perception of our business, and announcements made by us, our competitors or parties with whom we have business relationships. With

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respect to the Company, in some cases, we may be subject to additional compliance requirements under applicable state laws in the issuance of our securities. The lack of liquidity in our common stock may also make it difficult for us to issue additional securities for financing or other purposes, or to otherwise arrange for any financing we may need in the future.

If holders of common stock recover any portion of their investment they may be subject to substantial dilution as a result of future issuances of our common stock

        We may issue common stock to satisfy creditors of the TopCo Debtors and the TopCo Plan of Reorganization may include an equity-based incentive compensation plan. The amount and dilutive effect of any such issuance can not be determined at this time.

        We may also issue shares of our common stock to meet our obligations under the Contingent Stock Agreement under which we assumed the obligations of TRC to the beneficiaries thereunder (the "CSA"). In addition, we have reserved a number of shares of common stock for issuance under our restricted stock and option plans for employees and directors and in connection with certain other obligations, including convertible debt and these shares will be available for sale from time to time. Finally, we issued approximately 4.9 million shares of common stock as a taxable stock dividend in order to satisfy the requirements for qualification of a REIT and we currently expect to continue to issue taxable stock dividends to satisfy the requirements for REIT qualification.

BUSINESS RISKS

Economic conditions, especially in the retail sector, may have an adverse affect on our revenues and available cash

        General and retail economic conditions continue to be weak, and we do not expect a near term return to the economic conditions that prevailed in 2007. High unemployment, weak income growth, tight credit and the need to pay down existing debt are expected to continue to negatively impact consumer spending. Given these economic conditions, we believe there is a significant risk that the sales of stores operating in our centers will either not improve, or will improve slowly which will have the following negative effect on our operations:

        Ability to lease and collect rent.    Our results of operations depend on our ability to continue to lease space in our properties on economically favorable terms. If the sales of certain stores operating in our centers do not improve sufficiently, tenants might be unable to pay their existing minimum rents or expense recovery charges, since these rents and charges would represent a higher percentage of their sales. If our tenants' sales do not improve, new tenants would be less likely to be willing to pay minimum rents as high as they would otherwise pay. In addition, as substantially all of our income is derived from rentals of real property, our income and cash available for debt service, operations or distribution to our stockholders would be adversely affected if a significant number of tenants were unable to meet their obligations to us.

        Bankruptcy or store closures of tenants.    Our leases generally do not contain provisions designed to ensure the creditworthiness of the tenant, and a number of companies in the retail industry, including some of our tenants, have declared bankruptcy or voluntarily closed certain of their stores in recent years. The bankruptcy or closure of a major tenant, particularly an Anchor, may have a material adverse effect on the retail properties affected and the income produced by these properties and may make it substantially more difficult to lease the remainder of the affected retail properties. As a result, the bankruptcy or closure of a major tenant and potential additional closures as a result of co-tenancy requirements could result in a lower level of revenues and cash available.

        Department store productivity.    Department store consolidations, as well as declining sales productivity in certain instances, are resulting in the closure of existing department stores and we may

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be unable to re-lease this area or to re-lease it on comparable or more favorable terms. Other tenants may be entitled to modify the terms of their existing leases, including those pertaining to rent payment, in the event of such closures. Additionally, department store closures could result in decreased customer traffic which could lead to decreased sales at other stores.

        Ability to attract new tenants.    The factors described above not only affect our current tenants and operations, but also affect our ability to attract new tenants.

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

        Equity real estate investments are relatively illiquid, and this characteristic tends to limit our ability to vary our portfolio promptly in response to changes in economic or other conditions. In addition, significant expenditures associated with each equity investment, such as mortgage payments, real estate taxes and maintenance costs, are generally not reduced when circumstances cause a reduction in income from the investment. If income from a property declines while the related expenses do not decline, our income and cash available to us would be adversely affected. If it becomes necessary or desirable for us to dispose of one or more of the mortgaged properties, we might not be able to obtain a release of the lien on the mortgaged property without payment of the associated debt. The foreclosure of a mortgage on a property or inability to sell a property could adversely affect the level of cash available to us.

        If we have a change in control, as defined in section 382 of the Code, our ability to use our net operating loss and interest expense carryforwards to offset future cash taxes may be reduced or eliminated. The significant stock activity we have recently experienced and the possibility of issuing additional equity to address our liquidity needs increases the risk of this provision impacting us in the future.

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

        Real property investments are subject to varying degrees of risk that may affect the ability of our properties to generate sufficient revenues. A number of factors may decrease the income generated by a retail property, including:

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The regional and local economy, which may be negatively impacted by plant closings, industry slowdowns, adverse weather conditions, natural disasters and other factors

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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

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Perceptions by retailers or shoppers of the safety, convenience and attractiveness of the retail property

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The convenience and quality of competing retail properties and other retailing options such as the internet

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Changes in laws and regulations applicable to real property, including tax and zoning laws

        Our Master Planned Communities are also affected by some of the above factors, as well as the significant weakening of the housing market which began in 2007 and is expected to continue.

        If we are unable to generate sufficient revenue from our properties, including those held by joint ventures, we will be unable to meet operating and other expenses, including debt service, lease payments, capital expenditures and tenant improvements, and to make distributions from our joint ventures and then, in turn, to our stockholders.

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

        Although we have significantly reduced our development and expansion activities, certain development and expansion projects will be undertaken. In connection with any development or expansion, we will be subject to various risks, including the following:

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We may abandon development or expansion activities already under way, which may result in additional cost recognition

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Construction costs of a project may exceed original estimates or available financing, possibly making the project unfeasible or unprofitable

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We may not be able to obtain zoning, occupancy or other required governmental permits and authorizations

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Occupancy rates and rents at a completed project may not meet projections and, therefore, the project may not be profitable

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We may not be able to obtain Anchor, mortgage lender and property partner approvals, if applicable, for expansion or redevelopment activities

        If a development project is unsuccessful, our investment in the project may not be fully recoverable from future operations or sale.

We may incur costs to comply with environmental laws

        Under various federal, state or local laws, ordinances and regulations, a current or previous owner or operator of real estate may be required to investigate and clean up hazardous or toxic substances released at a property, and may be held liable to a governmental entity or to third parties for property damage or personal injuries and for investigation and clean-up costs incurred by the parties in connection with the contamination. These laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release of the hazardous or toxic substances. The presence of contamination or the failure to remediate contamination may adversely affect the owner's ability to sell or lease real estate or to borrow using the real estate as collateral. Other federal, state and local laws, ordinances and regulations require abatement or removal of asbestos-containing materials in the event of demolition or certain renovations or remodeling, the cost of which may be substantial for some of our redevelopments, and also govern emissions of and exposure to asbestos fibers in the air. Federal and state laws also regulate the operation and removal of underground storage tanks. In connection with the ownership, operation and management of our properties, we could be held liable for the costs of remedial action with respect to these regulated substances or tanks or related claims.

        Our properties have been subjected to varying degrees of environmental assessment at various times. However, the identification of new areas of contamination, a change in the extent or known scope of contamination or changes in cleanup requirements could result in significant costs to us.

We are in a competitive business

        There are numerous shopping facilities that compete with our properties in attracting retailers to lease space. Our Chapter 11 Cases may impair the desirability and competitiveness of our shopping facilities. In addition, retailers at our properties face continued competition from retailers at other regional shopping centers, including outlet malls and other discount shopping centers, discount shopping clubs, catalog companies, internet sales and telemarketing. Competition of this type could adversely affect our revenues and cash available for repayment of our debt and distribution to our stockholders.

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        We compete with other major real estate investors with significant capital for attractive investment opportunities. These competitors include other REITs, investment banking firms and private institutional investors.

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

        A number of our properties are located in areas which are subject to natural disasters. For example, two of our properties, located in the New Orleans area, suffered major hurricane and/or vandalism damage in 2005. It is uncertain as to whether the New Orleans area will recover to its prior economic strength. Certain of our properties are located in California or in other areas with higher risk of earthquakes. In addition, many of our properties are located in coastal regions, and would therefore be affected by any future increases in sea levels or in the frequency or severity of hurricanes and tropical storms, whether such increases are caused by global climate changes or other factors.

Possible terrorist activity or other acts of violence could adversely affect our financial condition and results of operations

        Future terrorist attacks in the United States, and other acts of violence, including terrorism or war, might result in declining economic activity, which could harm the demand for goods and services offered by our tenants and the value of our properties and might adversely affect the value of an investment in our securities. A decrease in retail demand could make it difficult for us to renew or re–lease our properties at lease rates equal to or above historical rates. Terrorist activities or violence also could directly affect the value of our properties through damage, destruction or loss, and the availability of insurance for such acts, or of insurance generally, might be lower, or cost more, which could increase our operating expenses and adversely affect our financial condition and results of operations. To the extent that our tenants are affected by future attacks, their businesses similarly could be adversely affected, including their ability to continue to meet obligations under their existing leases. These acts might erode business and consumer confidence and spending, and might result in increased volatility in national and international financial markets and economies. Any one of these events might decrease demand for real estate, decrease or delay the occupancy of our new or redeveloped properties, and limit our access to capital or increase our cost of raising capital.

Some potential losses are not insured

        We carry comprehensive liability, fire, flood, earthquake, terrorism, extended coverage and rental loss insurance on all of our properties. We believe the policy specifications and insured limits of these policies are adequate and appropriate. There are, however, some types of losses, including lease and other contract claims, which generally are not insured. If an uninsured loss or a loss in excess of insured limits occurs, we could lose all or a portion of the capital we have invested in a property, as well as the anticipated future revenue from the property. If this happens, we might nevertheless remain obligated for any mortgage debt or other financial obligations related to the property.

Inflation may adversely affect our financial condition and results of operations

        Should inflation increase in the future, we may experience any or all of the following:

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Decreasing tenant sales as a result of decreased consumer spending which could result in lower Overage Rent

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Difficulty in replacing or renewing expiring leases with new leases at higher base and/or Overage Rent

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An inability to receive reimbursement from our tenants for their share of certain operating expenses, including common area maintenance, real estate taxes and insurance

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        Inflation also poses a potential threat to us due to the probability of future increases in interest rates. Such increases would adversely impact us due to our outstanding variable-rate debt as well as result in higher interest rates on new fixed-rate debt.

We have certain ownership interests outside the United States which may increase in relative significance over time

        We hold interests in joint venture properties in Brazil, Turkey and Costa Rica. International development and ownership activities carry additional risks that are different from those we face with our domestic properties and operations. These additional risks include:

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Difficulties in managing international operations

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Changes in foreign political environments, regionally, nationally, and locally

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Challenges of complying with a wide variety of foreign laws including corporate governance, operations, taxes and litigation

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Differing lending practices

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Differences in cultures

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Adverse effects of changes in exchange rates for foreign currencies

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Changes in applicable laws and regulations in the United States that affect foreign operations

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Obstacles to the repatriation of earnings and cash

        Although our international activities currently are a relatively small portion of our business (international properties represented less than approximately one percent of the NOI of all of our properties in 2009), to the extent that we expand our international activities, these additional risks could increase in significance and adversely affect our results of operations and financial condition.

ORGANIZATIONAL RISKS

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

        Substantially all of our assets are owned through our general partnership interest in the Operating Partnership, including The Rouse Company LP ("TRCLP"). The Operating Partnership holds substantially all of its properties and assets through subsidiaries, including subsidiary partnerships, limited liability companies and corporations that have elected to be taxed as REITs. The Operating Partnership therefore derives substantially all of its cash flow from cash distributions to it by its subsidiaries, and we, in turn, derive substantially all of our cash flow from cash distributions to us by the Operating Partnership. The creditors and preferred security holders, if any, of each of our direct and indirect subsidiaries are entitled to payment of that subsidiary's obligations to them, when due and payable, before that subsidiary may make distributions to us. Thus, the Operating Partnership's ability to make distributions to its partners, including us, depends on its subsidiaries' ability first to satisfy obligations to their creditors and preferred security holders, if any, and then to make distributions to the Operating Partnership. Similarly, our ability to pay dividends to holders of our common stock depends on the Operating Partnership's ability first to satisfy its obligations to its creditors and preferred security holders and then to make distributions to us.

        In addition, we will have the right to participate in any distribution of the assets of any of our direct or indirect subsidiaries upon the liquidation, reorganization or insolvency of the subsidiary only after the claims of the creditors, including trade creditors, and preferred security holders, if any, of the subsidiary are satisfied. Our common stockholders, in turn, will have the right to participate in any

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distribution of our assets upon the liquidation, reorganization or insolvency of us only after the claims of our creditors, including trade creditors, and preferred security holders, if any, are satisfied.

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

        While we generally make all operating decisions for the Unconsolidated Properties, we are required to make other decisions with the other investors who have interests in the relevant property or properties. For example, the approval of certain of the other investors is required with respect to operating budgets and refinancing, encumbering, expanding or selling any of these properties, as well as to bankruptcy decisions related to the Unconsolidated Properties and related joint ventures. We might not have the same interests as the other investors in relation to these transactions. Accordingly, we might not be able to favorably resolve any of these issues, or we might have to provide financial or other inducement to the other investors to obtain a favorable resolution.

        In addition, various restrictive provisions and rights apply to sales or transfers of interests in our jointly owned properties. These may work to our disadvantage because, among other things, we might be required to make decisions about buying or selling interests in a property or properties at a time that is disadvantageous to us.

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

        The bankruptcy of one of the other investors in any of our jointly owned shopping centers could materially and adversely affect the relevant property or properties. Under the bankruptcy laws, we would be precluded from taking some actions affecting the estate of the other investor without prior approval of the bankruptcy court, which would, in most cases, entail prior notice to other parties and a hearing in the bankruptcy court. At a minimum, the requirement to obtain court approval may delay the actions we would or might want to take. If the relevant joint venture through which we have invested in a property has incurred recourse obligations, the discharge in bankruptcy of one of the other investors might result in our ultimate liability for a greater portion of those obligations than we would otherwise bear.

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

        We own properties through partnerships which have arrangements in place that protect the deferred tax situation of our existing third party limited partners. Violation of these arrangements could impose costs on us. As a result, we may be restricted with respect to decisions such as financing, encumbering, expanding or selling these properties.

        Several of our joint venture partners are tax-exempt. As such, they are taxable to the extent of their share of unrelated business taxable income generated from these properties. As the managing partner in these joint ventures, we have obligations to avoid the creation of unrelated business taxable income at these properties. As a result, we may be restricted with respect to decisions such as financing and revenue generation with respect to these properties.

We may not maintain our status as a REIT

        One of the requirements of the Code for a REIT generally is that it distribute or pay tax on 100% of its capital gains and distribute at least 90% of its ordinary taxable income to its stockholders. We may not have sufficient liquidity to meet these distribution requirements.

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        If, with respect to any taxable year, we fail to maintain our qualification as a REIT, we would not be allowed to deduct distributions to stockholders in computing our taxable income and federal income tax. The corporate level income tax, including any applicable alternative minimum tax, would apply to our taxable income at regular corporate rates. As a result, the amount available for distribution to stockholders would be reduced for the year or years involved, and we would no longer be required to make distributions. In addition, unless we were entitled to relief under the relevant statutory provisions, we would be disqualified from treatment as a REIT for four subsequent taxable years.

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

        The ownership limit.    Generally, for us to maintain our qualification as a REIT under the Code, not more than 50% in value of the outstanding shares of our capital stock may be owned, directly or indirectly, by five or fewer individuals at any time during the last half of our taxable year. The Code defines "individuals" for purposes of the requirement described in the preceding sentence to include some types of entities. In general, under our current certificate of incorporation, no person other than Martin Bucksbaum (deceased), Matthew Bucksbaum, their families and related trusts and entities, including M.B. Capital Partners III, may own more than 7.5% of the value of our outstanding capital stock. However, our certificate of incorporation also permits our company to exempt a person from the 7.5% ownership limit upon the satisfaction of certain conditions which are described in our certificate of incorporation.

        Selected provisions of our charter documents.    Our board of directors is divided into three classes of directors. Directors of each class are chosen for three-year staggered terms. Staggered terms of directors may reduce the possibility of a tender offer or an attempt to change control of our company, even though a tender offer or change in control might be in the best interest of our stockholders. Our charter authorizes the board of directors:

•

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

•

To set the preferences, rights and other terms of any classified or reclassified stock that we issue

        Stockholder rights plan.    We have a stockholder rights plan which will impact a potential acquirer unless the acquirer negotiates with our board of directors and the board of directors approves the transaction.

        Selected provisions of Delaware law.    We are a Delaware corporation, and Section 203 of the Delaware General Corporation Law applies to us. In general, Section 203 prevents an "interested stockholder," as defined in the next sentence, from engaging in a "business combination," as defined in the statute, with us for three years following the date that person becomes an interested stockholder unless one or more of the following occurs:

•

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 of the Company and by employee

21

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

•

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

        The statute defines "interested stockholder" to mean generally any person that is the owner of 15% or more of our outstanding voting stock or is an affiliate or associate of us and was the owner of 15% or more of our outstanding voting stock at any time within the three-year period immediately before the date of determination.

        Each item discussed above may delay, deter or prevent a change in control of our Company, even if a proposed transaction is at a premium over the then current market price for our common stock. Further, these provisions may apply in instances where some stockholders consider a transaction beneficial to them. As a result, our stock price may be negatively affected by these provisions.

FORWARD-LOOKING INFORMATION

        We may make forward-looking statements in this Annual Report and in other reports which we file with the SEC or with the Bankruptcy Court. In addition, our senior management might make forward-looking statements orally to analysts, investors, the media and others.

        Forward-looking statements include:

•

Descriptions of plans or objectives of our management for plans of reorganization, debt repayment or restructuring, modification, extension; strategic alternatives, including capital raises and asset sales; and future operations

•

Projections of our revenues, income, earnings per share, Funds From Operations ("FFO" as defined below), capital expenditures, income tax and other contingent liabilities, dividends, leverage, capital structure or other financial items

•

Forecasts of our future economic performance

•

Descriptions of assumptions underlying or relating to any of the foregoing

        In this Annual Report, for example, we make forward-looking statements discussing our expectations about:

•

The resolution of our remaining Chapter 11 cases, including the TopCo Debtors, the proposed and already confirmed plans of reorganization of our Debtors and liquidity

•

Capital required for the TopCo Debtors emergence from bankruptcy

•

Sales of properties

•

Expected sales of our Master Planned Communities segment

•

Future development, management and leasing fees

•

Distributions pursuant to the Contingent Stock Agreement

•

Future cash needed to meet federal income tax requirements

•

Future development spending

        Forward-looking statements discuss matters that are not historical facts. Because they discuss future events or conditions, forward-looking statements often include words such as "anticipate,"

22

"believe," "estimate," "expect," "intend," "plan," "project," "target," "can," "could," "may," "should," "will," "would" or similar expressions. Forward-looking statements should not be unduly relied upon. They give our expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made and we might not update them to reflect changes that occur after the date they are made.

        There are several factors, many beyond our control, which could cause results to differ significantly from our expectations. Factors such as our bankruptcy proceedings, credit, market, operational, liquidity, interest rate and other risks are described elsewhere in this Annual Report. Any factor described in this Annual Report could by itself, or together with one or more other factors, adversely affect our business, results of operations or financial condition. There are also other factors that we have not described in this Annual Report that could cause results to differ from our expectations.

ITEM 1B.    UNRESOLVED STAFF COMMENTS

        None.

ITEM 2.    PROPERTIES

        Our investment in real estate as of December 31, 2009 consisted of our interests in the properties in our Retail and Other and Master Planned Communities segments. We generally own the land underlying the properties in our Retail and Other segment. However, at certain of the Retail and Other segment properties, all or part of the underlying land is owned by a third party that leases the land to us pursuant to a long-term ground lease. The leases generally contain various purchase options and typically provide us with a right of first refusal in the event of a proposed sale of the property by the landlord. We own the land in the Master Planned Community Segment. Information regarding encumbrances on the Retail and Other segment properties and Master Planned Communities properties is included in Schedule III of this Annual Report.

        The following tables set forth certain information regarding the Consolidated Properties and the Unconsolidated Properties in our Retail Portfolio as of December 31, 2009. These tables do not reflect subsequent activity in 2010. Anchors include all department stores or other large retail stores with GLA (measured in square feet) greater than 30,000 square feet. Significant tenants includes certain large retail stores that are approximately 10,000 square feet. Combined occupancy for Consolidated Properties and Unconsolidated Properties as of December 31, 2009 was 91.6%.

23

CONSOLIDATED RETAIL PROPERTIES

			GLA
Property Count	Name of Center	Location(1)	Total		Mall and Freestanding		Anchors/Significant Tenants	Anchor/Significant Tenant Vacancies
1	Ala Moana Center(2)	Honolulu, HI		2,072,288		925,680	Barnes & Noble, Macy's, Neiman Marcus, Old Navy, Sears, Shirokiya, Nordstrom		—
2	Alameda Plaza	Pocatello, ID		190,341		190,341	Bob's Intermountain Marine		1
3	Anaheim Crossing(2)(3)	Anaheim, CA		92,170		92,170	Fullerton Toyota		—
4	Animas Valley Mall	Farmington, NM		462,834		213,369	Allen Theatres, Dillard's, JCPenney, Ross Dress For Less, Sears		—
5	Apache Mall(2)	Rochester, MN		752,795		269,803	Herberger's, JCPenney, Macy's, Sears		—
6	Arizona Center(2)	Phoenix, AZ		165,452		72,698	AMC Theatres		—
7	Augusta Mall(2)	Augusta, GA		1,063,162		402,939	Dillard's, JCPenney, Macy's, Sears, Dick's Sporting Goods		—
8	Austin Bluffs Plaza	Colorado Springs, CO		109,402		109,402	—		—
9	Bailey Hills Village	Eugene, OR		11,887		11,887	—		—
10	Baskin Robbins	Idaho Falls, ID		1,814		1,814	—		—
11	Bay City Mall	Bay City, MI		522,652		207,001	JCPenney, Sears, Target, Younkers, Dunham Sports		—
12	Baybrook Mall	Friendswood (Houston), TX		1,242,887		342,278	Dillard's, Forever 21, JCPenney, Macy's, Sears		—
13	Bayshore Mall(2)	Eureka, CA		612,950		392,692	Bed Bath & Beyond, Kohl's (4), Sears		1
14	Bayside Marketplace(2)	Miami, FL		219,115		219,115	Hard Rock Café		—
15	Beachwood Place	Beachwood, OH		913,443		333,863	Dillard's, Nordstrom, Saks Fifth Avenue		—
16	Bellis Fair	Bellingham (Seattle), WA		773,895		335,571	JCPenney, Kohl's, Macy's, Macy's Home Store, Sears, Target		—
17	Birchwood Mall	Port Huron (Detroit), MI		725,047		268,818	GKC Theaters, JCPenney, Macy's, Sears, Target, Younkers		—
18	Boise Plaza	Boise, ID		114,404		114,404	Albertson's, Burlington Coat Factory		—
19	Boise Towne Plaza(3)	Boise, ID		116677		116677	Old Navy		—
20	Boise Towne Square(2)	Boise, ID		1,093,108		423,079	Dillard's, JCPenney, Macy's, Sears		1
21	Brass Mill Center	Waterbury, CT		984,099		326,760	Burlington Coat Factory, JCPenney, Macy's, Regal Cinemas, Sears		1
22	Brass Mill Commons	Waterbury, CT		197,033		197,033	Barnes & Noble, Hometown Buffet, Michael's, OfficeMax, Toys R Us		1
23	The Boulevard Mall	Las Vegas, NV		1,175,774		387,738	JCPenney, Macy's, Sears		1
24	Burlington Town Center(2)	Burlington, VT		299,793		153,040	Macy's		—
25	Cache Valley Mall	Logan, UT		319,225		173,393	Dillard's, Dillard's Men's & Home, JCPenney		—
26	Cache Valley Marketplace	Logan, UT		180,956		180,956	Home Depot, Olive Garden, T.J. Maxx		—
27	Canyon Point Village Center	Las Vegas, NV		57,229		57,229	—		—
28	Capital Mall	Jefferson City, MO		565,106		332,029	Dillard's, JCPenney, Sears, Hy-Vee, Capital 8 Theatre		—
29	Century Plaza	Birmingham, AL		16,706		16,706	Aldi		—
30	Chapel Hills Mall	Colorado Springs, CO		1,202,361		406,922	Burlington Coat Factory (4), Borders, Dick's Sporting Goods, Dillard's, JCPenney, Macy's, Sears		1
31	Chico Mall	Chico, CA		495,237		173,103	Forever 21, JCPenney, Sears		1
32	Chula Vista Center	Chula Vista (San Diego), CA		874,299		286,162	JCPenney, Macerich (4), Macy's, Sears, Burlington Coat Factory, Ultrastar Cinemas		1
33	Coastland Center	Naples, FL		922,206		331,816	Dillard's, JCPenney, Macy's, Sears, Old Navy		—
34	Collin Creek	Plano, TX		1,118,077		327,994	Amazing Jakes, Dillard's, JCPenney, Macy's, Sears		—
35	Colony Square Mall	Zanesville, OH		491,905		245,123	Cinemark, Elder-Beerman, JCPenney, Sears		—
36	Columbia Mall	Columbia, MO		735,814		314,754	Dillard's, JCPenney, Sears, Target		—
37	Columbiana Centre	Columbia, SC		824,990		266,013	Belk, Dillard's, JCPenney, Sears		—
38	Coral Ridge Mall	Coralville (Iowa City), IA		1,076,206		421,041	Dillard's, JCPenney, Scheels, Sears, Target, Younkers, Best Buy, Coral Ridge 10		—
39	Coronado Center(2)	Albuquerque, NM		1,151,734		375,709	Barnes & Noble, JCPenney, Macy's, Sears, Target, Kohl's		—
40	Cottonwood Mall	Holladay, UT		220,954		6,600	Macy's		—
41	Cottonwood Square(2)	Salt Lake City, UT		77,079		77,079	—		—
42	Country Hills Plaza	Ogden, UT		137,897		137,897	Smith's Food King		1
43	The Crossroads	Portage (Kalamazoo), MI		770,539		267,579	Burlington Coat Factory (4), JCPenney, Macy's, Sears		—
44	Crossroads Center	St. Cloud, MN		891,208		285,528	JCPenney, Macy's, Scheels, Sears, Target		—

24

			GLA
Property Count	Name of Center	Location(1)	Total		Mall and Freestanding		Anchors/Significant Tenants	Anchor/Significant Tenant Vacancies
45	Cumberland Mall	Atlanta, GA		1,046,050		398,066	Costco, Macy's, Sears, DSW Shoe Warehouse, Forever 21		—
46	Deerbrook Mall	Humble (Houston), TX		1,191,974		393,996	AMC Theatres, Dillard's, JCPenney, Macy's, Sears		—
47	Division Crossing	Portland, OR		100,910		100,910	Rite Aid, Safeway		—
48	Eagle Ridge Mall	Lake Wales (Orlando), FL		622,917		227,462	Dillard's, JCPenney, Recreation Station, Regal Cinemas, Sears		—
49	Eastridge Mall	San Jose, CA		1,303,717		469,323	AMC 15, Bed Bath & Beyond, JCPenney, Macy's, Sears, Sport Chalet		—
50	Eastridge Mall	Casper, WY		571,587		281,791	JCPenney, Macy's, Sears, Target		—
51	Eden Prairie Center	Eden Prairie (Minneapolis), MN		1,134,414		325,411	AMC Theatres, Kohl's, Sears, Target, Von Maur, JCPenney, Scheels, Barnes & Noble		—
52	Fallbrook Center(2)	West Hills (Los Angeles), CA		854,095		854,095	24 Hour Fitness, DSW Shoe Warehouse, Home Depot, Kohl's, Macerich (4), Michael's, Old Navy, Party City, Petco Supplies & Fish		2
53	Faneuil Hall Marketplace(2)	Boston, MA		195,863		195,863	McCormick & Schmicks, Ned Devines & Parris, Urban Outfitters, Plaza III		—
54	Fashion Place(2)	Murray, UT		1,037,250		333,677	Dillard's, Nordstrom, Sears, Macy's		1
55	Fashion Show	Las Vegas, NV		1,877,665		524,957	Bloomingdale's Home, Dillard's, Forever 21, Macy's, Neiman Marcus, Nordstrom, Saks Fifth Avenue		1
56	Foothills Mall	Fort Collins, CO		805,715		465,618	Macy's, Sears		2
57	Fort Union(2)	Midvale (Salt Lake City), UT		32,968		32,968	Buca Di Beppo		—
58	Four Seasons Town Centre	Greensboro, NC		1,116,343		474,327	Belk, Dillard's, JCPenney		—
59	Fox River Mall	Appleton, WI		1,206,847		518,210	Cost Plus World Market, David's Bridal, DSW Shoe Warehouse, JCPenney, Macy's, Scheels, Sears, Target		—
60	Fremont Plaza(2)	Las Vegas, NV		115,895		115,895	CVS		1
61	The Gallery at Harborplace	Baltimore, MD		132,379		132,379	GAP		—
62	Gateway Crossing Shopping Center	Bountiful (Salt Lake City), UT		183,526		183,526	Barnes & Noble, Dollar Tree, T.J. Maxx		—
63	Gateway Mall	Springfield, OR		818,545		256,726	Ashley Furniture Homestore, Cinemark 17, Kohl's, Movies 12, Oz Fitness, Ross Dress For Less, Sears, Target		—
64	Gateway Overlook	Columbia, MD		514,363		514,363	Best Buy, Costco, Golf Galaxy, Loehmann's, Lowe's		—
65	Glenbrook Square	Fort Wayne, IN		1,225,231		448,361	JCPenney, Macy's, Sears		1
66	Governor's Square(2)	Tallahassee, FL		1,021,788		330,183	Dillard's, JCPenney, Macy's, Sears		—
67	The Grand Canal Shoppes	Las Vegas, NV		497,151		462,737	Sephora, Grand Lux Café, Aquaknox, Delmonico, Madame' Tussaud Las Vegas Tao, Banana Republic, Postrio-Las Vegas		—
68	Grand Teton Mall	Idaho Falls, ID		535,631		211,706	Dillard's, JCPenney, Macy's, Sears		—
69	Grand Teton Plaza	Idaho Falls, ID		93,274		93,274	Best Buy, Petsmart, Ross Dress For Less		1
70	Grand Traverse Mall	Traverse City, MI		589,488		276,097	GKC Theaters, JCPenney, Macy's, Target, T.J. Maxx		—
71	Greenwood Mall	Bowling Green, KY		842,462		413,409	Dillard's, JCPenney, Macy's, Sears		—
72	Halsey Crossing(2)	Gresham (Portland), OR		99,438		99,438	Safeway		—
73	Harborplace(2)	Baltimore, MD		145,406		145,406	Phillips Harborplace, Urban Outfitters		—
74	Hulen Mall	Ft. Worth, TX		949,042		352,472	Dillard's, Macy's, Sears		—
75	Jordan Creek Town Center	West Des Moines, IA		1,289,885		748,186	Century Theatres, Dillard's, Scheels, Younkers, Barnes & Noble		—
76	Knollwood Mall	St. Louis Park (Minneapolis), MN		462,582		166,460	Cub Foods, Keith's Furniture Outlet, Kohl's, T.J. Maxx		—
77	Lakeland Square	Lakeland (Orlando), FL		884,484		274,446	Burlington Coat Factory (4), Dillard's, Dillard's Men's & Home, JCPenney, Macy's, Sears		—
78	Lakeside Mall	Sterling Heights, MI		1,518,117		497,399	JCPenney, Lord & Taylor, Macy's, Macy's Mens & Home, Sears		—
79	Lakeview Square	Battle Creek, MI		554,334		262,741	JCPenney, Macy's, Sears, Barnes & Noble		—
80	Landmark Mall(2)	Alexandria (Washington, D.C.), VA		859,710		300,773	Macy's, Sears		1
81	Lansing Mall(2)	Lansing, MI		835,264		412,094	JCPenney, Macy's, T.J. Maxx, Younkers, Best Buy, Barnes & Noble		1
82	Lincolnshire Commons	Lincolnshire (Chicago), IL		118,562		118,562	Barnes & Noble, DSW Shoe Warehouse		—
83	Lockport Mall	Lockport, NY		90,734		90,734	The Bon-Ton		—

25

			GLA
Property Count	Name of Center	Location(1)	Total		Mall and Freestanding		Anchors/Significant Tenants	Anchor/Significant Tenant Vacancies
84	Lynnhaven Mall	Virginia Beach, VA		1,284,972		449,525	AMC Theatres, Dick's Sporting Goods, Dillard's, Furniture Mart, JCPenney, Macy's		1
85	The Maine Mall	South Portland, ME		1,017,436		385,375	Best Buy, Chuck E Cheese, JCPenney, Macy's, Sears, Sports Authority		2
86	Mall at Sierra Vista	Sierra Vista, AZ		365,853		134,583	Cinemark, Dillard's, Sears		—
87	The Mall in Columbia	Columbia, MD		1,420,780		620,612	JCPenney, Lord & Taylor, Macy's, Nordstrom, Sears		—
88	Mall of Louisiana	Baton Rouge, LA		1,551,057		743,575	Borders Books & Music, Dillard's, JCPenney, Macy's, Pottery Barn, Sears, Rave Motion Pictures, Dicks Sporting Goods, DSW Shoe Warehouse		—
89	Mall of the Bluffs	Council Bluffs (Omaha, NE), IA		701,355		375,133	Dillard's, Hy-Vee, Sears		2
90	Mall St. Matthews(2)	Louisville, KY		1,085,894		350,189	Dillard's, Dillard's Men's & Home, Forever 21, JCPenney		1
91	Mall St. Vincent(2)	Shreveport, LA		532,600		184,600	Dillard's, Sears		1
92	Market Place Shopping Center	Champaign, IL		1,044,899		509,153	Bergner's, JCPenney, Macy's, Sears		—
93	Mayfair	Wauwatosa (Milwaukee), WI		1,116,130		496,746	AMC Theatres, Barnes & Noble, Boston Store, Macy's, Crate & Barrel		—
94	Meadows Mall	Las Vegas, NV		945,026		308,173	Dillard's, JCPenney, Macy's, Sears		—
95	Mondawmin Mall	Baltimore, MD		364,437		297,737	Shoppers Food Warehouse, Target, Rite Aid Pharmacy		—
96	Moreno Valley Mall	Moreno Valley (Riverside), CA		1,064,318		338,084	Harkins Theatre, JCPenney, Macy's, Sears		2
97	Newgate Mall	Ogden (Salt Lake City), UT		724,873		252,739	Cinemark Tinseltown 14, Dillard's, Macerich(4), Sears, Sports Authority		—
98	NewPark Mall	Newark (San Francisco), CA		1,116,965		373,359	JCPenney, Macy's, Sears, Target		1
99	North Plains Mall	Clovis, NM		303,197		109,116	Beall's, Dillard's, JCPenney, Sears		—
100	North Point Mall	Alpharetta (Atlanta), GA		1,375,101		408,814	Dillard's, JCPenney, Macy's, Sears, American Girl Place		2
101	North Star Mall	San Antonio, TX		1,242,570		428,402	Dillard's, Macy's, Saks Fifth Avenue, Forever 21, JCPenney		—
102	Northgate Mall	Chattanooga, TN		798,029		332,709	Belk, Belk Home Store, JCPenney, Sears, T.J. Maxx		—
103	Northridge Fashion Center	Northridge (Los Angeles), CA		1,479,211		558,399	JCPenney, Macy's, Pacific Theatres, Sears		1
104	NorthTown Mall	Spokane, WA		1,042,954		411,460	Bumpers, Inc., JCPenney, Kohl's, Macy's, Regal Cinemas, Sears, Nordstrom Rack		1
105	Oak View Mall	Omaha, NE		861,089		256,829	Dillard's, JCPenney, Sears, Younkers		—
106	Oakwood Center	Gretna, LA		757,987		240,593	Dillard's, JCPenney, Sears		—
107	Oakwood Mall	Eau Claire, WI		812,503		327,427	JCPenney, Macy's, Scheels, Sears, Younkers, Carmike Theaters		—
108	Oglethorpe Mall	Savannah, GA		943,659		363,511	Belk, JCPenney, Macy's, Macy's Junior, Sears, Stein Mart		—
109	Orem Plaza Center Street	Orem, UT		90,218		90,218	Chuck E Cheese, Robert's Crafts		—
110	Orem Plaza State Street	Orem, UT		27,240		27,240	—		—
111	Oviedo Marketplace	Oviedo, FL		940,504		275,575	Dillard's, Macy's, Regal Cinemas, Sears		—
112	Owings Mills Mall	Owings Mills, MD		1,083,613		436,576	JCPenney, Macy's		2
113	Oxmoor Center(2)	Louisville, KY		917,381		270,171	Dick's Sporting Goods, Macy's, Sears, Von Maur		—
114	Paramus Park	Paramus, NJ		768,592		309,535	Macy's, Sears, Old Navy		—
115	Park City Center	Lancaster (Philadelphia), PA		1,442,680		542,783	The Bon-Ton, Boscov's, JCPenney, Kohl's, Sears		—
116	Park Place	Tucson, AZ		1,055,763		401,026	Century Theatres, Dillard's, Macy's, Sears		—
117	Park West	Peoria, AZ		166,074		101,945	Harkins Theatre		—
118	The Parks at Arlington	Arlington (Dallas), TX		1,517,093		432,097	AMC Theatres, Barnes & Noble, Dick's Sporting Goods, Dillard's, Forever 21, JCPenney, Macy's, Sears		1
119	Peachtree Mall	Columbus, GA		816,546		307,931	Dillard's, JCPenney, Macy's, Peachtree Cinema		1
120	Pecanland Mall	Monroe, LA		944,367		328,931	Belk, Dillard's, JCPenney, Sears, Burlington Coat Factory		—
121	Pembroke Lakes Mall	Pembroke Pines (Fort Lauderdale), FL		1,133,998		352,723	Dillard's, Dillard's Men's & Home, JCPenney, Macy's, Macy's Home Store, Sears		—
122	Piedmont Mall	Danville, VA		708,519		156,781	Belk, Belk Men's, JCPenney, Sears		1
123	Pierre Bossier Mall	Bossier City (Shreveport), LA		606,274		212,976	Dillard's, JCPenney, Sears, Stage		1
124	Pine Ridge Mall(2)	Pocatello, ID		638,078		200,091	JCPenney, Party Palace, Sears, Shopko		1

26

			GLA
Property Count	Name of Center	Location(1)	Total		Mall and Freestanding		Anchors/Significant Tenants	Anchor/Significant Tenant Vacancies
125	The Pines	Pine Bluff, AR		625,421		243,001	Dillard's, Holiday Inn Express, JCPenney, Sears		1
126	Pioneer Place(2)	Portland, OR		362,883		249,883	Regal Cinemas, Saks Fifth Avenue		—
127	Plaza 800(2)	Sparks (Reno), NV		72,431		72,431	Save Mart Supermarkets		—
128	Plaza 9400(2)	Sandy (Salt Lake City), UT		228,661		228,661	Deseret Industries		2
129	Prince Kuhio Plaza(2)	Hilo, HI		503,490		267,370	Macy's, Sears		1
130	Providence Place(2)	Providence, RI		1,265,191		506,086	Bed Bath & Beyond, Dave & Buster's, JCPenney, Macy's, Nordstrom, Old Navy, Providence Place Cinemas 16		—
131	Provo Towne Centre(3)	Provo, UT		792,560		222,491	Cinemark, Dillard's, JCPenney, Sears		—
132	Red Cliffs Mall	St. George, UT		385,487		119,650	Barnes & Noble, Dillard's, JCPenney, Sears		—
133	Red Cliffs Plaza	St George, UT		57,304		57,304	Gold's Gym, Sears		—
134	Regency Square Mall	Jacksonville, FL		1,439,812		523,306	Belk, Champs Sports/World Foot Locker, Dillard's, JCPenney, Sears		1
135	Ridgedale Center	Minnetonka, MN		1,029,559		327,179	JCPenney, Macy's, Sears		—
136	Rio West Mall(2)(3)	Gallup, NM		513,580		332,447	Beall's, JCPenney		1
137	River Falls Mall	Clarksville, IN		786,012		786,012	Bass Pro Shops Outdoor World, Dick's Sporting Goods, Louisville Athletic Club, Old Time Pottery, Toys R Us		1
138	River Hills Mall	Mankato, MN		716,877		274,790	Herberger's, JCPenney, Scheels, Sears, Target, Barnes & Noble		—
139	River Pointe Plaza	West Jordan (Salt Lake City), UT		224,250		224,250	Shopko, SUPERVALU		—
140	Riverlands Shopping Center	Laplace (New Orleans), LA		181,044		181,044	Burke's Outlet, Citi Trends, Matherne's Supermarkets, Stage		—
141	Riverside Plaza	Provo, UT		176,143		176,143	Big Lots, Macy's, Rite Aid		—
142	Rivertown Crossings	Grandville (Grand Rapids), MI		1,270,959		421,901	Celebration Cinemas, Dick's Sporting Goods, JCPenney, Kohl's, Macy's, Old Navy, Sears, Younkers		—
143	Riverwalk Marketplace(2)	New Orleans, LA		193,969		193,969	GAP, Southern Food & Beverage Museum		—
144	Rogue Valley Mall	Medford (Portland), OR		639,097		251,659	JCPenney, Kohl's, Macy's, Macy's Home Store		1
145	Saint Louis Galleria	St. Louis, MO		1,033,343		457,291	Dillard's, Macy's		1
146	Salem Center(2)	Salem, OR		631,837		193,837	JCPenney, Kohl's, Macy's, Nordstrom		—
147	The Shoppes at Buckland Hills	Manchester, CT		1,045,621		453,010	Dick's Sporting Goods, JCPenney, Macy's, Macy's Mens & Home, Sears, Barnes & Noble		—
148	The Shoppes at The Palazzo	Las Vegas, NV		335,157		250,414	Barneys New York, CUT, Victoria's Secret, Sushi Samba, Table 10		—
149	The Shops at Fallen Timbers	Maumee, OH		573,516		312,014	Dillard's, JCPenney, Staybridge Suites, Showcase, Barnes & Noble		—
150	The Shops at La Cantera(3)	San Antonio, TX		1,177,070		510,254	Dillard's, Macy's, Neiman Marcus, Nordstrom		—
151	Sikes Senter	Wichita Falls, TX		667,440		261,916	Dillard's, JCPenney, Sears, Sikes Ten Theatres		—
152	Silver Lake Mall	Coeur D' Alene, ID		325,046		108,682	JCPenney, Macy's (4), Sears, Timberline Trading Company		—
153	Sooner Mall	Norman, OK		508,751		168,679	Dillard's, JCPenney, Old Navy, Sears		1
154	South Street Seaport(2)	New York, NY		285,849		253,830	Bodies, The Exhibition		—
155	Southlake Mall	Morrow (Atlanta), GA		1,014,245		273,993	JCPenney, Macy's, Sears		1
156	Southland Center	Taylor, MI		903,941		275,904	Best Buy, JCPenney, Macy's		1
157	Southland Mall	Hayward, CA		1,265,396		525,132	JCPenney, Kohl's (4), Macy's, Sears		1
158	Southshore Mall(2)	Aberdeen, WA		273,289		139,514	JCPenney, Sears		—
159	Southwest Plaza(2)	Littleton (Denver), CO		1,336,229		636,868	Dick's Sporting Goods, Dillard's, JCPenney, Macy's, Sears		1
160	Spokane Valley Mall(3)	Spokane, WA		724,740		305,656	JCPenney, Macy's, Regal Act III, Sears		—
161	Spokane Valley Plaza(3)	Spokane, WA		132,048		132,048	Old Navy, T.J. Maxx, Wholesale Sports		1
162	Spring Hill Mall	West Dundee (Chicago), IL		1,166,234		433,439	Carson Pirie Scott, Home Furniture Mart, JCPenney, Kohl's, Macy's, Sears		—
163	Staten Island Mall	Staten Island, NY		1,275,222		604,133	Macy's, Sears, JCPenney, Babies R Us		—
164	Steeplegate Mall	Concord, NH		479,675		223,328	The Bon-Ton, JCPenney, Sears		—
165	Stonestown Galleria	San Francisco, CA		851,815		423,522	Macy's, Nordstrom		—
166	The Streets at Southpoint	Durham, NC		1,304,453		578,106	Barnes & Noble, Hudson Belk, JCPenney, Macy's, Maggiano's Little Italy, Nordstrom, Pottery Barn, Sears, Urban Outfitters		—
167	Three Rivers Mall	Kelso, WA		419,461		226,228	JCPenney, Macy's, Sears		1

27

			GLA
Property Count	Name of Center	Location(1)	Total		Mall and Freestanding		Anchors/Significant Tenants	Anchor/Significant Tenant Vacancies
168	Town East Mall	Mesquite (Dallas), TX		1,240,530		431,144	Dillard's, JCPenney, Macy's, Sears		—
169	Tucson Mall(2)	Tucson, AZ		1,228,202		504,938	Dillard's, Forever 21 (4), JCPenney, Macy's, Sears		—
170	Twin Falls Crossing	Twin Falls, ID		37,680		37,680	Kalik Investors		—
171	Tysons Galleria	Mclean (Washington, D.C.), VA		815,424		303,491	Macy's, Neiman Marcus, Saks Fifth Avenue		—
172	University Crossing	Orem, UT		209,329		209,329	Barnes & Noble, Burlington Coat Factory(4), Officemax, Pier 1 Imports, Sears		—
173	Valley Hills Mall	Hickory, NC		933,545		322,029	Belk, Dillard's, JCPenney, Sears		—
174	Valley Plaza Mall	Bakersfield, CA		1,032,247		425,760	Forever 21, JCPenney, Macy's, Sears		—
175	The Village at Redlands	Redlands, CA		174,307		79,248	SAV-ON Drugs		2
176	The Village of Cross Keys	Baltimore, MD		74,172		74,172	Talbots		—
177	Visalia Mall	Visalia, CA		436,852		179,852	JCPenney, Macy's		—
178	Vista Commons	Las Vegas, NV		98,730		98,730	Albertson's		—
179	Vista Ridge Mall	Lewisville (Dallas), TX		1,063,860		334,395	Cinemark, Dillard's, JCPenney, Macy's, Sears		—
180	Ward Centers	Honolulu, HI		702,239		642,165	Sports Authority, Nordstrom Rack, Ross Dress for Less, Office Depot, Borders, Dave & Busters, Consolidated Entertainment		—
181	Washington Park Mall	Bartlesville, OK		357,221		162,925	Dillard's, JCPenney, Sears		—
182	West Oaks Mall	Ocoee (Orlando), FL		1,056,086		355,330	AMC Theatres, Dillard's, JCPenney, Sears		1
183	West Valley Mall	Tracy (San Francisco), CA		883,629		486,720	JCPenney, Movies 14, Sears, Target		1
184	Westlake Center	Seattle, WA		96,553		96,553	—		—
185	Westwood Mall	Jackson, MI		507,859		136,171	Elder-Beerman, JCPenney, Wal-Mart		—
186	White Marsh Mall	Baltimore, MD		1,165,791		386,147	JCPenney, Macy's, Macy's Home Store, Sears, Sports Authority		1
187	White Mountain Mall	Rock Springs, WY		302,119		124,991	Flaming Gorge Harley Davidson, Herberger's, JCPenney, State Of Wyoming		—
188	Willowbrook	Wayne, NJ		1,510,435		482,435	Bloomingdale's, Lord & Taylor, Macy's, Sears		—
189	Woodbridge Center	Woodbridge, NJ		1,646,468		561,433	Dick's Sporting Goods, JCPenney, Lord & Taylor, Macy's, Sears		1
190	The Woodlands Mall	Woodlands (Houston), TX		1,355,530		470,830	Dillard's, JCPenney, Macy's, Macy's Children Store, Sears, Forever 21		—
191	Woodlands Village	Flaggstaff, AZ		91,810		91,810	—		—
192	Yellowstone Square	Idaho Falls, ID		220,137		220,137	D.A.R.E, Yellowstone Warehouse		1
				136,764,054		57,625,078			65

(1)

In certain cases, where a center is located in part of a larger metropolitan area, the metropolitan area is identified in parenthesis.

(2)

A portion of the property is subject to a ground lease.

(3)

Owned in a joint venture with independent, non-controlling minority investors.

(4)

The anchor building is owned by a third party.

28

UNCONSOLIDATED RETAIL PROPERTIES

						GLA
Property Count	Name of Center	Location(1)	Ownership Interest			Total		Mall and Freestanding		Anchors/Significant Tenants	Anchor/Significant Tenant Vacancies
1	Alderwood	Lynnwood (Seattle), WA		50.5	%		1,267,580		497,029	JCPenney, Loews Cineplex, Macy's, Nordstrom, Sears		—
2	Altamonte Mall	Altamonte Springs (Orlando), FL		50			1,153,188		474,640	AMC Theatres, Dillard's, JCPenney, Macy's, Sears		—
3	Arrowhead Towne Center	Glendale, AZ		33.33			1,197,342		342,805	AMC Theatres, Dicks Sporting Goods, Dillards, Forever 21, JCPenney, Macy's		—
4	Bangu Shopping	Rio de Janeiro, Rio de Janeiro (Brazil)		49			540,142		451,426	Leader Magazine, C&A, Lojas Amercianas, Kalunga, Leroy Merlin, Casa Bahia		—
5	Boulevard Brasilia	Brasilia, Brazil		34.5			182,176		113,288	C&A, Renner, Marisa
6	Boulevard Shopping Belem	Belem, Brazil		36.8			365,752		226,611	Riachuelo, Visao, Renner, C&A, Marisa, Lojas, Americnas E Centauro
7	Boulevard Shopping Campina Grande	Campina Grande, Paraiba (Brazil)		15			186,458		84,852	Bompreco S/A, Lojas Americanas, Marisa, Riachuelo		—
8	Bridgewater Commons	Bridgewater, NJ		35			983,959		448,070	—		—
9	Carioca Shopping	Rio de Janeiro, Rio de Janeiro (Brazil)		20			249,238		191,227	Leader Magazine, Marisa, Lojas Americanas, Casa E Video, Cinemark, Extra, C&A		—
10	Carolina Place	Pineville (Charlotte), NC		50.5			1,158,555		353,639	Barnes & Noble, Belk, Dillard's, JCPenney, Macy's, Sears, REI		—
11	Caxias Shopping	Rio de Janeiro, Rio de Janeiro (Brazil)		20			275,571		146,787	C & C, Riachuelo, Renner, Casas Bahia		—
12	Center Point Plaza	Las Vegas, NV		50			144,635		70,299	CVS, Albertson's		—
13	Christiana Mall	Newark, DE		50			1,127,810		389,603	Barnes & Noble, JCPenney, Macy's, Target, Nordstroms		—
14	Clackamas Town Center	Happy Valley, OR		50			1,352,932		475,387	Barnes & Noble, Century Theatres, JCPenney, Macy's, Macy's Home Store, Nordstrom, Sears		1
15	Espark Mall	Eskisehir, Turkey		50			468,240		342,938	Mars Sienema Tur. Ve Sportif Tesisler Isletmeciligi A.S., Migros Turk T.A.S., Ms Istanbul Yonetim Hizmetleri Ltd. Sti.		—
16	First Colony Mall	Sugar Land, TX		50			1,114,554		495,506	Barnes & Noble, Dillard's, Dillard's Men's & Home, JCPenney, Macy's		—
17	Florence Mall	Florence (Cincinnati, OH), KY		50			958,219		405,812	JCPenney, Macy's, Macy's Home Store, Sears, Cinema DeLux		—
18	Galleria at Tyler(2)	Riverside, CA		50			1,178,922		557,214	AMC Theatres, JCPenney, Macy's, Nordstrom, Yard House		1
19	Glendale Galleria(2)	Glendale, CA		50			1,319,775		514,775	JCPenney, Macy's, Nordstrom, Target		1
20	Highland Mall(2)	Austin, TX		50			1,116,241		397,500	Dillard's Men's, Macy's		2
21	Kenwood Towne Centre(2)	Cincinnati, OH		50			1,148,168		506,847	Dillard's, Macy's, Nordstrom		—
22	Lake Mead & Buffalo Partners Village Center	Las Vegas, NV		50			150,948		64,991	VONS, 99 Cent Store Only		—
23	Mizner Park(2)	Boca Raton, FL		50			247,071		136,249	Mizner Park Cinema, Zed 451, Robb & Stucky		1
24	Montclair Plaza	Montclair (San Bernadino), CA		50.5			1,345,268		547,691	JCPenney, Macy's, Nordstrom, Sears, Ninety Nine Cent Only Store		4
25	Natick Collection	Natick (Boston), MA		50			1,667,723		686,925	Crate & Barrel, JCPenney, Lord & Taylor, Macy's, Sears, Neiman Marcus, Nordstrom, American Girl Place		—
26	Neshaminy Mall	Bensalem, PA		50			1,019,431		291,371	AMC Theatres, Barnes & Noble, Boscov's, Macy's, Sears		—
27	Northbrook Court	Northbrook (Chicago), IL		50.5			1,004,120		388,201	AMC Theatres, Lord & Taylor, Macy's, Neiman Marcus		—
28	Oakbrook Center	Oak Brook (Chicago), IL		47.46			2,104,735		821,723	Barnes & Noble, Bloomingdale's Home, Crate & Barrel, Lord & Taylor, Macy's, Neiman Marcus, Nordstrom, Sears		—
29	The Oaks Mall	Gainesville, FL		51			897,630		339,763	Belk, Dillard's, JCPenney, Macy's, Sears		—
30	Otay Ranch Town Center	Chula Vista (San Diego), CA		50			636,471		496,471	Macy's, REI, AMC Theatres, Best Buy		—

29

					GLA
Property Count	Name of Center	Location(1)	Ownership Interest		Total		Mall and Freestanding		Anchors/Significant Tenants	Anchor/Significant Tenant Vacancies
31	Park Meadows	Lone Tree, CO		35		1,571,354		637,384	Arhaus Furniture, Crate & Barrel, Dick's Sporting Goods, Dillard's, JCPenney, Macy's, Nordstrom		—
32	Perimeter Mall	Atlanta, GA		50		1,568,563		515,289	Bloomingdale's, Dillard's, Macy's, Nordstrom		—
33	Pinnacle Hills Promenade	Rogers, AR		50		942,764		635,863	Bed Bath & Beyond, Gordmans, Petsmart, TJ Maxx, Dillard's, JCPenney, Malco Theatre, Target		3
34	Quail Springs Mall	Oklahoma City, OK		50		1,139,040		354,240	AMC Theatres, Dillard's, JCPenney, Macy's, Sears		—
35	Riverchase Galleria	Hoover (Birmingham), AL		50		1,561,924		513,017	Forever 21, Belk, Belk Home Store, JCPenney, Macy's, Sears		2
36	Santana Parque Shopping	Sao Paulo, Sao Paulo (Brazil)		25		285,667		213,646	Lojas Americanas, Casas Bahia, C&A, Renner		—
37	The Shoppes at River Crossing	Macon, GA		50		659,048		325,829	Belk, Dick's Sporting Goods, Dillard's, DSW Shoe Warehouse, Jo-Ann Fabrics & Crafts, Ulta		—
38	Shopping Grande Rio	Rio de Janeiro, Rio de Janeiro (Brazil)		12		385,333		264,715	Dillard's, JCPenney, Scheels, Sears, Target, Younkers, Best Buy, Coral Ridge 10		—
39	Shopping Iguatemi Salvador	Salvador, Bahia (Brazil)		22		607,142		438,653	Lojas Americanas, Renner, Riachuelo, C&A, C&A Modas, Riachuelo II, Centauro, Zara		—
40	Shopping Leblon	Rio de Janeiro, Rio de Janeiro (Brazil)		21		249,230		199,155	Zara, Renner, Centuro,		—
41	Shopping Santa Ursula	Ribeirão Preto, Brazil		18		258,791		144,990	—		—
42	Shopping Taboao	Taboao da Serra, Sao Paulo (Brazil)		19		380,776		205,669	Lojas Americanas, Marisa, Renner, Riachuelo, Telha Norte, Besni, C&A, Carrefour, Casas Bahia		—
43	Silver City Galleria	Taunton (Boston), MA		50		1,005,799		351,762	Best Buy, Dick's Sporting Goods, JCPenney, Macy's, Sears, Silver City Cinemas		1
44	Stonebriar Centre	Frisco (Dallas), TX		50		1,650,465		529,246	AMC Theatres, Barnes & Noble, Dave & Buster's, Dick's Sporting Goods, Dillard's, JCPenney, Macy's, Nordstrom, Sears		—
45	SuperShopping Osasco	São Paulo, Brazil		15		189,887		160,026	Renner		—
46	Superstition Springs Center(2)	East Mesa (Phoenix), AZ		33.3		1,083,086		320,754	Developers Diversified, Dillards, JCPenney, JCPenney Home Store, Macy's, Picture Store		—
47	Towson Town Center	Towson, MD		35		996,424		542,354	Crate & Barrel, Macy's, Nordstrom		—
48	The Trails Village Center	Las Vegas, NV		50		174,644		92,129	CVS, Vons		—
49	Via Parque Shopping	Rio de Janeiro, Rio de Janeiro (Brazil)		42		580,569		400,591	Kalunga, Leader, Lojas Americanas, Marisa E Familia, Renner, Casa Bahia, Ponto Frio, C&C Casa E Construcao		—
50	Village of Merrick Park(2)	Coral Gables, FL		40		722,692		392,692	Neiman Marcus, Nordstrom, Borders		—
51	Water Tower Place	Chicago, IL		51.65		674,478		290,294	American Girl Place, Forever 21, Macy's		—
52	Westroads Mall	Omaha, NE		51		1,069,379		382,725	Dick's Sporting Goods, JCPenney, Rave Digital Media, Von Maur, Younkers		—
53	Whaler's Village	Lahaina, HI		50		110,836		110,836	Hulla Grill		—
54	Willowbrook Mall	Houston, TX		50		1,384,857		400,485	Dillard's, JCPenney, Macy's, Sears		—
						45,815,602		19,681,984			16

(1)

In certain cases, where a center is located in part of a larger metropolitan area, the metropolitan area is identified in parenthesis.

(2)

A portion of the property is subject to a ground lease.

30

Anchors

        Anchors have traditionally been a major component of a regional shopping center. Anchors are frequently department stores whose merchandise appeals to a broad range of shoppers. Anchors generally either own their stores, the land under them and adjacent parking areas, or enter into long-term leases at rates that are generally lower than the rents charged to Mall Store tenants. We also typically enter into long-term reciprocal agreements with Anchors that provide for, among other things, mall and Anchor operating covenants and Anchor expense participation. The centers in the Retail Portfolio receive a smaller percentage of their operating income from Anchors than from stores (other than Anchors) that are typically specialty retailers who lease space in the structure including, or attached to, the primary complex of buildings that comprise a shopping center. While the market share of many traditional department store Anchors has been declining, strong Anchors continue to play an important role in maintaining customer traffic and making the centers in the Retail Portfolio desirable locations for Mall Store tenants.

        The following table indicates the parent company of certain Anchors and sets forth the number of stores and square feet owned or leased by each Anchor in the Retail Portfolio (excluding properties owned by our Brazil and Turkey Unconsolidated Real Estate Affiliates) as of December 31, 2009.

		Consolidated				Unconsolidated				Total
		Total Stores		Square Feet (000's)		Total Stores		Square Feet (000's)		Total Stores		Square Feet (000's)
Macy's, Inc.
	Bloomingdale's, including Home		2		360		3		465		5		825
	Macy's, including Mens, Womens, Children and Home		103		16,233		34		6,410		137		22,643
Total Macy's, Inc.			105		16,593		37		6,875		142		23,468
Sears Holdings Corporation			112		15,929		15		2,603		127		18,532
Bon-Ton Department Stores, Inc.
	Bergner's		1		154		—		—		1		154
	The Bon-Ton		2		267		—		—		2		267
	Boston Store		1		211		—		—		1		211
	Carson Pirie Scott		1		138		—		—		1		138
	Elder-Beerman		3		142		—		—		3		142
	Herberger's		3		209		—		—		3		209
	Younkers		9		1,010		1		173		10		1,183
Total Bon-Ton Department Stores, Inc.			20		2,131		1		173		21		2,304
JCPenney Company, Inc.			111		12,767		20		3,042		131		15,809
Dillard's Inc.			66		10,762		15		2,795		81		13,557
Nordstrom, Inc.			9		1,490		15		2,461		24		3,951
Target Corporation			15		1,812		2		370		17		2,182
Belk, Inc.			12		1,481		6		661		18		2,142
NRDC Equity Partners Fund III (d.b.a. Lord & Taylor)			4		523		4		471		8		994
The Neiman Marcus Group, Inc.			3		460		5		590		8		1,050
American Multi-Cinema, Inc.			8		641		5		395		13		1,036
Dick's Sporting Goods, Inc.			9		662		5		346		14		1,008
Others			137		8,586		35		1,881		172		10,467
Grand Total			611		73,837		165		22,663		776		96,500

31

Lease Expirations

        The GLA of freestanding retail stores in locations that are not attached to the primary complex of buildings that comprise a shopping center is defined as ("Freestanding GLA") and "Mall GLA" is the gross leaseable retail space, excluding Anchors and Freestanding GLA, measured in square feet. At December 31, 2009, our Mall GLA and our Freestanding GLA aggregated 57.6 million square feet for our consolidated retail properties and 19.9 million square feet for our unconsolidated retail properties. The following table indicates various lease expiration information related to the consolidated minimum rent for our currently existing retail leases at December 31, 2009. See Note 2 for our accounting policies for revenue recognition from our tenant leases and Note 8 for the future minimum rentals of our operating leases.

Year	Total Minimum Rent		Total Minimum Rent Expiring		% of Total Minimum Rent Expiring			Number of Leases Expiring		Total Square Feet Expiring
	(in thousands)		(in thousands)							(in thousands)
2010	$	1,574,692	$	69,886		4.4	%		3,558		12,598
2011		1,455,964		66,537		4.6	%		2,542		10,698
2012		1,291,194		74,544		5.8	%		2,356		10,881
2013		1,137,631		55,682		4.9	%		1,657		7,113
2014		988,367		67,063		6.8	%		1,582		8,255
Subsequent	$	3,183,947	$	3,183,947		100.0	%		6,200		87,494

Non-Retail Properties

        See Item 1 "Narrative Description of Business" for information regarding our other properties (office, industrial and mixed-use buildings) and our Master Planned Communities segment.

ITEM 3.    LEGAL PROCEEDINGS

        Other than our current Chapter 11 cases described in this Annual Report, neither the Company nor any of the Unconsolidated Real Estate Affiliates is currently involved in any material pending legal proceedings nor, to our knowledge, is any material legal proceeding currently threatened against the Company or any of the Unconsolidated Real Estate Affiliates.

32

PART II

ITEM 5.    MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

        On April 16, 2009, the Company's common stock was suspended from trading on the Exchange. On April 17, 2009, the Company's common stock began trading on the Pink Sheets under the symbol GGWPQ. The Company's common stock was delisted from the Exchange on May 21, 2009. As of February 24, 2010, our common stock was held by 4,125 stockholders of record.

        The following table summarizes the quarterly high and low bid quotations prices per share of our common stock as reported on the Pink Sheets since April 17, 2009 and by the high and low sales prices on the Exchange prior to the date trading was suspended by the Exchange. The Pink Sheet quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.

	Stock Price
Quarter Ended	High		Low
2009
December 31	$	13.24	$	3.57
September 30		4.95		1.33
June 30		3.05		0.48
March 31		2.26		0.32
2008
December 31	$	15.00	$	0.24
September 30		35.17		13.37
June 30		44.23		34.75
March 31		42.31		30.20

        The following table summarizes quarterly distributions per share of our common stock.

Declaration Date		Record Date	Payment Date	Amount
2009
	December 18	December 28	January 28, 2010*	$	.19
2008
	July 7	July 17	July 31		.50
	April 4	April 16	April 30		.50
	January 7	January 17	January 31		.50

*

The dividend was payable in a combination of cash and common stock with the cash component of the dividend paid not to exceed 10% in aggregate. Based upon the volume weighted average trading prices of the Company's common stock on January 20, 21 and 22, 2010 ($10.8455 per share), approximately 4.9 million shares of common stock were issued and approximately $5.9 million in cash (excluding cash for fractional shares) was paid to common stockholders on January 28, 2010. This dividend was a 2009 dividend and was intended to allow the Company to satisfy its 2009 REIT distribution requirements (Note 7). The Company intends to pay dividends on its common stock in the future to maintain its REIT status in a combination of cash and common stock.

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        The Company's Board of Directors suspended our dividend in October 2008 and, accordingly, there were no dividends declared or paid from the fourth quarter of 2008 through the third quarter of 2009. There were no repurchases of our common stock during 2009.

        See Note 10 for information regarding shares of our common stock that may be issued under the employment agreements of our CEO, and our President and Chief Operating Officer, under our equity compensation plans as of December 31, 2009, Note 12 for information regarding redemptions of the common units of GGP Limited Partnership held by limited partners (the "Common Units") for common stock and Note 14 for information regarding the issuance of common stock related to the CSA.

ITEM 6.    SELECTED FINANCIAL DATA

        The following table sets forth selected financial data which is derived from, and should be read in conjunction with, the Consolidated Financial Statements and the related Notes and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in this Annual Report. As of January 1, 2009 we adopted two accounting pronouncements (related to convertible debt instruments that may be settled in cash upon conversion and noncontrolling interests) that required retrospective application, in which all periods presented reflect the necessary changes (Note 2).

			2009			2008			2007			2006			2005
			(In thousands, except per share amounts)
OPERATING DATA
Revenues			$	3,135,814		$	3,361,525		$	3,261,801		$	3,256,283		$	3,072,704
Depreciation and amortization				(755,161	)		(759,930	)		(670,454	)		(690,194	)		(672,914	)
Provisions for impairment				(1,223,810	)		(116,611	)		(130,533	)		(4,314	)		(5,145	)
Other operating expenses				(1,318,177	)		(1,256,413	)		(1,382,953	)		(1,373,323	)		(1,335,661	)
Interest expense, net				(1,307,962	)		(1,322,076	)		(1,182,825	)		(1,105,852	)		(1,020,825	)
Reorganization items				146,190			—			—			—			—
Benefit from (provision for) income taxes				14,610			(23,461	)		294,160			(98,984	)		(51,289	)
Equity in income of unconsolidated affiliates				4,635			80,594			158,401			114,241			120,986
	(Loss) income from continuing operations			(1,303,861	)		(36,372	)		347,597			97,857			107,856
	(Loss) income from discontinued operations			(966	)		55,044			—			(823	)		14,317
Noncontrolling interest				20,138			(13,953	)		(73,955	)		(37,761	)		(46,620	)
	Net income available to common stockholders		$	(1,284,689	)	$	4,719		$	273,642		$	59,273		$	75,553
Basic earnings per share:
	Continuing operations		$	(4.11	)	$	(0.16	)	$	1.12		$	0.25		$	0.27
	Discontinued operations			—			0.18			—			—			0.05
		Total basic earnings per share	$	(4.11	)	$	0.02		$	1.12		$	0.25		$	0.32
Diluted earnings per share:
	Continuing operations		$	(4.11	)	$	(0.16	)	$	1.12		$	0.24		$	0.27
	Discontinued operations			—			0.18			—			—			0.05
		Total diluted earnings per share(1)	$	(4.11	)	$	0.02		$	1.12		$	0.24		$	0.32
Distributions declared per share(1)			$	0.19		$	1.50		$	1.85		$	1.68		$	1.49

34

	2009			2008			2007			2006			2005
	(In thousands, except per share amounts)
BALANCE SHEET DATA
Investment in real estate assets—cost	$	30,329,415		$	31,733,578		$	30,449,086		$	26,160,637		$	25,404,891
Total assets		28,149,774			29,557,330			28,814,319			25,241,445			25,307,019
Total debt		24,456,017			24,756,577			24,282,139			20,521,967			20,418,875
Redeemable preferred noncontrolling interests		120,756			120,756			223,677			345,574			372,955
Redeemable common noncontrolling interests		86,077			379,169			2,135,224			2,762,476			2,493,378
Stockholders' equity		822,963			1,836,141			(314,305	)		(921,473	)		(248,483	)
CASH FLOW DATA(4)
Operating activities	$	871,266		$	556,441		$	707,416		$	816,351		$	841,978
Investing activities		(334,554	)		(1,208,990	)		(1,780,932	)		(210,400	)		(154,197	)
Financing activities		(51,309	)		722,008			1,075,911			(611,603	)		(624,571	)
REAL ESTATE PROPERTY NET OPERATING INCOME(2)	$	2,307,330		$	2,576,506		$	2,404,968		$	2,420,952		$	2,244,581
FUNDS FROM OPERATIONS(3)
Operating Partnership	$	(421,384	)	$	833,086		$	1,083,439		$	902,361		$	891,696
Less: Allocation to Operating Partnership limited common unitholders		10,052			(136,896	)		(190,740	)		(161,795	)		(165,205	)
GGP stockholders	$	(411,332	)	$	696,190		$	892,699		$	740,566		$	726,491

(1)

The 2009 dividend was paid 90% in common stock and 10% in cash in January 2010.

