exv99w1

Exhibit 99.1

FINANCIAL STATEMENTS OF TRCLP, A WHOLLY OWNED SUBSIDIARY OF GGPLP

The following is unaudited consolidated financial information for our subsidiary, TRCLP, as of March 31, 2007 and December 31, 2006 and for the three months ended March 31, 2007 and 2006.

MANAGEMENT’S DISCUSSION OF TRCLP OPERATIONS AND LIQUIDITY

Overview

Effective January 1, 2007, Rouse Property Management, Inc. (“RPMI”), a taxable REIT subsidiary of TRCLP, was merged into GGMI, a taxable REIT subsidiary of GGPLP. Pursuant to SFAS No. 144, the operations of RPMI prior to the merger date have been reported as discontinued operations in the accompanying TRCLP financial statements.

We also restructured an additional taxable REIT subsidiary (“TRS”) effective March 31, 2007. Through a series of transactions, a private REIT owned by GGPLP was contributed to TRCLP and that additional TRS became a qualified REIT subsidiary of that private REIT (“the Private REIT Merger”). This Private REIT Merger resulted in approximately a $330 million decrease in our net deferred tax liabilities, an approximate $30 million increase in our current taxes payable and an approximate $300 million income tax benefit related to the properties now owned by the private REIT. In accordance with the guidance established for mergers involving affiliates under common control, the financial statements of TRCLP have been restated to include the results of the private REIT for all periods presented, similar to a pooling of interests. This restructuring increased total assets by $2.5 million, total liabilities by $2.1 million and total partners’ capital by $0.4 million as of December 31, 2006. Net income for the quarter ended March 31, 2006 was also increased by $15.3 million.

Revenues

Tenant rents (which includes minimum rents, tenant recoveries, and overage rents) increased in 2007 primarily due to increased tenant rents at various properties due to increased occupancy and rental rates as compared to 2006. Such impact was partially offset by a $9.0 million decrease in lease termination income. Recoverable expenses at various properties also increased in 2007 due to higher occupancy and property operating expenses. These increases in revenue were more than offset by a $113.4 million decrease in land sales due to decreased sales at our Summerlin and Columbia developments during 2007.

Operating expenses

Real estate taxes increased approximately $0.9 million in 2007 due to increased property taxes at certain properties. Repairs and maintenance costs increased in 2007 due to increased snow removal and cleaning costs as compared to 2006. Property operating costs increased primarily as a result of increased insurance and utility costs in 2007. Real estate taxes, repairs and maintenance and other property operating expenses are generally recoverable from tenants and the increases in these expenses are generally consistent with the increases in tenant recovery revenues.

Net income

Interest expense increased as a result of higher interest rates and higher outstanding debt balances. The benefit (provision) for income taxes was directly impacted by the TRS restructurings mentioned above.

Cash position at March 31, 2007

TRCLP’s cash and cash equivalents decreased $31.1 million to $34.3 million as of March 31, 2007 as compared to December 31, 2006. The cash position of TRCLP is largely determined at any point in time by the relative short-term demands for cash by TRCLP and GGP, TRCLP’s parent. TRCLP expects to remain current with respect to its debt obligations and be able to access additional funds as required from GGP.

THE ROUSE COMPANY, L.P. AND SUBSIDIARIES
A SUBSIDIARY OF GENERAL GROWTH PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands)


	March 31,			December 31,
	2007			2006
Assets
Investment in real estate:
Land	$	1,556,361		$	1,552,570
Buildings and equipment		10,872,077			10,855,498
Less accumulated depreciation		(1,120,499	)		(1,039,325	)
Developments in progress		255,281			247,295

Net property and equipment		11,563,220			11,616,038
Investment in and loans to/from Unconsolidated Real Estate Affiliates		1,171,546			1,176,478
Investment land and land held for development and sale		1,685,181			1,655,838

Net investment in real estate		14,419,947			14,448,354
Cash and cash equivalents		34,308			65,416
Accounts and notes receivable, net		142,801			143,795
Goodwill		399,459			371,674
Deferred expenses, net		98,177			96,218
Prepaid expenses and other assets		659,367			693,456

Total assets	$	15,754,059		$	15,818,913


Liabilities and Partners’ Capital
Mortgages, notes and loans payable	$	9,276,128		$	9,318,327
Deferred tax liabilities		916,896			1,302,205
Accounts payable and accrued expenses		657,374			611,478

Total liabilities		10,850,398			11,232,010


Commitments and contingencies		—			—

Partners’ capital:
Partners’ capital		8,573,176			8,187,980
Accumulated other comprehensive income		(138	)		(9	)

Total partners’ capital, before receivable from General Growth Properties, Inc.		8,573,038			8,187,971
Receivable from General Growth Properties, Inc.		(3,669,377	)		(3,601,068	)

Total partners’ capital		4,903,661			4,586,903

Total liabilities and partners’ capital	$	15,754,059		$	15,818,913

Reference is made to the accompanying TRCLP Overview for a description of modifications made to previously issued 2006 information as a result of the 2007 Private REIT Merger.

