The Buck’s Rebound Begins Here May 27, 2009
Pers Pe rshi hing ng Square Capit Capital al Management Management,, L.P. L.P.
Disclaimer The analysis and conclusions of Pershing Square Capital Management, L.P. ("Pershing Square") regarding General Growth Growth Properties, Inc. and its its affiliates (collectively, (collectively, “GGP” or the “Company”) are based on publicly publicly available information. Pershing Square recognizes recognizes that there may be be confidential or otherwise non-public information information in the possession of the Company that could lead the Company to disagree with Pershing Square’s conclusions. The analyses provided include certain estimates and projections prepared with respect to, among other things, the historical historical and anticipated operating operating performance performance of the Company. Such statements, estimates, estimates, and projections reflect various assumptions by Pershing Square concerning anticipated results that are inherently subject to significant economic, economic, competitive, and other uncertainties and contingencies contingencies and have been been included solely for illustrative illustrative purposes. purposes. No representations, representations, express or implied, are made made as to the accuracy accuracy or completeness of such statements, estimates estimates or projections projections or with respect to any other other materials herein. Actual results results may vary materially from the estimates and projected results contained herein. Pershing Pershing Square Square advise advises s funds funds that are are in the busines business s of trading trading - buying buying and selling selling - public public securities. Pershing Pershing Square owns GGP equity, equity, total return swaps, swaps, and GGP unsecured unsecured debt. It is possible that there will be developments developments in the future that cause such funds to change their positions regarding the Company and possibly increase, reduce, dispose of, or change the form of their investment in the Company. 1
Agenda
Why We Like Li ke Ge General Gro Growt wth h Propert Pro perties ies
A
B r i ef His Hi s t o r y
Not Your Typica ypic al Ba B ankruptcy nkru ptcy
GGP’s Assets Are Ar e Gre Grea ater ter Than Its Its Liabilitie Liabilit ies s
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Why Do We Like GGP?
Ala Moana
What is GGP?
GGP REIT
GGMI
MPC
Includes Inclu des Retail Retail & Office Offi ce Propert Properties ies
General Ge neral Grow th Ma Manageme nagement nt Inc.
Master Ma ster Planned Communi ties
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Over 200 regional malls (>160mm sq ft) (1) / outdoor shopping centers Over 30 grocery-anchored shopping centers Office properties in Arizona, Nevada and near Maryland / Washington D.C.
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1.3bn mall visits per year
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>24,000 tenants
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>3,700 employees (2)
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Provides management, leasing and marketing services Over 60% of revenue derived from third party (non-GGP) malls Manages many of GGP’s JV malls
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Includes anchor GLA and the Company’s pro rata share of JV malls. >400,000 employees including retail tenants.
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Develops and sells land for residential and commercial use Land located near Maryland / Washington D.C., Summerlin, NV and Houston, TX ~18,000 saleable acres
Diverse Footprint GGP is geographi g eographically cally we w ell-diversif ll -diversif ied with wit h malls mall s in 44 states. states. The The Company also ha h as intere in terests sts in join j ointt ventures in Brazil Brazil and Turkey
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Diverse Tenant Base GGP has over 24, 24,000 000 tenants, with wit h its it s largest tena t enant nt accou acc ount nting ing for fo r only on ly 2.7% 2.7% of revenue revenu e as as of o f March 31, 31, 200 2009 9
Memo: Mark Market et Cap
$11.8bn 4.0bn 2.4bn 1.8bn 5.0bn 3.0bn Private Private Private 6.0bn
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Source: GGP Q1’09 operating supplement. 6
High Quality Assets Gree reen Stree Streett assigns assigns an ‘A’ grade to 73 malls malls in GGP’s portfolio portfo lio Not Included Other Examples: Faneuil South Ward
Hall Marketplace
Street Seaport Centers (Honolulu, HI)
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Source: Green Street.
GGP’s portfo portfolio lio consists consis ts of many many of the be best st malls malls in America 7
High Quality Assets (Cont’d)
“Indicative of the strength within our portfolio is the performance of our 50 most productive United States centers. These properties generated average sales per square foot of approximately $648. Not only do these 50 centers produce tremendous sales per square foot, they also represent approximately 50% of our total mall NOI. This is one more example of the quality of our portfolio, and quality will be more important than ever as we move forward in 2008 and 2009.” –John Bucksbaum, Chairman and Former CEO, July 31, 2008 Because the NO Because NOI from GGP GGP’s highest quality malls sh ould be valued valued at materially materially l ower cap rates than its low lower er quality malls, a substantial substantial majority of GGP’s equity value is in the t he Comp Company’s any’s best assets assets 8
