CHICAGO-General Growth Properties Inc. needs more time to add up its tax liabilities resulting from its 2004 acquisition of the 40-million-sf Rouse Co. portfolio. It has asked the Securities and Exchange Commission for a 15-day extension to allow its auditors more time to complete the company's annual report.
During its last earnings conference call, chief financial officer Bernard Freibaum noted financial information on the Rouse portfolio was incorporated into General Growth Properties' accounting system late last year. The company's auditors are estimating the potential tax liability for the REIT if it sold malls bought in the $7.2-billion deal.
Inexperience with the Rouse Co. portfolio, as well as writing capital costs of scrapped developments and land sales pushed into 2006 were blamed for funds from operation coming in 3% lower than expected in 2005. General Growth Properties officials say they still expect 2006 funds from operations to increase 7% to 10% to $3.27 to $3.37 per share.
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