(2)

Real estate property net operating income ("NOI" as defined below) does not represent income from operations as defined by GAAP.

(3)

Funds From Operations ("FFO" as defined below) does not represent cash flow from operations as defined by GAAP.

(4)

Cash flow data only represents GGP's consolidated cash flows as defined by GAAP and as such, does not include the cash received from our Unconsolidated Real Estate Affiliates, except to the extent of our cumulative share of GAAP earnings from such affiliates.

Real Estate Property Net Operating Income (NOI")

        The Company 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 below, 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, retail investment property impairment or other non-recoverable development costs, depreciation and amortization, gains and losses from property dispositions, allocations to non-controlling interests, reorganization items, 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 (with respect to the Master Planned Communities) and operating costs. This measure thereby provides an operating perspective not immediately apparent from GAAP operating or net income attributable to controlling interests. The Company uses NOI to evaluate its operating performance on a

35

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.

Reconciliation of Real Estate Property Net Operating Income ("NOI") to GAAP Operating Income

		2009			2008			2007			2006			2005
								(In thousands)
Real Estate Property Net Operating Income:		$	2,307,330		$	2,576,506		$	2,404,968		$	2,420,952		$	2,244,581
	Unconsolidated properties		(401,614	)		(423,011	)		(446,631	)		(473,307	)		(437,592	)
	Management and other fees		65,268			85,773			106,584			115,798			91,022
	Property management and other costs		(176,876	)		(184,738	)		(198,610	)		(181,033	)		(144,526	)
	General and administrative		(28,608	)		(39,245	)		(37,005	)		(18,800	)		(15,539	)
	Strategic initiatives		(67,341	)		(18,727	)		—			—			—
	Litigation benefit (provision)		—			57,145			(89,225	)		—			—
	Provisions for impairment		(1,115,119	)		(76,265	)		(2,933	)		—			—
	Depreciation and amortization		(755,161	)		(759,930	)		(670,454	)		(690,194	)		(672,914	)
	Noncontrolling interest in NOI of consolidated properties and other		10,787			11,063			11,167			15,036			(6,048	)
	Operating (loss) income	$	(161,334	)	$	1,228,571		$	1,077,861		$	1,188,452		$	1,058,984

Funds From Operations

        Consistent with real estate industry and investment community practices, we use FFO as a supplemental measure of our operating performance. The National Association of Real Estate Investment Trusts ("NAREIT") defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains or losses from cumulative effects of accounting changes, extraordinary items and sales of operating rental properties, plus real estate related depreciation and amortization and after adjustments for the preceding items in our unconsolidated partnerships and joint ventures.

        We consider FFO a useful supplemental measure for equity REITs and a complement to GAAP measures because it facilitates an understanding of the operating performance of our properties. FFO does not include real estate depreciation and amortization required by GAAP 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, we believe that FFO provides investors with a clearer view of our operating performance, particularly with respect to our rental properties.

        In order to provide a better understanding of the relationship between FFO and net income available to common stockholders, a reconciliation of FFO to net income available to common stockholders has been provided. FFO does not represent cash flow from operations as defined by GAAP, should not be considered as an alternative to GAAP net income and is not necessarily indicative of cash available to fund cash requirements.

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Reconciliation of FFO to Net Income Available to Common Stockholders

		2009			2008			2007			2006			2005
								(In thousands)
FFO:
	General Growth stockholders	$	(411,332	)	$	696,190		$	892,699		$	740,566		$	726,491
	Operating Partnership unitholders		(10,052	)		136,896			190,740			161,795			165,205
	Operating Partnership		(421,384	)		833,086			1,083,439			902,361			891,696
Depreciation and amortization of capitalized real estate costs			(899,316	)		(885,814	)		(797,189	)		(835,656	)		(799,337	)
Gain on dispositions			921			55,044			42,745			4,205			769
Noncontrolling interest in depreciation of Consolidated Properties and other			3,717			3,330			3,199			3,232			4,307
Allocation to noncontrolling interests Operating Partnership unitholders			31,373			(927	)		(58,552	)		(14,869	)		(21,882	)
Net (loss) income available to common stockholders		$	(1,284,689	)	$	4,719		$	273,642		$	59,273		$	75,553

ITEM 7.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

        All references to numbered Notes are to specific footnotes to our Consolidated Financial Statements included in this Annual Report and which descriptions are incorporated into the applicable response by reference. The following discussion should be read in conjunction with such Consolidated Financial Statements and related Notes. Capitalized terms used, but not defined, in this Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") have the same meanings as in such Notes.

Overview—Introduction

        The Company is currently operating as a Debtor in Possession under Chapter 11.

        We are the owner or manager of over 200 regional shopping malls in 43 states and the owner of five master planned communities, of which we operate in two reportable business segments: Retail and Other and Master Planned Communities.

        From the third quarter of 2008 through the filing of the Chapter 11 Cases and first half of 2009, liquidity was our primary issue. Unable to refinance, extend or otherwise restructure our past due debt due to the collapse of the credit markets, we voluntarily chose to restructure our debt under court supervision. A total of 388 Debtors with approximately $21.83 billion of debt filed for Chapter 11 protection.

        The Chapter 11 Cases created the protections necessary for the Debtors to develop and execute plans of reorganization to restructure the Debtors and extend mortgage maturities, reduce corporate debt and overall leverage and establish a sustainable long-term capital structure. We have a long-term business plan necessary to effect the objectives we sought to achieve through the Chapter 11 process. The business plan contemplates the continued operation of retail shopping centers, divestiture of non-core assets and businesses and certain non-performing retail assets, and select development projects. We have pursued a deliberate two-stage strategy. The first stage entails the restructuring of our property-level secured mortgage debt. This second stage is the restructuring of the debt of the TopCo Debtors and our public equity.

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        As of March 1, 2010, 205 Track 1 Debtors owning 108 properties with $10.65 billion of secured mortgage debt have restructured such debt and emerged from bankruptcy. The Track 1 Plans generally provide, in exchange for payment of certain extension fees and cure of previously unpaid amounts due on the applicable mortgage loans (primarily, principal amortization otherwise scheduled to have been paid since the Petition Date), the extension of the secured mortgage loans at previously existing non-default interest rates. As a result of the extensions, the $10.65 billion of secured mortgage debt of the Track 1 Debtors that have emerged as of March 1, 2010 matures at various dates after January 1, 2014. In addition, the Track 1 Plans provide for the payment in full of all undisputed claims of creditors of the Track 1 Debtors.

        We have identified thirteen of the properties of the Track 1 Debtors with $751.7 million of secured mortgage debt as non-performing retail assets (the "Special Consideration Properties"). Pursuant to the terms of the agreements with the lenders for these properties, the Debtors have until two days following emergence of the TopCo Debtors to determine whether the collateral property for these loans should be deeded to the respective lender or the property should be retained with further modified loan terms. Prior to emergence of the TopCo Debtors, all cash produced by the property is under the control of respective lenders and we are required to pay any operating expense shortfall. In addition, prior to emergence of the TopCo Debtors, the respective lender can change the manager of the property or put the property in receivership and GGP has the right to deed the property to the lender, but no such actions have yet occurred.

        We have also identified three properties (Silver City, Montclair and Highland) owned by our Unconsolidated Real Estate Affiliates with approximately $457.4 million of secured mortgage debt, of which our share is $230.1 million, as non-performing assets. With respect to each of the properties owned by such Unconsolidated Real Estate Affiliates, all cash produced by such properties are under the control of the applicable lender. In the event we are unable to satisfactorily modify the terms of each of the loans associated with these properties, the collateral property for any such loan we are unable to satisfactorily restructure may be deeded to the respective lender.

        We are continuing to pursue consensual restructurings for the Remaining Secured Debtors and we will seek Bankruptcy Court approval of non-consensual restructuring plans for these loans in the event we are unable to reach an agreement with these lenders.

        While completion of the restructurings of the property-level debt remains a priority, we believe that we have achieved substantial progress with respect to the first phase of our restructuring strategy and are now in the midst of the second phase—resolving the TopCo Debtors' capital structure. Resolution of the TopCo capital structure involves reducing corporate debt and overall leverage and establishing a long-term capital structure. Our long-term business plan currently projects that we will need approximately $1.5 billion of new capital to emerge from bankruptcy and restructure on a stand alone basis. We have commenced a process to explore all potential alternatives for emergence, including an evaluation of the financing sources for a stand alone restructuring, as well as potential merger and acquisition or other change of control transactions with financial and strategic investors.

        On February 24, 2010, we reached an agreement in principle with Brookfield Asset Management Inc. ("Brookfield") pursuant to which GGP would be divided into two companies and Brookfield would invest $2.5 billion in cash in GGP and up to $125 million in cash in the new second company, General Growth Opportunities ("GGO"). Terms of the agreement in principle provide that, in exchange for its investment, Brookfield would acquire approximately thirty percent of the common stock of GGP and up to approximately sixteen percent of the total equity of GGO and have the right to nominate three directors to each of the boards of GGP and GGO. Terms of the agreement in principle also provide that the Company will raise an additional $2.5 billion in cash through a combination of new corporate level indebtedness and the consummation of certain asset sales and will raise up to an additional $3.3 billion in equity capital through a separate capital market equity raise process (coupled with

38

additional asset sales, if appropriate). In lieu of the receipt of any fees that would be customary in similar transactions, the agreement in principle contemplates that GGP will use its reasonable best efforts to obtain entry of a Bankruptcy Court order that provides Brookfield with seven-year warrants to purchase 60 million shares of existing GGP common stock at an exercise price of $15 per share, which warrants will be replaced with warrants to purchase equity of GGO and restructured GGP following the consummation of the contemplated transactions.

        The agreement in principle, including the warrants, is subject to definitive documentation, approval of the Bankruptcy Court and higher and better offers pursuant to procedures we will ask the Bankruptcy Court to approve. There is no assurance that the proposed investment, warrants or plan will be approved by the Bankruptcy Court or consummated. The Company is focused on continued progress in the Chapter 11 Cases and a comprehensive capital raise process, and will continue, notwithstanding the agreement in principle, to consider all alternatives to maximize value for all of the Company's stakeholders.

        We have filed a motion to extend the exclusivity period for us to file a plan until August 26, 2010 and to solicit acceptances of such plan to October 26, 2010. Our motion is currently scheduled to be heard by the Bankruptcy Court on March 3, 2010. Pending entry on order on our motion, the Bankruptcy Court has entered a bridge order extending the exclusivity period until the date that is 7 days following the date on which an order on our extension motion is entered. If an order is entered by the Bankruptcy Court granting our extension motion, it will supersede the bridge order. If the Bankruptcy Court denies our extension motion, the Company will have 7 days following the entry of an order related to the March 3 hearing before exclusivity expires. If we do not file a plan of reorganization for the 2010 Track Debtors prior to the lapse of the exclusivity period, any party in interest would be able to file a plan of reorganization for any of the 2010 Track Debtors.

        As a result of the automatic stay of most actions against a debtor's estate, the resulting suspension of our obligation to pay certain pre-petition liabilities and proceeds from the DIP Facility, as of December 31, 2009, we had approximately $654.4 million of cash. Our liquidity is dependent upon cash flow from operations, which were affected by the severe weakening of the economy in 2009. Retail sales hit their low point in the first quarter of 2009 and gradually improved during the remainder of 2009. However, retail market conditions have not returned to the levels of 2007 and, while we believe that they have stabilized and should continue to show improvement, they continue to impact our ability to generate and increase Retail and Other revenues. In addition, the continued weak housing market has negatively affected our ability to generate income through the sale of residential land in our Master Planned Communities.

        As part of our business planning process we reviewed our development and redevelopment projects. At this time we currently plan to complete projects that are already substantially complete and joint venture projects. We also intend to fulfill our other contractual obligations. As a result, we currently expect to complete our expansion and redevelopment projects at Christiana Mall, Fashion Place and Saint Louis Galleria.

        Based on the results of our evaluations for impairment of our Consolidated Properties (Note 2), we recognized impairment charges of $410.7 million in 2009 related to our operating retail and other properties, including the Special Consideration Properties and other properties identified as non-performing retail assets. We also recorded impairment charges of $563.8 million in 2009 related to the write-down of various development and pre-development costs that were determined to be non-recoverable as a result of the termination of various development projects. In addition, we recognized impairment charges related to allocated goodwill of $140.6 million in 2009. With respect to our Master Planned Communities Segment we recorded aggregate impairments, in 2009 of $108.7 million as our assumed future pattern in sales (lots or condominium units) changed due to market conditions. While we do not currently expect additional material impairment charges, we can

39

provide no such assurance that such charges will not occur in future periods. Our tests for impairment at December 31, 2009 were based on the most current information available to us (including our draft plans of reorganization), and if the conditions mentioned above deteriorate, or if our plans regarding our assets change, it could result in additional impairment charges in the future.

        In the fourth quarter of 2009, we declared a dividend of $0.19 per share of common stock (to satisfy REIT distribution requirements for 2009) payable in a combination of cash and common stock, provided that the cash component of the dividend could not exceed 10% in the aggregate. As a result of stockholder elections, on January 28, 2010, we paid approximately $5.9 million in cash (excluding cash in lieu of fractional shares) and issued approximately 4.9 million shares of GGP common stock.

        Our ability to continue as a going concern is dependent upon our ability to successfully implement a plan of reorganization for the 2010 Track Debtors, and there can be no assurance that we will be able to do so. We have described such concerns in Note 1 and our independent auditors have included an explanatory paragraph in their report expressing substantial doubt as to our ability to continue as a going concern.

Overview—Retail and Other Segment

        Our primary business is owning, managing, leasing and developing retail rental property, primarily shopping centers. The substantial majority of our properties are located in the United States, but we also have certain retail rental property operations and property management activities (through unconsolidated joint ventures) in Brazil and Turkey.

        We provide on-site management and other services to substantially all of our properties, including properties which we own through joint venture arrangements and which are unconsolidated for GAAP purposes. Our management operating philosophies and strategies are generally the same whether the properties are consolidated or unconsolidated. As a result, we believe that financial information and operating statistics with respect to all properties, both consolidated and unconsolidated, provide important insights into our operating results.

        We seek to increase long-term NOI growth through proactive management and leasing of our retail shopping centers. Our management strategy includes strategic reinvestment in our properties, smartly controlled operating expenses and enhancement of the customer experience. Our leasing strategy is to identify and provide the right stores and the appropriate merchandise for each of our retail operating centers.

        We believe that the most significant operating factor affecting incremental cash flow and real estate net operating income is increased rents earned from tenants at our properties. These rental revenue increases are primarily achieved by:

•

Renewing expiring leases and re-leasing existing space at rates higher than expiring or existing rates

•

Increasing occupancy at the properties so that more space is generating rent

•

Increased tenant sales in which we participate through Overage Rent

40

        The following table summarizes selected operating statistics. Unless noted, all information is as of December 31, 2009.

	Consolidated Properties(b)			Unconsolidated Properties(b)			Company Portfolio(b)
Operating Statistics(a)
Space leased at centers not under redevelopment (as a %)		91.0	%		93.8	%		91.6	%
Trailing 12 month total tenant sales per square feet	$	393		$	447		$	406
% change in total sales		(7.0	)%		(7.9	)%		(7.2	)%
% change in comparable sales		(7.4	)%		(7.8	)%		(7.4	)%
Mall and Freestanding GLA excluding space under redevelopment (in square feet)		50,727,954			14,634,148			65,362,102
Certain Financial Information(c)
Average annualized in place sum of rent and recoverable common area costs per sqare foot(d)(e)	$	47.09		$	54.98
Average sum of rent and recoverable common area costs per square foot for new/renewal leases (excludes current year acquisitions)(d)(e)	$	32.02		$	43.31
Average sum of rent and recoverable common area costs per square foot for leases expiring in current year (excludes current year acquisitions)(d)(e)	$	35.43		$	47.05

(a)

Excludes all international operations which combined represent approximately 1% of segment basis real estate property net operating income. Also excludes community centers, non-retail centers and centers that are managed by a third party.

(b)

Data is for 100% of the mall and Freestanding GLA in each portfolio. Data excludes properties at which significant physical or merchandising changes have been made.

(c)

Data may not be comparable to those of other companies.

(d)

Data presented in the column "Company Portfolio" are weighted average amounts.

(e)

Data includes a significant proportion of short-term leases on inline spaces that are leased for one year. Rents and recoverable common area costs related to these short-term leases are typically much lower than those related to long-term leases.

Overview—Master Planned Communities Segment

        Our Master Planned Communities business consists of the development and sale of residential and commercial land, primarily in large-scale projects in and around Columbia, Maryland; Houston, Texas; and Summerlin, Nevada. Residential sales include standard, custom and high density (i.e. condominium, town homes and apartments) parcels. Standard residential lots are designated for detached and attached single- and multi-family homes, ranging from entry-level to luxury homes. At our Summerlin project, we have further designated certain residential parcels as custom lots as their premium price reflects their larger size and other distinguishing features including gated communities, golf course access and higher elevations. Commercial sales include parcels designated for retail, office, services and other for-profit activities, as well as those parcels designated for use by government, schools and other not-for-profit entities.

        Revenues are derived primarily from the sale of finished lots, including infrastructure and amenities, and undeveloped property to both residential and commercial developers. Additional revenues are earned through participations with builders in their sales of finished homes to homebuyers. Revenues and net operating income are affected by such factors as the availability to

41

purchasers of construction and permanent mortgage financing at acceptable interest rates, consumer and business confidences, regional economic conditions in the areas surrounding the projects, levels of homebuilder inventory, other factors affecting the homebuilder business and sales of residential properties generally, availability of saleable land for particular uses and our decisions to sell, develop or retain land. For our more mature commitments such as in Columbia, Maryland, we are also creating new design plans to increase density and additional communities.

        Our primary strategy in this segment is to develop and sell land in a manner that increases the value of the remaining land to be developed and sold and to provide current cash flows. Our Master Planned Communities projects are owned by taxable REIT subsidiaries and, as a result, are subject to income taxes. Cash requirements to meet federal income tax requirements will increase in future years as we exhaust certain net loss carry forwards and as certain master planned community developments are completed for tax purposes and, as a result, previously deferred taxes must be paid. Such cash requirements could be significant. Additionally, revenues from the sale of land at Summerlin are subject to the Contingent Stock Agreement as more fully described in Note 14.

        The pace of land sales for standard residential lots has declined in recent periods in correlation to the decline in the housing market.

        As of December 31, 2009, there have been 84 unit sales at our 215 unit Nouvelle at Natick residential condominium project. As the threshold for profit recognition on such sales has not yet been achieved, the $36.4 million of sales proceeds received to date has been deferred and has been reflected within accounts payable, accrued expenses and other liabilities (Note 11). When such thresholds are achieved, the deferred revenue, and the related costs of units sold, will be reflected on the percentage of completion method within our master planned community segment.

        Based on the results of our evaluations for impairment (Note 2), we recognized aggregate impairment charges related to our Master Planned Communities of $108.7 million in 2009, $40.3 million in 2008 and $127.6 million in 2007.

Results of Operations

        Our revenues are primarily received from tenants in the form of fixed minimum rents, Overage Rent and recoveries of operating expenses. We have presented the following discussion of our results of operations on a segment basis under the proportionate share method. Under the proportionate share method, our share of segment revenues and expenses of the Unconsolidated Properties are combined with the revenues and expenses of the Consolidated Properties. Other revenues are increased by the real estate net operating income of discontinued operations and are reduced by our consolidated non controlling interest ventures" share of real estate net operating income. See Note 16 for additional information including reconciliations of our segment basis results to GAAP basis results.

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Year Ended December 31, 2009 and 2008

Retail and Other Segment

        The following table compares major revenue and expense items:

(In thousands)			2009		2008		$ Increase (Decrease)			% Increase (Decrease)
Property revenues:
	Minimum rents		$	2,381,043	$	2,468,761	$	(87,718	)		(3.6	)%
	Tenant recoveries			1,041,755		1,086,831		(45,076	)		(4.1	)
	Overage rents			60,085		82,343		(22,258	)		(27.0	)
	Other, including non controlling interest			142,135		174,241		(32,106	)		(18.4	)
		Total property revenues		3,625,018		3,812,176		(187,158	)		(4.9	)
Property operating expenses:
	Real estate taxes			328,556		319,251		9,305			2.9
	Repairs and maintenance			269,899		271,787		(1,888	)		(0.7	)
	Marketing			41,588		51,927		(10,339	)		(19.9	)
	Other property operating costs			531,991		560,038		(28,047	)		(5.0	)
	Provision for doubtful accounts			36,462		21,315		15,147			71.1
		Total property operating expenses		1,208,496		1,224,318		(15,822	)		(1.3	)
Retail and other net operating income			$	2,416,522	$	2,587,858	$	(171,336	)		(6.6	)%

        The $87.7 million decrease in minimum rents in 2009 compared to 2008 was due to a decline in occupancy during the year that resulted in a decrease of approximately $16 million. Also contributing to the decrease is a reduction of temporary tenant base rent revenue of $35.7 million in 2009 compared to 2008 and a reduction of straight-line rent of $11.5 million in 2009 compared to 2008. In addition, minimum rents decreased due to a $12.7 million decrease in termination income, which was $29.1 million in 2009 compared to $41.8 million in 2008. The remaining decreases are primarily the result of decreased occupancy rates and a decrease of $4.9 million due to the sale of three office buildings and two office parks in 2008.

        Certain of our leases include both a base rent component and a component which requires tenants to pay amounts related to all, or substantially all, of their share of real estate taxes and certain property operating expenses, including common area maintenance and insurance. The portion of the tenant rent from these leases attributable to real estate tax and operating expense recoveries is recorded as tenant recoveries. The decrease in tenant recoveries is primarily attributable to the decrease in certain property operating expenses. In addition, the decrease was due to an allowance of $15.0 million for tenant audit claims recorded in the fourth quarter of 2009. Also contributing to the decrease is the decline in occupancy and tenants converting to gross leases in 2009.

        The decrease in Overage Rent is primarily due to a decrease in comparable tenant sales as a result of the current challenging economic environment impacting many of our tenants throughout the Company Portfolio, particularly at The Grand Canal Shoppes, Fashion Show and Ala Moana Center.

        Other revenues include all other property revenues including vending, parking, gains or losses on dispositions of certain property transactions, sponsorship and advertising revenues, less NOI of non-controlling interests. The decrease in other revenues is primarily attributable to dispositions of land parcels at Kendall Town Center that resulted in a $3.9 million loss on sale of land in 2009 and as compared to a $4.3 million gain on sale of land in 2008 as well as a $6.4 million gain on sale of a Woodlands office property in 2008. In addition, the decrease in other revenues is also attributable to reduced occupancy and activity in food and beverage revenue at the Woodlands Hotel and Conference

43

Center in 2009. Finally, the decrease was attributable to lower sponsorship, show and display revenue in 2009.

        Real estate taxes increased in 2009 across the Company Portfolio, a portion of which is recoverable from tenants. A portion of the increase is attributable to a decrease in the amount of capitalized real estate taxes due to decreased development activity.

        Repairs and maintenance decreased due to decreases in controllable common area and contracted costs, substantially offset by increases related to property preservation and upkeep in 2009.

        Marketing expenses decreased in 2009 across the Company Portfolio as the result of continued company-wide efforts to consolidate marketing functions and reduce advertising spending. The largest savings were the result of reductions in advertising costs, contracted services and payroll.

        Other property operating costs decreased primarily due to reductions in property specific payroll costs, professional fees, decreased security expense, lower insurance costs, and lower office expenses due to our 2009 implementation of certain cost savings programs.

        The provision for doubtful accounts increased across the Company Portfolio in 2009 primarily due to an increase in tenant bankruptcies and increased aging of tenant receivables resulting from the current economic conditions.

Master Planned Communities Segment

(In thousands)		2009			2008			$ Increase (Decrease)			% Increase (Decrease)
Land sales		$	83,990		$	138,746		$	(54,756	)		(39.5	)%
Land sales operations			(84,491	)		(109,752	)		(25,261	)		(23.0	)
	Master Planned Communities net operating income before provision for impairment		(501	)		28,994			(29,495	)		(101.7	)
Provision for impairment			(108,691	)		(40,346	)		68,345			169.4
	Master Planned Communities net operating loss	$	(109,192	)	$	(11,352	)	$	(97,840	)		(861.9	)%

        The decrease in land sales, land sales operations and NOI in 2009 was the result of a significant reduction in sales volume and lower margins at our Summerlin, Bridgeland and The Woodlands residential communities. These volume decreases were partially offset by the bulk sale in 2009 of the majority of the remaining single family lots in our Fairwood community in Maryland for considerably lower margins than previous Fairwood sales, for which we recorded a $52.8 million provision for impairment in 2009 and the sale of a residential parcel for use in the development of luxury apartments and town homes in our Columbia, Maryland community.

        In 2009, we sold 426.4 residential acres compared to 272.5 acres in 2008. We sold 94.8 acres of commercial lots in 2009 compared to 84.6 acres in 2008 as average prices for lots have declined as compared to 2008. As of December 31, 2009, the master planned communities have approximately 17,300 remaining saleable acres.

        Finally, we recorded a provision for impairment of $55.9 million in 2009 and $40.3 million in 2008 related to our Nouvelle at Natick condominium project which reflects the change in management's intent and business strategy with respect to marketing and pricing, reduced potential of future price increases and the likelihood that the period to complete unit sales will extend beyond the original project term.

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Certain Significant Consolidated Revenues and Expenses

(In thousands)	2009			2008			$ Increase (Decrease)			% Increase (Decrease)
Tenant rents	$	2,927,947		$	3,085,972		$	(158,025	)		(5.1	)%
Land sales		45,997			66,557			(20,560	)		(30.9	)
Property operating expense		994,545			1,007,407			(12,862	)		(1.3	)
Land sales operations		50,807			63,441			(12,634	)		(19.9	)
Management and other fee revenue		65,268			85,773			(20,505	)		(23.9	)
Property management and other costs		176,876			184,738			(7,862	)		(4.3	)
General and administrative		28,608			39,245			(10,637	)		(27.1	)
Strategic Initiatives		67,341			18,727			48,614			259.6
Provisions for impairment		1,223,810			116,611			1,107,199			949.5
Litigation (benefit)		—			(57,145	)		57,145			(100.0	)
Depreciation and amortization		755,161			759,930			(4,769	)		(0.6	)
Interest expense		1,311,283			1,325,273			(13,990	)		(1.1	)
(Benefit from) provision for income taxes		(14,610	)		23,461			(38,071	)		(162.3	)
Equity in income of Unconsolidated Real Estate Affiliates		4,635			80,594			(75,959	)		(94.2	)
Reorganization items		146,190			—			146,190			(100.0	)
Discontinued operations—(loss) gain on dispositions		(966	)		55,044			(56,010	)		(101.8	)

        Changes in consolidated tenant rents (which includes minimum rents, tenant recoveries and Overage Rent), land sales, property operating expenses (which includes real estate taxes, repairs and maintenance, marketing, other property operating costs and provision for doubtful accounts) and land sales operations were attributable to the same items discussed above in our segment basis results, excluding those items related to our Unconsolidated Properties. Management and other fees revenues, property management and other costs and general and administrative in the aggregate represent our costs of doing business and are generally not direct property-related costs.

        The decrease in management and other fees in 2009 is primarily due to a $15.3 million decrease in development fee income resulting from a significant decline in development activity. In addition, lease fee and specialty lease fee income decreased $4.8 million in 2009.

        The decrease in property management and other costs in 2009 is primarily due to a decrease in wages and benefits of $38.5 million. In addition, professional fees, personnel, travel, marketing, office and occupancy costs decreased $18.2 million as the result of cost reduction efforts. These decreases were offset by a $42.4 million reduction in capitalized overhead, which resulted in higher net expenses in 2009, and increased bonuses of $3.7 million.

        The decrease in general and administrative expense in 2009 is primarily due to the $15.4 million of additional deemed, non-cash executive compensation expense related to certain senior officer loans (Note 2) that was incurred in 2008 as well as reductions in employment levels in 2009. This decrease was partially offset by increased executive compensation of $4.8 million.

        The increase in strategic initiatives in 2009 is primarily due to a $43.1 million of professional fees for restructuring and strategic initiatives incurred through the Petition Date. Such costs are classified as reorganization items subsequent to the Petition Date. In addition, we incurred $24.2 million of additional expense related to the write off of various financing costs on proposed transactions which were not completed in 2009.

        See Note 1 for a detail description of the provisions for impairment that we recognized in 2009 and 2008.

45

        The decrease in interest expense is primarily due to a decrease in the Credit Facility interest expense compared to 2008 due to a decrease in interest rates. The decrease in interest expense was partially offset by a decrease in the amount of capitalized interest as a result of decreased development spending in 2009.

        The benefit from income taxes in 2009 was primarily attributable to tax benefit related to the provisions for impairment of $35.5 million related to our West Kendall development, $52.8 million related to our Fairwood master planned community and $55.9 million related to our Nouvelle at Natick condominium project. The benefit from income taxes was partially offset by an increase in the valuation allowances on our deferred tax assets as a result of Chapter 11.

        The decrease in equity in income of Unconsolidated Real Estate Affiliates is primarily due to a significant decrease in land sales at our Woodlands Partnership joint venture in 2009 compared to 2008. The decrease is also attributable to our share of the impairment provisions recognized in 2009 on certain operating properties and development projects (Note 5) and to the currency conversion related to our international joint ventures in Turkey and Brazil as well as to the overall decline in real estate net operating income from the remaining joint venture interests.

        Reorganization items are expense or income items that were incurred or realized by the Debtors as a result of the Chapter 11 Cases. These items include professional fees and similar types of expenses incurred directly related to the bankruptcy filings, loss accruals or gains or losses resulting from activities of the reorganization process and interest earned on cash accumulated by the Debtors. See Note 2—Reorganization Items for additional detail.

Year Ended December 31, 2008 and 2007

        The Homart I acquisition in July 2007 impacted the consolidated revenue and expense items in our consolidated financial statements, as the acquisition resulted in the consolidation of the operations of the properties acquired. Historically, the Company's share of such operations was reflected as equity in income of Unconsolidated Real Estate Affiliates. Under the proportionate share method, segment operations also were significantly impacted by the Homart I acquisition, as an additional 50% share of the operations of the properties is included in the Retail and Other segment results after the purchase date of July 2007. Accordingly, discussion of the operational results below for the year ended December 31, 2008 as compared to the year ended December 31, 2007 has been limited to only those elements of operating trends that were not a function of the 2007 Homart I acquisition.

46

Retail and Other Segment

        The following table compares major revenue and expense items:

(In thousands)			2008		2007		$ Increase (Decrease)			% Increase (Decrease)
Property revenues:
	Minimum rents		$	2,468,761	$	2,339,915	$	128,846			5.5	%
	Tenant recoveries			1,086,831		1,033,287		53,544			5.2
	Overage rents			82,343		101,229		(18,886	)		(18.7	)
	Other, including non controlling interest			174,241		198,794		(24,553	)		(12.4	)
		Total property revenues		3,812,176		3,673,225		138,951			3.8
Property operating expenses:
	Real estate taxes			319,251		296,962		22,289			7.5
	Repairs and maintenance			271,787		257,095		14,692			5.7
	Marketing			51,927		66,897		(14,970	)		(22.4	)
	Other property operating costs			560,038		568,444		(8,406	)		(1.5	)
	Provision for doubtful accounts			21,315		7,404		13,911			187.9
		Total property operating expenses		1,224,318		1,196,802		27,516			2.3
Retail and other net operating income			$	2,587,858	$	2,476,423	$	111,435			4.5	%

        Higher effective rents contributed to the increase in minimum rents in 2008, as a result of significant increases at Ala Moana Center, Otay Ranch Town Center, West Oaks Mall, Tysons Galleria and The Grand Canal Shoppes. Minimum rents also increased as a result of the acquisition of The Shoppes at The Palazzo and the completion of the development at The Shops at Fallen Timbers and the redevelopment at Natick Collection. In addition, termination income increased, which was $41.8 million for 2008 compared to $35.4 million for 2007. Additionally, the increase was partially offset by the reduction in rent due to the sale of three office buildings and two office parks in 2008.

        Certain of our leases include both a base rent component and a component which requires tenants to pay amounts related to all, or substantially all, of their share of real estate taxes and certain property operating expenses, including common area maintenance and insurance. The portion of the tenant rent from these leases attributable to real estate tax and operating expense recoveries are recorded as tenant recoveries. The increase in tenant recoveries in 2008 is primarily attributable to the increased GLA in 2008 as a result of the acquisition of The Shoppes at The Palazzo, the completion of the development at The Shops at Fallen Timbers and the redevelopment at Natick Collection.

        The decrease in Overage Rent is primarily due to a decrease in comparable tenant sales as a result of the current challenging economic environment that began impacting many of our tenants throughout our portfolio of properties, in late 2008, including The Grand Canal Shoppes, South Street Seaport, Oakbrook Mall and Tysons Galleria. These decreases were partially offset by increases resulting from the acquisition of The Shoppes at The Palazzo and the completion of the redevelopment at Natick Collection.

        Other revenues include all other property revenues including vending, parking, sponsorship and advertising revenues, less NOI of non controlling interests. The decrease in other revenues is primarily attributable to The Woodlands Partnership which sold various office buildings and other properties during 2007 resulting in lower recorded amounts of other revenues in 2008 compared to 2007.

        Real estate taxes increased in 2008 partially due to increases resulting from the acquisition of The Shoppes at The Palazzo and the completion of the redevelopment at Natick Collection.

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        Repairs and maintenance increased in 2008 primarily due to increased hurricane related repair expenses (a portion of which were recoverable under the terms of our insurance policies) at various properties as well as higher costs for contracted cleaning services, resulting from higher costs of benefits. The acquisition of The Shoppes at The Palazzo and the completion of the development of The Shops at Fallen Timbers and the completion of the redevelopment at Natick Collection also contributed to the increase.

        Marketing expenses decreased in 2008 across the Company Portfolio as the result of continued company-wide efforts to consolidate marketing functions and reduce advertising spending. This decrease was partially offset by increased marketing expenditures at The Shoppes at The Palazzo.

        The increase in provision for doubtful accounts is primarily due a reduction of the provision in 2007 related to the collection of a portion of the hurricane insurance settlement for Oakwood Center in 2007.

Master Planned Communities Segment

(In thousands)		2008			2007			$ Increase (Decrease)			% Increase (Decrease)
Land sales		$	138,746		$	230,666		$	(91,920	)		(39.8	)%
Land sales operations			(109,752	)		(174,521	)		(64,769	)		(37.1	)
	Master Planned Communities net operating income before provision for impairment		28,994			56,145			(27,151	)		(48.4	)
Provision for impairment			(40,346	)		(127,600	)		(87,254	)		(68.4	)
	Master Planned Communities net operating (loss) income	$	(11,352	)	$	(71,455	)	$	60,103			84.1	%

        The decrease in land sales and land sales operations and NOI in 2008 was the result of a significant reduction in sales volume and lower achieved margins at our Summerlin, Maryland, Bridgeland and The Woodlands residential communities. In 2008, we sold 272.5 residential acres compared to 409.1 acres in 2007. We sold 84.6 acres of commercial lots in 2008 compared to 163.2 acres in 2007. As of December 31, 2008, the master planned communities had 18,040 remaining saleable acres.

        The provision for impairment recorded at Nouvelle at Natick reflects the continued weak demand and the likely extension of the period required to complete all unit sales at this residential condominium project. Sales of condominium units commenced in the fourth quarter 2008.

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Certain Significant Consolidated Revenues and Expenses

(In thousands)	2008			2007			$ Increase (Decrease)			% Increase (Decrease)
Tenant rents	$	3,085,972		$	2,882,491		$	203,481			7.1	%
Land sales		66,557			145,649			(79,092	)		(54.3	)
Property operating expenses		1,007,407			941,405			66,002			7.0
Land sales operations		63,441			116,708			(53,267	)		(45.6	)
Management and other fees		85,773			106,584			(20,811	)		(19.5	)
Property management and other costs		184,738			198,610			(13,872	)		(7.0	)
General and administrative		39,245			37,005			2,240			6.1
Strategic initiatives		18,727			—			18,727			100.0
Provisions for impairment		116,611			130,533			(13,922	)		(10.7	)
Litigation (benefit) provision		(57,145	)		89,225			(146,370	)		(164.0	)
Depreciation and amortization		759,930			670,454			89,476			13.3
Interest expense		1,325,273			1,191,466			133,807			11.2
Provision for (benefit from) income taxes		23,461			(294,160	)		317,621			(108.0	)
Equity in income of Unconsolidated Real Estate Affiliates		80,594			158,401			(77,807	)		(49.1	)
Discontinued operations—gain on dispositions		55,044			—			55,044			100.0

        Changes in consolidated tenant rents (which includes minimum rents, tenant recoveries and Overage Rent), land sales, property operating expenses (which includes real estate taxes, repairs and maintenance, marketing, other property operating costs and provision for doubtful accounts) and land sales operations were attributable to the same items discussed above in our segment basis results, excluding those items related to our Unconsolidated Properties.

        Management and other fees, property management and other costs and general and administrative in the aggregate represent our costs of doing business and are generally not direct property-related costs. The decrease in management and other fees in 2008 were primarily due to lower development fees as projects are completed and leasing commissions resulting from current market conditions and the 2007 cessation of management fees on the 19 GGP/Homart I Properties due to the acquisition of NCSCPF's interesting these properties in July 2007.

        The decrease in property management and other costs in 2008 were primarily due to lower leasing commissions and lower overall management costs, including bonus expense, stock compensation expense and travel expense primarily related to a reduction in personnel and other cost reduction efforts.

        The increase in general and administrative in 2008 is primarily due to the $15.4 million of additional deemed, non-cash executive compensation expense related to certain senior officer loans (Note 2). These increases in general and administrative were partially offset by the decrease in our allocated share of legal fees related to the Homart II—Glendale Matter settlement (below and Note 2).

        Strategic initiatives of $18.7 million include professional fees for restructuring and advisory services.

        In addition to the provisions for impairment recognized in our Master Planned Communities segment describe above, based on the results of our evaluations for impairment (Note 2), we recognized impairment charges of $7.8 million in the third quarter of 2008 related to our Century Plaza (Birmingham, Alabama) operating property and $4.0 million in the fourth quarter of 2008 related to our Southshore Mall (Aberdeen, Washington) operating property. We also recognized impairment charges of $31.7 million throughout 2008 related to the write down of various pre-development costs that were determined to be non-recoverable due to the related projects being terminated which is the

49

result of the current depressed retail real estate market and our liquidity situation. We recognized similar impairment charges for pre-development projects in the amount of $2.9 million in 2007. In addition, in the fourth quarter 2008, we recognized an impairment charge related to allocated goodwill of $32.8 million.

        The decrease in litigation provision is due to the settlement and mutual release agreement with Caruso Affiliated Holdings LLC in December 2008 (Note 1) that released the defendants from all past, present and future claims related to the Homart II—Glendale Matter in exchange for a settlement payment of $48.0 million, which was paid from the appellate bond cash collateral amounts in January 2009. GGP has not been reimbursed for any portion of this payment by its 50% joint venture partner in GGP/Homart II, and we will reimburse $5.5 million of costs to such joint venture partner in connection with the settlement. Accordingly, in December 2008, we adjusted our liability for the full judgment amount of $89.4 million to $48 million and reversed legal fees incurred by GGP/Homart II of $14.2 million that were previously recorded at 100% by GGP and post-judgment related interest expense of $7.0 million. The net impact of these items related to the settlement is a credit of $57.1 million reflected in litigation provision in our consolidated financial statements.

        The increase in depreciation and amortization is primarily due to a cumulative adjustment to the useful lives of certain assets in 2007.

        The increase in interest expense is primarily due to higher debt balances at of December 31, 2008 compared to December 31, 2007, that was primarily the result of the new multi property financing and/or re-financings in 2008 as well as increased rates at. Fashion Show, The Shoppes at the Palazzo and Tucson in the fourth quarter of 2008. The financing activity in the fourth quarter of 2008 resulted in significant increases in interest rates and loan fees. In addition, the financing of the secured portfolio facility also increased interest expense in 2008. Lastly, the increase in interest expense was also due to a decrease in the amount of capitalized interest as a result of decreased development spending in 2008 compared to 2007. See Liquidity and Capital Resources for information regarding 2008 financing activity and Item 7A, "Quantitative and Qualitative Disclosures About Market Risk," for additional information regarding the potential impact of future interest rate increases.

        The increase in provision for (benefit from) income taxes in 2008 was primarily attributable to tax benefits received in 2007 related to an internal restructuring of certain of our operating properties that were previously owned by TRS and the tax benefit related to the provision for impairment at our master planned communities in 2007.

        The decrease in equity in income of Unconsolidated Real Estate Affiliates is primarily due to a significant decrease in our share of income related to GGP/Homart II in 2008, as a result of the settlement of the Glendale matter as we reflect our 50% share of legal costs ($7.1 million) that had previously been recorded at 100% as general and administrative in our consolidated financial statements. In addition, our share of income related to The Woodlands joint ventures decreased due to the gain on sale of the Marriott Hotel in 2007. Lastly, a change in estimate of the useful life for certain intangible assets resulted in lower depreciation expense across the TRCLP joint ventures in 2007.

        The discontinued operations, net of minority interest—gains on dispositions represents the gains from the sale of three office buildings and two office parks, as discussed above, in 2008.

Liquidity and Capital Resources

        As of December 31, 2009 our consolidated debt ($24.46 billion) and our share of the debt of our Unconsolidated Real Estate Affiliates ($3.12 billion) aggregated $27.58 billion. The Chapter 11 cases triggered defaults on substantially all of the debt obligations of the Debtors, approximately $21.83 billion of our consolidated debt, which defaults were stayed under section 362 of Chapter 11.

50

These debt obligations and substantially all other pre-petition obligations of the Debtors are subject to settlement under a plan of reorganization which must be confirmed by the Bankruptcy Court.

        As of March 1, 2010, $10.65 billion of our consolidated debt associated with the Track 1 Debtors was restructured, does not mature until dates after January 1, 2014 and we expect to be able to refinance or extend such debt on the applicable maturity dates. However, we have $11.19 billion of consolidated debt still subject to settlement under a plan or plans of reorganization. Such debt, excluding debt market rate adjustments and the discount on the Senior Exchangeable Notes, consists of the following:

•

$2.58 billion under our Second Amended and Restated Credit Agreement (the "2006 Credit Facility")

•

$1.55 billion of 3.98% Exchangeable Senior Notes due 2027 issued by GGPLP (the "Exchangeable Notes")

•

$2.25 billion of Unsecured bonds issued by TRCLP

•

$206.2 million of trust preferred securities issued by GGP Capital Trust I, a subsidiary of GGPLP

•

$2.50 billion of the Remaining Secured Debtors

•

$1.70 billion of debt related to other Track 1 Debtors that have not emerged

        With respect to our share of the debt of our Unconsolidated Real Estate Affiliates, (excluding Woodlands MPS and Brazil) $513.8 million matures in 2010 and $1.17 billion matures in 2011. Of such amounts, our share of the debt of one of our Unconsolidated Real Estate Affiliates, approximately $78.3 million, has been extended until 2014.

        The Debtors filed bankruptcy because they did not have sufficient liquidity to pay their debts as they became due. We currently believe that we will be able to extend the maturity date or refinance the debts of our Unconsolidated Real Estates Affiliates at our current contract rate. If we are unable to extend or refinance such loans, or are unable to do so on satisfactory terms, we may not have sufficient liquidity to pay these debts.

        The costs for the Track 1 Debtors to emerge from bankruptcy and restructure their associated secured mortgage loans are currently estimated to be $626 million, approximately $165 million of which is not payable until the earlier of the emergence of the TopCo Debtors or December 31, 2010. Through February 19, 2010, we have paid $270 million of the costs to emerge and restructure the Track 1 Debtors' secured mortgage debt and currently anticipate that we will have sufficient liquidity to pay the amounts due prior to the emergence of the TopCo Debtors. Such costs include payment of $45.7 million in escrow to fund required insurance, tax, ground rent, capital expenditure, anchor and other escrows. In addition, amortization on the restructured loans of the Track 1 Debtors resumes or commences on emergence and is estimated to be approximately $226 million in 2010 and approximately $2 billion over the next five years. These restructured loans also have financial covenants, primarily debt service coverage ratios, which will restrict our cash and operations.

        We are continuing to pursue consensual restructurings of the Secured Portfolio Loan, the Fashion Show/Palazzo loans and the remaining secured mortgage debt to extend the maturity dates and are prepared to pursue a non-consensual solution if necessary. We have commenced a process to explore all potential alternatives for emergence of the TopCo Debtors. A stand alone restructuring of the TopCo Debtors is currently estimated to require approximately $1.5 billion of new capital. This new capital requirement is a current estimate, subject to change, and is based upon a number of assumptions that are also subject to change. Such assumptions include, but are not limited to, repayment of the DIP Facility in cash, conversion of amounts outstanding under the 2006 Credit

51

Facility, the GGPLP Exchangeable Notes and the TRCLP bonds to GGP equity, sale or give back of the Special Consideration Properties and payment of the dividend to GGP stockholders in a combination of 90% stock and 10% cash through 2011.

        The $2.625 proposed equity commitment from Brookfield and related plan of reorganization, if consummated in accordance with the terms of the agreement in principal, could enable GGP to emerge form bankruptcy on a stand alone basis. However, the plan is subject to definitive documentation, Bankruptcy Court approval, and higher and better offers, and there can be no assurance that such equity investment or related plan will be consummated.

        Our ability to continue as a going concern, as described in Note 1, is dependent upon our ability to restructure our debt and complete plans of reorganization for the 2010 Track Debtors.

Summary of Cash Flows

Cash Flows from Operating Activities

        Net cash provided by operating activities was $871.3 million for the year ended December 31, 2009 and $556.4 million for the year ended December 31, 2008.

        Cash used for Land/residential development and acquisitions expenditures was $78.2 million for the year ended December 31, 2009 a decrease from $166.1 million for the year ended December 31, 2008 as we have slowed the pace of residential land development in 2009 in light of sales pace declines.

        As a result of the settlement of the Glendale Matter (Note 1), $67.1 million that was previously paid as cash collateral for the appellate bond was refunded to the Company resulting in an increase in net cash provided by operating activities of $134.1 million.

        Net cash provided by (used in) certain assets and liabilities, including accounts and notes receivable, prepaid expense and other assets, deferred expenses, and accounts payable and accrued expenses totaled $357.0 million in 2009 and $(117.6) million in 2008. Accounts payable and accrued expenses increased $424.8 million primarily as a result of an increase in accrued interest and liabilities stayed by our bankruptcy filings. Although liabilities not subject to compromise and certain liabilities subject to compromise have been approved for payment by the Bankruptcy Court, a significant portion of our liabilities subject to compromise are subject to settlement under a plan of reorganization and have not been paid. In addition, accounts and notes receivable increased $22.6 million from December 31, 2008 to December 31, 2009, whereas, such accounts decreased $12.7 million from December 31, 2007 to December 31, 2008.

Cash Flows from Investing Activities

        Net cash used in investing activities was $334.6 million for the year ended December 31, 2009 and $1. 21 billion for the year ended December 31, 2008.

        Cash used for acquisition/development of real estate and property additions/improvements was $252.8 million for the year ended December 31, 2009 a decline from $1.19 billion for the year ended December 31, 2008 primarily due to the completion, suspension or termination of a number of development projects in late 2008 and early 2009.

        Net investing cash used in our Unconsolidated Real Estate Affiliates was $89.7 million in 2009 and $102.3 million in 2008.

Cash Flows from Financing Activities

        Net cash (used in) provided by financing activities was $(51.3) million for the year ended December 31, 2009 and $722.0 million for the year ended December 31, 2008.

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        New financings exceeded principal payments by $20.4 million for the year ended December 31, 2009 and $418.7 million for the year ended December 31, 2008.

        Distributions to common stockholders, holders of Common Units and holders of perpetual and convertible preferred units totaled $1.3 million for the year ended December 31, 2009 and $476.6 million for the year ended December 31, 2008.

Contractual Cash Obligations and Commitments

        The following table aggregates our subsequent contractual cash obligations and commitments as of to December 31, 2009:

	2010		2011		2012		2013		2014		Subsequent / Other(6)		Total
	(In thousands)
Long-term debt-principal(1)	$	1,114,925	$	191,366	$	1,006,706	$	481,140	$	1,626,788	$	3,194,262	$	7,615,187
Interest payments(2)		377,137		362,951		335,668		290,183		211,221		246,762		1,823,922
Retained debt-principal		119,694		775		37,742		—		—		—		158,211
Ground lease payments(3)		9,181		8,999		8,970		9,015		9,078		344,405		389,648
Purchase obligations(4)		150,746		—		—		—		—		—		150,746
Uncertainty in income taxes, including interest		—		—		—		—		—		129,413		129,413
Other long-term liabilities(5)		—		—		—		—		—		—		—
Total	$	1,771,683	$	564,091	$	1,389,086	$	780,338	$	1,847,087	$	3,914,842	$	10,267,127

(1)

Excludes $17.15 billion of long-term debt principal, net of $9.2 million of non-cash debt market rate adjustments, that is subject to compromise and non-cash market rate adjustments of $314.4 million that are not subject to compromise all at December 31, 2009.

(2)

Based on rates as of December 31, 2009. Variable rates are based on a LIBOR rate of 0.23%. Excludes interest payments related to debt that is subject to compromise, market rate adjustments and SIDS.

(3)

Excludes non-cash purchase accounting adjustments of $225.8 million related to ground lease payments.

(4)

Reflects accrued and incurred construction costs payable. Routine trade payables have been excluded. We expect, or are obligated to incur, development and redevelopment expenditures of $247.8 million from 2010 through 2012 (Note 14).

(5)

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 $280.9 million in 2009, $274.3 million in 2008, and $246.5 million in 2007.

(6)

The remaining uncertainty in income taxes liability for which reasonable estimates about the timing of payments cannot be made is disclosed within the Subsequent/Other column.

        In the normal course of business, from time to time, we are involved in legal proceedings relating to the ownership and operations of our properties (reference is made to Item 3 above, which description is incorporated into this response).

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        We lease land or buildings at certain properties from third parties. The leases generally provide us with a right of first refusal in the event of a proposed sale of the property by the landlord. Rental payments are expensed as incurred and have, to the extent applicable, been straight-lined over the term of the lease. Contractual rental expense, including participation rent, was $19.0 million in 2009, $19.3 million in 2008 and $19.5 million in 2007, while the same rent expense excluding amortization of above and below-market ground leases and straight-line rents, as presented in our consolidated financial statements, was $12.7 million in 2009, $12.4 million in 2008 and $12.0 million in 2007.

Off-Balance Sheet Financing Arrangements

        We do not have any off-balance sheet financing arrangements.

REIT Requirements

        In order to remain qualified as a real estate investment trust for federal income tax purposes, we must distribute or pay tax on 100% of our capital gains and at least 90% of our ordinary taxable income to stockholders. We may not have sufficient liquidity to meet these distribution requirements. In determining distributions, the Board of Directors considers operating cash flow. The Board of Directors may alternatively elect to pay a portion of any required dividend in stock.

Seasonality

        Although we have a year-long temporary leasing program, occupancies for short-term tenants and, therefore, rental income recognized, are higher during the second half of the year. In addition, the majority of our tenants have December or January lease years for purposes of calculating annual Overage Rent amounts. Accordingly, Overage Rent thresholds are most commonly achieved in the fourth quarter. As a result, revenue production is generally highest in the fourth quarter of each year.

Use of Estimates

        The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. For example, significant estimates and assumptions have been made with respect to: Fair Value (as defined below) of assets for measuring impairment of operating properties, development properties, joint ventures and goodwill; valuation of debt of emerged entities, useful lives of assets; capitalization of development and leasing costs; provision for income taxes; recoverable amounts of receivables and deferred taxes; initial valuations and related amortization periods of deferred costs and intangibles, particularly with respect to property acquisitions; and cost ratios and completion percentages used for land sales. Actual results could differ from those estimates.

Critical Accounting Policies

        Critical accounting policies are those that are both significant to the overall presentation of our financial condition and results of operations and require management to make difficult, complex or subjective judgments. Our critical accounting policies are those applicable to the following:

Adoption of New Accounting Pronouncements

        As of January 1, 2009 we adopted the following two accounting pronouncements that required retrospective application, in which all periods presented reflect the necessary changes.

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        As of January 1, 2009, we adopted a new generally accepted accounting principle related to convertible debt instruments that may be settled in cash upon conversion, which required us to separately account for the liability and equity components of our Exchangeable Notes (Note 6) in a manner that reflects the nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. The impact of the required retrospective application of this pronouncement on our consolidated financial statements is that the Exchangeable Notes have been reflected as originally being issued at a discount, with such discount being reflected in subsequent periods as a non-cash increase in interest expense.

        As of January 1, 2009, we adopted a new generally accepted accounting principle related to noncontrolling interests in consolidated financial statements, which changed the reporting for minority interests in our consolidated joint ventures by re-characterizing them as noncontrolling interests and re-classifying certain of such minority interests as a component of permanent equity in our Consolidated Balance Sheets. The minority interests related to our common and preferred Operating Partnership units have been re-characterized as redeemable noncontrolling interests and will remain as temporary equity at a mezzanine level in our Consolidated Balance Sheets presented at the greater of the carrying amount adjusted for the noncontrolling interest's share of the allocation of income or loss (and its share of other comprehensive income or loss) and dividends or the Fair Value (as defined below) as of each measurement date subsequent to the measurement date. Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date ("Fair Value"). The excess of the Fair Value over the carrying amount from period to period is charged to Additional paid-in capital on our Consolidated Balance Sheets. These principles also changed the presentation of the income allocated to minority interests by re-characterizing it as allocations to noncontrolling interests and re-classifying such income as an adjustment to net income to arrive at net income attributable to common stockholders.

Accounting for Reorganization

        The accompanying consolidated financial statements and the combined condensed financial statements of the Debtors presented below have been prepared in accordance with the generally accepted accounting principles related to financial reporting by entities whose cases are pending under the Bankruptcy Code. Such consolidated financial statements are also prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the ordinary course of business. Such accounting guidance also provides that if a debtor, or group of debtors, has significant combined assets and liabilities of entities which are not operating under Chapter 11 bankruptcy protection, the debtors and non-debtors should continue to be combined. However, separate disclosure of financial statement information solely relating to the debtor entities should be presented. Additionally, due to the various effective dates in December 2009 of the plans of reorganization for the Track 1A Debtors discussed above, a convenience date of December 31, 2009 was elected for the accounting for the emergence from bankruptcy of the Track 1A Debtors.

Classification of Liabilities Subject to Compromise

        Liabilities not subject to compromise include: (1) liabilities held by Non-Debtor and Track 1A Debtor entities; (2) liabilities incurred after the Petition Date; (3) pre-petition liabilities that the Track 1B Debtors and the 2010 Track Debtors expect to pay in full; and (4) liabilities related to pre-petition contracts that have not been rejected pursuant to section 365 of the Bankruptcy Code. Unsecured liabilities not subject to compromise at December 31, 2009 with respect to the Track 1A Debtors are reflected at the current estimate of the probable amounts to be paid even though the amounts of such unsecured liabilities ultimately to be allowed by the Bankruptcy Court (and therefore paid at 100% pursuant to the Track 1 Plans) have not yet been determined. With respect to secured liabilities, GAAP

55

bankruptcy guidance provides that Track 1A Debtor mortgage loans should be recorded at their estimated Fair Value.

Reorganization Items

        Reorganization items under the Chapter 11 Cases are expense or income items that were incurred or realized by the Debtors as a result of the Chapter 11 Cases and are presented separately in the Consolidated Statements of Income and Comprehensive Income and in the condensed combined statements of operations of the Debtors presented above. These items include professional fees and similar types of expenses and gains directly related to the Chapter 11 Cases, resulting from activities of the reorganization process, and interest earned on cash accumulated by the Debtors as a result of the Chapter 11 Cases.

Impairment—Operating properties, land held for development and sale and developments in progress

        We review our consolidated and unconsolidated real estate assets, including operating properties, land held for development and sale and developments in progress, for potential impairment indicators whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

        Impairment indicators for our retail and other segment are assessed separately for each property and include, but are not limited to, significant decreases in real estate property net operating income, significant occupancy percentage changes and strategic determinations as reflected in certain bankruptcy plans of reorganization, either prospective, or filed and confirmed.

        Impairment indicators for our Master Planned Communities segment are assessed separately for each community and include, but are not limited to, significant decreases in sales pace or average selling prices, significant increases in expected land development and construction costs or cancellation rates, and projected losses on expected future sales.

        Impairment indicators for pre-development costs, which are typically costs incurred during the beginning stages of a potential development, and developments in progress are assessed by project and include, but are not limited to, significant changes in projected completion dates, revenues or cash flows, development costs, market factors and sustainability of development projects.

        If an indicator of potential impairment exists, the asset is tested for recoverability by comparing its carrying amount to the estimated future undiscounted operating cash flow. A real estate asset is considered to be impaired when its carrying amount cannot be recovered through estimated future undiscounted cash flows. To the extent an impairment provision is necessary, the excess of the carrying amount of the asset over its estimated Fair Value is expensed to operations. In addition, the impairment is allocated proportionately to adjust the carrying amount of the asset. The adjusted carrying amount, which represents the new cost basis of the asset, is depreciated over the remaining useful life of the asset.

Impairment—Investment in Unconsolidated Real Estate Affiliates

        We review our investment in the Unconsolidated Real Estate Affiliates for a series of operating losses of an investee or other factors (including those discussed above) that may indicate that a decrease in value of our investment in the Unconsolidated Real Estate Affiliates has occurred which is other-than-temporary. The investment in each of the Unconsolidated Real Estate Affiliates is evaluated periodically and as deemed necessary for recoverability and valuation declines that are other than temporary. Accordingly, in addition to the property-specific impairment analysis that we perform on the investment properties owned by such joint ventures (as part of our investment properties and developments in progress impairment process described above), we also consider the ownership and distribution preferences and limitations and rights to sell and repurchase of our ownership interests. If

56

we determine that the decline in value of our investment is other than temporary, it is written down to its estimated Fair Value.

Impairment—Goodwill

        We review our goodwill for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Since each individual rental property or each operating property is an operating segment and considered a reporting unit, we perform this test by first comparing the estimated Fair Value of each property with our book value of the property, including, if applicable, its allocated portion of aggregate goodwill. We assess Fair Value based on estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions. If the book value of a property, including its goodwill, exceeds its estimated Fair Value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. In this second step, if the implied Fair Value of goodwill is less than the book value of goodwill, then an impairment charge would be recorded.

Recoverable amounts of receivables and deferred tax assets

        We make periodic assessments of the collectibility of receivables (including those resulting from the difference between rental revenue recognized and rents currently due from tenants) and the recoverability of deferred taxes based on a specific review of the risk of loss on specific accounts or amounts. The receivable analysis places particular emphasis on past-due accounts and considers the nature and age of the receivables, the payment history and financial condition of the payee, the basis for any disputes or negotiations with the payee and other information which may impact collectibility. For straight-line rents receivable, the analysis considers the probability of collection of the unbilled deferred rent receivable given our experience regarding such amounts. For deferred tax assets, an assessment of the recoverability of the tax asset considers the current expiration periods of the prior net operating loss carryforwards or other asset and the estimated future taxable income of our taxable REIT subsidiaries. The resulting estimates of any allowance or reserve related to the recovery of these items is subject to revision as these factors change and is sensitive to the effects of economic and market conditions on such payees and our taxable REIT subsidiaries.

Capitalization of development and leasing costs

        We capitalize the costs of development and leasing activities of our properties. These costs are incurred both at the property location and at the regional and corporate office levels. The amount of capitalization depends, in part, on the identification and justifiable allocation of certain activities to specific projects and leases. Differences in methodologies of cost identification and documentation, as well as differing assumptions as to the time incurred on projects, can yield significant differences in the amounts capitalized and, as a result, the amount of depreciation recognized.

Revenue recognition and related matters

        Minimum rent revenues are recognized on a straight-lined basis over the terms of the related leases. Minimum rent revenues also include amounts collected from tenants to allow the termination of their leases prior to their scheduled termination dates and accretion related to above and below-market tenant leases on acquired properties. Straight-line rents receivable represents the current net cumulative rents recognized prior to when billed and collectible as provided by the terms of the leases. Overage Rent is recognized on an accrual basis once tenant sales exceed contractual tenant lease thresholds. Recoveries from tenants are established in the leases or computed based upon a formula

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related to real estate taxes, insurance and other shopping center operating expenses and are generally recognized as revenues in the period the related costs are incurred.

        Revenues from land sales are recognized using the full accrual method provided that various criteria relating to the terms of the transactions and our subsequent involvement with the land sold are met. Revenues relating to transactions that do not meet the established criteria are deferred and recognized when the criteria are met or using the installment or cost recovery methods, as appropriate in the circumstances. For land sale transactions in which we are required to perform additional services and incur significant costs after title has passed, revenues and cost of sales are recognized on a percentage of completion basis.

        Cost ratios for land sales are determined as a specified percentage of land sales revenues recognized for each master planned community project. The cost ratios used are based on actual costs incurred and estimates of development costs and sales revenues for completion of each project. The ratios are reviewed regularly and revised for changes in sales and cost estimates or development plans. Significant changes in these estimates or development plans, whether due to changes in market conditions or other factors, could result in changes to the cost ratio used for a specific project. The specific identification method is used to determine cost of sales for certain parcels of land, including acquired parcels we do not intend to develop or for which development is complete at the date of acquisition.

Recently Issued Accounting Pronouncements and Developments

        As described in Note 15 to the consolidated financial statements, new accounting pronouncements have been issued which are effective for the current or subsequent year.

Inflation

        Substantially all of our tenant leases contain provisions designed to partially mitigate the negative impact of inflation. Such provisions include clauses enabling us to receive Overage Rent based on tenants' gross sales, which generally increase as prices rise, and/or escalation clauses, which generally increase rental rates during the terms of the leases. In addition, many of the leases expire each year which may enable us to replace or renew such expiring leases with new leases at higher rents. Finally, many of the existing leases require the tenants to pay amounts related to all, or substantially all, of their share of certain operating expenses, including common area maintenance, real estate taxes and insurance, thereby partially reducing our exposure to increases in costs and operating expenses resulting from inflation. In general, these amounts either vary annually based on actual expenditures or are set on an initial share of costs with provisions for annual increases. Only if inflation exceeds the rate set in the leases for annual increases (typically 4% to 5%) would increases in expenses due to inflation be a risk.

        Inflation also poses a risk to us due to the probability of future increases in interest rates. Such increases would adversely impact us due to our outstanding variable-rate debt. In certain cases, we have previously limited our exposure to interest rate fluctuations related to a portion of our variable-rate debt by the use of interest rate cap and swap agreements. Such agreements, subject to current market conditions, allow us to replace variable-rate debt with fixed-rate debt in order to achieve our desired ratio of variable-rate to fixed rate date. However, in an increasing interest rate environment the fixed rates we can obtain with such replacement fixed-rate cap and swap agreements or the fixed-rate on new debt will also continue to increase.

ITEM 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

        We are subject to market risk associated with changes in interest rates both in terms of variable-rate debt and the price of new fixed-rate debt upon maturity of existing debt and for

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acquisitions. As of December 31, 2009, we had consolidated debt of $24.46 billion, including $5.28 billion of variable-rate debt. Although the majority of the remaining variable-rate debt is subject to interest rate cap agreements, such interest rate caps generally limit our interest rate exposure only if LIBOR exceeds a rate per annum significantly higher (generally above 8% per annum) than current LIBOR rates (0.23% at December 31, 2009). A 25 basis point movement in the interest rate on the $5.28 billion of variable-rate debt would result in a $13.2 million annualized increase or decrease in consolidated interest expense and operating cash flows.

        In addition, we are subject to interest rate exposure as a result of variable-rate debt collateralized by the Unconsolidated Properties for which similar interest rate swap agreements have not been obtained. Our share (based on our respective equity ownership interests in the Unconsolidated Real Estate Affiliates) of such remaining variable-rate debt was $390.1 million at December 31, 2009. A similar 25 basis point annualized movement in the interest rate on the variable-rate debt of the Unconsolidated Real Estate Affiliates would result in an approximately $1.0 million annualized increase or decrease in our equity in the income and operating cash flows from Unconsolidated Real Estate Affiliates.

        We are further subject to interest rate risk with respect to our fixed-rate financing in that changes in interest rates will impact the Fair Value of our fixed-rate financing. For additional information concerning our debt, and management's estimation process to arrive at a Fair Value of our debt as required by GAAP, reference is made to Item 7, Liquidity and Capital Resources and Notes 2 and 6. At December 31, 2009, the Fair Value of our debt has been estimated for this purpose to be $93.6 million lower than the carrying amount of $7.30 billion.

        We have not entered into any transactions using derivative commodity instruments.

ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

        Reference is made to the Consolidated Financial Statements and Consolidated Financial Statement Schedule beginning on page F-1 for the required information.

ITEM 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

        None.

ITEM 9A.    CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

        As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including the Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15(d)-15(e) under the Securities Exchange Act of 1934, as amended, (the "Exchange Act")). Based on that evaluation, the CEO and the CFO have concluded that our disclosure controls and procedures are effective.

Internal Controls over Financial Reporting

        There have been no changes in our internal controls during our most recently completed fiscal quarter that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

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Management's Report on Internal Control Over Financial Reporting

        Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is a process designed under the supervision of our principal executive and principal financial officers to provide reasonable assurance regarding the reliability of financial reporting and preparation of our financial statements for external reporting purposes in accordance with generally accepted accounting principles in the U.S.

        As of December 31, 2009, we conducted an assessment of the effectiveness of our internal control over financial reporting based on the framework utilizing the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in "Internal Controls—Integrated Framework." Based on this assessment, management believes that, as of December 31, 2009, the Company maintained effective internal controls over financial reporting. Deloitte & Touche LLP, the independent registered accounting firm who audited our consolidated financial statements contained in this Form 10-K, has issued a report on our internal control over financial reporting, which is incorporated herein.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of
General Growth Properties, Inc.
Chicago, Illinois

We have audited the internal control over financial reporting of General Growth Properties, Inc. (Debtor-in-Possession) and subsidiaries (the "Company") as of December 31, 2009, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company's internal control over financial reporting is a process designed by, or under the supervision of, the company's principal executive and principal financial officers, or persons performing similar functions, and effected by the company's board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected on a timely basis. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2009, based on the criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements as of and for the year ended December 31, 2009 of the Company and our report dated March 1, 2010 expressed an unqualified opinion on those consolidated financial statements and included explanatory paragraphs regarding the Company's bankruptcy proceedings, the Company's ability to continue as a going concern, and the Company's change in methods of accounting for noncontrolling interests and convertible debt instruments.

/s/ Deloitte & Touche LLP

Chicago, Illinois
March 1, 2010

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ITEM 9B.    OTHER INFORMATION

        Not applicable.

PART III

ITEM 10.    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

        Our Chief Executive Officer and Chief Financial Officer have signed certificates under Sections 302 and 906 of the Sarbanes-Oxley Act, which are filed as Exhibits 31.1 and 31.2 and 32.1 and 32.2, respectively, to this Annual Report.

        All other information required to be presented for this Item 10 shall be provided by amendment no later than April 30, 2010.

ITEM 11.    EXECUTIVE COMPENSATION

        All information required to be presented for this Item 11 shall be provided by amendment no later than April 30, 2010.

ITEM 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

        All information required to be presented for this Item 12 shall be provided by amendment no later than April 30, 2010.

        The following table sets forth certain information with respect to shares of our common stock that may be issued under our equity compensation plans as of December 31, 2009.

Plan Category	(a) Number of securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights		(b) Weighted Average Exercise Price of Outstanding Options, Warrants and Rights		(c) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))
Equity compensation plans approved by security holders(1)		4,407,025	$	53.82		4,309,195	(2)
Equity compensation plans not approved by security holders(3)		1,800,000	$	3.73		n/a
		6,207,025	$	39.29		4,309,195

(1)

Includes shares of common stock under the 1993 Stock Incentive Plan (which terminated on April 4, 2003), the 1998 Incentive Stock Plan (which terminated December 31, 2008) and the 2003 Incentive Stock Plan.

(2)

Reflects shares of common stock available for issuance under the 2003 Incentive Stock Plan.

