General Growth Properties, the U.S. mall owner expected to emerge from bankruptcy in early November, reported negative third-quarter funds from operations, taking a hit from reorganization expenses.
Funds from operations for its core mall properties were losses of $29.3 million, or 9 cents a share, compared with a positive $88.9 million, or 28 cents a share a year earlier.
Core FFO excludes results from the Master Planned Communities segment and a provision for the benefit from income taxes.
The losses were primarily driven by an increase of about $79.9 million in net reorganization expense in 2010 and the recognition of about $83.7 million of incremental accrued interest expense, the company said in a statement.
During the third quarter, the company signed 1.8 million square feet of new and renewal leases. Tenant sales at comparable properties increased by 10.2 percent.
Retail center occupancy increased marginally to 91.4 percent at Sept. 30, from 91.3 percent comparable period a year ago.
Chicago-based General Growth, the second-largest owner of U.S. malls, filed for bankruptcy protection in 2009.
Under the reorganization plan, investors led by Brookfield Asset Management Inc (BAMa.TO), and hedge funds Fairholme Funds Inc and Pershing Square Capital Management LP will put up $6.8 billion of new capital to fund the new company.
