Nov. 5 (Bloomberg) -- General Growth Properties Inc. fell as much as 25 percent in New York trading after the U.S. mall owner reported a wider third-quarter loss, and abandoned its quarterly dividend.

The Chicago-based company cut its forecast for 2008 funds from operations, excluding items, saying it now expects to earn $2.85 to $2.95 a share. General Growth, the second-largest U.S. shopping-mall owner, had expected FFO of $3.42 a share.

General Growth is raising cash as investors dump shares on concern the company won't be able to refinance debt due this year. The company has lost more than 90 percent of its market value this year, and last month fired Chief Financial Officer Bernard Freibaum after he sold 2.95 million shares to meet margin calls, It's scrapped all future development plans.

``Actions taken by the new management team to reduce capital spending over the next few years, while necessary, may not be enough,'' Banc of America Securities LLC analysts led by Christy McElroy, who have a neutral rating on General Growth's shares, said in a note to investors this morning.

``We suspect that with management having been so focused on the balance sheet, operations may have been affected,'' Banc of America wrote.

Shares Fall

General Growth declined $1.08, or 24 percent, to $3.41 at 10:06 a.m. in New York Stock Exchange composite trading. Its 91 percent decline this year compares with a 34 percent decline in the Bloomberg Real Estate Investment Trust Index.

During a conference call today, analysts and investors criticized General Growth executives for refusing to give details of individual loans the company's attempting to renegotiate. Interim Chief Executive Officer Adam S. Metz said that while the company ``will continue to release loan information in the aggregate,'' it won't discuss loans individually.

The mall owner last week announced the replacement of CEO John Bucksbaum with Metz. Bucksbaum remains chairman. Thomas H. Nolan Jr. was named interim president in place of Robert Michaels, who remains chief operating officer.

`Deals Take Time'

``We are fully aware of our situation,'' Metz said today. The sale of properties is part of General Growth's recovery plan, and the company expects to announce completed transactions by the end of the year, he said. ``These deals take time.''

General Growth intends to sell malls in Las Vegas as part of the plan, and said today it has funded $1.7 billion of new or replacement debt since June 30. It has about another $958 million of borrowings maturing by Dec. 1 that still needs to refinanced and extended.

``As of today, we are current on all of our debt obligations,'' Edmund Hoyt, the company's interim chief financial officer, said during the call.

The third-quarter net loss widened to $15.4 million, or 6 cents a share, from $9.4 million, or 4 cents, a year earlier, General Growth said in a statement today. The company wrote down the value of a development in Massachusetts.

Revenue fell 5.7 percent to $814.7 million after General Growth sold less land. Funds from operations, or net income excluding items, was 58 cents a share, lower than the 73 cents projected by 13 analysts surveyed by Bloomberg. The measure doesn't comply with generally accepted accounting principles.

Dividend Canceled

The company said it won't pay a third quarter dividend. In the second quarter, it paid 50 cents a share. Metz said during today's conference call that it's unlikely General Growth's board will be ``restoring our dividend in the near term.''

The same day Bucksbaum resigned General Growth hired Goldman Sachs Group Inc. and Eastdil Secured to help sell its retail properties in Las Vegas: Fashion Show Mall, Grand Canal Shoppes at the Venetian, and the Shoppes at the Palazzo.

Simon Property Group Inc., the biggest U.S. shopping-mall owner, said earlier this week it isn't interested in buying General Growth. CEO David Simon said that he ``cannot envision a set of circumstances that would result in a purchase of General Growth.''

General Growth has hired an executive-search firm to look for a permanent chief financial officer, Metz said during today's conference call, adding that he and Nolan plan to remain in their positions for now.

``There is no current search for a CEO or president,'' Metz said.

To contact the reporters on this story: Peter Woodifield in Edinburgh at pwoodifield@bloomberg.net; Daniel Taub in Los Angeles at dtaub@bloomberg.net.

Last Updated: November 5, 2008 10:30 EST