(3)

Represents shares of common stock under employment agreements dated November 2, 2008 with Adam S. Metz, the Company's Chief Executive Officer, and Thomas H. Nolan, Jr. the Company's President and Chief Operating Officer (the "Agreements"). Pursuant to the Agreements, the Company granted each of Messrs. Metz and Nolan an employment inducement award of options to acquire 1,000,000 and 800,000 shares, respectively, of the Company's common stock (the "Option Grants"). The Option Grants were awarded in accordance with the Exchange employment inducement grant exemption and were therefore not awarded under any of the Company's stockholder approved equity plans. These stock options have an exercise price equal to the closing

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price of the Company's common stock on November 3, 2008 and vested in their entirety on October 25, 2009.

ITEM 13.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

        All information required to be presented in this Item 13 shall be provided by amendment no later than April 30, 2010.

ITEM 14.    PRINCIPAL ACCOUNTING FEES AND SERVICES

        All information required to be presented in this Item 14 shall be provided by amendment no later than April 30, 2010.

PART IV

ITEM 15.    EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)

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.

(b)

Exhibits.

See Exhibit Index on page S-1.

(c)

Separate financial statements.

        Not applicable.

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SIGNATURES

        Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

GENERAL GROWTH PROPERTIES, INC.
/s/ ADAM METZ Adam Metz
Chief Executive Officer	March 1, 2010

        We, the undersigned officers and directors of General Growth Properties, Inc., hereby severally constitute Adam Metz, Thomas Nolan and Edmund Hoyt, and each of them singly, our true and lawful attorneys with full power to them, and each of them singly, to sign for us and in our names in the capacities indicated below, any and all amendments, to this Annual Report of Form 10-K and generally to do all such things in our name and behalf in such capacities to enable General Growth Properties, Inc. to comply with the applicable provisions of the Securities Exchange Act of 1934, and we hereby ratify and confirm our signatures as they may be signed by our said attorneys, or any of them, to any and all such amendments.

        Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ JOHN BUCKSBAUM John Bucksbaum	Director and Chairman of the Board	March 1, 2010
/s/ ADAM METZ Adam Metz	Director and Chief Executive Officer (Principal Executive Officer)	March 1, 2010
/s/ THOMAS NOLAN, JR. Thomas Nolan, Jr.	Director, President and Chief Operating Officer	March 1, 2010
/s/ EDMUND HOYT Edmund Hoyt	Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)	March 1, 2010
/s/ WILLIAM ACKMAN William Ackman	Director	March 1, 2010

64

Signature	Title	Date
/s/ ALAN COHEN Alan Cohen	Director	March 1, 2010
/s/ ANTHONY DOWNS Anthony Downs	Director	March 1, 2010
/s/ JOHN HALEY John Haley	Director	March 1, 2010
/s/ JOHN RIORDAN John Riordan	Director	March 1, 2010
/s/ GLENN RUFRANO Glenn Rufrano	Director	March 1, 2010
/s/ BETH STEWART Beth Stewart	Director	March 1, 2010

65

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
AND CONSOLIDATED FINANCIAL STATEMENT SCHEDULE

        The following consolidated financial statements and consolidated financial statement schedule are included in Item 8 of this Annual Report on Form 10-K:

				Page Number
Consolidated Financial Statements
	Reports of Independent Registered Public Accounting Firms:
		General Growth Properties, Inc.		F-2
		GGP/Homart II, L.L.C		F-4
		GGP-TRS, L.L.C.		F-5
	Consolidated Balance Sheets as of December 31, 2009 and 2008			F-6
	Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2009, 2008 and 2007			F-7
	Consolidated Statements of Equity for the years ended December 31, 2009, 2008 and 2007			F-8
	Consolidated Statements of Cash Flows for the years ended December 31, 2009, 2008 and 2007			F-10
	Notes to Consolidated Financial Statements:
		Note 1	Organization	F-12
		Note 2	Summary of Significant Accounting Policies	F-15
		Note 3	Acquisitions and Intangibles	F-40
		Note 4	Discontinued Operations and Gains (Losses) on Dispositions of Interests in Operating Properties	F-42
		Note 5	Unconsolidated Real Estate Affiliates	F-42
		Note 6	Mortgages, Notes and Loans Payable	F-57
		Note 7	Income Taxes	F-61
		Note 8	Rentals under Operating Leases	F-66
		Note 9	Transactions with Affiliates	F-66
		Note 10	Stock-Based Compensation Plans	F-66
		Note 11	Other Assets and Liabilities	F-71
		Note 12	Noncontrolling Interests	F-73
		Note 13	Accumulated Other Comprehensive (Loss) Income	F-74
		Note 14	Commitments and Contingencies	F-74
		Note 15	Recently Issued Accounting Pronouncements	F-76
		Note 16	Segments	F-76
		Note 17	Quarterly Financial Information (Unaudited)	F-82
Consolidated Financial Statement Schedule
	Report of Independent Registered Public Accounting Firm			F-84
	Schedule III—Real Estate and Accumulated Depreciation			F-85

        All other schedules are omitted since the required information is either not present in any amounts, is not present in amounts sufficient to require submission of the schedule or because the information required is included in the consolidated financial statements and related notes.

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of
General Growth Properties, Inc.
Chicago, Illinois

We have audited the accompanying consolidated balance sheets of General Growth Properties, Inc. (Debtor-in-Possession) and subsidiaries (the "Company") as of December 31, 2009 and 2008, and the related consolidated statements of income and comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2009. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We did not audit the consolidated financial statements of GGP/Homart II L.L.C. and GGP-TRS L.L.C., the Company's investments in which are accounted for by use of the equity method. The Company's equity of $219,618,000 and $235,845,000 in GGP/Homart II L.L.C.'s net assets as of December 31, 2009 and 2008, respectively, and of $(307,000), $9,703,000, and $17,163,000 in GGP/Homart II L.L.C's net (loss) income for each of the three years in the respective period ended December 31, 2009 are included in the accompanying financial statements. The Company's (deficit) equity of $(5,284,000) and $1,388,000 in GGP-TRS L.L.C.'s net assets as of December 31, 2009 and 2008, respectively, and of $(8,624,000), $8,564,000, and $13,800,000 in GGP-TRS L.L.C.'s net (loss) income for each of the three years in the respective period ended December 31, 2009 are included in the accompanying financial statements. The financial statements of GGP/Homart II L.L.C. and GGP-TRS L.L.C. were audited by other auditors related to the periods listed above whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for such companies, is based solely on the reports of the other auditors.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits and the reports of the other auditors provide a reasonable basis for our opinion.

In our opinion, based on our audits and the reports of the other auditors, such consolidated financial statements present fairly, in all material respects, the financial position of General Growth Properties, Inc. and subsidiaries as of December 31, 2009 and 2008, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2009, in conformity with accounting principles generally accepted in the United States of America.

As discussed in Note 2 to the consolidated financial statements, on January 1, 2009, the Company changed its methods of accounting for noncontrolling interests and convertible debt instruments and retrospectively adjusted all periods presented in the consolidated financial statements.

As discussed in Note 1 to the consolidated financial statements, the Company has filed for reorganization under Chapter 11 of the United States Bankruptcy Code. The accompanying financial statements do not purport to reflect or provide for the consequences of the bankruptcy proceedings. In particular, such financial statements do not purport to show (a) as to assets, their realizable value on a liquidation basis or their availability to satisfy liabilities; (b) as to prepetition liabilities, the amounts that may be allowed for claims or contingencies, or the status and priority thereof; (c) as to equity accounts, the effect of any changes that may be made in the capitalization of the Company; or (d) as to operations, the effect of any changes that may be made in its business.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company's potential inability to negotiate and obtain confirmation of a

F-2

mutually agreeable plan of reorganization and to address their remaining future debt maturities raise substantial doubt about the Company's ability to continue as a going concern. Management's plans concerning these matters are also discussed in Note 1 to the consolidated financial statements. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company's internal control over financial reporting as of December 31, 2009, based on the criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 1, 2010 expressed an unqualified opinion on the Company's internal control over financial reporting based on our audit.

/s/ Deloitte & Touche LLP
Chicago, Illinois
March 1, 2010

F-3

Report of Independent Registered Public Accounting Firm

The Members
GGP/Homart II, L.L.C.:

        We have audited the consolidated balance sheets of GGP/Homart II, L.L.C. (a Delaware Limited Liability Company) and subsidiaries (the Company) as of December 31, 2009 and 2008, and the related consolidated statements of income and comprehensive income, changes in capital, and cash flows for each of the years in the three-year period ended December 31, 2009 (not presented separately herein). These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

        We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

        In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of GGP/Homart II, L.L.C. and subsidiaries as of December 31, 2009 and 2008, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2009, in conformity with U.S. generally accepted accounting principles.

/s/ KPMG LLP

Chicago, Illinois
February 24, 2010

F-4

Report of Independent Registered Public Accounting Firm

The Members
GGP-TRS, L.L.C.:

        We have audited the consolidated balance sheets of GGP-TRS, L.L.C. (a Delaware Limited Liability Company) and subsidiaries (the Company) as of December 31, 2009 and 2008, and the related consolidated statements of income and comprehensive income, changes in members' capital, and cash flows for each of the years in the three-year period ended December 31, 2009 (not presented separately herein). These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

        We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

        In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of GGP-TRS, L.L.C. and subsidiaries as of December 31, 2009 and 2008, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2009, in conformity with U.S. generally accepted accounting principles.

/s/ KPMG LLP

Chicago, Illinois
February 24, 2010

F-5

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

CONSOLIDATED BALANCE SHEETS

				December 31,
				2009			2008
				(Dollars in thousands)
Assets:
Investment in real estate:
	Land			$	3,327,447		$	3,354,480
	Buildings and equipment				22,851,511			23,609,132
	Less accumulated depreciation				(4,494,297	)		(4,240,222	)
	Developments in progress				417,969			1,076,675
		Net property and equipment			22,102,630			23,800,065
	Investment in and loans to/from Unconsolidated Real Estate Affiliates				1,979,313			1,869,929
	Investment property and property held for development and sale				1,753,175			1,823,362
		Net investment in real estate			25,835,118			27,493,356
Cash and cash equivalents					654,396			168,993
Accounts and notes receivable, net					404,041			385,334
Goodwill					199,664			340,291
Deferred expenses, net					301,808			333,901
Prepaid expenses and other assets					754,747			835,455
		Total assets		$	28,149,774		$	29,557,330
Liabilities and Equity:
Liabilities not subject to compromise:
	Mortgages, notes and loans payable			$	7,300,772		$	24,756,577
	Investment in and loans to/from Unconsolidated Real Estate Affiliates				38,289			32,294
	Deferred tax liabilities				866,400			868,978
	Accounts payable and accrued expenses				1,122,888			1,539,149
		Liabilities not subject to compromise			9,328,349			27,196,998
Liabilities subject to compromise					17,767,253			—
	Total liabilities				27,095,602			27,196,998
Redeemable noncontrolling interests:
	Preferred				120,756			120,756
	Common				86,077			379,169
		Total redeemable noncontrolling interests			206,833			499,925
Commitments and Contingencies					—			—
Redeemable Preferred Stock: $100 par value; 5,000,000 shares authorized; none issued and outstanding					—			—
Equity:
	Common stock: $.01 par value; 875,000,000 shares authorized, 313,831,411 shares issued as of December 31, 2009 and 270,353,677 shares issued as of December 31, 2008				3,138			2,704
	Additional paid-in capital				3,729,453			3,454,903
	Retained earnings (accumulated deficit)				(2,832,627	)		(1,488,586	)
	Accumulated other comprehensive loss				(249	)		(56,128	)
	Less common stock in treasury, at cost, 1,449,939 shares as of December 31, 2009 and 2008				(76,752	)		(76,752	)
		Total stockholders' equity			822,963			1,836,141
	Noncontrolling interests in consolidated real estate affiliates				24,376			24,266
		Total equity			847,339			1,860,407
			Total liabilities and equity	$	28,149,774		$	29,557,330

The accompanying notes are an integral part of these consolidated financial statements.

F-6

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

			Years Ended December 31,
			2009			2008			2007
			(Dollars in thousands, except for per share amounts)
Revenues:
	Minimum rents		$	1,992,046		$	2,085,758		$	1,933,674
	Tenant recoveries			883,595			927,332			859,801
	Overage rents			52,306			72,882			89,016
	Land sales			45,997			66,557			145,649
	Management and other fees			65,268			85,773			106,584
	Other			96,602			123,223			127,077
		Total revenues		3,135,814			3,361,525			3,261,801
Expenses:
	Real estate taxes			280,895			274,317			246,484
	Repairs and maintenance			232,624			234,987			216,536
	Marketing			34,363			43,426			54,664
	Other property operating costs			416,332			436,804			418,295
	Land sales operations			50,807			63,441			116,708
	Provision for doubtful accounts			30,331			17,873			5,426
	Property management and other costs			176,876			184,738			198,610
	General and administrative			28,608			39,245			37,005
	Strategic Initiatives			67,341			18,727			—
	Provisions for impairment			1,223,810			116,611			130,533
	Litigation (benefit) provision			—			(57,145	)		89,225
	Depreciation and amortization			755,161			759,930			670,454
		Total expenses		3,297,148			2,132,954			2,183,940
Operating (loss) income				(161,334	)		1,228,571			1,077,861
Interest income				3,321			3,197			8,641
Interest expense				(1,311,283	)		(1,325,273	)		(1,191,466	)
Loss before income taxes, noncontrolling interests, equity in income of Unconsolidated Real Estate Affiliates and reorganization items				(1,469,296	)		(93,505	)		(104,964	)
Benefit from (provision for) income taxes				14,610			(23,461	)		294,160
Equity in income of Unconsolidated Real Estate Affiliates				4,635			80,594			158,401
Reorganization items				146,190			—			—
(Loss) income from continuing operations				(1,303,861	)		(36,372	)		347,597
Discontinued operations—(loss) gain on dispositions				(966	)		55,044			—
Net (loss) income				(1,304,827	)		18,672			347,597
Allocation to noncontrolling interests				20,138			(13,953	)		(73,955	)
Net (loss) income attributable to common stockholders			$	(1,284,689	)	$	4,719		$	273,642
Basic and Diluted (Loss) Earnings Per Share:
	Continuing operations		$	(4.11	)	$	(0.16	)	$	1.12
	Discontinued operations			—			0.18			—
		Total basic and diluted (loss) earnings per share	$	(4.11	)	$	0.02		$	1.12
Dividends declared per share			$	0.19		$	1.50		$	1.85
Comprehensive Income (loss), Net:
	Net (loss) income		$	(1,304,827	)	$	18,672		$	347,597
	Other comprehensive income (loss):
		Net unrealized gains (losses) on financial instruments		18,148			(32,060	)		(2,792	)
		Accrued pension adjustment		763			(1,947	)		298
		Foreign currency translation		47,008			(75,779	)		34,057
		Unrealized gains (losses) on available-for-sale securities		533			(159	)		(1	)
	Other comprehensive income (loss)			66,452			(109,945	)		31,562
		Comprehensive (loss) income allocated to noncontrolling interests		(10,573	)		18,160			(5,486	)
	Comprehensive (loss) income, net, attributable to common stockholders		$	(1,248,948	)	$	(73,113	)	$	373,673

The accompanying notes are an integral part of these consolidated financial statements.

F-7

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

CONSOLIDATED STATEMENTS OF EQUITY

	Common Stock		Additional Paid-In Capital			Retained Earnings (Accumulated Deficit)			Accumulated Other Comprehensive Income (Loss)		Treasury Stock			Noncontrolling Interests in Consolidated Real Estate Affiliates			Total Equity
	(Dollars in thousands)
Balance, December 31, 2006 (as previously reported)	$	2,424	$	2,533,898		$	(922,519	)	$	9,582	$	(13,434	)	$	—		$	1,609,951
Cumulative effect of change in accounting principles				(2,585,552	)										8,084			(2,577,468	)
Adjusted balance, January 1, 2007	$	2,424	$	(51,654	)	$	(922,519	)	$	9,582	$	(13,434	)	$	8,084		$	(967,517	)
Net income							273,642								1,564			275,206
Cash distributions declared ($1.85 per share)							(450,854	)										(450,854	)
Distributions to noncontrolling interests in consolidated Real Estate Affiliates															(2,191	)		(2,191	)
Conversion of operating partnership units to common stock (1,086,961 common shares)		11		7,684														7,695
Conversion of convertible preferred units to common stock (29,269 common shares)				488														488
Issuance of common stock (1,582,968 common shares and 144,068 treasury shares)		15		64,022			(1,661	)				6,657						69,033
Shares issued pursuant to CSA (551,632 common shares and 146,969 treasury shares)		6		29,875								6,790						36,671
Restricted stock grant, net of forfeitures and compensation expense (96,500 common shares)		1		2,695														2,696
Purchase of treasury stock (1,806,900 treasury shares)												(95,648	)					(95,648	)
Tax benefit from stock option exercises				3,531														3,531
Other comprehensive income										26,076								26,076
Adjustment for equity component of exchangeable senior notes				139,882														139,882
Adjustment for noncontrolling interest in operating partnership				(65,431	)													(65,431	)
Adjust noncontrolling interest in OP Units				713,515														713,515
Balance, December 31, 2007	$	2,457	$	844,607		$	(1,101,392	)	$	35,658	$	(95,635	)	$	7,457		$	(306,848	)

F-8

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

CONSOLIDATED STATEMENTS OF EQUITY (Continued)

	Common Stock			Additional Paid-In Capital			Retained Earnings (Accumulated Deficit)			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Noncontrolling Interests in Consolidated Real Estate Affiliates			Total Equity
	(Dollars in thousands)
Net income								4,719									2,453			7,172
Cash distributions declared ($1.50 per share)								(389,481	)											(389,481	)
Contributions from noncontrolling interests in consolidated Real Estate Affiliates																	14,356			14,356
Conversion of operating partnership units to common stock (1,178,142 common shares)		12			9,135															9,147
Conversion of convertible preferred units to common stock (15,000 common shares)					250															250
Issuance of common stock (23,128,356 common shares and 50 treasury shares)		232			830,053									3						830,288
Shares issued pursuant to CSA (356,661 treasury shares)					(914	)		(2,432	)					18,880						15,534
Restricted stock grant, net of forfeitures and compensation expense (327,433 common shares)		3			4,485															4,488
Tax provision from stock option exercises					(2,675	)														(2,675	)
Officer loan compensation expense					15,372															15,372
Other comprehensive loss											(91,786	)								(91,786	)
Adjustment for noncontrolling interest in operating partnership					(117,447	)														(117,447	)
Adjust noncontrolling interest in OP Units					1,872,037															1,872,037
Balance, December 31, 2008	$	2,704		$	3,454,903		$	(1,488,586	)	$	(56,128	)	$	(76,752	)	$	24,266		$	1,860,407
Net (loss) income								(1,284,689	)								1,822			(1,282,867	)
Distributions declared ($0.19 per share)								(59,352	)											(59,352	)
Distributions to noncontrolling interests in consolidated Real Estate Affiliates																	(1,712	)		(1,712	)
Conversion of operating partnership units to common stock (43,408,053 common shares)		434			324,055															324,489
Issuance of common stock (69,309 common shares)		1			42															43
Restricted stock grant, net of forfeitures and compensation expense (372 common shares)		(1	)		2,669															2,668
Other comprehensive income											55,879									55,879
Adjustment for noncontrolling interest in operating partnership					13,200															13,200
Adjust noncontrolling interest in OP Units					(65,416	)														(65,416	)
Balance, December 31, 2009	$	3,138		$	3,729,453		$	(2,832,627	)	$	(249	)	$	(76,752	)	$	24,376		$	847,339

The accompanying notes are an integral part of these consolidated financial statements.

F-9

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

CONSOLIDATED STATEMENTS OF CASH FLOWS

					Years Ended December 31,
					2009			2008			2007
					(In thousands)
Cash Flows from Operating Activities:
	Net (loss) income				$	(1,304,827	)	$	18,672		$	347,597
	Adjustments to reconcile net (loss) income to net cash provided by operating activities:
			Equity in income of Unconsolidated Real Estate Affiliates			(49,146	)		(80,594	)		(158,401	)
			Provisions for impairment from Unconsolidated Real Estate Affiliates			44,511			—			—
			Provision for doubtful accounts			30,331			17,873			5,426
			Distributions received from Unconsolidated Real Estate Affiliates			37,403			68,240			124,481
			Depreciation			707,183			712,522			635,873
			Amortization			47,978			47,408			34,581
			Amortization of deferred finance costs and debt market rate adjustments			34,621			28,410			(11,073	)
			Amortization of intangibles other than in-place leases			833			(5,691	)		(20,945	)
			Straight-line rent amortization			(26,582	)		(27,827	)		(24,334	)
			Deferred income taxes including tax restructuring benefit			833			(4,144	)		(368,136	)
			Non-cash interest expense on Exchangeable Senior Notes			27,388			25,777			17,369
			Non-cash interest expense resulting from termination of interest rate swaps			(9,635	)		—			—
			Loss (gain) on dispositions			966			(55,044	)		—
			Provisions for impairment			1,223,810			116,611			130,533
			Participation expense pursuant to Contingent Stock Agreement			(4,947	)		2,849			31,884
			Land/residential development and acquisitions expenditures			(78,240	)		(166,141	)		(243,323	)
			Cost of land sales			22,019			24,516			48,794
			Reorganization items—finance costs related to emerged entities			69,802			—			—
			Non-cash reorganization items			(266,916	)		—			—
			Glendale Matter deposit			67,054			(67,054	)		—
			Net changes:
				Accounts and notes receivable		(22,601	)		12,702			(21,868	)
				Prepaid expenses and other assets		(11,123	)		26,845			53,819
				Deferred expenses		(34,064	)		(62,945	)		(37,878	)
				Accounts payable and accrued expenses		355,025			(94,188	)		135,980
				Other, net		9,590			17,644			27,037
			Net cash provided by operating activities			871,266			556,441			707,416
Cash Flows from Investing Activities:
	Acquisition/development of real estate and property additions/improvements					(252,844	)		(1,187,551	)		(1,495,334	)
	Proceeds from sales of investment properties					6,416			72,958			3,252
	Increase in investments in Unconsolidated Real Estate Affiliates					(154,327	)		(227,821	)		(441,438	)
	Distributions received from Unconsolidated Real Estate Affiliates in excess of income					74,330			110,533			303,265
	Loans (to) from Unconsolidated Real Estate Affiliates, net					(9,666	)		15,028			(161,892	)
	Decrease (increase) in restricted cash					6,260			(12,419	)		(11,590	)
	Other, net					(4,723	)		20,282			22,805
		Net cash used in investing activities				(334,554	)		(1,208,990	)		(1,780,932	)

F-10

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

			Years Ended December 31,
			2009			2008			2007
			(In thousands)
Cash Flows from Financing Activities:
	Proceeds from issuance of mortgages, notes and loans payable			—			3,732,716			4,456,863
	Proceeds from issuance of the DIP Facility			400,000			—			—
	Principal payments on mortgages, notes and loans payable			(379,559	)		(3,314,039	)		(2,692,907	)
	Deferred financing costs			(2,614	)		(63,236	)		(28,422	)
	Finance costs related to emerged entities			(69,802	)		—			—
	Cash distributions paid to common stockholders			—			(389,528	)		(450,854	)
	Cash distributions paid to holders of Common Units			(1,327	)		(78,255	)		(96,978	)
	Cash distributions paid to holders of perpetual and convertible preferred units			—			(8,812	)		(13,873	)
	Proceeds from issuance of common stock, including from common stock plans			43			829,291			60,625
	Redemption of preferred minority interests			—			—			(60,000	)
	Purchase of treasury stock			—			—			(95,648	)
	Other, net			1,950			13,871			(2,895	)
		Net cash (used in) provided by financing activities		(51,309	)		722,008			1,075,911
Net change in cash and cash equivalents				485,403			69,459			2,395
Cash and cash equivalents at beginning of period				168,993			99,534			97,139
Cash and cash equivalents at end of period			$	654,396		$	168,993		$	99,534
Supplemental Disclosure of Cash Flow Information:
	Interest paid		$	1,061,512		$	1,342,659		$	1,272,823
	Interest capitalized			53,641			66,244			86,606
	Income taxes paid			19,826			43,835			96,133
	Reorganization items paid			120,726			—			—
Non-Cash Transactions:
	Common stock issued in exchange for Operating Partnership Units		$	324,489		$	9,147		$	7,695
	Common stock issued pursuant to Contingent Stock Agreement			—			15,533			36,671
	Common stock issued in exchange for convertible preferred units			—			250			488
	Change in accrued capital expenditures included in accounts payable and accrued expenses			(86,367	)		67,339			24,914
	Change in deferred contingent property acquisition liabilities			(174,229	)		178,815			—
	Deferred financing costs payable in conjunction with the DIP Facility			19,000			—			—
	Debt market rate adjustment related to emerged entities			342,165			—			—
	Recognition of note payable in conjunction with land held for development and sale			6,520			—			—
	Assumption of debt by purchaser in conjunction with sale of office buildings			—			84,000			—
	Acquisition of joint venture partner share of GGP/Homart, Inc.:
		Total assets		—			—			3,331,032
		Total liabilities		—			—			2,381,942

The accompanying notes are an integral part of these consolidated financial statements.

F-11

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 ORGANIZATION

General

        General Growth Properties, Inc. ("GGP"), a Delaware corporation, is a self-administered and self-managed real estate investment trust, referred to as a "REIT" which, as described in "Debtors in Possession" below, filed for bankruptcy protection under Chapter 11 of Title 11 of the United States Code ("Chapter 11") in the Southern District of New York (the "Bankruptcy Court") on April 16, 2009 (the "Petition Date"). GGP was organized in 1986 and through its subsidiaries and affiliates operates, manages, develops and acquires retail and other rental properties, primarily shopping centers, which are located primarily throughout the United States. GGP also holds assets through its international Unconsolidated Real Estate Affiliates (defined below) in Brazil, Turkey and Costa Rica (Note 5). Additionally, GGP develops and sells land for residential, commercial and other uses primarily in large-scale, long-term master planned community projects in and around Columbia, Maryland; Summerlin, Nevada; and Houston, Texas, as well as one residential condominium project located in Natick (Boston), Massachusetts. In these notes, the terms "we," "us" and "our" refer to GGP and its subsidiaries (the "Company").

        Substantially all of our business is conducted through GGP Limited Partnership (the "Operating Partnership" or "GGPLP"). As of December 31, 2009, common equity ownership (without giving effect to the potential conversion of the Preferred Units as defined below) of the Operating Partnership was as follows:

98	%	GGP, as sole general partner
1		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")
1		Limited partners that include subsequent contributors of properties to the Operating Partnership which are also represented by Common Units.
100	%

        The Operating Partnership also has preferred units of limited partnership interest (the "Preferred Units") outstanding. The terms of the Preferred Units provide that the Preferred Units are convertible into Common Units which then are redeemable for cash or, at our option, shares of GGP common stock on a one-for-one basis (Note 11).

        In addition to holding ownership interests in various joint ventures, the Operating Partnership generally conducts its operations through the following subsidiaries:

•

GGPLP L.L.C., a Delaware limited liability company (the "LLC"), has ownership interests in the majority of our Consolidated Properties (as defined below) (other than those acquired in The Rouse Company merger in November 2004 (the "TRC Merger").

•

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).

F-12

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 1 ORGANIZATION (Continued)

•

General Growth Management, Inc., a TRS which manages, leases, and performs various services for some of our Unconsolidated Real Estate Affiliates (defined below) and 19 properties owned by unaffiliated third parties, all located in the United States and also performs marketing and strategic partnership services at all of our Consolidated Properties ("GGMI").

        In this report, we refer to our ownership interests in properties in which we own a majority or controlling interest and, as a result, are consolidated under generally accepted accounting principles ("GAAP") as the "Consolidated Properties." Some properties are held through joint venture entities in which we own a non-controlling interest ("Unconsolidated Real Estate Affiliates") and we refer to those properties as the "Unconsolidated Properties." Collectively, we refer to the Consolidated Properties and Unconsolidated Properties as our "Company Portfolio."

Debtors in Possession

        In the fourth quarter of 2008 we suspended our cash dividend and halted or slowed nearly all development and redevelopment projects other than those that were substantially complete, could not be deferred as a result of contractual commitments, and joint venture projects. As we had significant past due, or imminently due, and cross-collateralized or cross-defaulted debt on the Petition Date, the Company, the Operating Partnership and certain of the Company's domestic subsidiaries filed voluntary petitions for relief under Chapter 11. On April 22, 2009, certain additional domestic subsidiaries (collectively with the subsidiaries filing on the Petition Date, the Company and the Operating Partnership, the "Debtors") of the Company also filed voluntary petitions for relief in the Bankruptcy Court (collectively, the "Chapter 11 Cases") which the Bankruptcy Court has ruled may be jointly administered. However, neither GGMI, certain of our wholly-owned subsidiaries, nor any of our joint ventures, (collectively, the "Non-Debtors") either consolidated or unconsolidated, have sought such protection.

        In the aggregate, the Debtors, all of which are consolidated in the accompanying consolidated financial statements, own and operate 166 of the more than 200 regional shopping centers that we own and manage. The Non-Debtors are continuing their operations and are not subject to the requirements of Chapter 11. Pursuant to Chapter 11, a debtor is afforded certain protection against its creditors and creditors are prohibited from taking certain actions (such as pursuing collection efforts or proceeding to foreclose on secured obligations) related to debts that were owed prior to the commencement of the Chapter 11 Cases. Accordingly, although the commencement of the Chapter 11 Cases triggered defaults on substantially all debt obligations of the Debtors, creditors are stayed from taking any action as a result of such defaults. Absent an order of the Bankruptcy Court, these pre-petition liabilities are subject to settlement under a plan of reorganization.

        Since the Petition Date, the Bankruptcy Court has granted a variety of Debtors motions that allow the Company to continue to operate its business in the ordinary course without interruption; and covering, among other things, employee obligations, critical service providers, tax matters, insurance matters, tenant and contractor obligations, claim settlements, ordinary course property sales, cash management, cash collateral, alternative dispute resolution, settlement of pre-petition mechanics liens and department store transactions. The Bankruptcy Court has also approved the Debtors' request to enter into a post-petition financing arrangement (the "DIP Facility"), as further discussed in Note 6.

F-13

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 1 ORGANIZATION (Continued)

        During December 2009, January and February 2010, 231 Debtors (the "Track 1 Debtors") owning 119 properties with $12.33 billion of secured mortgage loans filed consensual plans of reorganization (the "Track 1 Plans"). As of December 31, 2009, 113 Debtors owning 50 properties with $4.65 billion secured debt emerged from bankruptcy (the "Track 1A Debtors"). Effectiveness of the plans of reorganization and emergence from bankruptcy of the remaining Track 1 Debtors (the "Track 1B Debtors") continued through February 2010 and is expected to be completed in the first quarter of 2010. In such regard, through March 1, 2010, an additional 92 Debtors owning 57 properties with $5.98 billion of secured mortgage debt emerged from bankruptcy. The Chapter 11 Cases for the remaining Debtors (generally, GGP, GGPLP and other holding company or investment subsidiaries (the "TopCo Debtors") which own certain individual or groups of properties but also certain operating property Debtors, (collectively, the "2010 Track Debtors")) will continue until their respective plans of reorganization are filed with the Bankruptcy Court, approved by the applicable classes of creditors and confirmed by the Bankruptcy Court.

        GGP is continuing to pursue consensual restructurings for 31 Debtors (the "Remaining Secured Debtors") with secured loans aggregating $2.50 billion.

        On December 18, 2009, the Bankruptcy Court approved the payment of a $0.19 per share dividend to holders of record of GGP common stock on December 28, 2009 as declared by the GGP Board of Directors to allow GGP to satisfy the REIT dividend distribution requirements (Note 7) for 2009. The dividend was paid on January 28, 2010 in a combination of approximately $5.9 million in cash and approximately 4.9 million shares of common stock (with a valuation of $10.8455 calculated based on the volume weighted average trading prices of GGP's common stock on January 20, 21 and 22, 2010).

        As described above, we have received legal protection from our creditors pursuant to the Chapter 11 Cases. This protection is limited in duration and the 2010 Track Debtors are currently negotiating the terms of a reorganization plan with our lenders and other stakeholders which is expected to require significant additional equity capital. The Track 1 Plans are a key component of the plan of reorganization currently being developed. We have filed a motion to extend the exclusivity period for us to file a plan until August 26, 2010 and to solicit acceptances of such plan to October 26, 2010. Our motion is currently scheduled to be heard by the Bankruptcy Court on March 3, 2010. Pending entry on order on our motion, the Bankruptcy Court has entered a bridge order extending the exclusivity period until the date that is 7 days following the date on which an order on our extension motion is entered. If an order is entered by the Bankruptcy Court granting our extension motion, it will supersede the bridge order. If the Bankruptcy Court denies our extension motion, the Company will have 7 days following the entry of an order related to the March 3 hearing before exclusivity expires. If we do not file a plan of reorganization for the 2010 Track Debtors prior to the lapse of the exclusivity period, any party in interest would be able to file a plan of reorganization for any of the 2010 Track Debtors.

        Our potential inability to negotiate and obtain confirmation of a mutually agreeable plan of reorganization for the 2010 Track Debtors and to address our remaining future debt maturities raise substantial doubts as to our ability to continue as a going concern. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. However, as a result of the

F-14

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 1 ORGANIZATION (Continued)

Chapter 11 Cases, such realization of assets and satisfaction of liabilities are subject to a significant number of uncertainties. Our consolidated financial statements do not reflect any adjustments related to the recoverability of assets and satisfaction of liabilities that might be necessary should we be unable to continue as a going concern.

Shareholder Rights Plan

        We have a shareholder rights plan (with an expiration date, as amended, of the plan on November 18, 2010) which will impact a potential acquirer unless the acquirer negotiates with our Board of Directors and the Board of Directors approves the transaction. Pursuant to this plan, as amended, one preferred share purchase right (a "Right") is attached to each currently outstanding or subsequently issued share of our common stock. Prior to becoming exercisable, the Rights trade together with our common stock. In general, the Rights will become exercisable if a person or group acquires or announces a tender or exchange offer for 15% or more of our common stock. Each Right entitles the holder to purchase from GGP one-third of one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $100 per share (the "Preferred Stock"), at an exercise price of $105 per one one-thousandth of a share, subject to adjustment. If a person or group acquires 15% or more of our common stock, each Right will entitle the holder (other than the acquirer) to purchase shares of our common stock (or, in certain circumstances, cash or other securities) having a market value of twice the exercise price of a Right at such time. Under certain circumstances, each Right will entitle the holder (other than the acquirer) to purchase the common stock held by the acquirer having a market value of twice the exercise price of a Right at such time. In addition, under certain circumstances, our Board of Directors may exchange each Right (other than those held by the acquirer) for one share of our common stock, subject to adjustment. If the Rights become exercisable, holders of common units of partnership interest in the Operating Partnership, other than GGP, will receive the number of Rights they would have received if their units had been redeemed and the purchase price paid in our common stock.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

        The accompanying consolidated financial statements include the accounts of GGP, our subsidiaries and joint ventures in which we have a controlling interest. For consolidated joint ventures, the noncontrolling partner's share of the assets, liabilities and operations of the joint ventures (generally computed as the joint venture partner's ownership percentage) is included in noncontrolling interests in Consolidated Real Estate Affiliates as permanent equity of the Company. All significant intercompany balances and transactions have been eliminated.

Reclassifications and Adoption of New Accounting Pronouncements

        Certain amounts in the 2008 and 2007 consolidated financial statements have been reclassified to conform to the current period presentation. In addition, as of January 1, 2009 we adopted the following two accounting pronouncements that required retrospective application, in which all periods presented reflect the necessary changes.

F-15

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

        As of January 1, 2009, we retrospectively adopted a new generally accepted accounting principle related to convertible debt instruments that may be settled in cash upon conversion, which required us to separately account for the liability and equity components of our Exchangeable Senior Notes (the "Exchangeable Notes") in a manner that reflects the nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. The impact of the required retrospective application of this pronouncement on our consolidated financial statements is that the Exchangeable Notes have been reflected as originally being issued at a discount, with such discount being reflected through April, 2012 as a non-cash increase in interest expense. Below is a summary of the effects of the retrospective application of this pronouncement on the consolidated financial statements and the Exchangeable Notes.

	December 31, 2009			December 31, 2008
	(In thousands)
Balance Sheet:
Principal amount of liability	$	1,550,000		$	1,550,000
Unamortized discount		(69,348	)		(96,736	)
Carrying amount of liability component	$	1,480,652		$	1,453,264
Carrying amount of equity component	$	139,882		$	139,882

	December 31,
	2009			2008			2007
	(Dollars in thousands)
Income Statement:
Coupon interest	$	61,690		$	61,690		$	41,127
Discount amortization		27,388			25,777			17,369
Total interest	$	89,078		$	87,467		$	58,496
Effective interest rate		5.62	%		5.62	%		5.62	%

	As Previously Reported December 31, 2008		Impact of Retrospective Application			Current Presentation December 31, 2008
	(In thousands)
Balance Sheet
Mortgages, notes and loans payable	$	24,853,313	$	(96,736	)	$	24,756,577

F-16

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

	As Previously Reported December 31, 2008			Impact of Retrospective Application			Current Presentation December 31, 2008
	(Dollars in thousands)
Income Statement
Interest expense	$	(1,299,496	)	$	(25,777	)	$	(1,325,273	)
Allocation to noncontrolling interests		(18,189)	*		4,236			(13,953	)
Net income attributable to common stockholders		26,260			(21,541	)		4,719
Basic and Diluted Earnings Per Share	$	0.10		$	(0.08	)	$	0.02

*

Includes the effect of adoption of new generally accepted accounting principles related to noncontrolling interests in consolidated financial statements on the presentation of noncontrolling interests. See below for further detail.

	As Previously Reported December 31, 2007			Impact of Retrospective Application			Current Presentation December 31, 2007
	(Dollars in thousands)
Income Statement
Interest expense	$	(1,174,097	)	$	(17,369	)	$	(1,191,466	)
Allocation to noncontrolling interests		(77,012	)		3,057			(73,955	)
Net income attributable to common stockholders		287,954			(14,312	)		273,642
Basic and Diluted Earnings Per Share	$	1.18		$	(0.06	)	$	1.12

        As of January 1, 2009, we retrospectively adopted a new generally accepted accounting principle related to noncontrolling interests in consolidated financial statements, which changed the reporting for minority interests in our consolidated joint ventures by re-characterizing them as noncontrolling interests and re-classifying certain of such minority interests as a component of permanent equity in our Consolidated Balance Sheets. The minority interests related to our common and preferred Operating Partnership units have been re-characterized as redeemable noncontrolling interests and will remain as temporary equity at a mezzanine level in our Consolidated Balance Sheets presented at the greater of the carrying amount adjusted for the noncontrolling interest's share of the allocation of income or loss (and its share of other comprehensive income or loss) and dividends or the Fair Value (as defined below) as of each measurement date subsequent to the measurement date. Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date ("Fair Value"). The excess of the Fair Value over the carrying amount from period to period is charged to Additional paid-in capital in our Consolidated Balance Sheets. This also changed the presentation of the income allocated to minority interests by re-characterizing it as allocations to noncontrolling interests and re-classifying such income as an adjustment to net income to arrive at net income attributable to common stockholders.

F-17

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

        As of June 30, 2009, we adopted a new generally accepted accounting principle related to subsequent events which provides guidance on our assessment of subsequent events. The new standard clarifies that we must evaluate, as of each reporting period, events or transactions that occur after the balance sheet date through the date that the financial statements are issued. We performed our assessment of subsequent events and all material events or transactions since December 31, 2009 have been integrated into our disclosures in the accompanying consolidated financial statements.

Accounting for Reorganization

        The accompanying consolidated financial statements and the combined condensed financial statements of the Debtors presented below have been prepared in accordance with the generally accepted accounting principles related to financial reporting by entities in reorganization under the Bankruptcy Code, and on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Such accounting guidance also provides that if a debtor, or group of debtors, has significant combined assets and liabilities of entities which have not sought Chapter 11 bankruptcy protection, the debtors and non-debtors should continue to be combined. However, separate disclosure of financial statement information solely relating to the debtor entities should be presented. Therefore, the combined condensed financial statements presented below solely reflect the results for the Track 1B Debtors and the 2010 Track Debtors.

Combined Condensed Balance Sheet

		December 31, 2009
		(In thousands)
Net investment in real estate		$	17,601,372
Cash and cash equivalents			592,448
Accounts and notes receivable, net			230,138
Other			860,206
	Total Assets	$	19,284,164
Liabilities not subject to compromise:
	Mortgages, notes and loans payable	$	400,000
	Deferred tax liabilities		910,847
	Investment in and loans to/from Unconsolidated Real Estate Affiliates		33,005
	Accounts payable and accrued expenses		766,121
Liabilities subject to compromise			17,767,253
Total redeemable non-controlling interest			206,833
Equity			(799,895	)
	Total Liabilities and Equity	$	19,284,164

        As described above, since the Track 1B Debtors and the 2010 Track Debtors commenced their respective Chapter 11 Cases on two different dates in April 2009, combined condensed statements of operations and the combined condensed statement of cash flows is presented from May 1, 2009 to December 31, 2009.

F-18

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Combined Condensed Statement of Operations

		May 1, 2009 to December 31, 2009
		(In thousands)
Operating Revenues		$	1,140,063
Operating Expenses			(1,591,501	)
	Operating Income		(451,438	)
Interest expense, net			(611,061	)
Provision for income taxes			(4,302	)
Equity in income of Real Estate Affiliates			52,832
Reorganization items			(189,390	)
	Net loss		(1,203,359	)
Allocation to noncontrolling interests			11,028
	Net loss attributable to common stockholders	$	(1,192,331	)

Combined Condensed Statement of Cash Flows

			May 1, 2009 to December 31, 2009
			(In thousands)
Net cash provided by:
	Operating activities		$	623,808
	Investing activities			(278,362	)
	Financing activities			188,225
		Net increase in cash and cash equivalents		533,671
		Cash and cash equivalents, beginning of period		58,777
		Cash and cash equivalents, end of period	$	592,448
Cash paid for reorganization items			$	(41,020	)

Pre-Petition Date claims and Classification of Liabilities Subject to Compromise

        During September 2009, the Debtors filed with the Bankruptcy Court their schedules of the assets and liabilities existing on the Petition Date. In addition, November 12, 2009 was established by the Bankruptcy Court as the general bar date (the date by which most entities that wished to assert a pre-petition claim against a Debtor had to file a proof of claim in writing). The Debtors have made subsequent amendments to those schedules and, as the bar date has passed, are now in the process of evaluating, reconciling and resolving all claims that were timely submitted. The substantial majority of the claims submitted were erroneous, duplicative or protective and the Debtors have filed, and will continue to file, claim objections with the Bankruptcy Court. Claim objections, that is, differences between liability amounts estimated by the Debtors and claims submitted by creditors that cannot be resolved, will be submitted to the Bankruptcy Court which will make a final determination of the allowable claim. The Track 1 Plans provide that all allowed claims, that is, undisputed or Bankruptcy

F-19

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Court affirmed claims of creditors against the Track 1 Debtors, are to be paid in full. Our aggregate liabilities (consisting of Liabilities Subject to Compromise ("LSTC") and not subject to compromise as further described below) include provisions for claims against both the Track 1 Debtors and the 2010 Track Debtors that were timely submitted to the Bankruptcy Court and have been recorded, as appropriate, based upon the GAAP guidance for the recognition of contingent liabilities and on our evaluations of such claims. Accordingly, although submitted proofs of claims against all Debtors exceed the amounts recorded for such claims, we currently believe that the aggregate amount of claims recorded by the Debtors will not vary materially from the amount of claims that will ultimately be allowed or resolved by the Bankruptcy Court.

        Liabilities not subject to compromise include: (1) liabilities held by Non-Debtor and Track 1A Debtor entities; (2) liabilities incurred after the Petition Date; (3) pre-petition liabilities that the Track 1B Debtors and the 2010 Track Debtors expect to pay in full, even though certain of these amounts may not be paid until after the applicable Debtor's plan of reorganization is effective; and (4) liabilities related to pre-petition contracts that affirmatively have not been rejected. Unsecured liabilities not subject to compromise as of December 31, 2009 with respect to the Track 1A Debtors are reflected at the current estimate of the probable amounts to be paid. However, the amounts of such unsecured liabilities related to the associated liabilities not subject to compromise resolved or allowed by the Bankruptcy Court (and therefore paid at 100% pursuant to the Track 1 Plans) has not yet been determined. In such regard, during February 2010, payments commenced on the Track 1 Debtor claims, a process expected to continue for several months as the amounts to be allowed are confirmed by the Bankruptcy Court. With respect to secured liabilities, GAAP bankruptcy guidance provides that Track 1A Debtor mortgage loans should be recorded at their estimated Fair Value upon emergence. A discount of approximately $342.2 million was recorded on such $4.65 billion of secured debt, with the resulting gain classified as a reorganization item. This discount will be accreted on an effective yield basis into interest expense in future periods as a non-cash item until maturity of the related debt obligation. In certain cases, either due to loan modifications which provide, with respect to the Special Consideration Properties (as defined in Note 6), the right to satisfy our obligations to the applicable mortgage lender by assigning title to the property to such lender or due to the non-recourse nature of the loans, the estimated Fair Value of the debt was set to the estimated Fair Value of the property. Similar gains will be recorded in the first quarter of 2010 with respect to the $7.69 billion of mortgage loans related to the Track 1B Debtors that have emerged or will emerge from bankruptcy in 2010.

        All liabilities incurred prior to the Petition Date other than those specified immediately above are considered LSTC. The amounts of the various categories of liabilities that are subject to compromise are set forth below. As described above, these amounts represent the Company's estimates of known or potential pre-petition claims that are likely to be resolved in connection with the Chapter 11 Cases. Such claims remain subject to future adjustments which may result from 2010 Track Debtor/creditor negotiations, actions of the Bankruptcy Court, rejection of executory contracts and unexpired leases, the determination as to the value of any collateral securing claims, amended proofs of claim, or other events. There can be no assurance that the liabilities represented by claims against a particular 2010 Track Debtor will not be found to exceed the Fair Value of its respective assets. This could result in claims being paid at less than 100% of their face value and the equity of the applicable 2010 Track

F-20

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Debtor being diluted or eliminated entirely. The amounts subject to compromise consisted of the following items:

		December 31, 2009
		(In thousands)
Mortgages and secured notes		$	11,148,467
Unsecured notes			6,006,778
Accounts payable and accrued liabilities			612,008
	Total liabilities subject to compromise	$	17,767,253

        The classification of liabilities as LSTC or as liabilities not subject to compromise is based on currently available information and analysis. As the Chapter 11 Cases proceed and additional information is received and analysis is completed, or as the Bankruptcy Court rules on relevant matters, the classification of amounts between LSTC and liabilities not subject to compromise may change. The amount of any such changes could be material.

Reorganization Items

        Reorganization items under the Chapter 11 Cases are expense or income items that were incurred or realized by the Debtors as a result of the Chapter 11 Cases and are presented separately in the Consolidated Statements of Income and Comprehensive Income and in the condensed combined statements of operations of the Debtors presented above. These items include professional fees and similar types of expenses and gains directly related to the Chapter 11 Cases, resulting from activities of the reorganization process, and interest earned on cash accumulated by the Debtors as a result of the Chapter 11 Cases. Unless property-specific or expressly allocated, reorganization items have been considered to be exclusively TopCo Debtor items.

        With respect to certain retained professionals, the terms of engagement and the timing of payment for services rendered are subject to approval by the Bankruptcy Court. In addition, certain of these retained professionals have agreements that provide for success or completion fees that are payable upon the consummation of specified restructuring or sale transactions. A portion of these success or completion fees, currently estimated at approximately $28.4 million in the aggregate, have been deemed probable of being paid and therefore we accrued $7.2 million related to the period from the date the retention of those professionals was approved by the Bankruptcy Court to our estimated date of successful emergence from bankruptcy.

        In addition, the key employee incentive program (the "KEIP") was subject to approval by the Bankruptcy Court. The KEIP is intended to retain certain key employees and provides for payment to these employees upon successful emergence from bankruptcy. A portion of the KEIP, currently estimated at approximately $131 million in the aggregate, has been deemed probable of being paid and therefore, as of December 31, 2009, we have accrued $27.5 million related to the period from the date approved by the Bankruptcy Court to our estimated date of successful emergence from bankruptcy. Although the amount of the KEIP payment is technically uncapped, we estimate the cost to be in the range from zero to approximately $160 million.

F-21

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

        Reorganization items are as follows:

Reorganization Items		Post-Petition Period Ended December 31, 2009
		(In thousands)
Gains on liabilities subject to compromise(1)		$	(350,692	)
Interest income(2)			(34	)
U.S. Trustee fees(3)			3,993
Restructuring costs(4)			200,543
	Total reorganization items	$	(146,190	)

(1)

This amount primarily relates to a $342.2 million gain that resulted from the required Fair Value of debt adjustment for the entities that emerged from bankruptcy in December 2009. This amount also includes repudiation, rejection or termination of contracts or guarantee of obligations. In addition, such gains reflect agreements reached with certain critical vendors (as defined), which were authorized by the Bankruptcy Court and for which payments on an installment basis began in July 2009.

(2)

Interest income primarily reflects amounts earned on cash accumulated as a result of our Chapter 11 cases.

(3)

Estimate of fees due remain subject to confirmation and review by the Office of the United States Trustee ("U.S. Trustee").

(4)

Restructuring costs primarily includes professional fees incured related to the bankruptcy filings; finance costs incurred by and the write off of unamortized deferred finance costs related to the the properties that emerged from bankruptcy in December.

Properties

        Real estate assets are stated at cost less any provisions for impairments. Construction and improvement costs incurred in connection with the development of new properties or the redevelopment of existing properties are capitalized to the extent the total carrying amount of the property does not exceed the estimated Fair Value of the completed property. Real estate taxes and interest costs incurred during construction periods are capitalized. Capitalized interest costs are based on qualified expenditures and interest rates in place during the construction period. Capitalized real estate taxes and interest costs are amortized over lives which are consistent with the constructed assets.

        Pre-development costs, which generally include legal and professional fees and other directly-related third-party costs, are capitalized as part of the property being developed. In the event a development is no longer deemed to be probable, the costs previously capitalized are expensed (see also our impairment policies in this Note 2 below).

        Tenant improvements, either paid directly or in the form of construction allowances paid to tenants, are capitalized and depreciated over the applicable lease term. Maintenance and repairs are

F-22

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

charged to expense when incurred. Expenditures for significant betterments and improvements are capitalized.

        Depreciation or amortization expense is computed using the straight-line method based upon the following estimated useful lives:

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

Impairment

Operating properties, land held for development and sale and developments in progress

        The generally accepted accounting principles related to accounting for the impairment or disposal of long-lived assets require that if impairment indicators exist and the undiscounted cash flows expected to be generated by an asset are less than its carrying amount, an impairment provision should be recorded to write down the carrying amount of such asset to its Fair Value. We review our consolidated and unconsolidated real estate assets, including operating properties, land held for development and sale and developments in progress, for potential impairment indicators whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

        Impairment indicators for our retail and other segment are assessed separately for each property and include, but are not limited to, significant decreases in real estate property net operating income and occupancy percentages.

        Impairment indicators for our Master Planned Communities segment are assessed separately for each community and include, but are not limited to, significant decreases in sales pace or average selling prices, significant increases in expected land development and construction costs or cancellation rates, and projected losses on expected future sales.

        Impairment indicators for pre-development costs, which are typically costs incurred during the beginning stages of a potential development, and developments in progress are assessed by project and include, but are not limited to, significant changes in projected completion dates, revenues or cash flows, development costs, market factors and sustainability of development projects.

        If an indicator of potential impairment exists, the asset is tested for recoverability by comparing its carrying amount to the estimated future undiscounted cash flow. The cash flow estimates used both for determining recoverability and estimating Fair Value are inherently judgmental and reflect current and projected trends in rental, occupancy and capitalization rates, and estimated holding periods for the applicable assets. Although the estimated value of certain assets may be exceeded by the carrying amount, a real estate asset is only considered to be impaired when its carrying amount cannot be recovered through estimated future undiscounted cash flows. To the extent an impairment provision is necessary; the excess of the carrying amount of the asset over its estimated Fair Value is expensed to operations. In addition, the impairment provision is allocated proportionately to adjust the carrying amount of the asset. The adjusted carrying amount, which represents the new cost basis of the asset, is depreciated over the remaining useful life of the asset.

F-23

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

        In 2009, the holding periods for the Special Consideration Properties were reduced to either reflect our probable transfer of such properties to the lender in satisfaction of the secured debt obligation or a change in the estimated holding period with respect to such property in conjunction with the development of our overall plan of reorganization. We recorded impairment charges related to our operating properties, land held for development and sale, and properties under development of $1.08 billion, $83.8 million and $130.5 million for the years ended December 31, 2009, 2008 and 2007, as presented in the table below. All of these impairment charges are included in provisions for impairment in our consolidated financial statements for the years ended December 31, 2009, 2008 and 2007.

Investment in Unconsolidated Real Estate Affiliates

        In accordance with the generally accepted accounting principles related to the equity method of accounting for investments, a series of operating losses of an investee or other factors may indicate that a decrease in value of our investment in the Unconsolidated Real Estate Affiliates has occurred which is other-than-temporary. The investment in each of the Unconsolidated Real Estate Affiliates is evaluated periodically and as deemed necessary for recoverability and valuation declines that are other than temporary. Accordingly, in addition to the property-specific impairment analysis that we perform on the investment properties, land held for development and sale and developments in progress owned by such joint ventures (as part of our investment property impairment process described above), we also considered the ownership and distribution preferences and limitations and rights to sell and repurchase our ownership interests. We recorded impairment charges related to our investments in Circle T Power Center and The Shops at Circle T Ranch joint venture of $10.6 million for the year ended December 31, 2009 to write these investments down to their estimated Fair Value. Based on such evaluations, no provisions for impairment were recorded for the years ended December 31, 2008 and 2007 related to our investments in Unconsolidated Real Estate Affiliates. See Note 5 for further disclosure of the provisions for impairment related to certain properties within our Unconsolidated Real Estate Affiliates.

Goodwill

        The excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired (including identified intangible assets) and liabilities assumed was recorded as goodwill. Goodwill has been recognized and allocated to specific properties in our Retail and Other Segment since each individual rental property or each operating property is an operating segment and considered a reporting unit. The generally accepted accounting principles related to goodwill and other intangible assets states that goodwill should be tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. As of the end of each quarter in 2009, we performed impairment tests on goodwill as changes in current market and economic conditions during each of the quarters in 2009 indicated an impairment of the asset might have occurred. We perform this test by first comparing the estimated Fair Value of each property with our book value of the property, including, if applicable, its allocated portion of aggregate goodwill. We assess Fair Value based on estimated future cash flow projections that utilize discount and capitalization rates which are generally unobservable in the market place (Level 3 inputs) under these principles, but approximate the inputs we believe would be utilized by market participants in assessing fair value.

F-24

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions. If the carrying amount of a property, including its goodwill, exceeds its estimated Fair Value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. In this second step, if the implied Fair Value of goodwill is less than the carrying amount of goodwill, an impairment charge is recorded. Based on our testing methodology, we recorded provisions for impairment of goodwill for the years ended December 31, 2009 and 2008, as presented in the table below. No provisions for impairment of goodwill were recorded for the year ended December 31, 2007.

		2009			2008
		(In thousands)
Balance as of January 1
	Goodwill*	$	373,097		$	385,683
	Accumulated impairment losses		(32,806	)		—
			340,291			385,683
	Adjustments resulting from the subsequent recognition of deferred tax assets during the year*		—			(12,586	)
	Impairment losses during the year		(140,627	)		(32,806	)
	Balance as of December 31
	Goodwill		373,097			373,097
	Accumulated impairment losses		(173,433	)		(32,806	)
		$	199,664		$	340,291

*

Resulting from GGP's merger with TRC in 2004.

F-25

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

        Summary of all Impairment Provisions:

						Years Ended December 31,
					Method of Determining Fair Value
Impaired Asset				Location		2009		2008		2007
						(In thousands)
Retail and other:
	Operating properties:
		Bay City Mall		Bay City, MI	Discounted cash flow analysis(4)	$	830	$	—	$	—
		Cache Valley Mall		Logan, UT	Discounted cash flow analysis(5)		3,169		—		—
		Cache Valley Marketplace		Logan, UT	Discounted cash flow analysis(5)		938		—		—
		Century Plaza		Birmingham, AL	Projected sales price analysis(1)		—		7,819		—
		Chico Mall		Chico, CA	Discounted cash flow analysis(4)		4,127		—		—
		Country Hills Plaza		Ogden, UT	Discounted cash flow analysis(4)		287		—		—
		Eagle Ridge Mall		Lake Wales, FL	Discounted cash flow analysis(4)		22,301		—		—
		Foothills Mall		Fort Collins, CO	Discounted cash flow analysis(5)		57,602		—		—
		Lakeview Square		Battle Creek, MI	Discounted cash flow analysis(4)		2,764		—		—
		Landmark Mall		Alexandria, VA	Discounted cash flow analysis		27,323		—		—
		Moreno Valley Mall		Moreno Valley, CA	Discounted cash flow analysis(4)		2,873		—		—
		Northgate Mall		Chattanooga, TN	Discounted cash flow analysis(4)		14,904		—		—
		North Plains Mall		Clovis, NM	Discounted cash flow analysis(5)		2,496		—		—
		Oviedo Marketplace		Oviedo, FL	Discounted cash flow analysis(4)		3,438		—		—
		Owings Mills Mall		Owings Mills, MD	Discounted cash flow analysis		51,604		—		—
		Owings Mills-Two Corporate Center		Owings Mills, MD	Projected sales price analysis(1)		7,880		—		—
		Plaza 9400		Sandy, UT	Projected sales price analysis(1)		5,409		—		—
		Piedmont Mall		Danville, VA	Discounted cash flow analysis(4)		7,232		—		—
		River Falls Mall		Clarksville, IN	Discounted cash flow analysis		82,893		—		—
		The Shoppes At The Palazzo		Las Vegas, NV	Discounted cash flow analysis(5)		37,914		—		—
		Silver Lake Mall		Coeur d' Alene, ID	Discounted cash flow analysis(5)		10,134		—		—
		Spring Hill Mall		West Dundee, IL	Discounted cash flow analysis(5)		59,050		—		—
		Southshore Mall		Aberdeen, WA	Projected sales price analysis(1)		—		3,951		—
		The Village At Redlands		Redlands, CA	Projected sales price analysis(1)		5,537		—		—
			Total operating properties				410,705		11,770		—

F-26

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

						Years Ended December 31,
					Method of Determining Fair Value
Impaired Asset				Location		2009		2008		2007
						(In thousands)
	Development:
		Allen Towne Mall		Allen, TX	Projected sales price analysis(1)	$	29,063	$	—	$	—
		The Bridges At Mint Hill		Charlotte, NC	Comparable property market analysis		16,636		—		—
		Cottonwood Mall		Holladay, UT	Comparable property market analysis		50,768		—		—
		Elk Grove Promenade		Elk Grove, CA	Comparable property market analysis		175,280		—		—
		Kendall Town Center		Miami, FL	Projected sales price analysis(1)		35,518		—		—
		Princeton Land East, LLC		Princeton, NJ	Comparable property market analysis		8,904		—		—
		Princeton Land LLC		Princeton, NJ	Comparable property market analysis		13,356		—		—
		Redlands Promenade		Redlands, CA	Projected sales price analysis(1)		6,747		—		—
		The Shops At Summerlin Centre		Las Vegas, NV	Comparable property market analysis		176,141		—		—
			Total development				512,413		—		—
	Various pre-development costs				(2)		51,373		31,689		2,933
	Goodwill				(3)		140,627		32,806		—
Total Retail and other							1,115,118		76,265		2,933
Master Planned Communities:
		Columbia Master Planned Community		Columba, MD	Projected sales price analysis(1)		—		—		77,200
		Fairwood Master Planned Community		Columbia, MD	Projected sales price analysis(1)		52,769		—		50,400
		Nouvelle at Natick		Natick, MA	Discounted cash flow analysis		55,923		40,346		—
Total Master Planned Communities							108,692		40,346		127,600
Total Provisions for impairment						$	1,223,810	$	116,611	$	130,533

(1)

Projected sales price analysis incorporates available market information and other management assumptions.

(2)

Related to the write down of various pre-development costs that were determined to be non-recoverable due to the related projects being terminated.

(3)

These impairments were primarily driven by continued increases in capitalization rate assumptions during 2009 and reduced estimates of NOI, primarily due to the impact of decline in the retail market on our operations.

(4)

These impairments were primarily driven by the management's intent to deed these properties to lenders in satisfaction of secured debt upon emergence from bankruptcy.

(5)

These impairments were primarily driven by the management's business plan that exclude these properties from a long term hold period.

F-27

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

General

        Certain of our properties had Fair Values less than their carrying amounts. However, based on the Company's plans with respect to those properties, we believe that the carrying amounts are recoverable and therefore, under applicable GAAP guidance, no additional impairments were taken. Nonetheless, due to the tight credit markets, the recent and continuing decline in our market capitalization, the uncertain economic environment, as well as other uncertainties, or if our plans regarding our assets change, additional impairment charges in the future could result. Therefore, we can provide no assurance that material impairment charges with respect to operating properties, Unconsolidated Real Estate Affiliates, construction in progress, property held for development and sale or goodwill will not occur in future periods. Accordingly, we will continue to monitor circumstances and events in future periods to determine whether additional impairments are warranted.

Acquisitions of Operating Properties

        Acquisitions of properties are accounted for utilizing the purchase method and, accordingly, the results of operations of acquired properties are included in our results of operations from the respective dates of acquisition. Estimates of future cash flows and other valuation techniques are used to allocate the purchase price of acquired property between land, buildings and improvements, equipment, debt liabilities assumed and identifiable intangible assets and liabilities such as amounts related to in-place at-market tenant leases, acquired above and below-market tenant and ground leases and tenant relationships. Due to existing contacts and relationships with tenants at our currently owned properties and at properties currently managed for others, no significant value has been ascribed to the tenant relationships at the acquired properties.

        As of January 1, 2009, we adopted a new generally accepted accounting principle related to business combinations, which will change how business acquisitions are accounted for and will impact the financial statements both on the acquisition date and in subsequent periods.

Investments in Unconsolidated Real Estate Affiliates

        We account for investments in joint ventures where we own a non-controlling joint interest using the equity method. Under the equity method, the cost of our investment is adjusted for our share of the equity in earnings of such Unconsolidated Real Estate Affiliates from the date of acquisition and reduced by distributions received. Generally, the operating agreements with respect to our Unconsolidated Real Estate Affiliates provide that assets, liabilities and funding obligations are shared in accordance with our ownership percentages. Therefore, we generally also share in the profit and losses, cash flows and other matters relating to our Unconsolidated Real Estate Affiliates in accordance with our respective ownership percentages. Except for Retained Debt (as described in Note 5), differences between the carrying amount of our investment in the Unconsolidated Real Estate Affiliates and our share of the underlying equity of such Unconsolidated Real Estate Affiliates is amortized over lives ranging from five to forty five years. When cumulative distributions exceed our investment in the joint venture, the investment is reported as a liability in our consolidated financial statements. For those joint ventures where we own less than approximately a 5% interest and have virtually no influence on the joint venture's operating and financial policies, we account for our investments using the cost method.

F-28

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Cash and Cash Equivalents

        Highly-liquid investments with maturities at dates of purchase of three months or less are classified as cash equivalents.

Leases

        Leases which transfer substantially all the risks and benefits of ownership to tenants are considered finance leases and the present values of the minimum lease payments and the estimated residual values of the leased properties, if any, are accounted for as receivables. Leases which transfer substantially all the risks and benefits of ownership to us are considered capital leases and the present values of the minimum lease payments are accounted for as assets and liabilities.

Deferred Expenses

        Deferred expenses consist principally of financing fees and leasing costs and commissions. Deferred financing fees are amortized to interest expense using the effective interest method (or other methods which approximate the effective interest method) over the terms of the respective financing agreements. Deferred leasing costs and commissions are amortized using the straight-line method over periods that approximate the related lease terms. Deferred expenses in our Consolidated Balance Sheets are shown at cost, net of accumulated amortization, and were $266.2 million as of December 31, 2009 and $256.8 million as of December 31, 2008.

Noncontrolling interests—Common (Note 12)

        Generally, the holders of the Common Units share equally with our common stockholders on a per share basis in any distributions by the Operating Partnership on the basis that one Common Unit is equivalent to one share of GGP common stock. However, the Operating Partnership agreement permits distributions solely to GGP if such distributions are required to allow GGP to comply with the REIT distribution requirements or to avoid the imposition of excise tax (Note 7). Under certain circumstances, the Common Units (other than Common Units held by the parties to the Rights Agreement dated July 27, 1993, as described below) can be redeemed at the option of the holders for cash or, at our election, shares of GGP common stock on a one-for-one basis. Upon receipt of a request for redemption by a holder of such Common Units, the Company, as general partner of the Operating Partnership, has the option to pay the redemption price for such Common Units with shares of common stock of the Company (subject to certain conditions), or in cash, on a one-for-one basis with a cash redemption price equivalent to the market price of one share of common stock of the Company at the time of redemption. Parties to the Rights Agreement dated July 27, 1993 (the "Rights Agreement") have the right to redeem the Common Units covered by such agreement for shares of GGP Common Stock on a one-for-one basis until they and certain affiliates own 25% of the outstanding shares of GGP Common Stock, at which point such parties have the right, subject to certain limitations, to require the Company to purchase any additional Common Units subject to the agreement. The Company may elect to pay for such Common Units in cash, or in shares of GGP Common Stock at the Company's election subject to certain limitations. All prior requests for redemption of Common Units have been fulfilled with shares of the Company's common stock. Notwithstanding this historical practice, the aggregate amount of cash that would have been paid to the

F-29

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

holders of the outstanding Common Units as of December 31, 2009 if such holders had requested redemption of the Common Units as of December 31, 2009, and all such Common Units were redeemed (or purchased in the case of the Rights Agreement) for cash, would have been $86.1 million. As a result of the Chapter 11 Cases, we currently cannot redeem Common Units for cash or shares of GGP common stock. In addition, the conditions necessary to issue GGP common stock upon redemption of Common Units are not currently satisfied. GAAP provides that the redeemable noncontrolling interests are to be presented in our Consolidated Balance Sheets at the greater of Fair Value (the conversion value of the units based on the stock price) or the carrying amount of the units. The applicable stock price was $11.56 and $1.29 per share at December 31, 2009 and December 31, 2008, respectively. Accordingly, the redeemable noncontrolling interests have been presented at Fair Value at December 31, 2009 and carrying amount at December 31, 2008.

Treasury Stock

        We account for repurchases of common stock using the cost method with common stock in treasury classified in the Consolidated Balance Sheets as a reduction of stockholders' equity. Treasury stock is reissued at average cost.

Revenue Recognition and Related Matters

        Minimum rent revenues are recognized on a straight-line basis over the terms of the related leases. Minimum rent revenues also include amounts collected from tenants to allow the termination of their leases prior to their scheduled termination dates and accretion related to above and below-market tenant leases on acquired properties. Termination income recognized for the years ended December 31, 2009, 2008 and 2007 was $23.3 million, $34.9 million and $26.0 million, respectively. Net accretion related to above and below-market tenant leases for the years ended December 31, 2009, 2008 and 2007 was $8.5 million, $15.6 million and $31.0 million, respectively.

        Straight-line rent receivables, which represent the current net cumulative rents recognized prior to when billed and collectible as provided by the terms of the leases, of $254.7 million as of December 31, 2009 and $228.1 million as of December 31, 2008 are included in Accounts and notes receivable, net in our consolidated financial statements.

        Percentage rent in lieu of fixed minimum rent received from tenants for the years ended December 31, 2009, 2008 and 2007 was $61.7 million, $50.3 million and $44.3 million, respectively, and is included in Minimum rents in our consolidated financial statements.

