General Growth Properties Inc. (GGWPQ) posted a sharply wider
fourth-quarter loss on write-downs of $749 million as the company
continued a public-relations fight against the $10 billion proposed
takeover bid from larger rival Simon Property Group Inc. (SPG).
"The operating results we reported today demonstrate we are
successfully executing our business strategy to create long-term
value for our stakeholders," contended Chief Executive Adam
Metz.
The results' disclosure came hours after General Growth said it
will establish a bidding process for the company that will allow
Simon to compete against a planned investment from Brookfield Asset
Management Inc. (BAM). The move is a response to creditors that are
complaining about the mall giant's decision to reject Simon's
proposal, which would pay off their $7 billion in claims in
full.
General Growth's loss widened to $612.4 million, or $1.96 a
share, from $6.5 million, or 2 cents a share, a year earlier.
Excluding write-downs and other impacts, funds from operations--a
key REIT profitability metric--fell to 61 cents from 74 cents as
revenue dropped 12% to $794.1 million.
-By Kevin Kingsbury; Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com