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 anna.prior@wsj.com
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