Missing second-quarter estimates, General Growth Properties Inc. lowered its 2008 earnings forecast and announced it would defer $500 million of development spending over the next 18 months, Reuters reported.

The Chicago-based developer and manager of Jordan Creek Town Center in West Des Moines said funds from operations (FFO) were $228 million, or 71 cents per share, compared with $210.3 million, or 71 cents per share, a year ago. This fell below the average estimate of 74 cents per share of analysts polled by Reuters.

Core FFO for General Growth’s retail centers was $228.4 million, compared with $216.6 million a year ago. By the end of the quarter, occupancy at its shopping centers rose to 93.2 percent from 92.9 percent a year ago.

General Growth lowered its 2008 forecast for core FFO to $3.42 per share from a range of $3.52 to $3.58, expecting weak economic conditions to persist through the second half of the year.

It also chose to defer the opening of new development and redevelopment projects because of the current retail and credit market conditions and will wait until economic conditions are more favorable and financing is more available.

In early-morning trading, General Growth’s shares were down 9.94 percent to $27.10, compared with a 52-week high of $57.84 set last year.

Today Citigroup Inc. downgraded General Growth shares to “sell” from “hold.”