Chicago-based General Growth Properties Inc. (GGP) has announced plans to spin off a 30-mall portfolio, totaling 21.1 million square feet, to holders of GGP common stock in the form of a taxable special dividend. The dividend is expected to comprise common stock in Rouse Properties Inc., a recently formed company to which GGP plans to transfer the portfolio.
Rouse is expected to qualify as a real estate investment trust and be listed on the New York Stock Exchange. The GGP portfolio consists of malls in 19 states.
Separately, GGP announced its second-quarter results, with core funds from operations of $199.6 million, or $0.20 per diluted share. This represents a decline from $206.1 million, or $0.63 per diluted share, for the same period in 2010. The net loss attributable to common stockholders for the second quarter was $203.0 million, compared to a net loss of $117.5 million for the second quarter of 2010. Contributing to this change was a $58.9 million charge recorded in the second quarter related to the finalization of default interest on certain restructured loans.
