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General Growth Properties Reports Common Share Repurchase

February 18, 2014

General Growth Properties, Inc. announced the acquisition of 27,624,282 of its common shares from affiliates of Pershing Square Capital Management at $20.12 per share for total consideration of approximately $556 million.

According to a release, the Company used available liquidity to fund the repurchase transaction. Pershing Square no longer holds any common shares of the Company.

The transaction reduces the Company's total diluted common shares outstanding to approximately 937 million shares. Assuming the transaction occurred at the beginning of 2014, the pro forma positive impact on 2014 Company Funds From Operations per diluted common share would have been approximately $0.02 annualized and the impact on GAAP net income per diluted common share is de minimis. The common share repurchase transaction was not included in the Company's earnings guidance for 2014.

The Company is acquiring the shares at an implied capitalization rate of approximately 6 percent, which it believes is a discount to current private market valuations for U.S. retail properties. The capitalization rate is based on the Company's expectation for 2014 Company Net Operating Income of approximately $2.25 billion, as previously disclosed in its first quarter earnings conference call held on February 4, and net debt of approximately $18.3 billion as of December 31, 2013.

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