        We provide an allowance for doubtful accounts against the portion of accounts receivable, including straight-line rents, which is estimated to be uncollectible. Such allowances are reviewed periodically based upon our recovery experience. We also evaluate the probability of collecting future rent which is recognized currently under a straight-line methodology. This analysis considers the long-term nature of our leases, as a certain portion of the straight-line rent currently recognizable will not be billed to the tenant until future periods. Our experience relative to unbilled deferred rent receivable is that a certain portion of the amounts recorded as straight-line rental revenue are never collected from (or billed to) tenants due to early lease terminations. For that portion of the otherwise recognizable deferred rent that is not deemed to be probable of collection, no revenue is recognized. Accounts receivable in our Consolidated Balance Sheets are shown net of an allowance for doubtful

F-30

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

accounts of $69.2 million as of December 31, 2009, $59.8 million as of December 31, 2008 and $68.6 milion as of December 31, 2007. The following table summarizes the changes in allowance for doubtful accounts:

		2009			2008
		(In thousands)
Balance as of January 1		$	59,784		$	68,596
	Provisions for doubtful accounts		30,331			17,873
	Write-offs		(20,880	)		(26,685	)
Balance as of December 31		$	69,235		$	59,784

        Overage Rent ("Overage Rent") is paid by a tenant when its sales exceed an agreed upon minimum amount. Overage Rent is calculated by multiplying the sales in excess of the minimum amount by a percentage defined in the lease. Overage Rent is recognized on an accrual basis once tenant sales exceed contractual tenant lease thresholds. Recoveries from tenants are established in the leases or computed based upon a formula related to real estate taxes, insurance and other shopping center operating expenses and are generally recognized as revenues in the period the related costs are incurred.

        Management and other fees primarily represent management and leasing fees, construction fees, financing fees and fees for other ancillary services performed for the benefit of the Unconsolidated Real Estate Affiliates and for properties owned by third parties (Note 9).

        Revenues from land sales are recognized using the full accrual method provided that various criteria relating to the terms of the transactions and our subsequent involvement with the land sold are met. Revenues relating to transactions that do not meet the established criteria are deferred and recognized when the criteria are met or using the installment or cost recovery methods, as appropriate in the circumstances. Revenues and cost of sales are recognized on a percentage of completion basis for land sale transactions in which we are required to perform additional services and incur significant costs after title has passed.

        Cost ratios for land sales are determined as a specified percentage of land sales revenues recognized for each community development project. The cost ratios used are based on actual costs incurred and estimates of future development costs and sales revenues to completion of each project. The ratios are reviewed regularly and revised for changes in sales and cost estimates or development plans. Significant changes in these estimates or development plans, whether due to changes in market conditions or other factors, could result in changes to the cost ratio used for a specific project. The specific identification method is used to determine cost of sales for certain parcels of land, including acquired parcels we do not intend to develop or for which development was complete at the date of acquisition.

        As of December 31, 2009, there have been 84 unit closings of sales at our 215 unit Nouvelle at Natick residential condominium project. As the threshold for profit recognition on such sales has not yet been achieved, the $36.4 million of sales proceeds received at December 31, 2009 has been deferred and has been reflected within accounts payable, accrued expenses and other liabilities (Note 11). When

F-31

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

such thresholds are achieved, the deferred revenue, and the related costs of units sold, will be reflected on the percentage of completion method within our master planned community segment.

Income Taxes (Note 7)

        Deferred income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the financial statements or tax returns and are recorded primarily by certain of our taxable REIT subsidiaries. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. An increase or decrease in the deferred tax liability that results from a change in circumstances, and which causes a change in our judgment about expected future tax consequences of events, is included in the current tax provision. Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards. A valuation allowance is provided if we believe it is more likely than not that all or some portion of the deferred tax asset will not be realized. An increase or decrease in the valuation allowance that results from a change in circumstances, and which causes a change in our judgment about the realizability of the related deferred tax asset, is included in the current tax provision. It is possible that the Company could experience a change in control pursuant to Section 382 that could limit the benefit of deferred tax assets. In addition, we recognize and report interest and penalties, if necessary, related to uncertain tax positions within our provision for income tax expense.

        In many of our Master Planned Communities, gains with respect to sales of land for commercial use, condominiums or apartments are reported for tax purposes on the percentage of completion method. Under the percentage of completion method, gain is recognized for tax purposes as costs are incurred in satisfaction of contractual obligations. The method used for determining the percentage complete for income tax purposes is different than that used for financial statement purposes. In addition, gains with respect to sales of land for single family residences are reported for tax purposes under the completed contract method. Under the completed contract method, gain is recognized for tax purposes when 95% of the costs of our contractual obligations are incurred or the contractual obligation is transferred.

Earnings Per Share ("EPS")

        Basic earnings per share ("EPS") is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted EPS is computed after adjusting the numerator and denominator of the basic EPS computation for the effects of all potentially dilutive common shares. The dilutive effect of convertible securities is computed using the "if-converted" method and the dilutive effect of options, warrants and their equivalents (including fixed awards and nonvested stock issued under stock-based compensation plans) is computed using the "treasury stock" method.

        Diluted EPS excludes options where the exercise price was higher than the average market price of our common stock and options for which vesting requirements were not satisfied. Such options totaled 6,207,025 shares as of December 31, 2009, 4,966,829 shares as of December 31, 2008 and 3,754,458 shares as of December 31, 2007. Outstanding Common Units have also been excluded from the diluted

F-32

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

earnings per share calculation because including such Common Units would also require that the share of GGPLP income attributable to such Common Units be added back to net income therefore resulting in no effect on EPS. Finally, the Exchangeable Notes that were issued in April 2007 (Note 6) are also excluded from EPS because the conditions for exchange were not satisfied as of December 31, 2008 and were stayed by our Chapter 11 Cases in 2009.

        Information related to our EPS calculations is summarized as follows:

		Years Ended December 31,
		2009						2008						2007
		Basic			Diluted			Basic			Diluted			Basic			Diluted
		(In thousands)
Numerators:
	(Loss) income from continuing operations	$	(1,303,861	)	$	(1,303,861	)	$	(36,372	)	$	(36,372	)	$	347,597		$	347,597
	Allocation to noncontrolling interests		20,115			20,115			(4,909	)		(4,909	)		(73,955	)		(73,955	)
	(Loss) income from continuing operations—net of noncontrolling interests		(1,283,746	)		(1,283,746	)		(41,281	)		(41,281	)		273,642			273,642
	Discontinued operations—(loss) gain on dispositions		(966	)		(966	)		55,044			55,044			—			—
	Allocation to noncontrolling interests		23			23			(9,044	)		(9,044	)		—			—
	Discontinued operations—net of noncontrolling interests		(943	)		(943	)		46,000			46,000			—			—
	Net (loss) income		(1,304,827	)		(1,304,827	)		18,672			18,672			347,597			347,597
	Allocation to noncontrolling interests		20,138			20,138			(13,953	)		(13,953	)		(73,955	)		(73,955	)
	Net (loss) income attributable to common stockholders	$	(1,284,689	)	$	(1,284,689	)	$	4,719		$	4,719		$	273,642		$	273,642
Denominators:
	Weighted average number of common shares outstanding—basic and diluted		311,993			311,993			262,195			262,195			243,992			243,992
	Effect of dilutive securities—stock options		—			—			—			—			—			546
	Weighted average number of common shares outstanding		311,993			311,993			262,195			262,195			243,992			244,538

F-33

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Derivative Financial Instruments

        As of January 1, 2009, we adopted the generally accepted accounting principles related to disclosures about derivative instruments and hedging activities which requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about the Fair Value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments.

        We use derivative financial instruments to reduce risk associated with movement in interest rates. We may choose or be required by lenders to reduce cash flow and earnings volatility associated with interest rate risk exposure on variable-rate borrowings and/or forecasted fixed-rate borrowings by entering into interest rate swaps or interest rate caps. We do not use derivative financial instruments for speculative purposes.

        During the first quarter of 2009, our interest rate swaps no longer qualified as highly effective and therefore no longer qualified for hedge accounting treatment as the Company made the decision not to pay future settlement payments under such swaps. As a result of the terminations of the swaps we incurred termination fees of $34.8 million. Accordingly, we reduced the liability associated with these derivative financial instruments during the first and second quarter of 2009 (included in interest expense in our consolidated financial statements) which resulted in a reduction in interest expense of $27.7 million in 2009. As the interest payments on the hedged debt remain probable, the net balance in the gain or loss in accumulated other comprehensive (loss) income of $(27.7) million that existed as of December 31, 2008 remains in accumulated other comprehensive (loss) income and is amortized to interest expense as the hedged forecasted transactions impact earnings or are deemed probable not to occur. The amortization of the accumulated other comprehensive (loss) income resulted in additional interest expense of $18.1 million for the year ended December 31, 2009.

        Under interest rate cap agreements, we make initial premium payments to the counterparties in exchange for the right to receive payments from them if interest rates exceed specified levels during the agreement period. Notional principal amounts are used to express the volume of these transactions, but the cash requirements and amounts subject to credit risk are substantially less. We had no interest rate cap derivatives for our Consolidated Properties as of December 31, 2009 while we had three outstanding interest rate cap derivatives that were designated as a cash flow hedge of interest rate risk with a notional value of $1.13 billion as of December 31, 2008.

        Parties to interest rate exchange agreements are subject to market risk for changes in interest rates and risk of credit loss in the event of nonperformance by the counterparty. We do not require any collateral under these agreements, but deal only with well known financial institution counterparties (which, in certain cases, are also the lenders on the related debt) and expect that all counterparties will meet their obligations.

        We have not recognized any losses as a result of hedge accounting and the expense that we recognized related to changes in the time value of interest rate cap agreements were insignificant for 2009, 2008 and 2007.

F-34

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in Marketable Securities

        Most investments in marketable securities are held in an irrevocable trust for participants (employees of a subsidiary acquired in 2004) in a qualified defined contribution pension plan, are classified as trading securities and are carried at Fair Value with changes in values recognized in earnings. Investments in certain marketable debt securities with maturities at dates of purchase in excess of three months are carried at amortized cost as we intend to hold these investments until maturity. Other investments in marketable equity securities subject to significant restrictions on sale or transfer are classified as available-for-sale and are carried at Fair Value with unrealized changes in values recognized in other comprehensive income.

	2009			2008			2007
				(In thousands)
Proceeds from sales of available-for-sale securities	$	7,097		$	3,362		$	3,720
Gross realized (losses) gains on available-for-sale securities		(2,681	)		(426	)		643

Fair Value Measurements

        We adopted the generally accepted accounting principles related to Fair Value measurements as of January 1, 2008 for our financial assets and liabilities and, although our disclosures were increased, such adoption did not change our valuation methods for such assets and liabilities. This initial adoption applied primarily to our derivative financial instruments, which are assets and liabilities carried at Fair Value (primarily based on unobservable market data) on a recurring basis in our consolidated financial statements. As of December 31, 2009, our derivative financial instruments and our investments in marketable securities are immaterial to our consolidated financial statements. In addition, as required, we adopted these principles as of January 1, 2009 for our non-financial assets and liabilities, which, in accordance with the guidance impacts our assets measured at Fair Value due to impairments incurred since adoption.

        The accounting principles for Fair Value measurements establish a three-tier Fair Value hierarchy, which prioritizes the inputs used in measuring Fair Value. These tiers include:

•

Level 1—defined as observable inputs such as quoted prices for identical assets or liabilities in active markets;

•

Level 2—defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

•

Level 3—defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

F-35

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

        The asset or liability Fair Value measurement level within the Fair Value hierarchy is based on the lowest level of any input that is significant to the Fair Value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Any Fair Values utilized or disclosed in our consolidated financial statements were developed for the purpose of complying with the accounting principles established for Fair Value measurements. The Fair Values of our assets or liabilities for enterprise value in our Chapter 11 Cases or as a component of our reorganization plan (see Note 1) will reflect differing assumptions and methodologies. These estimates will be subject to a number of approvals and reviews and therefore may be materially different.

        The following table summarizes our assets and liabilities that are measured at Fair Value on a nonrecurring basis:

		Total Fair Value Measurement		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Loss) Gain Year Ended December 31, 2009
		(In thousands)
Investments in real estate:
	Allen Towne Mall	$	25,900	$	—	$	25,900	$	—	$	(29,063	)
	Bay City Mall(1)		26,711		—		—		26,711		(830	)
	The Bridges At Mint Hill		14,100		—		14,100		—		(16,636	)
	Cache Valley Mall(1)		26,695		—		—		26,695		(3,169	)
	Cache Valley Marketplace(1)		8,100		—		—		8,100		(938	)
	Chico Mall(1)		55,524		—		—		55,524		(4,127	)
	Cottonwood Mall(1)		21,500		—		—		21,500		(50,768	)
	Country Hills Plaza(1)		11,626		—		—		11,626		(287	)
	Eagle Ridge Mall(1)		27,289		—		—		27,289		(22,301	)
	Elk Grove Promenade		21,900		—		21,900		—		(175,280	)
	Fairwood Master Planned Community		12,629		—		12,629		—		(52,769	)
	Foothills Mall(1)		42,296		—		—		42,296		(57,602	)
	Kendall Town Center		13,931		—		—		13,931		(35,518	)
	Lakeview Square(1)		33,618		—		—		33,618		(2,764	)
	Landmark Mall(1)		49,501		—		—		49,501		(27,323	)
	Moreno Valley Mall(1)		78,477		—		—		78,477		(2,873	)
	Northgate Mall(1)		27,179		—		—		27,179		(14,904	)
	North Plains Mall(1)		15,252		—		—		15,252		(2,496	)
	Nouvelle At Natick		64,661		—		—		64,661		(55,923	)
	Oviedo Marketplace(1)		34,578		—		—		34,578		(3,438	)
	Owings Mills Mall(1)		26,695		—		—		26,695		(51,604	)
	Owings Mills-Two Corporate Center		15,762		—		—		15,762		(7,880	)
	Plaza 9400		2,618		—		—		2,618		(5,409	)
	Piedmont Mall(1)		30,222		—		—		30,222		(7,232	)
	Princeton Land East, LLC		8,802		—		8,802		—		(8,904	)
	Princeton Land LLC		11,948		—		11,948		—		(13,356	)
	Redlands Promenade		6,727		—		—		6,727		(6,747	)
	River Falls Mall(1)		23,782		—		—		23,782		(82,893	)

F-36

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

		Total Fair Value Measurement		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Loss) Gain Year Ended December 31, 2009
		(In thousands)
	The Shoppes At The Palazzo(1)		244,680		—		—		244,680		(37,914	)
	The Shops At Summerlin Centre		46,300		—		46,300		—		(176,141	)
	Silver Lake Mall(1)		16,038		—		—		16,038		(10,134	)
	Spring Hill Mall(1)		49,294		—		—		49,294		(59,050	)
	The Village At Redlands		7,545		—		—		7,545		(5,537	)
Total investments in real estate		$	1,101,880	$	—	$	141,579	$	960,301	$	(1,031,810	)
Debt: (2)
	Fair value of emerged entity mortgage debt	$	4,246,387	$	—	$	—	$	4,246,387	$	342,165
Total liabilities		$	4,246,387	$	—	$	—	$	4,246,387	$	342,165

(1)

The Fair Value was calculated based on a discounted cash flow analysis using property specific discount rates ranging from 9.25% to 12.00% and residual capitalization rates ranging from 8.50% to 11.50%.

(2)

The fair value of debt relates to the 50 properties that emerged from bankruptcy in December 2009.

Fair Value of Financial Instruments

        The Fair Values of our financial instruments approximate their carrying amount in our financial statements except for debt. Notwithstanding that we do not believe that a fully-functioning market for real property financing exists currently, GAAP guidance requires that management estimate the Fair Value of our debt. However, as a result of the Company's Chapter 11 filing, the Fair Value for the outstanding debt that is included in liabilities subject to compromise in our Consolidated Balance Sheets cannot be reasonably determined at December 31, 2009 as the timing and amounts to be paid are subject to confirmation by the Bankruptcy Court. For the $7.30 billion of mortgages, notes and loans payable outstanding that are not subject to compromise at December 31, 2009, management's required estimates of Fair Value are presented below. This Fair Value was estimated solely for financial statement reporting purposes and should not be used for any other purposes, including to estimate the value of any of the Company's securities or to estimate the appropriate interest rate for consensual and non-consensual restructuring of secured debt in our Chapter 11 Cases. We estimated the Fair Value of this debt based on quoted market prices for publicly-traded debt, recent financing transactions (which may not be comparable), estimates of the Fair Value of the property that serves as collateral for such debt, historical risk premiums for loans of comparable quality, current London Interbank Offered Rate ("LIBOR"), a widely quoted market interest rate which is frequently the index used to determine the rate at which we borrow funds and US treasury obligation interest rates, and on the discounted estimated future cash payments to be made on such debt. The discount rates estimated reflect our judgment as to what the approximate current lending rates for loans or groups of loans with similar maturities and credit quality would be if credit markets were operating efficiently and assume that the

F-37

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

debt is outstanding through maturity. We have utilized market information as available or present value techniques to estimate the amounts required to be disclosed, or, in the case of the debt of the Track 1A Debtors, recorded due to GAAP bankruptcy emergence guidance (as described above and in Note 6). Since such amounts are estimates that are based on limited available market information for similar transactions and do not acknowledge transfer or other repayment restrictions that may exist in specific loans, it is unlikely that the estimated Fair Value of any of such debt could be realized by immediate settlement of the obligation.

	2009				2008
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In millions)
Fixed-rate debt	$	7,301	$	7,207	$	19,241	$	16,601
Variable-rate debt		—		—		5,516		4,867
	$	7,301	$	7,207	$	24,757	$	21,468

        Included in such amounts for 2009 is $4.2 billion of debt that relates to the 50 properties that emerged from bankruptcy in December 2009 where the carrying value of the debt was adjusted by $342.2 million to an estimated Fair Value of such debt (based on significant unobservable Level 3 Inputs).

Stock—Based Compensation Expense

        We evaluate our stock-based compensation expense in accordance with the generally accepted accounting principles related to share—based payments, which requires companies to estimate the Fair Value of share—based payment awards on the date of grant using an option—pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Consolidated Statements of Income and Comprehensive Income.

        These accounting principles require forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The cumulative effect of estimating forfeitures for these plans decreased compensation expense by approximately $1.8 million for the year ended December 31, 2009, $1.9 million for the year ended December 31, 2008 and $1.0 million for the year ended December 31, 2007 and have been reflected in our consolidated financial statements.

Officer Loans

        In October 2008, the independent members of the Company's Board of Directors learned that between November 2007 and September 2008, an affiliate of certain Bucksbaum family trusts advanced a series of unsecured loans, without the Board's approval, to Mr. Robert Michaels, the Company's former director and president and Mr. Bernard Freibaum, the Company's former director and chief financial officer, for the purpose of repaying personal margin debt relating to Company common stock owned by each of them. The loan to Mr. Michaels, which totaled $10 million, has been repaid in full. The loans to Mr. Freibaum totaled $90 million, of which $80 million was outstanding as of the date of Mr. Freibaum's separation from the Company in 2008. No Company assets or resources were involved

F-38

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

in the loans and no laws or United States Securities and Exchange Commission ("SEC") rules were violated as a result of the loans. Under applicable GAAP guidance, as a result of these loans, the Company is deemed to have received a contribution to capital by the lender and to have incurred compensation expense in an equal amount for no incremental equity interest in the Company. We calculated the Fair Value of the loans based on a derivation of the income approach known as the discounted cash flow method. Specifically, the Fair Values of the loans were calculated as the present value of the estimated future cash flows (consisting of quarterly interest payments, an annual loan commitment fee, and principal repayment upon demand of the loan) attributable to the loan using a market-based discount rate that accounts for the time value of money and the appropriate degree of risk inherent in the loans as of the various valuation dates. Included in our valuation of the Fair Value of the loans is a consideration for the credit risk of the loans on each date of issuance, based upon, among other considerations, Mr. Freibaum's and Mr. Michaels' stockholdings in the Company, outstanding loans and current and past compensation from the Company. For Mr. Freibaum's loans we valued the loans at each respective disbursement date and amendment date and used loan terms varying from six months to two years reflecting our estimation that repayment would require an orderly liquidation of Mr. Freibaum's other assets. For Mr. Michaels' loans, we valued the loan at its disbursement date based on its actual term. Accordingly, the compensation expense is measured as the difference between the Fair Values of the loans as compared to the face amount of the loans. Such calculated expenses are measured and recognizable at the date of such advances and as of the dates of amendments as there were no future service or employment requirements stated in the loan agreements. The total compensation expense is the aggregation of the Fair Value to face amount differences. Accordingly, we recorded the cumulative correction of the compensation expense of $15.4 million in the fourth quarter of 2008 and there was no impact to 2009.

The Glendale Matter

        In the fall of 2007, a lawsuit (the "Glendale Matter") involving Caruso Affiliated Holdings, LLC as Plaintiff and GGP and GGP/Homart II, L.L.C. (one of our Unconsolidated Real Estate Affiliates) (collectively, the "Defendants") in the Los Angeles Superior Court (the "Court") alleging violations of the California antitrust and unfair competition laws and tortious interference with prospective economic advantage was concluded. The Court entered judgment with respect to the interference with prospective economic advantage claim against Defendants in the amount of $74.2 million in compensatory damages, $15.0 million in punitive damages, and $0.2 million in court costs (the "Judgment Amount"). Defendants appealed the judgment and posted an appellate bond in April 2008 for $134.1 million, which was equal to 150% of the Judgment Amount. Additionally, in April 2008, GGPLP supplied cash as collateral to secure the appellate bond in the amount equal to 50% of the total bond amount or $67.1 million.

        On December 19, 2008, the Defendants agreed to terms of a settlement and mutual release agreement with Caruso Affiliated Holdings LLC which released the Defendants from all past, present and future claims related to the Glendale Matter in exchange for a settlement payment of $48.0 million, which was paid from the appellate bond cash collateral account in January 2009. Concurrently, GGP agreed with its joint venture partner in GGP/Homart II, New York State Common Retirement Fund ("NYSCRF"), that GGP would not be reimbursed for any portion of this payment, and we would reimburse $5.5 million of costs to NYSCRF in connection with the settlement.

F-39

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Accordingly, as of December 2008, the Company adjusted its liability for the Judgment Amount from $89.4 million to $48.0 million and reversed legal fees incurred by GGP/Homart II of $14.2 million that were previously recorded at 100% by GGP and post-judgment related interest expense of $7.0 million. The net impact of these items related to the settlement is a credit of $57.1 million reflected in litigation recovery in our Consolidated Statements of Income and Comprehensive Income for 2008. Also as a result of the settlement, the Company reflected its 50% share of legal costs that had previously been recorded at 100% as $7.1 million of additional expense reflected in Equity in income of Unconsolidated Real Estate Affiliates in our Consolidated Statements of Income and Comprehensive Income for 2008.

Foreign Currency Translation

        The functional currencies for our international joint ventures are their local currencies. Assets and liabilities of these investments are translated at the rate of exchange in effect on the balance sheet date and operations are translated at the weighted average exchange rate for the period. Translation adjustments resulting from the translation of assets and liabilities are accumulated in stockholders' equity as a component of accumulated other comprehensive income (loss). Translation of operations is reflected in equity in income of Unconsolidated Real Estate Affiliates.

Use of Estimates

        The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. For example, significant estimates and assumptions have been made with respect to useful lives of assets, capitalization of development and leasing costs, provision for income taxes, recoverable amounts of receivables and deferred taxes, initial valuations and related amortization periods of deferred costs and intangibles, particularly with respect to acquisitions, impairment of long-lived assets and goodwill, valuation of debt of emerged entities and cost ratios and completion percentages used for land sales. Actual results could differ from these and other estimates.

NOTE 3 ACQUISITIONS AND INTANGIBLES

Acquisitions

        On February 29, 2008, we acquired The Shoppes at The Palazzo in Las Vegas, Nevada for an initial purchase price of $290.8 million (Note 14).

        On July 6, 2007, we acquired the fifty percent interest owned by NYSCRF in the GGP/Homart I portfolio (the "Homart I acquisition") for a purchase price of approximately $2.3 billion, including approximately $1 billion of assumed debt.

F-40

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 3 ACQUISITIONS AND INTANGIBLES (Continued)

Intangible Assets and Liabilities

        The following table summarizes our intangible assets and liabilities:

		Gross Asset (Liability)			Accumulated (Amortization)/ Accretion			Net Carrying Amount
					(In thousands)
As of December 31, 2009
Tenant leases:
	In-place value	$	539,257		$	(335,310	)	$	203,947
	Above-market		94,194			(59,855	)		34,339
	Below-market		(149,978	)		86,688			(63,290	)
Ground leases:
	Above-market		(16,968	)		2,423			(14,545	)
	Below-market		271,602			(29,926	)		241,676
Real estate tax stabilization agreement			91,879			(20,272	)		71,607
As of December 31, 2008
Tenant leases:
	In-place value	$	637,791		$	(381,027	)	$	256,764
	Above-market		117,239			(65,931	)		51,308
	Below-market		(199,406	)		110,650			(88,756	)
Ground leases:
	Above-market		(16,968	)		1,951			(15,017	)
	Below-market		271,602			(24,049	)		247,553
Real estate tax stabilization agreement			91,879			(16,348	)		75,531

        Changes in gross asset (liability) balances in 2009 are the result of the allocation of provisions for impairment (Note 2) and our policy of writing off fully amortized intangible assets.

        The gross asset balances of the in-place value of tenant leases are included in Buildings and equipment in our Consolidated Balance Sheets. Acquired in-place at-market tenant leases are amortized over periods that approximate the related lease terms. The above-market and below-market tenant and ground leases as well as the real estate tax stabilization agreement intangible asset are included in Prepaid expenses and other assets and Accounts payable and accrued expenses as detailed in Note 11. Above and below-market lease values are amortized over the remaining non-cancelable terms of the respective leases (averaging approximately five years for tenant leases and approximately 45 years for ground leases).

        Amortization/accretion of these intangible assets and liabilities, and similar assets and liabilities from our Unconsolidated Real Estate Affiliates at our share, decreased our income (excluding the impact of noncontrolling interest and the provision for income taxes) by $62.6 million in 2009, $70.4 million in 2008 and $62.5 million in 2007.

        Future amortization, including our share of such items from Unconsolidated Real Estate Affiliates, is estimated to decrease income (excluding the impact of noncontrolling interest and the provision for

F-41

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 3 ACQUISITIONS AND INTANGIBLES (Continued)

income taxes) by $54.8 million in 2010, $44.4 million in 2011, $37.0 million in 2012, $30.6 million in 2013 and $31.3 million in 2014.

NOTE 4 DISCONTINUED OPERATIONS AND GAINS (LOSSES) ON DISPOSITIONS OF INTERESTS IN OPERATING PROPERTIES

        On December 21, 2009, we sold one office building totaling approximately 38,400 square feet and 4.1995 acres of land located in Woodlands, Texas for a total sales price of $2.0 million, resulting in a total loss of $0.9 million.

        On April 4, 2008, we sold one office building totaling approximately 16,500 square feet located in Las Vegas for a total sales price of $3.3 million, resulting in a total gain of $2.0 million (net of $0.5 million of noncontrolling interest).

        On April 23, 2008, we sold two office buildings totaling approximately 390,000 square feet located in Maryland for a sales price of $94.7 million (including debt assumed of approximately $84 million), resulting in total gains of $28.8 million (net of $5.7 million of noncontrolling interest).

        On August 21, 2008, we sold an office park consisting of three office buildings totaling approximately 73,500 square feet located in Maryland for a total sales price of $4.7 million, resulting in total gains of $0.8 million (net of $0.2 million of noncontrolling interest).

        On September 29, 2008, we sold an office park consisting of five office buildings totaling approximately 306,500 square feet located in Maryland for a total sales price of $42.3 million, resulting in total gains of $14.4 million (net of $2.6 million of noncontrolling interest).

        All of the 2008 dispositions are included in discontinued operations, (loss) gain on dispositions in our consolidated financial statements. For Federal income tax purposes, the two office buildings and one of the office parks located in Maryland were used as relinquished property in a like-kind exchange involving the acquisition of The Shoppes at The Palazzo.

        We evaluated the operations of these properties pursuant to the requirements of the generally accepted accounting principles related to business combinations and concluded that the operations of these office buildings that were sold did not materially impact the prior period results and therefore have not reported any prior operations of these properties as discontinued operations in the accompanying consolidated financial statements.

NOTE 5 UNCONSOLIDATED REAL ESTATE AFFILIATES

        The Unconsolidated Real Estate Affiliates include our noncontrolling investments in real estate joint ventures. Generally, we share in the profits and losses, cash flows and other matters relating to our investments in Unconsolidated Real Estate Affiliates in accordance with our respective ownership percentages. We manage most of the properties owned by these joint ventures. As we have joint interest and control of these ventures with our venture partners and they have substantive participating rights in such ventures, we account for these joint ventures using the equity method. Some of the joint ventures have elected to be taxed as REITs. As described in Note 1, at December 31, 2009, we have three joint venture investments located outside the U.S. These investments, with an aggregate carrying amount of $221.0 million and $166.7 million at December 31, 2009 and 2008, respectively, are managed

F-42

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 5 UNCONSOLIDATED REAL ESTATE AFFILIATES (Continued)

by the respective joint venture partners in each country. Substantially all changes in 2009 and 2008 in the carrying amount of our investments in such international joint ventures have been due to currency fluctuations. As we also have substantial participation rights with respect to these international joint ventures, we account for them on the equity method. Finally, we entered into an agreement to sell our Costa Rica investment for $7.5 million, yielding a nominal gain that we expect will be recognized in the first quarter of 2010.

        In June and July, 2009 we made capital contributions of $28.7 million and $57.5 million, respectively, to fund our portion of $172.2 million of joint venture mortgage debt which had reached maturity and which, due to the non-functioning credit markets, we were unable to satisfactorily extend or refinance. As of December 31, 2009, approximately $6.38 billion of indebtedness was secured by our Unconsolidated Properties, our share of which was approximately $3.12 billion. There can be no assurance that we will be able to refinance or restructure such debt (including the $635.9 million of debt maturing in 2010) on acceptable terms or otherwise, or that joint venture operations or contributions by us and/or our partners will be sufficient to repay such loans.

        In certain circumstances, we have debt obligations in excess of our pro rata share of the debt of our Unconsolidated Real Estate Affiliates ("Retained Debt"). This Retained Debt represents distributed debt proceeds of the Unconsolidated Real Estate Affiliates in excess of our pro rata share of the non-recourse mortgage indebtedness of such Unconsolidated Real Estate Affiliates. The proceeds of the Retained Debt which are distributed to us are included as a reduction in our investment in Unconsolidated Real Estate Affiliates. Such Retained Debt totaled $158.2 million as of December 31, 2009 and $160.8 million as of December 31, 2008, and has been reflected as a reduction in our investment in Unconsolidated Real Estate Affiliates. We are obligated, and through March 1, 2010 have fulfilled our obligation, to contribute funds to our Unconsolidated Real Estate Affiliates in amounts sufficient to pay debt service on such Retained Debt. If we do not contribute such funds, our distributions from such Unconsolidated Real Estate Affiliates, or our interest in, will be reduced to the extent of such deficiencies. As of March 1, 2010, we do not anticipate an inability to perform on our obligations with respect to such Retained Debt.

        In certain other circumstances, the Company, in connection with the debt obligations of certain Unconsolidated Real Estate Affiliates, has agreed to provide supplemental guarantees or master-lease commitments to provide to the debt holders additional credit-enhancement or security. As of December 31, 2009, we do not expect to be required to perform pursuant to any of such supplemental credit-enhancement provisions for our Unconsolidated Real Estate Affiliates, either due to estimates of the current obligations represented by such provisions or as a result of the protections afforded us through our Chapter 11 Cases.

        We recorded provisions for impairment related to our Unconsolidated Real Estate Affiliates for the years ended December 31, 2009, 2008 and 2007, as presented in the table below. In addition, we recorded provisions for impairment related to our investments in The Shops at Circle T Ranch and Circle T Power Center joint ventures of $10.6 million for the year ended December 31, 2009. All of

F-43

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 5 UNCONSOLIDATED REAL ESTATE AFFILIATES (Continued)

these impairment charges are included in equity in earnings (loss) from Unconsolidated Real Estate Affiliates in our consolidated financial statements.

Impaired Asset		Location	2009		Year Ended December 31, 2008		2007
					(In thousands)
GGP/Homart II
	Montclair Properties(1)	Montclair, CA	$	12,894	$	—	$	—
	Various pre-development costs(2)			3,697		446		(17	)
				16,591		446		(17	)
GGP/Teachers
	Silver City Galleria(1)	Taunton, MA		16,846		—		—
	Various pre-development costs(2)			17		115		45
				16,863		115		45
The Shops at Circle T Ranch(3)		Dallas, TX		17,062		—		—
Circle T Power Center(3)		Dallas, TX		21,020		—		—
Other:
	Various pre-development costs(2)			2,749		267		451
			$	74,285	$	828	$	479
Total Provisions for impairment, at our ownership share			$	37,120	$	389	$	232

(1)

These impairments were primarily driven by the management's decision to discontinue financial support.

(2)

Related to the write down of various pre-development costs that were determined to be non-recoverable due to the related projects being terminated.

(3)

Impairment is measured based on projected sales price analysis, which incorporates available market information and other management assumptions using Level 2 Inputs (Note 2).

F-44

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 5 UNCONSOLIDATED REAL ESTATE AFFILIATES (Continued)

        On January 29, 2010, our Brazilian joint venture, Aliansce Shopping Centers S.A. ("Aliansce"), commenced trading on the Brazilian Stock Exchange, or BM&FBovespa, as a result of an initial public offering of Aliansce's common shares in Brazil. GGP did not sell any of its Aliansce shares in the offering and now has approximately a 31.4% ownership interest in Aliansce, which develops, owns and manages shopping centers in Brazil. In light of Aliansce becoming a public company in Brazil, we will change the manner in which we account for our share of Aliansce's results of operations in our consolidated financial statements. We will continue to apply the equity method to our interest in Aliansce; however, commencing in 2010 we will report our share of Aliansce's results in our financial statements one quarter in arrears due to the timing of the release of Aliansce's publicly available financial statements. As a result of the transition to this accounting treatment, GGP's financial statements for the quarter ended March 31, 2010 will not include any results from Aliansce's business and GGP's financial statements for the fiscal year ended December 31, 2010 will include only nine months of Aliansce's operations. We do not believe that this timing difference will have a material impact on our consolidated financial statements.

        The significant accounting policies used by the Unconsolidated Real Estate Affiliates are the same as ours.

F-45

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 5 UNCONSOLIDATED REAL ESTATE AFFILIATES (Continued)

Condensed Combined Financial Information of Unconsolidated Real Estate Affiliates

        Following is summarized financial information for our Unconsolidated Real Estate Affiliates as of December 31, 2009 and 2008 and for the years ended December 31, 2009, 2008 and 2007. Certain 2008 and 2007 amounts have been reclassified to conform to the 2009 presentation.

				December 31, 2009			December 31, 2008
				(In thousands)
Condensed Combined Balance Sheets—Unconsolidated Real Estate Affiliates
Assets:
	Land			$	901,387		$	863,965
	Buildings and equipment				7,924,577			7,558,344
	Less accumulated depreciation				(1,691,362	)		(1,524,121	)
	Developments in progress				333,537			549,719
		Net property and equipment			7,468,139			7,447,907
	Investment in unconsolidated joint ventures				385,767			241,786
	Investment property and property held for development and sale				266,253			282,636
		Net investment in real estate			8,120,159			7,972,329
	Cash and cash equivalents				275,018			231,500
	Accounts and notes receivable, net				226,385			163,749
	Deferred expenses, net				197,663			173,213
	Prepaid expenses and other assets				293,069			225,809
			Total assets	$	9,112,294		$	8,766,600
Liabilities and Owners' Equity:
	Mortgages, notes and loans payable			$	6,375,798		$	6,411,631
	Accounts payable, accrued expenses and other liabilities				490,814			513,538
	Owners' equity				2,245,682			1,841,431
			Total liabilities and owners' equity	$	9,112,294		$	8,766,600
Investment In and Loans To/From Unconsolidated Real Estate Affiliates, Net:
Owners' equity				$	2,245,682		$	1,841,431
Less joint venture partners' equity					(1,940,707	)		(915,690	)
Capital or basis differences and loans					1,636,049			911,894
Investment in and loans to/from
	Unconsolidated Real Estate Affiliates, net			$	1,941,024		$	1,837,635
Reconciliation—Investment In and Loans To/From Unconsolidated Real Estate Affiliates:
Asset—Investment in and loans to/from
	Unconsolidated Real Estate Affiliates			$	1,979,313		$	1,869,929
Liability—Investment in and loans to/from
	Unconsolidated Real Estate Affiliates				(38,289	)		(32,294	)
Investment in and loans to/from
	Unconsolidated Real Estate Affiliates, net			$	1,941,024		$	1,837,635

F-46

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 5 UNCONSOLIDATED REAL ESTATE AFFILIATES (Continued)

			Years Ended December 31,
			2009			2008			2007
			(In thousands)
Condensed Combined Statements of Income—Unconsolidated Real Estate Affiliates
Revenues:
	Minimum rents		$	763,283		$	761,128		$	805,713
	Tenant recoveries			335,324			337,377			356,148
	Overage rents			13,213			17,622			25,314
	Land sales			72,367			137,504			161,938
	Management and other fees			32,526			24,459			33,145
	Other			93,886			113,988			142,549
		Total revenues		1,310,599			1,392,078			1,524,807
Expenses:
	Real estate taxes			99,600			93,707			100,279
	Repairs and maintenance			78,965			78,222			84,840
	Marketing			15,265			18,251			25,275
	Other property operating costs			226,615			234,388			272,560
	Land sales operations			60,717			81,833			91,539
	Provision for doubtful accounts			12,931			7,115			4,185
	Property management and other costs			78,433			85,013			90,945
	General and administrative			28,508			24,647			22,281
	Provisions for impairment			74,285			828			479
	Litigation (recovery) provision			—			(89,225	)		89,225
	Depreciation and amortization			271,246			245,794			255,827
		Total expenses		946,565			780,573			1,037,435
Operating income				364,034			611,505			487,372
Interest income				7,220			12,467			24,725
Interest expense				(337,871	)		(338,770	)		(358,088	)
(Provision for) benefit from income taxes				(995	)		3,773			(9,263	)
Equity in income of unconsolidated joint ventures				61,730			30,359			27,989
Income from continuing operations				94,118			319,334			172,735
Discontinued operations, including net gain on dispostions				—			—			106,016
Net income				94,118			319,334			278,751
Allocation to noncontrolling interests				(3,453	)		624			103
Net income attributable to joint venture partners			$	90,665		$	319,958		$	278,854
Equity In Income of Unconsolidated Real Estate Affiliates:
Net income attributable to joint venture partners			$	90,665		$	319,958		$	278,854
Joint venture partners' share of income				(26,320	)		(119,709	)		(187,672	)
Amortization of capital or basis differences				(59,710	)		(29,117	)		(19,019	)
Special Allocation of litigation provision to GGPLP				—			(89,225	)		89,225
Elimination of Unconsolidated Real Estate Affiliates loan interest				—			(1,313	)		(2,987	)
Equity in income of Unconsolidated Real Estate Affiliates			$	4,635		$	80,594		$	158,401

F-47

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 5 UNCONSOLIDATED REAL ESTATE AFFILIATES (Continued)

Condensed Financial Information of Individually Significant Unconsolidated Real Estate Affiliates

        Following is summarized financial information for GGP/Homart II, L.L.C. ("GGP/Homart II"), GGP- TRS, L.L.C. ("GGP/Teachers") and The Woodlands Land Development Holdings, L.P. ("The Woodlands Partnership"). We account for these joint ventures using the equity method because we have joint interest and joint control of these ventures with our venture partners and since they have substantive participating rights in such ventures. For financial reporting purposes, we consider these joint ventures to be individually significant Unconsolidated Real Estate Affiliates. Our investment in such affiliates varies from a strict ownership percentage due to capital or basis differences or loans and related amortization.

GGP/Homart II

        We own 50% of the membership interest of GGP/Homart II, L.L.C. ("GGP/Homart II"), a limited liability company. The remaining 50% interest in GGP/Homart II is owned by NYSCRF. GGP Homart II owns 11 retail properties and one office building. Certain 2008 and 2007 amounts have been reclassified to conform to the 2009 presentation.

			GGP/Homart II
			December 31, 2009			December 31, 2008
			(In thousands)
Assets:
	Land		$	238,164		$	239,481
	Buildings and equipment			2,783,869			2,761,838
	Less accumulated depreciation			(526,985	)		(482,683	)
	Developments in progress			5,129			85,676
		Net investment in real estate		2,500,177			2,604,312
	Cash and cash equivalents			70,417			42,836
	Accounts and notes receivable, net			47,843			45,025
	Deferred expenses, net			92,439			84,902
	Prepaid expenses and other assets			20,425			27,411
		Total assets	$	2,731,301		$	2,804,486
Liabilities and Capital:
	Mortgages, notes and loans payable		$	2,245,582		$	2,269,989
	Accounts payable, accrued expenses and other liabilities			63,923			80,803
	Capital			421,796			453,694
		Total liabilities and capital	$	2,731,301		$	2,804,486

F-48

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 5 UNCONSOLIDATED REAL ESTATE AFFILIATES (Continued)

			GGP/Homart II
			Years Ended December 31,
			2009			2008			2007
			(In thousands)
Revenues:
	Minimum rents		$	244,576		$	246,516		$	230,420
	Tenant recoveries			109,779			112,142			103,265
	Overage rents			3,546			4,429			7,008
	Other			7,841			10,502			10,028
		Total revenues		365,742			373,589			350,721
Expenses:
	Real estate taxes			31,418			32,875			29,615
	Repairs and maintenance			24,113			25,620			23,100
	Marketing			5,767			6,640			8,332
	Other property operating costs			39,434			43,219			41,116
	Provision for doubtful accounts			2,404			1,833			1,315
	Property management and other costs			22,837			23,185			22,279
	General and administrative			380			2,872			11,777
	Provisions for impairment			16,591			446			(17	)
	Litigation (recovery) provision			—			(89,225	)		89,225
	Depreciation and amortization			95,975			90,243			81,241
		Total expenses		238,919			137,708			307,983
Operating income				126,823			235,881			42,738
Interest income				5,212			7,276			7,871
Interest expense				(125,678	)		(121,543	)		(109,209	)
(Provision for) benefit from income taxes				(1,176	)		5,839			(2,202	)
Net income (loss)				5,181			127,453			(60,802	)
Allocation to noncontrolling interests				(5	)		(21	)		(26	)
Net income (loss) attributable to joint venture partners			$	5,176		$	127,432		$	(60,828	)

F-49

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 5 UNCONSOLIDATED REAL ESTATE AFFILIATES (Continued)

					GGP/Homart II
					Years Ended December 31,
					2009			2008			2007
								(In thousands)
Cash Flows from Operating Activities:
	Net income (loss)				$	5,181		$	127,453		$	(60,802	)
	Adjustments to reconcile net income (loss) to net cash provided by operating activities:
		Provisions for impairment				16,591			446			(17	)
		Depreciation and amortization				95,975			90,243			81,241
		Amortization of deferred financing costs				1,035			970			460
		Straight-line rent amortization				(4,256	)		(4,637	)		(4,929	)
		Amortization of intangibles other than in-place leases				—			—			(2,306	)
		Net changes:
			Accounts and notes receivable and other assets, net			4,031			3,050			3,354
			Deferred expenses			(15,205	)		(5,699	)		(22,132	)
			Accounts payable and accrued expenses			3,852			(115,846	)		111,954
			Other, net			4,249			8,101			(4,893	)
				Net cash provided by operating activities		111,453			104,081			101,930
Cash Flows from Investing Activities:
	Acquisition/development of real estate and property additions/improvements					(22,283	)		(128,271	)		(267,882	)
	Proceeds from sales of investment properties					—			2,179			1,349
	(Increase) decrease in restricted cash					(49	)		—			—
		Net cash used in investing activities				(22,332	)		(126,092	)		(266,533	)
Cash Flows from Financing Activities:
	Proceeds from issuance of mortgages, notes and loans payable					—			290,000			—
	Principal payments on mortgage notes, notes and loans payable					(24,407	)		(130,958	)		(24,316	)
	Notes payable from affiliate					—			—			(149,500	)
	Deferred financing costs					(7	)		(2,570	)		(17	)
	(Distributions) contributions and receivables from members, net					(37,126	)		(122,476	)		362,998
		Net cash (used in) provided by financing activities				(61,540	)		33,996			189,165
		Net change in cash and cash equivalents				27,581			11,985			24,562
Cash and cash equivalents at the beginning of period						42,836			30,851			6,289
Cash and cash equivalents at the end of period					$	70,417		$	42,836		$	30,851
Supplemental Disclosure of Cash Flow Information:
	Interest paid, net of amounts capitalized				$	120,411		$	126,621		$	122,818
Non-Cash Investing and Financing Activities:
	Capital expenditures incurred but not yet paid				$	6,269		$	26,841		$	67,497
	Write-off of fully amortized below-market leases, net					—			—			2,306
	Distribution of member loans including accrued interest of $3,532					102,578			—			—

F-50

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 5 UNCONSOLIDATED REAL ESTATE AFFILIATES (Continued)

GGP/Teachers

        We own 50% of the membership interest in GGP-TRS, L.L.C. ("GGP/Teachers"), a limited liability company. The remaining 50% interest in GGP/Teachers is owned by the Teachers' Retirement System of the State of Illinois. GGP/Teachers owns six retail properties. Certain 2008 and 2007 amounts have been reclassified to conform to the 2009 presentation.

			GGP/Teachers
			December 31, 2009			December 31, 2008
			(In thousands)
Assets:
	Land		$	195,832		$	177,740
	Buildings and equipment			1,071,748			1,076,748
	Less accumulated depreciation			(153,778	)		(145,101	)
	Developments in progress			3,586			54,453
		Net investment in real estate		1,117,388			1,163,840
	Cash and cash equivalents			6,663			7,148
	Accounts and notes receivable, net			17,622			16,675
	Deferred expenses, net			42,941			20,011
	Prepaid expenses and other assets			7,216			17,097
		Total assets	$	1,191,830		$	1,224,771
Liabilities and Members' Capital:
	Mortgages, notes and loans payable		$	1,011,700		$	1,020,825
	Accounts payable, accrued expenses and other liabilities			32,914			40,787
	Members' Capital			147,216			163,159
		Total liabilities and members' capital	$	1,191,830		$	1,224,771

F-51

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 5 UNCONSOLIDATED REAL ESTATE AFFILIATES (Continued)

			GGP/Teachers
			Years Ended December 31,
			2009			2008			2007
			(In thousands)
Revenues:
	Minimum rents		$	102,735		$	116,132		$	111,810
	Tenant recoveries			51,804			51,093			46,370
	Overage rents			2,108			3,692			4,732
	Other			2,361			2,850			3,737
		Total revenues		159,008			173,767			166,649
Expenses:
	Real estate taxes			14,597			12,536			10,817
	Repairs and maintenance			10,029			10,033			9,073
	Marketing			2,349			2,545			3,992
	Other property operating costs			19,404			20,587			19,609
	Provision for doubtful accounts			1,695			1,487			455
	Property management and other costs			9,258			9,829			9,718
	General and administrative			258			254			239
	Provisions for impairment			16,863			115			45
	Depreciation and amortization			37,549			34,901			28,806
		Total expenses		112,002			92,287			82,754
Operating income				47,006			81,480			83,895
Interest income				7			229			702
Interest expense				(55,537	)		(55,640	)		(47,740	)
Provision for from income taxes				(99	)		(158	)		(181	)
Net (loss) income			$	(8,623	)	$	25,911		$	36,676

F-52

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 5 UNCONSOLIDATED REAL ESTATE AFFILIATES (Continued)

					GGP/Teachers
					Years Ended December 31,
					2009			2008			2007
					(In thousands)
Cash Flows from Operating Activities:
	Net income				$	(8,623	)	$	25,911		$	36,676
	Adjustments to reconcile net income to net cash provided by operating activities:
		Provisions for impairment				16,863			115			45
		Depreciation and amortization				37,549			34,901			28,806
		Amortization of deferred financing costs				1,337			1,338			1,294
		Straight-line rent amortization				(1,781	)		(1,578	)		(2,797	)
		Amortization of intangibles other than in-place leases				(5,900	)		(15,565	)		(17,595	)
		Net changes:
			Accounts and notes receivable and other assets, net			(2,783	)		(8,163	)		3,132
			Deferred expenses			(11,013	)		(2,253	)		(6,668	)
			Accounts payable and accrued expenses			4,251			(4,466	)		12,278
			Other, including gain on land exchange, net			(3,830	)		(243	)		330
				Net cash provided by operating activities		26,070			29,997			55,501
Cash Flows from Investing Activities:
	Acquisition/development of real estate and property additions/improvements					(9,899	)		(59,543	)		(112,333	)
	(Increase) decrease in restricted cash					(213	)		—			—
				Net cash used in investing activities		(10,112	)		(59,543	)		(112,333	)
Cash Flows from Financing Activities:
	Proceeds from issuance of mortgages, notes and loans payable					—			—			200,000
	Principal payments on mortgage notes, notes and loans payable					(9,125	)		(8,963	)		(103,587	)
	Deferred financing costs					2			—			(2,234	)
	Contributions (distributions) and receivables from members, net					(7,320	)		25,234			(35,953	)
				Net cash (used in) provided by financing activities		(16,443	)		16,271			58,226
				Net change in cash and cash equivalents		(485	)		(13,275	)		1,394
Cash and cash equivalents at the beginning of period						7,148			20,423			19,029
Cash and cash equivalents at the end of period					$	6,663		$	7,148		$	20,423
Supplemental Disclosure of Cash Flow Information:
	Interest paid, net of amounts capitalized				$	54,651		$	56,237		$	51,818
Non-Cash Investing and Financing Activities:
	Write-off of fully amortized below-market leases, net				$	46,956		$	23,483		$	2,422
	Write-off of investment in real estate					1,306			222			3,227
	Capital expenditures incurred but not yet paid					2,032			7,481			39,251

F-53

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 5 UNCONSOLIDATED REAL ESTATE AFFILIATES (Continued)

Woodlands Land Development

        We own 52.5% of the membership interest of The Woodlands Land Development Company L.P. ("The Woodlands Partnership"), a limited liability partnership which is a venture developing the master planned community known as The Woodlands near Houston, Texas. The remaining 47.5% interest in The Woodlands Partnership is owned by Morgan Stanley Real Estate Fund II, L.P.

			The Woodlands Partnership
			December 31, 2009			December 31, 2008
			(In thousands)
Assets:
	Land		$	19,841		$	16,573
	Buildings and equipment			101,119			60,130
	Less accumulated depreciation			(14,105	)		(11,665	)
	Developments in progress			31,897			71,124
	Investment property and property held for development and sale			266,253			282,636
		Net investment in real estate		405,005			418,798
	Cash and cash equivalents			30,373			45,710
	Accounts and notes receivable, net			4,660			20,420
	Deferred expenses, net			593			1,268
	Prepaid expenses and other assets			30,275			93,538
		Total assets	$	470,906		$	579,734
Liabilities and Owners' Equity:
	Mortgages, notes and loans payable		$	281,964		$	318,930
	Accounts payable, accrued expenses and other liabilities			629			74,067
	Owners' equity			188,313			186,737
		Total liabilities and owners' equity	$	470,906		$	579,734

F-54

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 5 UNCONSOLIDATED REAL ESTATE AFFILIATES (Continued)

			The Woodlands Partnership
			Years Ended December 31,
			2009			2008			2007
			(In thousands)
Revenues:
	Minimum rents		$	6,514		$	4,227		$	734
	Land sales			72,367			137,504			161,938
	Other			11,658			12,957			34,750
		Total revenues		90,539			154,688			197,422
Expenses:
	Real estate taxes			596			634			131
	Repairs and maintenance			2,906			1,274			257
	Other property operating costs			16,668			19,180			39,162
	Land sales operations			60,717			81,833			91,539
	Depreciation and amortization			3,402			3,007			3,504
		Total expenses		84,289			105,928			134,593
Operating income				6,250			48,760			62,829
Interest income				592			769			676
Interest expense				(4,045	)		(6,268	)		(9,025	)
Provision for income taxes				(602	)		(978	)		(1,918	)
Income from continuing operations				2,195			42,283			52,562
Discontinued operations, including net gain on dispositions				—			—			94,556
Net income attributable to joint venture partners			$	2,195		$	42,283		$	147,118

F-55

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 5 UNCONSOLIDATED REAL ESTATE AFFILIATES (Continued)

					The Woodlands Partnership
					Years Ended December 31,
					2009			2008			2007
					(In thousands)
Cash Flows from Operating Activities:
	Net income				$	2,195		$	42,283		$	147,118
	Adjustments to reconcile net income to net cash provided by operating activities:
		Depreciation and amortization				3,402			3,007			3,504
		Land development and acquisitions expenditures				(18,177	)		(50,975	)		(65,851	)
		Cost of land sales				34,560			56,301			68,162
		Gain on dispositions				—			(10,260	)		(94,556	)
		Net changes:
			Accounts and notes receivable, net			15,760			(18,672	)		(1,775	)
			Prepaid expenses and other assets			63,262			(9,955	)		14,422
			Deferred expenses			675			776			738
			Accounts payable and accrued expenses			(73,437	)		(3,452	)		16,745
				Net cash provided by operating activities		28,240			9,053			88,507
Cash Flows from Investing Activities:
	Acquisition/development of real estate and property additions/improvements					(5,992	)		(52,283	)		(67,624	)
	Proceeds from dispositions					—			30,178			146,822
				Net cash (used in) provided by investing activities		(5,992	)		(22,105	)		79,198
Cash Flows from Financing Activities:
	Proceeds from issuance of mortgages, notes and loans payable					8,095			92,470			—
	Principal payments on mortgages, notes and loans payable					(45,061	)		(60,305	)		(34,959	)
	Distributions and receivables from owners, net					—			—			(120,606	)
	Other					(619	)		(762	)		—
				Net cash (used in) provided by financing activities		(37,585	)		31,403			(155,565	)
				Net change in cash and cash equivalents		(15,337	)		18,351			12,140
Cash and cash equivalents at the beginning of period						45,710			27,359			15,219
Cash and cash equivalents at the end of period					$	30,373		$	45,710		$	27,359

F-56

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 6 MORTGAGES, NOTES AND LOANS PAYABLE

        Mortgages, notes and loans payable are summarized as follows (see Note 14 for the maturities of our long term commitments):

				December 31, 2009			December 31, 2008
				(In thousands)
Fixed-rate debt:
	Collateralized mortgages, notes and loans payable			$	15,446,962		$	15,538,825
	Corporate and other unsecured term loans				3,724,463			3,701,615
	Total fixed-rate debt				19,171,425			19,240,440
Variable-rate debt:
	Collateralized mortgages, notes and loans payable				2,500,892			2,732,437
	Corporate and other unsecured term loans				2,783,700			2,783,700
	Total variable-rate debt				5,284,592			5,516,137
		Total Mortgages, notes and loans payable			24,456,017			24,756,577
			Less: Mortgages, notes and loans payable subject to compromise		(17,155,245	)		—
	Total mortgages, notes and loans payable not subject to compromise			$	7,300,772		$	24,756,577

        As previously discussed, on April 16 and 22, 2009, the Debtors filed voluntary petitions for relief under Chapter 11, which triggered defaults on substantially all debt obligations of the Debtors. However, under section 362 of Chapter 11, the filing of a bankruptcy petition automatically stays most actions against the debtor's estate. Absent an order of the Bankruptcy Court, these pre-petition liabilities are subject to settlement under a plan of reorganization, and therefore are presented as Liabilities subject to compromise on the Consolidated Balance Sheet. Of the total amount of debt presented above, $7.30 billion is not subject to compromise, consisting primarily of the collateralized mortgages of the Non-Debtors and the Track 1A Debtors and the DIP Facility. Also, as discussed in Note 1, the $1.70 billion of mortgages of the Track 1B Debtors were reflected as subject to compromise at December 31, 2009 as the effective dates of their plans of reorganization did not occur as of December 31, 2009. We expect that such mortgage loan amounts will be reflected as not subject to compromise in 2010.

        As of December 31, 2009, as described in Note 1, plans of reorganization for the Track 1A Debtors, owning 50 operating properties secured by approximately $4.65 billion of mortgage debt, had been declared effective. The Track 1 Plans for such Track 1A Debtors provided for, in exchange for payment of certain extension fees and cure of previously unpaid amounts due on the applicable mortgage loans (primarily, principal amortization otherwise scheduled to have been paid since the Petition Date), the extension of the secured mortgage loans at previously existing non-default interest rates. As a result of the extensions, none of these loans will have a maturity prior to January 1, 2014 and the weighted average remaining duration of the secured loans associated with these properties is 4.49 years. In conjunction with these extensions, certain financial and operating covenants and guarantees were created or reinstated, all to be effective with the bankruptcy emergence of the 2010

F-57

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 6 MORTGAGES, NOTES AND LOANS PAYABLE (Continued)

Track Debtors. Also in conjunction with such extensions, the Debtors for 13 properties (the "Special Consideration Properties") have until two days following emergence of the TopCo Debtors to determine whether the collateral property should be deeded to the respective lender or the property should be retained with further modified loan terms. Prior to emergence of the TopCo Debtors, the lenders related to the Special Consideration Properties control all cash produced by the property and we are required to pay any operating expense shortfall. In addition, prior to emergence of the TopCo Debtors, the respective lender can change the manager of the property or put the property in receivership and GGP has an unrestricted right to deed the property to the lender. Five of the Special Consideration Properties, representing $371.1 million in secured debt, are owned by the Track 1A Debtors.

        The weighted-average interest rate including the effects of interest rate swaps, excluding the effects of deferred finance costs and using the contract rate prior to any defaults on such loans, on our mortgages, notes and loans payable was 5.31% at December 31, 2009 and 5.36% at December 31, 2008. The weighted average interest rate, using the contract rate prior to any defaults on such loans, on the remaining corporate unsecured fixed and variable rate debt and the revolving credit facility was 4.24% at December 31, 2009 and 4.29% at December 31, 2008. With respect to those loans and Debtors that remain in bankruptcy at December 31, 2009, we are currently recognizing interest expense on our loans based on contract rates in effect prior to bankruptcy as the Bankruptcy Court has ruled that interest payments based on such contract rates constitutes adequate protection to the secured lenders.

        The Track 2010 Debtors, pursuant to their debt obligations, are required to comply with certain customary financial covenants and affirmative representations and warranties including, but not limited to, stipulations relating to leverage, net equity, maintenance of our REIT status, maintenance of our New York Stock Exchange (the 'Exchange") listing, cross-defaults to certain other indebtedness and interest or fixed charge coverage ratios. Such financial covenants are calculated from applicable Company information computed in accordance with GAAP, subject to certain exclusions or adjustments, as defined. As discussed in the Debtors-in-possession section of Note 1, we were unable to repay or refinance certain debt as it became due, and our Chapter 11 cases have stayed the enforcement of the default provisions of such covenants.

Collateralized Mortgages, Notes and Loans Payable

        As of December 31, 2009, $23.86 billion of land, buildings and equipment and developments in progress (before accumulated depreciation) have been pledged as collateral for our mortgages, notes and loans payable. Certain of these secured loans are cross-collateralized with other properties. Although substantially all of the $17.95 billion of fixed and variable rate secured mortgage notes and loans payable are non-recourse, $2.66 billion of such mortgages, notes and loans payable are recourse due to guarantees or other security provisions for the benefit of the note holder. Enforcement of substantially all of these security provisions are stayed by our Chapter 11 cases. In addition, certain mortgage loans as of December 31, 2009 contain other credit enhancement provisions (primarily master leases for all or a portion of the property) which have been provided by 2010 Track Debtors upon which we do not expect to perform during the pendency of our Chapter 11 Cases. Certain mortgage notes payable may be prepaid but are generally subject to a prepayment penalty equal to a yield-maintenance premium, defeasance or a percentage of the loan balance.

F-58

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 6 MORTGAGES, NOTES AND LOANS PAYABLE (Continued)

Corporate and Other Unsecured Loans

        The TopCo Debtors have certain unsecured debt obligations which are described below. Although the contractual terms of such loans are summarized below, as a result of the Chapter 11 Cases, the TopCo Debtors are not paying dividends or interest on such obligations. Satisfaction of these obligations will be addressed in the TopCo Debtors' plan of reorganization.

        In April 2007, GGPLP sold $1.55 billion aggregate principal amount of 3.98% Exchangeable Notes. Interest on the Exchangeable Notes is payable semi-annually in arrears on April 15 and October 15 of each year, beginning October 15, 2007. The Exchangeable Notes will mature on April 15, 2027 unless previously redeemed by GGPLP, repurchased by GGPLP or exchanged in accordance with their terms prior to such date. Prior to April 15, 2012, we will not have the right to redeem the Exchangeable Notes, except to preserve our status as a REIT. On or after April 15, 2012, we may redeem for cash all or part of the Exchangeable Notes at any time, at 100% of the principal amount of the Exchangeable Notes, plus accrued and unpaid interest, if any, to the redemption date. On each of April 15, 2012, April 15, 2017 and April 15, 2022, holders of the Exchangeable Notes may require us to repurchase the Exchangeable Notes, in whole or in part, for cash equal to 100% of the principal amount of Exchangeable Notes to be repurchased, plus accrued and unpaid interest.

        The Exchangeable Notes are exchangeable for GGP common stock or a combination of cash and common stock, at our option, upon the satisfaction of certain conditions, and any exchange currently is stayed by our Chapter 11 cases. The exchange rate for each $1,000 principal amount of the Exchangeable Notes is 11.27 shares of GGP common stock, which is subject to adjustment under certain circumstances. See Note 2 for information regarding the impact on our 2008 and 2007 comparative consolidated financial statements as the result of the new accounting guidance adopted as of January 1, 2009 relating to certain convertible debt instruments.

The Second Amended and Restated Credit Agreement (the "2006 Credit Facility").

        The 2006 Credit Facility provides for a $2.85 billion term loan (the "Term Loan") and a $650 million revolving credit facility. However, as of December 31, 2009, $1.99 billion of the Term Loan and $590.0 million of the revolving credit facility was outstanding under the 2006 credit facility and no further amounts were available to be drawn due to our Chapter 11 cases. The 2006 Credit Facility had a scheduled maturity of February 24, 2010. The interest rate, as of December 31, 2009, was LIBOR plus 1.25%.

        In May 2006 TRCLP sold $800.0 million of senior unsecured notes which provide for semi-annual, interest only payments at a rate of 6.75% and payment of the principal in full on May 1, 2013.

        Concurrently with the 2006 Credit Facility transaction, GGP Capital Trust I, a Delaware statutory trust (the "Trust") and a wholly-owned subsidiary of GGPLP, completed a private placement of $200 million of trust preferred securities ("TRUPS"). The Trust also issued $6.2 million of Common Securities to GGPLP. The Trust used the proceeds from the sale of the TRUPS and Common Securities to purchase $206.2 million of floating rate Junior Subordinated Notes of GGPLP due 2036. Distributions on the TRUPS are equal to LIBOR plus 1.45%. Distributions are cumulative and accrue from the date of original issuance. The TRUPS mature on April 30, 2036, but may be redeemed beginning on April 30, 2011 if the Trust exercises its right to redeem a like amount of the Junior

F-59

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 6 MORTGAGES, NOTES AND LOANS PAYABLE (Continued)

Subordinated Notes. The Junior Subordinated Notes bear interest at LIBOR plus 1.45%. Though the Trust is a wholly-owned subsidiary of GGPLP, we are not the primary beneficiary of the Trust and, accordingly, it is not consolidated for accounting purposes. As a result, we have recorded the Junior Subordinated Notes as Mortgages, Notes and Loans Payable and our common equity interest in the Trust as Prepaid Expenses and Other Assets in our Consolidated Balance Sheets at December 31, 2009 and 2008.

        In conjunction with the TRC Merger, we acquired certain publicly-traded unsecured debt which totaled $1.45 billion at December 31, 2009 and 2008.

Debtor-in-Possession Facility

        On May 14, 2009, the Bankruptcy Court issued an order authorizing certain of the Debtors to enter into a Senior Secured Debtor in Possession Credit, Security and Guaranty Agreement among the Company, as co-borrower, GGP Limited Partnership, as co-borrower, certain of their subsidiaries, as guarantors, UBS AG, Stamford Branch, as agent, and the lenders party thereto (the "DIP Facility").

        The DIP Facility, which closed on May 15, 2009, provides for an aggregate commitment of $400.0 million (the "DIP Term Loan"), which was used to refinance the $215.0 million remaining balance on the short-term secured loan and the remainder of which has been used to provide additional liquidity to the Debtors during the pendency of their Chapter 11 Cases. The DIP Facility provides that principal outstanding on the DIP Term Loan bears interest at an annual rate equal to LIBOR (subject to a minimum LIBOR floor of 1.5%) plus 12% and matures at the earlier of May 16, 2011 or the effective date of a plan of reorganization of the 2010 Track Debtors and has an outstanding balance of $400.0 million at December 31, 2009.

        Subject to certain conditions being present, the Company will have the right to elect to repay all or a portion of the outstanding principal amount of the DIP Term Loan, plus accrued and unpaid interest thereon and all exit fees at maturity, by issuing (i) common stock of the Company to the lenders (the "Equity Conversion") or (ii) debt to the lenders, which would be issued for a three-year term, prepayable at any time without penalty or premium, and otherwise on terms substantially similar to those of the DIP Term Loan. Any Equity Conversion will be limited to the lenders' receipt of Company common stock equaling no more than (i) 8.0% of the Company common stock distributed in connection with the Debtors' plan of reorganization, as confirmed by the Bankruptcy Court (the "Plan of Reorganization") on a fully-diluted basis, or (ii) 9.9% of the Company common stock actually distributed in connection with the Plan of Reorganization on its effective date, without giving effect to common stock held back for the payment of contingencies. The DIP Credit Agreement contains customary non-financial covenants, representations and warranties, and events of default. Although the DIP Agreement contains no financial covenants, it does include obligations to periodically provide certain operating information concerning the Debtors directly to the DIP Agent.

Letters of Credit and Surety Bonds

        We had outstanding letters of credit and surety bonds of $112.8 million as of December 31, 2009 and $286.2 million as of December 31, 2008. These letters of credit and bonds were issued primarily in connection with insurance requirements, special real estate assessments and construction obligations.

F-60

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 7 INCOME TAXES

        We elected to be taxed as a REIT under sections 856-860 of the Internal Revenue Code of 1986, as amended (the "Code"), commencing with our taxable year beginning January 1, 1993. To qualify as a REIT, we must meet a number of organizational and operational requirements, including requirements to distribute at least 90% of our ordinary taxable income and to distribute to stockholders or pay tax on 100% of capital gains and to meet certain asset and income tests. As discussed in Note 1, we obtained Bankruptcy Court approval to distribute $0.19 per share (no more than 10% in cash) to our stockholders (paid on January 28, 2010) to satisfy such GGPI REIT distribution requirements for 2009.

        As a REIT, we will generally not be subject to corporate level Federal income tax on taxable income we distribute currently to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to Federal income taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for four subsequent taxable years. Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income or property, and to Federal income and excise taxes on our undistributed taxable income. In addition, we are subject to rules which may impose corporate income tax on certain built-in gains recognized upon the disposition of assets owned by our subsidiaries where such subsidiaries (or other predecessors) had formerly been C corporations. These rules apply only where the disposition occurs within certain specified recognition periods. The properties subject to these rules are TRCLP properties that were associated with the private REIT/TRS restructuring described below and our Victoria Ward properties. However, to the extent that any such properties subject to the built-in gain tax are to be sold, we intend to utilize tax strategies when prudent, such as dispositions through like-kind exchanges to limit or offset the amount of such gains and therefore the amount of tax paid, although the market climate and our business needs may not allow for such strategies to be implemented.

        We also have subsidiaries which we have elected to be treated as a TRS (also "TRS entities") and which are, therefore, subject to federal and state income taxes. Our primary TRS entities include GGMI and entities which own our master planned community properties as well as some operating properties. Current Federal income taxes of certain of these TRS entities are likely to increase in future years as we exhaust the net loss carryforwards of these entities and as certain master planned community developments are completed. Such increases could be significant.

        Effective March 31, 2007, through a series of transactions, a private REIT owned by GGPLP was contributed to TRCLP and one of our TRS entities became a qualified REIT subsidiary of that private REIT ("the Private REIT/TRS Restructuring"). This transaction resulted in a $328.4 million decrease in our net deferred tax liabilities, an approximate $7.4 million increase in our current taxes payable and an approximate $321.0 million income tax benefit related to the properties now owned by that private REIT.

