NEW YORK, Nov 5 (Reuters) - Mall owner General Growth Properties Inc said Wednesday it made inroads into a looming debt obligation, posted quarterly funds from operations that fell 11 percent due impairment costs, and cut its forecast for 2008.
The No. 2 U.S. mall operator reported funds from operations (FFO) of $185.4 million, or 58 cents per share, after issuing 22.8 million more shares in March. That was far short of the 76 cents per share analysts on average had forecast, according to Reuters Estimates. Last year it posted third-quarter FFO of $208.4 million, or 71 cents per share.
Focusing only on its retail property business, the company reported core FFO of $205.7 million, or 64 cents per share, up from $200.7 million, or 68 cents a share, when the company recognized a litigation award.
Chicago-based General Growth said it recently got a $225 million short-term secured loan, adding to a $1.51 billion secured portfolio facility it arranged in July. That leaves about $900 million of property secured debt and $58 million of corporate debt due within the next four weeks.
The Chicago-based real estate investment trust lowered its 2008 forecast to core FFO per share in the range of $2.85 to $2.95, down from $3.42, citing lower mall and shopping center operation income, impairments and higher refinancing costs.
In pre-market activity, shares traded at $4.01, down from its Tuesday close of $4.49 per share on the New York Stock Exchange.

(Reporting by Ilaina Jonas, editing by Gerald E. McCormick) Keywords: GENERALGROWTH/ (ilaina.jonas@thomsonreuters.com ; +1 646 223 6193; Reuters Messaging: ilaina.jonas.reuters.com@reuters.net)

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