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General Growth Properties (GGP)

General Growth Properties (GGP). And its ugly step-sister…. Melody Chu. Original Pitch Summary. Business. (1) Includes anchor GLA and the Company’s pro rata share of JV malls. (2) >400,000 employees including retail tenants. Properties.

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General Growth Properties (GGP)

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  1. General Growth Properties (GGP) And its ugly step-sister… Melody Chu

  2. Original Pitch Summary

  3. Business (1) Includes anchor GLA and the Company’s pro rata share of JV malls. (2) >400,000 employees including retail tenants.

  4. Properties • Geographically well-diversified with malls in 44 states, Brazil, and Turkey • Has over 24,000 tenants with its largest tenant accounting for only 2.7% of revenue as of March 31, 2009 • Quality assets with ‘A’ grade to 73 malls in GGP’s portfolio1 (1) As rated by Green Street

  5. Why Malls?

  6. Company History (2008-Current)

  7. Why did GGP declare bankruptcy?

  8. What the Problem was… Source: Bank of America Equity Research

  9. “Fair and Equitable”

  10. Per Share Value Premium to Current 160% 652%

  11. Take-Aways • When buying the equity at ~$4, one is getting the following for free: • >90 non “A” malls • 15 grocery-anchored strips • GGMI • MPC • Hidden Asset Value • 225 shares @ $4.00 per share = $900

  12. Company Update

  13. Update

  14. Update

  15. 2Q 2010 Earnings • Funds from operations was $93.6mm vs. $58.2mm in 2Q 2009 • Earnings per share were a loss of $0.37 vs. a loss of $0.51 in 2Q 2009

  16. 2Q 2010 Earnings (cont.) • GGP remains focused on 3 strategies: • Restructuring its balance sheet • GGP will emerge with substantially less debt, satisfy debt and other claims in full, and implement a recapitalization with a minimum of $7.0bn of new equity capital • Realigning the Company’s property portfolio • Restructured all of approximately $15bn of the project-level debt included in the bankruptcy with no restructured loan maturing before January 1, 2014 • Reengineering operations to be more effective • The Company has named four new executives to assume the roles of CFO and department heads for asset management, leasing and marketing/communications

  17. 2Q 2010 Earnings (cont.)

  18. 2Q 2010 Earnings (cont.)

  19. Market Landscape Update

  20. Since early 2009…

  21. Since early 2009…

  22. Since early 2009… • Mall REITs have regained access to capital • Simon Debt Issuances • 01/19/10: Sale of $2.25bn of senior unsecured notes • Macerich Equity Issuance • 04/15/10: Raised $1.23bn in equity, the largest secondary stock offering by a REIT on record • 62% oversubscribed

  23. Since early 2009…

  24. GGP Post Chapter 11

  25. Reorganization Timeline

  26. Company Structure

  27. Capital Structure

  28. PF GGP

  29. PF GGP

  30. PF GGP

  31. PF GGP

  32. PF GGP

  33. PF GGP

  34. PF GGP

  35. PF GGO

  36. PF GGO

  37. PF GGO

  38. Conclusion

  39. Q&A

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