F-61

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 7 INCOME TAXES (Continued)

        The provision for (benefit from) income taxes for the years ended December 31, 2009, 2008 and 2007 was as follows:

	2009			2008			2007
	(In thousands)
Current	$	(15,443	)	$	27,605		$	73,976
Deferred		833			(4,144	)		(368,136	)
Total	$	(14,610	)	$	23,461		$	(294,160	)

        Income tax expense computed by applying the Federal corporate tax rate for the years ended December 31, 2009, 2008 and 2007 is reconciled to the provision for income taxes as follows:

	2009			2008			2007
	(In thousands)
Tax at statutory rate on earnings from continuing operations before income taxes	$	(454,416	)	$	1,302		$	(2,172	)
Increase in valuation allowances, net		30,487			9,027			160
State income taxes, net of Federal income tax benefit		5,905			4,484			2,290
Tax at statutory rate on REIT earnings not subject to Federal income taxes		397,533			8,227			22,973
Tax benefit from change in tax rates, prior period adjustments and other permanent differences		4,775			(1,904	)		(665	)
Tax benefit from Private REIT/TRS restructuring		—			359			(320,956	)
Uncertain tax position expense, excluding interest		866			(1,574	)		(2,763	)
Uncertain tax position interest, net of Federal income tax benefit		240			3,540			6,973
(Benefit from) Provision for income taxes	$	(14,610	)	$	23,461		$	(294,160	)

        Realization of a deferred tax benefit is dependent upon generating sufficient taxable income in future periods. Our net operating loss carryforwards are currently scheduled to expire in subsequent years through 2030. Some of the net operating loss carryforward amounts are subject to annual limitations under Section 382 of the Code. This annual limitation under Section 382 is subject to modification if a taxpayer recognizes what are called "built-in gain items." It is possible that the Company could, in the future, experience a change in control pursuant to Section 382 that could put additional limits on the benefit of deferred tax assets.

F-62

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 7 INCOME TAXES (Continued)

        The amounts and expiration dates of operating loss and tax credit carryforwards for tax purposes for the TRS's are as follows:

	Amount		Expiration Dates
	(In thousands)
Net operating loss carryforwards—Federal	$	114,459	2010 - 2030
Net operating loss carryforwards—State		89,696	2010 - 2030
Capital loss carryforwards		223	2013
Tax credit carryforwards—Federal AMT		847	N/A

        Each TRS and certain REIT entities subject to state income taxes is a tax paying component for purposes of classifying deferred tax assets and liabilities. As of December 31, 2009, the Company had gross deferred tax assets totaling $273.5 million, of which a valuation allowance of $40.6 million has been established against certain deferred tax assets, and gross deferred tax liabilities of $1.07 billion. Net deferred tax assets (liabilities) are summarized as follows:

		2009			2008
		(In thousands)
Total deferred tax assets		$	69,225		$	48,096
Valuation allowance			(40,610	)		(10,123	)
	Net deferred tax assets		28,615			37,973
Total deferred tax liabilities			(866,400	)		(868,978	)
Net deferred tax liabilities		$	(837,785	)	$	(831,005	)

        Due to the uncertainty of the realization of certain tax carryforwards, we have established valuation allowances on those deferred tax assets that we do not reasonably expect to realize.

        The tax effects of temporary differences and carryforwards included in the net deferred tax liabilities at December 31, 2009 and 2008 are summarized as follows:

	2009			2008
	(In thousands)
Property, primarily differences in depreciation and amortization, the tax basis of land assets and treatment of interest and certain other costs	$	(747,086	)	$	(772,761	)
Other TRS property, primarily differences in basis of assets and liabilities		(372	)		(15,481	)
REIT deferred state tax liability		(9,653	)		(7,579	)
Deferred income		(269,933	)		(219,666	)
Interest deduction carryforwards		142,073			142,073
Operating loss and tax credit carryforwards		65,459			37,269
Residential property, primarily differences in tax basis		22,337			15,263
Valuation allowance		(40,610	)		(10,123	)
Net deferred tax liabilities	$	(837,785	)	$	(831,005	)

F-63

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 7 INCOME TAXES (Continued)

        The deferred tax liability associated with the master planned communities is largely attributable to the difference between the basis and value determined as the date of the acquisition of TRC in 2004 adjusted for sales that have occurred since that time. The cash cost related to this deferred tax liability is dependent upon the sales price of future land sales and the method of accounting used for income tax purposes. The deferred tax liability related to deferred income is the difference between the income tax method of accounting and the financial statement method of accounting for prior sales of land in our Master Planned Communities.

        Although we believe our tax returns are correct, the final determination of tax examinations and any related litigation could be different than what was reported on the returns. In the opinion of management, we have made adequate tax provisions for years subject to examination. Generally, we are currently open to audit under the statute of limitations by the Internal Revenue Service for the years ending December 31, 2005 through 2009 and are open to audit by state taxing authorities for years ending December 31, 2004 through 2009. In the fourth quarter of 2008, we effectively settled with the IRS with respect to the audits for the years 2001 through 2005 for two of our taxable REIT subsidiaries. In February 2009, we were notified that the IRS had commenced examination of the year ended December 31, 2007 with respect to two taxable REIT subsidiaries. We received a letter of Income Tax Examination Changes ("30 Day Letter") for the two taxable REIT subsidiaries with the proposed changes amounting to additional tax of $128.1 million. We timely filed a protest disputing the proposed changes. In December 2009, we were notified that the same two taxable REIT subsidiaries are also under audit for the year ended December 31, 2008. It is the Company's position that the pertinent tax law in question has been properly applied and reflected in the income tax returns for both 2008 and 2007. We are unable to determine when the examinations will be resolved.

        On January 1, 2007, we adopted a generally accepted accounting principle related to accounting for uncertainty in income taxes, which prescribes a recognition threshold that a tax position is required to meet before recognition in the financial statements and provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues.

        At January 1, 2007, we had total unrecognized tax benefits of $135.1 million, excluding accrued interest, of which approximately $69 million would impact our effective tax rate. These unrecognized tax benefits increased our income tax liabilities by $82.1 million, increased goodwill by $28.0 million and cumulatively reduced retained earnings by $54.1 million. As of January 1, 2007, we had accrued interest of $11.9 million related to these unrecognized tax benefits and no penalties. Prior to adoption of the generally accepted accounting principle related to accounting for uncertainty in income taxes, we did not treat either interest or penalties related to tax uncertainties as part of income tax expense. With the adoption of the generally accepted accounting principle related to accounting for uncertainty in income taxes, we have chosen to change this accounting policy. As a result, we will recognize and report interest and penalties, if necessary, within our provision for income tax expense from January 1, 2007 forward. We recognized potential interest expense related to the unrecognized tax benefits of $3.7 million, $2.7 million and $7.0 million for the years ended December 31, 2009, 2008 and 2007, respectively. During the years ended December 31, 2009, 2008 and 2007 we recognized previously unrecognized tax benefits, excluding accrued interest, of ($6.2) million, $7.0 million and $20 million, respectively. The recognition of the previously unrecognized tax benefits resulted in the reduction of interest expense accrued related to these amounts. At December 31, 2009, we had total unrecognized

F-64

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 7 INCOME TAXES (Continued)

tax benefits of $104.0 million, excluding interest, of which $32.0 million would impact our effective tax rate.

	2009			2008			2007
	(In thousands)
Unrecognized tax benefits, opening balance	$	112,915		$	127,109		$	135,062
Gross increases—tax positions in prior period		41			3,336			1,970
Gross increases—tax positions in current period		6,969			3,637			10,029
Gross decreases—tax positions in prior period		(15,950	)		(3,549	)		—
Lapse of statute of limitations		—			(17,618	)		(19,952	)
Unrecognized tax benefits, ending balance	$	103,975		$	112,915		$	127,109

        Based on our assessment of the expected outcome of existing examinations or examinations that may commence, or as a result of the expiration of the statute of limitations for specific jurisdictions, it is reasonably possible that the related unrecognized tax benefits, excluding accrued interest, for tax positions taken regarding previously filed tax returns will materially change from those recorded at December 31, 2009. A material change in unrecognized tax benefits could have a material effect on our statements of income and comprehensive income. As of December 31, 2009, there is $94.3 million of unrecognized tax benefits, excluding accrued interest, which due to the reasons above, could significantly increase or decrease during the next twelve months.

        Earnings and profits, which determine the taxability of dividends to stockholders, differ from net income reported for financial reporting purposes due to differences for Federal income tax reporting purposes in, among other things, estimated useful lives, depreciable basis of properties and permanent and temporary differences on the inclusion or deductibility of elements of income and deductibility of expense for such purposes.

        Distributions paid on our common stock and their tax status, as sent to our shareholders, is presented in the following table. The tax status of GGP distributions in 2009, 2008 and 2007 may not be indicative of future periods.

	2009		2008		2007
Ordinary income	$	0.103	$	1.425	$	0.926
Return of capital		—		—		—
Qualified dividends		—		—		0.501
Capital gain distributions		0.087		0.075		0.423
Distributions per share	$	0.190	$	1.500	$	1.850

F-65

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 8 RENTALS UNDER OPERATING LEASES

        We receive rental income from the leasing of retail and other space under operating leases. The minimum future rentals based on operating leases of our Consolidated Properties held as of December 31, 2009 are as follows:

Year	Amount
	(In thousands)
2010	$	1,574,692
2011		1,455,964
2012		1,291,194
2013		1,137,631
2014		988,367
Subsequent		3,183,947

        Minimum future rentals exclude amounts which are payable by certain tenants based upon a percentage of their gross sales or as reimbursement of operating expenses and amortization of above and below-market tenant leases. Such operating leases are with a variety of tenants, the majority of which are national and regional retail chains and local retailers, and consequently, our credit risk is concentrated in the retail industry.

NOTE 9 TRANSACTIONS WITH AFFILIATES

        Management and other fee revenues primarily represent management and leasing fees, development fees, financing fees and fees for other ancillary services performed for the benefit of certain of the Unconsolidated Real Estate Affiliates and for properties owned by third parties. Fees earned from the Unconsolidated Properties totaled $76.6 million in 2009, $74.3 million in 2008 and $83.4 million in 2007. Such fees are recognized as revenue when earned.

NOTE 10 STOCK-BASED COMPENSATION PLANS

Incentive Stock Plans

        Prior to the Chapter 11 Cases, we granted qualified and non-qualified stock options and restricted stock to officers and key employees through the 2003 Incentive Stock Plan (the "2003 Incentive Plan"). The 2003 Incentive Plan provides for the issuance of 9,000,000 shares, of which 5,625,232 shares (4,878,500 stock options and 746,732 restricted shares) have been granted as of December 31, 2009, subject to certain customary adjustments to prevent dilution. Additionally, the Compensation Committee of the Board of Directors grants employment inducement awards to senior executives on a discretionary basis, and in the fourth quarter of 2008, granted 1,800,000 stock options to two senior executives. Stock options are granted by the Compensation Committee of the Board of Directors at an exercise price of not less than 100% of the Fair Value of our common stock on the date of the grant. The terms of the options are determined by the Compensation Committee.

F-66

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 10 STOCK-BASED COMPENSATION PLANS (Continued)

        The following tables summarize stock option activity for the 2003 Incentive Stock Plan as of and for the years ended December 31, 2009, 2008 and 2007.

	2009					2008					2007
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Stock options outstanding at January 1		4,730,000		$	33.01		3,053,000		$	51.21		3,167,348		$	38.41
Granted		—			—		1,800,000			3.73		1,205,000			65.81
Exercised		—			—		(23,000	)		15.24		(1,318,748	)		33.81
Forfeited		(290,000	)		54.66		(100,000	)		65.81		—			—
Expired		(198,500	)		30.78		—			—		(600	)		9.99
Stock options outstanding at December 31		4,241,500		$	31.63		4,730,000		$	33.01		3,053,000		$	51.21

	Stock Options Outstanding						Stock Options Exercisable
Range of Exercise Prices	Shares		Weighted Average Remaining Contractual Term (in years)		Weighted Average Exercise Price		Shares		Weighted Average Remaining Contractual Term (in years)		Weighted Average Exercise Price
$0 - $6.5810		1,800,000		3.8	$	3.73		1,800,000		3.8	$	3.73
$6.5811 - $13.1620		3,000		0.3		9.99		3,000		0.3		9.99
$13.1621 - $19.7430		50,000		2.7		15.49		50,000		2.7		15.49
$32.9051 - $39.4860		531,000		0.1		35.59		531,000		0.1		35.59
$39.4861 - $46.0670		30,000		0.2		44.59		30,000		0.2		44.59
$46.0671 - $52.6480		862,500		0.9		49.75		787,500		0.9		49.68
$59.2291 - $65.8100		965,000		1.7		65.81		703,000		1.7		65.81
Total		4,241,500		2.3	$	31.63		3,904,500		2.3	$	28.98
Intrinsic value (in thousands)	$	14,099					$	14,099

        The intrinsic value of outstanding and exercisable stock options as of December 31, 2009 represents the excess of our closing stock price on that date, $11.56, over the exercise price multiplied by the applicable number of shares that may be acquired upon exercise of stock options, and is not presented in the table above if the result is a negative value. The intrinsic value of exercised stock options represents the excess of our stock price at the time the option was exercised over the exercise price and was $0.6 million for options exercised during 2008 and $39.3 million for options exercised during 2007. No stock options were exercised during 2009.

        The weighted-average Fair Value of stock options as of the grant date was $1.94 for stock options granted during 2008 and $11.07 for stock options granted during 2007. No stock options were granted during 2009.

F-67

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 10 STOCK-BASED COMPENSATION PLANS (Continued)

        Prior to 2007, stock options generally vested 20% at the time of the grant and in 20% annual increments thereafter. In February 2007, however, in lieu of awarding options similar in size to prior years to two of our senior executives, the Compensation Committee of our Board of Directors accelerated the vesting of options held by these executives so that all such options became immediately vested and exercisable. As a result, the vesting of 705,000 options was accelerated and compensation expense of $4.1 million which would have been recognized in 2007 through 2010 was recognized in the first quarter of 2007.

Restricted Stock

        Pursuant to the 2003 Stock Incentive Plan, we make restricted stock grants to certain employees and non-employee directors. The vesting terms of these grants are specific to the individual grant. The vesting terms vary in that a portion of the shares vest either immediately or on the first anniversary and the remainder vest in equal annual amounts over the next two to five years. Participating employees must remain employed for vesting to occur (subject to certain exceptions in the case of retirement). Shares that do not vest are forfeited. Dividends are paid on restricted stock and are not returnable, even if the underlying stock does not ultimately vest.

        The following table summarizes restricted stock activity for the respective grant years as of and for the years ended December 31, 2009, 2008, and 2007.

		2009					2008					2007
		Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value
Nonvested restricted stock grants outstanding as of January 1			410,767		$	41.29		136,498		$	59.75		72,666		$	47.62
	Granted		70,000			2.10		360,232			35.69		96,500			65.29
	Vested		(135,706	)		35.38		(53,164	)		54.24		(32,668	)		49.11
	Canceled		(69,628	)		46.04		(32,799	)		35.65		—			—
Nonvested restricted stock grants outstanding as of December 31			275,433		$	33.04		410,767		$	41.29		136,498		$	59.75

        The total Fair Value of restricted stock grants which vested during 2009 was $0.1 million, during 2008 was $2.0 million and during 2007 was $2.0 million.

Threshold-Vesting Stock Options

        Under the 1998 Incentive Stock Plan (the "1998 Incentive Plan"), stock incentive awards to employees in the form of threshold-vesting stock options ("TSOs") have been granted. The exercise price of the TSO is the Current Market Price ("CMP") as defined in the 1998 Incentive Plan of our common stock on the date the TSO is granted. In order for the TSOs to vest, our common stock must achieve and sustain the applicable threshold price for at least 20 consecutive trading days at any time during the five years following the date of grant. Participating employees must remain employed until

F-68

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 10 STOCK-BASED COMPENSATION PLANS (Continued)

vesting occurs in order to exercise the options. The threshold price is determined by multiplying the CMP on the date of grant by an Estimated Annual Growth Rate (7%) and compounding the product over a five-year period. TSOs granted in 2004 and thereafter must be exercised within 30 days of the vesting date. TSOs granted prior to 2004, all of which have vested, have a term of up to 10 years. Under the 1998 Incentive Plan, 8,163,995 options have been granted as of December 31, 2009, subject to certain customary adjustments to prevent dilution. No TSOs were granted in 2008 or 2009 and the 1998 Incentive Plan terminated December 31, 2008.

        The following table summarizes TSO activity as of December 31, 2009 by grant year.

	TSO Grant Year
	2007
TSOs outstanding at January 1, 2009		1,079,194
Forfeited(1)		(125,311	)
Vested and exercised		—
TSOs outstanding at December 31, 2009(2)		953,883
Intrinsic value(3)	$	—
Intrinsic value—options exercised		—
Fair value—options exercised		—
Cash received—options exercised		—
Exercise price(4)	$	65.81
Threshold price		92.30
Fair value of options on grant date		9.54
Remaining contractual term (in years)		2.1

(1)

No TSO expirations for years presented.

(2)

TSOs outstanding at December 31, 2009 for the years 2006 and prior were 1,014,642.

(3)

Intrinsic value is not presented if result is a negative number.

(4)

A weighted average exercise price is not applicable as there is only one grant date and issuance per year.

        The Company has a $200 million per fiscal year common stock repurchase program which gives us the ability to acquire some or all of the shares of common stock to be issued upon the exercise of the TSOs or the Contingent Stock Agreement under which we assumed the obligations of TRC to issue shares of common stock to the beneficiaries thereunder (the "CSA") (Note 14). During 2008 and in 2009, no shares were repurchased and, during the pendency of our Chapter 11 Cases, no stock repurchases are expected.

F-69

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 10 STOCK-BASED COMPENSATION PLANS (Continued)

Other Required Disclosures

        Historical data, such as the past performance of our common stock and the length of service by employees, is used to estimate expected life of the stock options, TSOs and our restricted stock and represents the period of time the options or grants are expected to be outstanding. No TSOs were granted during the years ended December 31, 2009 and 2008 and no stock options were granted during 2009. The Fair Values of TSOs granted in 2007 were estimated using the binomial method. The value of restricted stock grants is calculated as the average of the high and low stock prices on the date of the initial grant. The Fair Values of all other stock options were estimated on the date of grant using the Black-Scholes-Merton option pricing model. These Fair Values are affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. Expected volatilities are based on historical volatility of our stock price as well as that of our peer group, implied volatilities and various other factors. The weighted average estimated value of TSOs granted during 2007 and stock options granted during 2007 and 2008 were based on the following assumptions:

	2008			2007
Risk-free interest rate		1.68	%		4.70	%
Dividend yield		4.00	%		4.00	%
Expected volatility		97.24	%		24.72	%
Expected life (in years)		3.0			5.0

        Compensation expense related to the Incentive Stock Plans, TSOs and restricted stock was $8.6 million in 2009, $6.8 million in 2008 and $16.9 million in 2007.

        As of December 31, 2009, total compensation expense which had not yet been recognized related to nonvested options, TSOs and restricted stock grants was $14.7 million. Of this total, $8.4 million is expected to be recognized in 2010, $5.6 million in 2011 and $0.7 million in 2012. These amounts may be impacted by future grants, changes in forfeiture estimates or vesting terms, actual forfeiture rates which differ from estimated forfeitures and/or timing of TSO vesting.

Employee Stock Purchase Plan

        The General Growth Properties, Inc. Employee Stock Purchase Plan (the "ESPP"), which was terminated effective June 30, 2009 and had been suspended from June 2008 through June 2009, was established to assist eligible employees in acquiring stock ownership interest in GGP. Under the ESPP, eligible employees made payroll deductions over a six-month purchase period. At the end of each six-month purchase period, the amounts withheld were used to purchase shares of our common stock at a purchase price equal to 85% of the lesser of the closing price of a share of a common stock on the first or last trading day of the purchase period. The ESPP was considered a compensatory plan in accordance with the generally accepted accounting principles related to share—based payments.            From inception through June 30, 2009, an aggregate of 1.7 million shares of our common stock had been purchased by eligible employees under the ESPP. Compensation expense related to the ESPP was $1.0 million in 2008 and $2.0 million in 2007. No compensation expense was recognized in 2009.

F-70

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 10 STOCK-BASED COMPENSATION PLANS (Continued)

Defined Contribution Plan

        We sponsor the General Growth 401(k) Savings Plan (the "401(k) Plan") which permits all eligible employees to defer a portion of their compensation in accordance with the provisions of Section 401(k) of the Code. Subject to certain limitations (including an annual limit imposed by the Code), each participant is allowed to make before-tax contributions up to 50% of gross earnings, as defined. We add to a participant's account through a matching contribution up to 5% of the participant's annual earnings contributed to the 401(k) Plan. We match 100% of the first 4% of earnings contributed by each participant and 50% of the next 2% of earnings contributed by each participant. We recognized expense resulting from the matching contributions of $9.1 million in 2009, $10.7 million in 2008, and $10.2 million in 2007.

Dividend Reinvestment and Stock Purchase Plan

        The Dividend Reinvestment and Stock Purchase Plan ("DRSP") was terminated on the Petition Date. In general, the DRSP had allowed participants to purchase our common stock from dividends received or additional cash investments. The stock was purchased at current market price, but no fees or commissions were charged to the participant. As of the Petition Date, an aggregate of 837,604 shares of our common stock had been issued under the DRSP.

NOTE 11 OTHER ASSETS AND LIABILITIES

        The following table summarizes the significant components of prepaid expenses and other assets.

	December 31, 2009		December 31, 2008
	(In thousands)
Below-market ground leases (Note 2)	$	241,676	$	247,553
Receivables—finance leases and bonds		119,506		118,543
Security and escrow deposits		99,685		156,574
Prepaid expenses		88,651		63,879
Real estate tax stabilization agreement (Note 2)		71,607		75,531
Special Improvement District receivable		48,713		51,314
Above-market tenant leases (Note 2)		34,339		51,308
Deferred tax, net of valuation allowances		28,615		37,973
Other		21,955		32,780
	$	754,747	$	835,455

F-71

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 11 OTHER ASSETS AND LIABILITIES (Continued)

        The following table summarizes the significant components of accounts payable, accrued expenses and other liabilities.

			December 31, 2009			December 31, 2008
			(In thousands)
Accounts payable and accrued expenses			$	434,911		$	263,167
Accrued interest				366,398			115,968
Construction payable				150,746			257,178
Uncertain tax position liability				129,413			134,646
Accrued payroll and other employee liabilities				104,926			62,591
Accrued real estate taxes				88,511			90,663
Hughes participation payable (Note 8)				68,378			73,325
Deferred gains/income				67,611			62,716
Below-market tenant leases (Note 2)				63,290			88,756
Conditional asset retirement obligation liability				24,601			23,499
Tenant and other deposits				23,250			24,452
Derivative financial instruments				—			27,715
Funded defined contribution plan liabilities				—			7,517
Other				212,861			306,956
	Total accounts payable and accrued expenses			1,734,896			1,539,149
	Less: amounts subject to compromise (Note 1)			(612,008	)		—
		Accounts payable and accrued expenses not subject to compromise	$	1,122,888		$	1,539,149

F-72

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 12 NONCONTROLLING INTERESTS

        The following table reflects the activity of the redeemable noncontrolling interests for the years ended December 31, 2009, 2008 and 2007.

	(In thousands)
Balance at December 31, 2006 (as adjusted)	$	3,109,732
Net income		69,472
Distributions		(169,522	)
Conversion of operating partnership units into common shares		(7,695	)
Conversion of convertible preferred units to common shares		(488	)
Other comprehensive income		5,486
Adjustment for noncontrolling interests in operating partnership		65,431
Adjust redeemable noncontrolling interests		(713,515	)
Balance at December 31, 2007	$	2,358,901
Net income		11,499
Distributions		(88,328	)
Conversion of operating partnership units into common shares		(9,147	)
Conversion of convertible preferred units to common shares		(250	)
Other comprehensive loss		(18,160	)
Adjustment for noncontrolling interests in operating partnership		117,447
Adjust redeemable noncontrolling interests		(1,872,037	)
Balance at December 31, 2008	$	499,925
Net loss		(21,959	)
Distributions		(9,433	)
Conversion of operating partnership units into common shares		(324,489	)
Other comprehensive income		10,573
Adjustment for noncontrolling interests in operating partnership		(13,200	)
Adjust redeemable noncontrolling interests		65,416
Balance at December 31, 2009	$	206,833

        On January 2, 2009, MB Capital Units LLC, pursuant to the Rights Agreement, converted 42,350,000 Common Units (approximately 13% of all outstanding Common Units, including those owned by GGP) in the Company's Operating Partnership into 42,350,000 shares of GGP common stock.

F-73

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 12 NONCONTROLLING INTERESTS (Continued)

        The Operating Partnership has also issued Convertible Preferred Units, which are convertible, with certain restrictions, at any time by the holder into Common Units of the Operating Partnership at the following rates (subject to adjustment):

	Number of Common Units for each Preferred Unit
Series B—JP Realty		3.000
Series D—Foothills Mall		1.508
Series E—Four Seasons Town Centre		1.298

NOTE 13 ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

        Components of accumulated other comprehensive (loss) income as of December 31, 2009 and 2008 are as follows:

	2009			2008
	(In thousands)
Net unrealized losses on financial instruments	$	(14,673	)	$	(27,903	)
Accrued pension adjustment		(1,704	)		(2,110	)
Foreign currency translation		16,166			(25,634	)
Unrealized losses on available-for-sale securities		(38	)		(481	)
	$	(249	)	$	(56,128	)

NOTE 14 COMMITMENTS AND CONTINGENCIES

        In the normal course of business, from time to time, we are involved in legal proceedings relating to the ownership and operations of our properties. In management's opinion, the liabilities, if any, that may ultimately result from such legal actions are not expected to have a material adverse effect on our consolidated financial position, results of operations or liquidity.

        We lease land or buildings at certain properties from third parties. The leases generally provide us with a right of first refusal in the event of a proposed sale of the property by the landlord. Rental payments are expensed as incurred and have, to the extent applicable, been straight-lined over the term of the lease. Contractual rental expense, including participation rent, was $19.0 million in 2009, $19.3 million in 2008 and $19.5 million in 2007, while the same rent expense excluding amortization of above and below-market ground leases and straight-line rents, as presented in our consolidated financial statements, was $12.7 million in 2009, $12.4 million in 2008 and $12.0 million in 2007.

        We have, in the past, periodically entered into contingent agreements for the acquisition of properties. Each acquisition subject to such agreements was subject to satisfactory completion of due diligence and, in the case of property acquired under development, completion of the project. In conjunction with the acquisition of The Grand Canal Shoppes in 2004, we entered into an agreement (the "Phase II Agreement") to acquire the multi-level retail space that is part of The Shoppes at The Palazzo in Las Vegas, Nevada (The "Phase II Acquisition") which is connected to the existing Venetian

F-74

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 14 COMMITMENTS AND CONTINGENCIES (Continued)

and the Sands Expo and Convention Center facilities and The Grand Canal Shoppes. The project opened on January 18, 2008. The acquisition closed on February 29, 2008 for an initial purchase price payment of $290.8 million, which was primarily funded with $250.0 million of new variable-rate short-term debt collateralized by the property and for Federal income tax purposes was used as replacement property in a like-kind exchange. The Phase II Agreement provides for additional purchase price payments based on net operating income, as defined, of the Phase II retail space. Such additional payments, if any, are to be made during the 30 months after closing with the final payment being subject to re-adjustment 48 months after closing. Although we have currently estimated that no additional amounts will be paid pursuant to the Phase II Agreement, the total final purchase price of the Phase II Acquisition could be different than the current estimate.

        See Note 7 for our obligations related to uncertain tax positions for disclosure of additional contingencies.

        The following table summarizes the contractual maturities of our long-term commitments. Both long-term debt and ground leases include the related purchase accounting Fair Value adjustments:

	2010		2011		2012		2013		2014		Subsequent / Other		Total
							(In thousands)
Long-term debt-principal(1)	$	1,114,925	$	191,366	$	1,006,706	$	481,140	$	1,626,788	$	2,879,847	$	7,300,772
Retained debt-principal		119,694		775		37,742		—		—		—		158,211
Ground lease payments		14,547		14,365		14,336		14,381		14,444		543,378		615,451
Uncertainty in income taxes, including interest		—		—		—		—		—		129,413		129,413
Total	$	1,249,166	$	206,506	$	1,058,784	$	495,521	$	1,641,232	$	3,552,638	$	8,203,847

(1)

Excludes $17.16 billion of long-term debt-principal that is subject to compromise and the effect of any principal accelerations due to cross defaults or other revisions to our debt agreements due to conditions described in Note 1.

Contingent Stock Agreement

        In conjunction with GGP's acquisition of The Rouse Company ("TRC") in November 2004, GGP assumed TRC's obligations under a CSA. TRC entered into the CSA in 1996 when it acquired The Hughes Corporation ("Hughes"). This acquisition included various assets, including Summerlin (the "CSA Assets"), a development in GGP's Master Planned Communities segment. The CSA is an unsecured obligation of GGP and therefore, GGP's obligations to the former Hughes owners or their successors (the "Beneficiaries") under the CSA are, and will be, subject to treatment in accordance with applicable requirements of the bankruptcy law and any plan of reorganization that may be confirmed by the Bankruptcy Court.

F-75

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 14 COMMITMENTS AND CONTINGENCIES (Continued)

        Under the terms of the CSA, GGP was required through August 2009 to issue shares of its common stock semi-annually (February and August) to the Beneficiaries with the number of shares to be issued in any period based on cash flows from the development and/or sale of the CSA Assets and GGP's stock price. The Beneficiaries' share of earnings from the CSA Assets is accounted for as a land sales operations expense. During 2009, GGP was not obligated to deliver any shares of its common stock under the CSA as the net development and sales cash flows were negative for the applicable periods. During 2008, 356,661 shares of GGP common stock (from treasury shares) were delivered to the Beneficiaries pursuant to the CSA.

        Under the terms of the CSA, GGP is also required to make a final distribution to the Beneficiaries in 2010, following a final valuation of the remaining CSA Assets as of December 31, 2009. The CSA sets forth a methodology for establishing this final valuation and requires the payment, if any, be made in shares of GGP common stock. GGP would account for any final distribution to the Beneficiaries as an additional GGP investment in the CSA Assets (that is, contingent consideration). However, since GGP's plan of reorganization is still being developed, treatment of the CSA and the final distribution amount, if any, to the Beneficiaries cannot currently be determined and, therefore, no liability for any final distribution amount is probable or estimable at December 31, 2009. The carrying amount of the CSA Assets as reflected in the Company's Consolidated Financial Statements is not the final valuation, and should not be relied upon for purposes of determining, or estimating, the final distribution amount, if any, to the Beneficiaries.

NOTE 15 RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

        On June 12, 2009, the FASB issued new generally accepted accounting guidance that amends the consolidation guidance applicable to variable interest entities. The amendments to the consolidation guidance affect all entities and enterprises currently within the scope of the previous guidance and are effective to the Company on January 1, 2010. Although the amendments significantly affected the overall consolidation analysis under previously issued guidance, we do not expect changes to our consolidated financial statements for this new guidance.

        In June 2009, the FASB issued new generally accepted accounting guidance related to the accounting standards codification and the hierarchy of generally accepted accounting principles. The codification's content will carry the same level of authority, effectively superseding previous related guidance. The GAAP hierarchy has been modified to include only two levels of GAAP: authoritative and nonauthoritative. This new guidance was effective for us in the third quarter of 2009. The effect of the implementation of this new guidance on our consolidated financial statements resulted in the conversion of previously referenced specific accounting guidance to a "plain English" reference.

NOTE 16 SEGMENTS

        We have two business segments which offer different products and services. Our segments are managed separately because each requires different operating strategies or management expertise. We do not distinguish or group our consolidated operations on a geographic basis. Further, all material

F-76

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 16 SEGMENTS (Continued)

operations are within the United States and no customer or tenant comprises more than 10% of consolidated revenues. Our reportable segments are as follows:

•

Retail and Other—includes the operation, development and management of retail and other rental property, primarily shopping centers

•

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, and our one residential condominium project located in Natick (Boston), Massachusetts

        The operating measure used to assess operating results for the business segments is Real Estate Property Net Operating Income ("NOI") which represents the operating revenues of the properties less property operating expenses, exclusive of depreciation and amortization and, with respect to our retail and other segment, provisions for impairment. Management believes that NOI provides useful information about a property's operating performance.

        The accounting policies of the segments are the same as those described in Note 2, except that we report Unconsolidated Real Estate Affiliates using the proportionate share method rather than the equity method. Under the proportionate share method, our share of the revenues and expenses of the Unconsolidated Properties are combined with the revenues and expenses of the Consolidated Properties. Under the equity method, our share of the net revenues and expenses of the Unconsolidated Properties are reported as a single line item, Equity in income of Unconsolidated Real Estate Affiliates, in our Consolidated Statements of Income and Comprehensive Income. This difference affects only the reported revenues and operating expenses of the segments and has no effect on our reported net earnings. In addition, other revenue includes the NOI of discontinued operations and is reduced by the NOI attributable to our noncontrolling interest partners in consolidated joint ventures.

        The total cash expenditures for additions to long-lived assets for the Master Planned Communities segment was $78.2 million for the year ended December 31, 2009, $166.1 million for the year ended December 31, 2008 and $243.3 million for the year ended December 31, 2007. Similarly, cash expenditures for long-lived assets for the Retail and Other segment was $252.8 million for the year ended December 31, 2009, $1.19 billion for the year ended December 31, 2008 and $1.50 billion for the year ended December 31, 2007. Such amounts for the Master Planned Communities segment and the Retail and Other segment are included in the amounts listed as Land/residential development and acquisitions expenditures and Acquisition/development of real estate and property additions/improvements, respectively, in our Consolidated Statements of Cash Flows.

        The total amount of goodwill, as presented on our Consolidated Balance Sheets, is included in our Retail and Other segment.

F-77

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 16 SEGMENTS (Continued)

        Segment operating results are as follows:

				Year Ended December 31, 2009
				Consolidated Properties			Unconsolidated Properties			Segment Basis
				(In thousands)
Retail and Other
Property revenues:
	Minimum rents			$	1,992,046		$	388,997		$	2,381,043
	Tenant recoveries				883,595			158,160			1,041,755
	Overage rents				52,306			7,779			60,085
	Other, including noncontrolling interests				85,815			56,320			142,135
		Total property revenues			3,013,762			611,256			3,625,018
Property operating expenses:
	Real estate taxes				280,895			47,661			328,556
	Repairs and maintenance				232,624			37,275			269,899
	Marketing				34,363			7,225			41,588
	Other property operating costs				416,332			115,659			531,991
	Provision for doubtful accounts				30,331			6,131			36,462
		Total property operating expenses			994,545			213,951			1,208,496
			Retail and other net operating income		2,019,217			397,305			2,416,522
Master Planned Communities
Land sales					45,997			37,993			83,990
Land sales operations					(50,807	)		(33,684	)		(84,491	)
	Master Planned Communities net operating (loss) income before provision for impairment				(4,810	)		4,309			(501	)
Provision for impairment					(108,691	)		—			(108,691	)
	Master Planned Communities net operating (loss) income				(113,501	)		4,309			(109,192	)
		Real estate property net operating income		$	1,905,716		$	401,614		$	2,307,330

F-78

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 16 SEGMENTS (Continued)

				Year Ended December 31, 2008
				Consolidated Properties			Unconsolidated Properties			Segment Basis
				(In thousands)
Retail and Other
Property revenues:
	Minimum rents			$	2,085,758		$	383,003		$	2,468,761
	Tenant recoveries				927,332			159,499			1,086,831
	Overage rents				72,882			9,461			82,343
	Other, including noncontrolling interests				112,160			62,081			174,241
		Total property revenues			3,198,132			614,044			3,812,176
Property operating expenses:
	Real estate taxes				274,317			44,934			319,251
	Repairs and maintenance				234,987			36,800			271,787
	Marketing				43,426			8,501			51,927
	Other property operating costs				436,804			123,234			560,038
	Provision for doubtful accounts				17,873			3,442			21,315
		Total property operating expenses			1,007,407			216,911			1,224,318
			Retail and other net operating income		2,190,725			397,133			2,587,858
Master Planned Communities
Land sales					66,557			72,189			138,746
Land sales operations					(63,441	)		(46,311	)		(109,752	)
	Master Planned Communities net operating income before provision for impairment				3,116			25,878			28,994
Provision for impairment					(40,346	)		—			(40,346	)
	Master Planned Communities net operating (loss) income				(37,230	)		25,878			(11,352	)
		Real estate property net operating income		$	2,153,495		$	423,011		$	2,576,506

F-79

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 16 SEGMENTS (Continued)

				Year Ended December 31, 2007
				Consolidated Properties			Unconsolidated Properties			Segment Basis
				(In thousands)
Retail and Other
Property revenues:
	Minimum rents			$	1,933,674		$	406,241		$	2,339,915
	Tenant recoveries				859,801			173,486			1,033,287
	Overage rents				89,016			12,213			101,229
	Other, including noncontrolling interests				115,910			82,884			198,794
		Total property revenues			2,998,401			674,824			3,673,225
Property operating expenses:
	Real estate taxes				246,484			50,478			296,962
	Repairs and maintenance				216,536			40,559			257,095
	Marketing				54,664			12,233			66,897
	Other property operating costs				418,295			150,149			568,444
	Provision for doubtful accounts				5,426			1,978			7,404
		Total property operating expenses			941,405			255,397			1,196,802
			Retail and other net operating income		2,056,996			419,427			2,476,423
Master Planned Communities
Land sales					145,649			85,017			230,666
Land sales operations					(116,708	)		(57,813	)		(174,521	)
	Master Planned Communities net operating income before provision for impairment				28,941			27,204			56,145
Provision for impairment					(127,600	)		—			(127,600	)
	Master Planned Communities net operating (loss) income				(98,659	)		27,204			(71,455	)
		Real estate property net operating income		$	1,958,337		$	446,631		$	2,404,968

F-80

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 16 SEGMENTS (Continued)

        The following reconciles NOI to GAAP-basis operating income and income from continuing operations:

		Years Ended December 31,
		2009			2008			2007
		(In thousands)
Real estate property net operating income:
	Segment basis	$	2,307,330		$	2,576,506		$	2,404,968
	Unconsolidated Properties		(401,614	)		(423,011	)		(446,631	)
	Consolidated Properties		1,905,716			2,153,495			1,958,337
Management and other fees			65,268			85,773			106,584
Property management and other costs			(176,876	)		(184,738	)		(198,610	)
General and administrative			(28,608	)		(39,245	)		(37,005	)
Strategic initiatives			(67,341	)		(18,727	)		—
Litgation recovery (provision)			—			57,145			(89,225	)
Provisions for impairment			(1,115,119	)		(76,265	)		(2,933	)
Depreciation and amortization			(755,161	)		(759,930	)		(670,454	)
Noncontrolling interest in NOI of Consolidated Properties and other			10,787			11,063			11,167
	Operating income		(161,334	)		1,228,571			1,077,861
Interest income			3,321			3,197			8,641
Interest expense			(1,311,283	)		(1,325,273	)		(1,191,466	)
Benefit from (provision for) income taxes			14,610			(23,461	)		294,160
Equity in income of Unconsolidated Real Estate Affiliates			4,635			80,594			158,401
Reorganization items			146,190			—			—
	(Loss) income from continuing operations	$	(1,303,861	)	$	(36,372	)	$	347,597

        The following reconciles segment revenues to GAAP-basis consolidated revenues:

	Years Ended December 31,
	2009			2008			2007
	(In thousands)
Segment basis total property revenues	$	3,625,018		$	3,812,176		$	3,673,225
Unconsolidated segment revenues		(611,256	)		(614,044	)		(674,824	)
Consolidated land sales		45,997			66,557			145,649
Management and other fees		65,268			85,773			106,584
Noncontrolling interest in NOI of Consolidated Properties and other		10,787			11,063			11,167
GAAP-basis consolidated total revenues	$	3,135,814		$	3,361,525		$	3,261,801

F-81

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 16 SEGMENTS (Continued)

        The assets by segment and the reconciliation of total segment assets to the total assets in the consolidated financial statements at December 31, 2009 and 2008 are summarized as follows:

	2009			2008
	(In thousands)
Retail and Other	$	28,166,899		$	29,931,570
Master Planned Communities		2,095,415			2,174,015
Total segment assets		30,262,314			32,105,585
Unconsolidated Properties		(4,609,763	)		(4,481,818	)
Corporate and other		2,497,223			1,933,563
Total assets	$	28,149,774		$	29,557,330

NOTE 17 QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

		2009
		First Quarter			Second Quarter			Third Quarter			Fourth Quarter
		(In thousands except for per share amounts)
Total revenues		$	788,640		$	792,095		$	760,961		$	794,118
Operating (loss) income(1)			(95,438	)		193,590			201,206			(460,692	)
Loss from continuing operations(1)			(404,145	)		(158,581	)		(117,454	)		(623,681	)
(Loss) income from discontinued operations			(55	)		—			29			(940	)
Net loss attibutable to common shareholders			(396,082	)		(158,402	)		(117,847	)		(612,358	)
Loss per share from continuing operations(2):
	Basic		(1.27	)		(0.51	)		(0.38	)		(1.96	)
	Diluted		(1.27	)		(0.51	)		(0.38	)		(1.96	)
Loss per share(2):
	Basic		(1.27	)		(0.51	)		(0.38	)		(1.96	)
	Diluted		(1.27	)		(0.51	)		(0.38	)		(1.96	)
Dividends declared per share			—			—			—			0.19
Weighted-average shares outstanding:
	Basic		310,868			312,337			312,363			312,382
	Diluted		310,868			312,337			312,363			312,382

F-82

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 17 QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Continued)

		2008
		First Quarter		Second Quarter		Third Quarter			Fourth Quarter
		(In thousands except for per share amounts)
Total revenues		$	830,322	$	815,618	$	814,701		$	900,884
Operating income(1)			318,280		304,447		257,671			348,173
Income (loss) from continuing operations(1)			7,581		872		(40,286	)		(4,539	)
Income (loss) from discontinued operations			—		37,060		18,023			(39	)
Net income (loss) attibutable to common shareholders			3,360		28,751		(20,859	)		(6,533	)
Earnings (loss) per share from continuing operations:
	Basic		0.01		—		(0.13	)		(0.02	)
	Diluted		0.01		—		(0.13	)		(0.02	)
Earnings (loss) per share:
	Basic		0.01		0.12		(0.08	)		(0.02	)
	Diluted(2)		0.01		0.12		(0.08	)		(0.02	)
Dividends declared per share			0.50		0.50		0.50			—
Weighted-average shares outstanding:
	Basic		244,765		267,369		267,945			268,569
	Diluted		244,918		267,369		267,945			268,569

(1)

Operating loss and loss from continuing operations in the fourth quarter of 2009 were primarily due to provisions for impairment (Note 2) and property level bankruptcy claims. Such losses were partially offset by gains on liabilities subject to compromise (Note 2).

(2)

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.

        As more fully described in Note 2, the Company, under applicable GAAP guidance, was deemed to incur compensation expense as a result of a series of loans made to two officers of the Company by an affiliate of certain Bucksbaum family trusts. The independent members of the Company's Board of Directors learned of these loans in October 2008 and the aggregate deemed compensation expense amount of approximately $15.4 million, before noncontrolling interest, was recorded as a general and administrative expense (a component of operating income) in the fourth quarter of 2008. This amount is a cumulative correction of an error as no expense amounts for these loans were recorded or reflected in the above schedules of unaudited quarterly financial information for the first, second or third quarters of 2008. Had the deemed compensation expense been recorded in the applicable periods, operating income would have declined by approximately $2.9 million, $59 thousand and $12.1 million, respectively, for the first, second and third quarters of 2008, respectively. For net income, which is presented net of noncontrolling interest, net income would have been lower by approximately $2.4 million, $50 thousand and $10.1 million for the first, second and third quarters of 2008, respectively. If this deemed expense had been recorded in the applicable quarters as just discussed rather than as a correction of an error in the fourth quarter of 2008, fourth quarter 2008 operating income would have increased by the full amount of the correction recorded ($15.4 million) and net income (presented net of noncontrolling interest) would have increased by $12.8 million. We have assessed the impacts to the previously reported quarters of 2008 (and the related year-to-date 2008 amounts), and the impact of the cumulative correction recorded in the fourth quarter of 2008, and concluded that all such impacts are immaterial. Accordingly, we have determined that no restatement of previously issued financial statements or information is necessary and, therefore, no such restatement is reflected in the above presentation of unaudited quarterly financial information for the deemed compensation expense correction recorded.

F-83

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of
General Growth Properties, Inc.
Chicago, Illinois

        We have audited the consolidated financial statements of General Growth Properties, Inc. (Debtor-in-Possession) and subsidiaries (the "Company") as of December 31, 2009 and 2008, and for each of the three years in the period ended December 31, 2009, and the Company's internal control over financial reporting as of December 31, 2009, and have issued our reports thereon dated March 1, 2010 (for which the report on the consolidated financial statements expresses an unqualified opinion and includes explanatory paragraphs regarding the Company's bankruptcy proceedings, the Company's ability to continue as a going concern and the Company's change in methods of accounting for noncontrolling interests and convertible debt instruments); such consolidated financial statements and reports are included elsewhere in this Form 10-K. Our audits also included the consolidated financial statement schedule of the Company listed in the Index to Consolidated Financial Statements and Consolidated Financial Statement Schedule on page F-1 of this Form 10-K. This consolidated financial statement schedule is the responsibility of the Company's management. Our responsibility is to express an opinion based on our audits. In our opinion, such consolidated financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

/s/ Deloitte & Touche LLP

Chicago, Illinois
March 1, 2010

F-84

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)
SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION
DECEMBER 31, 2009

								Costs Capitalized Subsequent to Acquisition(c)						Gross Amounts at Which Carried at Close of Period(d)											Life Upon Which Latest Income Statement is Computed
				Initial Cost(b)
Name of Center	Location	Encumbrances(a)		Land		Buildings and Improvements		Land			Buildings and Improvements			Land		Buildings and Improvements		Total		Accumulated Depreciation(e)		Date of Construction	Date Acquired
		(In thousands)
Retail and Other:
Ala Moana Center	Honolulu, HI	$	1,500,000	$	336,229	$	473,771	$	—		$	287,812		$	336,229	$	761,583	$	1,097,812	$	195,434			1999		(e	)
Alameda Plaza	Pocatello, ID		—		740		2,060		—			13			740		2,073		2,813		387			2002		(e	)
Anaheim Crossing	Anaheim, CA		—		—		1,986		—			29			—		2,015		2,015		375			2002		(e	)
Animas Valley Mall	Farmington, NM		35,054		6,464		35,902		—			8,645			6,464		44,547		51,011		9,011			2002		(e	)
Apache Mall	Rochester, MN		—		8,110		72,993		—			26,639			8,110		99,632		107,742		29,428			1998		(e	)
Arizona Center	Phoenix, AZ		—		2,314		132,158		—			2,326			2,314		134,484		136,798		28,994			2004		(e	)
Augusta Mall	Augusta, GA		159,000		787		162,272		1,217			82,949			2,004		245,221		247,225		30,377			2004		(e	)
Austin Bluffs Plaza	Colorado Springs, CO		2,288		1,080		3,007		—			234			1,080		3,241		4,321		610			2002		(e	)
Bailey Hills Village	Eugene, OR		—		290		806		—			36			290		842		1,132		156			2002		(e	)
Baybrook Mall	Friendswood, TX		168,570		13,300		117,163		6,853			28,291			20,153		145,454		165,607		38,830			1999		(e	)
Bayshore Mall	Eureka, CA		31,005		3,005		27,399		—			37,512			3,005		64,911		67,916		33,854	1986-1987				(e	)
Bayside Marketplace	Miami, FL		84,103		—		177,801		—			3,616			—		181,417		181,417		39,816			2004		(e	)
Beachwood Place	Beachwood, OH		240,164		18,500		319,684		—			27,113			18,500		346,797		365,297		39,988			2004		(e	)
Bellis Fair	Bellingham, WA		61,586		7,616		47,040		(131	)		15,946			7,485		62,986		70,471		32,856	1987-1988				(e	)
Birchwood Mall	Port Huron, MI		44,308		1,769		34,575		1,274			19,871			3,043		54,446		57,489		30,763	1989-1990				(e	)
Boise Plaza	Boise, ID		—		374		1,042		—			112			374		1,154		1,528		210			2002		(e	)
Boise Towne Plaza	Boise, ID		10,921		3,988		11,101		—			146			3,988		11,247		15,235		2,116			2002		(e	)
Boise Towne Square	Boise, ID		69,689		23,449		131,001		1,088			36,423			24,537		167,424		191,961		31,202			2002		(e	)
Burlington Town Center	Burlington, VT		26,304		1,637		32,798		2,597			20,396			4,234		53,194		57,428		7,976			2004		(e	)
Cache Valley Mall	Logan, UT		28,043		3,875		22,047		(415	)		472			3,460		22,519		25,979		—			2002		(e	)
Cache Valley Marketplace	Logan, UT		—		1,500		1,583		1,310			3,526			2,810		5,109		7,919		—			2002		(e	)
Capital Mall	Jefferson City, MO		11,000		4,200		14,201		(287	)		10,871			3,913		25,072		28,985		12,648			1993		(e	)
Century Plaza	Birmingham, AL		—		3,164		28,514		—			(14,290	)		3,164		14,224		17,388		6			1997		(e	)
Chapel Hills Mall	Colorado Springs, CO		98,500		4,300		34,017		—			72,043			4,300		106,060		110,360		40,624			1993		(e	)
Chico Mall	Chico, CA		55,524		16,958		45,628		(1,187	)		(6,966	)		15,771		38,662		54,433		—			2003		(e	)
Coastland Center	Naples, FL		117,006		11,450		103,050		—			50,040			11,450		153,090		164,540		38,703			1998		(e	)
Collin Creek	Plano, TX		68,940		26,250		122,991		—			2,529			26,250		125,520		151,770		16,772			2004		(e	)
Colony Square Mall	Zanesville, OH		25,239		1,000		24,500		597			25,302			1,597		49,802		51,399		27,678			1986		(e	)
Columbia Mall	Columbia, MO		90,000		5,383		19,663		—			32,259			5,383		51,922		57,305		27,795	1984-1985				(e	)
Coral Ridge Mall	Coralville, IA		88,250		3,364		64,218		49			22,952			3,413		87,170		90,583		31,860	1998-1999				(e	)
Coronado Center	Albuquerque, NM		168,798		33,072		148,799		—			3,482			33,072		152,281		185,353		28,996			2003		(e	)
Cottonwood Mall	Salt Lake City, UT		—		7,613		42,987		(4,713	)		(42,987	)		2,900		—		2,900		—			2002		(e	)
Cottonwood Square	Salt Lake City, UT		—		1,558		4,339		—			218			1,558		4,557		6,115		847			2002		(e	)
Country Hills Plaza	Ogden, UT		13,526		3,620		9,080		(88	)		(1,111	)		3,532		7,969		11,501		—			2002		(e	)
Crossroads Center	St. Cloud, MN		78,436		10,813		72,203		2,393			40,769			13,206		112,972		126,178		25,981			2000		(e	)
Cumberland Mall	Atlanta, GA		103,862		15,199		136,787		10,042			74,528			25,241		211,315		236,556		50,567			1998		(e	)
Division Crossing	Portland, OR		5,273		1,773		4,935		—			422			1,773		5,357		7,130		1,007			2002		(e	)
Eagle Ridge Mall	Lake Wales, FL		47,578		7,620		49,561		(3,280	)		(27,366	)		4,340		22,195		26,535		—	1995-1996				(e	)
Eastridge Mall	Casper, WY		31,992		6,171		34,384		(79	)		11,590			6,092		45,974		52,066		8,090			2002		(e	)
Eastridge Mall	San Jose, CA		170,000		36,724		178,018		—			23,540			36,724		201,558		238,282		29,010			2006		(e	)
Eden Prairie Center	Eden Prairie, MN		79,828		465		19,024		28			123,355			493		142,379		142,872		49,162			1997		(e	)

F-85

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)
SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
DECEMBER 31, 2009

								Costs Capitalized Subsequent to Acquisition(c)						Gross Amounts at Which Carried at Close of Period(d)											Life Upon Which Latest Income Statement is Computed
				Initial Cost(b)
Name of Center	Location	Encumbrances(a)		Land		Buildings and Improvements		Land			Buildings and Improvements			Land		Buildings and Improvements		Total		Accumulated Depreciation(e)		Date of Construction	Date Acquired
		(In thousands)
Fallbrook Center	West Hills, CA		85,000		6,117		10,077		10			101,497			6,127		111,574		117,701		50,995			1984		(e	)
Faneuil Hall Marketplace	Boston, MD		87,235		—		122,098		—			2,033			—		124,131		124,131		20,769			2004		(e	)
Fashion Place	Murray, UT		136,850		21,604		206,484		706			46,542			22,310		253,026		275,336		32,922			2004		(e	)
Fashion Show	Las Vegas, NV		645,918		523,650		602,288		—			(7,683	)		523,650		594,605		1,118,255		94,137			2004		(e	)
Foothills Mall	Fort Collins, CO		50,758		8,031		96,642		(3,576	)		(59,906	)		4,455		36,736		41,191		—			2003		(e	)
Fort Union	Midvale, UT		2,753		—		3,842		—			27			—		3,869		3,869		736			2002		(e	)
Four Seasons Town Centre	Greensboro, NC		100,429		27,231		141,978		—			6,810			27,231		148,788		176,019		25,280			2004		(e	)
Fox River Mall	Appleton, WI		195,000		2,701		18,291		2,086			66,854			4,787		85,145		89,932		41,709	1983-1984				(e	)
Fremont Plaza	Las Vegas, NV		—		—		3,956		—			330			—		4,286		4,286		774			2002		(e	)
Gateway Crossing Shopping Center	Bountiful, UT		15,234		4,104		11,422		—			991			4,104		12,413		16,517		2,407			2002		(e	)
Gateway Mall	Springfield, OR		40,597		8,728		34,707		(96	)		38,375			8,632		73,082		81,714		35,420	1989-1990				(e	)
Gateway Overlook	Columbia, MD		55,000		—		31,679		—			2,850			—		34,529		34,529		2,321	2007				(e	)
Glenbrook Square	Fort Wayne, IN		153,429		30,414		195,896		50			13,375			30,464		209,271		239,735		34,569			2003		(e	)
Governor's Square	Tallahassee, FL		74,368		—		121,482		—			5,941			—		127,423		127,423		21,978			2004		(e	)
Grand Teton Mall	Idaho Falls, ID		48,795		6,973		44,030		—			11,397			6,973		55,427		62,400		10,189			2002		(e	)
Grand Teton Plaza	Idaho Falls, ID		—		2,349		7,336		—			132			2,349		7,468		9,817		989			2004		(e	)
Grand Traverse Mall	Traverse City, MI		85,302		3,534		20,776		—			30,413			3,534		51,189		54,723		28,311	1990-1991				(e	)
Greenwood Mall	Bowling Green, KY		45,579		3,200		40,202		187			37,664			3,387		77,866		81,253		34,517			1993		(e	)
Halsey Crossing	Gresham, OR		2,581		—		4,363		—			126			—		4,489		4,489		864			2002		(e	)
Harborplace	Baltimore, MD		49,016		—		54,308		—			11,728			—		66,036		66,036		12,133			2004		(e	)
Hulen Mall	Fort Worth, TX		113,021		8,910		153,894		—			(4,392	)		8,910		149,502		158,412		17,736			2004		(e	)
Jordan Creek Town Center	West Des Moines, IA		185,950		18,142		166,143		—			11,816			18,142		177,959		196,101		39,536	2004				(e	)
Knollwood Mall	St. Louis Park, MN		39,942		—		9,748		7,026			42,058			7,026		51,806		58,832		26,280			1978		(e	)
Lakeside Mall	Sterling Heights, MI		161,380		35,860		369,639		—			5,620			35,860		375,259		411,119		55,813			2004		(e	)
Lakeview Square	Battle Creek, MI		41,334		3,579		32,210		(274	)		(2,733	)		3,305		29,477		32,782		—			1996		(e	)
Landmark Mall	Alexandria, VA		—		28,396		67,235		(10,038	)		(38,434	)		18,358		28,801		47,159		—			2003		(e	)
Lansing Mall	Lansing, MI		24,144		6,978		62,800		4,518			44,239			11,496		107,039		118,535		38,275			1996		(e	)
Lincolnshire Commons	Lincolnshire, IL		28,000		10,784		9,441		—			20,994			10,784		30,435		41,219		4,892	2006				(e	)
Lockport Mall	Lockport, NY		—		800		10,000		—			(3,523	)		800		6,477		7,277		1,054			1986		(e	)
Lynnhaven Mall	Virginia Beach, VA		210,408		33,698		229,433		—			6,126			33,698		235,559		269,257		41,760			2003		(e	)
Mall At Sierra Vista	Sierra Vista, AZ		23,556		3,652		20,450		—			4,128			3,652		24,578		28,230		5,006			2002		(e	)
Mall of Louisiana	Baton Rouge, LA		235,174		28,649		275,102		(4,058	)		78,430			24,591		353,532		378,123		47,583			2004		(e	)
Mall of The Bluffs	Council Bluffs, IA		35,951		1,860		24,016		35			24,636			1,895		48,652		50,547		27,669	1985-1986				(e	)
Mall St. Matthews	Louisville, KY		144,565		—		176,583		33,108			1,877			33,108		178,460		211,568		21,484			2004		(e	)
Mall St. Vincent	Shreveport, LA		32,578		2,640		23,760		—			10,264			2,640		34,024		36,664		12,412			1998		(e	)
Market Place Shopping Center	Champaign, IL		106,000		7,000		63,972		—			56,631			7,000		120,603		127,603		42,423			1997		(e	)
Mayfair Mall	Wauwatosa, WI		274,932		14,707		224,847		—			41,831			14,707		266,678		281,385		75,210			2003		(e	)
Meadows Mall	Las Vegas, NV		101,463		24,634		104,088		(3,259	)		21,489			21,375		125,577		146,952		33,617			2003		(e	)
Mondawmin Mall	Baltimore, MD		84,689		11,850		57,871		(2,182	)		41,824			9,668		99,695		109,363		7,592			2004		(e	)
North Plains Mall	Clovis, NM		10,656		2,722		15,048		(385	)		(2,670	)		2,337		12,378		14,715		—			2002		(e	)
North Star Mall	San Antonio, TX		232,570		29,230		467,961		3,791			44,593			33,021		512,554		545,575		67,828			2004		(e	)
North Temple Shops(g)	Salt Lake City, UT		—		168		468		(168	)		(468	)		—		—		—		—			2002		(e	)
NorthTown Mall	Spokane, WA		114,976		22,407		125,033		—			5,593			22,407		130,626		153,033		25,631			2002		(e	)
Northgate Mall	Chattanooga, TN		27,179		2,525		43,944		(908	)		(19,565	)		1,617		24,379		25,996		—			2003		(e	)
Northridge Fashion Center	Northridge, CA		127,168		16,618		149,563		248			40,840			16,866		190,403		207,269		58,604			1998		(e	)

F-86

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)
SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
DECEMBER 31, 2009

								Costs Capitalized Subsequent to Acquisition(c)						Gross Amounts at Which Carried at Close of Period(d)											Life Upon Which Latest Income Statement is Computed
				Initial Cost(b)
Name of Center	Location	Encumbrances(a)		Land		Buildings and Improvements		Land			Buildings and Improvements			Land		Buildings and Improvements		Total		Accumulated Depreciation(e)		Date of Construction	Date Acquired
		(In thousands)
Oak View Mall	Omaha, NE		83,292		12,056		113,042		—			6,174			12,056		119,216		131,272		29,852			2003		(e	)
Oakwood Center	Gretna, LA		95,000		2,830		137,574		1,532			(7,342	)		4,362		130,232		134,594		14,427			2004		(e	)
Oakwood Mall	Eau Claire, WI		75,772		3,267		18,281		—			29,964			3,267		48,245		51,512		28,743	1985-1986				(e	)
Oglethorpe Mall	Savannah, GA		141,375		16,036		92,978		—			9,614			16,036		102,592		118,628		30,208			2003		(e	)
Orem Plaza Center Street	Orem, UT		2,460		1,069		2,974		—			2,389			1,069		5,363		6,432		751			2002		(e	)
Orem Plaza State Street	Orem, UT		1,523		592		1,649		—			191			592		1,840		2,432		336			2002		(e	)
Oviedo Marketplace	Orlando, FL		51,819		24,017		23,958		(4,052	)		(10,072	)		19,965		13,886		33,851		—			2004		(e	)
Owings Mills Mall	Owing Mills, MD		56,043		27,534		173,005		(13,386	)		(127,323	)		14,148		45,682		59,830		2,294			2004		(e	)
Oxmoor Center	Louisville, KY		60,789		—		131,434		—			10,464			—		141,898		141,898		18,897			2004		(e	)
Paramus Park	Paramus, NJ		102,855		47,660		182,124		—			7,065			47,660		189,189		236,849		30,369			2004		(e	)
Park City Center	Lancaster, PA		149,234		8,465		177,191		(276	)		39,572			8,189		216,763		224,952		56,339			2003		(e	)
Park Place	Tucson, AZ		176,443		4,996		44,993		(280	)		116,377			4,716		161,370		166,086		49,674			1996		(e	)
Park West	Peoria, AZ		—		16,526		77,548		1			124			16,527		77,672		94,199		5,301	2008				(e	)
Peachtree Mall	Columbus, GA		79,573		22,052		67,679		—			6,053			22,052		73,732		95,784		14,998			2003		(e	)
Pecanland Mall	Monroe, LA		51,860		10,101		68,329		297			17,716			10,398		86,045		96,443		17,892			2002		(e	)
Piedmont Mall	Danville, VA		33,911		2,000		38,000		(390	)		(13,952	)		1,610		24,048		25,658		—			1995		(e	)
Pierre Bossier Mall	Bossier City, LA		40,382		4,367		35,353		—			10,525			4,367		45,878		50,245		14,608			1998		(e	)
Pine Ridge Mall	Pocatello, ID		15,400		4,905		27,349		—			6,816			4,905		34,165		39,070		7,345			2002		(e	)
Pioneer Place	Portland, OR		157,116		10,805		209,965		—			3,696			10,805		213,661		224,466		33,867			2004		(e	)
Plaza 800	Sparks, NV		—		—		5,430		—			724			—		6,154		6,154		974			2002		(e	)
Plaza 9400	Sandy, UT		—		—		9,114		—			(6,932	)		—		2,182		2,182		6			2002		(e	)
Prince Kuhio Plaza	Hilo, HI		37,826		9		42,710		—			1,940			9		44,650		44,659		12,601			2002		(e	)
Providence Place	Providence, RI		411,494		—		502,809		—			11,224			—		514,033		514,033		80,398			2004		(e	)
Provo Towne Centre	Provo, UT		56,879		13,486		74,587		—			1,761			13,486		76,348		89,834		15,711			2002		(e	)
Red Cliffs Mall	St. George, UT		21,882		1,880		26,561		—			14,028			1,880		40,589		42,469		6,934			2002		(e	)
Red Cliffs Plaza	St. George, UT		—		—		2,366		—			467			—		2,833		2,833		560			2002		(e	)
Regency Square Mall	Jacksonville, FL		77,152		16,498		148,478		1,386			22,149			17,884		170,627		188,511		49,484			1998		(e	)
Ridgedale Center	Minnetonka, MN		153,754		10,710		272,607		—			18,222			10,710		290,829		301,539		42,481			2004		(e	)
Rio West Mall	Gallup, NM		—		—		19,500		—			7,479			—		26,979		26,979		15,239			1986		(e	)
River Falls Mall	Clarksville, IN		—		3,178		54,610		3,703			(41,302	)		6,881		13,308		20,189		2,817	1989-1990				(e	)
River Hills Mall	Mankato, MN		80,000		3,714		29,014		561			44,371			4,275		73,385		77,660		31,435	1990-1991				(e	)
River Pointe Plaza	West Jordan, UT		3,811		1,302		3,623		—			549			1,302		4,172		5,474		751			2002		(e	)
Riverlands Shopping Center	LaPlace, LA		—		500		4,500		601			6,195			1,101		10,695		11,796		2,547			1998		(e	)
Riverside Plaza	Provo, UT		5,454		2,475		6,890		—			2,330			2,475		9,220		11,695		1,873			2002		(e	)
Rivertown Crossings	Grandville, MI		119,588		10,973		97,142		(3,747	)		50,543			7,226		147,685		154,911		49,820	1998-1999				(e	)
Riverwalk Marketplace	New Orleans, LA		—		—		94,513		—			(2,397	)		—		92,116		92,116		11,324			2004		(e	)
Rogue Valley Mall	Medford, OR		27,440		21,913		36,392		(95	)		5,694			21,818		42,086		63,904		9,424			2003		(e	)
Saint Louis Galleria	St. Louis, MO		219,770		36,774		184,645		(545	)		38,249			36,229		222,894		259,123		35,796			2003		(e	)
Salem Center	Salem, OR		41,728		6,966		38,976		—			2,150			6,966		41,126		48,092		8,188			2002		(e	)
Sikes Senter	Wichita Falls, TX		61,381		12,759		50,567		—			2,030			12,759		52,597		65,356		10,161			2003		(e	)
Silver Lake Mall	Coeur d'Alene, ID		18,228		4,448		24,801		(1,727	)		(11,782	)		2,721		13,019		15,740		—			2002		(e	)
Sooner Mall	Norman, OK		60,000		2,700		24,300		(119	)		21,040			2,581		45,340		47,921		16,716			1996		(e	)
South Street Seaport	New York, NY		—		—		10,872		—			(5,082	)		—		5,790		5,790		2,416			2004		(e	)
Southlake Mall	Morrow, GA		100,000		6,700		60,407		(85	)		14,668			6,615		75,075		81,690		25,463			1997		(e	)
Southland Center	Taylor, MI		103,185		7,690		99,376		—			9,789			7,690		109,165		116,855		21,519			2004		(e	)

F-87

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)
SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
DECEMBER 31, 2009

									Costs Capitalized Subsequent to Acquisition(c)						Gross Amounts at Which Carried at Close of Period(d)											Life Upon Which Latest Income Statement is Computed
					Initial Cost(b)
Name of Center		Location	Encumbrances(a)		Land		Buildings and Improvements		Land			Buildings and Improvements			Land		Buildings and Improvements		Total		Accumulated Depreciation(e)		Date of Construction	Date Acquired
			(In thousands)
Southland Mall		Hayward, CA		81,477		13,921		75,126		200			17,089			14,121		92,215		106,336		16,928			2002		(e	)
Southshore Mall		Aberdeen, WA		—		650		15,350		—			(10,735	)		650		4,615		5,265		280			1986		(e	)
Southwest Plaza		Littleton, CO		96,187		9,000		103,984		602			41,133			9,602		145,117		154,719		41,555			1998		(e	)
Spokane Valley Mall		Spokane, WA		53,880		11,455		67,046		—			2,657			11,455		69,703		81,158		13,453			2002		(e	)
Spokane Valley Plaza		Spokane, WA		—		3,558		10,150		—			79			3,558		10,229		13,787		1,903			2002		(e	)
Spring Hill Mall		West Dundee, IL		68,088		12,400		111,644		(6,809	)		(69,066	)		5,591		42,578		48,169		—			1998		(e	)
Staten Island Mall		Staten Island, NY		282,842		222,710		339,102		—			14,571			222,710		353,673		576,383		55,648			2004		(e	)
Stonestown Galleria		San Francisco, CA		273,000		67,000		246,272		—			9,938			67,000		256,210		323,210		34,724			1998		(e	)
The Boulevard Mall		Las Vegas, NV		107,630		16,490		148,413		(1,135	)		13,670			15,355		162,083		177,438		47,317			1998		(e	)
The Crossroads		Portage, MI		40,154		6,800		61,200		—			23,348			6,800		84,548		91,348		23,154			1999		(e	)
The Gallery At Harborplace		Baltimore, MD		101,244		17,912		174,410		—			394			17,912		174,804		192,716		20,717			2004		(e	)
The Grand Canal Shoppes		Las Vegas, NV		371,475		—		766,232		—			15,139			—		781,371		781,371		114,835			2004		(e	)
The Maine Mall		South Portland, ME		195,596		41,374		238,457		(79	)		15,200			41,295		253,657		294,952		39,850			2003		(e	)
The Mall In Columbia		Columbia, MD		400,000		34,650		522,363		—			20,497			34,650		542,860		577,510		81,026			2004		(e	)
The Pines		Pine Bluff, AR		—		1,489		17,627		(242	)		17,295			1,247		34,922		36,169		21,568	1985-1986				(e	)
The Shoppes at the Palazzo		Las Vegas, Nevada		249,623		—		470,167		—			(229,647	)		—		240,520		240,520		—			2008		(e	)
The Shops At Fallen Timbers		Maumee, OH		42,401		3,677		77,825		1,417			39,209			5,094		117,034		122,128		9,139	2007				(e	)
The Shops At La Cantera		San Antonio, TX		168,949		10,966		205,222		3,504			110,155			14,470		315,377		329,847		30,757	2005				(e	)
The Streets At SoutHPoint		Durham, NC		237,825		16,070		406,266		—			8,592			16,070		414,858		430,928		61,166			2004		(e	)
The Village Of Cross Keys		Baltimore, MD		—		18,070		57,285		(11,859	)		(54,690	)		6,211		2,595		8,806		226			2004		(e	)
Three Rivers Mall		Kelso, WA		17,400		4,312		23,019		—			3,266			4,312		26,285		30,597		5,063			2002		(e	)
Town East Mall		Mesquite, TX		92,848		7,711		149,258		—			24,418			7,711		173,676		181,387		38,485			2004		(e	)
Tucson Mall		Tucson, AZ		112,867		—		181,424		6,406			33,196			6,406		214,620		221,026		44,391			2001		(e	)
Twin Falls Crossing		Twin Falls, ID		—		275		769		—			—			275		769		1,044		144			2002		(e	)
University Crossing		Orem, UT		11,373		3,420		9,526		—			1,240			3,420		10,766		14,186		1,953			2002		(e	)
Valley Hills Mall		Hickory, NC		49,737		3,444		31,025		2,212			45,127			5,656		76,152		81,808		26,006			1997		(e	)
Valley Plaza Mall		Bakersfield, CA		83,906		12,685		114,166		—			23,701			12,685		137,867		150,552		39,952			1998		(e	)
Visalia Mall		Visalia, CA		36,936		11,052		58,172		(15	)		6,927			11,037		65,099		76,136		12,855			2002		(e	)
Ward Centers		Honolulu, HI		203,284		164,007		89,321		5,550			120,136			169,557		209,457		379,014		27,361			2002		(e	)
West Valley Mall		Tracy, CA		56,436		9,295		47,789		1,591			36,304			10,886		84,093		94,979		32,241	1995				(e	)
Westlake Center		Seattle, WA		70,784		12,971		117,003		4,669			(4,298	)		17,640		112,705		130,345		15,089			2004		(e	)
Westwood Mall		Jackson, MI		24,117		2,658		23,924		913			5,991			3,571		29,915		33,486		11,801			1996		(e	)
White Marsh Mall		Baltimore, MD		187,000		24,760		239,688		—			16,019			24,760		255,707		280,467		41,624			2004		(e	)
White Mountain Mall		Rock Springs, WY		10,656		1,363		7,611		—			7,983			1,363		15,594		16,957		5,429			2002		(e	)
Willowbrook		Wayne, NJ		168,760		28,810		444,762		30			5,451			28,840		450,213		479,053		56,548			2004		(e	)
Woodbridge Center		Woodbridge, NJ		207,934		50,737		420,703		—			8,424			50,737		429,127		479,864		64,904			2004		(e	)
Woodlands Village		Flagstaff, AZ		6,968		2,689		7,484		—			278			2,689		7,762		10,451		1,430			2002		(e	)
Yellowstone Square		Idaho Falls, ID		—		1,057		2,943		—			147			1,057		3,090		4,147		592			2002		(e	)
	Total GGPI			15,030,063		2,833,560		17,251,138		34,423			2,379,283			2,867,983		19,630,421		22,498,404		3,894,207

F-88

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)
SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
DECEMBER 31, 2009

										Costs Capitalized Subsequent to Acquisition(c)						Gross Amounts at Which Carried at Close of Period(d)											Life Upon Which Latest Income Statement is Computed
					Initial Cost(b)
Name of Center		Location	Encumbrances(a)		Land			Buildings and Improvements		Land			Buildings and Improvements			Land		Buildings and Improvements		Total		Accumulated Depreciation(e)		Date of Construction	Date Acquired
			(In thousands)
Bay City Mall		Bay City, MI		23,751		2,867			31,529		(87	)		(8,030	)		2,780		23,499		26,279		—			2007		(e	)
Brass Mill Center		Waterbury, CT		99,510		19,455			151,989		—			2,037			19,455		154,026		173,481		26,316			2007		(e	)
Brass Mill Commons		Waterbury, CT		21,282		4,993			27,170		(1	)		—			4,992		27,170		32,162		5,068			2007		(e	)
Chula Vista Center		Chula Vista, CA		—		15,085			81,697		—			2,585			15,085		84,282		99,367		13,521			2007		(e	)
Columbiana Centre		Columbia, SC		105,441		14,731			125,830		—			464			14,731		126,294		141,025		19,363			2007		(e	)
Deerbrook Mall		Humble, TX		73,964		17,015			137,480		—			4,780			17,015		142,260		159,275		21,524			2007		(e	)
Lakeland Square		Lakeland, FL		53,675		14,492			82,428		—			326			14,492		82,754		97,246		14,420			2007		(e	)
Moreno Valley Mall		Moreno Valley, CA		86,814		10,045			77,088		(360	)		(10,323	)		9,685		66,765		76,450		—			2007		(e	)
Newgate Mall		Ogden, UT		37,911		7,686			59,688		—			2,724			7,686		62,412		70,098		6,353			2007		(e	)
Newpark Mall		Newark, CA		68,987		15,278			136,773		—			450			15,278		137,223		152,501		27,120			2007		(e	)
North Point Mall		Alpharetta, GA		215,283		32,733			258,996		—			7,483			32,733		266,479		299,212		40,908			2007		(e	)
Pembroke Lakes Mall		Pembroke Pines, FL		126,924		41,980			230,513		—			4,563			41,980		235,076		277,056		30,694			2007		(e	)
Steeplegate Mall		Concord, NH		77,889		7,258			72,616		—			(513	)		7,258		72,103		79,361		13,876			2007		(e	)
The Parks at Arlington		Arlington, TX		174,517		27,101			279,987		1			8,416			27,102		288,403		315,505		42,653			2007		(e	)
The Shoppes at Buckland		Manchester, CT		161,319		24,319			196,291		—			(14	)		24,319		196,277		220,596		28,166			2007		(e	)
The Woodlands Mall		The Woodlands, TX		229,929		17,776			294,229		1			8,251			17,777		302,480		320,257		42,640			2007		(e	)
Tysons Galleria		McLean, VA		254,555		22,874			220,782		—			2,173			22,874		222,955		245,829		28,239			2007		(e	)
Vista Ridge Mall		Lewisville, TX		61,624		14,614			130,520		(1	)		294			14,613		130,814		145,427		37,383			2007		(e	)
Washington Park Mall		Bartlesville, OK		10,296		2,072			15,431		1			(1,105	)		2,073		14,326		16,399		3,351			2007		(e	)
West Oaks Mall		Ocoee, FL		68,301		18,677			91,899		6,599			(732	)		25,276		91,167		116,443		16,218			2007		(e	)
Purchase accounting related adjustments		Chicago, IL		—		(70	)		5,400		70			(5,400	)		—		—		—		—
	Total Homart I(f)			1,951,972		330,981			2,708,336		6,223			18,429			337,204		2,726,765		3,063,969		417,813
Other, including corporate and developments in progress				7,381,714		291,114			492,836		(24,251	)		253,004			266,863		745,840		1,012,703		181,853
Total Retail and Other				24,363,749		3,455,655			20,452,310		16,395			2,650,716			3,472,050		23,103,026		26,575,076		4,493,873
Master Planned Communities
Bridgeland		Houston, TX		29,812		257,222			—		148,550			1,123			405,772		1,123		406,895		412			2004		(e	)
Columbia		Howard County, MD		—		321,118			—		(146,428	)		57			174,690		57		174,747		5			2004		(e	)
Fairwood		Prince George's County, MD		—		136,434			—		(134,921	)		19			1,513		19		1,532		1			2004		(e	)
Summerlin		Summerlin, NV		52,199		990,179			—		125,164			31			1,115,343		31		1,115,374		5			2004		(e	)
Natick-Nouvelle at Natick (Dev)		Natick, MA		—		—			—		74,364			4			74,364		4		74,368		1
Other				10,257		—			—		2,103			7			2,103		7		2,110		—
Total Master Planned Communities				92,268		1,704,953			—		68,832			1,241			1,773,785		1,241		1,775,026		424
Total			$	24,456,017	$	5,160,608		$	20,452,310	$	85,227		$	2,651,957		$	5,245,835	$	23,104,267	$	28,350,102	$	4,494,297

F-89

GENERAL GROWTH PROPERTIES, INC.
(Debtor-in-Possession)
NOTES TO SCHEDULE III

(a)

See description of mortgages, 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)

For retail and other properties, costs capitalized subsequent to acquisitions is net of cost of disposals or other property write-downs. For Master Planned Communities, costs capitalized subsequent to acquisitions are net of land sales.

