Dabqs

General Growth Properties: Ackman vs. Hovde vs. Me

Reggie,
Two things--

First, I would suggest that you might better profit if you consistently published your complete thoughts in entirety. If you were to do this and develop a considerable following, the natural result would be that you would be a well-paid speaker, or book writer. I must add that many who have preceded you to success have taken this route.

Secondly, just as an interesting point, how many people were you able to get to subscribe from this article/approach?

dabqs

Ackman's Pershing Square Misleads About General Growth Properties' Equity Value

Tom,
I think you are incorrect on a number of points. First, the lower cap rate Ack assigns GGP relative to Simon is largely due to the higher percentage of class A malls that GGP owns as a percent of its overall business as compared to the percent of Class A malls that Simon owns in comparison to its overall business. On a value basis, Class A malls are simply worth more than lesser properties, and this must be reflected in the cap rate assigned a REIT.

Secondly, Ack posits that the BK judge may well make the decision to extend maturities for 7 years. Ultimately, it is the judge's decision that matters, now that GGP is in BK court. Both Ack and creditholders can wish all they want for better terms, but now that the decision is out of their hands and ultimately will be decided by the judge, all both sides can due is argue their points and hope for the best. A 7 year extension is simply Ack's thought on what the judge may ultimately rule.

Glad to hear that you still come up with residual equity value even with your more conservative assumptions. And glad to have your input!

dabqs

Commercial Real Estate: From 'Best' to 'Worst of Times' in Seven Months Flat

Mad Hedgie,

It may be wise to watch what Soros is DOING with his dollars, instead of what he is SAYING. He has recently began building a position in CBL, a well known retail REIT.

I have observed that truly great investors buy when others are petrified with fear, and while the media is beating the drum of negative news toward a sector.

Have you given some thought to this possibility?

Dabqs