CHICAGO-Locally based General Growth Properties, which emerged from bankruptcy late last year, is working on cleaning up its balance sheet. The REIT has posted a 7.3% same-store sales gain from first quarter 2010 to first quarter 2011, and is working to sell assets and raise capital to pay off debt.

In its first quarter conference call to investors Wednesday, CEO Sandeep Mathrani said he has personally toured 131 of the 169 malls owned by GGP, and has created business plans for each one. “We have an extraordinary portfolio of assets,” Mathrani said during the call. “Our assets are mostly set as the number one or two retail mall in each area. There may be low productivity in some of our portfolio, but that’s better than low performance.”

The company also reported that regional mall occupancy increased 40 basis points to 92.4% from Q1 2010. The REIT signed 2.2 million square feet of leases during the first quarter, and has sold $300 million of non-core assets since November. “We’re under contract for another $387 million worth of non-core assets, and we plan to market another $350 million worth of assets for the remainder of the year,” Mathrani said.

He said the company is trying to focus on core operations, while also solidifying its assets. The firm purchased eight non-owned anchors at GGP-owned centers during the quarter to firm up control, Mathrani said. There’s plans to cut almost 20 of the most underperforming malls from the books, from either sales or giving back to lenders.

The company reported funds from operations of $220.9 million for the first quarter 2011. The trust declared a 10 cent per share dividend for both the first and second quarter. The stock price peaked at $16.41 per share Wednesday, its highest level since 2008, before settling at $16.35 at Wednesday’s close.

Mathrani said retailers are demonstrating smart growth practices, consolidating in some areas and expanding in others, while foreign tenants are also looking to expand into US malls. “However, the industry will continue to feel the strain of macroeconomic factors, such as increases in food and gas prices. Our goal is to maintain a positive momentum on the leasing front,” he said.