(d)

The aggregate cost of land, buildings and improvements for federal income tax purposes is approximately $17.6 billion.

(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)

Initial cost for individual properties acquired in the Homart I acquisition represents historical cost at December 31, 2007 including purchase accounting adjustments recorded during 2008.

(g)

The property was sold on February 4, 2009.

Reconciliation of Real Estate
	2009			2008			2007
	(In thousands)
Balance at beginning of year	$	29,863,649		$	28,591,756		$	24,661,601
Acquisitions		—			503,096			3,152,350
Change in Master Planned Communities land		(70,156	)		204,569			(16,466	)
Additions		263,418			641,757			866,353
Impairments		(1,079,473	)		—			—
Dispositions and write-offs		(627,336	)		(77,529	)		(72,082	)
Balance at end of year	$	28,350,102		$	29,863,649		$	28,591,756
Reconciliation of Accumulated Depreciation
	2009			2008			2007
	(In thousands)
Balance at beginning of year	$	4,240,222		$	3,605,199		$	2,766,871
Depreciation expense		707,183			712,552			635,873
Acquisitions		—			—			274,537	(h)
Dispositions and write-offs		(453,108	)		(77,529	)		(72,082	)
Balance at end of year	$	4,494,297		$	4,240,222		$	3,605,199

(h)

Accumulated depreciation of our original 50% interest in the properties acquired in the Homart I acquisition at July 6, 2007 (date of acquisition). Such properties were unconsolidated prior to the date of acquisition.

F-90

EXHIBIT INDEX

3.1	Restated Certificate of Incorporation of General Growth Properties, Inc. filed with the Delaware Secretary of State on February 10, 2006 (previously filed as Exhibit 3.1 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
3.2	Second Amended and Restated Bylaws of General Growth Properties, Inc. (previously filed as Exhibit 3(ii).1 to the Current Report on Form 8-K dated November 18, 2008 which was filed with the SEC on November 21, 2008).
3.3	Certificate of Designations, Preferences and Rights of Increasing Rate Cumulative Preferred Stock, Series I filed with the Delaware Secretary of State on February 26, 2007 (previously filed as Exhibit 3.3 to the Annual Report on Form 10-K for the year ended December 31, 2006, which was previously filed with the SEC on March 1, 2007).
4.1	Form of Common Stock Certificate (previously filed as Exhibit 4.1 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
4.2	Rights Agreement dated July 27, 1993, between General Growth Properties, Inc. and certain other parties named therein (previously filed as Exhibit 4.2 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
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 which was filed with the SEC on March 12, 2004).
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 (previously filed as Exhibit 4.4 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
4.5	Redemption Rights Agreement dated December 6, 1996, among the Operating Partnership, Forbes/Cohen Properties, Lakeview Square Associates, and Jackson Properties (previously filed as Exhibit 4.5 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
4.6	Redemption Rights Agreement dated June 19, 1997, among the Operating Partnership, General Growth Properties, Inc., and CA Southlake Investors, Ltd. (previously filed as Exhibit 4.6 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
4.7	Redemption Rights Agreement dated October 23, 1997, among General Growth Properties, Inc., the Operating Partnership and Peter Leibowits (previously filed as Exhibit 4.7 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
4.8	Redemption Rights Agreement dated April 2, 1998, among the Operating Partnership, General Growth Properties, Inc. and Southwest Properties Venture (previously filed as Exhibit 4.8 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).

S-1

4.9	Redemption Rights Agreement dated July 21, 1998, among the Operating Partnership, General Growth Properties, Inc., Nashland Associates, and HRE Altamonte, Inc. (previously filed as Exhibit 4.9 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
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 (previously filed as Exhibit 4.10 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
4.11	Redemption Rights Agreement (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 4.11 to the Annual Report on Form 10-K for the year ended December 31, 2007 which was filed with the SEC on February 27, 2008) .
4.12	Redemption Rights Agreement (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 4.12 to the Annual Report on Form 10-K for the year ended December 31, 2007 which was filed with the SEC on February 27, 2008).
4.13	Redemption Rights Agreement (Common Units) dated November 27, 2002, by and among the Operating Partnership, General Growth Properties, Inc. and JSG, LLC (previously filed as Exhibit 4.13 to the Annual Report on Form 10-K for the year ended December 31, 2008 which was filed with the SEC on February 27, 2009).
4.14	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).
4.15	Redemption Rights Agreement dated March 5, 2004, by and among the Operating Partnership, General Growth Properties, Inc. and Koury Corporation (previously filed as Exhibit 4.15 to the Annual Report on Form 10-K for the year ended December 31, 2007 which was filed with the SEC on February 27, 2008).
4.16	Registration Rights Agreement dated April 15, 1993, between General Growth Properties, Inc., Martin Bucksbaum, Matthew Bucksbaum and the other parties named therein (previously filed as Exhibit 4.16 to the Annual Report on Form 10-K for the year ended December 31, 2007 which was filed with the SEC on February 27, 2008).
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).
4.18	Registration Rights Agreement dated April 17, 2002, between General Growth Properties, Inc. and GSEP 2002 Realty Corp (previously filed as Exhibit 4.18 to the Annual Report on Form 10-K for the year ended December 31, 2007 which was filed with the SEC on February 27, 2008).

S-2

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) (previously filed as Exhibit 4.19 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
4.20	First Amendment to Rights Agreement dated as of November 10, 1999, between General Growth Properties, Inc. and Norwest Bank Minnesota, N.A. (previously filed as Exhibit 4.20 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
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).
4.22	Third Amendment to Rights Agreement dated as of November 18, 2008, between General Growth Properties, Inc. and BNY Mellon Shareholder Services (previously filed as Exhibit 4.1 to the Current Report on Form 8-K dated November 18, 2008 which was filed with the SEC on November 21, 2008).
4.23	Letter Agreement concerning Rights Agreement dated November 10, 1999, between the Operating Partnership and NYSCRF (previously filed as Exhibit 4.22 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
4.24	The Rouse Company and The Bank of New York Mellon Corporation (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).
4.25	The Rouse Company LP, TRC Co-Issuer, Inc. and The Bank of New York Mellon Corporation (Trustee) Indenture dated May 5, 2006 (previously filed as Exhibit 4.24 to the Annual Report on Form 10-K for the year ended December 31, 2006 which was filed with the SEC on March 1, 2007).
4.26	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).
4.27	Indenture, dated as of April 16, 2007, between the Operating Partnership and The Bank of New York Mellon Corporation (previously filed as Exhibit 4.1 to the Current Report on Form 8-K dated April 16, 2007 which was filed with the SEC on April 19, 2007).
10.1	Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership dated April 1, 1998 (the "LP Agreement") (previously filed as Exhibit 10.1 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).

S-3

10.2	First Amendment to the LP Agreement dated as of June 10, 1998 (previously filed as Exhibit 10.2 to the Annual Report on Form 10-K for the year ended December 31, 2008 which was filed with the SEC on February 27, 2009).
10.3	Second Amendment to the LP Agreement dated as of June 29, 1998 (previously filed as Exhibit 10.3 to the Annual Report on Form 10-K for the year ended December 31, 2008 which was filed with the SEC on February 27, 2009).
10.4	Third Amendment to the LP Agreement dated as of February 15, 2002 (previously filed as Exhibit 10.4 to the Annual Report on Form 10-K for the year ended December 31, 2007 which was filed with the SEC on February 27, 2008).
10.5	Amendment to the LP Agreement dated as of April 24, 2002 (previously filed as Exhibit 10.5 to the Annual Report on Form 10-K for the year ended December 31, 2007 which was filed with the SEC on February 27, 2008).
10.6	Fourth Amendment to the LP Agreement dated as of July 10, 2002 (previously filed as Exhibit 10.6 to the Annual Report on Form 10-K for the year ended December 31, 2007 which was filed with the SEC on February 27, 2008).
10.7	Amendment to the LP Agreement dated as of November 27, 2002 (previously filed as Exhibit 10.7 to the Annual Report on Form 10-K for the year ended December 31, 2008 which was filed with the SEC on February 27, 2009).
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).
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).
10.10	Amendment to the LP Agreement dated March 5, 2004 (previously filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2004 which was filed with the SEC on May 7, 2004).
10.11	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).
10.12	Amendment to the LP Agreement dated September 30, 2006 (previously filed as Exhibit 10.12 to the Annual Report on Form 10-K for the year ended December 31, 2006, which was filed with the SEC on March 1, 2007).
10.13	Twelfth Amendment to the LP Agreement dated December 31, 2006 (previously filed as Exhibit 10.13 to the Annual Report on Form 10-K for the year ended December 31, 2006, which was filed with the SEC on March 1, 2007).
10.14	Second Amended and Restated Operating Agreement of GGPLP L.L.C. dated April 17, 2002 (the "LLC Agreement") (previously filed as Exhibit 10.14 to the Annual Report on Form 10-K for the year ended December 31, 2007 which was filed with the SEC on February 27, 2008).
10.15	First Amendment to the LLC Agreement dated April 23, 2002 (previously filed as Exhibit 10.15 to the Annual Report on Form 10-K for the year ended December 31, 2007 which was filed with the SEC on February 27, 2008).

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10.16		Second Amendment to the LLC Agreement dated May 13, 2002 (previously filed as Exhibit 10.16 to the Annual Report on Form 10-K for the year ended December 31, 2007 which was filed with the SEC on February 27, 2008).
10.17		Third Amendment to the LLC Agreement dated October 30, 2002 (previously filed as Exhibit 10.17 to the Annual Report on Form 10-K for the year ended December 31, 2008 which was filed with the SEC on February 27, 2009).
10.18		Fourth Amendment to the LLC Agreement dated April 7, 2003 (previously filed as Exhibit 10.18 to the Annual Report on Form 10-K for the year ended December 31, 2008 which was filed with the SEC on February 27, 2009).
10.19		Fifth Amendment to the LLC Agreement dated April 11, 2003 (previously filed as Exhibit 10.19 to the Annual Report on Form 10-K for the year ended December 31, 2008 which was filed with the SEC on February 27, 2009).
10.20		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).
10.21		Operating Agreement dated November 10, 1999, between the Operating Partnership, NYSCRF, and GGP/Homart II L.L.C. (previously filed as Exhibit 10.20 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
10.22		Amendment to the Operating Agreement of GGP/Homart II L.L.C. dated November 22, 2002 (previously filed as Exhibit 10.21 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
10.23		Letter Amendment to the Operating Agreement of GGP/Homart II L.L.C. dated January 31, 2003 (previously filed as Exhibit 10.22 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
10.24		Second Amendment to the Operating Agreement of GGP/Homart II L.L.C. dated January 31, 2003 (previously filed as Exhibit 10.23 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
10.25		Third Amendment to the Operating Agreement of GGP/Homart II L.L.C. dated February 8, 2008 (previously filed as Exhibit 10.25 to the Annual Report on Form 10-K for the year ended December 31, 2007 which was filed with the SEC on February 27, 2008).
10.26		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. (previously filed as Exhibit 10.24 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
10.27		First Amendment to Amended and Restated Operating Agreement of GGP-TRS L.L.C. dated December 19, 2002 (previously filed as Exhibit 10.25 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
10.28		Second Amendment to Amended and Restated Operating Agreement of GGP-TRS L.L.C. dated November 1, 2005 (previously filed as Exhibit 10.26 to the Annual Report on Form 10-K for the year ended December 31, 2005 which was filed with the SEC on March 31, 2006).
10.29	*	Summary of Non-Employee Director Compensation Program (filed herewith).

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10.30		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 10.30 to the Annual Report on Form 10-K for the year ended December 31, 2007 which was filed with the SEC on February 27, 2008).
10.31		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).
10.32		Indemnity Agreement dated as of February 2006 by the Company and The Rouse Company, LP. (previously filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2006 which was filed with the SEC on May 10, 2006).
10.33	*	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).
10.34	*	Amendment dated November 8, 2006 and effective January 1, 2007 to General Growth Properties, Inc. 1998 Incentive Stock Plan (previously filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2006 which was filed with the SEC on November 8, 2006).
10.35	*	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).
10.36	*	General Growth Properties, Inc. Second Amended and Restated 2003 Incentive Stock Plan, effective December 18, 2008 (previously filed as Exhibit 10.36 to the Annual Report on Form 10-K for the year ended December 31, 2008 which was filed with the SEC on February 27, 2009).
10.37	*	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).
10.38	*	Form of Employee Restricted Stock Agreement pursuant to the 2003 Incentive Stock Plan (previously filed as Exhibit 10.2 to the Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006 which was filed with the SEC on August 9, 2006).
10.39	*	Form of Non-Employee Director Restricted Stock Agreement pursuant to the 2003 Incentive Stock Plan (previously filed as Exhibit 10.3 to the Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006 which was filed with the SEC on August 9, 2006).
10.40	*	Form of Restricted Stock Agreement pursuant to the General Growth Properties, Inc. 2003 Incentive Stock Plan, as amended (previously filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2008 which was filed with the SEC on May 8, 2008).
10.41	*	Employment Agreement dated as of November 2, 2008 by and among General Growth Properties, Inc., GGP Limited Partnership and Adam S. Metz (previously filed as Exhibit 10.1 to the Current Report on Form 8-K dated November 2, 2008 which was filed with the SEC on November 4, 2008).
10.42	*	Employment Agreement dated as of November 2, 2008 by and among General Growth Properties, Inc., GGP Limited Partnership and Thomas H. Nolan, Jr. (previously filed as Exhibit 10.2 to the Current Report on Form 8-K dated November 2, 2008 which was filed with the SEC on November 4, 2008).

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10.43	*	Amendment to Employment Agreement, dated as of March 6, 2009 by and among the Company, GGP Limited Partnership and Adam S. Metz (previously filed as Exhibit 10.1 to the Current Report on Form 8-K dated March 6, 2009 which was filed with the SEC on March 10, 2009).
10.44	*	Amendment to Employment Agreement, dated as of March 6, 2009 by and among the Company, GGP Limited Partnership and Thomas H. Nolan, Jr. (previously filed as Exhibit 10.1 to the Current Report on Form 8-K dated March 6, 2009 which was filed with the SEC on March 10, 2009).
10.45	*	Non-Qualified Stock Option Agreement dated as of November 3, 2008 by and between General Growth Properties, Inc. and Adam S. Metz (previously filed as Exhibit 10.3 to the Current Report on Form 8-K dated November 2, 2008 which was filed with the SEC on November 4, 2008).
10.46	*	Non-Qualified Option Agreement dated as of November 3, 2008 by and between General Growth Properties, Inc. and Thomas H. Nolan, Jr. (previously filed as Exhibit 10.4 to the Current Report on Form 8-K dated November 2, 2008 which was filed with the SEC on November 4, 2008).
10.47	*	General Growth Properties, Inc. Key Employee Incentive Plan dated October 2, 2009 and effective October 15, 2009 (filed herewith).
10.48		Loan Agreement dated as of July 11, 2008, among the borrowers named therein; the lenders from time to time party thereto; Eurohypo, as Administrative Agent; Wachovia Capital Markets LLC, Eurohypo and ING Real Estate Finance (USA) LLC ("ING"), as Joint Lead Arrangers and Book Managers; the Documentation Agents, as defined therein; and Wachovia Bank, National Association and ING, as Co-Syndication Agents (previously filed as Exhibit 10.1 to the Current Report on Form 8-K dated July 11, 2008 which was filed with the SEC on July 18, 2008).
10.49		Senior Secured Debtor in Possession Credit, Security and Guaranty Agreement dated May 15, 2009 among General Growth Properties, Inc., as co-borrower, GGP Limited Partnership, as co-borrower, certain subsidiaries of the co-borrowers, as guarantors, UBS AG, Stamford Branch, as agent, and the lenders party thereto (previously filed as Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009 which was filed with the SEC on August 10, 2009).
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).
99.1		Financial Statements of TRCLP, a wholly owned subsidiary of GGPLP (filed herewith).

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101 The following financial information from General Growth Properties, Inc's. Quarterly Report on Form 10-K for the year ended December 31, 2009, filed with the SEC on March 1, 2010, formatted in XBRL (Extensible Business Reporting Language): (1) Consolidated Balance Sheets, (2) Consolidated Statement of Income and Comprehensive Income, (3) Consolidated Statements of Equity, (4) Conso1idated Statements of Cash Flows and (5) Notes to Consolidated Financial Statements, tagged as blocks of text. Pursuant to Rule 406T of Regulation S-T, this information is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and is not otherwise subject to liability under these sections.

(*)

A compensatory plan or arrangement required to be filed.

        Pursuant to Item 601(b)(4)(iii) of Regulation S-K, the registrant has not filed debt instruments relating to long-term debt that is not registered and for which the total amount of securities authorized thereunder does not exceed 10% of total assets of the registrant and its subsidiaries on a consolidated basis as of December 31, 2009. The registrant agrees to furnish a copy of such agreements to the Commission upon request.

S-8

EX-10.29

Exhibit 10.29

SUMMARY OF NON-EMPLOYEE DIRECTOR COMPENSATION PROGRAM

1.Effective January 1, 2009, each non-employee director (“Non-Employee Director”) of General Growth Properties, Inc. (the “Company”) shall be paid an annual cash retainer of $50,000.

2.Effective January 1, 2009, the chairperson of each of the Audit Committee, Compensation Committee and Nominating & Governance Committee shall be paid an annual cash retainer of $25,000, $15,000 and $10,000, respectively.

3.Effective January 1, 2009, each Non-Employee Director shall be paid $1,500 cash for each Board meeting attended in person; $1,500 cash for each committee meeting attended in person; $1,500 cash for each Audit Committee meeting attended telephonically; $1,000 cash for each Board meeting attended telephonically; and $1,000 cash for each committee meeting, other than an Audit Committee meeting, attended telephonically.

4.Commencing in 2009 and pursuant to the Company’s 2003 Incentive Stock Plan (the “2003 Plan”), an annual restricted stock award of 10,000 shares (the “Annual RSU Award”) shall be awarded to each Non-Employee Director. If the Annual RSU Award has a value of less than $90,000, as such value is determined for financial statement purposes in accordance with FAS 123(R), then, the difference between such value and $90,000 shall be paid to the Non-Employee Director in cash.

5.Effective December 20, 2008, prorated for 2008, the non-executive chairperson of the Board shall be paid an annual cash retainer of $225,000, in lieu of all other Non-Employee Director cash and equity compensation. Furthermore, he and his immediate family shall be entitled to receive health benefits under the health benefit plans provided to employees of the Company or its subsidiaries as such plans exist for the benefit of all employees from time to time, except that such covered individuals shall not be required to make any payments for participation.

6.Effective September 3, 2009, the Lead Director of the Company shall bepaid an annual cash retainer of $20,000.

EX-10.47

Exhibit 10.47

GENERAL GROWTH PROPERTIES, INC.

KEY EMPLOYEE INCENTIVE PLAN

ARTICLE 1.          Establishment and Purpose

1.1          Establishment.  General Growth Properties, Inc., (the “Company”) hereby adopts the General Growth Properties, Inc. Key Employee Incentive Plan (the “Plan”), effective as of October 2, 2009 (the “Effective Date”), subject to Bankruptcy Court approval.

1.2          Purpose.  The purpose of the Plan is to provide incentive compensation to eligible key employees of the Company, and its Subsidiaries and Affiliates, upon the achievement of certain goals deemed by the Company to be critical in maximizing the value of the Company and its assets.  This Plan is designed to induce such key employees to increase their contribution to the Company, with a focus on maximizing stakeholder recovery, while timely completing a Plan of Reorganization.  The efforts required of such key employees to achieve these goals will extend well beyond their ordinary course responsibilities, and, their entitlement to payments under the Plan will occur only upon successful achievement of such goals.

ARTICLE 2.          Definitions

2.1          “Administrator” means the Committee, or any other entity or person designated by the Committee to administer the Plan pursuant to Section 3.2 hereof.

2.2          “Affiliate” means GGP Limited Partnership and any other corporation or other entity controlled by the Company and designated by the Committee as such.

2.3          “Allowed Claim Amount” means the amount of claims asserted against Top Tier Debtors as reflected in (a) a proof of claim filed prior to the November 12, 2009 bar date for claims or such other date as determined by the Bankruptcy Court and to which no objection has been filed as of the Emergence Date, (b) the Top-Tier Debtors’ schedules of assets and liabilities to the extent that (i) such claims were not listed as contingent, superseded or unliquidated, (ii) such claims were not superseded by a filed proof of claim or (iii) such claims were not objected to by the Debtors or any other party in interest, and (c) any order entered by the Bankruptcy Court resolving objections to claims or otherwise determining the allowed amount of any claim.

2.4          “Award” means any POR Recovery Value, Market-Based Recovery Value or Emergence Incentive award granted hereunder.

2.5          “Bankruptcy Code” means title 11 of the United States Code, as amended from time to time.

2.6          “Bankruptcy Court” means the United States Bankruptcy Court for the Southern District of New York, the Honorable Allan L. Gropper presiding.

2.7          “Base Salary” means the greater of a Participant’s annual rate of base salary or wages (excluding bonuses, employer contributions to or benefits under an employee benefit plan, fringe benefits, and other such forms of compensation) in effect as of (a) the Confirmation Date, (b) the Emergence Date, or (c) the date or dates payment under the Plan is made or the last day of employment if a Participant’s employment is terminated and such Participant is entitled to a Recovery Award pursuant to Section 6.1 hereof.  Base Salary shall include any elective

contributions that are paid through a reduction in a Participant’s basic salary and which are not includible in the Participant’s gross income under Sections 125 or 402(e)(3) of the Code.

2.8          “Beneficiary” means the beneficiary or beneficiaries designated in accordance with Article 7 hereof to receive the amount, if any, payable under the Plan upon the death of a Participant.

2.9          “Board” means the Board of Directors of the Company.

2.10        “Cause” means (a) the conviction of the Participant for committing a felony under Federal law or the law of the state in which such action occurred, (b) dishonesty in the course of fulfilling the Participant’s employment duties, or (c) willful and deliberate failure on the part of the Participant to perform his or her employment duties in any material respect, except that in the case of a Participant who has an employment agreement with the Company, “Cause” shall be determined in accordance with the definition in the employment agreement, if any.

2.11        “Code” means the United States Internal Revenue Code of 1986, as amended from time to time, and any successor thereto.

2.12        “Committee” means the Compensation Committee of the Board.

2.13        “Confirmation Date” means the date the Top-Tier Debtors’ Plan of Reorganization is approved by the Bankruptcy Court, or if a single Plan of Reorganization is not approved that includes each of the Top-Tier Debtors, then the date upon which all four of the Top-Tier Debtors has an approved Plan of Reorganization.

2.14        “Confirmation Order” means the order or orders entered by the Bankruptcy Court confirming the Plan or Plans of Reorganization for each of the Top-Tier Debtors, including any findings of fact and conclusions of law in support of such order(s).

2.15        “Creditors’ Committee” means the statutory committee of unsecured creditors appointed by the United States Trustee in the Debtors jointly administered chapter 11 cases or, to the extent applicable, any successor committee or designee.

2.16        “Debtors” means the Company and its Subsidiaries and Affiliates who filed voluntary petitions for relief under the Bankruptcy Code and whose cases are jointly administered with that of the Company.

2.17        “Disability” means complete and permanent inability by reason of illness or accident to perform the duties of the occupation for which a Participant was employed by an Employer when such disability commenced.  All determinations as to the date and extent of disability of a Participant shall be made by the Committee or its designee, in its sole discretion, upon the basis of such evidence, including independent medical reports and data, as the Committee or its designee deems necessary and desirable, and all such determinations of the Committee or its designee shall be final.

2.18        “Emergence Date” means the first date upon which any distributions have commenced under the Top-Tier Debtors’ Plan or Plans of Reorganization.

2.19        “Emergence Incentive” is an amount to be determined in accordance with Section 5.7 hereof.

2

2.20        “Employer” means the Company and any Subsidiary or Affiliate whose employees are Participants in the Plan.

2.21        “Estimated Claim Amount” means the amount of disputed or unliquidated claims asserted against Top Tier Debtors as estimated for distribution purposes pursuant to an order of the Bankruptcy Court or, if necessary, as estimated by the Company solely for purposes of calculating the Awards, provided, however, that the Company shall provide notice to the Creditors’ Committee of the proposed estimates determined solely for purposes of calculating the Awards, along with supporting documentation.  If the Company and the Creditors’ Committee reach an agreement within fifteen (15) business days after the date of notice of such estimations, then such agreed estimated amounts shall be adopted for purposes of the Plan without the necessity of further order of the Bankruptcy Court.  If, however, the Company and the Creditors’ Committee are unable to reach an agreement within such fifteen (15) day period, then the Company shall seek Bankruptcy Court approval of the proposed estimations.

2.22        “Executive Officers” means those officers of the Company appointed to the Company’s executive committee.

2.23        “Final Performance Improvement Plan” means a written performance plan, which if not followed could result in termination of employment issued at any time after the Effective Date.

2.24        “KEIP Order” means the order issued by the Bankruptcy Court approving and authorizing this Plan.

2.25        “Market-Based Recovery Value” means the percentage computed by dividing (a) the sum of the following forms of consideration issued or distributed to Parent Level Debt holders and third party Top Tier Debtors’ equity holders pursuant to the Debtors’ Plan or Plans of Reorganization:  (i) the Volume-Weighted Average Price of the Publicly Traded Equity Securities (including any other equity-linked securities such as warrants, but, to the extent applicable, excluding options and restricted stock issued pursuant to any management incentive compensation plan adopted in connection with the Plan or Plans of Reorganization of the applicable Plan Debtor and granted before the conclusion of the Trading Period), plus (ii) the aggregate Public Market Value of all Publicly Traded Debt Securities, plus (iii) the aggregate Non-Public Market Value of all Non-Publicly Traded Debt Securities, plus (iv) the value of the Non-Publicly Traded Securities as determined based on the Third Party Valuation, plus (v) to the extent applicable, the value ascribed to any trust certificates issued by the Plan Debtors based on the value reflected in the Confirmation Order or Orders or, if not expressly provided for therein, as reflected in the applicable Plan or Plans of Reorganization or disclosure statement, plus (vi) the amount of cash and cash equivalents, by (b) the aggregate Allowed Claim Amount and Estimated Claim Amount, as of the Emergence Date, of the Parent Level Debt.

2.26        “Non-Public Market Value” means, to the extent available, (a) the weighted average trading price of all assignments that occurred during the Trading Period, as received from the agent or agents, for any given Non-Publicly Traded Debt Securities, where in aggregate at least 3% of the face value of any given Non-Publicly Traded Debt Securities were assigned during the Trading Period, or if (a) is not available, then (b) the average of all price quotes for any given Non Publicly Traded Debt Securities available from Loan Pricing Corporation (LPC) and Markit Loans (LoanX) during the Trading Period.

3

2.27        “Non-Publicly Traded Debt Securities” means any debt securities, bank debt, syndicated loan or other similar instruments that are not either Publicly Traded Debt Securities or Publicly Traded Equity Securities and for which either (a) trading prices are available from the agent or agents for such debt securities for the assignment in aggregate of at least 3% of the face value of such securities during the Trading Period, or (b) price quotes are available from Loan Pricing Corporation (LPC) or Markit Loans (LoanX) during the Trading Period.

2.28        “Non-Publicly Traded Securities” means any securities other than Publicly Traded Equity Securities, Non-Publicly Traded Debt Securities or Publicly Traded Debt Securities.

2.29        “Parent Level Debt” means the following types of claims against the Top Tier Debtors: (a) the revolving credit facility and term loans pursuant to that Second Amended and Restated Credit Agreement dated as of February 24, 2006 under which Eurohypo AG, New York Branch is the administrative agent, (b) The Rouse Company Limited Partnership 3.625% Bonds, 8.00% Bonds, 7.20% Bonds, 6.75% Bonds, and 5.38% Bonds, (c) GGP Limited Partnership 3.98% Exchangeable Senior Notes, (d) Junior Subordinated Indenture, dated February 24, 2006, pursuant to which GGP Capital Trust I holds $206.2 million of junior subordinated notes issued by GGP LP, and (e) any other unsecured claims (excluding intercompany claims).

2.30        “Participant” shall have the meaning set forth in Article 4 hereof.

2.31        “Plan Debtors” means the Debtors who have, on or before the Emergence Date commenced distributions pursuant to a confirmed Plan of Reorganization.

2.32        “Plan of Reorganization” means a plan under chapter 11 of the Bankruptcy Code specifying the treatment of claims and interests and providing for the reorganization or liquidation of the applicable Debtor.

2.33        “POR Recovery Value” means the percentage computed by dividing (a) the aggregate value of all consideration distributed or to be distributed to Parent Level Debt holders and third party Top Tier Debtors’ equity holders pursuant to the Debtors’ Plan or Plans of Reorganization, by (b) the aggregate Allowed Claim Amount and Estimated Claim Amount, as of the Emergence Date, of the Parent Level Debt.

2.34        “Public Market Value” means the average trading price of all price quotes, as reported on TRACE (as reported on Bloomberg) and/or Factset, for any given Publicly Traded Debt Securities during the Trading Period.

2.35        “Publicly Traded Debt Securities” means any debt securities for which trades or buy/sell prices are reported on TRACE (as reported on Bloomberg) or Factset, which has both a publicly quoted price and an average daily trading volume.

2.36        “Publicly Traded Equity Securities” means any equity, preferred equity, convertible securities or other equity-linked securities for which the Volume-Weighted Average Price can be determined.

2.37        “Recovery Award Percentage” means the percentage reflected in the second column on Schedule A hereto (rounded to the nearest one-hundredth of one percent).

4

2.38        “Recovery Award(s)” means an Award that is earned under this Plan based on POR Recovery Value and Market-Based Recovery Value.

2.39        “Recovery Percentage” shall be the percentage computed based on the POR Recovery Value or Market-Based Recovery Value, as applicable, and reflected in the first column on Schedule A hereto (rounded to the nearest one-hundredth of one percent).

2.40        “Subsidiary” means any corporation, partnership or other entity of which the Company or any Subsidiary owns, directly or indirectly, a majority of the voting power of the voting equity securities or a majority of the equity interests.

2.41        “Target Incentive Award” means the percentage of a Participant’s Base Salary, as determined by the Administrator, that such Participant would receive pursuant to this Plan upon the achievement of target POR Recovery Value and target Market-Based Recovery Value.  Target Incentive Awards may range between 30% and 225% of Base Salary, subject to adjustment by the Administrator, provided, that, no adjustment may increase the aggregate amount available to all Participants.

2.42        “Third Party Valuation” means (a) a report valuing the Non-Publicly Traded Securities during the Trading Period, (b) provided to the Company, in writing, no later than five (5) business days following the conclusion of the Trading Period, and (c) prepared by an independent third party selected by agreement between the Company and the Creditors’ Committee within sixty (60) days following the Emergence Date; provided, however, that if the Company and the Creditors’ Committee are unable to agree on such independent third party, then they shall each designate an independent third party within seventy (70) days following the Emergence Date and the value to be used for purposes of the Third Party Valuation shall be the average of the values reflected in these reports.

2.43        “Top-Tier Debtors” means the Company, GGP Limited Partnership, GGPLP L.L.C., The Rouse Company Limited Partnership, and their successors or assigns.

2.44        “Trading Period” means the ten trading days immediately prior to and the ten trading days immediately following the 90th day after the Emergence Date (including the 90th day if it is a trading day), provided, that, if (a) no Publicly Traded Equity Securities, Publicly Traded Debt Securities, or Non-Publicly Traded Debt Securities are issued or distributed pursuant to the Top-Tier Debtors’ Plan or Plans of Reorganization, but only Non-Publicly Traded Securities are issued or distributed, or (b) no securities (Publicly Traded Equity Securities, Publicly Traded Debt Securities, Non-Publicly Traded Debt Securities, or Non-Publicly Traded Securities) are issued or distributed pursuant to the Top-Tier Debtors’ Plan or Plans of Reorganization, then the last day of the Trading Period shall be the first business day following the Emergence Date.

2.45        “Volume-Weighted Average Price” means the aggregate dollar value for all transactions, divided by the total number of shares traded during the Trading Period, and multiplied by the number of such securities outstanding.  Volume-Weighted Average Prices shall be determined by reference to Bloomberg’s AQR function.

ARTICLE 3.          Administration

3.1          Administrative Duties.  The Plan shall be administered by the Committee.  Subject to the authority granted to the Committee in the KEIP Order, the Committee’s powers

5

and authorities include, but are not limited to (a) selecting the individuals who are eligible to participate in the Plan, (b) establishing the Plan objectives, metrics, and Target Incentive Awards, (c) approving the Awards granted hereunder, (d) interpreting the Plan’s provisions, (e) determining whether and to what degree the performance metrics have been achieved, and (f) administering the Plan in a manner consistent with its purpose.  All actions taken and all interpretations and determinations made by the Committee shall be final and binding upon the Participants, the Company and all other interested individuals.

3.2          Delegation of Authority.  Other than with respect to the Executive Officers and the Emergence Incentive awards, the Committee hereby delegates to the Company’s Chief Executive Officer and/or any other officers or employees of the Company as the Committee may deem advisable, its responsibility for selecting the individuals who are eligible to participate in the Plan and establishing the Target Incentive Awards for such individuals.

ARTICLE 4.          Eligibility and Participation

Eligible employees of an Employer designated by the Committee, in its sole discretion, will be eligible to become Participants in the Plan.  Subject to Section 5.11, the Committee shall be authorized to designate additional employees of the Employer to become Participants in the Plan from time to time, including individuals who are or become employees of the Company or its Subsidiaries or Affiliates following the Effective Date of this Plan who are deemed by the Committee to be essential to the Company’s operations or integral to the bankruptcy reorganization process.Notwithstanding the above, a Participant who has received a Final Performance Improvement Plan at any time after the Effective Date shall not be eligible for an Award.

ARTICLE 5.          Awards

5.1          Performance Metrics.  The performance metrics for this Plan are (a) POR Recovery Value and (b) Market-Based Recovery Value.  The performance metrics shall be calculated independently and shall include minimum, target, and high performance levels.  Recovery Percentage shall be rounded to the nearest one-hundredth of one percent.

5.2          Allocation of Target Incentive Award.  Upon adoption of the Plan, the Administrator shall determine the Target Incentive Award for each Participant.  Subject to Section 5.11, the Committee may, in its sole discretion, increase or decrease the Target Incentive Award of any Participant whose position, duties, and/or responsibilities with an Employer materially changes following the Effective Date in an amount consistent with such change in position, duties, and/or responsibilities.

5.3          POR Recovery Value Award.  The amount of each Participant’s POR Recovery Value Award shall be determined as soon as practicable following the Emergence Date.  Each Participant’s POR Recovery Value Award is equal to the product of the following three factors (a) the dollar value of such Participant’s Target Incentive Award, (b) the achieved Recovery Award Percentage set forth on Schedule A hereto, and (c) forty percent (40%).

5.4          Distribution of the POR Recovery Value Award.  The POR Recovery Value Award will be paid in cash within three (3) business days after the Emergence Date, subject to the determination of the Estimated Claim Amount, if any.

6

5.5          Market-Based Recovery Value Award.  The amount of each Participant’s Market-Based Recovery Value Award shall be determined as soon as is practicable following the Trading Period.  Each Participant’s Market-Based Recovery Value Award is equal to the product of the following three factors (a) the dollar value of such Participant’s Target Incentive Award, (b) the achieved Recovery Award Percentage set forth on Schedule A hereto, and (c) sixty percent (60%).

5.6          Distribution of Market-Based Recovery Value Award.  The Market-Based Recovery Value Award will be paid in cash within three (3) business days following the Trading Period, subject to the determination of the Third Party Valuation and the Estimated Claim Amount, if any.

5.7          Emergence Incentive.  The Emergence Incentive is a pool of money to be determined as set forth in the chart below.

Emergence Date	Emergence Incentive
June 30, 2010 or earlier	$	10,000,000
July 1, 2010 to September 30, 2010	$	5,000,000
October 1, 2010 or later	$	0

5.8          Allocation of Emergence Incentive.  The Emergence Incentive shall be allocated to one or more Participants based on individual performance in connection with the expeditious consummation of the Top Tier Debtors’ Plan or Plans of Reorganization.  The Committee shall determine such allocations, in its sole discretion, within thirty (30) days prior to the Emergence Date (it being understood that the Committee as composed prior to the Confirmation Date shall make such determination).

5.9          Distribution of the Emergence Incentive Payments.  The Emergence Incentive shall be paid in cash within three (3) business days after the Emergence Date.

5.10        Award Offset.  With respect to Adam Metz and Tom Nolan, the aggregate Award earned and payable under this Plan shall be reduced on a dollar-for-dollar basis by the amount of any discretionary bonus paid to such individual pursuant to Section 2(b)(ii) of such individual’s employment agreement, but in no event shall such reduction exceed the aggregate amount of the Award earned and payable under this Plan.

5.11        Maximum Recovery Award Payment.  The maximum aggregate Recovery Award, when calculated at target (i.e. Recovery Award Percentage equal to 65%) shall not exceed $15.2 million.

ARTICLE 6.          Termination of Employment

6.1          Recovery Awards.  A Participant shall have a right to the full amount of the Recovery Awards (if any) if such (a) Participant is employed by an Employer on the business day immediately prior to the Emergence Date, or (b) Participant’s employment with an Employer is terminated by such Employer without Cause or by reason of death or Disability on or after the Confirmation Date but prior to the Emergence Date.  If a Participant’s employment is terminated by an Employer without Cause, or by reason of death or Disability prior to the Confirmation Date, the Participant shall be entitled to a pro-rata Recovery Award based on a fraction, (y) the numerator of which is number of days the Participant was employed by an Employer from April 

7

16, 2009 until the date of termination and (z) the denominator of which is the number of days from April 16, 2009 until the business day immediately prior to the Emergence Date.  The Recovery Awards will be paid at the times set forth in Article 5 hereof.

6.2          Emergence Incentive Payment.  A Participant shall have a right to the full amount of the Emergence Incentive Payment (if any) if such (a) Participant is employed by an Employer on the business day immediately prior to the Emergence Date, or (b) Participant’s employment with an Employer is terminated by such Employer without Cause or by reason of death or Disability on or after the earlier of (1) the Confirmation Date or (2) the date on which the Committee determines the allocations under Section 5.8, but prior to the Emergence Date.  The Emergence Incentive Payment Award will be paid at the times set forth in Article 5 hereof.

ARTICLE 7.          Designation of Beneficiaries

7.1          Designation and Change of Designation.  Each Participant may file with the Company a written designation of one or more persons as the Beneficiary who shall be entitled to receive the Award (if any) payable under the Plan upon the Participant’s death.  A Participant may, from time to time, revoke or change a Beneficiary designation without the consent of any prior Beneficiary by filing a new designation with the Company.  The last such designation received by the Company shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective unless received by the Company prior to the Participant’s death, and in no event shall it be effective as of the date prior to such receipt.

7.2          Absence of Valid Designation.  If no Beneficiary designation is in effect at the time of a Participant’s death, if no designated Beneficiary survives the Participant, or if a designation conflicts with law, then the Participant’s estate shall be deemed to have been designated by the Participant and shall receive the Award (if any) payable under the Plan upon the Participant’s death.  If the Committee is in doubt as to the right of any person to receive such amount, the Committee may retain such amount, without liability for any interest thereon, until the rights thereto are determined, or the Committee may pay such amount into any court of appropriate jurisdiction, and such payment shall be a complete discharge of the liability under the Plan.

ARTICLE 8.          Duration; Adjustment; Amendment, Suspension, and Termination

8.1          Duration of Plan.  The Plan shall terminate following the distribution of the Awards.

8.2          Amendment, Suspension, and Termination.  The Committee reserves the right at any time to make non-substantive amendments to the Plan without the consent of any Participant or Beneficiary; provided, however, that any such amendment that materially increases or decreases benefits in the aggregate under the Plan shall be subject to the approval of the Bankruptcy Court.

ARTICLE 9.          General Limitations and Provisions

9.1          Tax Withholding.  An Employer shall have the right to deduct from all payments under the Plan an amount sufficient to satisfy all withholding tax requirements.

9.2          No Right, Title, or Interest in Employer’s Assets.  The Participant shall have no right, title, or interest whatsoever in or to any investments which an Employer may make to

8

aid it in meeting its obligations under the Plan.  Nothing contained in the Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Employer and any Participant or any other person.  To the extent that any person acquires a right to receive payments from an Employer under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Employer.  All payments to be made hereunder shall be paid from the general funds of the Employer and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts.

9.3          No Liability for Committee Members.  No member of the Committee shall be personally liable by reason of any contract or other instrument executed by such member or on his her behalf in such member’s capacity as a member of the Committee, nor for any mistake of judgment made in good faith.  The Company shall indemnify and hold harmless each member of the Committee and each other officer, employee, or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be allocated or delegated, against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Board) arising out of any act or omission to act in connection with the Plan unless arising out of such person’s own fraud or bad faith.

9.4          No Right to Continued Employment.  Participation in this Plan shall impose no obligation on the Company, any Subsidiary or any Affiliate to continue the Service of a Participant and shall not lessen or affect any right that the Company, any Subsidiary or any Affiliate may have to terminate the Service of such Participant.  No Participant or other person shall have any claim to be granted any Award, and there is no obligation for uniformity of treatment of Participants, or holders or beneficiaries of Awards (whether or not such Participants are similarly situated).

9.5          No Alienation of Benefits.  Except insofar as may otherwise be required by law, no amount payable at any time under the Plan shall be subject in any manner to alienation by anticipation, sale, transfer, assignment, bankruptcy, pledge, attachment, charge, or encumbrance of any kind nor in any manner be subject to the debts or liabilities of any person, and any attempt to so alienate or subject any such amount, whether presently or thereafter payable, shall be void and of no effect whatsoever.  If any person shall attempt to, or shall, alienate, sell, transfer, assign, pledge, attach, charge, or otherwise encumber any amount payable under the Plan, or any part thereof, or if by reason of such person’s bankruptcy or other event happening at any such time such amount would be made subject to such person’s debts or liabilities or would otherwise not inure to the benefit of such person, then the Committee, if it so elects, may direct that such amount be withheld and that such amount or any part thereof be paid or applied to or for the benefit of such person, such person’s spouse, child or other dependents, or any of them, in such manner and proportion as the Committee may deem proper.

9.6          Payments to Person Other Than Employee.  If the Committee shall determine that any person to whom any amount is payable under the Plan is unable to care for such person’s affairs because of illness or accident, or if such person is a minor, or has died, then any payment due such person or such person’s estate (unless a prior claim therefor has been made by a duly appointed legal representative), may, if the Committee so directs the Employer, be paid to such person’s spouse, child or other dependent, relative, an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment.  Any such payment shall be a complete discharge of the liability of the Committee and the Employer therefor.

9

9.7          Severability.  In the event that any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

9.8          Unfunded Plan; Governing Law.  The Plan is intended to constitute an unfunded bonus program, and all rights thereunder shall be governed by and construed in accordance with the laws of Illinois, without regard to the conflicts of law principles of such State.  The Bankruptcy Court shall retain sole and exclusive jurisdiction over interpretation and enforcement of the Plan.

9.9          Headings.  Headings to articles and sections in this Agreement are for the convenience of the parties only and are not intended to be part of or to affect the meaning or interpretation hereof.

9.10        Gender and Number.  Except where expressly required by the context of the Plan, any masculine term used herein also shall include the feminine, the plural shall include the singular, and the singular shall include the plural.

10

Schedule A

Performance Metrics Award Chart

Recovery Percentage	Recovery Award Percentage*
45% or less	0%
46%	5%
47%	10%
48%	15%
49%	20%
50%	25%
51%	30%
52%	35%
53%	40%
54%	45%
55%	50%
56%	55%
57%	60%
58%	65%
59%	70%
60%	75%
61%	80%
62%	85%
63%	90%
64%	95%
65%	100%
66%	105%
67%	110%
68%	115%
69%	120%
70%	125%
71%	130%
72%	135%
73%	140%
74%	145%
75%	150%
76%	155%
77%	160%
78%	165%
79%	170%
80%	175%
81%	180%
82%	185%
83%	190%
84%	195%
85%	200%
86%	210%
87%	220%
88%	230%
89%	240%
90%	250%
91%	260%
92%	270%
93%	280%
94%	290%
95%	300%
96%	310%
97%	320%
98%	330%
99%	340%
100%**	350%

*The Recovery Percentage and Recovery Award Percentage shall be rounded to the nearest one-hundredth of one percent.

**Payouts above one hundred percent plan recovery shall be extrapolated so that payout will continue increasing by ten percent increments for each one percent increase in plan recovery.

11

EX-21

EXHIBIT 21

Following is a list of the current active subsidiaries of the registrant.  Certain subsidiaries that are inactive, have insignificant assets or exist solely to protect business names but do not conduct business have been omitted.  The omitted subsidiaries, considered in the aggregate, do not constitute a significant subsidiary.

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
10 CCC BUSINESS TRUST	MARYLAND	TEN COLUMBIA CORPORATE CENTER
10000 COVINGTON CROSS, LLC	DELAWARE	THE CROSSING BUSINESS CENTER
10000 WEST CHARLESTON BOULEVARD, LLC	NEVADA	HOWARD HUGHES PLAZA
10190 COVINGTON CROSS, LLC	DELAWARE	THE CROSSING BUSINESS CENTER
10450 WEST CHARLESTON BOULEVARD, LLC	NEVADA	CORPORATE POINTE NORTH
1120/1140 TOWN CENTER DRIVE, LLC	DELAWARE	CANYONS CENTER
1160/1180 TOWN CENTER DRIVE, LLC	DELAWARE	CANYONS CENTER
1201-1281 TOWN CENTER DRIVE, LLC	DELAWARE	THE CROSSING BUSINESS CENTER
1251 CENTER CROSSING, LLC	DELAWARE	THE CROSSING BUSINESS CENTER
1450 CENTER CROSSING DRIVE, LLC	DELAWARE	THE CROSSING BUSINESS CENTER
1451 CENTER CROSSING DRIVE, LLC	DELAWARE	THE CROSSING BUSINESS CENTER
1551 HILLSHIRE DRIVE, LLC	DELAWARE
1635 VILLAGE CENTRE CIRCLE, LLC	DELAWARE	PLAZA WEST
1645 VILLAGE CENTER CIRCLE, LLC	DELAWARE	PLAZA EAST
170 RETAIL ASSOCIATES, LTD.	TEXAS	CIRCLE T RANCH
20 CCC BUSINESS TRUST	MARYLAND	TWENTY COLUMBIA CORPORATE CENTER
30 CCC BUSINESS TRUST	MARYLAND	THIRTY COLUMBIA CORPORATE CENTER
500 WEST ASSOCIATES, LLC	UTAH
500 WEST CAPITAL, L.C.	UTAH
9901-9921 COVINGTON CROSS, LLC	DELAWARE	THE CROSSING BUSINESS CENTER
9950-9980 COVINGTON CROSS, LLC	DELAWARE	THE CROSSING BUSINESS CENTER
ABBEY ACQUISITION LLC	DELAWARE
ACB PARKING BUSINESS TRUST	MARYLAND

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
ALDERWOOD MALL L.L.C.	DELAWARE	ALDERWOOD MALL
ALDERWOOD MALL HOLDING L.L.C.	DELAWARE
ALIANSCE SHOPPING CENTERS S.A.	BRAZIL
ALLENTOWNE MALL, LLC	DELAWARE
ALTAMONTE MALL, LLC	DELAWARE	ALTAMONTE MALL
AMERICAN CITY BUILDING CORPORATION	MARYLAND
APACHE MALL, LLC	DELAWARE	APACHE MALL
ARIZONA CENTER PARKING, LLC	DELAWARE
AUGUSTA MALL, LLC	DELAWARE	AUGUSTA MALL
AUSTIN MALL LIMITED PARTNERSHIP	DELAWARE
AUSTIN MALL, LLC	MARYLAND
BALTIMORE CENTER ASSOCIATES LIMITED PARTNERSHIP	MARYLAND	THE GALLERY AT HARBOR PLACE
BALTIMORE CENTER GARAGE LIMITED PARTNERSHIP	MARYLAND
BALTIMORE CENTER, LLC	DELAWARE
BAY CITY MALL, LLC	DELAWARE	BAY CITY MALL
BAY SHORE GP, LLC	DELAWARE
BAY SHORE MALL, LP	DELAWARE	BAY SHORE MALL
BAYBROOK MALL, LLC	DELAWARE	BAYBROOK MALL
BAYSIDE MARKETPLACE, LLC	DELAWARE	BAYSIDE MARKETPLACE
BEACHWOOD PLACE HOLDING, LLC	DELAWARE
BEACHWOOD PLACE MALL, LLC	DELAWARE	BEACHWOOD PLACE
BEACHWOOD PLACE, LLC	MARYLAND
BELLIS FAIR MALL, LLC	DELAWARE	BELLIS FAIR MALL
BENSON PARK BUSINESS TRUST	MARYLAND
BIRCHWOOD MALL, LLC	DELAWARE	BIRCHWOOD MALL

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
BOISE MALL, LLC	DELAWARE	BOISE TOWN SQUARE
BOISE TOWN SQUARE ANCHOR ACQUISITION, LLC	DELAWARE
BOISE TOWNE PLAZA L.L.C.	DELAWARE	BOISE TOWN PLAZA
BOULEVARD MALL, LLC	DELAWARE	THE BOULEVARD MALL
BRASS MILL CENTER, LLC	DELAWARE	BRASS MILL CENTER & COMMONS
BRIDGELAND GP, LLC	DELAWARE
BRIDGEWATER COMMONS MALL DEVELOPMENT, LLC	MARYLAND	THE VILLAGE AT BRIDGEWATER COMMONS
BRIDGEWATER COMMONS MALL II, LLC	DELAWARE	BRIDGEWATER COMMONS
BRIDGEWATER COMMONS MALL, LLC	MARYLAND
BURLINGTON TOWN CENTER II LLC	DELAWARE
CACHE VALLEY, LLC	DELAWARE	CACHE VALLEY MALL
CALEDONIAN HOLDING COMPANY, INC.	DELAWARE
CAPITAL MALL L.L.C.	DELAWARE	CAPITAL MALL
CAROLINA PLACE L.L.C.	DELAWARE	CAROLINA PLACE
CENTER POINTE PLAZA LLC	NEVADA	CENTER POINTE PLAZA
CENTURY PLAZA L.L.C.	DELAWARE	CENTURY PLAZA
CENTURY PLAZA, INC.	DELAWARE
CHAMPAIGN MARKET PLACE L.L.C.	DELAWARE	MARKET PLACE SHOPPING CENTER
CHAPEL HILLS MALL L.L.C.	DELAWARE	CHAPEL HILLS MALL
CHESAPEAKE INVESTORS, LLC	DELAWARE
CHICO MALL L.L.C.	DELAWARE
CHICO MALL, L.P.	DELAWARE	CHICO MALL
CHRISTIANA ACQUISITION LLC	DELAWARE
CHRISTIANA HOLDINGS I LLC	DELAWARE
CHRISTIANA MALL LLC	DELAWARE	CHRISTIANA MALL
CHULA VISTA CENTER, LLC	DELAWARE	CHULA VISTA CENTER
CLACKAMAS MALL L.L.C.	DELAWARE	CLACKAMAS TOWN CENTER
CLOVER ACQUISITIONS LLC	DELAWARE
CM THEATRE BUSINESS TRUST	MARYLAND
CMA ACCESS COMPANY, LLC	MARYLAND
CM-H BUSINESS TRUST	MARYLAND

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
CMI CORPORATE PARKING BUSINESS TRUST	MARYLAND
CM-N BUSINESS TRUST	MARYLAND
COASTLAND CENTER, LLC	DELAWARE	COASTLAND CENTER
COLLIN CREEK ANCHOR ACQUISITION, LLC	DELAWARE
COLLIN CREEK MALL, LLC	DELAWARE	COLLIN CREEK
COLONY SQUARE MALL L.L.C.	DELAWARE	COLONY SQUARE MALL
COLUMBIA CROSSING, LLC	DELAWARE
COLUMBIA LAND HOLDINGS, INC.	MARYLAND
COLUMBIA MALL BUSINESS TRUST	MARYLAND
COLUMBIA MALL L.L.C.	DELAWARE	COLUMBIA MALL
COLUMBIA MALL, INC.	MARYLAND
COLUMBIA MANAGEMENT, INC.	MARYLAND
CORAL RIDGE MALL, LLC	DELAWARE	CORAL RIDGE MALL
CORONADO CENTER L.L.C.	DELAWARE	CORONADO CENTER
COTTONWOOD MALL, LLC	DELAWARE	COTTONWOOD MALL
COUNTRY HILLS PLAZA, LLC	DELAWARE	COUNTRY HILLS PLAZA
CROCKER DOWNTOWN DEVELOPMENT ASSOCIATES	FLORIDA	MIZNER PARK
CROCKER MIZNER PARK III, LTD.	FLORIDA
CROCKER MIZNER PARK IV, LTD.	FLORIDA
CUMBERLAND MALL, LLC	DELAWARE	CUMBERLAND MALL
CURA/GGP INVESTMENT CORPORATION S.A.R.L.	LUXEMBOURG
CYPRESS LA, LLC	DELAWARE
DAYJAY ASSOCIATES	OKLAHOMA
DEERBROOK MALL, LLC	DELAWARE	DEERBROOK MALL
EAGLE RIDGE MALL, LLC	DELAWARE	EAGLE RIDGE MALL
EAST MESA LAND L.L.C.	DELAWARE
EAST MESA MALL L.L.C.	DELAWARE
EASTRIDGE SHOPPING CENTER L.L.C.	DELAWARE	EASTRIDGE MALL
ECE TURKIYE PROJE YONETIMI A.S.	TURKEY
ECE/GGP GAYRIMENKUL INSAAT YONETIM VE GELISTIRME ANONIM SIRKETI	TURKEY
EDEN PRAIRIE ANCHOR BUILDING L.L.C.	DELAWARE
EDEN PRAIRIE MALL L.L.C.	DELAWARE	EDEN PRAIRIE CENTER
ELK GROVE TOWN CENTER L.L.C.	DELAWARE

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
ELK GROVE TOWN CENTER, L.P.	DELAWARE	ELK GROVE TOWN CENTER
EMERSON LAND BUSINESS TRUST	MARYLAND
EMERSON LAND, LLC	DELAWARE
FAIRWOOD COMMERCIAL FRONT FOOT BENEFIT COMPANY, LLC	MARYLAND
FALLBROOK SQUARE PARTNERS L.L.C.	DELAWARE
FALLBROOK SQUARE PARTNERS LIMITED PARTNERSHIP	DELAWARE	FALLBROOK CENTER
FALLEN TIMBERS SHOPS II, LLC	DELAWARE
FALLEN TIMBERS SHOPS, LLC	DELAWARE	THE SHOPS AT FALLEN TIMBERS
FANEUIL HALL BEVERAGE, LLC	MARYLAND
FANEUIL HALL MARKETPLACE, LLC	DELAWARE	FANEUIL HALL MARKETPLACE
FASHION PLACE ANCHOR ACQUISITION, LLC	DELAWARE
FASHION PLACE, LLC	DELAWARE	FASHION PLACE
FASHION SHOW MALL LLC	DELAWARE	FASHION SHOW MALL
FIFTY COLUMBIA CORPORATE CENTER, LLC	DELAWARE
FIRST COLONY MALL, LLC	DELAWARE	FIRST COLONY MALL
FLORENCE MALL L.L.C.	DELAWARE	FLORENCE MALL
FORTY COLUMBIA CORPORATE CENTER, LLC	DELAWARE
FOUR STATE FACILITY CORPORATION	DELAWARE
FOUR STATE PROPERTIES, LLC	DELAWARE
FOX RIVER SHOPPING CENTER, LLC	DELAWARE	FOX RIVER SHOPPING CENTER
GATEWAY CROSSING L.L.C.	DELAWARE	GATEWAY CROSSING SHOPPING CENTER
GATEWAY OVERLOOK BORROWER, LLC	DELAWARE
GATEWAY OVERLOOK BUSINESS TRUST	MARYLAND	GATEWAY OVERLOOK
GATEWAY OVERLOOK II BORROWER, LLC	DELAWARE
GATEWAY OVERLOOK II BUSINESS TRUST	MARYLAND
GATEWAY OVERLOOK III BUSINESS TRUST	MARYLAND
GENERAL GROWTH - WESTLAKE (GP), INC.	DELAWARE
GENERAL GROWTH - WESTLAKE, L.P.	DELAWARE

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
GENERAL GROWTH 170 (GP), LLC	DELAWARE
GENERAL GROWTH 170, LP	DELAWARE
GENERAL GROWTH MANAGEMENT, INC.	DELAWARE
GG DR, L.L.C.	ILLINOIS
GGP 110 HOLDING L.L.C.	DELAWARE
GGP 110 L.L.C.	DELAWARE
GGP 110, INC.	DELAWARE
GGP ACQUISITION, L.L.C.	DELAWARE
GGP ALA MOANA L.L.C.	DELAWARE	ALA MOANA CENTER
		ALA MOANA HAWAII’S CENTER
		ALA MOANA PLAZA
		MAKAI MARKET
GGP AMERICAN HOLDINGS INC.	DELAWARE
GGP AMERICAN PROPERTIES INC.	DELAWARE
GGP BRAZIL I L.L.C.	DELAWARE
GGP CAPITAL TRUST I	DELAWARE
GGP CONTRACTOR, INC.	DELAWARE
GGP HOLDING II, INC.	DELAWARE
GGP HOLDING SERVICES, INC.	DELAWARE
GGP HOLDING, INC.	DELAWARE
GGP INTERNATIONAL, LLC	DELAWARE
GGP IVANHOE II, INC.	DELAWARE
GGP IVANHOE IV SERVICES, INC.	DELAWARE
GGP IVANHOE SERVICES, INC.	DELAWARE
GGP IVANHOE, INC.	DELAWARE
GGP JORDAN CREEK L.L.C.	DELAWARE	JORDAN CREEK TOWN CENTER
GGP KAPIOLANI DEVELOPMENT L.L.C.	DELAWARE
GGP LIMITED PARTNERSHIP	DELAWARE
GGP LUX CO. S.A.R.L.	LUXEMBOURG
GGP MEADOWS MALL L.L.C.	DELAWARE	MEADOWS MALL
GGP MORENO VALLEY GP, LLC	DELAWARE
GGP NATICK RESIDENCE LLC	DELAWARE	NATICK COLLECTION
GGP NORTHRIDGE FASHION CENTER, LP	DELAWARE	NORTHRIDGE FASHION CENTER

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
GGP REGENCY SQUARE, LLC	DELAWARE	REGENCY SQUARE MALL
GGP SAVANNAH L.L.C.	DELAWARE
GGP TURKEY INVESTCO, LLC	DELAWARE
GGP TURKEY MANAGEMENT, LLC	DELAWARE
GGP VENTURES BRAZIL HOLDING L.L.C.	DELAWARE
GGP VENTURES COSTA RICA, L.L.C.	DELAWARE
GGP/HOMART II L.L.C.	DELAWARE
GGP/HOMART SERVICES, INC.	DELAWARE
GGP/HOMART, INC.	DELAWARE
GGP-ARROWHEAD, INC.	DELAWARE
GGP-BRIDGELAND, LP	MARYLAND
GGP-BUCKLAND HILLS ONE, INC.	DELAWARE
GGP-COLUMBIANA TRUST	DELAWARE	COLUMBIANA CENTRE
GGP-FOOTHILLS L.L.C.	DELAWARE	FOOTHILLS MALL
GGP-FOUR SEASONS L.L.C.	DELAWARE	FOUR SEASONS TOWN CENTRE
GGP-GATEWAY MALL L.L.C.	DELAWARE	GATEWAY MALL
GGP-GLENBROOK HOLDING L.L.C.	DELAWARE
GGP-GLENBROOK L.L.C.	DELAWARE	GLENBROOK SQUARE
GGP-GLENDALE, INC.	DELAWARE
GGP-GRANDVILLE II L.L.C.	DELAWARE
GGP-GRANDVILLE L.L.C.	DELAWARE	RIVERTOWN CROSSINGS
GGP-GRANDVILLE LAND L.L.C.	DELAWARE
GGP-LA PLACE, INC.	DELAWARE
GGP-LANSING MALL, INC.	DELAWARE
GGPLP L.L.C.	DELAWARE
GGP-MACON, LLC	DELAWARE
GGP-MAINE MALL L.L.C.	DELAWARE	THE MAINE MALL
GGP-MAINE MALL LAND L.L.C.	DELAWARE
GGP-MALL OF LOUISIANA II, L.P.	DELAWARE
GGP-MALL OF LOUISIANA, INC.	DELAWARE
GGP-MALL OF LOUISIANA, L.P.	DELAWARE	MALL OF LOUISIANA
GGP-MINT HILL L.L.C.	DELAWARE	THE BRIDGES AT MINT HILL
GGP-NATICK SERVICES, INC.	DELAWARE
GGP-NATICK TRUST	MASSACHUSETTS

