Forbes magazine recently gave General Growth an A-plus rating, one of just two it handed out to REITs. "We're one of the last Blue Chips, and we're proud of it," says chief executive officer John Bucksbaum.

The company's nine-year run of consecutive quarterly FFO growth should continue, General Growth officials indicated during a conference call Tuesday, with the question being by how much. FFO could increase 7% to $5.31 per share, says executive vice president Bernard Friebaum, if the economy does not slip and the REIT is able to acquire a few malls. If the economy bounces back strong and the acquisition climate improves, Friebaum projects a 12% FFO increase to $5.56 per share.

Meanwhile, the REIT has filed a shelf registration with the Securities and Exchange Commission allowing it to issue additional common stock worth up to $2 billion. However, General Growth, which was involved in a $2.55-billion CMBS offering late last year, could go on a $1-billion buying spree without the additional equity from a new stock offering, Friebaum notes.

Until December, General Growth was a bidder for Rodamco North America NV's $5.3-billion portfolio, which last month went to Westfield America Trust, Simon Properties and the Rouse Co. "I'd say we were disappointed. It had nothing to do with pricing," Bucksbaum says. "There was nothing done on this side to prohibit us from being successful…The choice was made, and that was the decision."

General Growth will continue to be choosy when it comes to signing new tenants, Bucksbaum vows. "We strive to be careful and diligent in picking our retail partners," he adds. "One thing we will not do is lease space for the sake of short-term occupancy."

General Growth has been less affected by retail bankruptcies than other retail REITS and operating companies. IT had seven Montgomery Wards stores and two Kmarts across its portfolio, representing 1% of its $1.2-billion revenue, Bucksbaum says.

Jewelry stores, "lifestyle" retailers and junior apparel posted a strong fourth quarter, says president and chief operating officer Robert A. Michaels. Meanwhile, department stores lagged specialty shops, he adds.

Fourth-quarter leasing activity was "relatively strong," says Michaels, who nonetheless expects a flat first half of 2002 before a pick-up in the third quarter. "For the most part, retailers are staying with their 2002 plans and working on 2003 deals," Michaels says.