General Growth Properties to Join S&P 500

   By Anna Prior 
 

S&P Dow Jones Indices said General Growth Properties Inc. (GGP) will join the S&P 500 index, replacing Molex Inc. (MOLX), a move that sent the real-estate investment trust's shares higher after hours.

The REIT's shares were up 5.1% at $21.31 in recent after hours trading. The shares of companies joining the S&P 500 often rise because many portfolio managers try to track the index. To do that, they must buy shares of the companies that become part of the index.

The change will occur after the close of trading Monday as privately-held Koch Industries Inc. is acquiring Molex in a deal expected to be completed on that date, said S&P Dow Jones Indices.

General Growth, which owns and manages retail properties in shopping malls across the U.S., has sold and spun off assets in an effort to improve its business since exiting bankruptcy in 2010. The company is also accelerating its redevelopment pipeline, which General Growth says will help generate growth in future years.

General Growth, which is headquartered in Chicago, in October reported it swung to a third-quarter profit amid fewer expenses.

Through Wednesday's close, General Growth's stock has risen 2.3% since the start of the year.

Write to Anna Prior at [e-mail]

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