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
GGP-NATICK WEST L.L.C.	DELAWARE	NATICK COLLECTION
GGP-NESHAMINY TRUST	DELAWARE
GGP-NEWGATE MALL, LLC	DELAWARE	NEWGATE MALL
GGP-NORTH POINT LAND L.L.C.	DELAWARE
GGP-NORTHBROOK, INC.	DELAWARE
GGP-OTAY RANCH L.L.C.	DELAWARE
GGP-OTAY RANCH, L.P.	DELAWARE	OTAY RANCH TOWN CENTER
GGP-PARAMUS PARK MALL, LLC	DELAWARE
GGP-PEMBROKE LAKES II, INC.	DELAWARE
GGP-PEMBROKE LAKES, INC.	DELAWARE
GGP-REDLANDS MALL L.L.C.	DELAWARE	THE VILLAGE AT REDLANDS
GGP-REDLANDS MALL, L.P.	DELAWARE
GGP-ROGERS RETAIL L.L.C.	DELAWARE
GGP-SOUTH SHORE PARTNERS, INC.	DELAWARE
GGP-TRS L.L.C.	DELAWARE
GGP-TRS SERVICES, INC.	DELAWARE
GGP-TUCSON LAND L.L.C.	DELAWARE
GGP-TUCSON MALL L.L.C.	DELAWARE	TUCSON MALL
GGP-TYLER MALL L.L.C.	DELAWARE
GGP-UC L.L.C.	DELAWARE	UNIVERSITY CROSSING
GLENDALE ANCHOR ACQUISITION, LLC	DELAWARE
GLENDALE HOLDING, INC.	DELAWARE
GLENDALE HOLDING, L.L.C.	DELAWARE
GLENDALE I MALL ASSOCIATES, LLC	DELAWARE	GLENDALE GALLERIA
GLENDALE II MALL ASSOCIATES, LLC	DELAWARE	GLENDALE GALLERIA
GLENDALE OHRBACH’S ASSOCIATES, LLC	DELAWARE	GLENDALE GALLERIA
GOVERNOR’S SQUARE MALL, LLC	DELAWARE	GOVERNOR’S SQUARE
GRAND CANAL SHOPS II, LLC	DELAWARE	THE GRAND CANAL SHOPPES AT THE VENETIAN
GRAND TRAVERSE MALL, LLC	DELAWARE	GRAND TRAVERSE MALL
GRANDVILLE MALL II, LLC	DELAWARE
GRANDVILLE MALL, LLC	DELAWARE
GREENGATE MALL, INC.	PENNSYLVANIA
GREENWOOD MALL L.L.C.	DELAWARE	GREENWOOD MALL
GREENWOOD MALL LAND, LLC	DELAWARE

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
HARBOR PLACE ASSOCIATES LIMITED PARTNERSHIP	MARYLAND	HARBORPLACE
HARBORPLACE BORROWER, LLC	DELAWARE
HARBORPLACE MANAGEMENT COMPANY, LLC	MARYLAND
HARPER’S CHOICE BUSINESS TRUST	MARYLAND
HEAD ACQUISITION, LP	DELAWARE
HEX HOLDING, LLC	DELAWARE
HEXALON REAL ESTATE, INC.	DELAWARE
HHP GOVERNMENT SERVICES, LIMITED PARTNERSHIP	NEVADA
HIGHLAND MALL LIMITED PARTNERSHIP	DELAWARE	HIGHLAND MALL
HMF PROPERTIES, LLC	DELAWARE
HOCKER OXMOOR, LLC	DELAWARE	OXMOOR CENTER
HOOVER JV HOLDCO, LLC	DELAWARE
HOOVER MALL HOLDING, L.L.C.	DELAWARE
HOOVER MALL LIMITED, L.L.C.	DELAWARE	RIVERCHASE GALLERIA
HOWARD HUGHES CANYON POINTE Q4, LLC	NEVADA	CANYON POINT VILLAGE CENTER
HOWARD HUGHES CENTERPOINT, LLC	NEVADA
HOWARD HUGHES PROPERTIES IV, LLC	DELAWARE	CORPORATE POINTE NORTH 2
HOWARD HUGHES PROPERTIES V, LLC	DELAWARE	CORPORATE POINTE NORTH 3
HOWARD HUGHES PROPERTIES, INC.	NEVADA
HOWARD HUGHES PROPERTIES, LIMITED PARTNERSHIP	DELAWARE
HRD PARKING DECK BUSINESS TRUST	MARYLAND
HRD PARKING, INC.	MARYLAND
HRD REMAINDER, INC.	MARYLAND
H-TEX, INCORPORATED	TEXAS
HULEN MALL, LLC	DELAWARE	HULEN MALL
KALAMAZOO MALL L.L.C.	DELAWARE	THE CROSSROADS
KAPIOLANI RETAIL, LLC	DELAWARE
KENWOOD MALL HOLDING, LLC	DELAWARE
KENWOOD MALL L.L.C.	DELAWARE	KENWOOD TOWNE CENTRE
KNOLLWOOD MALL, LLC	DELAWARE	KNOLLWOOD MALL
LA CANTERA HOLDING GP, LLC	DELAWARE

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
LA CANTERA HOLDING, LP	DELAWARE
LA CANTERA RETAIL LIMITED PARTNERSHIP	TEXAS	THE SHOPS AT LA CANTERA
LA CANTERA SPECIALTY RETAIL, LP	TEXAS	THE SHOPS AT LA CANTERA-LIFESTYLE SPECIALTY CENTER
LA PLACE SHOPPING, L.P.	DELAWARE	RIVERLANDS SHOPPING CENTER
LAKE MEAD AND BUFFALO PARTNERSHIP	NEVADA	GATEWAY CENTER
LAKELAND SQUARE MALL, LLC	DELAWARE	LAKELAND SQUARE
LAKESIDE MALL HOLDING, LLC	MICHIGAN
LAKESIDE MALL PROPERTY LLC	DELAWARE	LAKESIDE MALL
LAKEVIEW SQUARE MALL, LLC	DELAWARE	LAKEVIEW SQUARE MALL
LANDMARK MALL L.L.C.	DELAWARE	LANDMARK MALL
LANSING MALL LIMITED PARTNERSHIP	DELAWARE	LANSING MALL
LINCOLNSHIRE COMMONS, LLC	DELAWARE	LINCOLNSHIRE COMMONS
LOCKPORT L.L.C.	NEW YORK	LOCKPORT MALL
LOT 48 BUSINESS TRUST	MARYLAND
LOT 49 BUSINESS TRUST	MARYLAND
LP ROUSE-HOUSTON, LLC	MARYLAND
LRVC BUSINESS TRUST	MARYLAND
LUANDA EMPREENDIMENTOS E.	PARTICIPACOES S.A.
LYNNHAVEN MALL L.L.C.	DELAWARE	LYNNHAVEN MALL
MAJESTIC PARTNERS-PROVO, LLC	UTAH
MALL ENTRANCES BUSINESS TRUST	MARYLAND
MALL OF LOUISIANA HOLDING, INC.	DELAWARE
MALL OF LOUISIANA LAND HOLDING, LLC	DELAWARE
MALL OF LOUISIANA LAND, LP	DELAWARE
MALL OF THE BLUFFS, LLC	DELAWARE	MALL OF THE BLUFFS
MALL ST. MATTHEWS COMPANY, LLC	DELAWARE
MALL ST. VINCENT, LLC	DELAWARE	MALL ST. VINCENT
MAYFAIR MALL, LLC	DELAWARE	MAYFAIR MALL
MERRICK PARK HOLDING, LLC	DELAWARE
MERRICK PARK LLC	MARYLAND	VILLAGE OF MERRICK PARK
MERRICK PARK PARKING LLC	DELAWARE
MERRIWEATHER POST BUSINESS TRUST	MARYLAND
MIZNER JV HOLDCO, LLC	DELAWARE

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
MIZNER PARK HOLDINGS I, LLC	DELAWARE
MIZNER PARK HOLDINGS II, LLC	DELAWARE
MIZNER PARK HOLDINGS III, LLC	DELAWARE
MIZNER PARK HOLDINGS IV, LLC	DELAWARE
MIZNER PARK HOLDINGS V, LLC	DELAWARE
MIZNER PARK VENTURE, LLC	DELAWARE
MONDAWMIN BORROWER, LLC	DELAWARE
MONDAWMIN BUSINESS TRUST	MARYLAND	MONDAWMIN MALL
MONTCLAIR PLAZA L.L.C.	DELAWARE	MONTCLAIR PLAZA
MORENO VALLEY MALL, LP	DELAWARE	MORENO VALLEY MALL
MSAB HOLDINGS L.L.C.	DELAWARE
MSM PROPERTY L.L.C.	DELAWARE	MALL ST. MATTHEWS
NATICK MALL, LLC	DELAWARE	NATICK COLLECTION
NATICK RETAIL, LLC	DELAWARE
NESHAMINY MALL JOINT VENTURE LIMITED PARTNERSHIP	ILLINOIS	NESHAMINY MALL
NEW ORLEANS RIVERWALK ASSOCIATES	LOUISIANA	RIVERWALK MARKETPLACE
NEW ORLEANS RIVERWALK LIMITED PARTNERSHIP	MARYLAND
NEW RIVER ASSOCIATES	ARIZONA	ARROWHEAD TOWNE CENTER
NEWGATE MALL LAND ACQUISITION, LLC	DELAWARE
NEWPARK ANCHOR ACQUISITION, LLC	DELAWARE
NEWPARK GP, LLC	DELAWARE
NEWPARK MALL, LP	DELAWARE	NEWPARK MALL
NORTH POINT MALL, LLC	DELAWARE	NORTH POINT MALL
NORTH STAR ANCHOR ACQUISITION, LLC	DELAWARE
NORTH STAR MALL, LLC	DELAWARE	NORTH STAR MALL
NORTH TOWN MALL, LLC	DELAWARE	NORTHTOWN MALL
NORTHBROOK COURT I L.L.C.	DELAWARE
NORTHBROOK COURT II L.L.C.	DELAWARE
NORTHBROOK COURT L.L.C.	DELAWARE
NORTHGATE MALL L.L.C.	DELAWARE	NORTHGATE MALL
NORTHRIDGE GP, LLC	DELAWARE

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
NORTHWEST ASSOCIATES	MARYLAND
NORTHWEST JV HOLDCO, LLC	DELAWARE
NSMJV, LLC	DELAWARE
O.M. LAND DEVELOPMENT, LLC	MARYLAND
OAK BROOK URBAN VENTURE, L.P.	ILLINOIS
OAK VIEW MALL L.L.C.	DELAWARE	OAK VIEW MALL
OAKBROOK FACILITIES CORPORATION	MARYLAND
OAKBROOK SHOPPING CENTER, LLC	DELAWARE	OAKBROOK CENTER
OAKLAND RIDGE INDUSTRIAL DEVELOPMENT CORPORATION	MARYLAND
OAKS MALL, LLC	DELAWARE	THE OAKS MALL
OAKWOOD HILLS MALL, LLC	DELAWARE	OAKWOOD MALL
OAKWOOD SHOPPING CENTER LIMITED PARTNERSHIP	LOUISIANA	OAKWOOD CENTER
OGLETHORPE MALL L.L.C.	DELAWARE	OGLETHORPE MALL
OKLAHOMA MALL L.L.C.	DELAWARE
OKLAHOMA MALL, INC.	DELAWARE
OM BORROWER, LLC	DELAWARE
ONE OWINGS MILLS CORPORATE CENTER ASSOCIATES LIMITED PARTNERSHIP	MARYLAND	ONE OWINGS MILLS CORPORATE CENTER
ONE OWINGS MILLS CORPORATE CENTER, LLC	MARYLAND
ONE WILLOW COMPANY, LLC	DELAWARE
OWINGS MILLS LIMITED PARTNERSHIP	MARYLAND	OWINGS MILLS SHOPPING CENTER
PARAMUS EQUITIES, LLC	TEXAS
PARAMUS PARK SHOPPING CENTER LIMITED PARTNERSHIP	NEW JERSEY	PARAMUS PARK
PARAMUS PARK, LLC	MARYLAND
PARCEL C BUSINESS TRUST	MARYLAND
PARCEL D BUSINESS TRUST	MARYLAND
PARK CITY CENTER BUSINESS TRUST	DELAWARE	PARK CITY CENTER
PARK MALL L.L.C.	DELAWARE	PARK PLACE
PARK MEADOWS MALL HOLDING, LLC	DELAWARE
PARK MEADOWS MALL, LLC	DELAWARE	PARK MEADOWS MALL
PARK SQUARE LIMITED PARTNERSHIP	MARYLAND	SIXTY COLUMBIA CORPORATE CENTER
PARKE WEST, LLC	DELAWARE	PARK WEST

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
PARKS AT ARLINGTON, LLC	DELAWARE	THE PARKS AT ARLINGTON
PARKSIDE LIMITED PARTNERSHIP	MARYLAND	FIFTY COLUMBIA CORPORATE CENTER
PARKVIEW OFFICE BUILDING LIMITED PARTNERSHIP	MARYLAND	FORTY COLUMBIA CORPORATE CENTER
PAVILIONS AT BUCKLAND HILLS L.L.C.	CONNECTICUT	THE SHOPPES AT BUCKLAND HILLS
PDC COMMUNITY CENTERS L.L.C.	DELAWARE	AUSTIN BLUFFS PLAZA
		DIVISION CROSSING
		HALSEY CROSSING
		OREM PLAZA STATE STREET
		RIVER POINTE PLAZA
		RIVERSIDE PLAZA
		WOODLANDS VILLAGE
PDC-EASTRIDGE MALL L.L.C.	DELAWARE	EASTRIDGE MALL
PDC-RED CLIFFS MALL L.L.C.	DELAWARE	RED CLIFFS MALL
PEACHTREE MALL L.L.C.	DELAWARE	PEACHTREE MALL
PECANLAND ANCHOR ACQUISITION, LLC	DELAWARE
PECANLAND MALL, LLC	DELAWARE	PECANLAND MALL
PEMBROKE LAKES MALL LTD.	FLORIDA	PEMBROKE LAKES MALL
PERIMETER MALL FACILITIES, LLC	DELAWARE
PERIMETER MALL VENTURE, LLC	DELAWARE
PERIMETER MALL, LLC	MARYLAND	PERIMETER MALL
PHASE II MALL SUBSIDIARY, LLC	DELAWARE	THE SHOPPES AT THE PALAZZO
PIEDMONT MALL, LLC	DELAWARE	PIEDMONT MALL
PIERRE BOSSIER MALL, LLC	DELAWARE	PIERRE BOSSIER MALL
PINE RIDGE MALL L.L.C.	DELAWARE	PINE RIDGE MALL
PINES MALL PARTNERS	IOWA	THE PINES
PINNACLE HILLS, LLC	DELAWARE	PINNACLE HILLS PROMENADE
PINNACLE SOUTH, LLC	DELAWARE
PIONEER OFFICE LIMITED PARTNERSHIP	MARYLAND	PIONEER TOWER
PIONEER PLACE LIMITED PARTNERSHIP	MARYLAND	PIONEER PLACE
PRICE DEVELOPMENT COMPANY, LIMITED PARTNERSHIP	MARYLAND	ALAMEDA PLAZA
		BAILEY HILLS VILLAGE

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
		COTTONWOOD SQUARE
		FREMONT PLAZA
		RED CLIFFS PLAZA
		TWIN FALLS CROSSING
		YELLOWSTONE SQUARE
PRICE DEVELOPMENT TRS, INC.	DELAWARE
PRICE FINANCING PARTNERSHIP, L.P.	DELAWARE
PRICE GP L.L.C.	DELAWARE
PRICE-ASG L.L.C.	DELAWARE	ANIMAS VALLEY MALL
		GRAND TETON MALL
		SALEM CENTER
PRICE-BOISE COMPANY, LTD.	UTAH	BOISE PLAZA
PRICE-JAMES COMPANY	UTAH	ANAHEIM CROSSING
PRICE-JAMES JV HOLDCO, LLC	DELAWARE
PRINCE KUHIO PLAZA, LLC	DELAWARE	PRINCE KUHIO PLAZA
PRINCETON LAND EAST, LLC	DELAWARE
PRINCETON LAND, LLC	DELAWARE
PROVIDENCE PLACE HOLDINGS, LLC	DELAWARE
PROVO MALL DEVELOPMENT COMPANY, LTD.	UTAH
PROVO MALL L.L.C.	DELAWARE	PROVO TOWNE CENTRE
QUAIL SPRINGS MALL, LLC	DELAWARE	QUAIL SPRINGS MALL
RED ROCK INVESTMENT, LLC	NEVADA
REDLANDS LAND ACQUISITION COMPANY L.L.C.	DELAWARE
REDLANDS LAND ACQUISITION COMPANY L.P.	DELAWARE
REDLANDS LAND HOLDING L.L.C.	DELAWARE
RIDGEDALE CENTER, LLC	DELAWARE	RIDGEDALE CENTER
RIDGEDALE CENTER, LLC	DELAWARE	RIDGEDALE JOINT VENTURE
RIO WEST L.L.C.	DELAWARE	RIO WEST MALL
RIVER FALLS MALL, LLC	DELAWARE	RIVER FALLS MALL
RIVER HILLS MALL, LLC	DELAWARE	RIVER HILLS MALL
RIVERCHASE ANCHOR ACQUISITION, LLC	DELAWARE
ROGERS RETAIL L.L.C.	DELAWARE
ROGUE VALLEY MALL L.L.C.	DELAWARE	ROGUE VALLEY MALL
ROUSE COMMERCIAL PROPERTIES, LLC	MARYLAND
ROUSE F.S., LLC	MARYLAND

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
ROUSE HOLDING LIMITED PARTNERSHIP	MARYLAND
ROUSE INVESTING COMPANY, LLC	MARYLAND
ROUSE LLC	DELAWARE
ROUSE OAKBROOK, LLC	DELAWARE
ROUSE OFFICE MANAGEMENT OF ARIZONA, LLC	DELAWARE
ROUSE PROVIDENCE LLC	DELAWARE	PROVIDENCE PLACE
ROUSE SI SHOPPING CENTER, LLC	MARYLAND	STATEN ISLAND MALL
		THE CROSSINGS AT STATEN ISLAND
ROUSE TRI-PARTY MISCELLANEOUS, LLC	MARYLAND
ROUSE TRI-PARTY TRS, INC.	MARYLAND
ROUSE-ABBEY, LLC	MARYLAND
ROUSE-ARIZONA CENTER, LLC	MARYLAND
ROUSE-ARIZONA RETAIL CENTER LIMITED PARTNERSHIP	MARYLAND	ARIZONA CENTER
		ARIZONA GARDEN OFFICE CENTER
		THE SHOPS ARIZONA CENTER
		THE SHOPS AT ARIZONA CENTER OFFICES
ROUSE-BRIDGEWATER COMMONS, LLC	MARYLAND
ROUSE-FAIRWOOD DEVELOPMENT CORPORATION	MARYLAND
ROUSE-FAIRWOOD DEVELOPMENT LIMITED PARTNERSHIP	MARYLAND
ROUSE-HIGHLAND, LLC	DELAWARE
ROUSE-MIZNER PARK, LLC	DELAWARE
ROUSE-NEW ORLEANS, LLC	MARYLAND
ROUSE-OAKWOOD SHOPPING CENTER, LLC	MARYLAND
ROUSE-ORLANDO, LLC	DELAWARE	OVIEDO MARKETPLACE
ROUSE-PHOENIX CINEMA, LLC	MARYLAND
ROUSE-PHOENIX CORPORATE CENTER LIMITED PARTNERSHIP	MARYLAND
ROUSE-PHOENIX DEVELOPMENT COMPANY, LLC	MARYLAND
ROUSE-PHOENIX MASTER LIMITED PARTNERSHIP	MARYLAND
ROUSE-PHOENIX THEATRE LIMITED PARTNERSHIP	MARYLAND
ROUSE-PORTLAND, LLC	MARYLAND

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
ROUSE-SEATTLE, LLC	DELAWARE
ROUSE-TOWSON TOWN CENTER, LLC	MARYLAND
ROUSE-TTC FUNDING, LLC	MARYLAND
ROUSE-URBAN ACQUISITION, LLC	MARYLAND
ROUSE-URBAN, LLC	MARYLAND
ROUSE-WESTLAKE LIMITED PARTNERSHIP	MARYLAND
ROUSE-WESTLAKE LIMITED PARTNERSHIP II	DELAWARE
ROUSE-WINCOPIN, LLC	MARYLAND
RUNNING BROOK BUSINESS TRUST	MARYLAND
SAINT LOUIS GALLERIA ANCHOR ACQUISITION, LLC	DELAWARE
SAINT LOUIS GALLERIA L.L.C.	DELAWARE	ST. LOUIS GALLERIA
SAINT LOUIS LAND L.L.C.	DELAWARE
SALEM MALL, LLC	MARYLAND	SALEM MALL
SEAPORT MARKETPLACE THEATRE, LLC	MARYLAND
SEAPORT MARKETPLACE, LLC	MARYLAND
SEVENTY COLUMBIA CORPORATE CENTER LIMITED PARTNERSHIP	MARYLAND	SEVENTY COLUMBIA CORPORATE CENTER
SEVENTY COLUMBIA CORPORATE CENTER, LLC	DELAWARE
SHOPPES AT RIVER CROSSING, LLC	DELAWARE	SHOPPES AT RIVER CROSSING
SIERRA VISTA MALL, LLC	DELAWARE	THE MALL AT SIERRA VISTA
SIKES SENTER, LLC	DELAWARE	SIKES SENTER
SILVER CITY GALLERIA L.L.C.	DELAWARE	SILVER CITY GALLERIA
SILVER LAKE MALL, LLC	DELAWARE	SILVER LAKE MALL
SIXTY COLUMBIA CORPORATE CENTER, LLC	DELAWARE
SOONER FASHION MALL L.L.C.	DELAWARE	SOONER MALL
SOUTH SHORE PARTNERS, L.P.	WASHINGTON	SOUTHSHORE MALL
SOUTH STREET SEAPORT LIMITED PARTNERSHIP	MARYLAND	SOUTH STREET SEAPORT
SOUTHLAKE MALL L.L.C.	DELAWARE	SOUTHLAKE MALL
SOUTHLAND CENTER, LLC	DELAWARE	SOUTHLAND CENTER
SOUTHLAND GP, LLC	DELAWARE
SOUTHLAND MALL, L.P.	DELAWARE	SOUTHLAND MALL
SOUTHPOINT LAND, LLC	DELAWARE

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
SOUTHPOINT MALL, LLC	DELAWARE	THE STREETS AT SOUTHPOINT
SOUTHWEST DENVER LAND L.L.C.	DELAWARE
SOUTHWEST PLAZA L.L.C.	DELAWARE	SOUTHWEST PLAZA
SPOKANE MALL DEVELOPMENT COMPANY LIMITED PARTNERSHIP	UTAH
SPOKANE MALL L.L.C.	DELAWARE	SPOKANE VALLEY PLAZA
SPRING HILL MALL L.L.C.	DELAWARE	SPRING HILL MALL
ST. CLOUD LAND L.L.C.	DELAWARE
ST. CLOUD MALL L.L.C.	DELAWARE	CROSSROADS CENTER
STEEPLEGATE MALL, LLC	DELAWARE	STEEPLEGATE MALL
STONE LAKE, LLC	MARYLAND
STONEBRIAR MALL, LLC	DELAWARE	STONEBRIAR CENTRE
STONESTOWN SHOPPING CENTER HOLDING L.L.C.	DELAWARE
STONESTOWN SHOPPING CENTER L.L.C.	DELAWARE
STONESTOWN SHOPPING CENTER, L.P.	DELAWARE	STONESTOWN
SUMMERLIN CENTRE, LLC	DELAWARE	THE SHOPS AT SUMMERLIN CENTRE
SUMMERLIN CORPORATION	DELAWARE
SUPERSTITION SPRINGS HOLDING, LLC	DELAWARE
SUPERSTITION SPRINGS, INC.	DELAWARE
THC-HRE, LLC	MARYLAND
THE BURLINGTON TOWN CENTER LLC	DELAWARE	BURLINGTON TOWN CENTER
THE HIGHLAND MALL JOINT VENTURE	NEW YORK
THE HOWARD HUGHES COMPANY, LLC	DELAWARE
THE HOWARD RESEARCH AND DEVELOPMENT CORPORATION	MARYLAND
THE HUGHES CORPORATION	DELAWARE
THE LEARNING MALL L.L.C.	DELAWARE
THE MALL IN COLUMBIA BUSINESS TRUST	MARYLAND	THE MALL IN COLUMBIA
THE MALL IN COLUMBIA HOLDING II L.L.C.	DELAWARE
THE MALL IN COLUMBIA HOLDING L.L.C.	DELAWARE
THE ROUSE COMPANY AT OWINGS MILLS, LLC	MARYLAND
THE ROUSE COMPANY BT, LLC	MARYLAND
THE ROUSE COMPANY LP	DELAWARE
THE ROUSE COMPANY OF FLORIDA, LLC	FLORIDA

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
THE ROUSE COMPANY OF GEORGIA, LLC	GEORGIA
THE ROUSE COMPANY OF LOUISIANA, LLC	MARYLAND
THE ROUSE COMPANY OF OHIO, LLC	OHIO
THE ROUSE COMPANY OF TEXAS, LLC	TEXAS
THE ROUSE COMPANY OF WASHINGTON, LLC	MARYLAND
THE ROUSE COMPANY OPERATING PARTNERSHIP LP	DELAWARE
THE ROUSE COMPANY PROTECTIVE TRUST, INC.	DELAWARE
THE VILLAGE OF CROSS KEYS, LLC	MARYLAND
THE WOODLANDS LAND DEVELOPMENT COMPANY, L.P.	TEXAS
THE WOODLANDS MALL ASSOCIATES, LLC	DELAWARE	WOODLANDS MALL, THE
THE WOODLANDS OPERATING COMPANY, L.P.	TEXAS	THE WOODLANDS DEVELOPMENT COMPANY
THREE RIVERS MALL L.L.C.	DELAWARE	THREE RIVERS MALL
TOWN CENTER DEVELOPMENT COMPANY GP, LLC	TEXAS
TOWN CENTER DEVELOPMENT COMPANY, LP	TEXAS
TOWN CENTER EAST BUSINESS TRUST	MARYLAND
TOWN CENTER EAST PARKING LOT BUSINESS TRUST	MARYLAND
TOWN EAST MALL, LLC	DELAWARE	TOWN EAST MALL
TOWSON TC, LLC	MARYLAND	TOWSON TOWN CENTER
TRACY MALL PARTNERS I L.L.C.	DELAWARE
TRACY MALL PARTNERS, L.P.	DELAWARE	WEST VALLEY MALL
TRAILS VILLAGE CENTER COMPANY	NEVADA	TRAILS VILLAGE CENTER
TRC CO-ISSUER, INC.	DELAWARE
TRC PARKING BUSINESS TRUST	MARYLAND
TRI-PARTY MISCELLANEOUS, LLC	DELAWARE
TRI-PARTY NON-856 ASSETS, LLC	DELAWARE
TRS JV HOLDCO, LLC	DELAWARE
TTC MEMBER, LLC	MARYLAND
TTC SPE, LLC	MARYLAND
TUCSON ANCHOR ACQUISITION, LLC	DELAWARE
TWC COMMERCIAL PROPERTIES, LLC	DELAWARE
TWC COMMERCIAL PROPERTIES, LP	DELAWARE
TWC LAND DEVELOPMENT, LLC	DELAWARE

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
TWC LAND DEVELOPMENT, LP	DELAWARE
TWC OPERATING, LLC	DELAWARE
TWC OPERATING, LP	DELAWARE
TWCPC HOLDINGS GP, LLC	TEXAS
TWCPC HOLDINGS, L.P.	TEXAS
TWLDC HOLDINGS GP, LLC	TEXAS
TWLDC HOLDINGS, LP	TEXAS
TWO ARIZONA CENTER, LLC	DELAWARE
TWO OWINGS MILLS CORPORATE CENTER ASSOCIATES LIMITED PARTNERSHIP	MARYLAND	TWO OWINGS MILLS CORPORATE CENTER
TWO OWINGS MILLS CORPORATE CENTER, LLC	MARYLAND
TWO WILLOW COMPANY, LLC	DELAWARE
TYLER MALL LIMITED PARTNERSHIP	DELAWARE	GALLERIA AT TYLER
TYSONS GALLERIA L.L.C.	DELAWARE	TYSONS GALLERIA
UC OAKBROOK GENPAR, LLC	DELAWARE
URBAN SHOPPING CENTERS, LP	ILLINOIS
VALLEY HILLS MALL L.L.C.	DELAWARE	VALLEY HILLS MALL
VALLEY PLAZA ANCHOR ACQUISITION, LLC	DELAWARE
VALLEY PLAZA GP, LLC	DELAWARE
VALLEY PLAZA LAND, LP	DELAWARE
VALLEY PLAZA MALL, LP	DELAWARE	VALLEY PLAZA MALL
VCK BUSINESS TRUST	MARYLAND	THE VILLAGE OF CROSS KEYS
VICTORIA WARD CENTER L.L.C.	DELAWARE	WARD CENTERS
VICTORIA WARD ENTERTAINMENT CENTER L.L.C.	DELAWARE	WARD CENTERS
VICTORIA WARD SERVICES, INC.	DELAWARE	WARD CENTERS
VICTORIA WARD, LIMITED	DELAWARE	WARD CENTERS
VISALIA MALL L.L.C.	DELAWARE
VISALIA MALL, L.P.	DELAWARE	VISALIA MALL
VISTA COMMONS, LLC	DELAWARE	VISTA COMMONS
VISTA RIDGE MALL, LLC	DELAWARE	VISTA RIDGE MALL
VW CONDOMINIUM DEVELOPMENT, LLC	DELAWARE
WARD GATEWAY-INDUSTRIAL-VILLAGE, LLC	DELAWARE
WARD PLAZA-WAREHOUSE, LLC	DELAWARE
WASHINGTON PARK MALL, LLC	DELAWARE	WASHINGTON PARK MALL
WATER TOWER JOINT VENTURE	ILLINOIS

ENTITY:	PLACE OF FORMATION:	DOING BUSINESS AS:
		(If applicable)
WATER TOWER LLC	DELAWARE	WATER TOWER PLACE
WECCR GENERAL PARTNERSHIP	TEXAS
WECCR, INC.	TEXAS
WEST KENDALL HOLDINGS, LLC	MARYLAND	KENDALL TOWN CENTER
WEST OAKS ANCHOR ACQUISITION, LLC	DELAWARE
WEST OAKS MALL TRUST	DELAWARE	WEST OAKS MALL
WESTCOAST ESTATES	CALIFORNIA	NORTHBROOK COURT
WESTLAKE CENTER ASSOCIATES LIMITED PARTNERSHIP	WASHINGTON	WESTLAKE CENTER
WESTLAKE RETAIL ASSOCIATES, LTD.	TEXAS	CIRCLE T RANCH
WESTROADS MALL L.L.C.	DELAWARE	WESTROADS MALL
WESTWOOD MALL, LLC	DELAWARE	WESTWOOD MALL
WHITE MARSH GENERAL PARTNERSHIP	MARYLAND	WHITE MARSH MALL
WHITE MARSH MALL ASSOCIATES	MARYLAND	WHITE MARSH MALL
WHITE MARSH MALL, LLC	DELAWARE
WHITE MARSH PHASE II ASSOCIATES	MARYLAND	WHITE MARSH MALL
WHITE MOUNTAIN MALL, LLC	DELAWARE	WHITE MOUNTAIN MALL
WILLOWBROOK MALL (TX), LLC	DELAWARE	WILLOWBROOK MALL
WILLOWBROOK MALL ANCHOR ACQUISITION (TX), LLC	DELAWARE
WILLOWBROOK MALL HOLDING COMPANY, LLC	DELAWARE
WILLOWBROOK MALL, LLC	DELAWARE	WILLOWBROOK MALL
WINCOPIN RESTAURANT BUSINESS TRUST	MARYLAND
WOODBRIDGE CENTER PROPERTY, LLC	DELAWARE	WOODBRIDGE CENTER
WOODLANDS OFFICE EQUITIES-95, LTD.	TEXAS
WV SUB, LLC	DELAWARE	WHALERS VILLAGE
		THE MAUI ONION FESTIVAL
		WHALERS VILLAGE FINE SHOPS & RESTAURANTS
		WHALERS VILLAGE MUSEUM

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement Nos. 333-07241, 333-28449, 333-74461, 333-105882 and 333-125605 on Form S-8 of our reports dated March 1, 2010, relating to the consolidated financial statements of General Growth Properties, Inc. (Debtor-in-Possession) and subsidiaries (the “Company”) (which report expresses an unqualified opinion on those consolidated financial statements and includes explanatory paragraphs regarding the Company’s bankruptcy proceedings, the Company’s ability to continue as a going concern, and the Company’s change in methods of accounting for noncontrolling interests and convertible debt instruments), the consolidated financial statement schedule of the Company, and the effectiveness of Company’s internal control over financial reporting, appearing in this Annual Report on Form 10-K of General Growth Properties, Inc. for the year ended December 31, 2009.

/s/ Deloitte & Touche LLP

Chicago, Illinois

March 1, 2010

EX-23.2

Exhibit 23.2

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors
General Growth Properties, Inc.:

We consent to the incorporation by reference in the registration statements (Nos. 333-07241, 333-28449, 333-74461, 333-105882 and 333-125605) on Form S-8 of General Growth Properties, Inc. of our report dated February 24, 2010, with respect to the consolidated balance sheets of GGP/Homart II L.L.C. and subsidiaries as of December 31, 2009 and 2008, and the related consolidated statements of income and comprehensive income, changes in capital, and cash flows for each of the years in the three-year period ended December 31, 2009, and our report dated February 24, 2010, with respect to the consolidated balance sheets of GGP — TRS L.L.C. and subsidiaries as of December 31, 2009 and 2008, and the related consolidated statements of income and comprehensive income, changes in members’ capital, and cash flows for each of the years in the three-year period ended December 31, 2009, which reports appear in the December 31, 2009 annual report on Form 10-K of General Growth Properties, Inc.

/s/ KPMG LLP

Chicago, Illinois

March 1, 2010

EX-31.1

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Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002

I, Adam Metz, certify that:

1.

I have reviewed this annual report on Form 10-K of General Growth Properties, Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 1, 2010
	/s/ ADAM METZ Adam Metz Chief Executive Officer

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Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

EX-31.2

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Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302
OF THE SARBANES-OXLEY ACT OF 2002

I, Edmund Hoyt, certify that:

1.

I have reviewed this annual report on Form 10-K of General Growth Properties, Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 1, 2010
	/s/ EDMUND HOYT Adam Metz Senior Vice President and Chief Financial Officer

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Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

EX-32.1

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Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT
TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

        In connection with the Annual Report of General Growth Properties, Inc. (the "Company") on Form 10-K for the period ending December 31, 2009, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Adam Metz, in my capacity as Chief Executive Officer of the Company, do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and



(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ ADAM METZ
Adam Metz
Chief Executive Officer
March 1, 2010

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Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

EX-32.2

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Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT
TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

        In connection with the Annual Report of General Growth Properties, Inc. (the "Company") on Form 10-K for the period ending December 31, 2009, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Edmund Hoyt, in my capacity as Chief Financial Officer of the Company, do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and



(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ EDMUND HOYT
Edmund Hoyt
Chief Financial Officer
March 1, 2010

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Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

EX-99.1

Exhibit 99.1

CONSOLIDATED FINANCIAL STATEMENTS OF THE ROUSE COMPANY LP, A SUBSIDIARY OF GENERAL GROWTH PROPERTIES, INC.

(Debtor-in-Possession)

Under the terms of an Indenture dated as of February 24, 1995, The Rouse Company LP (“TRCLP”) was required to file with the SEC the annual and quarterly reports and other documents which TRCLP would be required to file as if it was subject to Section 13(a) or 15(d) of the Exchange Act, regardless of whether TRCLP was subject to such requirements.  TRCLP is no longer required to file reports or other documents with the SEC under Section 13(a) or 15(d).  Accordingly, in lieu of such filing, certain financial and other information related to TRCLP has been included as this Exhibit 99.1 to the General Growth Properties, Inc.  (“GGP”) Form 10-K.

All references to numbered notes are to specific footnotes to the consolidated financial statements of TRCLP as included in this exhibit.  The descriptions included in such notes are incorporated into the applicable response by reference.  The following discussion should be read in conjunction with such consolidated financial statements and related notes.  The terms “we,” “us,” and “our” in this exhibit may also be used to refer to TRCLP and its subsidiaries.

TRCLP (a Delaware limited partnership) is the successor company to The Rouse Company (“TRC”), which was incorporated as a business corporation under the laws of the State of Maryland in 1956.  TRC was acquired by GGP on November 12, 2004, which resulted in TRCLP becoming a subsidiary of GGP, headquartered in Chicago, Illinois.  GGP, a Delaware corporation, is a self-administered and self-managed Real Estate Investment Trust (“REIT”). GGP and certain of GGP’s domestic subsidiaries, including TRCLP and certain of TRCLP’s subsidiaries, filed for bankruptcy protection under Chapter 11 of Title 11 of the United States Code (“Chapter 11”) in the Southern District of New York (the “Bankruptcy Court”) on April 16, 2009 (the “Petition Date”).

Management’s Summary

We operate our business in two segments: the Retail and Other segment and the Master Planned Communities segment.  Our primary business (our Retail and Other segment) includes the operation, development and management of retail and other rental properties, primarily shopping centers.  We also develop and sell land for residential, commercial and other uses in long term community development projects (our Master Planned Communities segment).

Our Retail and Other segment includes retail or mixed-use centers, and office buildings (the “Consolidated Retail Properties”) and interests in retail or mixed-use properties, and office buildings through investments in Unconsolidated Real Estate Affiliates (the “Unconsolidated Retail Properties”).  For the purposes of this exhibit, the Consolidated Retail Properties and the Unconsolidated Retail Properties are collectively referred to as our “Operating Property Portfolio.”

Our Master Planned Communities segment includes the development and sale of residential and commercial land, primarily in large-scale projects in and around Columbia, Maryland; Summerlin, Nevada; and Houston, Texas.  In addition, our Master Planned Communities segment includes our interest in The Woodlands, a master planned community in the Houston, Texas metropolitan area.  This project is managed by our joint venture partner and is classified within our Unconsolidated Real Estate Affiliates.  Reference is made to Notes 2 and 5 for a further discussion of our investments in Unconsolidated Real Estate Affiliates.

We generally make all key strategic decisions for our Consolidated Retail Properties.  However, in connection with the Unconsolidated Retail Properties, such strategic decisions are made with the respective stockholders, members or joint venture partners.  GGP is also the asset manager for most of the Operating Property Portfolio, executing the strategic decisions and overseeing the day-to-day property management functions, including operations, leasing, construction management, maintenance, accounting, marketing and promotional services.  With respect to jointly owned properties, we generally conduct the management activities through one of our taxable REIT subsidiaries (“TRS”).

Debtors in Possession

In the fourth quarter of 2008 we halted or slowed nearly all development and redevelopment projects other than those that were substantially complete, could not be deferred as a result of contractual commitments, and joint

T-1

venture projects. As we had significant past due, or imminently due, and cross-collateralized or cross-defaulted debt on the Petition Date, GGP and certain of GGP’s domestic subsidiaries, including TRCLP and certain of TRCLP’s subsidiaries, filed voluntary petitions for relief under Chapter 11.  On April 22, 2009, certain additional domestic subsidiaries of GGP and TRCLP’s (collectively with subsidiaries filing on the Petition Date, the “Debtors”) also filed voluntary petitions for relief in the Bankruptcy Court (collectively, the “Chapter 11 Cases”) which the Bankruptcy Court has ruled may be jointly administered.  However, neither GGMI, certain of GGP’s wholly-owned subsidiaries, nor any of our joint ventures, (collectively, the “Non-Debtors”) either consolidated or unconsolidated, have sought such protection.

In the aggregate, the Debtors own and operate 166 of the more than 200 regional shopping centers that GGP owns and manages, of which 42 are indirectly wholly-owned by TRCLP.  In addition, through certain of its wholly-owned subsidiaries, TRCLP owns a noncontrolling interest in GGPLP L.L.C., which owns 85 regional shopping centers.  The Non-Debtors are continuing their operations and are not subject to the requirements of Chapter 11.  Pursuant to Chapter 11, a debtor is afforded certain protection against its creditors and creditors are prohibited from taking certain actions (such as pursuing collection efforts or proceeding to foreclose on secured obligations) related to debts that were owed prior to the commencement of the Chapter 11 Cases.  Accordingly, although the commencement of the Chapter 11 Cases triggered defaults on substantially all debt obligations of the Debtors, creditors are stayed from taking any action as a result of such defaults.  Absent an order of the Bankruptcy Court, these pre-petition liabilities are subject to settlement under a plan of reorganization.

Since the Petition Date, the Bankruptcy Court has granted a variety of Debtors motions that allow the Company to continue to operate its business in the ordinary course without interruption; and covering, among other things, employee obligations, critical service providers, tax matters, insurance matters, tenant and contractor obligations, claim settlements, ordinary course property sales, cash management, cash collateral alternative dispute resolution, settlement of pre-petition mechanics liens and department store transactions.  The Bankruptcy Court has also approved the Debtors’ request to enter into a post-petition financing arrangement (the “DIP Facility”).

During December 2009 and January 2010, 231 Debtors (the “Track 1 Debtors”) owning 119 properties with approximately $12.33 billion of secured mortgage debt filed consensual plans of reorganization (the “Track 1 Plans”) with the Bankruptcy Court.  TRCLP indirectly wholly owns 32 Track 1 Debtor operating properties through 68 Debtors with approximately $3.74 billion of secured mortgage debt.  As of December 31, 2009, 113 Debtors owning 50 properties with approximately $4.65 billion of secured mortgage debt restructured such debt and emerged from bankruptcy (the “Track 1A Debtors”).  Included in the Track 1A Debtors were 35 TRCLP Debtors owning 16 properties with approximately $1.63 billion of secured debt.  Effectiveness of the plans of reorganization and emergence from bankruptcy of the remaining Track 1 Debtors (the “Track 1B Debtors”) continued through February 2010 and is expected to be completed in the first quarter of 2010.  In such regard, through March 1, 2010, an additional 92 Debtors owning 57 properties with approximately $5.98 billion of secured mortgage debt emerged from bankruptcy.  Included in that number were 18 TRCLP Debtors owning eight properties with approximately $1.0 billion of secured mortgage debt. The Chapter 11 Cases for the remaining Debtors (generally, GGP, GGPLP and other holding company or investment subsidiaries, including TRCLP, (the “TopCo Debtors”) which own certain individual or groups of properties but also certain operating property Debtors, (collectively, the “2010 Track Debtors”)) will continue until their respective plans of reorganization are filed with the Bankruptcy Court, approved by the applicable classes of creditors and confirmed by the Bankruptcy Court.

GGP is continuing to pursue consensual restructurings for 31 Debtors (the “Remaining Secured Debtors”) with secured loans aggregating $2.50 billion. Of the Remaining Secured Debtors, seven are within TRCLP with secured loans aggregating $1.31 billion.

As described above, we have received legal protection from our creditors pursuant to the Chapter 11 Cases. This protection is limited in duration and the 2010 Track Debtors are currently negotiating the terms of a reorganization plan with our lenders and other stakeholders which is expected to require significant additional equity capital.  The Track 1 Plans are a key component of the plan of reorganization currently being developed.  To that end, we had the exclusive right to file a plan of reorganization for the 2010 Track Debtors until February 26, 2010.  We filed a motion to extend the exclusivity period until August 26, 2010 and, if we file a plan of reorganization by that date, we would have until October 26, 2010 to obtain necessary acceptances of our plan.  The Bankruptcy Court has entered a bridge order extending the exclusivity period through and including the seventh day, and extending the period for us to obtain necessary acceptances of our filed plan through and including the sixty-seventh day, following the date an order regarding our extension motion is entered by the Bankruptcy Court.  The Bankruptcy Court hearing on our motion to extend the exclusivity period is currently scheduled for March 3, 2010.

T-2

If we do not file a plan of reorganization for the 2010 Track Debtors prior to the lapse of the exclusivity period, any party in interest would be able to file a plan of reorganization for any of the 2010 Track Debtors.

Our potential inability to negotiate and obtain confirmation of a mutually agreeable plan of reorganization for the 2010 Track Debtors and to address our remaining future debt maturities raise substantial doubt as to our ability to continue as a going concern. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. However, as a result of the Chapter 11 Cases, such realization of assets and satisfaction of liabilities are subject to a significant number of uncertainties. Our consolidated financial statements do not reflect any adjustments related to the recoverability of assets and satisfaction of liabilities that might be necessary should we be unable to continue as a going concern.

Overview

During 2008, we obtained approximately $1.6 billion of consolidated debt through new financings and refinancings. Proceeds from the issuances were used, in part, to repay approximately $1.2 billion of debt.

During 2008, in four separate transactions, we sold three office buildings and two office parks consisting of eight office buildings for an aggregate purchase price of approximately $145 million, including debt assumed of approximately $84 million, resulting in an aggregate gain of approximately $55.0 million.

Based on the results of our evaluations for impairment (Note 2), we recognized an impairment charge related to allocated goodwill of $140.6 million in 2009. We also recognized impairment charges of $419.7 million throughout 2009 related to the write down of operating properties and development costs that were determined to be non-recoverable due to the related projects being terminated.  We recognized similar impairment charges for goodwill and pre-development projects in the amount of $32.8 and $5.4 million, respectively in 2008. We recorded impairment charges of $127.6 million in 2007 related to our Columbia and Fairwood properties in our master planned communities segment and recognized impairment on pre-development projects in the amount of $0.9 million in 2007.

In 2008, we reached final settlements with the remaining insurance carriers related to our claim for incurred hurricane and/or vandalism damage in Louisiana.  The settlement was for the third and final layer of insurance coverage at our Oakwood Center property pursuant to which we received a cumulative total of approximately $38 million, of which approximately $12.0 million was considered business interruption revenue or recovery of previously incurred expenses and approximately $26 million was recovery of incurred property damages.

Effective March 31, 2007, through a series of transactions, a private REIT owned by General Growth Properties Limited Partnership (“GGPLP”) was contributed to TRCLP and that additional TRS became a qualified REIT subsidiary of that private REIT (“the Private REIT/TRS Restructuring”).  This Private REIT/TRS Restructuring resulted in approximately a $328.4 million decrease in our net deferred tax liabilities, an approximate $7.4 million increase in our current taxes payable and an approximate $321.0 million income tax benefit related to the properties now owned by the private REIT.

Management’s Discussion of TRCLP Operations and Liquidity

Revenues

Tenant rents (which includes minimum rents, tenant recoveries, and overage rents) decreased by $65.2 million in 2009 due primarily to a $35.8 million decrease in minimum rents, of which $5.5 million was due to the sale of three office buildings and two office parks in 2008; an aggregate of a $17.1 million decrease in tenant recoveries; and a $12.3 million decrease in overage rents, due to lower occupancies and other general declines in economic conditions in 2009.  Land sales revenues decreased by $20.6 million in 2009 due primarily to reductions in sales volume at our Summerlin and Columbia residential communities.  These reductions were partially offset by a bulk lot sale at Fairwood of approximately $15.0 million.

Operating expenses

Operating expenses increased by $487.3 million due primarily to the increases in provisions for impairment recognized in 2009 as compared to 2008.  See Note 2 for a detailed description of the provisions for impairment that we recognized in 2009, 2008 and 2007. These increases were partially offset by decreases in other property operating costs.

T-3

Interest Expense

The decrease in interest expense is primarily due to the lower average debt balances for 2009 compared to 2008 that was primarily the result of multi property financing and/or re-financings and extensions in the second half of 2008.

Benefit from (provision for) income taxes

The increase in benefit from (provision for) income taxes for 2009 was primarily attributable to tax benefits related to the land impairments mentioned above.

Equity in income of unconsolidated real estate affiliates

The decrease in equity in income of unconsolidated real estate affiliates is primarily due to a net loss at GGPLP, LLC, in which TRCLP has a 9.3% ownership interest, for 2009, and a significant decrease in land sales at our Woodlands Partnership joint venture for 2009 compared to 2008.

Reorganization Items

Reorganization items under the Chapter 11 Cases are expense or income items that were incurred or realized by the Debtors as a result of the Chapter 11 Cases and are presented separately in the consolidated statements of income and comprehensive income. These items include professional fees and similar types of expenses directly related to the bankruptcy filings, loss accruals or gains or losses resulting from activities of the reorganization process, and interest earned on cash accumulated by the Debtors as a result of the Chapter 11 cases.  However, for the year ended December 31, 2009, this amount primarily reflects only gains or losses resulting from activities of the reorganization process, the gains resulting from agreements reached with certain critical vendors which were ratified by the Bankruptcy Court and for which payments on an installment basis began in July 2009, all of which are specifically identifiable with individual properties.  Trustee fees have been paid by individual debtors. Any other allocations of costs have not been made to individual debtors as all other costs remain subject to Bankruptcy Court approval.

Cash position and liquidity at December 31, 2009

TRCLP’s cash and cash equivalents increased $22.2 million to $47.6 million as of December 31, 2009. The cash position of TRCLP is largely determined at any point in time by the relative short-term demands for cash by TRCLP and GGP.

GGP is continuing to pursue consensual restructurings of the remaining secured mortgage debt to extend the maturity dates and is prepared to pursue a non-consensual solution if necessary. GGP is commencing a process to explore all potential alternatives for emergence to the TopCo Debtors. A stand alone restructuring of the TopCo Debtors is currently estimated to require approximately $1.5 billion of new capital. This new capital requirement is a current estimate, subject to change, and is based upon a number of assumptions that are also subject to change. Such assumptions include, but are not limited to, repayment of the DIP Facility in cash, conversion of amounts outstanding under GGP’s 2006 Credit Facility, the GGPLP Exchangeable Notes and the TRCLP bonds to GGP equity, sale or give back of the Special Consideration Properties and payment of the dividend to GGP stockholders in a combination of 90% stock and 10 % cash through 2011.

Our ability to continue as a going concern, as described in Note 1, is dependent upon our ability to restructure our debt and complete plans of reorganization for the 2010 Track Debtors.

T-4

THE ROUSE COMPANY LP

A SUBSIDIARY OF GENERAL GROWTH PROPERTIES, INC.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND

CONSOLIDATED FINANCIAL STATEMENT SCHEDULE

		Page
		Number
Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm		T-6
Consolidated Balance Sheets as of December 31, 2009 and 2008		T-7
Consolidated Statements of Operations and Comprehensive Income for the Years Ended December 31, 2009, 2008 and 2007		T-8
Consolidated Statements of Capital for the Years Ended December 31, 2009, 2008 and 2007		T-9
Consolidated Statements of Cash Flows for the Years Ended December 31, 2009, 2008 and 2007		T-10
Notes to Consolidated Financial Statements		T-12
Note 1	Organization	T-12
Note 2	Summary of Significant Accounting Policies	T-14
Note 3	Intangible Assets and Liabilities	T-24
Note 4	Discontinued Operations and Gains (Losses) on Dispositions of Interests in Operating Properties	T-24
Note 5	Unconsolidated Real Estate Affiliates	T-25
Note 6	Mortgages, Notes and Loans Payable	T-28
Note 7	Income Taxes	T-29
Note 8	Rentals Under Operating Leases	T-32
Note 9	Other Assets and Liabilities	T-33
Note 10	Commitments and Contingencies	T-33
Note 11	Recently Issued Accounting Pronouncements	T-34

T-5

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners of

The Rouse Company LP

Chicago, Illinois

We have audited the accompanying consolidated balance sheets of The Rouse Company LP (Debtor-in-Possession) and subsidiaries (the “Company”) as of December 31, 2009 and 2008, and the related consolidated statements of operations and comprehensive income, capital, and cash flows for each of the three years in the period ended December 31, 2009.  These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.  Accordingly, we express no such opinion.  An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of The Rouse Company LP and subsidiaries as of December 31, 2009 and 2008, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2009, in conformity with accounting principles generally accepted in the United States of America.

As discussed in Note 2 to the consolidated financial statements, on January 1, 2009, the Company changed its method of accounting for noncontrolling interests and retrospectively adjusted all periods presented in the consolidated financial statements.

As discussed in Note 1 to the consolidated financial statements, the Company has filed for reorganization under Chapter 11 of the United States Bankruptcy Code. The accompanying financial statements do not purport to reflect or provide for the consequences of the bankruptcy proceedings. In particular, such financial statements do not purport to show (a) as to assets, their realizable value on a liquidation basis or their availability to satisfy liabilities; (b) as to prepetition liabilities, the amounts that may be allowed for claims or contingencies, or the status and priority thereof; (c) as to capital accounts, the effect of any changes that may be made in the capitalization of the Company; or (d) as to operations, the effect of any changes that may be made in its business.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  The Company’s potential inability to negotiate and obtain confirmation of a mutually agreeable plan of reorganization and to address their remaining future debt maturities raise substantial doubt about the Company’s ability to continue as a going concern.  Management’s plans concerning these matters are also discussed in Note 1 to the consolidated financial statements.  The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ Deloitte & Touche LLP

Chicago, Illinois

March 1, 2010

T-6

THE ROUSE COMPANY, L.P. AND SUBSIDIARIES

A SUBSIDIARY OF GENERAL GROWTH PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

	December 31,
	2009			2008
	(Dollars in thousands)
Assets:
Investment in real estate:
Land	$	1,573,186		$	1,584,843
Buildings and equipment	11,013,828			11,086,224
Less accumulated depreciation	(1,770,819		)	(1,595,974		)
Developments in progress	116,205			476,472
Net property and equipment	10,932,400			11,551,565
Investment in and loans to/from Unconsolidated Real Estate Affiliates	1,559,886			1,470,328
Investment land and land held for development and sale	1,678,811			1,698,405
Net investment in real estate	14,171,097			14,720,298
Cash and cash equivalents	47,610			25,411
Accounts and notes receivable, net	163,421			154,578
Goodwill	199,664			340,291
Deferred expenses, net	130,765			135,556
Prepaid expenses and other assets	586,561			606,589
Total assets	$	15,299,118		$	15,982,723
Liabilities and Capital:
Liabilities not subject to compromise:
Mortgages, notes and loans payable	$	3,246,724		$	9,697,848
Investment in and loans to/from Unconsolidated Real Estate Affiliates	24,394			25,048
Deferred tax liabilities	856,747			861,399
Accounts payable and accrued expenses	395,066			570,473
Liabilities not subject to compromise	4,522,931			11,154,768
Liabilities subject to compromise	6,561,081			—
Total liabilities	11,084,012			11,154,768
Capital:
Partners’ capital	8,523,981			9,028,681
Accumulated other comprehensive loss	—			(418		)
Receivable from General Growth Properties, Inc.	(4,329,594		)	(4,220,504		)
Partners’ capital attributable to General Growth Properties, Inc.	4,194,387			4,807,759
Noncontrolling interests in Consolidated Real Estate Affiliates	20,719			20,196
Total capital	4,215,106			4,827,955
Total liabilities and capital	$	15,299,118		$	15,982,723

The accompanying notes are an integral part of these consolidated financial statements.

T-7

THE ROUSE COMPANY, L.P. AND SUBSIDIARIES

(Debtor-in-Possession)

A SUBSIDIARY OF GENERAL GROWTH PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

	Years ended December 31,
	2009			2008			2007
	(Dollars in thousands)
Revenues:
Minimum rents	$	845,335		$	881,150		$	878,975
Tenant recoveries	379,118			396,242			395,118
Overage rents	22,126			34,377			41,804
Land sales	45,997			66,557			145,649
Other	42,052			58,152			60,452
Total revenues	1,334,628			1,436,478			1,521,998
Expenses:
Real estate taxes	119,918			113,297			108,608
Repairs and maintenance	100,727			99,611			103,005
Marketing	13,512			16,192			22,042
Other property operating costs	199,441			211,977			219,134
Land sales operations	49,083			63,441			116,708
Provision for doubtful accounts	14,831			5,241			2,287
Property management and other costs	48,898			65,483			63,600
Provisions for impairment	560,353			38,174			128,480
Depreciation and amortization	335,427			341,451			336,071
Total expenses	1,442,190			954,867			1,099,935
Operating (loss) income	(107,562		)	481,611			422,063
Interest income	8,712			12,027			3,673
Interest expense	(500,131		)	(512,773		)	(443,520		)
Loss before income taxes, noncontrolling interests, equity in income of Unconsolidated Real Estate Affiliates, and reorganization items	(598,981		)	(19,135		)	(17,784		)
Benefit from (provision for) income taxes	21,213			(17,555		)	307,181
Equity in income of Unconsolidated Real Estate Affiliates	6,282			59,618			107,174
Reorganization items	69,203			—			—
(Loss) income from continuing operations	(502,283		)	22,928			396,571
(Loss) income from discontinued operations	(1,149		)	55,044			—
Net (loss) income	(503,432		)	77,972			396,571
Allocation to noncontrolling interests	(908		)	(1,451		)	(1,355		)
Net (loss) income attributable to General Growth Properties, Inc.	$	(504,340	)	$	76,521		$	395,216
Comprehensive (loss) income, net:
Net (loss) income	$	(503,432	)	$	77,972		$	396,571
Other comprehensive income:
Unrealized losses on available-for-sale securities	—			(7		)	(44		)
Net unrealized losses on financial instruments	—			8			(366		)
Other comprehensive income (loss)	—			1			(410		)
Comprehensive (loss) income allocated to noncontrolling interests	(908		)	(1,451		)	(1,355		)
Comprehensive (loss) income, net attributable to General Growth Properties, Inc.	$	(504,340	)	$	76,522		$	394,806

The accompanying notes are an integral part of these consolidated financial statements.

T-8

THE ROUSE COMPANY, L.P. AND SUBSIDIARIES

(Debtor-in-Possession)

A SUBSIDIARY OF GENERAL GROWTH PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF CAPITAL

(Dollars in thousands)

	Partners’ Capital			Accumulated other comprehensive loss			Receivable from General Growth Properties, Inc.			Noncontrolling Interests in Consolidated Real Estate Affiliates			Total Capital
Balance at December 31, 2006 (as previously reported)	$	8,438,399		$	(9	)	$	(3,603,297	)	$	—		$	4,835,093
Cumulative effect of change in accounting principles	—			—			—			5,798			5,798
Balance at January 1, 2007	8,438,399			(9		)	(3,603,297		)	5,798			4,840,891
Net income	395,216			—			—			1,355			396,571
Other comprehensive loss	—			(410		)	—			—			(410		)
Receivable from General Growth Properties, Inc.	—			—			(411,987		)	—			(411,987		)
Capital contribution from GGPLP	100,000			—			—			—			100,000
Tax benefit from stock options	763			—			—			—			763
Contributions to (distributions from) noncontrolling interests in Consolidated Real Estate Affiliates	—			—			—			(3,170		)	(3,170		)
Balance at December 31, 2007	$	8,934,378		$	(419	)	$	(4,015,284	)	$	3,983		$	4,922,658
Net income	76,521			—			—			1,451			77,972
Other comprehensive income	—			1			—			—			1
Receivable from General Growth Properties, Inc.	—			—			(205,220		)	—			(205,220		)
Contribution from General Growth Properties, Inc.	18,000			—			—			—			18,000
Tax expense from stock options	(218		)	—			—			—			(218		)
Contributions to (distributions from) noncontrolling interests in Consolidated Real Estate Affiliates	—			—			—			14,762			14,762
Balance at December 31, 2008	$	9,028,681		$	(418	)	$	(4,220,504	)	$	20,196		$	4,827,955
Net (loss) income	(504,340		)	—			—			908			(503,432		)
Other comprehensive income	—			418			—			—			418
Receivable from General Growth Properties, Inc.	—			—			(109,090		)	—			(109,090		)
Contributions to (distributions from) noncontrolling interests in Consolidated Real Estate Affiliates	(360		)	—			—			(385		)	(745		)
Balance at December 31, 2009	$	8,523,981		$	—		$	(4,329,594	)	$	20,719		$	4,215,106

T-9

THE ROUSE COMPANY, L.P. AND SUBSIDIARIES

(Debtor-in-Possession)

A SUBSIDIARY OF GENERAL GROWTH PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Years ended December 31,
	2009			2008			2007
	(Dollars in thousands)
Cash flows from operating activities:
Net (loss) income	$	(503,432	)	$	77,972		$	396,571
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	335,427			341,451			336,071
Equity in income of Unconsolidated Real Estate Affiliates	(6,282		)	(59,618		)	(107,174		)
Distributions received from Unconsolidated Real Estate Affiliates	19,803			30,702			75,804
Loss (gain) on dispositions	1,149			(55,044		)	—
Provisions for impairment	560,353			38,174			127,600
Participation expense pursuant to Contingent Stock Agreement	(4,947		)	2,849			31,884
Land development and acquisition expenditures	(57,890		)	(104,591		)	(173,989		)
Cost of land sales	22,019			24,516			48,794
Provision for doubtful accounts	14,831			5,241			2,287
Deferred income taxes, including tax restructuring benefit	(13,963		)	4,429			(375,285		)
Straight-line rent amortization	(11,210		)	(13,349		)	(14,044		)
Amortization of intangibles other than in-place leases	4,426			3,194			2,182
Amortization of debt market rate adjustment and other non-cash interest expense	1,767			2,562			(29,508		)
Reorganization items - financing costs related to emerged entities	26,171			—			—
Non-cash reorganization items	(96,353		)	—			—
Net changes:
Accounts and notes receivable	(12,608		)	9,198			(17,880		)
Other assets	1,759			(9,904		)	23,100
Accounts payable and accrued expenses	164,184			(23,967		)	(34,445		)
Other, net	11,338			(4,166		)	23,986
Net cash provided by operating activities	456,542			269,649			315,954
Cash flows from investing activities:
Development of real estate and property additions/improvements	(102,768		)	(407,698		)	(307,514		)
Proceeds from sales of investment properties	6,418			72,958			500
Distributions received from Unconsolidated Real Estate Affiliates in excess of income	16,071			11,589			110,326
Increase in investments in Unconsolidated Real Estate Affiliates	(119,781		)	(75,695		)	(20,332		)
Decrease (increase) in restricted cash	5,215			(6,429		)	3,627
Other, net	(4,725		)	20,282			22,805
Net cash used in investing activities	(199,570		)	(384,993		)	(190,588		)

T-10

THE ROUSE COMPANY, L.P. AND SUBSIDIARIES

(Debtor-in-Possession)

A SUBSIDIARY OF GENERAL GROWTH PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Years ended December 31,
	2009			2008			2007
	(Dollars in thousands)
Cash flows from financing activities:
Proceeds from issuance of mortgages, notes and loans payable	—			1,590,783			846,000
Proceeds from issuance of notes payable to General Growth Properties, Inc.	86,059			—			—
Principal payments on mortgages, notes and loans payable	(185,073		)	(1,246,027		)	(689,711		)
Advances to General Growth Properties, Inc.	(109,090		)	(220,753		)	(418,797		)
Capital contribution from GGPLP	—			18,000			100,000
Deferred financing costs	(909		)	(39,138		)	(1,811		)
Financing costs related to emerged entities	(26,171		)	—			—
(Distributions to) contributions from noncontrolling interests	(745		)	14,762			(2,255		)
Other, net	1,156			(551		)	(529		)
Net cash (used in) provided by financing activities	(234,773		)	117,076			(167,103		)
Net change in cash and cash equivalents	22,199			1,732			(41,737		)
Cash and cash equivalents at beginning of period	25,411			23,679			65,416
Cash and cash equivalents at end of period	$	47,610		$	25,411		$	23,679
Supplemental disclosure of cash flow information:
Interest paid	$	405,473		$	551,947		$	533,594
Interest capitalized	42,534			41,359			54,799
Income taxes paid	7,545			37,028			89,455
Reorganization items paid	27,150			—			—
Non-Cash Transactions:
Change in accrued capital expenditures incurred in accounts payable and accrued expenses	$	(7,834	)	$	25,595		$	(16,001	)
Recognition of note payable in conjunction with land held for development and sale	6,520			—			—
Assumption of debt by purchaser in conjunction with sale of office buildings	—			84,000			2,623
Tax benefit (expense) related to nonqualified stock options excercised	—			(218		)	763
Debt market rate adjustment related to emerged entities	93,438			—			—

T-11

The Rouse Company L.P.  and Subsidiaries

(Debtor-in-Possession)

A Subsidiary of General Growth Properties, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1ORGANIZATION

General

The Rouse Company LP (the successor to The Rouse Company) (“TRC”), (“we,” “TRCLP” or “us”) is a limited partnership and subsidiary of General Growth Properties, Inc (“GGP”).  Through our subsidiaries and affiliates, we operate, develop and manage retail and other rental properties located throughout the United States and develop and sell land for residential, commercial and other uses primarily in long-term master planned communities.  The operating properties consist primarily of regional shopping centers, but also include festival market places, urban mixed-use centers, and office and industrial buildings.  The retail centers are primarily regional shopping centers in suburban market areas, but also include specialty marketplaces in certain downtown areas and several community retail centers.  The office and industrial properties are located primarily in the Baltimore-Washington and Las Vegas markets or are components of large-scale mixed-use properties (which include retail, parking and other uses) located in other urban markets.  Land development and sales operations are predominantly related to large scale, long-term community development projects in and around Columbia, Maryland; Summerlin, Nevada; and Houston, Texas.

In this report, we refer to our ownership interests in majority owned or controlled properties as “Consolidated Properties,” to our ownership interests in joint ventures in which we own a non-controlling interest as “Unconsolidated Real Estate Affiliates” and the properties owned by such joint ventures as the “Unconsolidated Properties.” Our “Company Portfolio” includes both our Consolidated Properties and our Unconsolidated Properties.

Debtors in Possession

In the fourth quarter of 2008 we halted or slowed nearly all development and redevelopment projects other than those that were substantially complete, could not be deferred as a result of contractual commitments, and joint venture projects. As we had significant past due, or imminently due, and cross-collateralized or cross-defaulted debt on April 16, 2009, (the “Petition Date”), GGP and certain of GGP’s domestic subsidiaries, including TRCLP and certain of TRCLP’s subsidiaries, filed voluntary petitions for relief under Chapter 11.  On April 22, 2009, certain additional domestic subsidiaries (collectively with the subsidiaries filing on the Petition Date, the “Debtors”) of GGP and TRCLP also filed voluntary petitions for relief in the Bankruptcy Court (collectively, the “Chapter 11 Cases”) which the Bankruptcy Court has ruled may be jointly administered.  However, neither GGMI, certain of our wholly-owned subsidiaries, nor any of our joint ventures, (collectively, the “Non-Debtors”) either consolidated or unconsolidated, have sought such protection.

In the aggregate, the Debtors own and operate 166 of the more than 200 regional shopping centers that GGP owns and manages, of which 42 are indirectly wholly-owned by TRCLP.  In addition, through certain of its wholly-owned subsidiaries, TRCLP owns a noncontrolling interest in GGPLP L.L.C., which owns 85 regional shopping centers.  The Non-Debtors are continuing their operations and are not subject to the requirements of Chapter 11.  Pursuant to Chapter 11, a debtor is afforded certain protection against its creditors and creditors are prohibited from taking certain actions (such as pursuing collection efforts or proceeding to foreclose on secured obligations) related to debts that were owed prior to the commencement of the Chapter 11 Cases.  Accordingly, although the commencement of the Chapter 11 Cases triggered defaults on substantially all debt obligations of the Debtors, creditors are stayed from taking any action as a result of such defaults.  Absent an order of the Bankruptcy Court, these pre-petition liabilities are subject to settlement under a plan of reorganization.

Since the Petition Date, the Bankruptcy Court has granted a variety of Debtors’ motions that allow the Company to continue to operate its business in the ordinary course without interruption; and covering, among other things, employee obligations, critical service providers, tax matters, insurance matters, tenant and contractor obligations, claim settlements, ordinary course property sales, cash management, cash collateral alternative dispute resolution, settlement of pre-petition mechanics liens and authorization to enter into certain other ordinary course agreements.  The Bankruptcy Court has also approved the Debtors’ request to enter into a post-petition financing arrangement (the “DIP Facility”).