THE ROUSE COMPANY, L.P. AND SUBSIDIARIES
A SUBSIDIARY OF GENERAL GROWTH PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
(In thousands)


	Three Months Ended
	March 31,
	2007			2006
Revenues:
Minimum rents	$	211,757		$	217,656
Tenant recoveries		99,211			91,938
Overage rents		7,144			5,973
Land sales		23,793			137,220
Other		12,146			14,121

Total revenues		354,051			466,908

Expenses:
Real estate taxes		27,008			26,181
Repairs and maintenance		25,703			23,632
Marketing		5,033			4,663
Other property operating costs		55,387			47,045
Land sales operations		20,144			98,598
Provision for doubtful accounts		3,867			4,270
Property management and other costs		16,106			16,307
Depreciation and amortization		98,762			93,118

Total expenses		252,010			313,814

Operating income		102,041			153,094

Interest income		1,180			1,755
Interest expense		(108,329	)		(98,513	)

Income (loss) before income taxes, minority interest and equity in income of unconsolidated affiliates		(5,108	)		56,336
Benefit (provision) for income taxes		290,704			(27,281	)
Minority interest		(2,182	)		(2,559	)
Equity in income of unconsolidated affiliates		8,160			8,000

Income from continuing operations		291,574			34,496
Income from discontinued operations		—			3,118

Net income	$	291,574		$	37,614


Comprehensive income, net:
Net income	$	291,574		$	37,614
Other comprehensive income:
Net unrealized losses on financial instruments		(116	)		(523	)
Unrealized gains (losses) on available-for-sale securities		(13	)		724

Comprehensive income, net	$	291,445		$	37,815

Reference is made to the accompanying TRCLP Overview for a description of modifications made to previously issued 2006 information as a result of the 2007 Private REIT Merger.

THE ROUSE COMPANY, L.P. AND SUBSIDIARIES
A SUBSIDIARY OF GENERAL GROWTH PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)


	Three Months Ended
	March 31,
	2007			2006
Cash flows from operating activities:
Net income	$	291,574		$	37,614
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization, including discontinued operations		98,762			93,118
Equity in income of unconsolidated affiliates		(8,160	)		(8,033	)
Operating distributions received from unconsolidated affiliates		8,004			8,033
Participation expense pursuant to Contingent Stock Agreement		4,528			38,480
Land development and acquisition expenditures		(41,351	)		(47,099	)
Cost of land sales		7,887			53,428
Provision for doubtful accounts, including discontinued operations		3,867			4,270
Restructuring tax benefit		(297,645	)		—
Straight-line rent amortization		(5,177	)		(9,926	)
Amortization of intangibles other than in-place leases		(540	)		340
Non-cash interest expense		(9,100	)		(9,834	)
Net changes:
Accounts and notes receivable		30			15,797
Other assets		2,056			5,792
Accounts payable and accrued expenses and deferred tax liabilities		(613	)		126
Other, net		518			962

Net cash provided by operating activities		54,640			183,068


Cash flows from investing activities:
Acquisition/development of real estate and property additions/improvements		(82,927	)		(58,003	)
Proceeds from sales of investment properties		—			6,208
Increase in investments in unconsolidated affiliates		(1,407	)		(5,390	)
Distributions received from unconsolidated affiliates in excess of income		5,039			2,828
Change in restricted cash		1,294			(1,541	)
Insurance recoveries		871			7,500
Other, net		1,340			7,266

Net cash used in investing activities		(75,790	)		(41,132	)


Cash flows from financing activities:
Proceeds from issuance of mortgages, notes and loans payable		—			943,000
Principal payments on mortgages, notes and loans payable		(31,959	)		(257,536	)
Deferred financing costs		—			(3,283	)
Advances to General Growth Properties, Inc.		(76,921	)		(859,059	)
Capital contribution from GGPLP		100,000			—
Other, net		(1,078	)		(580	)

Net cash used in financing activities		(9,958	)		(177,458	)


Net change in cash and cash equivalents		(31,108	)		(35,522	)
Cash and cash equivalents at beginning of period		65,416			74,356

Cash and cash equivalents at end of period	$	34,308		$	38,834


Supplemental disclosure of cash flow information:
Interest paid	$	116,186		$	109,730
Interest capitalized		11,194			9,407
Income taxes paid		20,911			2,019