General Growth sinks on lower outlook, debt fears

General Growth's shares have lost about 90 percent of their value over the past three months amid concerns about the real estate investment trust's ability to sell debt and turmoil in the Chicago-based company's executive ranks.

Its stock shed $2.24, or 50 percent, to $2.25 in trading Wednesday after the company reported disappointing third-quarter results, cut its year-end forecast and said it needs to refinance $900 million in debt by the start of next month.

"Unfortunately in real estate it isn't possible to turn things around immediately, so you're going to have to bear with us," Interim Chief Executive Adam Metz said on a conference call with analysts, where he detailed plans to "drastically" reduce spending on new developments and sell off assets.

"We realize that we need to generate billions of dollars" to reduce debt levels, he said. "Unfortunately these transactions take time."

Last month, the Chicago-based mall owner's board removed its CEO, president and chief financial officer after disclosing that the former CEO John Bucksbaum's family trust provided $90 million in personal loans to cover margin debt for the company's former chief financial officer and president.

Metz declined to answer an analyst's question about whether General Growth has received an offer for the entire company. He also said the company is searching for a permanent CFO, but not a new CEO or president.

General Growth's dismal results came as another shopping center operator, Kimco Realty Corp., lowered its full-year outlook to below Wall Street expectations amid growing problems at retail tenants.

General Growth has suspended its dividend and sold off $47 million in assets since June 30, but analysts are unsure whether the company's new management will be able to solve the company's problems.

The company's management also said Wednesday it doesn't envision restoring the dividend in the near term, but said its board will review the policy periodically.