GENERAL Growth Properties, the second-largest United States mall owner, may sell assets or equity to raise capital after the company's shares slumped.

General Growth will also consider "strategic business combinations" to boost its stock, the Chicago-based company said yesterday.

The real estate investment trust is "developing a comprehensive strategic plan to generate capital from a variety of potential sources," it said.

General Growth declined in four of the last five days of New York Stock Exchange trading on concern that the company won't be able to refinance debt or raise capital, Bloomberg News said. In yesterday's statement, General Growth said it will "actively pursue" sources of financing to meet short-term obligations.

Insolvency threat

The company has a higher debt-to-asset ratio than Simon Property Group, the largest US mall owner, and there's a "real threat" of insolvency, Rich Moore, an analyst at RBC Capital Markets in Cleveland, said.

General Growth has declined 44 percent in six months, reducing the company's market value to US$5.73 billion. The Standard and Poor's 500 Index has dropped 7 percent during that period.

The company said last Wednesday that it had obtained additional mortgage financing under a US$1.75 billion facility.

The company said yesterday that occupancy reached a record 93.2 percent in the second quarter. It said it expects to be in a position to offer long-term fixed-rate mortgage financing to banks by the end of November.