T-12

During December 2009 and January 2010, 231 Debtors (the “Track 1 Debtors”) owning 119 properties with approximately $12.33 billion of secured mortgage loans filed consensual plans of reorganization (the “Track 1 Plans”).  TRCLP indirectly wholly owns 32 Track 1 Debtor operating properties through 68 Debtors with approximately $3.74 billion of secured mortgage loans.  As of December 31, 2009, 113 Debtors owning 50 properties with approximately $4.65 billion of secured debt restructured such debt and emerged from bankruptcy (the “Track 1A Debtors”).  Included in the Track 1A Debtors were 35 TRCLP Debtors owning 16 properties with approximately $1.63 billion of secured debt.  Effectiveness of the plans of reorganization and emergence from bankruptcy of the remaining Track 1 Debtors (the “Track 1B Debtors”) continued through February 2010 and is expected to be completed in the first quarter of 2010.  In such regard, through March 1, 2010, an additional 92 Debtors owning 57 properties with approximately $5.98 billion of secured mortgage debt emerged from bankruptcy.  Included in that number were 18 TRCLP Debtors owning eight properties with approximately $1.0 billion of secured mortgage debt. The Chapter 11 Cases for the remaining Debtors (generally, GGP, GGPLP and other holding company or investment subsidiaries, including TRCLP, (the “TopCo Debtors”) which own certain individual or groups of properties but also certain operating property Debtors, (collectively, the “2010 Track Debtors”)) will continue until their respective plans of reorganization are filed with the Bankruptcy Court, approved by the applicable classes of creditors and confirmed by the Bankruptcy Court.

GGP is continuing to pursue consensual restructurings for 31 Debtors (the “Remaining Secured Debtors”) with secured loans aggregating $2.50 billion. Of the Remaining Secured Debtors, seven are within TRCLP with secured loans aggregating $1.31 billion.

As described above, we have received legal protection from our creditors pursuant to the Chapter 11 Cases. This protection is limited in duration and the 2010 Track Debtors are currently negotiating the terms of a reorganization plan with our lenders and other stakeholders which is expected to require significant additional equity capital.  The Track 1 Plans are a key component of the plan of reorganization currently being developed.  To that end, we had the exclusive right to file a plan of reorganization for the 2010 Track Debtors until February 26, 2010.  We filed a motion with the Bankruptcy Court to extend the exclusivity period until August 26, 2010 and, if we file a plan of reorganization by that date, we would have until October 26, 2010 to obtain necessary acceptances of our plan.  The Bankruptcy Court has entered a bridge order extending the exclusivity period through and including the seventh day, and extending the period for us to obtain necessary acceptances of our filed plan through and including the sixty-seventh day, following the date an order regarding our extension motion is entered by the Bankruptcy Court. The Bankruptcy Court hearing on our motion to extend the exclusivity period is currently scheduled for March 3, 2010.  If we do not file a plan of reorganization for the 2010 Track Debtors prior to the lapse of the exclusivity period, any party in interest would be able to file a plan of reorganization for any of the 2010 Track Debtors.

Our potential inability to negotiate and obtain confirmation of a mutually agreeable plan of reorganization for the 2010 Track Debtors and to address our remaining future debt maturities raise substantial doubt as to our ability to continue as a going concern. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. However, as a result of the Chapter 11 Cases, such realization of assets and satisfaction of liabilities are subject to a significant number of uncertainties. Our consolidated financial statements do not reflect any adjustments related to the recoverability of assets and satisfaction of liabilities that might be necessary should we be unable to continue as a going concern.

Private REIT/TRS Restructuring

Effective March 31, 2007, through a series of transactions, a private REIT owned by General Growth Properties Limited Partnership (“GGPLP”), a subsidiary of GGP, was contributed to TRCLP and that additional TRS became a qualified REIT subsidiary of that private REIT (“the Private REIT/TRS Restructuring”).  This Private REIT/TRS Restructuring resulted in approximately a $328.4 million decrease in our net deferred tax liabilities, an approximate $7.4 million increase in our current taxes payable and an approximate $321.0 million income tax benefit related to the properties now owned by the private REIT

T-13

NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of TRCLP, its subsidiaries and joint ventures in which it has a controlling interest.  For consolidated joint ventures, the noncontrolling partner’s share of the assets, liabilities and operations of the joint venture (generally computed as the joint venture partner’s ownership percentage) is included in Noncontrolling Interest in Consolidated Real Estate Affiliates as a permanent element of capital.  All significant intercompany balances and transactions have been eliminated.

Reclassifications and Adoption of New Accounting Pronouncements

Certain amounts in the 2008 and 2007 consolidated financial statements have been reclassified to conform to the current period presentation. In addition, as of January 1, 2009 we adopted the following accounting pronouncement that required retrospective application, in which all periods presented reflect the necessary changes.

As of January 1, 2009, we adopted a new generally accepted accounting principle related to noncontrolling interests in consolidated financial statements, which changed the reporting for minority interests in our consolidated joint ventures by re-characterizing them as noncontrolling interests and re-classifying such minority interests as a component of permanent partners’ capital in our consolidated balance sheets. These principles also changed the presentation of the income allocated to minority interests by re-characterizing it as allocations to noncontrolling interests and re-classifying such income as an adjustment to net income to arrive at net income attributable to General Growth Properties, Inc.

As of June 30, 2009, we adopted a new generally accepted accounting principle related to subsequent events which provides guidance on our assessment of subsequent events. The new standard clarifies that we must evaluate, as of each reporting period, events or transactions that occur after the balance sheet date through the date that the financial statements are issued. We performed our assessment of subsequent events and all material events or transactions since December 31, 2009 have been integrated into our disclosures in the accompanying consolidated financial statements.

Accounting for Reorganization

The accompanying consolidated financial statements and the combined condensed financial statements of TRCLP Debtors presented below have been prepared in accordance with the generally accepted accounting principles related to financial reporting by entities in reorganization under the Bankruptcy Code, and on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  Such accounting guidance also provides that if a debtor, or group of debtors, has significant combined assets and liabilities of entities which have not sought Chapter 11 bankruptcy protection, the debtors and non-debtors should continue to be combined.  However, separate disclosure of financial statement information solely relating to the debtor entities should be presented.  Therefore, the combined condensed financial statements presented below solely reflect the results for the Track 1B Debtors and the 2010 Track Debtors.

Combined Condensed Balance Sheet

	December 31, 2009
	(In thousands)
Net investment in real estate	$	7,249,455
Cash and cash equivalents	31,804
Accounts and notes receivable, net	84,145
Other	660,467
Total Assets	$	8,025,871
Liabilities not subject to compromise:
Deferred tax liabilities	901,194
Investment in and loans to/from Unconsolidated Real Estate Affiliates	24,394
Accounts payable and accrued expenses	210,512
Liabilities subject to compromise	6,561,081
Equity	328,690
Total liabilities and Equity	$	8,025,871

As described above, since the Track 1B Debtors and the 2010 Track Debtors commenced their respective Chapter 11 Cases on two different dates in April 2009, combined condensed statements of operations and the combined condensed statement of cash flows is presented from May 1, 2009 to December 31, 2009.

Combined Condensed Statement of Operations

	May 1, 2009 to December 31, 2009
	(In thousands)
Operating Revenues	$	454,835
Operating Expenses	597,883
Operating Income	(143,048		)
Interest expense, net	(208,612		)
Benefit from income taxes	165
Equity in loss of Real Estate Affiliates	(14,277		)
Reorganization items	1,700
Net loss	(364,072		)
Allocation to noncontrolling interests	(827		)
Net loss attributable to General Growth Properties Inc.	$	(364,899	)

Combined Condensed Statement of Cash Flows

	May 1, 2009 to December 31, 2009
	(In thousands)
Net cash provided by:
Operating activities	$	138,440
Investing activities	(31,571		)
Financing activities	(87,949		)
Net increase in cash and cash equivalents	18,920
Cash and cash equivalents, beginning of period	12,884
Cash and cash equivalents, end of period	$	31,804
Cash paid for reorganization items	$	650

Pre-Petition Date Claims and Classification of Liabilities Subject to Compromise

During September 2009, the Debtors filed with the Bankruptcy Court their schedules of the assets and liabilities existing on the Petition Date. In addition, November 12, 2009 was established by the Bankruptcy Court as the general bar date (the date by which most entities that wished to assert a pre-petition claim against a Debtor had to file a proof of claim in writing). The Debtors have made subsequent amendments to those schedules and, as the bar date has passed, are now in the process of evaluating, reconciling and resolving all claims that were timely submitted. Many of the claims submitted were erroneous or duplicates and the Debtors have filed, and will continue to file, claim objections with the Bankruptcy Court. Claim objections, that is, differences between liability amounts estimated by the Debtors and claims submitted by creditors that cannot be resolved, will be submitted to the Bankruptcy Court which will make a final determination of the allowable claim.  The Track 1 Plans provide that all allowed claims, that is, undisputed or Bankruptcy Court affirmed claims of creditors against the Track 1 Debtors, are to be paid in full. Our aggregate liabilities (consisting of Liabilities Subject to Compromise (“LSTC”) and not subject to compromise as further described below) include provisions for claims against both the Track 1 Debtors and the 2010 Track Debtors that were timely submitted to the Bankruptcy Court and have been recorded, as appropriate, based upon the GAAP guidance for the recognition of contingent liabilities and on our evaluations of such claims. Accordingly, although submitted proofs of claims against all Debtors exceed the amounts recorded for such claims, we currently believe that the aggregate amount of claims recorded by the Debtors will not vary materially from the amount of claims that will ultimately be allowed or resolved by the Bankruptcy Court.

T-14

Liabilities not subject to compromise include: (1) liabilities held by Non-Debtor and Track 1A Debtor entities; (2) liabilities incurred after the Petition Date; (3) pre-petition liabilities that the Track 1B Debtors and the 2010 Track Debtors expect to pay in full, even though certain of these amounts may not be paid until after the applicable Debtor’s plan of reorganization is effective; and (4) liabilities related to pre-petition contracts that affirmatively have not been rejected.  Unsecured liabilities not subject to compromise as of December 31, 2009 with respect to the Track 1A Debtors are reflected at the current estimate of the probable amounts to be paid.  However, the amounts of such unsecured liabilities related to the associated liabilities not subject to compromise resolved or allowed by the Bankruptcy Court (and therefore paid at 100% pursuant to the Track 1 Plans) has not yet been determined.  In such regard, during February 2010, payments commenced on the Track 1 Debtor claims, a process expected to continue for several months as the amounts to be allowed are confirmed by the Bankruptcy Court.  With respect to secured liabilities, GAAP bankruptcy guidance provides that Track 1A Debtor mortgage loans should be recorded at their estimated Fair Value upon emergence.  A discount of approximately $342.2 million was recorded on such $4.65 billion of secured debt, with the resulting gain classified as a reorganization item. For TRCLP, a discount of approximately $93.4 million was recorded on such $1.63 billion of secured debt, with the resulting gain classified as a reorganization item.  This discount will be accreted into interest expense in future periods as a non-cash item until maturity of the related debt obligation.  In certain cases, either due to loan modifications which provide, with respect to the Special Consideration Properties (as defined in Note 6), the right to satisfy our obligations to the applicable mortgage lender by assigning title to the property to such lender or due to the non-recourse nature of the loans, the estimated Fair Value of the debt was set to the estimated Fair Value of the property.  Similar gains will be recorded in the first quarter of 2010 with respect to the $7.69 billion of mortgage loans related to the Track 1B Debtors (TRCLP’s portion of Track 1B Debtor mortgage loans is $2.11 billion) that have emerged or will emerge from bankruptcy in 2010.

All liabilities incurred prior to the Petition Date other than those specified immediately above are considered LSTC. The amounts of the various categories of liabilities that are subject to compromise are set forth below. As described above, these amounts represent the Company’s estimates of known or potential pre-petition claims that are likely to be resolved in connection with the Chapter 11 Cases. Such claims remain subject to future adjustments which may result from 2010 Track Debtor/creditor negotiations, actions of the Bankruptcy Court, rejection of executory contracts and unexpired leases, the determination as to the value of any collateral securing claims, amended proofs of claim, or other events. There can be no assurance that the liabilities represented by claims against a particular 2010 Track Debtor will not be found to exceed the Fair Value of its respective assets. This could result in claims being paid at less than 100% of their face value and the equity of the applicable 2010 Track Debtor being diluted or eliminated entirely. The amounts subject to compromise consisted of the following items:

	December 31, 2009
	(In thousands)
Mortgages and secured notes	$	3,790,931
Unsecured public debt	2,460,281
Accounts payable and accrued liabilities	309,869
Total liabilities subject to compromise	$	6,561,081

The classification of liabilities as LSTC or as liabilities not subject to compromise is based on currently available information and analysis. As the Chapter 11 Cases proceed and additional information is received and analysis is completed, or as the Bankruptcy Court rules on relevant matters, the classification of amounts between LSTC and liabilities not subject to compromise may change. The amount of any such changes could be material.

Reorganization Items

Reorganization items under the Chapter 11 Cases are expense or income items that were incurred or realized by the Debtors as a result of the Chapter 11 Cases and are presented separately in the consolidated statements of income and comprehensive income. These items include professional fees and similar types of expenses directly related to the bankruptcy filings, loss accruals or gains or losses resulting from activities of the reorganization process, and interest earned on cash accumulated by the Debtors as a result of the Chapter 11 cases.  However, for the year ended December 31, 2009, this amount primarily reflects only gains or losses resulting from activities of the reorganization process, the gains resulting from agreements reached with certain critical vendors which were ratified by the Bankruptcy Court and for which payments on an installment basis began in July 2009, all of which are specifically identifiable with individual properties.  Trustee fees have been paid by individual debtors. Any other allocations of costs have not been made to individual debtors as all other costs remain subject to Bankruptcy Court approval.

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Reorganization items are as follows:

Reorganization Items		Post-Petition period ended December 31, 2009
		(In thousands)
Gains on liabilities subject to compromise (1)		$	(96,353	)
U.S. Trustee fees (2)		979
Restructuring costs (3)		26,171
Total reorganization items		$	(69,203	)
(1)	This amount primarily relates to a $93.4 million gain that resulted from the required Fair Value of debt adjustment for the entities that emerged from bankruptcy in December 2009. This amount also includes repudiation, rejection or termination of contracts or guarantee of obligations. In addition, such gains reflect agreements reached with certain critical vendors (as defined), which were authorized by the Bankruptcy Court and for which payments on an installment basis began in July 2009.
(2)	Estimate of fees due remain subject to confirmation and review by the office of the United States Trustee (“U.S. Trustee”).
(3)	Restructuring costs include finance costs incurred related to the properties that emerged from bankruptcy in December 2009

Properties

Real estate assets are stated at cost less any provisions for impairments.  Construction and improvement costs incurred in connection with the development of new properties or the redevelopment of existing properties are capitalized to the extent the total carrying value of the property does not exceed the estimated Fair Value of the completed property.  Real estate taxes and interest costs incurred during construction periods are capitalized.  Capitalized interest costs are based on qualified expenditures and interest rates in place during the construction period.  Capitalized real estate taxes and interest costs are amortized over lives which are consistent with the constructed assets.

Pre-development costs, which generally include legal and professional fees and other directly related third-party costs are capitalized as part of the property being developed.  In the event a development is no longer deemed to be probable, the costs previously capitalized are expensed (see also our impairment policies in this Note 2 below).

Tenant improvements, either paid directly or in the form of construction allowances paid to tenants, are capitalized and depreciated over the average lease term.  Maintenance and repairs are charged to expense when incurred.  Expenditures for significant betterments and improvements are capitalized.

Depreciation or amortization expense is computed using the straight-line method based upon the following estimated useful lives:

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

Impairment

Operating properties and properties under development

The generally accepted accounting principles related to accounting for the impairment or disposal of long-lived assets require that if impairment indicators exist and the undiscounted cash flows expected to be generated by an asset are less than its carrying amount, an impairment provision should be recorded to write down the carrying amount of such asset to its Fair Value. We review our consolidated and unconsolidated real estate assets, including investment properties, land held for development and sale and developments in progress, for potential impairment indicators whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The cash flow estimates used both for determining recoverability and estimating Fair Value are inherently judgmental and reflect current and projected trends in rental, occupancy and capitalization rates, and estimated

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holding periods for the applicable assets.  In certain cases, our holding periods were reduced to either reflect our probable transfer of the Special Consideration Properties to the lender in satisfaction of the secured debt obligation or a change in our estimated holding period with respect to such property in conjunction with the development of our overall plan of reorganization.  Impairment indicators for our retail and other segment are assessed separately for each property and include, but are not limited to, significant decreases in real estate property net operating income and occupancy percentages. Impairment indicators for our Master Planned Communities segment are assessed separately for each community and include, but are not limited to, significant decreases in sales pace or average selling prices, significant increases in expected land development and construction costs or cancellation rates, and projected losses on expected future sales. Impairment indicators for pre-development costs, which are typically costs incurred during the beginning stages of a potential development, and developments in progress are assessed by project and include, but are not limited to, significant changes in projected completion dates, revenues or cash flows, development costs, market factors and sustainability of development projects. If an indicator of potential impairment exists, the asset is tested for recoverability by comparing its carrying amount to the estimated future undiscounted cash flow. Although the estimated value of certain assets may be exceeded by the carrying amount, a real estate asset is only considered to be impaired when its carrying amount cannot be recovered through estimated future undiscounted cash flows. To the extent an impairment provision is necessary, the excess of the carrying amount of the asset over its estimated Fair Value is expensed to operations.  In addition, the impairment provision is allocated proportionately to adjust the carrying amount of the asset.  The adjusted carrying amount, which represents the new cost basis of the asset, is depreciated over the remaining useful life of the asset.

We recorded impairment charges related to our operating properties and properties under development of $339.1 million for the year ended December 31, 2009.  No impairments of operating properties or developments were recorded in 2008 and 2007.  All of these impairment charges are included in provisions for impairment in our consolidated financial statements for the year ended December 31, 2009.

Investment in Unconsolidated Real Estate Affiliates

In accordance with the generally accepted accounting principles related to the equity method of accounting for investments, a series of operating losses of an investee or other factors may indicate that a decrease in value of our investment in the Unconsolidated Real Estate Affiliates has occurred which is other-than-temporary.  The investment in each of the Unconsolidated Real Estate Affiliates is evaluated periodically and as deemed necessary for recoverability and valuation declines that are other than temporary. Accordingly, in addition to the property-specific impairment analysis that we perform on the investment properties, land held for development and sales and developments in progress owned by such joint ventures (as part of our investment property impairment process described above), we also considered the ownership and distribution preferences and limitations and rights to sell and repurchase our ownership interests.  Based on such evaluations, no provisions for impairment were recorded for the years ended December 31, 2009 and 2008 related to our investments in Unconsolidated Real Estate Affiliates.

Goodwill

The excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired (including identified intangible assets) and liabilities assumed was recorded as goodwill. Goodwill has been recognized and allocated to specific properties in our Retail and Other Segment since each individual rental property or each operating property is an operating segment and considered a reporting unit. The generally accepted accounting principles related to goodwill and other intangible assets states that goodwill should be tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. As of the end of each quarter in 2009, we performed impairment tests on goodwill as changes in current market and economic conditions during each of the quarters in 2009 indicated an impairment of the asset might have occurred. We perform this test by first comparing the estimated Fair Value of each property with our book value of the property, including, if applicable, its allocated portion of aggregate goodwill. We assess Fair Value based on estimated future cash flow projections that utilize discount and capitalization rates which are generally unobservable in the market place (Level 3 inputs) under these principles, but approximate the inputs we believe would be utilized by market participants in assessing fair value.  Estimates of future cash flows are based on a number of factors including the historical operating results, known trends, and market/economic conditions. If the carrying amount of a property, including its goodwill, exceeds its estimated Fair Value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. In this second step, if the implied Fair Value of goodwill is less than the carrying amount of goodwill, an impairment charge is recorded. Based on our testing

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methodology, we recorded provisions for impairment of goodwill for the years ended December 31, 2009 and 2008, as presented in the table below.  No provisions for impairment of goodwill were recorded for the year ended December 31, 2007.

	2009			2008
	(In thousands)
Balance as of January 1
Goodwill	$	373,097		$	385,683
Accumulated impairment losses	(32,806		)	—
	340,291			385,683
Adjustments resulting from the subsequent recognition of deferred tax assets during the period	—			(12,586		)
Impairment losses	(140,627		)	(32,806		)
Balance as of December 31
Goodwill	373,097			373,097
Accumulated impairment losses	(173,433		)	(32,806		)
	$	199,664		$	340,291

Summary of all Impairment Provisions:

			Years Ended December 31,
Impaired Asset	Location	Method of determining fair value	2009		2008		2007
			(In thousands)
Retail and Other
Operating properties
Landmark Mall	Alexandria, VA	Discounted cash flow analysis	$	27,323	$	—	$	—
Northgate Mall	Chattanooga, TN	Discounted cash flow analysis (4)	14,904		—		—
Oviedo Marketplace	Oviedo, FL	Discounted cash flow analysis (4)	3,438		—		—
Owings Mills	Owings Mills, MD	Discounted cash flow analysis	51,604		—		—
Owings Mills-Two Corporate Ctr	Owings Mills, MD	Projected sales price analysis (1)	7,880		—		—
Development:
Kendall Town Center	Miami, FL	Projected sales price analysis (1)	35,518		—		—
Princeton Land East, LLC	Princeton, NJ	Comparable property market analysis	8,904		—		—
Princeton Land LLC	Princeton, NJ	Comparable property market analysis	13,356		—		—
The Shops At Summerlin Centre	Las Vegas, NV	Comparable property market analysis	176,141		—		—
			$	339,068	$	—	$	—
Seed Money:
Various pre-development costs		(2)	27,889		5,368		880
Goodwill:
Goodwill		(3)	140,627		32,806		—
Total Retail and Other			$	507,584	$	38,174	$	880
Master Planned Communities:
Columbia Master Planned Community	Columbia, MD	Projected sales price analysis (1)	—		—		77,200
Fairwood Master Planned Community	Columbia, MD	Projected sales price analysis (1)	52,769		—		50,400
Total Master Planned Communities			$	52,769	$	—	$	127,600
Total Provisions for Impairment			$	560,353	$	38,174	$	128,480

(1)	Projected sales price analysis incorporates available market information and other management assumptions.
(2)	Related to the write down of various pre-development costs that were determined to be non-recoverable due to the related projects being terminated.
(3)	These impairments were primarily driven by continued increases in capitalization rate assumptions during 2009 and reduced estimates of NOI, primarily due to the impact of decline in the retail market on our operations.
(4)	These impairments were primarily driven by management’s intent to deed these properties to lenders in satisfactions of secured debt upon emergence from bankruptcy.

General

Certain of our properties had Fair Values less than their carrying amounts. However, based on the Company’s plans with respect to those properties, we believe that the carrying amounts are recoverable and therefore, under

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applicable GAAP guidance, no additional impairments were taken.  Nonetheless, due to the tight credit markets, the recent and continuing decline in our market capitalization, the uncertain economic environment, as well as other uncertainties, or if our plans regarding our assets change, additional impairment charges in the future could result.  Therefore, we can provide no assurance that material impairment charges with respect to operating properties, Unconsolidated Real Estate Affiliates, construction in progress, property held for development and sale or goodwill will not occur in future periods.  Accordingly, we will continue to monitor circumstances and events in future periods to determine whether additional impairments are warranted.

Acquisitions of operating properties

Acquisitions of properties are accounted for utilizing the purchase method and, accordingly, the results of operations of acquired properties are included in our results of operations from the respective dates of acquisition.  Estimates of future cash flows and other valuation techniques are used to allocate the purchase price of acquired property between land, buildings and improvements, equipment, debt liabilities assumed and identifiable intangible assets and liabilities such as amounts related to in-place at-market tenant leases, acquired above and below-market tenant and ground leases and tenant relationships. Due to existing contacts and relationships with tenants at our currently owned properties and at properties currently managed for others, no significant value has been ascribed to the tenant relationships at the acquired properties.

As of January 1, 2009, we adopted a new generally accepted accounting principle related to business combinations, which will change how business acquisitions are accounted and will impact the financial statements both on the acquisition date and in subsequent periods.

Investments in Unconsolidated Real Estate Affiliates

We account for investments in joint ventures where we own a non-controlling joint interest using the equity method.  Under the equity method, the cost of our investment is adjusted for our share of the equity in earnings of such Unconsolidated Real Estate Affiliates from the date of acquisition and reduced by distributions received.  Generally, the operating agreements with respect to our Unconsolidated Real Estate Affiliates provide that assets, liabilities and funding obligations are shared in accordance with our ownership percentages.  Therefore, we generally also share in the profit and losses, cash flows and other matters relating to our Unconsolidated Real Estate Affiliates in accordance with our respective ownership percentages.  Differences between the carrying value of our investment in the Unconsolidated Real Estate Affiliates and our share of the underlying equity of such Unconsolidated Real Estate Affiliates are amortized over lives ranging from five to forty years.  When cumulative distributions exceed our investment in the joint venture, the investment is reported as a liability in our consolidated financial statements.  For those joint ventures where we own less than approximately a 5% interest and have virtually no influence on the joint venture’s operating and financial policies, we account for our investments using the cost method.

Cash and Cash Equivalents

Highly-liquid investments with maturities at dates of purchase of three months or less are classified as cash equivalents.

Receivable from General Growth Properties, Inc.

The amounts receivable from General Growth Properties, Inc. are primarily non-interest bearing, unsecured, payable on demand, and have been reflected as a component of Capital.

Leases

Leases which transfer substantially all the risks and benefits of ownership to tenants are considered finance leases and the present values of the minimum lease payments and the estimated residual values of the leased properties, if any, are accounted for as receivables.  Leases which transfer substantially all the risks and benefits of ownership to us are considered capital leases and the present values of the minimum lease payments are accounted for as assets and liabilities.

Deferred Expenses

Deferred expenses consist principally of financing fees, leasing costs and commissions.  Deferred financing fees are amortized to interest expense using the effective interest method (or other methods which approximate the interest method) over the terms of the respective financing agreements.  Deferred leasing costs and commissions are

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amortized using the straight-line method over periods that approximate the related lease terms.  Deferred expenses in our Consolidated Balance Sheets are shown at cost, net of accumulated amortization of $58.2 million as of December 31, 2009 and $57.8 million as of December 31, 2008.

Noncontrolling Interests

As of January 1, 2009, we adopted a new generally accepted accounting principle related to noncontrolling interests in consolidated financial statements, which changed the reporting for minority interests in our consolidated joint ventures by re-characterizing them as noncontrolling interests and re-classifying certain of such minority interests as a component of permanent partners’ capital in our consolidated balance sheets.  These principles also changed the presentation of the income allocated to minority interests by re-characterizing it as allocations to noncontrolling interests and re-classifying such income as an adjustment to net income to arrive at net income attributable to General Growth Properties, Inc.

Revenue recognition and related matters

Minimum rent revenues are recognized on a straight-line basis over the terms of the related leases.  Minimum rent revenues also include amounts collected from tenants to allow the termination of their leases prior to their scheduled termination dates and accretion related to above and below-market tenant leases on acquired properties.  Termination income recognized for the years ended December 31, 2009, 2008, and 2007 was approximately $9.0 million, $10.6 million, and $10.9 million, respectively.  Net accretion related to above- and below-market tenant leases for the years ended December 31, 2009, 2008, and 2007 was approximately $4.9 million, $6.7 million, and $7.9 million, respectively.

Straight-line rents receivable, which represent the current net cumulative rents recognized prior to when billed and collectible as provided by the terms of the leases, of approximately $99.2 million as of December 31, 2009 and $88.3 million as of December 31, 2008 is included in Accounts and notes receivable, net in our consolidated financial statements.

Percentage rent in lieu of fixed minimum rent received from tenants was approximately $17.2 million for the year ended December 31, 2009, and $12.2 million each of the years ended December 31, 2008, and 2007, respectively, and is included in Minimum rents in our consolidated financial statements.

We provide an allowance for doubtful accounts against the portion of accounts receivable, including straight-line rents, which is estimated to be uncollectible.  Such allowances are reviewed periodically based upon our recovery experience.  We also evaluate the probability of collecting future rent which is recognized currently under a straight-line methodology.  This analysis considers the long-term nature of our leases, as a certain portion of the straight-line rent currently recognizable will not be billed to the tenant until many years into the future.  Our experience relative to unbilled deferred rent receivable is that a certain portion of the amounts recorded as straight-line rental revenue are never collected from (or billed to) tenants due to early lease terminations.  For that portion of the otherwise recognizable deferred rent that is not deemed to be probable of collection, no revenue is recognized.  Accounts and notes receivable in our Consolidated Balance Sheets are shown net of an allowance for doubtful accounts of $37.8 million as of December 31, 2009 and $37.9 million as of December 31, 2008.

Overage rents are recognized on an accrual basis once tenant sales exceed contractual tenant lease thresholds.  Recoveries from tenants are established in the leases or computed based upon a formula related to real estate taxes, insurance and other shopping center operating expenses and are generally recognized as revenues in the period the related costs are incurred.

Revenues from land sales are recognized using the full accrual method provided that various criteria relating to the terms of the transactions and our subsequent involvement with the land sold are met.  Revenues relating to transactions that do not meet the established criteria are deferred and recognized when the criteria are met or using the installment or cost recovery methods, as appropriate in the circumstances.  Revenues and cost of sales are recognized on a percentage of completion basis for land sale transactions in which we are required to perform additional services and incur significant costs after title has passed.

Cost ratios for land sales are determined as a specified percentage of land sales revenues recognized for each community development project.  The cost ratios used are based on actual costs incurred and estimates of future

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development costs and sales revenues to completion of each project.  The ratios are reviewed regularly and revised for changes in sales and cost estimates or development plans.  Significant changes in these estimates or development plans, whether due to changes in market conditions or other factors, could result in changes to the cost ratio used for a specific project.  The specific identification method is used to determine cost of sales for certain parcels of land, including acquired parcels we do not intend to develop or for which development is complete at the date of acquisition.

Income Taxes (Note 7)

Deferred income taxes are accounted for using the asset and liability method.  Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the financial statements or tax returns and are recorded primarily by certain of our taxable REIT subsidiaries.  Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.  An increase or decrease in the deferred tax liability that results from a change in circumstances, and which causes a change in our judgment about expected future tax consequences of events, is included in the current tax provision.  Deferred income taxes also reflect the impact of operating loss and tax credit carryforwards.  A valuation allowance is provided if we believe it is more likely than not that all or some portion of the deferred tax asset will not be realized.  An increase or decrease in the valuation allowance that results from a change in circumstances, and which causes a change in our judgment about the realizability of the related deferred tax asset, is included in the current tax provision.  It is possible that the Company could experience a change in control pursuant to Section 382 that could limit the benefit of deferred tax assets.  In addition, we recognize and report interest and penalties, if necessary, related to uncertain tax positions within our provision for income tax expense.

In many of our Master Planned Communities, gains with respect to sales of land for commercial use are reported for tax purposes on the percentage of completion method.  Under the percentage of completion method, gain is recognized for tax purposes as costs are incurred in satisfaction of contractual obligations.  The method used for determining the percentage complete for income tax purposes is different than that used for financial statement purposes.  In addition, gains with respect to sales of land for single family residences are reported for tax purposes under the completed contract method.  Under the completed contract method, gain is recognized for tax purposes when 95% of the costs of our contractual obligations are incurred or the contractual obligation is transferred.

Fair Value Measurements

We adopted the generally accepted accounting principles related to Fair Value measurements as of January 1, 2008 for our financial assets and liabilities and, although our disclosures were increased, such adoption did not change our valuation methods for such assets and liabilities.  In addition, as required, we adopted these principles as of January 1, 2009 for our non-financial assets and liabilities, which, in accordance with the guidance impacts our assets measured at Fair Value due to impairments incurred since adoption.

The accounting principles for fair value measurements establish a three-tier fair value hierarchy, which prioritizes the inputs used in measuring Fair Value.  These tiers include:

·Level 1 - defined as observable inputs such as quoted prices for identical assets or liabilities in active markets;

·Level 2 - defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and

·Level 3 - defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The asset or liability Fair Value measurement level within the Fair Value hierarchy is based on the lowest level of any input that is significant to the Fair Value measurement.  Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.  Any Fair Values utilized or disclosed in our consolidated financial statements were developed for the purpose of complying with the accounting principles established for Fair Value measurements.  The Fair Values of our assets or liabilities for enterprise value in our Chapter 11 Cases or as a component of our reorganization plan (see Note 1) will reflect differing assumptions and methodologies. These estimates will be subject to a number of approvals and reviews and therefore may be materially different.

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The following table summarizes our assets and liabilities that are measured at Fair Value on a nonrecurring basis:

	Total Fair Value Measurement as of December 31, 2009		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Loss) Gain as of December 31, 2009
	(In thousands)
Investments in real estate:
Fairwood Master Planned Community	$	12,629	$	—	$	12,629	$	—	$	(52,769	)
Kendall Town Center	13,931		—		—		13,931		(35,518		)
Landmark Mall (1)	49,501		—		—		49,501		(27,323		)
Northgate Mall (1)	27,179		—		—		27,179		(14,904		)
Oviedo Marketplace (1)	34,578		—		—		34,578		(3,438		)
Owings Mills (1)	26,695		—		—		26,695		(51,604		)
Owings Mills-Two Corporate Center	15,762		—		—		15,762		(7,880		)
Princeton Land East, LLC	8,802		—		8,802		—		(8,904		)
Princeton Land LLC	11,948		—		11,948		—		(13,356		)
The Shops At Summerlin Centre	46,300		—		46,300		—		(176,141		)
	$	247,325	$	—	$	79,679	$	167,646	$	(391,837	)
Debt: (2)
Fair value of emerged entity mortgage debt	$	1,532,625	$	—	$	—	$	1,532,625	$	93,438
Total liabilities	$	1,532,625	$	—	$	—	$	1,532,625	$	93,438

(1) The fair value was calculated based on a discounted cash flow analysis using property specific discount rate ranging from 9.25% to 12.00%

(2) The fair value of debt relates to the 16 properties that emerged from bankruptcy in December 2009.

Fair Value of Financial Instruments

The Fair Values of our financial instruments approximate their carrying amount in our financial statements except for debt.  Notwithstanding that we do not believe that a fully-functioning market for real property financing exists currently, GAAP guidance requires that management estimate the Fair Value of our debt. However, as a result of the Company’s Chapter 11 filing, the Fair Value for the outstanding debt that is included in liabilities subject to compromise in our Consolidated Balance Sheets cannot be reasonably determined at December 31, 2009 as the timing and amounts to be paid are subject to confirmation by the Bankruptcy Court.  For the $3.2 billion of mortgages, notes and loans payable outstanding that are not subject to compromise at December 31, 2009, management’s required estimates of Fair Value are presented below.  This Fair Value was estimated solely for financial statement reporting purposes and should not be used for any other purposes, including to estimate the value of any of the Company’s securities or to estimate the appropriate interest rate for consensual and non-consensual restructuring of secured debt in our Chapter 11 Cases. We estimated the Fair Value of this debt based on quoted market prices for publicly-traded debt, recent financing transactions (which may not be comparable), estimates of the Fair Value of the property that serves as collateral for such debt, historical risk premiums for loans of comparable quality, current London Interbank Offered Rate (“LIBOR”), a widely quoted market interest rate which is frequently the index used to determine the rate at which we borrow funds and US treasury obligation interest rates, and on the discounted estimated future cash payments to be made on such debt.  The discount rates estimated reflect our judgment as to what the approximate current lending rates for loans or groups of loans with similar maturities and credit quality would be if credit markets were operating efficiently and assume that the debt is outstanding through maturity. We have utilized market information as available or present value techniques to estimate the amounts required to be disclosed, or, in the case of the debt of the Track 1A Debtors, recorded due to GAAP bankruptcy emergence guidance (as described above and in Note 6).  Since such amounts are estimates that are based on limited available market information for similar transactions and do not acknowledge transfer or other repayment restrictions that may exist in specific loans, it is unlikely that the estimated Fair Value of any of such debt could be realized by immediate settlement of the obligation.

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	2009				2008
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In millions)
Fixed-rate debt	$	3,247	$	3,197	$	8,269	$	7,466
Variable-rate debt	—		—		1,429		1,396
	$	3,247	$	3,197	$	9,698	$	8,862

Included in such amounts for 2009 is $1.63 billion of debt that relates to the 16 TRCLP properties that emerged from bankruptcy in December 2009 where the carrying value of the debt was adjusted by $93 million to an estimated Fair Value of such debt (based on significant unobservable (Level 3) Inputs).

Transactions with affiliates

GGP directly performs functions such as payroll, benefits, and insurance for TRCLP and related costs for such functions are either charged directly to or allocated, as applicable, to TRCLP.

Use of estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions.  These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.  For example, significant estimates and assumptions have been made with respect to useful lives of assets, capitalization of development and leasing costs, provision for income taxes, recoverable amounts of receivables and deferred taxes, initial valuations and related amortization periods of deferred costs and intangibles, particularly with respect to acquisitions, impairment of long-lived assets and goodwill, valuation of debt of emerged entities and cost ratios and completion percentages used for land sales.  Actual results could differ from these and other estimates.

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NOTE 3INTANGIBLE ASSETS AND LIABILITIES

The following table summarizes our intangible assets and liabilities (in thousands):

	Gross Asset (Liability)			Accumulated (Amortization) Accretion			Net Carrying Amount
December 31, 2009
Tenant leases:
In-place value	$	401,484		$	(275,820	)	$	125,664
Above-market	59,420			(46,600		)	12,820
Below-market	(78,422		)	52,194			(26,228		)
Ground leases:
Above-market	(16,968		)	2,423			(14,545		)
Below-market	270,074			(29,726		)	240,348
Real estate tax stabilization agreement	91,879			(20,272		)	71,607
December 31, 2008
Tenant leases:
In-place value	$	490,454		$	(319,610	)	$	170,844
Above-market	77,877			(56,342		)	21,535
Below-market	(124,718		)	84,913			(39,805		)
Ground leases:
Above-market	(16,968		)	1,951			(15,017		)
Below-market	270,074			(23,888		)	246,186
Real estate tax stabilization agreement	91,879			(16,349		)	75,530

The gross asset balances of the in-place value of tenant leases are included in Buildings and equipment in our Consolidated Balance Sheets.  The above-market and below-market tenant and ground leases, as well as the real estate tax stabilization agreement intangible asset, are included in Prepaid expenses and other assets and Accounts payable and accrued expenses as detailed in Note 10.

Amortization/accretion of these intangible assets and liabilities and similar assets and liabilities from our unconsolidated real estate affiliates, at our share, decreased income (excluding the impact of provision for income taxes) by $56.6 million in 2009, $66.8 million in 2008, and $73.6 million in 2007.

Future amortization, including our share of such amounts from unconsolidated real estate affiliates, is estimated to decrease income (excluding the impact of provision for income taxes) by approximately $46.9 million in 2010, $34.9 million in 2011, $27.9 million in 2012, $21.1 million in 2013 and $21.1 million in 2014.

NOTE 4DISCONTINUED OPERATIONS AND GAINS (LOSSES) ON DISPOSITIONS OF INTERESTS IN OPERATING PROPERTIES

On December 21, 2009 we sold one office building totaling approximately 38,400 square feet and 4.2 acres of land located in Woodlands, Texas for a total sales price of $2.0 million, resulting in a total loss of $0.9 million

In 2008, we sold one office building totaling approximately 16,600 square feet located in Las Vegas for a total sales price of approximately $3.3 million, resulting in a total gain of $2.5 million.  We also sold two office buildings totaling approximately 390,000 square feet located in Maryland for a sales price of approximately $94.7 million (including debt assumed of approximately $84 million), resulting in total gains of $34.5 million.  We sold an office park consisting of three office buildings totaling approximately 73,500 square feet located in Maryland for a total sales price of approximately $4.7 million, resulting in total gains of $1.0 million and we sold an office park consisting of five office buildings totaling approximately 306,400 square feet located in Maryland for a total sales price of approximately $42.3 million, resulting in total gains of $17.0 million.

All of the dispositions are included in discontinued operations in our consolidated financial statements.  For Federal income tax purposes, the two office buildings and one of the office parks located in Maryland were used as relinquished property in a like-kind exchange involving the acquisition of The Shoppes at The Palazzo.

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We evaluated the operations of these properties pursuant to the requirements of generally accepted accounting principles related to business combinations and concluded that the operations of these office buildings that were sold did not materially impact the prior period results and therefore have not reported any prior operations of these properties as discontinued operations in the accompanying consolidated financial statements.

NOTE 5UNCONSOLIDATED REAL ESTATE AFFILIATES

The Unconsolidated Real Estate Affiliates include our noncontrolling investments in real estate joint ventures. Generally, we share in the profits and losses, cash flows and other matters relating to our investments in Unconsolidated Real Estate Affiliates in accordance with our respective ownership percentages. We manage most of the properties owned by these joint ventures. As we have joint interest and control of these ventures with our venture partners and they have substantive participating rights in such ventures, we account for these joint ventures using the equity method.  Some of the joint ventures have elected to be taxed as REITs.

At December 31, 2009, these ventures were primarily partnerships and corporations which own retail centers (most of which we manage) and a venture developing the master planned community known as The Woodlands, near Houston, Texas.  We own a 52.5% economic interest in certain entities (which we refer to as the “Woodlands Entities”) that own The Woodlands.  Assets owned by the Woodlands Entities included approximately 2,700 acres of land, a resort conference center, a golf course complex, interests in office buildings and other assets.

The private REIT that was contributed to TRCLP in the Private REIT/TRS Restructuring (Note 1) owns a 9.3% interest in General Growth Properties Limited Partnership Limited Liability Company (“GGPLP, LLC”) and some smaller interests in five other properties still controlled by GGPLP.  In accordance with the guidance established for mergers involving affiliates under common control, the financial statements of TRCLP have been restated to include the equity ownership interest of the private REIT for all periods presented similar to a pooling of interests.

As a result of the ongoing operations of the ventures, cumulative distributions, primarily from financing proceeds, from certain of these ventures exceed our investments in them.  This balance aggregated $24.4 million and $25.0 million at December 31, 2009 and 2008, respectively and is included as a liability in our Consolidated Balance Sheets.

In 2009 TRCLP made contributions of $86.2 million, fund our portion of $172.2 million of joint venture mortgage debt which had reached maturity.  As of December 31, 2009, approximately $9.3 billion of indebtedness was secured by our Unconsolidated Properties, our share of which was approximately $1.4 billion.  There can be no assurance that we will be able to refinance or restructure such debt on acceptable terms or otherwise, or that joint venture operations or contributions by us and/or our partners will be sufficient to repay such loans.

In certain circumstances, the Company, in connection with the debt obligations of certain Unconsolidated Real Estate Affiliates, has agreed to provide supplemental guarantees or master-lease commitments to provide to the debt holders additional credit-enhancement or security.  As of December 31, 2009, we do not expect to be required to perform pursuant to any of such supplemental credit-enhancement provisions for our Unconsolidated Real Estate Affiliates, either due to estimates of the current obligations represented by such provisions or as a result of the protections afforded us through our Chapter 11 Cases.

The significant accounting policies used by the Unconsolidated Real Estate Affiliates are the same as ours.

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Condensed Combined Financial Information of Unconsolidated Real Estate Affiliates

Following is summarized financial information for our Unconsolidated Real Estate Affiliates as of December 31, 2009 and 2008 and for the years ended December 31, 2009, 2008, and 2007.

(In thousands)	December 31, 2009			December 31, 2008
Condensed Combined Balance Sheets - Unconsolidated Real Estate Affiliates
Assets:
Land	$	1,678,792		$	1,681,598
Buildings and equipment	10,128,109			10,348,181
Less accumulated depreciation	(2,485,956		)	(2,404,562		)
Developments in progress	323,001			656,378
Net property and equipment	9,643,946			10,281,595
Investment land and land held for sale and development	266,253			282,636
Net investment in real estate	9,910,199			10,564,231
Cash and cash equivalents	99,065			104,417
Accounts and notes receivable, net	4,363,114			4,130,507
Deferred expenses, net	116,951			143,569
Prepaid expenses and other assets	103,605			156,656
Total assets	$	14,592,934		$	15,099,380
Liabilities and Owners’ Equity:
Mortgages, notes and loans payable	$	9,272,508		$	9,927,777
Accounts payable and accrued expenses	464,682			514,307
Minority interest	5,000			80,994
Owners’ equity	4,850,744			4,576,302
Total liabilities and owners’ equity	$	14,592,934		$	15,099,380
Investment In and Loans To/From Unconsolidated Real Estate Affiliates, Net
Owners’ equity	$	4,850,744		$	4,576,302
Less joint venture partners’ equity	(4,285,153		)	(3,846,169		)
Capital or basis differences and loans	969,904			715,147
Investment in and loans to/from Unconsolidated Real Estate Affiliates, net	$	1,535,495		$	1,445,280
Reconciliation - Investment In and Loans To/From Unconsolidated Real Estate Affiliates
Asset - Investment in and loans to/from Unconsolidated Real Estate Affiliates	$	1,559,889		$	1,470,328
Liability - Investment in and loans to/from Unconsolidated Real Estate Affiliates	(24,394		)	(25,048		)
Investment in and loans to/from Unconsolidated Real Estate Affiliates, net	$	1,535,495		$	1,445,280

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	Years Ended December 31,
(In thousands)	2009			2008			2007
Condensed Combined Statements of Income - Unconsolidated Real Estate Affiliates
Revenues:
Minimum rents	$	1,030,627		$	1,051,879		$	1,047,518
Tenant recoveries	435,123			451,238			451,464
Overage rents	25,237			33,428			44,382
Land sales	72,367			137,504			161,938
Other	95,295			123,248			149,750
Total revenues	1,658,649			1,797,297			1,855,052
Expenses:
Real estate taxes	141,046			135,442			131,984
Repairs and maintenance	114,133			114,319			111,912
Marketing	19,445			24,375			32,516
Other property operating costs	756,908			285,384			314,203
Land sales operations	60,717			81,833			91,539
Provision for doubtful accounts	14,565			9,181			5,792
Property management and other costs	11,554			11,444			11,509
Depreciation and amortization	352,903			336,486			319,958
Total expenses	1,471,271			998,464			1,019,413
Operating income	187,378			798,833			835,639
Interest income	4,611			5,172			7,980
Interest expense	(470,928		)	(506,059		)	(531,040		)
Provision for income taxes	(730		)	(2,535		)	(6,011		)
Income allocated to minority interest	—			(3,432		)	(5,480		)
Reorganization items	195,533			—			—
(Loss) Income from continuing operations	(84,136		)	291,979			301,088
Discontinued operations, including gain on dispositions	184			—			106,016
Net (loss) income	$	(83,952	)	$	291,979		$	407,104
Equity In Income of Unconsolidated Real Estate Affiliates
Net income of Unconsolidated Real Estate Affiliates	$	(83,952	)	$	291,979		$	407,104
Joint venture partners’ share of income ofUnconsolidated Real Estate Affiliates	109,290			(215,251		)	(276,402		)
Amortization of capital or basis differences	(19,056		)	(17,110		)	(23,528		)
Equity in income of Unconsolidated Real Estate Affiliates	$	6,282		$	59,618		$	107,174

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NOTE 6MORTGAGES, NOTES AND LOANS PAYABLE

Mortgages, notes and loans payable are summarized as follows (see Note 10 for the maturities of our long term commitments):

	December 31,
	2009			2008
Fixed-rate debt:
Collateralized mortgages, notes and loans payable	$	5,943,192		$	6,025,689
Corporate and other unsecured term loans	2,243,811			2,243,455
Total fixed-rate debt	8,187,003			8,269,144
Variable-rate debt:
Collateralized mortgages, notes and loans payable	1,310,933			1,428,704
Total variable-rate debt	1,310,933			1,428,704
Total mortgages, notes and loans payable	$	9,497,936		$	9,697,848
Less: Mortgages, notes and loans payable subject to compromise	(6,251,212		)	—
Total Mortgages, notes and loans payable not subject to compromise	$	3,246,724		9,697,848

As previously discussed, on April 16 and 22, 2009, the Debtors filed voluntary petitions for relief under Chapter 11, which triggered defaults on substantially all debt obligations of the Debtors. However, under section 362 of Chapter 11, the filing of a bankruptcy petition automatically stays most actions against the debtor’s estate. Absent an order of the Bankruptcy Court, these pre-petition liabilities are subject to settlement under a plan of reorganization, and therefore are presented as Liabilities subject to compromise on the Consolidated Balance Sheet.  Of the total amount of debt presented above, $3.3 billion is not subject to compromise, consisting primarily of the collateralized mortgages of the Non-Debtors and the Track 1A Debtors.  Also, as discussed in Note 1, the mortgages of the Track 1B Debtors were reflected as subject to compromise at December 31, 2009 as the effective dates of their plans of reorganization did not occur as of December 31, 2009.  We expect that such mortgage loan amounts will be reflected as not subject to compromise in 2010.

As of December 31, 2009, as described in Note 1, plans of reorganization for the TRCLP Track 1A Debtors, owning 16 operating properties secured by approximately $1.63 billion of mortgage debt, had been declared effective. The Track 1 Plans for such Track 1A Debtors provided for, in exchange for payment of certain extension fees and cure of previously unpaid amounts due on the applicable mortgage loans (primarily, principal amortization otherwise scheduled to have been paid since the Petition Date), the extension of the secured mortgage loans at previously existing non-default interest rates. As a result of the extensions, none of these loans will have a maturity prior to January 1, 2014. In conjunction with these extensions, certain financial and operating covenants and guarantees were created or reinstated, all to be effective with the bankruptcy emergence of the 2010 Track Debtors. Also in conjunction with such extensions, the Debtors for 13 properties, of which three are indirectly wholly owned by TRCLP (the “Special Consideration Properties”), have until two days following emergence of the TopCo Debtors to determine whether the collateral property should be deeded to the respective lender or the property should be retained with further modified loan terms.  Prior to emergence of the Topco Debtors, the lenders related to the Special Consideration Properties are trapping all cash and we are required to pay any operating expense shortfall.  In addition, prior to emergence of the Topco Debtors, the respective lender can change the manager of the property or put the property in receivership and GGP has an unrestricted right to deed the property to the lender.  Five of the Special Consideration Properties, representing $371.1 million in secured debt, two of which representing $151.9 million relate to TRCLP, are owned by the Track 1A Debtors.

GGP is continuing to pursue consensual restructurings for 31 Debtors (the “Remaining Secured Debtors”) with secured loans aggregating $2.50 billion. Of the Remaining Secured Debtors, seven are within TRCLP with secured loans aggregating $1.31 billion.

The weighted-average interest rate, excluding the effects of deferred finance costs and using the contract rate prior to any defaults on such loans, on our mortgages, notes and loans payable was 5.6% at December 31, 2009 and 5.8% at December 31, 2008.  With respect to those loans and Debtors that remain in bankruptcy at December 31, 2009, we are currently recognizing interest expense on our loans based on contract rates in effect prior to bankruptcy as the Bankruptcy Court has ruled that interest payments based on such contract rates constitutes adequate protection to the secured lenders.

The Track 2010 Debtors, pursuant to their debt obligations are required to comply with certain customary financial covenants and affirmative representations and warranties including, but not limited to, stipulations relating to leverage, net equity, maintenance of our REIT status, cross-defaults to certain other indebtedness and interest or

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fixed charge coverage ratios. Such financial covenants are calculated from applicable Company information computed in accordance with GAAP, subject to certain exclusions or adjustments, as defined.  As discussed in the Debtors-in-possession section of Note 1, we were unable to repay or refinance certain debt as it became due, and our Chapter 11 cases have stayed the enforcement of the default provisions of such covenants.

Collateralized Mortgages, Notes and Loans Payable

As of December 31, 2009, $11.3 billion of land, buildings and equipment and developments in progress (before accumulated depreciation) have been pledged as collateral for our mortgages, notes and loans payable. Certain of these secured loans are cross-collateralized with other properties.  Although substantially all of the $9.5 billion of fixed and variable rate mortgage notes and loans payable are non-recourse, $0.8 billion of such mortgages, notes and loans payable are recourse due to guarantees or other security provisions for the benefit of the note holder. Enforcement of substantially all of these security provisions are stayed by our Chapter 11 cases.  In addition, certain mortgage loans contain other credit enhancement provisions (primarily master leases for all or a portion of the property), as of December 31, 2009 which have been provided by 2010 Track Debtors upon which we do not expect to perform during the pendency of our Chapter 11 Cases. Certain mortgage notes payable may be prepaid but are generally subject to a prepayment penalty equal to a yield-maintenance premium, defeasance or a percentage of the loan balance.

NOTE 7INCOME TAXES

TRCLP is a limited partnership, which is an entity disregarded for federal income tax purposes and we are not liable for federal income taxes.

However, as a subsidiary of GGP (which operates as a Real Estate Investment Trust (“REIT”)), we own and operate several TRS entities that are taxable corporations that are used by REITs generally to engage in nonqualifying REIT activities or perform nonqualifying services, and therefore we are liable for federal and state income taxes with respect to such TRS entities.  Such TRS entities principally engage in the development and sale of land for residential, commercial and other uses, primarily in and around Columbia, Maryland; Summerlin, Nevada and Houston, Texas.  The TRS entities also operate and/or own certain retail centers and office and other properties.  Current federal income taxes of the TRS entities are likely to increase significantly in future years as we exhaust the net loss carryforwards of certain TRS entities and complete certain land development projects.  These increases could be significant.

Effective March 31, 2007, through a series of transactions, a private REIT owned by GGPLP was contributed to TRCLP and one of our TRS entities became a qualified REIT subsidiary of that private REIT.  This transaction resulted in approximately a $328.4 million decrease in our net deferred tax liabilities, an approximate $7.4 million increase in our current taxes payable and an approximate $321.0 million income tax benefit related to the properties now owned by that private REIT.

The (benefit from) provision for income taxes for the years ended December 31, 2009, 2008, and 2007 are summarized as follows (in thousands):

	2009			2008		2007
Current	$	(7,250	)	$	13,126	$	68,104
Deferred	(13,963		)	4,429		(375,285		)
Total	$	(21,213	)	$	17,555	$	(307,181	)

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Income tax expense attributable to continuing operations is reconciled to the amount computed by applying the federal corporate tax rate as follows (in thousands):

	2009			2008			2007
Tax at statutory rate on income from continuing operations before income taxes	$	(174,381	)	$	13,661		$	30,812
Increase in valuations allowance, net	8,008			1,469			160
State income taxes, net of federal income tax benefit	2,434			1,954			1,224
Tax at statutory rate on earnings (losses) not subject to Federal income taxes	137,208			2,509			(22,449		)
Tax benefit from changes in tax rates, prior period adjustments, and other permanent differences	6,199			(2,895		)	(4,014		)
Tax benefit from Private REIT/TRS Restructuring	—			359			(320,956		)
Tax expense relating to uncertain tax positions, excluding interest	—			510			3,185
Interest on uncertain tax position liability, net of federal income tax benefit	(681		)	(12		)	4,857
Provision for (benefit from) income taxes	$	(21,213	)	$	17,555		$	(307,181	)

Realization of a deferred tax benefit is dependent upon generating sufficient taxable income in future periods.  Our net operating loss carryforwards are currently scheduled to expire in subsequent years through 2030.  Some of the net operating loss carryforward amounts are subject to annual limitations under Section 382 of the Internal Revenue Code.  This annual limitation under Section 382 is subject to modification if a taxpayer recognizes what are called “built-in gain items.”

Each TRS is a tax paying component for purposes of classifying deferred tax assets and liabilities.  As of December 31, 2009, TRCLP had gross deferred tax assets of $224.5 million, of which a valuation allowance of $10.5 million has been established against certain deferred tax assets, and gross deferred tax liabilities of $1.05 billion.  Net deferred tax assets (liabilities) are summarized as follows (in thousands):

	2009			2008
Total deferred tax assets	$	28,867		$	19,282
Valuation allowance	(10,538		)	(2,530		)
Net deferred tax asset	18,329			16,752
Total deferred tax liabilities	(856,747		)	(861,399		)
Net deferred tax liabilities	$	(838,418	)	$	(844,647	)

Due to the uncertainty of the realization of certain tax carryforwards, we established valuation allowances on those deferred tax assets that we do not reasonably expect to realize.

The tax effects of temporary differences and loss carryforwards included in the net deferred tax assets (liabilities) at December 31, 2009 and 2008 with respect to the TRS’s are summarized as follows (in thousands):

	2009			2008
Property, primarilydifferences in the tax basis of land assets and treatment of interest and certain other costs	$	(747,086	)	$	(772,761	)
Other property, primarily differences in basis of assets andliabilities	157			(26,814		)
Deferred income	(269,933		)	(219,666		)
Interest deduction carryforwards	142,073			142,073
Operating loss and tax credit carryforwards	46,909			35,051
Valuation allowance	(10,538		)	(2,530		)
Net deferred tax liabilities	$	(838,418	)	$	(844,647	)

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The deferred tax liability associated with the master planned communities is largely attributable to the difference between the basis and value determined as the date of the TRC acquisition in 2004 adjusted for sales that have occurred since that time.  The cash cost related to this deferred tax liability is dependent upon the sales price of future land sales and the method of accounting used for income tax purposes.  The deferred tax liability labeled deferred income is the difference between the income tax method of accounting and the financial statement method of accounting for prior sales.

Although we believe our tax returns are correct, the final determination of tax examinations and any related litigation could be different than what was reported on the returns. In the opinion of management, we have made adequate tax provisions for years subject to examination. Generally, we are currently open to audit under the statute of limitations by the Internal Revenue Service for the years ending December 31, 2005 through 2009 and are open to audit by state taxing authorities for years ending December 31, 2004 through 2009. In the fourth quarter of 2008, we effectively settled with the IRS with respect to the audits for the years 2001 through 2005 for two of our taxable REIT subsidiaries. In February 2009, we were notified that the IRS had commenced examination of the year ended December 31, 2007 with respect to two taxable REIT subsidiaries. We received a letter of Income Tax Examination Changes (“30 Day Letter”) for the two taxable REIT subsidiaries with the proposed changes amounting to additional tax of $128.1 million. We timely filed a protest disputing the proposed changes. In December 2009, we were notified that the same two taxable REIT subsidiaries are under audit for the year ended December 31, 2008. It is the Company’s position that the pertinent tax law at question has been properly applied and reflected in the income tax returns for both 2008 and 2009. We are unable to determine when the examinations will be resolved.

On January 1, 2007, we adopted a generally accepted accounting principle related to accounting for uncertainty in income taxes, which prescribes a recognition threshold that a tax position is required to meet before recognition in the financial statements and provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues.

At January 1, 2007, we had total unrecognized tax benefits of approximately $93.0 million, excluding accrued interest, of which approximately $27.1 million would impact our effective tax rate.  These unrecognized tax benefits increased our income tax liabilities by $35.6 million, increased goodwill by $28.0 million and cumulatively reduced partners’ capital by $7.6 million.  As of January 1, 2007, we had accrued interest of approximately $8.5 million related to these unrecognized tax benefits and no penalties.  Prior to the adoption of the generally accepted accounting principle related to accounting for uncertainty in income taxes, we did not treat either interest or penalties related to tax uncertainties as part of income tax expense.  With the adoption of the generally accepted accounting principle related to accounting for uncertainty in income taxes, we have chosen to change this accounting policy.  As a result, we will recognize and report interest and penalties, if necessary, within our provision for income tax expense from January 1, 2007 forward.

We recognized potential interest expense related to the unrecognized tax benefits of $2.1 million, $(0.1) million and $3.6 million for the years ended December 31, 2009, 2008 and 2007, respectively. During the years ended December 31, 2009, 2008 and 2007, we recognized previously unrecognized tax benefits, excluding accrued interest, of $(7.1) million, $5.9 million and $11.9 million, respectively. The recognition of the previously unrecognized tax benefits resulted in the reduction of interest expense accrued related to these amounts. At December 31, 2009, we had total unrecognized tax benefits of $69.2 million, excluding interest.

(In thousands)	2009			2008			2007
Unrecognized tax benefits, opening balance	$	78,332		$	91,270		$	93,011
Gross increases - tax positions in prior period	41			576			1,823
Gross increases - tax positions in current period	6,103			5,288			10,029
Gross decreases - tax positions in prior period	(15,232		)	(3,549		)	—
Lapse of statute of limitations	—			(15,253		)	(13,593		)
Unrecognized tax benefits, ending balance	$	69,244		$	78,332		$	91,270

Based on our assessment of the expected outcome of existing examinations or examinations that may commence, or as a result of the expiration of the statute of limitations for specific jurisdictions, it is reasonably possible that the related unrecognized tax benefits, excluding accrued interest, for tax positions taken regarding previously filed tax returns will materially change from those recorded at December 31, 2009.  A material change in unrecognized tax benefits could have a material effect on our statements of operations and comprehensive income.  As of December 31, 2009 there is approximately $57.0 million of unrecognized tax benefits, excluding accrued interest, which due to the reasons above, could significantly increase or decrease during the next twelve months.

T-31

The amounts and expiration dates of operating loss and tax credit carryforwards for tax purposes at the TRS’s are as follows:

(In thousands)	Amount		Expiration Dates
Net operating loss carryforwards — Federal	$	108,902	2010-2030
Net operating loss carryforwards — State	48,334		2010-2030
Capital loss carryforward	—		n/a
Tax credit carryforwards — Federal AMT	847		n/a

NOTE 8RENTALS UNDER OPERATING LEASES

We receive rental income from the leasing of retail and other space under operating leases.  The minimum future rentals to be received from tenants under operating leases in effect at our consolidated properties included in continuing operations at December 31, 2009 are summarized as follows (in thousands):

2010	$	267,550
2011	249,370
2012	211,646
2013	192,051
2014	169,375
Subsequent	557,960

Minimum future rentals exclude amounts which are payable by certain tenants based upon a percentage of their gross sales or as reimbursement of operating expenses and amortization of above and below-market tenant leases.

We also receive rental income from the leasing of retail and other space under finance leases.  Rents under finance leases aggregated $7.3 million in 2009, $8.3 million in 2008, and $8.3 million in 2007.

Minimum rent payments to be received from tenants under finance leases in effect at December 31, 2009 are summarized as follows (in thousands):

2010	$	7,062
2011	7,062
2012	7,062
2013	7,062
2014	7,062
Subsequent	7,089

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NOTE 9OTHER ASSETS AND LIABILITIES

The following table summarizes the significant components of prepaid expenses and other assets as of December 31, 2009 and December 31, 2008 (in thousands):

	2009		2008
Below-market ground leases	$	240,349	$	246,186
Receivables - finance leases and bonds	91,130		97,168
Security and escrow deposits	36,838		43,426
Real estate tax stabilization agreement	71,607		75,531
Special Improvement District receivable	48,713		51,314
Above-market tenant leases	12,821		21,535
Prepaid expenses	34,691		31,255
Deferred tax, net of valuation allowances	18,329		16,752
Other	32,083		23,422
	$	586,561	$	606,589

The following table summarizes the significant components of accounts payable and accrued expenses as of December 31, 2009 and December 31, 2008 (in thousands):

	2009			2008
Accounts payable, deposits and accrued expenses	$	110,234		$	82,641
Below-market tenant leases	26,228			39,805
Construction payable	75,711			89,940
Accrued interest	188,689			53,876
Uncertain tax position liability	83,314			90,334
Hughes participation payable	68,378			73,325
Accrued real estate taxes	25,521			24,622
Accrued payroll and other employee liabilities	5,520			6,050
Deferred gains/income	23,585			19,392
Tenant and other deposits	10,221			10,915
Insurance reserve	5,149			3,691
Above-market ground leases	14,545			15,017
Conditional asset retirement obligation liability	12,088			11,463
Capital lease obligations	13,320			13,764
Other	42,432			35,638
Total accounts payable and accrued expenses	704,935			570,473
Less: amounts subject to compromise	(309,869		)	—
Accounts payable and accrued expenses not subject to compromise	$	395,066		$	570,473

NOTE 10COMMITMENTS AND CONTINGENCIES

In the normal course of business, from time to time, we are involved in legal proceedings relating to the ownership and operations of our properties.  In management’s opinion, the liabilities, if any, that may ultimately result from such legal actions are not expected to have a material adverse effect on our consolidated financial position, results of operations or liquidity.

We lease land or buildings at certain properties from third parties.  The leases generally provide us with a right of first refusal in the event of a proposed sale of the property by the landlord.  Rental payments are expensed as incurred and have, to the extent applicable, been straight-lined over the term of the lease.  Contractual rental expense, including participation rent and excluding amortization of above and below-market ground leases and straight-line rents,  was $8.8 million in 2009, $9.1 million in 2008 and $9.3 million in 2007.

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We have, in the past, periodically entered into contingent agreements for the acquisition of properties. Each acquisition subject to such agreements was subject to satisfactory completion of due diligence and, in the case of property acquired under development, completion of the project.

See Note 7 for our obligations related to uncertain tax positions for disclosure of additional contingencies.

The following table summarizes the contractual maturities of our long-term commitments.  Both long-term debt and ground leases include the related purchase accounting Fair Value adjustments:

(In thousands)	2010		2011		2012		2013		2014		Subsequent/ Other (1)		Total
Long-term debt-principal (2)	$	385,549	$	112,780	$	674,741	$	162,269	$	1,010,748	$	900,637	$	3,246,724
Ground lease payments	12,261		11,952		12,025		12,103		12,130		449,045		509,516
Uncertainty in income tax obligations, including interest and penalties	—		—		—		—		—		83,314		83,314
	$	397,810	$	124,732	$	686,766	$	174,372	$	1,022,878	$	1,432,996	$	3,839,554

(1)The remaining uncertainty in income taxes liability, for which reasonable estimates about the timing of payments cannot be made, is disclosed within the Subsequent/Other column.

(2)Excludes $6.2 billion of long-term debt principal that is subject to compromise and the effect of any principal accelerations due to cross defaults or other revisions to our debt agreements due to conditions described in Note 1.

Contingent Stock Agreement

In connection with the acquisition of The Hughes Corporation (“Hughes”) in 1996, we entered into a Contingent Stock Agreement (“CSA”) for the benefit of the former Hughes owners or their successors (the “Beneficiaries”). This acquisition included various assets, including Summerlin (the “CSA Assets”), a development in our Master Planned Communities segment.  The CSA is an unsecured obligation of a Debtor and therefore, our obligations to the former Hughes owners or the Beneficiaries under the CSA are, and will be, subject to treatment in accordance with applicable requirements of the bankruptcy law and any plan of reorganization that may be confirmed by the Bankruptcy Court.

Under the terms of the CSA, GGP was required through August 2009  to  issue shares of its common stock semi-annually (February and August) to the Beneficiaries with the number of shares to be issued in any period based on cash flows from the development and/or sale of the CSA Assets and GGP’s stock price. The Beneficiaries’ share of earnings from the CSA Assets is accounted for as a land sales operations expense.  During 2009, GGP was not obligated to deliver any shares of its common stock under the CSA as the net development and sales cash flows were negative for the applicable periods. During 2008, 356,661 shares of GGP common stock were delivered to the Beneficiaries pursuant to the CSA.

Under the terms of the CSA, GGP is also required to make a final distribution to the Beneficiaries in 2010, following a final valuation of the remaining CSA Assets as of December 31, 2009. The CSA sets forth a methodology for establishing this final valuation and requires the payment, if any, be made in shares of GGP common stock. GGP would account for any final distribution to the Beneficiaries as an additional GGP investment in the CSA Assets (that is, contingent consideration). However, since GGP’s plan of reorganization is still being developed, treatment of the CSA and the final distribution amount, if any, to the Beneficiaries cannot currently be determined and therefore, no liability for any final distribution amount is probable or estimable at December 31, 2009. The carrying amount of the CSA Assets as reflected in the Company’s Consolidated Financial Statements is not the final valuation, and should not be relied upon for purposes of determining, or estimating, the final distribution amount, if any, to the Beneficiaries.

NOTE 11RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

On June 12, 2009, the FASB issued new generally accepted accounting guidance that amends the consolidation guidance applicable to variable interest entities.  The amendments to the consolidation guidance affect all entities and enterprises currently within the scope of the previous guidance and are effective to the Company on January 1,

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2010.  Although the amendments significantly affected the overall consolidation analysis under previously issued guidance, we do not expect changes to our consolidated financial statements for this new guidance.

In June 2009, the FASB issued new generally accepted accounting guidance related to the accounting standards codification and the hierarchy of generally accepted accounting principles.  The codification’s content will carry the same level of authority, effectively superseding previous related guidance.  The GAAP hierarchy has been modified to include only two levels of GAAP: authoritative and nonauthoritative. This new guidance was effective for us in the third quarter of 2009.  The effect of the implementation of this new guidance on our consolidated financial statements resulted in the conversion of previously referenced specific accounting guidance to a “plain English” reference.

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