Reggie Middleton

General Growth's Offer Provides Further Asset Value Clarity

I think it is safe to assume that I know GGP better than most (see boombustblog.com/index... and www.forbes.com/2009/03...). I tracked this company and shorted it from $60 all the way down.

I live in NYC and am very familiar with a few of their properties. You are being very inaccurate in your assumptions. The Seaport is embroiled in tenant litigation, and may very well have zoning issues and problems getting funds from the city in this environment in the case of any redevlopment.

It is a very valuable property, so much so that it would be near useless to consider a pool of properties to have similar values as their crown jewel. I considered going after the Seaport, but I feel that there will be better opportunities at a later point. I believe I am better than real and financial asset valuation than most - then again I could just be full of myself.

A Model Valuation of GGP

The writings in "my" analysis states clearly:

"However if we expect GGP to raise additional capital of $1.75 billion through private placement, GGP’s valuation increases to around $7.7 billion due to savings in interest expenses. However as a result of the dilutive effect (due to the increase in shares outstanding) GGP’s per share valuation declines to $26.5 (under our base case assumption), implying a further downward potential of 35.3%."

Thus, not only did we take into consideration the equity captial infusion, we took it at 2x what actually occured. These numbers are very conservative. I hope you would read a little more carefully before being so critical.

I diluted the guest commentators numbers to reflect the equity dilution and you are right in that I didn't include the funds from the offering explicitly - which is why the they are "comments" in italics and the original commentary and numbers are there for all to see and agree or disagree with as all deem fit.

I very rarely get around to commenting on Seeking Alpha, so anyone who has questions or comments that they actually wish to be addressed should direct them to my blog, boombustblog.com. I will be glad to engage you there where I appear on a regular basis.